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H.R. 2419 (110th): Food, Conservation, and Energy Act of 2008


The text of the bill below is as of Jan 4, 2008 (Passed the Senate with an Amendment).

Summary of this bill

Source: Wikipedia

The Food, Conservation, and Energy Act of 2008 (Pub.L. 110–234, H.R. 2419, 122 Stat. 923, enacted May 22, 2008, also known as the 2008 U.S. Farm Bill) was a $288 billion, five-year agricultural policy bill that was passed into law by the United States Congress on June 18, 2008. The bill was a continuation of the 2002 Farm Bill. It continues the United States' long history of agricultural subsidies as well as pursuing areas such as energy, conservation, nutrition, and rural development. Some specific initiatives in the bill include increases in Food Stamp benefits, increased support for the production of cellulosic ethanol, and money for the ...


HR 2419 EAS

In the Senate of the United States,

December 14, 2007.

Resolved, That the bill from the House of Representatives (H.R. 2419) entitled `An Act to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes.', do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title- This Act may be cited as the `Food and Energy Security Act of 2007'.

    (b) Table of Contents- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Definition of Secretary.

TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

      Sec. 1001. Definitions.

Subtitle A--Traditional Payments and Loans

PART I--Direct Payments and Counter-Cyclical Payments

      Sec. 1101. Base acres and payment acres for a farm.

      Sec. 1102. Payment yields.

      Sec. 1103. Availability of direct payments.

      Sec. 1104. Availability of counter-cyclical payments.

      Sec. 1105. Producer agreement required as condition of provision of direct payments and counter-cyclical payments.

      Sec. 1106. Planting flexibility.

      Sec. 1107. Special rule for long grain and medium grain rice.

      Sec. 1108. Period of effectiveness.

PART II--Marketing Assistance Loans and Loan Deficiency Payments

      Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities.

      Sec. 1202. Loan rates for nonrecourse marketing assistance loans.

      Sec. 1203. Term of loans.

      Sec. 1204. Repayment of loans.

      Sec. 1205. Loan deficiency payments.

      Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage.

      Sec. 1207. Special marketing loan provisions for upland cotton.

      Sec. 1208. Special competitive provisions for extra long staple cotton.

      Sec. 1209. Availability of recourse loans for high moisture feed grains and seed cotton.

      Sec. 1210. Adjustments of loans.

PART III--Peanuts

      Sec. 1301. Definitions.

      Sec. 1302. Base acres for peanuts for a farm.

      Sec. 1303. Availability of direct payments for peanuts.

      Sec. 1304. Availability of counter-cyclical payments for peanuts.

      Sec. 1305. Producer agreement required as condition on provision of direct payments and counter-cyclical payments.

      Sec. 1306. Planting flexibility.

      Sec. 1307. Marketing assistance loans and loan deficiency payments for peanuts.

      Sec. 1308. Adjustments of loans.

Subtitle B--Average Crop Revenue Program

      Sec. 1401. Availability of average crop revenue payments.

      Sec. 1402. Producer agreement as condition of average crop revenue payments.

      Sec. 1403. Planting flexibility.

Subtitle C--Sugar

      Sec. 1501. Sugar program.

      Sec. 1502. Storage facility loans.

      Sec. 1503. Commodity Credit Corporation storage payments.

      Sec. 1504. Flexible marketing allotments for sugar.

      Sec. 1505. Sense of the Senate regarding NAFTA sugar coordination.

Subtitle D--Dairy

      Sec. 1601. Dairy product price support program.

      Sec. 1602. National dairy market loss payments.

      Sec. 1603. Dairy export incentive and dairy indemnity programs.

      Sec. 1604. Funding of dairy promotion and research program.

      Sec. 1605. Revision of Federal marketing order amendment procedures.

      Sec. 1606. Dairy forward pricing program.

      Sec. 1607. Report on Department of Agriculture reporting procedures for nonfat dry milk.

      Sec. 1608. Federal Milk Marketing Order Review Commission.

      Sec. 1609. Mandatory reporting of dairy commodities.

      Sec. 1610. Additional mandatory dairy reporting.

Subtitle E--Administration

      Sec. 1701. Administration generally.

      Sec. 1702. Suspension of permanent price support authority.

      Sec. 1703. Payment limitations.

      Sec. 1704. Adjusted gross income limitation.

      Sec. 1705. Availability of quality incentive payments for certain producers.

      Sec. 1706. Hard white wheat development program.

      Sec. 1707. Durum wheat quality program.

      Sec. 1708. Storage facility loans.

      Sec. 1709. Personal liability of producers for deficiencies.

      Sec. 1710. Extension of existing administrative authority regarding loans.

      Sec. 1711. Assignment of payments.

      Sec. 1712. Cotton classification services.

      Sec. 1713. Designation of States for cotton research and promotion.

      Sec. 1714. Government publication of cotton price forecasts.

      Sec. 1715. State, county, and area committees.

      Sec. 1716. Prohibition on charging certain fees.

      Sec. 1717. Signature authority.

      Sec. 1718. Modernization of Farm Service Agency.

      Sec. 1719. Geospatial systems.

      Sec. 1720. Leasing office space.

      Sec. 1721. Repeals.

Subtitle F--Specialty Crop Programs

      Sec. 1801. Definitions.

PART I--Marketing, Information, and Education

      Sec. 1811. Fruit and vegetable market news allocation.

      Sec. 1812. Farmers' market promotion program.

      Sec. 1813. Food safety initiatives.

      Sec. 1814. Census of specialty crops.

PART II--Organic Production

      Sec. 1821. Organic data collection and price reporting.

      Sec. 1822. Exemption of certified organic products from assessments.

      Sec. 1823. National Organic Certification Cost Share Program.

      Sec. 1824. National organic program.

PART III--International Trade

      Sec. 1831. Foreign market access study and strategy plan.

      Sec. 1832. Technical assistance for specialty crops.

      Sec. 1833. Consultations on sanitary and phytosanitary restrictions for fruits and vegetables.

PART IV--Specialty Crops Competitiveness

      Sec. 1841. Specialty crop block grants.

      Sec. 1842. Grant program to improve movement of specialty crops.

      Sec. 1843. Healthy Food Enterprise Development Center.

PART V--Miscellaneous

      Sec. 1851. Clean plant network.

      Sec. 1852. Market loss assistance for asparagus producers.

      Sec. 1853. Mushroom promotion, research, and consumer information.

      Sec. 1854. National Honey Board.

      Sec. 1855. Identification of honey.

      Sec. 1856. Expedited marketing order for Hass avocados for grades and standards and other purposes.

Subtitle G--Risk Management

      Sec. 1901. Definition of organic crop.

      Sec. 1902. General powers.

      Sec. 1903. Reduction in loss ratio.

      Sec. 1904. Controlled business insurance.

      Sec. 1905. Administrative fee.

      Sec. 1906. Time for payment.

      Sec. 1907. Surcharge prohibition.

      Sec. 1908. Premium reduction plan.

      Sec. 1909. Enterprise and whole farm units.

      Sec. 1910. Denial of claims.

      Sec. 1911. Measurement of farm-stored commodities.

      Sec. 1912. Reimbursement rate.

      Sec. 1913. Renegotiation of standard reinsurance agreement.

      Sec. 1914. Change in due date for Corporation payments for underwriting gains.

      Sec. 1915. Access to data mining information.

      Sec. 1916. Producer eligibility.

      Sec. 1917. Contracts for additional crop policies.

      Sec. 1918. Research and development.

      Sec. 1919. Funding from insurance fund.

      Sec. 1920. Camelina pilot program.

      Sec. 1921. Sesame insurance pilot program.

      Sec. 1922. Risk management education for beginning farmers or ranchers.

      Sec. 1923. Agricultural management assistance.

      Sec. 1924. Crop insurance mediation.

      Sec. 1925. Drought coverage for aquaculture under noninsured crop assistance program.

      Sec. 1926. Increase in service fees for noninsured crop assistance program.

      Sec. 1927. Determination of certain sweet potato production.

      Sec. 1928. Perennial crop report.

      Sec. 1929. Malting barley.

      Sec. 1930. Definition of basic unit.

TITLE II--CONSERVATION

Subtitle A--Definitions

      Sec. 2001. Definitions.

Subtitle B--Highly Erodible Land Conservation

      Sec. 2101. Review of good faith determinations; exemptions.

Subtitle C--Wetland Conservation

      Sec. 2201. Review of good faith determinations.

Subtitle D--Agricultural Resources Conservation Program

Chapter 1--Comprehensive Conservation Enhancement

subchapter a--comprehensive conservation enhancement program

      Sec. 2301. Reauthorization and expansion of programs covered.

subchapter b--conservation reserve

      Sec. 2311. Conservation reserve program.

      Sec. 2312. Flooded farmland program.

      Sec. 2313. Wildlife habitat program.

subchapter c--wetlands reserve program

      Sec. 2321. Wetlands reserve program.

      Sec. 2322. Easements and agreements.

      Sec. 2323. Payments.

subchapter d--healthy forests reserve program

      Sec. 2331. Healthy forests reserve program.

`subchapter d--healthy forests reserve program

`Sec. 1237M. Establishment of healthy forests reserve program.

`Sec. 1237N. Eligibility and enrollment of lands in program.

`Sec. 1237O. Restoration plans.

`Sec. 1237P. Financial assistance.

`Sec. 1237Q. Technical assistance.

`Sec. 1237R. Protections and measures.

`Sec. 1237S. Involvement by other agencies and organizations.

`Sec. 1237T. Authorization of appropriations.

Chapter 2--Comprehensive Stewardship Incentives Program

subchapter a--general provisions

      Sec. 2341. Comprehensive stewardship incentives program.

`Chapter 6--Comprehensive Stewardship Incentives Program

`subchapter a--comprehensive stewardship incentives program

`Sec. 1240T. Comprehensive stewardship incentives program.

`subchapter b--conservation stewardship program

`Sec. 1240U. Purposes.

`Sec. 1240V. Definitions.

`Sec. 1240W. Establishment of program.

`Sec. 1240X. Eligibility.

`Sec. 1240Y. Regulations.

subchapter b--environmental quality incentives program

      Sec. 2351. Purposes.

      Sec. 2352. Definitions.

      Sec. 2353. Establishment and administration of environmental quality incentives program.

      Sec. 2354. Evaluation of offers and payments.

      Sec. 2355. Duties of producers.

      Sec. 2356. Environmental quality incentives program plan.

      Sec. 2357. Limitation on payments.

      Sec. 2358. Conservation innovation grants.

      Sec. 2359. Ground and surface water conservation.

      Sec. 2360. Organic conversion.

      Sec. 2361. Chesapeake Bay watershed conservation program.

Chapter 3--Farmland Protection

subchapter a--farmland protection program

      Sec. 2371. Farmland protection program.

subchapter b--grassland reserve program

      Sec. 2381. Grassland reserve program.

`subchapter c--grassland reserve program

`Sec. 1238N. Definitions.

`Sec. 1238O. Grassland reserve program.

`Sec. 1238P. Duties.

`Sec. 1238Q. Terms and conditions.

Chapter 4--Other Conservation Programs

      Sec. 2391. Conservation security program.

      Sec. 2392. Conservation of private grazing land.

      Sec. 2393. Reauthorization of wildlife habitat incentive program.

      Sec. 2394. Grassroots source water protection program.

      Sec. 2395. Great Lakes basin program for soil erosion and sediment control.

      Sec. 2396. Farm viability program.

      Sec. 2397. Discovery watershed demonstration program.

      Sec. 2398. Emergency landscape restoration program.

      Sec. 2399. Voluntary public access and habitat incentive program.

Subtitle E--Funding and Administration

      Sec. 2401. Funding and administration.

      Sec. 2402. Regional equity.

      Sec. 2403. Conservation access.

      Sec. 2404. Delivery of technical assistance.

      Sec. 2405. Administrative requirements for conservation programs.

      Sec. 2406. Conservation programs in environmental services markets.

Subtitle F--State Technical Committees

      Sec. 2501. State technical committees.

Subtitle G--Other Authorities

      Sec. 2601. Agricultural management assistance.

      Sec. 2602. Agriculture conservation experienced services program.

      Sec. 2603. Technical assistance.

      Sec. 2604. Small watershed rehabilitation program.

      Sec. 2605. Resource conservation and development program.

      Sec. 2606. National Natural Resources Conservation Foundation.

      Sec. 2607. Desert Terminal Lakes.

      Sec. 2607A. Desert Terminal Lakes.

      Sec. 2608. Crop insurance ineligibility relating to crop production on native sod.

      Sec. 2609. High Plains water study.

      Sec. 2610. Payment of expenses.

      Sec. 2611. Use of funds in Basin funds for salinity control activities upstream of Imperial Dam.

      Sec. 2612. Technical corrections to the Federal Insecticide, Fungicide, and Rodenticide Act.

TITLE III--TRADE

Subtitle A--Food for Peace Act

      Sec. 3001. Short title.

      Sec. 3002. United States policy.

      Sec. 3003. Food aid to developing countries.

      Sec. 3004. Trade and development assistance.

      Sec. 3005. Agreements regarding eligible countries and private entities.

      Sec. 3006. Use of local currency payments.

      Sec. 3007. General authority.

      Sec. 3008. Provision of agricultural commodities.

      Sec. 3009. Microenterprise activities.

      Sec. 3010. Levels of assistance.

      Sec. 3011. Food Aid Consultative Group.

      Sec. 3012. Administration.

      Sec. 3013. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods.

      Sec. 3014. Pilot program for local purchase.

      Sec. 3015. General authorities and requirements.

      Sec. 3016. Use of Commodity Credit Corporation.

      Sec. 3017. Administrative provisions.

      Sec. 3018. Expiration date.

      Sec. 3019. Authorization of appropriations.

      Sec. 3020. Micronutrient fortification programs.

      Sec. 3021. Germplasm conservation.

      Sec. 3022. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

      Sec. 3101. Export credit guarantee program.

      Sec. 3102. Market access program.

      Sec. 3103. Export enhancement program.

      Sec. 3104. Voluntary certification of child labor status of agricultural imports.

      Sec. 3105. Foreign market development cooperator program.

      Sec. 3106. Food for Progress Act of 1985.

      Sec. 3107. McGovern-Dole International Food for Education and Child Nutrition Program.

Subtitle C--Miscellaneous

      Sec. 3201. Bill Emerson Humanitarian Trust.

      Sec. 3202. Emerging markets and facility guarantee loan program.

      Sec. 3203. Biotechnology and agricultural trade program.

      Sec. 3204. Technical assistance for the resolution of trade disputes.

      Sec. 3205. Importation of live dogs.

      Sec. 3206. Report on the importation of high protein food ingredients.

      Sec. 3207. Quality requirements for clementines.

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food and Nutrition Program

PART I--Renaming of Food Stamp Program

      Sec. 4001. Renaming of food stamp program.

PART II--Improving Program Benefits

      Sec. 4101. Exclusion of certain military payments from income.

      Sec. 4102. Strengthening the food purchasing power of low-income Americans.

      Sec. 4103. Supporting working families with child care expenses.

      Sec. 4104. Encouraging retirement and education savings among food stamp recipients.

      Sec. 4105. Facilitating simplified reporting.

      Sec. 4106. Accrual of benefits.

      Sec. 4107. Eligibility for unemployed adults.

      Sec. 4108. Transitional benefits option.

      Sec. 4109. Minimum benefit.

      Sec. 4110. Availability of commodities for the emergency food assistance program.

PART III--Improving Program Operations

      Sec. 4201. Technical clarification regarding eligibility.

      Sec. 4202. Issuance and use of program benefits.

      Sec. 4203. Clarification of split issuance.

      Sec. 4204. State option for telephonic signature.

      Sec. 4205. Privacy protections.

      Sec. 4206. Study on comparable access to food and nutrition assistance for Puerto Rico.

      Sec. 4207. Civil rights compliance.

      Sec. 4208. Employment, training, and job retention.

      Sec. 4209. Codification of access rules.

      Sec. 4210. Expanding the use of EBT cards at farmers' markets.

      Sec. 4211. Review of major changes in program design.

      Sec. 4212. Preservation of access and payment accuracy.

      Sec. 4213. Nutrition education.

PART IV--Improving Program Integrity

      Sec. 4301. Major systems failures.

      Sec. 4302. Performance standards for biometric identification technology.

      Sec. 4303. Civil penalties and disqualification of retail food stores and wholesale food concerns.

      Sec. 4304. Funding of employment and training programs.

      Sec. 4305. Eligibility disqualification.

PART V--Miscellaneous

      Sec. 4401. Definition of staple foods.

      Sec. 4402. Accessory food items.

      Sec. 4403. Pilot projects to evaluate health and nutrition promotion in the food and nutrition program.

      Sec. 4404. Bill Emerson National Hunger Fellows and Mickey Leland International Hunger Fellows.

      Sec. 4405. Hunger-free communities.

      Sec. 4406. State performance on enrolling children receiving program benefits for free school meals.

      Sec. 4407. Sense of Congress regarding Nutrition education under the Food and Nutrition Program.

Subtitle B--Food Distribution Program on Indian Reservations

      Sec. 4501. Assessing the nutritional value of the FDPIR food package.

Subtitle C--Administration of Emergency Food Assistance Program and Commodity Supplemental Food Program

      Sec. 4601. Emergency food assistance.

      Sec. 4602. Commodity supplemental food program.

Subtitle D--Senior Farmers' Market Nutrition Program

      Sec. 4701. Exclusion of benefits in determining eligibility for other programs.

      Sec. 4702. Prohibition on collection of sales tax.

Subtitle E--Reauthorization of Federal Food Assistance Programs

      Sec. 4801. Food and nutrition program.

      Sec. 4802. Commodity distribution.

      Sec. 4803. Nutrition information and awareness pilot program.

Subtitle F--Miscellaneous

      Sec. 4901. Periodic surveys of foods purchased by school food authorities.

      Sec. 4902. Purchases of locally grown fruits and vegetables.

      Sec. 4903. Healthy food education and program replicability.

      Sec. 4904. Fresh fruit and vegetable program.

      Sec. 4905. Team nutrition network.

      Sec. 4906. Buy American requirements.

      Sec. 4907. Minimum purchases of fruits, vegetables, and nuts through section 32 to support domestic nutrition assistance programs.

      Sec. 4908. Agricultural policy and public health.

      Sec. 4909. Conforming amendments to renaming of food stamp program.

      Sec. 4910. Effective and implementation dates.

      Sec. 4911. Application.

      Sec. 4912. Grain pilot program.

      Sec. 4913. Report on Federal hunger programs.

      Sec. 4914. Food employment empowerment and development program.

      Sec. 4915. Infrastructure and transportation grants to support rural food bank delivery of healthy perishable foods.

TITLE V--CREDIT

Subtitle A--Farm Ownership Loans

      Sec. 5001. Direct loans.

      Sec. 5002. Purposes of loans.

      Sec. 5003. Soil and water conservation and protection.

      Sec. 5004. Limitations on amount of farm ownership loans.

      Sec. 5005. Down payment loan program.

      Sec. 5006. Beginning farmer or rancher contract land sales program.

Subtitle B--Operating Loans

      Sec. 5101. Farming experience as eligibility requirement.

      Sec. 5102. Limitations on amount of operating loans.

      Sec. 5103. Limitation on period borrowers are eligible for guaranteed assistance.

Subtitle C--Administrative Provisions

      Sec. 5201. Beginning farmer and rancher individual development accounts pilot program.

      Sec. 5202. Inventory sales preferences; loan fund set-asides.

      Sec. 5203. Transition to private commercial or other sources of credit.

      Sec. 5204. Loan authorization levels.

      Sec. 5205. Interest rate reduction program.

      Sec. 5206. Deferral of shared appreciation recapture amortization.

      Sec. 5207. Rural development, housing, and farm loan program activities.

Subtitle D--Farm Credit

      Sec. 5301. Authority to pass along cost of insurance premiums.

      Sec. 5302. Technical correction.

      Sec. 5303. Confirmation of Chairman.

      Sec. 5304. Premiums.

      Sec. 5305. Certification of premiums.

      Sec. 5306. Rural utility loans.

      Sec. 5307. Equalization of loan-making powers of certain district associations.

Subtitle E--Miscellaneous

      Sec. 5401. Loans to purchasers of highly fractioned land.

      Sec. 5402. Determination on merits of Pigford claims.

      Sec. 5403. Sense of the Senate relating to claims brought by socially disadvantaged farmers or ranchers.

      Sec. 5404. Eligibility of equine farmers and ranchers for emergency loans.

TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

Subtitle A--Consolidated Farm and Rural Development Act

      Sec. 6001. Water, waste disposal, and wastewater facility grants.

      Sec. 6002. Rural business opportunity grants.

      Sec. 6003. Child day care facility grants, loans, and loan guarantees.

      Sec. 6004. Rural water and wastewater circuit rider program.

      Sec. 6005. Multijurisdictional regional planning organizations.

      Sec. 6006. Rural hospital loans and loan guarantees.

      Sec. 6007. Tribal college and university essential community facilities.

      Sec. 6008. Community facility loans and grants for freely associated States and outlying areas.

      Sec. 6009. Priority for community facility loan and grant projects with high non-Federal share.

      Sec. 6010. SEARCH grants.

      Sec. 6011. Emergency and imminent community water assistance grant program.

      Sec. 6012. Water systems for rural and native villages in Alaska.

      Sec. 6013. Grants to develop wells in rural areas.

      Sec. 6014. Cooperative equity security guarantee.

      Sec. 6015. Rural cooperative development grants.

      Sec. 6016. Grants to broadcasting systems.

      Sec. 6017. Locally-produced agricultural food products.

      Sec. 6018. Appropriate technology transfer for rural areas.

      Sec. 6019. Rural economic area partnership zones.

      Sec. 6020. Definitions.

      Sec. 6021. Geographically disadvantaged farmers and ranchers.

      Sec. 6022. Rural microenterprise assistance program.

      Sec. 6023. Artisanal cheese centers.

      Sec. 6024. National Rural Development Partnership.

      Sec. 6025. Historic barn preservation.

      Sec. 6026. Grants for NOAA weather radio transmitters.

      Sec. 6027. Grants to train farm workers in new technologies and to train farm workers in specialized skills necessary for higher value crops.

      Sec. 6028. Grants for expansion of employment opportunities for individuals with disabilities in rural areas.

      Sec. 6029. Delta Regional Authority.

      Sec. 6030. Northern Great Plains Regional Authority.

      Sec. 6031. Rural business investment program.

      Sec. 6032. Rural collaborative investment program.

      Sec. 6033. Funding of pending rural development loan and grant applications.

      Sec. 6034. Northern Border Economic Development Commission.

Subtitle B--Rural Electrification Act of 1936

      Sec. 6101. Energy efficiency programs.

      Sec. 6102. Loans and grants for electric generation and transmission.

      Sec. 6103. Fees for electrification baseload generation loan guarantees.

      Sec. 6104. Deferment of payments to allow loans for improved energy efficiency and demand reduction.

      Sec. 6105. Rural electrification assistance.

      Sec. 6106. Guarantees for bonds and notes issued for electrification or telephone purposes.

      Sec. 6107. Expansion of 911 access.

      Sec. 6108. Electric loans to rural electric cooperatives.

      Sec. 6109. Agency procedures.

      Sec. 6110. Access to broadband telecommunications services in rural areas.

      Sec. 6111. Comprehensive rural broadband.

      Sec. 6112. Substantially underserved trust areas.

      Sec. 6113. Study of Federal assistance for broadband infrastructure.

Subtitle C--Connect the Nation Act

      Sec. 6201. Short title.

      Sec. 6202. Grants to encourage State initiatives to improve broadband service.

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

      Sec. 6301. Rural electronic commerce extension program.

      Sec. 6302. Telemedicine, library connectivity, public television, and distance learning services in rural areas.

Subtitle E--Miscellaneous

      Sec. 6401. Value-added agricultural product market development grants.

      Sec. 6402. Insurance of loans for housing and related facilities for domestic farm labor.

Subtitle F--Housing Assistance Council

      Sec. 6501. Short title.

      Sec. 6502. Assistance to Housing Assistance Council.

      Sec. 6503. Audits and reports.

      Sec. 6504. Persons not lawfully present in the United States.

      Sec. 6505. Limitation on use of authorized amounts.

TITLE VII--RESEARCH AND RELATED MATTERS

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

      Sec. 7001. Definitions.

      Sec. 7002. National Agricultural Research, Extension, Education, and Economics Advisory Board.

      Sec. 7003. Veterinary medicine loan repayment.

      Sec. 7004. Eligibility of University of the District of Columbia for grants and fellowships for food and agricultural sciences education.

      Sec. 7005. Grants to 1890 Institutions to expand extension capacity.

      Sec. 7006. Expansion of food and agricultural sciences awards.

      Sec. 7007. Grants and fellowships for food and agricultural sciences education.

      Sec. 7008. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.

      Sec. 7009. Policy research centers.

      Sec. 7010. Human nutrition intervention and health promotion research program.

      Sec. 7011. Pilot research program to combine medical and agricultural research.

      Sec. 7012. Nutrition education program.

      Sec. 7013. Purposes and findings relating to animal health and disease research.

      Sec. 7014. Continuing animal health and disease research programs.

      Sec. 7015. Appropriations for research on national or regional problems.

      Sec. 7016. Animal health and disease research program.

      Sec. 7017. Authorization level for extension at 1890 land-grant colleges.

      Sec. 7018. Authorization level for agricultural research at 1890 land-grant colleges.

      Sec. 7019. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University.

      Sec. 7020. Grants to upgrade agriculture and food sciences facilities at the District of Columbia land grant university.

      Sec. 7021. National research and training virtual centers.

      Sec. 7022. Matching funds requirement for research and extension activities of 1890 Institutions.

      Sec. 7023. Hispanic-serving institutions.

      Sec. 7024. Hispanic-serving agricultural colleges and universities.

      Sec. 7025. International agricultural research, extension, and education.

      Sec. 7026. Competitive grants for international agricultural science and education programs.

      Sec. 7027. Indirect costs.

      Sec. 7028. Research equipment grants.

      Sec. 7029. University research.

      Sec. 7030. Extension Service.

      Sec. 7031. Indirect cost recovery.

      Sec. 7032. Supplemental and alternative crops.

      Sec. 7033. Aquaculture research facilities.

      Sec. 7034. Rangeland research.

      Sec. 7035. Special authorization for biosecurity planning and response.

      Sec. 7036. Resident instruction and distance education grants program for insular area institutions of higher education.

      Sec. 7037. Farm management training and public farm benchmarking database.

      Sec. 7038. Tropical and subtropical agricultural research.

      Sec. 7039. Regional centers of excellence.

      Sec. 7040. National Drought Mitigation Center.

      Sec. 7041. Agricultural development in the American-Pacific region.

      Sec. 7042. Borlaug international agricultural science and technology fellowship program.

      Sec. 7043. New Era Rural Technology Program.

      Sec. 7044. Farm and ranch stress assistance network.

      Sec. 7045. Rural entrepreneurship and enterprise facilitation program.

      Sec. 7046. Seed distribution.

      Sec. 7047. Farm and ranch safety.

      Sec. 7048. Women and minorities in STEM fields.

      Sec. 7049. Natural products research program.

      Sec. 7050. International anti-hunger and nutrition program.

      Sec. 7051. Consortium for Agricultural and Rural Transportation Research and Education.

      Sec. 7052. Regional centers of excellence in food systems veterinary medicine.

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

      Sec. 7101. National genetic resources program.

      Sec. 7102. High-priority research and extension initiatives.

      Sec. 7103. Nutrient management research and extension initiative.

      Sec. 7104. Organic agriculture research and extension initiative.

      Sec. 7105. Agricultural telecommunications program.

      Sec. 7106. Assistive technology program for farmers with disabilities.

      Sec. 7107. National Rural Information Center Clearinghouse.

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

      Sec. 7201. Initiative for Future Agriculture and Food Systems.

      Sec. 7202. Partnerships for high-value agricultural product quality research.

      Sec. 7203. Precision agriculture.

      Sec. 7204. Biobased products.

      Sec. 7205. Thomas Jefferson initiative for crop diversification.

      Sec. 7206. Integrated research, education, and extension competitive grants program.

      Sec. 7207. Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica.

      Sec. 7208. Bovine Johne's disease control program.

      Sec. 7209. Grants for youth organizations.

      Sec. 7210. Agricultural biotechnology research and development for developing countries.

      Sec. 7211. Specialty crop research initiative.

      Sec. 7212. Office of Pest Management Policy.

      Sec. 7213. Food animal residue avoidance database program.

Subtitle D--Other Laws

      Sec. 7301. Critical Agricultural Materials Act.

      Sec. 7302. Equity in Educational Land-Grant Status Act of 1994.

      Sec. 7303. Smith-Lever Act.

      Sec. 7304. Hatch Act of 1887.

      Sec. 7305. Research Facilities Act.

      Sec. 7306. National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985.

      Sec. 7307. Competitive, Special, and Facilities Research Grant Act.

      Sec. 7308. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions.

      Sec. 7309. Beginning farmer and rancher development program.

      Sec. 7310. McIntire-Stennis Cooperative Forestry Act.

      Sec. 7311. National Aquaculture Act of 1980.

      Sec. 7312. National Arboretum.

      Sec. 7313. Eligibility of University of the District of Columbia for certain land-grant university assistance.

      Sec. 7314. Exchange or sale authority.

      Sec. 7315. Carbon cycle research.

      Sec. 7316. Enhanced use lease authority pilot program.

      Sec. 7317. Research and education grants for the study of antibiotic-resistant bacteria in livestock.

Subtitle E--National Institute of Food and Agriculture

      Sec. 7401. National Institute of Food and Agriculture.

      Sec. 7402. Coordination of Agricultural Research Service and National Institute of Food and Agriculture.

Subtitle F--Miscellaneous

      Sec. 7501. Joint nutrition monitoring and related research activities.

      Sec. 7502. Demonstration project authority for temporary positions.

      Sec. 7503. Review of plan of work requirements.

      Sec. 7504. Study and report on access to nutritious foods.

      Sec. 7505. Sense of Senate regarding organic research.

      Sec. 7506. Modifications to information technology service.

      Sec. 7507. Studies and reports by the Department of Agriculture, the Department of Health and Human Services, and the National Academy of Sciences on food products from cloned animals.

      Sec. 7508. Animal bioscience facility, Bozeman, Montana.

TITLE VIII--FORESTRY

Subtitle A--Cooperative Forestry Assistance Act of 1978

      Sec. 8001. National priorities for private forest conservation.

      Sec. 8002. Community forest and open space conservation program.

      Sec. 8003. Federal, State, and local coordination and cooperation.

      Sec. 8004. Comprehensive statewide forest planning.

      Sec. 8005. Assistance to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

Subtitle B--Tribal-Forest Service Cooperative Relations

      Sec. 8101. Definitions.

PART I--Collaboration Between Indian Tribes and Forest Service

      Sec. 8111. Forest Legacy Program.

      Sec. 8112. Forestry and resource management assistance for Indian tribes.

PART II--Cultural and Heritage Cooperation Authority

      Sec. 8121. Purposes.

      Sec. 8122. Definitions.

      Sec. 8123. Reburial of human remains and cultural items.

      Sec. 8124. Temporary closure for traditional and cultural purposes.

      Sec. 8125. Forest products for traditional and cultural purposes.

      Sec. 8126. Prohibition on disclosure.

      Sec. 8127. Severability and savings provisions.

Subtitle C--Amendments to Other Laws

      Sec. 8201. Renewable resources extension activities.

      Sec. 8202. Office of International Forestry.

      Sec. 8203. Green Mountain National Forest boundary adjustment.

      Sec. 8204. Prevention of illegal logging practices.

      Sec. 8205. Sale and exchange of National Forest System land, Vermont.

Subtitle D--Qualifying Timber Contract Options

      Sec. 8301. Qualifying timber contract options.

TITLE IX--ENERGY

      Sec. 9001. Energy.

      Sec. 9002. Sense of the Senate concerning higher levels of ethanol blended gasoline.

      Sec. 9003. Conforming amendments.

      Sec. 9004. Sense of Congress regarding cooperative regional research, extension, and education programs on biofuels and bioproducts.

TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

Subtitle A--Marketing

      Sec. 10001. Livestock mandatory reporting.

      Sec. 10002. Grading and inspection.

      Sec. 10003. Country of origin labeling.

      Sec. 10004. Disclosure of country of harvest for ginseng.

Subtitle B--Agricultural Fair Practices

      Sec. 10101. Definitions.

      Sec. 10102. Prohibited practices.

      Sec. 10103. Enforcement.

      Sec. 10104. Rules and regulations.

Subtitle C--Packers and Stockyards

      Sec. 10201. Special Counsel for Agricultural Competition.

      Sec. 10202. Investigation of live poultry dealers.

      Sec. 10203. Production contracts.

      Sec. 10204. Right to discuss terms of contract.

      Sec. 10205. Attorneys' fees.

      Sec. 10206. Appointment of outside counsel.

      Sec. 10207. Prohibition on packers owning, feeding, or controlling livestock.

      Sec. 10208. Regulations.

Subtitle D--Related Programs

      Sec. 10301. Sense of Congress regarding pseudorabies eradication program.

      Sec. 10302. Sense of Congress regarding cattle fever tick eradication program.

      Sec. 10303. National Sheep and Goat Industry Improvement Center.

      Sec. 10304. Trichinae certification program.

      Sec. 10305. Protection of information in the animal identification system.

      Sec. 10306. Low pathogenic avian influenza.

      Sec. 10307. Study on bioenergy operations.

      Sec. 10308. Sense of the Senate on indemnification of livestock producers.

      Sec. 10309. Coordination of dairy oversight.

TITLE XI--MISCELLANEOUS

Subtitle A--Agricultural Security

      Sec. 11011. Definitions.

      Sec. 11012. National plant disease recovery system and national veterinary stockpile.

      Sec. 11013. Research and development of agricultural countermeasures.

      Sec. 11014. Veterinary workforce grant program.

      Sec. 11015. Assistance to build local capacity in agricultural biosecurity planning, preparedness, and response.

      Sec. 11016. Live virus of foot and mouth disease research.

      Sec. 11017. Plant protection.

Subtitle B--Other Programs

      Sec. 11051. Foreclosure.

      Sec. 11052. Outreach and technical assistance for socially disadvantaged farmers and ranchers.

      Sec. 11053. Additional contracting authority.

      Sec. 11054. Improved program delivery by the Department of Agriculture on Indian reservations.

      Sec. 11055. Accurate documentation in the census of agriculture and certain studies.

      Sec. 11056. Improved data requirements.

      Sec. 11057. Receipt for service or denial of service.

      Sec. 11058. National Appeals Division.

      Sec. 11059. Farmworker Coordinator.

      Sec. 11060. Congressional Bipartisan Food Safety Commission.

      Sec. 11061. Emergency grants to assist low-income migrant and seasonal farmworkers.

      Sec. 11062. Grants to reduce production of methamphetamines from anhydrous ammonia.

      Sec. 11063. Invasive species management, Hawaii.

      Sec. 11064. Oversight and compliance.

      Sec. 11065. Report of civil rights complaints, resolutions, and actions.

      Sec. 11066. Grants to improve supply, stability, safety, and training of agricultural labor force.

      Sec. 11067. Interstate shipment of meat and poultry inspected by Federal and State agencies for certain small establishments.

      Sec. 11068. Amendment to the Right to Financial Privacy Act of 1978.

      Sec. 11069. Elimination of statute of limitations applicable to collection of debt by administrative offset.

      Sec. 11070. Report on stored quantities of propane.

      Sec. 11071. Closure of certain county FSA offices.

      Sec. 11072. Action by President and Congress based on report.

      Sec. 11073. Payments to deceased individuals and estates.

      Sec. 11074. GAO report on access to health care for farmers.

      Sec. 11075. Conveyance of land to Chihuahuan Desert Nature Park.

      Sec. 11076. Prohibitions on dog fighting ventures.

      Sec. 11077. Regulations to improve management and oversight of certain regulated articles.

      Sec. 11078. Invasive pest and disease emergency response funding clarification.

      Sec. 11079. Protection of pets.

      Sec. 11080. Exemption from AQI user fees.

      Sec. 11081. Department of Agriculture conference transparency.

      Sec. 11082. Report relating to the ending of childhood hunger in the United States.

      Sec. 11083. National emergency grant to address effects of Greensburg, Kansas tornado.

      Sec. 11084. Report on program results.

      Sec. 11085. Sense of the Senate on the U.S. Department of Agriculture's Wildlife Services Competing Against Private Industry for Nuisance Bird Control Work.

      Sec. 11086. Oversight of national aquatic animal health plan.

      Sec. 11087. Food safety improvement.

      Sec. 11088. Office of Small Farms and Beginning Farmers and Ranchers.

      Sec. 11089. Study of impacts of local food systems and commerce.

      Sec. 11090. Invasive Species Revolving Loan Fund.

      Sec. 11091. Cooperative agreements relating to invasive species prevention activities.

      Sec. 11092. Southwest regional dairy, environment, and private land program.

      Sec. 11093. Enforcement of United States-Canada softwood lumber agreement.

Subtitle C--Domestic Pet Turtle Market Access

      Sec. 11101. Short title.

      Sec. 11102. Findings.

      Sec. 11103. Review, report, and action on the sale of baby turtles.

Subtitle D--Disaster Loan Program

      Sec. 11111. Short title.

      Sec. 11112. Definitions.

PART I--Disaster Planning and Response

      Sec. 11121. Disaster loans to nonprofits.

      Sec. 11122. Disaster loan amounts.

      Sec. 11123. Small business development center portability grants.

      Sec. 11124. Assistance to out-of-State businesses.

      Sec. 11125. Outreach programs.

      Sec. 11126. Small business bonding threshold.

      Sec. 11127. Termination of program.

      Sec. 11128. Increasing collateral requirements.

      Sec. 11129. Public awareness of disaster declaration and application periods.

      Sec. 11130. Consistency between Administration regulations and standard operating procedures.

      Sec. 11131. Processing disaster loans.

      Sec. 11132. Development and implementation of major disaster response plan.

      Sec. 11133. Disaster planning responsibilities.

      Sec. 11134. Additional authority for district offices of the Administration.

      Sec. 11135. Assignment of employees of the Office of Disaster Assistance and Disaster Cadre.

PART II--Disaster Lending

      Sec. 11141. Small Business Act catastrophic national disaster declaration.

      Sec. 11142. Private disaster loans.

      Sec. 11143. Technical and conforming amendments.

      Sec. 11144. Expedited disaster assistance loan program.

      Sec. 11145. HUBZones.

PART III--Disaster Assistance Oversight

      Sec. 11161. Congressional oversight.

TITLE XII--TRADE AND TAX PROVISIONS

      Sec. 12001. Short title; etc.

Subtitle A--Supplemental Agricultural Disaster Assistance From the Agriculture Disaster Relief Trust Fund

      Sec. 12101. Supplemental agriculture disaster assistance.

Subtitle B--Conservation Provisions

PART I--Land and Species Preservation Provisions

      Sec. 12201. Conservation reserve tax credit.

      Sec. 12202. Exclusion of Conservation Reserve Program payments from SECA tax for certain individuals.

      Sec. 12203. Permanent extension of special rule encouraging contributions of capital gain real property for conservation purposes.

      Sec. 12204. Tax credit for recovery and restoration of endangered species.

      Sec. 12205. Deduction for endangered species recovery expenditures.

      Sec. 12206. Exclusion for certain payments and programs relating to fish and wildlife.

      Sec. 12207. Credit for easements granted under certain Department of Agriculture conservation programs.

PART II--Timber Provisions

      Sec. 12211. Forest conservation bonds.

      Sec. 12212. Deduction for qualified timber gain.

      Sec. 12213. Excise tax not applicable to section 1203 deduction of real estate investment trusts.

      Sec. 12214. Timber REIT modernization.

      Sec. 12215. Mineral royalty income qualifying income for timber REITs.

      Sec. 12216. Modification of taxable REIT subsidiary asset test for timber REITs.

      Sec. 12217. Safe harbor for timber property.

Subtitle C--Energy Provisions

PART I--Electricity Generation

      Sec. 12301. Credit for residential and business wind property.

      Sec. 12302. Landowner incentive to encourage electric transmission build-out.

      Sec. 12303. Exception to reduction of renewable electricity credit.

PART II--Alcohol Fuel

      Sec. 12311. Expansion of special allowance to cellulosic biofuel plant property.

      Sec. 12312. Credit for production of cellulosic biofuel.

      Sec. 12313. Extension of small ethanol producer credit.

      Sec. 12314. Credit for producers of fossil free alcohol.

      Sec. 12315. Modification of alcohol credit.

      Sec. 12316. Calculation of volume of alcohol for fuel credits.

      Sec. 12317. Ethanol tariff extension.

      Sec. 12318. Limitations on, and reductions of, duty drawback on certain imported ethanol.

PART III--Biodiesel and Renewable Diesel Fuel

      Sec. 12321. Extension and modification of credit for biodiesel and renewable diesel used as fuel.

      Sec. 12322. Treatment of qualified alcohol fuel mixtures and qualified biodiesel fuel mixtures as taxable fuels.

PART IV--Alternative Fuel

      Sec. 12331. Extension and modification of alternative fuel credit.

      Sec. 12332. Extension of alternative fuel vehicle refueling property credit.

Subtitle D--Agricultural Provisions

      Sec. 12401. Increase in loan limits on agricultural bonds.

      Sec. 12402. Modification of installment sale rules for certain farm property.

      Sec. 12403. Allowance of section 1031 treatment for exchanges involving certain mutual ditch, reservoir, or irrigation company stock.

      Sec. 12404. Credit to holders of rural renaissance bonds.

      Sec. 12405. Agricultural chemicals security credit.

      Sec. 12406. Credit for drug safety and effectiveness testing for minor animal species.

      Sec. 12407. Certain farming business machinery and equipment treated as 5-year property.

      Sec. 12408. Expensing of broadband Internet access expenditures.

      Sec. 12409. Credit for energy efficient motors.

Subtitle E--Revenue Provisions

PART I--Miscellaneous Revenue Provisions

      Sec. 12501. Limitation on farming losses of certain taxpayers.

      Sec. 12502. Modification to optional method of computing net earnings from self-employment.

      Sec. 12503. Information reporting for Commodity Credit Corporation transactions.

      Sec. 12504. Modification of section 1031 treatment for certain real estate.

      Sec. 12505. Modification of effective date of leasing provisions of the American Jobs Creation Act of 2004.

      Sec. 12506. Time for payment of corporate estimated taxes.

      Sec. 12507. Denial of deduction for certain fines, penalties, and other amounts.

      Sec. 12508. Increase in information return penalties.

      Sec. 12509. Asset treatment of horses.

      Sec. 12510. Elimination of private payment test for professional sports facility bonds.

      Sec. 12511. Modification of penalty for failure to file partnership returns; limitation on disclosure.

      Sec. 12512. Participants in government section 457 plans allowed to treat elective deferrals as Roth contributions.

PART II--Economic Substance Doctrine

      Sec. 12521. Clarification of economic substance doctrine.

      Sec. 12522. Penalty for understatements attributable to transactions lacking economic substance, etc.

      Sec. 12523. Denial of deduction for interest on underpayments attributable to noneconomic substance transactions.

Subtitle F--Protection of Social Security

      Sec. 12601. Protection of Social Security.

      Sec. 12602. Interest rates for water and waste disposal facilities loans.

Subtitle G--Kansas Disaster Tax Relief Assistance

      Sec. 12701. Temporary tax relief for Kiowa County, Kansas and surrounding area.

Subtitle H--Other Provisions

      Sec. 12801. Income averaging for amounts received in connection with the Exxon Valdez litigation.

      Sec. 12802. 2-year extension and expansion of charitable deduction for contributions of food inventory.

      Sec. 12803. Mileage reimbursements to charitable volunteers excluded from gross income.

      Sec. 12804. Basis adjustment to stock of S corporations making charitable contributions of property.

      Sec. 12805. Private payment test for professional sports facility bonds.

      Sec. 12806. Application of rehabilitation credit and depreciation schedules to certain low-income housing for the elderly.

      Sec. 12807. Competitive certification awards modification authority.

      Sec. 12808. Qualified forestry conservation bonds.

TITLE XIII--AMENDMENTS TO COMMODITY EXCHANGE ACT

      Sec. 13001. Short title.

Subtitle A--General Provisions

      Sec. 13101. CFTC authority over off-exchange retail foreign currency transactions.

      Sec. 13102. Liaison with Department of Justice.

      Sec. 13103. Anti-fraud authority over principal-to-principal transactions.

      Sec. 13104. Criminal and civil penalties.

      Sec. 13105. Authorization of appropriations.

      Sec. 13106. Technical and conforming amendments.

      Sec. 13107. Portfolio Margining and Security Index Issues.

Subtitle B--Significant Price Discovery Contracts on Exempt Commercial Markets

      Sec. 13201. Significant price discovery contracts.

      Sec. 13202. Large trader reporting.

      Sec. 13203. Conforming amendments.

      Sec. 13204. Effective date.

SEC. 2. DEFINITION OF SECRETARY.

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

TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

SEC. 1001. DEFINITIONS.

    In this title (other than part III of subtitle A):

      (1) AVERAGE CROP REVENUE PAYMENT- The term `average crop revenue payment' means a payment made to producers on a farm under section 1401.

      (2) BASE ACRES- The term `base acres', with respect to a covered commodity on a farm, means the number of acres established under section 1101 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911) as in effect on the day before the date of enactment of this Act, subject to any adjustment under section 1101 of this Act.

      (3) COUNTER-CYCLICAL PAYMENT- The term `counter-cyclical payment' means a payment made to producers on a farm under section 1104.

      (4) COVERED COMMODITY- The term `covered commodity' means wheat, corn, grain sorghum, barley, oats, upland cotton, long grain rice, medium grain rice, pulse crops, soybeans, and other oilseeds.

      (5) DIRECT PAYMENT- The term `direct payment' means a payment made to producers on a farm under section 1103.

      (6) 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 1104 to determine whether counter-cyclical payments are required to be made for that crop year.

      (7) EXTRA LONG STAPLE COTTON- The term `extra long staple cotton' means cotton that--

        (A) is produced from pure strain varieties of the Barbadense species or any hybrid of the species, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and

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

      (8) LOAN COMMODITY- The term `loan commodity' means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, soybeans, other oilseeds, wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.

      (9) MEDIUM GRAIN RICE- The term `medium grain rice' includes short grain rice.

      (10) OTHER OILSEED- The term `other oilseed' means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, camelina, or any oilseed designated by the Secretary.

      (11) PAYMENT ACRES- The term `payment acres' means, in the case of direct payments and counter-cyclical payments, 85 percent of the base acres of a covered commodity on a farm on which direct payments or counter-cyclical payments are made.

      (12) PAYMENT YIELD- The term `payment yield' means the yield established for direct payments and counter-cyclical payments under section 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912) as in effect on the day before the date of enactment of this Act, or under section 1102 of this Act, for a farm for a covered commodity.

      (13) PRODUCER-

        (A) IN GENERAL- The term `producer' means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.

        (B) HYBRID SEED- In determining whether a grower of hybrid seed is a producer, the Secretary shall--

          (i) not take into consideration the existence of a hybrid seed contract; and

          (ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this title.

      (14) PULSE CROP- The term `pulse crop' means dry peas, lentils, small chickpeas, and large chickpeas.

      (15) STATE- The term `State' means--

        (A) a State;

        (B) the District of Columbia;

        (C) the Commonwealth of Puerto Rico; and

        (D) any other territory or possession of the United States.

      (16) TARGET PRICE- The term `target price' means the price per bushel, pound, or hundredweight (or other appropriate unit) of a covered commodity used to determine the payment rate for counter-cyclical payments.

      (17) UNITED STATES- The term `United States', when used in a geographical sense, means all of the States.

Subtitle A--Traditional Payments and Loans

PART I--DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

SEC. 1101. BASE ACRES AND PAYMENT ACRES FOR A FARM.

    (a) Adjustment of Base Acres-

      (1) IN GENERAL- The Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm whenever the following circumstances occurs:

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

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

        (C) The producer has eligible pulse crop or camelina acreage.

        (D) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds.

      (2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT RULES- For the crop year in which a base acres adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive either direct payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.

    (b) Prevention of Excess Base Acres-

      (1) REQUIRED REDUCTION- If the sum of the base acres for a farm, together with the acreage described in paragraph (2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered commodities for the farm or the base acres for peanuts for the farm so that the sum of the base acres and acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.

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

        (A) Any base acres for peanuts for the farm.

        (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 Federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage.

        (D) Any eligible pulse crop or camelina acreage, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).

        (E) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).

      (3) SELECTION OF ACRES- The Secretary shall give the owner of the farm the opportunity to select the base acres for a covered commodity or the base acres for peanuts for the farm against which the reduction required by paragraph (1) will be made.

      (4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE- In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.

      (5) COORDINATED APPLICATION OF REQUIREMENTS- The Secretary shall take into account section 1302(b) when applying the requirements of this subsection.

    (c) Reduction in Base Acres-

      (1) REDUCTION AT OPTION OF OWNER-

        (A) IN GENERAL- The owner of a farm may reduce, at any time, the base acres for any covered commodity for the farm.

        (B) EFFECT OF REDUCTION- A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary.

      (2) REQUIRED ACTION BY SECRETARY-

        (A) IN GENERAL- The Secretary shall suspend all direct, counter-cyclical, and average crop revenue payments on base acres for covered commodities for land that is no longer a farming operation or used in conjunction with a farming operation, as determined by the Secretary.

        (B) REDUCTION- The Secretary shall reduce base acres for covered commodities in a manner prescribed by the Secretary, for land that--

          (i) has been developed for commercial or industrial use unless the producer demonstrates that the land remains devoted exclusively to agricultural production; or

          (ii) has been subdivided and developed for multiple residential units or other nonfarming uses, unless the producer demonstrates that the land remains devoted exclusively to agricultural production.

      (3) REVIEW AND REPORT- Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall--

        (A) track each reconstitution of land that is reported by a producer that is covered by paragraph (2);

        (B) include in any end-of-the-year review for purposes of payment limitations or other compliance inspections or other actions taken by the Secretary, a review to ensure compliance with paragraph (2); and

        (C) submit to Congress a report that describes the results of the actions taken under subparagraphs (A) and (B).

SEC. 1102. PAYMENT YIELDS.

    (a) Establishment and Purpose- For the purpose of making direct payments and counter-cyclical payments under this subtitle, the Secretary shall provide for the establishment of a yield for each farm for any designated oilseed, camelina, or eligible pulse crop for which a payment yield was not established under section 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with this section.

    (b) Payment Yields for Designated Oilseeds, Camelina, and Eligible Pulse Crops-

      (1) DETERMINATION OF AVERAGE YIELD- In the case of designated oilseeds, camelina, and eligible pulse crops, the Secretary shall determine the average yield per planted acre for the designated oilseed, camelina, or pulse crop on a farm for the 1998 through 2001 crop years, excluding any crop year in which the acreage planted to the designated oilseed, camelina, or pulse crop was zero.

      (2) ADJUSTMENT FOR PAYMENT YIELD-

        (A) IN GENERAL- The payment yield for a farm for a designated oilseed, camelina, or eligible pulse crop shall be equal to the product of the following:

          (i) The average yield for the designated oilseed, camelina, or pulse crop determined under paragraph (1).

          (ii) The ratio resulting from dividing the national average yield for the designated oilseed, camelina, or pulse crop for the 1981 through 1985 crops by the national average yield for the designated oilseed, camelina, or pulse crop for the 1998 through 2001 crops.

        (B) NO NATIONAL AVERAGE YIELD INFORMATION AVAILABLE- To the extent that national average yield information for a designated oilseed, camelina, or pulse crop is not available, the Secretary shall use such information as the Secretary determines to be fair and equitable to establish a national average yield under this section.

      (3) USE OF PARTIAL COUNTY AVERAGE YIELD- If the yield per planted acre for a crop of a designated oilseed, camelina, or pulse crop for a farm for any of the 1998 through 2001 crop years was less than 75 percent of the county yield for that designated oilseed, camelina, or pulse crop, the Secretary shall assign a yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1).

      (4) NO HISTORIC YIELD DATA AVAILABLE- In the case of establishing yields for designated oilseeds, camelina, and eligible pulse crops, if historic yield data is not available, the Secretary shall use the ratio for dry peas calculated under paragraph (2)(A)(ii) in determining the yields for designated oilseeds, camelina, and eligible pulse crops, as determined to be fair and equitable by the Secretary.

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required- Except as provided in section 1401, for each of the 2008 through 2012 crop years of each covered commodity (other than pulse crops), the Secretary shall make direct payments to producers on farms for which payment yields and base acres are established.

    (b) Payment Rate- The payment rates used to make direct payments with respect to covered commodities for a crop year are as follows:

      (1) Wheat, $0.52 per bushel.

      (2) Corn, $0.28 per bushel.

      (3) Grain sorghum, $0.35 per bushel.

      (4) Barley, $0.24 per bushel.

      (5) Oats, $0.024 per bushel.

      (6) Upland cotton, $0.0667 per pound.

      (7) Long grain rice, $2.35 per hundredweight.

      (8) Medium grain rice, $2.35 per hundredweight.

      (9) Soybeans, $0.44 per bushel.

      (10) Other oilseeds, $0.80 per hundredweight.

    (c) Payment Amount- The amount of the direct payment to be paid to the producers on a farm for a covered commodity for a crop year shall be equal to the product of the following:

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

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

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

    (d) Time for Payment-

      (1) IN GENERAL- In the case of each of the 2008 through 2012 crop years, the Secretary shall make direct payments under this section not earlier than October 1 of the calendar year in which the crop of the covered commodity is harvested.

      (2) ADVANCE PAYMENTS-

        (A) OPTION- At the option of the producers on a farm, the Secretary shall pay in advance up to 22 percent of the direct payment for a covered commodity for any of the 2008 through 2011 crop years to the producers on a farm.

        (B) MONTH-

          (i) SELECTION- Subject to clauses (ii) and (iii), the producers on a farm shall select the month during which the advance payment for a crop year will be made.

          (ii) OPTIONS- The month selected may be any month during the period--

            (I) beginning on December 1 of the calendar year before the calendar year in which the crop of the covered commodity is harvested; and

            (II) ending during the month within which the direct payment would otherwise be made.

          (iii) CHANGE- The producers on a farm may change the selected month for a subsequent advance payment by providing advance notice to the Secretary.

      (3) REPAYMENT OF ADVANCE PAYMENTS- If a producer on a farm that receives an advance direct payment for a crop year ceases to be a producer on that farm, or the extent to which the producer shares in the risk of producing a crop changes, before the date the remainder of the direct payment is made, the producer shall be responsible for repaying the Secretary the applicable amount of the advance payment, as determined by the Secretary.

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required- Subject to sections 1107 and 1401, for each of the 2008 through 2012 crop years for each covered commodity, the Secretary shall make counter-cyclical payments to producers on farms for which payment yields and base acres are established with respect to the covered commodity if the Secretary determines that the effective price for the covered commodity is less than the target price for the covered commodity.

    (b) Effective Price-

      (1) COVERED COMMODITIES OTHER THAN RICE- Except as provided in paragraph (2), for purposes of subsection (a), the effective price for a covered commodity is equal to the sum of the following:

        (A) The higher of the following:

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

          (ii) The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable period under part II.

        (B) The payment rate in effect for the covered commodity under section 1103 for the purpose of making direct payments with respect to the covered commodity.

      (2) RICE- In the case of long grain rice and medium grain rice, for purposes of subsection (a), the effective price for each type or class of rice is equal to the sum of the following:

        (A) The higher of the following:

          (i) The national average market price received by producers during the 12-month marketing year for the type or class of rice, as determined by the Secretary.

          (ii) The national average loan rate for a marketing assistance loan for the type or class of rice in effect for the applicable period under part II.

        (B) The payment rate in effect for the type or class of rice under section 1103 for the purpose of making direct payments with respect to the type or class of rice.

    (c) Target Price-

      (1) IN GENERAL- For purposes of each of the 2008 through 2012 crop years, the target prices for covered commodities shall be as follows:

        (A) Wheat, $4.20 per bushel.

        (B) Corn, $2.63 per bushel.

        (C) Grain sorghum, $2.63 per bushel.

        (D) Barley, $2.63 per bushel.

        (E) Oats, $1.83 per bushel.

        (F) Upland cotton, $0.7225 per pound.

        (G) Long grain rice, $10.50 per hundredweight.

        (H) Medium grain rice, $10.50 per hundredweight.

        (I) Soybeans, $6.00 per bushel.

        (J) Other oilseeds, $12.74 per hundredweight.

        (K) Dry peas, $8.33 per hundredweight.

        (L) Lentils, $12.82 per hundredweight.

        (M) Small chickpeas, $10.36 per hundredweight.

        (N) Large chickpeas, $12.82 per hundredweight.

      (2) SEPARATE TARGET PRICE- The Secretary may not establish a target price for a covered commodity that is different from the target price specified in paragraph (1) for the covered commodity.

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

      (1) the target price for the covered commodity; and

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

    (e) Payment Amount- If counter-cyclical payments are required to be paid for any of the 2008 through 2012 crop years of a covered commodity, the amount of the counter-cyclical payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following:

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

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

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

    (f) Time for Payments-

      (1) GENERAL RULE- If the Secretary determines under subsection (a) that counter-cyclical payments are required to be made under this section for the crop of a covered commodity, the Secretary shall make the counter-cyclical payments for the crop beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

      (2) AVAILABILITY OF PARTIAL PAYMENTS-

        (A) IN GENERAL- If, before the end of the 12-month marketing year for a covered commodity, the Secretary estimates that counter-cyclical payments will be required for the crop of the covered commodity, the Secretary shall give producers on a farm the option to receive partial payments of the counter-cyclical payment projected to be made for that crop of the covered commodity.

        (B) ELECTION-

          (i) IN GENERAL- The Secretary shall allow producers on a farm to make an election to receive partial payments for a covered commodity under subparagraph (A) at any time but not later than 30 days prior to the end of the marketing year for that covered commodity.

          (ii) DATE OF ISSUANCE- The Secretary shall issue the partial payment after the date of an announcement by the Secretary but not later than 30 days prior to the end of the marketing year.

      (3) TIME FOR PARTIAL PAYMENTS- When the Secretary makes partial payments for a covered commodity for any of the 2008 through 2010 crop years--

        (A) the first partial payment shall be made after completion of the first 180 days of the marketing year for the covered commodity; and

        (B) the final partial payment shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

      (4) AMOUNT OF PARTIAL PAYMENT-

        (A) FIRST PARTIAL PAYMENT- For each of the 2008 through 2010 crops of a covered commodity, the first partial payment under paragraph (3) to the producers on a farm may not exceed 40 percent of the projected counter-cyclical payment for the covered commodity for the crop year, as determined by the Secretary.

        (B) FINAL PAYMENT- The final payment for a covered commodity for a crop year shall be equal to the difference between--

          (i) the actual counter-cyclical payment to be made to the producers for the covered commodity for that crop year; and

          (ii) the amount of the partial payment made to the producers under subparagraph (A).

      (5) REPAYMENT- The producers on a farm that receive a partial payment under this subsection for a crop year shall repay to the Secretary the amount, if any, by which the total of the partial payments exceed the actual counter-cyclical payment to be made for the covered commodity for that crop year.

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

    (a) Compliance With Certain Requirements-

      (1) REQUIREMENTS- Before the producers on a farm may receive direct payments or counter-cyclical payments with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments--

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

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

        (C) to comply with the planting flexibility requirements of section 1106;

        (D) to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for peanuts for the farm under part III, for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use (including land subdivided and developed into residential units or other nonfarming uses, or that is otherwise no longer intended to be used in conjunction with a farming operation), as determined by the Secretary; and

        (E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D).

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

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

    (b) Transfer or Change of Interest in Farm-

      (1) TERMINATION-

        (A) IN GENERAL- Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm in base acres for which direct payments or counter-cyclical payments are made shall result in the termination of the payments with respect to the base acres, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).

        (B) EFFECTIVE DATE- The termination shall take effect on the date determined by the Secretary.

      (2) EXCEPTION- If a producer entitled to a direct payment or counter-cyclical payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary.

    (c) Acreage Reports-

      (1) IN GENERAL- As a condition on the receipt of any benefits under this part or part II, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.

      (2) PENALTIES- No penalty with respect to benefits under this part or part II shall be assessed against the producers on a farm for an inaccurate acreage report unless the producers on the farm knowingly and willfully falsified the acreage report.

    (d) Tenants and Sharecroppers- In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

    (e) Sharing of Payments- The Secretary shall provide for the sharing of direct payments and counter-cyclical payments among the producers on a farm on a fair and equitable basis.

SEC. 1106. PLANTING FLEXIBILITY.

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

    (b) Limitations Regarding Certain Commodities-

      (1) GENERAL LIMITATION- The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres unless the commodity, if planted, is destroyed before harvest.

      (2) TREATMENT OF TREES AND OTHER PERENNIALS- The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohibited on base acres.

      (3) COVERED AGRICULTURAL COMMODITIES- Paragraphs (1) and (2) apply to the following agricultural commodities:

        (A) Fruits.

        (B) Vegetables (other than mung beans and pulse crops).

        (C) Wild rice.

    (c) Exceptions- Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection--

      (1) in any region in which there is a history of double-cropping of covered commodities with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted;

      (2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on base acres, except that direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or

      (3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that--

        (A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

        (B) direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural commodity.

    (d) Planting Transferability Pilot Project-

      (1) PILOT PROJECT AUTHORIZED- In addition to the exceptions provided in subsection (c), the Secretary shall carry out a pilot project in the State of Indiana under which paragraphs (1) and (2) of subsection (b) shall not limit the planting of tomatoes grown for processing on up to 10,000 base acres during each of the 2008 through 2009 crop years.

      (2) CONTRACT AND MANAGEMENT REQUIREMENTS- To be eligible for selection to participate in the pilot project, the producers on a farm shall--

        (A) have entered into a contract to produce tomatoes for processing; and

        (B) agree to produce the tomatoes as part of a program of crop rotation on the farm to achieve agronomic and pest and disease management benefits.

      (3) TEMPORARY REDUCTION IN BASE ACRES- The base acres on a farm participating in the pilot program for a crop year shall be reduced by an acre for each acre planted to tomatoes under the pilot program.

      (4) RECALCULATION OF BASE ACRES-

        (A) IN GENERAL- If the Secretary recalculates base acres for a farm while the farm is included in the pilot project, the planting and production of tomatoes on base acres for which a temporary reduction was made under this section shall be considered to be the same as the planting and production of a covered commodity.

        (B) PROHIBITION- Nothing in this paragraph provides authority for the Secretary to recalculate base acres for a farm.

SEC. 1107. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.

    (a) Calculation Method- Subject to subsections (b) and (c), for the purposes of determining the amount of the counter-cyclical payments to be paid to the producers on a farm for long grain rice and medium grain rice under section 1104, the base acres of rice on the farm shall be apportioned using the 4-year average of the percentages of acreage planted in the applicable State to long grain rice and medium grain rice during the 2003 through 2006 crop years, as determined by the Secretary.

    (b) Producer Election- As an alternative to the calculation method described in subsection (a), the Secretary shall provide producers on a farm the opportunity to elect to apportion rice base acres on the farm using the 4-year average of--

      (1) the percentages of acreage planted on the farm to long grain rice and medium grain rice during the 2003 through 2006 crop years;

      (2) the percentages of any acreage on the farm that the producers were prevented from planting to long grain rice and medium grain rice during the 2003 through 2006 crop years because of drought, flood, other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; and

      (3) in the case of a crop year for which a producer on a farm elected not to plant to long grain and medium grain rice during the 2003 through 2006 crop years, the percentages of acreage planted in the applicable State to long grain rice and medium grain rice, as determined by the Secretary.

    (c) Limitation- In carrying out this section, the Secretary shall use the same total base acres, payment acres, and payment yields established with respect to rice under sections 1101 and 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912), as in effect on the day before the date of enactment of this Act, subject to any adjustment under section 1101 of this Act.

SEC. 1108. PERIOD OF EFFECTIVENESS.

    This part shall be effective beginning with the 2008 crop year of each covered commodity through the 2012 crop year.

PART II--MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS

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

    (a) Nonrecourse Loans Available-

      (1) AVAILABILITY- Except as provided in section 1401, for each of the 2008 through 2012 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.

      (2) TERMS AND CONDITIONS- The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 1202 for the loan commodity.

    (b) Eligible Production- The producers on a farm shall be eligible for a marketing assistance loan under subsection (a) for any quantity of a loan commodity produced on the farm.

    (c) Treatment of Certain Commingled Commodities- In carrying out this part, the Secretary shall make loans to producers on a farm that would be eligible to obtain a marketing assistance loan, but for the fact the loan commodity owned by the producers on the farm is commingled with loan commodities of other producers in facilities unlicensed for the storage of agricultural commodities by the Secretary or a State licensing authority, if the producers obtaining the loan agree to immediately redeem the loan collateral in accordance with section 166 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286).

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

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

    (a) Loan Rates- For each of the 2008 through 2012 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:

      (1) In the case of wheat, $2.94 per bushel.

      (2) In the case of corn, $1.95 per bushel.

      (3) In the case of grain sorghum, $1.95 per bushel.

      (4) In the case of barley, $1.95 per bushel.

      (5) In the case of oats, $1.39 per bushel.

      (6) In the case of the base quality of upland cotton, $0.52 per pound.

      (7) In the case of extra long staple cotton, $0.7977 per pound.

      (8) In the case of long grain rice, $6.50 per hundredweight.

      (9) in the case of medium grain rice, $6.50 per hundredweight.

      (10) In the case of soybeans, $5.00 per bushel.

      (11) In the case of other oilseeds, $10.09 per hundredweight.

      (12) In the case of dry peas, $5.40 per hundredweight.

      (13) In the case of lentils, $11.28 per hundredweight.

      (14) In the case of small chickpeas, $7.43 per hundredweight.

      (15) In the case of large chickpeas, $11.28 per hundredweight.

      (16) In the case of graded wool, $1.20 per pound.

      (17) In the case of nongraded wool, $0.40 per pound.

      (18) In the case of mohair, $4.20 per pound.

      (19) In the case of honey, $0.72 per pound.

    (b) Single County Loan Rate for Other Oilseeds- The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsection (a)(10).

    (c) Grading Basis for Marketing Loans for Pulse Crops- The loan rate for pulse crops--

      (1) shall be based on a grade not less than grade number 2 or other grade factors, including the fair and average quality of the 1 or more crops in any year; and

      (2) may be adjusted by the Secretary to reflect the normal market discounts for grades less than number 2 quality.

    (d) Corn and Grain Sorghum- The Secretary shall--

      (1) establish a single county loan rate for corn and grain sorghum in each county;

      (2) establish a single national average loan rate for corn and grain sorghum; and

      (3) determine each county loan rate and the national average loan rate for corn and grain sorghum, and any and all other program loan rates applicable to corn and grain sorghum, from a data set that includes prices for both corn and grain sorghum.

SEC. 1203. TERM OF LOANS.

    (a) Term of Loan- In the case of each loan commodity, a marketing assistance loan under section 1201 shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.

    (b) Extensions Prohibited- The Secretary may not extend the term of a marketing assistance loan for any loan commodity.

SEC. 1204. REPAYMENT OF LOANS.

    (a) General Rule- The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of--

      (1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); 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;

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

        (E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.

    (b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium Grain Rice- The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of--

      (1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

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

    (c) Repayment Rates for Extra Long Staple Cotton- Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

    (d) Prevailing World Market Price- For purposes of this section and section 1207, the Secretary shall prescribe by regulation--

      (1) a formula to determine--

        (A) the prevailing world market price for upland cotton (adjusted to United States quality and location); and

        (B) the prevailing world market price for long grain rice and medium grain rice, adjusted to United States quality and location; and

      (2) a mechanism by which the Secretary shall announce periodically the prevailing world market price for upland cotton, long grain rice, and medium grain rice.

    (e) Adjustment of Prevailing World Market Price for Upland Cotton-

      (1) IN GENERAL- During the period beginning on the date of enactment of this Act and ending July 31, 2013, the Secretary may further adjust the prevailing world market price for upland cotton (adjusted to United States quality and location) if the Secretary determines the adjustment is necessary--

        (A) to minimize potential loan forfeitures;

        (B) to minimize the accumulation of stocks of upland cotton by the Federal Government;

        (C) to allow upland cotton produced in the United States to be marketed freely and competitively, both domestically and internationally;

        (D) to ensure that upland cotton produced in the United States is competitive in world markets; and

        (E) to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if--

          (i) there are insufficient current-crop price quotations; and

          (ii) the forward-crop price quotation is the lowest such quotation available.

      (2) GUIDELINES FOR ADDITIONAL ADJUSTMENTS- In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.

    (f) Repayment Rates for Confectionery and Other Kinds of Sunflower Seeds- The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of--

      (1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

      (2) the repayment rate established for oil sunflower seed.

    (g) Quality Grades for Pulse Crops- The loan repayment rate for pulse crops shall be based on the quality grades for the applicable commodity specified in section 1202(c).

    (h) Payment of Cotton Storage Costs- Effective for the 2008 through 2012 crop years, the Secretary shall use the funds of the Commodity Credit Corporation to provide cotton storage payments in the same manner, and at the same rates, as the Secretary provided those payments for the 2006 crop of cotton.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments-

      (1) IN GENERAL- Except as provided in subsection (d) and section 1401, the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.

      (2) UNSHORN PELTS, HAY, AND SILAGE-

        (A) MARKETING ASSISTANCE LOANS- Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 1201.

        (B) LOAN DEFICIENCY PAYMENT- Effective for the 2008 through 2012 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.

    (b) Computation- A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying--

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

      (2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201.

    (c) Payment Rate-

      (1) IN GENERAL- In the case of a loan commodity, the payment rate shall be the amount by which--

        (A) the loan rate established under section 1202 for the loan commodity; exceeds

        (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.

      (2) UNSHORN PELTS- In the case of unshorn pelts, the payment rate shall be the amount by which--

        (A) the loan rate established under section 1202 for ungraded wool; exceeds

        (B) the rate at which a marketing assistance loan for ungraded wool may be repaid under section 1204.

      (3) HAY AND SILAGE- In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which--

        (A) the loan rate established under section 1202 for the loan commodity from which the hay or silage is derived; exceeds

        (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.

    (d) Exception for Extra Long Staple Cotton- This section shall not apply with respect to extra long staple cotton.

    (e) Effective Date for Payment Rate Determination-

      (1) LOSS OF BENEFICIAL INTEREST- The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as soon as practicable after the date on which the producers on the farm lose beneficial interest.

      (2) ON-FARM CONSUMPTION- For the quantity of a loan commodity or commodity referred to in subsection (a)(2) consumed on a farm, the Secretary shall provide procedures to determine a date on which the producers on the farm lose beneficial interest.

      (3) APPLICABILITY- This subsection does not apply for the 2009 through 2012 crop years.

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

    (a) Eligible Producers-

      (1) IN GENERAL- Except as provided in section 1401, effective for the 2008 through 2012 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.

      (2) GRAZING OF TRITICALE ACREAGE- Effective for the 2008 through 2012 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.

    (b) Payment Amount-

      (1) IN GENERAL- The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying--

        (A) the loan deficiency payment rate determined under section 1205(c) in effect, as of the date of the agreement, for the county in which the farm is located; by

        (B) the payment quantity determined by multiplying--

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

          (ii) the payment yield in effect for the calculation of direct payments under part I with respect to that loan commodity on the farm or, in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary in a manner consistent with section 1102(c).

      (2) GRAZING OF TRITICALE ACREAGE- The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying--

        (A) the loan deficiency payment rate determined under section 1205(c) in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by

        (B) the payment quantity determined by multiplying--

          (i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and

          (ii) the payment yield in effect for the calculation of direct payments under part I with respect to wheat on the farm or, in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 1102(c).

    (c) Time, Manner, and Availability of Payment-

      (1) TIME AND MANNER- A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 1205.

      (2) AVAILABILITY-

        (A) IN GENERAL- The Secretary shall establish an availability period for the payments authorized by this section.

        (B) CERTAIN COMMODITIES- In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this part.

    (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop Assistance- A 2008 through 2012 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

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

    (a) Special Import Quota-

      (1) DEFINITION OF SPECIAL IMPORT QUOTA- In this subsection, the term `special import quota' means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

      (2) ESTABLISHMENT-

        (A) IN GENERAL- The President shall carry out an import quota program during the period beginning on the date of the enactment of this Act through July 31, 2013, as provided in this subsection.

        (B) PROGRAM REQUIREMENTS- Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.

      (3) QUANTITY- The quota shall be equal to 1 week's consumption of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which data are available.

      (4) APPLICATION- The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary's announcement under paragraph (2) and entered into the United States not later than 180 days after that date.

      (5) OVERLAP- A special quota period may be established that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b).

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

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

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

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

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

      (7) LIMITATION- The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 10 week's consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.

    (b) Limited Global Import Quota for Upland Cotton-

      (1) DEFINITIONS- In this subsection:

        (A) SUPPLY- The term `supply' means, using the latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury--

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

          (ii) production of the current crop; and

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

        (B) DEMAND- The term `demand' means--

          (i) the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which data are available; and

          (ii) the larger of--

            (I) average exports of upland cotton during the preceding 6 marketing years; or

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

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

      (2) PROGRAM- The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:

        (A) QUANTITY- The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which data are available or as estimated by the Secretary.

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

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

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

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

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

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

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

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

    (c) Economic Adjustment Assistance to Users of Upland Cotton-

      (1) IN GENERAL- Subject to paragraph (2), the Secretary shall, on a monthly basis, provide economic adjustment assistance to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.

      (2) VALUE OF ASSISTANCE-

        (A) BEGINNING PERIOD- During the period beginning on August 1, 2008, and ending on June 30, 2013, the value of the assistance provided under paragraph (1) shall be 4 cents per pound.

        (B) SUBSEQUENT PERIOD- Effective beginning on July 1, 2013, the value of the assistance provided under paragraph (1) shall be 0 cents per pound.

      (3) ALLOWABLE PURPOSES- Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.

      (4) REVIEW OR AUDIT- The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.

      (5) IMPROPER USE OF ASSISTANCE- If the Secretary determines, after a review or audit of the records of the domestic user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph (3), the domestic user shall be--

        (A) liable to repay the assistance to the Secretary, plus interest, as determined by the Secretary; and

        (B) ineligible to receive assistance under this subsection for a period of 1 year following the determination of the Secretary.

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

    (a) Competitiveness Program- Notwithstanding any other provision of law, during the period beginning on the date of the enactment of this Act through July 31, 2013, the Secretary shall carry out a program--

      (1) to maintain and expand the domestic use of extra long staple cotton produced in the United States;

      (2) to increase exports of extra long staple cotton produced in the United States; and

      (3) to ensure that extra long staple cotton produced in the United States remains competitive in world markets.

    (b) Payments Under Program; Trigger- Under the program, the Secretary shall make payments available under this section whenever--

      (1) for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and

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

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

    (d) Payment Amount- Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.

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

    (a) High Moisture Feed Grains-

      (1) DEFINITION OF HIGH MOISTURE STATE- In this subsection, the term `high moisture state' means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 1201.

      (2) RECOURSE LOANS AVAILABLE- For each of the 2008 through 2012 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that--

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

        (B) present--

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

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

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

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

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

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

        (B) the lower of the farm program payment yield used to make counter-cyclical payments under part I or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.

    (b) Recourse Loans Available for Seed Cotton- For each of the 2008 through 2012 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.

    (c) Repayment Rates- Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

SEC. 1210. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority- Subject to subsections (e) and (f), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors.

    (b) Manner of Adjustment- The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitles B through E.

    (c) Adjustment on County Basis-

      (1) IN GENERAL- The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.

      (2) PROHIBITION- Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.

    (d) Adjustment in Loan Rate for Cotton-

      (1) IN GENERAL- The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.

      (2) REVISIONS TO QUALITY ADJUSTMENTS FOR UPLAND COTTON-

        (A) IN GENERAL- Not later than 180 days after the enactment of this Act and after consultation with the private sector in accordance with paragraph (3), the Secretary shall implement revisions in the administration of the marketing assistance loan program for upland cotton to more accurately and efficiently reflect market values for upland cotton.

        (B) MANDATORY REVISIONS- Revisions under subparagraph (A) shall include--

          (i) the elimination of warehouse location differentials;

          (ii) the establishment of differentials for the various quality factors and staple lengths of cotton based on a 3-year, weighted moving average of the weighted designated spot market regions, as determined by regional production;

          (iii) the elimination of any artificial split in the premium or discount between upland cotton with a 32 or 33 staple length due to micronaire; and

          (iv) a mechanism to ensure that no premium or discount is established that exceeds the premium or discount associated with a leaf grade that is 1 better than the applicable color grade.

        (C) DISCRETIONARY REVISIONS- Revisions under subparagraph (A) may include--

          (i) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;

          (ii) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and

          (iii) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).

      (3) CONSULTATION WITH PRIVATE SECTOR-

        (A) PRIOR TO REVISION- Prior to implementing any revisions to the administration of the marketing assistance loan program for upland cotton, the Secretary shall consult with a private sector committee that--

          (i) is in existence as of the date of enactment of this Act;

          (ii) has a membership that includes representatives of the production, ginning, warehousing, cooperative, and merchandising segments of the United States cotton industry; and

          (iii) has developed recommendations concerning the revisions.

        (B) REVIEW OF ADJUSTMENTS- The Secretary shall consult with the committee described in subparagraph (A) when conducting a review of adjustments in the operation of the loan program for upland cotton in accordance with paragraph (4).

        (C) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT- The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations under this subsection.

      (4) REVIEW OF ADJUSTMENTS- The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further revisions to the administration of the loan program for upland cotton, by--

        (A) revoking or revising any actions taken under paragraph (2)(B); or

        (B) revoking or revising any actions taken or authorized to be taken under paragraph (2)(C).

      (5) ADJUSTMENTS IN EFFECT PRIOR TO REVISION- The quality differences (premiums and discounts for quality factors) applicable to the loan program for upland cotton (prior to any revisions in accordance with this subsection) shall be established by the Secretary by giving equal weight to--

        (A) loan differences for the preceding crop; and

        (B) market differences for the crop in the designated United States spot markets.

    (e) Corn and Grain Sorghum- In the case of corn and grain sorghum, the Secretary--

      (1) shall administer the applicable loan, marketing loan, and related programs using a single loan rate for corn and grain sorghum that is identical in each individual county;

      (2) shall provide that any adjustment in the corn and grain sorghum loan rate for location shall be determined and applied on the basis of the combined corn and grain sorghum data set in a manner that any transportation adjustment shall be the same for corn and grain sorghum in each individual county; and

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

    (f) Rice- The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).

PART III--PEANUTS

SEC. 1301. DEFINITIONS.

    In this part:

      (1) BASE ACRES FOR PEANUTS- The term `base acres for peanuts' means the number of acres assigned to a farm pursuant to section 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7952), as in effect on the day before the date of enactment of this Act, subject to any adjustment under section 1302 of this Act.

      (2) COUNTER-CYCLICAL PAYMENT- The term `counter-cyclical payment' means a payment made to producers on a farm under section 1304.

      (3) DIRECT PAYMENT- The term `direct payment' means a direct payment made to producers on a farm under section 1303.

      (4) EFFECTIVE PRICE- The term `effective price' means the price calculated by the Secretary under section 1304 for peanuts to determine whether counter-cyclical payments are required to be made under that section for a crop year.

      (5) PAYMENT ACRES- The term `payment acres' means 85 percent of the base acres for peanuts.

      (6) PAYMENT YIELD- The term `payment yield' means the yield established for direct payments and counter-cyclical payments under section 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7952), as in effect on the day before the date of enactment of this Act, for a farm for peanuts.

      (7) PRODUCER-

        (A) IN GENERAL- The term `producer' means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop on a farm and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.

        (B) HYBRID SEED- In determining whether a grower of hybrid seed is a producer, the Secretary shall--

          (i) not take into consideration the existence of a hybrid seed contract; and

          (ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this part.

      (8) STATE- The term `State' means--

        (A) a State;

        (B) the District of Columbia;

        (C) the Commonwealth of Puerto Rico; and

        (D) any other territory or possession of the United States.

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

      (10) UNITED STATES- The term `United States', when used in a geographical sense, means all of the States.

SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.

    (a) Adjustment of Base Acreage for Peanuts-

      (1) TREATMENT OF CONSERVATION RESERVE CONTRACT ACREAGE- The Secretary shall provide for an adjustment, as appropriate, in the base acres for peanuts for a 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.

        (C) The producer has eligible pulse crop or camelina acreage.

        (D) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds.

      (2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT RULES- For the crop year in which a base acres for peanuts adjustment under paragraph (1) is first made, the owner of the farm shall elect to receive either direct payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.

    (b) Prevention of Excess Base Acres for Peanuts-

      (1) REQUIRED REDUCTION- If the sum of the base acres for peanuts for a farm, together with the acreage described in paragraph (2), exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for peanuts for the farm or the base acres for 1 or more covered commodities for the farm so that the sum of the base acres for peanuts 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 for a covered commodity.

        (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 Federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage.

        (D) Any eligible pulse crop or camelina acreage, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).

        (E) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).

      (3) SELECTION OF ACRES- The Secretary shall give the owner of the farm the opportunity to select the base acres for peanuts or the base acres for covered commodities against which the reduction required by paragraph (1) will be made.

      (4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE- In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.

      (5) COORDINATED APPLICATION OF REQUIREMENTS- The Secretary shall take into account section 1101(b) when applying the requirements of this subsection.

    (c) Reduction in Base Acres-

      (1) REDUCTION AT OPTION OF OWNER-

        (A) IN GENERAL- The owner of a farm may reduce, at any time, the base acres for peanuts for the farm.

        (B) EFFECT OF REDUCTION- A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary.

      (2) REQUIRED ACTION BY SECRETARY-

        (A) IN GENERAL- The Secretary shall suspend all direct, counter-cyclical, and average crop revenue payments on base acres for peanuts for land that is no longer a farming operation or used in conjunction with a farming operation, as determined by the Secretary.

        (B) REDUCTION- The Secretary shall reduce base acres for peanuts in a manner prescribed by the Secretary, for land that--

          (i) has been developed for commercial or industrial use unless the producer demonstrates that the land remains devoted exclusively to agricultural production; or

          (ii) has been subdivided and developed for multiple residential units or other nonfarming uses, unless the producer demonstrates that the land remains devoted exclusively to agricultural production.

      (3) REVIEW AND REPORT- Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall--

        (A) track each reconstitution of land that is reported by a producer that is covered by paragraph (2);

        (B) include in any end-of-the-year review for purposes of payment limitations or other compliance inspections or other actions taken by the Secretary, a review to ensure compliance with paragraph (2); and

        (C) submit to Congress a report that describes the results of the actions taken under subparagraphs (A) and (B).

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

    (a) Payment Required- Except as provided in section 1401, for each of the 2008 through 2012 crop years for peanuts, the Secretary shall make direct payments to the producers on a farm to which a payment yield and base acres for peanuts are established.

    (b) Payment Rate- The payment rate used to make direct payments with respect to peanuts for a crop year shall be equal to $36 per ton.

    (c) Payment Amount- The amount of the direct payment to be paid to the producers on a farm for the 2008 through 2012 crops of peanuts shall be equal to the product of the following:

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

      (2) The payment acres on the farm.

      (3) The payment yield for the farm.

    (d) Time for Payment-

      (1) IN GENERAL- In the case of each of the 2008 through 2012 crop years, the Secretary shall make direct payments under this section not earlier than October 1 of the calendar year in which the crop is harvested.

      (2) ADVANCE PAYMENTS-

        (A) OPTION- At the option of the producers on a farm, the Secretary shall pay in advance up to 22 percent of the direct payment for peanuts for any of the 2008 through 2011 crop years to the producers on a farm.

        (B) MONTH-

          (i) SELECTION- Subject to clauses (ii) and (iii), the producers on a farm shall select the month during which the advance payment for a crop year will be made.

          (ii) OPTIONS- The month selected may be any month during the period--

            (I) beginning on December 1 of the calendar year before the calendar year in which the crop of peanuts is harvested; and

            (II) ending during the month within which the direct payment would otherwise be made.

          (iii) CHANGE- The producers on a farm may change the selected month for a subsequent advance payment by providing advance notice to the Secretary.

      (3) REPAYMENT OF ADVANCE PAYMENTS- If a producer on a farm that receives an advance direct payment for a crop year ceases to be a producer on that farm, or the extent to which the producer shares in the risk of producing a crop changes, before the date the remainder of the direct payment is made, the producer shall be responsible for repaying the Secretary the applicable amount of the advance payment, as determined by the Secretary.

SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

    (a) Payment Required- Except as provided in section 1401, for each of the 2008 through 2012 crop years for peanuts, the Secretary shall make counter-cyclical payments to producers on farms for which payment yields and base acres for peanuts are established if the Secretary determines that the effective price for peanuts is less than the target price for peanuts.

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

      (1) The higher of the following:

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

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

      (2) The payment rate in effect for peanuts under section 1303 for the purpose of making direct payments.

    (c) Target Price- For purposes of subsection (a), the target price for peanuts shall be equal to $495 per ton.

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

      (1) the target price; and

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

    (e) Payment Amount- If counter-cyclical payments are required to be paid for any of the 2008 through 2012 crops of peanuts, the amount of the counter-cyclical payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following:

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

      (2) The payment acres on the farm.

      (3) The payment yield for the farm.

    (f) Time for Payments-

      (1) GENERAL RULE- If the Secretary determines under subsection (a) that counter-cyclical payments are required to be made under this section for a crop year, the Secretary shall make the counter-cyclical payments for the crop year beginning on October 1 or as soon as practicable after the end of the marketing year.

      (2) AVAILABILITY OF PARTIAL PAYMENTS-

        (A) IN GENERAL- If, before the end of the 12-month marketing year, the Secretary estimates that counter-cyclical payments will be required under this section for a crop year, the Secretary shall give producers on a farm the option to receive partial payments of the counter-cyclical payment projected to be made for the crop.

        (B) ELECTION-

          (i) IN GENERAL- The Secretary shall allow participants to make an election to receive partial payments under subparagraph (A) at any time but not later than 30 days prior to the end of the marketing year for the crop.

          (ii) DATE OF ISSUANCE- The Secretary shall issue the partial payment after the date of an announcement by the Secretary but not later than 30 days prior to the end of the marketing year.

      (3) TIME FOR PARTIAL PAYMENTS- When the Secretary makes partial payments available for any of the 2008 through 2010 crop years--

        (A) the first partial payment shall be made after completion of the first 180 days of the marketing year for that crop; and

        (B) the final partial payment shall be made on October 1 of the fiscal year starting in the same calendar year as the end of the marketing year for that crop.

      (4) AMOUNT OF PARTIAL PAYMENTS-

        (A) FIRST PARTIAL PAYMENT- For each of the 2008 through 2010 crop years, the first partial payment under paragraph (3) to the producers on a farm may not exceed 40 percent of the projected counter-cyclical payment for the crop year, as determined by the Secretary.

        (B) FINAL PAYMENT- The final payment for a crop year shall be equal to the difference between--

          (i) the actual counter-cyclical payment to be made to the producers for that crop year; and

          (ii) the amount of the partial payment made to the producers under subparagraph (A).

      (5) REPAYMENT- The producers on a farm that receive a partial payment under this subsection for a crop year shall repay to the Secretary the amount, if any, by which the total of the partial payments exceed the actual counter-cyclical payment to be made for that crop year.

SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements-

      (1) REQUIREMENTS- Before the producers on a farm may receive direct payments or counter-cyclical payments under this part with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments--

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

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

        (C) to comply with the planting flexibility requirements of section 1306;

        (D) to use the land on the farm, in a quantity equal to the attributable base acres for peanuts and any base acres for the farm under part I, for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use (including land subdivided and developed into residential units or other nonfarming uses, or that is otherwise no longer intended to be used in conjunction with a farming operation), as determined by the Secretary; and

        (E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D).

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

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

    (b) Transfer or Change of Interest in Farm-

      (1) TERMINATION-

        (A) IN GENERAL- Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm in the base acres for peanuts for which direct payments or counter-cyclical payments are made shall result in the termination of the payments with respect to those acres, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).

        (B) EFFECTIVE DATE- The termination shall take effect on the date determined by the Secretary.

      (2) EXCEPTION- If a producer entitled to a direct payment or counter-cyclical payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary.

    (c) Acreage Reports-

      (1) IN GENERAL- As a condition on the receipt of any benefits under this part, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.

      (2) PENALTIES- No penalty with respect to benefits under this part shall be assessed against the producers on a farm for an inaccurate acreage report unless the producers on the farm knowingly and willfully falsified the acreage report.

    (d) Tenants and Sharecroppers- In carrying out this part, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

    (e) Sharing of Payments- The Secretary shall provide for the sharing of direct payments and counter-cyclical payments among the producers on a farm on a fair and equitable basis.

SEC. 1306. PLANTING FLEXIBILITY.

    (a) Permitted Crops- Subject to subsection (b), any commodity or crop may be planted on the base acres for peanuts on a farm.

    (b) Limitations Regarding Certain Commodities-

      (1) GENERAL LIMITATION- The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres for peanuts unless the commodity, if planted, is destroyed before harvest.

      (2) TREATMENT OF TREES AND OTHER PERENNIALS- The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohibited on base acres for peanuts.

      (3) COVERED AGRICULTURAL COMMODITIES- Paragraphs (1) and (2) apply to the following agricultural commodities:

        (A) Fruits.

        (B) Vegetables (other than mung beans and pulse crops).

        (C) Wild rice.

    (c) Exceptions- Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection--

      (1) in any region in which there is a history of double-cropping of peanuts with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted;

      (2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on the base acres for peanuts, except that direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or

      (3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that--

        (A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

        (B) direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural commodity.

SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR PEANUTS.

    (a) Nonrecourse Loans Available-

      (1) AVAILABILITY- Except as provided in section 1401, for each of the 2008 through 2012 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm.

      (2) TERMS AND CONDITIONS- The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b).

      (3) ELIGIBLE PRODUCTION- The producers on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm.

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

      (5) 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 producers on a farm through--

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

        (B) the Farm Service Agency.

      (6) STORAGE OF LOAN PEANUTS- As a condition on the Secretary's approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree--

        (A) to provide such storage on a nondiscriminatory basis; and

        (B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.

      (7) STORAGE, HANDLING, AND ASSOCIATED COSTS-

        (A) IN GENERAL- Beginning with the 2007 crop of peanuts, to ensure proper storage of peanuts for which a loan is made under this section or section 1307 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7957), the Secretary shall use the funds of the Commodity Credit Corporation to pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.

        (B) REDEMPTION AND FORFEITURE- The Secretary shall--

          (i) require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section or section 1307 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7957); and

          (ii) pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section or section 1307 of that Act.

      (8) MARKETING- A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.

    (b) Loan Rate- The loan rate for a marketing assistance loan for peanuts under subsection (a) shall be equal to $355 per ton.

    (c) Term of Loan-

      (1) IN GENERAL- A marketing assistance loan for peanuts under subsection (a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.

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

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

      (1) the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

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

        (A) minimize potential loan forfeitures;

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

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

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

    (e) Loan Deficiency Payments-

      (1) AVAILABILITY- The Secretary may make loan deficiency payments available to producers on a farm that, 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 loan deficiency payments under this subsection.

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

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

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

      (3) PAYMENT RATE- For purposes of this subsection, the 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) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION-

        (A) IN GENERAL- The Secretary shall determine the amount of the loan deficiency payment to be made under this subsection to the producers on a farm with respect to a quantity of peanuts using the payment rate in effect under paragraph (3) as soon as practicable after the date on which the producers on the farm lose beneficial interest.

        (B) APPLICABILITY- This paragraph does not apply for the 2009 through 2012 crop years.

    (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 that Act (16 U.S.C. 3821 et seq.) during the term of the loan.

    (g) Reimbursable Agreements and Payment of Administrative Expenses- The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this part only in a manner that is consistent with such activities in regard to other commodities.

SEC. 1308. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority- The Secretary may make appropriate adjustments in the loan rates for peanuts for differences in grade, type, quality, location, and other factors.

    (b) Manner of Adjustment- The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for peanuts will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitles B through E.

    (c) Adjustment on County Basis-

      (1) IN GENERAL- The Secretary may establish loan rates for a crop of peanuts for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.

      (2) PROHIBITION- Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.

Subtitle B--Average Crop Revenue Program

SEC. 1401. AVAILABILITY OF AVERAGE CROP REVENUE PAYMENTS.

    (a) Availability and Election of Alternative Approach-

      (1) AVAILABILITY OF AVERAGE CROP REVENUE PAYMENTS- As an alternative to receiving payments or loans under subtitle A with respect to all covered commodities and peanuts on a farm (other than loans for graded and nongraded wool, mohair, and honey), the Secretary shall give the producers on the farm an opportunity to make a 1-time election to instead receive average crop revenue payments under this section for--

        (A) the 2010, 2011, and 2012 crop years;

        (B) the 2011 and 2012 crop years; or

        (C) the 2012 crop year.

      (2) ELECTION; TIME FOR ELECTION-

        (A) IN GENERAL- The Secretary shall provide notice to producers regarding the opportunity to make the election described in paragraph (1).

        (B) NOTICE REQUIREMENTS- The notice shall include--

          (i) notice of the opportunity of the producers on a farm to make the election; and

          (ii) information regarding the manner in which the election must be made and the time periods and manner in which notice of the election must be submitted to the Secretary.

      (3) ELECTION DEADLINE- Within the time period and in the manner prescribed pursuant to paragraph (2), the producers on a farm shall submit to the Secretary notice of the election made under paragraph (1).

      (4) EFFECT OF FAILURE TO MAKE ELECTION- If the producers on a farm fail to make the election under paragraph (1) or fail to timely notify the Secretary of the election made, as required by paragraph (3), the producers shall be deemed to have made the election to receive payments and loans under subtitle A for all covered commodities and peanuts on the farm for the applicable crop year.

    (b) Payments Required-

      (1) IN GENERAL- In the case of producers on a farm who make the election under subsection (a) to receive average crop revenue payments, for any of the 2010 through 2012 crop years for all covered commodities and peanuts, the Secretary shall make average crop revenue payments available to the producers on a farm in accordance with this subsection.

      (2) FIXED PAYMENT COMPONENT- Subject to paragraph (3), in the case of producers on a farm described in paragraph (1), the Secretary shall make average crop revenue payments available to the producers on a farm for each crop year in an amount equal to not less than the product obtained by multiplying--

        (A) $15 per acre; and

        (B) 100 percent of the quantity of base acres on the farm for all covered commodities and peanuts (as adjusted in accordance with the terms and conditions of section 1101 or 1302, as determined by the Secretary).

      (3) REVENUE COMPONENT- The Secretary shall increase the amount of the average crop revenue payments available to the producers on a farm in a State for a crop year if--

        (A) the actual State revenue for the crop year for the covered commodity or peanuts in the State determined under subsection (c); is less than

        (B) the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d).

      (4) TIME FOR PAYMENTS- In the case of each of the 2010 through 2012 crop years, the Secretary shall make average crop revenue payments beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity or peanuts.

    (c) Actual State Revenue-

      (1) IN GENERAL- For purposes of subsection (b)(3)(A), the amount of the actual State revenue for a crop year of a covered commodity shall equal the product obtained by multiplying--

        (A) the actual State yield for each planted acre for the crop year for the covered commodity or peanuts determined under paragraph (2); and

        (B) the average crop revenue program harvest price for the crop year for the covered commodity or peanuts determined under paragraph (3).

      (2) ACTUAL STATE YIELD- For purposes of paragraph (1)(A) and subsection (d)(1)(A), the actual State yield for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal (as determined by the Secretary)--

        (A) the quantity of the covered commodity or peanuts that is produced in the State during the crop year; divided by

        (B) the number of acres that are planted to the covered commodity or peanuts in the State during the crop year.

      (3) AVERAGE CROP REVENUE PROGRAM HARVEST PRICE-

        (A) IN GENERAL- For purposes of paragraph (1)(B), subject to subparagraph (B), the average crop revenue program harvest price for a crop year for a covered commodity or peanuts in a State shall equal the harvest price that is used to calculate revenue under revenue coverage plans that are offered for the crop year for the covered commodity or peanuts in the State under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

        (B) ASSIGNED PRICE- If the Secretary cannot establish the harvest price for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A), the Secretary shall assign a price for the covered commodity or peanuts in the State on the basis of comparable price data.

    (d) Average Crop Revenue Program Guarantee-

      (1) IN GENERAL- The average crop revenue program guarantee for a crop year for a covered commodity or peanuts in a State shall equal 90 percent of the product obtained by multiplying--

        (A) the expected State yield for each planted acre for the crop year for the covered commodity or peanuts in a State determined under paragraph (2); and

        (B) the average crop revenue program pre-planting price for the crop year for the covered commodity or peanuts determined under paragraph (3).

      (2) EXPECTED STATE YIELD-

        (A) IN GENERAL- For purposes of paragraph (1)(A), subject to subparagraph (B), the expected State yield for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal the projected yield for the crop year for the covered commodity or peanuts in the State, based on a linear regression trend of the yield per acre planted to the covered commodity or peanuts in the State during the 1980 through 2006 period using National Agricultural Statistics Service data.

        (B) ASSIGNED YIELD- If the Secretary cannot establish the expected State yield for each planted acre for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A) or if the linear regression trend of the yield per acre planted to the covered commodity or peanuts in the State (as determined under subparagraph (A)) is negative, the Secretary shall assign an expected State yield for each planted acre for the crop year for the covered commodity or peanuts in the State on the basis of expected State yields for planted acres for the crop year for the covered commodity or peanuts in similar States.

      (3) AVERAGE CROP REVENUE PROGRAM PRE-PLANTING PRICE-

        (A) IN GENERAL- For purposes of paragraph (1)(B), subject to subparagraphs (B) and (C), the average crop revenue program pre-planting price for a crop year for a covered commodity or peanuts in a State shall equal the average price that is used to calculate revenue under revenue coverage plans that are offered for the covered commodity in the State under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the crop year and the preceding 2 crop years.

        (B) ASSIGNED PRICE- If the Secretary cannot establish the pre-planting price for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A), the Secretary shall assign a price for the covered commodity or peanuts in the State on the basis of comparable price data.

        (C) MINIMUM AND MAXIMUM PRICE- In the case of each of the 2011 through 2012 crop years, the average crop revenue program pre-planting price for a crop year for a covered commodity or peanuts under subparagraph (A) shall not decrease or increase more than 15 percent from the pre-planting price for the preceding year.

    (e) Payment Amount- If average crop revenue payments are required to be paid for any of the 2010 through 2012 crop years of a covered commodity or peanuts under subsection (b)(3), in addition to the amount payable under subsection (b)(2), the amount of the average crop revenue payment to be paid to the producers on the farm for the crop year under this section shall be increased by an amount equal to the product obtained by multiplying--

      (1) the difference between--

        (A) the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d); and

        (B) the actual State revenue from the crop year for the covered commodity or peanuts in the State determined under subsection (c);

      (2) 85 percent of the quantity of base acres on the farm for the covered commodity or peanuts (as adjusted in accordance with the terms and conditions of section 1101 or 1302, as determined by the Secretary);

      (3) the quotient obtained by dividing--

        (A)(i) the yield used to calculate crop insurance coverage for the covered commodity or peanuts on the farm under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (commonly referred to as `actual production history'); or

        (ii) if actual production history for the covered commodity or peanuts on the farm is not available, a comparable yield as determined by the Secretary; by

        (B) the expected State yield for the crop year, as determined under subsection (d)(2); and

      (4) 90 percent.

    (f) Recourse Loans- For each of the 2010 through 2012 crops of a covered commodity or peanuts, the Secretary shall make available to producers on a farm who elect to receive payments under this section recourse loans, as determined by the Secretary, on any production of the covered commodity.

SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP REVENUE PAYMENTS.

    (a) Compliance With Certain Requirements-

      (1) REQUIREMENTS- Before the producers on a farm may receive average crop revenue payments with respect to the farm, the producers shall agree, and in the case of subparagraph (C), the Farm Service Agency shall certify, during the crop year for which the payments are made and in exchange for the payments--

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

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

        (C) that the individuals or entities receiving payments are producers;

        (D) to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for peanuts for the farm under part III of subtitle A, for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use (including land subdivided and developed into residential units or other nonfarming uses, or that is otherwise no longer intended to be used in conjunction with a farming operation), as determined by the Secretary; and

        (E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D).

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

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

    (b) Transfer or Change of Interest in Farm-

      (1) TERMINATION-

        (A) IN GENERAL- Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which average crop revenue payments are made shall result in the termination of the payments, unless the transferee or owner of the farm agrees to assume all obligations under subsection (a).

        (B) EFFECTIVE DATE- The termination shall take effect on the date determined by the Secretary.

      (2) EXCEPTION- If a producer entitled to an average crop revenue payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary.

    (c) Acreage Reports-

      (1) IN GENERAL- As a condition on the receipt of any benefits under this subtitle, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.

      (2) PENALTIES- No penalty with respect to benefits under subtitle shall be assessed against the producers on a farm for an inaccurate acreage report unless the producers on the farm knowingly and willfully falsified the acreage report.

    (d) Tenants and Sharecroppers- In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

    (e) Sharing of Payments- The Secretary shall provide for the sharing of average crop revenue payments among the producers on a farm on a fair and equitable basis.

    (f) Audit and Report- Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall--

      (1) conduct an audit of average crop revenue payments; and

      (2) submit to Congress a report that describes the results of that audit.

SEC. 1403. PLANTING FLEXIBILITY.

    (a) Permitted Crops- Subject to subsection (b), any commodity or crop may be planted on base acres on a farm for which the producers on a farm elect to receive average crop revenue payments (referred to in this section as `base acres').

    (b) Limitations Regarding Certain Commodities-

      (1) GENERAL LIMITATION- The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres unless the commodity, if planted, is destroyed before harvest.

      (2) TREATMENT OF TREES AND OTHER PERENNIALS- The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohibited on base acres.

      (3) COVERED AGRICULTURAL COMMODITIES- Paragraphs (1) and (2) apply to the following agricultural commodities:

        (A) Fruits.

        (B) Vegetables (other than mung beans and pulse crops).

        (C) Wild rice.

    (c) Exceptions- Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection--

      (1) in any region in which there is a history of double-cropping of covered commodities with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted;

      (2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on base acres, except that average crop revenue payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or

      (3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that--

        (A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

        (B) average crop revenue payments shall be reduced by an acre for each acre planted to such agricultural commodity.

    (d) Planting Transferability Pilot Project- Producers on a farm that elect to receive average crop revenue payments shall be eligible to participate in the pilot program established under section 1106(d) under the same terms and conditions as producers that receive direct payments and counter-cyclical payments.

    (e) Production of Fruits or Vegetables for Processing-

      (1) IN GENERAL- Subject to paragraphs (2) through (4), effective beginning with the 2010 crop years, producers on a farm that elect to receive average crop revenue payments, with the consent of the owner of and any other producers on the farm, may reduce the base acres for a covered commodity for the farm if the reduced acres are used for the planting and production of fruits or vegetables for processing.

      (2) REVERSION TO BASE ACRES FOR COVERED COMMODITY- Any reduced acres on a farm devoted to the planting and production of fruits or vegetables during a crop year under paragraph (1) shall be included in base acres for the covered commodity for the subsequent crop year, unless the producers on the farm make the election described in paragraph (1) for the subsequent crop year.

      (3) RECALCULATION OF BASE ACRES-

        (A) IN GENERAL- Subject to subparagraph (B), if the Secretary recalculates base acres for a farm, the planting and production of fruits or vegetables for processing under paragraph (1) shall be considered to be the same as the planting, prevented planting, or production of a covered commodity.

        (B) AUTHORITY- Nothing in this subsection provides authority for the Secretary to recalculate base acres for a farm covered by this subsection other than as provided in this subsection.

      (4) LIMITATIONS-

        (A) IN GENERAL- This subsection applies in land located in each of the States of Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin.

        (B) ACREAGE LIMIT- The total number of base acres that may be reduced in any State under this subsection shall not exceed 10,000.

Subtitle C--Sugar

SEC. 1501. SUGAR PROGRAM.

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

`SEC. 156. SUGAR PROGRAM.

    `(a) Sugarcane- The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to--

      `(1) 18.00 cents per pound for raw cane sugar for the 2008 crop year;

      `(2) 18.25 cents per pound for raw cane sugar for the 2009 crop year;

      `(3) 18.50 cents per pound for raw cane sugar for the 2010 crop year;

      `(4) 18.75 cents per pound for raw cane sugar for the 2011 crop year; and

      `(5) 19.00 cents per pound for raw cane sugar for the 2012 crop year.

    `(b) Sugar Beets- The Secretary shall make loans available to processors of domestically grown sugar beets at a rate per pound for refined beet sugar that is equal to 128.5 percent of the loan rate per pound of raw cane sugar for the applicable crop year under subsection (a).

    `(c) Term of Loans-

      `(1) IN GENERAL- A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of--

        `(A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or

        `(B) the end of the fiscal year in which the loan is made.

      `(2) SUPPLEMENTAL LOANS- In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall--

        `(A) be made at the loan rate in effect at the time the first loan was made; and

        `(B) mature in 9 months less the quantity of time that the first loan was in effect.

    `(d) Loan Type; Processor Assurances-

      `(1) NONRECOURSE LOANS- The Secretary shall carry out this section through the use of nonrecourse loans.

      `(2) PROCESSOR ASSURANCES-

        `(A) IN GENERAL- The Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for the sugar beets and sugarcane delivered by producers to the processor.

        `(B) MINIMUM PAYMENTS-

          `(i) IN GENERAL- Subject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph.

          `(ii) LIMITATION- In the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor.

      `(3) ADMINISTRATION- The Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan.

    `(e) Loans for In-Process Sugar-

      `(1) DEFINITION OF IN-PROCESS SUGARS AND SYRUPS- In this subsection, the term `in-process sugars and syrups' does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished product that is otherwise eligible for a loan under subsection (a) or (b).

      `(2) AVAILABILITY- The Secretary shall make nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop.

      `(3) LOAN RATE- The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups.

      `(4) FURTHER PROCESSING ON FORFEITURE-

        `(A) IN GENERAL- As a condition of the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (2), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b).

        `(B) TRANSFER TO CORPORATION- Once the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Commodity Credit Corporation.

        `(C) PAYMENT TO PROCESSOR- On transfer of the sugar, the Secretary shall make a payment to the processor in an amount equal to the amount obtained by multiplying--

          `(i) the difference between--

            `(I) the loan rate for raw cane sugar or refined beet sugar, as appropriate; and

            `(II) the loan rate the processor received under paragraph (3); by

          `(ii) the quantity of sugar transferred to the Secretary.

      `(5) LOAN CONVERSION- If the processor does not forfeit the collateral as described in paragraph (4), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may obtain a loan under subsection (a) or (b) for the raw cane sugar or refined beet sugar, as appropriate.

      `(6) TERM OF LOAN- The term of a loan made under this subsection for a quantity of in-process sugars and syrups, when combined with the term of a loan made with respect to the raw cane sugar or refined beet sugar derived from the in-process sugars and syrups, may not exceed 9 months, consistent with subsection (c).

    `(f) Feedstock Flexibility Program for Bioenergy Producers-

      `(1) DEFINITIONS- In this subsection:

        `(A) BIOENERGY- The term `bioenergy' means fuel grade ethanol and other biofuel.

        `(B) BIOENERGY PRODUCER- The term `bioenergy producer' means a producer of bioenergy that uses an eligible commodity to produce bioenergy under this subsection.

        `(C) ELIGIBLE COMMODITY- The term `eligible commodity' means a form of raw or refined sugar or in-process sugar that is eligible--

          `(i) to be marketed in the United States for human consumption; or

          `(ii) to be used for the extraction of sugar for human consumption.

        `(D) ELIGIBLE ENTITY- The term `eligible entity' means an entity located in the United States that markets an eligible commodity in the United States.

      `(2) FEEDSTOCK FLEXIBILITY PROGRAM-

        `(A) PURCHASES AND SALES- For each of fiscal years 2008 through 2012, the Secretary shall purchase eligible commodities from eligible entities and sell such commodities to bioenergy producers for the purpose of producing bioenergy in a manner that ensures that this section is operated at no cost to the Federal Government and avoids forfeitures to the Commodity Credit Corporation.

        `(B) COMPETITIVE PROCEDURES- In carrying out the purchases and sales required under subparagraph (A), the Secretary shall, to the maximum extent practicable, use competitive procedures, including the receiving, offering, and accepting of bids, when entering into contracts with eligible entities and bioenergy producers, provided that the procedures are consistent with the purposes of subparagraph (A).

        `(C) LIMITATION- The purchase and sale of eligible commodities under subparagraph (A) shall only be made for a fiscal year for which the purchases and sales are necessary to ensure that the program under this section is operated at no cost to the Federal Government by avoiding forfeitures to the Commodity Credit Corporation.

      `(3) NOTICE-

        `(A) IN GENERAL- As soon as practicable after the date of enactment of the Food and Energy Security Act of 2007, and each September 1 thereafter through fiscal year 2011, the Secretary shall provide notice to eligible entities and bioenergy producers of the quantity of eligible commodities that shall be made available for purchase and sale for the subsequent fiscal year under this subsection.

        `(B) REESTIMATES- Not later than the first day of each of the second through fourth quarters of each of fiscal years 2008 through 2012, the Secretary shall reestimate the quantity of eligible commodities determined under subparagraph (A), and provide notice and make purchases and sales based on the reestimates.

      `(4) COMMODITY CREDIT CORPORATION INVENTORY- To the extent that an eligible commodity is owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to the program under this section), the Secretary shall sell the eligible commodity to bioenergy producers under this subsection.

      `(5) TRANSFER RULE; STORAGE FEES-

        `(A) GENERAL TRANSFER RULE- Except as provided in subparagraph (C), the Secretary shall ensure that bioenergy producers that purchase eligible commodities pursuant to this subsection take possession of the eligible commodities not later than 30 calendar days after the date of the purchase from the Commodity Credit Corporation.

        `(B) PAYMENT OF STORAGE FEES PROHIBITED-

          `(i) IN GENERAL- The Secretary shall, to the maximum extent practicable, carry out this subsection in a manner that ensures no storage fees are paid by the Commodity Credit Corporation in the administration of this subsection.

          `(ii) EXCEPTION- Clause (i) shall not apply with respect to any commodities owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to the program under this section).

        `(C) OPTION TO PREVENT STORAGE FEES-

          `(i) IN GENERAL- The Secretary may enter into contracts with bioenergy producers to sell eligible commodities to the bioenergy producers prior in time to entering into contracts with eligible entities to purchase the eligible commodities to be used to satisfy the contracts entered into with the bioenergy producers.

          `(ii) SPECIAL TRANSFER RULE- If the Secretary makes a sale and purchase referred to in clause (i), the Secretary shall ensure that the bioenergy producer that purchased eligible commodities takes possession of the eligible commodities not later than 30 calendar days after the date on which the Commodity Credit Corporation purchases the eligible commodities.

      `(6) RELATION TO OTHER LAWS- If sugar that is subject to a marketing allotment under part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is the subject of a purchase by the Secretary under paragraph (2), the sugar shall be considered marketed and shall count against the allocation of a processor of an allotment under that part, as applicable.

      `(7) FUNDING- The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation, including the use of such sums as are necessary, to carry out this subsection.

    `(g) Avoiding Forfeitures; Corporation Inventory Disposition-

      `(1) IN GENERAL- Subject to subsection (d)(3), to the maximum extent practicable, the Secretary shall operate the program established under this section at no cost to the Federal Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation.

      `(2) INVENTORY DISPOSITION-

        `(A) IN GENERAL- To carry out paragraph (1), the Commodity Credit Corporation may accept bids to obtain raw cane sugar or refined beet sugar in the inventory of the Commodity Credit Corporation from (or otherwise make available such commodities, on appropriate terms and conditions, to) processors of sugarcane and processors of sugar beets (acting in conjunction with the producers of the sugarcane or sugar beets processed by the processors) in return for the reduction of production of raw cane sugar or refined beet sugar, as appropriate.

        `(B) BIOENERGY FEEDSTOCK- Sugar beets or sugarcane planted on acreage diverted from production to achieve any reduction required under subparagraph (A) may not be used for any commercial purpose other than as a bioenergy feedstock.

        `(C) ADDITIONAL AUTHORITY- The authority provided under this paragraph is in addition to any authority of the Commodity Credit Corporation under any other law.

    `(h) Information Reporting-

      `(1) DUTY OF PROCESSORS AND REFINERS TO REPORT- A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.

      `(2) DUTY OF PRODUCERS TO REPORT-

        `(A) PROPORTIONATE SHARE STATES- As a condition of a loan made to a processor for the benefit of a producer, the Secretary shall require each producer of sugarcane located in a State (other than the Commonwealth of Puerto Rico) in which there are in excess of 250 producers of sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane of the producer.

        `(B) OTHER STATES- The Secretary may require each producer of sugarcane or sugar beets not covered by subparagraph (A) to report, in a manner prescribed by the Secretary, the yields of, and acres planted to, sugarcane or sugar beets, respectively, of the producer.

      `(3) DUTY OF IMPORTERS TO REPORT-

        `(A) IN GENERAL- Except as provided in subparagraph (B), the Secretary shall require an importer of sugars, syrups, or molasses to be used for human consumption or to be used for the extraction of sugar for human consumption to report, in the manner prescribed by the Secretary, the quantities of the products imported by the importer and the sugar content or equivalent of the products.

        `(B) TARIFF-RATE QUOTAS- Subparagraph (A) shall not apply to sugars, syrups, or molasses that are within the quantities of tariff-rate quotas that are subject to the lower rate of duties.

      `(4) INFORMATION ON MEXICO-

        `(A) COLLECTION- The Secretary shall collect--

          `(i) information of the production, consumption, stocks, and trade of sugar in Mexico, including United States exports of sugar to Mexico; and

          `(ii) publicly-available information on Mexican production, consumption, and trade of high fructose corn syrups.

        `(B) PUBLICATION- The data collected under subparagraph (A) shall be published in each edition of the World Agricultural Supply and Demand Estimates.

      `(5) PENALTY- Any person willfully failing or refusing to furnish the information required under paragraph (1), (2), or (3), or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.

      `(6) MONTHLY REPORTS- Taking into consideration the information received under this subsection, the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.

    `(i) Substitution of Refined Sugar- For purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the United States and the reexport programs and polyhydric alcohol program administered by the Secretary, all refined sugars (whether derived from sugar beets or sugarcane) produced by cane sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under those programs.

    `(j) Effective Period-

      `(1) IN GENERAL- This section shall be effective only for the 2008 through 2012 crops of sugar beets and sugarcane.

      `(2) TRANSITION- The Secretary shall make loans for raw cane sugar and refined beet sugar available for the 2007 crop year on the terms and conditions provided in this section as in effect on the day before the date of enactment of the Food and Energy Security Act of 2007.'.

SEC. 1502. STORAGE FACILITY LOANS.

    Section 1402(c) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7971(c)) is amended--

      (1) in paragraph (1), by striking `and' at the end;

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

      (3) by inserting after paragraph (1) the following:

      `(2) not include any penalty for prepayment'; and

      (4) in paragraph (3) (as redesignated by paragraph (2)), by inserting `other' after `on such'.

SEC. 1503. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

    Subtitle E of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended by adding at the end the following:

`SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

    `(a) Initial Crop Years- Notwithstanding any other provision of law, for each of the 2008 through 2011 crop years, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than--

      `(1) in the case of refined sugar, 15 cents per hundredweight of refined sugar per month; and

      `(2) in the case of raw cane sugar, 10 cents per hundredweight of raw cane sugar per month.

    `(b) Subsequent Crop Years- For each of the 2012 and subsequent crop years, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in the same manner as was used on the day before the date of enactment of this section.'.

SEC. 1504. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

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

      (1) by redesignating paragraphs (1), (2), (3), and (4) as paragraphs (2), (4), (5), and (6), respectively;

      (2) by inserting before paragraph (2) (as so redesignated) the following:

      `(1) HUMAN CONSUMPTION- The term `human consumption', when used in the context of a reference to sugar (whether in the form of sugar, in-process sugar, syrup, molasses, or in some other form) for human consumption, includes sugar for use in human food, beverages, or similar products.'; and

      (3) by inserting after paragraph (2) (as so redesignated) the following:

      `(3) MARKET-

        `(A) IN GENERAL- The term `market' means to sell or otherwise dispose of in commerce in the United States.

        `(B) INCLUSIONS- The term `market' includes--

          `(i) the forfeiture of sugar under the loan program for sugar established under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272);

          `(ii) with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process; and

          `(iii) the sale of sugar for the production of ethanol or other bioenergy product, if the disposition of the sugar is administered by the Secretary under section 156(f) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)).

        `(C) MARKETING YEAR- Forfeited sugar described in subparagraph (B)(i) shall be considered to have been marketed during the crop year for which a loan is made under the loan program described in that subparagraph.'.

    (b) Flexible Marketing Allotments for Sugar- Section 359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to read as follows:

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

    `(a) Sugar Estimates-

      `(1) IN GENERAL- Not later than August 1 before the beginning of each of the 2008 through 2012 crop years for sugarcane and sugar beets, the Secretary shall estimate--

        `(A) the quantity of sugar that will be subject to human consumption in the United States during the crop year;

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

        `(C) the quantity of sugar that will be available from carry-in stocks for human consumption in the United States during the crop year;

        `(D) the quantity of sugar that will be available from the domestic processing of sugarcane, sugar beets, and in-process beet sugar; and

        `(E) the quantity of sugars, syrups, and molasses that will be imported for human consumption or to be used for the extraction of sugar for human consumption in the United States during the crop year, whether the articles are under a tariff-rate quota or are in excess or outside of a tariff-rate quota.

      `(2) EXCLUSION- The estimates under this subsection shall not apply to sugar imported for the production of polyhydric alcohol or to any sugar refined and reexported in refined form or in products containing sugar.

      `(3) REESTIMATES- The Secretary shall make reestimates of sugar consumption, stocks, production, and imports for a crop year as necessary, but not later than the beginning of each of the second through fourth quarters of the crop year.

    `(b) Sugar Allotments-

      `(1) ESTABLISHMENT- By the beginning of each crop year, the Secretary shall establish for that crop year appropriate allotments under section 359c for the marketing by processors of sugar processed from sugar cane or sugar beets or in-process beet sugar (whether the sugar beets or in-process beet sugar was produced domestically or imported) at a level that is--

        `(A) sufficient to maintain raw and refined sugar prices above forfeiture levels so that there will be no forfeitures of sugar to the Commodity Credit Corporation under the loan program for sugar established under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272); but

        `(B) not less than 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.

      `(2) PRODUCTS- The Secretary may include sugar products, the majority content of which is sucrose for human consumption, derived from sugar cane, sugar beets, molasses, or sugar in the allotments established under paragraph (1) if the Secretary determines it to be appropriate for purposes of this part.

    `(c) Coverage of Allotments-

      `(1) IN GENERAL- The marketing allotments under this part shall apply to the marketing by processors of sugar intended for domestic human consumption that has been processed from sugar cane, sugar beets, or in-process beet sugar, whether such sugar beets or in-process beet sugar was produced domestically or imported.

      `(2) EXCEPTIONS- Consistent with the administration of marketing allotments during for each of the 2002 through 2007 crop years, the marketing allotments shall not apply to sugar sold--

        `(A) to facilitate the exportation of the sugar to a foreign country, except that the exports of sugar shall not be eligible to receive credits under reexport programs for refined sugar or sugar containing products administered by the Secretary;

        `(B) to enable another processor to fulfill an allocation established for that processor; or

        `(C) for uses other than domestic human consumption, except for the sale of sugar for the production of ethanol or other bioenergy if the disposition of the sugar is administered by the Secretary under section 156(f) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)).

      `(3) REQUIREMENT- The sale of sugar described in paragraph (2)(B) shall be--

        `(A) made prior to May 1; and

        `(B) reported to the Secretary.

    `(d) Prohibitions-

      `(1) IN GENERAL- During all or part of any crop year for which marketing allotments have been established, no processor of sugar beets or sugarcane shall market for domestic human consumption a quantity of sugar in excess of the allocation established for the processor, except--

        `(A) to enable another processor to fulfill an allocation established for that other processor; or

        `(B) to facilitate the exportation of the sugar.

      `(2) CIVIL PENALTY- Any processor who knowingly violates paragraph (1) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the United States market value, at the time of the commission of the violation, of that quantity of sugar involved in the violation.'.

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

      (1) by striking subsection (b) and inserting the following:

    `(b) Overall Allotment Quantity-

      `(1) IN GENERAL- The Secretary shall establish the overall quantity of sugar to be allotted for the crop year (referred to in this part as the `overall allotment quantity') at a level that is--

        `(A) sufficient to maintain raw and refined sugar prices above forfeiture levels to avoid forfeiture of sugar to the Commodity Credit Corporation; but

        `(B) not less than a quantity equal to 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.

      `(2) ADJUSTMENT- Subject to paragraph (1), the Secretary shall adjust the overall allotment quantity to maintain--

        `(A) raw and refined sugar prices above forfeiture levels to avoid the forfeiture of sugar to the Commodity Credit Corporation; and

        `(B) adequate supplies of raw and refined sugar in the domestic market.';

      (2) in subsection (d)(2), by inserting `or in-process beet sugar' before the period at the end;

      (3) in subsection (g)(1)--

        (A) by striking `(1) IN GENERAL. The Secretary' and inserting the following:

      `(1) ADJUSTMENTS-

        `(A) IN GENERAL- Subject to subparagraph (B), the Secretary'; and

        (B) by adding at the end the following:

        `(B) LIMITATION- In carrying out subparagraph (A), the Secretary may not reduce the overall allotment quantity to a quantity of less than 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.'; and

      (4) by striking subsection (h).

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

      (1) in paragraph (1)(F), by striking `Except as otherwise provided in section 359f(c)(8), if' and inserting `If'; and

      (2) in paragraph (2), by striking subparagraphs (H) and (I) and inserting the following:

        `(H) NEW ENTRANTS STARTING PRODUCTION OR REOPENING FACTORIES-

          `(i) DEFINITION OF NEW ENTRANT-

            `(I) IN GENERAL- In this subparagraph, the term `new entrant' means an individual, corporation, or other entity that--

`(aa) does not have an allocation of the beet sugar allotment under this part;

`(bb) is not affiliated with any other individual, corporation, or entity that has an allocation of beet sugar under this part (referred to in this clause as a `third party'); and

`(cc) will process sugar beets produced by sugar beet growers under contract with the new entrant for the production of sugar at the new or re-opened factory that is the basis for the new entrant allocation.

            `(II) AFFILIATION- For purposes of subclause (I)(bb), a new entrant and a third party shall be considered to be affiliated if--

`(aa) the third party has an ownership interest in the new entrant;

`(bb) the new entrant and the third party have owners in common;

`(cc) the third party has the ability to exercise control over the new entrant by organizational rights, contractual rights, or any other means;

`(dd) the third party has a contractual relationship with the new entrant by which the new entrant will make use of the facilities or assets of the third party; or

`(ee) there are any other similar circumstances by which the Secretary determines that the new entrant and the third party are affiliated.

          `(ii) ALLOCATION FOR A NEW ENTRANT THAT HAS CONSTRUCTED A NEW FACTORY OR REOPENED A FACTORY THAT WAS NOT OPERATED SINCE BEFORE 1998- If a new entrant constructs a new sugar beet processing factory, or acquires and reopens a sugar beet processing factory that last processed sugar beets prior to the 1998 crop year and there is no allocation currently associated with the factory, the Secretary shall--

            `(I) assign an allocation for beet sugar to the new entrant that provides a fair and equitable distribution of the allocations for beet sugar so as to enable the new entrant to achieve a factory utilization rate comparable to the factory utilization rates of other similarly-situated processors; and

            `(II) reduce the allocations for beet sugar of all other processors on a pro rata basis to reflect the allocation to the new entrant.

          `(iii) ALLOCATION FOR A NEW ENTRANT THAT HAS ACQUIRED AN EXISTING FACTORY WITH A PRODUCTION HISTORY-

            `(I) IN GENERAL- If a new entrant acquires an existing factory that has processed sugar beets from the 1998 or subsequent crop year and has a production history, on the mutual agreement of the new entrant and the company currently holding the allocation associated with the factory, the Secretary shall transfer to the new entrant a portion of the allocation of the current allocation holder to reflect the historical contribution of the production of the acquired factory to the total allocation of the current allocation holder.

            `(II) PROHIBITION- In the absence of a mutual agreement described in subclause (I), the new entrant shall be ineligible for a beet sugar allocation.

          `(iv) APPEALS- Any decision made under this subsection may be appealed to the Secretary in accordance with section 359i.'.

    (e) Reassignment of Deficits- Section 359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in paragraphs (1)(D) and (2)(C), by inserting `of raw cane sugar' after `imports' each place it appears.

    (f) Provisions Applicable to Producers- Section 359f(c) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--

      (1) by striking paragraph (8);

      (2) by redesignating paragraphs (1) through (7) as paragraphs (2) through (8), respectively;

      (3) by inserting before paragraph (2) (as so redesignated) the following:

      `(1) DEFINITION OF SEED-

        `(A) IN GENERAL- In this subsection, the term `seed' means only those varieties of seed that are dedicated to the production of sugarcane from which is produced sugar for human consumption.

        `(B) EXCLUSION- The term `seed' does not include seed of a high-fiber cane variety dedicated to other uses, as determined by the Secretary';

      (4) in paragraph (3) (as so redesignated)--

        (A) in the first sentence--

          (i) by striking `paragraph (1)' and inserting `paragraph (2)'; and

          (ii) by inserting `sugar produced from' after `quantity of'; and

        (B) in the second sentence, by striking `paragraph (7)' and inserting `paragraph (8)';

      (5) in the first sentence of paragraph (6)(C) (as so redesignated), by inserting `for sugar' before `in excess of the farm's proportionate share'; and

      (6) in paragraph (8) (as so redesignated), by inserting `sugar from' after `the amount of'.

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

      (1) by striking subsection (a) and inserting the following:

    `(a) Transfer of Acreage Base History-

      `(1) IN GENERAL- For the purpose of establishing proportionate shares for sugarcane farms under section 359f(c), the Secretary, on application of any producer, with the written consent of all owners of a farm, may transfer the acreage base history of the farm to any other parcels of land of the applicant.

      `(2) CONVERTED ACREAGE BASE-

        `(A) IN GENERAL- Sugarcane base acreage established under section 359f(c) that has been or is converted to nonagricultural use on or after May 13, 2002, may be transferred to other land suitable for the production of sugarcane that can be delivered to a processor in a proportionate share State in accordance with this paragraph.

        `(B) NOTIFICATION- Not later than 90 days after the date of the enactment of this paragraph, or on the subsequent conversion of any sugarcane base acreage to a nonagricultural use, the Administrator of the Farm Service Agency shall notify the 1 or more affected landowners of the transferability of the applicable sugarcane acreage base.

        `(C) INITIAL TRANSFER PERIOD- Not later than the end of the 90-day period beginning on the date of receipt of the notification under subparagraph (B), the owner of the base attributable to the acreage at the time of the conversion may transfer the base to 1 or more farms owned by the owner.

        `(D) GROWER OF RECORD- If a transfer under subparagraph (C) cannot be accomplished during the period specified in that subparagraph, the grower of record with regard to the acreage base on the date on which the acreage was converted to nonagricultural use shall--

          `(i) be notified; and

          `(ii) have 90 days from the date of the receipt of the notification to transfer the base to 1 or more farms operated by the grower.

        `(E) POOL DISTRIBUTION-

          `(i) IN GENERAL- If transfers under subparagraphs (B) and (C) cannot be accomplished during the periods specified in those subparagraphs, the county committee of the Farm Service Agency for the applicable county shall place the acreage base in a pool for possible assignment to other farms.

          `(ii) ACCEPTANCE OF REQUESTS- After providing reasonable notice to farm owners, operators, and growers of record in the county, the county committee shall accept requests from owners, operators, and growers of record in the county.

          `(iii) ASSIGNMENT- The county committee shall assign the acreage base to other farms in the county that are eligible and capable of accepting the acreage base, based on a random drawing from among the requests received under clause (ii).

        `(F) STATEWIDE REALLOCATION-

          `(i) IN GENERAL- Any acreage base remaining unassigned after the transfers and processes described in subparagraphs (A) through (E) shall be made available to the State committee of the Farm Service Agency for allocation among the remaining county committees in the State representing counties with farms eligible for assignment of the base, based on a random drawing.

          `(ii) ALLOCATION- Any county committee receiving acreage base under this subparagraph shall allocate the acreage base to eligible farms using the process described in subparagraph (E).

        `(G) STATUS OF REASSIGNED BASE- After acreage base has been reassigned in accordance with this subparagraph, the acreage base shall--

          `(i) remain on the farm; and

          `(ii) be subject to the transfer provisions of paragraph (1).'; and

      (2) in subsection (d)--

        (A) in paragraph (1)--

          (i) by inserting `affected' before `crop-share owners' each place it appears; and

          (ii) by striking `, and from the processing company holding the applicable allocation for such shares,'; and

        (B) in paragraph (2), by striking `based on' and all that follows through the end of subparagraph (B) and inserting `based on--

        `(A) the number of acres of sugarcane base being transferred; and

        `(B) the pro rata amount of allocation at the processing company holding the applicable allocation that equals the contribution of the grower to allocation of the processing company for the sugarcane acreage base being transferred.'.

    (h) Appeals- Section 359i of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ii) is amended--

      (1) in subsection (a), by inserting `or 359g(d)' after `359f'; and

      (2) by striking subsection (c).

    (i) Reallocating Sugar Quota Import Shortfalls- Section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is repealed.

    (j) Administration of Tariff Rate Quotas- Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is amended by adding at the end the following:

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

    `(a) Establishment-

      `(1) IN GENERAL- Except as provided in paragraph (2) and notwithstanding any other provision of law, at the beginning of the quota year, the Secretary shall establish the tariff-rate quotas for raw cane sugar and refined sugars at the minimum level necessary to comply with obligations under international trade agreements that have been approved by Congress.

      `(2) EXCEPTION- Paragraph (1) shall not apply to specialty sugar.

    `(b) Adjustment-

      `(1) BEFORE APRIL 1- Before April 1 of each fiscal year, if there is an emergency shortage of sugar in the United States market that is caused by a war, flood, hurricane, or other natural disaster, or other similar event as determined by the Secretary--

        `(A) the Secretary shall take action to increase the supply of sugar in accordance with sections 359c(b)(2) and 359e(b), including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

        `(B) if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, the Secretary may increase the tariff-rate quota for refined sugars sufficient to accommodate the supply increase, if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272).

      `(2) ON OR AFTER APRIL 1- On or after April 1 of each fiscal year--

        `(A) the Secretary may take action to increase the supply of sugar in accordance with sections 359c(b)(2) and 359e(b), including an increase in the tariff-rate quota for raw cane sugar to accommodate the reassignment to imports; and

        `(B) if there is still a shortage of sugar in the United States market, and marketing of domestic sugar has been maximized, the Secretary may increase the tariff-rate quota for raw cane sugar if the further increase will not threaten to result in the forfeiture of sugar pledged as collateral for a loan under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272).'.

    (k) Period of Effectiveness- Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as amended by subsection (j)) is amended by adding at the end the following:

`SEC. 359l. PERIOD OF EFFECTIVENESS.

    `(a) In General- This part shall be effective only for the 2008 through 2012 crop years for sugar.

    `(b) Transition- The Secretary shall administer flexible marketing allotments for sugar for the 2007 crop year for sugar on the terms and conditions provided in this part as in effect on the day before the date of enactment of this section.'.

    (l) United States Membership in the International Sugar Organization- Not later than 1 year after the date of enactment of this Act, the Secretary shall work with the Secretary of State to restore, to the maximum extent practicable, United States membership in the International Sugar Organization.

SEC. 1505. SENSE OF THE SENATE REGARDING NAFTA SUGAR COORDINATION.

    It is the sense of the Senate that in order to further strengthen the operations of the North American Free Trade Agreement--

      (1) the United States Government and the Government of Mexico should coordinate the operation of their respective sugar policies, to the fullest extent consistent with the international obligations of the United States; and

      (2) the United States Government should consult with the Government of Mexico on policies to avoid disruptions of the United States and Mexican sweetener markets in order to maximize the benefits of sugar policies for growers, processors, and consumers of sugar in the United States and Mexico, while supporting the interests of corn growers, corn refiners, and sweetener users in both markets.

Subtitle D--Dairy

SEC. 1601. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

    (a) Support Activities- During the period beginning on January 1, 2008, and ending on December 31, 2012, the Secretary shall support the price of cheddar cheese, butter, and nonfat dry milk through the purchase of such products made from milk produced in the United States.

    (b) Purchase Price- To carry out subsection (a), the Secretary shall purchase cheddar cheese, butter, and nonfat dry milk at prices that are equivalent to--

      (1) in the case of cheddar cheese--

        (A) in blocks, not less than $1.13 per pound;

        (B) in barrels, not less than $1.10 per pound;

      (2) in the case of butter, not less than $1.05 per pound; and

      (3) in the case of nonfat dry milk, not less than $0.80 per pound.

    (c) Uniform Purchase Price- The prices that the Secretary pays for cheese, butter, or nonfat dry milk under this section shall be uniform for all regions of the United States.

    (d) Sales From Inventories-

      (1) IN GENERAL- Except as provided in paragraph (2), in the case of each commodity specified in subsection (b) that is available for unrestricted use in inventories of the Commodity Credit Corporation, the Secretary may sell the commodity at the market prices prevailing for that commodity at the time of sale.

      (2) MINIMUM AMOUNT- The sale price described in paragraph (1) may not be less than 110 percent of the minimum purchase price specified in subsection (b) for that commodity.

SEC. 1602. NATIONAL DAIRY MARKET LOSS PAYMENTS.

    (a) Definitions- In this section:

      (1) CLASS I MILK- The term `Class I milk' means milk (including milk components) classified as Class I milk under a Federal milk marketing order.

      (2) ELIGIBLE PRODUCTION- The term `eligible production' means milk produced by a producer in a participating State.

      (3) FEDERAL MILK MARKETING ORDER- The term `Federal milk marketing order' means an order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.

      (4) PARTICIPATING STATE- The term `participating State' means each State.

      (5) PRODUCER- The term `producer' means an individual or entity that directly or indirectly (as determined by the Secretary)--

        (A) shares in the risk of producing milk; and

        (B) makes contributions (including land, labor, management, equipment, or capital) to the dairy farming operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation.

    (b) Payments- The Secretary shall offer to enter into contracts with producers on a dairy farm located in a participating State under which the producers receive payments on eligible production.

    (c) Amount- Payments to a producer under this section shall be calculated by multiplying (as determined by the Secretary)--

      (1) the payment quantity for the producer during the applicable month established under subsection (d);

      (2) the amount equal to--

        (A) $16.94 per hundredweight; less

        (B) the Class I milk price per hundredweight in Boston under the applicable Federal milk marketing order; by

      (3)(A) for the period beginning October 1, 2007, and ending September 30, 2008, 34 percent;

      (B) for the period beginning October 1, 2008, and ending August 31, 2012, 45 percent; and

      (C) for the period beginning September 1, 2012, and thereafter, 34 percent.

    (d) Payment Quantity-

      (1) IN GENERAL- Subject to paragraph (2), the payment quantity for a producer during the applicable month under this section shall be equal to the quantity of eligible production marketed by the producer during the month.

      (2) LIMITATION-

        (A) IN GENERAL- The payment quantity for all producers on a single dairy operation for which the producers receive payments under subsection (b) shall not exceed--

          (i) for the period beginning October 1, 2007, and ending September 30, 2008, 2,400,000 pounds;

          (ii) for the period beginning October 1, 2008, and ending August 31, 2012, 4,150,000 pounds; and

          (iii) effective beginning September 1, 2012, 2,400,000 pounds.

        (B) STANDARDS- For purposes of determining whether producers are producers on separate dairy operations or a single dairy operation, the Secretary shall apply the same standards as were applied in implementing the dairy program under section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (as enacted into law by Public Law 106-387; 114 Stat. 1549A-50).

      (3) RECONSTITUTION- The Secretary shall ensure that a producer does not reconstitute a dairy operation for the sole purpose of receiving additional payments under this section.

    (e) Payments- A payment under a contract under this section shall be made on a monthly basis not later than 60 days after the last day of the month for which the payment is made.

    (f) Signup- The Secretary shall offer to enter into contracts under this section during the period beginning on the date that is 90 days after the date of enactment of this Act and ending on September 30, 2012.

    (g) Duration of Contract-

      (1) IN GENERAL- Except as provided in paragraph (2), any contract entered into by producers on a dairy farm under this section shall cover eligible production marketed by the producers on the dairy farm during the period starting with the first day of month the producers on the dairy farm enter into the contract and ending on September 30, 2012.

      (2) VIOLATIONS- If a producer violates the contract, the Secretary may--

        (A) terminate the contract and allow the producer to retain any payments received under the contract; or

        (B) allow the contract to remain in effect and require the producer to repay a portion of the payments received under the contract based on the severity of the violation.

SEC. 1603. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) 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 `2007' and inserting `2012'.

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

SEC. 1604. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking `2007' and inserting `2012'.

SEC. 1605. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.

    Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking subsection (17) and inserting the following:

      `(17) PROVISIONS APPLICABLE TO AMENDMENTS-

        `(A) APPLICABILITY TO AMENDMENTS- The provisions of this section and section 8d applicable to orders shall be applicable to amendments to orders.

        `(B) SUPPLEMENTAL RULES OF PRACTICE-

          `(i) IN GENERAL- Not later than 60 days after the date of enactment of this subparagraph, the Secretary shall issue, using informal rulemaking, supplemental rules of practice to define guidelines and timeframes for the rulemaking process relating to amendments to orders.

          `(ii) ISSUES- At a minimum, the supplemental rules of practice shall establish--

            `(I) proposal submission requirements;

            `(II) pre-hearing information session specifications;

            `(III) written testimony and data request requirements;

            `(IV) public participation timeframes; and

            `(V) electronic document submission standards.

          `(iii) EFFECTIVE DATE- The supplemental rules of practice shall take effect not later than 120 days after the date of enactment of this subparagraph, as determined by the Secretary.

        `(C) HEARING TIMEFRAMES-

          `(i) IN GENERAL- Not more than 30 days after the receipt of a proposal for an amendment hearing regarding a milk marketing order, the Secretary shall--

            `(I) issue a notice providing an action plan and expected timeframes for completion of the hearing not more than 180 days after the date of the issuance of the notice;

            `(II)(aa) issue a request for additional information to be used by the Secretary in making a determination regarding the proposal; and

            `(bb) if the additional information is not provided to the Secretary within the timeframe requested by the Secretary, issue a denial of the request; or

            `(III) issue a denial of the request.

          `(ii) NOTICE- A notice issued under clause (i)(I) shall be individualized for each proceeding and take into consideration--

            `(I) the number of orders affected;

            `(II) the complexity of issues involved; and

            `(III) the extent of the analyses required by applicable Executive orders (including Executive orders relating to civil rights, regulatory flexibility, and economic impact).

          `(iii) RECOMMENDED DECISIONS- A recommended decision on a proposed amendment to an order shall be issued not later than 90 days after the deadline established after the hearing for the submission of post-hearing briefs, unless otherwise provided in the initial notice issued under clause (i)(I).

          `(iv) FINAL DECISIONS- A final decision on a proposed amendment to an order shall be issued not later than 60 days after the deadline for submission of comments and exceptions to the recommended decision issued under clause (ii), unless otherwise provided in the initial notice issued under clause (i)(I).

        `(D) INDUSTRY ASSESSMENTS- If the Secretary determines it is necessary to improve or expedite rulemaking under this subsection, the Secretary may impose an assessment on the affected industry to supplement appropriated funds for the procurement of service providers, such as court reporters.

        `(E) USE OF INFORMAL RULEMAKING- The Secretary may use rulemaking under section 553 of title 5, United States Code, to amend orders, other than provisions of orders that directly affecting milk prices.

        `(F) MONTHLY FEED AND FUEL COSTS FOR MAKE ALLOWANCES- As part of any hearing to adjust make allowances under marketing orders, the Secretary shall--

          `(i) determine the average monthly prices of feed and fuel incurred by dairy producers in the relevant marketing area;

          `(ii) consider the most recent monthly feed and fuel price data available; and

          `(iii) consider those prices in determining whether or not to adjust make allowances.'.

SEC. 1606. DAIRY FORWARD PRICING PROGRAM.

    (a) In General- Section 23 of the Agricultural Adjustment Act (7 U.S.C. 627), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended--

      (1) in the section heading, by striking `pilot';

      (2) by striking subsection (a) and inserting the following:

    `(a) Program Required- The Secretary of Agriculture shall establish a program under which milk producers and cooperative associations of producers are authorized to voluntarily enter into forward price contracts with milk handlers.';

      (3) in subsection (c)--

        (A) in the subsection heading, by striking `Pilot'; and

        (B) in paragraph (1), by striking `pilot';

      (4) by striking subsections (d) and (e); and

      (5) by adding at the end the following:

    `(d) Voluntary Program-

      `(1) IN GENERAL- A milk handler may not require participation in a forward price contract as a condition of the handler receiving milk from a producer or cooperative association of producers.

      `(2) EFFECT OF NONPARTICIPATION- A producer or cooperative association that does not enter into a forward price contract may continue to have milk priced under the minimum payment provisions of the applicable milk marketing order.

      `(3) COMPLAINTS- The Secretary shall--

        `(A) investigate complaints made by producers or cooperative associations of coercion by handlers to enter into forward price contracts; and

        `(B) if the Secretary finds evidence of coercion, take appropriate action.

    `(e) Duration- No forward price contract under this section may--

      `(1) be entered into after September 30, 2012; or

      `(2) may extend beyond September 30, 2015.'.

    (b) Conforming Amendments- Section 23 of the Agricultural Adjustment Act (7 U.S.C. 627), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking `cooperatives' each place it appears in subsections (b) and (c)(2) and inserting `cooperative associations of producers'.

SEC. 1607. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR NONFAT DRY MILK.

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

SEC. 1608. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

    (a) Definition of ASCARR Institution- In this section:

      (1) IN GENERAL- The term `ASCARR Institution' means a public college or university offering a baccalaureate or higher degree in the study of agriculture.

      (2) EXCLUSIONS- The term `ASCARR Institution' does not include an institution eligible to receive funds under--

        (A) the Act of July 2, 1862 (commonly known as the `First Morrill Act') (7 U.S.C. 301 et seq.);

        (B) the Act of August 30, 1890 (commonly known as the `Second Morrill Act') (7 U.S.C. 321 et seq.); or

        (C) the Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note).

    (b) Establishment- Subject to the availability of funds appropriated to carry out this section, the Secretary shall establish a commission to be known as the `Federal Milk Marketing Order Review Commission' (referred to in this section as the `Commission'), which shall conduct a comprehensive review and evaluation of--

      (1) the Federal milk marketing order system in effect on the date of enactment of this Act; and

      (2) non-Federal milk marketing order systems.

    (c) Elements of Review and Evaluation- As part of the review and evaluation under subsection (b), the Commission shall consider legislative and regulatory options for--

      (1) ensuring that the competitiveness of dairy products with other competing products in the marketplace is preserved and enhanced;

      (2) ensuring that dairy producers receive fair and reasonable minimum prices;

      (3) enhancing the competitiveness of United States dairy producers in world markets;

      (4) preventing anticompetitive behavior and ensuring that dairy markets are not prone to manipulation;

      (5) increasing the responsiveness of the Federal milk marketing order system to market forces;

      (6) streamlining and expediting the process by which amendments to Federal milk market orders are adopted;

      (7) simplifying the Federal milk marketing order system;

      (8) evaluating whether the Federal milk marketing order system, established during the Great Depression, continues to serve the interests of the public, dairy processors, and dairy producers;

      (9) evaluating whether Federal milk marketing orders are operating in a manner to minimize costs to taxpayers and consumers, while still maintaining a fair price for producers;

      (10) evaluating the nutritional composition of milk, including the potential benefits and costs of adjusting the milk content standards;

      (11) evaluating the economic benefits to milk producers of establishing a 2-class system of classifying milk consisting of a fluid milk class and a manufacturing grade milk class, with the price of both classes determined using the component prices of butterfat, protein, and other solids; and

      (12) evaluating a change in advance pricing that is used to calculate the advance price of Class II skim milk under Federal milk marketing orders using the 4-week component prices that are used to calculate prices for Class III and Class IV milk.

    (d) Membership-

      (1) COMPOSITION- The Commission shall consist of 18 members.

      (2) MEMBERS- As soon as practicable after the date on which funds are first made available to carry out this section--

        (A) 2 members of the Commission shall be appointed by the Chairman of the Committee on Agriculture of the House of Representatives, in consultation with the ranking member of that committee;

        (B) 2 members of the Commission shall be appointed by the Chairman of the Committee on Agriculture, Nutrition, and Forestry of the Senate, in consultation with the ranking member of that committee;

        (C) 10 members of the Commission shall be appointed by the Secretary;

        (D) 2 members of the Commission shall be appointed by the Chairman of the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies of the House of Representatives, in consultation with the ranking member of that subcommittee; and

        (E) 2 members of the Commission shall be appointed by the Chairman of the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies of the Senate, in consultation with the ranking member of that subcommittee.

      (3) SPECIAL APPOINTMENT REQUIREMENTS- In the case of members of the Commission appointed under paragraph (2)(C), the Secretary shall ensure that--

        (A) at least 1 member represents a national consumer organization;

        (B) at least 4 members represent land-grant colleges or universities (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) or ASCARR institutions with accredited dairy economic programs, with at least 2 of those members being experts in the field of economics;

        (C) at least 1 member represents the food and beverage retail sector; and

        (D) 4 dairy producers and 4 dairy processors are appointed in a manner that will--

          (i) balance geographical distribution of milk production and dairy processing;

          (ii) reflect all segments of dairy processing; and

          (iii) represent all regions of the United States equitably, including States that operate outside of a Federal milk marketing order.

      (4) CHAIR- The Commission shall elect 1 of the members of the Commission to serve as chairperson for the duration of the proceedings of the Commission.

      (5) VACANCY- Any vacancy occurring before the termination of the Commission shall be filled in the same manner as the original appointment.

      (6) COMPENSATION- A member of the Commission shall serve without compensation, but shall be reimbursed by the Secretary from existing budget authority for necessary and reasonable expenses incurred in the performance of the duties of the Commission.

    (e) Report-

      (1) IN GENERAL- Not later than 2 years after the date of the first meeting of the Commission, the Commission shall submit to Congress and the Secretary a report describing the results of the review and evaluation conducted under this section, including such recommendations regarding the legislative and regulatory options considered under subsection (c) as the Commission considers to be appropriate.

      (2) SUPPORT- The report findings shall reflect, to the maximum extent practicable, a consensus opinion of the Commission members, but the report may include majority and minority findings regarding those matters for which consensus was not reached.

    (f) Advisory Nature- The Commission is wholly advisory in nature and the recommendations of the Commission are nonbinding.

    (g) No Effect on Existing Programs- The Secretary shall not allow the existence of the Commission to impede, delay, or otherwise affect any decisionmaking process of the Department of Agriculture, including any rulemaking procedures planned, proposed, or near completion.

    (h) Administrative Assistance- The Secretary shall provide such administrative support to the Commission, and expend such funds as necessary from budget authority available to the Secretary, as is necessary to carry out this section.

    (i) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.

    (j) Termination of Effectiveness- The authority provided by this section terminates effective on the date of the submission of the report under subsection (e).

SEC. 1609. MANDATORY REPORTING OF DAIRY COMMODITIES.

    Section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b) is amended by striking subsections (a) and (b) and inserting the following:

    `(a) Daily Reporting-

      `(1) IN GENERAL- Not later than 180 days after the enactment of the Food and Energy Security Act of 2007, the Secretary shall--

        `(A) establish a program for mandatory daily dairy product information reporting that--

          `(i) provides timely, accurate, and reliable market information;

          `(ii) facilitates more informed marketing decisions; and

          `(iii) promotes competition in the dairy product manufacturing industry; and

        `(B) require officers or officially designated representatives of each dairy processor to report daily pricing information for relevant sales transaction involving a dairy product, as determined by the Secretary.

      `(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public not less frequently than once each reporting day, categorized by appropriate product characteristics, as determined by the Secretary.

    `(b) Requirements-

      `(1) PRICE REPORTING-

        `(A) IN GENERAL- Subject to the conditions described in paragraph (3), on each business day of the Department of Agriculture, each dairy manufacturer shall report to the Secretary on all sales of dairy products that the dairy manufacturer made on the immediately preceding day or since the last report by the dairy manufacturer.

        `(B) REQUIREMENTS- A dairy manufacturer shall report such price, quantity, and product characteristics as the Secretary determines appropriate.

        `(C) SUBMISSION- Reports under this paragraph shall be submitted by electronic means at such time as designated by the Secretary.

        `(D) AVAILABILITY- The Secretary shall compile the information reported under this paragraph and make the compiled information available to the public on the same day as the information is reported.

      `(2) STORAGE REPORTING-

        `(A) IN GENERAL- The Secretary shall require each dairy manufacturer or other person storing dairy products to report, at periodic intervals determined by the Secretary, information regarding the quantities of dairy products in storage.

        `(B) AVAILABILITY- The Secretary shall make information described under subparagraph (A) available to the public in a timely manner.

      `(3) CONDITIONS- The conditions referred to in paragraph (1) are that the information required under that paragraph is required only--

        `(A) with respect to those package sizes actually used to establish minimum prices for Class III or Class IV milk under a Federal milk marketing order; and

        `(B) to the extent that the information is actually used to establish minimum prices for Class III or Class IV milk under a Federal milk marketing order.

      `(4) EXEMPTION FOR SMALL PROCESSORS- The daily reporting requirements of this subsection shall not apply to a processor that processes not more than 1,000,000 pounds of dairy products a year.

      `(5) PERIODIC REVIEW- The Secretary shall--

        `(A) periodically review the information reported for products under this subsection; and

        `(B) propose changes for the information required to be reported under this subsection, through the public hearing process established under the applicable Federal milk marketing order.

      `(6) ELECTRONIC REPORTING- To the maximum extent practicable, the Secretary shall carry out the program established under this subsection using electronic reporting technology.'.

SEC. 1610. ADDITIONAL MANDATORY DAIRY REPORTING.

    Subsection (b)(3) of section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b) (as redesignated by section 1609(2)) is amended--

      (1) by striking `shall take such actions' and inserting `shall--

        `(A) take such actions';

      (2) in subparagraph (A) (as designated by paragraph (1)), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following:

        `(B) include regular audits and comparisons with other related dairy market statistics on at least a quarterly basis.'.

Subtitle E--Administration

SEC. 1701. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation- Except as otherwise provided in subtitles A through D and this subtitle, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out subtitles A through D and this subtitle.

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

    (c) Regulations-

      (1) IN GENERAL- Not later than 90 days after the date of the enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title.

      (2) PROCEDURE- The promulgation of the regulations and administration of this title and the amendments made by this title shall be made without regard to--

        (A) chapter 35 of title 44, United States Code (commonly known as the `Paperwork Reduction Act');

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

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

      (3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

    (d) Adjustment Authority Related to Trade Agreements Compliance-

      (1) REQUIRED DETERMINATION; ADJUSTMENT- If the Secretary determines that expenditures under subtitles A through D and this subtitle that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed such allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of such expenditures during that period to ensure that such expenditures do not exceed such allowable levels.

      (2) CONGRESSIONAL NOTIFICATION- Before making any adjustment under paragraph (1), the Secretary shall submit to the Committee on Agriculture of the House of Representatives or the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the determination made under that paragraph and the extent of the adjustment to be made.

    (e) Treatment of Advance Payment Option- Section 1601(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991(d)) is amended--

      (1) in paragraph (1), by striking `and' at the end;

      (2) in paragraph (2), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following:

      `(3) the advance payment of direct payments and counter-cyclical payments under title I of the Food and Energy Security Act of 2007.'.

SEC. 1702. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938- The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2008 through 2012 crops of covered commodities and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2012:

      (1) Parts II through V of subtitle B of title III (7 U.S.C. 1326 et seq.).

      (2) In the case of upland cotton, section 377 (7 U.S.C. 1377).

      (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).

      (4) Title IV (7 U.S.C. 1401 et seq.).

    (b) Agricultural Act of 1949- The following provisions of the Agricultural Act of 1949 shall not be applicable to the 2008 through 2012 crops of covered commodities and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act and through December 31, 2012:

      (1) Section 101 (7 U.S.C. 1441).

      (2) Section 103(a) (7 U.S.C. 1444(a)).

      (3) Section 105 (7 U.S.C. 1444b).

      (4) Section 107 (7 U.S.C. 1445a).

      (5) Section 110 (7 U.S.C. 1445e).

      (6) Section 112 (7 U.S.C. 1445g).

      (7) Section 115 (7 U.S.C. 1445k).

      (8) Section 201 (7 U.S.C. 1446).

      (9) Title III (7 U.S.C. 1447 et seq.).

      (10) Title IV (7 U.S.C. 1421 et seq.), other than sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).

      (11) Title V (7 U.S.C. 1461 et seq.).

      (12) Title VI (7 U.S.C. 1471 et seq.).

    (c) Suspension of Certain Quota Provisions- The joint resolution entitled `A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended', approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 2008 through 2012.

SEC. 1703. PAYMENT LIMITATIONS.

    (a) Extension of Limitations- Sections 1001 and 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended by striking `Farm Security and Rural Investment Act of 2002' each place it appears and inserting `Food and Energy Security Act of 2007'.

    (b) Revision of Limitations-

      (1) DEFINITIONS- Section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308) is amended--

        (A) in the matter preceding paragraph (1), by inserting `and section 1001A' after `section';

        (B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (5); and

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

      `(2) FAMILY MEMBER- The term `family member' means an individual to whom a member in the farming operation is related as lineal ancestor, lineal descendant, sibling, or spouse.

      `(3) LEGAL ENTITY- The term `legal entity' means an entity that is created under Federal or State law and that--

        `(A) owns land or an agricultural commodity; or

        `(B) produces an agricultural commodity.

      `(4) PERSON- The term `person' means a natural person, and does not include a legal entity.'.

      (2) LIMITATION ON DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsections (b), (c) and (d) and inserting the following:

    `(b) Limitation on Direct and Counter-Cyclical Payments for Covered Commodities (other Than Peanuts)-

      `(1) DIRECT PAYMENTS- The total amount of direct payments received, directly or indirectly, by a person or legal entity (except a joint venture or a general partnership) for any crop year under part I of subtitle A of title I of the Food and Energy Security Act of 2007 for 1 or more covered commodities (except for peanuts), or average crop revenue payments determined under section 1401(b)(2) of that Act, may not exceed $40,000.

      `(2) COUNTER-CYCLICAL PAYMENTS- The total amount of counter-cyclical payments received, directly or indirectly, by a person or legal entity (except a joint venture or a general partnership) for any crop year under part I of subtitle A of title I of the Food and Energy Security Act of 2007 for one or more covered commodities (except for peanuts), or average crop revenue payments determined under section 1401(b)(3) of that Act, may not exceed $60,000.

    `(c) Limitation on Direct Payments and Counter-Cyclical Payments for Peanuts-

      `(1) DIRECT PAYMENTS- The total amount of direct payments received, directly or indirectly, by a person or legal entity (except a joint venture or a general partnership) for any crop year under part III of subtitle A of title I of the Food and Energy Security Act of 2007 for peanuts, or average crop revenue payments determined under section 1401(b)(2) of that Act, may not exceed $40,000.

      `(2) COUNTER-CYCLICAL PAYMENTS- The total amount of counter-cyclical payments received, directly or indirectly, by a person or legal entity (except a joint venture or a general partnership) for any crop year under part III of subtitle A of title I of the Food and Energy Security Act of 2007 for peanuts, or average crop revenue payments determined under section 1401(b)(3) of that Act, may not exceed $60,000.'.

    `(d) Limitation on Applicability- Nothing in this section authorizes any limitation on any benefit associated with the marketing assistance loan program or the loan deficiency payment program under title I of the Food and Energy Security Act of 2007.'.

      (3) DIRECT ATTRIBUTION- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsection (e) and redesignating subsections (f) and (g) as (g) and (h), respectively, and inserting the following:

    `(e) Attribution of Payments-

      `(1) IN GENERAL- In implementing subsections (b) and (c) and a program described in section 1001D(b)(2)(C), the Secretary shall issue such regulations as are necessary to ensure that the total amount of payments are attributed to a person by taking into account the direct and indirect ownership interests of the person in a legal entity that is eligible to receive the payments.

      `(2) PAYMENTS TO A PERSON- Each payment made directly to a person shall be combined with the pro rata interest of the person in payments received by a legal entity in which the person has a direct or indirect ownership interest unless the payments of the legal entity have been reduced by the pro rata share of the person.

      `(3) PAYMENTS TO A LEGAL ENTITY-

        `(A) IN GENERAL- Each payment made to a legal entity shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity unless the payment to the legal entity has been reduced by the pro rata share of the person.

        `(B) ATTRIBUTION OF PAYMENTS-

          `(i) PAYMENT LIMITS- Except as provided in clause (ii), payments made to a legal entity shall not exceed the amounts specified in subsections (b) and (c).

          `(ii) EXCEPTION FOR JOINT VENTURES AND GENERAL PARTNERSHIPS- Payments made to a joint venture or a general partnership shall not exceed, for each payment specified in subsections (b) and (c), the amount determined by multiplying the maximum payment amount specified in subsections (b) and (c) by the number of persons and legal entities (other than joint ventures and general partnerships) that comprise the ownership of the joint venture or general partnership.

          `(iii) REDUCTION- Payments made to a legal entity shall be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity by any individual or legal entity that has otherwise exceeded the applicable maximum payment limitation.

      `(4) 4 levels of attribution for embedded legal entities-

        `(A) IN GENERAL- Attribution of payments made to legal entities shall be traced through 4 levels of ownership in legal entities.

        `(B) FIRST LEVEL- Any payments made to a legal entity (a first-tier legal entity) that is owned in whole or in part by a person shall be attributed to the person in an amount that represents the direct ownership in the first-tier legal entity by the person.

        `(C) SECOND LEVEL-

          `(i) IN GENERAL- Any payments made to a first-tier legal entity that is owned (in whole or in part) by another legal entity (a second-tier legal entity) shall be attributed to the second-tier legal entity in proportion to the ownership of the second-tier legal entity in the first-tier legal entity.

          `(ii) OWNERSHIP BY A PERSON- If the second-tier legal entity is owned (in whole or in part) by a person, the amount of the payment made to the first-tier legal entity shall be attributed to the person in the amount that represents the indirect ownership in the first-tier legal entity by the person.

        `(D) THIRD AND FOURTH LEVELS-

          `(i) IN GENERAL- Except as provided in clause (ii), the Secretary shall attribute payments at the third and fourth tiers of ownership in the same manner as specified in subparagraph (C).

          `(ii) FOURTH-TIER OWNERSHIP- If the fourth-tier of ownership is that of a fourth-tier legal entity and not that of a person, the Secretary shall reduce the amount of the payment to be made to the first-tier legal entity in the amount that represents the indirect ownership in the first-tier legal entity by the fourth-tier legal entity.

    `(f) Special Rules-

      `(1) MINOR CHILDREN-

        `(A) IN GENERAL- Except as provided in subparagraph (B), payments received by a child under the age of 18 shall be attributed to the parents of the child.

        `(B) REGULATIONS- The Secretary shall issue regulations specifying the conditions under which payments received by a child under the age of 18 will not be attributed to the parents of the child.

      `(2) MARKETING COOPERATIVES- Subsections (b) and (c) shall not apply to a cooperative association of producers with respect to commodities produced by the members of the association that are marketed by the association on behalf of the members of the association but shall apply to the producers as persons.

      `(3) TRUSTS AND ESTATES-

        `(A) IN GENERAL- With respect to irrevocable trusts and estates, the Secretary shall administer this section through section 1001F in such manner as the Secretary determines will ensure the fair and equitable treatment of the beneficiaries of the trusts and estates.

        `(B) IRREVOCABLE TRUST-

          `(i) IN GENERAL- In order for a trust to be considered an irrevocable trust, the terms of the trust agreement shall not--

            `(I) allow for modification or termination of the trust by the grantor;

            `(II) allow for the grantor to have any future, contingent, or remainder interest in the corpus of the trust; or

            `(III) except as provided in clause (ii), provide for the transfer of the corpus of the trust to the remainder beneficiary in less than 20 years beginning on the date the trust is established.

          `(ii) EXCEPTION- Clause (i)(III) shall not apply in a case in which the transfer is--

            `(I) contingent on the remainder beneficiary achieving at least the age of majority; or

            `(II) is contingent on the death of the grantor or income beneficiary.

        `(C) REVOCABLE TRUST- For the purposes of this section through section 1001F, a revocable trust shall be considered to be the same person as the grantor of the trust.

      `(4) CASH RENT TENANTS-

        `(A) DEFINITION- In this paragraph, the term `cash rent tenant' means a person or legal entity that rents land--

          `(i) for cash; or

          `(ii) for a crop share guaranteed as to the amount of the commodity to be paid in rent.

        `(B) RESTRICTION- A cash rent tenant who makes a significant contribution of active personal management, but not of personal labor, with respect to a farming operation shall be eligible to receive a payment described in subsection (b) or (c) only if the tenant makes a significant contribution of equipment to the farming operation.

      `(5) FEDERAL AGENCIES-

        `(A) IN GENERAL- A Federal agency shall not be eligible to receive any payment described in subsection (b) or (c).

        `(B) LAND RENTAL- A lessee of land owned by a Federal agency may receive a payment described in subsection (b) or (c) if the lessee otherwise meets all applicable criteria.

      `(6) STATE AND LOCAL GOVERNMENTS-

        `(A) IN GENERAL- Except as provided in subsection (g), a State or local government, or political subdivision or agency of the government, shall not be eligible to receive a payment described in subsection (b) or (c).

        `(B) TENANTS- A lessee of land owned by a State or local government, or political subdivision or agency of the government, may receive payments described in subsections (b) and (c) if the lessee otherwise meet all applicable criteria.

      `(7) CHANGES IN FARMING OPERATIONS-

        `(A) IN GENERAL- In the administration of this section through section 1001F, the Secretary may not approve any change in a farming operation that otherwise will increase the number of persons to which the limitations under this section are applied unless the Secretary determines that the change is bona fide and substantive.

        `(B) FAMILY MEMBERS- The addition of a family member to a farming operation under the criteria set out in section 1001A shall be considered a bona fide and substantive change in the farming operation.

      `(8) DEATH OF OWNER-

        `(A) IN GENERAL- If any ownership interest in land or a commodity is transferred as the result of the death of a program participant, the new owner of the land or commodity may, if the person is otherwise eligible to participate in the applicable program, succeed to the contract of the prior owner and receive payments subject to this section without regard to the amount of payments received by the new owner.

        `(B) LIMITATIONS ON PRIOR OWNER- Payments made under this paragraph shall not exceed the amount to which the previous owner was entitled to receive under the terms of the contract at the time of the death of the prior owner.'.

    (c) Repeal of 3-Entity Rule- Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1) is amended--

      (1) in the section heading, by striking `prevention of creation of entities to qualify as separate persons' and inserting `notification of interests'; and

      (2) by striking subsection (a) and inserting the following:

    `(a) Notification of Interests- To facilitate administration of section 1001 and this section, each person or legal entity receiving payments described in subsections (b) and (c) of section 1001 as a separate person or legal entity shall separately provide to the Secretary, at such times and in such manner as prescribed by the Secretary--

      `(1) the name and social security number of each individual, or the name and taxpayer identification number of each legal entity, that holds or acquires an ownership interest in the separate person or legal entity; and

      `(2) the name and taxpayer identification number of each legal entity in which the person or legal entity holds an ownership interest.'.

    (d) Amendment for Consistency- Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking subsection (b) and inserting the following:

    `(b) Actively Engaged-

      `(1) IN GENERAL- To be eligible to receive a payment described in subsection (b) or (c) of section 1001, a person or legal entity shall be actively engaged in farming with respect to a farming operation as provided in this subsection or subsection (c).

      `(2) CLASSES ACTIVELY ENGAGED- Except as provided in subsections (c) and (d)--

        `(A) a person (including a person participating in a farming operation as a partner in a general partnership, a participant in a joint venture, a grantor of a revocable trust, or a participant in a similar entity, as determined by the Secretary) shall be considered to be actively engaged in farming with respect to a farming operation if--

          `(i) the person makes a significant contribution (based on the total value of the farming operation) to the farming operation of--

            `(I) capital, equipment, or land; and

            `(II) personal labor or active personal management;

          `(ii) the person's share of the profits or losses from the farming operation is commensurate with the contributions of the person to the farming operation; and

          `(iii) the contributions of the person are at risk;

        `(B) a legal entity that is a corporation, joint stock company, association, limited partnership, charitable organization, or other similar entity determined by the Secretary (including any such legal entity participating in the farming operation as a partner in a general partnership, a participant in a joint venture, a grantor of a revocable trust, or as a participant in a similar legal entity as determined by the Secretary) shall be considered as actively engaged in farming with respect to a farming operation if--

          `(i) the legal entity separately makes a significant contribution (based on the total value of the farming operation) of capital, equipment, or land;

          `(ii) the stockholders or members collectively make a significant contribution of personal labor or active personal management to the operation; and

          `(iii) the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity;

        `(C) if a legal entity that is a general partnership, joint venture, or similar entity, as determined by the Secretary, separately makes a significant contribution (based on the total value of the farming operation involved) of capital, equipment, or land, and the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management shall be considered to be actively engaged in farming with respect to the farming operation involved; and

        `(D) in making determinations under this subsection regarding equipment and personal labor, the Secretary shall take into consideration the equipment and personal labor normally and customarily provided by farm operators in the area involved to produce program crops.

    `(c) Special Classes Actively Engaged-

      `(1) LANDOWNER- A person or legal entity that is a landowner contributing the owned land to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if--

        `(A) the landowner receives rent or income for the use of the land based on the production on the land or the operating results of the operation; and

        `(B) the person or legal entity meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).

      `(2) ADULT FAMILY MEMBER- If a majority of the participants in a farming operation are family members, an adult family member shall be considered to be actively engaged in farming with respect to the farming operation if the person--

        `(A) makes a significant contribution, based on the total value of the farming operation, of active personal management or personal labor; and

        `(B) with respect to such contribution, meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).

      `(3) SHARECROPPER- A sharecropper who makes a significant contribution of personal labor to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if the contribution meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).

      `(4) GROWERS OF HYBRID SEED- In determining whether a person or legal entity growing hybrid seed under contract shall be considered to be actively engaged in farming, the Secretary shall not take into consideration the existence of a hybrid seed contract.

      `(5) CUSTOM FARMING SERVICES-

        `(A) IN GENERAL- A person or legal entity receiving custom farming services shall be considered separately eligible for payment limitation purposes if the person or legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (4) of this subsection.

        `(B) PROHIBITION- No other rules with respect to custom farming shall apply.

      `(6) SPOUSE- If 1 spouse (or estate of a deceased spouse) is determined to be actively engaged, the other spouse shall be determined to have met the requirements of subsection (b)(2)(A)(i)(II).

    `(d) Classes Not Actively Engaged-

      `(1) CASH RENT LANDLORD- A landlord contributing land to a farming operation shall not be considered to be actively engaged in farming with respect to the farming operation if the landlord receives cash rent, or a crop share guaranteed as to the amount of the commodity to be paid in rent, for the use of the land.

      `(2) OTHER PERSONS AND LEGAL ENTITIES- Any other person or legal entity that the Secretary determines does not meet the standards described in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation.'.

    (e) Denial of Program Benefits- Section 1001B of the Food Security Act of 1985 (7 U.S.C. 1308-2) is amended to read as follows:

`SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

    `(a) 2-Year Denial of Program Benefits- A person or legal entity shall be ineligible to receive payments specified in subsections (b) and (c) of section 1001 for the crop year, and the succeeding crop year, in which the Secretary determines that the person or legal entity--

      `(1) failed to comply with section 1001A(b) and adopted or participated in adopting a scheme or device to evade the application of section 1001, 1001A, or 1001C; or

      `(2) intentionally concealed the interest of the person or legal entity in any farm or legal entity engaged in farming.

    `(b) Extended Ineligibility- If the Secretary determines that a person or legal entity, for the benefit of the person or legal entity or the benefit of any other person or legal entity, has knowingly engaged in, or aided in the creation of a fraudulent document, presented false information that was material and relevant to the administration of sections 1001 through 1001F, or committed other equally serious actions (as identified in regulations issued by the Secretary), the Secretary may for a period not to exceed 5 crop years deny the issuance of payments to the person or legal entity.

    `(c) Pro Rata Denial-

      `(1) IN GENERAL- Payments otherwise owed to a person or legal entity described in subsections (a) or (b) shall be denied in a pro rata manner based on the ownership interest of the person or legal entity in a farm.

      `(2) CASH RENT TENANT- Payments otherwise payable to the person or legal entity described in subsection (a) or (b) who is a cash rent tenant on a farm owned or under the control of the person or legal entity shall be denied.

    `(d) Joint and Several Liability- Any member of any legal entity (including partnerships and joint ventures) determined to have knowingly participated in a scheme or device to evade, or that has the purpose of evading, sections 1001, 1001A, or 1001C shall be jointly and severally liable for any amounts that are payable to the Secretary as the result of the scheme or device (including amounts necessary to recover those amounts).

    `(e) Release- The Secretary may partially or fully release from liability any person or legal entity who cooperates with the Secretary in enforcing sections 1001, 1001A, and 1001C, and this section.'.

    (f) Conforming Amendments-

      (1) Section 1009(e) of the Food Security Act of 1985 (7 U.S.C. 1308a(e)) is amended in the second sentence by striking `of $50,000'.

      (2) Section 609(b)(1) of the Emergency Livestock Feed Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by inserting `(before the amendment made by section 1703(a) of the Food and Energy Security Act of 2007)' after `1985'.

      (3) Section 524(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(3)) is amended by inserting `(before the amendment made by section 1703(a) of the Food and Energy Security Act of 2007)' after `1308(5)))'.

      (4) Section 196(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended in paragraphs (1)(A) and (5) by inserting `(before the amendment made by section 1703(a) of the Food and Energy Security Act of 2007)' after `1308)' each place it appears.

      (5) Section 10204(c)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by inserting `(before the amendment made by section 1703(a) of the Food and Energy Security Act of 2007)' after `1308)'.

      (6) Section 1271(c)(3)(A) of the Food, Agriculture, Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) is amended by inserting `(before the amendment made by section 1703(a) of the Food and Energy Security Act of 2007)' after `1308)'.

      (7) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 2401(2)) is amended by inserting `(before the amendment made by section 1703(a) of the Food and Energy Security Act of 2007)' before the period at the end.

    (g) Transition- Section 1001, 1001A, and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to the 2007 crop of any covered commodity or peanuts.

SEC. 1704. ADJUSTED GROSS INCOME LIMITATION.

    (a) Extension of Adjusted Gross Income Limitation- Section 1001D(e) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(e)) is amended by striking `2007' and inserting `2012'.

    (b) Allocation of Income- Section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(a)) is amended by adding at the end the following:

      `(3) ALLOCATION OF INCOME- On the request of any individual filing a joint tax return, the Secretary shall provide for the allocation of adjusted gross income among the individuals filing the return based on a certified statement provided by a certified public accountant or attorney specifying the manner in which the income would have been declared and reported if the individuals had filed 2 separate returns, if the Secretary determines that the calculation is consistent with the information supporting the filed joint return.'.

    (c) Modification of Limitation- Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a) is amended by striking subsection (b) and inserting the following:

    `(b) Limitation-

      `(1) COMMODITY AND CONSERVATION PROGRAMS-

        `(A) COMMODITY PROGRAMS-

          `(i) 2009 CROP YEAR- Notwithstanding any other provision of law, an individual or entity shall not be eligible to receive any benefit described in paragraph (2)(A) during the 2009 crop year if the average adjusted gross income of the individual or entity exceeds $1,000,000, unless not less than 66.66 percent of the average adjusted gross income of the individual or entity is derived from farming, ranching, or forestry operations, as determined by the Secretary.

          `(ii) 2010 AND SUBSEQUENT CROP YEARS- Notwithstanding any other provision of law, an individual or entity shall not be eligible to receive any benefit described in paragraph (2)(A) during any of the 2010 and subsequent crop years if the average adjusted gross income of the individual or entity exceeds $750,000, unless not less than 66.66 percent of the average adjusted gross income of the individual or entity is derived from farming, ranching, or forestry operations, as determined by the Secretary.

        `(B) CONSERVATION PROGRAMS- Notwithstanding any other provision of law, an individual or entity shall not be eligible to receive any benefit described in paragraph (2)(B) during a fiscal year if the average adjusted gross income of the individual or entity exceeds $2,500,000, unless not less than 75 percent of the average adjusted gross income of the individual or entity is derived from farming, ranching, or forestry operations, as determined by the Secretary.

      `(2) COVERED BENEFITS-

        `(A) IN GENERAL- Paragraph (1)(A) apply with respect to the following:

          `(i) A direct payment or counter-cyclical payment under part I or III of subtitle A of title I of the Food and Energy Security Act of 2007.

          `(ii) A marketing loan gain or loan deficiency payment under part II or III of subtitle A of title I of the Food and Energy Security Act of 2007.

          `(iii) An average crop revenue payment under subtitle B of title I of Food and Energy Security Act of 2007.

        `(B) CONSERVATION PROGRAMS- Paragraph (1)(B) applies with respect to a payment under any program under--

          `(i) title XII of this Act;

          `(ii) title II of the Farm Security and Rural Investment Act of 2002 (Public Law 107-171; 116 Stat. 223); or

          `(iii) title II of the Food and Energy Security Act of 2007.

      `(3) INCOME DERIVED FROM FARMING, RANCHING OR FORESTRY OPERATIONS- In determining what portion of the average adjusted gross income of an individual or entity is derived from farming, ranching, or forestry operations, the Secretary shall include income derived from--

        `(A) the production of crops, livestock, or unfinished raw forestry products;

        `(B) the sale, including the sale of easements and development rights, of farm, ranch, or forestry land or water or hunting rights;

        `(C) the sale of equipment to conduct farm, ranch, or forestry operations;

        `(D) the rental or lease of land used for farming, ranching, or forestry operations, including water or hunting rights;

        `(E) the provision of production inputs and services to farmers, ranchers, and foresters;

        `(F) the processing (including packing), storing (including shedding), and transporting of farm, ranch, and forestry commodities;

        `(G) the sale of land that has been used for agriculture; and

        `(H) payments or other income attributable to benefits received under any program authorized under title I or II of the Food and Energy Security Act of 2007.'.

    (d) Transition- Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts.

SEC. 1705. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR CERTAIN PRODUCERS.

    (a) Incentive Payments Required- Subject to subsection (b), the Secretary shall use funds made available under subsection (g) to provide quality incentive payments for the production of oilseeds with specialized traits that enhance human health, as determined by the Secretary.

    (b) Covered Oilseeds- The Secretary shall make payments under this section only for the production of an oilseed variety that has, as determined by the Secretary--

      (1) been demonstrated to improve the health profile of the oilseed for use in human consumption by--

        (A) reducing or eliminating the need to partially hydrogenate the oil derived from the oilseed for use in human consumption; or

        (B) adopting new technology traits; and

      (2) 1 or more impediments to commercialization.

    (c) Request for Proposals-

      (1) ISSUANCE- If funds are made available to carry out this section for a crop year, the Secretary shall issue a request for proposals for payments under this section.

      (2) MULTIYEAR PROPOSALS- An entity may submit a multiyear proposal for payments under this section.

      (3) CONTENT OF PROPOSALS- A proposal for payments under this section shall include a description of--

        (A) each oilseed variety described in subsection (b) and the value of the oilseed variety as a matter of public policy;

        (B) a range for the amount of total per bushel or hundredweight premiums to be paid to producers;

        (C) a per bushel or hundredweight amount of incentive payments requested for each year under this section that does not exceed 1/3 of the total premium offered for any year;

        (D) the period of time, not to exceed 4 years, during which incentive payments are to be provided to producers; and

        (E) the targeted total quantity of production and estimated acres needed to produce the targeted quantity for each year under this section.

    (d) Contracts for Production-

      (1) IN GENERAL- The Secretary shall approve successful proposals submitted under subsection (c) on a timely basis so as to allow production contracts to be entered into with producers in advance of the spring planting season for the 2009 crop year.

      (2) TIMING OF PAYMENTS- The Secretary shall make payments to producers under this section after the Secretary receives documentation that the premium required under a contract has been made to covered producers.

    (e) Administration- If funding provided for a crop year is not fully allocated under the initial request for proposals under subsection (c), the Secretary shall issue additional requests for proposals for subsequent crop years under this section.

    (f) Proprietary Information- The Secretary shall protect proprietary information provided to the Secretary for the purpose of administering this section.

    (g) Authorization of Appropriations- There are authorized to be appropriated to carry out this section $400,000,000 for the period of fiscal years 2008 through 2012.

SEC. 1706. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

    (a) Definitions- In this section:

      (1) ELIGIBLE HARD WHITE WHEAT SEED- The term `eligible hard white wheat seed' means hard white wheat seed that, as determined by the Secretary, is--

        (A) certified;

        (B) of a variety that is suitable for the State in which the seed will be planted;

        (C) rated at least superior with respect to quality; and

        (D) specifically approved under a seed establishment program established by the State Department of Agriculture and the State Wheat Commission of the 1 or more States in which the seed will be planted.

      (2) PROGRAM- The term `program' means the hard white wheat development program established under subsection (b)(1).

      (3) SECRETARY- The term `Secretary' means the Secretary of Agriculture, in consultation with the State Departments of Agriculture and the State Wheat Commissions of the States in regions in which hard white wheat is produced, as determined by the Secretary.

    (b) Establishment-

      (1) IN GENERAL- The Secretary shall establish a hard white wheat development program in accordance with paragraph (2) to promote the establishment of hard white wheat as a viable market class of wheat in the United States by encouraging production of at least 240,000,000 bushels of hard white wheat by 2012.

      (2) PAYMENTS-

        (A) IN GENERAL- Subject to subparagraphs (B) and (C) and subsection (c), the Secretary shall make available incentive payments to producers of each of the 2008 through 2012 crops of hard white wheat.

        (B) ACREAGE LIMITATION- The Secretary shall carry out subparagraph (A) subject to a regional limitation determined by the Secretary on the number of acres for which payments may be received that takes into account planting history and potential planting, but does not exceed a total of 2,900,000 acres or the equivalent volume of production based on a yield of 50 bushels per acre.

        (C) PAYMENT LIMITATIONS- Payments to producers on a farm described in subparagraph (A) shall be--

          (i) in an amount that is not less than $0.20 per bushel; and

          (ii) in an amount that is not less than $2.00 per acre for planting eligible hard white wheat seed.

    (c) Funding- The Secretary shall make available $35,000,000 of funds of the Commodity Credit Corporation during the period of crop years 2008 through 2012 to provide incentive payments to producers of hard white wheat under this section.

SEC. 1707. DURUM WHEAT QUALITY PROGRAM.

    (a) In General- Subject to the availability of funds under subsection (c), the Secretary shall provide compensation to producers of durum wheat in an amount not to exceed 50 percent of the actual cost of fungicides applied to a crop of durum wheat of the producers to control Fusarium head blight (wheat scab) on acres certified to have been planted to Durum wheat in a crop year.

    (b) Insufficient Funds- If the total amount of funds appropriated for a fiscal year under subsection (c) are insufficient to fulfill all eligible requests for compensation under this section, the Secretary shall prorate the compensation payments in a manner determined by the Secretary to be equitable.

    (c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 through 2012.

SEC. 1708. STORAGE FACILITY LOANS.

    (a) In General- As soon as practicable after the date of enactment of this Act, the Secretary shall establish a storage facility loan program to provide funds for producers of grains, oilseeds, pulse crops, hay, renewable biomass, and other storable commodities (other than sugar), as determined by the Secretary, to construct or upgrade storage and handling facilities for the commodities.

    (b) Eligible Producers- A storage facility loan under this section shall be made available to any producer described in subsection (a) that, as determined by the Secretary--

      (1) has a satisfactory credit history;

      (2) has a need for increased storage capacity; and

      (3) demonstrates an ability to repay the loan.

    (c) Term of Loans- A storage facility loan under this section shall have a maximum term of 12 years.

    (d) Loan Amount- The maximum principal amount of a storage facility loan under this section shall be $500,000.

    (e) Loan Disbursements- The Secretary shall provide for partial disbursements of loan principal, as determined to be appropriate and subject to acceptable documentation, to facilitate the purchase and construction of eligible facilities.

    (f) Loan Security- Approval of a storage facility loan under this section shall--

      (1) for loan amounts of less than $150,000, not require a lien on the real estate parcel on which the storage facility is located;

      (2) for loan amounts equal to or more than $150,000, not require a severance agreement from the holder of any prior lien on the real estate parcel on which the storage facility is located, if the borrower--

        (A) agrees to increase the down payment on the storage facility loan by an amount determined appropriate by the Secretary; or

        (B) provides other security acceptable to the Secretary; and

      (3) allow a borrower, upon the approval of the Secretary, to define a subparcel of real estate as security for the storage facility loan if the subparcel is--

        (A) of adequate size and value to adequately secure the loan; and

        (B) not subject to any other liens or mortgages that are superior to the lien interest of the Commodity Credit Corporation.

SEC. 1709. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

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

SEC. 1710. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING LOANS.

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

SEC. 1711. ASSIGNMENT OF PAYMENTS.

    (a) In General- The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments made under the authority of subtitles A through E and this subtitle.

    (b) Notice- The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section.

SEC. 1712. COTTON CLASSIFICATION SERVICES.

    Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is amended to read as follows:

`SEC. 3a. COTTON CLASSIFICATION SERVICES.

    `(a) In General- The Secretary of Agriculture (referred to in this section as the `Secretary') shall--

      `(1) make cotton classification services available to producers of cotton; and

      `(2) provide for the collection of classification fees from participating producers or agents that voluntarily agree to collect and remit the fees on behalf of producers.

    `(b) Use of Fees- Classification fees collected under subsection (a)(2) and the proceeds from the sales of samples submitted under this section shall, to the maximum extent practicable, be used to pay the cost of the services provided under this section, including administrative and supervisory costs.

    `(c) Consultation-

      `(1) IN GENERAL- In establishing the amount of fees under this section, the Secretary shall consult with representatives of the United States cotton industry.

      `(2) EXEMPTION- The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations with representatives of the United States cotton industry under this section.

    `(d) Crediting of Fees- Any fees collected under this section and under section 3d, late payment penalties, the proceeds from the sales of samples, and interest earned from the investment of such funds shall--

      `(1) be credited to the current appropriation account that incurs the cost of services provided under this section and section 3d; and

      `(2) remain available without fiscal year limitation to pay the expenses of the Secretary in providing those services.

    `(e) Investment of Funds- Funds described in subsection (d) may be invested--

      `(1) by the Secretary in insured or fully collateralized, interest-bearing accounts; or

      `(2) at the discretion of the Secretary, by the Secretary of the Treasury in United States Government debt instruments.

    `(f) Lease Agreements- Notwithstanding any other provision of law, the Secretary may enter into long-term lease agreements that exceed 5 years or may take title to property (including through purchase agreements) for the purpose of obtaining offices to be used for the classification of cotton in accordance with this Act, if the Secretary determines that action would best effectuate the purposes of this Act.

    `(g) Authorization of Appropriations- To the extent that financing is not available from fees and the proceeds from the sales of samples, there are authorized to be appropriated such sums as are necessary to carry out this section.'.

SEC. 1713. DESIGNATION OF STATES FOR COTTON RESEARCH AND PROMOTION.

    Section 17(f) of the Cotton Research and Promotion Act (7 U.S.C. 2116(f)) is amended--

      (1) by striking `(f) The term' and inserting the following:

    `(f) Cotton-Producing State-

      `(1) IN GENERAL- The term';

      (2) by striking `more, and the term' and all that follows through the end of the subsection and inserting the following: `more.

      `(2) INCLUSIONS- The term `cotton-producing State' includes--

        `(A) any combination of States described in paragraph (1); and

        `(B) effective beginning with the 2008 crop of cotton, the States of Kansas, Virginia, and Florida.'.

SEC. 1714. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

    Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is amended--

      (1) by striking subsection (d); and

      (2) by redesignating subsections (e) through (g) as subsections (d) through (f), respectively.

SEC. 1715. STATE, COUNTY, AND AREA COMMITTEES.

    Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended--

      (1) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and indenting appropriately;

      (2) in the matter preceding item (aa) (as redesignated by paragraph (1)), by striking `A committee established' and inserting the following:

            `(I) IN GENERAL- Except as provided in subclause (II), a committee established'; and

      (3) by adding at the end the following:

            `(II) COMBINATION OR CONSOLIDATION OF AREAS- A committee established by combining or consolidating 2 or more county or area committees shall consist of not fewer than 3 nor more than 11 members that--

`(aa) are fairly representative of the agricultural producers within the area covered by the county, area, or local committee; and

`(bb) are elected by the agricultural producers that participate or cooperate in programs administered within the area under the jurisdiction of the county, area, or local committee.

            `(III) REPRESENTATION OF SOCIALLY DISADVANTAGED FARMERS AND RANCHERS- The Secretary shall ensure, to the extent practicable, that representation of socially disadvantaged farmers and ranchers is maintained on combined or consolidated committees.

            `(IV) ELIGIBILITY FOR MEMBERSHIP- Notwithstanding any other producer eligibility requirements for service on county or area committees, if a county or area is consolidated or combined, a producer shall be eligible to serve only as a member of the county or area committee that the producer elects to administer the farm records of the producer.'.

SEC. 1716. PROHIBITION ON CHARGING CERTAIN FEES.

    Public Law 108-470 (7 U.S.C. 7416a) is amended--

      (1) in subsection (a), by striking `may' and inserting `shall'; and

      (2) by adding at the end the following:

    `(c) Prohibition on Charging Certain Fees- The Secretary may not charge any fees or related costs for the collection of commodity assessments pursuant to this Act.'.

SEC. 1717. SIGNATURE AUTHORITY.

    In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document containing signatures of program applicants, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of any applicant signing the document on behalf of the applicant or any other individual, entity, general partnership, or joint venture, or the documents relied upon were determined inadequate or invalid, unless the applicant knowingly and willfully falsified the evidence of signature authority or a signature.

SEC. 1718. MODERNIZATION OF FARM SERVICE AGENCY.

    The Secretary shall modernize the Farm Service Agency information technology and communication systems to ensure timely and efficient program delivery at national, State, and County offices.

SEC. 1719. GEOSPATIAL SYSTEMS.

    (a) In General- The Secretary shall ensure that all agencies of the Department of Agriculture consolidate the geospatial systems of the agencies into a single enterprise system that ensures that geospatial data is shareable, portable, and standardized.

    (b) Requirements- In carrying out subsection (a), the Secretary shall--

      (1) identify common datasets;

      (2) give responsibility for managing each identified dataset to the agency best suited for collecting and maintaining that data, as determined by the Secretary; and

      (3) make every effort to minimize the duplication of efforts.

    (c) Availability of Data- The Secretary shall ensure, to the maximum extent practicable, that data is readily available to all agencies beginning not later than 2 years after the date of enactment of this Act.

SEC. 1720. LEASING OFFICE SPACE.

    The Secretary may use the funds, facilities, and authorities of the Commodity Credit Corporation to lease space for use by agencies of the Department of Agriculture in cases in which office space would be jointly occupied by the agencies.

SEC. 1721. REPEALS.

    (a) Commission on Application of Payment Limitations- Section 1605 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7993) is repealed.

    (b) Renewed Availability of Market Loss Assistance and Certain Emergency Assistance to Persons That Failed To Receive Assistance Under Earlier Authorities- Section 1617 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8000) is repealed.

Subtitle F--Specialty Crop Programs

SEC. 1801. DEFINITIONS.

    In this subtitle:

      (1) SPECIALTY CROP- The term `specialty crop' has the meaning given the term in section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465).

      (2) STATE- The term `State' means each of the several States of the United States.

      (3) STATE DEPARTMENT OF AGRICULTURE- The term `State department of agriculture' means the agency, commission, or department of a State government responsible for protecting and promoting agriculture in the State.

PART I--MARKETING, INFORMATION, AND EDUCATION

SEC. 1811. FRUIT AND VEGETABLE MARKET NEWS ALLOCATION.

    (a) In General- The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall carry out market news activities to provide timely price information of United States fruits and vegetables in the United States.

    (b) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $9,000,000 for each of fiscal years 2008 through 2012, to remain available until expended.

SEC. 1812. FARMERS' MARKET PROMOTION PROGRAM.

    Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended--

      (1) in subsection (a), by inserting `and to promote direct producer-to-consumer marketing' before the period at the end;

      (2) in subsection (b)(1)(B), by striking `infrastructure' and inserting `marketing opportunities';

      (3) in subsection (c)(1), by inserting `or a producer network or association' after `cooperative'; and

      (4) by striking subsection (e) and inserting the following:

    `(e) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section--

      `(1) $5,000,000 for each of fiscal years 2008 through 2011; and

      `(2) $10,000,000 for fiscal year 2012.'.

SEC. 1813. FOOD SAFETY INITIATIVES.

    (a) Initiative Authorized- The Secretary may carry out a food safety education program to educate the public and persons in the fresh produce industry about--

      (1) scientifically proven practices for reducing microbial pathogens on fresh produce; and

      (2) methods of reducing the threat of cross-contamination of fresh produce through unsanitary handling practices.

    (b) Cooperation- The Secretary may carry out the education program in cooperation with public and private partners.

    (c) Authorization of Appropriations- There is authorized to be appropriated to the Secretary to carry out this section $1,000,000.

SEC. 1814. CENSUS OF SPECIALTY CROPS.

    (a) Establishment- Not later than September 30, 2008, and each 5 years thereafter, the Secretary shall conduct a census of specialty crops to assist in the regularly development and dissemination of information relative to specialty crops.

    (b) Relation to Other Census- The Secretary may include the census of specialty crops in the census on agriculture.

PART II--ORGANIC PRODUCTION

SEC. 1821. ORGANIC DATA COLLECTION AND PRICE REPORTING.

    Section 2104 of the Organic Foods Production Act of 1990 (7 U.S.C. 6503) is amended by adding at the end the following:

    `(e) Data Collection and Price Reporting- Of the funds of the Commodity Credit Corporation, the Secretary shall use $5,000,000 for the period of fiscal years 2008 through 2012--

      `(1) to collect data relating to organic agriculture;

      `(2) to identify and publish organic production and market data initiatives and surveys;

      `(3) to expand, collect, and publish organic census data analyses;

      `(4) to fund comprehensive reporting of prices relating to organically-produced agricultural products;

      `(5) to conduct analysis relating to organic production, handling, distribution, retail, and trend studies;

      `(6) to study and perform periodic updates on the effects of organic standards on consumer behavior; and

      `(7) to conduct analyses for organic agriculture using the national crop table.'.

SEC. 1822. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS.

    Section 501(e) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401(e)) is amended by striking paragraph (1) and inserting the following:

      `(1) IN GENERAL- Notwithstanding any provision of a commodity promotion law, a person that produces and markets organic products shall be exempt from the payment of an assessment under a commodity promotion law with respect to that portion of agricultural commodities that the person--

        `(A) produces on a certified organic farm (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502); and

        `(B) produces or markets as organically produced (as so defined).'.

SEC. 1823. NATIONAL ORGANIC CERTIFICATION COST SHARE PROGRAM.

    Section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523) is amended to read as follows:

`SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    `(a) Definitions- In this section:

      `(1) PROGRAM- The term `program' means the national certification cost-share program established under subsection (b).

      `(2) SECRETARY- The term `Secretary' means the Secretary of Agriculture, acting through the Agricultural Marketing Service.

    `(b) Establishment- The Secretary shall use amounts made available under subsection (f) to establish a national organic certification cost-share program under which the Secretary shall make payments to States to assist producers and handlers of agricultural products in obtaining certification under the national organic production program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

    `(c) Federal Share-

      `(1) IN GENERAL- Subject to paragraph (2), the Secretary shall pay under this section not more than 75 percent of the costs incurred by a producer or handler in obtaining certification under the national organic production program, as certified to and approved by the Secretary.

      `(2) MAXIMUM AMOUNT- The maximum amount of a payment made to a producer or handler under this section shall be $750.

    `(d) Recordkeeping Requirements-

      `(1) IN GENERAL- The Secretary shall--

        `(A) keep accurate, up-to-date records of requests and disbursements from the program; and

        `(B) require accurate and consistent recordkeeping from each State and entity that receives program payments.

      `(2) FEDERAL REQUIREMENTS- Not later than 30 days after the last day on which a State may request funding under the program, the Secretary shall--

        `(A) determine the number of States requesting funding and the amount of each request; and

        `(B) distribute the funding to the States.

      `(3) STATE REQUIREMENTS- An annual funding request from a State shall include data from the program during the preceding year, including--

        `(A) a description of--

          `(i) the entities that requested reimbursement;

          `(ii) the amount of each reimbursement request; and

          `(iii) any discrepancies between the amount requested and the amount provided;

        `(B) data to support increases in requests expected in the coming year, including information from certifiers or other data showing growth projections; and

        `(C) an explanation of any case in which an annual request is lower than the request of the preceding year.

    `(e) Reporting- Not later than March 1 of each year, the Secretary shall submit to Congress a report that describes the expenditures for each State under the program during the previous fiscal year, including the number of producers and handlers served by the program in the previous fiscal year.

    `(f) Funding-

      `(1) IN GENERAL- Not later than 30 days after the date of enactment of the Food and Energy Security Act of 2007, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of Agriculture to carry out this section $22,000,000, to remain available until expended.

      `(2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.'.

SEC. 1824. NATIONAL ORGANIC PROGRAM.

    Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C. 6522) is amended--

      (1) by striking `There are' and inserting the following:

    `(a) In General- There are'; and

      (2) by adding at the end the following:

    `(b) National Organic Program- Notwithstanding any other provision of law, in order to carry out the activities of the Agricultural Marketing Service under the national organic program established under this title, there are authorized to be appropriated--

      `(1) $5,000,000 for fiscal year 2008;

      `(2) $6,500,000 for fiscal year 2009;

      `(3) $8,000,000 for fiscal year 2010;

      `(4) $9,500,000 for fiscal year 2011; and

      `(5) $11,000,000 for fiscal year 2012.'.

PART III--INTERNATIONAL TRADE

SEC. 1831. FOREIGN MARKET ACCESS STUDY AND STRATEGY PLAN.

    (a) Definition of Uruguay Round Agreements- In this section, the term `Uruguay Round Agreements' includes any agreement described in section 101(d) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)).

    (b) Study- The Comptroller General of the United States shall study--

      (1) the extent to which United States specialty crops have or have not benefitted from any reductions of foreign trade barriers, as provided for in the Uruguay Round Agreements; and

      (2) the reasons why United States specialty crops have or have not benefitted from such trade-barrier reductions.

    (c) Strategy Plan- The Secretary shall prepare a foreign market access strategy plan based on the study in subsection (b), to increase exports of specialty crops, including an assessment of the foreign trade barriers that are incompatible with the Uruguay Round Agreements and a strategy for removing those barriers.

    (d) Report- Not later than 18 months after the date of enactment of this Act--

      (1) the Comptroller General shall submit to Congress a report that contains the results of the study; and

      (2) the Secretary shall submit to Congress the strategy plan.

SEC. 1832. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680) is amended by striking subsection (d) and inserting the following:

    `(d) Petition- A participant in the program may petition the Secretary for an extension of a project carried out under this section that exceeds, or will exceed, applicable time restrictions.

    `(e) Funding-

      `(1) IN GENERAL- The Secretary shall make available to carry out the program under this section--

        `(A) $6,800,000 of funds of, or an equal value of commodities owned by, the Commodity Credit Corporation for each of fiscal years 2008 through 2011; and

        `(B) $2,000,000 of funds of, or an equal value of commodities owned by, the Commodity Credit Corporation for fiscal year 2012 and each subsequent fiscal year.

      `(2) CARRYOVER OF UNOBLIGATED FUNDS- In a case in which the total amount of funds or commodities made available under paragraph (1) for a fiscal year is not obligated in that fiscal year, the Secretary shall make available in the subsequent fiscal year an amount equal to--

        `(A) the amount made available for the fiscal year under paragraph (1); plus

        `(B) the amount not obligated in the previous fiscal year.'

SEC. 1833. CONSULTATIONS ON SANITARY AND PHYTOSANITARY RESTRICTIONS FOR FRUITS AND VEGETABLES.

    To the maximum extent practicable, the Secretary and the United States Trade Representative shall consult with interested persons, and conduct annual briefings, on sanitary and phytosanitary trade issues, including--

      (1) the development of a strategic risk management framework; and

      (2) as appropriate, implementation of peer review for risk analysis.

PART IV--SPECIALTY CROPS COMPETITIVENESS

SEC. 1841. SPECIALTY CROP BLOCK GRANTS.

    (a) Extension of Program- Section 101(a) of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended by striking `2009' and inserting `2012'.

    (b) Eligibility- Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended by striking subsection (e) and inserting the following:

    `(e) Plan Requirements-

      `(1) IN GENERAL- The State plan shall identify the lead agency charged with the responsibility for carrying out the plan and indicate how the grant funds will be used to enhance the competitiveness of specialty crops.

      `(2) REPRESENTATION OF CERTAIN INDIVIDUALS- To the maximum extent practicable and appropriate, the State plan shall be developed taking into consideration the opinions and expertise of beginning farmers or ranchers (as defined in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and socially disadvantaged farmers or ranchers (as defined in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e))) who produce specialty crops.'.

    (c) Audit and Plan Requirements- Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended by striking subsection (h) and inserting the following:

    `(h) Audit and Plan Requirements-

      `(1) IN GENERAL- For each year that a State receives a grant under this section, the State shall conduct an audit of the expenditures of grant funds by the State.

      `(2) SUBMISSION OF AUDIT AND DESCRIPTION- Not later than 30 days after the date of completion of an audit under paragraph (1), the State shall submit to the Secretary of Agriculture--

        `(A) a copy of the audit;

        `(B) a description of the ways in which the State is complying with the requirement under subsection (e); and

        `(C) such additional information as the Secretary may request to ensure, to the maximum extent practicable, that the State is complying with that requirement.'.

    (d) Availability of Funds- Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended by striking subsection (i) and inserting the following:

    `(i) Funding- Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make grants under this section, using--

      `(1) $60,000,000 for fiscal year 2008;

      `(2) $65,000,000 for fiscal year 2009;

      `(3) $70,000,000 for fiscal year 2010;

      `(4) $75,000,000 for fiscal year 2011; and

      `(5) $0 for fiscal year 2012.'.

    (e) Conforming Amendments- Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended--

      (1) in subsection (a), by striking `Subject to the appropriation of funds to carry out this section' and inserting `Using the funds made available under subsection (i)';

      (2) in subsection (b), by striking `appropriated pursuant to the authorization of appropriations in' and inserting `made available under';

      (3) by striking subsection (c) and inserting the following:

    `(c) Minimum Grant Amount- Notwithstanding subsection (b), each State shall receive a grant under this section for each fiscal year in an amount that is at least 1/2 of 1 percent of the total amount of funding made available to carry out this section for the fiscal year.';

      (4) by redesignating subsection (i) as subsection (j); and

      (5) by inserting after subsection (h) the following:

    `(i) Reallocation- The Secretary may reallocate to other States any amounts made available under this section that are not obligated or expended by a date determined by the Secretary.'.

    (f) Definition of Specialty Crop- Section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended by striking paragraph (1) and inserting the following:

      `(1) SPECIALTY CROP- The term `specialty crop' means fruits, vegetables, tree nuts, dried fruits, nursery crops, floriculture, and horticulture, including turfgrass sod and herbal crops.'.

    (g) Definition of State- Section 3(2) of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended by striking `and the Commonwealth of Puerto Rico' and inserting `the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands'.

SEC. 1842. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    Title II of the Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 118 Stat. 3884) is amended by adding at the end the following:

`SEC. 204. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    `(a) In General- The Secretary of Agriculture may make grants under this section to an eligible entity described in subsection (b)--

      `(1) to improve the cost-effective movement of specialty crops to local, regional, national, and international markets; and

      `(2) to address regional intermodal transportation deficiencies that adversely affect the movement of specialty crops to markets inside or outside the United States.

    `(b) Eligible Entities- Grants may be made under this section to--

      `(1) a State or local government;

      `(2) a grower cooperative;

      `(3) a State or regional producer or shipper organization;

      `(4) a nonprofit trucking association and their research entities;

      `(5) a combination of the entities described in paragraphs (1) through (4); or

      `(6) other entities, as determined by the Secretary.

    `(c) Matching Funds- As a condition of the receipt of a grant under this section, the recipient of a grant under this section shall contribute an amount of non-Federal funds toward the project for which the grant is provided that is at least equal to the amount of grant funds received by the recipient under this section.

    `(d) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.'.

SEC. 1843. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

    Title II of the Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 118 Stat. 3884) (as amended by section 1842) is amended by adding at the end the following:

`SEC. 205. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

    `(a) Definitions- In this section:

      `(1) CENTER- The term `Center' means the healthy food enterprise development center established under subsection (b).

      `(2) ELIGIBLE ENTITY- The term `eligible entity' means--

        `(A) a nonprofit organization;

        `(B) a cooperative;

        `(C) a business;

        `(D) an agricultural producer;

        `(E) an academic institution;

        `(F) an individual; and

        `(G) such other entities as the Secretary may designate.

      `(3) SECRETARY- The term `Secretary' means the Secretary of Agriculture.

      `(4) UNDERSERVED COMMUNITY- The term `underserved community' means a community (including an urban or rural community and an Indian tribal community) that, as determined by the Secretary, has--

        `(A) limited access to affordable, healthy foods, including fresh fruits and vegetables;

        `(B) a high incidence of a diet-related disease (including obesity) as compared to the national average;

        `(C) a high rate of hunger or food insecurity; or

        `(D) severe or persistent poverty.

    `(b) Center- The Secretary, acting through the Agricultural Marketing Service, shall offer to enter into a contract with a nonprofit organization to establish and support a healthy food enterprise development center to increase access to healthy, affordable foods, such as fresh fruit and vegetables, particularly for school-aged children and individuals in low-income communities.

    `(c) Activities-

      `(1) PURPOSE- The purpose of the Center is to increase access to healthy affordable foods, including locally produced agricultural products, to underserved communities.

      `(2) TECHNICAL ASSISTANCE AND INFORMATION- The Center shall collect, develop, and provide technical assistance and information to small and mid-sized agricultural producers, food wholesalers and retailers, schools, and other individuals and entities regarding best practices and the availability of assistance for aggregating, storing, processing, and marketing locally produced agricultural products and increasing the availability of the products in underserved communities.

    `(d) Authority To Subgrant- The Center may provide subgrants to eligible entities to carry out feasibility studies to establish businesses to carry out the purposes of this section.

    `(e) Priority- In providing technical assistance and grants under subsections (c)(2) and (d), the Center shall give priority to applications that have components that will--

      `(1) benefit underserved communities; and

      `(2) develop market opportunities for small and mid-sized farm and ranch operations.

    `(f) Report- For each fiscal year for which the nonprofit organization described in subsection (b) receives funds, the organization shall submit to the Secretary a report describing the activities carried out in the previous fiscal year, including--

      `(1) a description of technical assistance provided;

      `(2) the total number and a description of the subgrants provided under subsection (d);

      `(3) a complete listing of cases in which the activities of the Center have resulted in increased access to healthy, affordable foods, such as fresh fruit and vegetables, particularly for school-aged children and individuals in low-income communities; and

      `(4) a determination of whether the activities identified in paragraph (3) are sustained in the years following the initial provision of technical assistance and subgrants under this section.

    `(g) Competitive Award Process- The Secretary shall use a competitive process to award funds to establish the Center.

    `(h) Funding- Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section--

      `(1) $1,000,000 for fiscal year 2009; and

      `(2) $2,000,000 for each of fiscal years 2010 through 2012.'.

PART V--MISCELLANEOUS

SEC. 1851. CLEAN PLANT NETWORK.

    (a) In General- The Secretary shall establish a program to be known as the `National Clean Plant Network' (referred to in this section as the `Program').

    (b) Requirements- Under the Program, the Secretary shall establish a network of clean plant centers for diagnostic and pathogen elimination services to--

      (1) produce clean propagative plant material; and

      (2) maintain blocks of pathogen-tested plant material in sites located throughout the United States.

    (c) Availability of Clean Plant Source Material- Clean plant source material may be made available to--

      (1) a State for a certified plant program of the State; and

      (2) private nurseries and producers.

    (d) Consultation and Collaboration- In carrying out the Program, the Secretary shall--

      (1) consult with State departments of agriculture and land grant universities; and

      (2) to the extent practicable and with input from the appropriate State officials and industry representatives, use existing Federal or State facilities to serve as clean plant centers.

    (e) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the Program $4,000,000 for each of fiscal years 2008 through 2012.

SEC. 1852. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.

    (a) In General- As soon as practicable after the date of enactment of this Act, the Secretary shall make payments to producers of the 2007 crop of asparagus for market loss resulting from imports during the 2004 through 2007 crop years.

    (b) Payment Rate- The payment rate for a payment under this section shall be based on the reduction in revenue received by asparagus producers associated with imports during the 2004 through 2007 crop years.

    (c) Payment Quantity- The payment quantity for asparagus for which the producers on a farm are eligible for payments under this section shall be equal to the average quantity of the 2003 crop of asparagus produced by producers on the farm.

    (d) Funding-

      (1) IN GENERAL- Subject to paragraph (2), the Secretary shall make available $15,000,000 of the funds of the Commodity Credit Corporation to carry out a program to provide market loss payments to producers of asparagus under this section.

      (2) ALLOCATION- Of the amount made available under paragraph (1), the Secretary shall use--

        (A) $7,500,000 to make payments to producers of asparagus for the fresh market; and

        (B) $7,500,000 to make payments to producers of asparagus for the processed or frozen market.

SEC. 1853. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION.

    (a) Regions and Members- Section 1925(b)(2) of the Mushroom Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C. 6104(b)(2)) is amended--

      (1) in subparagraph (B), by striking `4 regions' and inserting `3 regions';

      (2) in subparagraph (D), by striking `35,000,000 pounds' and inserting `50,000,000 pounds'; and

      (3) by striking subparagraph (E), and inserting the following:

        `(E) ADDITIONAL MEMBERS- In addition to the members appointed pursuant to paragraph (1), and subject to the 9-member limitation on members on the Council provided in that paragraph, the Secretary shall appoint additional members to the Council from a region that attains additional pounds of production of mushrooms as follows:

          `(i) If the annual production of the region is greater than 110,000,000 pounds, but not more than 180,000,000 pounds, the region shall be represented by 1 additional member.

          `(ii) If the annual production of the region is greater than 180,000,000 pounds, but not more than 260,000,000 pounds, the region shall be represented by 2 additional members.

          `(iii) If the annual production of the region is greater than 260,000,000 pounds, the region shall be represented by 3 additional members.'.

    (b) Powers and Duties of Council- Section 1925(c) of the Mushroom Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C. 6104(c)) is amended--

      (1) by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and

      (2) by inserting after paragraph (5) the following:

      `(6) to develop food safety programs, including good agricultural practices and good handling practices or related activities for mushrooms;'.

SEC. 1854. NATIONAL HONEY BOARD.

    Section 7(c) of the Honey Research, Promotion, and Consumer Information Act (7 U.S.C. 4606(c)) is amended by adding at the end the following:

      `(12) REFERENDUM REQUIREMENT-

        `(A) IN GENERAL- Notwithstanding any other provision of law, subject to subparagraph (B), the order providing for the establishment and operation of the Honey Board in effect on the date of enactment of this paragraph shall continue in force, and the Secretary shall not schedule or conduct any referendum on the continuation or termination of the order, until the Secretary first conducts, at the earliest practicable date, concurrent referenda among all eligible producers, importers, packers, and handlers of honey for the purpose of ascertaining whether eligible producers, importers, packers, and handlers of honey approve of 1 or more orders to establish successor marketing boards for honey.

        `(B) REQUIREMENTS- In conducting concurrent referenda under subparagraph (A), the Secretary shall ensure that--

          `(i) a referendum of United States honey producers for the establishment of a marketing board solely for United States honey producers is included in the process; and

          `(ii) the rights and interests of honey producers, importers, packers, and handlers of honey are protected in the transition to any new marketing board.'.

SEC. 1855. IDENTIFICATION OF HONEY.

    Section 203(h) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1622(h)) is amended--

      (1) by designating the first through sixth sentences as paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), respectively; and

      (2) by adding at the end the following:

      `(6) IDENTIFICATION OF HONEY- The use of a label or advertising material on, or in conjunction with, packaged honey that bears any official certificate of quality, grade mark or statement, continuous inspection mark or statement, sampling mark or statement, or any combination of the certificates, marks, or statements of the Department of Agriculture shall be considered a deceptive practice that is prohibited under this Act unless there appears legibly and permanently in close proximity to the certificate, mark, or statement, and in at least a comparable size, the 1 or more names of the 1 or more countries of origin of the lot or container of honey, preceded by `Product of' or other words of similar meaning.'.

SEC. 1856. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR GRADES AND STANDARDS AND OTHER PURPOSES.

    (a) In General- The Secretary shall initiate procedures under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to determine whether it would be appropriate to establish a Federal marketing order for Hass avocados relating to grades and standards and for other purposes under that Act.

    (b) Expedited Procedures-

      (1) PROPOSAL FOR AN ORDER- An organization of domestic avocado producers in existence on the date of enactment of this Act may request the issuance of, and submit to the Secretary a proposal for, an order described in subsection (a).

      (2) PUBLICATION OF PROPOSAL- Not later than 60 days after the date on which the Secretary receives a proposed order under paragraph (1), the Secretary shall initiate procedures described in subsection (a) to determine whether the proposed order should proceed.

    (c) Effective Date- Any order issued under this section shall become effective not later than 15 months after the date on which the Secretary initiates procedures under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.

Subtitle G--Risk Management

SEC. 1901. DEFINITION OF ORGANIC CROP.

    Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)) is amended--

      (1) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively; and

      (2) by inserting after paragraph (6) the following:

      `(7) ORGANIC CROP- The term `organic crop' means an agricultural commodity that is organically produced consistent with section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502).'.

SEC. 1902. GENERAL POWERS.

    (a) In General- Section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) is amended--

      (1) in the first sentence of subsection (d), by striking `The Corporation' and inserting `Subject to section 508(j)(2)(A), the Corporation'; and

      (2) by striking subsection (n).

    (b) Conforming Amendments-

      (1) Section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) is amended by redesignating subsections (o), (p), and (q) as subsections (n), (o), and (p), respectively.

      (2) Section 521 of the Federal Crop Insurance Act (7 U.S.C. 1521) is amended by striking the last sentence.

SEC. 1903. REDUCTION IN LOSS RATIO.

    (a) Projected Loss Ratio- Subsection (n)(2) of section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated by section 1902(b)(1)) is amended--

      (1) in the paragraph heading, by striking `AS OF OCTOBER 1, 1998';

      (2) by striking `, on and after October 1, 1998,'; and

      (3) by striking `1.075' and inserting `1.0'.

    (b) Premiums Required- Section 508(d)(1) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking `not greater than' and all that follows and inserting `not greater than--

        `(A) 1.1 through September 30, 1998;

        `(B) 1.075 for the period beginning October 1, 1998, and ending on the date of enactment of the Food and Energy Security Act of 2007; and

        `(C) 1.0 on and after the date of enactment of that Act.'.

SEC. 1904. CONTROLLED BUSINESS INSURANCE.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a) is amended by adding at the end the following:

      `(9) COMMISSIONS-

        `(A) DEFINITION OF IMMEDIATE FAMILY- In this paragraph, the term `immediate family' means a person's father, mother, stepfather, stepmother, brother, sister, stepbrother, stepsister, son, daughter, stepson, stepdaughter, grandparent, grandson, granddaughter, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, the spouse of the foregoing, and the person's spouse.

        `(B) PROHIBITION- No person may receive a commission or share of a commission for any policy or plan of insurance offered under this Act in which the person has a substantial beneficial interest or in which a member of the person's immediate family has a substantial beneficial interest if, in a calendar year, the aggregate of the commissions exceeds 30 percent of the aggregate of all commissions received by the person for any policy or plan of insurance offered under this Act.

        `(C) REPORTING- On the completion of the reinsurance year, any person that received a commission or share of a commission for any policy or plan of insurance offered under this Act in the prior calendar year shall certify to applicable approved insurance providers that the person received the commissions in compliance with this paragraph.

        `(D) SANCTIONS- The requirements and sanctions prescribed in section 515(h) shall apply to the prosecution of a violation of this paragraph.

        `(E) APPLICABILITY-

          `(i) IN GENERAL- Sanctions for violations under this paragraph shall only apply to the person directly responsible for the certification required under subparagraph (C) or the failure to comply with the requirements of this paragraph.

          `(ii) PROHIBITION- No sanctions shall apply with respect to the policy or plans of insurance upon which commissions are received, including the reinsurance for those policies or plans.'.

SEC. 1905. ADMINISTRATIVE FEE.

    Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended--

      (1) in subparagraph (A), by striking `$100' and inserting `$200'; and

      (2) in subparagraph (B)--

        (A) by striking `PAYMENT ON BEHALF OF PRODUCERS' and inserting `PAYMENT OF CATASTROPHIC RISK PROTECTION FEE ON BEHALF OF PRODUCERS';

        (B) in clause (i)--

          (i) by striking `or other payment'; and

          (ii) by striking `with catastrophic risk protection or additional coverage' and inserting `through the payment of catastrophic risk protection administrative fees';

        (C) by striking clauses (ii) and (vi);

        (D) by redesignating clauses (iii), (iv), and (v) as clauses (ii), (iii), and (iv), respectively;

        (E) in clause (iii) (as so redesignated), by striking `A policy or plan of insurance' and inserting `Catastrophic risk protection coverage'; and

        (F) in clause (iv) (as so redesignated)--

          (i) by striking `or other arrangement under this subparagraph'; and

          (ii) by striking `additional'.

SEC. 1906. TIME FOR PAYMENT.

    Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended--

      (1) in subsection (d), by adding at the end the following:

      `(4) TIME FOR PAYMENT- Effective beginning with the 2012 reinsurance year, a producer that obtains a policy or plan of insurance under this title shall submit the required premium not later than September 30 of the year for which the plan or policy of insurance was obtained.'; and

      (2) in subsection (k)(4), by adding at the end the following:

        `(D) TIME FOR REIMBURSEMENT- Effective beginning with the 2012 reinsurance year, the Corporation shall reimburse approved insurance providers and agents for the allowable administrative and operating costs of the providers and agents as soon as practicable after October 1 (but not later than October 31) of the reinsurance year for which reimbursements are earned.'.

SEC. 1907. SURCHARGE PROHIBITION.

    Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) (as amended by section 1906(1)) is amended by adding at the end the following:

      `(5) SURCHARGE PROHIBITION-

        `(A) IN GENERAL- Except as provided in subparagraph (B), the Corporation may not require producers to pay a premium surcharge for using scientifically-sound sustainable and organic farming practices and systems.

        `(B) EXCEPTION-

          `(i) IN GENERAL- A surcharge may be required for individual organic crops on the basis of significant, consistent, and systemic increased risk factors (including loss history) demonstrated by published cropping system research (as applied to crop types and regions) and other relevant sources of information.

          `(ii) CONSULTATION- The Corporation shall evaluate the reliability of information described in clause (i) in consultation with independent experts in the field.'.

SEC. 1908. PREMIUM REDUCTION PLAN.

    Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking paragraph (3) and inserting the following:

      `(3) DISCOUNT STUDY-

        `(A) IN GENERAL- The Secretary shall commission an entity independent of the crop insurance industry (with expertise that includes traditional crop insurance) to study the feasibility of permitting approved insurance providers to provide discounts to producers purchasing crop insurance coverage without undermining the viability of the Federal crop insurance program.

        `(B) COMPONENTS- The study should include--

          `(i) an evaluation of the operation of a premium reduction plan that examines--

            `(I) the clarity, efficiency, and effectiveness of the statutory language and related regulations;

            `(II) whether the regulations frustrated the goal of offering producers upfront, predictable, and reliable premium discount payments; and

            `(III) whether the regulations provided for reasonable, cost-effective oversight by the Corporation of premium discounts offered by approved insurance providers, including--

`(aa) whether the savings were generated from verifiable cost efficiencies adequate to offset the cost of discounts paid; and

`(bb) whether appropriate control was exercised to prevent approved insurance providers from preferentially offering the discount to producers of certain agricultural commodities, in certain regions, or in specific size categories;

          `(ii) examination of the impact on producers, the crop insurance industry, and profitability from offering discounted crop insurance to producers;

          `(iii) examination of implications for industry concentration from offering discounted crop insurance to producers;

          `(iv) an examination of the desirability and feasibility of allowing other forms of price competition in the Federal crop insurance program;

          `(v) a review of the history of commissions paid by crop insurance providers; and

          `(vi) recommendations on--

            `(I) potential changes to this title that would address the deficiencies in past efforts to provide discounted crop insurance to producers,

            `(II) whether approved insurance providers should be allowed to draw on both administrative and operating reimbursement and underwriting gains to provide discounted crop insurance to producers; and

            `(III) any other action that could increase competition in the crop insurance industry that will benefit producers but not undermine the viability of the Federal crop insurance program.

        `(C) REQUEST FOR PROPOSALS- In developing the request for proposals for the study, the Secretary shall consult with parties in the crop insurance industry (including producers and approved insurance providers and agents, including providers and agents with experience selling discount crop insurance products).

        `(D) REVIEW OF STUDY- The independent entity selected by Secretary under subparagraph (A) shall seek comments from interested stakeholders before finalizing the report of the entity.

        `(E) REPORT- Not later than 18 months after the date of enactment of the Food and Energy Security Act of 2007, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results and recommendations of the study.'.

SEC. 1909. ENTERPRISE AND WHOLE FARM UNITS.

    Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following:

      `(6) ENTERPRISE AND WHOLE FARM UNITS-

        `(A) IN GENERAL- The Corporation may carry out a pilot program under which the Corporation pays a portion of the premiums for plans or policies of insurance for which the insurable unit is defined on a whole farm or enterprise unit basis that is higher than would otherwise be paid in accordance with paragraph (2) for policyholders that convert from a plan or policy of insurance for which the insurable unit is defined on optional or basic unit basis.

        `(B) ELIGIBILITY- To be eligible to participate in a pilot program established under this paragraph, a policyholder shall--

          `(i) have purchased additional coverage for the 2005 crop on an optional or basic unit basis for at least 90 percent of the acreage to be covered by enterprise or whole farm unit policy for the current crop; and

          `(ii) purchase the enterprise or whole farm unit policy at not less than the highest coverage level that was purchased for the acreage for the 2005 crop.

        `(C) AMOUNT-

          `(i) IN GENERAL- The amount of the premium per acre paid by the Corporation to a policyholder for a policy with an enterprise and whole farm unit under this paragraph shall be, the maximum extent practicable, equal to the average dollar amount of subsidy per acre paid by the Corporation under paragraph (2) for a basic or optional unit.

          `(ii) LIMITATION- The amount of the premium paid by the Corporation under this paragraph may not exceed the total premium for the enterprise or whole farm unit policy.

        `(D) CONVERSION OF PILOT TO A PERMANENT PROGRAM- Not earlier than 180 days after the date of enactment of this paragraph, the Corporation may convert the pilot program described in this paragraph to a permanent program if the Corporation has--

          `(i) carried out the pilot program;

          `(ii) analyzed the results of the pilot program; and

          `(iii) submitted to Congress a report describing the results of the analysis.'.

SEC. 1910. DENIAL OF CLAIMS.

    Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 1508(j)(2)(A)) is amended by inserting `on behalf of the Corporation' after `approved provider'.

SEC. 1911. MEASUREMENT OF FARM-STORED COMMODITIES.

    Section 508(j) of the Federal Crop Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the end the following:

      `(5) MEASUREMENT OF FARM-STORED COMMODITIES- Beginning with the 2009 crop year, for the purpose of determining the amount of any insured production loss sustained by a producer and the amount of any indemnity to be paid under a plan of insurance--

        `(A) a producer may elect, at the expense of the producer, to have the Farm Service Agency measure the quantity of the commodity; and

        `(B) the results of the measurement shall be used as the evidence of the quantity of the commodity that was produced.'.

SEC. 1912. REIMBURSEMENT RATE.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)) (as amended by section 1906(2)) is amended--

      (1) in subparagraph (A), by striking `Except as provided in subparagraph (B)' and inserting `Except as otherwise provided in this paragraph'; and

      (2) by adding at the end the following:

        `(E) REIMBURSEMENT RATE REDUCTION- For each of the 2009 and subsequent reinsurance years, the reimbursement rates for administrative and operating costs shall be 2 percentage points below the rates in effect as of the date of enactment of the Food and Energy Security Act of 2007 for all crop insurance policies used to define loss ratio, except that the reduction shall not apply in a reinsurance year to the total premium written in a State in which the State loss ratio is greater than 1.2.

        `(F) REIMBURSEMENT RATE FOR AREA POLICIES AND PLANS OF INSURANCE- Notwithstanding subparagraphs (A) through (E), for each of the 2009 and subsequent reinsurance years, the reimbursement rate for area policies and plans of insurance shall be 17 percent of the premium used to define loss ratio for that reinsurance year.'.

SEC. 1913. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following:

      `(8) RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT-

        `(A) IN GENERAL- Notwithstanding section 536 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105-185) and section 148 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1506 note; Public Law 106-224), the Corporation may renegotiate the financial terms and conditions of each Standard Reinsurance Agreement--

          `(i) following the reinsurance year ending June 30, 2012;

          `(ii) once during each period of 5 reinsurance years thereafter; and

          `(iii) subject to subparagraph (B), in any case in which the approved insurance providers, as a whole, experience unexpected adverse circumstances, as determined by the Secretary.

        `(B) NOTIFICATION REQUIREMENT- If the Corporation renegotiates a Standard Reinsurance Agreement under subparagraph (A)(iii), the Corporation shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the renegotiation.

        `(C) CONSULTATION- The approved insurance providers may confer with each other and collectively with the Corporation during any renegotiation under subparagraph (A).'.

SEC. 1914. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR UNDERWRITING GAINS.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) (as amended by section 1912) is amended by adding at the end the following:

      `(9) DUE DATE FOR PAYMENT OF UNDERWRITING GAINS- Effective beginning with the 2011 reinsurance year, the Corporation shall make payments for underwriting gains under this title on--

        `(A) for the 2011 reinsurance year, October 1, 2012; and

        `(B) for each reinsurance year thereafter, October 1 of the following calendar year.'.

SEC. 1915. ACCESS TO DATA MINING INFORMATION.

    (a) In General- Section 515(j)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(j)(2)) is amended--

      (1) by striking `The Secretary' and inserting the following:

        `(A) IN GENERAL- The Secretary'; and

      (2) by adding at the end the following:

        `(B) ACCESS TO DATA MINING INFORMATION-

          `(i) IN GENERAL- The Secretary shall establish a fee-for-access program under which approved insurance providers pay to the Secretary a user fee in exchange for access to the data mining system established under subparagraph (A) for the purpose of assisting in fraud and abuse detection.

          `(ii) PROHIBITION-

            `(I) IN GENERAL- Except as provided in subclause (II), the Corporation shall not impose a requirement on approved insurance providers to access the data mining system established under subparagraph (A).

            `(II) ACCESS WITHOUT FEE- If the Corporation requires approved insurance providers to access the data mining system established under subparagraph (A), including for quality assurance purposes under the Standard Reinsurance Agreement access will be provided without charge to the extent necessary to fulfill the requirements.

          `(iii) ACCESS LIMITATION- In establishing the program under clause (i), the Secretary shall ensure that an approved insurance provider has access only to information relating to the policies or plans of insurance for which the approved insurance provider provides insurance coverage, including any information relating to--

            `(I) information of agents and adjusters relating to policies for which the approved insurance provider provides coverage;

            `(II) the other policies or plans of an insured that are insured through another approved insurance providers; and

            `(III) the policies or plans of an insured for prior crop insurance years.'.

    (b) Insurance Fund- Section 516 of the Federal Crop Insurance Act (7 U.S.C. 1516) is amended--

      (1) in subsection (b), by adding at the end the following:

      `(3) DATA MINING SYSTEM- The Corporation shall use amounts deposited in the insurance fund established under subsection (c) from fees collected under section 515(j)(2)(B) to administer and carry out improvements to the data mining system under that section.'; and

      (2) in subsection (c)(1)--

        (A) by striking `and civil' and inserting `civil'; and

        (B) by inserting `and fees collected under section 515(j)(2)(B)(i),' after `section 515(h),'.

SEC. 1916. PRODUCER ELIGIBILITY.

    Section 520(2) of the Federal Crop Insurance Act (7 U.S.C. 1520(2)) is amended by inserting `or is a person who raises livestock owned by other persons (that is not covered by insurance under this title by another person)' after `sharecropper'.

SEC. 1917. CONTRACTS FOR ADDITIONAL CROP POLICIES.

    Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522) is amended--

      (1) by redesignating paragraph (10) as paragraph (14); and

      (2) by inserting after paragraph (9) the following:

      `(10) ENERGY CROP INSURANCE POLICY-

        `(A) DEFINITION OF DEDICATED ENERGY CROP- In this subsection, the term `dedicated energy crop' means an annual or perennial crop that--

          `(i) is grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or bio-based products; and

          `(ii) is not typically used for food, feed, or fiber.

        `(B) AUTHORITY- The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding a policy to insure dedicated energy crops.

        `(C) RESEARCH AND DEVELOPMENT- Research and development described in subparagraph (B) shall evaluate the effectiveness of risk management tools for the production of dedicated energy crops, including policies and plans of insurance that--

          `(i) are based on market prices and yields;

          `(ii) to the extent that insufficient data exist to develop a policy based on market prices and yields, evaluate the policies and plans of insurance based on the use of weather or rainfall indices to protect the interests of crop producers; and

          `(iii) provide protection for production or revenue losses, or both.

      `(11) AQUACULTURE INSURANCE POLICY-

        `(A) DEFINITION OF AQUACULTURE- In this subsection:

          `(i) IN GENERAL- The term `aquaculture' means the propagation and rearing of aquatic species in controlled or selected environments, including shellfish cultivation on grants or leased bottom and ocean ranching.

          `(ii) EXCLUSION- The term `aquaculture' does not include the private ocean ranching of Pacific salmon for profit in any State in which private ocean ranching of Pacific salmon is prohibited by any law (including regulations).

        `(B) AUTHORITY- The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding a policy to insure aquaculture operations.

        `(C) RESEARCH AND DEVELOPMENT- Research and development described in subparagraph (B) shall evaluate the effectiveness of risk management tools for the production of fish and other seafood in aquaculture operations, including policies and plans of insurance that--

          `(i) are based on market prices and yields;

          `(ii) to the extent that insufficient data exist to develop a policy based on market prices and yields, evaluate how best to incorporate insuring of aquaculture operations into existing policies covering adjusted gross revenue; and

          `(iii) provide protection for production or revenue losses, or both.

      `(12) ORGANIC CROP PRODUCTION COVERAGE IMPROVEMENTS-

        `(A) IN GENERAL- Not later than 180 days after the date of enactment of this paragraph, the Corporation shall offer to enter into 1 or more contracts with qualified entities for the development of improvements in Federal crop insurance policies covering organic crops.

        `(B) PRICE ELECTION-

          `(i) IN GENERAL- The contracts under subparagraph (A) shall include the development of procedures (including any associated changes in policy terms or materials required for implementation of the procedures) to offer producers of organic crops a price election that would reflect the actual retail or wholesale prices, as appropriate, received by producers for organic crops, as established using data collected and maintained by the Agricultural Marketing Service.

          `(ii) DEADLINE- The development of the procedures required under clause (i) shall be completed not later than the date necessary to allow the Corporation to offer the price election--

            `(I) beginning in the 2009 reinsurance year for organic crops with adequate data available; and

            `(II) subsequently for additional organic crops as data collection for those organic crops is sufficient, as determined by the Corporation.

      `(13) SKIPROW CROPPING PRACTICES-

        `(A) IN GENERAL- The Corporation shall offer to enter into a contract with a qualified entity to carry out research into needed modifications of policies to insure corn and sorghum produced in the Central Great Plains (as determined by the Agricultural Research Service) through use of skiprow cropping practices.

        `(B) RESEARCH- Research described in subparagraph (A) shall--

          `(i) review existing research on skiprow cropping practices and actual production history of producers using skiprow cropping practices; and

          `(ii) evaluate the effectiveness of risk management tools for producers using skiprow cropping practices, including--

            `(I) the appropriateness of rules in existence as of the date of enactment of this paragraph relating to the determination of acreage planted in skiprow patterns; and

            `(II) whether policies for crops produced through skiprow cropping practices reflect actual production capabilities.'.

SEC. 1918. RESEARCH AND DEVELOPMENT.

    (a) Reimbursement Authorized- Section 522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by striking paragraph (1) and inserting the following:

      `(1) RESEARCH AND DEVELOPMENT REIMBURSEMENT- The Corporation shall provide a payment to reimburse an applicant for research and development costs directly related to a policy that--

        `(A) is submitted to, and approved by, the Board pursuant to a FCIC reimbursement grant under paragraph (7); or

        `(B) is--

          `(i) submitted to the Board and approved by the Board under section 508(h) for reinsurance; and

          `(ii) if applicable, offered for sale to producers.'.

    (b) FCIC Reimbursement Grants- Section 522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by adding at the end the following:

      `(7) FCIC REIMBURSEMENT GRANTS-

        `(A) GRANTS AUTHORIZED- The Corporation shall provide FCIC reimbursement grants to persons (referred to in this paragraph as `submitters') proposing to prepare for submission to the Board crop insurance policies and provisions under subparagraphs (A) and (B) of section 508(h)(1), that apply and are approved for the FCIC reimbursement grants under this paragraph.

        `(B) SUBMISSION OF APPLICATION-

          `(i) IN GENERAL- The Board shall receive and consider applications for FCIC reimbursement grants at least once each year.

          `(ii) REQUIREMENTS- An application to receive a FCIC reimbursement grant from the Corporation shall consist of such materials as the Board may require, including--

            `(I) a concept paper that describes the proposal in sufficient detail for the Board to determine whether the proposal satisfies the requirements of subparagraph (C); and

            `(II) a description of--

`(aa) the need for the product, including an assessment of marketability and expected demand among affected producers;

`(bb) support from producers, producer organizations, lenders, or other interested parties; and

`(cc) the impact the product would have on producers and on the crop insurance delivery system; and

            `(III) a statement that no products are offered by the private sector that provide the same benefits and risk management services as the proposal;

            `(IV) a summary of data sources available that demonstrate that the product can reasonably be developed and properly rated; and

            `(V) an identification of the risks the proposed product will cover and an explanation of how the identified risks are insurable under this title.

        `(C) APPROVAL CONDITIONS-

          `(i) IN GENERAL- A majority vote of the Board shall be required to approve an application for a FCIC reimbursement grant.

          `(ii) REQUIRED FINDINGS- The Board shall approve the application if the Board finds that--

            `(I) the proposal contained in the application--

`(aa) provides coverage to a crop or region not traditionally served by the Federal crop insurance program;

`(bb) provides crop insurance coverage in a significantly improved form;

`(cc) addresses a recognized flaw or problem in the Federal crop insurance program or an existing product;

`(dd) introduces a significant new concept or innovation to the Federal crop insurance program; or

`(ee) provides coverage or benefits not available from the private sector;

            `(II) the submitter demonstrates the necessary qualifications to complete the project successfully in a timely manner with high quality;

            `(III) the proposal is in the interests of producers and can reasonably be expected to be actuarially appropriate and function as intended;

            `(IV) the Board determines that the Corporation has sufficient available funding to award the FCIC reimbursement grant; and

            `(V) the proposed budget and timetable are reasonable.

        `(D) PARTICIPATION-

          `(i) IN GENERAL- In reviewing proposals under this paragraph, the Board may use the services of persons that the Board determines appropriate to carry out expert review in accordance with section 508(h).

          `(ii) CONFIDENTIALITY- All proposals submitted under this paragraph shall be treated as confidential in accordance with section 508(h)(4).

        `(E) ENTERING INTO AGREEMENT- Upon approval of an application, the Board shall offer to enter into an agreement with the submitter for the development of a formal submission that meets the requirements for a complete submission established by the Board under section 508(h).

        `(F) FEASIBILITY STUDIES-

          `(i) IN GENERAL- In appropriate cases, the Corporation may structure the FCIC reimbursement grant to require, as an initial step within the overall process, the submitter to complete a feasibility study, and report the results of the study to the Corporation, prior to proceeding with further development.

          `(ii) MONITORING- The Corporation may require such other reports as the Corporation determines necessary to monitor the development efforts.

        `(G) RATES- Payment for work performed by the submitter under this paragraph shall be based on rates determined by the Corporation for products--

          `(i) submitted under section 508(h); or

          `(ii) contracted by the Corporation under subsection (c).

        `(H) TERMINATION-

          `(i) IN GENERAL- The Corporation or the submitter may terminate any FCIC reimbursement grant at any time for just cause.

          `(ii) REIMBURSEMENT- If the Corporation or the submitter terminates the FCIC reimbursement grant before final approval of the product covered by the grant, the submitter shall be entitled to--

            `(I) reimbursement of all eligible costs incurred to that point; or

            `(II) in the case of a fixed rate agreement, payment of an appropriate percentage, as determined by the Corporation.

          `(iii) DENIAL- If the submitter terminates development without just cause, the Corporation may deny reimbursement or recover any reimbursement already made.

        `(I) CONSIDERATION OF PRODUCTS- The Board shall consider any product developed under this paragraph and submitted to the Board under the rules the Board has established for products submitted under section 508(h).'.

    (c) Conforming Amendment- Section 523(b)(10) of the Federal Crop Insurance Act (7 U.S.C. 1523(b)(10)) is amended by striking `(other than research and development costs covered by section 522)'.

SEC. 1919. FUNDING FROM INSURANCE FUND.

    Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended--

      (1) in paragraph (1), by striking `$10,000,000' and all that follows through the end of the paragraph and inserting `$7,500,000 for fiscal year 2008 and each subsequent fiscal year';

      (2) in paragraph (2)(A), by striking `$20,000,000 for' and all that follows through `year 2004' and inserting `$12,500,000 for fiscal year 2008'; and

      (3) in paragraph (3), by striking `the Corporation may use' and all that follows through the end of the paragraph and inserting `the Corporation may use--

        `(A) not more than $5,000,000 for each fiscal year to improve program integrity, including by--

          `(i) increasing compliance-related training;

          `(ii) improving analysis tools and technology regarding compliance;

          `(iii) use of information technology, as determined by the Corporation;

          `(iv) identifying and using innovative compliance strategies; and

        `(B) any excess amounts to carry out other activities authorized under this section.'.

SEC. 1920. CAMELINA PILOT PROGRAM.

    (a) In General- Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following:

    `(f) Camelina Pilot Program-

      `(1) IN GENERAL- Beginning with the 2008 crop year, the Corporation shall establish a pilot program under which producers or processors of camelina may propose for approval by the Board policies or plans of insurance for camelina, in accordance with section 508(h).

      `(2) DETERMINATION BY BOARD- The Board shall approve a policy or plan of insurance proposed under paragraph (1) if, as determined by the Board, the policy or plan of insurance--

        `(A) protects the interests of producers;

        `(B) is actuarially sound; and

        `(C) meets the requirements of this title.'.

    (b) Noninsured Crop Assistance Program- Section 196(a)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)(2)) is amended by adding at the end the following:

        `(D) CAMELINA-

          `(i) IN GENERAL- For each of crop years 2008 through 2011, the Secretary shall consider camelina to be an eligible crop for purposes of the noninsured crop disaster assistance program under this section.

          `(ii) LIMITATION- Producers that are eligible to purchase camelina crop insurance, including camelina crop insurance under a pilot program, shall not be eligible for assistance under this section.'.

SEC. 1921. SESAME INSURANCE PILOT PROGRAM.

    Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following:

    `(g) SESAME INSURANCE PILOT PROGRAM-

      `(1) IN GENERAL- The Secretary of Agriculture shall establish and carry out a pilot program under which a producer of non-dehiscent sesame under contract may elect to obtain multi-peril crop insurance, as determined by the Secretary.

      `(2) TERMS AND CONDITIONS- The multi-peril crop insurance offered under the sesame insurance pilot program shall--

        `(A) be offered through reinsurance arrangements with private insurance companies;

        `(B) be actuarially sound; and

        `(C) require the payment of premiums and administrative fees by a producer obtaining the insurance.

      `(3) LOCATION- The sesame insurance pilot program shall be carried out only in the State of Texas.

      `(4) Relation to Prohibition on Research and Development by Corporation-Section 522(e)(4) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)(4)) shall apply with respect to the sesame insurance pilot program.

      `(5) DURATION- The Secretary shall commence the sesame insurance pilot program as soon as practicable after the date of the enactment of this Act and continue the program through the 2012 crop year.'

SEC. 1922. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS OR RANCHERS.

    Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)) is amended--

      (1) in paragraph (1), by striking `paragraph (4)' and inserting `paragraph (5)';

      (2) by redesignating paragraph (4) as paragraph (5); and

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

      `(4) REQUIREMENTS- In carrying out the programs established under paragraphs (2) and (3), the Secretary shall place special emphasis on risk management strategies, education, and outreach specifically targeted at--

        `(A) beginning farmers or ranchers;

        `(B) immigrant farmers or ranchers that are attempting to become established producers in the United States;

        `(C) socially disadvantaged farmers or ranchers;

        `(D) farmers or ranchers that--

          `(i) are preparing to retire; and

          `(ii) are using transition strategies to help new farmers or ranchers get started; and

        `(E) new or established farmers or ranchers that are converting production and marketing systems to pursue new markets.'.

SEC. 1923. AGRICULTURAL MANAGEMENT ASSISTANCE.

    Section 524(b)(4) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)) is amended by adding at end the following:

        `(C) COST-SHARING- The Secretary may provide matching funds to any State described in paragraph (1) that appropriates a portion of the budget of the State to provide financial assistance for producer-paid premiums for crop insurance policies reinsured by the Corporation.'.

SEC. 1924. CROP INSURANCE MEDIATION.

    Section 275 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6995) is amended--

      (1) by striking `If an officer' and inserting the following:

    `(a) In General- If an officer';

      (2) by striking `With respect to' and inserting the following:

    `(b) Farm Service Agency- With respect to';

      (3) by striking `If a mediation'; and inserting the following:

    `(c) Mediation- If a mediation'; and

      (4) in subsection (c) (as so designated)--

        (A) by striking `participant shall be offered' and inserting `participant shall--

      `(1) be offered'; and

        (B) by striking the period at the end and inserting the following: `; and

      `(2) to the maximum extent practicable, be allowed to use both informal agency review and mediation to resolve disputes under that title.'.

SEC. 1925. DROUGHT COVERAGE FOR AQUACULTURE UNDER NONINSURED CROP ASSISTANCE PROGRAM.

    Section 196(c)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended--

      (1) by striking `On making' and inserting the following:

        `(A) IN GENERAL- On making'; and

      (2) by adding at the end the following:

        `(B) AQUACULTURE PRODUCERS- On making a determination described in subsection (a)(3) for aquaculture producers, the Secretary shall provide assistance under this section to aquaculture producers from all losses related to drought.'.

SEC. 1926. INCREASE IN SERVICE FEES FOR NONINSURED CROP ASSISTANCE PROGRAM.

    Section 196(k)(1) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--

      (1) in subparagraph (A), by striking `$100' and inserting `$200'; and

      (2) in subparagraph (B)--

        (A) by striking `$300' and inserting `$600'; and

        (B) by striking `$900' and inserting `$1,500'.

SEC. 1927. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

    Section 9001(d) of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 211) is amended--

      (1) by redesignating paragraph (8) as paragraph (9); and

      (2) by inserting after paragraph (7) the following:

      `(8) SWEET POTATOES-

        `(A) DATA- In the case of sweet potatoes, any data obtained under a pilot program carried out by the Risk Management Agency shall not be considered for the purpose of determining the quantity of production under the crop disaster assistance program established under this section.

        `(B) EXTENSION OF DEADLINE- If this paragraph is not implemented before the sign-up deadline for the crop disaster assistance program established under this section, the Secretary shall extend the deadline for producers of sweet potatoes to permit sign-up for the program in accordance with this paragraph.'.

SEC. 1928. PERENNIAL CROP REPORT.

    Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing details about activities and administrative options of the Federal Crop Insurance Corporation and Risk Management Agency that address issues relating to--

      (1) declining yields on the actual production histories of producers; and

      (2) declining and variable yields for perennial crops, including pecans.

SEC. 1929. MALTING BARLEY.

    Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) is amended by adding at the end the following:

      `(5) SPECIAL PROVISIONS FOR MALTING BARLEY- The Corporation shall promulgate special provisions under this subsection specific to malting barley, taking into consideration any changes in quality factors, as required by applicable market conditions.'.

SEC. 1930. DEFINITION OF BASIC UNIT.

    The Secretary shall not modify the definition of `basic unit' in accordance with the proposed regulations entitled `Common Crop Insurance Regulations' (72 Fed. Reg. 28895; relating to common crop insurance regulations) or any successor regulation.

TITLE II--CONSERVATION

Subtitle A--Definitions

SEC. 2001. DEFINITIONS.

    Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--

      (1) by redesignating paragraphs (2) through (11), (12), (13) through (15), and (16), (17), and (18) as paragraphs (3) through (12), (14), (16) through (18), and (20), (22), and (23), respectively;

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

      `(2) BEGINNING FARMER OR RANCHER- The term `beginning farmer or rancher' has, to the maximum extent practicable, the meaning given the term in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)), except that the Secretary may include in the definition of the term--

        `(A) a fair and reasonable test of net worth; and

        `(B) such other criteria as the Secretary determines to be appropriate.';

      (3) by inserting after paragraph (12) (as redesignated by paragraph (1)) the following:

      `(13) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).'.

      (4) by inserting after paragraph (14) (as redesignated by paragraph (1)) the following:

      `(15) NONINDUSTRIAL PRIVATE FOREST LAND- The term `nonindustrial private forest land' means rural land, as determined by the Secretary, that--

        `(A) has existing tree cover or is suitable for growing trees; and

        `(B) is owned by any nonindustrial private individual, group, association, corporation, Indian tribe, or other private legal entity that has definitive decisionmaking authority over the land.';

      (5) by inserting after paragraph (18) (as redesignated by paragraph (1)) the following:

      `(19) SOCIALLY DISADVANTAGED FARMER OR RANCHER- The term `socially disadvantaged farmer or rancher' has the meaning given the term in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)).'; and

      (6) by inserting after paragraph (20) (as redesignated by paragraph (1)) the following:

      `(21) TECHNICAL ASSISTANCE-

        `(A) IN GENERAL- The term `technical assistance' means technical expertise, information, and tools necessary for the conservation of natural resources on land active in agricultural, forestry, or related uses.

        `(B) INCLUSIONS- The term `technical assistance' includes--

          `(i) technical services provided directly to farmers, ranchers, and other eligible entities, such as conservation planning, technical consultation, and assistance with design and implementation of conservation practices; and

          `(ii) technical infrastructure, including activities, processes, tools, and agency functions needed to support delivery of technical services, such as technical standards, resource inventories, training, data, technology, monitoring, and effects analyses.'.

Subtitle B--Highly Erodible Land Conservation

SEC. 2101. REVIEW OF GOOD FAITH DETERMINATIONS; EXEMPTIONS.

    Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) is amended by striking subsection (f) and inserting the following:

    `(f) Graduated Penalties-

      `(1) INELIGIBILITY- No person shall become ineligible under section 1211 for program loans, payments, and benefits as a result of the failure of the person to actively apply a conservation plan, if the Secretary determines that the person has acted in good faith and without an intent to violate this subtitle.

      `(2) ELIGIBLE REVIEWERS- A determination of the Secretary, or a designee of the Secretary, under paragraph (1) shall be reviewed by the applicable--

        `(A) State Executive Director, with the technical concurrence of the State Conservationist; or

        `(B) district director, with the technical concurrence of the area conservationist.

      `(3) PERIOD FOR IMPLEMENTATION- A person who meets the requirements of paragraph (1) shall be allowed a reasonable period of time, as determined by the Secretary, but not to exceed 1 year, during which to implement the measures and practices necessary to be considered to be actively applying the conservation plan of the person.

      `(4) PENALTIES-

        `(A) APPLICATION- This paragraph applies if the Secretary determines that--

          `(i) a person who has failed to comply with section 1211 with respect to highly erodible cropland, and has acted in good faith and without an intent to violate section 1211; or

          `(ii) the violation--

            `(I) is technical and minor in nature; and

            `(II) has a minimal effect on the erosion control purposes of the conservation plan applicable to the land on which the violation has occurred.

        `(B) REDUCTION- If this paragraph applies under subparagraph (A), the Secretary shall, in lieu of applying the ineligibility provisions of section 1211, reduce program benefits described in section 1211 that the producer would otherwise be eligible to receive in a crop year by an amount commensurate with the seriousness of the violation, as determined by the Secretary.

      `(5) SUBSEQUENT CROP YEARS- Any person whose benefits are reduced for any crop year under this subsection shall continue to be eligible for all of the benefits described in section 1211 for any subsequent crop year if, prior to the beginning of the subsequent crop year, the Secretary determines that the person is actively applying a conservation plan according to the schedule specified in the plan.'.

Subtitle C--Wetland Conservation

SEC. 2201. REVIEW OF GOOD FAITH DETERMINATIONS.

    Section 1222(h) of the Food Security Act of 1985 (16 U.S.C. 3822(h)) is amended--

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

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

      `(2) ELIGIBLE REVIEWERS- A determination of the Secretary, or a designee of the Secretary, under paragraph (1) shall be reviewed by the applicable--

        `(A) State Executive Director, with the technical concurrence of the State Conservationist; or

        `(B) district director, with the technical concurrence of the area conservationist.'; and

      (3) in paragraph (3) (as redesignated by paragraph (1)), by inserting `be' before `actively'.

Subtitle D--Agricultural Resources Conservation Program

CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT

Subchapter A--Comprehensive Conservation Enhancement Program

SEC. 2301. REAUTHORIZATION AND EXPANSION OF PROGRAMS COVERED.

    (a) In General- Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is amended to read as follows:

`SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

    `(a) Establishment-

      `(1) IN GENERAL- During the 1996 through 2012 fiscal years, the Secretary shall establish a comprehensive conservation enhancement program (referred to in this section as `CCEP') to be implemented through contracts and the acquisition of easements to assist owners and operators of farms, ranches, and nonindustrial private forestland to conserve and enhance soil, water, and related natural resources, including grazing land, wetland, and wildlife habitat.

      `(2) MEANS- The Secretary shall carry out the CCEP by--

        `(A) providing for the long-term protection of environmentally-sensitive land; and

        `(B) providing technical and financial assistance to farmers, ranchers, and nonindustrial private forest landowners--

          `(i) to improve the management and operation of the farms, ranches, and private nonindustrial forest land; and

          `(ii) to reconcile productivity and profitability with protection and enhancement of the environment;

        `(C) reducing administrative burdens and streamlining application and planning procedures to encourage producer participation; and

        `(D) providing opportunities to leverage Federal conservation investments through innovative partnerships with governmental agencies, education institutions, producer groups, and other nongovernmental organizations.

      `(3) PROGRAMS- The CCEP shall consist of--

        `(A) the conservation reserve program established under subchapter B;

        `(B) the wetlands reserve program established under subchapter C; and

        `(C) the healthy forests reserve program established under subchapter D.

    `(b) Contracts and Enrollments-

      `(1) IN GENERAL- In carrying out the CCEP, the Secretary shall enter into contracts with owners and operators and acquire interests in land through easements from owners, as provided in this chapter.

      `(2) PRIOR ENROLLMENTS- Acreage enrolled in the conservation reserve program, wetlands reserve program, or healthy forests reserve program prior to the date of enactment of the Food and Energy Security Act of 2007 shall be considered to be placed into the CCEP.

    `(c) Administration-

      `(1) LIMITATIONS-

        `(A) IN GENERAL- The Secretary shall not enroll more than 25 percent of the cropland in any county in the programs administered under subchapters B and C of this chapter.

        `(B) EASEMENTS- Within the limit described in subparagraph (A), not more than 10 percent of the land described in that subparagraph may be subject to an easement acquired under subchapter C of this chapter.

        `(C) EXCLUSION- Subparagraphs (A) and (B) shall not apply to acres enrolled in the special conservation reserve enhancement program described in section 1234(f)(3).

        `(D) EXCEPTIONS- The Secretary may exceed the limitation in subparagraph (A) if the Secretary determines that--

          `(i)(I) the action would not adversely affect the local economy of a county; and

          `(II) operators in the county are having difficulties complying with conservation plans implemented under section 1212;

          `(ii)(I) the acreage to be enrolled could not be used for an agricultural purpose or is precluded from planting as a result of a State or local law, order, or regulation prohibiting water use for agricultural production; and

          `(II) enrollment in the program would benefit the acreage enrolled or land adjacent to the acreage enrolled; or

          `(iii) with respect to cropland in counties in the State of Washington that exceed the limitation described in subparagraph (A) as of the date of enrollment in the program--

            `(I) the acreage to be enrolled is considered to be essential by Federal or State plans for a sustainable wildlife habitat; and

            `(II) enrollment in the program would assist the producer in meeting environmental goals in the Federal or State plans.'.

        `(E) SHELTERBELTS AND WINDBREAKS- The limitations established under this paragraph shall not apply to cropland that is subject to an easement under chapter 1 or 3 that is used for the establishment of shelterbelts and windbreaks.

        `(F) ENROLLMENT- The Secretary shall enroll acreage described in subparagraph (D)(ii) not later than 180 days after the date of a request by a landowner to enroll the acreage.

        `(G) PAYMENTS- Rental payments for acreage described in subparagraph (D)(ii) shall be based on the cash rent market value prior to the application of a State or local law, order, or regulation prohibiting water use for agricultural production.

      `(2) TENANT PROTECTION- Except for a person who is a tenant on land that is subject to a conservation reserve contract that has been extended by the Secretary, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provisions for sharing, on a fair and equitable basis, in payments under the programs established under this subtitle and subtitles B and C.

      `(3) PROVISION OF TECHNICAL ASSISTANCE BY OTHER SOURCES-

        `(A) IN GENERAL- In the preparation and application of a conservation compliance plan under subtitle B or similar plan required as a condition for assistance from the Department of Agriculture, the Secretary shall permit persons to secure technical assistance from approved sources, as determined by the Secretary, other than the Natural Resources Conservation Service.

        `(B) REJECTION- If the Secretary rejects a technical determination made by a source described in subparagraph (A), the basis of the determination of the Secretary shall be supported by documented evidence.

      `(4) REGULATIONS- Not later than 90 days after the date of enactment of the Food and Energy Security Act of 2007, the Secretary shall promulgate regulations to implement the conservation reserve and wetlands reserve programs established under this chapter.'.

    (b) Conforming Amendments-

      (1) Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is repealed.

      (2) Section 1222(g) of the Food Security Act of 1985 (16 U.S.C. 3822(g)) is amended by striking `1243' and inserting `1230(c)'.

      (3) Section 1231(k)(3)(C)(i) of the Food Security Act of 1985 (16 U.S.C. 3831(k)(3)(C)(i)) is amended by striking `1243(b)' and inserting `1230(c)(1)'.

Subchapter B--Conservation Reserve

SEC. 2311. CONSERVATION RESERVE PROGRAM.

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

      (1) by striking `2007' and inserting `2012'; and

      (2) by striking `and wildlife' and inserting `wildlife, and pollinator habitat'.

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

      (1) in paragraph (1)(B), by striking the period at the end and inserting a semicolon;

      (2) in paragraph (4)--

        (A) in subparagraph (C), by striking `; or' and inserting a semicolon;

        (B) in subparagraph (D), by striking `and' at the end and inserting `or'; and

        (C) in subparagraph (E), by inserting `in the case of alfalfa or other forage crops,' before `enrollment';

      (3) in paragraph (5), by striking the period at the end and inserting a semicolon; and

      (4) by adding at the end the following:

      `(6) marginal pasture land or hay land that is otherwise ineligible, if the land--

        `(A) is to be devoted to native vegetation appropriate to the ecological site; and

        `(B) would contribute to the restoration of a long-leaf pine forest or other declining forest ecosystem, as defined by the Secretary; or

      `(7) land that is enrolled in the flooded farmland program established under section 1235B.'.

    (c) Enrollment- Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended by striking `up to' and all that follows through `2007' and inserting `up to 39,200,000 acres in the conservation reserve at any 1 time during the 2008 through 2012'.

    (d) Conservation Priority Areas- Section 1231(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3831(f)(1)) is amended--

      (1) by striking `(Pennsylvania, Maryland, and Virginia)'; and

      (2) by inserting `the Prairie Pothole Region, the Grand Lake St. Mary's Watershed, the Eastern Snake Plain Aquifer,' after `Sound Region,'.

    (e) Pilot Program for Enrollment of Wetland and Buffer Acreage in Conservation Reserve- Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by striking subsection (h) and inserting the following:

    `(h) Pilot Program for Enrollment of Wetland, Shallow Water Areas, and Buffer Acreage in Conservation Reserve-

      `(1) PROGRAM-

        `(A) IN GENERAL- During the 2008 through 2012 calendar years, the Secretary shall carry out a program in each State under which the Secretary shall enroll eligible acreage described in paragraph (2).

        `(B) PARTICIPATION AMONG STATES- The Secretary shall ensure, to the maximum extent practicable, that owners and operators in each State have an equitable opportunity to participate in the pilot program established under this subsection.

      `(2) ELIGIBLE ACREAGE-

        `(A) IN GENERAL- Subject to subparagraphs (B) through (E), an owner or operator may enroll in the conservation reserve under this subsection--

          `(i)(I) a wetland (including a converted wetland described in section 1222(b)(1)(A)) that had a cropping history during at least 3 of the immediately preceding 10 crop years;

          `(II) a shallow water area that was devoted to a commercial pond-raised aquaculture operation any year during the period of calendar years 2002 through 2007; or

          `(III) an agriculture drainage water treatment that receives flow from a row crop agriculture drainage system and is designed to provide nitrogen removal in addition to other wetland functions; and

          `(ii) buffer acreage that--

            `(I) is contiguous to a wetland or shallow water area described in clause (i);

            `(II) is used to protect the wetland or shallow water area described in clause (i); and

            `(III) is of such width as the Secretary determines is necessary to protect the wetland or shallow water area described in clause (i) or to enhance the wildlife benefits, including through restriction of bottomland hardwood habitat, taking into consideration and accommodating the farming practices (including the straightening of boundaries to accommodate machinery) used with respect to the cropland that surrounds the wetland or shallow water area.

        `(B) EXCLUSIONS- Except for a shallow water area described in paragraph (2)(A)(i), an owner or operator may not enroll in the conservation reserve under this subsection--

          `(i) any wetland, or land on a floodplain, that is, or is adjacent to, a perennial riverine system wetland identified on the final national wetland inventory map of the Secretary of the Interior; or

          `(ii) in the case of an area that is not covered by the final national inventory map, any wetland, or land on a floodplain, that is adjacent to a perennial stream identified on a 1-24,000 scale map of the United States Geological Survey.

        `(C) PROGRAM LIMITATIONS-

          `(i) IN GENERAL- The Secretary may enroll in the conservation reserve under this subsection not more than--

            `(I) 100,000 acres in any 1 State referred to in paragraph (1); and

            `(II) not more than a total of 1,000,000 acres.

          `(ii) RELATIONSHIP TO PROGRAM MAXIMUM- Subject to clause (iii), for the purposes of subsection (d), any acreage enrolled in the conservation reserve under this subsection shall be considered acres maintained in the conservation reserve.

          `(iii) RELATIONSHIP TO OTHER ENROLLED ACREAGE- Acreage enrolled under this subsection shall not affect for any fiscal year the quantity of--

            `(I) acreage enrolled to establish conservation buffers as part of the program announced on March 24, 1998 (63 Fed. Reg. 14109); or

            `(II) acreage enrolled into the conservation reserve enhancement program announced on May 27, 1998 (63 Fed. Reg. 28965).

          `(iv) REVIEW; POTENTIAL INCREASE IN ENROLLMENT ACREAGE- Not later than 3 years after the date of enactment of the Food and Energy Security Act of 2007, the Secretary shall--

            `(I) conduct a review of the program under this subsection with respect to each State that has enrolled land in the program; and

            `(II) notwithstanding clause (i)(I), increase the number of acres that may be enrolled by a State under clause (i)(I) to not more than 150,000 acres, as determined by the Secretary.

        `(D) OWNER OR OPERATOR LIMITATIONS-

          `(i) WETLAND-

            `(I) IN GENERAL- Except for a shallow water area described in paragraph (2)(A)(i), the maximum size of any wetland described in subparagraph (A)(i) of an owner or operator enrolled in the conservation reserve under this subsection shall be 40 contiguous acres.

            `(II) COVERAGE- All acres described in subclause (I) (including acres that are ineligible for payment) shall be covered by the conservation contract.

          `(ii) BUFFER ACREAGE- The maximum size of any buffer acreage described in subparagraph (A)(ii) of an owner or operator enrolled in the conservation reserve under this subsection shall be determined by the Secretary in consultation with the State Technical Committee.

          `(iii) TRACTS- Except for a shallow water area described in paragraph (2)(A)(i) and buffer acreage, the maximum size of any eligible acreage described in subparagraph (A) in a tract (as determined by the Secretary) of an owner or operator enrolled in the conservation reserve under this subsection shall be 40 acres.

      `(3) DUTIES OF OWNERS AND OPERATORS- Under a contract entered into under this subsection, during the term of the contract, an owner or operator of a farm or ranch shall agree--

        `(A) to restore the hydrology of the wetland within the eligible acreage to the maximum extent practicable, as determined by the Secretary;

        `(B) to establish vegetative cover (which may include emerging vegetation in water and bottomland hardwoods, cypress, and other appropriate tree species in shallow water areas) on the eligible acreage, as determined by the Secretary;

        `(C) to a general prohibition of commercial use of the enrolled land; and

        `(D) to carry out other duties described in section 1232.

      `(4) DUTIES OF THE SECRETARY-

        `(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), in return for a contract entered into by an owner or operator under this subsection, the Secretary shall make payments based on rental rates for cropland and provide assistance to the owner or operator in accordance with sections 1233 and 1234.

        `(B) CONTINUOUS SIGNUP- The Secretary shall use continuous signup under section 1234(c)(2)(B) to determine the acceptability of contract offers and the amount of rental payments under this subsection.

        `(C) INCENTIVES- The amounts payable to owners and operators in the form of rental payments under contracts entered into under this subsection shall reflect incentives that are provided to owners and operators to enroll filterstrips in the conservation reserve under section 1234.'.

    (f) Balance of Natural Resource Purposes- Section 1231(j) of the Food Security Act of 1985 (16 U.S.C. 3831(j)) is amended by striking `and wildlife' and inserting `wildlife, and pollinator'.

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

      (1) in paragraph (4)--

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

        (B) by inserting before subparagraph (B) (as so redesignated) the following:

        `(A) approved vegetative cover shall encourage the planting of native species and restoration of biodiversity;';

      (2) by redesignating paragraphs (5) through (10) as paragraphs (6) through (11), respectively; and

      (3) by inserting after paragraph (4) the following:

      `(5) to undertake active management on the land as needed throughout the term of the contract to implement the conservation plan;'.

    (h) Managed Harvesting and Grazing- Section 1232(a)(7) of the Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--

      (1) in the matter preceding subparagraph (A), by inserting `and brood rearing' after `habitat during nesting'; and

      (2) in subparagraph (A), by striking `biomass)' and inserting `biomass and prescribed grazing for the control of invasive species), if such activity is permitted and consistent with the conservation plan described in subsection (b)(1)(A))'.

    (i) Conservation Plans- Section 1232(b)(1)(A) of the Food Security Act of 1985 (16 U.S.C. 3832(b)(1)(A)) is amended by striking `contract; and' and inserting the following: `contract that are--

          `(i) compatible with the conservation and improvement of soil, water, and wildlife and wildlife habitat;

          `(ii) clearly described and apply throughout the duration of the contract;

          `(iii) actively managed by the owner or operator that entered into the contract; and

          `(iv) consistent with local active management conservation measures and practices, as determined by the Secretary; and'.

    (j) Acceptance of Contract Offers- Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended--

      (1) by striking paragraph (3) and inserting the following:

      `(3) ACCEPTANCE OF CONTRACT OFFERS-

        `(A) EVALUATION OF OFFERS- In determining the acceptability of contract offers, the Secretary may take into consideration the extent to which enrollment of the land that is the subject of the contract offer would improve soil resources, water quality, pollinator, fish, or wildlife habitat, or provide other environmental benefits.

        `(B) LOCAL PREFERENCE- In determining the acceptability of contract offers for new enrollments if, as determined by the Secretary, the land would provide at least equivalent conservation benefits to land under competing offers, the Secretary shall, to the maximum extent practicable, accept an offer from an owner or operator that is a resident of the county in which the land is located or of a contiguous county.'; and

      (2) by adding at the end the following:

      `(5) RENTAL RATES-

        `(A) ANNUAL ESTIMATES- Not later than 1 year after the date of enactment of this paragraph, the Secretary (acting through the National Agricultural Statistics Service) shall conduct an annual survey of per acre estimates of county average market dryland and irrigated cash rental rates for cropland and pastureland in all counties or equivalent subdivisions within each State that have 20,000 acres or more of cropland and pastureland.

        `(B) PUBLIC AVAILABILITY OF ESTIMATES- The estimates derived from the annual survey conducted under subparagraph (A) shall be maintained on a website of the Department of Agriculture for use by the general public.'.

    (k) Early Termination by Owner or Operator- Section 1235(e)(1) of the Food Security Act of 1985 (16 U.S.C. 3835(e)(1)) is amended by striking subparagraph (A) and inserting the following:

        `(A) IN GENERAL- The Secretary shall allow a participant to terminate a conservation reserve contract at any time if, as determined by the Secretary--

          `(i) the participant entered into a contract under this subchapter before January 1, 1995, and the contract has been in effect for at least 5 years; or

          `(ii) in the case of a participant who is disabled (as defined in section 72(m)(7) of the Internal Revenue Code of 1986) or retired from farming or ranching, the participant has endured financial hardship as a result of the taxation of rental payments received.'.

SEC. 2312. FLOODED FARMLAND PROGRAM.

    Subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831a et seq.) is amended by adding at the end the following:

`SEC. 1235B. FLOODED FARMLAND PROGRAM.

    `(a) Definitions- In this section:

      `(1) CLOSED BASIN LAKE OR POTHOLE- The term `closed basin lake or pothole' means a naturally occurring lake, pond, pothole, or group of potholes within a tract that--

        `(A) covered, on average, at least 5 acres in surface area during the preceding 3 crop years, as determined by the Secretary; and

        `(B) has no natural outlet.

      `(2) TRACT- The term `tract' has the meaning given the term by the Secretary.

    `(b) Program-

      `(1) IN GENERAL- Notwithstanding any other provision of law (including regulations), as part of the conservation reserve program established under this subchapter, the Secretary shall offer to enter into contracts under which the Secretary shall permit the enrollment in the conservation reserve of eligible cropland and grazing land that has been flooded by the natural overflow of a closed basin lake or pothole located within the Prairie Pothole Region of the northern Great Plains priority area (as determined by the Secretary, by regulation).

      `(2) EXTENSIONS- The Secretary may offer to extend a contract entered into under paragraph (1) if the Secretary determines that conditions persist that make cropland or grazing land covered by the contract and eligible for entry into the program under this section.

    `(c) Continuous Signup- The Secretary shall offer the program under this section through continuous signup under this subchapter.

    `(d) Eligibility-

      `(1) IN GENERAL- To be eligible to enter into a contract under subsection (b), the owner shall own land that, as determined by the Secretary--

        `(A) during the 3 crop years preceding entry into the contract, was rendered incapable of use for the production of an agricultural commodity or for grazing purposes; and

        `(B) prior to the natural overflow of a closed basin lake or pothole caused by a period of precipitation in excess of historical patterns, had been consistently used for the production of crops or as grazing land.

      `(2) INCLUSIONS- Land described in paragraph (1) shall include--

        `(A) land that has been flooded as the result of the natural overflow of a closed basin lake or pothole;

        `(B) land that has been rendered inaccessible due to flooding as the result of the natural overflow of a closed basin lake or pothole; and

        `(C) a reasonable quantity of additional land adjoining the flooded land that would enhance the conservation or wildlife value of the tract, as determined by the Secretary.

      `(3) ADMINISTRATION- The Secretary may establish--

        `(A) reasonable minimum acreage levels for individual parcels of land that may be included in a contract entered into under this section; and

        `(B) the location and area of adjoining flooded land that may be included in a contract entered into under this section.

    `(e) Payments-

      `(1) IN GENERAL- Subject to paragraph (2), the rate of an annual rental payment under this section, as determined by the Secretary--

        `(A) shall be based on the rental rate under this subchapter for cropland, and an appropriate rental rate for pastureland; and

        `(B) may be reduced by up to 25 percent, based on the ratio of upland associated with the enrollment of the flooded land.

      `(2) EXCLUSIONS- During the term of a contract entered into under this section, an owner shall not be eligible to participate in or receive benefits for land that is included in the contract under--

        `(A) the Federal crop insurance program established under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);

        `(B) the noninsured crop assistance program established under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); or

        `(C) any Federal agricultural crop disaster assistance program.

    `(f) Relationship to Agricultural Commodity Programs-

      `(1) IN GENERAL- Subject to paragraph (2), the Secretary, by regulation, shall provide for the preservation of cropland base, allotment history, and payment yields applicable to land that was rendered incapable of use for the production of an agricultural commodity or for grazing purposes as the result of the natural overflow of a closed basin lake or pothole.

      `(2) TERMINATION OF CONTRACT- On termination of a contract under this section, the Secretary shall adjust the cropland base, allotment history, and payment yields for land covered by the contract to ensure equitable treatment of the land relative to program payment yields of comparable land in the county that was not flooded as a result of the natural overflow of a closed basin lake or pothole and was capable of remaining in agricultural production.

    `(g) Use of Land- An owner that has entered into a contract with the Secretary under this section shall take such actions as are necessary to avoid degrading any wildlife habitat on land covered by the contract that has naturally developed as a result of the natural overflow of a closed basin lake or pothole.'.

SEC. 2313. WILDLIFE HABITAT PROGRAM.

    Subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831a et seq.) (as amended by section 2312) is amended by adding at the end the following:

`SEC. 1235C. WILDLIFE HABITAT PROGRAM.

    `(a) In General- As part of the conservation reserve program established under this subchapter, the Secretary shall carry out a program to provide to owners and operators who have entered into contracts under this subchapter and established softwood pine stands, for each of fiscal years 2008 through 2012, assistance to carry out, on the acreage of the owner or operator enrolled in the program under this subchapter, activities that improve the condition of the enrolled land for the benefit of wildlife.

    `(b) Scope of Program- In carrying out the program under this section, the Secretary shall determine--

      `(1) the amount and rate of payments (including incentive payments and cost-sharing payments) to be made to owners and operators who participate in the program to ensure the participation of those owners and operators;

      `(2) the areas in each of the States in which owners and operators referred to in subsection (a) are located that should be given priority under the program, based on the need in those areas for changes in the condition of land to benefit wildlife; and

      `(3) the management strategies and practices (including thinning, burning, seeding, establishing wildlife food plots, and such other practices that have benefits for wildlife as are approved by the Secretary) that may be carried out by owners and operators under the program.

    `(c) Agreements-

      `(1) IN GENERAL- An owner or operator described in subsection (a) that seeks to receive assistance under this section shall enter into an agreement with the Secretary that--

        `(A) describes the management strategies and practices referred to in subsection (b)(3) that will be carried out by the owner or operator under the agreement;

        `(B) describes measures to be taken by the owner or operator to ensure active but flexible management of acreage covered by the agreement;

        `(C) requires the owner or operator to submit to periodic monitoring and evaluation by wildlife or forestry agencies of the State in which land covered by the agreement is located; and

        `(D) contains such other terms or conditions as the Secretary may require.

      `(2) TERM; INCLUSION IN CONTRACT- An agreement entered into under this section shall have a term of not more than 5 years.

    `(d) Partnerships- In carrying out this section, the Secretary may establish or identify and, as appropriate, require owners and operators participating in the program under this section to work cooperatively with, partnerships among the Secretary and State, local, and nongovernmental organizations.

    `(e) Technical Assistance and Cost Sharing- The Secretary may provide to owners and operators participating in the program under this section, and members of partnerships described in subsection (d)--

      `(1) technical assistance for use in carrying out an activity covered by an agreement described in subsection (c); and

      `(2) a payment for use in covering a percentage of the costs of carrying out each such activity that does not exceed the applicable amount and rate determined by the Secretary under subsection (b)(1).

    `(f) Termination of Program- The program under this section shall terminate on September 30, 2011.'.

Subchapter C--Wetlands Reserve Program

SEC. 2321. WETLANDS RESERVE PROGRAM.

    Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is amended--

      (1) by striking subsection (b) and inserting the following:

    `(b) Enrollment Conditions-

      `(1) ANNUAL ENROLLMENT- To the maximum extent practicable, the Secretary shall enroll 250,000 acres in each fiscal year, with no enrollments beginning in fiscal year 2013.

      `(2) METHODS OF ENROLLMENT-

        `(A) IN GENERAL- Except as provided in subparagraph (B), the Secretary shall enroll acreage into the wetlands reserve program through the use of--

          `(i) permanent easements;

          `(ii) 30-year easements;

          `(iii) restoration cost-share agreements; or

          `(iv) any combination of the options described in clauses (i) through (iii).

        `(B) ACREAGE OWNED BY INDIAN TRIBES- In the case of acreage owned by an Indian tribe, the Secretary shall enroll acreage into the wetlands reserve program through the use of--

          `(i) a 30-year contract (the value of which shall be equivalent to the value of a 30-year easement);

          `(ii) restoration cost-share agreements; or

          `(iii) any combination of the options described in clauses (i) and (ii).';

      (2) in subsection (c), by striking `2007 calendar' and inserting `2012 fiscal'; and

      (3) in subsection (d)--

        (A) in paragraph (2), by striking `or' at the end; and

        (B) by striking paragraph (3) and inserting the following:

      `(3) a riparian area; or

      `(4) a riparian area and an adjacent area that links the riparian area to other parcels of wetland that are protected by wetlands reserve agreements or some other device or circumstance that achieves the same purpose as a wetlands reserve agreement.'.

SEC. 2322. EASEMENTS AND AGREEMENTS.

    (a) Terms of Easement- Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C. 3837a(b)(2)(B)) is amended--

      (1) in clause (i), by striking `or' at the end;

      (2) in clause (ii), by striking `; and' and inserting `; or'; and

      (3) by adding at the end the following:

          `(iii) to meet habitat needs of specific wildlife species; and'.

    (b) Compensation- Section 1237A(f) of the Food Security Act of 1985 (16 U.S.C. 3837a(f)) is amended--

      (1) in the first sentence--

        (A) by striking `Compensation' and inserting the following:

      `(1) IN GENERAL- Compensation'; and

        (B) by striking `agreed to' and all that follows through `encumbered by the easement' and inserting `determined under paragraph (4)';

      (2) in the second sentence, by striking `Lands' and inserting the following:

      `(2) BIDS- Land';

      (3) by striking the third sentence and inserting the following:

      `(3) PAYMENTS- Compensation may be provided in not less than 1 and not more than 30 annual payments of equal or unequal size, as agreed to by the owner and the Secretary.'; and

      (4) by adding at the end the following:

      `(4) COMPENSATION- Effective on the date of enactment of this paragraph, the Secretary shall pay the lowest amount of compensation for a conservation easement, as determined by a comparison of subparagraphs (A), (B), and (C):

        `(A) The amount necessary to encourage the enrollment of parcels of land that are of importance in achieving the purposes of the program, as determined by the State Conservationist, with advice from the State technical committee, based on 1 of the following:

          `(i) The net present value of 30 years of annual rental payments based on the county simple average soil rental rates developed under subchapter B.

          `(ii) An area-wide market analysis or survey.

          `(iii) An amount not less than the value of the agricultural or otherwise undeveloped raw land based on the Uniform Standards of Professional Appraisal Practice.

        `(B) The amount corresponding to a geographical area value limitation, as determined by the State Conservationist, with advice from the State technical committee.

        `(C) The amount contained in the offer made by the landowner.'.

    (c) Wetlands Reserve Enhancement Program- Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is amended by adding at the end the following:

    `(h) Wetlands Reserve Enhancement Program-

      `(1) IN GENERAL- The Secretary may enter into 1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetlands reserve enhancement program that the Secretary determines would advance the purposes of this subchapter.

      `(2) RESERVED RIGHTS- Under the wetlands reserve enhancement program, the Secretary may use unique wetlands reserve agreements that may include certain compatible uses as reserved rights in the warranty easement deed restriction, if using those agreements is determined by the Secretary to be--

        `(A) consistent with the long-term wetland protection and enhancement goals for which the easement was established; and

        `(B) in accordance with a conservation plan.'.

    (d) Report-

      (1) IN GENERAL- Not later than January 1, 2010, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that evaluates the implications of the long-term nature of conservation easements granted under section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) on resources of the Department of Agriculture.

      (2) INCLUSIONS- The report shall include--

        (A) data relating to the number and location of conservation easements granted under that section that the Secretary holds or has a significant role in monitoring or managing;

        (B) an assessment of the extent to which the oversight of the conservation easement agreements impacts the availability of resources, including technical assistance;

        (C) an assessment of the uses and value of agreements with partner organizations; and

        (D) any other relevant information relating to costs or other effects that would be helpful to the Committees.

SEC. 2323. PAYMENTS.

    Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 3837d(c)) is amended--

      (1) in paragraph (1)--

        (A) by striking `The total' and inserting `Subject to section 1244(i), the total';

        (B) by striking `easement payments' and inserting `payments';

        (C) by striking `person' and inserting `individual'; and

        (D) by inserting `or under 30-year contracts or restoration agreements' before the period at the end; and

      (2) in paragraph (3)--

        (A) by striking `Easement payments' and inserting `Payments'; and

        (B) by striking `the Food, Agriculture, Conservation, and Trade Act of 1990, or the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)' and inserting `the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104-127; 110 Stat. 888), or the Farm Security and Rural Investment Act of 2002 (Public Law 107-171; 116 Stat. 134)'.

Subchapter D--Healthy Forests Reserve Program

SEC. 2331. HEALTHY FORESTS RESERVE PROGRAM.

    (a) In General- Chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended by adding at the end the following:

`Subchapter D--Healthy Forests Reserve Program

`SEC. 1237M. ESTABLISHMENT OF HEALTHY FORESTS RESERVE PROGRAM.

    `(a) Establishment- The Secretary shall establish the healthy forests reserve program for the purpose of restoring and enhancing forest ecosystems--

      `(1) to promote the recovery of threatened and endangered species;

      `(2) to improve biodiversity; and

      `(3) to enhance carbon sequestration.

    `(b) Coordination- The Secretary shall carry out the healthy forests reserve program in coordination with the Secretary of the Interior and the Secretary of Commerce.

`SEC. 1237N. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

    `(a) In General- The Secretary, in coordination with the Secretary of the Interior and the Secretary of Commerce, shall describe and define forest ecosystems that are eligible for enrollment in the healthy forests reserve program.

    `(b) Eligibility- To be eligible for enrollment in the healthy forests reserve program, land shall be--

      `(1) private land the enrollment of which will restore, enhance, or otherwise measurably increase the likelihood of recovery of a species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); and

      `(2) private land the enrollment of which will restore, enhance, or otherwise measurably improve the well-being of species that--

        `(A) are not listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); but

        `(B) are candidates for such listing, State-listed species, or special concern species.

    `(c) Other Considerations- In enrolling land that satisfies the criteria under subsection (b), the Secretary shall give additional consideration to land the enrollment of which will--

      `(1) improve biological diversity; and

      `(2) increase carbon sequestration.

    `(d) Enrollment by Willing Owners- The Secretary shall enroll land in the healthy forests reserve program only with the consent of the owner of the land.

    `(e) Methods of Enrollment-

      `(1) IN GENERAL- Land may be enrolled in the healthy forests reserve program in accordance with--

        `(A) a 10-year cost-share agreement;

        `(B) a 30-year easement; or

        `(C) a permanent easement.

      `(2) PROPORTION- The extent to which each enrollment method is used shall be based on the approximate proportion of owner interest expressed in that method in comparison to the other methods.

      `(3) ACREAGE OWNED BY INDIAN TRIBES- In the case of acreage owned by an Indian tribe, the Secretary may enroll acreage into the healthy forests reserve program through the use of--

        `(A) a 30-year contract (the value of which shall be equivalent to the value of a 30-year easement);

        `(B) a 10-year cost-share agreement; or

        `(C) any combination of the options described in subparagraphs (A) and (B).

    `(f) Enrollment Priority-

      `(1) SPECIES- The Secretary shall give priority to the enrollment of land that provides the greatest conservation benefit to--

        `(A) primarily, species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); and

        `(B) secondarily, species that--

          `(i) are not listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); but

          `(ii) are candidates for such listing, State-listed species, or special concern species.

      `(2) COST-EFFECTIVENESS- The Secretary shall also consider the cost-effectiveness of each agreement or easement, and associated restoration plans, so as to maximize the environmental benefits per dollar expended.

`SEC. 1237O. RESTORATION PLANS.

    `(a) In General- Land enrolled in the healthy forests reserve program shall be subject to a restoration plan, to be developed jointly by the landowner and the Secretary, in coordination with the Secretary of Interior.

    `(b) Practices- The restoration plan shall require such restoration practices as are necessary to restore and enhance habitat for--

      `(1) species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); and

      `(2) animal or plant species before the species reach threatened or endangered status, such as candidate, State-listed species, and special concern species.

`SEC. 1237P. FINANCIAL ASSISTANCE.

    `(a) Permanent Easements- In the case of land enrolled in the healthy forests reserve program using a permanent easement, the Secretary shall pay to the owner of the land an amount equal to not less than 75 percent, nor more than 100 percent, of (as determined by the Secretary)--

      `(1) the fair market value of the enrolled land during the period the land is subject to the easement, less the fair market value of the land encumbered by the easement; and

      `(2) the actual costs of the approved conservation practices or the average cost of approved practices carried out on the land during the period in which the land is subject to the easement.

    `(b) 30-Year Easement or Contract- In the case of land enrolled in the healthy forests reserve program using a 30-year easement or contract, the Secretary shall pay the owner of the land an amount equal to not more than (as determined by the Secretary)--

      `(1) 75 percent of the fair market value of the land, less the fair market value of the land encumbered by the easement or contract; and

      `(2) 75 percent of the actual costs of the approved conservation practices or 75 percent of the average cost of approved practices.

    `(c) 10-Year Agreement- In the case of land enrolled in the healthy forests reserve program using a 10-year cost-share agreement, the Secretary shall pay the owner of the land an amount equal to not more than (as determined by the Secretary)--

      `(1) 50 percent of the actual costs of the approved conservation practices; or

      `(2) 50 percent of the average cost of approved practices.

    `(d) Acceptance of Contributions- The Secretary may accept and use contributions of non-Federal funds to make payments under this section.

`SEC. 1237Q. TECHNICAL ASSISTANCE.

    `(a) In General- The Secretary shall provide landowners with technical assistance to assist the owners in complying with the terms of plans (as included in agreements or easements) under the healthy forests reserve program.

    `(b) Technical Service Providers- The Secretary may request the services of, and enter into cooperative agreements with, individuals or entities certified as technical service providers under section 1242, to assist the Secretary in providing technical assistance necessary to develop and implement the healthy forests reserve program.

`SEC. 1237R. PROTECTIONS AND MEASURES.

    `(a) Protections- In the case of a landowner that enrolls land in the program and whose conservation activities result in a net conservation benefit for listed, candidate, or other species, the Secretary shall make available to the landowner safe harbor or similar assurances and protection under--

      `(1) section 7(b)(4) of the Endangered Species Act of 1973 (16 U.S.C. 1536(b)(4)); or

      `(2) section 10(a)(1) of that Act (16 U.S.C. 1539(a)(1)).

    `(b) Measures- If protection under subsection (a) requires the taking of measures that are in addition to the measures covered by the applicable restoration plan agreed to under section 1237O, the cost of the additional measures, as well as the cost of any permit, shall be considered part of the restoration plan for purposes of financial assistance under section 1237P.

`SEC. 1237S. INVOLVEMENT BY OTHER AGENCIES AND ORGANIZATIONS.

    `In carrying out this subchapter, the Secretary may consult with--

      `(1) nonindustrial private forest landowners;

      `(2) other Federal agencies;

      `(3) State fish and wildlife agencies;

      `(4) State forestry agencies;

      `(5) State environmental quality agencies;

      `(6) other State conservation agencies; and

      `(7) nonprofit conservation organizations.

`SEC. 1237T. AUTHORIZATION OF APPROPRIATIONS.

    `There are authorized to be appropriated to carry out this subchapter such sums as are necessary for each of fiscal years 2008 through 2012.'.

    (b) Conforming Amendments- The Healthy Forests Restoration Act of 2003 (16 U.S.C. 6501 et seq.) is amended--

      (1) by striking title V (16 U.S.C. 6571 et seq.); and

      (2) by redesignating title VI and section 601 (16 U.S.C. 6591) as title V and section 501, respectively.

CHAPTER 2--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

Subchapter A--General Provisions

SEC. 2341. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following:

`CHAPTER 6--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

`Subchapter A--Comprehensive Stewardship Incentives Program

`SEC. 1240T. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

    `(a) Establishment-

      `(1) IN GENERAL- The Secretary shall establish a comprehensive stewardship incentives program (referred to in this chapter as `CSIP') to--

        `(A) promote coordinated efforts within conservation programs in this chapter to address resources of concern, as identified at the local level;

        `(B) encourage the adoption of conservation practices, activities and management measures; and

        `(C) promote agricultural production and environmental quality as compatible goals.

      `(2) MEANS- The Secretary shall carry out CSIP by--

        `(A) identifying resources of concern at a local level as described in subsection (b)(4);

        `(B) entering into contracts with owners and operators of agricultural and nonindustrial private forest land to--

          `(i) address natural resource concerns;

          `(ii) meet regulatory requirements; or

          `(iii) achieve and maintain new conservation practices, activities and management measures; and

        `(C) providing technical assistance.

      `(3) PROGRAMS- CSIP shall consist of--

        `(A) the conservation stewardship program; and

        `(B) the environmental quality incentives program.

      `(4) DEFINITION OF RESOURCE OF CONCERN- In this chapter, the term `resource of concern' means--

        `(A) a specific resource concern on agricultural or nonindustrial private forest land that--

          `(i) is identified by the Secretary in accordance with subsection (b)(4);

          `(ii) represents a significant conservation concern in the State to which agricultural activities are contributing; and

          `(iii) is likely to be addressed successfully through the implementation of conservation practices, activities, and management measures by owners and operators of agricultural and nonindustrial private forest land; or

        `(B) a specific resource concern on agricultural or nonindustrial private forest land that is the subject of mandatory environmental requirements that apply to a producer under Federal, State, or local law.

    `(b) Administration-

      `(1) IN GENERAL- In carrying out CSIP, the Secretary shall ensure that the conservation programs under this chapter are managed in a coordinated manner.

      `(2) PLANS- The Secretary shall, to the maximum extent practicable, avoid duplication in the conservation plans required under this chapter and comparable conservation and regulatory programs, including a permit acquired under an approved water or air quality regulatory program.

      `(3) TENANT PROTECTION- The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing, on a fair and equitable basis, in payments under the programs established under this chapter.

      `(4) IDENTIFICATION OF RESOURCES OF CONCERN-

        `(A) IN GENERAL- The Secretary shall ensure that resources of concern are identified at the State level in consultation with the State Technical Committee.

        `(B) LIMITATION- The Secretary shall identify not more than 5 resources of concern in a particular watershed or other appropriate region or area within a State.

      `(5) REGULATIONS- Not later than 180 days after the date of enactment of the Food and Energy Security Act of 2007 the Secretary shall issue regulations to implement the programs established under this chapter.

`Subchapter B--Conservation Stewardship Program

`SEC. 1240U. PURPOSES.

    `The purpose of the conservation stewardship program is to promote agricultural production and environmental quality as compatible goals, and to optimize environmental benefits, by assisting producers--

      `(1) in promoting conservation and improving resources of concern (including soil, water, and energy conservation, soil, water, and air quality, biodiversity, fish, wildlife and pollinator habitat, and related resources of concern, as defined by the Secretary) by providing flexible assistance to install, improve, and maintain conservation systems, practices, activities, and management measures on agricultural land (including cropland, grazing land, and wetland) while sustaining production of food and fiber;

      `(2) in making beneficial, cost-effective changes to conservation systems, practices, activities, and management measures carried out on agricultural and forest land relating to--

        `(A) cropping systems;

        `(B) grazing management systems;

        `(C) nutrient management associated with livestock and crops;

        `(D) forest management;

        `(E) fuels management;

        `(F) integrated pest management;

        `(G) irrigation management;

        `(H) invasive species management;

        `(I) energy conservation; or

        `(J) other management-intensive issues;

      `(3) in complying with Federal, State, tribal, and local requirements concerning--

        `(A) soil, water, and air quality;

        `(B) fish, wildlife, and pollinator habitat; and

        `(C) surface water and groundwater conservation;

      `(4) in avoiding, to the maximum extent practicable, the need for resource and regulatory programs by protecting resources of concern and meeting environmental quality criteria established by Federal, State, tribal, and local agencies; and

      `(5) by encouraging, consolidating, and streamlining conservation planning and regulatory compliance processes to reduce administrative burdens on producers and the cost of achieving environmental goals.

`SEC. 1240V. DEFINITIONS.

    `In this chapter:

      `(1) COMPREHENSIVE CONSERVATION PLAN- The term `comprehensive conservation plan' means a plan produced by following the planning process outlined in the applicable National Planning Procedures Handbook of the Department of Agriculture with regard to all applicable resources of concern.

      `(2) CONTRACT OFFER- The term `contract offer' means an application submitted by a producer that seeks to address 1 or more resources of concern with the assistance of the program.

      `(3) ENHANCEMENT PAYMENT- The term `enhancement payment' means a payment described in section 1240X(d).

      `(4) ELIGIBLE LAND- The term `eligible land' means land described in section 1240X(b).

      `(5) LIVESTOCK- The term `livestock' means dairy cattle, beef cattle, laying hens, broilers, turkeys, swine, sheep, goats, ducks, ratites, shellfish, alpacas, bison, catfish, managed pollinators, and such other animals and fish as are determined by the Secretary.

      `(6) MANAGEMENT INTENSITY- The term `management intensity' means the degree, scope, and comprehensiveness of conservation systems, practices, activities, or management measures adopted by a producer to improve and sustain the condition of a resource of concern.

      `(7) PAYMENT- The term `payment' means financial assistance provided to a producer under the program to compensate the producers for incurred costs associated with planning, materials, installation, labor, management, maintenance, technical assistance, and training, the value of risk, and income forgone by the producer, as applicable, including--

        `(A) enhancement payments;

        `(B) CSP supplemental payments; and

        `(C) other payments provided under this chapter.

      `(8) PRACTICE-

        `(A) IN GENERAL- The term `practice' means 1 or more measures that improve or sustain a resource of concern.

        `(B) INCLUSIONS- The term `practice' includes--

          `(i) structural measures, vegetative measures, and land management measures, as determined by the Secretary; and

          `(ii) planning activities needed to improve or sustain a resource of concern, including implementation of--

            `(I) a comprehensive conservation plan; and

            `(II) a comprehensive nutrient management plan.

      `(9) PRODUCER- The term `producer' means an individual who is an owner, operator, landlord, tenant, or sharecropper that--

        `(A) derives income from, and controls, the production or management of an agricultural commodity, livestock, or nonindustrial forest land regardless of ownership;

        `(B) shares in the risk of producing any crop or livestock; and

        `(C)(i) is entitled to share in the crop or livestock available for marketing from a farm (or would have shared had the crop or livestock been produced); or

        `(ii) is a custom feeder or contract grower.

      `(10) PROGRAM- The term `program' means the conservation stewardship program established under this chapter.

      `(11) RESOURCE-CONSERVING CROP- The term `resource-conserving crop' means--

        `(A) a perennial grass;

        `(B) a legume grown for use as forage, seed for planting, or green manure;

        `(C) a legume-grass mixture;

        `(D) a small grain grown in combination with a grass or legume, whether interseeded or planted in succession;

        `(E) a winter annual oilseed crop that provides soil protection; and

        `(F) such other plantings as the Secretary determines to be appropriate for a particular area.

      `(12) RESOURCE-CONSERVING CROP ROTATION- The term `resource-conserving crop rotation' means a crop rotation that--

        `(A) includes at least 1 resource-conserving crop;

        `(B) reduces erosion;

        `(C) improves soil fertility and tilth;

        `(D) interrupts pest cycles; and

        `(E) in applicable areas, reduces depletion of soil moisture (or otherwise reduces the need for irrigation).

      `(13) RESOURCE-SPECIFIC INDICES- The term `resource-specific indices' means indices developed by the Secretary that measure or estimate the expected level of resource and environmental outcomes of the conservation systems, practices, activities, and management measures employed by a producer to address a resource of concern on an agricultural operation.

      `(14) STEWARDSHIP CONTRACT- The term `stewardship contract' means a contract entered into under the conservation stewardship program to carry out the programs and activities described in this chapter.

      `(15) STEWARDSHIP THRESHOLD- The term `stewardship threshold' means the level of natural resource conservation and environmental management required, as determined by the Secretary--

        `(A) to maintain, conserve, and improve the quality or quantity of a resource of concern reflecting at a minimum, the resource management system quality criteria described in the handbooks of the Natural Resource Conservation Service, if available and appropriate; or

        `(B) in the case of a resource of concern that is the subject of a Federal, State, or local regulatory requirement, to meet the higher of--

          `(i) the standards that are established by the requirement for the resource of concern; or

          `(ii) standards reflecting the resource management system quality criteria described in the handbooks of the Natural Resource Conservation Service, if available and appropriate.

`SEC. 1240W. ESTABLISHMENT OF PROGRAM.

    `The Secretary shall establish and, for each of fiscal years 2008 through 2012, carry out a conservation stewardship program to assist producers in improving environmental quality by addressing resources of concern in a comprehensive manner through--

      `(1) the addition of conservation systems, practices, activities, and management measures; and

      `(2) the active management, maintenance, and improvement of existing, and adoption of new, conservation systems, practices, activities, and management measures.

`SEC. 1240X. ELIGIBILITY.

    `(a) Eligible Producers-

      `(1) GENERAL PROGRAM ELIGIBILITY- To be eligible to participate in the conservation stewardship program, a producer shall--

        `(A) submit to the Secretary for approval a contract offer to participate in the program;

        `(B) agree to receive technical services, either directly from the Secretary or, at the option of the producer, from an approved third party under section 1242(b)(3);

        `(C) enter into a contract with the Secretary, as described in subsection (c); and

        `(D) demonstrate to the satisfaction of the Secretary that the producer--

          `(i) is addressing resources of concern relating to both soil and water to at least the stewardship threshold; and

          `(ii) is adequately addressing other resources of concern applicable to the agricultural operation, as determined by the Secretary.

    `(b) Eligible Land-

      `(1) IN GENERAL- Except as provided in paragraph (2), private agricultural land that is eligible for enrollment in the program includes--

        `(A) cropland (including vineyards and orchards);

        `(B) pasture land;

        `(C) rangeland;

        `(D) other agricultural land used for the production of livestock;

        `(E) land used for agroforestry;

        `(F) land used for aquaculture;

        `(G) riparian areas adjacent to otherwise eligible land;

        `(H) land under the jurisdiction of an Indian tribe (as determined by the Secretary);

        `(I) public land, if failure to enroll the land in the program would defeat the purposes of the program on private land that is an integral part of the operation enrolled or offered to be enrolled in the program by the producer;

        `(J) State and school owned land that is under the effective control of a producer; and

        `(K) other agricultural land (including cropped woodland and marshes) that the Secretary determines is vulnerable to serious threats to resources of concern.

      `(2) EXCLUSIONS-

        `(A) LAND ENROLLED IN OTHER CONSERVATION PROGRAMS- The following land is not eligible for enrollment in the program:

          `(i) Land enrolled in the conservation reserve program under subchapter B of chapter 1.

          `(ii) Land enrolled in the wetlands reserve program established under subchapter C of chapter 1.

        `(B) CONVERSION TO CROPLAND- With regard to the program, land used for crop production after May 13, 2002, that had not been planted, considered to be planted, or devoted to crop production for at least 4 of the 6 years preceding that date (except for land enrolled in the conservation reserve program or that has been maintained using long-term crop rotation practices, as determined by the Secretary) shall not be the basis for any payment under the program.

      `(3) ECONOMIC USES- The Secretary shall not restrict economic uses of land covered by a program contract (including buffers and other partial field conservation practices) that comply with the agreement and comprehensive conservation plan, or other applicable law.

    `(c) Contract Requirements and Provisions-

      `(1) IN GENERAL- After a determination by the Secretary that a producer is eligible to participate in the program, and on acceptance of the contract offer of the producer, the Secretary shall enter into a contract with the producer to enroll the land to be covered by the contract.

      `(2) AGRICULTURAL OPERATIONS- All acres of all agricultural operations, whether or not contiguous, that are under the effective control of a producer within a particular watershed or region (or in a contiguous watershed or region) of a State and constitute a cohesive management unit, as determined by the Secretary, at the time the producer enters into a stewardship contract shall be covered by the stewardship contract, other than land the producer has enrolled in the conservation reserve program or the wetlands reserve program.

      `(3) RESOURCES OF CONCERN- Each stewardship contract shall, at a minimum, meet or exceed the stewardship threshold for at least 1 additional resource of concern by the end of the stewardship contract through--

        `(A) the installation and adoption of additional conservation systems, practices, activities, or management measures; and

        `(B) the active management and improvement of conservation systems, practices, activities, and management measures in place at the operation of the producer at the time the contract offer is accepted by the Secretary.

      `(4) TERMS- A contract entered into under paragraph (1) shall--

        `(A) describe the land covered by the contract;

        `(B) describe the practices or technical services from an approved third party, to be implemented on eligible land of the producer;

        `(C) state the amount of payments (determined in accordance with subsection (f)) the Secretary agrees to make to the producer each year of the contract;

        `(D) describe existing conservation systems, practices, activities, and management measures the producer agrees to maintain, manage, and improve during the term of the stewardship contract in order to meet and exceed the appropriate stewardship threshold for the resources of concern;

        `(E) describe the additional conservation systems, practices, activities, and management measures the producer agrees to plan, install, maintain, and manage during the term of the stewardship contract in order to meet and exceed the appropriate stewardship threshold for the appropriate resource or resources of concern;

        `(F) if applicable, describe the on-farm conservation research, demonstration, training, or pilot project activities the producer agrees to undertake during the term of the contract;

        `(G) if applicable, describe the on-farm monitoring and evaluation activities the producer agrees to undertake during the term of the contract relating to--

          `(i) a comprehensive conservation plan; or

          `(ii) conservation systems, practices, activities, and management measures; and

        `(H) include such other provisions as the Secretary determines are necessary to ensure that the purposes of the program are achieved.

      `(5) ON-FARM RESEARCH, DEMONSTRATION, TRAINING, OR PILOT PROJECTS- The Secretary may approve a stewardship contract that includes--

        `(A) on-farm conservation research, demonstration, and training activities; and

        `(B) pilot projects for evaluation of new technologies or innovative conservation practices.

      `(6) DURATION- A contract under this chapter shall have a term of 5 years.

      `(7) EVALUATION OF CONTRACT OFFERS- In evaluating contract offers made by producers to enter into contracts under the program, the Secretary shall--

        `(A) prioritize applications based on--

          `(i) the level of conservation treatment on all resources of concern at the time of application, based on the initial scores received by the producer on applicable resource-specific indices;

          `(ii) the degree to which the proposed conservation treatment effectively increases the level of performance on applicable resource-specific indices or the level of management intensity with which the producer addresses the designated resources of concern;

          `(iii) the extent to which all resources of concern will exceed the stewardship threshold level by the end of the contract period;

          `(iv) the extent to which resources of concern in addition to resources of concern will be addressed to meet and exceed the stewardship threshold level by the end of the contract period;

          `(v) the extent to which the producer proposes to address the goals and objectives of State, regional, and national fish and wildlife conservation plans and initiatives;

          `(vi) whether the proposed conservation treatment reflects the multiple natural resource and environmental benefits of conservation-based farming systems, including resource-conserving crop rotations, advanced integrated pest management, and managed rotational grazing; and

          `(vii) whether the application includes land transitioning out of the conservation reserve program, on the condition that the land is maintained in a grass-based system and would help meet habitat needs for fish and wildlife;

        `(B) evaluate the extent to which the anticipated environmental benefits from the contract would be provided in the most cost-effective manner, relative to other similarly beneficial contract offers;

        `(C) reward higher levels of environmental performance and management intensity;

        `(D) develop criteria for use in evaluating applications that will ensure that national, State, and local conservation priorities are effectively addressed;

        `(E) evaluate the extent to which the environmental benefits expected to result from the contract complement other conservation efforts in the watershed or region; and

        `(F) provide opportunities to agricultural producers that have not previously participated in Federal conservation programs, including beginning farmers and ranchers and socially disadvantaged farmers and ranchers.

      `(8) TERMINATION OF CONTRACTS-

        `(A) IN GENERAL-

          `(i) VOLUNTARY TERMINATION- The producer may terminate a contract entered into with the Secretary under this chapter if the Secretary determines that the termination is in the public interest.

          `(ii) INVOLUNTARY TERMINATION- The Secretary may terminate a contract under this chapter if the Secretary determines that the producer violated the contract.

        `(B) REPAYMENT- If a contract is terminated, the Secretary may--

          `(i) allow the producer to retain payments already received under the contract if--

            `(I) the producer has complied with the terms and conditions of the contract; and

            `(II) the Secretary determines that allowing the producer to retain the payments is consistent with the purposes of the program;

          `(ii) require repayment, in whole or in part, of payments already received; and

          `(iii) assess liquidated damages, if doing so is consistent with the purposes of the program.

        `(C) TRANSFER OR CHANGE OF INTEREST IN LAND SUBJECT TO A CONTRACT-

          `(i) IN GENERAL- Except as provided in clause (ii), the transfer, or change in the interest, of a producer in land subject to a contract under this chapter shall result in the termination of the contract.

          `(ii) TRANSFER OF DUTIES AND RIGHTS- Clause (i) shall not apply if--

            `(I) within a reasonable period of time (as determined by the Secretary) after the date of the transfer or change in the interest in land, the transferee of the land provides written notice to the Secretary that all duties and rights under the contract have been transferred to, and assumed by, the transferee; and

            `(II) the transferee meets the eligibility requirements of this subchapter.

      `(9) MODIFICATION-

        `(A) IN GENERAL- The Secretary may allow a producer to modify a contract before the expiration of the contract if the Secretary determines that failure to modify the contract would significantly interfere with achieving the purposes of the program.

        `(B) PARTICIPATION IN OTHER PROGRAMS- If appropriate payment reductions and other adjustments (as determined by the Secretary) are made to the contract of a producer, the producer may remove land enrolled in the conservation stewardship program for enrollment in the conservation reserve program, wetlands reserve program, or other conservation programs, as determined by the Secretary.

        `(C) CHANGES IN SIZE OF OPERATION- The Secretary shall allow a producer to modify a stewardship contract before the expiration of the stewardship contract if the agricultural operation of the producer has reduced or enlarged in size to reflect the new acreage total.

        `(D) NEW ACREAGE- With respect to acreage added to the agricultural operation of a producer after entering into a stewardship contract, a producer may elect to not add the acreage to the stewardship contract during the term of the current stewardship contract, except that such additional acreage shall be included in any contract renewal.

        `(E) CHANGES IN PRODUCTION- The Secretary shall allow a producer to modify a stewardship contract before the expiration of the stewardship contract if--

          `(i) the producer has a change in production that requires a change to scheduled conservation practices and activities; and

          `(ii) the Secretary determines that--

            `(I) all relevant conservation standards will be maintained or improved; and

            `(II) there is no increase in total payment under the stewardship contract.

      `(10) EFFECT OF NONCOMPLIANCE DUE TO CIRCUMSTANCES BEYOND THE CONTROL OF PRODUCER- The Secretary shall include in each contract a provision to ensure that a producer shall not be considered in violation of the contract for failure to comply with the contract due to circumstances beyond the control of the producer, including a disaster or related weather, pest, disease, or other similar condition, as determined by the Secretary.

      `(11) COORDINATION WITH ORGANIC CERTIFICATION-

        `(A) IN GENERAL- Not later than 180 days after the date of enactment of this chapter, the Secretary shall establish a transparent and producer-friendly means by which producers may coordinate and simultaneously certify eligibility under--

          `(i) a stewardship contract; and

          `(ii) the national organic production program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

        `(B) PROGRAMMATIC CONSIDERATIONS- The Secretary shall identify and implement programmatic considerations, including conservation systems, practices, activities, and management measures, technical assistance, evaluation of contract offers, enhancement payments, on-farm research, demonstration, training, and pilot projects, and data management, through which to maximize the purposes of the program by enrolling producers who are certified under the national organic production program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

      `(12) RENEWAL- At the end of a stewardship contract of a producer, the Secretary shall allow the producer to renew the stewardship contract for an additional 5-year period if the producer--

        `(A) demonstrates compliance with the terms of the existing contract, including a demonstration that the producer has complied with the schedule for the implementation of additional conservation systems, practices, activities, and management measures included in the stewardship contract and is addressing the designated resources of concern to a level that meets and exceeds the stewardship threshold; and

        `(B) agrees to implement and maintain such additional conservation practices and activities as the Secretary determines to be necessary and feasible to achieve higher levels of performance on applicable resource-specific indices or higher levels of management intensity with which the producer addresses the resources of concern.

    `(d) Enhancement Payments-

      `(1) LOWER PAYMENTS- In evaluating applications and making payments under this chapter, the Secretary shall not assign a higher priority to any application because the applicant is willing to accept a lower payment than the applicant would otherwise be entitled to receive.

      `(2) EVALUATION OF CONTRACT OFFERS- Nothing in this subsection relieves the Secretary of the obligation, in evaluating applications for payments, to evaluate and prioritize the applications in accordance with subsection (e)(4)), including the requirement for contracts to be cost-effective.

      `(3) LOWEST-COST ALTERNATIVES- In determining the eligibility of a conservation system, practice, activity, or management measure for a payment under this subsection, the Secretary shall require, to the maximum extent practicable, that the lowest-cost alternatives be used to achieve the purposes of the contract, as determined by the Secretary.

      `(4) METHOD OF PAYMENT- Payments under this subsection shall be made in such amounts and in accordance with such time schedule as is agreed on and specified in the contract.

      `(5) ACTIVITIES QUALIFYING FOR PAYMENTS-

        `(A) IN GENERAL- To receive an enhancement payment under this subsection, a producer shall agree--

          `(i) to implement additional conservation systems, practices, activities, and management measures and maintain, manage, and improve existing conservation systems, practices, activities, and management measures in order to maintain and improve the level of performance of the producer, as determined by applicable resource-specific indices, or the level of management intensity of the producer with respect to resources of concern in order to meet and exceed the stewardship threshold for resources of concern; and

          `(ii) to maintain, and make available to the Secretary at such times as the Secretary may request, appropriate records demonstrating the effective and timely implementation of the stewardship contract.

        `(B) COMPENSATION- Subject to subparagraph (C), the Secretary shall provide an enhancement payment to a producer to compensate the producer for--

          `(i) ongoing implementation, active management, and maintenance of conservation systems, practices, activities, and management measures in place on the operation of the producer at the time the contract offer of the producer is accepted; and

          `(ii) installation and adoption of additional conservation systems, practices, activities, and management measures or improvements to conservation systems, practices, activities, and management measures in place on the operation of the producer at the time the contract offer is accepted.

        `(C) ADJUSTMENTS- A payment under subparagraph (B) shall be adjusted to reflect--

          `(i) management intensity; or

          `(ii) resource-specific indices, in a case in which those indices have been developed and implemented.

        `(D) ON-FARM RESEARCH, DEMONSTRATION, TRAINING, AND PILOT PROJECT PAYMENTS- The Secretary shall provide an additional enhancement payment to a producer who opts to participate as part of the stewardship contract in an on-farm conservation research, demonstration, training or pilot project certified by the Secretary to compensate the producer for the cost of participation.

        `(E) RESTRICTION ON STRUCTURAL PRACTICES- For purposes of the conservation stewardship program, structural practices shall be eligible for payment only if the structural practices are integrated with and essential to support site-specific management activities that are part of an implemented management system designed to address 1 or more resources of concern.

      `(6) EXCLUSIONS- An enhancement payment to a producer under this subsection shall not be provided for the design, construction, or maintenance of animal waste storage or treatment facilities or associated waste transport or transfer devices for animal feeding operations.

      `(7) TIMING OF PAYMENTS-

        `(A) IN GENERAL- The Secretary shall make enhancement payments as soon as practicable after October 1 of each fiscal year.

        `(B) ADDITIONAL SYSTEMS, PRACTICES, ACTIVITIES, AND MANAGEMENT MEASURES- The Secretary shall make enhancement payments to compensate producers for installation and adoption of additional conservation systems, practices, activities, and management measures or improvements to existing conservation systems, practices, activities, and management measures at the time at which the systems, practices, activities, and measures or improvements are installed and adopted.

      `(8) RESEARCH, DEMONSTRATION, TRAINING, AND PILOT PROJECT PAYMENT LIMITATIONS- An enhancement payment for research, demonstration, training and pilot projects may not exceed $25,000 for each 5-year term of the stewardship contract (excluding funding arrangements with federally recognized Indian tribes or Alaska Native Corporations).

    `(e) CSP Supplemental Payments-

      `(1) IN GENERAL- The Secretary shall provide additional payments to producers that, in participating in the conservation stewardship program, agree to adopt resource-conserving crop rotations to achieve optimal crop rotations as appropriate for the land of the producers.

      `(2) OPTIMAL CROP ROTATIONS- The Secretary shall determine whether a resource-conserving crop rotation is an optimal crop rotation eligible for additional payments under paragraph (1), based on whether the resource-conserving crop rotation is designed to optimize natural resource conservation and production benefits, including--

        `(A) increased efficiencies in pesticide, fertilizer, and energy use; and

        `(B) improved disease management.

      `(3) ELIGIBILITY- To be eligible to receive a payment described in paragraph (1), a producer shall agree to adopt and maintain optimal resource-conserving crop rotations for the term of the contract.

      `(4) RATE- The Secretary shall provide payments under this subsection at a rate that encourages producers to adopt optimal resource-conserving crop rotations.

    `(f) Limitation on Payments- Subject to section 1244(i), an individual or entity may not receive, directly or indirectly, payments under this subchapter that, in the aggregate, exceed $240,000 for all contracts entered into under the conservation stewardship program during any 6-year period.

    `(g) Duties of Producers- In order to receive assistance under this chapter, a producer shall--

      `(1) implement the terms of the contract approved by the Secretary;

      `(2) not conduct any practices on the covered land that would defeat the purposes of the program;

      `(3) on the violation of a term or condition of the contract at any time the producer has control of the land--

        `(A) if the Secretary determines that the violation warrants termination of the contract--

          `(i) forfeit all rights to receive payments under the contract; and

          `(ii) refund to the Secretary all or a portion of the payments received by the owner or operator under the contract, including any interest on the payments or liquidated damages, as determined by the Secretary;

        `(B) if the Secretary determines that the violation does not warrant termination of the contract, refund to the Secretary, or accept adjustments to, the payments provided to the owner or operator, as the Secretary determines to be appropriate; or

        `(C) comply with a combination of the remedies authorized by subparagraphs (A) and (B), as the Secretary determines to be appropriate;

      `(4) on the transfer of the right and interest of the producer in land subject to the contract (unless the transferee of the right and interest agrees with the Secretary to assume all obligations of the contract) refund any cost-share payments, incentive payments, and stewardship payments received under the program, as determined by the Secretary;

      `(5) supply information as required by the Secretary to determine compliance with the contract and requirements of the program; and

      `(6) comply with such additional provisions as the Secretary determines are necessary to carry out the contract.

    `(h) Duties of Secretary-

      `(1) IN GENERAL- To achieve the conservation and environmental goals of a contract under this chapter, to the extent appropriate, the Secretary shall--

        `(A) provide to a producer information and training to aid in implementation of the conservation systems, practices, activities, and management measures covered by the contract;

        `(B) develop agreements with governmental agencies, nonprofit organizations, and private entities to facilitate the provision of technical and administrative assistance and services;

        `(C) make the program available to eligible producers on a continuous enrollment basis;

        `(D) when identifying biodiversity or fish and wildlife as a resource of concern for a particular watershed or other appropriate region or area within a State, ensure that the identification--

          `(i) is specific with respect to particular species or habitat; and

          `(ii) would further the goals and objectives of State, regional, and national fish and wildlife conservation plans and initiatives;

        `(E) provide technical assistance and payments for each of fiscal years 2008 through 2012;

        `(F) maintain contract and payment data relating to the conservation stewardship program in a manner that provides detailed and segmented data and allows for quantification of the amount of payments made to producers for--

          `(i) the installation and adoption of additional conservation systems, practices, activities, or management measures;

          `(ii) participating in research, demonstration, training, and pilot projects;

          `(iii) the development, monitoring, and evaluation of comprehensive conservation plans; and

          `(iv) the maintenance and active management of conservation systems, practices, activities, and management measures, and the improvement of conservation practices, in place on the operation of the producer on the date on which the contract offer is accepted by the Secretary;

        `(G) develop resource-specific indices for purposes of determining eligibility and payments; and

        `(H) establish and publicize design protocols and application procedures for individual producer and collaborative on-farm research, demonstration, training, and pilot projects.

      `(2) SPECIALTY CROP PRODUCERS- The Secretary shall ensure that outreach and technical assistance are available and program specifications are appropriate to enable specialty crop producers to participate in the conservation stewardship program.

      `(3) ADDITIONAL REQUIREMENTS- For the period beginning on the date of enactment of this chapter and ending on September 30, 2017, with respect to eligible land of producers participating in the program, the Secretary shall--

        `(A) to the maximum extent practicable, enroll an additional 13,273,000 acres for each fiscal year, but not to exceed 79,638,000 acres;

        `(B) implement the program nationwide to make the program available to producers meeting the eligibility requirements in each county;

        `(C) to the maximum extent practicable, manage the program to achieve a national average annual cost per acre of $19, which shall include the costs of all financial assistance, technical assistance, and any other expenses associated with enrollment or participation in the program of those acres; and

        `(D) establish a minimum contract value, to ensure equity for small acreage farms, including specialty crop and organic producers.

    `(i) Acre Allocation-

      `(1) INITIAL ALLOCATIONS TO STATES- In making allocations of acres to States to enroll in the conservation stewardship program, to the maximum extent practicable, the Secretary shall allocate to each State a number of acres equal to the proportion that--

        `(A) the number of acres of eligible land in the State; bears to

        `(B) the number of acres of eligible land in all States.

      `(2) MINIMUM ACRE ALLOCATION- Of the acres allocated for each fiscal year, no State shall have allocated fewer than the lesser of--

        `(A) 20,000 acres; or

        `(B) 2.2 percent of the number of acres of eligible land in the State.

      `(3) REALLOCATION TO STATES- For any fiscal year, acres not obligated under this subsection by a date determined by the Secretary through rulemaking shall be reallocated to each State that--

        `(A) has obligated 100 percent of the initial allocation of the State; and

        `(B) requests additional acres.

`SEC. 1240Y. REGULATIONS.

    `Not later than 180 days after the date of enactment of this chapter, the Secretary shall promulgate such regulations as are necessary to carry out the program, including regulations that--

      `(1) provide for adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing payments, on a fair and equitable basis;

      `(2) prescribe such other rules as the Secretary determines to be necessary to ensure a fair and reasonable application of the program; and

      `(3) to the maximum extent practicable, eliminate duplication of planning activities under the program and comparable conservation programs.'.

Subchapter B--Environmental Quality Incentives Program

SEC. 2351. PURPOSES.

    Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended--

      (1) in the matter preceding paragraph (1), by inserting `, forest management,' after `agricultural production';

      (2) in paragraph (3)--

        (A) by inserting `, forest land,' after `grazing land'; and

        (B) by inserting `pollinators,' after `wetland),'; and

      (3) in paragraph (4)--

        (A) by inserting `fuels management, forest management,' after `grazing management,'; and

        (B) by inserting `and forested' after `agricultural'.

SEC. 2352. DEFINITIONS.

    (a) Eligible Land- Section 1240A(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-1(2)) is amended--

      (1) in subparagraph (A), by striking `commodities or livestock' and inserting `commodities, livestock, or forest-related products'; and

      (2) in subparagraph (B)--

        (A) by striking clause (v) and inserting the following:

          `(v) nonindustrial private forest land;';

        (B) by redesignating clause (vi) as clause (vii); and

        (C) by inserting after clause (v) the following:

          `(vi) land used for pond-raised aquaculture production; and'.

    (b) Land Management Practice- Section 1240A(3) of the Food Security Act of 1985 (16 U.S.C. 3839aa-1(3)) is amended--

      (1) by striking `The term' and inserting the following:

        `(A) IN GENERAL- The term';

      (2) by inserting `fuels management, forest management,' after `grazing management'; and

      (3) by adding at the end the following:

        `(B) FOREST MANAGEMENT- For purposes of subparagraph (A), forest management practices may include activities that the Secretary determines are necessary--

          `(i) to improve water, soil, or air quality;

          `(ii) to restore forest biodiversity;

          `(iii) to control invasive species;

          `(iv) to improve wildlife habitat; or

          `(v) to achieve conservation priorities identified in an applicable forest resource assessment and plan.'.

    (c) Practice- Section 1240A(5) of the Food Security Act of 1985 (16 U.S.C. 3839aa-1(5)) is amended by inserting `conservation planning practices,' after `land management practices,'.

    (d) Custom Feeding Business- Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) is amended--

      (1) by redesignating paragraph (6) as paragraph (7); and

      (2) by inserting after paragraph (5) the following:

      `(6) PRODUCER- The term `producer' includes a custom feeding business and a contract grower or finisher.'.

    (e) Structural Practice- Paragraph (7)(A) of section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) (as redesignated by subsection (d)(1)) is amended by inserting `firebreak, fuelbreak,' after `constructed wetland,'.

SEC. 2353. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Establishment- Section 1240B(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)) is amended--

      (1) in paragraph (1), by striking `2010' and inserting `2012'; and

      (2) in paragraph (2)(B), by inserting `conservation plan or' after `develops a'.

    (b) Practices and Term- Section 1240B(b) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(b)) is amended--

      (1) in paragraph (1), by inserting `conservation planning practices,' after `land management practices,'; and

      (2) in paragraph (2)(B), by striking `10' and inserting `5'.

    (c) Establishment and Administration- Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) is amended--

      (1) by striking subsection (c);

      (2) in subsection (d)--

        (A) in paragraph (2), by striking subparagraph (A) and inserting the following:

        `(A) SOCIALLY DISADVANTAGED FARMERS OR RANCHERS AND BEGINNING FARMERS OR RANCHERS-

          `(i) IN GENERAL- In the case of a producer that is a socially disadvantaged farmer or rancher or a beginning farmer or rancher, the Secretary may increase the amount that would otherwise be provided to the producer under paragraph (1) to--

            `(I) not more than 90 percent; and

            `(II) not less than 15 percent above the otherwise applicable rate.

          `(ii) ADVANCE PAYMENTS- Not more than 30 percent of the amount determined under clause (i) may be provided in advance for the purpose of purchasing materials or contracting.';

        (B) by striking paragraph (3) and inserting the following:

      `(3) OTHER PAYMENTS- A producer shall not be eligible for cost-share payments for practices on eligible land under the program if the producer receives cost-share payments or other benefits for the same practice on the same land under another program.'; and

        (C) by adding at the end the following:

      `(4) GUARANTEED LOAN ELIGIBILITY- Notwithstanding section 333(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983(1)), with respect to the cost of a loan, a producer with an application that meets the standards for a cost-share payment under this subsection but that is not approved by the Secretary shall receive priority consideration for a guaranteed loan under section 304 of that Act (7 U.S.C. 1924).';

      (3) in subsection (e), by striking paragraph (2) and inserting the following:

      `(2) SPECIAL RULE- In determining the amount and rate of incentive payments, the Secretary may accord great significance to a practice that promotes residue, nutrient, air quality, pest, or predator deterrence, including practices to deter predator species protected under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), gray wolves, grizzly bears, and black bears.';

      (4) in subsection (g), by striking `2007' and inserting `2012';

      (5) by redesignating subsections (d) through (h) as subsections (c) through (g), respectively; and

      (6) by adding at the end the following:

    `(h) Water Conservation or Irrigation Efficiency Practice-

      `(1) IN GENERAL- The Secretary may provide technical assistance, cost-share payments, and incentive payments to a producer for a water conservation or irrigation practice.

      `(2) PRIORITY- In providing assistance and payments to producers for a water conservation or irrigation practice, the Secretary may give priority to applications in which--

        `(A) there is an improvement in surface flows or a reduction in the use of groundwater in the agricultural operation of the producer, consistent with the law of the State in which the operation of the producer is located; or

        `(B) the producer agrees not to use any associated water savings to bring new land, other than incidental land needed for efficient operations, under irrigated production, unless the producer is participating in a watershed-wide project that will effectively conserve water, as determined by the Secretary.

    `(i) Air Quality Improvement Practice-

      `(1) IN GENERAL- The Secretary shall provide technical and financial assistance to a producer to promote air quality improvements and address air quality concerns associated with agriculture.

      `(2) PRIORITY- In providing assistance for improvements in air quality, the Secretary shall give priority to applications that--

        `(A) are located in areas--

          `(i) that are nonattainment areas with respect to ambient air quality standards; or

          `(ii) in which there is air quality degradation recognized by a State or local agency or by the Secretary (in consultation with the State Technical Committee) to which agricultural emissions significantly contribute;

        `(B) are the most cost-effective in addressing air quality concerns; and

        `(C)(i) reduce emissions and air pollutant precursors from agricultural operations, including through making improvements in mobile or stationary equipment (including engines);

        `(ii) would assist producers in meeting Federal, State, or local regulatory requirements relating to air quality;

        `(iii) are part of a group of producers implementing eligible conservation activities in a coordinated manner to promote air quality; or

        `(iv) reflect innovative approaches and technologies.'.

    (d) Eligibility Requirement- Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) (as amended by subsection (c)) is amended by adding at the end the following:

    `(i) Eligibility Requirement- A producer shall not be eligible to receive any payment under this section unless the producer is a farmer or rancher that, as determined by the Secretary, derives or expects to derive at least $15,000 in gross sales from farming, ranching, or forestry operations (not including payments under the conservation reserve program established under subchapter B of chapter 1 of subtitle D), as determined by the Secretary.'.

SEC. 2354. EVALUATION OF OFFERS AND PAYMENTS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) is amended--

      (1) in paragraph (1), by striking `and' at the end;

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

      (3) by inserting after paragraph (1) the following:

      `(2) improve conservation practices or systems in place on the operation at the time the contract offer is accepted or to complete a conservation system; and'.

SEC. 2355. DUTIES OF PRODUCERS.

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

SEC. 2356. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa-5(a)) is amended--

      (1) in the matter preceding paragraph (1), by inserting `, or an entity described in section 1244(e) acting on behalf of producers,' after `producer';

      (2) in paragraph (2), by striking `and' after the semicolon at the end;

      (3) in paragraph (3), by striking the period at the end and inserting `; and'; and

      (4) by adding at the end the following:

      `(4) in the case of forest land, is consistent with a forest management plan that is approved by the Secretary, which may include--

        `(A) a forest stewardship plan described in section 5 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a);

        `(B) another practice plan approved by the State forester; or

        `(C) another plan determined appropriate by the Secretary.'.

SEC. 2357. LIMITATION ON PAYMENTS.

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

      (1) by striking `An individual' and inserting `(a) In General- Subject to section 1244(i), an individual'; and

      (2) by adding at the end the following:

    `(b) Producer Organizations- In the case of an entity described in section 1244(e), the limitation established under this section shall apply to each participating producer and not to the entity described in section 1244(e).'.

SEC. 2358. CONSERVATION INNOVATION GRANTS.

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

      (1) by striking subsection (a) and inserting the following:

    `(a) In General- The Secretary may pay the cost of competitive grants that leverage Federal investment in environmental enhancement and protection through the program by--

      `(1) stimulating the development of innovative technologies; and

      `(2) transferring those technologies to agricultural and nonindustrial private forest land in production.'; and

      (2) in subsection (b), by striking paragraph (2) and inserting the following:

      `(2)(A) implement innovative conservation technologies, such as market systems for pollution reduction and practices for the storing of carbon in the soil;

      `(B) provide a mechanism for transferring those technologies to agricultural and nonindustrial private forest land in production; and

      `(C) increase environmental and resource conservation benefits through specialty crop production; and'.

SEC. 2359. GROUND AND SURFACE WATER CONSERVATION.

    Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9) is amended by striking subsection (c) and inserting the following:

    `(c) Funding-

      `(1) AVAILABILITY OF FUNDS- Of the funds of the Commodity Credit Corporation, in addition to amounts made available under section 1241(a) to carry out this chapter, the Secretary shall use--

        `(A) $65,000,000 for each of fiscal years 2008 through 2012; and

        `(B) $60,000,000 for each fiscal year thereafter.

      `(2) FUNDING FOR CERTAIN STATES- Of the funds made available under paragraph (1), the Secretary shall--

        `(A) provide to each State that received funds under this title during the period of fiscal years 2002 through 2007, the greater of--

          `(i) the simple average of amounts allocated to producers in the State under this section for the period of fiscal years 2002 through 2007; or

          `(ii) the amount allocated to producers in the State under this section in fiscal year 2007; and

        `(B) in the case of each State the boundaries of which encompass a multistate aquifer from which documented groundwater withdrawals exceed 16,000,000,000 gallons per day, provide an amount not less than the greater of--

          `(i) $3,000,000; or

          `(ii) the amount provided under subparagraph (A).

      `(3) EASTERN SNAKE PLAIN AQUIFER PILOT-

        `(A) IN GENERAL- Of the funds made available under paragraph (1), the Secretary shall reserve not less than $2,000,000, to remain available until expended, for regional water conservation activities in the Eastern Snake Aquifer region.

        `(B) APPROVAL- The Secretary may approve regional water conservation activities under this paragraph that address, in whole or in part, water quality issues.'.

SEC. 2360. ORGANIC CONVERSION.

    The Food Security Act of 1985 is amended by inserting after section 1240I (16 U.S.C. 3839aa-9) the following:

`SEC. 1240J. ORGANIC CONVERSION.

    `(a) Definitions- In this section:

      `(1) NATIONAL ORGANIC PROGRAM- The term `national organic program' means the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.).

      `(2) ORGANIC SYSTEM PLAN- The term `organic system plan' means an organic plan approved under the national organic program.

    `(b) Establishment- Under the environmental quality incentives program established under this chapter, not later than 180 days after the date of enactment of this section, the Secretary shall establish a program under which the Secretary shall provide cost-share and incentive payments to producers to promote conservation practices and activities for production systems undergoing conversion on some or all of the operations of the producer to organic production in accordance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

    `(c) Organic Conversion Cost-Share and Incentive Payments- The Secretary shall provide organic conversion cost-share and incentive payments to producers that--

      `(1) are converting to organic production systems, including producers with existing certified organic production for conversion to organic production of land and livestock not previously certified organic; and

      `(2) enter into contracts with the Secretary for eligible practices and activities described in subsection (d).

    `(d) Eligible Practices and Activities- Producers may use funds made available under subsection (c) for--

      `(1) practices and activities during conversion to certified organic production that--

        `(A) are required by, or consistent with, an approved organic system plan; and

        `(B) protect resources of concern, as identified by the Secretary;

      `(2) technical services, including the costs of developing an approved organic system plan; and

      `(3) such other measures as the Secretary determines to be appropriate and consistent with an approved organic system plan.

    `(e) Eligible Producers- To be eligible to receive cost-share and incentive payments under this section, a producer shall agree--

      `(1) to develop and carry out conservation and environmental activities that--

        `(A) are required by, or consistent with, an approved organic system plan; and

        `(B) protect resources of concern, as identified by the Secretary;

      `(2) to receive technical and educational assistance from the Secretary or from an organization, institute, or consultant with a cooperative agreement with the Secretary relating to--

        `(A) the development of an organic system plan and the implementation of conservation practices and activities that are part of an organic system plan; or

        `(B) other aspects of an organic system plan, including marketing, credit, business, and risk management plans; and

      `(3) to submit annual verification by a certifying entity accredited by the Secretary to determine the compliance of the producer with organic certification requirements.

    `(f) Term- Notwithstanding section 1240B(b)(2)(A), a contract under this section shall have a term of--

      `(1) not less than 3 years; and

      `(2) not more than 4 years.

    `(g) Limitations on Payments- As part of the payment limitation described in section 1240G, an individual or entity may not receive, directly or indirectly, cost-share or incentive payments under this section--

      `(1) for a period of more than 4 years; or

      `(2) that, in the aggregate and exclusive of technical assistance, exceed--

        `(A) $20,000 per year; or

        `(B) a total amount of $80,000.

    `(h) Termination of Contracts- The Secretary may cancel or otherwise nullify a contract entered into under this section if the Secretary determines the producers are not pursuing organic certification.'.

SEC. 2361. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

    The Food Security Act of 1985 is amended by inserting after section 1240J (as added by section 2360) the following:

`SEC. 1240K. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

    `(a) Definition of Chesapeake Bay Watershed- In this section, the term `Chesapeake Bay watershed' includes all tributaries, backwaters, and side channels (including watersheds) draining into the Chesapeake Bay.

    `(b) Establishment- The Secretary shall use the authorities granted under the environmental quality incentives program established under this chapter to address natural resource concerns relating to agricultural and nonindustrial private forest land in the Chesapeake Bay watershed.

    `(c) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall use $165,000,000 to carry out this section for the period of fiscal years 2008 through 2012.'.

CHAPTER 3--FARMLAND PROTECTION

Subchapter A--Farmland Protection Program

SEC. 2371. FARMLAND PROTECTION PROGRAM.

    (a) Definitions- Section 1238H of the Food Security Act of 1985 (16 U.S.C. 3838h) is amended--

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

      `(1) ELIGIBLE ENTITY- The term `eligible entity' means--

        `(A) any agency of any State or local government or an Indian tribe (including a farmland protection board or land resource council established under State law); or

        `(B) any organization that--

          `(i) is organized for, and at all times since the formation of the organization has been operated principally for, 1 or more of the conservation purposes specified in clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;

          `(ii) is an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code; and

          `(iii) is--

            `(I) described in paragraph (1) or (2) of section 509(a) of that Code; or

            `(II) described in section 509(a)(3), and is controlled by an organization described in section 509(a)(2), of that Code.'; and

      (2) in paragraph (2)--

        (A) in subparagraph (A), by striking clauses (i) and (ii) and inserting the following:

          `(i) has prime, unique, or other productive soil;

          `(ii) contains historical or archaeological resources; or

          `(iii) furthers a State or local policy consistent with the purposes of the program.'; and

        (B) in subparagraph (B)--

          (i) in clause (iv), by striking `and' at the end;

          (ii) by striking clause (v) and inserting the following:

          `(v) forest land that--

            `(I) contributes to the economic viability of an agricultural operation; or

            `(II) serves as a buffer to protect an agricultural operation from development; and

          `(vi) land that is incidental to land described in clauses (i) through (v), if the incidental land is determined by the Secretary to be necessary for the efficient administration of a conservation easement.'.

    (b) Farmland Protection- Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is amended--

      (1) in subsection (a), by striking `purchase conservation easements' and all the follows through the end of the subsection and inserting `enter into cooperative agreements with eligible entities for the eligible entities to purchase permanent conservation easements or other interests in eligible land for the purpose of protecting the agricultural use and related conservation values of the land by limiting incompatible nonagricultural uses of the land.';

      (2) by redesignating subsections (b) and (c) as subsections (e) and (f), respectively;

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

    `(b) Terms and Conditions for Cooperative Agreements-

      `(1) IN GENERAL- The Secretary shall establish the terms and conditions of any cooperative agreement entered into under this subchapter under which the eligible entity shall use funds provided by the Secretary.

      `(2) MINIMUM REQUIREMENTS- A cooperative agreement shall, at a minimum--

        `(A) specify the qualifications of the eligible entity to carry out the responsibilities of the eligible entity under the program, including acquisition and management policies and procedures that ensure the long-term integrity of the conservation easement protections;

        `(B) subject to subparagraph (C), identify a specific project or a range of projects funded under the agreement;

        `(C) allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at the time of substitution;

        `(D) specify the manner in which the eligible entity will evaluate and report the use of funds to the Secretary;

        `(E) allow the eligible entity flexibility to use the terms and conditions of the eligible entity for conservation easements and other purchases of interests in land, except that--

          `(i) subject to clause (ii), each easement shall include a limitation on the total quantity of impervious surface of not more than--

            `(I) 20 percent of the first 10 acres;

            `(II) 5 percent of the next 90 acres; and

            `(III) 1 percent of any additional acres; and

          `(ii) the Secretary may waive a limitation under clause (i) after a determination by the Secretary that the eligible entity has in place a requirement that provides substantially-similar protection consistent with agricultural activities regarding the impervious surfaces to be allowed for any conservation easement or other interest in land purchases using funds provided under the program;

        `(F) require appraisals of acquired interests in eligible land that comply with, at the option of the eligible entity--

          `(i) the Uniform Standards of Professional Appraisal Practice; or

          `(ii) any other industry-approved standard, as determined by the Secretary; and

        `(G) allow as part of the share of the eligible entity of the cost to purchase a conservation easement or other interest in eligible land described in subsection (a), that an eligible entity may include a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986), from the private landowner from which the conservation easement will be purchased.

    `(c) Cost Sharing-

      `(1) IN GENERAL- Subject to paragraphs (2) and (3), the Secretary may provide a share of the purchase price of a conservation easement or other interest in land acquired by an eligible entity under the program.

      `(2) MAXIMUM AMOUNT OF FAIR MARKET VALUE- The Secretary shall not pay more than 50 percent of the appraised fair market value of the acquisition under this subsection.

      `(3) MINIMUM SHARE BY ELIGIBLE ENTITY- The eligible entity shall be required to provide a share of the cost under this subsection in an amount that is not less than the lesser of--

        `(A) 1/2 of the purchase price of the acquisition;

        `(B) if the landowner has made a donation of 25 percent or less of the appraised fair market value of the acquisition, an amount that, when combined with the donation, equals the amount of the payment by the Secretary; or

        `(C) if the landowner has made a donation of more than 25 percent of the appraised fair market value of the acquisition, 1/3 of the purchase price of the acquisition.

    `(d) Protection of Federal Investment-

      `(1) IN GENERAL- The Secretary shall ensure that the terms of an easement acquired by the eligible entity provides protection for the Federal investment through an executory limitation by the Federal Government.

      `(2) RELATIONSHIP TO FEDERAL ACQUISITION OF REAL PROPERTY- The inclusion of a Federal executory limitation described in paragraph (1) shall--

        `(A) not be considered the Federal acquisition of real property; and

        `(B) not trigger any Federal appraisal or other real property requirements, including the Federal standards and procedures for land acquisition.'; and

      (4) in subsection (f) (as redesignated by paragraph (2)), by striking `Cost Sharing- ' and all that follows through `BIDDING DOWN- ' and inserting `Bidding Down- '.

Subchapter B--Grassland Reserve Program

SEC. 2381. GRASSLAND RESERVE PROGRAM.

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

`Subchapter C--Grassland Reserve Program

`SEC. 1238N. DEFINITIONS.

    `In this subchapter:

      `(1) ELIGIBLE ENTITY- The term `eligible entity' means--

        `(A) any agency of any State or local government or an Indian tribe (including a farmland protection board or land resource council established under State law); or

        `(B) any organization that--

          `(i) is organized for, and at all times since the formation of the organization has been operated principally for, 1 or more of the conservation purposes specified in clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;

          `(ii) is an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code; and

          `(iii) is--

            `(I) described in paragraph (1) or (2) of section 509(a) of that Code; or

            `(II) described in section 509(a)(3), and is controlled by an organization described in section 509(a)(2), of that Code.

      `(2) ELIGIBLE LAND- The term `eligible land' means private land that--

        `(A) is grassland, rangeland, land that contains forbs, or shrub land (including improved rangeland and pastureland) for which grazing is the predominant use;

        `(B) is located in an area that has been historically dominated by grassland, forbs, or shrub land, and the land potentially could provide habitat for animal or plant populations of significant ecological value if the land--

          `(i) is retained in the current use of the land;

          `(ii) is restored to a natural condition;

          `(iii) contains historical or archeological resources;

          `(iv) would further the goals and objectives of State, regional, and national fish, and wildlife conservation plans and initiatives; or

          `(v) is incidental to land described in clauses (i) through (iv), if the incidental land is determined by the Secretary to be necessary for the efficient administration of an agreement or conservation easement.

      `(3) PERMANENT CONSERVATION EASEMENT- The term `permanent conservation easement' means a conservation easement that is--

        `(A) a permanent easement; or

        `(B) in a State that imposes a maximum duration for easements, an easement for the maximum duration allowed under State law.

`SEC. 1238O. GRASSLAND RESERVE PROGRAM.

    `(a) Establishment- The Secretary shall establish and carry out a grassland reserve program through which the Secretary shall provide payments and technical assistance to landowners to assist in restoring and conserving eligible land described in section 1238N(2).

    `(b) Enrollment of Land-

      `(1) IN GENERAL- The Secretary may enroll eligible land in the program through--

        `(A) an easement or contract described in paragraph (2); or

        `(B) a cooperative agreement with an eligible entity.

      `(2) OPTIONS- Eligible land enrolled in the program shall be subject to--

        `(A) a 30-year contract;

        `(B) a 30-year conservation easement; or

        `(C) a permanent conservation easement.

      `(3) ENROLLMENT OF CONSERVATION RESERVE ACREAGE-

        `(A) IN GENERAL- Eligible land enrolled in the conservation reserve program established under subchapter B of chapter 1 may be enrolled into permanent conservation easements under this subchapter if--

          `(i) the Secretary determines that the eligible land--

            `(I) is of high ecological value; and

            `(II) would be under significant threat of conversion to other uses if the conservation reserve program contract were terminated; and

          `(ii) the landowner agrees to the enrollment.

        `(B) MAXIMUM ENROLLMENT- The number of acres of conservation reserve program land enrolled under this paragraph in a calendar year shall not exceed the number of acres that could be funded by 10 percent of the total amount of funds available for this section for a fiscal year.

        `(C) PROHIBITION ON DUPLICATE PAYMENTS- Eligible land enrolled in the program shall no longer be eligible for payments under the conservation reserve program.

    `(c) Restoration Agreements- The Secretary may enter into a restoration agreement with a landowner, as determined appropriate by the Secretary.

    `(d) Conservation Easement Title- The title holder of a conservation easement obtained under this subchapter may be--

      `(1) the Secretary; or

      `(2) an eligible entity.

`SEC. 1238P. DUTIES.

    `(a) Duties of Landowners-

      `(1) IN GENERAL- To become eligible to enroll eligible land through the grant of a conservation easement, the landowner shall--

        `(A) create and record an appropriate deed restriction in accordance with applicable State law;

        `(B) provide proof of clear title to the underlying fee interest in the eligible land that is subject of the conservation easement;

        `(C) provide a written statement of consent to the easement signed by persons holding a security interest or any vested interest in the land;

        `(D) grant the conservation easement to the Secretary or an eligible entity; and

        `(E) comply with the terms of the conservation easement and any associated restoration agreement.

      `(2) RESTORATION AGREEMENT- If a restoration agreement is required by the Secretary, the landowner shall develop and implement a restoration plan.

    `(b) Duties of Secretary-

      `(1) EVALUATION OF OFFERS-

        `(A) IN GENERAL- The Secretary shall establish criteria to evaluate and rank applications for easements and contracts under this subchapter.

        `(B) CONSIDERATIONS- In establishing the criteria, the Secretary shall emphasize support for--

          `(i) grazing operations;

          `(ii) plant and animal biodiversity;

          `(iii) grassland, land that contains forbs, and shrubland under the greatest threat of conversion; and

          `(iv) other considerations, as determined by the Secretary.

        `(C) PRIORITY- In evaluating offers under this subchapter, the Secretary may give priority to applications that--

          `(i) include a cash contribution from the eligible entity submitting the application; or

          `(ii) leverage resources from other sources.

      `(2) COMPENSATION-

        `(A) IN GENERAL-

          `(i) EASEMENTS AND CONTRACTS- In return for the granting of an easement, the Secretary shall provide to the landowner an amount that is equal to--

            `(I) in the case of a permanent easement, the fair market value of the land less the grazing value of the land encumbered by the easement; and

            `(II) in the case of a 30-year easement or 30-year contract, 30 percent of the fair market value of the land less the grazing value of the land for the period during which the land is encumbered by the easement.

          `(ii) RESTORATION AGREEMENTS- In making cost-share payments for restoration agreements, the Secretary shall make payments to the landowner--

            `(I) in the case of a permanent easement, in an amount that is not less than 90, but not more than 100, percent of the eligible costs; and

            `(II) in the case of a 30-year easement or 30-year contract, in an amount that is not less than 50, but not more than 75, percent of the eligible costs.

        `(B) DELIVERY OF PAYMENTS-

          `(i) PAYMENT SCHEDULE- Except as otherwise provided in this subchapter, payments may be provided pursuant to an easement, contract, or other agreement, in not more than 30 annual payments, and in an equal or unequal amounts, as agreed to by the Secretary and the landowner.

          `(ii) PAYMENTS TO OTHERS- If an owner that 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 after considering all the circumstances.

      `(3) TECHNICAL ASSISTANCE- If a restoration agreement is required by the Secretary, the Secretary shall provide technical assistance to comply with the terms and conditions of the restoration agreement.

`SEC. 1238Q. TERMS AND CONDITIONS.

    `(a) Terms and Conditions of Easement or Contracts- An easement or contract under this subchapter shall--

      `(1) permit--

        `(A) common grazing practices, including maintenance and necessary cultural practices, on the land in a manner that is consistent with maintaining the viability of grassland, forb, and shrub species appropriate to that locality;

        `(B) haying, mowing, or harvesting for seed production, subject to appropriate restrictions during the nesting season for birds in the local area that are in significant decline or are conserved in accordance with Federal or State law, as determined by the State Conservationist; and

        `(C) fire presuppression, rehabilitation, and construction of fire breaks and fences (including placement of the posts necessary for fences);

      `(2) prohibit--

        `(A) the production of crops (other than hay), fruit trees, vineyards, or any other agricultural commodity that is inconsistent with maintaining grazing land; and

        `(B) except as permitted under a restoration plan, the conduct of any other activity that would be inconsistent with maintaining grazing land covered by the easement or agreement; and

      `(3) include such additional provisions as the Secretary determines are appropriate to carry out or facilitate the administration of this subchapter.

    `(b) Terms and Conditions of Cooperative Agreements-

      `(1) IN GENERAL- The Secretary shall establish the terms and conditions of any cooperative agreement entered into under this subchapter under which the eligible entity shall use funds provided by the Secretary.

      `(2) MINIMUM REQUIREMENTS- A cooperative agreement shall, at a minimum--

        `(A) specify the qualification of the eligible entity to carry out the responsibilities of the eligible entity under the program, including acquisition, monitoring, enforcement, and management policies and procedures that ensure the long-term integrity of the conservation easement protections;

        `(B) subject to subparagraph (C), identify a specific project or a range of projects funded under the agreement;

        `(C) allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at the time of substitution;

        `(D) specify the manner in which the eligible entity will evaluate and report the use of funds to the Secretary;

        `(E) allow the eligible entity flexibility to develop and use terms and conditions for conservation easements and other purchases of interest in eligible land, if the Secretary finds the terms and conditions consistent with the purposes of the program and adequate to achieve and permit effective enforcement of the conservation purposes of the conservation easements or other interests;

        `(F) require appraisals of acquired interests in eligible land that comply with a method approved by industry;

        `(G) if applicable, allow as part of the share of the eligible entity of the cost to purchase a conservation easement or other interest in eligible land described in section 1238O(b), that an eligible entity may include a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986), from the private landowner for which the conservation easement will be purchased; and

        `(H) provide for a schedule of payments to an eligible entity, as agreed to by the Secretary and the eligible entity, over a term of not to exceed 30 years.

      `(3) PROTECTION OF FEDERAL INVESTMENT-

        `(A) IN GENERAL- The Secretary shall ensure that the terms of an easement acquired by the eligible entity provides protection for the Federal investment through an executory limitation by the Federal government.

        `(B) RELATIONSHIP TO FEDERAL ACQUISITION OF REAL PROPERTY- The inclusion of an executory limitation described in subparagraph (A) shall--

          `(i) not be considered the Federal acquisition of real property; and

          `(ii) not trigger any Federal appraisal or other real property requirements, including the Federal standards and procedures for land acquisition.

        `(C) TERMS OF RESTORATION AGREEMENT- A restoration agreement shall contain--

          `(i) a statement of the conservation measures and practices that will be undertaken in regard to the eligible land subject to the conservation easement;

          `(ii) restrictions on the use of the eligible land subject to the conservation easement; and

          `(iii) a statement of the respective duties of the Secretary, landowner, and eligible entity, as appropriate.

    `(c) Violation- If a violation occurs of the terms or conditions of a conservation easement, contract, cooperative agreement or restoration agreement entered into under this section--

      `(1) the conservation easement, contract, cooperative agreement, or restoration agreement shall remain in force; and

      `(2) the Secretary may require the owner or entity 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.'.

CHAPTER 4--OTHER CONSERVATION PROGRAMS

SEC. 2391. CONSERVATION SECURITY PROGRAM.

    Subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 is amended by adding after section 1238C (16 U.S.C. 3838c) the following:

`SEC. 1238D. PERIOD OF EFFECTIVENESS.

    `(a) In General- This subchapter, and the terms and conditions of the conservation security program, shall continue to apply to conservation security contracts entered into as of the date before the date of enactment of this section.

    `(b) Payments- The Secretary shall make payments under this subchapter with respect to conservation security contracts described in subsection (a) during the term of the contracts.

    `(c) Prohibition on New Contracts- A conservation security contract may not be entered into or renewed under this subchapter as of the date of enactment of this section.

    `(d) Limitation- A contract described in subsection (a) may not be administered under the regulations issued under section 1240Y.'.

SEC. 2392. CONSERVATION OF PRIVATE GRAZING LAND.

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

SEC. 2393. REAUTHORIZATION OF WILDLIFE HABITAT INCENTIVE PROGRAM.

    Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb-1) is amended--

      (1) in subsection (b)--

        (A) in the subsection heading, by striking `Cost-Share';

        (B) in paragraph (1), by inserting `and incentive' after `cost-share'; and

        (C) in paragraph (2)(B), by striking `15 percent' and inserting `25 percent'; and

      (2) by adding at the end the following:

    `(d) Fish and Wildlife Conservation Plans and Initiatives- In carrying out this section, the Secretary shall give priority to projects that would further the goals and objectives of State, regional, and national fish and wildlife conservation plans and initiatives.

    `(e) Duration of Program- Using funds made available under section 1241(a)(7), the Secretary shall carry out the program during each of fiscal years 2008 through 2012.'.

SEC. 2394. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    Section 1240O of the Food Security Act of 1985 (16 U.S.C. 3839bb-2) is amended by striking subsection (b) and inserting the following:

    `(b) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2008 through 2012.'.

SEC. 2395. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT CONTROL.

    Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb-3) is amended to read as follows:

`SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT CONTROL.

    `(a) In General- The Secretary, in consultation with the Great Lakes Commission created by Article IV of the Great Lakes Basin Compact (82 Stat. 415) and in cooperation with the Administrator of the Environmental Protection Agency and the Secretary of the Army, may carry out the Great Lakes basin program for soil erosion and sediment control (referred to in this section as the `program') to assist in implementing the recommendations of the Great Lakes Regional Collaboration Strategy to Restore and Protect the Great Lakes.

    `(b) Assistance- In carrying out the program, the Secretary may--

      `(1) provide project demonstration grants, provide technical assistance, and carry out information and educational programs to improve water quality in the Great Lakes basin by reducing soil erosion and improving sediment control; and

      `(2) establish a priority for projects and activities that--

        `(A) directly reduce soil erosion or improve sediment control;

        `(B) reduce soil loss in degraded rural watersheds; or

        `(C) improve hydrological conditions in urban watersheds.

    `(c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2012.'.

SEC. 2396. FARM VIABILITY PROGRAM.

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

SEC. 2397. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the following:

`SEC. 1240Q. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

    `(a) Establishment- The Secretary shall establish and carry out a demonstration program in not less than 30 small watersheds in States of the Upper Mississippi River basin to identify and promote the most cost-effective and efficient approaches to reducing the loss of nutrients to surface waters.

    `(b) Purpose- The demonstration program shall demonstrate in small watersheds performance-based and market-based approaches--

      `(1) to reduce the loss of nutrients to surface waters from agricultural land; and

      `(2) to monitor the cost-effectiveness of management practices designed to reduce the loss of nutrients to surface waters from agricultural land.

    `(c) Partnerships- In carrying out this section, the Secretary may establish or identify, as appropriate, partnerships to select the watersheds and to encourage cooperative effort among the Secretary and State, local, and nongovernmental organizations.

    `(d) Selection of Small Watersheds- In selecting small watersheds for participation in the program, the Secretary shall consider the extent to which--

      `(1) reducing nutrient losses to surface water in the small watershed would be likely to result in measurable improvements in water quality in the small watershed;

      `(2) a demonstration project would use innovative approaches to attract a high level of producer participation in the small watershed to ensure success;

      `(3) a demonstration project could be implemented through a third party, including a producer organization, farmer cooperative, conservation district, water utility, agency of State or local government, conservation organization, or other organization with appropriate expertise;

      `(4) a demonstration project would leverage funding from State, local, and private sources;

      `(5) a demonstration project would demonstrate market-based approaches to nutrient losses to surface waters;

      `(6) baseline data related to water quality and agricultural practices and contributions from nonagricultural sources as relevant in the small watershed has been collected or could be readily collected; and

      `(7) water quality monitoring infrastructure is in place or could reasonably be put in place in the small watershed.

    `(e) Use of Funds-

      `(1) IN GENERAL- Funding provided for the program under subsection (f) shall be used in not less than 30 small watersheds--

        `(A) to provide technical assistance;

        `(B) to provide and assess financial incentives to agricultural producers implementing conservation practices that reduce nutrient losses to surface waters;

        `(C) to monitor the performance and costs of alternative nutrient management techniques, including soil tests, stalk tests, cover crops, soil amendments, buffers, and tillage practices; and

        `(D) to share the cost of data collection, monitoring, and analysis.

      `(2) PROHIBITION- None of the funds made available to carry out the program for each fiscal year may be used for administrative expenses.

    `(f) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.'.

SEC. 2398. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

    (a) In General- Chapter 5 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section 2386) is amended by adding at the end the following:

`SEC. 1240R. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

    `(a) Definition of Eligible Recipient- In this section, the term `eligible recipient' means--

      `(1) an organization that is eligible for technical assistance and cost-share payments under this section and assists working agricultural land and nonindustrial private forest land, including--

        `(A) a community-based association; and

        `(B) a city, county, or regional government, including a watershed council and a conservation district; and

      `(2) an individual who is eligible for technical assistance and cost-share payments under this section, including--

        `(A) a producer;

        `(B) a rancher;

        `(C) an operator;

        `(D) a nonindustrial private forest landowner; and

        `(E) a landlord on working agricultural land.

    `(b) Purpose- The purpose of the emergency landscape restoration program is to rehabilitate watersheds, nonindustrial private forest land, and working agricultural land adversely affected by natural catastrophic events, by--

      `(1) providing a source of assistance for restoration of the land back to a productive state;

      `(2) preventing further impairment of land and water, including prevention through the purchase of floodplain easements; and

      `(3) providing further protection of natural resources.

    `(c) Establishment- The Secretary, acting through the Natural Resources Conservation Service, shall carry out an emergency landscape restoration program under which technical assistance and cost-share payments are made available to eligible recipients to carry out remedial activities to restore landscapes damaged by--

      `(1) fire;

      `(2) drought;

      `(3) flood;

      `(4) hurricane force or excessive winds;

      `(5) ice storms or blizzards; or

      `(6) other resource-impacting natural events, as determined by the Secretary.

    `(d) Prioritization- The Secretary shall provide the highest priority for those activities that protect human health and safety.

    `(e) Technical Assistance and Cost-Share Payments-

      `(1) IN GENERAL- The Secretary shall provide technical assistance and cost-share payments in amounts of up to 75 percent of the cost of remedial activities described in paragraph (2) to rehabilitate watersheds, nonindustrial private forest land, and working agricultural land.

      `(2) REMEDIAL ACTIVITIES- Remedial activities that are eligible for technical assistance and cost-share payments under this section include--

        `(A) removal of debris from streams, agricultural land, and nonindustrial forest land, including--

          `(i) the restoration of natural hydrology; and

          `(ii) the removal of barriers for aquatic species;;

        `(B) restoration of destabilized streambanks;

        `(C) establishment of cover on critically eroding land;

        `(D) restoration of fences;

        `(E) construction of conservation structures;

        `(F) provision of water for livestock in drought situations;

        `(G) rehabilitation of farm or ranch land;

        `(H) restoration of damaged nonindustrial private forest land, including--

          `(i) the removal of damaged standing trees and downed timber; and

          `(ii) site preparation, tree planting, direct seeding, and firebreaks;

        `(I) the carrying out of emergency water conservation measures;

        `(J) restoration of wildlife habitat and corridors;

        `(K) livestock carcass removal and disposal; and

        `(L) such other remedial activities as are determined by the Secretary.

    `(f) Authorization of Appropriations- There are authorized to be appropriated to the Secretary to carry out this section such sums as are necessary for each of fiscal years 2008 through 2012, to remain available until expended.

    `(g) Temporary Administration of Emergency Landscape Restoration Program-

      `(1) IN GENERAL- During the period beginning on the date of enactment of this section and ending on the termination date described in paragraph (2), to ensure that technical assistance, cost-share payments, and other payments continue to be administered in an orderly manner until the date on which final regulations are promulgated to implement the emergency landscape restoration program, the Secretary shall, to the extent the terms and conditions of the programs described in clauses (i) and (ii) of subparagraph (A) are consistent with the emergency landscape restoration program, continue to--

        `(A) provide technical assistance, cost-share payments, and other payments under the terms and conditions of--

          `(i) the emergency conservation program established under title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.); and

          `(ii) the emergency watershed protection program established under section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203); and

        `(B) use for those purposes--

          `(i) any funds made available under those programs; and

          `(ii) as the Secretary determines to be necessary, any funds made available to carry out the emergency landscape restoration program.

      `(2) TERMINATION OF AUTHORITY- The authority of the Secretary to carry out paragraph (1) shall terminate on the effective date of final regulations to implement the emergency landscape restoration program.'.

    (b) Conforming Amendments-

      (1) Effective on the effective date of final regulations to implement the emergency landscape restoration program under section 1240R of the Food Security Act of 1985 (as added by subsection (a)), title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.) is repealed.

      (2) Section 1211(a)(3)(C) of the Food Security Act of 1985 (16 U.S.C. 3811(a)(3)(C)) is amended by inserting `section 1240R or' after `a payment under'.

      (3) Section 1221(b)(3)(C) of the Food Security Act of 1985 (16 U.S.C. 3821(b)(3)(C)) is amended by inserting `section 1240R or' after `A payment under'.

SEC. 2399. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section 2387(a)) is amended by adding at the end the following:

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

    `(a) In General- The Secretary shall establish a voluntary public access program under which States and tribal governments may apply for grants to encourage owners and operators of privately-held farm, ranch, and forest land to voluntarily make that land available for access by the public for wildlife-dependent recreation, including hunting or fishing under programs administered by the States and tribal governments.

    `(b) Applications- In submitting applications for a grant under the program, a State or tribal government shall describe--

      `(1) the benefits that the State or tribal government intends to achieve by encouraging public access to private farm and ranch land for--

        `(A) hunting and fishing; and

        `(B) to the maximum extent practicable, other recreational purposes; and

      `(2) the methods that will be used to achieve those benefits.

    `(c) Priority- In approving applications and awarding grants under the program, the Secretary shall give priority to States and tribal governments that propose--

      `(1) to maximize participation by offering a program the terms of which are likely to meet with widespread acceptance among landowners;

      `(2) to ensure that land enrolled under the State or tribal government program has appropriate wildlife habitat;

      `(3) to strengthen wildlife habitat improvement efforts on land enrolled in a special conservation reserve enhancement program described in section 1234(f)(3) by providing incentives to increase public hunting and other recreational access on that land;

      `(4) to use additional Federal, State, tribal government, or private resources in carrying out the program; and

      `(5) to make available to the public the location of land enrolled.

    `(d) Relationship to Other Laws- Nothing in this section preempts a State or tribal government law (including any State or tribal government liability law).

    `(e) Regulations- The Secretary shall promulgate such regulations as are necessary to carry out this section.'.

Subtitle E--Funding and Administration

SEC. 2401. FUNDING AND ADMINISTRATION.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended--

      (1) in the matter preceding paragraph (1), by striking `2007' and inserting `2012'; and

      (2) by striking paragraphs (3) through (7) and inserting the following:

      `(3) The conservation security program under subchapter A of chapter 2, using $2,317,000,000 to administer contracts entered into as of the day before the date of enactment of the Food and Energy Security Act of 2007, to remain available until expended.

      `(4) The conservation stewardship program under subchapter B of chapter 6.

      `(5) The farmland protection program under subchapter B of chapter 2, using, to the maximum extent practicable, $97,000,000 for each of fiscal years 2008 through 2012.

      `(6) The grassland reserve program under subchapter C of chapter 2, using, to the maximum extent practicable, $240,000,000 for the period of fiscal years 2008 through 2012.

      `(7) The environmental quality incentives program under chapter 4, using, to the maximum extent practicable--

        `(A) $1,270,000,000 for each of fiscal years 2008 and 2009; and

        `(B) $1,300,000,000 for each of fiscal years 2010 through 2012.

      `(8) The wildlife habitat incentives program under section 1240N, using, to the maximum extent practicable, $85,000,000 for each of fiscal years 2008 through 2012.

      `(9) The voluntary public access program under section 1240S, using, to the maximum extent practicable, $20,000,000 in each of fiscal years 2008 through 2012.'.

SEC. 2402. REGIONAL EQUITY.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (d) and inserting the following:

    `(d) Regional Equity-

      `(1) IN GENERAL- Before April 1 of each fiscal year, the Secretary shall give priority for funding under the conservation programs under subtitle D and the agricultural management assistance program under section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)) (excluding the conservation reserve program under subchapter B of chapter 1 and the wetlands reserve program under subchapter C of chapter 1) to approved applications in any State that has not received, for the fiscal year, an aggregate amount of at least $15,000,000 for those conservation programs.

    `(e) Specific Funding Allocations- In determining the specific funding allocations for each State under paragraph (1), the Secretary shall consider the respective demand for each program in each State.

    `(f) Allocations Review and Update-

      `(1) REVIEW- Not later than January 1, 2012, the Secretary shall conduct a review of conservation program allocation formulas to determine the sufficiency of the formulas in accounting for State-level economic factors, level of agricultural infrastructure, or related factors that affect conservation program costs.

      `(2) UPDATE- The Secretary shall improve conservation program allocation formulas as necessary to ensure that the formulas adequately reflect the costs of carrying out the conservation programs.'.

SEC. 2403. CONSERVATION ACCESS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) (as amended by section 2402) is amended by adding at the end the following:

    `(g) Conservation Access-

      `(1) ASSISTANCE TO ELIGIBLE FARMERS OR RANCHERS-

        `(A) DEFINITION OF ELIGIBLE FARMER OR RANCHER- In this paragraph, the term `eligible farmer or rancher' means a farmer or rancher that, as determined by the Secretary--

          `(i) derives or expects to derive at least $15,000 in gross sales from agriculture (not including payments under the conservation reserve program established under subchapter B of chapter 1 of subtitle D); and

          `(ii) is--

            `(I) a beginning farmer or rancher (as defined in section 343 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991)), except that in determining whether the farmer or rancher qualifies as a beginning farmer or rancher, the Secretary may--

`(aa) employ a fair and reasonable test of net worth; and

`(bb) use such other criteria as the Secretary determines to be appropriate; or

            `(II) a socially disadvantaged farmer or rancher (as defined in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)).

        `(B) ASSISTANCE- In the case of each program described in subsection (a), except as provided in paragraph (2), for each fiscal year in which funding is made available for the program, 10 percent of the funds available for the fiscal year shall be used by the Secretary to assist eligible farmers or ranchers.

      `(2) ACREAGE PROGRAMS- In the case of the conservation reserve and wetlands reserve programs, 10 percent of the acreage authorized to be enrolled in any fiscal year shall be used to assist eligible farmers or ranchers.

      `(3) REPOOLING- In any fiscal year, amounts not obligated under this subsection by a date determined by the Secretary shall be available for payments and technical assistance to all persons eligible for payments or technical assistance in that fiscal year under the program for which the amounts were originally made available under this title.

      `(4) CONSERVATION INNOVATION GRANTS- Funding under paragraph (1) for conservation innovation grants under section 1240H may, in addition to purposes described in subsection (b) of that section, be used for--

        `(A) technology transfer;

        `(B) farmer-to-farmer workshops; and

        `(C) demonstrations of innovative conservation practices.

      `(5) TECHNICAL ASSISTANCE- The Secretary shall offer, to the maximum extent practicable, higher levels of technical assistance to beginning farmers or ranchers and socially disadvantaged farmers or ranchers than are otherwise made available to producers participating in programs under this title.

      `(6) COOPERATIVE AGREEMENTS- The Secretary may develop and implement cooperative agreements with entities (including government agencies, extension entities, nongovernmental and community-based organizations, and educational institutions) with expertise in addressing the needs of beginning farmers or ranchers and socially disadvantaged farmers or ranchers to provide technical assistance, comprehensive conservation planning education, and sustainable agriculture training.'.

SEC. 2404. DELIVERY OF TECHNICAL ASSISTANCE.

    Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is amended to read as follows:

`SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

    `(a) Definition of Eligible Participant- In this section, the term `eligible participant' means--

      `(1) an agricultural producer;

      `(2) an eligible entity;

      `(3) an eligible landowner; and

      `(4) an interested organization.

    `(b) Purpose- The purpose of technical assistance authorized by this title is to provide eligible participants with consistent, science-based, site-specific practices designed to achieve conservation objectives on land active in agricultural, forestry, or related uses.

    `(c) Provision of Technical Assistance- The Secretary shall provide technical assistance under this title to an eligible participant--

      `(1) directly;

      `(2) through a contract or agreement with a third-party provider; or

      `(3) at the option of the eligible participant, through a payment, as determined by the Secretary, to the eligible participant for an approved third-party provider, if available.

    `(d) Certification of Third-Party Providers-

      `(1) IN GENERAL- The Secretary shall continue to carry out the technical service provider program established under regulations promulgated under subsection (b)(1) (as in existence on the day before the date of enactment of this subsection).

      `(2) PURPOSE- The purpose of the technical service provider program shall be to increase the availability and range of technical expertise available to farmers, ranchers, and eligible landowners to plan and implement conservation measures.

      `(3) EXPERTISE- In promulgating regulations to carry out this subsection, the Secretary shall--

        `(A) ensure that persons with expertise in the technical aspects of conservation planning, watershed planning, and environmental engineering (including commercial entities, nonprofit entities, State or local governments or agencies, and other Federal agencies) are eligible to become approved providers of the technical assistance; and

        `(B) to the maximum extent practicable--

          `(i) provide national criteria for the certification of technical service providers; and

          `(ii) approve any unique certification standards established at the State level.

      `(4) SYSTEM ADMINISTRATION-

        `(A) FUNDING- Effective for fiscal year 2008 and each subsequent fiscal year, funds of the Commodity Credit Corporation that are made available to carry out each of the programs specified in section 1241 shall be available for the provision of technical assistance from third-party providers under this section.

        `(B) CONTRACT TERM- A contract under this section shall have a term that--

          `(i) at a minimum, is equal to the period--

            `(I) beginning on the date on which the contract is entered into; and

            `(II) ending on the date that is 1 year after the date on which all activities in the contract have been completed;

          `(ii) does not exceed 3 years; and

          `(iii) can be renewed, as determined by the Secretary.

        `(C) REVIEW OF CERTIFICATION REQUIREMENTS- Not later than 1 year after the date of enactment of this subsection, the Secretary shall--

          `(i) review certification requirements for third-party providers; and

          `(ii) make any adjustments considered necessary by the Secretary to improve participation.

        `(D) ELIGIBLE ACTIVITIES- The Secretary may include in activities eligible for payment to a third-party provider--

          `(i) education and outreach to eligible participants; and

          `(ii) administrative services necessary to support conservation program implementation.

      `(5) PAYMENT AMOUNTS- The Secretary shall establish fair and reasonable amounts of payments for technical services provided by third-party providers.

    `(e) Availability of Technical Services-

      `(1) AVAILABILITY-

        `(A) IN GENERAL- In carrying out the programs under this title and the agricultural management assistance program under section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524), the Secretary shall make technical services available to all eligible participants who are installing an eligible practice.

        `(B) TECHNICAL SERVICE CONTRACTS- In any case in which financial assistance is not requested or is not provided under subparagraph (A), the Secretary may enter into a technical service contract with the applicable eligible participant for the purposes of assisting in the planning, design, or installation of an eligible practice.

      `(2) REVIEW OF CONSERVATION PRACTICE STANDARDS-

        `(A) IN GENERAL- The Secretary shall--

          `(i) review conservation practice standards, including engineering design specifications, in effect on the date of enactment of this subsection;

          `(ii) ensure, to the maximum extent practicable, the completeness and relevance of the standards to local agricultural, forestry, and natural resource needs, including specialty crops, native and managed pollinators, bioenergy crop production, forestry, and such other needs as are determined by the Secretary; and

          `(iii) ensure that the standards provide for the optimal balance between meeting site-specific conservation needs and minimizing risks of design failure and associated costs of construction and installation.

        `(B) CONSULTATION- In conducting the assessment under subparagraph (A), the Secretary shall consult with eligible participants, crop consultants, cooperative extension and land grant universities, nongovernmental organizations, and other qualified entities.

        `(C) EXPEDITED REVISION OF STANDARDS- If the Secretary determines under subparagraph (A) that revisions to the conservation practice standards, including engineering design specifications, are necessary, the Secretary shall establish an administrative process for expediting the revisions.

      `(3) ADDRESSING CONCERNS OF SPECIALITY CROP, ORGANIC, AND PRECISION AGRICULTURE PRODUCERS-

        `(A) IN GENERAL- The Secretary shall--

          `(i) to the maximum extent practicable, fully incorporate specialty crop production, organic crop production, and precision agriculture into the conservation practice standards; and

          `(ii) provide for the appropriate range of conservation practices and resource mitigation measures available to producers involved with organic or specialty crop production or precision agriculture.

        `(B) AVAILABILITY OF ADEQUATE TECHNICAL ASSISTANCE-

          `(i) IN GENERAL- The Secretary shall ensure that adequate technical assistance is available for the implementation of conservation practices by producers involved with organic or specialty crop production or precision agriculture through Federal conservation programs.

          `(ii) REQUIREMENTS- In carrying out clause (i), the Secretary shall develop--

            `(I) programs that meet specific needs of producers involved with organic or specialty crop production or precision agriculture through cooperative agreements with other agencies and nongovernmental organizations; and

            `(II) program specifications that allow for innovative approaches to engage local resources in providing technical assistance for planning and implementation of conservation practices.'.

SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    (a) Streamlined Application Process- Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended--

      (1) by redesignating subsection (b) as subsection (c); and

      (2) by inserting after subsection (a) the following:

    `(b) Streamlined Application Process-

      `(1) IN GENERAL- In carrying out each conservation program under this title, the Secretary shall ensure that the application process used by producers and landowners is streamlined to minimize complexity and eliminate redundancy.

      `(2) REVIEW AND STREAMLINING-

        `(A) REVIEW- The Secretary shall carry out a review of the application forms and processes for each conservation program covered by this subsection.

        `(B) STREAMLINING- On completion of the review the Secretary shall revise application forms and processes, as necessary, to ensure that--

          `(i) all required application information is essential for the efficient, effective, and accountable implementation of conservation programs;

          `(ii) conservation program applicants are not required to provide information that is readily available to the Secretary through existing information systems of the Department of Agriculture;

          `(iii) information provided by the applicant is managed and delivered efficiently for use in all stages of the application process, or for multiple applications; and

          `(iv) information technology is used effectively to minimize data and information input requirements.

      `(3) IMPLEMENTATION AND NOTIFICATION- Not later than 1 year after the date of enactment of the Food and Energy Security Act of 2007, the Secretary shall submit to Congress a written notification of completion of the requirements of this subsection.'.

    (b) Administration- Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) (as amended by subsection (a)) is amended by adding at the end the following:

    `(d) Cooperation Regarding Protection- In the case of a landowner who enrolls land in a conservation program authorized under this title that results in a net conservation benefit for a listed, candidate, or other species, the Secretary shall cooperate at the request of the landowner with the Secretary of the Interior and the Secretary of Commerce, as appropriate, to make available to the landowner safe harbor or similar assurances and protections under sections 7(b)(4) and 10(a), as applicable, of the Endangered Species Act of 1973 (16 U.S.C. 1536(b)(4), 1539(a)).

    `(e) Eligibility of Producer Organizations-

      `(1) IN GENERAL- In carrying out a conservation program administered by the Secretary, the Secretary shall accept applications from, and shall provide cost-share and incentive payments and other assistance to, producers who elect to apply through an organization that represents producers and of which producers make up a majority of the governing body, if the Secretary determines that--

        `(A) the full objective of the proposed activity, practice, or plan cannot be realized without the participation of all or substantially all of the producers in the affected area; and

        `(B) the benefits achieved through the proposed activity, practice, or plan are likely to be greater and to be delivered more cost-effectively if provided through a single organization with related conservation expertise and management experience.

      `(2) LIMITATION- Any applicable payment limitation shall apply to each participating producer and not to the organization described in paragraph (1).

    `(f) Partnerships and Cooperation-

      `(1) IN GENERAL- In carrying out each program under subtitle D (excluding the wetlands reserve program and the conservation reserve program), the Secretary, acting through the State Conservationist, shall designate special projects to enhance conservation outcomes by working with multiple producers to address conservation issues, if recommended by the State Conservationist, in consultation with the State technical committee.

      `(2) GUIDELINES- The Secretary shall establish guidelines to be used by States in the designation of special projects under paragraph (1).

      `(3) PURPOSES- The purposes of special projects carried out under this subsection shall be to achieve local, statewide, or regional conservation objectives by--

        `(A) encouraging producers to cooperate in the installation and maintenance of conservation practices that affect multiple agricultural operations;

        `(B) encouraging producers to cooperate in meeting applicable Federal, State, and local regulatory requirements regarding natural resources and the environment;

        `(C) encouraging producers to share information and technical and financial resources;

        `(D) facilitating cumulative conservation benefits in geographic areas; and

        `(E) promoting the development and demonstration of innovative conservation methods.

      `(4) ELIGIBLE PARTNERS- State and local government entities (including irrigation and water districts and canal companies), Indian tribes, farmer cooperatives, institutions of higher education, nongovernmental organizations, and producer associations shall be eligible to apply under this subsection.

      `(5) SPECIAL PROJECT APPLICATION- To apply for designation as a special project, partners shall submit an application to the Secretary that includes--

        `(A) a description of the geographic area, the current conditions, the conservation objectives to be achieved through the special project, and the expected level of participation by agricultural and nonindustrial private forest landowners;

        `(B) a description of the partners collaborating to achieve the project objectives and the roles, responsibilities, and capabilities of the partners;

        `(C) a description of the program resources from 1 or more programs under subtitle D that are requested from the Secretary, in relevant units, and the non-Federal resources that will be leveraged by the Federal contribution;

        `(D) a description of the plan for monitoring, evaluating, and reporting on any progress made towards achieving the purposes of the special project; and

        `(E) such other information as described in guidelines established by the Secretary under paragraph (2).

      `(6) DUTIES OF THE SECRETARY-

        `(A) IN GENERAL- The Secretary shall enter into multiyear agreements with partners to facilitate the delivery of conservation program resources in a manner to achieve the purposes described in paragraph (3).

        `(B) PROJECT SELECTION-

          `(i) IN GENERAL- The Secretary shall conduct a competitive process to select projects funded under this subsection.

          `(ii) FACTORS CONSIDERED- In conducting the process described in clause (i), the Secretary shall make public the factors to be considered in evaluating applications.

          `(iii) PRIORITY- The Secretary may give priority to applications based on--

            `(I) the highest percentage of producers involved, and the inclusion of the highest percentage of working agricultural land in the area;

            `(II) the highest percentage of on-the-ground conservation to be implemented;

            `(III) non-Federal resources to be leveraged;

            `(IV) innovation in conservation methods and delivery, including outcome-based performance measures and methods; and

            `(V) other factors, as determined by the Secretary.

        `(C) TECHNICAL AND FINANCIAL ASSISTANCE- The Secretary and partners shall provide appropriate technical and financial assistance to producers participating in a special project in an amount determined by the Secretary to be necessary to achieve the purposes described in paragraph (3).

        `(D) ADMINISTRATION-

          `(i) IN GENERAL- The Secretary shall ensure that resources made available under this subsection are delivered in accordance with applicable program rules relating to basic program functions, including rules governing appeals, payment limitations, and conservation compliance.

          `(ii) FLEXIBILITY- The Secretary may adjust elements of the programs under this title, as requested by the State Conservationist, to better reflect unique local circumstances and purposes, if the Secretary determines that such adjustments are necessary to achieve the purposes of this subsection.

          `(iii) ADDITIONAL REQUIREMENTS- The Secretary may establish additional requirements beyond applicable program rules in order to effectively implement this subsection.

      `(7) SPECIAL RULES APPLICABLE TO REGIONAL WATER ENHANCEMENT PROJECTS-

        `(A) DEFINITIONS- In this paragraph:

          `(i) ELIGIBLE PARTNER- The term `eligible partner' means--

            `(I) an eligible partner identified in paragraph (4); and

            `(II) a water or wastewater agency of a State.

          `(ii) ELIGIBLE PROJECT-

            `(I) IN GENERAL- The term `eligible project' means a project that is specifically targeted to improve water quality or quantity in an area.

            `(II) INCLUSIONS- The term `eligible project' includes a project that involves--

`(aa) resource condition assessment and modeling;

`(bb) water quality, water quantity, or water conservation plan development;

`(cc) management system and environmental monitoring and evaluation;

`(dd) cost-share restoration or enhancement;

`(ee) incentive payments for land management practices;

`(ff) easement purchases;

`(gg) conservation contracts with landowners;

`(hh) improved irrigation systems;

`(ii) water banking and other forms of water transactions;

`(jj) groundwater recharge;

`(kk) stormwater capture; and

`(ll) other water-related activities that the Secretary determines will help to achieve the water quality or water quantity benefits identified in the agreement in subparagraph (E).

        `(B) REGIONAL WATER ENHANCEMENT PROCEDURES- With respect to proposals for eligible projects by eligible partners, the Secretary shall establish specific procedures (to be known collectively as `regional water enhancement procedures') in accordance with this paragraph.

        `(C) MEANS- Regional water enhancement activities in a particular region shall be carried out through a combination of--

          `(i) multiyear agreements between the Secretary and eligible partners;

          `(ii) other regional water enhancement activities carried out by the Secretary; and

          `(iii) regional water enhancement activities carried out by eligible partners through other means.

        `(D) MULTIYEAR AGREEMENTS WITH ELIGIBLE PARTNERS-

          `(i) SOLICITATION OF PROPOSALS- Not later than 90 days after the date of enactment of this subsection, the Secretary shall invite prospective eligible partners to submit proposals for regional water enhancement projects.

          `(ii) ELEMENTS OF PROPOSALS- To be eligible for consideration for participation in the program, a proposal submitted by an eligible partner shall include--

            `(I) identification of the exact geographic area for which the partnership is proposed, which may be based on--

`(aa) a watershed (or portion of a watershed);

`(bb) an irrigation, water, or drainage district;

`(cc) the service area of an irrigation water delivery entity; or

`(dd) some other geographic area with characteristics that make the area suitable for landscape-wide program implementation;

            `(II) identification of the water quality or water quantity issues that are of concern in the area;

            `(III) a method for determining a baseline assessment of water quality, water quantity, and other related resource conditions in the region;

            `(IV) a detailed description of the proposed water quality or water quantity improvement activities to be undertaken in the area, including an estimated timeline and program resources for every activity; and

            `(V) a description of the performance measures to be used to gauge the effectiveness of the water quality or water quantity improvement activities.

          `(iii) SELECTION OF PROPOSALS- The Secretary shall award multiyear agreements competitively, with priority given, as determined by the Secretary, to selecting proposals that--

            `(I) have the highest likelihood of improving the water quality or quantity issues of concern for the area;

            `(II) involve multiple stakeholders and will ensure the highest level of participation by producers and landowners in the area through performance incentives to encourage adoption of specific practices in specific locations;

            `(III) will result in the inclusion of the highest percentage of working agricultural land in the area;

            `(IV) will result in the highest percentage of on-the-ground activities as compared to administrative costs;

            `(V) will provide the greatest contribution to sustaining or enhancing agricultural or silvicultural production in the area; and

            `(VI) include performance measures that will allow post-activity conditions to be satisfactorily measured to gauge overall effectiveness.

          `(iv) IDENTIFICATION OF WATER QUALITY AND WATER QUANTITY PRIORITY AREAS-

            `(I) IN GENERAL- Subject to subclause (II), the Secretary shall identify areas in which protecting or improving water quality or water quantity is a priority.

            `(II) MANDATORY INCLUSIONS- The Secretary shall include in any identification of areas under subclause (I)--

`(aa) the Chesapeake Bay;

`(bb) the Upper Mississippi River basin;

`(cc) the greater Everglades ecosystem;

`(dd) the Klamath River basin;

`(ee) the Sacramento/San Joaquin River watershed;

`(ff) the Mobile River basin;

`(gg) the Puget Sound;

`(hh) the Ogallala Aquifer;

`(ii) the Illinois River watershed (located in the States of Arkansas and Oklahoma);

`(jj) the Champlain Basin watershed;

`(kk) the Platte River watershed;

`(ll) the Republican River watershed;

`(mm) the Chattahoochee River watershed; and

`(nn) the Rio Grande watershed.

        `(E) AGREEMENTS- Not later than 30 days after the date on which the Secretary awards an agreement under subparagraph (D), the Secretary shall enter into an agreement with the eligible partner that, at a minimum, contains--

          `(i) a description of the respective duties and responsibilities of the Secretary and the eligible partner in carrying out the activities in the area; and

          `(ii) the criteria that the Secretary will use to evaluate the overall effectiveness of the regional water enhancement activities funded by the multiyear agreement in improving the water quality or quantity conditions of the region relative to the performance measures in the proposal.

        `(F) CONTRACTS WITH OTHER PARTIES- An agreement awarded under subparagraph (D) may provide for the use of third-party providers (including other eligible partners) to undertake specific regional water enhancement activities in a region on a contractual basis with the Secretary or the eligible partner.

        `(G) CONSULTATION WITH OTHER AGENCIES- With respect to areas in which a Federal or State agency is, or will be, undertaking other water quality or quantity-related activities, the Secretary and the eligible partner may consult with the Federal or State agency in order to--

          `(i) coordinate activities;

          `(ii) avoid duplication; and

          `(iii) ensure that water quality or quantity improvements attributable to the other activities are taken into account in the evaluation of the Secretary under subparagraph (E)(ii).

        `(H) RELATIONSHIP TO OTHER PROGRAMS- The Secretary shall ensure that, to the extent that producers and landowners are individually participating in other programs under subtitle D in a region in which a regional water enhancement project is in effect, any improvements to water quality or water quantity attributable to the individual participation are included in the evaluation criteria developed under subparagraph (E)(ii).

        `(I) CONSISTENCY WITH STATE LAW- Any water quality or water quantity improvement activity undertaken under this paragraph shall be consistent with State water laws.

      `(8) DURATION-

        `(A) IN GENERAL- Multiyear agreements under this subsection shall be for a period not to exceed 5 years.

        `(B) EARLY TERMINATION- The Secretary may terminate a multiyear agreement before the end of the agreement if the Secretary determines that performance measures are not being met.

      `(9) FUNDING-

        `(A) SET ASIDE-

          `(i) IN GENERAL- Of the funds provided for each of fiscal years 2008 through 2012 to carry out the conservation programs in subtitle D (excluding the conservation reserve program, the conservation security program, the conservation stewardship program, and the wetlands reserve program), the Secretary shall reserve 10 percent of the funds allocated to each State for use for activities under this subsection.

          `(ii) CONSERVATION STEWARDSHIP PROGRAM- Of the acres allocated for the conservation stewardship program for each of fiscal years 2008 through 2012, the Secretary shall reserve 10 percent of acres allocated to each State for use for activities under this subsection.

        `(B) USE OF RESOURCES- Of the funds reserved and acres allocated to each State under this subsection in each fiscal year, the Secretary shall--

          `(i) allocate not less than 75 percent to be used by the State Conservationist to carry out special projects under this subsection (including regional water enhancement projects); and

          `(ii) use not more than 25 percent for multistate projects authorized under this subsection.

        `(C) PARTNERS- Overhead or administrative costs of partners may not be covered by funds provided through this subsection.

        `(D) UNUSED FUNDING- Any funds made available, and any acres reserved, for a fiscal year under subparagraph (A) that are not obligated or enrolled by April 1 of the fiscal year may be used to carry out other activities under conservation programs under subtitle D during the fiscal year in which the funding becomes available.

    `(g) Accuracy of Payments- Immediately after the date of enactment of this subsection, the Secretary shall implement policies and procedures to ensure proper payment of farm program benefits to producers participating in conservation easement programs and correct other management deficiencies identified in Report No. 50099-11-SF issued by the Department of Agriculture Office of Inspector General in August 2007.

    `(h) Compliance and Performance- For each conservation program under this title, the Secretary shall develop procedures--

      `(1) to monitor compliance with program requirements by landowners and eligible entities;

      `(2) to measure program performance;

      `(3) to demonstrate whether the long-term conservation benefits of the program are being achieved; and

      `(4) to coordinate activities described in this subsection with the national conservation program authorized under section 5 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2004).

    `(i) Direct Attribution of Payments- In implementing payment limitations for any program under this title, the Secretary shall issue such regulations as are necessary to ensure that the total amount of payments are attributed to an individual by taking into account the direct and indirect ownership interests of the individual in an entity that is eligible to receive the payments.'.

    (c) Conforming Amendments- Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is amended--

      (1) in subsection (d)(3)(B), by striking `(f)(4)' and inserting `(f)(3)'; and

      (2) in subsection (f)--

        (A) in paragraph (1)--

          (i) by striking `The total' and inserting `Subject to section 1244(i), the total'; and

          (ii) by striking `a person' and inserting `an individual';

        (B) by striking paragraph (2); and

        (C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

SEC. 2406. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES MARKETS.

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

`SEC. 1245. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES MARKETS.

    `(a) Framework-

      `(1) IN GENERAL- The Secretary shall establish a framework to facilitate the participation of farmers, ranchers, and forest landowners in emerging environmental services markets.

      `(2) PROCESS- In carrying out paragraph (1), the Secretary shall use a collaborative process that includes representatives of--

        `(A) farm, ranch, and forestry interests;

        `(B) financial institutions involved in environmental services trading;

        `(C) institutions of higher education with relevant expertise or experience;

        `(D) nongovernmental organizations with relevant expertise or experience;

        `(E) government agencies of relevant jurisdiction, including--

          `(i) the Department of Commerce;

          `(ii) the Department of Energy;

          `(iii) the Department of the Interior;

          `(iv) the Department of Transportation;

          `(v) the Environmental Protection Agency; and

          `(vi) the Corps of Engineers; and

        `(F) other appropriate interests, as determined by the Secretary.

      `(3) REQUIREMENTS-

        `(A) DEFINITION OF STANDARD- In this paragraph, the term `standard' means a technical guideline that outlines accepted, science-based methods to quantify the environmental services benefits from agricultural and forest conservation and land management practices, as determined by the Secretary.

        `(B) FRAMEWORK REQUIREMENTS- In establishing the framework under paragraph (1), the Secretary shall--

          `(i) establish uniform standards;

          `(ii) design accounting procedures to quantify environmental services benefits that would assist farmers, ranchers, and forest landowners in using the uniform standards to establish certifications, as defined in emerging environmental services markets;

          `(iii) establish--

            `(I) a protocol to report environmental services benefits; and

            `(II) a registry to report and maintain the benefits for future use in emerging environmental services markets; and

          `(iv) establish a process to verify that a farmer, rancher, or forest landowner that reports and maintains an environmental services benefit in the registry described in clause (iii)(II) has implemented the reported conservation or land management activity.

        `(C) THIRD-PARTY SERVICE PROVIDERS- In developing the process described in subparagraph (B)(iv), the Secretary shall consider the role of third-party service providers.

      `(4) COORDINATION- The Secretary shall coordinate and leverage activities in existence on the date of enactment of this section in agriculture and forestry relating to emerging environmental services markets.

      `(5) PRIORITY- In establishing the framework under this subsection, the Secretary shall give priority to providing assistance to farmers, ranchers, and forest landowners participating in carbon markets.

    `(b) Authority To Delegate- The Secretary may delegate any responsibility under this section to a relevant agency or office, as determined by the Secretary.

    `(c) Reports to Congress-

      `(1) STATUS OF COLLABORATIVE PROCESS- Not later than 90 days after the date of enactment of this section, 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 information on the status of the collaborative process under subsection (a)(2).

      `(2) INTERIM REPORT- Not later than 180 days after the date of enactment of this section, the Secretary shall submit to the committees of Congress described in paragraph (1) an interim report that--

        `(A) describes the adequacy of existing research and methods to quantify environmental services benefits;

        `(B) proposes methods--

          `(i) to establish technical guidelines, accounting procedures, and reporting protocols; and

          `(ii) to structure the registry; and

        `(C) includes recommendations for actions to remove barriers for farmers, ranchers, and forest landowners to participation, reporting, registration, and verification relating to environmental services markets.

      `(3) FINAL REPORT- Not later than 18 months after the date of enactment of this section, the Secretary shall submit to the committees of Congress described in paragraph (1) a report that describes--

        `(A) the progress of the Secretary in meeting the requirements described in subsection (a)(3)(B);

        `(B) the rates of participation of farmers, ranchers, and forest landowners in emerging environmental services markets; and

        `(C) any recommendations of the Secretary relating to reauthorization of this section.

    `(d) Funding- There are authorized to be appropriated to the Secretary to carry out this section such sums as are necessary for each of fiscal years 2008 through 2012.'.

Subtitle F--State Technical Committees

SEC. 2501. STATE TECHNICAL COMMITTEES.

    (a) Standards- Section 1261 of the Food Security Act of 1985 (16 U.S.C. 3861(c)) is amended by striking subsection (b) and inserting the following:

    `(b) Standards- Not later than 180 days after the date of enactment of the Food and Energy Security Act of 2007, the Secretary shall develop--

      `(1) standard operating procedures to standardize the operations of State technical committees; and

      `(2) standards to be used by the State technical committees in the development of technical guidelines under section 1262(b) for the implementation of the conservation provisions of this title.'.

    (b) Composition- Section 1261(c) of the Food Security Act of 1985 (16 U.S.C. 3861(c)) is amended--

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

      `(1) the Natural Resources Conservation Service;

      `(2) the Farm Service Agency;';

      (2) by striking paragraph (5) and inserting the following:

      `(5) Rural Development agencies;';

      (3) in paragraph (11), by striking `and' at the end;

      (4) in paragraph (12), by striking the period at the end and inserting `; and'; and

      (5) by adding at the end the following:

      `(13) nonindustrial private forest land owners.'.

    (c) FACA Requirements- Section 1262(e) of the Food Security Act of 1985 (16 U.S.C. 3862(e)) is amended--

      (1) by striking `The committees' and inserting the following:

      `(1) IN GENERAL- The committees'; and

      (2) by adding at the end the following:

      `(2) LOCAL WORKING GROUPS- For purposes of the Federal Advisory Committee Act (5 U.S.C. App.), any local working group established under this subtitle shall be considered to be a subcommittee of the applicable State technical committee.'.

Subtitle G--Other Authorities

SEC. 2601. AGRICULTURAL MANAGEMENT ASSISTANCE.

    Section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)) is amended--

      (1) in paragraph (1), by inserting `Idaho' after `Delaware'; and

      (2) in paragraph (4)(B), by striking `2007' each place it appears and inserting `2012'.

SEC. 2602. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    The Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6901 et seq.) is amended by adding at the end the following:

`SEC. 307. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    `(a) Establishment-

      `(1) IN GENERAL- Notwithstanding any other provision of law relating to Federal grants, cooperative agreements, or contracts, there is established in the Department the agriculture conservation experienced services program (referred to in this section as the `ACE program').

      `(2) AUTHORIZATION- Under the ACE program, the Secretary may offer to enter into agreements with nonprofit private agencies and organizations eligible to receive grants for the applicable fiscal year under title V of the Older Americans Act of 1965 (42 U.S.C. 3056 et seq.) to use the talents of individuals who are age 55 or older, to provide conservation technical assistance in support of the administration of conservation-related programs and authorities administered by the Secretary.

      `(3) FUNDING- Agreements described in paragraph (2) may be carried out using funds made available to carry out--

        `(A) the environmental quality incentives program of the comprehensive stewardship incentives program established under subchapter A of chapter 6 of subtitle D of title XII of the Food Security Act of 1985;

        `(B) the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a et seq.); or

        `(C) title V of the Older Americans Act of 1965 (42 U.S.C. 3056).

    `(b) Determination- Prior to entering into an agreement described in subsection (a)(2), the Secretary shall determine that the agreement would not--

      `(1) result in the displacement of individuals employed by the Department, including partial displacement through reduction of nonovertime hours, wages, or employment benefits;

      `(2) result in the use of an individual covered by this section for a job or function in a case in which a Federal employee is in a layoff status from the same or a substantially-equivalent job or function with the Department; or

      `(3) affect existing contracts for services.

    `(c) Technical Assistance- The Secretary may make available to individuals providing technical assistance under an agreement authorized by this section appropriate conservation technical tools, including the use of agency vehicles necessary to carry out technical assistance in support of the conservation-related programs affected by the ACE program.'.

SEC. 2603. TECHNICAL ASSISTANCE.

    (a) Soil Conservation and Domestic Allotment Act-

      (1) PREVENTION OF SOIL EROSION-

        (A) IN GENERAL- The first section of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a) is amended--

          (i) by striking `That it' and inserting the following:

`SECTION 1. PURPOSE.

    `It'; and

          (ii) in the matter preceding paragraph (1), by striking `and thereby to preserve natural resources,' and inserting `to preserve soil, water, and related resources, promote soil and water quality,'.

        (B) POLICIES AND PURPOSES- Section 7(a)(1) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g(a)(1)) is amended by striking `fertility' and inserting `and water quality and related resources'.

      (2) DEFINITIONS- Section 10 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590j) is amended to read as follows:

`SEC. 10. DEFINITIONS.

    `In this Act:

      `(1) AGRICULTURAL COMMODITY- The term `agricultural commodity' means--

        `(A) an agricultural commodity; and

        `(B) any regional or market classification, type, or grade of an agricultural commodity.

      `(2) TECHNICAL ASSISTANCE-

        `(A) IN GENERAL- The term `technical assistance' means technical expertise, information, and tools necessary for the conservation of natural resources on land active in agricultural, forestry, or related uses.

        `(B) INCLUSIONS- The term `technical assistance' includes--

          `(i) technical services provided directly to farmers, ranchers, and other eligible entities, such as conservation planning, technical consultation, and assistance with design and implementation of conservation practices; and

          `(ii) technical infrastructure, including activities, processes, tools, and agency functions needed to support delivery of technical services, such as technical standards, resource inventories, training, data, technology, monitoring, and effects analyses.'.

    (b) Soil and Water Resources Conservation Act of 1977-

      (1) CONGRESSIONAL FINDINGS- Section 2 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--

        (A) in paragraph (2), by striking `base, of the' and inserting `base of the'; and

        (B) in paragraph (3), by striking `(3)' and all that follows through `Since individual' and inserting the following:

      `(3) Appraisal and inventory of resources, assessment and inventory of conservation needs, evaluation of the effects of conservation practices, and analyses of alternative conservation programs are basic to effective soil, water, and related natural resource conservation.

      `(4) Since individual'.

      (2) CONTINUING APPRAISAL OF SOIL, WATER, AND RELATED RESOURCES- Section 5 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2004) is amended--

        (A) in subsection (a)--

          (i) in paragraph (5), by striking `and' at the end;

          (ii) in paragraph (6), by striking the period at the end and inserting `; and'; and

          (iii) by adding at the end the following:

      `(7) data on conservation plans, conservation practices planned or implemented, environmental outcomes, economic costs, and related matters under conservation programs administered by the Secretary.';

        (B) by redesignating subsection (d) as subsection (e);

        (C) by inserting after subsection (c) the following:

    `(d) Evaluation of Appraisal- In conducting the appraisal described in subsection (a), the Secretary shall concurrently solicit and evaluate recommendations for improving the appraisal, including the content, scope, process, participation in, and other elements of the appraisal, as determined by the Secretary.'; and

        (D) in subsection (e) (as redesignated by subparagraph (B)), by striking `December 31, 1979' and all that follows through `December 31, 2005' and inserting `December 31, 2010, December 31, 2015, December 31, 2020, and December 31, 2025'.

      (3) SOIL AND WATER CONSERVATION PROGRAM- Section 6 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2005) is amended--

        (A) by redesignating subsection (b) as subsection (d);

        (B) by inserting after subsection (a) the following:

    `(b) Evaluation of Existing Conservation Programs- In evaluating existing conservation programs, the Secretary shall emphasize demonstration, innovation, and monitoring of specific program components in order to encourage further development and adoption of practices and performance-based standards.

    `(c) Improvement to Program- In developing a national soil and water conservation program under subsection (a), the Secretary shall solicit and evaluate recommendations for improving the program, including the content, scope, process, participation in, and other elements of the program, as determined by the Secretary.'; and

        (C) in subsection (d) (as redesignated by subparagraph (A)), by striking `December 31, 1979' and all that follows through `December 31, 2007' and inserting `December 31, 2011, December 31, 2016, December 31, 2021, and December 31, 2026'.

      (4) REPORTS TO CONGRESS- Section 7 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended to read as follows:

`SEC. 7. REPORTS TO CONGRESS.

    `(a) Appraisal- Not later than the date on which Congress convenes in 2011, 2016, 2021, and 2026, the President shall transmit to the Speaker of the House of Representatives and the President of the Senate the appraisal developed under section 5 and completed prior to the end of the previous year.

    `(b) Program and Statement of Policy- Not later than the date on which Congress convenes in 2012, 2017, 2022, and 2027, the President shall transmit to the Speaker of the House of Representatives and the President of the Senate--

      `(1) the initial program or updated program developed under section 6 and completed prior to the end of the previous year;

      `(2) a detailed statement of policy regarding soil and water conservation activities of the Department of Agriculture; and

      `(3) a special evaluation of the status, conditions, and trends of soil quality on cropland in the United States that addresses the challenges and opportunities for reducing soil erosion to tolerance levels.

    `(c) Improvements to Appraisal and Program- Not later than the date on which Congress convenes in 2012, the Secretary shall submit to the Speaker of the House of Representatives and the President of the Senate a report describing the plans of the Department of Agriculture for improving the resource appraisal and national conservation program required under this Act, based on the recommendations received under sections 5(d) and 6(c).'.

      (5) TERMINATION OF PROGRAM- Section 10 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is amended by striking `2008' and inserting `2028'.

SEC. 2604. SMALL WATERSHED REHABILITATION PROGRAM.

    Section 14 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012) is amended by striking subsection (h) and inserting the following:

    `(h) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.'.

SEC. 2605. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    (a) Locally Led Planning Process- Section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451) is amended--

      (1) in paragraph (1), in the matter preceding subparagraph (A), by striking `planning process' and inserting `locally led planning process';

      (2) by redesignating paragraphs (8) and (9) as paragraphs (9) and (8), respectively, and moving those paragraphs so as to appear in numerical order;

      (3) in paragraph (8) (as so redesignated)--

        (A) by striking `(8) PLANNING PROCESS' and inserting `(8) LOCALLY LED PLANNING PROCESS'; and

        (B) by striking `council' and inserting `locally led council'.

    (b) Authorized Technical Assistance- Section 1528(13) of the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is amended by striking subparagraphs (C) and (D) and inserting the following:

        `(C) providing assistance for the implementation of area plans and projects; and

        `(D) providing services that involve the resources of Department of Agriculture programs in a local community, as defined in the locally led planning process.'.

    (c) Improved Provision of Technical Assistance- Section 1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454) is amended--

      (1) by redesignating paragraphs (1) through (4) as clauses (i) through (iv), respectively, and indenting appropriately;

      (2) by striking `In carrying' and inserting the following:

      `(1) IN GENERAL- In carrying'; and

      (3) by adding at the end the following:

    `(b) Coordinator-

      `(1) IN GENERAL- To improve the provision of technical assistance to councils under this subtitle, the Secretary shall designate for each council an individual to be the coordinator for the council.

      `(2) RESPONSIBILITY- A coordinator for a council shall be directly responsible for the provision of technical assistance to the council.'.

    (d) Program Evaluation- Section 1534 of the Agriculture and Food Act of 1981 (16 U.S.C. 3457) is repealed.

SEC. 2606. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

    (a) Advisory Functions- Section 353 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 5802) is amended--

      (1) in subsection (b)(3), by striking `agencies' and inserting `agencies, individuals,'; and

      (2) by adding at the end the following:

    `(d) Advisory Functions- Notwithstanding the requirements of the Federal Advisory Committee Act (5 U.S.C. App.), the Foundation may provide advice and recommendations to the Secretary.'.

    (b) Gifts, Devises, and Bequests of Personal Property- Section 354 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 5803) is amended by adding at the end the following:

    `(h) Gifts, Devises, and Bequests of Personal Property-

      `(1) IN GENERAL- Prior to the appointment and initial meeting of the members of the Board and after the initial meeting of the Board, the Secretary may, on behalf of the Foundation--

        `(A) accept, receive, and hold nonmonetary gifts, devises, or bequests of personal property; and

        `(B) accept and receive monetary gifts, devises, or bequests.

      `(2) HELD IN TRUST- Gifts, devises, or bequests of monetary and nonmonetary personal property shall--

        `(A) be held in trust for the Foundation; and

        `(B) shall not be--

          `(i) considered gifts to the United States; or

          `(ii) used for the benefit of the United States.

      `(3) TREASURY ACCOUNT- The Secretary shall deposit monetary gifts, devises, and bequests to the Foundation in a special interest-bearing account in the Treasury of the United States.

      `(4) INITIAL GIFTS, DEVISES, AND BEQUESTS-

        `(A) IN GENERAL- The Secretary may use initial gifts, devises, or bequests received prior to the first meeting of the Board for any necessary expenses and activities related to the first meeting of the Board.

        `(B) TRANSFER- Except with respect to any amounts expended under subparagraph (A), the Secretary shall, at the first meeting of the Board, transfer to the Foundation all gifts, devises, or bequests received prior to the first meeting of the Board.'.

    (c) Officers and Employees- Section 355(b)(1) of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 5804(b)(1)) is amended--

      (1) by striking `Foundation--' and all that follows through `shall not,' in subparagraph (A) and inserting `Foundation shall not';

      (2) by striking `employee; and' and inserting `employee.'; and

      (3) by striking subparagraph (B).

    (d) Contracts and Agreements- Section 356 of the Federal Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5805) is amended--

      (1) in subsection (c)(7), by striking `State or local' and inserting `Federal, State, or local'; and

      (2) in subsection (d)(2)--

        (A) by striking `A gift' and inserting the following:

        `(A) IN GENERAL- A gift'; and

        (B) by adding at the end the following:

        `(B) TAX STATUS- A gift, devise, or bequest to the Foundation shall be treated as a gift, devise, or bequest to an organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986.'.

    (e) Administrative Services and Support- Section 356 of the Federal Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5806) is amended by striking `1996 through 1998' and inserting `2008 through 2012.'.

SEC. 2607. DESERT TERMINAL LAKES.

    Section 2507 of the Farm Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is amended--

      (1) in subsection (a), by striking `, as soon as practicable after the date of enactment of this Act,' and inserting the following: `and paragraph (1) of section 207(a) of Public Law 108-7 (117 Stat. 146), notwithstanding paragraph (3) of that section, on the date of enactment of the Food and Energy Security Act of 2007,'; and

      (2) by striking subsection (b) and inserting the following:

    `(b) Permitted Uses- In any case in which there are willing sellers, the funds described in subsection (a) may be used--

      `(1) to lease water; or

      `(2) to purchase land, water appurtenant to the land, and related interests in the Walker River Basin in accordance with section 208(a)(1)(A) of the Energy and Water Development Appropriations Act, 2006 (Public Law 109-103, 119 Stat. 2268).'.

SEC. 2607A. DESERT TERMINAL LAKES.

    Section 2507 of the Farm Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is amended--

      (1) in subsection (a), by striking `, as soon as practicable after the date of enactment of this Act,' and inserting the following: `and paragraph (1) of section 207(a) of Public Law 108-7 (117 Stat. 146), notwithstanding paragraph (3) of that section, on the date of enactment of the Food and Energy Security Act of 2007,'; and

      (2) by striking subsection (b) and inserting the following:

    `(b) Permitted Uses- In any case in which there are willing sellers, the funds described in subsection (a) may be used--

      `(1) to lease water; or

      `(2) to purchase land, water appurtenant to the land, and related interests in the Walker River Basin in accordance with section 208(a)(1)(A) of the Energy and Water Development Appropriations Act, 2006 (Public Law 109-103, 119 Stat. 2268).'.

SEC. 2608. CROP INSURANCE INELIGIBILITY RELATING TO CROP PRODUCTION ON NATIVE SOD.

    (a) Federal Crop Insurance- Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the end the following:

    `(o) Crop Insurance Ineligibility Relating to Crop Production on Native Sod-

      `(1) DEFINITION OF NATIVE SOD- In this subsection, the term `native sod' means land--

        `(A) on which the plant cover is composed principally of native grasses, grasslike plants, forbs, or shrubs suitable for grazing and browsing; and

        `(B) that has never been used for production of an agricultural commodity.

      `(2) INELIGIBILITY-

        `(A) IN GENERAL- Except as provided in subparagraph (B), native sod acreage on which an agricultural commodity is planted for which a policy or plan of insurance is available under this title shall be ineligible for benefits under this Act.

        `(B) DE MINIMIS ACREAGE EXEMPTION- The Secretary shall exempt areas of 5 acres or less from subparagraph (A).'.

    (b) Noninsured Crop Disaster Assistance- Section 196(a) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)) is amended by adding at the end the following:

      `(4) PROGRAM INELIGIBILITY RELATING TO CROP PRODUCTION ON NATIVE SOD-

        `(A) DEFINITION OF NATIVE SOD- In this paragraph, the term `native sod' means land--

          `(i) on which the plant cover is composed principally of native grasses, grasslike plants, forbs, or shrubs suitable for grazing and browsing; and

          `(ii) that has never been used for production of an agricultural commodity.

        `(B) INELIGIBILITY- Except as provided in subparagraph (C), native sod acreage on which an agricultural commodity is planted for which a policy or plan of Federal crop insurance is available shall be ineligible for benefits under this section.

        `(C) DE MINIMIS ACREAGE EXEMPTION- The Secretary shall exempt areas of 5 acres or less from subparagraph (B).'.

    (c) Cropland Report-

      (1) BASELINE- Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the cropland acreage in each county and State, and the change in cropland acreage from the preceding year in each county and State, beginning with calendar year 1995 and including that information for the most recent year for which that information is available.

      (2) ANNUAL UPDATES- Not later than January 1, 2008, and each January 1 thereafter through January 1, 2012, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes--

        (A) the cropland acreage in each county and State as of the date of submission of the report; and

        (B) the change in cropland acreage from the preceding year in each county and State.

SEC. 2609. HIGH PLAINS WATER STUDY.

    Notwithstanding any other provision of this Act, no person shall become ineligible for any program benefits under this Act or an amendment made by this Act solely as a result of participating in a 1-time study of recharge potential for the Ogallala Aquifer in the High Plains of the State of Texas.

SEC. 2610. PAYMENT OF EXPENSES.

    Section 17(d) of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136o(d)) is amended--

      (1) by striking `The Administrator' and inserting the following:

      `(1) IN GENERAL- The Administrator'; and

      (2) by adding at the end the following:

      `(2) DEPARTMENT OF STATE EXPENSES- Any expenses incurred by an employee of the Environmental Protection Agency who participates in any international technical, economic, or policy review board, committee, or other official body that is meeting in relation to an international treaty shall be paid by the Department of State.'.

SEC. 2611. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL ACTIVITIES UPSTREAM OF IMPERIAL DAM.

    (a) In General- Section 202(a) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding at the end the following:

      `(7) BASIN STATES PROGRAM-

        `(A) IN GENERAL- A Basin States Program that the Secretary, acting through the Bureau of Reclamation, shall implement to carry out salinity control activities in the Colorado River Basin using funds made available under section 205(f).

        `(B) ASSISTANCE- The Secretary, in consultation with the Colorado River Basin Salinity Control Advisory Council, shall carry out this paragraph using funds described in subparagraph (A) directly or by providing grants, grant commitments, or advance funds to Federal or non-Federal entities under such terms and conditions as the Secretary may require.

        `(C) ACTIVITIES- Funds described in subparagraph (A) shall be used to carry out, as determined by the Secretary--

          `(i) cost-effective measures and associated works to reduce salinity from saline springs, leaking wells, irrigation sources, industrial sources, erosion of public and private land, or other sources;

          `(ii) operation and maintenance of salinity control features constructed under the Colorado River Basin salinity control program; and

          `(iii) studies, planning, and administration of salinity control activities.

        `(D) REPORT-

          `(i) IN GENERAL- Not later than 30 days before implementing the program established under this paragraph, the Secretary shall submit to the appropriate committees of Congress a planning report that describes the proposed implementation of the program.

          `(ii) IMPLEMENTATION- The Secretary may not expend funds to implement the program established under this paragraph before the expiration of the 30-day period beginning on the date on which the Secretary submits the report, or any revision to the report, under clause (i).'.

    (b) Conforming Amendments-

      (1) Section 202 of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592) is amended--

        (A) in subsection (a), in the matter preceding paragraph (1), by striking `program' and inserting `programs'; and

        (B) in subsection (b)(4)--

          (i) by striking `program' and inserting `programs'; and

          (ii) by striking `and (6)' and inserting `(6), and (7)'.

      (2) Section 205 of the Colorado River Basin Salinity Control Act (43 U.S.C. 1595) is amended by striking subsection (f) and inserting the following:

    `(f) Upfront Cost Share-

      `(1) IN GENERAL- Effective beginning on the date of enactment of this paragraph, subject to paragraph (3), the cost share obligations required by this section shall be met through an upfront cost share from the Basin Funds, in the same proportions as the cost allocations required under subsection (a), as provided in paragraph (2).

      `(2) BASIN STATES PROGRAM- The Secretary shall expend the required cost share funds described in paragraph (1) through the Basin States Program for salinity control activities established under section 202(a)(7).

      `(3) EXISTING SALINITY CONTROL ACTIVITIES- The cost share contribution required by this section shall continue to be met through repayment in a manner consistent with this section for all salinity control activities for which repayment was commenced prior to the date of enactment of this paragraph.'.

SEC. 2612. TECHNICAL CORRECTIONS TO THE FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT.

    (a) Pesticide Registration Service Fees- Section 33 of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-8) is amended--

      (1) in subsection (b)(7)--

        (A) in subparagraph (D)--

          (i) by striking clause (i) and inserting the following:

          `(i) IN GENERAL- The Administrator may exempt from, or waive a portion of, the registration service fee for an application for minor uses for a pesticide.'; and

          (ii) in clause (ii), by inserting `or exemption' after `waiver'; and

        (B) in subparagraph (E)--

          (i) in the paragraph heading, by striking `WAIVER' and inserting `EXEMPTION';

          (ii) by striking `waive the registration service fee for an application' and inserting `exempt an application from the registration service fee'; and

          (iii) in clause (ii), by striking `waiver' and inserting `exemption'; and

      (2) in subsection (m)(2), by striking `2008' each place it appears and inserting `2012'.

    (b) Effective Date- The amendments made by subsection (a) take effect on October 1, 2007.

TITLE III--TRADE

Subtitle A--Food for Peace Act

SEC. 3001. SHORT TITLE.

    (a) In General- Section 1 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 note; 104 Stat. 3633) is amended by striking `Agricultural Trade Development and Assistance Act of 1954' and inserting `Food for Peace Act'.

    (b) Conforming Amendments-

      (1) IN GENERAL- Each provision of law described in paragraph (2) is amended--

        (A) by striking `Agricultural Trade Development and Assistance Act of 1954' each place it appears and inserting `Food for Peace Act'; and

        (B) in each section heading, by striking `agricultural trade development and assistance act of 1954' each place it appears and inserting `food for peace act'.

      (2) PROVISIONS OF LAW- The provisions of law referred to in paragraph (1) are the following:

        (A) The Agriculture and Food Act of 1981 (Public Law 97-98; 95 Stat. 1213).

        (B) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).

        (C) Section 9(a) of the Military Construction Codification Act (7 U.S.C. 1704c).

        (D) Section 201 of the Africa: Seeds of Hope Act of 1998 (7 U.S.C. 1721 note; Public Law 105-385).

        (E) The Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1 et seq.).

        (F) The Food for Progress Act of 1985 (7 U.S.C. 1736o).

        (G) Section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1).

        (H) Sections 605B and 606C of the Act of August 28, 1954 (commonly known as the `Agricultural Act of 1954') (7 U.S.C. 1765b, 1766b).

        (I) Section 206 of the Agricultural Act of 1956 (7 U.S.C. 1856).

        (J) The Agricultural Competitiveness and Trade Act of 1988 (7 U.S.C. 5201 et seq.).

        (K) The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.).

        (L) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.).

        (M) Section 301 of title 13, United States Code.

        (N) Section 8 of the Endangered Species Act of 1973 (16 U.S.C. 1537).

        (O) Section 604 of the Enterprise for the Americas Act of 1992 (22 U.S.C. 2077).

        (P) Section 5 of the International Health Research Act of 1960 (22 U.S.C. 2103).

        (Q) The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.).

        (R) The Horn of Africa Recovery and Food Security Act (22 U.S.C. 2151 note; Public Law 102-274).

        (S) Section 105 of the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2455).

        (T) Section 35 of the Foreign Military Sales Act (22 U.S.C. 2775).

        (U) The Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).

        (V) Section 1707 of the Cuban Democracy Act of 1992 (22 U.S.C. 6006).

        (W) The Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.).

        (X) Section 902 of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201).

        (Y) Chapter 553 of title 46, United State Code.

        (Z) Section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

        (AA) The Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3359).

        (BB) Section 738 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 Stat 1549A-34).

    (c) References- Any reference in any Federal, State, tribal, or local law (including regulations) to the `Agricultural Trade Development and Assistance Act of 1954' shall be considered to be a reference to the `Food for Peace Act'.

SEC. 3002. UNITED STATES POLICY.

    Section 2 of the Food for Peace Act (7 U.S.C. 1691) is amended--

      (1) by striking paragraph (4); and

      (2) by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively.

SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

    Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b)) is amended by striking `(b)' and all that follows through paragraph (1) and inserting the following:

    `(b) Sense of Congress- It is the sense of Congress that--

      `(1) in negotiations with other countries at the Food Aid Convention, the World Trade Organization, the United Nations Food and Agriculture Organization, and other appropriate venues, the President shall--

        `(A) seek commitments of higher levels of food aid by donors in order to meet the legitimate needs of developing countries;

        `(B) ensure, to the maximum extent practicable, that humanitarian nongovernmental organizations, recipient country governments, charitable bodies, and international organizations shall continue--

          `(i) to be eligible to receive resources based on assessments of need conducted by those organizations and entities; and

          `(ii) to implement food aid programs in agreements with donor countries; and

        `(C) ensure, to the maximum extent practicable, that options for providing food aid for emergency and nonemergency, or chronic, needs shall not be subject to limitation, including in-kind commodities, provision of funds for commodity procurement, and monetization of commodities, on the condition that the provision of those commodities or funds--

          `(i) is based on assessments of need and intended to benefit the food security of or otherwise assist recipients, and

          `(ii) is provided in a manner that avoids disincentives to local agricultural production and marketing and with minimal potential for disruption of commercial markets; and'.

SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

    (a) Title I of the Food for Peace Act (7 U.S.C. 1701 et seq.) is amended in the title heading, by striking `TRADE AND DEVELOPMENT ASSISTANCE' and inserting `ECONOMIC ASSISTANCE AND FOOD SECURITY'.

    (b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) is amended in the section heading, by striking `trade and development assistance' and inserting `economic assistance and food security'.

SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

    Section 102 of the Food for Peace Act (7 U.S.C. 1702) is amended--

      (1) in subsection (a)--

        (A) by striking paragraph (1); and

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

      (2) by striking subsection (c).

SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

    Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c)) is amended--

      (1) in the matter preceding paragraph (1), by inserting `, through agreements with recipient governments, private voluntary organizations, and cooperatives,' after `developing country';

      (2) in paragraph (2)--

        (A) in subparagraph (C), by striking `and' at the end;

        (B) in subparagraph (D), by striking the period at the end and inserting `; and'; and

        (C) by adding at the end the following:

        `(E) the improvement of the trade capacity of the recipient country.';

      (3) by striking paragraphs (1), (3), (4), (5), and (6); and

      (4) by redesignating paragraphs (2), (7), (8), and (9) as paragraphs (1), (2), (3), and (4), respectively.

SEC. 3007. GENERAL AUTHORITY.

    Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--

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

      `(1) address famine and respond to emergency food needs arising from man-made and natural disasters;';

      (2) in paragraph (5), by inserting `food security and support' after `promote'; and

      (3) by striking paragraph (6) and inserting the following:

      `(6) protect livelihoods, provide safety nets for food insecure populations, and encourage participation in educational, training, and other productive activities.'.

SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202 of the Food for Peace Act (7 U.S.C. 1722) is amended--

      (1) in subsection (b)(2), by striking `may not deny a request for funds' and inserting `may not use as a sole rationale for denying a request for funds';

      (2) in subsection (e)(1)--

        (A) in the matter preceding subparagraph (A)--

          (i) by striking `Of the funds made available in' and inserting `Of the total amount of funds made available from all sources for'; and

          (ii) by striking `not less than 5 percent nor more than 10 percent' and inserting `not less than 7.5 percent';

        (B) in subparagraph (A), by striking `and' at the end;

        (C) by striking subparagraph (B) and inserting the following:

        `(B) meeting specific administrative, management, personnel, programmatic, and operational activities, and internal transportation and distribution costs for carrying out new and existing programs in foreign countries under this title; and'

        (D) by adding at the end the following:

        `(C) improving and implementing methodologies for food aid programs, including needs assessments, monitoring, and evaluation.'; and

      (3) by striking subsection (h) and inserting the following:

    `(h) Food Aid Quality-

      `(1) IN GENERAL- The Administrator shall use funds made available for fiscal year 2008 and subsequent fiscal years to carry out this title--

        `(A) to assess the types and quality of agricultural commodities and products donated for food aid;

        `(B) to adjust products and formulations as necessary to cost-effectively meet nutrient needs of target populations; and

        `(C) to pretest prototypes.

      `(2) ADMINISTRATION- The Administrator--

        `(A) shall carry out this subsection in consultation with and through an independent entity with proven impartial expertise in food aid commodity quality enhancements;

        `(B) may enter into contracts to obtain the services of such an entity; and

        `(C) shall consult with the Food Aid Consultative Group on how to carry out this subsection.

      `(3) REPORTS- The Administrator shall submit to the Committees on Agriculture and Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate--

        `(A) a report that describes the activities of the Administrator in carrying out paragraph (1) for fiscal year 2008; and

        `(B) an annual report that describes the progress of the Administrator in addressing food aid quality issues.'.

SEC. 3009. MICROENTERPRISE ACTIVITIES.

    Section 203(d)(2) of the Food for Peace Act (7 U.S.C.1723(d)(2)) is amended by inserting `, including activities involving microenterprise and village banking,' after `other developmental activities'.

SEC. 3010. LEVELS OF ASSISTANCE.

    Section 204(a)(1) of the Food for Peace Act (7 U.S.C. 1724(a)(1)) is amended by striking `2007' and inserting `2012'.

SEC. 3011. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended--

      (1) in subsection (b)--

        (A) in paragraph (5), by striking `and' at the end;

        (B) in paragraph (6), by striking the period and inserting `; and'; and

        (C) by inserting at the end the following:

      `(7) representatives from the maritime transportation sector involved in transporting agricultural commodities overseas for programs under this Act.';

      (2) in subsection (d)--

        (A) by striking `In preparing' and inserting the following:

      `(1) IN GENERAL- In preparing';

        (B) by striking `The Administrator' and inserting the following:

      `(2) BIANNUAL CONSULTATION- The Administrator'; and

        (C) by adding at the end the following:

      `(3) CONSULTATION FOR DRAFT REGULATIONS- In addition to the meetings required under paragraph (2), the Administrator shall consult and meet with the Group--

        `(A) before issuing the draft regulations to carry out the program described in section 209; and

        `(B) during the public comment period relating to those draft regulations.'; and

      (3) in subsection (f), by striking `2007' and inserting `2012'.

SEC. 3012. ADMINISTRATION.

    Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is amended--

      (1) in subsection (a)(3), by striking `must be met for the approval of such proposal' and inserting `should be considered for a proposal in a future fiscal year';

      (2) in subsection (c), by striking paragraph (3);

      (3) by striking subsection (d) and inserting the following:

    `(d) Timely Provision of Commodities- The Administrator, in consultation with the Secretary, shall develop procedures that ensure expedited processing of commodity call forwards in order to provide commodities overseas in a timely manner and to the extent feasible, according to planned delivery schedules.';

      (4) in subsection (e)(2), by striking `December 1' and inserting `June 1'; and

      (5) by adding at the end the following:

    `(f) Program Oversight-

      `(1) IN GENERAL- Funds made available to carry out this title may be used to pay the expenses of the United States Agency for International Development associated with program monitoring, evaluation, assessments, food aid data collection, and food aid information management and commodity reporting systems.

      `(2) CONTRACT AUTHORITY-

        `(A) IN GENERAL- Subject to subparagraphs (B) and (C) and notwithstanding any other provision of law, in carrying out administrative and management activities related to the implementation of programs under this title, the Administrator may contract with 1 or more individuals for personal service to be performed in recipient countries or neighboring countries.

        `(B) PROHIBITION- Individuals contracting with the Administrator under subparagraph (A) shall not be considered to be employees of the United States Government for the purpose of any law administered by the Office of Personnel Management.

        `(C) PERSONAL SERVICE- Subparagraph (A) does not limit the ability of the Administrator to contract with individuals for personal service under section 202(a).

    `(g) Indirect Support Costs to the World Food Program of the United Nations-

      `(1) IN GENERAL- Notwithstanding any other provision of law, in providing assistance under this title, the Administrator may make contributions to the World Food Program of the United Nations to the extent that the contributions are made in accordance with the rules and regulations of that program for indirect cost rates.

      `(2) REPORT- The Administrator shall submit the Committees on Agriculture and Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on the level of the contribution and the reasons for the level.

    `(h) Indirect Support Costs to Cooperating Sponsors- Notwithstanding any other provision of law, the Administrator may pay to a private voluntary organization or cooperative indirect costs associated with any funds received or generated for programs, costs, or activities under this title, on the condition that the indirect costs are consistent with Office of Management and Budget cost principles.

    `(i) Project Reporting-

      `(1) IN GENERAL- In submitting project reports to the Administrator, a private voluntary organization or cooperative shall provide a copy of the report in such form as is necessary for the report to be displayed for public use on the website of the United States Agency for International Development.

      `(2) CONFIDENTIAL INFORMATION- An organization or cooperative described in paragraph (1) may omit any confidential information from the copy of the report submitted for public display under that paragraph.'.

SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED FOODS.

    Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is amended--

      (1) by striking `$3,000,000' and inserting `$8,000,000'; and

      (2) by striking `2007' and inserting `2012'.

SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the following:

`SEC. 136. PILOT PROGRAM FOR LOCAL PURCHASE OF ELIGIBLE COMMODITIES.

    `(a) Definitions- In this section:

      `(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Agency for International Development.

      `(2) ELIGIBLE COMMODITY- The term `eligible commodity' means an agricultural commodity, or the product of an agricultural commodity, that is produced in--

        `(A) the recipient country;

        `(B) a low-income, developing country near the recipient country; or

        `(C) Africa.

      `(3) ELIGIBLE ORGANIZATION- The term `eligible organization' means--

        `(A) an organization that is--

          `(i) described in section 202(d) of the Food for Peace Act; and

          `(ii) subject to guidelines promulgated to carry out this section, including United States audit requirements that are applicable to non-governmental organizations; or

        `(B) an intergovernmental organization, if the organization agrees to be subject to all requirements of this section, including any regulations promulgated or guidelines issued by the Administrator to carry out this section.

      `(4) PILOT PROGRAM- The term `pilot program' means the pilot program established under subsection (b).

    `(b) Establishment- The Administrator shall establish a field-based pilot program for local and regional purchases of eligible commodities in accordance with this section.

    `(c) Purposes- Eligible commodities under the pilot program shall be used solely--

      `(1) to address severe food shortages caused by sudden events, including--

        `(A) earthquakes, floods, and other unforeseen crises; or

        `(B) human-made crises, such as conflicts;

      `(2) to prevent or anticipate increasing food scarcity as the result of slow-onset events, such as drought, crop failures, pests, economic shocks, and diseases that result in an erosion of the capacity of communities and vulnerable populations to meet food needs;

      `(3) to address recovery, resettlement, and reconstruction following 1 or more disasters or emergencies described in paragraph (1) or (2); and

      `(4) to protect and improve livelihoods and food security, provide safety nets for food insecure or undernourished populations, and encourage participation in education and other productive activities.

    `(d) Procurement- Eligible commodities under the pilot program shall for emergency situations be procured through the most effective 1 or more approaches or methodologies that are likely to expedite the provision of food aid to affected populations.

    `(e) Review of Prior Local Cash Purchase Experience-

      `(1) IN GENERAL- Not later than 30 days after the date of enactment of this section, the Administrator shall initiate the process to commission an external review of local cash purchase projects conducted before the date of enactment of this section by other donor countries, private voluntary organizations, and the World Food Program of the United Nations.

      `(2) USE OF REVIEW- The Administrator shall use the results of the review to develop--

        `(A) proposed guidelines under subsection (j); and

        `(B) requests for applications under subsection (f).

      `(3) REPORT- Not later than 270 days after the date of enactment of this section, the Administrator shall submit to the Committees on Agriculture and Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the results of the review.

    `(f) Grants to Eligible Organizations-

      `(1) IN GENERAL- After the promulgation of final guidelines under subsection (j), the Administrator may seek applications from and provide grants to eligible organizations to carry out the pilot program.

      `(2) COMPLETION REQUIREMENT- As a condition of receiving a grant under the pilot program, an eligible organization shall agree--

        `(A) to complete all projects funded through the grant not later than September 30, 2011; and

        `(B) to provide information about the results of the project in accordance with subsection (i).

      `(3) OTHER REQUIREMENTS- Other requirements for submission of proposals for consideration under this title shall apply to the submission of an application for a grant under this section.

    `(g) Project Diversity- In selecting projects to fund under the pilot program, the Administrator shall select a diversity of projects, including--

      `(1) at least 1 project for each of the situations described in subsection (c);

      `(2) at least 1 project carried out jointly with a project funded through grassroots efforts by agricultural producers through eligible United States organizations;

      `(3) projects in both food surplus and food deficit regions, using regional procurement for food deficit regions; and

      `(4) projects in diverse geographical regions, with most, but not all, projects located in Africa.

    `(h) Information Required in Applications- In submitting an application under this section, an eligible organization shall--

      `(1) request funding for up to 3 years; and

      `(2) include in the application--

        `(A) a description of the target population through a needs assessment and sufficient information to demonstrate that the situation is a situation described in subsection (c);

        `(B) an assurance that the local or regional procurement--

          `(i) is likely to expedite the provision of food aid to the affected population; and

          `(ii) would meet the requirements of subsection (d);

        `(C) a description of--

          `(i) the quantities and types of eligible commodities that would be procured;

          `(ii) the rationale for selecting those eligible commodities; and

          `(iii) how the eligible commodities could be procured and delivered in a timely manner;

        `(D) an analysis of the potential impact of the purchase of eligible commodities on the production, pricing, and marketing of the same and similar agricultural commodities in the country and localities in which the purchase will take place;

        `(E) a description of food quality and safety assurance measures; and

        `(F) a monitoring and evaluation plan that ensures collection of sufficient data--

          `(i) to determine the full cost of procurement, delivery, and administration;

          `(ii) to report on the agricultural production, marketing, and price impact of the local or regional purchases, including the impact on low-income consumers; and

          `(iii) to provide sufficient information to support the completion of the report described in subsection (i).

    `(i) Independent Evaluation and Report-

      `(1) IN GENERAL- The Administrator shall--

        `(A) arrange for an independent evaluation of the pilot program; and

        `(B) provide access to all records and reports for the completion of the evaluation.

      `(2) REPORT- Not later than 4 years after the date of enactment of this section, the Administrator shall submit to the Committees on Agriculture and Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that--

        `(A) includes the analysis and findings of the independent evaluation;

        `(B) assesses whether the requirements of this section have been met;

        `(C) describes for each of the relevant markets in which the commodities were purchased--

          `(i) prevailing and historic supply, demand, and price movements;

          `(ii) impact on producer and consumer prices;

          `(iii) government market interferences and other donor activities that may have affected the supply and demand in the area in which the local or regional purchase took place; and

          `(iv) the quantities and types of eligible commodities procured in each market, the time frame for procurement, and the complete costs of the procurement (including procurement, storage, handling, transportation, and administrative costs);

        `(D) assesses the impact of different methodologies and approaches on local and regional agricultural producers (including large and small producers), markets, low-income consumers, and program recipients;

        `(E) assesses the time elapsed from initiation of the procurement process to delivery;

        `(F) compares different methodologies used in terms of--

          `(i) the benefits to local agriculture;

          `(ii) the impact on markets and consumers;

          `(iii) the time for procurement and delivery;

          `(iv) quality and safety assurances; and

          `(v) implementation costs; and

        `(G) to the extent adequate information is available, includes a comparison of the different methodologies used by other donors to make local and regional purchases, including purchases conducted through the World Food Program of the United Nations.

    `(j) Guidelines- Prior to approving projects or the procurement of eligible commodities under this section, not later than 1 year after the date of enactment of this section, the Administrator shall issue guidelines to carry out this section.

    `(k) Authorization of Appropriations-

      `(1) IN GENERAL- There are authorized to be appropriated $25,000,000 for each of the fiscal years 2009 through 2012 to carry out this section.

      `(2) AVAILABILITY- Any amounts appropriated pursuant to paragraph (1) shall remain available until expended.'.

SEC. 3015. GENERAL AUTHORITIES AND REQUIREMENTS.

    (a) In General- Section 401 of the Food for Peace Act (7 U.S.C. 1731) is amended--

      (1) by striking subsection (a);

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

      (3) in subsection (b) (as so redesignated), by striking `(b)(1)' and inserting `(a)(1)'.

    (b) Conforming Amendments-

      (1) Section 406(a) of the Food for Peace Act (7 U.S.C. 1736(a)) is amended by striking `(that have been determined to be available under section 401(a))'.

      (2) Subsection (e)(1) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(e)(1)) is amended by striking `determined to be available under section 401 of the Food for Peace Act'.

SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

    Section 406(b)(2) of the Food for Peace Act (7 U.S.C. 1736(b)(2)) is amended by inserting `, including the costs of carrying out section 415' before the semicolon.

SEC. 3017. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is amended--

      (1) in subsection (c)(4)--

        (A) by striking `2007' and inserting `2012';

        (B) by striking `$2,000,000' and inserting `$4,000,000'; and

        (C) by adding at the end the following:

      `(5) NONEMERGENCY OR MULTIYEAR AGREEMENTS- Annual resource requests for ongoing nonemergency or multiyear agreements under title II shall be finalized not later than October 1 of the fiscal year in which the agricultural commodities will be shipped under the agreement.'; and

      (2) in subsection (f)--

        (A) in paragraph (2)--

          (i) in subparagraph (B), by inserting `, and the amount of funds, tonnage levels, and types of activities for nonemergency programs under title II' before the semicolon;

          (ii) in subparagraph (C), by inserting `, and a general description of the projects and activities implemented' before the semicolon; and

          (iii) in subparagraph (D), by striking `achieving food security' and inserting `reducing food insecurity'; and

        (B) in paragraph (3)--

          (i) by striking `shall submit' and inserting the following: `shall--

        `(A) submit';

          (ii) by striking `January 15' and inserting `April 1'; and

          (iii) by striking `of the Senate'. and inserting the following: `of the Senate; and

        `(B) make the reports available to the public by electronic and other means.'.

SEC. 3018. EXPIRATION DATE.

    Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended by striking `2007' and inserting `2012'.

SEC. 3019. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended by striking subsection (b) and inserting the following:

    `(b) Minimum Level of Nonemergency Food Assistance- For each of fiscal years 2008 through 2012, of the amounts made available to carry out emergency and nonemergency food assistance programs under title II, not less than $600,000,000 for each of those fiscal years shall be obligated and expended for nonemergency food assistance programs under title II.'.

SEC. 3020. MICRONUTRIENT FORTIFICATION PROGRAMS.

    Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1), by striking `Not later than September 30, 2003, the Administrator, in consultation with the Secretary' and inserting `Not later than September 30, 2008, the Secretary, in consultation with the Administrator'; and

        (B) in paragraph (2)--

          (i) in subparagraph (A), by adding `and' after the semicolon at the end; and

          (ii) by striking subparagraphs (B) and (C) and inserting the following:

        `(B) assess and apply technologies and systems to improve and ensure the quality, shelf life, bioavailability, and safety of fortified food aid agricultural commodities, and products of those agricultural commodities, that are provided to developing countries, using recommendations included in the report entitled `Micronutrient Compliance Review of Fortified Public Law 480 Commodities', published in October 2001, with implementation by an independent entity with proven impartial experience and expertise in food aid commodity quality enhancements.';

      (2) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively; and

      (3) in subsection (c) (as redesignated by paragraph (2), by striking `2007' and inserting `2012'.

SEC. 3021. GERMPLASM CONSERVATION.

    Title IV of the Food for Peace Act (7 U.S.C. 1731 et seq.) is amended by adding at the end the following:

`SEC. 417. GERMPLASM CONSERVATION.

    `(a) Contribution- The Administrator of the United States Agency for International Development shall contribute funds to endow the Global Crop Diversity Trust (referred to in this section as the `Trust') to assist in the conservation of genetic diversity in food crops through the collection and storage of the germplasm of food crops in a manner that provides for--

      `(1) the maintenance and storage of seed collections;

      `(2) the documentation and cataloguing of the genetics and characteristics of conserved seeds to ensure efficient reference for researchers, plant breeders, and the public;

      `(3) building the capacity of seed collection in developing countries;

      `(4) making information regarding crop genetic data publicly available for researchers, plant breeders, and the public (including through the provision of an accessible Internet website);

      `(5) the operation and maintenance of a back-up facility in which are stored duplicate samples of seeds, in the case of natural or man-made disasters; and

      `(6) oversight designed to ensure international coordination of those actions and efficient, public accessibility to that diversity through a cost-effective system.

    `(b) United States Contribution Limit- The aggregate contributions of funds of the Federal Government provided to the Trust shall not exceed 25 percent of the total of the funds contributed to the Trust from all sources.

    `(c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $60,000,000 for the period of fiscal years 2008 through 2012.'.

SEC. 3022. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

    Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended by striking `2007' each place it appears and inserting `2012'.

Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Repeal of Supplier Credit Guarantee Program and Intermediate Export Credit Guarantee Program- Section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1), by striking `The Commodity' and inserting `Subject to paragraph (2), the Commodity'; and

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

      `(2) TENURE- Beginning with the 2012 fiscal year, credit terms described in paragraph (1) may not exceed a 180-day period.';

      (2) by striking subsections (b) and (c);

      (3) by redesignating subsections (d) through (l) as subsections (b) through (j), respectively; and

      (4) by adding at the end the following:

    `(k) Administration-

      `(1) DEFINITION OF LONG TERM- In this subsection, the term `long term' means a period of 10 or more years.

      `(2) GUARANTEES- In administering the export credit guarantees authorized under this section, the Secretary shall--

        `(A) maximize the export sales of agricultural commodities;

        `(B) maximize the export credit guarantees that are made available and used during the course of a fiscal year;

        `(C) develop an approach to risk evaluation that facilitates accurate country risk designations and timely adjustments to the designations (on an ongoing basis) in response to material changes in country risk conditions, with ongoing opportunity for input and evaluation from the private sector;

        `(D) adjust risk-based guarantees as necessary to ensure program effectiveness and United States competitiveness; and

        `(E) work with industry to ensure that risk-based fees associated with the guarantees cover, but do not exceed, the operating costs and losses over the long term.'.

    (b) Conforming Amendments- The Agricultural Trade Act of 1978 is amended--

      (1) in section 202 (7 U.S.C. 5622)--

        (A) in subsection (b)(4) (as redesignated by subsection (a)(3)), by striking `, consistent with the provisions of subsection (c)';

        (B) in subsection (d) (as redesignated by subsection (a)(3))--

          (i) by striking `(1)' and all that follows through `The Commodity' and inserting `The Commodity'; and

          (ii) by striking paragraph (2); and

        (C) in subsection (g)(2) (as redesignated by subsection (a)(3)), by striking `subsections (a) and (b)' and inserting `subsection (a)'; and

      (2) in section 211, by striking subsection (b) and inserting the following:

    `(b) Export Credit Guarantee Programs- The Commodity Credit Corporation shall make available for each of fiscal years 1996 through 2012 not less than $5,000,000,000 in credit guarantees under section 202(a).'.

SEC. 3102. MARKET ACCESS PROGRAM.

    (a) Organic Commodities- Section 203(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after `agricultural commodities' the following: `(including commodities that are organically produced (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502)))'.

    (b) Funding- Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking `, and $200,000,000 for each of fiscal years 2006 and 2007' and inserting `$200,000,000 for each of fiscal years 2006 and 2007, $210,000,000 for fiscal year 2008, $220,000,000 for fiscal year 2009, $230,000,000 for fiscal year 2010, $240,000,000 for fiscal year 2011, and $200,000,000 for fiscal year 2012 and each subsequent fiscal year'.

SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

    (a) In General- Section 301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is repealed.

    (b) Conforming Amendments- The Agricultural Trade Act of 1978 is amended--

      (1) in title III, by striking the title heading and inserting the following:

`TITLE III--BARRIERS TO EXPORTS';

      (2) by redesignating section 302 as section 301;

      (3) by striking section 303;

      (4) in section 401 (7 U.S.C. 5661)--

        (A) in subsection (a), by striking `section 201, 202, or 301' and inserting `section 201 or 202'; and

        (B) in subsection (b), by striking `sections 201, 202, and 301' and inserting `sections 201 and 202'; and

      (5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking `sections 201, 202, 203, and 301' and inserting `sections 201, 202, and 203'.

SEC. 3104. VOLUNTARY CERTIFICATION OF CHILD LABOR STATUS OF AGRICULTURAL IMPORTS.

    Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C. 5674) is amended by adding at the end the following:

    `(d) Reducing Child Labor and Forced Labor-

      `(1) DEFINITIONS- In this subsection:

        `(A) CHILD LABOR- The term `child labor' means the worst forms of child labor as defined in International Labor Convention 182, the Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labor, done at Geneva on June 17, 1999.

        `(B) FORCED LABOR- The term `forced labor' means all work or service--

          `(i) that is exacted from any individual under menace of any penalty for non-performance of the work or service, and for which the individual does not offer himself or herself voluntarily, by coercion, debt bondage, involuntary servitude (as those terms are defined in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102)); and

          `(ii) by 1 or more individuals who, at the time of production, were being subjected to a severe form of trafficking in persons (as that term is defined in that section).

      `(2) DEVELOPMENT OF STANDARD SET OF PRACTICES-

        `(A) IN GENERAL- The Secretary, in coordination with the Secretary of Labor, shall develop a standard set of practices for the production of agricultural commodities that are imported, sold, or marketed in the United States in order to reduce the likelihood that the agricultural commodities are produced with the use of forced labor or child labor.

        `(B) REQUIREMENT- The standard set of practices shall be developed in accordance with the requirements of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

      `(3) REQUIREMENTS- Not later than 3 years after the date of enactment of this subsection, the Secretary shall, with respect to the standard set of practices developed under paragraph (2), promulgate proposed regulations that shall, at a minimum, establish a voluntary certification program to enforce this subsection by--

        `(A) requiring agricultural commodity traceability and inspection at all stages of the supply chain;

        `(B) allowing for multistakeholder participation in the certification process;

        `(C) providing for annual onsite inspection by a certifying agent, who shall be certified in accordance with the International Organization for Standardization Guide 65, of each affected worksite and handling operation;

        `(D) incorporating a comprehensive conflict of interest policy for certifying agents, in accordance with section 2116(h) of the Organic Foods Production Act of 1990 (7 U.S.C. 6515(h)); and

        `(E) providing an anonymous grievance procedure that--

          `(i) is accessible by third parties to allow for the identification of new or continuing violations of the regulations; and

          `(ii) provides protections for whistleblowers.

      `(4) REPORTING REQUIREMENT- Not later than 180 days after the date of enactment of this subsection, and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report on the development and implementation of the standard set of practices under this subsection.'.

SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5723(a)) is amended by striking `amount of $34,500,000 for each of fiscal years 2002 through 2007' and inserting `amount of--

      `(1) $39,500,000 for each of fiscal years 2008 and 2009;

      `(2) $44,500,000 for fiscal year 2010; and

      `(3) $34,500,000 for fiscal year 2011 and each subsequent fiscal year.'.

SEC. 3106. FOOD FOR PROGRESS ACT OF 1985.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--

      (1) by striking `2007' each place it appears and inserting `2012';

      (2) in subsection (b)(5)--

        (A) by striking subparagraphs (A), (B), and (F);

        (B) in subparagraph (D), by inserting `and' after the semicolon;

        (C) in subparagraph (E), by striking `; and' and inserting a period; and

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

      (3) in subsection (f), by striking paragraph (3) and inserting the following:

      `(3) FUNDING LIMITATIONS- With respect to eligible commodities made available under section 416(b) of the Agricultural Act of 1949 (42 U.S.C. 1431(b)), unless authorized in advance in appropriation Acts--

        `(A) for each of fiscal years 2008 through 2010, no funds of the Corporation in excess of $48,000,000 (exclusive of the cost of eligible commodities) may be used to carry out this section; and

        `(B) for fiscal year 2011 and each fiscal year thereafter, no funds of the Corporation in excess of $40,000,000 (exclusive of the cost of eligible commodities) may be used to carry out this section.'.

SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION PROGRAM.

    Section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--

      (1) in subsection (b), by inserting `in the Department of Agriculture' after `establish a program';

      (2) in subsections (c)(2)(B), (f)(1), (h), (i), and (l)(1) by striking `President' each place it appears and inserting `Secretary';

      (3) in subsection (d), by striking `The President shall designate 1 or more Federal agencies' and inserting `The Secretary shall';

      (4) in paragraph (f)(2), by striking `implementing agency' and inserting `Secretary'; and

      (5) in subsection (l)(2), by striking `such sums' and all that follows through `2007' and inserting `$300,000,000 for each of fiscal years 2008 through 2012'.

Subtitle C--Miscellaneous

SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) is amended--

      (1) in subsection (a), by striking `a trust stock' and all that follows through the end of the subsection and inserting the following: `a trust of commodities, for use as described in subsection (c), to consist of--

      `(1) quantities equivalent to not more than 4,000,000 metric tons of commodities; or

      `(2) any combination of funds and commodities equivalent to not more than 4,000,000 metric tons of commodities.';

      (2) in subsection (b)--

        (A) in paragraph (1)--

          (i) in subparagraph (B)--

            (I) by striking `replenish' each place it appears and inserting `reimburse'; and

            (II) by striking `replenished' and inserting `reimbursed'; and

          (ii) by striking subparagraph (D) and inserting the following:

        `(D) funds made available--

          `(i) under paragraph (2)(B);

          `(ii) as a result of an exchange of any commodity held in the trust for an equivalent amount of funds from--

            `(I) the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.);

            `(II) the McGovern-Dole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1); or

            `(III) the market, if the Secretary determines that such a sale of the commodity on the market will not unduly disrupt domestic markets; and

          `(iii) in the course of management of the trust or to maximize the value of the trust, in accordance with subsection (d)(3).'; and

        (B) in paragraph (2)(B)--

          (i) in the matter preceding clause (i), by striking `replenish' and inserting `reimburse';

          (ii) in clause (i)--

            (I) by striking `2007' each place it appears and inserting `2012';

            (II) by striking `(c)(2)' and inserting `(c)(1)'; and

            (III) by striking `and' at the end;

          (iii) in clause (ii), by striking the period at the end and inserting `; or'; and

          (iv) by adding at the end the following:

          `(iii) from funds accrued through the management of the trust under subsection (d).';

      (3) in subsection (c)--

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

      `(1) RELEASES FOR EMERGENCY ASSISTANCE-

        `(A) DEFINITION OF EMERGENCY-

          `(i) IN GENERAL- In this paragraph, the term `emergency' means an urgent situation--

            `(I) in which there is clear evidence that an event or series of events described in clause (ii) has occurred--

`(aa) that causes human suffering or imminently threatens human lives or livelihoods; and

`(bb) for which a government concerned has not the means to remedy; or

            `(II) created by a demonstrably abnormal event or series of events that produces dislocation in the lives of residents of a country or region of a country on an exceptional scale.

          `(ii) EVENT OR SERIES OF EVENTS- An event or series of events referred to in clause (i) includes 1 or more of--

            `(I) a sudden calamity, such as an earthquake, flood, locust infestation, or similar unforeseen disaster;

            `(II) a human-made emergency resulting in--

`(aa) a significant influx of refugees;

`(bb) the internal displacement of populations; or

`(cc) the suffering of otherwise affected populations;

            `(III) food scarcity conditions caused by slow-onset events, such as drought, crop failure, pest infestation, and disease, that result in an erosion of the ability of communities and vulnerable populations to meet food needs; and

            `(IV) severe food access or availability conditions resulting from sudden economic shocks, market failure, or economic collapse, that result in an erosion of the ability of communities and vulnerable populations to meet food needs.

        `(B) RELEASES-

          `(i) IN GENERAL- Any funds or commodities held in the trust may be released to provide assistance under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.)--

            `(I) to meet emergency needs, including during the period immediately preceding the emergency;

            `(II) to respond to an emergency; or

            `(III) for recovery and rehabilitation after an emergency.

          `(ii) PROCEDURE- Subject to subparagraph (B), a release under clause (i) shall be carried out in the same manner, and pursuant to the same authority as provided in title II of that Act.

        `(C) INSUFFICIENCY OF OTHER FUNDS- The funds and commodities held in the trust shall be made immediately available on a determination by the Administrator that funds available for emergency needs under title II of that Act (7 U.S.C. 1721 et seq.) for a fiscal year are insufficient to meet emergency needs during the fiscal year.'; and

        (B) by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively;

      (4) in subsection (d)--

        (A) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting the subparagraphs appropriately;

        (B) by striking the subsection designation and heading and all that follows through `provide--' and inserting the following:

    `(d) Management of Trust-

      `(1) IN GENERAL- The Secretary shall provide for the management of eligible commodities and funds held in the trust in a manner that is consistent with maximizing the value of the trust, as determined by the Secretary.

      `(2) ELIGIBLE COMMODITIES- The Secretary shall provide--';

        (C) in paragraph (2) (as redesignated by subparagraph (B))--

          (i) in subparagraph (B) (as redesignated by subparagraph (A)), by striking `and' at the end;

          (ii) in subparagraph (C) (as redesignated by subparagraph (A)), by striking the period at the end and inserting `; and'; and

          (iii) by adding at the end the following:

        `(D) for the management of price risks associated with commodities held or potentially held in the trust.'; and

        (D) by adding at the end the following:

      `(3) FUNDS-

        `(A) REQUIREMENT- The Secretary shall maximize the value of funds held in the trust, to the maximum extent practicable.

        `(B) RELEASES ON EMERGENCY- If any commodity is released from the trust in the case of an emergency under subsection (c), the Secretary shall transfer to the trust funds of the Commodity Credit Corporation in an amount equal to, as determined by the Secretary, the amount of storage charges that will be saved by Commodity Credit Corporation due to the emergency release.

        `(C) EXCHANGES- If any commodity held in the trust is exchanged for funds under subsection (b)(1)(D)(ii)--

          `(i) the funds shall be held in the trust until the date on which the funds are released in the case of an emergency under subsection (c); and

          `(ii) the Secretary shall transfer to the trust funds of the Commodity Credit Corporation in an amount equal to, as determined by the Secretary, the amount of storage charges that will be saved by Commodity Credit Corporation due to the exchange.

        `(D) INVESTMENT- The Secretary--

          `(i) may invest funds held in the trust in any short-term obligation of the United States or any other low-risk short-term instrument or security insured by the Federal Government in which a regulated insurance company may invest under the laws of the District of Columbia; and

          `(ii) shall not invest any funds held in the trust in real estate.';

      (5) in subsection (f)(2)(A), by striking `replenish' and inserting `reimburse'; and

      (6) in subsection (h)--

        (A) in paragraph (1), by striking `replenish' and inserting `reimburse'; and

        (B) in each of paragraphs (1) and (2), by striking `2007' each place it appears and inserting `2012'.

SEC. 3202. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended--

      (1) in subsection (a), by striking `2007' and inserting `2012';

      (2) in subsection (b)--

        (A) in the first sentence, by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;

        (B) by striking `A portion' and inserting the following:

      `(1) IN GENERAL- A portion';

        (C) in the second sentence, by striking `The Commodity Credit Corporation' and inserting the following:

      `(2) PRIORITY- The Commodity Credit Corporation'; and

        (D) by adding at the end the following:

      `(3) CONSTRUCTION WAIVER- The Secretary may waive any applicable requirements relating to the use of United States goods in the construction of a proposed facility, if the Secretary determines that--

        `(A) goods from the United States are not available; or

        `(B) the use of goods from the United States is not practicable.

      `(4) TERM OF GUARANTEE- A facility payment guarantee under this subsection shall be for a term that is not more than the lesser of--

        `(A) the term of the depreciation schedule of the facility assisted; or

        `(B) 20 years.'; and

      (3) in subsection (d)(1)(A)(i) by striking `2007' and inserting `2012'.

SEC. 3203. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    Section 1543A(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5679(d)) is amended by striking `2007' and inserting `2012'.

SEC. 3204. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE DISPUTES.

    (a) In General- The Secretary may provide monitoring, analytic support, and other technical assistance to limited resource persons that are involved in trading agricultural commodities, as determined by the Secretary, to reduce trade barriers to the persons.

    (b) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.

SEC. 3205. IMPORTATION OF LIVE DOGS.

    (a) In General- The Animal Welfare Act is amended by adding after section 17 (7 U.S.C. 2147) the following:

`SEC. 18. IMPORTATION OF LIVE DOGS.

    `(a) Definitions- In this section:

      `(1) IMPORTER- The term `importer' means any person who, for purposes of resale, transports into the United States puppies from a foreign country.

      `(2) RESALE- The term `resale' includes any transfer of ownership or control of an imported dog of less than 6 months of age to another person, for more than de minimis consideration.

    `(b) Requirements-

      `(1) IN GENERAL- Except as provided in paragraph (2), no person shall import a dog into the United States for purposes of resale unless, as determined by the Secretary, the dog--

        `(A) is in good health;

        `(B) has received all necessary vaccinations; and

        `(C) is at least 6 months of age, if imported for resale.

      `(2) EXCEPTION- The Secretary, by regulation, shall provide an exception to any requirement under paragraph (1) in any case in which a dog is imported for--

        `(A) research purposes; or

        `(B) veterinary treatment.

    `(c) Implementation and Regulations- The Secretary, the Secretary of Health and Human Services, the Secretary of Commerce, and the Secretary of Homeland Security shall promulgate such regulations as the Secretaries determine to be necessary to implement and enforce this section.

    `(d) Enforcement- An importer that fails to comply with this section shall--

      `(1) be subject to penalties under section 19; and

      `(2) provide for the care (including appropriate veterinary care), forfeiture, and adoption of each applicable dog, at the expense of the importer.'.

    (b) Effective Date- The amendment made by subsection (a) takes effect on the date of enactment of this Act.

SEC. 3206. REPORT ON THE IMPORTATION OF HIGH PROTEIN FOOD INGREDIENTS.

    (a) In General- Not later than 180 days after the date of enactment of this Act, the Secretary and the Secretary of Health and Human Services (acting through the Commissioner of Food and Drugs), in consultation with the heads of other appropriate Federal agencies, shall jointly submit to Congress a report on imports of high protein food ingredients (including gluten, casein, and milk protein concentrate) into the United States during the 5-year period preceding the date of enactment of this Act.

    (b) Components- The report required under subsection (a) shall include--

      (1) a description of--

        (A) the quantity of each high protein food ingredient imported into the United States; and

        (B) the source of the high protein food ingredients being imported;

      (2) an accounting of the percentage of imports in each category and subcategory of high protein food ingredients that were inspected, including whether the inspections were--

        (A) basic or visual inspections; or

        (B) more intensive inspections or laboratory analyses;

      (3) an evaluation of--

        (A) whether the laboratory tests conducted on high protein food ingredients were able to detect adulteration with other high nitrogen compounds, such as melamine; and

        (B) if some of the laboratory tests were sensitive and others were not sensitive, the number and results for each sensitivity; and

      (4) a survey of whether high protein food ingredients were imported for food uses or non-food uses, including an analysis of--

        (A) whether the food uses were animal or human food uses; and

        (B) whether any non-food or animal feed products could have entered the human food supply, including an analysis of any safeguards to prevent such products from entering the human food supply.

    (c) Availability- As soon as practicable after the completion of the report under subsection (a), the Secretary and the Secretary of Health and Human Services shall make the report available to the public.

SEC. 3207. QUALITY REQUIREMENTS FOR CLEMENTINES.

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

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food and Nutrition Program

PART I--RENAMING OF FOOD STAMP PROGRAM

SEC. 4001. RENAMING OF FOOD STAMP PROGRAM.

    (a) Short Title- The first section of the Food Stamp Act of 1977 (7 U.S.C. 2011 note; Public Law 88-525) is amended by striking `Food Stamp Act of 1977' and inserting `Food and Nutrition Act of 2007'.

    (b) Program- The Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) (as amended by subsection (a)) is amended by striking `food stamp program' each place it appears and inserting `food and nutrition program'.

PART II--IMPROVING PROGRAM BENEFITS

SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM INCOME.

    Section 5(d) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(d)) is amended--

      (1) by striking `(d) Household' and inserting `(d) Exclusions From Income- Household';

      (2) by striking `only (1) any' and inserting `only--

      `(1) any';

      (3) by indenting each of paragraphs (2) through (18) so as to align with the margin of paragraph (1) (as amended by paragraph (1));

      (4) by striking the comma at the end of each of paragraphs (1) through (16) and inserting a semicolon;

      (5) in paragraph (3)--

        (A) by striking `like (A) awarded' and inserting `like--

        `(A) awarded';

        (B) by striking `thereof, (B) to' and inserting `thereof;

        `(B) to'; and

        (C) by striking `program, and (C) to' and inserting `program; and

        `(C) to';

      (6) in paragraph (11), by striking `)), or (B) a' and inserting `)); or

      `(B) a';

      (7) in paragraph (17), by striking `, and' at the end and inserting a semicolon;

      (8) in paragraph (18), by striking the period at the end and inserting `; and'; and

      (9) by adding at the end the following:

      `(19) any additional payment under chapter 5 of title 37, United States Code, or otherwise designated by the Secretary to be appropriate for exclusion under this paragraph, that is received by or from a member of the United States Armed Forces deployed to a designated combat zone, if the additional pay--

        `(A) is the result of deployment to or service in a combat zone; and

        `(B) was not received immediately prior to serving in a combat zone.'.

SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME AMERICANS.

    Section 5(e)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(e)(1)) is amended--

      (1) in subparagraph (A)(ii), by striking `not less than $134' and all that follows through the end of the clause and inserting the following: `not less than--

            `(I) for fiscal year 2008, $140, $239, $197, and $123, respectively; and

            `(II) for fiscal year 2009 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.';

      (2) in subparagraph (B)(ii), by striking `not less than $269' and all that follows through the end of the clause and inserting the following: `not less than--

            `(I) for fiscal year 2008, $281; and

            `(II) for fiscal year 2009 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.'; and

      (3) by adding at the end the following:

        `(C) REQUIREMENT- Each adjustment under subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be based on the unrounded amount for the prior 12-month period.'.

SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.

    Section 5(e)(3)(A) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(e)(3)(A)) is amended by striking `, the maximum allowable level of which shall be $200 per month for each dependent child under 2 years of age and $175 per month for each other dependent,'.

SEC. 4104. ENCOURAGING RETIREMENT AND EDUCATION SAVINGS AMONG FOOD STAMP RECIPIENTS.

    (a) Allowable Financial Resources- Section 5(g) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is amended--

      (1) by striking `(g)(1) The Secretary' and inserting the following:

    `(g) Allowable Financial Resources-

      `(1) TOTAL AMOUNT-

        `(A) IN GENERAL- The Secretary';

      (2) in subparagraph (A) (as designated by paragraph (1))--

        (A) by striking `$2,000' and inserting `$3,500 (as adjusted in accordance with subparagraph (B))'; and

        (B) by striking `$3,000' and inserting `$4,500 (as adjusted in accordance with subparagraph (B))'; and

      (3) by adding at the end the following:

        `(B) ADJUSTMENT FOR INFLATION-

          `(i) IN GENERAL- Beginning on October 1, 2008, and each October 1 thereafter, the amounts in subparagraph (A) shall be adjusted and rounded down to the nearest $250 to reflect changes for the 12-month period ending the preceding June in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

          `(ii) REQUIREMENT- Each adjustment under clause (i) shall be based on the unrounded amount for the prior 12-month period.'.

    (b) Exclusion of Retirement Accounts From Allowable Financial Resources-

      (1) IN GENERAL- Section 5(g)(2)(B)(v) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking `or retirement account (including an individual account)' and inserting `account'.

      (2) MANDATORY AND DISCRETIONARY EXCLUSIONS- Section 5(g) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is amended by adding at the end the following:

      `(7) EXCLUSION OF RETIREMENT ACCOUNTS FROM ALLOWABLE FINANCIAL RESOURCES-

        `(A) MANDATORY EXCLUSIONS- The Secretary shall exclude from financial resources under this subsection the value of--

          `(i) any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of title 5, United States Code; and

          `(ii) any retirement program or account included in any successor or similar provision that may be enacted and determined to be exempt from tax under the Internal Revenue Code of 1986.

        `(B) DISCRETIONARY EXCLUSIONS- The Secretary may exclude from financial resources under this subsection the value of any other retirement plans, contracts, or accounts (as determined by the Secretary).'.

    (c) Exclusion of Education Accounts From Allowable Financial Resources- Section 5(g) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) (as amended by subsection (b)) is amended by adding at the end the following:

      `(8) EXCLUSION OF EDUCATION ACCOUNTS FROM ALLOWABLE FINANCIAL RESOURCES-

        `(A) MANDATORY EXCLUSIONS- The Secretary shall exclude from financial resources under this subsection the value of any funds in a qualified tuition program described in section 529 of the Internal Revenue Code of 1986 or in a Coverdell education savings account under section 530 of that Code.

        `(B) DISCRETIONARY EXCLUSIONS- The Secretary may exclude from financial resources under this subsection the value of any other education programs, contracts, or accounts (as determined by the Secretary).'.

SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

    Section 6(c)(1)(A) of the Food and Nutrition Act of 2007 (7 U.S.C. 2015(c)(1)(A)) is amended--

      (1) by striking `reporting by' and inserting `reporting';

      (2) in clause (i), by inserting `for periods shorter than 4 months by' before `migrant';

      (3) in clause (ii), by inserting `for periods shorter than 4 months by' before `households'; and

      (4) in clause (iii), by inserting `for periods shorter than 1 year by' before `households'.

SEC. 4106. ACCRUAL OF BENEFITS.

    Section 7(i) of the Food and Nutrition Act of 2007 (7 U.S.C. 2016(i)) is amended by adding at the end the following:

      `(12) RECOVERING ELECTRONIC BENEFITS-

        `(A) IN GENERAL- A State agency shall establish a procedure for recovering electronic benefits from the account of a household due to inactivity.

        `(B) BENEFIT STORAGE- A State agency may store recovered electronic benefits off-line in accordance with subparagraph (D), if the household has not accessed the account after 6 months.

        `(C) BENEFIT EXPUNGING- A State agency shall expunge benefits that have not been accessed by a household after a period of 12 months.

        `(D) NOTICE- A State agency shall--

          `(i) send notice to a household the benefits of which are stored under subparagraph (B); and

          `(ii) not later than 48 hours after request by the household, make the stored benefits available to the household.'.

SEC. 4107. ELIGIBILITY FOR UNEMPLOYED ADULTS.

    (a) In General- Section 6(o) of the Food and Nutrition Act of 2007 (7 U.S.C. 2015(o)) is amended--

      (1) in paragraph (2), in the matter preceding subparagraph (A) by striking `3 months' and inserting `6 months'; and

      (2) in paragraph (5), by striking subparagraph (C).

    (b) Effective Date- The amendments made by subsection (a) take effect on October 1, 2008.

SEC. 4108. TRANSITIONAL BENEFITS OPTION.

    Section 11(s)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2020(s)(1)) is amended--

      (1) by striking `benefits to a household'; and inserting `benefits--

        `(A) to a household';

      (2) by striking the period at the end and inserting `; or'; and

      (3) by adding at the end the following:

        `(B) at the option of the State, to a household with children that ceases to receive cash assistance under a State-funded public assistance program.'.

SEC. 4109. MINIMUM BENEFIT.

    (a) In General- Section 8(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 2017(a)) is amended by striking `$10 per month' and inserting `10 percent of the thrifty food plan for a household containing 1 member'.

    (b) Effective Date- The amendment made by subsection (a) takes effect on October 1, 2008.

SEC. 4110. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) In General- Section 27(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 2036(a)) is amended--

      (1) by striking `(a) Purchase of Commodities' and all that follows through `through 2007' and inserting the following:

    `(a) Purchase of Commodities-

      `(1) IN GENERAL- Subject to paragraph (2), for fiscal year 2008 and each fiscal year thereafter'; and

      (2) by adding at the end the following:

      `(2) AMOUNTS- In addition to the amounts made available under paragraph (1), for fiscal year 2008 and each fiscal year thereafter, from amounts made available to carry out this Act, the Secretary shall use to carry out this subsection $110,000,000.'.

    (b) Effective Date- The amendments made by subsection (a) take effect on the date of enactment of this Act.

PART III--IMPROVING PROGRAM OPERATIONS

SEC. 4201. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

    Section 6(k) of the Food and Nutrition Act of 2007 (7 U.S.C. 2015(k)) is amended--

      (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;

      (2) by striking `No member' and inserting the following:

      `(1) IN GENERAL- No member'; and

      (3) by adding at the end the following:

      `(2) PROCEDURES- The Secretary shall issue consistent procedures--

        `(A) to define the terms `fleeing' and `actively seeking' for purposes of this subsection; and

        `(B) to ensure that State agencies use consistent procedures that disqualify individuals whom law enforcement authorities are actively seeking for the purpose of holding criminal proceedings against the individual.'.

SEC. 4202. ISSUANCE AND USE OF PROGRAM BENEFITS.

    (a) In General- Section 7 of the Food and Nutrition Act of 2007 (7 U.S.C. 2016) is amended--

      (1) by striking the section designation and heading and all that follows through `subsection (j)) shall be' and inserting the following:

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

    `(a) In General- Except as provided in subsection (i), EBT cards shall be';

      (2) in subsection (b)--

        (A) by striking `(b) Coupons' and inserting the following:

    `(b) Use-

      `(1) IN GENERAL- Benefits';

        (B) in paragraph (1) (as designated by subparagraph (A)), by striking the second proviso; and

        (C) by adding at the end the following:

      `(2) STUDY- As soon as practicable after the date of enactment of this paragraph, the Comptroller General of the United States shall conduct a study of the effects of the Secretary issuing a rule requiring that benefits shall only be used to purchase food that is included in the most recent applicable thrifty food plan market basket.';

      (3) in subsection (c)--

        (A) by striking `(c) Coupons' and inserting the following:

    `(c) Design-

      `(1) IN GENERAL- EBT cards';

        (B) in the first sentence, by striking `and define their denomination'; and

        (C) by striking the second sentence and inserting the following:

      `(2) PROHIBITION- The name of any public official shall not appear on any EBT card.';

      (4) by striking subsection (d);

      (5) in subsection (e)--

        (A) by striking `coupons' each place it appears and inserting `benefits'; and

        (B) by striking `coupon issuers' each place it appears and inserting `benefit issuers';

      (6) in subsection (f)--

        (A) by striking `coupons' each place it appears and inserting `benefits';

        (B) by striking `coupon issuer' and inserting `benefit issuers';

        (C) by striking `section 11(e)(20)' and inserting `section 11(e)(19).'; and

        (D) by striking `and allotments';

      (7) by striking subsection (g) and inserting the following:

    `(g) Alternative Benefit Delivery-

      `(1) IN GENERAL- If the Secretary determines, in consultation with the Inspector General of the Department of Agriculture, that it would improve the integrity of the food and nutrition program, the Secretary shall require a State agency to issue or deliver benefits using alternative methods.

      `(2) NO IMPOSITION OF COSTS- The cost of documents or systems that may be required by this subsection may not be imposed upon a retail food store participating in the food and nutrition program.

      `(3) DEVALUATION AND TERMINATION OF ISSUANCE OF PAPER COUPONS-

        `(A) COUPON ISSUANCE- Effective on the date of enactment of the Food and Energy Security Act of 2007, no State shall issue any coupon, stamp, certificate, or authorization card to a household that receives food and nutrition benefits under this Act.

        `(B) EBT CARDS- Effective beginning on the date that is 1 year after the date of enactment of the Food and Energy Security Act of 2007, only an EBT card issued under subsection (i) shall be eligible for exchange at any retail food store.

        `(C) DE-OBLIGATION OF COUPONS- Coupons not redeemed during the 1-year period beginning on the date of enactment of the Food and Energy Security Act of 2007 shall--

          `(i) no longer be an obligation of the Federal Government; and

          `(ii) not be redeemable.';

      (8) in subsection (h)(1), by striking `coupons' and inserting `benefits';

      (9) in subsection (i), by adding at the end the following:

      `(12) INTERCHANGE FEES- No interchange fees shall apply to electronic benefit transfer transactions under this subsection.';

      (10) in subsection (j)--

        (A) in paragraph (2)(A)(ii), by striking `printing, shipping, and redeeming coupons' and inserting `issuing and redeeming benefits'; and

        (B) in paragraph (5), by striking `coupon' and inserting `benefit';

      (11) in subsection (k)--

        (A) by striking `coupons in the form of' each place it appears and inserting `program benefits in the form of';

        (B) by striking `a coupon issued in the form of' each place it appears and inserting `program benefits in the form of'; and

        (C) in subparagraph (A), by striking `subsection (i)(11)(A)' and inserting `subsection (h)(11)(A)'; and

      (12) by redesignating subsections (e) through (k) as subsections (d) through (j), respectively.

    (b) Conforming Amendments-

      (1) Section 3 of the Food and Nutrition Act of 2007 (7 U.S.C. 2012) is amended--

        (A) in subsection (a), by striking `coupons' and inserting `benefits';

        (B) by striking subsection (b) and inserting the following:

    `(b) Benefit- The term `benefit' means the value of food and nutrition assistance provided to a household by means of--

      `(1) an electronic benefit transfer under section 7(i); or

      `(2) other means of providing assistance, as determined by the Secretary.';

        (C) in subsection (c), in the first sentence, by striking `authorization cards' and inserting `benefits';

        (D) in subsection (d), by striking `or access device' and all that follows through the end of the subsection and inserting a period;

        (E) in subsection (e)--

          (i) by striking `(e) `Coupon issuer' means' and inserting the following:

    `(e) Benefit Issuer- The term `benefit issuer' means'; and

          (ii) by striking `coupons' and inserting `benefits';

        (F) in subsection (g)(7), by striking `subsection (r)' and inserting `subsection (j)';

        (G) in subsection (i)(5)--

          (i) in subparagraph (B), by striking `subsection (r)' and inserting `subsection (j)'; and

          (ii) in subparagraph (D), by striking `coupons' and inserting `benefits';

        (H) in subsection (j), by striking `(as that term is defined in subsection (p))';

        (I) in subsection (k)--

          (i) in paragraph (1)(A), by striking `subsection (u)(1)' and inserting `subsection (r)(1)';

          (ii) in paragraph (2), by striking `subsections (g)(3), (4), (5), (7), (8), and (9) of this section' and inserting `paragraphs (3), (4), (5), (7), (8), and (9) of subsection (k)'; and

          (iii) in paragraph (3), by striking `subsection (g)(6) of this section' and inserting `subsection (k)(6)';

        (J) in subsection (t), by inserting `, including point of sale devices,' after `other means of access';

        (K) in subsection (u), by striking `(as defined in subsection (g))'; and

        (L) by adding at the end the following:

    `(v) EBT Card- The term `EBT card' means an electronic benefit transfer card issued under section 7(i).'; and

        (M) by redesignating subsections (a) through (v) as subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o), (p), (q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and (i), respectively, and moving so as to appear in alphabetical order.

      (2) Section 4(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 2013(a)) is amended--

        (A) by striking `coupons' each place it appears and inserting `benefits'; and

        (B) by striking `Coupons issued' and inserting `benefits issued'.

      (3) Section 5 of the Food and Nutrition Act of 2007 (7 U.S.C. 2014) is amended--

        (A) in subsection (a), by striking `section 3(i)(4)' and inserting `section 3(n)(4)';

        (B) in subsection (h)(3)(B), in the second sentence, by striking `section 7(i)' and inserting `section 7(h)'; and

        (C) in subsection (i)(2)(E), by striking `, as defined in section 3(i) of this Act,'.

      (4) Section 6 of the Food and Nutrition Act of 2007 (7 U.S.C. 2015) is amended--

        (A) in subsection (b)(1)--

          (i) in subparagraph (B), by striking `coupons or authorization cards' and inserting `program benefits'; and

          (ii) by striking `coupons' each place it appears and inserting `benefits'; and

        (B) in subsection (d)(4)(L), by striking `section 11(e)(22)' and inserting `section 11(e)(19)'.

      (5) Section 7(f) of the Food and Nutrition Act of 2007 (7 U.S.C. 2016(f)) is amended by striking `including any losses' and all that follows through `section 11(e)(20),'.

      (6) Section 8 of the Food and Nutrition Act of 2007 (7 U.S.C. 2017) is amended--

        (A) in subsection (b), by striking `, whether through coupons, access devices, or otherwise'; and

        (B) in subsections (e)(1) and (f), by striking `section 3(i)(5)' each place it appears and inserting `section 3(n)(5)'.

      (7) Section 9 of the Food and Nutrition Act of 2007 (7 U.S.C. 2018) is amended--

        (A) by striking `coupons' each place it appears and inserting `benefits';

        (B) in subsection (a)--

          (i) in paragraph (1), by striking `coupon business' and inserting `benefit transactions'; and

          (ii) by striking paragraph (3) and inserting the following:

      `(3) AUTHORIZATION PERIODS- The Secretary shall establish specific time periods during which authorization to accept and redeem benefits shall be valid under the food and nutrition program.'; and

        (C) in subsection (g), by striking `section 3(g)(9)' and inserting `section 3(k)(9)'.

      (8) Section 10 of the Food and Nutrition Act of 2007 (7 U.S.C. 2019) is amended--

        (A) by striking the section designation and heading and all that follows through `Regulations' and inserting the following:

`SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

    `Regulations';

        (B) by striking `section 3(k)(4) of this Act' and inserting `section 3(p)(4)';

        (C) by striking `section 7(i)' and inserting `section 7(h)'; and

        (D) by striking `coupons' each place it appears and inserting `benefits'.

      (9) Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) is amended--

        (A) in subsection (d)--

          (i) by striking `section 3(n)(1) of this Act' each place it appears and inserting `section 3(t)(1)'; and

          (ii) by striking `section 3(n)(2) of this Act' each place it appears and inserting `section 3(t)(2)';

        (B) in subsection (e)--

          (i) in paragraph (8)(E), by striking `paragraph (16) or (20)(B)' and inserting `paragraph (15) or (18)(B)';

          (ii) by striking paragraphs (15) and (19);

          (iii) by redesignating paragraphs (16) through (18) and (20) through (25) as paragraphs (15) through (17) and (18) through (23), respectively; and

          (iv) in paragraph (17) (as so redesignated), by striking `(described in section 3(n)(1) of this Act)' and inserting `described in section 3(t)(1)';

        (C) in subsection (h), by striking `coupon or coupons' and inserting `benefits';

        (D) by striking `coupon' each place it appears and inserting `benefit';

        (E) by striking `coupons' each place it appears and inserting `benefits';

        (F) in subsection (q), by striking `section 11(e)(20)(B)' and inserting `subsection (e)(18)(B)'

      (10) Section 13 of the Food and Nutrition Act of 2007 (7 U.S.C. 2022) is amended by striking `coupons' each place it appears and inserting `benefits'.

      (11) Section 15 of the Food and Nutrition Act of 2007 (7 U.S.C. 2024) is amended--

        (A) in subsection (a), by striking `coupons' and inserting `benefits';

        (B) in subsection (b)(1)--

          (i) by striking `coupons, authorization cards, or access devices' each place it appears and inserting `benefits';

          (ii) by striking `coupons or authorization cards' and inserting `benefits'; and

          (iii) by striking `access device' each place it appears and inserting `benefit';

        (C) in subsection (c), by striking `coupons' each place it appears and inserting `benefits';

        (D) in subsection (d), by striking `Coupons' and inserting `Benefits';

        (E) by striking subsections (e) and (f);

        (F) by redesignating subsections (g) and (h) as subsections (e) and (f), respectively; and

        (G) in subsection (e) (as so redesignated), by striking `coupon, authorization cards or access devices' and inserting `benefits'.

      (12) Section 16(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(a)) is amended by striking `coupons' each place it appears and inserting `benefits'.

      (13) Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 2026) is amended--

        (A) in subsection (a)(2), by striking `coupon' and inserting `benefit';

        (B) in subsection (b)(1)--

          (i) in subparagraph (B)--

            (I) in clause (iv)--

(aa) in subclause (I), inserting `or otherwise providing benefits in a form not restricted to the purchase of food' after `of cash';

(bb) in subclause (III)(aa), by striking `section 3(i)' and inserting `section 3(n)'; and

(cc) in subclause (VII), by striking `section 7(j)' and inserting `section 7(i)'; and

            (II) in clause (v)--

(aa) by striking `countersigned food coupons or similar'; and

(bb) by striking `food coupons' and inserting `EBT cards'; and

          (ii) in subparagraph (C)(i)(I), by striking `coupons' and inserting `EBT cards';

        (C) in subsection (f), by striking `section 7(g)(2)' and inserting `section 7(f)(2)'; and

        (D) in subsection (j), by striking `coupon' and inserting `benefit'.

      (14) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking `section 3(o)(4)' and inserting `section 3(u)(4)'.

      (15) Section 21 of the Food and Nutrition Act of 2007 (7 U.S.C. 2030) is amended--

        (A) in subsection (b)(2)(G)(i), by striking `and (19)' and inserting `(and (17)';

        (B) in subsection (d)(3), by striking `food coupons' and inserting `EBT cards'; and

        (C) by striking `coupons' each place it appears and inserting `EBT cards'.

      (16) Section 22 of the Food and Nutrition Act of 2007 (7 U.S.C. 2031) is amended--

        (A) by striking `food coupons' each place it appears and inserting `benefits';

        (B) by striking `coupons' each place it appears and inserting `benefits'; and

        (C) in subsection (g)(1)(A), by striking `coupon' and inserting `benefits'.

      (17) Section 26(f)(3) of the Food and Nutrition Act of 2007 (7 U.S.C. 2035(f)(3)) is amended--

        (A) in subparagraph (A), by striking `subsections (a) through (g)' and inserting `subsections (a) through (f)'; and

        (B) in subparagraph (E), by striking `(16), (18), (20), (24), and (25)' and inserting `(15), (17), (18), (22), and (23)'.

    (c) Conforming Cross-References-

      (1) IN GENERAL-

        (A) USE OF TERMS- Each provision of law described in subparagraph (B) is amended (as applicable)--

          (i) by striking `coupons' each place it appears and inserting `benefits';

          (ii) by striking `coupon' each place it appears and inserting `benefit';

          (iii) by striking `food coupons' each place it appears and inserting `benefits';

          (iv) in each section heading, by striking `food coupons' each place it appears and inserting `benefits';

          (v) by striking `food stamp coupon' each place it appears and inserting `benefit'; and

          (vi) by striking `food stamps' each place it appears and inserting `benefits'.

        (B) PROVISIONS OF LAW- The provisions of law referred to in subparagraph (A) are the following:

          (i) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note; 107 Stat. 2418).

          (ii) Section 1956(c)(7)(D) of title 18, United States Code.

          (iii) Titles II through XIX of the Social Security Act (42 U.S.C. 401 et seq.).

          (iv) Section 401(b)(3) of the Social Security Amendments of 1972 (42 U.S.C. 1382e note; Public Law 92-603).

          (v) The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

          (vi) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011(d)(2)(A)(i)(II)).

      (2) DEFINITION REFERENCES-

        (A) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note; 107 Stat. 2418) is amended by striking `section 3(k)(1)' and inserting `section 3(p)(1)'.

        (B) Section 205 of the Food Stamp Program Improvements Act of 1994 (7 U.S.C. 2012 note; Public Law 103-225) is amended by striking `section 3(k) of such Act (as amended by section 201)' and inserting `section 3(p) of that Act'.

        (C) Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is amended--

          (i) by striking `section 3(h)' each place it appears and inserting `section 3(l)'; and

          (ii) in subsection (e)(2), by striking `section 3(m)' and inserting `section 3(s)'.

        (D) Section 402(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)) is amended--

          (i) in paragraph (2)(F)(ii), by striking `section 3(r)' and inserting `section 3(j)'; and

          (ii) in paragraph (3)(B), by striking `section 3(h)' and inserting `section 3(l)'.

        (E) Section 3803(c)(2)(C)(vii) of title 31, United States Code, is amended by striking `section 3(h)' and inserting `section 3(l)'.

        (F) Section 303(d)(4) of the Social Security Act (42 U.S.C. 503(d)(4)) is amended by striking `section 3(n)(1)' and inserting `section 3(t)(1)'.

        (G) Section 404 of the Social Security Act (42 U.S.C. 604) is amended by striking `section 3(h)' each place it appears and inserting `section 3(l)'.

        (H) Section 531 of the Social Security Act (42 U.S.C. 654) is amended by striking `section 3(h)' each place it appears and inserting `section 3(l)'.

        (I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011(d)(2)(A)(i)(II)) is amended by striking `(as defined in section 3(e) of such Act)'.

    (d) References- Any reference in any Federal, State, tribal, or local law (including regulations) to a `coupon', `authorization card', or other access device provided under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to a `benefit' provided under that Act.

SEC. 4203. CLARIFICATION OF SPLIT ISSUANCE.

    Section 7(h) of the Food and Nutrition Act of 2007 (7 U.S.C. 2016(h)) is amended by striking paragraph (2) and inserting the following:

      `(2) REQUIREMENTS-

        `(A) IN GENERAL- Any procedure established under paragraph (1) shall--

          `(i) not reduce the allotment of any household for any period; and

          `(ii) ensure that no household experiences an interval between issuances of more than 40 days.

        `(B) MULTIPLE ISSUANCES- The procedure may include issuing benefits to a household in more than 1 issuance only when a benefit correction is necessary.'.

SEC. 4204. STATE OPTION FOR TELEPHONIC SIGNATURE.

    Section 11(e)(2)(C) of the Food and Nutrition Act of 2007 (7 U.S.C. 2020(e)(2)(C)) is amended--

      (1) by striking `Nothing in this Act' and inserting the following:

        `(C) ELECTRONIC AND AUTOMATED SYSTEMS-

          `(i) IN GENERAL- Nothing in this Act'; and

      (2) by adding at the end the following:

          `(ii) STATE OPTION FOR TELEPHONIC SIGNATURE- A State agency may establish a system by which an applicant household may sign an application through a recorded verbal assent over the telephone.

          `(iii) REQUIREMENTS- A system established under clause (ii) shall--

            `(I) record for future reference the verbal assent of the household member and the information to which assent was given;

            `(II) include effective safeguards against impersonation, identity theft, and invasions of privacy;

            `(III) not deny or interfere with the right of the household to apply in writing;

            `(IV) promptly provide to the household member a written copy of the completed application, with instructions for a simple procedure for correcting any errors or omissions;

            `(V) comply with paragraph (1)(B);

            `(VI) satisfy all requirements for a signature on an application under this Act and other laws applicable to the food and nutrition program, with the date on which the household member provides verbal assent considered as the date of application for all purposes; and

            `(VII) comply with such other standards as the Secretary may establish.'.

SEC. 4205. PRIVACY PROTECTIONS.

    Section 11(e)(8) of the Food and Nutrition Act of 2007 (7 U.S.C. 2020(e)(8)) is amended--

      (1) in the matter preceding subparagraph (A)--

        (A) by striking `limit' and inserting `prohibit'; and

        (B) by striking `to persons' and all that follows through `State programs';

      (2) by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F), respectively;

      (3) by inserting before subparagraph (B) (as so redesignated) the following:

        `(A) the safeguards shall permit--

          `(i) the disclosure of such information to persons directly connected with the administration or enforcement of the provisions of this Act, regulations issued pursuant to this Act, Federal assistance programs, or federally-assisted State programs; and

          `(ii) the subsequent use of the information by persons described in clause (i) only for such administration or enforcement;'; and

      (4) in subparagraph (F) (as so redesignated) by inserting `or subsection (u)' before the semicolon at the end.

SEC. 4206. STUDY ON COMPARABLE ACCESS TO FOOD AND NUTRITION ASSISTANCE FOR PUERTO RICO.

    (a) In General- The Secretary shall carry out a study of the feasibility and effects of including the Commonwealth of Puerto Rico in the definition of the term `State' under section 3 of the Food and Nutrition Act of 2007 (7 U.S.C. 2012), in lieu of providing block grants under section 19 of that Act (7 U.S.C. 2028).

    (b) Inclusions- The study shall include--

      (1) an assessment of the administrative, financial management, and other changes that would be necessary for the Commonwealth to establish a comparable food and nutrition program, including compliance with appropriate program rules under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq,), such as--

        (A) benefit levels under section 3(o) of that Act (7 U.S.C. 3012(o));

        (B) income eligibility standards under sections 5(c) and 6 of that Act (7 U.S.C. 2014(c), 2015); and

        (C) deduction levels under section 5(e) of that Act (7 U.S.C. 2014(e));

      (2) an estimate of the impact on Federal and Commonwealth benefit and administrative costs;

      (3) an assessment of the impact of the program on low-income Puerto Ricans, as compared to the program under section 19 of that Act (7 U.S.C. 2028);

      (4) such other matters as the Secretary considers to be appropriate.

    (c) Report- Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under this section.

    (d) Funding-

      (1) IN GENERAL- On October 1, 2008, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section $1,000,000, to remain available until expended.

      (2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.

SEC. 4207. CIVIL RIGHTS COMPLIANCE.

    Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) is amended by striking subsection (c) and inserting the following:

    `(c) Civil Rights Compliance-

      `(1) IN GENERAL- In the certification of applicant households for the food and nutrition program, there shall be no discrimination by reason of race, sex, religious creed, national origin, or political affiliation.

      `(2) RELATION TO OTHER LAWS- The administration of the program by a State agency shall be consistent with the rights of households under the following laws (including implementing regulations):

        `(A) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).

        `(B) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).

        `(C) The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).

        `(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).'.

SEC. 4208. EMPLOYMENT, TRAINING, AND JOB RETENTION.

    Section 6(d)(4) of the Food and Nutrition Act of 2007 (7 U.S.C. 2015(d)(4)) is amended--

      (1) in subparagraph (B)--

        (A) by redesignating clause (vii) as clause (viii); and

        (B) by inserting after clause (vi) the following:

          `(vii) Programs intended to ensure job retention by providing job retention services, if the job retention services are provided for a period of not more than 90 days after an individual who received employment and training services under this paragraph gains employment.'; and

      (2) in subparagraph (F), by adding at the end the following:

          `(iii) Any individual voluntarily electing to participate in a program under this paragraph shall not be subject to the limitations described in clauses (i) and (ii).'.

SEC. 4209. CODIFICATION OF ACCESS RULES.

    Section 11(e)(1)) of the Food and Nutrition Act of 2007 (7 U.S.C. 2020(e)(1)) is amended--

      (1) by striking `shall (A) at' and inserting `shall--

        `(A) at'; and

      (2) by striking `and (B) use' and inserting `and

        `(B) comply with regulations of the Secretary requiring the use of'.

SEC. 4210. EXPANDING THE USE OF EBT CARDS AT FARMERS' MARKETS.

    (a) In General- For each of fiscal years 2008 through 2010, the Secretary shall make grants to pay 100 percent of the costs of eligible entities approved by the Secretary to carry out projects to expand the number of farmers' markets that accept EBT cards by--

      (1) providing equipment and training necessary for farmers' markets to accept EBT cards;

      (2) educating and providing technical assistance to farmers and farmers' market operators about the process and benefits of accepting EBT cards; or

      (3) other activities considered to be appropriate by the Secretary.

    (b) Limitation- A grant under this section--

      (1) may not be made for the ongoing cost of carrying out any project; and

      (2) shall only be provided to eligible entities that demonstrate a plan to continue to provide EBT card access at 1 or more farmers' markets following the receipt of the grant.

    (c) Eligible Entities- To be eligible to receive a grant under this section, an entity shall be--

      (1) a State agency administering the food and nutrition program established under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.);

      (2) a State agency or local government; or

      (3) a private nonprofit entity that coordinates farmers' markets in a State in cooperation with a State or local government.

    (d) Selection of Eligible Entities- The Secretary--

      (1) shall develop criteria to select eligible entities to receive grants under this section; and

      (2) may give preference to any eligible entity that consists of a partnership between a government entity and a nongovernmental entity.

    (e) Mandatory Funding-

      (1) IN GENERAL- On October 1, 2007, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of Agriculture to carry out this section $5,000,000, to remain available until expended.

      (2) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.

SEC. 4211. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

    Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) is amended by striking subsection (a) and inserting the following:

    `(a) State Responsibility-

      `(1) IN GENERAL- The State agency of each participating State shall have responsibility for certifying applicant households and issuing EBT cards.

      `(2) LOCAL ADMINISTRATION- The responsibility of the agency of the State government shall not be affected by whether the program is operated on a State-administered or county-administered basis, as provided under section 3(t)(1).

      `(3) RECORDS-

        `(A) IN GENERAL- Each State agency shall keep such records as may be necessary to determine whether the program is being conducted in compliance with this Act (including regulations issued under this Act).

        `(B) INSPECTION AND AUDIT- Records described in subparagraph (A) shall--

          `(i) be available for inspection and audit at any reasonable time;

          `(ii) subject to subsection (e)(8), be available for review in any action filed by a household to enforce any provision of this Act (including regulations issued under this Act); and

          `(iii) be preserved for such period of not less than 3 years as may be specified in regulations.

      `(4) REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN-

        `(A) IN GENERAL- The Secretary shall develop standards for identifying major changes in the operations of a State agency, including--

          `(i) large or substantially-increased numbers of low-income households that do not live in reasonable proximity to an office performing the major functions described in subsection (e);

          `(ii) substantial increases in reliance on automated systems for the performance of responsibilities previously performed by personnel described in subsection (e)(6)(B);

          `(iii) changes that potentially increase the difficulty of reporting information under subsection (e) or section 6(c); and

          `(iv) changes that may disproportionately increase the burdens on any of the types of households described in subsection (e)(2)(A).

        `(B) NOTIFICATION- If a State agency implements a major change in operations, the State agency shall--

          `(i) notify the Secretary; and

          `(ii) collect such information as the Secretary shall require to identify and correct any adverse effects on program integrity or access, including access by any of the types of households described in subsection (e)(2)(A).'.

SEC. 4212. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

    Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025) is amended by striking subsection (g) and inserting the following:

    `(g) Cost Sharing for Computerization-

      `(1) IN GENERAL- Except as provided in paragraphs (2) and (3), the Secretary is authorized to pay to each State agency the amount provided under subsection (a)(6) for the costs incurred by the State agency in the planning, design, development, or installation of 1 or more automatic data processing and information retrieval systems that the Secretary determines--

        `(A) would assist in meeting the requirements of this Act;

        `(B) meet such conditions as the Secretary prescribes;

        `(C) are likely to provide more efficient and effective administration of the food and nutrition program;

        `(D) would be compatible with other systems used in the administration of State programs, including the program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.);

        `(E) would be tested adequately before and after implementation, including through pilot projects in limited areas for major systems changes as determined under rules promulgated by the Secretary, data from which shall be thoroughly evaluated before the Secretary approves the system to be implemented more broadly; and

        `(F) would be operated in accordance with an adequate plan for--

          `(i) continuous updating to reflect changed policy and circumstances; and

          `(ii) testing the effect of the system on access for eligible households and on payment accuracy.

      `(2) LIMITATION- The Secretary shall not make payments to a State agency under paragraph (1) to the extent that the State agency--

        `(A) is reimbursed for the costs under any other Federal program; or

        `(B) uses the systems for purposes not connected with the food and nutrition program.'.

SEC. 4213. NUTRITION EDUCATION.

    (a) Authority To Provide Nutrition Education- Section 4(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 2013(a)) is amended in the first sentence by inserting `and through an approved State plan, nutrition education' after `an allotment'.

    (b) Implementation- Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020(f) is amended by striking subsection (f) and inserting the following:

    `(f) Nutrition Education-

      `(1) IN GENERAL- State agencies may implement a nutrition education program for individuals eligible for program benefits that promotes healthy food choices consistent with the most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341).

      `(2) DELIVERY OF NUTRITION EDUCATION- State agencies may deliver nutrition education directly to eligible persons or through agreements with the Cooperative State Research, Education, and Extension Service, including through the expanded food and nutrition education under section 3(d) of the Act of May 8, 1914 (7 U.S.C. 343(d)), and other State and community health and nutrition providers and organizations.

      `(3) NUTRITION EDUCATION STATE PLANS-

        `(A) IN GENERAL- A State agency that elects to provide nutrition education under this subsection shall submit a nutrition education State plan to the Secretary for approval.

        `(B) REQUIREMENTS- The plan shall--

          `(i) identify the uses of the funding for local projects; and

          `(ii) conform to standards established by the Secretary through regulations or guidance.

        `(C) REIMBURSEMENT- State costs for providing nutrition education under this subsection shall be reimbursed pursuant to section 16(a).

      `(4) NOTIFICATION- To the maximum extent practicable, State agencies shall notify applicants, participants, and eligible program participants of the availability of nutrition education under this subsection.'.

PART IV--IMPROVING PROGRAM INTEGRITY

SEC. 4301. MAJOR SYSTEMS FAILURES.

    (a) In General- Section 13(b) of the Food and Nutrition Act of 2007 (7 U.S.C. 2022(b)) is amended by adding at the end the following:

      `(5) OVER ISSUANCES CAUSED BY SYSTEMIC STATE ERRORS-

        `(A) IN GENERAL- If the Secretary determines that a State agency over issued benefits to a substantial number of households in a fiscal year as a result of a major systemic error by the State agency, as determined by the Secretary, the Secretary may prohibit the State agency from collecting these over issuances from some or all households.

        `(B) PROCEDURES-

          `(i) INFORMATION REPORTING BY STATES- Every State agency shall provide to the Secretary all information requested by the Secretary concerning the issuance of benefits to households by the State agency in the applicable fiscal year.

          `(ii) FINAL DETERMINATION- After reviewing relevant information provided by a State agency, the Secretary shall make a final determination--

            `(I) whether the State agency over issued benefits to a substantial number of households as a result of a systemic error in the applicable fiscal year; and

            `(II) as to the amount of the over issuance in the applicable fiscal year for which the State agency is liable.

          `(iii) ESTABLISHING A CLAIM- Upon determining under clause (ii) that a State agency has over issued benefits to households due to a major systemic error determined under subparagraph (A), the Secretary shall establish a claim against the State agency equal to the value of the over issuance caused by the systemic error.

          `(iv) ADMINISTRATIVE AND JUDICIAL REVIEW- Administrative and judicial review, as provided in section 14, shall apply to the final determinations by the Secretary under clause (ii).

          `(v) REMISSION TO THE SECRETARY-

            `(I) DETERMINATION NOT APPEALED- If the determination of the Secretary under clause (ii) is not appealed, the State agency shall, as soon as practicable, remit to the Secretary the dollar amount specified in the claim under clause (iii).

            `(II) DETERMINATION APPEALED- If the determination of the Secretary under clause (ii) is appealed, upon completion of administrative and judicial review under clause (iv), and a finding of liability on the part of the State, the appealing State agency shall, as soon as practicable, remit to the Secretary a dollar amount subject to the finding of the administrative and judicial review.

          `(vi) ALTERNATIVE METHOD OF COLLECTION-

            `(I) IN GENERAL- If a State agency fails to make a payment under clause (v) within a reasonable period of time, as determined by the Secretary, the Secretary may reduce any amount due to the State agency under any other provision of this Act by the amount due.

            `(II) ACCRUAL OF INTEREST- During the period of time determined by the Secretary to be reasonable under subclause (I), interest in the amount owed shall not accrue.

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

    (b) Conforming Amendment- Section 14(a)(6) of the Food and Nutrition Act of 2007 (7 U.S.C. 2023(a)(6)) is amended by striking `pursuant to section' and inserting `pursuant to section 13(b)(5) and'.

SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC IDENTIFICATION TECHNOLOGY.

    Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025) is amended by adding at the end the following:

    `(l) Performance Standards for Biometric Identification Technology-

      `(1) DEFINITION OF BIOMETRIC IDENTIFICATION TECHNOLOGY- In this subsection, the term `biometric identification technology' means a technology that provides an automated method to identify an individual based on physical characteristics, such as fingerprints or retinal scans.

      `(2) ADMINISTRATIVE FUNDS- The Secretary may not pay a State agency any amount for administrative costs for the development, purchase, administration, or other costs associated with the use of biometric identification technology unless the State agency has, under such terms and conditions as the Secretary considers appropriate--

        `(A) provided to the Secretary an analysis of the cost-effectiveness of the use of the proposed biometric identification technology to detect fraud in carrying out the food and nutrition program;

        `(B) demonstrated to the Secretary that the analysis is--

          `(i) statistically valid; and

          `(ii) based on appropriate and valid assumptions for the households served by the food and nutrition program;

        `(C) demonstrated to the Secretary that--

          `(i) the proposed biometric identification technology is cost-effective in reducing fraud; and

          `(ii) there are no other technologies or fraud-detection methods that are at least as cost-effective in carrying out the purposes of the proposed biometric identification system; and

        `(D) demonstrated to the Secretary that no information produced by or used in the biometric information technology system will be made available or used for any purpose other than a purpose allowed under section 11(e)(8).

      `(3) STANDARDS- The Secretary shall establish uniform standards for the evaluation of cost-effectiveness analyses submitted to the Secretary under paragraph (2).'.

SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

    Section 12 of the Food and Nutrition Act of 2007 (7 U.S.C. 2021) is amended--

      (1) by striking the section designation and heading and all that follows through the end of subsection (a) and inserting the following:

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

    `(a) Disqualification-

      `(1) IN GENERAL- An approved retail food store or wholesale food concern that violates a provision of this Act or a regulation under this Act may be--

        `(A) disqualified for a specified period of time from further participation in the food and nutrition program; or

        `(B) assessed a civil penalty of up to $100,000 for each violation.

      `(2) REGULATIONS- Regulations promulgated under this Act shall provide criteria for the finding of a violation of, the suspension or disqualification of, and the assessment of a civil penalty against, a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system.';

      (2) in subsection (b)--

        (A) by striking `(b) Disqualification' and inserting the following:

    `(b) Period of Disqualification- Subject to subsection (c), a disqualification';

        (B) in paragraph (1), by striking `of no less than six months nor more than five years' and inserting `not to exceed 5 years';

        (C) in paragraph (2), by striking `of no less than twelve months nor more than ten years' and inserting `not to exceed 10 years';

        (D) in paragraph (3)(B)--

          (i) by inserting `or a finding of the unauthorized redemption, use, transfer, acquisition, alteration, or possession of EBT cards' after `concern' the first place it appears; and

          (ii) by striking `civil money penalties' and inserting `civil penalties'; and

        (E) by striking `civil money penalty' each place it appears and inserting `civil penalty';

      (3) in subsection (c)--

        (A) by striking `(c) The action' and inserting the following:

    `(c) Civil Penalty and Review of Disqualification and Penalty Determinations-

      `(1) CIVIL PENALTY- In addition to a disqualification under this section, the Secretary may assess a civil penalty in an amount not to exceed $100,000 for each violation.

      `(2) REVIEW- The action'; and

        (B) in paragraph (2) (as designated by subparagraph (A)), by striking `civil money penalty' and inserting `civil penalty';

      (4) in subsection (d)--

        (A) by striking `(d)' and all that follows through `. The Secretary shall' and inserting the following:

    `(d) Conditions of Authorization-

      `(1) IN GENERAL- As a condition of authorization to accept and redeem benefits, the Secretary may require a retail food store or wholesale food concern that, pursuant to subsection (a), has been disqualified for more than 180 days, or has been subjected to a civil penalty in lieu of a disqualification period of more than 180 days, to furnish a collateral bond or irrevocable letter of credit for a period of not more than 5 years to cover the value of benefits that the store or concern may in the future accept and redeem in violation of this Act.

      `(2) COLLATERAL- The Secretary also may require a retail food store or wholesale food concern that has been sanctioned for a violation and incurs a subsequent sanction regardless of the length of the disqualification period to submit a collateral bond or irrevocable letter of credit.

      `(3) BOND REQUIREMENTS- The Secretary shall';

        (B) by striking `If the Secretary finds' and inserting the following

      `(4) FORFEITURE- If the Secretary finds'; and

        (C) by striking `Such store or concern' and inserting the following:

      `(5) HEARING- A store or concern described in paragraph (4)';

      (5) in subsection (e), by striking `civil money penalty' each place it appears and inserting `civil penalty'; and

      (6) by adding at the end the following:

    `(h) Flagrant Violations-

      `(1) IN GENERAL- The Secretary, in consultation with the Inspector General of the Department of Agriculture, shall establish procedures under which the processing of program benefit redemptions for a retail food store or wholesale food concern may be immediately suspended pending administrative action to disqualify the retail food store or wholesale food concern.

      `(2) REQUIREMENTS- Under the procedures described in paragraph (1), if the Secretary, in consultation with the Inspector General, determines that a retail food store or wholesale food concern is engaged in flagrant violations of this Act (including regulations promulgated under this Act), unsettled program benefits that have been redeemed by the retail food store or wholesale food concern--

        `(A) may be suspended; and

        `(B)(i) if the program disqualification is upheld, may be subject to forfeiture pursuant to subsection (g); or

        `(ii) if the program disqualification is not upheld, shall be released to the retail food store or wholesale food concern.

      `(3) NO LIABILITY FOR INTEREST- The Secretary shall not be liable for the value of any interest on funds suspended under this subsection.'.

SEC. 4304. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    (a) In General- Section 16(h)(1)(A) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by striking `to remain available until expended' and inserting `to remain available for 2 fiscal years'.

    (b) Rescission of Funds- Notwithstanding any other provision of law, funds provided under section 16(h)(1)(A) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) for any fiscal year before the fiscal year beginning October 1, 2007, shall be rescinded on the date of enactment of this Act, unless obligated by a State agency before that date.

SEC. 4305. ELIGIBILITY DISQUALIFICATION.

    Section 6 of the Food and Nutrition Assistance Act of 2007 (7 U.S.C. 2015) is amended by adding at the end the following:

    `(p) Disqualification for Obtaining Cash by Destroying Food and Collecting Deposits- Any person who has been found by a State or Federal court or administrative agency or in a hearing under subsection (b) to have intentionally obtained cash by purchasing products with food and nutrition benefits that have containers that require return deposits, discarding the product, and returning the container for the deposit amount shall be ineligible for benefits under this Act for such period of time as the Secretary shall prescribe by regulation.

    `(q) Disqualification for Sale of Food Purchased With Food and Nutrition Benefits- Subject to any requirements established by the Secretary, any person who has been found by a State or Federal court or administrative agency or in a hearing under subsection (b) to have intentionally sold any food that was purchased using food and nutrition benefits shall be ineligible for benefits under this Act for such period of time as the Secretary shall prescribe by regulation.'.

PART V--MISCELLANEOUS

SEC. 4401. DEFINITION OF STAPLE FOODS.

    Subsection (r) of section 3 of the Food and Nutrition Act of 2007 (7 U.S.C. 2012) (as redesignated by section 4202(b)(1)(M)) is amended--

      (1) by striking `(r)(1) Except' and inserting the following:

    `(r) Staple Foods-

      `(1) IN GENERAL- Except'; and

      (2) by striking paragraph (2) and inserting the following:

      `(2) EXCEPTIONS- The term `staple foods' does not include accessory food items, such as coffee, tea, cocoa, carbonate and uncarbonated drinks, candy, condiments, and spices, or dietary supplements.

      `(3) DEPTH OF STOCK- The Secretary may issue regulations to define depth of stock to ensure that stocks of staple foods are available on a continuous basis.'.

SEC. 4402. ACCESSORY FOOD ITEMS.

    Section 9(a) of the Food and Nutrition Act of 2007 (7 U.S.C. 2018(a)) is amended by adding at the end the following:

      `(4) ACCESSORY FOOD ITEMS-

        `(A) IN GENERAL- Not later than 1 year after the date of enactment of this paragraph, the Secretary shall promulgate proposed regulations providing that a dietary supplement shall not be considered an accessory food item unless the dietary supplement--

          `(i) contains folic acid or calcium in accordance with sections 101.72 and 101.79 of title 21, Code of Federal Regulations (as in effect on the date of enactment of this paragraph); and

          `(ii) is a multivitamin-mineral supplement that--

            `(I) provides at least 2/3 of the essential vitamins and minerals at 100 percent of the daily value levels, as determined by the Food and Drug Administration; and

            `(II) does not exceed the daily upper limit for those nutrients for which an established daily upper limit has been determined by the Institute of Medicine of the National Academy of Sciences.

        `(B) FINAL REGULATIONS- Not later than 2 years after the date of enactment of this paragraph, the Secretary shall promulgate final regulations in accordance with subparagraph (A).

        `(C) PURCHASE OF DIETARY SUPPLEMENTS- No dietary supplements may be purchased using benefits under this Act until the earlier of--

          `(i) the date on which the Secretary promulgates final regulations under subparagraph (B); or

          `(ii) the date on which the Secretary certifies a voluntary system of labeling for the ready and accurate identification of eligible dietary supplements, as developed by the Secretary in consultation with the dietary supplement industry and dietary supplement retailers.'.

SEC. 4403. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN THE FOOD AND NUTRITION PROGRAM.

    Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 2026) is amended by adding at the end the following:

    `(k) Pilot Projects To Evaluate Health and Nutrition Promotion in the Food and Nutrition Program-

      `(1) IN GENERAL- The Secretary shall carry out, under such terms and conditions as the Secretary considers to be appropriate, pilot projects to develop and test methods--

        `(A) of using the food and nutrition program to improve the dietary and health status of households participating in the food and nutrition program; and

        `(B) to reduce overweight, obesity (including childhood obesity), and associated co-morbidities in the United States.

      `(2) PROJECTS- Pilot projects carried out under paragraph (1) may include projects to determine whether healthier food purchases by and healthier diets among households participating in the food and nutrition program result from projects that--

        `(A) increase the food and nutrition assistance purchasing power of the participating households by providing increased food and nutrition assistance benefit allotments to the participating households;

        `(B) increase access to farmers markets by participating households through the electronic redemption of food and nutrition assistance at the farmers markets;

        `(C) provide incentives to authorized food and nutrition program vendors to increase the availability of healthy foods to participating households;

        `(D) subject authorized food and nutrition program vendors to stricter vendor requirements with respect to carrying and stocking healthy foods;

        `(E) provide incentives at the point of purchase to encourage participating households to purchase fruits, vegetables, or other healthy foods; or

        `(F) provide to participating households integrated communication and education programs, including the provision of funding for a portion of a school based nutrition coordinator to implement a broad nutrition action plan and parent nutrition education programs in elementary schools, separately or in combination with pilot projects carried out under subparagraphs (A) through (E).

      `(3) DURATION- A pilot project carried out under this subsection shall have a term of not more than 5 years.

      `(4) EVALUATIONS AND REPORTS-

        `(A) EVALUATIONS-

          `(i) INDEPENDENT EVALUATION-

            `(I) IN GENERAL- The Secretary shall provide for an independent evaluation of each pilot project under this subsection that measures the impact of the pilot program on health and nutrition as described in paragraph (1).

            `(II) REQUIREMENT- The independent evaluation under subclause (I) shall use rigorous methodologies, particularly random assignment or other methods that are capable of producing scientifically-valid information regarding which activities are effective.

          `(ii) COSTS- The Secretary may use funds provided to carry out this section to pay costs associated with monitoring and evaluating each pilot project.

        `(B) REPORTS- Not later than 90 days after the last day of fiscal year 2008 and each fiscal year thereafter until the completion of the last evaluation under subparagraph (A), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes a description of--

          `(i) the status of each pilot project;

          `(ii) the results of the evaluation completed during the previous fiscal year; and

          `(iii) to the maximum extent practicable--

            `(I) the impact of the pilot project on appropriate health, nutrition, and associated behavioral outcomes among households participating in the pilot project;

            `(II) baseline information relevant to the stated goals and desired outcomes of the pilot project; and

            `(III) equivalent information about similar or identical measures among control or comparison groups that did not participate in the pilot project.

      `(5) FUNDING-

        `(A) IN GENERAL- Out of any funds made available under section 18, the Secretary shall use $50,000,000 to carry out this section, to remain available until expended.

        `(B) USE OF FUNDS- Of funds made available under subparagraph (A), the Secretary shall use not more than $25,000,000 to carry out a pilot project described in paragraph (2)(E).'.

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

    (a) In General- The Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

`SEC. 28. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND INTERNATIONAL HUNGER FELLOWS.

    `(a) Short Title- This section may be cited as the `Bill Emerson National Hunger Fellows and Mickey Leland International Hunger Fellows Program Act of 2007'.

    `(b) Findings- Congress finds that--

      `(1) there is a critical need for compassionate individuals who are committed to assisting people who suffer from hunger to initiate and administer solutions to the hunger problem;

      `(2) Bill Emerson, the distinguished late Representative from the 8th District of Missouri, demonstrated--

        `(A) his commitment to solving the problem of hunger in a bipartisan manner;

        `(B) his commitment to public service; and

        `(C) his great affection for the institution and ideals of the United States Congress;

      `(3) George T. (Mickey) Leland, the distinguished late Representative from the 18th District of Texas, demonstrated--

        `(A) his compassion for those in need;

        `(B) his high regard for public service; and

        `(C) his lively exercise of political talents;

      `(4) the special concern that Mr. Emerson and Mr. Leland demonstrated during their lives for the hungry and poor was an inspiration for others to work toward the goals of equality and justice for all;

      `(5) these 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

      `(6) it is especially appropriate to honor the memory of Mr. Emerson and Mr. Leland by creating a fellowship program to develop and train the future leaders of the United States to pursue careers in humanitarian service.

    `(c) Definitions- In this subsection:

      `(1) DIRECTOR- The term `Director' means the head of the Congressional Hunger Center.

      `(2) FELLOW- The term `fellow' means--

        `(A) a Bill Emerson Hunger Fellow; or

        `(B) Mickey Leland Hunger Fellow

      `(3) FELLOWSHIP PROGRAMS- The term `Fellowship Programs' means the Bill Emerson National Hunger Fellowship Program and the Mickey Leland International Hunger Fellowship Program established under subsection (d)(1).

    `(d) Fellowship Programs-

      `(1) IN GENERAL- There is established the Bill Emerson National Hunger Fellowship Program and the Mickey Leland International Hunger Fellowship Program.

      `(2) PURPOSES-

        `(A) IN GENERAL- The purposes of the Fellowship Programs are--

          `(i) to encourage future leaders of the United States--

            `(I) to pursue careers in humanitarian and public service;

            `(II) to recognize the needs of low-income people and hungry people;

            `(III) to provide assistance to people in need; and

            `(IV) to seek public policy solutions to the challenges of hunger and poverty;

          `(ii) to provide training and development opportunities for such leaders through placement in programs operated by appropriate organizations or entities; and

          `(iii) to increase awareness of the importance of public service.

        `(B) BILL EMERSON HUNGER FELLOWSHIP PROGRAM- The purpose of the Bill Emerson Hunger Fellowship Program is to address hunger and poverty in the United States.

        `(C) MICKEY LELAND HUNGER FELLOWSHIP PROGRAM- The purpose of the Mickey Leland Hunger Fellowship Program is to address international hunger and other humanitarian needs.

      `(3) ADMINISTRATION-

        `(A) IN GENERAL- Subject to subparagraph (B), the Secretary shall offer to provide a grant to the Congressional Hunger Center to administer the Fellowship Programs.

        `(B) TERMS OF GRANT- The terms of the grant provided under subparagraph (A), including the length of the grant and provisions for the alteration or termination of the grant, shall be determined by the Secretary in accordance with this section.

    `(e) Fellowships-

      `(1) IN GENERAL- The Director shall make available Bill Emerson Hunger Fellowships and Mickey Leland Hunger Fellowships in accordance with this subsection.

      `(2) CURRICULUM-

        `(A) IN GENERAL- The Fellowship Programs shall provide experience and training to develop the skills necessary to train fellows to carry out the purposes described in subsection (d)(2), including--

          `(i) training in direct service programs for the hungry and other anti-hunger programs in conjunction with community-based organizations through a program of field placement; and

          `(ii) providing experience in policy development through placement in a governmental entity or nongovernmental, nonprofit, or private sector organization.

        `(B) WORK PLAN- To carry out subparagraph (A) and assist in the evaluation of the fellowships under paragraph (6), the Director shall, for each fellow, approve a work plan that identifies the target objectives for the fellow in the fellowship, including specific duties and responsibilities relating to those objectives.

      `(3) PERIOD OF FELLOWSHIP-

        `(A) BILL EMERSON HUNGER FELLOW- A Bill Emerson Hunger Fellowship awarded under this section shall be for not more than 15 months.

        `(B) MICKEY LELAND HUNGER FELLOW- A Mickey Leland Hunger Fellowship awarded under this section shall be for not more than 2 years.

      `(4) SELECTION OF FELLOWS-

        `(A) IN GENERAL- Fellowships shall be awarded pursuant to a nationwide competition established by the Director.

        `(B) QUALIFICATIONS- A successful program applicant shall be an individual who has demonstrated--

          `(i) an intent to pursue a career in humanitarian services and outstanding potential for such a career;

          `(ii) leadership potential or actual leadership experience;

          `(iii) diverse life experience;

          `(iv) proficient writing and speaking skills;

          `(v) an ability to live in poor or diverse communities; and

          `(vi) such other attributes as are considered to be appropriate by the Director.

      `(5) AMOUNT OF AWARD-

        `(A) IN GENERAL- A fellow shall receive--

          `(i) a living allowance during the term of the Fellowship; and

          `(ii) subject to subparagraph (B), an end-of-service award.

        `(B) REQUIREMENT FOR SUCCESSFUL COMPLETION OF FELLOWSHIP- Each fellow shall be entitled to receive an end-of-service award at an appropriate rate for each month of satisfactory service completed, as determined by the Director.

        `(C) TERMS OF FELLOWSHIP- A fellow shall not be considered an employee of--

          `(i) the Department of Agriculture;

          `(ii) the Congressional Hunger Center; or

          `(iii) a host agency in the field or policy placement of the fellow.

        `(D) RECOGNITION OF FELLOWSHIP AWARD-

          `(i) EMERSON FELLOW- An individual awarded a fellowship from the Bill Emerson Hunger Fellowship shall be known as an `Emerson Fellow'.

          `(ii) LELAND FELLOW- An individual awarded a fellowship from the Mickey Leland Hunger Fellowship shall be known as a `Leland Fellow'.

      `(6) EVALUATIONS AND AUDITS- Under terms stipulated in the contract entered into under subsection (d)(3), the Director shall--

        `(A) conduct periodic evaluations of the Fellowship Programs; and

        `(B) arrange for annual independent financial audits of expenditures under the Fellowship Programs.

    `(f) Authority-

      `(1) IN GENERAL- Subject to paragraph (2), in carrying out this section, the Director may solicit, accept, use, and dispose of gifts, bequests, or devises of services or property, both real and personal, for the purpose of facilitating the work of the Fellowship Programs.

      `(2) LIMITATION- Gifts, bequests, or devises of money and proceeds from sales of other property received as gifts, bequests, or devises shall be used exclusively for the purposes of the Fellowship Programs.

    `(g) Report- The Director shall annually submit to the Secretary of Agriculture, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that--

      `(1) describes the activities and expenditures of the Fellowship Programs during the preceding fiscal year, including expenditures made from funds made available under subsection (h); and

      `(2) includes the results of evaluations and audits required by subsection (f).

    `(h) Authorization of Appropriations- There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section, to remain available until expended.'.

    (b) Repeal- Section 4404 of the Farm Security and Rural Investment Act of 2002 (2 U.S.C. 1161) is repealed.

SEC. 4405. HUNGER-FREE COMMUNITIES.

    (a) Definitions- In this section:

      (1) DOMESTIC HUNGER GOAL- The term `domestic hunger goal' means--

        (A) the goal of reducing hunger in the United States to at or below 2 percent by 2010; or

        (B) the goal of reducing food insecurity in the United States to at or below 6 percent by 2010.

      (2) EMERGENCY FEEDING ORGANIZATION- The term `emergency feeding organization' has the meaning given the term in section 201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501).

      (3) FOOD SECURITY- The term `food security' means the state in which an individual has access to enough food for an active, healthy life.

      (4) HUNGER-FREE COMMUNITIES GOAL- The term `hunger-free communities goal' means any of the 14 goals described in the H. Con. Res. 302 (102nd Congress).

    (b) Hunger Reports-

      (1) STUDY-

        (A) TIMELINE-

          (i) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study of major matters relating to the problem of hunger in the United States, as determined by the Secretary.

          (ii) UPDATE- Not later than 5 years after the date on which the study under clause (i) is conducted, the Secretary shall update the study.

        (B) MATTERS TO BE ASSESSED- The matters to be assessed by the Secretary in the study and update under this paragraph shall include--

          (i) data on hunger and food insecurity in the United States;

          (ii) measures carried out during the previous year by Federal, State, and local governments to achieve domestic hunger goals and hunger-free communities goals; and

          (iii) measures that could be carried out by Federal, State, and local governments to achieve domestic hunger goals and hunger-free communities goals.

      (2) RECOMMENDATIONS- The Secretary shall develop recommendations on--

        (A) removing obstacles to achieving domestic hunger goals and hunger-free communities goals; and

        (B) otherwise reducing domestic hunger.

      (3) REPORT- The Secretary shall submit to the President and Congress--

        (A) not later than 1 year after the date of enactment of this Act, a report that contains--

          (i) a detailed statement of the results of the study, or the most recent update to the study, conducted under paragraph (1)(A); and

          (ii) the most recent recommendations of the Secretary under paragraph (2); and

        (B) not later than 5 years after the date of submission of the report under subparagraph (A), an update of the report.

    (c) Hunger-Free Communities Collaborative Grants-

      (1) DEFINITION OF ELIGIBLE ENTITY- In this subsection, the term `eligible entity' means a public food program service provider or a nonprofit organization, including but not limited to an emergency feeding organization, that demonstrates the organization has collaborated, or will collaborate, with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.

      (2) PROGRAM AUTHORIZED-

        (A) IN GENERAL- The Secretary shall use not more than 55 percent of any funds made available under subsection (f) to make grants to eligible entities to pay the Federal share of the costs of an activity described in paragraph (4).

        (B) FEDERAL SHARE- The Federal share of the cost of carrying out an activity under this subsection shall not exceed 80 percent.

        (C) NON-FEDERAL SHARE-

          (i) CALCULATION- The non-Federal share of the cost of an activity under this subsection may be provided in cash or in kind, fairly evaluated, including facilities, equipment, or services.

          (ii) SOURCES- Any entity may provide the non-Federal share of the cost of an activity under this subsection through a State government, a local government, or a private source.

      (3) APPLICATION-

        (A) IN GENERAL- To receive a grant under this subsection, an eligible entity shall submit an application to the Secretary at the time and in the manner and accompanied by any information the Secretary may require.

        (B) CONTENTS- Each application submitted under subparagraph (A) shall--

          (i) identify any activity described in paragraph (4) that the grant will be used to fund;

          (ii) describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity;

          (iii) list any partner organizations of the eligible entity that will participate in an activity funded by the grant;

          (iv) describe any agreement between a partner organization and the eligible entity necessary to carry out an activity funded by the grant; and

          (v) if an assessment described in paragraph (4)(A) has been performed, include--

            (I) a summary of that assessment; and

            (II) information regarding the means by which the grant will help reduce hunger in the community of the eligible entity.

        (C) PRIORITY- In making grants under this subsection, the Secretary shall give priority to eligible entities that--

          (i) demonstrate in the application of the eligible entity that the eligible entity makes collaborative efforts to reduce hunger in the community of the eligible entity; and

          (ii)(I) serve communities in which the rates of food insecurity, hunger, poverty, or unemployment are demonstrably higher than national average rates;

          (II) provide evidence of long-term efforts to reduce hunger in the community;

          (III) provide evidence of public support for the efforts of the eligible entity; or

          (IV) demonstrate in the application of the eligible entity a commitment to achieving more than 1 hunger-free communities goal.

      (4) USE OF FUNDS-

        (A) ASSESSMENT OF HUNGER IN THE COMMUNITY-

          (i) IN GENERAL- An eligible entity in a community that has not performed an assessment described in clause (ii) may use a grant received under this subsection to perform the assessment for the community.

          (ii) ASSESSMENT- The assessment referred to in clause (ii) shall include--

            (I) an analysis of the problem of hunger in the community served by the eligible entity;

            (II) an evaluation of any facility and any equipment used to achieve a hunger-free communities goal in the community;

            (III) an analysis of the effectiveness and extent of service of existing nutrition programs and emergency feeding organizations; and

            (IV) a plan to achieve any other hunger-free communities goal in the community.

        (B) ACTIVITIES- An eligible entity in a community that has submitted an assessment to the Secretary shall use a grant received under this subsection for any fiscal year for activities of the eligible entity, including--

          (i) meeting the immediate needs of people in the community served by the eligible entity who experience hunger by--

            (I) distributing food;

            (II) providing community outreach; or

            (III) improving access to food as part of a comprehensive service;

          (ii) developing new resources and strategies to help reduce hunger in the community;

          (iii) establishing a program to achieve a hunger-free communities goal in the community, including--

            (I) a program to prevent, monitor, and treat children in the community experiencing hunger or poor nutrition; or

            (II) a program to provide information to people in the community on hunger, domestic hunger goals, and hunger-free communities goals; and

          (iv) establishing a program to provide food and nutrition services as part of a coordinated community-based comprehensive service.

    (d) Hunger-Free Communities Infrastructure Grants-

      (1) DEFINITION OF ELIGIBLE ENTITY- In this subsection, the term `eligible entity' means an emergency feeding organization (as defined in section 201A(4) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501(4))).

      (2) PROGRAM AUTHORIZED-

        (A) IN GENERAL- The Secretary shall use not more than 45 percent of any funds made available under subsection (f) to make grants to eligible entities to pay the Federal share of the costs of an activity described in paragraph (4).

        (B) FEDERAL SHARE- The Federal share of the cost of carrying out an activity under this subsection shall not exceed 80 percent.

      (3) APPLICATION-

        (A) IN GENERAL- To receive a grant under this subsection, an eligible entity shall submit an application to the Secretary at the time and in the manner and accompanied by any information the Secretary may require.

        (B) CONTENTS- Each application submitted under subparagraph (A) shall--

          (i) identify any activity described in paragraph (4) that the grant will be used to fund; and

          (ii) describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity.

        (C) PRIORITY- In making grants under this subsection, the Secretary shall give priority to eligible entities the applications of which demonstrate 2 or more of the following:

          (i) The eligible entity serves a community in which the rates of food insecurity, hunger, poverty, or unemployment are demonstrably higher than national average rates.

          (ii) The eligible entity serves a community that has carried out long-term efforts to reduce hunger in the community.

          (iii) The eligible entity serves a community that provides public support for the efforts of the eligible entity.

          (iv) The eligible entity is committed to achieving more than 1 hunger-free communities goal.

      (4) USE OF FUNDS- An eligible entity shall use a grant received under this subsection for any fiscal year to carry out activities of the eligible entity, including--

        (A) constructing, expanding, or repairing a facility or equipment to support hunger relief agencies in the community;

        (B) assisting an emergency feeding organization in the community in obtaining locally-produced produce and protein products; and

        (C) assisting an emergency feeding organization in the community to process and serve wild game.

    (e) Report- If funds are made available under subsection (f), not later than September 30, 2012, the Secretary shall submit to Congress a report describing--

      (1) each grant made under this section, including--

        (A) a description of any activity funded by such a grant; and

        (B) the degree of success of each activity funded by such a grant in achieving hunger-free communities goals; and

      (2) the degree of success of all activities funded by grants under this section in achieving domestic hunger goals.

    (f) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2008 through 2012.

SEC. 4406. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM BENEFITS FOR FREE SCHOOL MEALS.

    (a) In General- Not later than June 30 of each year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that assesses the effectiveness of each State in enrolling school-aged children in households receiving program benefits under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) (referred to in this section as `program benefits') for free school meals using direct certification.

    (b) Specific Measures- The assessment of the Secretary of the performance of each State shall include--

      (1) an estimate of the number of school-aged children, by State, who were members of a household receiving program benefits at any time in July, August, or September of the prior year;

      (2) an estimate of the number of school-aged children, by State, who were directly certified as eligible for free lunches under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), based on receipt of program benefits, as of October 1 of the prior year; and

      (3) an estimate of the number of school-aged children, by State, who were members of a household receiving program benefits at any time in July, August, or September of the prior year who were not candidates for direct certification because on October 1 of the prior year the children attended a school operating under the special assistance provisions of section 11(a)(1) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a) that is not operating in a base year.

    (c) Performance Innovations- The report of the Secretary shall describe best practices from States with the best performance or the most improved performance from the previous year.

SEC. 4407. SENSE OF CONGRESS REGARDING NUTRITION EDUCATION UNDER THE FOOD AND NUTRITION PROGRAM.

    (a) Findings- Congress finds that--

      (1) nutrition education under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) plays an essential role in improving the dietary and physical activity practices of low-income people in the United States, helping to reduce food insecurity, prevent obesity, and reduce the risks of chronic disease;

      (2) expert organizations, such as the Institute of Medicine, indicate that dietary and physical activity behavior change is more likely to result from the combined application of public health approaches and education than from education alone; and

      (3) State programs are implementing nutrition education using effective strategies, including direct education, group activities, and social marketing.

    (b) Sense of Congress- It is the sense of Congress that--

      (1) the Secretary should support and encourage effective interventions for nutrition education under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.), including coordination with public health approaches and traditional education, to increase the likelihood that recipients of food and nutrition program benefits and people who are potentially eligible for those benefits will choose diets and physical activity practices consistent with the Dietary Guidelines for Americans;

      (2) to promote the most effective implementation of publicly-funded programs, State nutrition education activities under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.)--

        (A) should be coordinated with other federally-funded food assistance and public health programs; and

        (B) should leverage public/private partnerships to maximize the resources and impact of the programs; and

      (3) funds provided under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) for nutrition education should be used only for activities that promote diets and physical activity consistent with the Dietary Guidelines for Americans among--

        (A) recipients of food and nutrition program benefits; and

        (B) people who are potentially eligible for those benefits.

Subtitle B--Food Distribution Program on Indian Reservations

SEC. 4501. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.

    (a) In General- Section 4 of the Food and Nutrition Act of 2007 (7 U.S.C. 2013) is amended by striking subsection (b) and inserting the following:

    `(b) Food Distribution Program on Indian Reservations-

      `(1) IN GENERAL- Distribution of commodities, with or without the food and nutrition program, shall be made whenever a request for concurrent or separate food program operations, respectively, is made by a tribal organization.

      `(2) ADMINISTRATION-

        `(A) IN GENERAL- Subject to subparagraphs (B) and (C), in the event of distribution on all or part of an Indian reservation, the appropriate agency of the State government in the area involved shall be responsible for the distribution.

        `(B) ADMINISTRATION BY TRIBAL ORGANIZATION- If the Secretary determines that a tribal organization is capable of effectively and efficiently administering a distribution described in paragraph (1), then the tribal organization shall administer the distribution.

        `(C) PROHIBITION- The Secretary shall not approve any plan for a distribution described in paragraph (1) that permits any household on any Indian reservation to participate simultaneously in the food and nutrition program and the distribution of federally donated foods.

      `(3) DISQUALIFIED PARTICIPANTS- An individual who is disqualified from participation in the food distribution program on Indian reservations under this subsection is not eligible to participate in the food and nutrition program under this Act.

      `(4) ADMINISTRATIVE COSTS- The Secretary is authorized to pay such amounts for administrative costs and distribution costs on Indian reservations as the Secretary finds necessary for effective administration of such distribution by a State agency or tribal organization.

      `(5) BISON MEAT- Subject to the availability of appropriations, the Secretary may purchase bison meat for recipients of food distributed under this subsection, including bison meat from--

        `(A) Native American bison producers; and

        `(B) producer-owned cooperatives of bison ranchers.

      `(6) TRADITIONAL FOOD FUND-

        `(A) IN GENERAL- Subject to the availability of appropriations, the Secretary shall establish a fund for use in purchasing traditional foods for recipients of food distributed under this subsection.

        `(B) SURVEY- In carrying out this paragraph, the Secretary shall--

          `(i) survey participants of the food distribution program on Indian reservations established under this subsection to determine which traditional foods are most desired by those participants; and

          `(ii) purchase or offer to purchase those traditional foods that may be procured cost-effectively.

        `(C) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Secretary to carry out this paragraph $5,000,000 for each of fiscal years 2008 through 2012.'.

    (b) FDPIR Food Package- Not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes--

      (1) how the Secretary derives the process for determining the food package under the food distribution program on Indian reservations established under section 4(b) of the Food and Nutrition Act of 2007 (7 U.S.C. 2013(b)) (referred to in this subsection as the `food package');

      (2) the extent to which the food package--

        (A) addresses the nutritional needs of low-income Americans compared to the food and nutrition program, particularly for very low-income households;

        (B) conforms (or fails to conform) to the 2005 Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341);

        (C) addresses (or fails to address) the nutritional and health challenges that are specific to Native Americans; and

        (D) is limited by distribution costs or challenges of infrastructure;

      (3) any plans of the Secretary to revise and update the food package to conform with the most recent Dietary Guidelines for Americans, including any costs associated with the planned changes; and

      (4) if the Secretary does not plan changes to the food package, the rationale of the Secretary for retaining the food package.

Subtitle C--Administration of Emergency Food Assistance Program and Commodity Supplemental Food Program

SEC. 4601. EMERGENCY FOOD ASSISTANCE.

    (a) State Plan- Section 202A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking subsection (a) and inserting the following:

    `(a) Plans- To receive commodities under this Act, every 3 years, a State shall submit to the Secretary an operation and administration plan for the provision of assistance under this Act.'.

    (b) Donated Wild Game- Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended in the first sentence by inserting `and donated wild game' before the period at the end.

SEC. 4602. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93-86) is amended by striking subsection (g) and inserting the following:

    `(g) Prohibition- Notwithstanding any other provision of law (including regulations), the Secretary may not require a State or local agency to prioritize assistance to a particular group of individuals that are--

      `(1) low-income persons aged 60 and older; or

      `(2) women, infants, and children.'.

Subtitle D--Senior Farmers' Market Nutrition Program

SEC. 4701. EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY FOR OTHER PROGRAMS.

    (a) In General- Section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007) is amended--

      (1) in subsection (a), by striking `each of fiscal years 2003 through 2007' and inserting `fiscal year 2008 and each fiscal year thereafter';

      (2) by redesignating subsections (b) and (c) as subsections (c) and (e), respectively;

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

    `(b) Additional Funds- In addition to the amounts made available under subsection (a), for fiscal year 2008 and each fiscal year thereafter, of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall use $10,000,000 to expand the program established under this section.'; and

      (4) by inserting after subsection (c) (as redesignated by paragraph (2)) the following:

    `(d) Exclusion of Benefits in Determining Eligibility for Other Programs- The value of any benefit provided under the program under this section shall not be taken into consideration in determining the eligibility of an individual for any other Federal or State assistance program.'.

    (b) Effective Date- The amendments made by subsection (a) take effect on the date of enactment of this Act.

SEC. 4702. PROHIBITION ON COLLECTION OF SALES TAX.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007) is amended by inserting after subsection (d) (as added by section 4701(a)(4)) the following:

    `(e) Prohibition on Collection of Sales Tax- A State that collects any sales tax on the purchase of food using a benefit provided under the program under this section shall not be eligible to participate in the program.'.

Subtitle E--Reauthorization of Federal Food Assistance Programs

SEC. 4801. FOOD AND NUTRITION PROGRAM.

    (a) Grants for Simple Application and Eligibility Determination Systems and Improved Access to Benefits- Section 11(t)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2020(t)(1)) is amended by striking `For each of fiscal years 2003 through 2007' and inserting `For fiscal year 2008 and each fiscal year thereafter'.

    (b) Funding of Employment and Training Programs- Section 16(h)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)) is amended--

      (1) in subparagraph (A)(vii), by striking `for each of fiscal years 2002 through 2007' and inserting `for fiscal year 2008 and each fiscal year thereafter'; and

      (2) in subparagraph (E)(i), by striking `for each of fiscal years 2002 through 2007' and inserting `for fiscal year 2008 and each fiscal year thereafter'.

    (c) Reductions in Payments for Administrative Costs- Section 16(k)(3) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(k)(3)) is amended--

      (1) in the first sentence of subparagraph (A), by striking `for each of fiscal years 1999 through 2007' and inserting `for fiscal year 2008 and each fiscal year thereafter'; and

      (2) in subparagraph (B)(ii), by striking `through fiscal year 2007'.

    (d) Cash Payment Pilot Projects- Section 17(b)(1)(B)(vi) of the Food and Nutrition Act of 2007 (7 U.S.C. 2026(b)(1)(B(vi)) is amended by striking `through October 1, 2007'.

    (e) Authorization of Appropriations- Section 18(a)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2027(a)(1)) is amended in the first sentence by striking `for each of the fiscal years 2003 through 2007' and inserting `for fiscal year 2008 and each fiscal year thereafter'.

    (f) Consolidated Block Grants for Puerto Rico and American Samoa- Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) by striking `for each of fiscal years 2004 through 2007' and inserting `for fiscal year 2008 and each fiscal year thereafter'.

    (g) Assistance for Community Food Projects- Section 25 of the Food and Nutrition Act of 2007 (7 U.S.C. 2034) is amended--

      (1) in subsection (b)(2), by striking subparagraph (B) and inserting the following:

        `(B) $10,000,000 for each of fiscal years 2008 through 2012.'; and

      (2) in subsection (h)(4), by striking `2007' and inserting `2012'.

SEC. 4802. COMMODITY DISTRIBUTION.

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

    (b) Commodity Distribution Program- Section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93-86) is amended in the first sentence by striking `years 1991 through 2007' and inserting `year 2008 and each fiscal year thereafter'.

    (c) Commodity Supplemental Food Program- Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93-86) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1), by striking `each of fiscal years 2003 through 2007' and inserting `fiscal year 2008 and each fiscal year thereafter'; and

        (B) in paragraph (2)(B), by striking `(B) FISCAL YEARS 2004 THROUGH 2007- ' and all that follows through `2007' and inserting the following:

        `(B) SUBSEQUENT FISCAL YEARS- For fiscal year 2004 and each subsequent fiscal year';

      (2) in subsection (d)(2), by striking `each of the fiscal years 1991 through 2007' and inserting `fiscal year 2008 and each fiscal year thereafter'; and

      (3) in subsection (g)--

        (A) by striking `If a local' and inserting the following:

      `(1) IN GENERAL- If a local'; and

        (B) by adding at the end the following:

      `(2) STATE OPTION- Subject to a determination by the Secretary that annual appropriations have enabled every State seeking to participate in the commodity supplemental food program to participate in that program, a State may serve low-income persons aged 60 and older that have a household income that is not more than 185 percent of the most recent annual Federal Poverty Income Guidelines published by the Department of Health and Human Services, if--

        `(A) the State has submitted to the Secretary justification for that service; and

        `(B) the Secretary has approved the request of the State.'.

    (d) Distribution of Surplus Commodities to Special Nutrition Projects- Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence by striking `2007' and inserting `2012'.

SEC. 4803. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

    Section 4403(f) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3171 note; Public Law 107-171) is amended by striking `2007' and inserting `2012'.

Subtitle F--Miscellaneous

SEC. 4901. PERIODIC SURVEYS OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES.

    Section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755) is amended by adding at the end the following:

    `(f) Periodic Surveys of Foods Purchased by School Food Authorities-

      `(1) IN GENERAL- For fiscal year 2008 and every fifth fiscal year thereafter, the Secretary shall carry out a nationally representative survey of the foods purchased during the most recent school year for which data is available by school authorities participating in the national school lunch program.

      `(2) REPORT- On completion of each survey, the Secretary shall submit to Congress a report that describes the results of the survey.

      `(3) FUNDING- Of the funds made available under section 3, the Secretary shall use to carry out this subsection not more than $3,000,000 for fiscal year 2008 and every fifth fiscal year thereafter.'.

SEC. 4902. PURCHASES OF LOCALLY GROWN FRUITS AND VEGETABLES.

    Section 9(j) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:

    `(j) Purchases of Locally Grown Fruits and Vegetables- The Secretary shall--

      `(1) encourage institutions receiving funds under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to purchase locally grown fruits and vegetables, to the maximum extent practicable and appropriate;

      `(2) advise institutions participating in a program described in paragraph (1) of the policy described in that paragraph and post information concerning the policy on the website maintained by the Secretary; and

      `(3) allow institutions receiving funds under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), including the Department of Defense, to use a geographic preference for the procurement of locally grown fruits and vegetables.'.

SEC. 4903. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

    Section 18(i) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(i)) is amended--

      (1) in paragraph (1)(C), by inserting `promotes healthy food education in the school curriculum and' before `incorporates';

      (2) by redesignating paragraph (2) as paragraph (4);

      (3) by inserting after paragraph (1) the following:

      `(2) ADMINISTRATION- In providing grants under paragraph (1), the Secretary shall give priority to projects that can be replicated in schools.

      `(3) PILOT PROGRAM FOR HIGH-POVERTY SCHOOLS-

        `(A) DEFINITIONS- In this paragraph:

          `(i) ELIGIBLE PROGRAM- The term `eligible program' means--

            `(I) a school-based program with hands-on vegetable gardening and nutrition education that is incorporated into the curriculum for 1 or more grades at 2 or more eligible schools; or

            `(II) a community-based summer program with hands-on vegetable gardening and nutrition education that is part of, or coordinated with, a summer enrichment program at 2 or more eligible schools.

          `(ii) ELIGIBLE SCHOOL- The term `eligible school' means a public school, at least 50 percent of the students of which are eligible for free or reduced price meals under this Act.

        `(B) ESTABLISHMENT- The Secretary shall carry out a pilot program under which the Secretary shall provide to nonprofit organizations or public entities in not more than 5 States grants to develop and run, through eligible programs, community gardens at eligible schools in the States that would--

          `(i) be planted, cared for, and harvested by students at the eligible schools; and

          `(ii) teach the students participating in the community gardens about agriculture, sound farming practices, and diet.

        `(C) PRIORITY STATES- Of the States provided a grant under this paragraph--

          `(i) at least 1 State shall be among the 15 largest States, as determined by the Secretary;

          `(ii) at least 1 State shall be among the 16th to 30th largest States, as determined by the Secretary; and

          `(iii) at least 1 State shall be a State that is not described in clause (i) or (ii).

        `(D) USE OF PRODUCE- Produce from a community garden provided a grant under this paragraph may be--

          `(i) used to supplement food provided at the eligible school;

          `(ii) distributed to students to bring home to the families of the students; or

          `(iii) donated to a local food bank or senior center nutrition program.

        `(E) NO COST-SHARING REQUIREMENT- A nonprofit organization or public entity that receives a grant under this paragraph shall not be required to share the cost of carrying out the activities assisted under this paragraph.

        `(F) EVALUATION- A nonprofit organization or public entity that receives a grant under this paragraph shall be required to cooperate in an evaluation in accordance with paragraph (1)(H).

        `(G) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this paragraph $10,000,000.'; and

      (4) in paragraph (4) (as redesignated by paragraph (2)), by inserting `(other than paragraph (3))' after `this subsection'.

SEC. 4904. FRESH FRUIT AND VEGETABLE PROGRAM.

    (a) In General- The Richard B. Russell National School Lunch Act is amended by inserting after section 18 (42 U.S.C. 1769) the following:

`SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.

    `(a) In General- For the school year beginning July 2008 and each subsequent school year, the Secretary shall provide grants to States to carry out a program to make free fresh fruits and vegetables available in elementary schools (referred to in this section as the `program').

    `(b) Program- A school participating in the program shall make free fresh fruits and vegetables available to students throughout the school day (or at such other times as are considered appropriate by the Secretary) in 1 or more areas designated by the school.

    `(c) Funding to States-

      `(1) MINIMUM GRANT- The Secretary shall provide to each of the 50 States and the District of Columbia an annual grant in an amount equal to 1 percent of the funds made available for a fiscal year to carry out the program.

      `(2) ADDITIONAL FUNDING- Of the funds remaining after grants are made under paragraph (1), the Secretary shall allocate additional funds to each State that is operating a school lunch program under section 4 based on the proportion that--

        `(A) the population of the State; bears to

        `(B) the population of the United States.

    `(d) Selection of Schools-

      `(1) IN GENERAL- In selecting schools to participate in the program, each State shall--

        `(A) ensure that each school chosen to participate in the program is a school--

          `(i) except as provided in paragraph (2), in which not less than 50 percent of the students are eligible for free or reduced price meals under this Act; and

          `(ii) that submits an application in accordance with subparagraph (C); and

        `(B) to the maximum extent practicable, give the highest priority to schools with the highest proportion of children who are eligible for free or reduced price meals under this Act;

        `(C) solicit applications from interested schools that include--

          `(i) information pertaining to the percentage of students enrolled in the school submitting the application who are eligible for free or reduced price school lunches under this Act;

          `(ii) a certification of support for participation in the program signed by the school food manager, the school principal, and the district superintendent (or equivalent positions, as determined by the school); and

          `(iii) such other information as may be requested by the Secretary;

        `(D) give priority to schools that submit a plan for implementation of the program that includes a partnership with 1 or more entities that provide non-Federal resources (including entities representing the fruit and vegetable industry) for--

          `(i) the acquisition, handling, promotion, or distribution of fresh and dried fruits and fresh vegetables; or

          `(ii) other support that contributes to the purposes of the program;

        `(E) give priority to schools that provide evidence of efforts to integrate activities carried out under this section with other efforts to promote sound health and nutrition, reduce overweight and obesity, or promote physical activity; and

        `(F) ensure that each school selected is an elementary school.

      `(2) EXCEPTION- Clause (i) of paragraph (1)(A) shall not apply to a State if the State does not have a sufficient number of schools that meet the requirement of that clause.

      `(3) CONSORTIA- A consortia of schools may apply for funding under this section.

    `(e) Notice of Availability- To be eligible to participate in the program, a school shall widely publicize within the school the availability of free fresh fruits and vegetables under the program.

    `(f) Per-Student Grant- The per-student grant provided to a school under this section shall be--

      `(1) determined by a State agency; and

      `(2) not less than $50, nor more than $75, annually.

    `(g) Limitation- To the maximum extent practicable, each State agency shall ensure that in making available to students the fruits and vegetables provided under this section, schools participating in the program offer the fruits and vegetables separately from meals otherwise provided at the school under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

    `(h) Schools on Indian Reservations- The Secretary shall ensure that not less than 100 of the schools chosen to participate in the program are schools operated on Indian reservations.

    `(i) Evaluation and Reports-

      `(1) IN GENERAL- The Secretary shall conduct an evaluation of the program, including a determination as to whether children experienced, as a result of participating in the program--

        `(A) increased consumption of fruits and vegetables;

        `(B) other dietary changes, such as decreased consumption of less nutritious foods; and

        `(C) such other outcomes as are considered appropriate by the Secretary.

      `(2) REPORT- Not later than September 30, 2011, the Secretary shall submit to the Committee on Education and Labor of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that describes the results of the evaluation under paragraph (1).

    `(j) Funding-

      `(1) IN GENERAL- Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section--

        `(A) on October 1, 2007, $225,000,000; and

        `(B) on October 1, 2008, and each October 1 thereafter, the amount made available for the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

      `(2) EVALUATION FUNDING- On October 1, 2007, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out the evaluation required under subsection (i), $3,000,000, to remain available until expended.

      `(3) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section any funds transferred for that purpose, without further appropriation.

      `(4) AUTHORIZATION OF APPROPRIATIONS- In addition to any other amounts made available to carry out this section, there are authorized to be appropriated such sums as are necessary to expand the program established under this section.

      `(5) ADMINISTRATIVE COSTS- Of funds made available to carry out this section for a fiscal year, the Secretary may use not more than $500,000 for the administrative costs of carrying out the program.

      `(6) REALLOCATION-

        `(A) AMONG STATES- The Secretary may reallocate any amounts made available to carry out this section that are not obligated or expended by a date determined by the Secretary.

        `(B) WITHIN STATES- A State that receives a grant under this section may reallocate any amounts made available under the grant that are not obligated or expended by a date determined by the Secretary.'.

    (b) Conforming Amendments- Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended--

      (1) by striking subsection (g); and

      (2) by redesignating subsections (h) through (k) as subsections (g) through (j), respectively.

SEC. 4905. TEAM NUTRITION NETWORK.

    Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is amended by striking subsection (l) and inserting the following:

    `(l) Funding-

      `(1) MANDATORY FUNDING-

        `(A) IN GENERAL- On October 1, 2008, and on each October 1 thereafter through October 1, 2011, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section $3,000,000, to remain available until expended.

        `(B) RECEIPT AND ACCEPTANCE- The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under subparagraph (A), without further appropriation.

        `(C) NUTRITIONAL HEALTH OF SCHOOL CHILDREN- In allocating funds made available under this paragraph, the Secretary shall give priority to carrying out subsections (a) through (g).

      `(2) AUTHORIZATION OF APPROPRIATIONS- In addition to the amounts made available under paragraph (1), there are authorized to be appropriated such sums as are necessary to carry out this section.'.

SEC. 4906. BUY AMERICAN REQUIREMENTS.

    (a) Findings- Congress finds the following:

      (1) Federal law requires that commodities and products purchased with Federal funds be, to the extent practicable, of domestic origin.

      (2) Federal Buy American statutory requirements seek to ensure that purchases made with Federal funds benefit domestic producers.

      (3) The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) requires the use of domestic food products for all meals served under the program, including foods products for all meals served under the program, including foods products purchased with local funds.

    (b) Buy American Statutory Requirements- The Department of Agriculture should undertake training, guidance, and enforcement of the various current Buy American statutory requirements and regulations, including those of the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the Department of Defense fresh fruit and vegetable distribution program.

SEC. 4907. MINIMUM PURCHASES OF FRUITS, VEGETABLES, AND NUTS THROUGH SECTION 32 TO SUPPORT DOMESTIC NUTRITION ASSISTANCE PROGRAMS.

    (a) Minimum Funding for Purchases of Fruits, Vegetables, and Nuts- In lieu of the purchases of fruits, vegetables, and nuts required by section 10603 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c-4), the Secretary shall purchase fruits, vegetables, and nuts for the purpose of providing nutritious foods for use in domestic nutrition assistance programs, using, of the funds made available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), the following amounts:

      (1) $390,000,000 for fiscal year 2008.

      (2) $393,000,000 for fiscal year 2009.

      (3) $399,000,000 for fiscal year 2010.

      (4) $403,000,000 for fiscal year 2011.

      (5) $406,000,000 for fiscal year 2012 and each fiscal year thereafter.

    (b) Form of Purchases- Fruits, vegetables, and nuts may be purchased under this section in frozen, canned, dried, or fresh form.

    (c) Value-Added Products- The Secretary may offer value-added products containing fruits, vegetables, or nuts under this section, taking into consideration--

      (1) whether demand exists for the value-added product; and

      (2) the interests of entities that receive fruits, vegetables, and nuts under this section.

SEC. 4908. AGRICULTURAL POLICY AND PUBLIC HEALTH.

    (a) In General- The Comptroller General of the United States shall conduct a study to assess whether the agricultural policies of the United States have an impact on health, nutrition, overweight and obesity, and diet-related chronic disease.

    (b) Requirements- In conducting the study under subsection (a), the Comptroller General of the United States shall--

      (1) review, and evaluate the methodological rigor of, existing literature and studies relating to the subjects of the study required under subsection (a);

      (2) summarize the existing literature and explain the extent, if any, to which the literature shows a clear association or causal relationship between United States agricultural policy and health, nutrition, overweight and obesity, and diet-related chronic diseases; and

      (3) if the existing literature shows that there is a relationship between United States agricultural policy and health, nutrition, overweight and obesity, and diet-related chronic diseases, make recommendations to guide or revise Federal agricultural policies to improve health and reduce obesity and diet-related chronic disease.

    (c) Report- Not later than 18 months after the date of enactment of this section, the Comptroller General of the United States shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under this section.

SEC. 4909. CONFORMING AMENDMENTS TO RENAMING OF FOOD STAMP PROGRAM.

    (a) In General-

      (1) Section 4 of the Food and Nutrition Act of 2007 (7 U.S.C. 2013) is amended in the section heading by striking `FOOD STAMP PROGRAM' and inserting `FOOD AND NUTRITION PROGRAM'.

      (2) Section 5(h)(2)(A) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(h)(2)(A)) is amended by striking `Food Stamp Disaster Task Force' and inserting `Food and Nutrition Disaster Task Force'.

      (3) Section 6 of the Food and Nutrition Act of 2007 (7 U.S.C. 2015) is amended--

        (A) in subsection (d)(3), by striking `eligible for food stamps' and inserting `eligible to receive food and nutrition assistance';

        (B) in subsection (g), by striking `food stamps' and inserting `food and nutrition assistance';

        (C) in subsection (j), in the subsection heading, by striking `Food Stamp' and inserting `Food and Nutrition'; and

        (D) in subsection (o)--

          (i) in paragraph (2), by striking `food stamp benefits' and inserting `food and nutrition assistance'; and

          (ii) in paragraph (6)--

            (I) in subparagraph (A)--

(aa) in clause (i), by striking `food stamps' and inserting `food and nutrition assistance'; and

(bb) in clause (ii)--

(AA) in the matter preceding subclause (I), by striking `a food stamp recipient' and inserting `a member of a household that receives food and nutrition assistance'; and

(BB) by striking `food stamp benefits' each place it appears and inserting `food and nutrition assistance'; and

            (II) in subparagraphs (D) and (E), by striking `food stamp recipients' each place it appears and inserting `members of households that receive food and nutrition assistance'.

      (4) Section 7 of the Food and Nutrition Act of 2007 (7 U.S.C. 2016) (as amended by section 4202(a)(11)) is amended--

        (A) in subsection (h)--

          (i) in paragraph (3)(B)(ii), by striking `food stamp households' and inserting `households receiving food and nutrition assistance'; and

          (ii) in paragraph (7), by striking `food stamp issuance' and inserting `food and nutrition assistance issuance'; and

        (B) in subsection (j)--

          (i) in paragraph (2), by striking `food stamp benefits' and inserting `food and nutrition assistance benefits'; and

          (ii) in paragraph (3), by striking `food stamp retail' and inserting `food and nutrition assistance retail'.

      (5) Section 9(b)(1) of that Food and Nutrition Act of 2007 (7 U.S.C. 2018(b)(1)) is amended by striking `food stamp households' and inserting `households that receive food and nutrition assistance'.

      (6) Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) (as amended by section 4202(b)(9)(B)(III)) is amended--

        (A) in subsection (e)--

          (i) in paragraph (2)--

            (I) in subparagraph (A), by striking `food stamp offices' and inserting `food and nutrition assistance offices'; and

            (II) in subparagraph (B)--

(aa) in clause (iii), by striking `food stamp office' and inserting `food and nutrition assistance office';

(bb) in clause (v)(II), by striking `food stamps' and inserting `food and nutrition assistance'; and

(cc) in clause (vii), by striking `food stamp offices' and inserting `food and nutrition assistance offices';

          (ii) in paragraph (14), by striking `food stamps' and inserting `food and nutrition assistance';

          (iii) in paragraph (15), by striking `food stamps' and inserting `food and nutrition assistance'; and

          (iv) in paragraph (23)--

            (I) in the matter preceding subparagraph (A), by striking `Simplified Food Stamp Program' and inserting `Simplified Food and Nutrition Assistance Program'; and

            (II) in subparagraph (A), by striking `food stamp benefits' and inserting `food and nutrition assistance';

        (B) in subsection (k), by striking `may issue, upon request by the State agency, food stamps' and inserting `may provide, on request by the State agency, food and nutrition assistance';

        (C) in subsection (l), by striking `food stamp participation' and inserting `food and nutrition program participation';

        (D) in subsections (q) and (r), in the subsection headings, by striking `Food Stamps' each place it appears and inserting `Food and Nutrition Assistance';

        (E) in subsection (s), by striking `food stamp benefits' each place it appears and inserting `food and nutrition assistance'; and

        (F) in subsection (t)(1)--

          (i) in subparagraph (A), by striking `food stamp application' and inserting `food and nutrition assistance application'; and

          (ii) in subparagraph (B), by striking `food stamp benefits' and inserting `food and nutrition assistance'.

      (7) Section 14(b) of the Food and Nutrition Act of 2007 (7 U.S.C. 2023(b)) is amended by striking `food stamp allotments' and inserting `food and nutrition assistance'.

      (8) Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025) is amended--

        (A) in subsection (a)(4), by striking `food stamp informational activities' and inserting `informational activities relating to the food and nutrition program';

        (B) in subsection (c)(9)(C), by striking `food stamp caseload' and inserting `the caseload under the food and nutrition program'; and

        (C) in subsection (h)(1)(E)(i), by striking `food stamp recipients' and inserting `households receiving food and nutrition assistance'.

      (9) Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 2026) is amended--

        (A) in subsection (a)(2), by striking `food stamp benefits' each place it appears and inserting `food and nutrition assistance benefits';

        (B) in subsection (b)--

          (i) in paragraph (1)--

            (I) in subparagraph (A), by striking `food stamp benefits' and inserting `food and nutrition assistance'; and

            (II) in subparagraph (B)--

(aa) in clause (ii)(II), by striking `food stamp recipients' and inserting `food and nutrition assistance recipients';

(bb) in clause (iii)(I), by striking `the State's food stamp households' and inserting `the number of households in the State receiving food and nutrition assistance'; and

(cc) in clause (iv)(IV)(bb), by striking `food stamp deductions' and inserting `food and nutrition assistance deductions';

          (ii) in paragraph (2), by striking `food stamp benefits' and inserting `food and nutrition assistance'; and

          (iii) in paragraph (3)--

            (I) in subparagraph (A), by striking `food stamp employment' and inserting `food and nutrition program employment';

            (II) in subparagraph (B), by striking `food stamp recipients' and inserting `food and nutrition assistance recipients';

            (III) in subparagraph (C), by striking `food stamps' and inserting `food and nutrition assistance'; and

            (IV) in subparagraph (D), by striking `food stamp benefits' and inserting `food and nutrition assistance benefits';

        (C) in subsection (c), by striking `food stamps' and inserting `food and nutrition assistance';

        (D) in subsection (d)--

          (i) in paragraph (1)(B), by striking `food stamp benefits' and inserting `food and nutrition assistance';

          (ii) in paragraph (2)--

            (I) in subparagraph (A), by striking `food stamp allotments' each place it appears and inserting `food and nutrition assistance'; and

            (II) in subparagraph (C)(ii), by striking `food stamp benefit' and inserting `food and nutrition assistance'; and

          (iii) in paragraph (3)(E), by striking `food stamp benefits' and inserting `food and nutrition assistance';

        (E) in subsections (e) and (f), by striking `food stamp benefits' each place it appears and inserting `food and nutrition assistance';

        (F) in subsection (g), in the first sentence, by striking `receipt of food stamp' and inserting `receipt of food and nutrition assistance'; and

        (G) in subsection (j), by striking `food stamp agencies' and inserting `food and nutrition program agencies'.

      (10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act of 2007 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking `food stamps' and inserting `food and nutrition assistance'.

      (11) Section 21(d)(3) of the Food and Nutrition Act of 2007 (7 U.S.C. 2030(d)(3)) is amended by striking `food stamp benefits' and inserting `food and nutrition assistance'.

      (12) Section 22 of the Food and Nutrition Act of 2007 (7 U.S.C. 2031) is amended--

        (A) in the section heading, by striking `FOOD STAMP PORTION OF MINNESOTA FAMILY INVESTMENT PLAN' and inserting `FOOD AND NUTRITION ASSISTANCE PORTION OF MINNESOTA FAMILY INVESTMENT PROJECT';

        (B) in subsections (b)(12) and (d)(3), by striking `the Food Stamp Act, as amended,' each place it appears and inserting `this Act'; and

        (C) in subsection (g)(1), by striking `the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)' and inserting `this Act'.

      (13) Section 26 of the Food and Nutrition Act of 2007 (7 U.S.C. 2035) is amended--

        (A) in the section heading, by striking `SIMPLIFIED FOOD STAMP PROGRAM' and inserting `SIMPLIFIED FOOD AND NUTRITION PROGRAM'; and

        (B) in subsection (b), by striking `simplified food stamp program' and inserting `simplified food and nutrition program'.

    (b) Conforming Cross-References-

      (1) IN GENERAL- Each provision of law described in paragraph (2) is amended (as applicable)--

        (A) by striking `food stamp program' each place it appears and inserting `food and nutrition program';

        (B) by striking `Food Stamp Act of 1977' each place it appears and inserting `Food and Nutrition Act of 2007';

        (C) by striking `Food Stamp Act' each place it appears and inserting `Food and Nutrition Act of 2007';

        (D) by striking `food stamp' each place it appears and inserting `food and nutrition assistance';

        (E) by striking `food stamps' each place it appears and inserting `food and nutrition assistance';

        (F) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking `food stamp' each place it appears and inserting `food and nutrition assistance';

        (G) in each applicable subsection and appropriations heading, by striking `Food Stamp' each place it appears and inserting `Food and Nutrition Assistance';

        (H) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking `FOOD STAMP' each place it appears and inserting `FOOD AND NUTRITION ASSISTANCE';

        (I) in each applicable title, subtitle, chapter, subchapter, and section heading, by striking `food stamps' each place it appears and inserting `food and nutrition assistance';

        (J) in each applicable subsection and appropriations heading, by striking `Food Stamps' each place it appears and inserting `Food and Nutrition Assistance'; and

        (K) in each applicable heading other than a title, subtitle, chapter, subchapter, section, subsection, or appropriations heading, by striking `FOOD STAMPS' each place it appears and inserting `FOOD AND NUTRITION ASSISTANCE'.

      (2) PROVISIONS OF LAW- The provisions of law referred to in paragraph (1) are the following:

        (A) The Hunger Prevention Act of 1988 (Public Law 100-435; 102 Stat. 1645).

        (B) The Food Stamp Program Improvements Act of 1994 (Public Law 103-225; 108 Stat. 106).

        (C) Title IV of the Farm Security and Rural Investment Act of 2002 (Public Law 107-171; 116 Stat. 305).

        (D) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note).

        (E) Section 807(b) of the Stewart B. McKinney Homeless Assistance Act (7 U.S.C. 2014 note; Public Law 100-77).

        (F) The Electronic Benefit Transfer Interoperability and Portability Act of 2000 (Public Law 106-171; 114 Stat. 3).

        (G) Section 502(b) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 2025 note; Public Law 105-185).

        (H) The National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.).

        (I) The Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.).

        (J) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

        (K) Section 8119 of the Department of Defense Appropriations Act, 1999 (10 U.S.C. 113 note; Public Law 105-262).

        (L) The Armored Car Industry Reciprocity Act of 1993 (15 U.S.C. 5901 et seq.).

        (M) Title 18, United States Code.

        (N) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

        (O) The Internal Revenue Code of 1986.

        (P) Section 650 of the Treasury and General Government Appropriations Act, 2000 (26 U.S.C. 7801 note; Public Law 106-58).

        (Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).

        (R) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).

        (S) Title 31, United States Code.

        (T) Title 37, United States Code.

        (U) The Public Health Service Act (42 U.S.C. 201 et seq.).

        (V) Titles II through XIX of the Social Security Act (42 U.S.C. 401 et seq.).

        (W) Section 406 of the Family Support Act of 1988 (Public Law 100-485; 102 Stat. 2400).

        (X) Section 232 of the Social Security Act Amendments of 1994 (42 U.S.C. 1314a).

        (Y) The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).

        (Z) The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

        (AA) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

        (BB) The Older Americans Act of 1965 (42 U.S.C. 3001 et seq.).

        (CC) Section 208 of the Intergovernmental Personnel Act of 1970 (42 U.S.C. 4728).

        (DD) The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

        (EE) The Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

        (FF) Section 658K of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i).

        (GG) The Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

        (HH) Public Law 95-348 (92 Stat. 487).

        (II) The Agriculture and Food Act of 1981 (Public Law 97-98; 95 Stat. 1213).

        (JJ) The Disaster Assistance Act of 1988 (Public Law 100-387; 102 Stat. 924).

        (KK) The Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3359).

        (LL) The Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625; 104 Stat. 4079).

        (MM) Section 388 of the Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991 (Public Law 102-25; 105 Stat. 98).

        (NN) The Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1818).

        (OO) The Act of March 26, 1992 (Public Law 102-265; 106 Stat. 90).

        (PP) Public Law 105-379 (112 Stat. 3399).

        (QQ) Section 101(c) of the Emergency Supplemental Act, 2000 (Public Law 106-246; 114 Stat. 528).

    (c) References- Any reference in any Federal, State, tribal, or local law (including regulations) to the `food stamp program' established under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to the `food and nutrition program' established under that Act.

SEC. 4910. EFFECTIVE AND IMPLEMENTATION DATES.

    (a) General Effective Date- Except as otherwise provided in this title, this title and the amendments made by this title take effect on April 1, 2008.

    (b) Implementation of Improvements to Program Benefits-

      (1) IN GENERAL- A State agency may implement the amendments made by part II of subtitle A beginning on a date (as determined by the State agency) during the period beginning on April 1, 2008, and ending on October 1, 2008.

      (2) CERTIFICATION PERIOD- At the option of a State agency, the State agency may implement 1 or more of the amendments made by sections 4103 and 4104 for a certification period that begins not earlier than the implementation date determined by the State under paragraph (1).

SEC. 4911. APPLICATION.

    (a) In General- Notwithstanding any other provision of this title or amendments made by this title, the amendments made by the provisions described in subsection (b) shall be in effect during the period beginning on the date of enactment of this Act (or such other effective date as is otherwise provided in this title) and ending on September 30, 2012.

    (b) Provisions- The provisions referred to in subsection (a) are--

      (1) section 4101;

      (2) section 4102;

      (3) section 4103;

      (4) section 4104;

      (5) section 4107;

      (6) section 4108;

      (7) section 4109;

      (8) section 4110(a)(2);

      (9) section 4208;

      (10) section 4701(a)(3);

      (11) section 4801(g); and

      (12) section 4903.

SEC. 4912. GRAIN PILOT PROGRAM.

    (a) In General- Section 17A of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766a) is amended by adding at the end the following:

    `(e) Grain Pilot Program-

      `(1) DEFINITION OF ELIGIBLE GRAIN AND GRAIN PRODUCT- In this subsection, the terms `eligible grain' and `grain product' mean a grain or bread product, including but not limited to, baked products and ready-to-eat cereals, having whole grain as the primary ingredient by weight as specified on the label or according to the recipe; except that the Secretary may review and update as necessary the definition established under this section.'

      `(2) PROGRAM-

        `(A) IN GENERAL- For the school year beginning July 2008, the Secretary shall carry out a pilot program to provide eligible grain and grain products to--

          `(i) up to 125 elementary or secondary schools operating a program under this section in each of 6 States; and

          `(ii) elementary or secondary schools operating a program under this section on 1 Indian reservation.

        `(B) REQUIREMENT- A school participating in the program shall provide eligible grain and grain products as one of the meal supplement components as described in subsection (d) to students participating in a program authorized under this section.

        `(C) FUNDING TO STATES- The Secretary shall allocate funds to each participating State based on the prior year claiming pattern for the afterschool snack program in selected schools.

      `(3) SELECTION OF SCHOOLS- In selecting schools to participate in the program under paragraph (2), the Secretary shall--

        `(A) ensure each school selected is located in a needy area as defined in subsection (c)(1); and

        `(B) solicit applications from interested schools that meet the criteria established in subparagraph (A) and include--

          `(i) a certification of support for participation in the program signed by the school food manager, the school principal, and the district superintendent (or equivalent positions, as determined by the school); and

          `(ii) such other information as may be requested by the Secretary.

      `(4) REPORT- Not later than December 31, 2010, the Secretary, acting through the Administrator of the Food and Nutrition Service, shall submit to the Committee on Education and Labor of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the pilot program.

      `(5) FUNDING- The Secretary shall use not more than $4,000,000 to carry out this subsection (other than paragraph (4)), of which--

        `(A) $2,000,000 shall be from funds made available to carry out the senior farmers' market nutrition program under section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007); and

        `(B) $2,000,000 shall be from funds made available to carry out assistance for community food projects under section 25 of the Food and Nutrition Act of 2007 (7 U.S.C. 2034).

      `(6) EVALUATION AND ADMINISTRATION- Of the funding made available the Secretary shall use not more than $3,000,000 to carry out the evaluation required in paragraph (4) and for the administration of the program.'.

    (b) Effective Date- The amendment made by this section shall take effect on the date of enactment of this Act.

SEC. 4913. REPORT ON FEDERAL HUNGER PROGRAMS.

    Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that contains--

      (1) a complete list of all Federal programs that seek to alleviate hunger or food insecurity or improve nutritional intake, including programs that support collaboration, coordination, research, or infrastructure related to these issues;

      (2) for each program listed under paragraph (1)--

        (A) the total amount of Federal funds used to carry out the program in the most recent fiscal year for which comparable data is available;

        (B) a comparison of the amount described in subparagraph (A) with the amount used to carry out a similar program 10 and 20 years previously;

        (C) to the maximum extent practicable, the amount of Federal funds used under the program to provide direct food aid to individuals (including the amount used for the costs of administering the program); and

        (D) a review to determine whether the program has been independently reviewed for effectiveness with respect to achieving the goals of the program, including--

          (i) the findings of the independent review; and

          (ii) for the 10 highest-cost programs, a determination of whether the review was conducted in accordance with accepted research principles;

      (3) for the 10- and 20-year periods before the date of enactment of this Act, and for the most recent year for which data is available, the estimated number of people in the United States who are hungry (or food insecure) or obese; and

      (4) as of the date of submission of the report--

        (A) the number of employees of the Department of Agriculture, including contractors and other individuals whose salary is paid in full or part by the Department; and

        (B) the number of farmers and other agricultural producers in the United States that receive some form of assistance from the Department.

SEC. 4914. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT PROGRAM.

    (a) Definitions- In this section:

      (1) ELIGIBLE ENTITY- The term `eligible entity' means an entity that meets the requirements of subsection (b)(2).

      (2) VULNERABLE SUBPOPULATION-

        (A) IN GENERAL- The term `vulnerable subpopulation' means low-income individuals, unemployed individuals, and other subpopulations identified by the Secretary as being likely to experience special risks from hunger or a special need for job training.

        (B) INCLUSIONS- The term `vulnerable subpopulation' includes--

          (i) addicts (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802));

          (ii) at-risk youths (as defined in section 1432 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6472));

          (iii) individuals that are basic skills deficient (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801));

          (iv) homeless individuals (as defined in section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b));

          (v) homeless youths (as defined in section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a));

          (vi) individuals with disabilities (as defined in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102));

          (vii) low-income individuals (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)); and

          (viii) older individuals (as defined in section 102 of the Older Americans Act of 1965 (42 U.S.C. 3002)).

    (b) Food Employment Empowerment and Development Program-

      (1) ESTABLISHMENT- The Secretary shall establish a food employment empowerment and development program under which the Secretary shall make grants to eligible entities to encourage the effective use of community resources to combat hunger and the root causes of hunger by creating opportunity through food recovery and job training.

      (2) ELIGIBLE ENTITIES- To be eligible to receive a grant under this section, an entity shall be a public agency, or private nonprofit institution, that conducts, or will conduct, 2 or more of the following activities as an integral part of the normal operation of the entity:

        (A) Recovery of donated food from area restaurants, caterers, hotels, cafeterias, farms, or other food service businesses.

        (B) Distribution of meals or recovered food to--

          (i) nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code of 1986;

          (ii) entities that feed vulnerable subpopulations; and

          (iii) other agencies considered appropriate by the Secretary.

        (C) Training of unemployed and underemployed adults for careers in the food service industry.

        (D) Carrying out of a welfare-to-work job training program in combination with--

          (i) production of school meals, such as school meals served under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or

          (ii) support for after-school programs, such as programs conducted by community learning centers (as defined in section 4201(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7171(b))).

      (3) USE OF FUNDS- An eligible entity may use a grant awarded under this section for--

        (A) capital investments related to the operation of the eligible entity;

        (B) support services for clients, including staff, of the eligible entity and individuals enrolled in job training programs;

        (C) purchase of equipment and supplies related to the operation of the eligible entity or that improve or directly affect service delivery;

        (D) building and kitchen renovations that improve or directly affect service delivery;

        (E) educational material and services;

        (F) administrative costs, in accordance with guidelines established by the Secretary; and

        (G) additional activities determined appropriate by the Secretary.

      (4) PREFERENCES- In awarding grants under this section, the Secretary shall give preference to eligible entities that perform, or will perform, any of the following activities:

        (A) Carrying out food recovery programs that are integrated with--

          (i) culinary worker training programs, such as programs conducted by a food service management institute under section 21 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769b-1);

          (ii) school education programs; or

          (iii) programs of service-learning (as defined in section 101 of the National and Community Service Act of 1990 (42 U.S.C. 12511)).

        (B) Providing job skills training, life skills training, and case management support to vulnerable subpopulations.

        (C) Integrating recovery and distribution of food with a job training program.

        (D) Maximizing the use of an established school, community, or private food service facility or resource in meal preparation and culinary skills training.

        (E) Providing job skills training, life skills training, and case management support to vulnerable subpopulations.

      (5) ELIGIBILITY FOR JOB TRAINING- To be eligible to receive job training assistance from an eligible entity using a grant made available under this section, an individual shall be a member of a vulnerable subpopulation.

      (6) PERFORMANCE INDICATORS- The Secretary shall establish, for each year of the program, performance indicators and expected levels of performance for meal and food distribution and job training for eligible entities to continue to receive and use grants under this section.

      (7) TECHNICAL ASSISTANCE- The Secretary may provide such technical assistance to eligible entities as the Secretary considers appropriate to help the eligible entities in carrying out this section.

      (8) RELATIONSHIP TO OTHER LAW-

        (A) BILL EMERSON GOOD SAMARITAN FOOD DONATION ACT- An action taken by an eligible entity using a grant provided under this section shall be covered by the Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. 1791).

        (B) FOOD HANDLING GUIDELINES- In using a grant provided under this section, an eligible entity shall comply with any applicable food handling guideline established by a State or local authority.

      (9) MAXIMUM AMOUNT OF GRANT- The amount of a grant provided to an eligible entity for a fiscal year under this section shall not exceed $200,000.

    (c) Authorization of Appropriations-

      (1) IN GENERAL- There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.

      (2) TECHNICAL ASSISTANCE- Of the amount of funds that are made available for a fiscal year under paragraph (1), the Secretary shall use to provide technical assistance under subsection (b)(7) not more than the greater of--

        (A) 5 percent of the amount of funds that are made available for the fiscal year under paragraph (1); or

        (B) $1,000,000.

SEC. 4915. INFRASTRUCTURE AND TRANSPORTATION GRANTS TO SUPPORT RURAL FOOD BANK DELIVERY OF HEALTHY PERISHABLE FOODS.

    (a) Purpose- The purpose of this section is to provide grants to State and local food banks and other emergency feeding organizations (as defined in section 201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501))--

      (1) to support and expand the efforts of food banks operating in rural areas to procure and transport highly perishable and healthy food;

      (2) to improve identification of potential providers of donated food and to enhance the nonprofit food donation system, particularly in and for rural areas; and

      (3) to support the procurement of locally produced food from small and family farms and ranches for distribution to needy people.

    (b) Definition of Time-Sensitive Food Product-

      (1) IN GENERAL- In this section, the term `time-sensitive food product' means a fresh, raw, or processed food with a short time limitation for safe and acceptable consumption, as determined by the Secretary.

      (2) INCLUSIONS- The term `time-sensitive food product' includes--

        (A) fruits;

        (B) vegetables;

        (C) dairy products;

        (D) meat;

        (E) fish; and

        (F) poultry.

    (c) Grant Program-

      (1) IN GENERAL- The Secretary shall establish a program under which the Secretary shall provide grants, on a competitive basis, to expand the capacity and infrastructure of food banks, statewide food bank associations, and regional food bank collaboratives that operate in rural areas to improve the capacity of the food banks to receive, store, distribute, track, collect, and deliver time-sensitive food products made available from national and local food donors.

      (2) MAXIMUM AMOUNT- The maximum amount of a grant provided under this subsection shall be not more than $1,000,000 for a fiscal year.

      (3) USE OF FUNDS- A food bank may use a grant provided under this section for--

        (A) the development and maintenance of a computerized system for the tracking of time-sensitive food products;

        (B) capital, infrastructure, and operating costs associated with--

          (i) the collection and transportation of time-sensitive food products; or

          (ii) the storage and distribution of time-sensitive food products;

        (C) improving the security and diversity of the emergency food distribution and recovery systems of the United States through the support of--

          (i) small, midsize, or family farms and ranches;

          (ii) fisheries and aquaculture; and

          (iii) donations from local food producers and manufacturers to persons in need;

        (D) providing recovered healthy foods to food banks and similar nonprofit emergency food providers to reduce hunger in the United States; and

        (E) improving the identification of--

          (i) potential providers of donated foods;

          (ii) potential nonprofit emergency food providers; and

          (iii) persons in need of emergency food assistance in rural areas.

    (d) Audits- The Secretary shall establish fair and reasonable procedures to audit the use of funds made available to carry out this section.

    (e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 through 2012.

TITLE V--CREDIT

Subtitle A--Farm Ownership Loans

SEC. 5001. DIRECT LOANS.

    Section 302 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922) is amended--

      (1) by striking the section designation and heading and all that follows through `(a) The Secretary is authorized to' and inserting the following:

`SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

    `(a) In General- The Secretary may'; and

      (2) in subsection (a)(2), by inserting `, taking into consideration all farming experience of the applicant, without regard to any lapse between farming experiences' after `farming operations'.

SEC. 5002. PURPOSES OF LOANS.

    Section 303(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is amended--

      (1) in subparagraph (D), by striking `or' at the end;

      (2) in subparagraph (E), by striking the period at the end and inserting `; or'; and

      (3) by adding at the end the following:

        `(F) refinancing guaranteed farm ownership loans of qualified beginning farmers and ranchers under this subtitle that were used to carry out purposes described in subparagraphs (A) through (E).'.

SEC. 5003. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924) is amended--

      (1) in subsection (a)--

        (A) in paragraph (4), by inserting `or conversion to a certified organic farm in accordance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.)' after `systems';

        (B) in paragraph (5), by striking `and' at the end;

        (C) by redesignating paragraph (6) as paragraph (7); and

        (D) by inserting after paragraph (5) the following:

      `(6) the implementation of 1 or more practices under the environmental quality section of the comprehensive stewardship incentives program established under subchapter A of chapter 6 of subtitle D of title XII of the Food Security Act of 1985; and'; and

      (2) by striking subsections (b) and (c) and inserting the following:

    `(b) Priority- In making or guaranteeing loans under this section, the Secretary shall give priority to--

      `(1) qualified beginning farmers or ranchers and socially disadvantaged farmers or ranchers;

      `(2) owners or tenants who use the loans to convert to sustainable or organic agricultural production systems;

      `(3) producers who use the loans to build conservation structures or establish conservation practices to comply with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); and

      `(4) producers who have a certification from the Natural Resources Conservation Service issued pursuant to section 1240B(d) of the Food Security Act of 1985.'.

SEC. 5004. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

    Section 305(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(a)(2)) is amended by striking `$200,000' and inserting `$300,000'.

SEC. 5005. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935) is amended--

      (1) in subsection (a)(1), by inserting `and socially disadvantaged farmers and ranchers' after `ranchers';

      (2) in subsection (b)--

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

      `(1) PRINCIPAL-

        `(A) PURCHASE PRICE OF $500,000 OR LESS- Each loan made under this section for a purchase price that is $500,000 or less, shall be in an amount that does not exceed 45 percent of the lesser of--

          `(i) the purchase price; or

          `(ii) the appraised value of the farm or ranch to be acquired.

        `(B) PURCHASE PRICE GREATER THAN $500,000- Each loan made under this section for a purchase price that is greater than $500,000, shall be in an amount that does not exceed 45 percent of the lesser of--

          `(i) $500,000; or

          `(ii) the appraised value of the farm or ranch to be acquired.';

        (B) by striking paragraph (2) and inserting the following:

      `(2) INTEREST RATE- The interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of--

        `(A) the difference obtained by subtracting 400 basis points from the interest rate for regular farm ownership loans under this subtitle; or

        `(B) 2 percent.'; and

        (C) in paragraph (3), by striking `15' and inserting `20';

      (3) in subsection (c)--

        (A) in paragraph (1), by striking `10 percent' and inserting `5 percent';

        (B) by striking paragraph (2);

        (C) by redesignating paragraph (3) as paragraph (2); and

        (D) in subparagraph (B) of paragraph (2) (as so redesignated), by striking `15-year' and inserting `20-year'; and

      (4) in subsection (d)--

        (A) in paragraph (3), by striking the `and' at the end;

        (B) in paragraph (4), by striking the period at the end and inserting `; and'; and

        (C) by adding at the end the following:

      `(5) establish annual performance goals to promote the use of the down payment loan program and other joint financing participation loans as the preferred choice for direct real estate loans made by any lender to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher.'.

SEC. 5006. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.

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

`SEC. 310F. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.

    `(a) In General- Subject to subsection (c), the Secretary shall, in accordance with each condition described in subsection (b), provide a prompt payment guarantee for any loan made by a private seller of farmland or ranch land to a qualified beginning farmer or rancher on a contract land sale basis.

    `(b) Conditions for Guarantee- To receive a guarantee for a loan by the Secretary under subsection (a)--

      `(1) the qualified beginning farmer or rancher shall--

        `(A) on the date on which the contract land sale that is the subject of the loan is complete, own and operate the farmland or ranch land that is the subject of the contract land sale;

        `(B) on the date on which the contract land sale that is the subject of the loan is commenced--

          `(i) have a credit history that--

            `(I) includes a record of satisfactory debt repayment, as determined by the Secretary; and

            `(II) is acceptable to the Secretary; and

          `(ii) demonstrate to the Secretary that the qualified beginning farmer or rancher is unable to obtain sufficient credit without a guarantee to finance any actual need of the qualified beginning farmer or rancher at a reasonable rate or term;

      `(2) the loan made by the private seller of farmland or ranch land to the qualified beginning farmer or rancher on a contract land sale basis shall meet applicable underwriting criteria, as determined by the Secretary; and

      `(3) to carry out the loan--

        `(A) a commercial lending institution shall agree to serve as an escrow agent; or

        `(B) the private seller of farmland or ranch land, in cooperation with the qualified beginning farmer or rancher, shall use an appropriate alternate arrangement, as determined by the Secretary.

    `(c) Limitations-

      `(1) DOWN PAYMENT- The Secretary shall not guarantee a loan made by a private seller of farmland or ranch land to a qualified beginning farmer or rancher under subsection (a) if the contribution of the qualified beginning farmer or rancher to the down payment for the farmland or ranch land that is the subject of the contract land sale would be an amount less than 5 percent of the purchase price of the farmland or ranch land.

      `(2) MAXIMUM PURCHASE PRICE- The Secretary shall not guarantee a loan made by a private seller of farmland or ranch land to a qualified beginning farmer or rancher under subsection (a) if the purchase price or the appraisal value of the farmland or ranch land that is the subject of the contract land sale is an amount greater than $500,000.

    `(d) Period of Guarantee- The Secretary shall guarantee a loan made by a private seller of farmland or ranch land to a qualified beginning farmer or rancher under subsection (a) for a 10-year period beginning on the date on which the Secretary guarantees the loan.

    `(e) Prompt Payment Guarantee- The Secretary shall provide to a private seller of farmland or ranch land who makes a loan to a qualified beginning farmer or rancher that is guaranteed by the Secretary, a prompt payment guarantee, which shall cover--

      `(1) 3 amortized annual installments; or

      `(2) an amount equal to 3 annual installments (including an amount equal to the total cost of any tax and insurance incurred during the period covered by the annual installments).'.

Subtitle B--Operating Loans

SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

    Section 311 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941) is amended--

      (1) by striking the section designation and all that follows through `(a) The Secretary is authorized to' and inserting the following:

`SEC. 311. PERSONS ELIGIBLE FOR LOANS.

    `(a) In General- The Secretary may';

      (2) in subsection (a)(2), by inserting `, taking into consideration all farming experience of the applicant, without regard to any lapse between farming experiences' after `farming operations'; and

      (3) in subsection (c)(1)(C), by striking `6' and inserting `7'.

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

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

SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1949) is repealed.

Subtitle C--Administrative Provisions

SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT PROGRAM.

    The Consolidated Farm and Rural Development Act is amended by adding after section 333A (7 U.S.C. 1983a) the following:

`SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT PROGRAM.

    `(a) Definitions- In this section:

      `(1) DEMONSTRATION PROGRAM- The term `demonstration program' means a demonstration program carried out by a qualified entity under the pilot program established in subsection (b)(1).

      `(2) ELIGIBLE PARTICIPANT- The term `eligible participant' means a qualified beginning farmer or rancher that--

        `(A) lacks significant financial resources or assets; and

        `(B) has an income that is less than--

          `(i) 80 percent of the median income of the area in which the eligible participant is located; or

          `(ii) 200 percent of the most recent annual Federal Poverty Income Guidelines published by the Department of Health and Human Services for that area.

      `(3) INDIVIDUAL DEVELOPMENT ACCOUNT- The term `individual development account' means a savings account described in subsection (b)(4)(A).

      `(4) QUALIFIED ENTITY-

        `(A) IN GENERAL- The term `qualified entity' means--

          `(i) 1 or more organizations--

            `(I) described in section 501(c)(3) of the Internal Revenue Code of 1986; and

            `(II) exempt from taxation under section 501(a) of such Code; or

          `(ii) a State, local, or tribal government submitting an application jointly with an organization described in clause (i).

        `(B) NO PROHIBITION ON COLLABORATION- An organization described in subparagraph (A)(i) may collaborate with a financial institution or for-profit community development corporation to carry out the purposes of this section.

    `(b) Pilot Program-

      `(1) IN GENERAL- The Secretary shall establish a pilot program to be known as the `New Farmer Individual Development Accounts Pilot Program' under which the Secretary shall work through qualified entities to establish demonstration programs--

        `(A) of at least 5 years in duration; and

        `(B) in at least 15 States.

      `(2) COORDINATION- The Secretary shall operate the pilot program through, and in coordination with the farm loan programs of, the Farm Service Agency.

      `(3) RESERVE FUNDS-

        `(A) IN GENERAL- Each demonstration program shall establish a reserve fund consisting of a non-Federal match of 25 percent of the total amount of the grant awarded to the demonstration program under this section.

        `(B) FEDERAL FUNDS- After a demonstration program has deposited in the reserve fund the non-Federal matching funds described in subparagraph (A), the Secretary shall provide to the demonstration program for deposit in the reserve fund the total amount of the grant awarded under this section.

        `(C) USE OF FUNDS- Of funds deposited in a reserve fund under subparagraphs (A) and (B), a demonstration program--

          `(i) may use up to 20 percent for administrative expenses; and

          `(ii) shall use the remainder to make matching awards described in paragraph (4)(B)(ii)(I).

        `(D) INTEREST- Any interest earned on amounts in a reserve fund established under subparagraph (A) may be used as additional matching funds for, or to administer, the demonstration program.

        `(E) GUIDANCE- The Secretary shall implement guidance regarding the investment requirements of reserve funds established under this paragraph.

      `(4) INDIVIDUAL DEVELOPMENT ACCOUNTS-

        `(A) IN GENERAL- A qualified entity receiving a grant under this section shall establish and administer an individual development account for each eligible participant.

        `(B) CONTRACT REQUIREMENTS- To be eligible to receive funds under this section from a qualified entity, each eligible participant shall enter into a contract with a qualified entity under which--

          `(i) the eligible participant shall agree--

            `(I) to deposit a certain amount of funds of the eligible participant in a personal savings account, as prescribed by the contractual agreement between the eligible participant and the qualified entity; and

            `(II) to use the funds described in subclause (I) only for 1 or more eligible expenditures described in paragraph (5)(A); and

          `(ii) the qualified entity shall agree--

            `(I) to deposit not later than 1 month after a deposit described in clause (i)(I) at least a 100-percent, and up to a 300-percent, match of that amount into the individual development account established for the eligible participant;

            `(II) with uses of funds proposed by the eligible participant; and

            `(III) to complete qualified financial training.

        `(C) LIMITATION-

          `(i) IN GENERAL- A qualified entity administering a demonstration program may provide not more than $9,000 for each fiscal year in matching funds to any eligible participant.

          `(ii) TREATMENT OF AMOUNT- An amount provided under clause (i) shall not be considered to be a gift or loan for mortgage purposes.

        `(D) INTEREST- Any interest earned on amounts in an individual development account shall be compounded with amounts otherwise deposited in the individual development account.

      `(5) ELIGIBLE EXPENDITURES-

        `(A) IN GENERAL- An eligible expenditure described in this subparagraph is an expenditure--

          `(i) to purchase farmland or make a down payment on an accepted purchase offer for farmland;

          `(ii) to make mortgage payments for up to 180 days after the date of purchase of farmland;

          `(iii) to purchase farm equipment or production, storage, or marketing infrastructure or buy into an existing value-added business;

          `(iv) to purchase breeding stock or fruit or nut trees or trees to harvest for timber;

          `(v) to pay training or mentorship expenses to facilitate specific entrepreneurial agricultural activities; and

          `(vi) for other similar expenditures, as determined by the Secretary.

        `(B) TIMING-

          `(i) IN GENERAL- An eligible expenditure may be made at any time during the 2-year period beginning on the date on which the last matching funds are provided under paragraph (4)(B)(ii)(I).

          `(ii) UNEXPENDED FUNDS- Funds remaining in an individual development account after the period described in clause (i) shall revert to the reserve fund of the demonstration program.

        `(C) PROHIBITION- An eligible participant that uses funds in an individual development account for an eligible expenditure described in subparagraph (A)(viii) shall not be eligible to receive funds for a substantially similar purpose (as determined by the Secretary) under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

    `(c) Applications-

      `(1) ANNOUNCEMENT OF DEMONSTRATION PROGRAMS- Not later than 180 days after the date of enactment of this section, the Secretary shall--

        `(A) publicly announce the availability of funding under this section for demonstration programs; and

        `(B) ensure that applications to carry out demonstration programs are widely available to qualified entities.

      `(2) SUBMISSION- Not later than 270 days after the date of enactment of this section, a qualified entity may submit to the Secretary an application to carry out a demonstration program.

      `(3) CRITERIA- In considering whether to approve an application to carry out a demonstration program, the Secretary shall assess--

        `(A) the degree to which the demonstration program described in the application is likely to aid eligible participants in successfully pursuing new farming opportunities;

        `(B) the experience and ability of the qualified entity to responsibly administer the project;

        `(C) the experience and ability of the qualified entity in recruiting, educating, and assisting eligible participants to increase economic independence and pursue or advance farming opportunities;

        `(D) the aggregate amount of direct funds from non-Federal public sector and private sources that are formally committed to the demonstration program as matching contributions;

        `(E) the adequacy of the plan for providing information relevant to an evaluation of the demonstration program; and

        `(F) such other factors as the Secretary considers to be appropriate.

      `(4) PREFERENCES- In considering an application to conduct a demonstration program under this part, the Secretary shall give preference to an application from a qualified entity that demonstrates--

        `(A) a track record of serving clients targeted by the program, including, as appropriate, socially disadvantaged farmers and ranchers; and

        `(B) expertise in dealing with financial management aspects of farming.

      `(5) APPROVAL-

        `(A) IN GENERAL- Not later than 1 year after the date of enactment of this section, in accordance with this section, the Secretary shall, on a competitive basis, approve such applications to conduct demonstration programs as the Secretary considers appropriate.

        `(B) DIVERSITY- The Secretary shall ensure, to the maximum extent practicable, that approved applications involve demonstration programs for a range of geographic areas and diverse populations.

      `(6) TERM OF AUTHORITY- If the Secretary approves an application to carry out a demonstration program, the Secretary shall authorize the applying qualified entity to carry out the project for a period of 5 years, plus an additional 2 years for the making of eligible expenditures in accordance with subsection (b)(5)(B).

    `(d) Grant Authority-

      `(1) IN GENERAL- For each year during which a demonstration program is carried out under this section, the Secretary shall make a grant to the qualified entity authorized to carry out the demonstration program.

      `(2) MAXIMUM AMOUNT OF GRANTS- The aggregate amount of grant funds provided to a demonstration program carried out under this section shall not exceed $300,000.

    `(e) Reports-

      `(1) ANNUAL PROGRESS REPORTS-

        `(A) IN GENERAL- Not later than 60 days after the end of the calendar year in which the Secretary authorizes a qualified entity to carry out a demonstration program, and annually thereafter until the conclusion of the demonstration program, the qualified entity shall prepare an annual report that includes, for the period covered by the report--

          `(i) an evaluation of the progress of the demonstration program;

          `(ii) information about the demonstration program and eligible participants;

          `(iii) the number and characteristics of individuals that have made 1 or more deposits into an individual development account;

          `(iv) the amounts in the reserve fund established with respect to the program;

          `(v) the amounts deposited in the individual development accounts;

          `(vi) the amounts withdrawn from the individual development accounts and the purposes for which the amounts were withdrawn;

          `(vii) the balances remaining in the individual development accounts;

          `(viii) such other information as the Secretary may require.

        `(B) SUBMISSION OF REPORTS- A qualified entity shall submit each report required under subparagraph (A) to the Secretary.

      `(2) REPORTS BY THE SECRETARY- Not later than 1 year after the date on which all demonstration programs under this section are concluded, the Secretary shall submit to Congress a final report that describes the results and findings of all reports and evaluations carried out under this section.

    `(f) Regulations- In carrying out this section, the Secretary may promulgate regulations to ensure that the program includes provisions for--

      `(1) the termination of demonstration programs;

      `(2) control of the reserve funds in the case of such a termination;

      `(3) transfer of demonstration programs to other qualified entities; and

      `(4) remissions from a reserve fund to the Secretary in a case in which a demonstration program is terminated without transfer to a new qualified entity.

    `(g) Funding-

      `(1) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 through 2012.

      `(2) ADMINISTRATION AND TRAINING- Of the total funds made available under paragraph (1) and in addition to any other available funds, not more than 10 percent may be used by the Secretary--

        `(A) to administer the pilot program; and

        `(B) to provide training, or hire 1 or more consultants to provide training, to instruct qualified entities in carrying out demonstration programs, including payment of reasonable costs incurred with respect to that training for--

          `(i) staff or consultant travel;

          `(ii) lodging;

          `(iii) meals; and

          `(iv) materials.'.

SEC. 5202. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.

    (a) Inventory Sales Preferences- Section 335(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (B)--

          (i) in the subparagraph heading, by inserting `; SOCIALLY DISADVANTAGED FARMER OR RANCHER' after `OR RANCHER';

          (ii) in clause (i), by inserting ` or a socially disadvantaged farmer or rancher' after `or rancher';

          (iii) in clause (ii), by inserting `or socially disadvantaged farmer or rancher' after `or rancher';

          (iv) in clause (iii), by inserting `or a socially disadvantaged farmer or rancher' after `or rancher'; and

          (v) in clause (iv), by inserting `and socially disadvantaged farmers and ranchers' after `and ranchers'; and

        (B) in subparagraph (C), by inserting `or a socially disadvantaged farmer or rancher' after `or rancher';

      (2) in paragraph (5)(B)--

        (A) in clause (i)--

          (i) in the clause heading, by inserting `; SOCIALLY DISADVANTAGED FARMER OR RANCHER' after `OR RANCHER';

          (ii) by inserting `or a socially disadvantaged farmer or rancher' after `a beginning farmer or rancher'; and

          (iii) by inserting `or the socially disadvantaged farmer or rancher' after `the beginning farmer or rancher'; and

        (B) in clause (ii)--

          (i) in the matter preceding subclause (I), by inserting `or a socially disadvantaged farmer or rancher' after `or rancher'; and

          (ii) in subclause (II), by inserting `or the socially disadvantaged farmer or rancher' after `or rancher'; and

      (3) in paragraph (6)--

        (A) in subparagraph (A), by inserting `or a socially disadvantaged farmer or rancher' after `or rancher'; and

        (B) in subparagraph (C)--

          (i) in clause (i)(I), by inserting `and socially disadvantaged farmers and ranchers' after `and ranchers'; and

          (ii) in clause (ii), by inserting `or socially disadvantaged farmers or ranchers' after `or ranchers'.

    (b) Loan Fund Set-Asides- Section 346(b)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(2)) is amended--

      (1) in subparagraph (A)--

        (A) in clause (i)--

          (i) in subclause (I), by striking `70 percent' and inserting `an amount that is not less than 75 percent of the total amount'; and

          (ii) in subclause (II)--

            (I) in the subclause heading, by inserting `; JOINT FINANCING ARRANGEMENTS' after `PAYMENT LOANS';

            (II) by striking `60 percent' and inserting `an amount not less than 2/3 of the amount'; and

            (III) by inserting `and joint financing arrangements under section 307(a)(3)(D)' after `section 310E'; and

        (B) in clause (ii)(III), by striking `2003 through 2007, 35 percent' and inserting `2008 through 2012, an amount that is not less than 50 percent of the total amount'; and

      (2) in subparagraph (B)(i), by striking `25 percent' and inserting `an amount that is not less than 40 percent of the total amount'.

SEC. 5203. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 344 (7 U.S.C. 1992) the following:

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

    `(a) In General- In making or insuring a farm loan under subtitle A or B, the Secretary shall establish a plan and promulgate regulations (including performance criteria) that promote the goal of transitioning borrowers to private commercial credit and other sources of credit in the shortest practicable period of time.

    `(b) Coordination- In carrying out this section, the Secretary shall integrate and coordinate the transition policy described in subsection (a) with--

      `(1) the borrower training program established by section 359;

      `(2) the loan assessment process established by section 360;

      `(3) the supervised credit requirement established by section 361;

      `(4) the market placement program established by section 362; and

      `(5) other appropriate programs and authorities, as determined by the Secretary.'.

SEC. 5204. LOAN AUTHORIZATION LEVELS.

    Section 346(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(1)) is amended--

      (1) in the matter preceding subparagraph (A), by striking `$3,796,000,000 for each of fiscal years 2003 through 2007' and inserting `$4,226,000,000 for each of fiscal years 2008 through 2012'; and

      (2) in subparagraph (A)--

        (A) in the matter preceding clause (i), by striking `$770,000,000' and inserting `$1,200,000,000';

        (B) in clause (i), by striking `$205,000,000' and inserting `$350,000,000'; and

        (C) in clause (ii), by striking `$565,000,000' and inserting `$850,000,000'.

SEC. 5205. INTEREST RATE REDUCTION PROGRAM.

    Section 351(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1999(a)) is amended--

      (1) in the subsection heading, by inserting `and Availability' after `Establishment';

      (2) by striking `The Secretary' and inserting the following:

      `(1) ESTABLISHMENT- The Secretary'; and

      (3) by adding at the end the following:

      `(2) AVAILABILITY- The program established under paragraph (1) shall be available with respect to new guaranteed operating loans or guaranteed operating loans restructured under this title after the date of enactment of this paragraph that meet the requirements of subsection (b).'.

SEC. 5206. DEFERRAL OF SHARED APPRECIATION RECAPTURE AMORTIZATION.

    Section 353(e)(7)(D) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)(7)(D)) is amended--

      (1) in the subparagraph heading, by inserting `AND DEFERRAL' after `REAMORTIZATION'; and

      (2) in clause (ii)--

        (A) by redesignating subclause (II) as subclause (III); and

        (B) by inserting after subclause (I) the following:

            `(II) TERM OF DEFERRAL- The term of a deferral under this subparagraph shall not exceed 1 year.'.

SEC. 5207. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM ACTIVITIES.

    Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 364 (7 U.S.C. 2006f) the following:

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

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

Subtitle D--Farm Credit

SEC. 5301. AUTHORITY TO PASS ALONG COST OF INSURANCE PREMIUMS.

    (a) In General- Section 1.12(b) of the Farm Credit Act of 1971 (12 U.S.C. 2020(b)) is amended--

      (1) in the first sentence, by striking `Each Farm' and inserting the following;

      `(1) IN GENERAL- Each Farm'; and

      (2) by striking the second sentence and inserting the following:

      `(2) COMPUTATION- The assessment on any association or other financing institution described in paragraph (1) for any period shall be computed in an equitable manner, as determined by the Corporation.'.

    (b) Rules and Regulations- Section 5.58(10) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-7(10)) is amended by inserting `and section 1.12(b)' after `part'.

SEC. 5302. TECHNICAL CORRECTION.

    Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b)) is amended in the first sentence by striking `per' and inserting `par'.

SEC. 5303. CONFIRMATION OF CHAIRMAN.

    Section 5.8(a) of the Farm Credit Act of 1971 (12 U.S.C. 2242(a)) is amended in the fifth sentence by inserting `by and with the advice and consent of the Senate,' after `designated by the President,'.

SEC. 5304. PREMIUMS.

    (a) Amount in Fund Not Exceeding Secure Base Amount- Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a--4(a)) is amended--

      (1) in paragraph (1)--

        (A) in the matter preceding subparagraph (A)--

          (i) by striking `paragraph (2)' and inserting `paragraph (3)'; and

          (ii) by striking `annual' ; and

        (B) by striking subparagraphs (A) through (D) and inserting the following:

        `(A) the average outstanding insured obligations issued by the bank for the calendar year, after deducting from the obligations the percentages of the guaranteed portions of loans and investments described in paragraph (2), multiplied by 0.0020; and

        `(B) the product obtained by multiplying--

          `(i) the sum of--

            `(I) the average principal outstanding for the calendar year on loans made by the bank that are in nonaccrual status; and

            `(II) the average amount outstanding for the calendar year of other-than-temporarily impaired investments made by the bank; by

          `(ii) 0.0010.';

      (2) by striking paragraph (4);

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

      (4) by inserting after paragraph (1) the following:

      `(2) DEDUCTIONS FROM AVERAGE OUTSTANDING INSURED OBLIGATIONS- The average outstanding insured obligations issued by the bank for the calendar year referred to in paragraph (1)(A) shall be reduced by deducting from the obligations the sum of (as determined by the Corporation)--

        `(A) 90 percent of each of--

          `(i) the average principal outstanding for the calendar year on the guaranteed portions of Federal government-guaranteed loans made by the bank that are in accrual status; and

          `(ii) the average amount outstanding for the calendar year of the guaranteed portions of Federal government-guaranteed investments made by the bank that are not permanently impaired; and

        `(B) 80 percent of each of--

          `(i) the average principal outstanding for the calendar year on the guaranteed portions of State government-guaranteed loans made by the bank that are in accrual status; and

          `(ii) the average amount outstanding for the calendar year of the guaranteed portions of State government-guaranteed investments made by the bank that are not permanently impaired.';

      (5) in paragraph (3) (as redesignated by paragraph (3)), by striking `annual'; and

      (6) in paragraph (4) (as redesignated by paragraph (3))--

        (A) in the paragraph heading, by inserting `OR INVESTMENTS' after `LOANS'; and

        (B) in the matter preceding subparagraph (A), by striking `As used' and all that follows through `guaranteed--' and inserting `In this section, the term `government-guaranteed', when applied to a loan or an investment, means a loan, credit, or investment, or portion of a loan, credit, or investments, that is guaranteed--'.

    (b) Amount in Fund Exceeding Secure Base Amount- Section 5.55(b) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(b)) is amended by striking `annual'.

    (c) Secure Base Amount- Section 5.55(c) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(c)) is amended--

      (1) by striking `For purposes' and inserting the following:

      `(1) IN GENERAL- For purposes';

      (2) by striking `(adjusted downward' and all that follows through `by the Corporation)' and inserting `(as adjusted under paragraph (2))'; and

      (3) by adding at the end the following:

      `(2) ADJUSTMENT- The aggregate outstanding insured obligations of all insured System banks under paragraph (1) shall be adjusted downward to exclude an amount equal to the sum of (as determined by the Corporation)--

        `(A) 90 percent of each of--

          `(i) the guaranteed portions of principal outstanding on Federal government-guaranteed loans in accrual status made by the banks; and

          `(ii) the guaranteed portions of the amount of Federal government-guaranteed investments made by the banks that are not permanently impaired; and

        `(B) 80 percent of each of--

          `(i) the guaranteed portions of principal outstanding on State government-guaranteed loans in accrual status made by the banks; and

          `(ii) the guaranteed portions of the amount of State government-guaranteed investments made by the banks that are not permanently impaired.'.

    (d) Determination of Loan and Investment Amounts- Section 5.55(d) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(d)) is amended--

      (1) in the paragraph heading, by striking `Principal Outstanding' and inserting `Loan and Investment Amounts';

      (2) in the matter preceding paragraph (1), by striking `For the purpose' and all that follows through `made--' and inserting `For the purpose of subsections (a) and (c), the principal outstanding on all loans made by an insured System bank, and the amount outstanding on all investments made by an insured System bank, shall be determined based on--';

      (3) by inserting `all loans or investments made' before `by' the first place it appears in each of paragraph (1), (2), and (3); and

      (4) in paragraphs (1) and (2), by inserting `or investments' after `that is able to make such loans' each place it appears.

    (e) Allocation to System Institutions of Excess Reserves- Section 5.55(e) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(e)) is amended--

      (1) in paragraph (3), by striking `the average secure base amount for the calendar year (as calculated on an average daily balance basis)' and inserting `the secure base amount';

      (2) in paragraph (4), by striking subparagraph (B) and inserting the following:

        `(B) there shall be credited to the Allocated Insurance Reserves Account of each insured System bank an amount that bears the same ratio to the total amount (less any amount credited under subparagraph (A)) as--

          `(i) the average principal outstanding for the calendar year on insured obligations issued by the bank (after deducting from the principal the percentages of the guaranteed portions of loans and investments described in subsection (a)(2)); bears to

          `(ii) the average principal outstanding for the calendar year on insured obligations issued by all insured System banks (after deducting from the principal the percentages of the guaranteed portions of loans and investments described in subsection (a)(2)).'; and

      (3) in paragraph (6)--

        (A) in subparagraph (A)--

          (i) in the matter preceding clause (i), by striking `beginning more' and all that follows through `January 1, 2005';

          (ii) by striking clause (i) and inserting the following:

          `(i) subject to subparagraph (D), pay to each insured System bank, in a manner determined by the Corporation, an amount equal to the balance in the Allocated Insurance Reserves Account of the System bank; and'; and

          (iii) in clause (ii)--

            (I) by striking `subparagraphs (C), (E), and (F)' and inserting `subparagraphs (C) and (E)'; and

            (II) by striking `, of the lesser of--' and all that follows through the end of subclause (II) and inserting `at the time of the termination of the Financial Assistance Corporation, of the balance in the Allocated Insurance Reserves Account established under paragraph (1)(B).';

        (B) in subparagraph (C)--

          (i) in clause (i), by striking `(in addition to the amounts described in subparagraph (F)(ii))'; and

          (ii) by striking clause (ii) and inserting the following:

          `(iii) TERMINATION OF ACCOUNT- On disbursement of amount equal to $56,000,000, the Corporation shall--

            `(I) close the Account established under paragraph (1)(B); and

            `(II) transfer any remaining funds in the Account to the remaining Allocated Insurance Reserves Accounts in accordance with paragraph (4)(B) for the calendar year in which the transfer occurs.'.

        (C) by striking subparagraph (F).

SEC. 5305. CERTIFICATION OF PREMIUMS.

    (a) Filing Certified Statement- Section 5.56 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5) is amended by striking subsection (a) and inserting the following:

    `(a) Filing Certified Statement- On a date to be determined in the sole discretion of the Board of Directors of the Corporation, each insured System bank that became insured before the beginning of the period for which premiums are being assessed (referred to in this section as the `period') shall file with the Corporation a certified statement showing--

      `(1) the average outstanding insured obligations for the period issued by the bank;

      `(2)(A) the average principal outstanding for the period on the guaranteed portion of Federal government-guaranteed loans that are in accrual status; and

      `(B) the average amount outstanding for the period of Federal government-guaranteed investments that are not permanently impaired (as defined in section 5.55(a)(4));

      `(3)(A) the average principal outstanding for the period on State government-guaranteed loans that are in accrual status; and

      `(B) the average amount outstanding for the period of State government-guaranteed investments that are not permanently impaired (as defined in section 5.55(a)(4));

      `(4)(A) the average principal outstanding for the period on loans that are in nonaccrual status; and

      `(B) the average amount outstanding for the period of other-than-temporarily impaired investments; and

      `(5) the amount of the premium due the Corporation from the bank for the period.'.

    (b) Premium Payments- Section 5.56 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5(c)) is amended by striking subsection (c) and inserting the following:

    `(c) Premium Payments-

      `(1) IN GENERAL- Except as provided in paragraph (2), each insured System bank shall pay to the Corporation the premium payments required under subsection (a), not more frequently than once in each calendar quarter, in such manner and at such 1 or more times as the Board of Directors shall prescribe.

      `(2) PREMIUM AMOUNT- The amount of the premium shall be established not later than 60 days after filing the certified statement specifying the amount of the premium.'.

    (c) Subsequent Premium Payments- Section 5.56 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5) is amended--

      (1) by striking subsection (d); and

      (2) by redesignating subsection (e) as subsection (d).

SEC. 5306. RURAL UTILITY LOANS.

    (a) Definition of Qualified Loan- Section 8.0(9) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--

      (1) in subparagraph (A)(iii), by striking `or' at the end;

      (2) in subparagraph (B)(ii), by striking the period at the end and inserting `; or'; and

      (3) by adding at the end the following:

        `(C) that is a loan, or an interest in a loan, for an electric or telephone facility by a cooperative lender to a borrower that has received, or is eligible to receive, a loan under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).'.

    (b) Guarantee of Qualified Loans- Section 8.6(a)(1) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6(a)(1)) is amended by inserting `applicable' before `standards' each place it appears in subparagraphs (A) and (B)(i).

    (c) Standards for Qualified Loans- Section 8.8 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-8) is amended--

      (1) in subsection (a)--

        (A) by striking the first sentence and inserting the following:

      `(1) IN GENERAL- The Corporation shall establish underwriting, security appraisal, and repayment standards for qualified loans taking into account the nature, risk profile, and other differences between different categories of qualified loans.

      `(2) SUPERVISION, EXAMINATION, AND REPORT OF CONDITION- The standards shall be subject to the authorities of the Farm Credit Administration under section 8.11.'; and

        (B) in the last sentence, by striking `In establishing' and inserting the following:

      `(3) MORTGAGE LOANS- In establishing';

      (2) in subsection (b)--

        (A) in the matter preceding paragraph (1), by inserting `with respect to loans secured by agricultural real estate' after `subsection (a)'; and

        (B) in paragraph (5)--

          (i) by striking `borrower' the first place it appears and inserting `farmer or rancher'; and

          (ii) by striking `site' and inserting `farm or ranch';

      (3) in subsection (c)(1), by inserting `secured by agricultural real estate' after `A loan';

      (4) by striking subsection (d); and

      (5) by redesignating subsection (e) as subsection (d).

    (d) Risk-Based Capital Levels- Section 8.32(a)(1) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-1(a)(1)) is amended--

      (1) by striking `With respect' and inserting the following:

        `(A) IN GENERAL- With respect'; and

      (2) by adding at the end the following:

        `(B) RURAL UTILITY LOANS- With respect to securities representing an interest in, or obligation backed by, a pool of qualified loans described in section 8.0(9)(C) owned or guaranteed by the Corporation, losses occur at a rate of default and severity reasonably related to risks in electric and telephone facility loans (as applicable), as determined by the Director.'.

SEC. 5307. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT ASSOCIATIONS.

    (a) In General- The Farm Credit Act of 1971 is amended by inserting after section 7.6 (12 U.S.C. 2279b) the following:

`SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT ASSOCIATIONS.

    `(a) Equalization of Loan-Making Powers-

      `(1) IN GENERAL-

        `(A) FEDERAL LAND BANK ASSOCIATIONS- Subject to paragraph (2), any association that owns a Federal land bank association authorized as of January 1, 2007, to make long-term loans under title I in its chartered territory within the geographic area described in subsection (b) may make short- and intermediate-term loans and otherwise operate as a production credit association under title II within that same chartered territory.

        `(B) PRODUCTION CREDIT ASSOCIATIONS- Subject to paragraph (2), any association that under its charter has title I lending authority and that owns a production credit association authorized as of January 1, 2007, to make short- and intermediate-term loans under title II in the geographic area described in subsection (b) may make long-term loans and otherwise operate, directly or through a subsidiary association, as a Federal land bank association or Federal land credit association under title I in the geographic area.

        `(C) FARM CREDIT BANK- Notwithstanding section 5.17(a), the Farm Credit Bank with which any association had a written financing agreement as of January 1, 2007, may make loans and extend other similar financial assistance with respect to, and may purchase, any loans made under the new authority provided under subparagraph (A) or (B) by an association exercising such authority.

      `(2) REQUIRED APPROVALS- An association may exercise the additional authority provided for in paragraph (1) only after the exercise of the authority is approved by--

        `(A) the board of directors of the association; and

        `(B) a majority of the voting stockholders of the association (or, if the association is a subsidiary of another association, the voting stockholders of the parent association) voting, in person or by proxy, at a duly authorized meeting of stockholders in accordance with the process described in section 7.11.

    `(b) Applicability- This section applies only to associations the chartered territory of which was within the geographic area served by the Federal intermediate credit bank immediately prior to its merger with a Farm Credit Bank under section 410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233).'.

    (c) Charter Amendments- Section 5.17(a) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the end the following:

      `(15)(A) Approve amendments to the charters of institutions of the Farm Credit System to implement the equalization of loan-making powers of a Farm Credit System association under section 7.7.

      `(B) Amendments described in subparagraph (A) to the charters of an association and the related Farm Credit Bank shall be approved by the Farm Credit Administration, subject to any conditions of approval imposed, by not later than 30 days after the date on which the Farm Credit Administration receives all approvals required by section 7.7 (a)(2).'.

    (d) Conforming Amendments-

      (1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)(2)) is amended--

        (A) by striking `(2)(A)' and inserting `(2)'; and

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

      (2) SECTION 410 OF THE 1987 ACT- Section 410(e)(1)(A)(iii) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233) is amended by inserting `(except section 7.7 of that Act)' after `(12 U.S.C. 2001 et seq.)'.

      (3) SECTION 401 OF THE 1992 ACT- Section 401(b) of the Farm Credit Banks and Associations Safety and Soundness Act of 1992 (12 U.S.C. 2011 note; Public Law 102-552) is amended--

        (A) by inserting `(except section 7.7 of the Farm Credit Act of 1971)' after `provision of law'; and

        (B) by striking `, subject to such limitations' and all that follows through the end of the paragraph and inserting a period.

    (e) Effective Date- The amendments made by this section take effect on January 1, 2010.

Subtitle E--Miscellaneous

SEC. 5401. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

    The first section of Public Law 91-229 (25 U.S.C. 488) is amended--

      (1) by striking `That the Secretary' and inserting the following:

`SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

    `(a) In General- The Secretary'; and

      (2) by adding at the end the following:

    `(b) Highly Fractionated Land-

      `(1) IN GENERAL- Subject to paragraph (2), the Secretary of Agriculture may make and insure loans in accordance with section 309 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929) to eligible purchasers of highly fractionated land pursuant to section 205(c) of the Indian Land Consolidation Act (25 U.S.C. 2204(c)).

      `(2) EXCLUSION- Section 4 shall not apply to trust land, restricted tribal land, or tribal corporation land that is mortgaged in accordance with paragraph (1).'.

SEC. 5402. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

    (a) Definitions- In this section:

      (1) CONSENT DECREE- The term `consent decree' means the consent decree in the case of Pigford v. Glickman, approved by the United States District Court for the District of Columbia on April 14, 1999.

      (2) PIGFORD CLAIM- The term `Pigford claim' means a discrimination complaint, as defined by section 1(h) of the consent decree and documented under section 5(b) of the consent decree.

      (3) PIGFORD CLAIMANT- The term `Pigford claimant' means an individual who previously submitted a late-filing request under section 5(g) of the consent decree.

    (b) Determination on Merits- Any Pigford claimant who has not previously obtained a determination on the merits of a Pigford claim may, in a civil action brought in the United States District Court for the District of Columbia, obtain that determination.

    (c) Limitation-

      (1) IN GENERAL- Subject to paragraph (2), all payments or debt relief (including any limitation on foreclosure under subsection (g)) shall be made exclusively from funds made available under subsection (h).

      (2) MAXIMUM AMOUNT- The total amount of payments and debt relief pursuant to an action commenced under subsection (b) shall not exceed $100,000,000.

    (d) Intent of Congress as to Remedial Nature of Section- It is the intent of Congress that this section be liberally construed so as to effectuate its remedial purpose of giving a full determination on the merits for each Pigford claim denied that determination.

    (e) Loan Data-

      (1) REPORT TO PERSON SUBMITTING PETITION- Not later than 60 days after the Secretary receives notice of a complaint filed by a claimant under subsection (b), the Secretary shall provide to the claimant a report on farm credit loans made within the claimant's county or adjacent county by the Department during the period beginning on January 1 of the year preceding the year or years covered by the complaint and ending on December 31 of year following such year or years. Such report shall contain information on all persons whose application for a loan was accepted, including--

        (A) the race of the applicant;

        (B) the date of application;

        (C) the date of the loan decision;

        (D) the location of the office making the loan decision; and

        (E) all data relevant to the process of deciding on the loan.

      (2) NO PERSONALLY IDENTIFIABLE INFORMATION- The reports provided pursuant to paragraph (1) shall not contain any information that would identify any person that applied for a loan from the Department of Agriculture.

    (f) Expedited Resolutions Authorized- Any person filing a complaint under this Act for discrimination in the application for, or making or servicing of, a farm loan, at his or her discretion, may seek liquidated damages of $50,000, discharge of the debt that was incurred under, or affected by, the discrimination that is the subject of the person's complaint, and a tax payment in the amount equal to 25 percent of the liquidated damages and loan principal discharged, in which case--

      (1) if only such damages, debt discharge, and tax payment are sought, the complainant shall be able to prove his or her case by substantial evidence (as defined in section 1(l) of the consent decree); and

      (2) the court shall decide the case based on a review of documents submitted by the complainant and defendant relevant to the issues of liability and damages.

    (g) Limitation on Foreclosures- Notwithstanding any other provision of law, the Secretary may not begin acceleration on or foreclosure of a loan if the borrower is a Pigford claimant and, in an appropriate administrative proceeding, makes a prima facie case that the foreclosure is related to a Pigford claim.

    (h) Funding-

      (1) IN GENERAL- Of the funds of the Commodity Credit Corporation, the Secretary shall make available for payments and debt relief in satisfaction of claims against the United States under subsection (b) and for any actions under subsection (g) $100,000,000 for fiscal year 2008, to remain available until expended.

      (2) AUTHORIZATION OF APPROPRIATIONS- In addition to funds made available under paragraph (1), there are authorized to be appropriated such sums as are necessary to carry out this section.

SEC. 5403. SENSE OF THE SENATE RELATING TO CLAIMS BROUGHT BY SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.

    It is the sense of the Senate that the Secretary should resolve all claims and class actions brought against the Department of Agriculture by socially disadvantaged farmers or ranchers (as defined in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)), including Native American, Hispanic, and female farmers or ranchers, based on racial, ethnic, or gender discrimination in farm program participation in an expeditious and just manner.

SEC. 5404. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR EMERGENCY LOANS.

    Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended--

      (1) in paragraph (1), by striking `farmers, ranchers' and inserting `farmers or ranchers (including equine farmers or ranchers)'; and

      (2) in paragraph (2)(A), by striking `farming, ranching,' and inserting `farming or ranching (including equine farming or ranching)'.

TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

Subtitle A--Consolidated Farm and Rural Development Act

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

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

SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS.

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

SEC. 6003. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN GUARANTEES.

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

        `(C) CHILD DAY CARE FACILITIES-

          `(i) IN GENERAL- Of the funds of the Commodity Credit Corporation, the Secretary shall use for the costs of grants, loans, and loan guarantees to pay the Federal share of the cost of developing and constructing day care facilities for children in rural areas, as determined by the Secretary, $40,000,000 for fiscal year 2008, to remain available until expended.

          `(ii) RELATIONSHIP TO OTHER FUNDING AND AUTHORITIES- The funds and authorities made available under this subparagraph shall be in addition to other funds and authorities relating to development and construction of rural day care facilities.'.

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

    Section 306(a)(22) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(22)) is amended--

      (1) in subparagraph (B), by striking `2002 (115 Stat. 719)' and inserting `2008'; and

      (2) in subparagraph (C), by striking `$15,000,000 for fiscal year 2003' and inserting `$20,000,000 for fiscal year 2008'.

SEC. 6005. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

    Section 306(a)(23)(E) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(23)(E)) is amended by striking `2007' and inserting `2012'.

SEC. 6006. RURAL HOSPITAL LOANS AND LOAN GUARANTEES.

    Section 306(a)(24) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(24)) is amended by adding at the end the following:

        `(C) RURAL HOSPITALS-

          `(i) IN GENERAL- Of the funds of the Commodity Credit Corporation, the Secretary shall use for the costs of loans and loan guarantees to pay the Federal share of the cost of rehabilitating or improving hospitals that have not more than 100 acute beds in rural areas, as determined by the Secretary, $50,000,000 for fiscal year 2008, to remain available until expended, of which not less than $25,000,000 shall be for use at hospitals in rural areas with not more than 50 acute beds.

          `(ii) PRIORITY- In making loans and loan guarantees under this subparagraph, the Secretary shall give priority to hospitals for--

            `(I) the provision of facilities to improve and install patient care, health quality outcomes, and health information technology, including computer hardware and software, equipment for electronic medical records, handheld computer technology, and equipment that improves interoperability; or

            `(II) the acquisition of equipment and software purchased collectively in a cost effective manner to address technology needs.

          `(iii) RELATIONSHIP TO OTHER FUNDING AND AUTHORITIES- The funds and authorities made available under this subparagraph shall be in addition to other funds and authorities relating to rehabilitation and improvement of hospitals described in clause (i).'.

SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY FACILITIES.

    Section 306(a)(25) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(25)) is amended--

      (1) in subparagraph (B)(ii), by striking `75 percent' and inserting `95 percent'; and

      (2) in subparagraph (C), by striking `2007' and inserting `2012'.

SEC. 6008. COMMUNITY FACILITY LOANS AND GRANTS FOR FREELY ASSOCIATED STATES AND OUTLYING AREAS.

    Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by adding at the end the following:

      `(26) COMMUNITY FACILITY LOANS AND GRANTS FOR FREELY ASSOCIATED STATES AND OUTLYING AREAS-

        `(A) IN GENERAL- Subject to subparagraph (B), of the amount that is made available for each fiscal year for each of the community facility loan and grant programs established under paragraphs (1), (19), (20), (21), and (25), the Secretary shall allocate 0.5 percent of the amount for making loans or grants (as applicable) under the program to eligible entities that are located in freely associated States or outlying areas (as those terms are defined in section 1121(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331(c)) that are subject to the jurisdiction of the United States and are otherwise covered by this Act.

        `(B) REALLOCATION- If the Secretary determines that a sufficient number of applications for loans or grants for a program described in subparagraph (A) have not been received from eligible entities for a fiscal year during the 180-day period beginning on October 1 of the fiscal year, the Secretary shall reallocate any unused funds to make loans or grants (as applicable) under the program to eligible entities that are located in States.'.

SEC. 6009. PRIORITY FOR COMMUNITY FACILITY LOAN AND GRANT PROJECTS WITH HIGH NON-FEDERAL SHARE.

    Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) (as amended by section 6008) is amended by adding at the end the following:

      `(27) PRIORITY FOR COMMUNITY FACILITY LOAN AND GRANT PROJECTS WITH HIGH NON-FEDERAL SHARE- In carrying out the community facility loan and grant programs established under paragraphs (1), (19), (20), (21), and (25), the Secretary shall give priority to projects that will be carried out with a non-Federal share of funds that is substantially greater than the minimum requirement, as determined by the Secretary by regulation.'.

SEC. 6010. SEARCH GRANTS.

    Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) (as amended by section 6009) is amended by adding at the end the following:

      `(28) APPLICATIONS FILED BY ELIGIBLE COMMUNITIES-

        `(A) ELIGIBLE COMMUNITY- In this paragraph, the term `eligible community' means a community that, as determined by the Secretary--

          `(i) has a population of 2,500 or fewer inhabitants; and

          `(ii) is financially distressed.

        `(B) APPLICATIONS- In the case of water and waste disposal and wastewater facilities grant programs authorized under this title, the Secretary may accept applications from eligible communities for grants for feasibility study, design, and technical assistance.

        `(C) TERMS-

          `(i) IN GENERAL- Except as provided in clause (ii), the terms of the grant programs described in subparagraph (B) shall apply to the applications described in that subparagraph.

          `(ii) EXCEPTIONS- Grants made pursuant to applications described in subparagraph (B)--

            `(I) shall fund up to 100 percent of eligible project costs; and

            `(II) shall be subject to the least documentation requirements practicable.

          `(iii) PROCESSING- The Secretary shall process applications received under subparagraph (B) in the same manner as other similar grant applications.

        `(D) FUNDING- In addition to any other funds made available for technical assistance, the Secretary may use to carry out this paragraph not more than 4 percent of the total amount of funds made available for a fiscal year for water, waste disposal, and essential community facilities.'.

SEC. 6011. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

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

SEC. 6012. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    Section 306D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926d) is amended--

      (1) in subsection (a)--

        (A) by striking `make grants to the State' and inserting `make grants to--

      `(1) the State';

        (B) by striking the period at the end and inserting `; and'; and

        (C) by adding at the end the following:

      `(2) the Denali Commission to improve solid waste disposal sites that are contaminating, or threaten to contaminate, rural drinking water supplies in the State of Alaska.';

      (2) in subsection (c)--

        (A) in the subsection heading by striking `With the State of Alaska'; and

        (B) by striking `the State of Alaska' and inserting `the appropriate grantee under subsection (a)'; and

      (3) in subsection (d)--

        (A) in paragraph (1), by striking `2007' and inserting `2013';

        (B) by redesignating paragraph (3) as paragraph (4); and

        (C) by inserting after paragraph (2) the following:

      `(3) DENALI COMMISSION- Not more than 5 percent of the amount made available under paragraph (1) for a fiscal year may be transferred to the Denali Commission to improve solid waste disposal sites that are contaminating, or threaten to contaminate, rural drinking supplies in the State of Alaska.'.

SEC. 6013. GRANTS TO DEVELOP WELLS IN RURAL AREAS.

    (a) Grants to Nonprofit Organizations To Finance the Construction, Refurbishing, and Servicing of Individually-Owned Household Water Well Systems in Rural Areas for Individuals With Low or Moderate Incomes- Section 306E(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926e(d)) is amended by striking `2007' and inserting `2012'.

    (b) Grants To Develop Area Wells in Isolated Areas- Subtitle A of the Consolidated Farm and Rural Development Act is amended by inserting after section 306E (7 U.S.C. 1926e) the following:

`SEC. 306F. GRANTS TO DEVELOP AREA WELLS IN ISOLATED AREAS.

    `(a) Definition of Isolated Area- In this section, the term `isolated area' means an area--

      `(1) in which the development of a traditional water system is not financially practical due to--

        `(A) the distances or geography of the area; and

        `(B) the limited number of households present to be served; and

      `(2) that is not part of a city of more than 1,000 inhabitants.

    `(b) Grants- The Secretary may make grants to nonprofit organizations to develop and construct household, shared, and community water wells in isolated rural areas.

    `(c) Priority in Awarding Grants- In awarding grants under this section, the Secretary shall give priority to applicants that have demonstrated experience in developing safe and similar projects including household, shared, and community wells in rural areas.

    `(d) Requirements-

      `(1) IN GENERAL- As a condition on receipt of a grant under this section, the water from wells funded under this section shall be tested annually for water quality, as determined by the Secretary.

      `(2) RESULTS- The results of tests under paragraph (1) shall be made available to--

        `(A) the users of the wells; and

        `(B) the appropriate State agency.

    `(e) Limitation- The amount of a grant under this section shall not exceed the lesser of--

      `(1) $50,000; or

      `(2) the amount that is 75 percent of the cost of a single well and associated system.

    `(f) Prohibition- The Secretary may not award grants under this section in any area in which a majority of the users of a proposed well have a household income that is greater than the nonmetropolitan median household income of the State or territory, as determined by the Secretary.

    `(g) Administrative Expenses- Not more than 10 percent of the amount of a grant made under this section may be used to pay administrative expenses associated with providing project assistance, as determined by the Secretary.

    `(h) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 through 2012.'.

SEC. 6014. COOPERATIVE EQUITY SECURITY GUARANTEE.

    Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended--

      (1) in the first sentence of subsection (a), by inserting `and private investment funds that invest primarily in cooperative organizations' after `or nonprofit'; and

      (2) in subsection (g)--

        (A) in paragraph (1), by inserting `, including guarantees described in paragraph (3)(A)(ii)' before the period at the end;

        (B) in paragraph (3)(A)--

          (i) by striking `(A) IN GENERAL- The Secretary' and inserting the following:

        `(A) ELIGIBILITY-

          `(i) IN GENERAL- The Secretary'; and

          (ii) by adding at the end the following:

          `(ii) EQUITY- The Secretary may guarantee a loan made for the purchase of preferred stock or similar equity issued by a cooperative organization or a fund that invests primarily in cooperative organizations, if the guarantee significantly benefits 1 or more entities eligible for assistance under subsection (a)(1), as determined by the Secretary.'; and

        (C) in paragraph (8)(A)(ii), by striking `a project--' and all that follows through the end of subclause (II) and inserting `a project that--

            `(I)(aa) is in a rural area; and

            `(bb) provides for the value-added processing of agricultural commodities; or

            `(II) significantly benefits 1 or more entities eligible for assistance under subsection (a)(1), as determined by the Secretary.'.

SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    (a) Eligibility- Section 310B(e)(5) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--

      (1) in subparagraph (A), by striking `a nationally coordinated, regionally or State-wide operated project' and inserting `activities to promote and assist the development of cooperatively- and mutually-owned businesses';

      (2) in subparagraph (B), by inserting `to promote and assist the development of cooperatively- and mutually-owned businesses' before the semicolon;

      (3) by striking subparagraph (D);

      (4) by redesignating subparagraph (E) as subparagraph (D);

      (5) in subparagraph (D) (as so redesignated), by striking `and' at the end;

      (6) by inserting after subparagraph (D) (as so redesignated) the following:

        `(E) demonstrate a commitment to--

          `(i) networking with and sharing the results of the efforts of the center with other cooperative development centers and other organizations involved in rural economic development efforts; and

          `(ii) developing multiorganization and multistate approaches to addressing the cooperative and economic development needs of rural areas; and';

      (7) in subparagraph (F), by striking `providing greater than' and inserting `providing'.

    (b) Authority To Award Multiyear Grants- Section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended by striking paragraph (6) and inserting the following:

      `(6) GRANT PERIOD-

        `(A) IN GENERAL- A grant awarded to a center that has received no prior funding under this subsection shall be made for a period of 1 year.

        `(B) MULTIYEAR GRANTS- If the Secretary determines it to be in the best interest of the program, the Secretary shall award grants for a period of more than 1 year, but not more than 3 years, to a center that has successfully met the parameters described in paragraph (5).'.

    (c) Authority To Extend Grant Period- Section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended--

      (1) by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (12), respectively; and

      (2) inserting after paragraph (6) the following:

      `(7) AUTHORITY TO EXTEND GRANT PERIOD- The Secretary may extend for 1 additional 12-month period the period in which a grantee may use a grant made under this subsection.'.

    (d) Cooperative Research Program- Section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended by inserting after paragraph (9) (as redesignated by subsection (c)(1)) the following:

      `(10) COOPERATIVE RESEARCH PROGRAM- The Secretary shall enter into a cooperative research agreement with 1 or more qualified academic institutions in each fiscal year to conduct research on the national economic effects of all types of cooperatives.'.

    (e) Addressing Needs of Minority Communities- Section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended by inserting after paragraph (10) (as added by subsection (d)) the following:

      `(11) ADDRESSING NEEDS OF MINORITY COMMUNITIES-

        `(A) DEFINITION OF SOCIALLY DISADVANTAGED- In this paragraph, the term `socially disadvantaged' has the meaning given the term in section 355(e).

        `(B) RESERVATION OF FUNDS-

          `(i) IN GENERAL- If the total amount appropriated under paragraph (12) for a fiscal year exceeds $7,500,000, the Secretary shall reserve an amount equal to 20 percent of the total amount appropriated for grants for cooperative development centers, individual cooperatives, or groups of cooperatives that serve socially disadvantaged communities, a majority of the boards of directors or governing boards of which are comprised of socially disadvantaged individuals.

          `(ii) INSUFFICIENT APPLICATIONS- To the extent that the Secretary determines that funds reserved under clause (i) would not be used for grants described in that clause due to insufficient applications for the grants, the Secretary shall use the funds as otherwise authorized by this subsection.'.

    (f) Authorization of Appropriations- Paragraph (12) of section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) (as redesignated by subsection (c)(1)) is amended by striking `2007' and inserting `2012'.

SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(f)(3)) is amended by striking `2007' and inserting `2012'.

SEC. 6017. LOCALLY-PRODUCED AGRICULTURAL FOOD PRODUCTS.

    Section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)) is amended by adding at the end the following:

      `(9) LOCALLY-PRODUCED AGRICULTURAL FOOD PRODUCTS-

        `(A) DEFINITIONS- In this paragraph:

          `(i) LOCALLY-PRODUCED AGRICULTURAL FOOD PRODUCT- The term `locally-produced agricultural food product' means any agricultural product raised, produced, and distributed in--

            `(I) the locality or region in which the final agricultural product is marketed, so that the total distance that the agricultural product is transported is less than 300 miles from the origin of the agricultural product; or

            `(II) the State in which the agricultural product is produced.

          `(ii) UNDERSERVED COMMUNITY- The term `underserved community' means a community (including an urban or rural community and an Indian tribal community) that has, as determined by the Secretary--

            `(I) limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets or a high incidence of a diet-related disease as compared to the national average, including obesity; and

            `(II) a high rate of hunger or food insecurity or a high poverty rate.

        `(B) LOAN AND LOAN GUARANTEE PROGRAM-

          `(i) IN GENERAL- The Secretary, acting through the Administrator of the Rural Business-Cooperative Service in coordination with the Administration of the Agricultural Marketing Service, shall make or guarantee loans to individuals, cooperatives, businesses, and other entities to establish and facilitate enterprises that process, distribute, aggregate, store, and market locally-produced agricultural food products.

          `(ii) REQUIREMENT- The recipient of a loan or loan guarantee under clause (i) shall agree to make a reasonable effort, as determined by the Secretary, to work with retail and institutional facilities to which the recipient sells locally-produced agricultural food products to inform the consumers of the retail or institutional facilities that the consumers are purchasing or consuming locally-produced agricultural food products.

          `(iii) PRIORITY- In making or guaranteeing a loan under clause (i), the Secretary shall give priority to--

            `(I) projects that support community development and farm and ranch income by marketing, distributing, storing, aggregating, or processing a locally-produced agricultural food product; and

            `(II) projects that have components benefitting underserved communities.

          `(iv) RETAIL OR INSTITUTIONAL FACILITIES- The Secretary may allow recipients of loans or loan guarantees under clause (i) to provide up to $250,000 in loan or loan guarantee funds per retail or institutional facility for an underserved community in a rural or nonrural area to help retail facilities--

            `(I) to modify and update the facilities to accommodate locally-produced agricultural food products; and

            `(II) to provide outreach to consumers about the sale of locally-produced agricultural food products.

          `(v) REPORTS- Not later than 1 year after the date of enactment of this paragraph and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes projects carried out using loans or loan guarantees made under clause (i), including--

            `(I) the characteristics of the communities served by the projects; and

            `(II) benefits of the projects.

          `(vi) RESERVATION OF FUNDS-

            `(I) IN GENERAL- For each of fiscal years 2008 through 2012, the Secretary shall reserve not less than 5 percent of the funds made available to carry out this subsection to carry out this subparagraph.

            `(II) AVAILABILITY OF FUNDS- Funds reserved under subclause (I) for a fiscal year shall be reserved until April 1 of the fiscal year.'.

SEC. 6018. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

    Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding at the end the following:

    `(i) Appropriate Technology Transfer for Rural Areas Program-

      `(1) DEFINITION OF NATIONAL NONPROFIT AGRICULTURAL ASSISTANCE INSTITUTION- In this subsection, the term `national nonprofit agricultural assistance institution' means an organization that--

        `(A) is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code;

        `(B) has staff and offices in multiple regions of the United States;

        `(C) has experience and expertise in operating national sustainable agriculture technical assistance programs; and

        `(D) provides the technical assistance through toll-free hotlines, 1 or more websites, publications, and workshops.

      `(2) ESTABLISHMENT- The Secretary shall establish a national appropriate technology transfer for rural areas program to assist agricultural producers that are seeking information to help the agricultural producers--

        `(A) reduce input costs;

        `(B) conserve energy resources;

        `(C) diversify operations through new energy crops and energy generation facilities; and

        `(D) expand markets for the agricultural commodities produced by the producers through use of practices involving sustainable agriculture.

      `(3) IMPLEMENTATION-

        `(A) IN GENERAL- The Secretary shall carry out the program under this subsection by making a grant to, or offering to enter into a cooperative agreement with, a national nonprofit agricultural assistance organization.

        `(B) GRANT AMOUNT- A grant made, or cooperative agreement entered into, under subparagraph (A) shall provide 100 percent of the cost of providing information described in paragraph (2).

      `(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this subsection $5,000,000 for each of fiscal years 2008 through 2012.'.

SEC. 6019. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

    Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) (as amended by section 6019) is amended by adding at the end the following:

    `(j) Rural Economic Area Partnership Zones- For the period beginning on the date of enactment of this subsection and ending on September 30, 2012, the Secretary shall carry out rural economic area partnership zones in the States of New York, North Dakota, and Vermont, in accordance with the terms and conditions contained in the memorandums of agreement entered into by the Secretary for the rural economic area partnership zones, except as otherwise provided in this subsection.'.

SEC. 6020. DEFINITIONS.

    (a) Rural Area- Section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended by striking paragraph (13) and inserting the following:

      `(13) RURAL AND RURAL AREA-

        `(A) IN GENERAL- Subject to subparagraphs (B) and (C), the terms `rural' and `rural area' mean any area other than--

          `(i) a city or town that has a population of greater than 50,000 inhabitants, except that, for all activities under programs in the rural development mission area within the areas of the County of Honolulu, Hawaii, and the Commonwealth of Puerto Rico, the Secretary may designate any portion of the areas as a rural area or eligible rural community that the Secretary determines is not urban in character, other than any area included in the Honolulu Census Designated Place or the San Juan Census Designated Place;

          `(ii) any urbanized area (as defined by the Bureau of the Census) contiguous and adjacent to a city or town described in clause (i); and

          `(iii) any collection of census blocks contiguous to each other (as defined by the Bureau of the Census) that--

            `(I) is adjacent to a city or town described in clause (i) or an urbanized area described in clause (ii); and

            `(II) has a housing density that the Secretary estimates is greater than 200 housing units per square mile, except that an applicant may appeal the estimate based on actual data for the area.

        `(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT AND GUARANTEED LOANS- For the purpose of water and waste disposal grants and direct and guaranteed loans provided under paragraphs (1), (2), and (24) of section 306(a), the terms `rural' and `rural area' mean a city, town, or unincorporated area that has a population of no more than 10,000 inhabitants.

        `(C) COMMUNITY FACILITY LOANS AND GRANTS- For the purpose of community facility direct and guaranteed loans and grants under paragraphs (1), (19), (20), (21), and (24) of section 306(a), the terms `rural' and `rural area' mean any area other than--

          `(i) an area described in clause (i), (ii), or (iii) of subparagraph (A); and

          `(ii) a city, town, or unincorporated area that has a population of greater than 20,000 inhabitants.

        `(D) AREAS RURAL IN CHARACTER-

          `(i) IN GENERAL- Notwithstanding any other provision of this paragraph, the Under Secretary for Rural Development may determine (pursuant to a petition by a local community or on the initiative of the Under Secretary) that an area described in clause (ii) or (iii) of subparagraph (A) is a rural area for the purposes of this paragraph, if the Under Secretary finds that the area is rural in character, as determined by the Under Secretary.

          `(ii) ADMINISTRATION- In carrying out clause (i), the Under Secretary for Rural Development--

            `(I) shall not delegate the authority described in clause (i); but

            `(II) shall consult with the applicable rural development State or regional director of the Department of Agriculture.

        `(E) EXCLUSIONS- Notwithstanding any other provision of this paragraph, in determining which census blocks are not in a rural area (as defined in this paragraph), the Secretary shall exclude any cluster of census blocks that would otherwise be considered not in a rural area only because the cluster is adjacent to not more than 2 census blocks that are otherwise considered not in a rural area under this paragraph.'.

    (b) Annual Reports- Not later than 2 years after the date of enactment of this Act and every 2 years thereafter, the Secretary shall prepare and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that--

      (1) assesses the various definitions of the term `rural' and `rural area' that are used with respect to programs administered by the Secretary;

      (2) describes the effects that the variations in those definitions have on those programs;

      (3) make recommendations for ways to better target funds provided through rural development programs;

      (4) describes the effects the changes to the definitions of the terms `rural' and `rural area' in the Farm Security and Rural Investment Act of 2002 and this Act had on those programs and eligible areas; and

      (5) determines what effects the changes had on the level of rural development funding and participation in those programs in each State.

    (b) Additional Terms- Section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended by adding at the end the following:

      `(14) SUSTAINABLE AGRICULTURE- The term `sustainable agriculture' means an integrated system of plant and animal production practices having a site-specific application that will, over the long-term--

        `(A) satisfy human food and fiber needs;

        `(B) enhance environmental quality and the natural resource base upon which the agriculture economy depends;

        `(C) make the most efficient use of nonrenewable resources and on-farm resources and integrate, where appropriate, natural biological cycles and controls;

        `(D) sustain the economic viability of farm operations; and

        `(E) enhance the quality of life for farmers and society as a whole.

      `(15) TECHNICAL ASSISTANCE- The term `technical assistance' means managerial, financial, operational, and scientific analysis and consultation to assist an individual or entity (including a borrower or potential borrower under this title)--

        `(A) to identify and evaluate practices, approaches, problems, opportunities, or solutions; and

        `(B) to assist in the planning, implementation, management, operation, marketing, or maintenance of projects authorized under this title.'.

    (c) Commercial Fishing- Section 343 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991) is amended--

      (1) in subsection (a), by inserting `and, in the case of subtitle B, commercial fishing' before the period at the end of each of paragraphs (1) and (2); and

      (2) by adding at the end the following:

    `(c) Definition of Farm- In subtitle B, the term `farm' includes a commercial fishing enterprise the owner or operator of which is unable to obtain commercial credit from a bank or other lender, as determined by the Secretary.'.

SEC. 6021. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

    (a) In General- The Consolidated Farm and Rural Development Act is amended by inserting after section 344 (7 U.S.C. 1992) the following:

`SEC. 345. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

    `(a) Definitions- In this section:

      `(1) AGRICULTURAL COMMODITY- The term `agricultural commodity' has the meaning given the term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

      `(2) GEOGRAPHICALLY DISADVANTAGED FARMER OR RANCHER- The term `geographically disadvantaged farmer or rancher' has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2204 note; Public Law 107-171).

    `(b) Authorization-

      `(1) IN GENERAL- Subject to paragraph (2) and the availability of funds under subsection (d), for each fiscal year, the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for activities described in subsection (c).

      `(2) LIMITATION- The total amount of direct reimbursement payments provided by the Secretary under this section shall not exceed $15,000,000 for each fiscal year.

    `(c) Transportation-

      `(1) IN GENERAL- Subject to paragraphs (2) and (3), the Secretary may provide direct reimbursement payments to a geographically disadvantaged farmer or rancher to transport an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.

      `(2) PROOF OF ELIGIBILITY- To be eligible to receive assistance under paragraph (1), farmer or rancher shall provide to the Secretary proof (as determined by the Secretary) that transportation or the agricultural commodity or inputs occurred over a distance of more than 30 miles.

      `(3) AMOUNT- The amount of direct reimbursement payments made to a geographically disadvantaged farmer or rancher under a subsection for a fiscal year shall equal the product obtained by multiplying--

        `(A) the amount of costs incurred by the farmer or rancher for transportation of the agricultural commodity or inputs during the fiscal year; and

        `(B) the percentage of the allowance for that fiscal year made under section 5941 of title 5, United States Code, for Federal employees stationed in Alaska and Hawaii.

    `(d) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.'.

    (b) Effective Date- The amendment made by subsection (a) takes effect on October 1, 2007.

SEC. 6022. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (as amended by section 5207) is amended by inserting after section 365 the following:

`SEC. 366. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

    `(a) Definitions- In this section:

      `(1) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

      `(2) LOW- OR MODERATE-INCOME INDIVIDUAL- The term `low- or moderate-income individual' means an individual with an income (adjusted for family size) of not more than 80 percent of the national median income.

      `(3) MICROCREDIT- The term `microcredit' means a business loan or loan guarantee of not more than $50,000 that is provided to a rural microenterprise.

      `(4) MICROENTERPRISE DEVELOPMENT ORGANIZATION- The term `microenterprise development organization' means an organization that--

        `(A) is--

          `(i) a nonprofit entity;

          `(ii) an Indian tribe, the tribal government of which certifies to the Secretary that no microenterprise development organization or microenterprise development program exists under the jurisdiction of the Indian tribe; or

          `(iii) for the purpose of subsection (b), a public institution of higher education;

        `(B) provides training and technical assistance to rural microenterprises;

        `(C) facilitates access to capital or another service described in subsection (b) for rural microenterprises; and

        `(D) has a demonstrated record of delivering services to economically disadvantaged microenterprises, or an effective plan to develop a program to deliver microenterprise services to rural microenterprises effectively, as determined by the Secretary.

      `(5) RURAL CAPACITY BUILDING SERVICE- The term `rural capacity building service' means a service provided to an organization that--

        `(A) is, or is in the process of becoming, a microenterprise development organization; and

        `(B) serves rural areas for the purpose of enhancing the ability of the organization to provide training, technical assistance, and other services relating to rural development.

      `(6) RURAL MICROENTERPRISE-

        `(A) IN GENERAL- The term `rural microenterprise' means an individual described in subparagraph (B) who is unable to obtain sufficient training, technical assistance, or microcredit other than under this section, as determined by the Secretary.

        `(B) DESCRIPTION- An individual described in this subparagraph is--

          `(i) a self-employed individual located in a rural area; or

          `(ii) an owner and operator, or prospective owner and operator, of a business entity located in a rural area with not more than 10 full-time-equivalent employees.

      `(7) SECRETARY- The term `Secretary' means the Secretary of Agriculture, acting through the Rural Business-Cooperative Service.

    `(b) Rural Microenterprise Program-

      `(1) ESTABLISHMENT- The Secretary shall establish a rural microenterprise program.

      `(2) PURPOSE- The purpose of the rural microenterprise program shall be to provide low- or moderate-income individuals with--

        `(A) the skills necessary to establish new rural microenterprises; and

        `(B) continuing technical and financial assistance as individuals and business starting or operating rural microenterprises.

      `(3) GRANTS-

        `(A) IN GENERAL- The Secretary may make a grant under the rural microenterprise program to microenterprise development organizations--

          `(i) to provide training, operational support, business planning assistance, market development assistance, and other related services to rural microenterprises, with an emphasis on rural microenterprises that--

            `(I) are composed of low- or moderate-income individuals; or

            `(II) are in areas that have lost population;

          `(ii) to assist in researching and developing the best practices in delivering training, technical assistance, and microcredit to rural microenterprises; and

          `(iii) to carry out such other projects and activities as the Secretary determines to be consistent with the purposes of this section.

        `(B) DIVERSITY- In making grants under this paragraph, the Secretary shall ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations--

          `(i) of varying sizes; and

          `(ii) that serve racially- and ethnically-diverse populations.

        `(C) COST SHARING-

          `(i) FEDERAL SHARE- The Federal share of the cost of a project carried out using funds from a grant made under this paragraph shall be 75 percent.

          `(ii) FORM OF NON-FEDERAL SHARE- The non-Federal share of the cost of a project described in clause (i) may be provided--

            `(I) in cash (including through fees, grants (including community development block grants), and gifts); or

            `(II) as in-kind contributions.

      `(4) RURAL MICROLOAN PROGRAM-

        `(A) ESTABLISHMENT- In carrying out the rural microenterprise program, the Secretary may carry out a rural microloan program.

        `(B) PURPOSE- The purpose of the rural microloan program shall be to provide technical and financial assistance to rural microenterprises that--

          `(i) are composed of low- or moderate-income individuals; or

          `(ii) are in areas that have lost population.

        `(C) AUTHORITY OF SECRETARY- In carrying out the rural microloan program, the Secretary may--

          `(i) make direct loans to microenterprise development organizations for the purpose of making fixed interest rate microloans to startup, newly established, and growing rural microenterprises; and

          `(ii) in conjunction with those loans, provide technical assistance grants in accordance with subparagraph (E) to those microenterprise development organizations.

        `(D) LOAN DURATION; INTEREST RATES; CONDITIONS-

          `(i) LOAN DURATION- A direct loan made by the Secretary under this paragraph shall be for a term not to exceed 20 years.

          `(ii) APPLICABLE INTEREST RATE- A direct loan made by the Secretary under this paragraph shall bear an annual interest rate of 1 percent.

          `(iii) LOAN LOSS RESERVE FUND- The Secretary shall require each microenterprise development organization that receives a direct loan under this paragraph to--

            `(I) establish a loan loss reserve fund; and

            `(II) maintain the reserve fund in an amount equal to at least 5 percent of the outstanding balance of such loans owed by the microenterprise development organization, until all obligations owed to the Secretary under this paragraph are repaid.

          `(iv) DEFERRAL OF INTEREST AND PRINCIPAL- The Secretary shall permit the deferral of payments on principal and interest due on a loan made under this paragraph during the 2-year period beginning on the date on which the loan is made.

        `(E) TECHNICAL ASSISTANCE GRANT AMOUNTS-

          `(i) IN GENERAL- Except as otherwise provided in this section, each microenterprise development organization that receives a direct loan under this paragraph shall be eligible to receive a technical assistance grant to provide marketing, management, and technical assistance to rural microenterprises that are borrowers or potential borrowers under this subsection.

          `(ii) MAXIMUM AMOUNT OF TECHNICAL ASSISTANCE GRANT FOR MICROENTERPRISE DEVELOPMENT ORGANIZATIONS- Each microenterprise development organization that receives a direct loan under this paragraph shall receive an annual technical assistance grant in an amount equal to not more than 25 percent of the total outstanding balance of microloans made by the microenterprise development organization under this paragraph, as of the date of provision of the technical assistance grant.

          `(iii) MATCHING REQUIREMENT-

            `(I) IN GENERAL- As a condition of any grant made to a microenterprise development organization under this subparagraph, the Secretary shall require the microenterprise development organization to match not less than 15 percent of the total amount of the grant.

            `(II) FORM OF NON-FEDERAL SHARE- The non-Federal share of the cost of a project described in subclause (I) may be provided--

`(aa) in cash; or

`(bb) as indirect costs or in-kind contributions.

    `(c) Administrative Expenses- Not more than 10 percent of a grant received by a microenterprise development organization for a fiscal year under this section may be used to pay administrative expenses.

    `(d) Funding-

      `(1) MANDATORY FUNDING-

        `(A) IN GENERAL- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $40,000,000 for fiscal year 2008, to remain available until expended.

        `(B) ALLOCATION OF FUNDS- Of the amount made available by subparagraph (A) for fiscal year 2008--

          `(i) not less than $25,000,000 shall be available for use in carrying out subsection (b)(3); and

          `(ii) not less than $15,000,000 shall be available for use in carrying out subsection (b)(4), of which not more than $7,000,000 shall be used for the cost of direct loans.

      `(2) AUTHORIZATION OF APPROPRIATIONS- In addition to amounts made available under paragraph (1), there are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2009 through 2012.'.

SEC. 6023. ARTISANAL CHEESE CENTERS.

    Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 366 (as added by section 6022) the following:

`SEC. 367. ARTISANAL CHEESE CENTERS.

    `(a) In General- The Secretary shall establish artisanal cheese centers to provide educational and technical assistance relating to the manufacture and marketing of artisanal cheese by small- and medium-sized producers and businesses.

    `(b) Authorization of Appropriations- There is authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.'.

SEC. 6024. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Section 378 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008m) is amended--

      (1) in subsection (g)(1), by striking `2007' and inserting `2012'; and

      (2) in subsection (h), by striking `the date that is 5 years after the date of enactment of this section' and inserting `September 30, 2012'.

SEC. 6025. HISTORIC BARN PRESERVATION.

    Section 379A(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008o(c)) is amended--

      (1) by striking paragraph (2) and inserting the following:

      `(2) ELIGIBLE PROJECTS-

        `(A) IN GENERAL- A grant under this subsection may be made to an eligible applicant for a project--

          `(i) to rehabilitate or repair a historic barn;

          `(ii) to preserve a historic barn; and

          `(iii) to identify, document, survey, and conduct research on a historic barn or historic farm structure to develop and evaluate appropriate techniques or best practices for protecting historic barns.

        `(B) PRIORITY- The Secretary shall give the highest funding priority to grants for projects described in subparagraph (A)(iii).'; and

      (2) in paragraph (4), by striking `2007' and inserting `2012'.

SEC. 6026. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

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

SEC. 6027. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR HIGHER VALUE CROPS.

    Section 379C(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008q(c)) is amended by striking `2007' and inserting `2012'.

SEC. 6028. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.

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

`SEC. 379E. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.

    `(a) Definitions- In this section:

      `(1) INDIVIDUAL WITH A DISABILITY- The term `individual with a disability' means an individual with a disability (as defined in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102)).

      `(2) INDIVIDUALS WITH DISABILITIES- The term `individuals with disabilities' means more than 1 individual with a disability.

    `(b) Grants- The Secretary shall make grants to nonprofit organizations, or to a consortium of nonprofit organizations, to expand and enhance employment opportunities for individuals with disabilities in rural areas.

    `(c) Eligibility- To be eligible to receive a grant under this section, a nonprofit organization or consortium of nonprofit organizations shall have--

      `(1) a significant focus on serving the needs of individuals with disabilities;

      `(2) demonstrated knowledge and expertise in--

        `(A) employment of individuals with disabilities; and

        `(B) advising private entities on accessibility issues involving individuals with disabilities;

      `(3) expertise in removing barriers to employment for individuals with disabilities, including access to transportation, assistive technology, and other accommodations;

      `(4) existing relationships with national organizations focused primarily on the needs of rural areas;

      `(5) affiliates in a majority of the States; and

      `(6) a close working relationship with the Department of Agriculture.

    `(d) Uses- A grant received under this section may be used only to expand or enhance--

      `(1) employment opportunities for individuals with disabilities in rural areas by developing national technical assistance and education resources to assist small businesses in a rural area to recruit, hire, accommodate, and employ individuals with disabilities; and

      `(2) self-employment and entrepreneurship opportunities for individuals with disabilities in a rural area.

    `(e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2008 through 2012.'.

SEC. 6029. DELTA REGIONAL AUTHORITY.

    (a) Health Care Services- Section 382C of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-2) is amended by adding at the end the following:

    `(c) Health Care Services-

      `(1) IN GENERAL- Subject to the availability of appropriated funds, the Secretary may award a grant to the Delta Health Alliance for the development of health care services, health education programs, and health care job training programs fields, and for the development and expansion of public health-related facilities, in the Mississippi Delta region to address longstanding and unmet health needs in the Mississippi Delta region.

      `(2) USE- As a condition of the receipt of the grant, the Delta Health Alliance shall use the grant to fund projects and activities described in paragraph (1), based on input solicited from local governments, public health care providers, and other entities in the Mississippi Delta region.

      `(3) FEDERAL INTEREST IN PROPERTY- Notwithstanding any other provision of law, with respect to the use of grant funds provided under this subsection for a project involving the construction or major alteration of property, the Federal interest in the property shall terminate on the earlier of--

        `(A) the date that is 1 year after the date of the completion of the project; or

        `(B) the date on which the Federal Government is compensated for the proportionate interest of the Federal Government in the property, if the use of the property changes or the property is transferred or sold.'.

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

    (c) Termination of Authority- Section 382N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-13) is amended by striking `2007' and inserting `2012'.

    (d) Delta Region Agricultural Economic Development- Section 379D(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008r(b)) is amended by striking `2007' and inserting `2012'.

SEC. 6030. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    (a) Establishment- Section 383B of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-1) is amended--

      (1) in subsection (a), by adding at the end the following:

      `(4) FAILURE TO CONFIRM-

        `(A) FEDERAL MEMBER- Notwithstanding any other provision of this section, if a Federal member described in paragraph (2)(A) has not been confirmed by the Senate by not later than 180 days after the date of enactment of this paragraph, the Authority may organize and operate without the Federal member.

        `(B) INDIAN CHAIRPERSON- Notwithstanding any other provision of this section, if a chairperson of an Indian Tribe described in paragraph (2)(C) has not been confirmed by the Senate by not later than 180 days after the date of enactment of this paragraph, the leaders of the Indian tribes in the region may select that member.';

      (2) in subsection (d)--

        (A) in paragraph (1), by striking `to establish priorities and' and inserting `for multistate cooperation to advance the economic and social well-being of the region and to'

        (B) in paragraph (3), by striking `local development districts,' and inserting `regional and local development districts or organizations, regional boards established under subtitle I,';

        (C) in paragraph (4), by striking `cooperation;' and inserting `cooperation for--

          `(i) renewable energy development and transmission;

          `(ii) transportation planning and economic development;

          `(iii) information technology;

          `(iv) movement of freight and individuals within the region;

          `(v) federally-funded research at institutions of higher education; and

          `(vi) conservation land management;';

        (D) by striking paragraph (6) and inserting the following:

      `(6) enhance the capacity of, and provide support for, multistate development and research organizations, local development organizations and districts, and resource conservation districts in the region;'; and

        (E) in paragraph (7), by inserting `renewable energy,' after `commercial,'.

      (3) in subsection (f)(2), by striking `the Federal cochairperson' and inserting `a cochairperson';

      (4) in subsection (g)(1), by striking subparagraphs (A) through (C) and inserting the following:

        `(A) for each of fiscal years 2008 and 2009, 100 percent;

        `(B) for fiscal year 2010, 75 percent; and

        `(C) for fiscal year 2011 and each fiscal year thereafter, 50 percent.'.

    (b) Interstate Cooperation for Economic Opportunity and Efficiency-

      (1) IN GENERAL- Subtitle G of the Consolidated Farm and Rural Development Act is amended--

        (A) by redesignating sections 383C through 383N (7 U.S.C. 2009bb-2 through 2009bb-13) as sections 383D through 383O, respectively; and

        (B) by inserting after section 383B (7 U.S.C. 2009bb-1) the following:

`SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND EFFICIENCY.

    `(a) In General- The Authority shall provide assistance to States in developing regional plans to address multistate economic issues, including plans--

      `(1) to develop a regional transmission system for movement of renewable energy to markets outside the region,

      `(2) to assist in the harmonization of transportation policies and regulations that impact the interstate movement of goods and individuals, including the establishment of a Northern Great Plains Regional Transportation Working Group;

      `(3) to encourage and support interstate collaboration on federally-funded research that is in the national interest; and

      `(4) to establish a Regional Working Group on Agriculture Development and Transportation.

    `(b) Economic Issues- The multistate economic issues referred to in subsection (a) shall include--

      `(1) renewable energy development and transmission;

      `(2) transportation planning and economic development;

      `(3) information technology;

      `(4) movement of freight and individuals within the region;

      `(5) federally-funded research at institutions of higher education; and

      `(6) conservation land management.'.

      (2) CONFORMING AMENDMENTS-

        (A) Section 383B(c)(3)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B)) is amended by striking `383I' and inserting `383J'.

        (B) Section 383D(a) of the Consolidated Farm and Rural Development Act (as redesignated by paragraph (1)(A)) is amended by striking `383I' and inserting `383J'.

        (C) Section 383E of the Consolidated Farm and Rural Development Act (as so redesignated) is amended--

          (i) in subsection (b)(1), by striking `383F(b)' and inserting `383G(b)'; and

          (ii) in subsection (c)(2)(A), by striking `383I' and inserting `383J'.

        (D) Section 383G of the Consolidated Farm and Rural Development Act (as so redesignated) is amended--

          (i) in subsection (b)--

            (I) in paragraph (1), by striking `383M' and inserting `383N'; and

            (II) in paragraph (2), by striking `383D(b)' and inserting `383E(b)';

          (ii) in subsection (c)(2)(A), by striking `383E(b)' and inserting `383F(b)'; and

          (iii) in subsection (d)--

            (I) by striking `383M' and inserting `383N'; and

            (II) by striking `383C(a)' and inserting `383D(a)'.

        (E) Section 383J(c)(2) of the Consolidated Farm and Rural Development Act (as so redesignated) is amended by striking `383H' and inserting `383I'.

    (c) Economic and Community Development Grants- Section 383D of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1), by striking `transportation and telecommunication' and inserting `transportation, renewable energy transmission, and telecommunication'; and

        (B) by redesignating paragraphs (1) and (2) as paragraphs (2) and (1), respectively, and moving those paragraphs so as to appear in numerical order; and

      (2) in subsection (b)(2), by striking `the activities in the following order or priority' and inserting `the following activities'.

    (d) Supplements to Federal Grant Programs- Section 383E(a) of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended by striking `, including local development districts,'.

    (e) Multistate and Local Development Districts and Organizations and Northern Great Plains Inc- Section 383F of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended--

      (1) by striking the section heading and inserting `multistate and local development districts and organizations and northern great plains inc.';

      (2) by striking subsections (a) and (b) and inserting the following:

    `(a) Definition of Multistate and Local Development District or Organization- In this section, the term `multistate and local development district or organization' means an entity--

      `(1) that--

        `(A) is a planning district in existence on the date of enactment of this subtitle that is recognized by the Economic Development Administration of the Department of Commerce; or

        `(B) is--

          `(i) organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region;

          `(ii) a nonprofit incorporated body organized or chartered under the law of the State in which the entity is located;

          `(iii) a nonprofit agency or instrumentality of a State or local government;

          `(iv) a public organization established before the date of enactment of this subtitle under State law for creation of multijurisdictional, area-wide planning organizations;

          `(v) a nonprofit agency or instrumentality of a State that was established for the purpose of assisting with multistate cooperation; or

          `(vi) a nonprofit association or combination of bodies, agencies, and instrumentalities described in clauses (ii) through (v); and

      `(2) that has not, as certified by the Federal cochairperson--

        `(A) inappropriately used Federal grant funds from any Federal source; or

        `(B) appointed an officer who, during the period in which another entity inappropriately used Federal grant funds from any Federal source, was an officer of the other entity.

    `(b) Grants to Multistate, Local, or Regional Development Districts and Organizations-

      `(1) IN GENERAL- The Authority may make grants for administrative expenses under this section to multistate, local, and regional development districts and organizations.

      `(2) CONDITIONS FOR GRANTS-

        `(A) MAXIMUM AMOUNT- The amount of any grant awarded under paragraph (1) shall not exceed 80 percent of the administrative expenses of the regional or local development district or organization receiving the grant.

        `(B) MAXIMUM PERIOD- No grant described in paragraph (1) shall be awarded for a period greater than 3 years.

      `(3) LOCAL SHARE- The contributions of a regional or local development district or organization for administrative expenses may be in cash or in kind, fairly evaluated, including space, equipment, and services.'; and

      (3) in subsection (c)--

        (A) by striking `Duties' and inserting `Authorities'; and

        (B) in the matter preceding paragraph (1), by striking `shall' and inserting `may'.

    (f) Distressed Counties and Areas and Nondistressed Counties- Section 383G of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended--

      (1) in subsection (b)(1), by striking `75' and inserting `50';

      (2) by striking subsection (c);

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

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

        (A) in the subsection heading, by inserting `, Renewable Energy,' after `Telecommunication,'; and

        (B) by inserting `, renewable energy,' after `telecommunication,'.

    (g) Development Planning Process- Section 383H of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended--

      (1) in subsection (c)(1), by striking subparagraph (A) and inserting the following:

        `(A) multistate, regional, and local development districts and organizations; and'; and

      (2) in subsection (d)(1), by striking `State and local development districts' and inserting `multistate, regional, and local development districts and organizations'.

    (h) Program Development Criteria- Section 383I(a)(1) of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended by inserting `multistate or' before `regional'.

    (i) Authorization of Appropriations- Section 383N(a) of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended by striking `2002 through 2007' and inserting `2008 through 2012'.

    (j) Termination of Authority- Section 383O of the Consolidated Farm and Rural Development Act (as redesignated by subsection (b)(1)(A)) is amended by striking `2007' and inserting `2012'.

SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.

    (a) Issuance and Guarantee of Trust Certificates- Section 384F of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-5) is amended--

      (1) in subsection (a)(1), by inserting `, including an investment pool created entirely by such bank or savings association' before the period at the end;

      (2) in subsection (b)(3)(A), by striking `In the event' and inserting the following:

          `(i) AUTHORITY TO PREPAY- A debenture may be prepaid at any time without penalty.

          `(ii) REDUCTION OF GUARANTEE- Subject to clause (i), if'; and

      (3) in subsection (e), by adding at the end the following:

      `(6) DISTRIBUTIONS-

        `(A) IN GENERAL- The Secretary shall authorize distributions to investors for unrealized income from a debenture.

        `(B) TREATMENT- Distributions made by a rural business investment company to an investor of private capital in the rural business investment company for the purpose of covering the tax liability of the investor resulting from unrealized income of the rural business investment company shall not require the repayment of a debenture.'.

    (b) Fees- Section 384G of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-6) is amended--

      (1) in subsection (a), by striking `such fees as the Secretary considers appropriate' and inserting `a fee that does not exceed $500';

      (2) in subsection (b), by striking `approved by the Secretary' and inserting `that does not exceed $500'; and

      (3) in subsection (c)--

        (A) in paragraph (1), by striking `The' and inserting `Except as provided in paragraph (3), the';

        (B) in paragraph (2)--

          (i) in subparagraph (A), by striking `and' at the end;

          (ii) in subparagraph (B), by striking the period at the end and inserting `; and'; and

          (iii) by adding at the end the following:

        `(C) shall not exceed $500 for any fee collected under this subsection.'; and

        (C) by adding at the end the following:

      `(3) PROHIBITION ON COLLECTION OF CERTAIN FEES- In the case of a license described in paragraph (1) that was approved before July 1, 2007, the Secretary shall not collect any fees due on or after the date of enactment of this paragraph.'.

    (c) Rural Business Investment Companies- Section 384I(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-8(c)) is amended--

      (1) by redesignating paragraph (3) as paragraph (4); and

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

      `(3) TIME FRAME- Each rural business investment company shall have a period of 2 years to meet the capital requirements of this subsection.'.

    (d) Financial Institution Investments- Section 384J of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-9) is amended by striking subsection (c).

    (e) Contracting of Functions- Section 384Q of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-16) is repealed.

    (f) Funding- The Consolidated Farm and Rural Development Act is amended by striking section 384S (7 U.S.C. 2009cc-18) and inserting the following:

`SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

    `There are authorized to be appropriated such sums as are necessary to carry out this subtitle.'.

SEC. 6032. RURAL COLLABORATIVE INVESTMENT PROGRAM.

    Subtitle I of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd et seq.) is amended to read as follows:

`Subtitle I--Rural Collaborative Investment Program

`SEC. 385A. PURPOSE.

    `The purpose of this subtitle is to establish a regional rural collaborative investment program--

      `(1) to provide rural regions with a flexible investment vehicle, allowing for local control with Federal oversight, assistance, and accountability;

      `(2) to provide rural regions with incentives and resources to develop and implement comprehensive strategies for achieving regional competitiveness, innovation, and prosperity;

      `(3) to foster multisector community and economic development collaborations that will optimize the asset-based competitive advantages of rural regions with particular emphasis on innovation, entrepreneurship, and the creation of quality jobs;

      `(4) to foster collaborations necessary to provide the professional technical expertise, institutional capacity, and economies of scale that are essential for the long-term competitiveness of rural regions; and

      `(5) to better use Department of Agriculture and other Federal, State, and local governmental resources, and to leverage those resources with private, nonprofit, and philanthropic investments, to achieve measurable community and economic prosperity, growth, and sustainability.

`SEC. 385B. DEFINITIONS.

    `In this subtitle:

      `(1) BENCHMARK- The term `benchmark' means an annual set of goals and performance measures established for the purpose of assessing performance in meeting a regional investment strategy of a Regional Board.

      `(2) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

      `(3) NATIONAL BOARD- The term `National Board' means the National Rural Investment Board established under section 385C(c).

      `(4) NATIONAL INSTITUTE- The term `National Institute' means the National Institute on Regional Rural Competitiveness and Entrepreneurship established under section 385C(b)(2).

      `(5) REGIONAL BOARD- The term `Regional Board' means a Regional Rural Investment Board described in section 385D(a).

      `(6) REGIONAL INNOVATION GRANT- The term `regional innovation grant' means a grant made by the Secretary to a certified Regional Board under section 385F.

      `(7) REGIONAL INVESTMENT STRATEGY GRANT- The term `regional investment strategy grant' means a grant made by the Secretary to a certified Regional Board under section 385E.

`SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL COLLABORATIVE INVESTMENT PROGRAM.

    `(a) Establishment- The Secretary shall establish a Rural Collaborative Investment Program to support comprehensive regional investment strategies for achieving rural competitiveness.

    `(b) Duties of Secretary- In carrying out this subtitle, the Secretary shall--

      `(1) appoint and provide administrative and program support to the National Board;

      `(2) establish a national institute, to be known as the `National Institute on Regional Rural Competitiveness and Entrepreneurship', to provide technical assistance to the Secretary and the National Board regarding regional competitiveness and rural entrepreneurship, including technical assistance for--

        `(A) the development of rigorous analytic programs to assist Regional Boards in determining the challenges and opportunities that need to be addressed to receive the greatest regional competitive advantage;

        `(B) the provision of support for best practices developed by the Regional Boards;

        `(C) the establishment of programs to support the development of appropriate governance and leadership skills in the applicable regions; and

        `(D) the evaluation of the progress and performance of the Regional Boards in achieving benchmarks established in a regional investment strategy;

      `(3) work with the National Board to develop a national rural investment plan, which shall--

        `(A) create a framework to encourage and support a more collaborative and targeted rural investment portfolio in the United States;

        `(B) establish the Rural Philanthropic Initiative, to work with rural communities to create and enhance the pool of permanent philanthropic resources committed to rural community and economic development;

        `(C) cooperate with the Regional Boards and State and local governments, organizations, and entities to ensure investment strategies are developed that take into consideration existing rural assets; and

        `(D) encourage the organization of Regional Boards;

      `(4) certify the eligibility of Regional Boards to receive regional investment strategy grants and regional innovation grants;

      `(5) provide grants for Regional Boards to develop and implement regional investment strategies;

      `(6) provide technical assistance to Regional Boards on issues, best practices, and emerging trends relating to rural development, in cooperation with the National Rural Investment Board; and

      `(7) provide analytic and programmatic support for regional rural competitiveness through the National Institute, including--

        `(A) programs to assist Regional Boards in determining the challenges and opportunities that must be addressed to receive the greatest regional competitive advantage;

        `(B) support for best practices development by the regional investment boards;

        `(C) programs to support the development of appropriate governance and leadership skills in the region; and

        `(D) a review and annual evaluation of the performance of the Regional Boards (including progress in achieving benchmarks established in a regional investment strategy) in an annual report submitted to--

          `(i) the Committee on Agriculture of the House of Representatives; and

          `(ii) the Committee on Agriculture, Nutrition, and Forestry of the Senate.

    `(c) National Rural Investment Board- The Secretary shall establish within the Department of Agriculture a board to be known as the `National Rural Investment Board'.

    `(d) Duties of National Board- The National Board shall--

      `(1) not later than 180 days after the date of establishment of the National Board, develop rules relating to the operation of the National Board;

      `(2) provide advice to the Secretary and subsequently review the design, development, and execution of the National Rural Investment Plan;

      `(3) provide advice to Regional Boards on issues, best practices, and