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


The text of the bill below is as of Jul 23, 2007 (Reported by House Committee).

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 research of pests, …


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Union Calendar No. 164

110th CONGRESS

1st Session

H. R. 2419

[Report No. 110–256, Part I]

IN THE HOUSE OF REPRESENTATIVES

May 22, 2007

introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

July 23, 2007

Reported from the Committee on Agriculture with an amendment

Strike out all after the enacting clause and insert the part printed in italic

July 23, 2007

Committee on Foreign Affairs discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed

For text of introduced bill, see copy of bill as introduced on May 22, 2007

A BILL

To provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes.

1.

Short title and table of contents

(a)

Short title

This Act may be cited as the Farm, Nutrition, and Bioenergy Act of 2007.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title and table of contents.

Title I—Commodity Programs

Sec. 1001. Definitions.

Subtitle A—Direct Payments and Counter-Cyclical Payments

Sec. 1101. Adjustments to base acres.

Sec. 1102. Availability of direct payments.

Sec. 1103. Availability of counter-cyclical payments.

Sec. 1104. Availability of revenue-based 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. Period of effectiveness.

Subtitle B—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. Deadline for repayment of marketing assistance loan for peanuts.

Sec. 1211. Commodity quality incentive payments for healthy oilseeds.

Subtitle C—Sugar

Sec. 1301. Sugar program.

Sec. 1302. United States membership in the international sugar organization.

Sec. 1303. Flexible marketing allotments for sugar.

Subtitle D—Dairy-Related Provisions

Sec. 1401. Dairy product price support program.

Sec. 1402. Dairy forward pricing program.

Sec. 1403. Dairy export incentive program.

Sec. 1404. Revision of Federal marketing order amendment procedures.

Sec. 1405. Dairy indemnity program.

Sec. 1406. Extension of milk income loss contract program.

Sec. 1407. Dairy promotion and research program.

Sec. 1408. Report on Department of Agriculture reporting procedures for nonfat dry milk.

Sec. 1409. Federal Milk Marketing Order Review Commission.

Subtitle E—Administration

Sec. 1501. Administration generally.

Sec. 1502. Suspension of permanent price support authority.

Sec. 1503. Payment Limitations.

Sec. 1504. Adjusted gross income limitation.

Sec. 1505. Adjustments of loans.

Sec. 1506. Personal liability of producers for deficiencies.

Sec. 1507. Extension of existing administrative authority regarding loans.

Sec. 1508. Assignment of payments.

Sec. 1509. Tracking of benefits.

Sec. 1510. Upland cotton storage payments.

Sec. 1511. Government publication of cotton price forecasts.

Title II—Conservation

Subtitle A—Conservation Programs of the Food Security Act of 1985

Sec. 2101. Conservation reserve program.

Sec. 2102. Wetlands reserve program.

Sec. 2103. Conservation security program.

Sec. 2104. Grassland reserve program.

Sec. 2105. Environmental quality incentives program.

Sec. 2106. Regional water enhancement program.

Sec. 2107. Grassroots source water protection program.

Sec. 2108. Conservation of private grazing land.

Sec. 2109. Great Lakes basin program for soil erosion and sediment control.

Sec. 2110. Farm and ranchland protection program.

Sec. 2111. Farm viability program.

Sec. 2112. Wildlife habitat incentive program.

Subtitle B—Conservation Programs Under Other Laws

Sec. 2201. Agricultural management assistance program.

Sec. 2202. Resource Conservation and Development Program.

Sec. 2203. Small watershed rehabilitation program.

Subtitle C—Additional Conservation Programs

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment control.

Sec. 2302. Voluntary public access and habitat incentive program.

Subtitle D—Administration and Funding

Sec. 2401. Funding of conservation programs under Food Security Act of 1985.

Sec. 2402. Improved provision of technical assistance under conservation programs.

Sec. 2403. Cooperative conservation partnership initiative.

Sec. 2404. Regional equity and flexibility.

Sec. 2405. Administrative requirements for conservation programs.

Sec. 2406. Annual report on participation by specialty crop producers in conservation programs.

Sec. 2407. Promotion of market-based approaches to conservation.

Sec. 2408. Establishment of State technical committees and their responsibilities.

Sec. 2409. Payment limitations.

Subtitle E—Miscellaneous Provisions

Sec. 2501. Inclusion of income from affiliated packing and handling operations as income derived from farming for application of adjusted gross income limitation on eligibility for conservation programs.

Sec. 2502. Encouragement of voluntary sustainability practices guidelines.

Sec. 2503. Farmland resource information.

Title III—Trade

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.

Sec. 3002. Export credit guarantee program.

Sec. 3003. Market access program.

Sec. 3004. Food for Progress Act of 1985.

Sec. 3005. McGovern-Dole International Food for Education and Child Nutrition program.

Sec. 3006. Bill Emerson Humanitarian Trust.

Sec. 3007. Technical assistance for specialty crops.

Sec. 3008. Technical assistance for the resolution of trade disputes.

Sec. 3009. Representation by the United States at international standard-setting bodies.

Sec. 3010. Foreign market development cooperator program.

Sec. 3011. Emerging markets.

Sec. 3012. Export Enhancement Program.

Sec. 3013. Minimum level of nonemergency food assistance.

Sec. 3014. Germplasm conservation.

Title IV—NUTRITION PROGRAMS

Subtitle A—Food Stamp Program

Sec. 4001. Renaming the food stamp program.

Sec. 4002. Definition of drug addiction or alcoholic treatment and rehabilitation program.

Sec. 4003. Nutrition education.

Sec. 4004. Food distribution on Indian reservations.

Sec. 4005. Deobligate food stamp coupons.

Sec. 4006. Allow for the accrual of benefits.

Sec. 4007. State option for telephonic signature.

Sec. 4008. Review of major changes in program design.

Sec. 4009. Grants for simple application and eligibility determination systems and improved access to benefits.

Sec. 4010. Civil money penalties and disqualification of retail food stores and wholesale food concerns.

Sec. 4011. Major systems failures.

Sec. 4012. Funding of employment and training programs.

Sec. 4013. Reductions in payments for administrative costs.

Sec. 4014. Cash payment pilot projects.

Sec. 4015. Findings of Congress regarding Secure Supplemental Nutrition Assistance program nutrition education.

Sec. 4016. Nutrition education and promotion initiative to address obesity.

Sec. 4017. Authorization of appropriations.

Sec. 4018. Consolidated block grants for Puerto Rico and American Samoa.

Sec. 4019. Study on comparable access to Secure Supplemental Nutrition Assistance Program benefits for Puerto Rico.

Sec. 4020. Reauthorization of community food project competitive grants.

Sec. 4021. Emergency food assistance.

Subtitle B—Commodity Distribution

Sec. 4201. Authorization of appropriations.

Sec. 4202. Distribution of surplus commodities; special nutrition projects.

Sec. 4203. Commodity distribution program.

Subtitle C—Child Nutrition and Related Programs

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to schools and service institutions.

Sec. 4302. Buy American requirements.

Sec. 4303. Expansion of fresh fruit and vegetable program.

Sec. 4304. Purchases of locally produced foods.

Subtitle D—Miscellaneous

Sec. 4401. Seniors farmers’ market nutrition program.

Sec. 4402. Congressional Hunger Center.

Sec. 4403. Joint nutrition monitoring and related research activities.

Title V—CREDIT

Subtitle A—Farm ownership loans

Sec. 5001. Conservation loan guarantee program.

Sec. 5002. Limitations on amount of ownership loans.

Sec. 5003. Down payment loan program.

Sec. 5004. Beginning farmer and rancher contract land sales program.

Subtitle B—Operating loans

Sec. 5011. Limitations on amount of operating loans.

Sec. 5012. Suspension of limitation on period for which borrowers are eligible for guaranteed assistance.

Subtitle C—Administrative provisions

Sec. 5021. Inventory sales preferences.

Sec. 5022. Loan fund set-asides.

Sec. 5023. Transition to private commercial or other sources of credit.

Sec. 5024. Extension of the right of first refusal to reacquire homestead property to immediate family members of borrower-owner.

Sec. 5025. Rural development and farm loan program activities.

Subtitle D—Farm credit

Sec. 5031. Agribusiness loan eligibility.

Sec. 5032. Loan-to-asset value requirements.

Sec. 5033. Population limit for single-family housing loans.

Sec. 5034. Bank for cooperatives voting stock.

Sec. 5035. Majority farmer control requirement.

Sec. 5036. Borrower stock requirement.

Sec. 5037. Rural utility loans.

Sec. 5038. Farm Credit System Insurance Corporation.

Sec. 5039. Risk-based capital levels.

Sec. 5040. Loans to purchasers of highly fractioned lands.

Title VI—Rural Development

Sec. 6001. Definition of rural.

Sec. 6002. Water, waste disposal, and wastewater facility grants.

Sec. 6003. Rural business opportunity grants.

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

Sec. 6005. Tribal college and university essential community facilities.

Sec. 6006.  Emergency and imminent community water assistance grant program.

Sec. 6007. Water systems for rural and native villages in Alaska.

Sec. 6008. Grants to nonprofit organizations to finance the construction, refurbishing, and servicing of individually-owned household water well systems in rural areas for individuals with low or moderate incomes.

Sec. 6009. Rural cooperative development grants.

Sec. 6010. Criteria to be applied in providing loans and loan guarantees under the business and industry loan program.

Sec. 6011. Appropriate technology transfer for rural areas program.

Sec. 6012. Grants to improve technical infrastructure and improve quality of rural health care facilities.

Sec. 6013. Rural entrepreneur and microenterprise assistance program.

Sec. 6014. Criteria to be applied in considering applications for rural development projects.

Sec. 6015. National sheep industry improvement center.

Sec. 6016. National rural development partnership.

Sec. 6017. Historic barn preservation.

Sec. 6018. Grants for NOAA weather radio transmitters.

Sec. 6019. Delta regional authority.

Sec. 6020. Northern great plains regional authority.

Sec. 6021. Rural strategic investment program.

Sec. 6022. Expansion of 911 access.

Sec. 6023. Access to broadband telecommunications services in rural areas.

Sec. 6024. Community connect grant program.

Sec. 6025. Agriculture innovation center demonstration program.

Sec. 6026. Rural firefighters and emergency medical service assistance program.

Sec. 6027. Value-added agricultural market development program.

Sec. 6028. Assistance for rural public television stations.

Sec. 6029. Telemedicine and distance learning services in rural areas.

Sec. 6030. Guarantees for bonds and notes issued for electrification or telephone purposes.

Sec. 6031. Comprehensive rural broadband strategy.

Sec. 6032. Study of railroad issues.

Title VII—Research

Subtitle A—General Provisions

Sec. 7101. Definitions.

Sec. 7102. Budget submission and funding.

Sec. 7103. Additional purposes of agricultural research and extension.

Sec. 7104. National agricultural research program office.

Sec. 7105. Establishment of competitive grant programs under the National Institute for Food and Agriculture.

Sec. 7106. Merging of IFAFS and NRI.

Sec. 7107. Capacity building grants for ASCARR institutions.

Sec. 7108. Establishment of research laboratories for animal diseases.

Sec. 7109. Grazinglands research laboratory.

Sec. 7110. Researcher training.

Sec. 7111. Fort Reno Science Park research facility.

Sec. 7112. Assessing the nutritional composition of beef products.

Sec. 7113. Sense of Congress regarding funding for human nutrition research.

Subtitle B—National Agricultural Research, Extension, and Teaching Policy Act of 1977

Sec. 7201. Advisory board.

Sec. 7202. Advisory board termination.

Sec. 7203. Renewable energy committee.

Sec. 7204. Specialty crop committee report.

Sec. 7205. Inclusion of UDC in grants and fellowships for food and agricultural sciences education.

Sec. 7206. Grants and fellowships for food and agricultural sciences education.

Sec. 7207. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.

Sec. 7208. Policy research centers.

Sec. 7209. Human nutrition intervention and health promotion research program.

Sec. 7210. Pilot research program to combine medical and agricultural research.

Sec. 7211. Nutrition education program.

Sec. 7212. Continuing animal health and disease research programs.

Sec. 7213. Cooperation among eligible institutions.

Sec. 7214. Appropriations for research on national or regional problems.

Sec. 7215. Authorization level of extension at 1890 land-grant colleges.

Sec. 7216. Authorization level for agricultural research at 1890 land-grant colleges.

Sec. 7217. Grants to upgrade agriculture and food sciences facilities at the District of Columbia Land Grant University.

Sec. 7218. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University.

Sec. 7219. National research and training virtual centers.

Sec. 7220. Matching funds requirement for research and extension activities of 1890 institutions.

Sec. 7221. Hispanic-serving institutions.

Sec. 7222. Hispanic-serving agricultural colleges and universities.

Sec. 7223. International agricultural research, extension, and education.

Sec. 7224. Competitive grants for international agricultural science and education programs.

Sec. 7225. Limitation on indirect costs for agricultural research, education, and extension programs.

Sec. 7226. Research equipment grants.

Sec. 7227. University research.

Sec. 7228. Extension service.

Sec. 7229. Supplemental and alternative crops.

Sec. 7230. Aquaculture research facilities.

Sec. 7231. Rangeland research.

Sec. 7232. Special authorization for biosecurity planning and response.

Sec. 7233. Resident instruction and distance education grants program for insular area institutions of higher education.

Subtitle C—Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7301. National genetics resources program.

Sec. 7302. National agricultural weather information system.

Sec. 7303. Partnerships.

Sec. 7304. Aflatoxin research and extension.

Sec. 7305. High-priority research and extension areas.

Sec. 7306. High-priority research and extension initiatives.

Sec. 7307. Nutrient management research and extension initiative.

Sec. 7308. Agricultural telecommunications program.

Sec. 7309. Assistive technology program for farmers with disabilities.

Sec. 7310. Organic research.

Sec. 7311. National rural information center clearinghouse.

Sec. 7312. New era rural technology program.

Subtitle D—Agricultural Research, Extension, and Education Reform Act of 1998

Sec. 7401. Partnerships for high-value agricultural product quality research.

Sec. 7402. Precision agriculture.

Sec. 7403. Biobased products.

Sec. 7404. Thomas Jefferson initiative for crop diversification.

Sec. 7405. Integrated research, education, and extension competitive grants program.

Sec. 7406. Fusarium graminearum grants.

Sec. 7407. Bovine Johne’s disease control program.

Sec. 7408. Grants for youth organizations.

Sec. 7409. Agricultural biotechnology research and development for developing countries.

Sec. 7410. Agricultural bioenergy and biobased products research initiative.

Sec. 7411. Specialty crop research initiative.

Sec. 7412. Office of pest management policy.

Subtitle E—Other Laws

Sec. 7501. Critical agricultural materials act.

Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.

Sec. 7503. Agricultural experiment station Research Facilities Act.

Sec. 7504. National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985.

Sec. 7505. Competitive, Special, and Facilities Research Grant Act (national research initiative).

Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle research).

Sec. 7507. Renewable Resources Extension Act of 1978.

Sec. 7508. National Aquaculture Act of 1980.

Sec. 7509. Construction of a Chinese Garden at the National Arboretum.

Sec. 7510. Public education regarding use of biotechnology in producing food for human consumption.

Sec. 7511. Fresh cut produce safety grants.

Sec. 7512. UDC/EFNEP Eligibility.

Sec. 7513. Smith-Lever Act.

Sec. 7514. Hatch Act of 1987.

Subtitle F—Additional Provisions

Sec. 7601. Merit review of extension and educational grants.

Sec. 7602. Review of plan of work requirements.

Sec. 7603. Multistate and integration funding.

Sec. 7604. Expanded food and nutrition education program.

Sec. 7605. Grants to 1890 schools to expand extension capacity.

Sec. 7606. Borlaug international agricultural science and technology fellowship program.

Sec. 7607. Support for research regarding diseases of wheat, triticale, and barley caused by fusarium graminearum or by tilletia indica.

Sec. 7608. Cost Recovery.

Sec. 7609. Organic Food and Agricultural Systems Funding.

Title VIII—Forestry

Subtitle A—Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.

Sec. 8002. Long-term, State-wide assessments and strategies for forest resources.

Sec. 8003. Assistance to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

Sec. 8004. Changes to Forest Resource Coordinating Committee.

Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.

Sec. 8006. Competition in programs under Cooperative Forestry Assistance Act of 1978.

Sec. 8007. Cooperative forest innovation partnership projects.

Subtitle B—Amendments to Other Laws

Sec. 8101. Healthy forest reserve program.

Sec. 8102. Emergency forest restoration program.

Sec. 8103. Office of International Forestry.

Sec. 8104. Rural revitalization technologies.

Subtitle C—Miscellaneous Provisions

Sec. 8201. Hispanic-serving institution agricultural land national resources leadership program.

Title IX—Energy

Sec. 9001. Table of contents.

Sec. 9002. Federal procurement of biobased products.

Sec. 9003. Loan guarantees for biorefineries and biofuel production plants.

Sec. 9004. Energy audit and renewable energy development program.

Sec. 9005. Renewable energy systems and energy efficiency improvements.

Sec. 9006. Biomass Research and Development Act of 2000.

Sec. 9007. Adjustments to the bioenergy program.

Sec. 9008. Research, extension, and educational programs on biobased energy technologies and products.

Sec. 9009. Energy Council of the Department of Agriculture.

Sec. 9010. Farm energy production pilot program.

Sec. 9011. Rural energy self-sufficiency initiative.

Sec. 9012. Agricultural biofuels from biomass internship pilot program.

Sec. 9013. Feedstock flexibility program for bioenergy producers.

Sec. 9014. Dedicated ethanol pipeline feasibility studies.

Sec. 9015. Biomass inventory report.

Sec. 9016. Future farmsteads program.

Sec. 9017. Sense of Congress on renewable energy.

Title X—Horticulture and Organic Agriculture

Subtitle A—Honey and Bees

Sec. 10001. Annual report on response to honey bee colony collapse disorder.

Subtitle B—Horticulture Provisions

Sec. 10101. Tree assistance program.

Sec. 10102. Specialty crop block grants.

Sec. 10103. Additional section 32 funds for purchase of fruits, vegetables, and nuts to support domestic nutrition assistance programs.

Sec. 10104. Independent evaluation of Department of Agriculture commodity purchase process.

Sec. 10105. Quality requirements for clementines.

Sec. 10106. Implementation of food safety programs under marketing orders.

Sec. 10107. Inclusion of specialty crops in census of agriculture.

Sec. 10108. Maturity requirements for Hass avocados.

Sec. 10109. Mushroom promotion, research, and consumer information.

Sec. 10110. Fresh produce education initiative.

Subtitle C—Pest and Disease Management

Sec. 10201. Pest and disease program.

Sec. 10202. Multi-species fruit fly research and sterile fly production.

Subtitle D—Organic Agriculture

Sec. 10301. National organic certification cost-share program.

Sec. 10302. Organic production and market data.

Sec. 10303. Organic conversion, technical, and educational assistance.

Subtitle E—Miscellaneous Provisions

Sec. 10401. Restoration of import and entry agricultural inspection functions to the Department of Agriculture.

Sec. 10402. Grant program to improve movement of specialty crops.

Sec. 10403. Authorization of appropriations for market news activities regarding specialty crops.

Sec. 10404. Farmers’ market promotion program.

Sec. 10405. National Clean Plant Network.

Title XI—Miscellaneous Provisions

Subtitle A—Federal Crop Insurance

Sec. 11001. Availability of supplemental crop insurance based on area yield and loss plan of insurance or area revenue plan of insurance.

Sec. 11002. Premiums and reinsurance requirements.

Sec. 11003. Catastrophic risk protection administrative fee.

Sec. 11004. Funding for reimbursements, contracting, risk management education, and information technology.

Sec. 11005. Reimbursement of research and development costs related to new crop insurance products.

Sec. 11006. Research and development contracts for organic production coverage improvements.

Sec. 11007. Targeting risk management education for beginning farmers and ranchers and certain other farmers and ranchers.

Sec. 11008. Crop insurance ineligibility related to crop production on noncropland.

Sec. 11009. Funds for data mining.

Sec. 11010. Noninsured crop assistance program.

Sec. 11011. Change in due date for Corporation payments for underwriting gains.

Sec. 11012. Sesame insurance pilot program.

Subtitle B—Livestock and Poultry

Sec. 11101. Sense of Congress regarding pseudorabies eradication program.

Sec. 11102. Arbitration of livestock and poultry contracts.

Sec. 11103. State-inspected meat and poultry.

Sec. 11104. Country of origin labeling.

Sec. 11105. Sense of Congress regarding State inspected meat and poultry products.

Sec. 11106. Sense of Congress regarding the voluntary control program for low pathogenic avian influenza.

Sec. 11107. Sense of Congress regarding the cattle fever tick eradication program.

Subtitle C—Socially Disadvantaged Producers and Limited Resource Producers

Sec. 11201. Outreach and technical assistance for socially disadvantaged farmers and ranchers and limited resource farmers and ranchers.

Sec. 11202. Improved program delivery by Department of Agriculture on Indian reservations.

Sec. 11203. Transparency and accountability for socially disadvantaged farmers and ranchers.

Sec. 11204. Beginning farmer and rancher development program.

Sec. 11205. Provision of receipt for service or denial of service.

Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and limited resource farmers and ranchers in Census of Agriculture and certain studies.

Sec. 11207. Farmworker coordinator.

Sec. 11208. Office of Outreach relocation.

Sec. 11209. Minority farmer advisory committee.

Sec. 11210. Coordinator for chronically underserved rural areas.

Subtitle D—Other Miscellaneous Provisions

Sec. 11301. Designation of separate cotton-producing States under Cotton Research and Promotion Act.

Sec. 11302. Cotton classification services.

Sec. 11303. Availability of excess and surplus computers in rural areas.

Sec. 11304. Permanent debarment from participation in Department of Agriculture programs for fraud.

Sec. 11305. No discrimination against use of registered pesticide products or classes of pesticide products.

Sec. 11306. Prohibition on closure or relocation of county offices for the Farm Service Agency, Rural Development Agency, and Natural Resources Conservation Service.

Sec. 11308. Regulation of exports of plants, plant products, biological control organisms, and noxious weeds.

Sec. 11309. Grants to reduce production of methamphetamines from anhydrous ammonia.

Sec. 11310. USDA Graduate School.

I

Commodity Programs

Sec. 1001. Definitions.

Subtitle A—Direct Payments and Counter-Cyclical Payments

Sec. 1101. Adjustments to base acres.

Sec. 1102. Availability of direct payments.

Sec. 1103. Availability of counter-cyclical payments.

Sec. 1104. Availability of revenue-based 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. Period of effectiveness.

Subtitle B—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. Deadline for repayment of marketing assistance loan for peanuts.

Sec. 1211. Commodity quality incentive payments for healthy oilseeds.

Subtitle C—Sugar

Sec. 1301. Sugar program.

Sec. 1302. United States membership in the international sugar organization.

Sec. 1303. Flexible marketing allotments for sugar.

Subtitle D—Dairy-Related Provisions

Sec. 1401. Dairy product price support program.

Sec. 1402. Dairy forward pricing program.

Sec. 1403. Dairy export incentive program.

Sec. 1404. Revision of Federal marketing order amendment procedures.

Sec. 1405. Dairy indemnity program.

Sec. 1406. Extension of milk income loss contract program.

Sec. 1407. Dairy promotion and research program.

Sec. 1408. Report on Department of Agriculture reporting procedures for nonfat dry milk.

Sec. 1409. Federal Milk Marketing Order Review Commission.

Subtitle E—Administration

Sec. 1501. Administration generally.

Sec. 1502. Suspension of permanent price support authority.

Sec. 1503. Payment Limitations.

Sec. 1504. Adjusted gross income limitation.

Sec. 1505. Adjustments of loans.

Sec. 1506. Personal liability of producers for deficiencies.

Sec. 1507. Extension of existing administrative authority regarding loans.

Sec. 1508. Assignment of payments.

Sec. 1509. Tracking of benefits.

Sec. 1510. Upland cotton storage payments.

Sec. 1511. Government publication of cotton price forecasts.

1001.

Definitions

In this title:

(1)

Agricultural Act of 1949

The term Agricultural Act of 1949 means the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), as in effect prior to the suspensions under section 171 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301), section 1602(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7992(b)), and section 1502(b) of this Act.

(2)

Base acres

The term base acres, with respect to a covered commodity on a farm, means the number of acres established under sections 1101 and 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952), as in effect on the day before the date of the enactment of this Act, subject to any adjustment under section 1101 of this Act.

(3)

Comparable united states quality

The term Comparable United States Quality, with respect to upland cotton, means upland cotton classified as Middling (M) 13/32-inch cotton with a micronaire of 3.7 to 4.2, strength 30 grams per tex, and uniformity of 83.

(4)

Counter-cyclical payment

The term counter-cyclical payment means a payment made to producers on a farm under section 1103 or 1104.

(5)

Covered commodity

The term covered commodity means wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, peanuts, and other oilseeds.

(6)

Direct payment

The term direct payment means a payment made to producers on a farm under section 1102.

(7)

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 1103 to determine whether counter-cyclical payments are required to be made for that crop year under that section.

(8)

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.

(9)

Far east price

The term Far East price means the Friday through Thursday average price quotation for the three lowest-priced growths of upland cotton, as quoted for Middling (M) 13/32-inch cotton, delivered C/F Far East.

(10)

Loan commodity

The term loan commodity means wheat, corn, grain sorghum, feed barley, malt barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, short grain rice, soybeans, peanuts, other oilseeds, wool, mohair, honey, dry peas, lentils, and small chickpeas.

(11)

Other oilseed

The term other oilseed means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or, if designated by the Secretary, another oilseed.

(12)

Payment acres

The term payment acres, with respect to a covered commodity on a farm, means 85 percent of the base acres for the covered commodity, on which direct payments and counter-cyclical payments are made.

(13)

Payment yield

The term payment yield means the yield established for direct payments and counter-cyclical payments under section 1102 or 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912; 7952), as in effect on the day before the date of the enactment of this Act, for a farm for a covered commodity.

(14)

Producer

(A)

In general

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

(B)

Hybrid seed

In determining whether a grower of hybrid seed is a producer, the Secretary shall—

(i)

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

(ii)

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

(15)

Secretary

The term Secretary means the Secretary of Agriculture.

(16)

State

The term State means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.

(17)

Target price

The term target price means the price per bushel (or other appropriate unit in the case of upland cotton, rice, peanuts, and other oilseeds) of a covered commodity used to determine the payment rate for counter-cyclical payments under section 1103.

(18)

United States

The term United States, when used in a geographical sense, means all of the States.

(19)

United States premium factor

The term United States Premium Factor means the percentage by which the difference in the United States loan schedule premiums for Strict Middling (SM) 11/8-inch cotton and for M 13/32-inch exceeds the difference in the applicable premiums for comparable international qualities delivered C/F Far East.

A

Direct Payments and Counter-Cyclical Payments

1101.

Adjustments to base acres

(a)

Treatment of conservation reserve contract acreage

(1)

In general

The Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm whenever either of the following circumstances occurs:

(A)

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

(B)

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

(2)

Special payment rules

For the crop year in which a base acres 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

(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 so that the sum of the base acres and acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.

(2)

Other acreage

For purposes of paragraph (1), the Secretary shall include the following:

(A)

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

(B)

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

(3)

Selection of acres

The Secretary shall give the owner of the farm the opportunity to select the base acres against which the reduction required by paragraph (1) will be made.

(4)

Exception for double-cropped acreage

In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.

(c)

Permanent reduction in base acres

(1)

In general

The owner of a farm may reduce, at any time, the base acres for any covered commodity for the farm.

(2)

Administration

The reduction shall be permanent and made in the manner prescribed by the Secretary.

1102.

Availability of direct payments

(a)

Payment required

For each of the 2008 through 2012 crop years of each covered commodity, 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)

Rice, $2.35 per hundredweight.

(8)

Soybeans, $0.44 per bushel.

(9)

Other oilseeds, $0.0080 per pound.

(10)

Peanuts, $36.00 per ton.

(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 may not make direct payments before October 1 of the calendar year in which the crop of the covered commodity is harvested.

(2)

Advance payments

(A)

Option

At the option of the producers on a farm, up to 22 percent of the direct payment for a covered commodity for any of the 2008 through 2011 crop years shall be paid to the producers in advance.

(B)

Month

(i)

Selection

The producers shall select the month within which the advance payment for a crop year will be made.

(ii)

Options

The month selected may be any month during the period beginning on December 1 of the calendar year before the calendar year in which the crop of the covered commodity is harvested through the month within which the direct payment would otherwise be made.

(iii)

Change

The producers 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.

(e)

Prohibition on de minimis payments

If the total direct payment to be paid to a producer on a farm for all covered commodities is less than $25.00, the Secretary shall not tender the direct payment to the producer.

1103.

Availability of counter-cyclical payments

(a)

Payment required

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

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

(1)

The higher of the following:

(A)

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

(B)

The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable period under subtitle B, except that, for the purpose of calculating counter-cyclical payments under this section for rice and barley, the Secretary shall establish national average all rice and all barley loan rates.

(2)

The payment rate in effect for the covered commodity under section 1102 for the purpose of making direct payments with respect to the covered commodity.

(c)

Target price

For purposes of subsection (a), the target prices for covered commodities shall be as follows:

(1)

Wheat, $4.15 per bushel.

(2)

Corn, $2.63 per bushel.

(3)

Grain sorghum, $2.57 per bushel.

(4)

Barley, $2.73 per bushel.

(5)

Oats, $1.50 per bushel.

(6)

Upland cotton, $0.70 per pound.

(7)

Rice, $10.50 per hundredweight.

(8)

Soybeans, $6.10 per bushel.

(9)

Other oilseeds, $0.1150 per pound.

(10)

Peanuts, $495.00 per ton.

(d)

Payment rate

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

(1)

the target price for the covered commodity; and

(2)

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

(e)

Payment amount

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

(1)

The payment rate specified in subsection (d).

(2)

The payment acres of the covered commodity on the farm.

(3)

The payment yield for the covered commodity for the farm.

(f)

Time for payments

(1)

General rule

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 as soon as practicable after the end of the 12-month marketing year for the covered commodity.

(2)

Availability of partial payments

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.

(3)

Time for partial payments for 2008 through 2010 crop years

If the Secretary is required to make partial payments available under paragraph (2) 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 6 months of the marketing year for the covered commodity; and

(B)

the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity.

(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 covered commodity for the crop year, as determined by the Secretary.

(B)

Final payment

The final payment for each of the 2008 through 2010 crop years 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.

(g)

Prohibition on de minimis payments

If the total counter-cyclical payment to be paid to a producer on a farm for all covered commodities is less than $25.00, the Secretary shall not tender the counter-cyclical payment to the producer.

1104.

Availability of revenue-based counter-cyclical payments

(a)

Availability and election of alternative approach

(1)

Availability of revenue-based counter-cyclical payments

As an alternative to receiving counter-cyclical payments under section 1103 with respect to each covered commodity on a farm, the Secretary shall give the producers on the farm an opportunity to elect to instead receive revenue-based counter-cyclical payments under this section for the 2008 through 2012 crop years.

(2)

Single election; time for election

As soon as practicable after the date of enactment of this Act, the Secretary shall provide notice to producers regarding their opportunity to make the election described in paragraph (1). The notice shall include the following:

(A)

Notice that the opportunity of the producers on a farm to make the election is being provided only once.

(B)

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 counter-cyclical payments under section 1103 for all covered commodities on the farm.

(b)

Payment required

In the case of producers on a farm who make the election under subsection (a) to receive revenue-based counter-cyclical payments, the Secretary shall make revenue-based counter-cyclical payments to such producers with respect to a covered commodity on the farm, if the Secretary determines that the national actual revenue per acre for the covered commodity is less than the national target revenue per acre for the covered commodity, as determined pursuant to this section.

(c)

National actual revenue per acre

For each covered commodity for each of the 2008 through 2012 crop years, the Secretary shall establish a national actual revenue per acre by multiplying the national average yield for the given year by the higher of—

(1)

the national average market price received by producers of the covered commodity during the 12-month marketing year established by the Secretary; or

(2)

the loan rate for the covered commodity under section 1202, except that, for the purpose of calculating national actual revenue per acre for rice and barley, the Secretary shall establish national average all rice and all barley loan rates.

(d)

National target revenue per acre

The national target revenue per acre shall be, on a per acre basis, as follows:

(1)

Wheat, $149.92.

(2)

Corn, $344.12.

(3)

Grain Sorghum, $131.28.

(4)

Barley, $153.30.

(5)

Oats, $92.10

(6)

Upland cotton, $496.93.

(7)

Rice, $548.06.

(8)

Soybeans, $231.87.

(9)

Other oilseeds, $129.18.

(10)

Peanuts, $683.83.

(e)

National payment yield

The national payment yield shall be as follows:

(1)

Wheat, 36.1 bushels per acre.

(2)

Corn, 114.4 bushels per acre.

(3)

Grain Sorghum, 58.2 bushels per acre.

(4)

Barley, 48.6 bushels per acre.

(5)

Oats, 49.8 bushels per acre.

(6)

Upland cotton, 634 pounds per acre.

(7)

Rice, 51.28 hundredweight per acre.

(8)

Soybeans, 34.1 bushels per acre.

(9)

Other oilseeds, 1167.6 pounds per acre.

(10)

Peanuts, 1.496 tons per acre.

(f)

National payment rate

The national payment rate used to make revenue-based counter-cyclical payments for a crop year shall be the result of—

(1)

the difference between the national target revenue per acre for the covered commodity and the national actual revenue per acre for the covered commodity; divided by

(2)

the national payment yield for the covered commodity.

(g)

Payment amount

If revenue-based 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 for the covered commodity shall be equal to the product of—

(1)

the national payment rate for the covered commodity;

(2)

the payment acres of the covered commodity on the farm; and

(3)

the payment yield for counter-cyclical payments for the covered commodity.

(h)

Time for payments

(1)

General rule

If the Secretary determines that revenue-based 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 as soon as practicable after the end of the 12-month marketing year for the covered commodity.

(2)

Availability of partial payments

If, before the end of the 12-month marketing year for a covered commodity, the Secretary estimates that revenue-based 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 revenue-based counter-cyclical payments projected to be made for that crop of the covered commodity.

(3)

Time for partial payments for 2008 through 2010 crop years

If the Secretary is required to make partial payments available under paragraph (2) 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 6 months of the marketing year for the covered commodity; and

(B)

the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity.

(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 revenue-based counter-cyclical payment for the covered commodity for the crop year, as determined by the Secretary.

(B)

Final payment

The final payment for each of the 2008 through 2010 crop years shall be equal to the difference between—

(i)

the actual revenue-based counter-cyclical payments 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 on a farm under subparagraph (A) for that crop year.

(5)

Repayment

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 revenue-based counter-cyclical payments to be made for the covered commodity for that crop year.

(i)

Prohibition on de minimis payments

If the total revenue-based counter-cyclical payment to be paid to a producer on a farm for all covered commodities is less than $25.00, the Secretary shall not tender the revenue-based counter-cyclical payment to the producer.

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 for an agricultural or conserving use, and not for a nonagricultural commercial or industrial use, 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.

(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

As a condition on the receipt of any benefits under this subtitle or subtitle B, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.

(d)

Tenants and sharecroppers

In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

(e)

Sharing of payments

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

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 lentils, mung beans, and dry peas).

(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 2012 crop years.

(2)

Contract and management requirements

To be eligible for selection to participate in the pilot project, a producer must—

(A)

have a contract to grow 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 for a crop year shall be reduced by an acre for each acre planted to tomatoes under the pilot program.

(4)

Duration of reductions

The reduction in the base acres of a farm for a crop year under paragraph (3) shall expire at the end of the crop year, unless the producers on the farm elect to continue to participate in the pilot project for the subsequent crop year.

(5)

Recalculation of base acres

If the Secretary recalculates base acres for a farm while the farm is included in the pilot project, the planting and production of tomatoes under the pilot project shall be considered to be the same as the planting, prevented planting, or production of a covered commodity. Nothing in this paragraph provides authority for the Secretary to recalculate base acres for a farm.

1107.

Period of effectiveness

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

B

Marketing Assistance Loans and Loan Deficiency Payments

1201.

Availability of nonrecourse marketing assistance loans for loan commodities

(a)

Nonrecourse loans available

(1)

Availability

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 subtitle, 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 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.

(e)

Peanut-related loan provisions

(1)

Options for obtaining loans

A marketing assistance loan for peanuts under this section and loan deficiency payments for peanuts under section 1205 may be obtained at 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.

(2)

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.

(3)

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.

1202.

Loan rates for nonrecourse marketing assistance loans

(a)

Loan rates

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 malt barley, $2.50 per bushel.

(5)

In the case of feed barley, $1.90 per bushel.

(6)

In the case of oats, $1.46 per bushel.

(7)

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

(8)

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

(9)

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

(10)

In the case of medium grain rice and short grain rice, $6.50 per hundredweight.

(11)

In the case of soybeans, $5.00 per bushel.

(12)

In the case of other oilseeds, $0.1070 per pound for each of the following kinds of oilseeds:

(A)

Sunflower seed.

(B)

Rapeseed.

(C)

Canola.

(D)

Safflower.

(E)

Flaxseed.

(F)

Mustard seed.

(G)

Crambe.

(H)

Sesame seed.

(I)

Other oilseeds designated by the Secretary.

(13)

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

(14)

In the case of lentils, $11.28 per hundredweight.

(15)

In the case of small chickpeas, $8.54 per hundredweight.

(16)

In the case of peanuts, $355.00 per ton.

(17)

In the case of graded wool, $1.10 per pound.

(18)

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

(19)

In the case of honey, $0.60 per pound.

(20)

In the case of mohair, $4.20 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)(12).

(c)

Special rules for corn and grain sorghum

(1)

Single county and national average loan rate

The Secretary shall—

(A)

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

(B)

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

(C)

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 commodities.

(2)

Administration

With respect to corn and grain sorghum, the Secretary—

(A)

shall administer the applicable loan, marketing loan, counter-cyclical payment, and related programs from a single loan rate for corn and grain sorghum that is identical in each individual county;

(B)

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

(C)

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

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.

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, short grain rice, extra long staple cotton, and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at the lesser of the following:

(1)

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

(2)

A rate 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, if applicable.

(b)

Repayment rates for upland cotton and rice

The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, medium grain rice, and short 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 the prevailing world market price for upland cotton, which shall be based on the Far East price of upland cotton;

(2)

a formula to determine the prevailing world market price for—

(A)

long grain rice; and

(B)

medium and short grain rice;

(3)

a mechanism by which the Secretary will announce periodically the prevailing world market price for upland cotton, long grain rice, and medium and short grain rice; and

(4)

a mechanism by which the Secretary will make the adjustments, required by subsection (e), to the prevailing world market price for upland cotton, long grain rice, and medium and short grain rice.

(e)

Adjustment of prevailing world market price for upland cotton and rice

(1)

Rice

The prevailing world market price for long grain, medium grain, and short grain rice determined in subsection (d) shall be adjusted to United States quality and location.

(2)

Cotton

The prevailing world market price for upland cotton, determined in subsection (d) shall be—

(A)

adjusted to United States quality and location, with such quality adjustment to include—

(i)

any existing United States loan schedule premiums for Comparable United States Quality; and

(ii)

a reduction equal to any United States Premium Factor to upland cotton of a quality higher than Middling (M) 13/32-inch; and

(B)

adjusted to take into account average costs to market the commodity, including average transportation costs, as determined by the Secretary.

(f)

Additional adjustment authority regarding prevailing world market price for upland cotton

(1)

In general

During the period beginning on the date of the enactment of this Act through July 31, 2013, the Secretary may further adjust the prevailing world market price for upland cotton (adjusted under subsection (d)) if the Secretary determines such adjustment necessary—

(A)

to minimize potential loan forfeitures;

(B)

to minimize the accumulation of stocks of the commodity by the Federal Government;

(C)

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

(D)

to ensure that United States cotton 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 the current marketing year only if there are less than three current-crop price quotations and only if such forward-crop price quotation is the lowest such quotation available.

(2)

Guidelines for additional adjustment

In further adjusting the prevailing world market price for upland cotton under this subsection, the Secretary shall establish a mechanism for determining and announcing such adjustments in order to avoid undue disruption in the United States market.

(g)

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.

(h)

Quality grades for dry peas, lentils, and small chickpeas

The loan repayment rate for dry peas, lentils, and small chickpeas shall be based on the quality grades for the applicable commodity.

1205.

Loan deficiency payments

(a)

Availability of loan deficiency payments

(1)

In general

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

(2)

Unshorn pelts, hay, and silage

(A)

Marketing assistance loans

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

(B)

Loan deficiency payment

Effective for the 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

The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.

1206.

Payments in lieu of loan deficiency payments for grazed acreage

(a)

Eligible producers

(1)

In general

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 subtitle A 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 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912).

(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 subtitle A 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 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912).

(c)

Time, manner, and availability of payment

(1)

Time and manner

A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 1205.

(2)

Availability

(A)

In general

The Secretary shall establish an availability period for the payments authorized by this section.

(B)

Certain commodities

In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this subtitle.

(d)

Prohibition on crop insurance indemnity or noninsured crop assistance

A 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 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).

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) 13/32-inch cotton, delivered C/F Far East, exceeds the Far East price there shall immediately be in effect a special import quota.

(3)

Quantity

The quota shall be equal to 1 week's consumption of upland 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 (1) 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 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.

(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)

Issuance of marketing certificates or cash payments

During the period beginning on the date of the enactment of this Act through July 31, 2013, the Secretary shall issue, on a monthly basis, marketing certificates or cash payments, at the option of the recipient, to domestic users of upland cotton for all documented use of upland cotton during the previous monthly period regardless of the origin of the upland cotton.

(2)

Value of certificates or payments

The value of the marketing certificates or cash payments shall be 4 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 such funds shall be used only for acquisition, construction, installation, modernization, development, conversion, or expansion of 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 determined necessary to carry out the provisions of 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 liable to repay such assistance to the Secretary, plus interest, as determined by the Secretary, and shall be ineligible to participate in the program established by this subsection for a period of 12 months following the determination of the Secretary.

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.

(e)

Form of payment

Payments under this section shall be made through the issuance of cash or marketing certificates, at the option of eligible recipients of the payments.

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 subtitle A or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.

(b)

Recourse loans available for seed cotton

For each of the 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)).

1210.

Deadline for repayment of marketing assistance loan for peanuts

(a)

June 30 redemption deadline

Notwithstanding any other provision of law, a marketing assistance loan for peanuts may not be redeemed after June 30 of the year subsequent to the year in which the peanuts were harvested.

(b)

Effect of failure to redeem

A marketing assistance loan for peanuts that is not redeemed before the deadline imposed by subsection (a) shall be deemed to be forfeited to the Commodity Credit Corporation.

1211.

Commodity quality incentive payments for healthy oilseeds

(a)

Incentive payments required

Subject to the availability of funds for this purpose, the Secretary shall provide commodity quality incentive payments during the 2009 through 2013 crop years 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 that has, as determined by the Secretary—

(1)

been demonstrated to reduce or eliminate the need to partially hydrogenate the oil derived from the oilseed for use in human consumption; and

(2)

1 or more traits for which compelling impediments to commercialization have been identified.

(c)

Request for proposals

(1)

Issuance

If funds are 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 trait of the oilseed described in subsection (b)(2) and the value of the trait as a matter of public policy;

(B)

the projected market size and value of the trait;

(C)

the projected impact of the proposal on—

(i)

the future price of loan commodities; and

(ii)

if appropriate, on Federal Government farm program outlays to support loan commodities;

(D)

a range for the amount of total per bushel premiums to be paid to producers;

(E)

a per bushel amount of incentive payments requested for each year under this section that—

(i)

does not exceed 1/3 of the total premium offered for any year; and

(ii)

declines over time;

(F)

the period of time, of not to exceed 4 years, during which incentive payments are to be provided to producers; and

(G)

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 successful applicants to offer production contracts to producers beginning in advance of the spring planting season for the 2009 crop year.

(2)

Multiyear contracts

A successful applicant may enter into a multiyear contract with—

(A)

a specific group of producers; or

(B)

various groups of producers.

(3)

Timing of payments

The Secretary shall make payments under this section after the Secretary receives documentation that the total premium offered for crops produced under a contract (including the amount of incentive payments) 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 years under this section.

(f)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2009 through 2013.

C

Sugar

1301.

Sugar program

(a)

In general

Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended to read as follows:

156.

Sugar program

(a)

Sugarcane

The Secretary shall make loans for raw cane sugar available to processors of domestically grown sugarcane at a rate equal to 18.5 cents per pound for each of the 2008 through 2012 crop years.

(b)

Sugar beets

The Secretary shall make loans for refined beet sugar available to processors of domestically grown sugar beets at a rate equal to 23.5 cents per pound for each of the 2008 through 2012 crop years.

(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)

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

If a reduction in the quantity of production accepted under subparagraph (A) involves sugar beets or sugarcane that has already been planted, the sugar beets or sugarcane so planted 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.

(g)

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)

Collection of information on mexico

(A)

Collection

The Secretary shall collect—

(i)

information on 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, including United States exports of high fructose corn syrups to Mexico.

(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 to be reported by paragraph (1), (2), or (3), or furnishing willfully 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.

(h)

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.

(i)

Effective period

This section shall be effective only for the 2008 through 2012 crops of sugar beets and sugarcane.

.

(b)

Transition

The Secretary of Agriculture shall make loans for raw cane sugar and refined beet sugar available for the 2007 crop year on the terms and conditions provided in section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), as in effect on the day before the date of the enactment of this Act.

1302.

United States membership in the international sugar organization

The Secretary of Agriculture shall work with the Secretary of State to restore United States membership in the International Sugar Organization within one year after the date of enactment of this Act.

1303.

Flexible marketing allotments for sugar

(a)

Definition of human consumption

Section 359a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended—

(1)

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

(2)

by inserting before paragraph (2), as so redesignated, the following new paragraph (1):

(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.

.

(b)

Sugar allotments

Section 359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to read as follows:

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 such 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 no 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 such sugar beets or in-process beet sugar was produced domestically or imported) at a level 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).

(2)

Minimum

The level of allotments established under paragraph (1) may not be less than 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.

(3)

Products

The Secretary may include sugar products, whose majority content is sucrose, in the allotments established under paragraph (1) if the Secretary determines that the inclusion of such sugar products is appropriate for controlling the supply of sugar for human consumption.

(c)

Coverage of allotments

(1)

In general

The marketing allotments provided for in this part shall apply to the marketing by processors of sugar intended for domestic human consumption that has been processed from sugar cane or 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 crop years 2002 through 2007, the marketing allotments shall not apply to sugar sold—

(A)

to facilitate the exportation of such sugar to a foreign country, except that such exports of sugar shall not be eligible to receive credits under re-export programs for refined sugar or sugar containing products administered by the Secretary;

(B)

to enable another processor to fulfill an allocation established for such other processor, except that such sales must be made before May 1 and must be reported to the Secretary; or

(C)

for uses other than domestic human consumption.

(d)

Prohibitions

(1)

In general

During any crop year or portion thereof 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 such processor, except to enable another processor to fulfill an allocation established for such other processor or to facilitate the exportation of such 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.

(3)

Definition of market

For purposes of this part, the term market shall mean to sell or otherwise dispose of in commerce in the United States, including—

(A)

the forfeiture of sugar under the loan program for sugar under section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) and such forfeited sugar shall be deemed to have been marketed during the crop year in which the loan was made;

(B)

with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process; and

(C)

the sale of sugar for the production of ethanol or other bioenergy product, if such ethanol or bioenergy product is the subject of a payment under the feedstock flexibility program for bioenergy producers.

.

(c)

Establishment

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 new subsection:

(b)

Overall allotment quantity

(1)

In general

The Secretary shall establish the overall quantity of sugar to be allotted for the crop year (in this part referred to as the ‘overall allotment quantity’) at a level sufficient to maintain raw and refined sugar prices above forfeiture levels to avoid the forfeiture of sugar to the Commodity Credit Corporation.

(2)

Minimum

The overall allotment quantity established under paragraph (1) may not be less than 85 percent of the estimated quantity of sugar for domestic human consumption for the crop year.

(3)

Adjustment

Subject to paragraphs (1) and (2), the Secretary shall adjust the overall allotment quantity—

(A)

to maintain raw and refined sugar prices above forfeiture levels to avoid the forfeiture of sugar to the Commodity Credit Corporation; and

(B)

to maintain adequate supplies of raw and refined sugar in the domestic market.

;

(2)

in subsection (d)(2), by inserting before the period the following: or in-process beet sugar;

(3)

in subsection (g)(1), by inserting at the end the following new sentence: However, the overall allotment quantity may not be reduced to a quantity 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 new subparagraph:

(H)

New entrants starting production, reopening, or acquiring an existing factory with production history

(i)

Allocation for a new entrant that has constructed a new factory or reopened a factory that was not operating 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 in order 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.

(ii)

Allocation for a new entrant that has acquired an existing factory with a production history

If a New Entrant acquires an existing factory that has processed sugar beets from the 1998 or later crop years and has a production history, then, upon 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 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. In the absence of mutual agreement, the new entrant shall be ineligible for a beet sugar allocation.

(iii)

Appeals

Any decision made under this subsection may be appealed to the Secretary pursuant to section 359i.

(iv)

Definition

In this subparagraph, the term New Entrant means an individual, corporation, or other entity that does not have an allocation of the beet sugar allotment under this part, is not affiliated with any other individual, corporation, or entity that has an allocation of beet sugar under this part (known as a third party), and 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.

(v)

Affiliation

For purposes of this subparagraph, a New Entrant and a third party shall be deemed to be affiliated if—

(I)

the third party has an ownership interest in the New Entrant;

(II)

the New Entrant and the third party have owners in common;

(III)

the third party has the ability to exercise control over the New Entrant by organizational rights, contractual rights, or any other means;

(IV)

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 such third party; or

(V)

any other similar circumstance exists by which the Secretary determines that the New Entrant and the third party are affiliated.

.

(e)

Reassignment of deficits

Section 359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in both paragraphs (1)(D) and (2)(C) by inserting of raw cane sugar after imports.

(f)

Provisions applicable to producers

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

(1)

in paragraph (2), by striking quantity of sugarcane and inserting quantity of sugar produced from sugarcane;

(2)

in paragraph (5)(C), by inserting for sugar before in excess of the farm’s proportionate share;

(3)

in paragraph (7), by striking amount of sugarcane and inserting amount of sugar from sugarcane; and

(4)

by striking paragraph (8) and inserting the following new paragraph:

(8)

Seed definition

In this subsection, the term seed includes only varieties of seed dedicated to the production of sugarcane from which is produced sugar for human consumption, and excludes seed of high-fiber cane varieties dedicated to other uses, as determined by the Secretary.

.

(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 new subsection:

(a)

Transfer of acreage base history

(1)

Transfer authorized

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 non-agricultural 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 the Farm, Nutrition, and Bioenergy Act of 2007, or the subsequent conversion of sugarcane base acreage to a non-agricultural use, the Secretary, acting through the Farm Service Agency, shall notify the affected landowner (or landowners) of the transferability of the applicable sugarcane base acreage.

(C)

Initial transfer period

The owner of the base attributable to the acreage at the time of the conversion shall be afforded 90 days from the date of the receipt of the notification under subparagraph (B) to transfer the base to one or more farms owned by the owner.

(D)

Grower of record

If the transfer under subparagraph (C) cannot be accomplished within the time period prescribed in such subparagraph, then the grower of record with regard to the base acreage on the date on which the acreage was converted to non-agricultural use shall be so notified, and shall be afforded 90 days from the date of the receipt of such notification to transfer the base to one or more farms operated by the grower.

(E)

Pool distribution

If the transfers under subparagraphs (B) and (C) cannot be accomplished within the time periods prescribed therein, then the county committee for the applicable parish shall place the acreage base in a pool for possible assignment to other farms. After providing reasonable notice to farm owners, operators, and growers of record in the parish, the county committee shall accept requests from owners, operators, and growers of record in the parish. The county committee shall assign the base to other farms in the parish that are eligible and capable of accepting such base, based on a random drawing from among the requests received from owners, operators, and growers of record with eligible farms.

(F)

Statewide reallocation

Any base remaining unassigned after the processes in subparagraphs (A) through (E) shall be made available to the State committee for allocation among the remaining county committees in the State representing parishes with farms eligible for assignment of the base. The remaining base shall be reallocated to requesting county committees based on a random drawing. Any county committee receiving base under this subparagraph shall allocate the base to eligible farms using the process described in subparagraph (E).

(G)

Status of reassigned base

Once reassigned pursuant to this paragraph, the acreage base shall remain on the farm, and will be subject to the transfer provisions of paragraph (1).

;

(2)

by striking subsection (d) and inserting the following new subsection:

(d)

Transfers of mill allocations

(1)

Transfer authorized

A producer in a proportionate share State, upon written consent from all affected crop-share owners (or the representative of the crop-share owners) of a farm may deliver sugarcane to another processing company if the additional delivery, when combined with such other processing company’s existing deliveries, does not exceed the processing capacity of the company.

(2)

Allocation adjustment

Notwithstanding section 359d, the Secretary shall adjust the allocations of each of such processing companies affected by a transfer under paragraph (1) to reflect the change in deliveries, 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 grower’s contribution to the processing company’s allocation for the sugarcane base acres 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)

Administration of tariff rate quotas

The Agricultural Adjustment Act of 1938 is amended by striking section 359k (7 U.S.C. 1359kk) and inserting the following new section:

359k.

Administration of tariff rate quotas

(a)

Establishment

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 necessary to comply with obligations under international trade agreements that have been approved by the Congress. This subsection shall not apply to specialty sugar.

(b)

Adjustment

(1)

Before April 1

(A)

Initial adjustment required

Before April 1 of a fiscal year, in the event that there is an emergency shortage of sugar in the United States market that is caused by war, floods, hurricanes, or other natural disaster, or other similar event, the Secretary shall take action to increase supply as provided under 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.

(B)

Additional adjustment

If, after adjustment under subparagraph (A), there is still a shortage of sugar in the United States market, and marketings of domestic sugar have been maximized, the Secretary may increase the tariff-rate quota for refined sugars sufficient to accommodate the supply increase, if such 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

(A)

Initial adjustment authorized

On or after April 1 of a fiscal year, the Secretary may take action to increase supply as provided under 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.

(B)

Additional adjustment

If, after adjustment under subparagraph (A), there is still a shortage of sugar in the United States market, and marketings of domestic sugar have been maximized, the Secretary may increase the tariff-rate quota for raw cane sugar if such 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).

(c)

Orderly shipping patterns for major suppliers

(1)

In general

The Secretary of Agriculture shall establish orderly shipping patterns for major suppliers of sugar to the United States under the tariff rate quotas in accordance with this subsection.

(2)

Very large major suppliers

If a country holds quota allocations of at least 100,000 metric tons of sugar, the Secretary shall allow the country to export up to 25 percent of the country’s quota allocation to the United States in each calendar quarter. Sugar permitted to enter into the United States in a calendar quarter, but not actually entered in that quarter, may be entered into the United States at any time during the remainder of the fiscal year.

(3)

Large major suppliers

For countries holding quota allocations of more than 45,000 metric tons of sugar, but less than 100,000 metric tons of sugar, the Secretary shall require that the country may ship not more than 50 percent of the country’s quota sugar to the United States in the first six months of the year.

.

(j)

Effective date

The Agricultural Adjustment Act of 1938 is amended by inserting after section 359k (7 U.S.C. 1359kk) the following new section:

359l.

Effective period

This part shall be effective only for the 2008 through 2012 crop years for sugar.

.

(k)

Transition

The Secretary of Agriculture shall administer flexible marketing allotments for sugar for the 2007 crop year for sugar on the terms and conditions provided in part VII of title III of the Agricultural Adjustment Act of 1938, as in effect on the day before the date of the enactment of this Act.

D

Dairy-Related Provisions

1401.

Dairy product price support program

(a)

Support activities

During the period beginning on January 1, 2008, through December 31, 2012, the Secretary of Agriculture 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) during the period specified in such subsection, the Secretary shall purchase—

(1)

cheddar cheese in blocks at not less than $1.13 per pound;

(2)

cheddar cheese in barrels at not less than $1.10 per pound;

(3)

butter at not less than $1.05 per pound; and

(4)

nonfat dry milk at not less than $0.80 per pound.

(c)

Temporary price adjustment to avoid excess inventories

(1)

Adjustments authorized

The Secretary may adjust the minimum purchase prices established under subsection (b) only as permitted under this subsection.

(2)

Cheese inventories in excess of 200 million pounds

If net removals for a period of 12 consecutive months exceed 200 million pounds of cheese, but do not exceed 400 million pounds, the Secretary may reduce the purchase prices under paragraphs (1) and (2) of subsection (b) during the immediately following month by not more than 10 cents per pound.

(3)

Cheese inventories in excess of 400 million pounds

If net removals for a period of 12 consecutive months exceed 400 million pounds of cheese, the Secretary may reduce the purchase prices under paragraphs (1) and (2) of subsection (b) during the immediately following month by not more than 20 cents per pound.

(4)

Butter inventories in excess of 450 million pounds

If net removals for a period of 12 consecutive months exceed 450 million pounds of butter, but do not exceed 650 million pounds, the Secretary may reduce the purchase price under subsection (b)(3) during the immediately following month by not more than 10 cents per pound.

(5)

Butter inventories in excess of 650 million pounds

If net removals for a period of 12 consecutive months exceed 650 million pounds of butter, the Secretary may reduce the purchase price under subsection (b)(3) during the immediately following month by not more than 20 cents per pound.

(6)

Nonfat dry milk inventories in excess of 600 million pounds

If net removals for a period of 12 consecutive months exceed 600 million pounds of nonfat dry milk, but do not exceed 800 million pounds, the Secretary may reduce the purchase price under subsection (b)(4) during the immediately following month by not more than 5 cents per pound.

(7)

Nonfat dry milk inventories in excess of 800 million pounds

If net removals for a period of 12 consecutive months exceed 800 million pounds of nonfat dry milk, the Secretary may reduce the purchase price under subsection (b)(4) during the immediately following month by not more than 10 cents per pound.

(d)

Uniform purchase price

The prices that the Secretary pays for cheese, butter, or nonfat dry milk, respectively, under subsection (a) shall be uniform for all regions of the United States.

(e)

Sales from inventories

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, except that the sale price may not be less than 110 percent of the minimum purchase price specified in subsection (b) for that commodity.

(f)

Net removals defined

In this section, the term net removals means—

(1)

the sum of the quantity of a product described in subsection (a) purchased by the Commodity Credit Corporation under this section and the quantity of such product exported under section 153 of the Food Security Act of 1985 (15 U.S.C. 713a–14); less

(2)

the amount of such product sold for unrestricted use by the Commodity Credit Corporation.

(g)

Commodity credit corporation

The Secretary shall use the funds of the Commodity Credit Corporation to carry out this section.

1402.

Dairy forward pricing program

(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.

(b)

Minimum milk price requirements

Payments made by milk handlers to milk producers and cooperative associations of producers, and prices received by milk producers and cooperative associations, in accordance with the terms of a forward price contract authorized by subsection (a), shall be deemed to satisfy —

(1)

all uniform and minimum milk price requirements of paragraphs (B) and (F) of subsection (5) of section 8c of the Agricultural Adjustment Act (7 U.S.C. 627), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937; and

(2)

the total payment requirement of paragraph (C) of such subsection.

(c)

Milk covered by program

(1)

Covered milk

The program shall apply only with respect to the marketing of federally regulated milk that—

(A)

is not classified as Class I milk or otherwise intended for fluid use; and

(B)

is in the current of interstate or foreign commerce or directly burdens, obstructs, or affects interstate or foreign commerce in federally regulated milk.

(2)

Relation to class I milk

To assist milk handlers in complying with the limitation in paragraph (1)(A) without having to segregate or otherwise individually track the source and disposition of milk, a milk handler may allocate milk receipts from producers, cooperatives, and other sources that are not subject to a forward contract to satisfy the handler’s obligations with regard to Class I milk usage.

(d)

Voluntary program

A milk handler may not require participation in a forward pricing contract as a condition of the handler receiving milk from a producer or cooperative association of producers, and such producer or cooperative association may continue to have their milk priced under the order’s minimum payment provisions. The Secretary shall investigate complaints made by producers or cooperative associations of coercion by handlers to enter into forward contracts, and if the Secretary finds evidence of such coercion, the Secretary shall take appropriate action.

(e)

Duration

No forward price contract may be entered into under this program after September 30, 2012, and no forward contract entered into under the program may extend beyond September 30, 2015.

1403.

Dairy export incentive program

(a)

Extension

Subsection (a) of section 153 of the Food Security Act of 1985 (15 U.S.C. 713a–14) is amended by striking 2007 and inserting 2012.

(b)

Compliance with trade agreements

Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a–14) is amended—

(1)

in subsection (c), by striking paragraph (3) and inserting the following new paragraph:

(3)

the maximum volume of dairy product exports allowable consistent with the obligations of the United States under the Uruguay Round Agreements approved under section 101 of the Uruguay Round Agreements Act (19 U.S.C. 3511) is exported under the program each year (minus the volume sold under section 1163 of this Act (Public Law 99–198; 7 U.S.C. 1731 note) during that year), except to the extent that the export of such a volume under the program would, in the judgment of the Secretary, exceed the limitations on the value set forth in subsection (f); and

; and.

(2)

in subsection (f), by striking paragraph (1) and inserting the following new paragraph:

(1)

Funds and commodities

Except as provided in paragraph (2), the Commodity Credit Corporation shall in each year use money and commodities for the program under this section in the maximum amount consistent with the obligations of the United States under the Uruguay Round Agreements approved under section 101 of the Uruguay Round Agreements Act (19 U.S.C. 3511), minus the amount expended under section 1163 of this Act (Public Law 99–198; 7 U.S.C. 1731 note) during that year.

.

1404.

Revision of Federal marketing order amendment procedures

Subsection (17) of 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 to read as follows:

(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)

Advance notice of hearing

Notice of a hearing upon a proposed amendment to any order issued pursuant to this section shall be given not less than 3 days before the date fixed for the hearing, and such notice shall be deemed to be due notice of the hearing.

(C)

Prompt response to requests for amendment hearings

Not more than 30 days after receipt of a written request for an amendment hearing regarding a milk marketing order, the Secretary shall—

(i)

issue a denial of the request; or

(ii)

issue notice of the hearing, which shall begin no more than 60 days, and conclude no more than 90 days, after receipt of the request.

(D)

Submission and use of evidence

The proponents of any amendment proposed to be made to a milk marketing order shall file with the Secretary all testimony and other evidence in support of the amendment, in written form, at least 7 business days before the date fixed for the hearing. The Secretary shall make such written testimony and other evidence available to interested members of the public. Subject to any evidentiary objections and cross examination of submitting witness, the written testimony and evidence shall be entered into evidence without being read at the hearing.

(E)

Issuance of decision

The Secretary shall issue a recommended decision on a proposed amendment to a milk marketing order not later than 90 days after the date set by the Administrative Law Judge for the submission of post-hearing proposed findings and conclusions and written arguments or briefs. The final decision shall be issued not later than 60 days after the date on which the recommended decision was issued.

(F)

Avoiding duplication

The Secretary shall not be required to call a hearing on any amendment proposed to be made to a milk marketing order in response to an application for a hearing on such proposed amendment if the application requesting the hearing is received by the Secretary within 90 days after the date on which the Secretary has announced the decision on a previously proposed amendment to that order and the two proposed amendments are essentially the same.

.

1405.

Dairy indemnity program

Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by striking 2007 and inserting 2012.

1406.

Extension of milk income loss contract program

Section 1502(c)(3)(B) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7982(c)(3)(B)), as amended by section 9006(a) of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law 110–28, 121 Stat. 217), is amended by striking 2007 and inserting 2012.

1407.

Dairy promotion and research program

(a)

Extension of promotion authority

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.

(b)

Definition of united states for promotion program

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

(1)

by striking subsection (l) and inserting the following new subsection:

(l)

the term United States, when used in a geographical sense, means all of the States, the District of Columbia, and the Commonwealth of Puerto Rico;

; and

(2)

in subsection (m), by striking (as defined in subsection (l)).

(c)

Definition of united states for research program

Section 130 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531)) is amended by striking paragraph (12) and inserting the following new paragraph:

(12)

the term United States, when used in a geographical sense, means all of the States, the District of Columbia, and the Commonwealth of Puerto Rico.

.

1408.

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 of Agriculture shall submit to Congress a report regarding Department of Agriculture reporting procedures for nonfat dry milk and the impact of these 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.

1409.

Federal Milk Marketing Order Review Commission

(a)

Establishment

Subject to the availability of appropriations to carry out this section, the Secretary of Agriculture shall establish a commission to be known as the Federal Milk Marketing Order Review Commission, in this section referred to as the commission, which shall conduct a comprehensive review and evaluation of—

(1)

the current Federal milk marketing order system; and

(2)

non-Federal milk marketing order systems.

(b)

Elements of review and evaluation

As part of the review and evaluation under subsection (a), the commission shall consider legislative and regulatory options for—

(1)

ensuring that the competitiveness of dairy products with other competing products in the marketplace is preserved and enhanced;

(2)

enhancing the competitiveness of American dairy producers in world markets;

(3)

increasing the responsiveness of the Federal milk marketing order system to market forces;

(4)

streamlining and expediting the process by which amendments to Federal milk market orders are adopted;

(5)

simplifying the Federal milk marketing order system;

(6)

evaluating whether the Federal milk marketing order system, established during the Great Depression, continues to serve the interests of the public, dairy processors, and dairy farmers;

(7)

evaluating whether Federal milk marketing orders are operating in a manner to minimize costs to taxpayers and consumers; and

(8)

evaluating the nutritional composition of milk, including the potential benefits and costs of adjusting the milk content standards.

(c)

Membership

(1)

Composition

The commission shall consist of 16 members.

(2)

Members

As soon as practicable after the date on which funds are first made available to carry out this section, commission members shall be appointed as follows:

(A)

Two members appointed by the Chairman of the Committee on Agriculture of the House of Representatives, in consultation with the ranking member of the Committee on Agriculture of the House of Representatives.

(B)

Two members appointed by the Chairman of the Committee on Agriculture, Nutrition, and Forestry of the Senate, in consultation with the ranking member of the Committee on Agriculture, Nutrition and Forestry of the Senate.

(C)

Fourteen members appointed by the Secretary of Agriculture.

(3)

Special appointment requirements

In the case of the members to be appointed under paragraph (2)(E), the Secretary shall comply with the following requirements:

(A)

At least one member shall represent a national consumer organization.

(B)

At least four members shall represent land-grant universities or ASCARR institution with accredited dairy economic programs, with two of these members being experts in the field of economics.

(C)

At least one member shall represent the food and beverage retail sector.

(D)

Four dairy producer and four dairy processors, appointed so as to balance geographical distribution of milk production and dairy processing, reflect all segments of dairy processing, and represent all regions of the United States equitably, including States that operate outside of a Federal milk marketing order.

(4)

Chair

The commission shall elect one of its appointed members to serve as chairperson for the duration of the commission’s proceedings.

(5)

Vacancy

Any vacancy occurring before the termination of the commission shall be filled in the same manner as the original appointment.

(6)

Compensation

Members of the commission shall serve without compensation, but shall be reimbursed by the Secretary of Agriculture from existing budget authority for necessary and reasonable expenses incurred in the performance of the duties of the commission.

(d)

Report

Not later than two years after the date of the first meeting of the commission, the commission shall submit to the Secretary of Agriculture and Congress a report setting forth the results of the review and evaluation conducted under this section, including such recommendations regarding the legislative and regulatory options considered under subsection (b) as the commission considers to be appropriate. The report findings shall reflect, to the extent practicable, a consensus opinion of the commission members, but the report may include majority and minority findings regarding those matters for which consensus was not reached.

(e)

Advisory nature

The commission is wholly advisory in nature, and the recommendations of the commission are non-binding.

(f)

No effect on existing programs

The Secretary shall not allow the existence of the commission to impede, delay, or otherwise affect any decision making process of the Department of Agriculture, including any rulemaking procedures planned, proposed, or near completion.

(g)

Administrative assistance

The Secretary shall provide administrative support to the commission, and expend such funds as necessary from existing budget authority to carry out this responsibility.

(h)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

(i)

Termination

The commission shall terminate immediately after submission of the report under subsection (d).

E

Administration

1501.

Administration generally

(a)

Use of commodity credit corporation

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

(b)

Determinations by Secretary

A determination made by the Secretary under this title shall be final and conclusive.

(c)

Regulations

(1)

In general

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.

(2)

Procedure

The promulgation of the regulations and administration of 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 E 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)), as in effect on the date of enactment of this Act, 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.

1502.

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, peanuts, 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, peanuts, 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.

1503.

Payment Limitations

(a)

Extension and revision of limitations

(1)

Extension

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 (other than in subsection (d)(1) of section 1001 of such Act) and inserting Farm, Nutrition, and Bioenergy Act of 2007.

(2)

Combination of limits

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsections (b) and (c) and inserting the following new subsections:

(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 any legal entity (except a joint venture or a general partnership) in any crop year under subtitle A of title I of the Farm, Nutrition, and Bioenergy Act of 2007 for 1 or more covered commodities (except for peanuts) may not exceed $60,000.

(2)

Counter-cyclical payments

The total amount of counter-cyclical payments received, directly or indirectly, by a person or any legal entity (except a joint venture or a general partnership in any crop year under subtitle A of title I of the Farm, Nutrition, and Bioenergy Act of 2007 for one or more covered commodities (except for peanuts) may not exceed $65,000.

(c)

Limitation on direct and counter-cyclical payments for peanuts

(1)

Direct payments

The total amount of direct payments received, directly or indirectly, by a person or any legal entity (except a joint venture or a general partnership) in any crop year under subtitle A of title I of the Farm, Nutrition, and Bioenergy Act of 2007 for peanuts may not exceed $60,000.

(2)

Counter-cyclical payments

The total amount of counter-cyclical payments received, directly or indirectly, by a person or any legal entity (except a joint venture or a general partnership in any crop year under subtitle A of title I of the Farm, Nutrition, and Bioenergy Act of 2007 for peanuts may not exceed $65,000.

.

(b)

Direct attribution

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(1)

in subsection (a)—

(A)

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

(B)

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

(2)

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.

(3)

Person

The term person means a natural person, and does not include a legal entity.

;

(2)

by striking subsections (d) through (e) and inserting the following new subsections:

(d)

Attribution of payments

(1)

In general

In implementing subsections (b) and (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 such payments.

(2)

Payments to a person

Every payment made directly to a person shall be combined with the person’s pro rata interest in payments received by a legal entity in which the person has a direct or indirect ownership interest.

(3)

Payments to a legal entity

(A)

In general

Every payment made to a legal entity shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity.

(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

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.

(4)

Four levels of attribution for embedded entities

(A)

In general

Attribution of payments made to legal entities shall be traced through four levels of ownership in entities.

(B)

First level

Any payments made to a legal entity (a first-tier 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 entity by the person.

(C)

Second level

Any payments made to a first-tier entity that is owned in whole or in part by another legal entity (a second-tier entity) shall be attributed to the second-tier entity in proportion to the second-tier entity’s ownership in the first-tier entity. If the second-tier entity is owned in whole or in part by a person, the amount of the payment made to the first-tier entity shall be attributed to the person in the amount that represents the indirect ownership in the first-tier entity by the person.

(D)

Third and fourth levels

The Secretary shall attribute payments at the third and fourth tiers of ownership in the same manner as specified in subparagraph (C) unless the fourth-tier of ownership is that of a fourth-tier entity and not that of a person, in which case the Secretary shall reduce the amount of the payment to be made to the first-tier entity in the amount that represents the indirect ownership in the first-tier entity by the fourth-tier entity.

(e)

Special rules

(1)

Minor children

Payments received by a child under the age of 18 shall be attributed to the child’s parents, except that the Secretary shall issue regulations which provide the conditions under which payments received by a child under the age of 18 will not be attributed to the child’s parents.

(2)

Marketing cooperatives

Subsections (b) and (c) shall not apply to a cooperative association of producers with respect to commodities produced by its members which are marketed by such association on behalf of its members but shall apply to such producers as persons.

(3)

Trusts and estates

(A)

In general

With respect to irrevocable trusts and estates, the Secretary shall administer the provisions of this subtitle in such manner as the Secretary determines will ensure that fair and equitable treatment of the beneficiaries of such trusts and estates.

(B)

Irrevocable trust

In order for a trust to be considered an irrevocable trust, the terms of the trust agreement must not allow for modification or termination of the trust by the grantor, allow for the grantor to have any future, contingent, or remainder interest in the corpus of the trust, or provide for the transfer of the corpus of the trust to the remainder beneficiary in less than 20 years from the date the trust is established except in cases where the transfer is contingent on the remainder beneficiary achieving at least the age of majority or is contingent on the death of the grantor or income beneficiary.

(C)

Revocable trust

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 is eligible to receive a payment described in subsection (b) only if the tenant makes a significant contribution of equipment used in the farming operation.

(5)

Federal agencies

(A)

In general

Federal agencies shall not be eligible to receive any payment described in subsection (b) or (c).

(B)

Rents land

A person or legal entity that rents land owned by a Federal agency may receive such payments.

(6)

State and local governments

(A)

Governments ineligible

(i)

In general

Except as provided in subparagraphs (B) and (C), State and local governments and political subdivisions and agencies of such governments, shall not be eligible to receive payments described in subsections (b) and (c).

(ii)

Tenants

A person or legal entity that rents land owned by a State or local government or a political subdivision or agency of such government, may receive payments described in subsections (b) and (c) if they otherwise meet all applicable criteria.

(B)

Exception

(i)

In general

Within the limitation described in clause (ii), a State and the political subdivisions and agencies of such governments, may receive payments described in subsections (b) and (c), if the State or a political subdivision or agency of such government—

(I)

is the producer of all crops produced on a farm; and

(II)

the proceeds from the crop production are used to maintain a public school.

(ii)

Limitation

For each State, the total amount of payments described in subsections (b) and (c) that are received collectively by the State and all political subdivisions or agencies of such governments shall not exceed the amounts that one legal entity may receive in one year as specified in subsections (b) and (c).

(C)

Share leases

A State and the political subdivisions and agencies of such governments may, without regard to the provisions of subparagraph (B), receive payments described in subsections (b) and (c) if—

(i)

the payments are received with respect to land that is share leased to a private party;

(ii)

the lease was in effect on the date of enactment of the Farm, Nutrition, and Bioenergy Act of 2007; and

(iii)

the land is used to maintain a public school.

(7)

Changes in farming operations

In the administration of this subtitle, 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. 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)

Denial of program benefits

(A)

Two year denial of payment

A person or legal entity shall be ineligible to receive payments specified in subsections (b) and (c) for that year, and the succeeding crop year, in which the Secretary determines that the person or entity engaged in an activity in which the primary purpose of the activity was to avoid the application of the provisions of this subtitle to the person, legal entity or any other person or legal entity.

(B)

Extended ineligibility

If the Secretary determines that a person or legal entity, for their benefit or the benefit of any other person or legal entity, has knowingly engaged in, or aided in the creation of fraudulent documents, failed to disclose material information relevant to the administration of this subtitle requested by the Secretary, or committed other equally serious actions as identified in regulations issued by the Secretary, the Secretary may for a period not to exceed five crop years deny the issuance of payments to the person or legal entity.

(C)

Pro rata denial

Payments otherwise owed to a person or legal entity covered by subparagraphs (A) or (B) shall be denied in a pro rata manner based upon the ownership interest of the person or legal entity in a farm, and payments otherwise payable to the person or legal entity who is a cash rent tenant on a farm owned or under the control of such person or legal entity shall be denied.

(9)

Death of owner

In the event of a transfer of any ownership interest in land or a commodity as the result of the death of a program participant, the new owner of such land or commodity may, if such person is otherwise eligible to participate in the applicable program, succeed to the prior owner’s contract and receive payments subject to this section without regard to the amount of payments received by the new owner. Payments made pursuant to this subsection 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 three-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 personsand inserting notification of interests; and

(2)

by striking subsection (a) and inserting the following new subsection:

(a)

Notification of interests

To facilitate administration of sections 1001 and this section, each entity or person receiving payments described in subsections (b) and (c) of section 1001 as a separate person shall provide to the Secretary of Agriculture, at such times and in such manner as prescribed by the Secretary, the name and social security number of each individual, or the name and taxpayer identification number of each entity, that holds or acquires an ownership interest in such separate person and shall provide such information regarding each entity in which such separate person 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 new subsections:

(b)

Actively engaged

(1)

In general

To be eligible to receive a payment described in subsection (b) and (c) of section 1001, a person or legal entity must be actively engaged in farming 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 farm 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 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 entity as determined by the Secretary shall be considered as actively engaged in farming with respect to a farming operation if—

(i)

the 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 paragraph (A), as applied to the entity, are met by the 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 paragraph (A), as applied to the entity, are met by the 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 the landowner receives rent or income for such use of the land based on the land’s production or the operation’s operating results, and the person or legal entity meets the standard provided in clauses (ii) and (iii) of subsection (b)(2)(A).

(2)

Adult family member

With respect to a farming operation when a majority of the participants 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)

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 such 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 person or legal entity receiving custom farming services will be considered separately eligible for payment limitation purposes if such person or legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (5) of this subsection. No other rules with respect to custom farming shall apply in making a determination under this section.

(6)

Spouse

Where one spouse is determined to be actively engaged, the other spouse shall be determined to have met the requirements of subclause (II) of subsection (b)(2)(A)(i) of this section.

(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 such use of the land.

(2)

Other persons

Any other person determined by the Secretary as failing to meet the standards set out in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation.

.

(e)

Transition

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to the 2007 crop of any covered commodity.

1504.

Adjusted gross income limitation

(a)

Extension of adjusted gross income limitation

Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended—

(1)

in subsection (b)(2), by striking Farm Security and Rural Investment Act of 2002 each place it appears and inserting Farm, Nutrition, and Bioenergy Act of 2007; and

(2)

in subsection (e), by striking 2007 and inserting 2012.

(b)

Modification of limitation

Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—

(1)

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

(1)

Caps

(A)

Upper limit

Notwithstanding any other provision of law, an individual or entity shall not be eligible to receive any benefit described in paragraph (2) during a crop year if the average adjusted gross income of the individual or entity exceeds $1,000,000.

(B)

Producer exemption

Notwithstanding any other provision of law, an individual or entity shall not be eligible to receive any benefit described in paragraph (2) during a crop year if the average adjusted gross income of the individual or entity exceeds $500,000, 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.

;

(2)

in paragraph (2)(A), by striking or C; and

(3)

by adding at the end the following new paragraph:

(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 the following:

(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 rights.

(C)

The sale, but not as a dealer, of equipment purchased to conduct farm, ranch, or forestry operations when the equipment is otherwise subject to depreciation expense.

(D)

The rental of land used for farming, ranching, or forestry operations.

(E)

The provision of production inputs and services to farmers, ranchers, and foresters.

(F)

The processing, storing, and transporting of farm, ranch, and forestry commodities.

(G)

The sale of land that has been used for agriculture.

.

1505.

Adjustments of loans

Section 162 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7282) is amended—

(1)

in subsection (a), by inserting (except for cotton and long grain, medium grain, and short grain rice) after commodity;

(2)

in subsection (b), by striking Farm Security and Rural Investment Act of 2002 and inserting Farm, Nutrition, and Bioenergy Act of 2007; and

(3)

by adding at the end the following new subsections:

(d)

Adjustment in loan rate for cotton

(1)

Adjustment authority

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)

Revision

Within 180 days after the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Secretary, after consultation with the private sector as provided in paragraph (3), 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

The revisions required under subparagraph (A) shall include the following:

(i)

The elimination or adjustment of warehouse location differentials to reflect market conditions.

(ii)

The establishment of differentials for the various quality factors and staple lengths of cotton based on a three-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;

(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 one better than the applicable color grade.

(C)

Discretionary revisions

The revisions under subparagraph (A) may include, at a minimum, the following:

(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 such premiums or discounts.

(iii)

Such other adjustments determined appropriate by the Secretary, 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 should endeavor to consult with an existing private sector committee whose membership includes representatives of the production, ginning, warehousing, cooperative, and merchandising segments of the United States cotton industry and that has developed recommendations concerning such revisions.

(B)

Upon review

The Secretary shall also consult with the committee referred to in subparagraph (A) when conducting a review of adjustments in the operation of the loan program as provided in 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 paragraph with the committee referred to in subparagraph (A).

(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, by either revoking or revising the actions taken pursuant to paragraph (2)(B) or by revoking or revising any actions taken or authorized to be taken under paragraph (2)(B).

(5)

Adjustments in effect prior to revision

The quality differences (premiums and discounts for quality factors) applicable to the upland cotton loan program (prior to any revisions in accordance with this subsection) shall be established by the Secretary by giving equal weight—

(A)

to loan differences for the preceding crop; and

(B)

to market differences for such crop in the designated United States spot markets.

(e)

Rice limitation

With respect to long grain rice and medium and short grain rice, the Secretary shall not make adjustments in the loan rates for such commodities, except for differences in grade and quality (including milling yields).

.

1506.

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 Farm Security and Rural Investment Act of 2002 each place it appears and inserting Farm, Nutrition, and Bioenergy Act of 2007.

1507.

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 subtitle B and C of title I of the Farm Security and Rural Investment Act of 2002 each place it appears and inserting subtitle B of title I of the Farm, Nutrition, and Bioenergy Act of 2007.

1508.

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 this title.

(b)

Notice

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

1509.

Tracking of benefits

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

1510.

Upland cotton storage payments

Beginning with the 2012 crop of upland cotton, the Secretary may not use the funds of the Commodity Credit Corporation to pay storage, handling, and other costs associated with the storage of upland cotton for which a marketing assistance loan is made under section 1201.

1511.

Government publication of cotton price forecasts

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

II

Conservation

Subtitle A—Conservation Programs of the Food Security Act of 1985

Sec. 2101. Conservation reserve program.

Sec. 2102. Wetlands reserve program.

Sec. 2103. Conservation security program.

Sec. 2104. Grassland reserve program.

Sec. 2105. Environmental quality incentives program.

Sec. 2106. Regional water enhancement program.

Sec. 2107. Grassroots source water protection program.

Sec. 2108. Conservation of private grazing land.

Sec. 2109. Great Lakes basin program for soil erosion and sediment control.

Sec. 2110. Farm and ranchland protection program.

Sec. 2111. Farm viability program.

Sec. 2112. Wildlife habitat incentive program.

Subtitle B—Conservation Programs Under Other Laws

Sec. 2201. Agricultural management assistance program.

Sec. 2202. Resource Conservation and Development Program.

Sec. 2203. Small watershed rehabilitation program.

Subtitle C—Additional Conservation Programs

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment control.

Sec. 2302. Voluntary public access and habitat incentive program.

Subtitle D—Administration and Funding

Sec. 2401. Funding of conservation programs under Food Security Act of 1985.

Sec. 2402. Improved provision of technical assistance under conservation programs.

Sec. 2403. Cooperative conservation partnership initiative.

Sec. 2404. Regional equity and flexibility.

Sec. 2405. Administrative requirements for conservation programs.

Sec. 2406. Annual report on participation by specialty crop producers in conservation programs.

Sec. 2407. Promotion of market-based approaches to conservation.

Sec. 2408. Establishment of State technical committees and their responsibilities.

Sec. 2409. Payment limitations.

Subtitle E—Miscellaneous Provisions

Sec. 2501. Inclusion of income from affiliated packing and handling operations as income derived from farming for application of adjusted gross income limitation on eligibility for conservation programs.

Sec. 2502. Encouragement of voluntary sustainability practices guidelines.

Sec. 2503. Farmland resource information.

A

Conservation Programs of the Food Security Act of 1985

2101.

Conservation reserve program

(a)

Authorization and eligible land

Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended—

(1)

in subsection (a)—

(A)

by striking 2007 and inserting 2012; and

(B)

by inserting before the period the following: and to address issues raised by State, regional, and national conservation initiatives; and

(2)

in subsection (b)—

(A)

in paragraph (1)(B)—

(i)

by striking the Farm Security and Rural Investment Act of 2002 and inserting the Farm, Nutrition, and Bioenergy Act of 2007; and

(ii)

by striking the period at the end and inserting a semicolon; and

(B)

in paragraph (4), by striking the semicolon at the end of subparagraph (E) and inserting ; or.

(b)

Maximum enrollment

Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended by striking 2007 and inserting 2012.

(c)

Conservation priority areas

Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is amended by striking the Chesapeake Bay Region (Pennsylvania, Maryland, and Virginia) and inserting the Chesapeake Bay Region.

(d)

Treatment of multi-year grasses and legumes

Subsection (g) of section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended to read as follows:

(g)

Multi-year grasses and legumes

(1)

In general

For purposes of this subchapter, alfalfa and other multi-year grasses and legumes in a rotation practice, approved by the Secretary, shall be considered agricultural commodities.

(2)

Cropping history

Alfalfa, when grown as part of a rotation practice, as determined by the Secretary, is an agricultural commodity subject to the cropping history criteria under subsection (b)(1)(B) for the purpose of determining whether highly erodible cropland has been planted or considered planted for 4 of the 6 years referred to in such subsection.

.

(e)

Pilot program for enrollment of wetland and buffer acreage in conservation reserve

Section 1231(h)(1)(A) of the Food Security Act of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking 2007 and inserting 2012.

(f)

Managed haying and grazing

Section 1232(a)(7) of the Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended—

(1)

in subparagraph (A)—

(A)

by inserting and prescribed grazing for the control of invasive species after biomass; and

(B)

by striking and at the end of the subparagraph;

(2)

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

(3)

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

(B)

managed grazing during the year, except that in permitting such grazing, the Secretary shall—

(i)

reduce the rental payment otherwise payable under the contract by a percentage determined by the Secretary to be appropriate; and

(ii)

require a management plan, including a grazing rate, approved by the Secretary that is consistent with section 1231(a);

(C)

dryland crop production and grazing practices on acreage enrolled into the conservation reserve enhancement program announced on May 27, 1998 (63 Fed. Reg. 28965) where the conservation reserve enhancement program is initiated to address declining groundwater or surface water resources and water quality issues associated with declining groundwater or surface water resources and the conservation reserve enhancement contract requires the owner or operator to retire a water right, except that in permitting dryland crop production and grazing, the Secretary shall—

(i)

develop an appropriate working lands conservation plan that implements conservation practices suitable to the region to address soil conservation, water quality, wildlife habitat, or other environmental benefits;

(ii)

apply the provisions of section 11005 of the Farm, Nutrition, and Bioenergy Act of 2007 in determining the eligibility for crop insurance of dryland crop production and grazing activities allowed under a conservation reserve enhancement contract for the purposes of this section, dryland crop production and grazing activities allowed under a conservation reserve enhancement contract shall be considered noncropland in applying the provisions of section 11005 of the Farm, Nutrition, and Bioenergy Act of 2007;

(iii)

reduce the rental payment otherwise payable under the contract by an amount commensurate with the economic value of the crop production or grazing activity, while still leaving sufficient financial incentives for the owner or operator to participate in the conservation reserve enhancement; and

(iv)

at the request of a State that has previously entered into a conservation reserve enhancement program agreement, renegotiate the agreement to allow for the dryland crop production and grazing in accordance with this section; and

.

(g)

Rental rates

Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by adding at the end the following new paragraph:

(5)

County average market dry-land and irrigated cash rental rates

(A)

Annual estimates

Beginning not later than one year after the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the National Agricultural Statistics Service shall conduct an annual survey of per acre estimates of county average market dry-land and irrigated cash rental rates for cropland and pastureland in all counties or equivalent subdivisions within each State with 20,000 acres or more of cropland and pastureland.

(B)

Public availability of estimates

The estimates derived as a result of the annual survey conducted under subparagraph (A) shall be maintained on a website of the Department of Agriculture for use by the general public.

(C)

Funding

Funds to conduct the annual survey required by subparagraph (A) shall come from funds made available for the conservation reserve program under this subchapter.

.

(h)

Conservation Reserve Program transition incentives

Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended—

(1)

in subsection (c)(1)(B)—

(A)

in clause (ii), by striking or at the end;

(B)

by redesignating clause (iii) as clause (iv); and

(C)

by inserting after clause (ii) the following new clause:

(iii)

to facilitate a transition of land subject to the contract from a retired or retiring owner or operator to a beginning farmer or rancher, socially disadvantaged farmer or rancher, or limited resource farmer or rancher for the purpose of returning some or all of the land into production using sustainable grazing or crop production methods; or

; and

(2)

by adding at the end the following new subsection:

(f)

Transition option for certain farmers or ranchers

(1)

Duties of the secretary

In the case of a contract modification approved in order to facilitate the transfer of land subject to a contract from a retired or retiring owner or operator under subsection (c)(1)(B)(iii) to a beginning farmer or rancher, socially disadvantaged farmer or rancher, or limited resource farmer or rancher (in this subsection referred to as a covered farmer or rancher) the Secretary shall—

(A)

beginning on the date that is 1 year before the date of termination of the contract—

(i)

allow the covered farmer or rancher, in conjunction with the retired or retiring owner or operator, to make conservation and land improvements; and

(ii)

allow the covered farmer or rancher, at the election of the covered farmer or rancher, to begin the certification process under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.);

(B)

beginning on the date of termination of the contract, require the retired or retiring owner or operator to sell or lease (under a long-term lease or a lease with an option to purchase) to the covered farmer or rancher the land subject to the contract for production purposes;

(C)

require the covered farmer or rancher to develop and implement a comprehensive conservation plan that meets such sustainability criteria as the Secretary may establish;

(D)

provide to the covered farmer or rancher an opportunity to enroll in the conservation security program or the environmental quality incentives program by not later than the date on which the farmer or rancher takes possession of the land through ownership or lease; and

(E)

continue to make annual payments to the retired or retiring owner or operator for not more than an additional 2 years after the date of termination of the contract, if the retired or retiring owner or operator is not a family member (as defined in section 1001A(b)(3)(B) of this Act) of the covered farmer or rancher.

(2)

Reenrollment

The Secretary shall provide to a beginning farmer or rancher, socially disadvantaged farmer or rancher, or limited resource farmer or rancher described in paragraph (1) the option to reenroll any applicable partial field conservation practice that is—

(A)

eligible for enrollment under the continuous signup requirement of section 1231(h)(4)(B); and

(B)

part of an approved comprehensive conservation plan.

.

(i)

Early termination

Section 1235(e)(1) of the Food Security Act of 1985 (16 U.S.C. 3835(e)(1)) is amended by striking before January 1, 1995,.

2102.

Wetlands reserve program

(a)

Establishment and purpose

Subsection (a) of section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:

(a)

Establishment and purposes

(1)

Establishment

The Secretary shall establish a wetlands reserve program to assist owners of eligible lands in restoring and protecting wetlands.

(2)

Purposes

The purposes of the wetlands reserve program are—

(A)

to restore, to create, to protect, or to enhance wetlands on lands that are eligible under subsections (c) and (d); and

(B)

to authorize the Secretary, at the sole discretion of the Secretary, to purchase flood-plain easements.

.

(b)

Maximum enrollment

Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 3837(b)) is amended—

(1)

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

(1)

Maximum enrollment

The total number of acres enrolled in the wetlands reserve program shall not exceed 3,605,000 acres.

; and

(2)

by adding at the end the following new paragraphs:

(3)

Annual enrollment goal

Of the total number of acres authorized by paragraph (1), to the maximum extent practicable, the Secretary shall enroll 250,000 acres in each fiscal year.

(4)

Flood-plain easements

Of the acres to be enrolled each fiscal year, not more than 10,000 acres may be enrolled using flood-plain easements.

.

(c)

Eligible lands

Subsection (c) of section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:

(c)

Eligibility

For purposes of enrolling land into the wetland reserve program established under this subchapter during the 2008 through 2012 fiscal years, land shall be eligible to be placed into such reserve if the Secretary determines that—

(1)

in the case of wetlands—

(A)

the land maximizes wetland values and functions and wildlife benefits;

(B)

the land is farmed wetland or converted wetland, together with adjacent lands that are functionally dependent on such wetlands, except that converted wetlands where the conversion was not commenced prior to December 23, 1985, shall not be eligible to be enrolled in the program under this section;

(C)

the likelihood of the successful restoration of such land, and the resultant wetland values, merit inclusion of the land into the program taking into consideration the cost of such restoration; and

(D)

the land consists of riparian areas, including areas that link wetlands that are protected by easements or some other device or circumstance that achieves the same purpose as an easement; or

(2)

in the case of flood-plain lands—

(A)

the flood-plain land has been damaged by flooding at least once within the previous calendar year, or has been subject to flood damage at least twice within the previous 10 years; or

(B)

the enrollment of other land within the flood plain would contribute to the restoration of the flood storage and flow or erosion control.

.

(d)

Ineligible lands

Subsection (e) of section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:

(e)

Ineligible land

The Secretary may not acquire easements on—

(1)

in the case of wetlands—

(A)

land that contains timber stands established under the conservation reserve under subchapter B; or

(B)

pasture land established to trees under the conservation reserve under subchapter B; or

(2)

in the case of flood-plain lands—

(A)

land on which implementation of restoration practices would not be productive; or

(B)

land that is subject to an existing easement or deed restriction, and the easement or deed provides sufficient protection or restoration of the flood plain’s functions and values, as determined by the Secretary.

.

(e)

Easements and agreements

Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is amended—

(1)

in subsection (a)(2), by inserting if applicable, after (2);

(2)

in subsection (b)—

(A)

in the matter before paragraph (1), by inserting or flood-plain land after values of wetland;

(B)

in paragraph (1)(B), by inserting or flood-plain land after wetland; and

(C)

in paragraph (3), by inserting or flood-plain lands after wetlands;

(3)

in subsection (f)—

(A)

by striking Compensation for in the first sentence and inserting the following:

(1)

Compensation provided; amount

Compensation for

; and

(B)

by adding at the end the following new paragraph:

(2)

Method for determination of fair market value

The Secretary shall determine the fair market value of land under paragraph (1) based on the option specified in subparagraph (A), (B), (C), or (D) that results in the lowest amount of compensation to be paid by the Secretary:

(A)

A percentage of the fair market value based on the Uniform Standards for Professional Appraisals Procedures, as determined by the Secretary.

(B)

A percentage of the market value determined by an area wide market survey.

(C)

A geographic cap, prescribed in regulations issued by the Secretary.

(D)

The offer made by the owner of the land.

; and

(4)

by adding at the end the following new subsection:

(h)

Acceptance of contributions

The Secretary may accept and use contributions of non-Federal funds to administer the program under this subchapter.

.

(f)

Duties of the Secretary

Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is amended—

(1)

in subsection (a)(1)—

(A)

by inserting including necessary maitenance activities, after values,; and

(B)

by inserting or flood plains land after wetland; and

(2)

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

(c)

Ranking of offers

(1)

In general

When evaluating offers from landowners, the Secretary may consider—

(A)

the conservation benefits of obtaining an easement or other interest in the land;

(B)

the cost-effectiveness of each easement or other interest in eligible land, so as to maximize the environmental benefits per dollar expended; and

(C)

whether the landowner or another person is offering to contribute financially to the cost of the easement or other interest in the land to leverage Federal funds.

(2)

Conservation benefits

In determining the acceptability of easement offers, the Secretary may take into consideration—

(A)

in the case of wetlands—

(i)

the extent to which the purposes of the easement program would be achieved on the land;

(ii)

the productivity of the land; and

(iii)

the on-farm and off-farm environmental threats if the land is used for the production of agricultural commodities; and

(B)

in the case of flood-plain lands—

(i)

the extent to which the purposes of the easement program would be achieved on the land;

(ii)

whether the land has been repeatedly flooded over the last ten years;

(iii)

the extent to which an easement on the flood-plain land would contribute to the restoration or management of land in the area surrounding the flood-plain land; and

(iv)

other factors, as determined by the Secretary.

.

(g)

Wetlands reserve enhancement

Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 3837d(c)) is amended by striking paragraph (4) and inserting the following new paragraph:

(4)

Wetlands reserve enhancement

(A)

In general

The provisions of this subchapter that limit payments to any person, and section 1305(d) of the Agricultural Reconciliation Act of 1987 (Public Law 100–203; 7 U.S.C. 1308 note), shall not apply to payments received by a State, political subdivision, or agency thereof in connection with agreements entered into under a special wetlands reserve enhancement program carried out by that entity that has been approved by the Secretary.

(B)

Agreements

The Secretary may enter into agreements with States (including political subdivisions and agencies of States) regarding payments described in subparagraph (A) that the Secretary determines will advance the purposes of this subchapter.

.

(h)

Authorization

The Food Security Act of 1985 is amended by inserting after section 1237F (16 U.S.C. 3837f) the following new section:

1237G.

Period of authorization

This subchapter is authorized to be carried out for the 2008 through 2012 fiscal years.

.

2103.

Conservation security program

(a)

Establishment of new conservation security program through 2017

Subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended to read as follows:

A

Conservation Security Program

1238.

Definitions

In this subchapter:

(1)

Beginning farmer or rancher

The term beginning farmer or rancher has the meaning given the term under section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).

(2)

Conservation plan

The term conservation plan means a plan that—

(A)

identifies resources of concern, inventories resources, and establishes benchmark data and stewardship enhancement objectives;

(B)

describes improvements that will enable the producer to meet and exceed the stewardship threshold for all applicable resources of concern; and

(C)

contains a schedule and evaluation plan for the planning, installing, maintaining, and managing new conservation practices, activities, and management measures and maintaining, managing, and improving existing conservation practices, activities, and management measures.

(3)

Conservation practice

The term conservation practice means a site-specific land management practice or activity, or a supporting structural practice, that is part of an implemented management system designed to address a priority resource of concern.

(4)

Conservation security contract

The term conservation security contract means a contract entered into under this subchapter.

(5)

Conservation security program

The term conservation security program means the program established under section 1238A(a).

(6)

Management intensity

The term management intensity means the degree, scope, and comprehensiveness of conservation practices, activities, or management measures taken by a producer to address a priority resource of concern to a level exceeding the stewardship threshold.

(7)

Nondegradation standard

The term nondegradation standard means the level of natural resource conservation and environmental management measures required to improve and sustain the status and condition of natural and environmental resources to a level that, as determined by the Secretary—

(A)

prevents impairment of soil, water, and air quality and the quality of fish and wildlife habitat; and

(B)

sustains the long-term productivity of agricultural resources.

(8)

Priority resource of concern

The term priority resource of concern means a resource of concern identified by the Secretary, consistent with the requirements of section 1238C(a), that must be addressed by participants in the conservation security program in a particular watershed or other area within that State.

(9)

Producer

The term producer means an owner, operator, landlord, tenant, or sharecropper that–—

(A)

shares in the risk of producing any crop or livestock; and

(B)

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).

(10)

Resource-specific index

The term resource-specific index means an index of management intensity or other similar index, developed by the Secretary, that estimates the expected level of resource and environmental outcomes of the conservation practices, activities, and management measures employed by a producer.

(11)

Socially disadvantaged farmer or rancher

The term socially disadvantaged farmer or rancher has the meaning given the term under section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)).

(12)

Structural practice

The term structural practice means a site-specific, constructed conservation practice that is integrated with and essential to the successful implementation of the system of land management practices and activities that are the basis of a conservation security contract.

1238A.

Conservation security program

(a)

Establishment and purpose

The Secretary shall establish, and for each of fiscal years 2012 through 2017, carry out a conservation security program to assist producers in improving environmental quality by addressing priority resources of concern in a comprehensive manner.

(b)

Eligible producers

To be eligible to participate in the conservation security program, a producer shall—

(1)

demonstrate that the producer is addressing at least one priority resource of concern to a minimum level of management intensity determined by the Secretary; and

(2)

develop and submit to the Secretary, and obtain the approval of the Secretary of, a conservation offer.

(c)

Eligible land

(1)

In general

Except as provided in paragraph (2), private agricultural land (including cropland, grassland, prairie land, improved pasture land, forest land and rangeland) and land under the jurisdiction of an Indian tribe (as defined by the Secretary) shall be eligible for enrollment in the conservation security program.

(2)

Exclusions

(A)

Land enrolled in other conservation programs

Except as provided in subsection (f)(3)(A), the following lands are not eligible for enrollment in the conservation security program:

(i)

Lands 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.

(iii)

Land enrolled in the grassland reserve program established under subchapter C of chapter 2.

(B)

Conversion to cropland

Land used for crop production after October 1, 2011, 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 conservation security program.

(d)

Economic uses

With respect to eligible land covered by a conservation security contract, the Secretary shall permit economic uses of the land that—

(1)

maintain the agricultural nature of the land; and

(2)

are consistent with the conservation purposes of the conservation security program.

(e)

Conservation security contracts

(1)

In general

After a determination that a producer is eligible for the conservation security program, and on approval of the conservation offer of the producer, the Secretary shall enter into a conservation security contract with the producer to enroll the land to be covered by the contract in the conservation security program.

(2)

Term

A conservation security contract shall be for a term of 5 years.

(3)

Agricultural operation

All the acres of the agricultural operation that are under the producer’s effective control at the time the producer enters into a conservation security contract shall be covered by the conservation security contract.

(4)

Provisions

The conservation security contract of a producer shall—

(A)

include a conservation plan approved by the Secretary;

(B)

describe the land covered by the conservation security contract;

(C)

state the amount of the stewardship enhancement payment the Secretary agrees to make to the producer each year of the conservation security contract under section 1238C(c);

(D)

describe the new conservation practices and activities the producer is required to implement during the term of the conservation security contract in order to increase the level of management intensity with which the producer addresses a priority resource of concern or priority resources of concern, as designated by the Secretary under section 1238C(a)(1); and

(E)

include such other provisions as the Secretary determines necessary to ensure the conservation purposes of the conservation security program are met.

(5)

On-farm research and demonstration or pilot testing

The Secretary may approve a conservation security contract that includes—

(A)

on-farm conservation research and demonstration activities; and

(B)

pilot testing of new technologies or innovative conservation practices.

(f)

Modification

The Secretary may allow a producer to modify a conservation security 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 conservation security program.

(g)

Contract Termination

(1)

Voluntary termination

A producer may terminate a conservation security contract if the Secretary determines that termination of the contract would not defeat the purposes of the conservation plan of the producer.

(2)

Involuntary termination

The Secretary may terminate a contract under this subchapter if the Secretary determines that the producer violated the contract.

(3)

Transfer or change of interest in land subject to conservation security contract

(A)

In general

Except as provided in subparagraph (B), the transfer, or change in the interest, of a producer in land subject to a conservation security contract shall result in the termination of the conservation security contract.

(B)

Transfer of duties and rights

Subparagraph (A) shall not apply if, within a reasonable period of time 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 conservation security contract have been transferred to, and assumed by, the transferee. The Secretary shall specify what will be considered a reasonable period of time for purposes of providing the notification required by this subparagraph.

(h)

Contract Renewal

At the end of an initial conservation security contract of a producer, the Secretary may allow the producer to renew the contract for one additional five-year period if the producer—

(1)

demonstrates compliance with the terms of the existing contract, including a demonstration that the producer has complied with the schedule for the implementation of new practices and activities included in the conservation security contract and has met the stated goals for increasing the level of management intensity with which the producer is addressing the designated priority resource of concern or priority resources of concern; and

(2)

agrees to implement and maintain such additional new conservation practices and activities as the Secretary determines necessary and feasible to achieve higher levels of management intensity with which the producer addresses the designated priority resource of concern or priority resources of concern.

(i)

Effect of noncompliance due to circumstances beyond the control of producers

The Secretary shall include in the conservation security contract a provision to ensure that a producer shall not be considered in violation of a conservation security contract for failure to comply with the conservation security contract due to circumstances beyond the control of the producer, including a disaster or related condition, as determined by the Secretary.

(j)

Evaluation of offers

In evaluating applications by producers to enroll in the conservation security program, the Secretary shall—

(1)

consider the extent to which the anticipated environmental benefits from the contract are provided at least cost relative to other similar activities;

(2)

consider the extent to which the producer proposes to increase the level of performance on applicable resource-specific indices or the level of management intensity with which the producer addresses the designated priority resources of concern;

(3)

consider the extent to which the environmental benefits expected to result from the contract complements other conservation efforts in the watershed or region;

(4)

consider the multiple benefits of conservation-based farming systems, including resource-conservation crop rotations, managed rotational grazing, and the adoption of certified production under the national organic production program under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.); and

(5)

develop any additional criteria for evaluating applications that the Secretary determines are necessary to ensure that national, State, and local conservation priorities are effectively addressed.

(k)

Coordination with organic certification

Within 90 days after the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Secretary shall establish a transparent and producer-friendly means by which producers may coordinate and simultaneously certify eligibly under a conservation security contract and under the national organic production program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.).

1238B.

Duties of producers

(a)

Agreement by producer

Under a conservation security contract, a producer shall agree—

(1)

to implement during the term of the conservation security contract the conservation plan approved by the Secretary;

(2)

to maintain, and make available to the Secretary at such times as the Secretary may request, appropriate records showing the effective and timely implementation of the conservation security contract; and

(3)

not to engage in any activity during the term of the conservation security contract that would interfere with the purposes of the conservation security program.

(b)

Effect of violation

On the violation of a term or condition of the conservation security contract of a producer—

(1)

if the Secretary determines that the violation warrants termination of the conservation security contract, the producer shall—

(A)

forfeit all rights to receive payments under the conservation security contract; and

(B)

refund to the Secretary all or a portion of the payments received by the producer under the conservation security contract, including any advance payments and interest on the payments, as determined by the Secretary;

(2)

if the Secretary determines that the violation does not warrant termination of the conservation security contract, the producer shall refund to the Secretary, or accept adjustments to, the payments provided to the producer, as the Secretary determines to be appropriate; or

(3)

some combination of the remedies authorized by paragraphs (1) and (2), as determined by the Secretary to be appropriate.

1238C.

Duties of the Secretary

(a)

Identification of priority resources of concern

(1)

Identification at state level

The Secretary shall ensure that the identification of priority resources of concern is made at the State level so that each priority resource of concern—

(A)

represents a significant environmental concern, including watershed management or wildlife habitat, in the State to which agricultural activities are contributing; and

(B)

is likely to be addressed successfully through the implementation of conservation practices and other activities by producers.

(2)

Limitation

The Secretary shall identify not more than 5 resources of concern as priority resources of concern in a particular watershed or other appropriate region or area within a State.

(3)

Advice and consultation

The Secretary, with the advice of the appropriate State technical committee and in consultation with Federal and State agencies with expertise related to natural resources and environmental quality, shall designate, to the extent practicable, each priority resource of concern identified under paragraph (1) as either a primary, secondary, or tertiary resource of concern.

(b)

Development of resource-specific indices

The Secretary shall develop resource-specific indices to measure the management intensity with which specific resources of concern are addressed, for purposes of determining eligibility and payments for participants in the conservation security program.

(c)

Stewardship enhancement payment

(1)

Timing of payment

The Secretary shall make a payment under a conservation security contract as soon as practicable after October 1 of each fiscal year.

(2)

Exclusions

A payment to a producer under this subsection shall not be provided for—

(A)

the design, construction, or maintenance of animal waste storage or treatment facilities or associated waste transport or transfer devices for animal feeding operations; or

(B)

conservation practices and activities for which there is no net cost or loss of income to the producer, as determined by the Secretary.

(3)

Availability of payments

The Secretary shall provide a stewardship enhancement payment to a producer under a conservation security contract to compensate the producer for—

(A)

ongoing implementation and maintenance of conservation practices, activities, and management measures in place on the producers operation at the time the conservation security contract is accepted; and

(B)

installation and adoption of new conservation practices, activities, and management measures or improvements to conservation practices, activities, and management measures in place on the producer’s operation, as required by the conservation security contract.

(4)

Payment amount

The amount of the stewardship enhancement payment shall be determined by the Secretary and shall be based, to the maximum extent feasible, on—

(A)

a portion of the actual costs incurred by the producer; and

(B)

the income forgone by the producer; and

(C)

resource-specific indices, in any case in which such indices have been developed and implemented..

(d)

Payment limitations

An individual or entity may not receive, directly or indirectly, payments under a conservation security contract that, in the aggregate, exceed $150,000 for the 5-year term of the conservation security contract, excluding funding arrangements with federally recognized Indian Tribes or Alaska Native Corporations.

(e)

Regulations

The Secretary shall promulgate 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; and

(2)

prescribe such other rules as the Secretary determines to be necessary to ensure a fair and reasonable application of the limitations established under subsection (d).

(f)

Allocation to states

When making allocations to States of funds made available to carry out the conservation security program, the Secretary shall give significant consideration to the extent and magnitude of the environmental needs associated with agricultural production in each State, the degree to which implementation of the conservation security program in the State is, or will be, effective in helping producers address these needs, and other considerations to achieve equitable geographic distributions of funds, as determined by the Secretary.

(g)

Technical assistance

For each of fiscal years 2008 through 2017, the Secretary shall provide appropriate technical assistance to producers for the development and implementation of conservation security contracts, in an amount not to exceed 15 percent of the amounts expended for the fiscal year.

(h)

Data

The Secretary shall maintain conservation security program contract and payment data in a manner that provides detailed and segmented data that allows for quantification of the amount of payments made to producers for—

(1)

the maintenance of conservation practices, activities, and management measures in place on the producer’s operation at the time the conservation security offer is accepted by the Secretary;

(2)

the installation and adoption of new conservation practices, activities, and management measures and the improvements to conservation practices, activities, and management measures in place on the producer’s operation at the time the conservation security offer is accepted by the Secretary;

(3)

participation in research, demonstration, and pilot projects; and

(4)

the development and periodic assessment and evaluation of comprehensive conservation plans.

.

(b)

Effect on existing conservation security contracts

Subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.), as in effect on the day before the date of the enactment of this Act, shall continue to apply to conservation security contracts entered into before October 1, 2007. The Secretary of Agriculture may continue to make payments under such subchapter, as so in effect, with respect to such a conservation security contracts during the term of the contract.

(c)

Prohibition on new contracts

A conservation security contract may not be entered into or renewed under subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.), as in effect on the day before the date of the enactment of this Act, after September 30, 2007.

2104.

Grassland reserve program

(a)

Enrollment priority

Subsection (b) of section 1238N of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended by striking paragraph (3) and inserting the following new paragraph:

(3)

Priority for long-term agreements and easements

Of the total number of acres enrolled in the program at any one time through the methods described in paragraph (2)(A), the Secretary shall ensure that at least 60 percent of the acres were enrolled through the use of 30-year rental agreements and permanent and long-term easements described in clause (ii) of such paragraph.

.

(b)

Enrollment of acreage

Subsection (b) of section 1238N of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended by striking paragraph (1) and inserting the following new paragraph:

(1)

Enrollment

The Secretary shall enroll an additional 1,000,000 acres of restored or improved grassland, rangeland, and pastureland in the grassland reserve program during fiscal years 2008 through 2012.

.

(c)

Enrollment of Conservation Reserve Program Land

Section 1238N of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended by adding at the end the following new subsections:

(d)

Enrollment of Conservation Reserve Program Land

(1)

Enrollment authorized

Subject to the eligibility requirements of subsection (c) and all other requirements of this subchapter, land enrolled in the conservation reserve program may be enrolled in the grassland reserve program if the Secretary determines that the land is of high ecological value and under significant threat of conversion to other uses.

(2)

Maximum enrollment

The number of acres of conservation reserve program land enrolled under this subsection in a calendar year shall not exceed 10 percent of the total number of acres enrolled in the grassland reserve program in that calendar year.

(3)

Prohibition on duplication of payments

Land enrolled in the program under this subsection shall no longer be eligible for payments under the conservation reserve program.

(e)

Method for determination of fair market value

The Secretary shall determine the fair market value of land to be enrolled in program based on the option specified in paragraph (1), (2), (3), or (4) that results in the lowest amount of compensation to be paid by the Secretary:

(1)

A percentage of the fair market value based on the Uniform Standards for Professional Appraisals Procedures, as determined by the Secretary.

(2)

A percentage of the market value determined by an area wide market survey.

(3)

A geographic cap, as prescribed in regulations issued by the Secretary.

(4)

The offer made by the owner of the land.

.

(d)

Grassland reserve enhancement

Section 1238N of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended by inserting after subsection (d), as added by subsection (b), the following new subsection:

(e)

Grassland reserve enhancement

The Secretary may enter into such agreements with States, including political subdivisions and agencies of States, that the Secretary determines will advance the purposes of the grassland reserve program. Section 1305(d) of the Agricultural Reconciliation Act of 1987 (Public Law 100–203; 7 U.S.C. 1308 note) shall not apply to payments received by a State or political subdivision or agency thereof in connection with such an agreement.

.

(e)

Use of Private Organizations or State Agencies

Section 1238Q of the Food Security Act of 1985 (16 U.S.C. 3838q) is amended—

(1)

by striking subsection (a) and inserting the following new subsection:

(a)

Authority To Use Private Organizations or States

The Secretary shall permit a private conservation or land trust organization (referred to in this section as a private organization) or a State agency to own, write, and enforce an easement under this subchapter, in lieu of the Secretary, subject to the right of the Secretary to conduct periodic inspections and enforce the easement, if—

(1)

the Secretary determines that granting the permission will promote protection of grassland, land that contains forbs, and shrubland;

(2)

the owner authorizes the private organization or State agency to hold and enforce the easement; and

(3)

the private organization or State agency agrees to assume the costs incurred in administering and enforcing the easement, including the costs of restoration or rehabilitation of the land as specified by the owner and the private organization or State agency.

;

(2)

in subsection (b), by striking hold and inserting own, write,; and

(3)

in subsection (c), by striking hold and inserting own, write,.

2105.

Environmental quality incentives program

(a)

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, organic transition, after agricultural production; and

(2)

by striking paragraphs (3) and (4) and inserting the following new paragraphs:

(3)

providing flexible assistance to producers to install and maintain conservation practices that, while sustaining production of food and fiber—

(A)

enhance soil, water, and related natural resources, including grazing land, forestland, wetland, and wildlife; and

(B)

conserve energy;

(4)

assisting producers to make beneficial, cost effective changes to cropping systems, grazing management, energy use, forest management, nutrient management associated with livestock, pest or irrigation management, or other practices on agricultural and forested land; and

.

(b)

Definitions

Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is amended—

(1)

by striking paragraph (3) and inserting the following new paragraph:

(3)

Land management practice

(A)

In general

The term land management practice means a site-specific nutrient or manure management, integrated pest management, irrigation management, tillage or residue management, grazing management, air quality management, forest management, silvicultural practice, or other land management practice carried out on eligible land that the Secretary determines is needed to protect from degradation, in the most cost-effective manner, water, soil, or related resources.

(B)

Forest management practices

For purposes of subparagraph (A), forest management practices may include activities that the Secretary determines are needed to—

(i)

improve water quality;

(ii)

restore forest biodiversity; or

(iii)

control invasive species.

(C)

Coordinated implementation

A land management practice may involve multiple landowners implementing eligible conservation activities in a coordinated fashion.

;

(2)

in paragraph (4), by inserting alpacas, bison, after sheep,;

(3)

by redesignating paragraphs (3), (4), (5), and (6), as so amended, as paragraphs (4), (5), (6), and (8), respectively;

(4)

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

(3)

Integrated pest management

The term integrated pest management means a sustainable approach to managing pests by combining biological, cultural, physical, and chemical tools in a way that minimizes economic, health, an environmental risks.

; and

(5)

by inserting after paragraph (6), as so redesignated, the following new paragraph:

(7)

Socially disadvantaged farmer or rancher

The term socially disadvantaged farmer or rancher has the meaning given the term under section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)).

.

(c)

Eligible practices

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)—

(A)

in subparagraph (A), by inserting or receives organic certification after chapter; and

(B)

by striking subparagraph (B) and inserting the following new subparagraph:

(B)

a producer that implements a land management practice, receives technical services from an approved third-party provider, develops a comprehensive nutrient management plan, or implements energy efficiency improvements or renewable energy systems, in accordance with this chapter shall be eligible to receive incentive payments.

.

(d)

Beginning farmers or ranchers and socially disadvantaged farmers or ranchers

Section 1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(d)(2)) is amended by striking subparagraph (A) and inserting the following new subparagraph:

(A)

Increased cost-share for certain producers

The Secretary shall increase the amount provided under paragraph (1) to a producer that is a beginning farmer or rancher, socially disadvantaged farmer or rancher, or limited resource farmer or rancher to 90 percent of the cost of the practice, as determined by the Secretary.

.

(e)

Additional support for use of gasifier technology

Section 1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(d)(2)) is amended by adding at the end the following new subparagraph:

(C)

Increased cost-share for use of gasifier technology

In carrying out this chapter, the Secretary shall promote air quality by providing for a 90 percent cost share for those projects that utilize gasifier technology for the purposes of the disposal of animal carcasses and by-products.

.

(f)

Incentive payments

Section 1240B(e) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(e)) is amended—

(1)

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

(1)

Availability of incentive payments

The Secretary shall make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage a producer—

(A)

to perform 1 or more land management practices;

(B)

to receive technical services from an approved third-party provider;

(C)

to develop a comprehensive nutrient management plan; or

(D)

to implement energy efficiency improvements or renewable energy systems.

; and

(2)

in paragraph (2), by inserting pollinator habitat, after invasive species,.

(g)

Allocation of funding

Section 1240B(g) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) is amended—

(1)

by striking For each and inserting the following:

(1)

Allocation for livestock production practices

For each

;

(2)

in such paragraph, as so designated, by striking 2007 and inserting 2012; and

(3)

by adding at the end the following new paragraph:

(2)

Allocation for certain producers

For each of fiscal years 2007 through 2012, of the funds made available for cost-share payments and incentive payments under this chapter, the Secretary shall reserve, for a period of not less than 90 days after the date on which the funds are made available for the fiscal year—

(A)

not less than 5 percent for beginning farmers and ranchers; and

(B)

not less than 5 percent of funds for socially disadvantaged farmers and ranchers and limited resource farmers and ranchers.

.

(h)

Eligibility of market agencies and custom feeding businesses

Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–2) is amended by adding at the end the following new subsection:

(i)

Eligibility of market agencies and custom feeding businesses for assistance

A market agency (as defined in section 301(c) of the Packers and Stockyards Act, 1921 (7 U.S.C. 201(c))) or custom feeding business may receive technical assistance, cost-share payments, or incentive payments under the program. Any reference to producer in this chapter shall be deemed to include a market agency or custom feeding business.

.

(i)

Evaluation of applications for cost-share payments and incentive payments

Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa–3) is amended to read as follows:

1240C.

Evaluation of applications for cost-share payments and incentive payments

(a)

Priorities and grouping of applications

In evaluating applications for cost-share payments and incentive payments, the Secretary shall—

(1)

prioritize applications based on their overall level of cost-effectiveness to ensure that the conservation practices and approaches proposed are the most efficient means of achieving the anticipated environmental benefits of the project;

(2)

prioritize applications based on how effectively and comprehensively the project addresses the designated resource concern or resource concerns;

(3)

prioritize applications that best fulfill the purpose of the environmental quality incentives program specified in section 1240(1);

(4)

develop criteria for evaluating applications that will ensure that national, State, and local conservation priorities are effectively addressed; and

(5)

to the greatest extent practicable, group applications of similar crop or livestock operations for evaluation purposes or otherwise evaluate applications relative to other applications for similar farming operations.

(b)

Evaluation process

The Secretary shall ensure that the evaluation process is as streamlined and efficient as practicable in the case of applications that—

(1)

involve operations with substantial and sound environmental management systems; and

(2)

seek a single practice or a limited number of practices to further improve the environmental performance of that system.

.

(j)

Duties of producers

Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–4(2)) is amended by striking or ranch and inserting , ranch, or forestland.

(k)

Program plan

Section 1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa–5) is amended by striking subsections (a) and (b) and inserting the following new subsections:

(a)

Plan of operations

To be eligible to receive cost-share payments or incentive payments under the program, a producer shall submit to the Secretary for approval a plan of operations that—

(1)

specifies practices covered under the program;

(2)

includes such terms and conditions as the Secretary considers necessary to carry out the program, including a description of the purposes to be met by the implementation of the plan;

(3)

in the case of a confined livestock feeding operation, provides for development and implementation of a comprehensive nutrient management plan, if applicable; and

(4)

in the case of forestland, is consistent with the provisions of a forest management plan meeting with the approval of the Secretary, which may include a forest stewardship plan, as specified in section 5 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a), other practice plan approved by the State forester, or other plan determined appropriate by the Secretary.

(b)

Avoidance of duplication

The Secretary shall—

(1)

consider a permit acquired under a water or air quality regulatory program as the equivalent of a plan of operations under subsection (a); and

(2)

to the maximum extent practicable, eliminate duplication of planning activities under the program under this chapter and comparable conservation programs.

.

(l)

Duties of the secretary

Section 1240F of the Food Security Act of 1985 (16 U.S.C. 3839aa–6) is amended—

(1)

by striking To the extent and inserting (a) Provision of assistance.—To the extent; and

(2)

by adding at the end the following new subsection:

(b)

Water savings

In the case of a practice primarily intended to conserve water, the Secretary may provide assistance to a producer under this section only if the Secretary determines that—

(1)

the practice results in a minimum reduction, as determined by the Secretary, in the total consumptive use of ground water or surface water resources affected by the practice;

(2)

any saved water remains in the source for the useful life of the practice; and

(3)

the practice will not result, directly or indirectly, in an increase in the consumptive use of water in the agriculture operation of the producer.

.

(m)

Conservation innovation grants

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

1240H.

Conservation innovation grants

(a)

Competitive grants

The Secretary shall pay the cost of competitive grants that are intended to stimulate innovative approaches to leveraging Federal investment in environmental enhancement and protection, in conjunction with agricultural production or forest resource management, through the program.

(b)

Use

The Secretary may provide grants under this section to governmental and non-governmental organizations and persons, on a competitive basis, to carry out projects that—

(1)

involve producers that are eligible for payments or technical assistance under the program;

(2)

leverage funds made available to carry out the program under this chapter with matching funds provided by State and local governments and private organizations to promote environmental enhancement and protection in conjunction with agricultural production;

(3)

ensure efficient and effective transfer of innovative technologies and approaches demonstrated through projects that receive funding under this section; and

(4)

provide environmental and resource conservation benefits through increased participation by producers of specialty crops.

(c)

Pilot program for comprehensive conservation planning

(1)

Pilot program required

The Secretary shall establish a pilot program to undertake comprehensive conservation planning to assist producers before they submit an application for assistance under any of the conservation programs authorized by this subtitle.

(2)

Conservation planning assistance

The Secretary shall undertake pilot projects under the pilot program in the locations specified in paragraph (3) to assist producers by making a comprehensive assessment of the resource concerns, needs, and alternative solutions for the producer’s entire operation, as determined by the Secretary, following the procedures in the Natural Resources Conservation Service conservation planning manual. The assistance shall be provided by the Secretary directly or through third party providers certified by the Secretary, and shall not be at the expense of the producer. The results of the comprehensive planning assistance shall be provided to the producer to enable informed choices on the type of financial assistance available under this subtitle that would most effectively address the resource needs of the operation consistent with the environmental goals for the area in which the operation is located.

(3)

Pilot projects

Pilot projects in comprehensive conservation planning shall be undertaken in the Chesapeake Bay watershed, and shall include the identification of hydrologic, soil, and rural land use factors that are unique to the Delmarva Peninsula.

(4)

Report

The Secretary shall conduct an assessment of the effectiveness of the pilot program and publish a report, available to the public, of the results of the assessment. Such assessments shall be undertaken in the second year and the fifth year of the pilot program.

(d)

Funding

(1)

Availability of funds

Of the funds made available under section 1241(a)(6) for fiscal years 2008 through 2012, the Secretary shall use $30,000,000 for fiscal year 2008, $35,000,000 for fiscal year 2009, $50,000,000 for fiscal year 2010, $60,000,000 for fiscal year 2011, and $75,000,000 for fiscal year 2012.

(2)

Outreach for certain producers

Of the funds made available under paragraph (1) for a fiscal year, the Secretary shall use $5,000,000 to make grants to support effective outreach and innovative approaches for outreach and to serve organic producers and producers of specialty crops (as defined in section 3 of the Specialty Crops Competitiveness Act of 2004 (Public Law 108–465; 7 U.S.C. 1621 note).

(3)

Comprehensive conservation planning

Of the funds made available under paragraph (1) for a fiscal year, the Secretary shall use $5,000,000 to carry out the comprehensive conservation planning pilot program under subsection (c).

(4)

Air quality

Of the funds made available under paragraph (1), the Secretary shall use $10,000,000 for fiscal year 2008, $15,000,000 for fiscal year 2009, $30,000,000 for fiscal year 2010, $40,000,000 for fiscal year 2011, and $55,000,000 for fiscal year 2012 to support air quality improvement and performance incentives for States to help meet State and local regulatory requirements related to air quality.

.

2106.

Regional water enhancement program

(a)

Purpose and goals

The purpose of this section is to authorize a regional water enhancement program, within the environmental quality incentives program, to enhance performance-based, cost-effective conservation carried out through cooperative agreements entered into by the Secretary of Agriculture with producers, governmental entities, and Indian tribes. The goal of the program is to improve water quality or ground and surface water quantity through coordinated program activities on agricultural lands. The Secretary will develop goals and provide coordinated program assistance for water quality or water quantity improvement projects.

(b)

Establishment of program

Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) is amended to read as follows:

1240I.

Regional water enhancement program

(a)

Definitions

In this section:

(1)

Regional water enhancement activities

The term regional water enhancement activities includes resource condition assessment and modeling, water quality, water quantity or water conservation plan development, management system and environmental monitoring and evaluation, cost-share of restoration or enhancement projects, incentive payments for land management practices, easement purchases, conservation contracts with landowners, improved irrigation systems, water banking and other forms of water transactions, groundwater recharge and other conservation related activities that the Secretary determines will help to achieve the water quality or water quantity benefits on agricultural lands identified in a partnership agreement.

(2)

Partnership agreement

The term partnership agreement means an agreement between the Secretary and a partner under subsection (d).

(3)

Partner

The term partner means an entity that enters into a partnership agreement with the Secretary to carry out regional water enhancement activities. The term includes—

(A)

an agricultural producer, agricultural or silvicultural producer association, or other group of such producers;

(B)

a State or unit of local government, including an irrigation or water district; or

(C)

a federally recognized Indian tribe.

(b)

Establishment of program

(1)

Establishment

The Secretary shall establish a regional water enhancement program in accordance with this section to improve water quality or water quantity on a regional scale to benefit working agricultural land and other lands surrounding agricultural land.

(2)

Identification of water quality and water quantity priority areas

The Secretary shall identify areas where protecting or improving water quality, water quantity, or both is a priority. In identifying these areas, the Secretary shall prioritize the Chesapeake Bay, the Upper Mississippi River basin, the Everglades, and the Klamath River basin. Not more than 50 percent of the funds made available for the regional water enhancement program shall be reserved for priority areas identified in this paragraph.

(c)

Selection of partners

(1)

Solicitation of partnership proposals

Not later than 90 days after the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Secretary shall invite prospective partners to submit competitive grant proposals for regional water enhancement partnerships.

(2)

Elements

To be eligible for consideration for participation in the program, a proposal submitted by a partner shall contain the following elements:

(A)

Identification of the exact geographic area for which the partnership is proposed, which may be based on—

(i)

a watershed (or portion thereof);

(ii)

an irrigation, water, drainage district, including service area; or

(iii)

some other geographic area with characteristics making it suitable for landscape-wide program implementation, as may be determined by the Secretary.

(B)

Identification of the water quality or water quantity issues that are of concern in the area.

(C)

A method for determining a baseline assessment of water quality, water quantity, and other resource conditions in the region.

(D)

A detailed description of the proposed regional water enhancement activities to be undertaken in the area, including an estimated timeline and budget for each activity.

(E)

A description of the performance measures to be used to gauge the effectiveness of the regional water enhancement activities.

(F)

A description of other regional water enhancement activities carried out by the Secretary.

(G)

A description of regional water enhancement activities carried out by partners through other means.

(3)

Selection of proposals

The Secretary shall award grants competitively, based on the following criteria applied by the Secretary:

(A)

Proposals that will result in the inclusion of the highest percentage of agricultural lands and producers in the area.

(B)

Proposals that will result in the highest percentage of on-the-ground activities versus administrative costs.

(C)

Proposals that will provide the greatest contribution to sustaining or enhancing agricultural production in the area or rural economic development.

(D)

Proposals that include performance measures that will allow post-activity conditions to be satisfactorily measured to gauge overall effectiveness.

(E)

Proposals that will capture surface-water runoff on farms through the construction, improvement, or maintenance of irrigation ponds.

(F)

Proposals that have the highest likelihood of improving issues of concern for the area through the participation of multiple interested persons.

(G)

Proposals that will assist producers in meeting a regulatory requirement imposed on lands in agriculture production that reduces the economic scope of the producer’s operation.

(4)

Duration

Grants under this subsection shall be made on a multi-year basis, not to exceed 5 years total, except that the Secretary may terminate a grant earlier if the performance measures are not being met.

(d)

Partnership agreements

(1)

Generally

Not later than 30 days after the award of a grant to a partner under subsection (c), the Secretary shall enter into a partnership agreement with the grant recipient. At a minimum, the agreement shall contain—

(A)

a description of the respective duties and responsibilities of the Secretary and the partner in carrying out regional water enhancement activities; and

(B)

the criteria that the Secretary will use to measure the overall effectiveness of the regional water enhancement activities funded by the grant in improving the water quality or quantity conditions of the region relative to the performance measures in the grant proposal.

(2)

Acceptance of contributions

The Secretary may accept and use contributions of non-Federal funds to administer the program under this section.

(3)

Waiver authority

The Secretary shall waive the limitation in section 1001D of this Act if the Secretary determines that doing so is necessary to fulfill the objectives of the regional water enhancement program.

(e)

Modification of secretarial authority

To the extent that the Secretary will be carrying out regional water enhancement activities in an area, the Secretary may use the general authorities provided in this subtitle to ensure that all producers and landowners in the region have the opportunity to participate in such activities.

(f)

Relationship with other programs

The Secretary shall ensure that, to the extent producers and landowners are individually participating in other programs under this subtitle in a region where the regional water enhancement program is in effect, any improvements to water quality or water quantity attributable to such individual participation is included in the evaluation criteria developed under subparagraph (d)(1)(B).

(g)

Consistency with state law

Any regional water enhancement activity conducted under this section shall be consistent with State water laws.

(h)

Funding

(1)

Availability of funds

In addition to funds made available to carry out this chapter under section 1241(a)(6), the Secretary shall use funds of the Commodity Credit Corporation to carry out this section in the amount of, to the maximum extent practicable, $60,000,000 for each of fiscal years 2008 through 2012.

(2)

Limitation on administrative expenses

Not more than 3 percent of the funds made available under paragraph (1) for a fiscal year may be used for administrative expenses of the Secretary.

.

2107.

Grassroots source water protection program

(a)

Authorization of appropriations

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) is amended by striking $5,000,000 for each of fiscal years 2002 through 2007 and inserting $20,000,000 for each of fiscal years 2008 through 2012.

(b)

Additional funding

Section 1240O of the Food Security Act of 1985 (16 U.S.C. 3839bb–2) is amended by adding at the end the following new subsection:

(c)

One-time infusion of funds

Of the funds of the Commodity Credit Corporation, the Secretary shall make available, on a one-time basis, $10,000,000 to carry out this section. Such funds shall remain available until expended.

.

2108.

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.

2109.

Great Lakes basin program for soil erosion and sediment control

Section 1240P(c) of the Food Security Act of 1985 (16 U.S.C. 3839bb–3(c)) is amended by striking 2007 and inserting 2012.

2110.

Farm and ranchland protection program

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

B

Farm and ranchland protection program

1238H.

Definitions

In this subchapter:

(1)

Eligible entity

The term eligible entity means any of the following:

(A)

An agency of a State or local government or an Indian tribe (including a farmland protection board or land resource council established under State law).

(B)

An organization that 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.

(C)

An organization described in section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from taxation under section 501(a) of that Code.

(D)

An organization described in section 509(a)(2) of the Internal Revenue Code of 1986.

(E)

An organization described in section 509(a)(3) of the Internal Revenue Code of 1986 that is controlled by an organization described in section 509(a)(2), of that Code.

(2)

Eligible land

The term eligible land means land on a farm or ranch that—

(A)

is cropland;

(B)

is rangeland;

(C)

is grassland;

(D)

is pasture land;

(E)

is forest land that is an incidental part of an agricultural operation, as determined by the Secretary; or

(F)

contains historical or archaeological resources.

(3)

Indian tribe

The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

(4)

Program

The term program means the farm and ranchland protection program established under section 1238I(a).

(5)

Secretary

The term Secretary means the Secretary of Agriculture.

1238I.

Farm and ranchland protection program

(a)

Establishment

(1)

Establishment and purpose

The Secretary shall establish and carry out a farm and ranchland protection program under which the Secretary shall facilitate and provide funding for the purchase of conservation easements or other interests in eligible land that is subject to a pending offer from a certified State or eligible entity for the purpose of protecting the agricultural use and related conservation values of the land by limiting incompatible nonagricultural uses of the land.

(2)

Priority

In carrying out the program, the Secretary shall give the highest priority—

(A)

to protecting farm and ranchland with prime, unique or other productive soils that are at risk of non-agricultural development; or

(B)

to projects that further a State or local policy consistent with the purposes of the program.

(b)

Grants to certified states

The Secretary shall make grants to States certified by the Secretary under subsection (c). Such grants shall be made based on demonstrated need for farm and ranch land protection. Grants may be made for multiple transactions so long as all funds provided under the program are used to purchase conservation easements or other interests in land in a timely and effective manner. A State receiving a grant under this subsection may use up to 10 percent of the grant funds for reasonable costs of purchasing and enforcing conservation easements.

(c)

Certification of states for grants

(1)

Certification process

The Secretary shall implement a process, to be published in the Federal Register, for certifying States as eligible to participate in the program. The Secretary may provide a reasonable transitional period, not to extend past September 30, 2008, in order to allow continued operation of the program for such time as needed for the Secretary to implement the certification process.

(2)

Certification requirements

To be certified under the process implemented under paragraph (1), a State shall demonstrate, at a minimum, the following:

(A)

A legislative or organizational purpose consistent with the purposes of the program.

(B)

The necessary authority and the resources and technical ability to monitor and enforce the terms of conservation easements or other interests in land or to require the holder of such easements or other interests in land acquired with the use of funding under the program to monitor and enforce the terms of such easements or other interests in land.

(C)

The capacity to provide the necessary matching funds from non-Federal sources for projects undertaken under the program and to use program funds in a timely and effective manner.

(D)

Policies and procedures to ensure that, on average, the purchase price of conservation easements or other interests in land purchased with program funds do not exceed the fair market value of the easements or other interests in land.

(E)

Policies and procedures that ensure that conservation easements or other interests in land purchased with program funds will continue to protect the agricultural use and related conservation values of the land.

(F)

Provision for continued stewardship of the conservation easements or other interest in land purchased with program funds in the event the State loses its certification under the program.

(G)

A determination of its own criteria and priorities for purchasing conservation easements and other interests in land under the program.

(d)

Agreements with eligible entities

(1)

Agreements authorized

The Secretary may enter into an agreement with an eligible entity, under which the entity may purchase conservation easements using a combination of its own funds and funds distributed by the Secretary under the program.

(2)

Terms and conditions

An agreement under this subsection shall stipulate the terms and conditions under which the eligible entity shall use funds provided by the Secretary under the program. The eligible entity shall be authorized to use its own terms and conditions for conservation easements and other purchases of interests in land, so long as—

(A)

such terms and conditions are consistent with the purposes of the program and permit effective enforcement of the conservation purposes of such easements or other interests;

(B)

the eligible entity has in place a requirement consistent with agricultural activities regarding the impervious surfaces to be allowed for any conservation easement or other interest in land purchased using funds provided under the program; and

(C)

the eligible entity requires use of a conservation plan for any highly erodible cropland for which a conservation easement or other interest in land has been purchased using funds provided under the program.

(e)

Federal contingent right of enforcement

The Secretary may require the inclusion of a Federal contingent right of enforcement or executory limitation in a conservation easement or other interest in land for conservation purposes purchased with Federal funds provided under the program, in order to preserve the easement as a party of last resort. The inclusion of such a right or interest shall not be considered to be the Federal acquisition of real property and the Federal standards and procedures for land acquisition shall not apply to the inclusion of the right or interest

(f)

Review; revocation

(1)

Review

Every 3 years, the Secretary shall review the certification of States under subsection (c) and the performance of eligible entities in meeting the terms and conditions of an agreement under subsection (d).

(2)

Revocation

If, in the determination of the Secretary, a State no longer meets the qualifications described in subsection (c)(2) or an eligible entity is not meeting the terms and conditions of an agreement under subsection (d), the Secretary may—

(A)

revoke the certification of the State or terminate the agreement with the eligible entity; or

(B)

allow the State or eligible entity a specified period of time in which to take such actions as may be necessary to retain its certification or to meet the terms and conditions of the agreement, as the case may be.

(g)

Conservation plan

Any highly erodible cropland for which a conservation easement or other interest is purchased under this subchapter shall be subject to the requirements of a conservation plan. In the case of an easement or other interest in land that is perpetual in duration, the Secretary may not require the conversion of the cropland to less intensive uses if, under such plan, soil erosion can be reduced to T or below.

(h)

Cost sharing

The share of the cost provided under this section for purchasing a conservation easement or other interest in land shall not exceed 50 percent of the appraised fair market value of the conservation easement or other interest in eligible land. Fair market value shall be determined on the basis of an appraisal of the conservation easement or other interest in eligible land using an industry-approved methodology determined by the entity.

.

2111.

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.

2112.

Wildlife habitat incentive program

(a)

Reauthorization

Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) is amended by adding at the end the following new subsection:

(d)

Duration of program

Using funds made available under section 1241(a)(7), the Secretary shall carry out the program during fiscal years 2008 through 2012.

.

(b)

Cost share for long-term agreements and impact on scope of operations

Section 1240N(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3839bb–1(b)(2)) is amended—

(1)

in the paragraph heading by inserting and impact on scope of operations after agreements;

(2)

in subparagraph (A), by striking years, and inserting years, or that will assist producers in meeting a regulatory requirement imposed on lands in agriculture production that reduces the economic scope of the producer’s operation,; and

(3)

in subparagraph (B), by striking 15 percent and inserting 25 percent.

B

Conservation Programs Under Other Laws

2201.

Agricultural management assistance program

(a)

Eligible states

Section 524(b)(1) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(1)) is amended—

(1)

by inserting Hawaii, after Delaware,; and

(2)

by inserting Virginia, after Vermont,.

(b)

Technical correction

Section 524(b)(4)(B)(i) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)(i)) is amended by striking Except as provided in clauses (ii) and (iii), the and inserting The.

(c)

Certain uses

Section 524(b)(4) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended by adding at the end the following new subparagraph:

(C)

Certain uses

Of the amounts made available to carry out this subsection for a fiscal year, the Commodity Credit Corporation shall use not less than—

(i)

50 percent to carry out subparagraphs (A), (B), and (C) of paragraph (2) through the Natural Resources Conservation Service;

(ii)

10 percent to provide organic certification cost share assistance through the Agricultural Marketing Service; and

(iii)

40 percent to conduct activities to carry out subparagraph (F) of paragraph (2) through the Risk Management Agency.

.

2202.

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), by striking planning process in the matter preceding subparagraph (A) and inserting locally led planning process; and

(2)

in paragraph (9), 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 new subparagraphs:

(C)

providing assistance for the implementation of area plans and projects; and

(D)

providing services which bring to bear 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 inserting (a) In general.— before In carrying; and

(2)

by adding at the end the following new subsection:

(b)

Coordinator

To improve the provision of technical assistance to councils under this subtitle, the Secretary shall designate an individual, to be known as the Coordinator, for each council. The Coordinator 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.

2203.

Small watershed rehabilitation program

(a)

Availability of funds

Section 14(h)(1) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended by adding at the end the following new subparagraph:

(G)

$50,000,000 for each of fiscal years 2009 through 2012.

.

(b)

Authorization of appropriations

Section 14(h)(2)(E) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by striking fiscal year 2007 and inserting each of fiscal years 2007 through 2012.

C

Additional Conservation Programs

2301.

Chesapeake Bay program for nutrient reduction and sediment control

Chapter 5 of subtitle D of the Food Security Act of 1985 is amended by inserting after section 1240P (16 U.S.C. 3839bb–3) the following new section:

1240Q.

River restoration in the Chesapeake Bay watershed

(a)

Chesapeake bay watershed defined

In this section, the term Chesapeake Bay watershed means all tributaries, backwaters, and side channels, including their watersheds, draining into the Chesapeake Bay.

(b)

Comprehensive plan for Chesapeake bay watershed

(1)

Development

The Secretary of Agriculture shall develop, as expeditiously as practicable, a proposed comprehensive plan for the purpose of restoring, preserving, and protecting the Chesapeake bay watershed.

(2)

Proven technologies and innovative approaches

The comprehensive plan shall provide for the development of new technologies and innovative approaches to advance the following goals:

(A)

Improvement of water quality and quantity within the Chesapeake Bay.

(B)

Restoration, enhancement, and preservation of habitat for plants and wildlife.

(C)

Increase economic opportunity for producers and rural communities.

(3)

Specific components

The comprehensive plan shall include such features as are necessary to provide for—

(A)

the development and implementation of a program for erosion prevention and control, sediment control and sediment removal, and reduction of nutrient loads;

(B)

the development and implementation of a program for—

(i)

the planning, conservation, evaluation, and construction of measures for fish and wildlife habitat conservation and rehabilitation; and

(ii)

stabilization and enhancement of land and water resources; and

(C)

the development and implementation of a long-term resource monitoring program.

(4)

Consultation

The comprehensive plan shall be developed by the Secretary in consultation with appropriate Federal and State agencies.

(c)

Submission of plan

(1)

Submission

Not later than 2 years after the date of enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Secretary shall transmit to Congress a report containing the comprehensive plan.

(2)

Additional studies and analyses

After submission of the report required by paragraph (1), the Secretary shall continue to conduct such studies and analyses related to the comprehensive plan as are necessary, consistent with this subsection.

(d)

Restoration enhancement and preservation projects

(1)

Project authority

In cooperation with appropriate Federal and State agencies, the Secretary shall carry out restoration enhancement and preservation projects for the Chesapeake Bay watershed to address the goals specified in subsection (b)(2). To achieve the restoration, preservation, and protection benefits of a project, the Secretary shall proceed expeditiously with the implementation of the project consistent with the comprehensive plan.

(2)

Critical projects

In carrying out this subsection, the Secretary shall begin with the Susquehanna River, the Shenandoah River, the Potomac River, and the Patuxent River.

(3)

Availability of funds

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out projects under this subsection the following amounts:

(A)

$10,000,000 for fiscal year 2008.

(B)

$15,000,000 for fiscal year 2009.

(C)

$30,000,000 for fiscal year 2010.

(D)

$40,000,000 for fiscal year 2011.

(E)

$55,000,000 for fiscal year 2012.

(4)

Federal share

The Federal share of the cost of carrying out any individual project under this subsection shall not exceed $5,000,000.

(e)

General provisions

(1)

Water quality

In carrying out projects and activities under this section, the Secretary shall take into account the protection of water quality by considering applicable State water quality standards.

(2)

Public participation

In developing the comprehensive plan under subsection (b) and carrying out projects under subsection (d), the Secretary shall implement procedures to facilitate public participation, including providing advance notice of meetings, providing adequate opportunity for public input and comment, maintaining appropriate records, and making a record of the proceeding of meetings available for public inspection.

(f)

Coordination

The Secretary shall integrate and coordinate projects and activities carried out under this section with other Federal and State programs, projects, and activities.

(g)

Cost sharing

(1)

Non-Federal share

Subject to subsection (d)(4), the non-Federal share of the cost of projects and activities carried out under this section shall be not less than 35 percent.

(2)

Operation, maintenance, rehabilitation, and replacement

The operation, maintenance, rehabilitation, and replacement of projects carried out under this section shall be a non-Federal responsibility.

(h)

Sense of congress regarding Chesapeake bay executive council

(1)

Findings

Congress finds the following:

(A)

One of the stated goals of the Chesapeake Bay Agreement is to develop, promote, and achieve sound land use practices which protect and restore watershed resources and water quality, maintain reduced pollutant loadings for the Bay and its tributaries, and restore and preserve aquatic living resources.

(B)

Department of Agriculture conservation programs are integral to the restoration of the Chesapeake Bay and achieving the water quality goals for the Chesapeake Bay program.

(2)

Sense of congress

In light of the findings specified in paragraph (1), it is the sense of Congress that the Secretary of Agriculture should be a member of the Chesapeake Bay Executive Council, and is authorized to do so under section 1(3) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a(3)).

.

2302.

Voluntary public access and habitat incentive program

Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 is amended by inserting after section 1240Q, as added by section 2301, the following new section:

1240R.

Voluntary public access and habitat incentive program

(a)

Establishment

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—

(1)

have consistent opening dates for migratory bird hunting for both residents and non-residents;

(2)

propose to maximize participation by offering a program the terms of which are likely to meet with widespread acceptance among landowners;

(3)

propose to ensure that land enrolled under the State or tribal government program has appropriate wildlife habitat;

(4)

propose to strengthen wildlife habitat improvement efforts on land enrolled in a special conservation reserve enhancement program described in 1234(f)(4) by providing incentives to increase public hunting and other recreational access on that land; and

(5)

propose to use additional Federal, State, tribal government, or private resources in carrying out the program.

(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.

(f)

Authorization of appropriations

There is authorized to be appropriated to the Secretary $20,000,000 for each of fiscal years 2008 through 2012 to carry out this section.

.

D

Administration and Funding

2401.

Funding of conservation programs under Food Security Act of 1985

(a)

In general

Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1), by striking 2007 and inserting 2012.

(b)

Conservation security program

Paragraph (3) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as follows:

(3)

The conservation security program under subchapter A of chapter 2, using, to the maximum extent practicable—

(A)

in the case of conservation security contracts entered into before October 1, 2007, under such subchapter, as in effect on the day before the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007

(i)

$1,454,000,000 for the period of fiscal years 2007 through 2012; and

(ii)

$1,927,000,000 for the period of fiscal years 2007 through 2017; and

(B)

in the case of conservation security contracts entered into on or after October 1, 2011, under such subchapter—

(i)

$501,000,000 for fiscal year 2012; and

(ii)

$4,646,000,000 for the period of fiscal years 2012 through 2017.

.

(c)

Farm and ranchland protection program

Paragraph (4) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as follows:

(4)

The farm and ranchland protection program under subchapter B of chapter 2, using, to the maximum extent practicable—

(A)

$125,000,000 in fiscal year 2008;

(B)

$150,000,000 in fiscal year 2009;

(C)

$200,000,000 in fiscal year 2010;

(D)

$240,000,000 in fiscal year 2011; and

(E)

$280,000,000 in fiscal year 2012.

.

(d)

Environmental quality incentives program

Paragraph (6) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as follows:

(6)

The environmental quality incentives program under chapter 4, using, to the maximum extent practicable—

(A)

$1,500,000,000 in fiscal year 2008;

(B)

$1,600,000,000 in fiscal year 2009;

(C)

$1,700,000,000 in fiscal year 2010;

(D)

$1,800,000,000 in fiscal year 2011; and

(E)

$2,000,000,000 in fiscal year 2012.

.

(e)

Wildlife habitat incentives program

Paragraph (7)(D) of section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 2007 and inserting 2012.

2402.

Improved provision of technical assistance under conservation programs

Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is amended—

(1)

in subsection (a)—

(A)

by striking or at the end of paragraph (1); and

(B)

by striking paragraph (2) and inserting the following new paragraphs:

(2)

through a contract with an approved third party, if available; or

(3)

at the option of the producer, through a payment as determined by the Secretary, directly to an approved third party, if available, or to the producer for an approved third party, if available.

;

(2)

in subsection (b)—

(A)

by striking technical assistance each place it appears and inserting technical services; and

(B)

in paragraph (1)(B), by striking that assistance and inserting those technical services; and

(3)

by adding at the end the following new subsections:

(c)

Payment amounts

(1)

Use of prevailing market rates

The Secretary shall set the amounts of payments under subsection (b)(1)(B) for technical services at levels not less than prevailing private market rates.

(2)

Exception

Paragraph (1) shall not apply in instances where personnel of the Department of Agriculture are immediately available to provide comparable technical services to eligible producers.

(d)

Review and Expedited Approval of Technical Assistance Specifications

(1)

Review of existing technical assistance specifications

(A)

Review of specifications

The Secretary shall direct each State to review and ensure, to the maximum extent practicable, the completeness and relevance of technical assistance specifications in effect as of the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007.

(B)

Consultation

In conducting the assessment under subparagraph (A), a State shall consult with specialty crop producers, crop consultants, cooperative extension and land-grant universities, nongovernmental organizations, and other qualified entities.

(C)

Expedited revision of specifications

If a State determines under subparagraph (A) that revisions to its technical assistance specifications are necessary, the State shall establish an administrative process for expediting the revisions.

(2)

Addressing concerns of specialty crop producers

(A)

In general

The Secretary shall direct each State to fully incorporate into its technical assistance specifications and provide for the appropriate range of conservation practices and resource mitigation measures available to specialty crop producers.

(B)

Availability of adequate technical assistance

The Secretary shall ensure that adequate technical assistance is available for the implementation of conservation practices by specialty crop producers through Federal conservation programs. In carrying out this requirement, the Secretary shall develop—

(i)

programs that meet specific needs of specialty crop producers through cooperative agreements with other agencies and nongovernmental organizations; and

(ii)

program specifications that allow for innovative approaches that engage local resources in providing technical assistance for planning and implementation of conservation practices.

(e)

Non-Federal assistance

The Secretary may request the services of, and enter into cooperative agreements or contracts with, non-Federal entities to assist the Secretary in providing technical assistance necessary to develop and implement conservation programs under this title.

.

2403.

Cooperative conservation partnership initiative

(a)

Transfer of existing provisions

Subsections (b), (c), and (d) of section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) are—

(1)

redesignated as subsections (c), (d), and (e), respectively; and

(2)

transferred to appear at the end of section 1244 of such Act (16 U.S.C. 3844).

(b)

Establishment of partnership initiative

Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843), as amended by subsection (a), is amended to read as follows:

1243.

Cooperative conservation partnership initiative

(a)

Establishment of initiative

(1)

Establishment

The Secretary shall establish a cooperative conservation partnership initiative (in this section referred to as the Partnership) within each program described in subsection (b) to address conservation issues involving production agriculture on local, regional, or State levels.

(2)

Administration

The Secretary shall carry out the Partnership—

(A)

by selecting proposals for grants and agreements by eligible entities described in subsection (c) through a competitive selection process;

(B)

by making grants to, and entering into agreements with, with eligible entities described in subsection (c) for not less than 2 years, but not more than 5 years, in duration; and

(C)

by providing producers that are participating in a special project and initiative of an eligible entity preferential enrollment into 1 or more of the programs described in subsection (b).

(3)

Purposes

The purposes of the Partnership are to carry out special projects and initiatives—

(A)

to address conservation issues involving production agriculture on local, regional, or State levels through producers and eligible entities;

(B)

to address community and economic development needs and opportunities; and

(C)

to increase access to, and participation in, the programs described in subsection (b) by producers of specialty crops (as defined in section 3 of the Specialty Crops Competitiveness Act of 2004, Pub. L. 108–465 (7 U.S.C. 1621 note).

(b)

Covered programs

The conservation programs covered by this section are the following:

(1)

Conservation security program.

(2)

Environmental quality incentives program.

(3)

Wildlife habitat incentive program.

(c)

Eligible partners

Grants may be made or agreements may be entered into under this section with any of the following (or a combination thereof):

(1)

States and agencies of States.

(2)

Political subdivisions of States, including counties and State- or county-sponsored conservation districts.

(3)

Indian tribes.

(4)

Nongovernmental organizations and associations, including producer associations, farmer cooperatives, extension associations, and conservation organizations with a history of working cooperatively with producers to effectively address resource concerns related to agricultural production, as determined by the Secretary.

(5)

A combination of partners specified in a preceding paragraph.

(d)

Applications

(1)

Competitive process

The Secretary shall establish a competitive process for considering applications for grants or agreements under this section consistent with the evaluation criteria listed in subsection (e).

(2)

Program allocation

Applications shall include—

(A)

specification of the amount of funding or acres, or both, of 1 or more covered programs specified in subsection (b) proposed to be allocated to carry out the special project or initiative; and

(B)

a schedule for utilization of funding or acres over the life of the proposed project or initiative.

(e)

Evaluation criteria

In evaluating applications for grants or agreements under this section the Secretary shall consider the extent to which—

(1)

preferential enrollment in the covered programs specified in the application will effectively address the environmental objectives established for the special project or initiative; and

(2)

the special project or initiative covered by the application—

(A)

enjoys local and regional support from producers and other interested persons, including governmental and nongovernmental organizations with appropriate expertise on the issues the project or initiative seeks to address;

(B)

includes clear environmental objectives;

(C)

includes a well defined project or initiative plan that identifies sensitive areas requiring treatment and prioritizes conservation practices and activities needed to achieve environmental objectives;

(D)

promises adequate and coordinated participation to achieve the objectives of the project or initiative;

(E)

coordinates integration of local, State, and Federal efforts to make the best use of available resources and maximize cost-effective investments;

(F)

leverages financial and technical resources from sources other than the programs authorized by this subtitle, including financial and technical resources provided by Federal and State agencies, local governments, nongovernmental organizations and associations, and other private sector entities;

(G)

describes how all necessary technical assistance will be provided to each producer participating in the project or initiative, including cost estimates for technical assistance and whether such assistance will be provided by technical service providers;

(H)

describes how the administrative costs of the project or initiative will be minimized;

(I)

addresses a local, State, regional, or national environmental priority or priorities, with particular emphasis on any priority for which there is an existing State or federally approved plan in place for addressing that priority;

(J)

includes a plan to evaluate progress, measure results, and meet the purposes of the agreement;

(K)

clearly demonstrates that enrollment of producers in covered programs will be consistent with the purposes and policies of each individual program, as established in statute, rules and regulations, and program guidance promulgated by implementing agencies;

(L)

links resource and environmental objectives with community development or agritourism objectives that can be improved as a result of addressing the resources of concern;

(M)

demonstrates innovation in linking environmental and community development objectives; and

(N)

addresses the needs of beginning farmers and ranchers, socially disadvantaged farmers and ranchers, and limited resource farmers and ranchers.

(f)

Priorities

To the maximum extent practicable, consistent with the requirements of subsection (d), the Secretary shall ensure that, each fiscal year, grants are awarded and agreements are entered into under this section to support projects and initiatives that collectively address the resource concerns facing producers, ranchers, and nonindustrial private forest landowners, including specifically projects and initiatives that are designed—

(1)

to achieve improvements in water quality in watersheds impacted by agriculture, particularly by increasing the participation of producers in implementing best management practices in a watershed or developing environmentally and economically viable alternative uses for manure and litter;

(2)

to achieve improvements in air quality in a geographical area where agricultural operations impact air quality;

(3)

to support State activities to efficiently manage and utilize their water resources in regions, States or local areas where water quantity is a concern;

(4)

to assist in carrying out a State Wildlife Habitat Incentives Program plan or other State, regional, or national conservation initiative.

(5)

to control invasive species on rangeland or other agricultural land through the cooperative efforts of multiple producers in a geographical area;

(6)

to address a specific resource of concern or set of concerns on private, non-industrial forest land;

(7)

to reduce losses of pesticides to the environment by engaging multiple producers in a geographic area in adoption of integrated pest management practices and approaches;

(8)

to protect farmland and ranch land facing development pressures from being converted to non-agricultural use; or

(9)

to assist producers in carrying out good management practices to enhance food safety.

(g)

Duties of partners

Eligible partners shall—

(1)

identify conservation issues affecting production agriculture on local, regional, or State levels that could be addressed through special projects and initiatives;

(2)

enter into agreements or obtain grants from the Secretary to carry out special projects and initiatives;

(3)

identify through outreach efforts producers that can participate in the special project or initiative of the eligible entity if the producer is otherwise eligible to be enrolled, as determined by the Secretary, or has already enrolled, in the applicable program described in subsection (b); and

(4)

carry out the special project and initiative.

(h)

Duties of the Secretary

(1)

Additional duties

In addition to the normal administration of the programs described in subsection (b), the Secretary shall be responsible for basic administrative and oversight functions relating to the special projects and initiatives, including—

(A)

rules and procedures relating to conservation standards and specifications;

(B)

conservation compliance;

(C)

appeals;

(D)

adjusted gross income limitations;

(E)

direct attribution; and

(F)

such other similar functions as the Secretary might designate.

(2)

Flexibility

The Secretary may adjust eligibility criteria, approved practices, practice standards, innovative conservation practices, and other elements of the programs described in subsection (b) to better reflect unique local circumstances and purposes if the Secretary determines such adjustments would—

(A)

improve environmental enhancement and long-term sustainability of the natural resource base; and

(B)

be consistent with the purposes of the program and the special project and initiative.

(3)

Preferential enrollment

Subject to the limitations under subsection (j), the Secretary shall provide preferential enrollment to producers that are eligible—

(A)

for the applicable program described in subsection (b); and

(B)

to participate in the special project and initiative of an eligible partner.

(i)

Cost share

The Secretary shall not require more than 25 percent of the cost of a project or initiative supported under a grant or agreement entered into under this section to come from non-Federal sources. However, the Secretary may give higher priority to projects or initiatives offering to cover a higher percentage of the cost of the project or initiative from non-Federal sources.

(j)

Incentive and bonus payments

(1)

Availability

Applications submitted under subsection (d)(2) may include proposals for special incentive and bonus payments, consistent with the statutory purposes of the programs involved, to producers that—

(A)

restore land, water, or habitat as a community development asset; or

(B)

provide public access to enrolled land.

(2)

Criteria

The Secretary shall develop and publish criteria for providing special incentive or bonus payments to producers under paragraph (1).

(k)

Funding

(1)

Set-aside

Of the funds provided for each of fiscal years 2008 through 2012 to implement the programs specified in subsection (b), the Secretary shall reserve 10 percent to ensure an adequate source of funds for grants, agreements, financial assistance to producers under this section.

(2)

Allocation to states

The Secretary shall allocate to States 90 percent of the funds reserved under paragraph (1) for a fiscal year to allow State Conservationists, with the advice of State technical committees, to select projects and initiatives for funding under this section at the State level. The Secretary shall develop criteria for this allocation made on a similar basis as to the program priorities under subsection (f).

(3)

Unused funding

Any funds reserved for a fiscal year under paragraph (1) that are not obligated by April 1 of that fiscal year may be used to carry out other activities under conservation programs under subtitle D during the remainder of that fiscal year.

(4)

Administrative costs funding cap

Of the funds made available under this section for a particular project or initiative, not more than 5 percent may be expended by the eligible entity on the administrative costs of the project or initiative.

.

2404.

Regional equity and flexibility

Section 1241(d) of the Food Security Act of 1985 (16 U.S.C. 3841(d)) is amended by striking $12,000,000 and inserting $15,000,000.

2405.

Administrative requirements for conservation programs

(a)

Incentives for certain producers

Section 1244(a) of the Food Security Act of 1985 (16 U.S.C. 3844(a)) is amended—

(1)

in the subsection heading, by striking Beginning and inserting Incentives for certain;

(2)

by inserting , socially disadvantaged farmers and ranchers, limited resource farmers and ranchers, after beginning farmers and ranchers; and

(3)

by striking and limited resource agricultural producers.

(b)

Single, simplified application process for conservation programs

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844), as amended by section 2403, is amended by adding at the end the following new subsection:

(f)

Single, simplified application process

(1)

Establishment

In carrying out any of the conservation programs under this title administered by the Natural Resources Conservation Service, the Secretary shall establish and make available to producers and landowners a single, simplified application process to be used by producers and landowners in initially requesting assistance under such programs. The Secretary shall ensure that—

(A)

conservation program applicants are not required to provide information that duplicates information and resources already available to the Secretary regarding that applicant and for that specific operation; and

(B)

the application process is streamlined to minimize complexity and redundancy.

(2)

Review of application process

The Secretary shall review the conservation application process and the forms and related mechanisms used to receive assistance requests from producers and landowners. The purpose of the review shall be to determine what information the applicant is actually required to submit during the application process, including—

(A)

identification information for the applicant;

(B)

identification and location information for the land parcel or tract of concern;

(C)

a general statement of the applicant’s resource concern or concerns for the land parcel or tract; and

(D)

the minimum amount of other information the Secretary considers essential for the applicant to provide.

(3)

Revision and streamlining

The Secretary shall carry out a revision of the application forms and processes for conservation programs covered in this subsection to enable utilization of information technology as an avenue to incorporate appropriate data and information concerning the conservation needs and solutions appropriate for the land area identified by the applicant. The revision shall seek to streamline the application process to minimize the burden placed on the applicant.

(4)

Conservation program application

When the needs of an applicant are adequately assessed by the Secretary, directly or through a third-party provider under section 1242, in order to determine the conservation programs under this title that best match the needs of the applicant, with the approval of the applicant, the Secretary may convert the initial application into a specific application for assistance for a specific program. To the maximum extent practical, the specific application for conservation program assistance shall be carried out by the Secretary by requesting only that specific further information from the applicant that is not already available to the Secretary.

(5)

Implementation and notification

Not later than one year after the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Secretary shall complete the requirements of this subsection and shall submit to Congress a written notification of such completion.

.

2406.

Annual report on participation by specialty crop producers in conservation programs

(a)

Report required

Subtitle F of title XII of the Food Security Act of 1985 is amended by inserting after section 1251 (16 U.S.C. 2005a) the following new section:

1252.

Annual report on participation by specialty crop producers in conservation programs

(a)

Report required

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 an annual report that—

(1)

documents and analyzes the participation by producers of specialty crops in conservation programs under subtitle D, including the conservation security program and the environmental quality incentives program;

(2)

tracks such participation by crop and livestock type; and

(3)

describes the results of implementing the plan required by subsection (b), as well as any modifications to the plan that the Secretary finds necessary to increase its effectiveness.

(b)

Access plan

As part of each report submitted under subsection (a), the Secretary shall set forth a plan to improve the access of producers of specialty crops to, and their participation in, conservation programs under subtitle D. In developing the plan, the Secretary shall consult with organizations representing producers of specialty crops.

(c)

Specialty crop defined

In this section, the term specialty crop has the meaning given such term by section 3(1) of the Specialty Crops Competitiveness Act of 2004 (Public Law 108–465; 7 U.S.C. 1621 note).

.

(b)

Initial report

The first report required under section 1252 of the Food Security Act of 1985, as added by subsection (a), shall be submitted not later than 180 days after the date of the enactment of this Act. Subsection (a)(2) of such section shall not apply with respect to the first report.

2407.

Promotion of market-based approaches to conservation

(a)

Findings

Congress finds the following:

(1)

Many of the conservation and environmental benefits produced on farms, ranches, and private forest lands in the United States do not have an assigned value in the market place or lack a private market altogether.

(2)

While private markets for environmental goods and services are emerging, their viability has been hampered by several barriers.

(3)

The Federal Government can help overcome these barriers and promote the establishment of markets for agricultural and forestry conservation activities.

(4)

Generating substantial private-sector demand for environmental goods and services hinges on the ability to use environmental credits generated by agricultural and forest conservation activities.

(b)

Market-based approaches

Subtitle E of title XII of the Food Security Act of 1985 is amended by inserting after section 1244 (16 U.S.C. 3844) the following new section:

1245.

Market-based approaches to conservation

(a)

Implementation

To facilitate the development and effective operation of private sector market-based approaches for environmental goods and services produced by farmers, ranchers, and owners of private forest land, the Secretary may conduct research and analysis, enter into contracts and cooperative agreements, and award grants for the purpose of—

(1)

promoting the development of consistent standards and processes for quantifying environmental benefits, including the creation of performance standards or baselines;

(2)

promoting the establishment of reporting and credit registries, including third-party verification and certification; and

(3)

promoting actions that facilitate the development and functioning of private-sector market-based approaches for environmental goods and services involving agriculture and forestry.

(b)

Environmental services standards board

(1)

Establishment

There is to be established an Environmental Services Standards Board to develop consistent performance standards for quantifying environmental services from land management and agricultural activities in order to facilitate the development of credit markets for conservation and land management activities that are agriculture or forest based.

(2)

Chairperson

The Secretary of Agriculture shall serve as chair of the Environmental Services Standards Board.

(3)

Membership

The Environmental Services Standards Board shall be comprised of the Secretary of Agriculture, the Secretary of the Interior, the Secretary of Energy, the Secretary of Commerce, the Secretary of Transportation, the Administrator of the Environmental Protection Agency, the Commander of the Army Corps of Engineers, and such other representatives as determined by the President.

(4)

Subcommittees

The Environmental Services Standards Board may form subcommittees to address specific issues.

(c)

Dissemination of performance standards

Federal agencies are authorized to adopt performance standards developed by the Environmental Services Standards Board for quantifying environmental services that establish credits to meet requirements of environmental and conservation programs.

(d)

Funding

There is authorized to be appropriated $50,000,000 to carry out this section. Amounts so appropriated shall remain available until expended.

(e)

Definitions

In this section:

(1)

Baseline

The term baseline means a level of effort or performance that is expected to be met before an entity can generate marketable credits.

(2)

Performance standard

The term performance standard means a defined level of environmental performance, expressed as a narrative or measurable number, which specifies the minimum acceptable environmental performance of an operation or practice.

.

2408.

Establishment of State technical committees and their responsibilities

Subtitle G of title XII of the Farm Security Act of 1985 (16 U.S.C. 3861, 3862) is amended to read as follows:

G

State Technical Committees

1261.

Establishment of State technical committees

(a)

Establishment

The Secretary shall establish a technical committee in each State to assist the Secretary in the considerations relating to implementation and technical aspects of the conservation programs under this title.

(b)

Composition

Each State technical committee shall be composed of agricultural producers and other professionals that represent a variety of disciplines in the soil, water, wetland, and wildlife sciences. The technical committee for a State shall include representatives from among the following:

(1)

The Natural Resources Conservation Service.

(2)

The Farm Service Agency.

(3)

The Forest Service.

(4)

The Cooperative State Research, Education, and Extension Service.

(5)

The State fish and wildlife agency.

(6)

The State forester or equivalent State official.

(7)

The State water resources agency.

(8)

The State department of agriculture.

(9)

The State association of soil and water conservation districts.

(10)

At least 12 agricultural producers representing the variety of crops and livestock or poultry grown within the State.

(11)

Nonprofit organizations within the meaning of section 501(c)(2) of the Internal Revenue Code of 1986 with demonstrable conservation expertise and experience working with agriculture producers in the State.

(12)

Agribusiness.

(c)

Subcommittees

A State technical committee shall convene one or more subcommittees to provide technical guidance and implementation recommendations. The topics that a subcommittee shall address shall include, at a minimum, the following:

(1)

Establishing priorities and criteria for State initiatives under the programs in this title, including the review of whether local working groups are addressing those priorities.

(2)

Issues related to private forestlands protection and enhancement.

(3)

Issues related to water quality and water quantity.

(4)

In those States where applicable, issues related to air quality.

(5)

Issues related to wildlife habitat, including the protection of nesting wildlife.

(6)

Issues related to wetland protection, restoration, and mitigation requirements.

(7)

Other issues as the Secretary determines would be useful.

1262.

Responsibilities

(a)

In general

Each State technical committee established under section 1261 shall meet regularly to provide information, analysis, and recommendations to appropriate officials of the Department of Agriculture who are charged with implementing the conservation provisions of this title.

(b)

Public notice and attendance

Each State technical committee shall provide public notice of, and permit public attendance at, meetings considering issues of concern related to carrying out this title.

(c)

Advisory role

The role of a State technical committee is advisory in nature, and the committee shall have no implementation or enforcement authority. However, the Secretary shall give strong consideration to the recommendations of the committee in administering the programs under this title.

(d)

FACA requirements

Except as provided in subsection (b), a State technical committee, including any subcommittee of State technical committee, is exempt from the Federal Advisory Committee Act (5 U.S.C. App.).

.

2409.

Payment limitations

(a)

In general

The Food Security Act of 1985 is amended by inserting after section 1245, as added by section 2407, the following new section:

1246.

Payment limitations

(a)

Payments for conservation practices

The total amount of payments that a person or a legal entity (except a joint venture or a general partnership) may receive, directly or indirectly, in any fiscal year shall not exceed—

(1)

$60,000 from any single program under this title or as agricultural management assistance under section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 524(b)); or

(2)

$125,000 from more than one program under this title and as agricultural management assistance under section 524(b) of the Federal Crop Insurance Act.

(b)

Exceptions

The limitations under subsection (a) shall not apply with respect to the following:

(1)

The wetlands reserve program under subchapter C of chapter 1 of subtitle D.

(2)

The farm and ranchland protection program under subchapter B of chapter 2 of such subtitle.

(3)

The grassland reserve program under subchapter C of chapter 2 of such subtitle.

(c)

Direct attribution

(1)

In general

In implementing the payment limitations in subsection (a), 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 such payments.

(2)

Payments to a person

Every payment made directly to a person shall be combined with the person’s pro rata interest in payments received by a legal entity in which the person has a direct or indirect ownership interest.

(3)

Payments to a legal entity

(A)

In general

Every payment made to a legal entity shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity.

(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 subsection (a).

(ii)

Exception

Payments made to a joint venture or a general partnership shall not exceed, for each payment specified in subsection (a), the amount determined by multiplying the maximum payment amount specified in subsection (a) 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.

.

(b)

Conforming amendments

(1)

Existing payment limitations in conservation programs

Title XII of the Food Security Act of 1985 is amended—

(A)

in section 1234 (16 U.S.C. 3834) by striking subsection (f);

(B)

in section 1238C (16 U.S.C. 3838c), as amended by section 2103, by striking subsections (d) and (e); and

(C)

by striking section 1240G (16 U.S.C. 3839aa–7).

(2)

Agricultural management assistance

Section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 524) is amended by striking paragraph (3).

E

Miscellaneous Provisions

2501.

Inclusion of income from affiliated packing and handling operations as income derived from farming for application of adjusted gross income limitation on eligibility for conservation programs

Section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(b)(1)) is amended by inserting (including, for purposes of paragraph (2)(C), affiliated packing and handling operations) after derived from farming.

2502.

Encouragement of voluntary sustainability practices guidelines

In administering this title and the amendments made by this title, the Secretary of Agriculture may encourage the development of voluntary sustainable practices guidelines for producers and processors of specialty crops.

2503.

Farmland resource information

(a)

Development and dissemination of farmland resource information

The Secretary of Agriculture shall design and implement educational programs and materials emphasizing the importance of productive farmland to the Nation’s well-being and distribute educational materials through communications media, schools, groups, and other Federal agencies. The Secretary shall carry out this subsection through existing agencies or interagency groups and in cooperation with nonprofit organizations and the cooperative extension services of States.

(b)

Farmland information centers

The Secretary shall designate 1 or more farmland information centers to provide technical assistance and serve as central depositories and distribution points for information on farmland issues. Information provided by a center shall include online access to data on land cover and use changes and trends and literature, laws, historical archives, policies, programs, and innovative actions or proposals by local and State governments or nonprofit organizations related to farmland protection.

(c)

Funding

Funds for the farmland information centers designated under subsection (b) shall be provided using funds made available for the farm and ranchland protection program established under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.). Such funding for a fiscal year shall not exceed one-half of 1 percent of the funds made available for the farm and ranchland protection program for that fiscal year, but no less than $400,000 annually.

(d)

Matching funds

Federal funding for a farmland information center designated under subsection (b) shall be matched with non-Federal funds, through cash or in-kind contributions.

III

Trade

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.

Sec. 3002. Export credit guarantee program.

Sec. 3003. Market access program.

Sec. 3004. Food for Progress Act of 1985.

Sec. 3005. McGovern-Dole International Food for Education and Child Nutrition program.

Sec. 3006. Bill Emerson Humanitarian Trust.

Sec. 3007. Technical assistance for specialty crops.

Sec. 3008. Technical assistance for the resolution of trade disputes.

Sec. 3009. Representation by the United States at international standard-setting bodies.

Sec. 3010. Foreign market development cooperator program.

Sec. 3011. Emerging markets.

Sec. 3012. Export Enhancement Program.

Sec. 3013. Minimum level of nonemergency food assistance.

Sec. 3014. Germplasm conservation.

3001.

Agricultural Trade Development and Assistance Act of 1954

(a)

Purpose of program

Section 201 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1721) is amended so that paragraph (1) reads as follows:

(1)

address famine and food crises and respond to emergency food needs arising from manmade disasters, and natural disasters.

.

(b)

Support for eligible organizations

Section 202(e)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1722(e)(1)) is amended—

(1)

by striking not less than 5 percent nor more than 10 percent of the funds and inserting not less than 7 percent nor more than 12 percent of the funds;

(2)

striking and at the end of subparagraph (A);

(3)

striking the period at the end of subparagraph (B) and inserting ; and; and

(4)

inserting after subparagraph (B) the following:

(C)

developing, implementing and improving monitoring systems of programs receiving funds under this title.

.

(c)

Generation and use of currencies by private voluntary organizations and cooperatives

Subsection (b) of section 203 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1723) is amended by striking 1 or more recipient countries and inserting in 1 or more recipient countries.

(d)

Levels of assistance

Section 204(a) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended—

(1)

in paragraph (1) by striking 2002 through 2007 and inserting 2008 through 2012; and

(2)

in paragraph (2) by striking 2002 through 2007 and inserting 2008 through 2012.

(e)

Food Aid Consultative Group

Section 205(f) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by striking 2007 and inserting 2012.

(f)

Denial of proposals

Paragraph (3) of section 207(a) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a(a)) is amended to read as follows:

(3)

Denial

If a proposal under paragraph (1) is denied, the response shall specify the reasons for denial.

.

(g)

Program oversight, monitoring, and evaluation

Section 207 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended by adding at the end the following:

(f)

Program oversight, monitoring, and evaluation

(1)

In general

The Administrator, in consultation with the Secretary, shall establish systems to improve, monitor, and evaluate the effectiveness and efficiency of assistance provided under this title in order to maximize the impact of such assistance. Such systems shall include the following:

(A)

program monitors in countries receiving assistance under this title;

(B)

country and regional food aid impact evaluations;

(C)

evaluations of best practices for food aid programs;

(D)

evaluation of monetization programs;

(E)

early warning assessments to prevent famines; and

(F)

upgraded information technology systems.

(2)

Implementation report

Not later than 180 days after the date of enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Administrator shall submit to the appropriate congressional committees a report on efforts undertaken to implement (1).

(3)

Annual report

Not later than February 1 of each year, the Administrator shall submit to the appropriate congressional committees a report assessing the systems implemented under paragraph (1) and their impact on the effectiveness and efficiency of assistance provided under this title.

(4)

Funding

In addition to other funds made available for the Administrator to perform monitoring of emergency food assistance, the Administrator may implement this subsection using up to $15,000,000 of funds made available under this title for each of the fiscal years 2008 through 2012, except for paragraph (1)(F), for which only $2,500,000 shall be made available during fiscal year 2008.

.

(h)

Shelf-Stable Prepackaged Foods

Section 208(f) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended—

(1)

by striking 2007 and insert 2012; and

(2)

by striking $3,000,000 and inserting $7,000,000

(i)

Prepositioning

Section 407(c)(4) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended—

(1)

by striking 2007 and inserting 2012; and

(2)

by striking $2,000,000 and inserting $8,000,000.

(j)

Annual reports

Section 407(f) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a(f)) is amended—

(1)

in paragraph (2)—

(A)

in subparagraph (B), by adding at the end before the semicolon the following: , and the amount of funds, tonnage levels, and types of activities for non-emergency food assistance programs under title II of this Act;

(B)

in subparagraph (C), by adding at the end before the semicolon the following: , and a general description of the projects and activities implemented; and

(C)

so that subparagraph (D) reads as follows:

(D)

an assessment of the progress toward reducing food insecurity in the populations receiving food assistance from the United States.

; and

(2)

in paragraph (3), by striking January 15 and inserting March 1.

(k)

Expiration of Assistance

Section 408 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is amended by striking 2007 and inserting 2012.

(l)

Micronutrient fortification program

Section 415(d) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g–2) is amended by striking 2007 and inserting 2012.

(m)

John Ogonowski and Doug Bereuter Farmer-to-Farmer Program

(1)

Minimum funding

Section 501(d) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(d)) is amended—

(A)

by inserting or $10,000,000, whichever amount is greater, after not less than 0.5 percent; and

(B)

by striking 2002 through 2007 and inserting 2008 through 2012.

(2)

Authorization of appropriations

Section 501(e) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(e)) is amended by striking paragraph (1) and inserting the following new paragraph:

(1)

In general

To carry out programs under this section, there is authorized to be appropriated for each of fiscal years 2008 through 2012 the following amounts:

(A)

$10,000,000 for sub-Saharan African and Caribbean Basin countries.

(B)

$5,000,000 for all other countries not included in subparagraph (A).

.

(n)

References to committee

The Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended by striking Committee on International Relations each place it appears and inserting Committee on Foreign Affairs.

3002.

Export credit guarantee program

(a)

Repeal of supplier credit guarantee program and intermediate export credit guarantee program

(1)

Repeals

Section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended—

(A)

in subsection (a)—

(i)

in paragraph (1), by striking (1) and all that follows through The Commodity and inserting The Commodity; and

(ii)

by striking paragraphs (2) and (3);

(B)

by striking subsections (b) and (c); and

(C)

by redesignating subsections (d) through (l) as subsections (b) through (j), respectively.

(2)

Conforming amendments

The Agricultural Trade Act of 1978 is amended—

(A)

in section 202 (7 U.S.C. 5622)—

(i)

in subsection (b)(4) (as redesignated by paragraph (1)(C)), by striking , consistent with the provisions of subsection (c);

(ii)

in subsection (d) (as redesignated by paragraph (1)(C))—

(I)

by striking (1) and all that follows through The Commodity and inserting The Commodity; and

(II)

by striking paragraph (2); and

(iii)

in subsection (g)(2) (as redesignated by paragraph (1)(C)), by striking subsections (a) and (b) and inserting subsection (a); and

(B)

in section 211 (7 U.S.C. 5641), by striking subsection (b) and inserting the following:

(b)

Export credit guarantee programs

(1)

The Commodity Credit Corporation shall make available for each of fiscal years 2008 through 2012 not less than $5,500,000,000 in credit guarantees under section 202(a).

(2)

Section 202(k)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by striking 2007 and inserting 2012.

.

3003.

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, and $225,000,000 for each of fiscal years 2008 through 2012.

(c)

Availability of funds for activities to develop, maintain, or expand foreign markets for leaf tobacco

Section 1302(b)(3) of the Agricultural Reconciliation Act of 1993 (7 U.S.C. 5623 note) is amended by inserting , other than leaf tobacco after tobacco.

3004.

Food for Progress Act of 1985

The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking 2007 each place it appears and inserting 2012.

3005.

McGovern-Dole International Food for Education and Child Nutrition program

Section 3107(l)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)(2)) is amended by striking 2007 and inserting 2012.

3006.

Bill Emerson Humanitarian Trust

Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1) is amended by striking 2007 each place it appears in subsection (b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h) and inserting 2012.

3007.

Technical assistance for specialty crops

Section 3205 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680) is amended so that subsection (d) reads as follows:

(d)

Funding

(1)

Commodity credit corporation

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

(2)

Funding amount

The Secretary shall use the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation to carry out this section —

(A)

$4,000,000 for fiscal year 2008;

(B)

$6,000,000 for fiscal year 2009;

(C)

$8,000,000 for fiscal year 2010;

(D)

$10,000,000 for each of fiscal years 2011 through 2012.

.

3008.

Technical assistance for the resolution of trade disputes

(a)

In general

The Secretary of Agriculture may provide monitoring, analytic support, and other technical assistance to limited resource persons and organizations associated with agricultural trade (as determined by the Secretary) to address unfair trade practices of foreign countries and to reduce trade barriers.

(b)

Authorization of appropriations

There are authorized such sums as necessary to carry out subsection (a).

3009.

Representation by the United States at international standard-setting bodies

(a)

In general

Pursuant to the authority of the Secretary provided by section 1458(a)(3) of the Food and Agriculture Act of 1977 (7 U.S.C. 3291(a)(3)), the Secretary is authorized to enhance United States support for international organizations, including the Food and Agriculture Organization, the Codex Alimentarius Commission, the International Plant Protection Convention, and the World Organization for Animal Health, that establish international standards regarding food, food safety, plants, and animals, respectively, by funding additional positions of Associate Professional Officers to address sanitary and phytosanitary priorities of the United States within applicable international organizations.

(b)

Authorization of appropriations

There are authorized to be appropriated such sums as necessary to carry out this section for each of fiscal years 2007-2012.

3010.

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 2007 and inserting 2012.

3011.

Emerging markets

The Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101–624) is amended in each of subsections (a) and (d)(1)(A)(i) by striking “2007” and inserting “2012.

3012.

Export Enhancement Program

Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by striking 2007 and inserting 2012.

3013.

Minimum level of nonemergency food assistance

Section 412 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f) is amended by inserting at the end the following new subsection:

(e)

Minimum level of nonemergency food assistance

(1)

Funds

Of the amounts made available to carry out emergency and nonemergency food assistance programs under title II, not less than $450,000,000 for each of fiscal years 2008 through 2012 shall be expended for nonemergency food assistance programs under title II.

(2)

Exception

The Administrator may use less than the amount specified in paragraph (1) for a fiscal year for nonemergency food assistance programs under title II if—

(A)

the Administrator submits to the Committees on International Relations, Agriculture, and Appropriations of the House of Representatives and the Committees on Appropriations and Agriculture, Nutrition, and Forestry of the Senate a report requesting the reduction and containing the reasons for the reduction; and

(B)

following submission of the report, Congress enacts a law approving the Administrator’s request.

.

3014.

Germplasm conservation

(a)

Contribution

The Administrator of the United States Agency for International Development shall contribute funds to endow the Global Crop Diversity Trust (in this section referred to as the Trust) to assist in the conservation of genetic diversity in food crops through the collection and storage of the germplasm of such 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 (for example, through the provision of an accessible Internet site);

(5)

the operation and maintenance of a back-up facility wherein is stored duplicate samples of seeds, as a hedge against natural or man-made disasters; and

(6)

oversight designed to ensure international coordination of these actions and efficient, public accessibility to this diversity through a cost-effective system.

(b)

United States contribution limit

The aggregate contributions of United States Government funds provided to the Trust shall not exceed 25 percent of the total of the funds contributed to the Trust from all sources.

(c)

Authorization

There are authorized to be appropriated to carry out this section a total of $60,000,000 over the period of fiscal year 2008 through fiscal year 2012.

IV

NUTRITION PROGRAMS

Subtitle A—Food Stamp Program

Sec. 4001. Renaming the food stamp program.

Sec. 4002. Definition of drug addiction or alcoholic treatment and rehabilitation program.

Sec. 4003. Nutrition education.

Sec. 4004. Food distribution on Indian reservations.

Sec. 4005. Deobligate food stamp coupons.

Sec. 4006. Allow for the accrual of benefits.

Sec. 4007. State option for telephonic signature.

Sec. 4008. Review of major changes in program design.

Sec. 4009. Grants for simple application and eligibility determination systems and improved access to benefits.

Sec. 4010. Civil money penalties and disqualification of retail food stores and wholesale food concerns.

Sec. 4011. Major systems failures.

Sec. 4012. Funding of employment and training programs.

Sec. 4013. Reductions in payments for administrative costs.

Sec. 4014. Cash payment pilot projects.

Sec. 4015. Findings of Congress regarding Secure Supplemental Nutrition Assistance program nutrition education.

Sec. 4016. Nutrition education and promotion initiative to address obesity.

Sec. 4017. Authorization of appropriations.

Sec. 4018. Consolidated block grants for Puerto Rico and American Samoa.

Sec. 4019. Study on comparable access to Secure Supplemental Nutrition Assistance Program benefits for Puerto Rico.

Sec. 4020. Reauthorization of community food project competitive grants.

Sec. 4021. Emergency food assistance.

Subtitle B—Commodity Distribution

Sec. 4201. Authorization of appropriations.

Sec. 4202. Distribution of surplus commodities; special nutrition projects.

Sec. 4203. Commodity distribution program.

Subtitle C—Child Nutrition and Related Programs

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to schools and service institutions.

Sec. 4302. Buy American requirements.

Sec. 4303. Expansion of fresh fruit and vegetable program.

Sec. 4304. Purchases of locally produced foods.

Subtitle D—Miscellaneous

Sec. 4401. Seniors farmers’ market nutrition program.

Sec. 4402. Congressional Hunger Center.

Sec. 4403. Joint nutrition monitoring and related research activities.

A

Food Stamp Program

4001.

Renaming the food stamp program

(a)

Amendments to the Food Stamp Act of 1977

(1)

References amended

The provisions of the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq,)—

(A)

specified in paragraph (2)(A) are amended in the section heading by striking food stamp each place it appears and inserting Secure Supplemental Nutrition Assistance;

(B)

specified in paragraph (2)(B) are amended in the subsection heading by striking food stamp each place it appears and inserting Secure Supplemental Nutrition Assistance;

(C)

specified in paragraph (2)(C) are amended by striking each place it appears food stamp recipient and inserting member of a household that receives Secure Supplemental Nutrition Assistance Program benefits,

(D)

specified in paragraph (2)(D) are amended by striking food stamp recipients each place it appears and inserting members of households that receive Secure Supplemental Nutrition Assistance Program benefits,

(E)

specified in paragraph (2)(E) are amended by striking food stamp households each place it appears and inserting households that receive Secure Supplemental Nutrition Assistance Program benefits;

(F)

specified in paragraph (2)(F) are amended by striking Simplified Food Stamp Program each place it appears and inserting Simplified Secure Supplemental Nutrition Assistance Program;

(G)

specified in paragraph (2)(H) are amended by striking food stamp participants each place it appears and inserting participants in the Secure Supplemental Nutrition Assistance Program;

(H)

specified in paragraph (2)(I) are amended by striking food stamp informational activities each place it appears and inserting informational activities relating to the Secure Supplemental Nutrition Assistance Program;

(I)

specified in paragraph (2)(J) are amended by striking food stamp caseload each place it appears and inserting caseload under the Secure Supplemental Nutrition Assistance Program;

(J)

specified in paragraph (2)(K) are amended by striking State’s food stamp households each place it appears and inserting the number of households in the State receiving Secure Supplemental Nutrition Assistance Program benefits;

(K)

specified in paragraph (2)(L) are amended in the section heading by striking food stamp portion each place it appears and inserting Secure Supplemental Nutrition Assistance Program benefits;

(L)

specified in paragraph (2)(M) are amended by striking food stamps each place it appears and inserting Secure Supplemental Assistance Nutrition Program benefits;

(M)

specified in paragraph (2)(N) are amended by striking Food stamp program each place it appears and inserting Secure Supplemental Nutrition Assistance Program;

(N)

specified in paragraph (2)(o) are amended by striking food stamp program benefits each place it appears and inserting Secure Supplemental Nutrition Program benefits; and

(O)

specified in paragraph (2)(O) are amended by striking food stamp program each place it appears and inserting Secure Supplemental Nutrition Assistance Nutrition Program.

(2)

Provisions referred to

The provisions of the of the Food Stamp Act of 1977 referred to in paragraph (1) are the following:

(A)

Sections 4 and 26.

(B)

Section 6(j).

(C)

Section 6(o)(6)(A)(ii).

(D)
(i)

Subparagraphs (D) and (E) of section 6(o)(6);

(ii)

sections 16(h)(1)(E)(i) and 12(a); and

(iii)

paragraphs (1)(B)(ii)(II) and (3)(B) of section 17(b).

(E)

Sections 7(h)(3)(B)(ii), 9(b)(1), 12(a), and 17(b)(1)(B)(ii)(I).

(F)

Sections 11(e)(25) and 26(b).

(G)

Section 11(f)(2)(B).

(H)

Section 16(a).

(I)

Section 16(e)(9)(C).

(J)

Section 17(b)(1)(B)(iii)(I).

(K)

Section 22.

(L)
(i)

Subsections (d)(3) and (o)(6)(A)(i) of section 6;

(i)

paragraphs (2)(B)(v)(II) and (14) of section 11(e);and

(i)

sections 12(e)(16), 17(b)(3)(C), and 18(a)(3)(A)(ii).

(M)

Section 3(h)

(N)
(i)

In section 6—

(I)

subsection (h); and

(II)

in subsection (o)—

(aa)

paragraph (2); and

(bb)

subclauses (IV) and (V) of paragraph (6)(A)(ii).

(ii)

Section 7(k)(2).

(iii)

In section 11—

(I)

subsection (e)(25)(A);

(II)

paragraphs (1), (2), and (3) of subsection (s); and

(III)

subsection (t)(1)(B).

(iv)

In section 17—

(I)

subsection (a)(2);

(II)

paragraphs (1)(A), (2), and (3)(D) of subsection (b);

(III)

paragraphs (1)(B), (2)(C)(ii), and (3)(E) of subsection (d); and

(IV)

subsections (e) and (f).

(v)

Section 21(d)(3).

(O)
(i)

Sections 2, 3(h), and 4.

(ii)

In section 5—

(I)

subsections (a), (b), (c), and (d);

(II)

clauses (ii)(III) and (iv)(IV) of subsection (e)(6)(C);

(III)

paragraphs (1), (3), and (6)(B)(iv) of subsection (g); and

(IV)

subsections (h)(2)(A) and (k)(4)(B).

(iii)

In section 6—

(I)

subsections (a) and (b);

(II)

in subsection (d)(1)—

(aa)

subparagraphs (A) and (B);

(bb)

clauses (i), (ii), and (iii) of subparagraph (C); and

(cc)

clauses (v) and (vi) of subparagraph (D);

(III)

paragraphs (2)(C), (3), and (4)(A)(i) of subsection (d);

(IV)

subsections (e), (f), and (h);

(V)

paragraphs (1) and (2) of subsection (i); and

(VI)

subsections (j), (k), (l)(1), (m)(1), (n), (o)(5)(A);

(iv)

In section 7—

(I)

subsections (a), (b), and (g);

(II)

paragraphs (1) and (2)(B) of subsection (j); and

(III)

in subsection (k)—

(aa)

paragraph (3); and

(bb)

subparagraphs (B)(ii) and (C) of paragraph (4).

(v)

In section 8—

(I)

subsections (a), (c)(2), and (d)(2);

(II)

in subsection (f)—

(aa)

clauses (i)(II)(aa), (ii)(I), and (iv) of paragraph (1)(D), and

(bb)

paragraph (3)(B)(ii)(II)(bb).

(vi)

In section 9—

(I)

paragraphs (1) and (3) of subsection (a); and

(II)

subsections (b)(1), (d), (e), and (g).

(vii)

In section 11—

(I)

subsections (c) and (d);

(II)

in subsection (e)—

(aa)

paragraph (1)(A);

(bb)

clauses (i) and (iv) of paragraph (2)(B); and

(cc)

paragraphs (10), (17), (20)(B), and (22);

(III)

subsections (f)(1), (g), (i), and (j)(1);

(IV)

paragraphs (1), (2), (3), and (4) of subsection (o);

(V)

subsections (p) and (q); and

(VI)

paragraphs (2)(A) and (B)(4)(A) of subsection (t).

(viii)

Sections 12(a) and 14(a)(1).

(ix)

Subsections (b)(1) and (c) of section 15.

(x)

In section 16—

(I)

subsection (a);

(II)

paragraph (1), (2), and (3) of subsection (b);

(III)

in subsection (c)—

(aa)

the matter preceding subparagraph (A);

(bb)

subparagraphs (D)(i)(II) and (F)(iii)(I) of paragraph (1); and

(cc)

subparagraphs (A), (B), and (C) of paragraph (9);

(IV)

subsections (e), (g), and (i)(1); and

(V)

in subsection (k)—

(aa)

subparagraphs (A) and (B) of paragraph (2);

(bb)

subparagraphs (A) and (B)(i) of paragraph (3); and

(cc)

subparagraphs (A)(ii) and (B)(iv)(II) of paragraph (5).

(xi)

In section 17—

(I)

subsection (a)(1);

(II)

in subsection (b)—

(aa)

subparagraphs (A) and (B)(i) of paragraph (1); and

(bb)

subparagraph (2);

(III)

subsection (c);

(IV)

subparagraphs (A) and (C) of subsection (d) (2); and

(V)

subsections (e), (g), and (h)(2).

(xii)

Subsections (a)(3)(D), (b), (d), and (e) of section 18.

(xiii)

Subsections (a)(1) and (f) of section 20.

(xiv)

In section 21—

(I)

subsection (a);

(II)

in subsection (b)—

(aa)

in paragraph (2)—

(AA)

clause (i) and (ii) of subparagraph (A);

(BB)

subparagraphs (B) and (C)(i);

(CC)

clause (ii), and subclauses (II), (III), and (IV) of clause (iii), of subparagraph (F); and

(DD)

subparagraph (G)(i);

(bb)

paragraph (3);

(cc)

in paragraph (4)—

(AA)

subparagraphs (A) and (B); and

(BB)

the flush text at the end;

(dd)

paragraphs (5) and (7);

(III)

subsection (C)(2)(B);

(IV)

paragraphs (1)(A), (2), and (3) of subsection (d); and

(V)

paragraphs (1) and (2) of subsection (f).

(xv)

In section 22—

(I)

subsection (a)(1);

(II)

in subsection (b)—

(aa)

paragraph (2);

(bb)

in paragraph (3)—

(AA)

subparagraphs (A) and (B)(ii);

(BB)

clauses (ii) and (iii) of subparagraph (C);

(CC)

subparagraph (D)(ii); and

(DD)

clauses (i), (ii), and (iv) of subparagraph (E);

(cc)

paragraph (5);

(dd)

subparagraphs (B) and (C) of paragraph (6);

(ee)

subparagraphs (A) and (B) of paragraph (7);

(ff)

paragraphs (8) and (9);

(gg)

in paragraph (10)—

(AA)

subparagraph (A)

(BB)

clauses (i) and (ii) of subparagraph (B); and

(CC)

subparagraph (C); and

(hh)

paragraphs (11), (12), and (13);

(III)

in subsection (d)—

(aa)

paragraph (1)(B)(i); and

(bb)

paragraph (3); and

(IV)

subsections (g)1 and (h).

(xvi)

Section 23(c).

(xvii)

In section 26—

(I)

subparagraphs (B) and (C) of subsection (c)(4); and

(II)

subsection (f)(1).

(b)

References in other laws, document, and records of the United States

In any