H.R. 6083 (112th): Federal Agriculture Reform and Risk Management Act of 2012

112th Congress, 2011–2013. Text as of Sep 13, 2012 (Reported by House Committee).

Status & Summary | PDF | Source: GPO

IB

Union Calendar No. 481

112th CONGRESS

2d Session

H. R. 6083

[Report No. 112–669]

IN THE HOUSE OF REPRESENTATIVES

July 9, 2012

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

September 13, 2012

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

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

For text of introduced bill, see copy of bill as introduced on July 9, 2012


A BILL

To provide for the reform and continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2017, and for other purposes.


1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Federal Agriculture Reform and Risk Management Act of 2012.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary of Agriculture.

Title I—Commodities

Subtitle A—Repeals and reforms

Sec. 1101. Repeal of direct payments.

Sec. 1102. Repeal of counter-cyclical payments.

Sec. 1103. Repeal of average crop revenue election program.

Sec. 1104. Definitions.

Sec. 1105. Base acres.

Sec. 1106. Payment yields.

Sec. 1107. Farm risk management election.

Sec. 1108. Producer agreements.

Sec. 1109. Period of effectiveness.

Subtitle B—Marketing loans

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

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

Sec. 1203. Term of loans.

Sec. 1204. Repayment of loans.

Sec. 1205. Loan deficiency payments.

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

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

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

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

Sec. 1210. Adjustments of loans.

Subtitle C—Sugar

Sec. 1301. Sugar program.

Subtitle D—Dairy

Part I—Dairy producer margin protection and dairy market stabilization programs

Sec. 1401. Definitions.

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

Subpart A—Dairy producer margin protection program

Sec. 1411. Establishment of dairy producer margin protection program.

Sec. 1412. Participation of dairy producers in margin protection program.

Sec. 1413. Production history of participating dairy producers.

Sec. 1414. Basic margin protection.

Sec. 1415. Supplemental margin protection.

Sec. 1416. Effect of failure to pay administrative fees or premiums.

Subpart B—Dairy Market Stabilization Program

Sec. 1431. Establishment of dairy market stabilization program.

Sec. 1432. Threshold for implementation and reduction in dairy producer payments.

Sec. 1433. Producer milk marketing information.

Sec. 1434. Calculation and collection of reduced dairy producer payments.

Sec. 1435. Remitting monies to the Secretary and use of monies.

Sec. 1436. Suspension of reduced payment requirement.

Sec. 1437. Enforcement.

Sec. 1438. Audit requirements.

Subpart C—Commodity Credit Corporation

Sec. 1451. Use of Commodity Credit Corporation.

Subpart D—Initiation and duration

Sec. 1461. Rulemaking.

Sec. 1462. Duration.

Part II—Repeal or reauthorization of other dairy-related provisions

Sec. 1481. Repeal of dairy product price support and milk income loss contract programs.

Sec. 1482. Repeal of dairy export incentive program.

Sec. 1483. Extension of dairy forward pricing program.

Sec. 1484. Extension of dairy indemnity program.

Sec. 1485. Extension of dairy promotion and research program.

Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission.

Part III—Effective date

Sec. 1491. Effective date.

Subtitle E—Supplemental Agricultural Disaster Assistance Programs

Sec. 1501. Supplemental agricultural disaster assistance.

Subtitle F—Administration

Sec. 1601. Administration generally.

Sec. 1602. Suspension of permanent price support authority.

Sec. 1603. Payment limitations.

Sec. 1604. Adjusted gross income limitation.

Sec. 1605. Geographically disadvantaged farmers and ranchers.

Sec. 1606. Personal liability of producers for deficiencies.

Sec. 1607. Prevention of deceased individuals receiving payments under farm commodity programs.

Sec. 1608. Technical corrections.

Sec. 1609. Assignment of payments.

Sec. 1610. Tracking of benefits.

Sec. 1611. Signature authority.

Sec. 1612. Implementation.

Title II—Conservation

Subtitle A—Conservation Reserve Program

Sec. 2001. Extension and enrollment requirements of conservation reserve program.

Sec. 2002. Farmable wetland program.

Sec. 2003. Duties of owners and operators.

Sec. 2004. Duties of the Secretary.

Sec. 2005. Payments.

Sec. 2006. Contract requirements.

Sec. 2007. Conversion of land subject to contract to other conserving uses.

Sec. 2008. Effective date.

Subtitle B—Conservation Stewardship Program

Sec. 2101. Conservation stewardship program.

Subtitle C—Environmental Quality Incentives Program

Sec. 2201. Purposes.

Sec. 2202. Establishment and administration.

Sec. 2203. Evaluation of applications.

Sec. 2204. Duties of producers.

Sec. 2205. Limitation on payments.

Sec. 2206. Conservation innovation grants and payments.

Sec. 2207. Effective date.

Subtitle D—Agricultural Conservation Easement Program

Sec. 2301. Agricultural conservation easement program.

Subtitle E—Regional Conservation Partnership Program

Sec. 2401. Regional conservation partnership program.

Subtitle F—Other Conservation Programs

Sec. 2501. Conservation of private grazing land.

Sec. 2502. Grassroots source water protection program.

Sec. 2503. Voluntary public access and habitat incentive program.

Sec. 2504. Agriculture conservation experienced services program.

Sec. 2505. Small watershed rehabilitation program.

Sec. 2506. Agricultural management assistance program.

Subtitle G—Funding and Administration

Sec. 2601. Funding.

Sec. 2602. Technical assistance.

Sec. 2603. Regional equity.

Sec. 2604. Reservation of funds to provide assistance to certain farmers or ranchers for conservation access.

Sec. 2605. Annual report on program enrollments and assistance.

Sec. 2606. Review of conservation practice standards.

Sec. 2607. Administrative requirements applicable to all conservation programs.

Sec. 2608. Standards for State technical committees.

Sec. 2609. Rulemaking authority.

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

Sec. 2701. Comprehensive conservation enhancement program.

Sec. 2702. Emergency forestry conservation reserve program.

Sec. 2703. Wetlands reserve program.

Sec. 2704. Farmland protection program and farm viability program.

Sec. 2705. Grassland reserve program.

Sec. 2706. Agricultural water enhancement program.

Sec. 2707. Wildlife habitat incentive program.

Sec. 2708. Great Lakes basin program.

Sec. 2709. Chesapeake Bay watershed program.

Sec. 2710. Cooperative conservation partnership initiative.

Sec. 2711. Environmental easement program.

Sec. 2712. Technical amendments.

Title III—Trade

Subtitle A—Food for Peace Act

Sec. 3001. General authority.

Sec. 3002. Support for organizations through which assistance is provided.

Sec. 3003. Food aid quality.

Sec. 3004. Minimum levels of assistance.

Sec. 3005. Food Aid Consultative Group.

Sec. 3006. Oversight, monitoring, and evaluation.

Sec. 3007. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods.

Sec. 3008. General provisions.

Sec. 3009. Prepositioning of agricultural commodities.

Sec. 3010. Annual report regarding food aid programs and activities.

Sec. 3011. Deadline for agreements to finance sales or to provide other assistance.

Sec. 3012. Authorization of appropriations.

Sec. 3013. Micronutrient fortification programs.

Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

Subtitle B—Agricultural Trade Act of 1978

Sec. 3101. Funding for export credit guarantee program.

Sec. 3102. Funding for market access program.

Sec. 3103. Foreign market development cooperator program.

Subtitle C—Other Agricultural Trade Laws

Sec. 3201. Food for Progress Act of 1985.

Sec. 3202. Bill Emerson Humanitarian Trust.

Sec. 3203. Promotion of agricultural exports to emerging markets.

Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition Program.

Sec. 3205. Technical assistance for specialty crops.

Sec. 3206. Global Crop Diversity Trust.

Sec. 3207. Under Secretary of Agriculture for Foreign Agricultural Services.

Title IV—Nutrition

Subtitle A—Supplemental nutrition assistance program

Sec. 4001. Retailers.

Sec. 4002. Enhancing services to elderly and disabled supplemental nutrition assistance program recipients.

Sec. 4003. Food distribution program on Indian reservations.

Sec. 4004. Updating program eligibility.

Sec. 4005. Exclusion of medical marijuana from excess medical expense deduction.

Sec. 4006. Standard utility allowances based on the receipt of energy assistance payments.

Sec. 4007. Eligibility disqualifications.

Sec. 4008. Ending supplemental nutrition assistance program benefits for lottery or gambling winners.

Sec. 4009. Improving security of food assistance.

Sec. 4010. Demonstration projects on acceptance of benefits of mobile transactions.

Sec. 4011. Use of benefits for purchase of community-supported agriculture share.

Sec. 4012. Restaurant meals program.

Sec. 4013. State verification option.

Sec. 4014. Repeal of grant program.

Sec. 4015. Data exchange standardization for improved interoperability.

Sec. 4016. Repeal of bonus program.

Sec. 4017. Funding of employment and training programs.

Sec. 4018. Monitoring employment and training program.

Sec. 4019. Cooperation with program research and evaluation.

Sec. 4020. Authorization of appropriations.

Sec. 4021. Limitation on use of block grant to Puerto Rico.

Sec. 4022. Assistance for community food projects.

Sec. 4023. Emergency food assistance.

Sec. 4024. Nutrition education.

Sec. 4025. Retailer trafficking.

Sec. 4026. Technical and conforming amendments.

Sec. 4027. Tolerance level for excluding small errors.

Sec. 4028. Commonwealth of the Northern Mariana Islands pilot program.

Sec. 4029. Annual State report on verification of SNAP participation.

Subtitle B—Commodity distribution programs

Sec. 4101. Commodity distribution program.

Sec. 4102. Commodity supplemental food program.

Sec. 4103. Distribution of surplus commodities to special nutrition projects.

Sec. 4104. Processing of commodities.

Subtitle C—Miscellaneous

Sec. 4201. Farmers’ market nutrition program.

Sec. 4202. Nutrition information and awareness pilot program.

Sec. 4203. Fresh fruit and vegetable program.

Sec. 4204. Additional authority for purchase of fresh fruits, vegetables, and other specialty food crops.

Sec. 4205. Encouraging locally and regionally grown and raised food.

Title V—Credit

Subtitle A—Farm ownership loans

Sec. 5001. Eligibility for farm ownership loans.

Sec. 5002. Conservation loan and loan guarantee program.

Sec. 5003. Down payment loan program.

Sec. 5004. Elimination of mineral rights appraisal requirement.

Subtitle B—Operating loans

Sec. 5101. Eligibility for farm operating loans.

Sec. 5102. Elimination of rural residency requirement for operating loans to youth.

Sec. 5103. Authority to waive personal liability for youth loans due to circumstances beyond borrower control.

Sec. 5104. Microloans.

Subtitle C—Emergency loans

Sec. 5201. Eligibility for emergency loans.

Subtitle D—Administrative provisions

Sec. 5301. Beginning farmer and rancher individual development accounts pilot program.

Sec. 5302. Eligible beginning farmers and ranchers.

Sec. 5303. Loan authorization levels.

Sec. 5304. Priority for participation loans.

Sec. 5305. Loan fund set-asides.

Sec. 5306. Conforming amendment to borrower training provision, relating to eligibility changes.

Subtitle E—State agricultural mediation programs

Sec. 5401. State agricultural mediation programs.

Subtitle F—Loans to purchasers of highly fractionated land

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

Title VI—Rural development

Subtitle A—Consolidated Farm and Rural Development Act

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

Sec. 6002. Rural business opportunity grants.

Sec. 6003. Elimination of reservation of community facilities grant program funds.

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

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

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

Sec. 6007. Grants to nonprofit organizations to finance the construction, refurbishing, and servicing of individually-owned household water well systems in rural areas for individuals with low or moderate incomes.

Sec. 6008. Rural business and industry loan program.

Sec. 6009. Rural cooperative development grants.

Sec. 6010. Locally or regionally produced agricultural food products.

Sec. 6011. Intermediary relending program.

Sec. 6012. Enhancing public/private partnerships to support rural water and waste disposal infrastructure.

Sec. 6013. Simplified applications.

Sec. 6014. Reauthorization of State rural development councils.

Sec. 6015. Grants for NOAA weather radio transmitters.

Sec. 6016. Rural microentrepreneur assistance program.

Sec. 6017. Delta Regional Authority.

Sec. 6018. Northern Great Plains Regional Authority.

Sec. 6019. Rural business investment program.

Subtitle B—Rural Electrification Act of 1936

Sec. 6101. Relending for certain purposes.

Sec. 6102. Fees for certain loan guarantees.

Sec. 6103. Guarantees for bonds and notes issued for electrification or telephone purposes.

Sec. 6104. Expansion of 911 access.

Sec. 6105. Access to broadband telecommunications services in rural areas.

Subtitle C—Miscellaneous

Sec. 6201. Distance learning and telemedicine.

Sec. 6202. Value-added agricultural market development program grants.

Sec. 6203. Agriculture innovation center demonstration program.

Sec. 6204. Program metrics.

Sec. 6205. Study of rural transportation issues.

Sec. 6206. Agricultural transportation policy.

Sec. 6207. Certain Federal actions not to be considered major for purposes of environmental review.

Title VII—Research, Extension, and Related Matters

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

Sec. 7101. Option to not be included as Hispanic-serving agricultural college or university.

Sec. 7102. National Agricultural Research, Extension, Education, and Economics Advisory Board.

Sec. 7103. Specialty crop committee.

Sec. 7104. Veterinary services grant program.

Sec. 7105. Grants and fellowships for food and agriculture sciences education.

Sec. 7106. Policy research centers.

Sec. 7107. Repeal of human nutrition intervention and health promotion research program.

Sec. 7108. Repeal of pilot research program to combine medical and agricultural research.

Sec. 7109. Nutrition education program.

Sec. 7110. Continuing animal health and disease research programs.

Sec. 7111. Repeal of appropriations for research on national or regional problems.

Sec. 7112. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University.

Sec. 7113. Grants to upgrade agriculture and food science facilities and equipment at insular area land-grant institutions.

Sec. 7114. Repeal of national research and training virtual centers.

Sec. 7115. Hispanic-serving institutions.

Sec. 7116. Competitive grants for international agricultural science and education programs.

Sec. 7117. Repeal of research equipment grants.

Sec. 7118. University research.

Sec. 7119. Extension service.

Sec. 7120. Auditing, reporting, bookkeeping, and administrative requirements.

Sec. 7121. Supplemental and alternative crops.

Sec. 7122. Capacity building grants for NLGCA institutions.

Sec. 7123. Aquaculture assistance programs.

Sec. 7124. Rangeland research programs.

Sec. 7125. Special authorization for biosecurity planning and response.

Sec. 7126. Distance education and resident instruction grants program for insular area institutions of higher education.

Sec. 7127. Matching funds requirement.

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

Sec. 7201. Best utilization of biological applications.

Sec. 7202. Integrated management systems.

Sec. 7203. Sustainable agriculture technology development and transfer program.

Sec. 7204. National training program.

Sec. 7205. National Genetics Resources Program.

Sec. 7206. Repeal of National Agricultural Weather Information System.

Sec. 7207. Repeal of rural electronic commerce extension program.

Sec. 7208. Repeal of agricultural genome initiative.

Sec. 7209. High-priority research and extension initiatives.

Sec. 7210. Repeal of nutrient management research and extension initiative.

Sec. 7211. Organic agriculture research and extension initiative.

Sec. 7212. Repeal of agricultural bioenergy feedstock and energy efficiency research and extension initiative.

Sec. 7213. Farm business management.

Sec. 7214. Regional centers of excellence.

Sec. 7215. Repeal of red meat safety research center.

Sec. 7216. Assistive technology program for farmers with disabilities.

Sec. 7217. National rural information center clearinghouse.

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

Sec. 7301. Relevance and merit of agricultural research, extension, and education funded by the Department.

Sec. 7302. Integrated research, education, and extension competitive grants program.

Sec. 7303. Repeal of coordinated program of research, extension, and education to improve viability of small and medium size dairy, livestock, and poultry operations.

Sec. 7304. Repeal of Bovine Johne's disease control program.

Sec. 7305. Grants for youth organizations.

Sec. 7306. Specialty crop research initiative.

Sec. 7307. Food animal residue avoidance database program.

Sec. 7308. Repeal of national swine research center.

Sec. 7309. Office of pest management policy.

Sec. 7310. Repeal of studies of agricultural research, extension, and education.

Subtitle D—Other Laws

Sec. 7401. Critical Agricultural Materials Act.

Sec. 7402. Equity in Educational Land-grant Status Act of 1994.

Sec. 7403. Research Facilities Act.

Sec. 7404. Repeal of carbon cycle research.

Sec. 7405. Competitive, Special, and Facilities Research Grant Act.

Sec. 7406. Renewable Resources Extension Act of 1978.

Sec. 7407. National Aquaculture Act of 1980.

Sec. 7408. Repeal of use of remote sensing data.

Sec. 7409. Repeal of reports under Farm Security and Rural Investment Act of 2002.

Sec. 7410. Beginning farmer and rancher development program.

Sec. 7411. Inclusion of Northern Mariana Islands as a State under McIntire-Stennis Cooperative Forestry Act.

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

Part 1—Agricultural Security

Sec. 7501. Agricultural biosecurity communication center.

Sec. 7502. Assistance to build local capacity in agricultural biosecurity planning, preparation, and response.

Sec. 7503. Research and development of agricultural countermeasures.

Sec. 7504. Agricultural biosecurity grant program.

Part 2—Miscellaneous

Sec. 7511. Enhanced use lease authority pilot program.

Sec. 7512. Grazinglands research laboratory.

Sec. 7513. Budget submission and funding.

Sec. 7514. Repeal of research and education grants for the study of antibiotic-resistant bacteria.

Sec. 7515. Repeal of farm and ranch stress assistance network.

Sec. 7516. Repeal of seed distribution.

Sec. 7517. Natural products research program.

Sec. 7518. Sun grant program.

Sec. 7519. Repeal of study and report on food deserts.

Sec. 7520. Repeal of agricultural and rural transportation research and education.

Sec. 7521. Conveyance of land comprising Subtropical Horticulture Research Station.

Sec. 7522. Concessions, fees, and voluntary services at National Arboretum.

Sec. 7523. Cotton Disease Research Report.

Sec. 7524. Miscellaneous technical corrections.

Title VIII—Forestry

Subtitle A—Repeal of Certain Forestry Programs

Sec. 8001. Forest land enhancement program.

Sec. 8002. Watershed forestry assistance program.

Sec. 8003. Expired cooperative national forest products marketing program.

Sec. 8004. Hispanic-serving institution agricultural land national resources leadership program.

Sec. 8005. Tribal watershed forestry assistance program.

Sec. 8006. Separate Forest Service decisionmaking and appeals process.

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

Sec. 8101. Forest Legacy Program.

Sec. 8102. Community forest and open space conservation program.

Subtitle C—Reauthorization of Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.

Sec. 8202. Office of International Forestry.

Sec. 8203. Change in funding source for healthy forests reserve program.

Sec. 8204. Stewardship end result contracting project authority.

Subtitle D—National Forest Critical Area Response

Sec. 8301. Definitions.

Sec. 8302. Designation of critical areas.

Sec. 8303. Application of expedited procedures and activities of the Healthy Forests Restoration Act of 2003 to critical areas.

Sec. 8304. Good neighbor authority.

Subtitle E—Miscellaneous Provisions

Sec. 8401. Revision of strategic plan for forest inventory and analysis.

Sec. 8402. Forest Service participation in ACES Program.

Title IX—Energy

Sec. 9001. Definition of renewable energy system.

Sec. 9002. Biobased markets program.

Sec. 9003. Biorefinery Assistance.

Sec. 9004. Repeal of repowering assistance program and transfer of remaining funds.

Sec. 9005. Bioenergy Program for Advanced Biofuels.

Sec. 9006. Biodiesel Fuel Education Program.

Sec. 9007. Rural Energy for America Program.

Sec. 9008. Biomass Research and Development.

Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers.

Sec. 9010. Biomass Crop Assistance Program.

Sec. 9011. Community wood energy program.

Sec. 9012. Repeal of biofuels infrastructure study.

Sec. 9013. Repeal of renewable fertilizer study.

Title X—Horticulture

Sec. 10001. Specialty crops market news allocation.

Sec. 10002. Repeal of grant program to improve movement of specialty crops.

Sec. 10003. Farmers market and local food promotion program.

Sec. 10004. Organic agriculture.

Sec. 10005. Investigations and enforcement of the Organic Foods Production Act of 1990.

Sec. 10006. Food safety education initiatives.

Sec. 10007. Specialty crop block grants.

Sec. 10008. Report on specialty crop production by certain farmers.

Sec. 10009. Report on honey.

Sec. 10010. Bulk shipments of apples to Canada.

Sec. 10011. Inclusion of olive oil in import controls under the Agricultural Adjustment Act.

Sec. 10012. Petitions to determine organism not a plant pest.

Sec. 10013. Consolidation of plant pest and disease management and disaster prevention programs.

Sec. 10014. Authority for regulation of plants.

Sec. 10015. Report to Congress on regulation of biotechnology.

Sec. 10016. Pesticide Registration Improvement.

Sec. 10017. Modification, cancellation, or suspension on basis of a biological opinion.

Sec. 10018. Use and discharges of authorized pesticides.

Sec. 10019. Inclusion of Bed Bugs in Definition of Vector Organisms.

Sec. 10020. Effective date.

Title XI—Crop Insurance

Sec. 11001. Information sharing.

Sec. 11002. Publication of information on violations of prohibition on premium adjustments.

Sec. 11003. Supplemental coverage option.

Sec. 11004. Premium amounts for catastrophic risk protection.

Sec. 11005. Repeal of performance-based discount.

Sec. 11006. Permanent enterprise unit subsidy.

Sec. 11007. Enterprise units for irrigated and nonirrigated crops.

Sec. 11008. Data collection.

Sec. 11009. Adjustment in actual production history to establish insurable yields.

Sec. 11010. Submission and review of policies.

Sec. 11011. Equitable relief for specialty crop policies.

Sec. 11012. Budget limitations on renegotiation of the standard reinsurance agreement.

Sec. 11013. Crop production on native sod.

Sec. 11014. Coverage levels by practice.

Sec. 11015. Beginning farmer and rancher provisions.

Sec. 11016. Stacked income protection plan for producers of upland cotton.

Sec. 11017. Peanut revenue crop insurance.

Sec. 11018. Authority to correct errors.

Sec. 11019. Implementation.

Sec. 11020. Research and development priorities.

Sec. 11021. Additional research and development contracting requirements.

Sec. 11022. Pilot programs.

Sec. 11023. Limitation on expenditures for livestock pilot programs.

Sec. 11024. Noninsured crop assistance program.

Sec. 11025. Technical amendments.

Title XII—Miscellaneous

Subtitle A—Livestock

Sec. 12101. National Sheep Industry Improvement Center.

Sec. 12102. Trichinae certification program.

Sec. 12103. National Aquatic Animal Health Plan.

Sec. 12104. Report on compliance with World Trade Organization decision regarding country of origin labeling.

Sec. 12105. Repeal of certain regulations under the Packers and Stockyards Act, 1921.

Sec. 12106. Meat and poultry processing report.

Subtitle B—Socially disadvantaged producers and limited resource producers

Sec. 12201. Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers.

Sec. 12202. Office of Advocacy and Outreach.

Subtitle C—Other miscellaneous provisions

Sec. 12301. Grants to improve supply, stability, safety, and training of agricultural labor force.

Sec. 12302. Evaluation required for purposes of prohibition on closure or relocation of county offices for the Farm Service Agency.

Sec. 12303. Prohibition on attending an animal fight or causing a minor to attend an animal fight.

Sec. 12304. Program benefit eligibility status for participants in high plains water study.

Sec. 12305. Office of Tribal Relations.

Sec. 12306. Military Veterans Agricultural Liaison.

Sec. 12307. Acer access and development program.

Sec. 12308. Prohibition against interference by State and local governments with production or manufacture of items in other States.

Sec. 12309. Increased protection for agricultural interests in the Missouri River basin.

2.

Definition of Secretary of Agriculture

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

I

Commodities

A

Repeals and reforms

1101.

Repeal of direct payments

(a)

Repeal

Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.

(b)

Continued application for 2012 crop year

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

1102.

Repeal of counter-cyclical payments

(a)

Repeal

Sections 1104 and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.

(b)

Continued application for 2012 crop year

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

1103.

Repeal of average crop revenue election program

(a)

Repeal

Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715) is repealed.

(b)

Continued application for 2012 crop year

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

1104.

Definitions

In this subtitle and subtitle B:

(1)

Actual county revenue

The term actual county revenue, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1107(c)(4) to determine whether revenue loss coverage payments are required to be provided for that crop year.

(2)

Base acres

The term base acres, with respect to a covered commodity and cotton on a farm, means the number of acres established under section 1101 and 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952) or section 1101 and 1302 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711, 8752), as in effect on September 30, 2012, subject to any adjustment under section 1105 of this Act.

(3)

County revenue loss coverage trigger

The term county revenue loss coverage trigger, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1107(c)(5) to determine whether revenue loss coverage payments are required to be provided for that crop year.

(4)

Covered commodity

The term covered commodity means wheat, oats, and barley (including wheat, oats, and barley used for haying and grazing), corn, grain sorghum, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.

(5)

Effective price

The term effective price, with respect to a covered commodity for a crop year, means the price calculated by the Secretary under section 1107(b)(2) to determine whether price loss coverage payments are required to be provided for that crop year.

(6)

Extra long staple cotton

The term extra long staple cotton means cotton that—

(A)

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

(B)

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

(7)

Farm base acres

The term farm base acres means the sum of the base acreage for all covered commodities and cotton on a farm in effect as of September 30, 2012, and subject to any adjustment under section 1105.

(8)

Medium grain rice

The term medium grain rice includes short grain rice.

(9)

Midseason price

The term midseason price means the applicable national average market price received by producers for the first 5 months of the applicable marketing year, as determined by the Secretary.

(10)

Other oilseed

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

(11)

Payment acres

(A)

In general

Except as provided in subparagraphs (B) through (D), the term payment acres, with respect to the provision of price loss coverage payments and revenue loss coverage payments, means—

(i)

85 percent of total acres planted for the year to each covered commodity on a farm; and

(ii)

30 percent of approved total acres prevented from being planted for the year to each covered commodity on a farm.

(B)

Maximum

The total quantity of payment acres determined under subparagraph (A) shall not exceed the farm base acres.

(C)

Reduction

If the sum of all payment acres for a farm exceeds the limits established under subparagraph (B), the Secretary shall reduce the payment acres applicable to each crop proportionately.

(D)

Exclusion

The term payment acres does not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for payments under this subtitle, unless the crop was approved for double cropping in the county, as determined by the Secretary.

(12)

Payment yield

The term payment yield means the yield established for counter-cyclical payments under section 1102 or 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912, 7952), section 1102 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8712), as in effect on September 30, 2012, or under section 1106 of this Act, for a farm for a covered commodity.

(13)

Price loss coverage

The term price loss coverage means coverage provided under section 1107(b).

(14)

Producer

(A)

In general

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

(B)

Hybrid seed

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

(i)

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

(ii)

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

(15)

Pulse crop

The term pulse crop means dry peas, lentils, small chickpeas, and large chickpeas.

(16)

Reference price

The term reference price, with respect to a covered commodity for a crop year, means the following:

(A)

Wheat, $5.50 per bushel.

(B)

Corn, $3.70 per bushel.

(C)

Grain sorghum, $3.95 per bushel.

(D)

Barley, $4.95 per bushel.

(E)

Oats, $2.40 per bushel.

(F)

Long grain rice, $14.00 per hundredweight.

(G)

Medium grain rice, $14.00 per hundredweight.

(H)

Soybeans, $8.40 per bushel.

(I)

Other oilseeds, $20.15 per hundredweight.

(J)

Peanuts $535.00 per ton.

(K)

Dry peas, $11.00 per hundredweight.

(L)

Lentils, $19.97 per hundredweight.

(M)

Small chickpeas, $19.04 per hundredweight.

(N)

Large chickpeas, $21.54 per hundredweight.

(17)

Revenue loss coverage

The term revenue loss coverage means coverage provided under section 1107(c).

(18)

Secretary

The term Secretary means the Secretary of Agriculture.

(19)

State

The term State means—

(A)

a State;

(B)

the District of Columbia;

(C)

the Commonwealth of Puerto Rico; and

(D)

any other territory or possession of the United States.

(20)

Transitional yield

The term transitional yield has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).

(21)

United States

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

(22)

United States premium factor

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

1105.

Base acres

(a)

Adjustment of base acres

(1)

In general

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

(A)

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

(B)

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

(C)

The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(1)(D) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(a)(1)(D)).

(2)

Special conservation reserve acreage payment rules

For the crop year in which a base acres adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive price loss coverage or revenue loss coverage with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.

(b)

Prevention of excess base acres

(1)

Required reduction

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

(2)

Other acreage

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

(A)

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

(B)

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

(C)

If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under subsection (a)(1)(C).

(3)

Selection of acres

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

(4)

Exception for double-cropped acreage

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

(c)

Reduction in base acres

(1)

Reduction at option of owner

(A)

In general

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

(B)

Effect of reduction

A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary.

(2)

Required action by Secretary

(A)

In general

The Secretary shall proportionately reduce base acres on a farm for covered commodities and cotton for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size of the tracts and the density of the subdivision is such that the land is unlikely to return to the previous agricultural use, unless the producers on the farm demonstrate that the land—

(i)

remains devoted to commercial agricultural production; or

(ii)

is likely to be returned to the previous agricultural use.

(B)

Requirement

The Secretary shall establish procedures to identify land described in subparagraph (A).

1106.

Payment yields

(a)

Establishment and purpose

For the purpose of making payments under this subtitle, the Secretary shall provide for the establishment of a yield for each farm for any designated oilseed for which a payment yield was not established under section 1102 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8712) in accordance with this section.

(b)

Payment yields for designated oilseeds

(1)

Determination of average yield

In the case of designated oilseeds, the Secretary shall determine the average yield per planted acre for the designated oilseed on a farm for the 1998 through 2001 crop years, excluding any crop year in which the acreage planted to the designated oilseed was zero.

(2)

Adjustment for payment yield

(A)

In general

The payment yield for a farm for a designated oilseed shall be equal to the product of the following:

(i)

The average yield for the designated oilseed determined under paragraph (1).

(ii)

The ratio resulting from dividing the national average yield for the designated oilseed for the 1981 through 1985 crops by the national average yield for the designated oilseed for the 1998 through 2001 crops.

(B)

No national average yield information available

To the extent that national average yield information for a designated oilseed is not available, the Secretary shall use such information as the Secretary determines to be fair and equitable to establish a national average yield under this section.

(3)

Use of county average yield

If the yield per planted acre for a crop of a designated oilseed for a farm for any of the 1998 through 2001 crop years was less than 75 percent of the county yield for that designated oilseed, the Secretary shall assign a yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1).

(4)

No historic yield data available

In the case of establishing yields for designated oilseeds, if historic yield data is not available, the Secretary shall use the ratio for dry peas calculated under paragraph (2)(A)(ii) in determining the yields for designated oilseeds, as determined to be fair and equitable by the Secretary.

(c)

Effect of lack of payment yield

(1)

Establishment by secretary

If no payment yield is otherwise established for a farm for which a covered commodity is planted and eligible to receive price loss coverage payments, the Secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph (2).

(2)

Use of similarly situated farms

Notwithstanding any other provision of law, to establish an appropriate payment yield for a covered commodity on a farm as required by paragraph (1), the Secretary shall take into consideration the farm program payment yields applicable to that covered commodity for similarly situated farms.

(d)

Single opportunity to update yields used to determine price loss coverage payments

(1)

Election to update

At the sole discretion of the owner of a farm, the owner of a farm shall have a 1-time opportunity to update the payment yields on a covered commodity-by-covered commodity basis that would otherwise be used in calculating any price loss coverage payment for covered commodities on the farm.

(2)

Time for election

The election under paragraph (1) shall be made at a time and manner to be in effect for the 2013 crop year as determined by the Secretary.

(3)

Method of updating yields

If the owner of a farm elects to update yields under this subsection, the payment yield for a covered commodity on the farm, for the purpose of calculating price loss coverage payments only, shall be equal to 90 percent of the average of the yield per planted acre for the crop of the covered commodity on the farm for the 2008 through 2012 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the crop of the covered commodity was zero.

(4)

Use of county average yield

If the yield per planted acre for a crop of the covered commodity for a farm for any of the 2008 through 2012 crop years was less than 75 percent of the average of the 2008 through 2012 county yield for that commodity, the Secretary shall assign a yield for that crop year equal to 75 percent of the average of the 2008 through 2012 county yield for the purposes of determining the average yield under paragraph (3).

(5)

Effect of lack of payment yield

(A)

Establishment by secretary

For purposes of this subsection, if no payment yield is otherwise established for a covered commodity on a farm, the Secretary shall establish an appropriate updated payment yield for the covered commodity on the farm under subparagraph (B).

(B)

Use of similarly situated farms

Notwithstanding any other provision of law, to establish an appropriate updated payment yield for a covered commodity on a farm as required by subparagraph (A), the Secretary shall take into consideration the farm program payment yields applicable to that covered commodity for similarly situated farms, but before the yields for the similarly situated farms are updated as provided in this subsection.

1107.

Farm risk management election

(a)

In general

(1)

Payments required

Except as provided in paragraph (2), if the Secretary determines that payments are required under subsection (b)(1) or (c)(2) for a covered commodity, the Secretary shall make payments for that covered commodity available under such subsection to producers on a farm pursuant to the terms and conditions of this section.

(2)

Prohibition on payments; exceptions

Notwithstanding any other provision of this title, a producer on a farm may not receive price loss coverage payments or revenue loss coverage payments if the sum of the planted acres of covered commodities on the farm is 10 acres or less, as determined by the Secretary, unless the producer is—

(A)

a socially disadvantaged farmer or rancher (as defined in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e))); or

(B)

a limited resource farmer or rancher, as defined by the Secretary.

(b)

Price loss coverage

(1)

Payments

For each of the 2013 through 2017 crop years, the Secretary shall make price loss coverage payments to producers on a farm for a covered commodity if the Secretary determines that—

(A)

the effective price for the covered commodity for the crop year; is less than

(B)

the reference price for the covered commodity for the crop year.

(2)

Effective price

The effective price for a covered commodity for a crop year shall be the higher of—

(A)

the midseason price; or

(B)

the national average loan rate for a marketing assistance loan for the covered commodity in effect for crop years 2013 through 2017 under subtitle B.

(3)

Payment rate

The payment rate shall be equal to the difference between—

(A)

the reference price for the covered commodity; and

(B)

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

(4)

Payment amount

If price loss coverage payments are required to be provided under this subsection for any of the 2013 through 2017 crop years for a covered commodity, the amount of the price loss coverage payment to be paid to the producers on a farm for the crop year shall be equal to the product obtained by multiplying—

(A)

the payment rate for the covered commodity under paragraph (3);

(B)

the payment yield for the covered commodity; and

(C)

the payment acres for the covered commodity.

(5)

Time for payments

If the Secretary determines under this subsection that price loss coverage payments are required to be provided for the covered commodity, the payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

(6)

Special rule

In determining the effective price for barley in paragraph (2), the Secretary shall use the all-barley price.

(c)

Revenue loss coverage

(1)

Available as an alternative

As an alternative to receiving price loss coverage payments under subsection (b) for a covered commodity, all of the owners of the farm may make a one-time, irrevocable election on a covered commodity-by-covered commodity basis to receive revenue loss coverage payments for each covered commodity in accordance with this subsection. If any of the owners of the farm make different elections on the same covered commodity on the farm, all of the owners of the farm shall be deemed to have not made the election available under this paragraph.

(2)

Payments

In the case of owners of a farm that make the election described in paragraph (1) for a covered commodity, the Secretary shall make revenue loss coverage payments available under this subsection for each of the 2013 through 2017 crop years if the Secretary determines that—

(A)

the actual county revenue for the crop year for the covered commodity; is less than

(B)

the county revenue loss coverage trigger for the crop year for the covered commodity.

(3)

Time for payments

If the Secretary determines under this subsection that revenue loss coverage payments are required to be provided for the covered commodity, payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

(4)

Actual county revenue

The amount of the actual county revenue for a crop year of a covered commodity shall be equal to the product obtained by multiplying—

(A)

the actual county yield, as determined by the Secretary, for each planted acre for the crop year for the covered commodity; and

(B)

the higher of—

(i)

the midseason price; or

(ii)

the national average loan rate for a marketing assistance loan for the covered commodity in effect for crop years 2013 through 2017 under subtitle B.

(5)

County revenue loss coverage trigger

(A)

In general

The county revenue loss coverage trigger for a crop year for a covered commodity on a farm shall equal 85 percent of the benchmark county revenue.

(B)

Benchmark county revenue

(i)

In general

The benchmark county revenue shall be the product obtained by multiplying—

(I)

subject to clause (ii), the average historical county yield as determined by the Secretary for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and

(II)

subject to clause (iii), the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.

(ii)

Yield conditions

If the historical county yield in clause (i)(I) for any of the 5 most recent crop years, as determined by the Secretary, is less than 70 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in clause (i)(I) shall be 70 percent of the transitional yield.

(iii)

Reference price

If the national marketing year average price in clause (i)(II) for any of the 5 most recent crop years is lower than the reference price for the covered commodity, the Secretary shall use the reference price for any of those years for the amounts in clause (i)(II).

(6)

Payment rate

The payment rate shall be equal to the lesser of—

(A)

the difference between—

(i)

the county revenue loss coverage trigger for the covered commodity; and

(ii)

the actual county revenue for the crop year for the covered commodity; or

(B)

10 percent of the benchmark county revenue for the crop year for the covered commodity.

(7)

Payment amount

If revenue loss coverage payments under this subsection are required to be provided for any of the 2013 through 2017 crop years of a covered commodity, the amount of the revenue loss coverage payment to be provided to the producers on a farm for the crop year shall be equal to the product obtained by multiplying—

(A)

the payment rate under paragraph (6); and

(B)

the payment acres of the covered commodity on the farm.

(8)

Duties of the secretary

In providing revenue loss coverage payments under this subsection, the Secretary—

(A)

shall ensure that producers on a farm do not reconstitute the farm of the producers to void or change the election made under paragraph (1);

(B)

to the maximum extent practicable, shall use all available information and analysis, including data mining, to check for anomalies in the provision of revenue loss coverage payments;

(C)

to the maximum extent practicable, shall calculate a separate county revenue loss coverage trigger for irrigated and nonirrigated covered commodities and a separate actual county revenue for irrigated and nonirrigated covered commodities;

(D)

shall assign a benchmark county yield for each planted acre for the crop year for the covered commodity on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if—

(i)

the Secretary cannot establish the benchmark county yield for each planted acre for a crop year for a covered commodity in the county in accordance with paragraph (5); or

(ii)

the yield determined under paragraph (5) is an unrepresentative average yield for the county (as determined by the Secretary); and

(E)

to the maximum extent practicable, shall ensure that in order to be eligible for a payment under this subsection, the producers on the farm suffered an actual loss on the covered commodity for the crop year for which payment is sought.

1108.

Producer agreements

(a)

Compliance with certain requirements

(1)

Requirements

Before the producers on a farm may receive price loss coverage payments or revenue loss coverage payments with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—

(A)

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

(B)

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

(C)

to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary.

(2)

Compliance

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

(3)

Modification

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

(b)

Transfer or change of interest in farm

(1)

Termination

(A)

In general

Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which price loss coverage payments or revenue loss coverage payments are provided shall result in the termination of the price loss coverage and revenue loss coverage, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).

(B)

Effective date

The termination shall take effect on the date determined by the Secretary.

(2)

Exception

If a producer entitled to a price loss coverage payment or revenue loss coverage payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment in accordance with rules issued by the Secretary.

(c)

Acreage reports

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

(d)

Tenants and sharecroppers

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

(e)

Sharing of payments

The Secretary shall provide for the sharing of price loss coverage payments and revenue loss coverage payments among the producers on a farm on a fair and equitable basis.

1109.

Period of effectiveness

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

B

Marketing loans

1201.

Availability of nonrecourse marketing assistance loans for loan commodities

(a)

Definition of loan commodity

In this subtitle, the term loan commodity means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.

(b)

Nonrecourse loans available

(1)

In general

For each of the 2013 through 2017 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.

(2)

Terms and conditions

The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 1202 for the loan commodity.

(c)

Eligible production

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

(d)

Compliance with conservation and wetlands requirements

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

(e)

Special rules for peanuts

(1)

In general

This subsection shall apply only to producers of peanuts.

(2)

Options for obtaining loan

A marketing assistance loan under this section, and loan deficiency payments under section 1205, may be obtained at the option of the producers on a farm through—

(A)

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

(B)

the Farm Service Agency.

(3)

Storage of loan peanuts

As a condition on the approval by the Secretary of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—

(A)

to provide the storage on a nondiscriminatory basis; and

(B)

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

(4)

Storage, handling, and associated costs

(A)

In general

To ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.

(B)

Redemption and forfeiture

The Secretary shall—

(i)

require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and

(ii)

pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section.

(5)

Marketing

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

(6)

Reimbursable agreements and payment of administrative expenses

The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities.

1202.

Loan rates for nonrecourse marketing assistance loans

(a)

In general

For purposes of each of the 2013 through 2017 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:

(1)

In the case of wheat, $2.94 per bushel.

(2)

In the case of corn, $1.95 per bushel.

(3)

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

(4)

In the case of barley, $1.95 per bushel.

(5)

In the case of oats, $1.39 per bushel.

(6)

In the case of base quality of upland cotton, for the 2013 and each subsequent crop year, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic plantings, but in no case less than $0.47 per pound or more than $0.52 per pound.

(7)

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

(8)

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

(9)

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

(10)

In the case of soybeans, $5.00 per bushel.

(11)

In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds:

(A)

Sunflower seed.

(B)

Rapeseed.

(C)

Canola.

(D)

Safflower.

(E)

Flaxseed.

(F)

Mustard seed.

(G)

Crambe.

(H)

Sesame seed.

(I)

Other oilseeds designated by the Secretary.

(12)

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

(13)

In the case of lentils, $11.28 per hundredweight.

(14)

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

(15)

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

(16)

In the case of graded wool, $1.15 per pound.

(17)

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

(18)

In the case of mohair, $4.20 per pound.

(19)

In the case of honey, $0.69 per pound.

(20)

In the case of peanuts, $355 per ton.

(b)

Single county loan rate for other oilseeds

The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsection (a)(11).

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, extra long staple cotton, peanuts and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—

(1)

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

(2)

a rate (as determined by the Secretary) that—

(A)

is calculated based on average market prices for the loan commodity during the preceding 30-day period; and

(B)

will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or

(3)

a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity that the Secretary determines will—

(A)

minimize potential loan forfeitures;

(B)

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

(C)

minimize the cost incurred by the Federal Government in storing the commodity;

(D)

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

(E)

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

(b)

Repayment rates for upland cotton, long grain rice, and medium grain rice

The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of—

(1)

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

(2)

the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.

(c)

Repayment rates for extra long staple cotton

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

(d)

Prevailing world market price

For purposes of this section and section 1207, the Secretary shall prescribe by regulation—

(1)

a formula to determine the prevailing world market price for each of upland cotton, long grain rice, and medium grain rice; and

(2)

a mechanism by which the Secretary shall announce periodically those prevailing world market prices.

(e)

Adjustment of prevailing world market price for upland cotton, long grain rice, and medium grain rice

(1)

Rice

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

(2)

Cotton

The prevailing world market price for upland cotton determined under subsection (d)—

(A)

shall be adjusted to United States quality and location, with the adjustment to include—

(i)

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

(ii)

the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and

(B)

may be further adjusted, during the period beginning on the date of enactment of this Act and ending on July 31, 2018, if the Secretary determines the adjustment is necessary—

(i)

to minimize potential loan forfeitures;

(ii)

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

(iii)

to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and

(iv)

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

(I)

there are insufficient current-crop price quotations; and

(II)

the forward-crop price quotation is the lowest such quotation available.

(3)

Guidelines for additional adjustments

In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.

(f)

Repayment rates for confectionery and other kinds of sunflower seeds

The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—

(1)

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

(2)

the repayment rate established for oil sunflower seed.

(g)

Payment of cotton storage costs

Effective for each of the 2013 through 2017 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 10 percent.

(h)

Repayment rate for peanuts

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

(1)

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

(2)

a rate that the Secretary determines will—

(A)

minimize potential loan forfeitures;

(B)

minimize the accumulation of stocks of peanuts by the Federal Government;

(C)

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

(D)

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

(i)

Authority to temporarily adjust repayment rates

(1)

Adjustment authority

In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under section 1201 for a loan commodity.

(2)

Duration

Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.

1205.

Loan deficiency payments

(a)

Availability of loan deficiency payments

(1)

In general

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

(2)

Unshorn pelts, hay, and silage

(A)

Marketing assistance loans

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

(B)

Loan deficiency payment

Effective for the 2013 through 2017 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.

(b)

Computation

A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—

(1)

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

(2)

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

(c)

Payment rate

(1)

In general

In the case of a loan commodity, the payment rate shall be the amount by which—

(A)

the loan rate established under section 1202 for the loan commodity; exceeds

(B)

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

(2)

Unshorn pelts

In the case of unshorn pelts, the payment rate shall be the amount by which—

(A)

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

(B)

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

(3)

Hay and silage

In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—

(A)

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

(B)

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

(d)

Exception for extra long staple cotton

This section shall not apply with respect to extra long staple cotton.

(e)

Effective date for payment rate determination

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

1206.

Payments in lieu of loan deficiency payments for grazed acreage

(a)

Eligible producers

(1)

In general

Effective for the 2013 through 2017 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.

(2)

Grazing of triticale acreage

Effective for the 2013 through 2017 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.

(b)

Payment amount

(1)

In general

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

(A)

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

(B)

the payment quantity determined by multiplying—

(i)

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

(ii)
(I)

the payment yield in effect for the calculation of price loss coverage under subtitle A with respect to that loan commodity on the farm; or

(II)

in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary in a manner consistent with section 1106(c) of this Act.

(2)

Grazing of triticale acreage

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

(A)

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

(B)

the payment quantity determined by multiplying—

(i)

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

(ii)
(I)

the payment yield in effect for the calculation of price loss coverage under subtitle A with respect to wheat on the farm; or

(II)

in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 1106(c) of this Act.

(c)

Time, manner, and availability of payment

(1)

Time and manner

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

(2)

Availability

(A)

In general

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

(B)

Certain commodities

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

(d)

Prohibition on crop insurance indemnity or noninsured crop assistance

A 2013 through 2017 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

1207.

Special marketing loan provisions for upland cotton

(a)

Special import quota

(1)

Definition of special import quota

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

(2)

Establishment

(A)

In general

The President shall carry out an import quota program during the period beginning on August 1, 2013, and ending on July 31, 2018, as provided in this subsection.

(B)

Program requirements

Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 13/32-inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.

(3)

Quantity

The quota shall be equal to the consumption during a 1-week period of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.

(4)

Application

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

(5)

Overlap

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

(6)

Preferential tariff treatment

The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—

(A)

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

(B)

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

(C)

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

(D)

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

(7)

Limitation

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

(b)

Limited global import quota for upland cotton

(1)

Definitions

In this subsection:

(A)

Demand

The term demand means—

(i)

the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary; and

(ii)

the larger of—

(I)

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

(II)

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

(B)

Limited global import quota

The term limited global import quota means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(C)

Supply

The term supply means, using the latest official data of the Department of Agriculture—

(i)

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

(ii)

production of the current crop; and

(iii)

imports to the latest date available during the marketing year.

(2)

Program

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

(A)

Quantity

The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.

(B)

Quantity if prior quota

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

(C)

Preferential tariff treatment

The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—

(i)

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

(ii)

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

(iii)

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

(iv)

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

(D)

Quota entry period

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

(3)

No overlap

Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (a).

(c)

Economic adjustment assistance to users of upland cotton

(1)

In general

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

(2)

Value of assistance

Effective beginning on August 1, 2012, the value of the assistance provided under paragraph (1) shall be 3 cents per pound.

(3)

Allowable purposes

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

(4)

Review or audit

The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.

(5)

Improper use of assistance

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

(A)

liable for the repayment of the assistance to the Secretary, plus interest, as determined by the Secretary; and

(B)

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

1208.

Special competitive provisions for extra long staple cotton

(a)

Competitiveness program

Notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act through July 31, 2018, the Secretary shall carry out a program—

(1)

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

(2)

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

(3)

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

(b)

Payments under program; trigger

Under the program, the Secretary shall make payments available under this section whenever—

(1)

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

(2)

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

(c)

Eligible recipients

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

(d)

Payment amount

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

1209.

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

(a)

High moisture feed grains

(1)

Definition of high moisture state

In this subsection, the term high moisture state means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 1201.

(2)

Recourse loans available

For each of the 2013 through 2017 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—

(A)

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

(B)

present—

(i)

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

(ii)

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

(C)

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

(D)

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

(3)

Eligibility of acquired feed grains

A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—

(A)

the acreage of the corn or grain sorghum in a high moisture state harvested on the farm of the producer; by

(B)

the lower of the farm program payment yield used to make payments under subtitle A or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.

(b)

Recourse loans available for seed cotton

For each of the 2013 through 2017 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.

(c)

Repayment rates

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

1210.

Adjustments of loans

(a)

Adjustment authority

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

(b)

Manner of adjustment

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

(c)

Adjustment on county basis

(1)

In general

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

(2)

Prohibition

Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.

(d)

Adjustment in loan rate for cotton

(1)

In general

The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.

(2)

Types of adjustments

Loan rate adjustments under paragraph (1) may include—

(A)

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

(B)

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

(C)

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

(3)

Consultation with private sector

(A)

Prior to revision

In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry.

(B)

Inapplicability of Federal Advisory Committee Act

The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations under this subsection.

(4)

Review of adjustments

The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further adjustments to the administration of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (2).

(e)

Rice

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

C

Sugar

1301.

Sugar program

(a)

Continuation of current program and loan rates

(1)

Sugarcane

Section 156(a)(5) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(5)) is amended by striking the 2012 crop year and inserting each of the 2012 through 2017 crop years.

(2)

Sugar beets

Section 156(b)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(b)(2)) is amended by striking 2012 and inserting 2017.

(3)

Effective period

Section 156(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by striking 2012 and inserting 2017.

(b)

Flexible marketing allotments for sugar

(1)

Sugar estimates

Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking 2012 and inserting 2017.

(2)

Effective period

Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking 2012 and inserting 2017.

D

Dairy

I

Dairy producer margin protection and dairy market stabilization programs

1401.

Definitions

In this part:

(1)

Actual dairy producer margin

The term actual dairy producer margin means the difference between the all-milk price and the average feed cost, as calculated under section 1402.

(2)

All-milk price

The term all-milk price means the average price received, per hundredweight of milk, by dairy producers for all milk sold to plants and dealers in the United States, as determined by the Secretary.

(3)

Annual production history

The term annual production history means the production history determined for a participating dairy producer under section 1413(b) whenever the dairy producer purchases supplemental margin protection.

(4)

Average feed cost

The term average feed cost means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 1402 using the sum of the following:

(A)

The product determined by multiplying 1.0728 by the price of corn per bushel.

(B)

The product determined by multiplying 0.00735 by the price of soybean meal per ton.

(C)

The product determined by multiplying 0.0137 by the price of alfalfa hay per ton.

(5)

Basic production history

The term basic production history means the production history determined for a participating dairy producer under section 1413(a) for provision of basic margin protection.

(6)

Consecutive two-month period

The term consecutive two-month period refers to the two-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or November and December, respectively.

(7)

Dairy producer

(A)

In general

Subject to subparagraph (B), the term dairy producer means an individual or entity that directly or indirectly (as determined by the Secretary)—

(i)

shares in the risk of producing milk; and

(ii)

makes contributions (including land, labor, management, equipment, or capital) to the dairy operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation.

(B)

Additional ownership structures

The Secretary shall determine additional ownership structures to be covered by the definition of dairy producer.

(8)

Handler

(A)

In general

The term handler means the initial individual or entity making payment to a dairy producer for milk produced in the United States and marketed for commercial use.

(B)

Producer-handler

The term includes a producer-handler when the producer satisfies the definition in subparagraph (A).

(9)

Margin protection program

The term margin protection program means the dairy producer margin protection program required by subpart A.

(10)

Participating dairy producer

The term participating dairy producer means a dairy producer that—

(A)

signs up under section 1412 to participate in the margin protection program under subpart A; and

(B)

as a result, also participates in the stabilization program under subpart B.

(11)

Stabilization program

The term stabilization program means the dairy market stabilization program required by subpart B for all participating dairy producers.

(12)

Stabilization program base

The term stabilization program base, with respect to a participating dairy producer, means the stabilization program base calculated for the producer under section 1431(b).

(13)

United States

The term United States, in a geographical sense, means the 50 States, the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, and any other territory or possession of the United States.

1402.

Calculation of average feed cost and actual dairy producer margins

(a)

Calculation of average feed cost

The Secretary shall calculate the national average feed cost for each month using the following data:

(1)

The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported in the monthly Agricultural Prices report by the Secretary.

(2)

The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market News-Monthly Soybean Meal Price Report by the Secretary.

(3)

The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary.

(b)

Calculation of actual dairy producer margins

(1)

Margin protection program

For use in the margin protection program under subpart A, the Secretary shall calculate the actual dairy producer margin for each consecutive two-month period by subtracting—

(A)

the average feed cost for that consecutive two-month period, determined in accordance with subsection (a); from

(B)

the all-milk price for that consecutive two-month period.

(2)

Stabilization program

For use in the stabilization program under subpart B, the Secretary shall calculate each month the actual dairy producer margin for the preceding month by subtracting—

(A)

the average feed cost for that preceding month, determined in accordance with subsection (a); from

(B)

the all-milk price for that preceding month.

(3)

Time for calculations

The calculations required by paragraphs (1) and (2) shall be made as soon as practicable each month using the full month price of the applicable reference month, but in no case shall the calculation be made later than the last business day of the month.

A

Dairy producer margin protection program

1411.

Establishment of dairy producer margin protection program

The Secretary shall establish and administer a dairy producer margin protection program for the purpose of protecting dairy producer income by paying participating dairy producers—

(1)

basic margin protection payments when actual dairy producer margins are less than the threshold levels for such payments; and

(2)

supplemental margin protection payments if purchased by a participating dairy producer.

1412.

Participation of dairy producers in margin protection program

(a)

Eligibility

All dairy producers in the United States are eligible to participate in the margin protection program, except that a dairy producer must sign up with the Secretary before the producer may receive—

(1)

basic margin protection payments under section 1414; and

(2)

if the dairy producer purchases supplemental margin protection under section 1415, supplemental margin protection payments under such section.

(b)

Sign-up process

(1)

In General

The Secretary shall allow all interested dairy producers to sign up to participate in the margin protection program. The Secretary shall specify the manner and form by which a dairy producer must sign up to participate in the margin protection program.

(2)

Treatment of Multi-Producer Operations

If a dairy operation consists of more than one dairy producer, all of the dairy producers of the operation shall be treated as a single dairy producer for purposes of—

(A)

registration to receive basic margin protection and purchase supplemental margin protection;

(B)

payment of the administrative fee under subsection (e) and producer premiums under section 1415; and

(C)

participation in the stabilization program under subpart B.

(3)

Treatment of Producers with Multiple Dairy Operations

If a dairy producer operates two or more dairy operations, each dairy operation of the producer shall require a separate registration to receive basic margin protection and purchase supplemental margin protection. Only those dairy operations so registered shall be subject to the stabilization program.

(c)

Time for sign up

(1)

Existing Dairy Producers

During the one-year period beginning on the date of the initiation of the sign-up period for the margin protection program, a dairy producer that is actively engaged in a dairy operation as of such date may sign up with the Secretary—

(A)

to receive basic margin protection; and

(B)

if the producer elects, to purchase supplemental margin protection.

(2)

New Entrants

A dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the sign-up period for the margin protection program, but that, after such date, establishes a new dairy operation, may sign up with the Secretary during the one year period beginning on the date on which the dairy operation first markets milk commercially—

(A)

to receive basic margin protection; and

(B)

if the producer elects, to purchase supplemental margin protection.

(d)

Retroactivity provision

(1)

Notice of availability of retroactive protection

Not later than 30 days after the effective date of this subtitle, the Secretary shall publish a notice in the Federal Register to inform dairy producers of the availability of retroactive basic margin protection and retroactive supplemental margin protection, subject to the condition that interested producers must file a notice of intent (in such form and manner as the Secretary specifies in the Federal Register notice)—

(A)

to participate in the margin protection program and receive basic margin protection; and

(B)

at the election of the producer under paragraph (3), to also obtain supplemental margin protection.

(2)

Retroactive basic margin protection

(A)

Availability

If a dairy producer files a notice of intent under paragraph (1) to participate in the margin protection program before the initiation of the sign-up period for the margin protection program and subsequently signs up for the margin protection program, the producer shall receive basic margin protection retroactive to the effective date of this subtitle.

(B)

Duration

Retroactive basic margin protection under this paragraph for a dairy producer shall apply from the effective date of this subtitle until the date on which the producer signs up for the margin protection program.

(3)

Retroactive supplemental margin protection

(A)

Availability

Subject to subparagraphs (B) and (C), if a dairy producer files a notice of intent under paragraph (1) to participate in the margin protection program and obtain supplemental margin protection and subsequently signs up for the margin protection program, the producer shall receive supplemental margin protection, in addition to the basic margin protection under paragraph (2), retroactive to the effective date of this subtitle.

(B)

Deadline for submission

A notice of intent to obtain retroactive supplemental margin protection must be filed with the Secretary no later than the earlier of the following:

(i)

150 days after the date on which the Secretary publishes the notice in the Federal Register required by paragraph (1).

(ii)

The date on which the Secretary initiates the sign up period for the margin protection program.

(C)

Election of coverage level and percentage of coverage

To be sufficient to obtain retroactive supplemental margin protection, the notice of intent to participate filed by a dairy producer must specify—

(i)

a selected coverage level that is higher, in any increment of $0.50, than the payment threshold for basic margin protection specified in section 1414(b), but not to exceed $6.00; and

(ii)

the percentage of coverage, subject to limits imposed in section 1415(c).

(D)

Duration

The coverage level and percentage specified in the notice of intent to participate filed by a dairy producer shall apply from the effective date of this subtitle until the later of the following:

(i)

October 1, 2013.

(ii)

The date on which the Secretary initiates the sign-up period for the margin protection program.

(4)

Notice of intent and obligation to participate in margin protection program

In no way does filing a notice of intent under this subsection obligate a dairy producer to sign up for the margin protection program once the program rules are final, but if a producer does file a notice of intent and subsequently signs up for the margin protection program, that dairy producer is obligated to pay fees and premiums for any retroactive basic margin protection or retroactive supplemental margin protection selected in the notice of intent.

(e)

Administrative fee

(1)

Administrative fee required

A dairy producer shall pay an administrative fee under this subsection to sign up to participate in the margin protection program. The participating dairy producer shall pay the administrative fee annually thereafter to continue to participate in the margin protection program.

(2)

Fee amount

The administrative fee for a participating dairy producer for a calendar year is based on the pounds of milk (in millions) marketed by the dairy producer in the previous calendar year, as follows:

Pounds Marketed (in millions)Admin. Fee
less than 1$100
1 to 10 $250
more than 10 to 40$500
more than 40$1000
(3)

Deposit of Fees

All administrative fees collected under this subsection shall be credited to the fund or account used to cover the costs incurred to administer the margin protection program and the stabilization program and shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in paragraph (4).

(4)

Use of Fees

The Secretary shall use administrative fees collected under this subsection—

(A)

to cover administrative costs of the margin protection program and stabilization program; and

(B)

to the extent funds remain available after operation of subparagraphs (A), to cover costs of the Department of Agriculture relating to reporting of dairy market news and to carry out section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b).

(f)

Reconstitution

The Secretary shall prohibit a dairy producer from reconstituting a dairy operation for the sole purpose of the dairy producer—

(1)

receiving basic margin protection;

(2)

purchasing supplemental margin protection; or

(3)

avoiding participation in the stabilization program.

(g)

Priority consideration

A dairy operation that participates in the margin protection program shall be eligible to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) only after operations that are not participating in the production margin protection program are enrolled.

1413.

Production history of participating dairy producers

(a)

Production history for basic margin protection

(1)

Determination required

For purposes of providing basic margin protection, the Secretary shall determine the basic production history of the dairy operation of each participating dairy producer in the margin protection program.

(2)

Calculation

Except as provided in paragraph (3), the basic production history of a participating dairy producer for basic margin protection is equal to the highest annual milk marketings of the dairy producer during any one of the three calendar years immediately preceding the calendar year in which the dairy producer first signed up to participate in the margin protection program.

(3)

Election by new producers

If a participating dairy producer has been in operation for less than a year, the dairy producer shall elect one of the following methods for the Secretary to determine the basic production history of the dairy producer:

(A)

The volume of the actual milk marketings for the months the dairy producer has been in operation extrapolated to a yearly amount.

(B)

An estimate of the actual milk marketings of the dairy producer based on the herd size of the producer relative to the national rolling herd average data published by the Secretary.

(4)

No change in production history for basic margin protection

Once the basic production history of a participating dairy producer is determined under paragraph (2) or (3), the basic production history shall not be subsequently changed for purposes of determining the amount of any basic margin protection payments for the dairy producer made under section 1414.

(b)

Annual production history for supplemental margin protection

(1)

Determination required

For purposes of providing supplemental margin protection for a participating dairy producer that purchases supplemental margin protection for a year under section 1415, the Secretary shall determine the annual production history of the dairy operation of the dairy producer under paragraph (2).

(2)

Calculation

The annual production history of a participating dairy producer for a year is equal to the actual milk marketings of the dairy producer during the preceding calendar year.

(3)

New producers

Subsection (a)(3) shall apply with respect to determining the annual production history of a participating dairy producer that has been in operation for less than a year.

(c)

Required information

A participating dairy producer shall provide all information that the Secretary may require in order to establish—

(1)

the basic production history of the dairy operation of the dairy producer under subsection (a); and

(2)

the production history of the dairy operation of the dairy producer whenever the producer purchases supplemental margin protection under section 1415.

(d)

Transfer of production histories

(1)

Transfer by sale or lease

In promulgating the rules to initiate the margin protection program, the Secretary shall specify the conditions under which and the manner by which the production history of a dairy operation may be transferred by sale or lease.

(2)

Coverage level

(A)

Basic margin protection

A purchaser or lessee to whom the Secretary transfers a basic production history under this subsection shall not obtain a different level of basic margin protection than the basic margin protection coverage held by the seller or lessor from whom the transfer was obtained.

(B)

Supplemental margin protection

A purchaser or lessee to whom the Secretary transfers an annual production history under this subsection shall not obtain a different level of supplemental margin protection coverage than the supplemental margin protection coverage in effect for the seller or lessor from whom the transfer was obtained for the calendar year in which the transfer was made.

(e)

Movement and transfer of production history

(1)

Movement and transfer authorized

Subject to paragraph (2), if a dairy producer moves from one location to another location, the dairy producer may maintain the basic production history and annual production history associated with the operation.

(2)

Notification requirement

A dairy producer shall notify the Secretary of any move of a dairy operation under paragraph (1).

(3)

Subsequent occupation of vacated location

A party subsequently occupying a dairy operation location vacated as described in paragraph (1) shall have no interest in the basic production history or annual production history previously associated with the operation at such location.

1414.

Basic margin protection

(a)

Eligibility

All participating dairy producers are eligible to receive basic margin protection under the margin protection program.

(b)

Payment threshold

Participating dairy producers shall receive a basic margin protection payment whenever the average actual dairy producer margin for a consecutive two-month period is less than $4.00 per hundredweight of milk.

(c)

Basic margin protection payment

(1)

Payment required

The Secretary shall make a basic margin protection payment to each participating dairy producer whenever such a payment is required by subsection (b).

(2)

Amount of payment

The basic margin protection payment for the dairy operation of a participating dairy producer for a consecutive two-month period shall be determined as follows:

(A)

The Secretary shall calculate the difference between the average actual dairy producer margin for the consecutive two-month period and $4.00, except that, if the difference is more than $4.00, the Secretary shall use $4.00.

(B)

The Secretary shall multiply the amount under subparagraph (A) by the lesser of the following:

(i)

80 percent of the production history of the dairy producer, divided by six.

(ii)

The actual amount of milk marketed by the dairy operation of the dairy producer during the consecutive two-month period.

1415.

Supplemental margin protection

(a)

Election of supplemental margin protection

Supplemental margin protection is available only on an annual basis. A participating dairy producer may annually purchase supplemental margin protection to protect, during the calendar year for which purchased, a higher level of the income of a participating dairy producer than the income level guaranteed by basic margin protection under section 1414.

(b)

Selection of payment threshold

A participating dairy producer purchasing supplemental margin protection for a year shall elect a coverage level that is higher, in any increment of $0.50, than the payment threshold for basic margin protection specified in section 1414(b), but not to exceed $8.00.

(c)

Selection of coverage percentage

A participating dairy producer purchasing supplemental margin protection for a year shall elect a percentage of coverage equal to not more than 90 percent, nor less than 25 percent, of the annual production history of the dairy operation of the participating dairy producer.

(d)

Producer Premiums for supplemental margin protection

(1)

Premiums required

A participating dairy producer that purchases supplemental margin protection shall pay an annual premium equal to the product obtained by multiplying—

(A)

the percentage selected by the dairy producer under subsection (c);

(B)

the annual production history of the dairy producer; and

(C)

the premium per hundredweight of milk, as specified in the applicable table under paragraph (2) or (3).

(2)

Premium per hundredweight for first 4 million pounds of production

For the first 4,000,000 pounds of milk marketings included in the annual production history of a participating dairy producer, the premium per hundredweight corresponding to each coverage level specified in the following table is as follows:

Coverage LevelPremium per Cwt.
$4.50$0.01
$5.00$0.025
$5.50$0.04
$6.00$0.065
$6.50$0.09
$7.00$0.434
$7.50$0.590
$8.00$0.922
(3)

Premium per hundredweight for production in excess of 4 million pounds

For milk marketings in excess of 4,000,000 pounds included in the annual production history of a participating dairy producer, the premium per hundredweight corresponding to each coverage level is as follows:

Coverage LevelPremium per Cwt.
$4.50$0.015
$5.00$0.036
$5.50$0.081
$6.00$0.155
$6.50$0.230
$7.00$0.434
$7.50$0.590
$8.00$0.922
(4)

Time for payment

In promulgating the rules to initiate the margin protection program, the Secretary shall provide more than one method by which a participating dairy producer that purchases supplemental margin protection for a calendar year may pay the premium under this subsection for that year that maximizes producer payment flexibility and program integrity.

(e)

Producer’s Premium Obligations

(1)

Pro-ration of premium for new producers

A dairy producer described in section 1412(c)(2) that purchases supplemental margin protection for a calendar year after the start of the calendar year shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the producer purchases the coverage.

(2)

Legal obligation

A participating dairy producer that purchases supplemental margin protection for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that, if the dairy producer retires, the producer may request that Secretary cancel the supplemental margin protection if the producer has terminated the dairy operation entirely and certifies under oath that the producer will not be actively engaged in any dairy operation for at least the next seven years.

(f)

Supplemental Payment threshold

A participating dairy producer with supplemental margin protection shall receive a supplemental margin protection payment whenever the average actual dairy producer margin for a consecutive two-month period is less than the coverage level threshold selected by the dairy producer under subsection (b).

(g)

Supplemental margin protection payments

(1)

In general

The supplemental margin protection payment for a participating dairy producer is in addition to the basic margin protection payment.

(2)

Amount of payment

The supplemental margin protection payment for the dairy operation of a participating dairy producer shall be determined as follows:

(A)

The Secretary shall calculate the difference between the coverage level threshold selected by the dairy producer under subsection (b) and the greater of—

(i)

the average actual dairy producer margin for the consecutive two-month period; or

(ii)

$4.00.

(B)

The amount determined under subparagraph (A) shall be multiplied by the percentage selected by the participating dairy producer under subsection (c) and by the lesser of the following:

(i)

The annual production history of the dairy operation of the dairy producer, divided by six.

(ii)

The actual amount of milk marketed by the dairy operation of the dairy producer during the consecutive two-month period.

1416.

Effect of failure to pay administrative fees or premiums

(a)

Loss of benefits

A participating dairy producer that fails to pay the required administrative fee under section 1412 or is in arrears on premium payments for supplemental margin protection under section 1415—

(1)

remains legally obligated to pay the administrative fee or premiums, as the case may be; and

(2)

may not receive basic margin protection payments or supplemental margin protection payments until the fees or premiums are fully paid.

(b)

Enforcement

The Secretary may take such action as necessary to collect administrative fees and premium payments for supplemental margin protection.

B

Dairy Market Stabilization Program

1431.

Establishment of dairy market stabilization program

(a)

Program required; purpose

The Secretary shall establish and administer a dairy market stabilization program applicable to participating dairy producers for the purpose of assisting in balancing the supply of milk with demand when dairy producers are experiencing low or negative operating margins.

(b)

Election of stabilization program base calculation method

(1)

Election

When a dairy producer signs up under section 1412 to participate in the margin protection program, the dairy producer shall inform the Secretary of the method by which the stabilization program base for the dairy producer for fiscal year 2013 will be calculated under paragraph (3).

(2)

Change in calculation method

A participating dairy producer may change the stabilization program base calculation method to be used for a calendar year by notifying the Secretary of the change not later than a date determined by the Secretary.

(3)

Calculation methods

A participating dairy producer may elect either of the following methods for calculation of the stabilization program base for the producer:

(A)

The volume of the average monthly milk marketings of the dairy producer for the three months immediately preceding the announcement by the Secretary that the stabilization program will become effective.

(B)

The volume of the monthly milk marketings of the dairy producer for the same month in the preceding year as the month for which the Secretary has announced the stabilization program will become effective.

1432.

Threshold for implementation and reduction in dairy producer payments

(a)

When stabilization program required

Except as provided in subsection (b), the Secretary shall announce that the stabilization program is in effect and order reduced payments for any participating dairy producer that exceeds the applicable percentage of the producer’s stabilization program base whenever—

(1)

the actual dairy producer margin has been $6.00 or less per hundredweight of milk for each of the immediately preceding two months; or

(2)

the actual dairy producer margin has been $4.00 or less per hundredweight of milk for the immediately preceding month.

(b)

Exception

The Secretary shall not make the announcement under subsection (a) to implement the stabilization program or order reduced payments if any of the conditions described in section 1436(b) have been met during the two months immediately preceding the month in which the announcement under subsection (a) would otherwise be made by the Secretary in the absence of this exception.

(c)

Effective date for implementation of payment reductions

Reductions in dairy producer payments shall commence beginning on the first day of the month immediately following the date of the announcement by the Secretary under subsection (a).

1433.

Producer milk marketing information

(a)

Collection of milk marketing data

The Secretary shall establish, by regulation, a process to collect from participating dairy producers and handlers such information that the Secretary considers necessary for each month during which the stabilization program is in effect.

(b)

Reduce regulatory burden

When implementing the process under subsection (a), the Secretary shall minimize the regulatory burden on dairy producers and handlers.

1434.

Calculation and collection of reduced dairy producer payments

(a)

Reduced producer payments required

During any month in which payment reductions are in effect under the stabilization program, each handler shall reduce payments to each participating dairy producer from whom the handler receives milk.

(b)

Reductions based on actual dairy producer margin

(1)

Reduction requirement 1

Unless the reduction required by paragraph (2) or (3) applies, when the actual dairy producer margin has been $6.00 or less per hundredweight of milk for two consecutive months, the handler shall make payments to a participating dairy producer for a month based on the greater of the following:

(A)

98 percent of the stabilization program base of the dairy producer.

(B)

94 percent of the marketings of milk for the month by the producer.

(2)

Reduction requirement 2

Unless the reduction required by paragraph (3) applies, when the actual dairy producer margin has been $5.00 or less per hundredweight of milk for two consecutive months, the handler shall make payments to a participating dairy producer for a month based on the greater of the following:

(A)

97 percent of the stabilization program base of the dairy producer.

(B)

93 percent of the marketings of milk for the month by the producer.

(3)

Reduction requirement 3

When the actual dairy producer margin has been $4.00 or less for any one month, the handler shall make payments to a participating dairy producer for a month based on the greater of the following:

(A)

96 percent of the stabilization program base of the dairy producer.

(B)

92 percent of the marketings of milk for the month by the producer.

(c)

Continuation of reductions

The largest level of payment reduction required under paragraph (1), (2), or (3) of subsection (b) shall be continued for each month until the Secretary suspends the stabilization program and terminates payment reductions in accordance with section 1436.

(d)

Payment reduction exception

Notwithstanding any preceding subsection of this section, a handler shall make no payment reductions for a dairy producer for a month if the producer’s milk marketings for the month are equal to or less than the percentage of the stabilization program base applicable to the producer under paragraph (1), (2), or (3) of subsection (b).

1435.

Remitting monies to the Secretary and use of monies

(a)

Remitting monies

As soon as practicable after the end of each month during which payment reductions are in effect under the stabilization program, each handler shall remit to the Secretary an amount equal to the amount by which payments to participating dairy producers are reduced by the handler under section 1434.

(b)

Deposit of monies

All monies received under subsection (a) shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in subsection (c).

(c)

Use of monies

(1)

Availability for certain commodity donations

Within three months of the receipt of monies under subsection (a), the Secretary shall obligate the monies for the purpose of—

(A)

purchasing dairy products for donation to food banks and other programs that the Secretary determines appropriate; and

(B)

expanding consumption and building demand for dairy products.

(2)

No duplication of effort

The Secretary shall ensure that expenditures under paragraph (1) are compatible with, and do not duplicate, programs supported by the dairy research and promotion activities conducted under the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).

(3)

Accounting

The Secretary shall keep an accurate account of all monies obligated under paragraph (1).

(d)

Annual Report

Not later than December 31 of each year that the stabilization program is in effect, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that provides an accurate accounting of—

(1)

the monies received by the Secretary during the preceding fiscal year under subsection (a); and

(2)

all expenditures made by the Secretary under subsection (b) during the preceding fiscal year.

(e)

Enforcement

If a participating dairy producer or handler fails to remit or collect the amounts by which payments to participating dairy producers are reduced under section 1434, the producer or handler responsible for the failure shall be liable to the Secretary for the amount that should have been remitted or collected, plus interest. In addition to the enforcement authorities available under section 1437, the Secretary may enforce this subsection in the courts of the United States.

1436.

Suspension of reduced payment requirement

(a)

Determination of prices

For purposes of this section:

(1)

The price in the United States for cheddar cheese and nonfat dry milk shall be determined by the Secretary.

(2)

The world price of cheddar cheese and skim milk powder shall be determined by the Secretary.

(b)

Initial suspension thresholds

The Secretary shall announce that the stabilization program shall be suspended whenever the Secretary determines that—

(1)

the actual dairy producer margin is greater than $6.00 per hundredweight of milk for two consecutive months;

(2)

the dairy producer margin is equal to or less than $6.00 (but greater than $5.00) for two consecutive months, and during the same two consecutive months—

(A)

the price in the United States for cheddar cheese is equal to or greater than the world price of cheddar cheese; or

(B)

the price in the United States for nonfat dry milk is equal to or greater than the world price of skim milk powder;

(3)

the dairy producer margin is equal to or less than $5.00 (but greater than $4.00) for two consecutive months, and during the same two consecutive months—

(A)

the price in the United States for cheddar cheese is more than 5 percent above the world price of cheddar cheese; or

(B)

the price in the United States for nonfat dry milk is more than 5 percent above the world price of skim milk powder; or

(4)

the dairy producer margin is equal to or less than $4.00 for two consecutive months, and during the same two consecutive months—

(A)

the price in the United States for cheddar cheese is more than 7 percent above the world price of cheddar cheese; or

(B)

the price in the United States for nonfat dry milk is more than 7 percent above the world price of skim milk powder.

(c)

Enhanced suspension thresholds

If the stabilization program is not suspended pursuant to subsection (b) for six consecutive months or more, the stabilization program shall be suspended whenever the Secretary determines that—

(1)

the actual dairy producer margin is greater than $6.00 per hundredweight of milk for two consecutive months;

(2)

the dairy producer margin is equal to or less than $6.00 (but greater than $5.00) for two consecutive months, and during the same two consecutive months—

(A)

the price in the United States for cheddar cheese is not less than 97 percent of the world price of cheddar cheese; or

(B)

the price in the United States for non-fat dry milk is not less than 97 percent of the world price of skim milk powder;

(3)

the dairy producer margin is equal to or less than $5.00 (but greater than $4.00) for two consecutive months, and during the same two consecutive months—

(A)

the price in the United States for cheddar cheese is more than 3 percent above the world price of cheddar cheese; or

(B)

the price in the United States for non fat dry milk is more than 3 percent above the world price of skim milk powder; or

(4)

the dairy producer margin is equal to or less than $4.00 for two consecutive months, and during the same two consecutive months—

(A)

the price in the United States for cheddar cheese is more than 6 percent above the world price of cheddar cheese; or

(B)

the price in the United States for non fat dry milk is more than 6 percent above the world price of skim milk powder.

(d)

Implementation by handlers

Effective on the day after the date of the announcement by the Secretary under subsection (b) or (c) of the suspension of the stabilization program, the handler shall cease reducing payments to participating dairy producers under the stabilization program.

(e)

Condition on resumption of stabilization program

Upon the announcement by the Secretary under subsection (b) or (c) that the stabilization program has been suspended, the stabilization program may not be implemented again until, at the earliest—

(1)

two months have passed, beginning on the first day of the month immediately following the announcement by the Secretary; and

(2)

the conditions of section 1432(a) are again met.

1437.

Enforcement

(a)

Unlawful act

It shall be unlawful and a violation of the this subpart for any person subject to the stabilization program to willfully fail or refuse to provide, or delay the timely reporting of, accurate information and remittance of funds to the Secretary in accordance with this subpart.

(b)

Order

After providing notice and opportunity for a hearing to an affected person, the Secretary may issue an order against any person to cease and desist from continuing any violation of this subpart.

(c)

Appeal

An order of the Secretary under subsection (b) shall be final and conclusive unless an affected person files an appeal of the order of the Secretary in United States district court not later than 30 days after the date of the issuance of the order. A finding of the Secretary in the order shall be set aside only if the finding is not supported by substantial evidence.

(d)

Noncompliance with order

If a person subject to this subpart fails to obey an order issued under subsection (b) after the order has become final and unappealable, or after the appropriate United States district court has entered a final judgment in favor of the Secretary, the United States may apply to the appropriate United States district court for enforcement of the order. If the court determines that the order was lawfully made and duly served and that the person violated the order, the court shall enforce the order.

1438.

Audit requirements

(a)

Audits of producer and handler compliance

(1)

Audits authorized

If determined by the Secretary to be necessary to ensure compliance by participating dairy producers and handlers with the stabilization program, the Secretary may conduct periodic audits of participating dairy producers and handlers.

(2)

Sample of dairy producers

Any audit conducted under this subsection shall include, at a minimum, investigation of a statistically valid and random sample of participating dairy producers.

(b)

Submission of results

The Secretary shall submit the results of any audit conducted under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate and include such recommendations as the Secretary considers appropriate regarding the stabilization program.

C

Commodity Credit Corporation

1451.

Use of Commodity Credit Corporation

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

D

Initiation and duration

1461.

Rulemaking

(a)

Procedure

The promulgation of regulations for the initiation of the margin protection program and the stabilization program, and for administration of such programs, shall be made without regard to—

(1)

chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act);

(2)

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

(3)

the notice and comment provisions of section 553 of title 5, United States Code.

(b)

Congressional review of agency rulemaking

In carrying out subsection (a), the Secretary shall use the authority provided under section 808 of title 5, United States Code.

1462.

Duration

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

II

Repeal or reauthorization of other dairy-related provisions

1481.

Repeal of dairy product price support and milk income loss contract programs

(a)

Repeal of dairy product price support program

Section 1501 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.

(b)

Repeal of milk income loss contract program

Section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.

1482.

Repeal of dairy export incentive program

(a)

Repeal

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

(b)

Conforming amendments

Section 902(2) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is amended—

(1)

by striking subparagraph (D); and

(2)

by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.

1483.

Extension of dairy forward pricing program

Section 1502(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8772(e)) is amended—

(1)

in paragraph (1), by striking 2012 and inserting 2017; and

(2)

in paragraph (2), by striking 2015 and inserting 2020.

1484.

Extension of dairy indemnity program

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

1485.

Extension of dairy promotion and research program

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

1486.

Repeal of Federal Milk Marketing Order Review Commission

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

III

Effective date

1491.

Effective date

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

E

Supplemental Agricultural Disaster Assistance Programs

1501.

Supplemental agricultural disaster assistance

(a)

Definitions

In this section:

(1)

Eligible producer on a farm

(A)

In general

The term eligible producer on a farm means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes the production and market risks associated with the agricultural production of crops or livestock.

(B)

Description

An individual or entity referred to in subparagraph (A) is—

(i)

a citizen of the United States;

(ii)

a resident alien;

(iii)

a partnership of citizens of the United States; or

(iv)

a corporation, limited liability corporation, or other farm organizational structure organized under State law.

(2)

Farm-raised fish

The term farm-raised fish means any aquatic species that is propagated and reared in a controlled environment.

(3)

Livestock

The term livestock includes—

(A)

cattle (including dairy cattle);

(B)

bison;

(C)

poultry;

(D)

sheep;

(E)

swine;

(F)

horses; and

(G)

other livestock, as determined by the Secretary.

(4)

Secretary

The term Secretary means the Secretary of Agriculture.

(b)

Livestock indemnity payments

(1)

Payments

For each of the fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to make livestock indemnity payments to eligible producers on farms that have incurred livestock death losses in excess of the normal mortality, as determined by the Secretary, due to—

(A)

attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators; or

(B)

adverse weather, as determined by the Secretary, during the calendar year, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat, and extreme cold.

(2)

Payment rates

Indemnity payments to an eligible producer on a farm under paragraph (1) shall be made at a rate of 75 percent of the market value of the applicable livestock on the day before the date of death of the livestock, as determined by the Secretary.

(3)

Special rule for payments made due to disease

The Secretary shall ensure that payments made to an eligible producer under paragraph (1) are not made for the same livestock losses for which compensation is provided pursuant to section 10407(d) of the Animal Health Protection Act (7 U.S.C. 8306(d)).

(c)

Livestock forage disaster program

(1)

Definitions

In this subsection:

(A)

Covered livestock

(i)

In general

Except as provided in clause (ii), the term covered livestock means livestock of an eligible livestock producer that, during the 60 days prior to the beginning date of a qualifying drought or fire condition, as determined by the Secretary, the eligible livestock producer—

(I)

owned;

(II)

leased;

(III)

purchased;

(IV)

entered into a contract to purchase;

(V)

is a contract grower; or

(VI)

sold or otherwise disposed of due to qualifying drought conditions during—

(aa)

the current production year; or

(bb)

subject to paragraph (3)(B)(ii), 1 or both of the 2 production years immediately preceding the current production year.

(ii)

Exclusion

The term covered livestock does not include livestock that were or would have been in a feedlot, on the beginning date of the qualifying drought or fire condition, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary.

(B)

Drought monitor

The term drought monitor means a system for classifying drought severity according to a range of abnormally dry to exceptional drought, as defined by the Secretary.

(C)

Eligible livestock producer

(i)

In general

The term eligible livestock producer means an eligible producer on a farm that—

(I)

is an owner, cash or share lessee, or contract grower of covered livestock that provides the pastureland or grazing land, including cash-leased pastureland or grazing land, for the livestock;

(II)

provides the pastureland or grazing land for covered livestock, including cash-leased pastureland or grazing land that is physically located in a county affected by drought;

(III)

certifies grazing loss; and

(IV)

meets all other eligibility requirements established under this subsection.

(ii)

Exclusion

The term eligible livestock producer does not include an owner, cash or share lessee, or contract grower of livestock that rents or leases pastureland or grazing land owned by another person on a rate-of-gain basis.

(D)

Normal carrying capacity

The term normal carrying capacity, with respect to each type of grazing land or pastureland in a county, means the normal carrying capacity, as determined under paragraph (3)(D)(i), that would be expected from the grazing land or pastureland for livestock during the normal grazing period, in the absence of a drought or fire that diminishes the production of the grazing land or pastureland.

(E)

Normal grazing period

The term normal grazing period, with respect to a county, means the normal grazing period during the calendar year for the county, as determined under paragraph (3)(D)(i).

(2)

Program

For each of the fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide compensation for losses to eligible livestock producers due to grazing losses for covered livestock due to—

(A)

a drought condition, as described in paragraph (3); or

(B)

fire, as described in paragraph (4).

(3)

Assistance for losses due to drought conditions

(A)

Eligible losses

(i)

In general

An eligible livestock producer may receive assistance under this subsection only for grazing losses for covered livestock that occur on land that—

(I)

is native or improved pastureland with permanent vegetative cover; or

(II)

is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.

(ii)

Exclusions

An eligible livestock producer may not receive assistance under this subsection for grazing losses that occur on land used for haying or grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).

(B)

Monthly payment rate

(i)

In general

Except as provided in clause (ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be equal to 60 percent of the lesser of—

(I)

the monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as determined under subparagraph (C); or

(II)

the monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer.

(ii)

Partial compensation

In the case of an eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions in 1 or both of the 2 production years immediately preceding the current production year, as determined by the Secretary, the payment rate shall be 80 percent of the payment rate otherwise calculated in accordance with clause (i).

(C)

Monthly feed cost

(i)

In general

The monthly feed cost shall equal the product obtained by multiplying—

(I)

30 days;

(II)

a payment quantity that is equal to the feed grain equivalent, as determined under clause (ii); and

(III)

a payment rate that is equal to the corn price per pound, as determined under clause (iii).

(ii)

Feed grain equivalent

For purposes of clause (i)(II), the feed grain equivalent shall equal—

(I)

in the case of an adult beef cow, 15.7 pounds of corn per day; or

(II)

in the case of any other type of weight of livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day necessary to feed the livestock.

(iii)

Corn price per pound

For purposes of clause (i)(III), the corn price per pound shall equal the quotient obtained by dividing—

(I)

the higher of—

(aa)

the national average corn price per bushel for the 12-month period immediately preceding March 1 of the year for which the disaster assistance is calculated; or

(bb)

the national average corn price per bushel for the 24-month period immediately preceding that March 1; by

(II)

56.

(D)

Normal grazing period and drought monitor intensity

(i)

Fsa county committee determinations

(I)

In general

The Secretary shall determine the normal carrying capacity and normal grazing period for each type of grazing land or pastureland in the county served by the applicable committee.

(II)

Changes

No change to the normal carrying capacity or normal grazing period established for a county under subclause (I) shall be made unless the change is requested by the appropriate State and county Farm Service Agency committees.

(ii)

Drought intensity

(I)

D2

An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having a D2 (severe drought) intensity in any area of the county for at least 8 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B).

(II)

D3

An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph—

(aa)

in an amount equal to 2 monthly payments using the monthly payment rate determined under subparagraph (B); or

(bb)

if the county is rated as having a D3 (extreme drought) intensity in any area of the county for at least 4 weeks during the normal grazing period for the county, or is rated as having a D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period, in an amount equal to 3 monthly payments using the monthly payment rate determined under subparagraph (B).

(4)

Assistance for losses due to fire on public managed land

(A)

In general

An eligible livestock producer may receive assistance under this paragraph only if—

(i)

the grazing losses occur on rangeland that is managed by a Federal agency; and

(ii)

the eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire.

(B)

Payment rate

The payment rate for assistance under this paragraph shall be equal to 50 percent of the monthly feed cost for the total number of livestock covered by the Federal lease of the eligible livestock producer, as determined under paragraph (3)(C).

(C)

Payment duration

(i)

In general

Subject to clause (ii), an eligible livestock producer shall be eligible to receive assistance under this paragraph for the period—

(I)

beginning on the date on which the Federal agency excludes the eligible livestock producer from using the managed rangeland for grazing; and

(II)

ending on the last day of the Federal lease of the eligible livestock producer.

(ii)

Limitation

An eligible livestock producer may only receive assistance under this paragraph for losses that occur on not more than 180 days per year.

(5)

No duplicative payments

An eligible livestock producer may elect to receive assistance for grazing or pasture feed losses due to drought conditions under paragraph (3) or fire under paragraph (4), but not both for the same loss, as determined by the Secretary.

(d)

Emergency assistance for livestock, honey bees, and farm-raised fish

(1)

In general

For each of the fiscal years 2012 through 2017, the Secretary shall use not more than $20,000,000 of the funds of the Commodity Credit Corporation to provide emergency relief to eligible producers of livestock, honey bees, and farm-raised fish to aid in the reduction of losses due to disease (including cattle tick fever), adverse weather, or other conditions, such as blizzards and wildfires, as determined by the Secretary, that are not covered under subsection (b) or (c).

(2)

Use of funds

Funds made available under this subsection shall be used to reduce losses caused by feed or water shortages, disease, or other factors as determined by the Secretary.

(3)

Availability of funds

Any funds made available under this subsection shall remain available until expended.

(e)

Tree assistance program

(1)

Definitions

In this subsection:

(A)

Eligible orchardist

The term eligible orchardist means a person that produces annual crops from trees for commercial purposes.

(B)

Natural disaster

The term natural disaster means plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other occurrence, as determined by the Secretary.

(C)

Nursery tree grower

The term nursery tree grower means a person who produces nursery, ornamental, fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary.

(D)

Tree

The term tree includes a tree, bush, and vine.

(2)

Eligibility

(A)

Loss

Subject to subparagraph (B), for each of the fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide assistance—

(i)

under paragraph (3) to eligible orchardists and nursery tree growers that planted trees for commercial purposes but lost the trees as a result of a natural disaster, as determined by the Secretary; and

(ii)

under paragraph (3)(B) to eligible orchardists and nursery tree growers that have a production history for commercial purposes on planted or existing trees but lost the trees as a result of a natural disaster, as determined by the Secretary.

(B)

Limitation

An eligible orchardist or nursery tree grower shall qualify for assistance under subparagraph (A) only if the tree mortality of the eligible orchardist or nursery tree grower, as a result of damaging weather or related condition, exceeds 15 percent (adjusted for normal mortality).

(3)

Assistance

Subject to paragraph (4), the assistance provided by the Secretary to eligible orchardists and nursery tree growers for losses described in paragraph (2) shall consist of—

(A)
(i)

reimbursement of 65 percent of the cost of replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or

(ii)

at the option of the Secretary, sufficient seedlings to reestablish a stand; and

(B)

reimbursement of 50 percent of the cost of pruning, removal, and other costs incurred by an eligible orchardist or nursery tree grower to salvage existing trees or, in the case of tree mortality, to prepare the land to replant trees as a result of damage or tree mortality due to a natural disaster, as determined by the Secretary, in excess of 15 percent damage or mortality (adjusted for normal tree damage and mortality).

(4)

Limitations on assistance

(A)

Definitions of legal entity and person

In this paragraph, the terms legal entity and person have the meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)).

(B)

Amount

The total amount of payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this subsection may not exceed $125,000 for any crop year, or an equivalent value in tree seedlings.

(C)

Acres

The total quantity of acres planted to trees or tree seedlings for which a person or legal entity shall be entitled to receive payments under this subsection may not exceed 500 acres.

(f)

Payment limitations

(1)

Definitions of legal entity and person

In this subsection, the terms legal entity and person have the meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a).

(2)

Amount

The total amount of disaster assistance payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this section (excluding payments received under subsection (e)) may not exceed $125,000 for any crop year.

(3)

Direct attribution

Subsections (e) and (f) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any successor provisions relating to direct attribution shall apply with respect to assistance provided under this section.

F

Administration

1601.

Administration generally

(a)

Use of Commodity Credit Corporation

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

(b)

Determinations by Secretary

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

(c)

Regulations

(1)

In general

Except as otherwise provided in this subsection, not later than 90 days after the date of enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title.

(2)

Procedure

The promulgation of the regulations and administration of this title and the amendments made by this title and sections 11003 and 11016 of this Act shall be made without regard to—

(A)

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

(B)

chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act); and

(C)

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

(3)

Congressional review of agency rulemaking

In carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

(d)

Adjustment Authority Related to Trade Agreements Compliance

(1)

Required determination; adjustment

If the Secretary determines that expenditures under this title that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed the allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of the expenditures during that period to ensure that the expenditures do not exceed the allowable levels.

(2)

Congressional notification

Before making any adjustment under paragraph (1), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the determination made under that paragraph and the extent of the adjustment to be made.

1602.

Suspension of permanent price support authority

(a)

Agricultural Adjustment Act of 1938

The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2013 through 2017 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2017:

(1)

Parts II through V of subtitle B of title III (7 U.S.C. 1326 et seq.).

(2)

In the case of upland cotton, section 377 (7 U.S.C. 1377).

(3)

Subtitle D of title III (7 U.S.C. 1379a et seq.).

(4)

Title IV (7 U.S.C. 1401 et seq.).

(b)

Agricultural Act of 1949

The following provisions of the Agricultural Act of 1949 shall not be applicable to the 2013 through 2017 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act and through December 31, 2017:

(1)

Section 101 (7 U.S.C. 1441).

(2)

Section 103(a) (7 U.S.C. 1444(a)).

(3)

Section 105 (7 U.S.C. 1444b).

(4)

Section 107 (7 U.S.C. 1445a).

(5)

Section 110 (7 U.S.C. 1445e).

(6)

Section 112 (7 U.S.C. 1445g).

(7)

Section 115 (7 U.S.C. 1445k).

(8)

Section 201 (7 U.S.C. 1446).

(9)

Title III (7 U.S.C. 1447 et seq.).

(10)

Title IV (7 U.S.C. 1421 et seq.), other than sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).

(11)

Title V (7 U.S.C. 1461 et seq.).

(12)

Title VI (7 U.S.C. 1471 et seq.).

(c)

Suspension of certain quota provisions

The joint resolution entitled A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended, approved May 26, 1941 (7 U.S.C. 1330, 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 2013 through 2017.

1603.

Payment limitations

(a)

In general

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

(b)

Limitation on payments for covered commodities (other than peanuts)

The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under subtitle A of title I of the Federal Agriculture Reform and Risk Management Act of 2012 for 1 or more covered commodities (other than peanuts) may not exceed $125,000.

(c)

Limitation on payments for peanuts

The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under subtitle A of title I of the Federal Agriculture Reform and Risk Management Act of 2012 for peanuts may not exceed $125,000.

.

(b)

Conforming amendments

(1)

Section 1001(f) of the Food Security Act of 1985 (7 U.S.C. 1308(f)) is amended by striking or title XII each place it appears in paragraphs (5)(A) and (6)(A) and inserting , title I of the Federal Agriculture Reform and Risk Management Act of 2012, or title XII.

(2)

Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3(a)) is amended by inserting title I of the Federal Agriculture Reform and Risk Management Act of 2012, after 2008,.

(c)

Application

The amendments made by this section shall apply beginning with the 2013 crop year.

1604.

Adjusted gross income limitation

(a)

Limitations and covered benefits

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

(1)

in the subsection heading, by striking Limitations and inserting Limitations on Commodity and Conservation Programs;

(2)

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

(1)

Limitation

Notwithstanding any other provision of law, a person or legal entity shall not be eligible to receive any benefit described in paragraph (2) during a crop, fiscal, or program year, as appropriate, if the average adjusted gross income of the person or legal entity exceeds $950,000.

(2)

Covered benefits

Paragraph (1) applies with respect to a payment or benefit under section 1107, subtitle B or E of title I, or title II of the Federal Agriculture Reform and Risk Management Act of 2012, title II of the Farm Security and Rural Investment Act of 2002, title II of the Food, Conservation, and Energy Act of 2008, title XII of the Food Security Act of 1985, section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)), or section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

.

(b)

Elimination of unused definitions

Paragraph (1) of section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a)) is amended to read as follows:

(1)

Average adjusted gross income

In this section, the term average adjusted gross income, with respect to a person or legal entity, means the average of the adjusted gross income or comparable measure of the person or legal entity over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary.

.

(c)

Income determination

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

(1)

by striking subsection (c); and

(2)

by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively.

(d)

Conforming amendments

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

(1)

in subsection (a)(2)—

(A)

by striking subparagraph (A) or (B) of; and

(B)

by striking , the average adjusted gross farm income, and the average adjusted gross nonfarm income;

(2)

in subsection (a)(3), by striking , average adjusted gross farm income, and average adjusted gross nonfarm income both places it appears;

(3)

in subsection (c) (as redesignated by subsection (c)(2) of this section)—

(A)

in paragraph (1), by striking , average adjusted gross farm income, and average adjusted gross nonfarm income both places it appears; and

(B)

in paragraph (2), by striking paragraphs (1)(C) and (2)(B) of subsection (b) and inserting subsection (b)(2); and

(4)

in subsection (d) (as redesignated by subsection (c)(2) of this section)—

(A)

by striking paragraphs (1)(C) and (2)(B) of subsection (b) and inserting subsection (b)(2); and

(B)

by striking , average adjusted gross farm income, or average adjusted gross nonfarm income.

(e)

Effective period

Subsection (e) of section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as redesignated by subsection (c)(2) of this section, is amended by striking 2009 through 2012 and inserting 2013 through 2017.

(f)

Limitation on applicability

Section 1001(d) of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by inserting before the period at the end the following: or title I of the Federal Agriculture Reform and Risk Management Act of 2012.

(g)

Transition

Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a), as in effect on the day before the date of the enactment of this Act, shall apply with respect to the 2012 crop, fiscal, or program year, as appropriate, for each program described in paragraphs (1)(C) and (2)(B) of subsection (b) of that section (as so in effect on that day).

1605.

Geographically disadvantaged farmers and ranchers

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

1606.

Personal liability of producers for deficiencies

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

1607.

Prevention of deceased individuals receiving payments under farm commodity programs

(a)

Reconciliation

At least twice each year, the Secretary shall reconcile social security numbers of all individuals who receive payments under this title, whether directly or indirectly, with the Commissioner of Social Security to determined if the individuals are alive.

(b)

Preclusion

The Secretary shall preclude the issuance of payments to, and on behalf of, deceased individuals that were not eligible for payments.

1608.

Technical corrections

(a)

Missing punctuation

Section 359f(c)(1)(B) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a period at the end.

(b)

Erroneous cross reference

(1)

Amendment

Section 1603(g) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1739) is amended in paragraphs (2) through (6) and the amendments made by those paragraphs by striking 1703(a) each place it appears and inserting 1603(a).

(2)

Effective date

This subsection and the amendments made by this subsection take effect as if included in the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1651).

(c)

Continued applicability of appropriations general provision

Section 767 of division A of Public Law 108–7 (7 U.S.C. 7911 note; 117 Stat. 48) is amended—

(1)

in subsection (a)—

(A)

by striking sections 1101 and 1102 of Public Law 107–171 and inserting subtitle A of title I of the Federal Agriculture Reform and Risk Management Act of 2012; and

(B)

by striking such section 1102 and inserting such subtitle; and

(2)

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

(b)

This section, as amended by section 1608(c) of the Federal Agriculture Reform and Risk Management Act of 2012, shall take effect beginning with the 2013 crop year.

.

1609.

Assignment of payments

(a)

In general

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

(b)

Notice

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

1610.

Tracking of benefits

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

1611.

Signature authority

(a)

In general

In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of any person signing the document on behalf of the applicant or any other individual, entity, general partnership, or joint venture, or the documents relied upon were determined inadequate or invalid, unless the person signing the program document knowingly and willfully falsified the evidence of signature authority or a signature.

(b)

Affirmation

(1)

In general

Nothing in this section prohibits the Secretary from asking a proper party to affirm any document that otherwise would be considered approved under subsection (a).

(2)

No retroactive effect

A denial of benefits based on a lack of affirmation under paragraph (1) shall not be retroactive with respect to third-party producers who were not the subject of the erroneous representation of authority, if the third-party producers—

(A)

relied on the prior approval by the Secretary of the documents in good faith; and

(B)

substantively complied with all program requirements.

1612.

Implementation

(a)

Streamlining

In implementing this title, the Secretary shall, to the maximum extent practicable—

(1)

seek to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements;

(2)

improve coordination, information sharing, and administrative work with the Risk Management Agency and the Natural Resources Conservation Service; and

(3)

take advantage of new technologies to enhance efficiency and effectiveness of program delivery to producers.

(b)

Maintenance of base acres and payment yields

(1)

In general

The Secretary shall maintain through September 30, 2017, for each covered commodity and upland cotton, base acres and payment yields on a farm established under—

(A)
(i)

in the case of covered commodities and upland cotton, sections 1101 and 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912); and

(ii)

in the case of peanuts, section 1302 of that Act (7 U.S.C. 7952); and

(B)
(i)

in the case of covered commodities and upland cotton, sections 1101 and 1102 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711, 8712); and

(ii)

in the case of peanuts, section 1302 of that Act (7 U.S.C. 8752).

(2)

Special rule for long grain and medium grain rice

(A)

In general

The Secretary shall maintain separate base acres for long grain rice and medium grain rice.

(B)

Limitation

In carrying out this paragraph, the Secretary shall use the same total base acres and payment yields established with respect to rice under sections 1108 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8718), as in effect on the day before the date of enactment of this Act, subject to any adjustment under section 1105.

(c)

Implementation

The Secretary shall make available to the Farm Service Agency to carry out this title $100,000,000.

II

Conservation

A

Conservation Reserve Program

2001.

Extension and enrollment requirements of conservation reserve program

(a)

Extension

Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 2012 and inserting 2017.

(b)

Eligible land

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

(1)

in paragraph (1)(B), by striking the date of enactment of the Food, Conservation, and Energy Act of 2008 and inserting the date of the enactment of the Federal Agriculture Reform and Risk Management Act of 2012;

(2)

by striking paragraph (2) and redesignating paragraph (3) as paragraph (2);

(3)

by inserting before paragraph (4) the following new paragraph:

(3)

grasslands that—

(A)

contain forbs or shrubland (including improved rangeland and pastureland) for which grazing is the predominant use;

(B)

are located in an area historically dominated by grasslands; and

(C)

could provide habitat for animal and plant populations of significant ecological value if the land is retained in its current use or restored to a natural condition;

;

(4)

in paragraph (4)(C), by striking filterstrips devoted to trees or shrubs and inserting filterstrips or riparian buffers devoted to trees, shrubs, or grasses; and

(5)

by striking paragraph (5) and inserting the following new paragraph:

(5)

the portion of land in a field not enrolled in the conservation reserve in a case in which—

(A)

more than 50 percent of the land in the field is enrolled as a buffer or filterstrip, or more than 75 percent of the land in the field is enrolled as a conservation practice other than as a buffer or filterstrip; and

(B)

the remainder of the field is—

(i)

infeasible to farm; and

(ii)

enrolled at regular rental rates.

.

(c)

Planting Status of Certain Land

Section 1231(c) of the Food Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking if and all that follows through the period at the end and inserting if, during the crop year, the land was devoted to a conserving use..

(d)

Enrollment

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

(d)

Enrollment

(1)

Maximum acreage enrolled

The Secretary may maintain in the conservation reserve at any one time during—

(A)

fiscal year 2012, no more than 32,000,000 acres;

(B)

fiscal year 2013, no more than 29,000,000 acres;

(C)

fiscal year 2014, no more than 26,000,000 acres;

(D)

fiscal year 2015, no more than 26,000,000 acres;

(E)

fiscal year 2016, no more than 25,500,000 acres; and

(F)

fiscal year 2017, no more than 25,000,000 acres.

(2)

Grasslands

(A)

Limitation

For purposes of applying the limitations in paragraph (1), no more than 2,000,000 acres of the land described in subsection (b)(3) may be enrolled in the program at any one time during the 2013 through 2017 fiscal years.

(B)

Priority

In enrolling acres under subparagraph (A), the Secretary may give priority to land with expiring conservation reserve program contracts.

(C)

Method of enrollment

In enrolling acres under subparagraph (A), the Secretary shall make the program available to owners or operators of eligible land on a continuous enrollment basis with one or more ranking periods.

.

(e)

Duration of contract

Section 1231(e) of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended by striking paragraphs (2) and (3) and inserting the following new paragraph:

(2)

Special rule for certain land

In the case of land devoted to hardwood trees, shelterbelts, windbreaks, or wildlife corridors under a contract entered into under this subchapter, the owner or operator of the land may, within the limitations prescribed under paragraph (1), specify the duration of the contract.

.

(f)

Conservation priority areas

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

(1)

in paragraph (1), by striking watershed areas of the Chesapeake Bay Region, the Great Lakes Region, the Long Island Sound Region, and other;

(2)

in paragraph (2), by striking watersheds.—Watersheds and inserting areas.—Areas; and

(3)

in paragraph (3), by striking a watershed’s designation— and all that follows through the period at the end and inserting an area’s designation if the Secretary finds that the area no longer contains actual and significant adverse water quality or habitat impacts related to agricultural production activities..

2002.

Farmable wetland program

(a)

Extension

Section 1231B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended—

(1)

by striking 2012 and inserting 2017; and

(2)

by striking a program and inserting a farmable wetland program.

(b)

Eligible acreage

Section 1231B(b)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking flow from a row crop agriculture drainage system and inserting surface and subsurface flow from row crop agricultural production.

(c)

Acreage limitation

Section 1231B(c)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 3831b(c)(1)(B)) is amended by striking 1,000,000 and inserting 750,000.

(d)

Clerical amendment

The heading of section 1231B of the Food Security Act of 1985 (16 U.S.C. 3831b) is amended to read as follows: Farmable wetland program.

2003.

Duties of owners and operators

(a)

Limitation on harvesting, grazing, or commercial use of forage

Section 1232(a)(8) of the Food Security Act of 1985 (16 U.S.C. 3832(a)(8)) is amended by striking except that and all that follows through the semicolon at the end of the paragraph and inserting except as provided in subsection (b) or (c) of section 1233;.

(b)

Conservation plan requirements

Subsection (b) of section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is amended to read as follows:

(b)

Conservation plans

The plan referred to in subsection (a)(1) shall set forth—

(1)

the conservation measures and practices to be carried out by the owner or operator during the term of the contract; and

(2)

the commercial use, if any, to be permitted on the land during the term.

.

(c)

Rental payment reduction

Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (d).

2004.

Duties of the Secretary

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

1233.

Duties of the Secretary

(a)

Cost-share and rental payments

In return for a contract entered into by an owner or operator under the conservation reserve program, the Secretary shall—

(1)

share the cost of carrying out the conservation measures and practices set forth in the contract for which the Secretary determines that cost sharing is appropriate and in the public interest; and

(2)

for a period of years not in excess of the term of the contract, pay an annual rental payment in an amount necessary to compensate for—

(A)

the conversion of highly erodible cropland or other eligible lands normally devoted to the production of an agricultural commodity on a farm or ranch to a less intensive use;

(B)

the retirement of any base history that the owner or operator agrees to retire permanently; and

(C)

the development and management of grasslands for multiple natural resource conservation benefits, including to soil, water, air, and wildlife.

(b)

Specified activities permitted

The Secretary shall permit certain activities or commercial uses of land that is subject to a contract under the conservation reserve program in a manner that is consistent with a plan approved by the Secretary, as follows:

(1)

Harvesting, grazing, or other commercial use of the forage in response to a drought or other emergency created by a natural disaster, without any reduction in the rental rate.

(2)

Consistent with the conservation of soil, water quality, and wildlife habitat (including habitat during nesting seasons for birds in the area), and in exchange for a reduction of not less than 25 percent in the annual rental rate for the acres covered by the authorized activity—

(A)

managed harvesting and other commercial use (including the managed harvesting of biomass), except that in permitting managed harvesting, the Secretary, in coordination with the State technical committee—

(i)

shall develop appropriate vegetation management requirements; and

(ii)

shall identify periods during which managed harvesting may be conducted, such that the frequency is not more than once every three years;

(B)

routine grazing or prescribed grazing for the control of invasive species, except that in permitting such routine grazing or prescribed grazing, the Secretary, in coordination with the State technical committee—

(i)

shall develop appropriate vegetation management requirements and stocking rates for the land that are suitable for continued routine grazing; and

(ii)

shall identify the periods during which routine grazing may be conducted, such that the frequency is not more than once every two years, taking into consideration regional differences such as—

(I)

climate, soil type, and natural resources;

(II)

the number of years that should be required between routine grazing activities; and

(III)

how often during a year in which routine grazing is permitted that routine grazing should be allowed to occur; and

(C)

the installation of wind turbines and associated access, except that in permitting the installation of wind turbines, the Secretary shall determine the number and location of wind turbines that may be installed, taking into account—

(i)

the location, size, and other physical characteristics of the land;

(ii)

the extent to which the land contains wildlife and wildlife habitat; and

(iii)

the purposes of the conservation reserve program under this subchapter.

(3)

The intermittent and seasonal use of vegetative buffer practices incidental to agricultural production on lands adjacent to the buffer such that the permitted use does not destroy the permanent vegetative cover.

(c)

Authorized activities on grasslands

For eligible land described in section 1231(b)(3), the Secretary shall permit the following activities:

(1)

Common grazing practices, including maintenance and necessary cultural practices, on the land in a manner that is consistent with maintaining the viability of grassland, forb, and shrub species appropriate to that locality.

(2)

Haying, mowing, or harvesting for seed production, subject to appropriate restrictions during the nesting season for critical bird species in the area.

(3)

Fire presuppression, fire-related rehabilitation, and construction of fire breaks.

(4)

Grazing-related activities, such as fencing and livestock watering.

(d)

Resource conserving use

(1)

In general

Beginning on the date that is 1 year before the date of termination of a contract under the program, the Secretary shall allow an owner or operator to make conservation and land improvements that facilitate maintaining protection of enrolled land after expiration of the contract.

(2)

Conservation plan

The Secretary shall require an owner or operator carrying out the activities described in paragraph (1) to develop and implement a conservation plan.

(3)

Re-enrollment prohibited

Land improved under paragraph (1) may not be re-enrolled in the conservation reserve program for 5 years after the date of termination of the contract.

.

2005.

Payments

(a)

Trees, windbreaks, shelterbelts, and wildlife corridors

Section 1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is amended—

(1)

in clause (i), by inserting and after the semicolon;

(2)

by striking clause (ii); and

(3)

by redesignating clause (iii) as clause (ii).

(b)

Annual rental payments

Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended—

(1)

in paragraph (1), by inserting or other eligible lands after highly erodible cropland both places it appears; and

(2)

by striking paragraph (2) and inserting the following new paragraph:

(2)

Methods of Determination

(A)

In general

The amounts payable to owners or operators in the form of rental payments under contracts entered into under this subchapter may be determined through—

(i)

the submission of bids for such contracts by owners and operators in such manner as the Secretary may prescribe; or

(ii)

such other means as the Secretary determines are appropriate.

(B)

Grasslands

In the case of eligible land described in section 1231(b)(3), the Secretary shall make annual payments in an amount that is not more than 75 percent of the grazing value of the land covered by the contract.

.

(c)

Payment schedule

Subsection (d) of section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is amended to read as follows:

(d)

Payment schedule

(1)

In general

Except as otherwise provided in this section, payments under this subchapter shall be made in cash in such amount and on such time schedule as is agreed on and specified in the contract.

(2)

Advance payment

Payments under this subchapter may be made in advance of determination of performance.

.

(d)

Payment limitation

Section 1234(f) of the Food Security Act of 1985 (16 U.S.C. 3834(f)) is amended—

(1)

in paragraph (1), by striking , including rental payments made in the form of in-kind commodities,;

(2)

by striking paragraph (3); and

(3)

by redesignating paragraph (4) as paragraph (2).

2006.

Contract requirements

(a)

Early termination by owner or operator

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

(1)

in paragraph (1)(A)—

(A)

by striking The Secretary and inserting During fiscal year 2013, the Secretary; and

(B)

by striking before January 1, 1995,;

(2)

in paragraph (2), by striking subparagraph (C) and inserting the following:

(C)

Land devoted to hardwood trees.

(D)

Wildlife habitat, duck nesting habitat, pollinator habitat, upland bird habitat buffer, wildlife food plots, State acres for wildlife enhancement, shallow water areas for wildlife, and rare and declining habitat.

(E)

Farmable wetland and restored wetland.

(F)

Land that contains diversions, erosion control structures, flood control structures, contour grass strips, living snow fences, salinity reducing vegetation, cross wind trap strips, and sediment retention structures.

(G)

Land located within a federally-designated wellhead protection area.

(H)

Land that is covered by an easement under the conservation reserve program.

(I)

Land located within an average width, according to the applicable Natural Resources Conservation Service field office technical guide, of a perennial stream or permanent water body.

; and

(3)

in paragraph (3), by striking 60 days after the date on which the owner or operator submits the notice required under paragraph (1)(C) and inserting upon approval by the Secretary.

(b)

Transition option for certain farmers or ranchers

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

(1)

in paragraph (1)—

(A)

in the matter preceding subparagraph (A), by striking Duties and all that follows through a beginning farmer and inserting Transition to covered farmer or rancher.—In the case of a contract modification approved in order to facilitate the transfer of land subject to a contract from a retired farmer or rancher to a beginning farmer;

(B)

in subparagraph (A)(i), by inserting , including preparing to plant an agricultural crop after improvements;

(C)

in subparagraph (D), by striking the farmer or rancher and inserting the covered farmer or rancher; and

(D)

in subparagraph (E), by striking section 1001A(b)(3)(B) and inserting section 1001; and

(2)

in paragraph (2), by striking requirement of section 1231(h)(4)(B) and inserting option pursuant to section 1234(c)(2)(A)(ii).

(c)

Final year contract

Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended by adding at the end the following new subsections:

(g)

Final year of contract

The Secretary shall not consider an owner or operator to be in violation of a term or condition of the conservation reserve contract if—

(1)

during the year prior to expiration of the contract, the land is enrolled in the conservation stewardship program; and

(2)

the activity required under the conservation stewardship program pursuant to such enrollment is consistent with this subchapter.

(h)

Land enrolled in agricultural conservation easement program

The Secretary may terminate or modify a contract entered into under this subchapter if eligible land that is subject to such contract is transferred into the agricultural conservation easement program under subtitle H.

.

2007.

Conversion of land subject to contract to other conserving uses

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

2008.

Effective date

(a)

In general

The amendments made by this subtitle shall take effect on October 1, 2012, except the amendment made by section 2001(d), which shall take effect on the date of the enactment of this Act.

(b)

Effect on existing contracts

(1)

In general

Except as provided in paragraph (2), the amendments made by this subtitle shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Updating of existing contracts

The Secretary shall permit an owner or operator of land subject to a contract entered into under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before October 1, 2012, to update the contract to reflect the activities and uses of land under contract permitted under the terms and conditions of section 1233(b) of that Act (as amended by section 2004), as determined appropriate by the Secretary.

B

Conservation Stewardship Program

2101.

Conservation stewardship program

(a)

Revision of current program

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

B

Conservation stewardship program

1238D.

Definitions

In this subchapter:

(1)

Agricultural operation

The term agricultural operation means all eligible land, whether or not contiguous, that is—

(A)

under the effective control of a producer at the time the producer enters into a contract under the program; and

(B)

operated with equipment, labor, management, and production or cultivation practices that are substantially separate from other agricultural operations, as determined by the Secretary.

(2)

Conservation activities

(A)

In general

The term conservation activities means conservation systems, practices, or management measures.

(B)

Inclusions

The term conservation activities includes—

(i)

structural measures, vegetative measures, and land management measures, including agriculture drainage management systems, as determined by the Secretary; and

(ii)

planning needed to address a priority resource concern.

(3)

Conservation stewardship plan

The term conservation stewardship plan means a plan that—

(A)

identifies and inventories priority resource concerns;

(B)

establishes benchmark data and conservation objectives;

(C)

describes conservation activities to be implemented, managed, or improved; and

(D)

includes a schedule and evaluation plan for the planning, installation, and management of the new and existing conservation activities.

(4)

Eligible land

(A)

In general

The term eligible land means—

(i)

private or tribal land on which agricultural commodities, livestock, or forest-related products are produced; and

(ii)

lands associated with the land described in clause (i) on which priority resource concerns could be addressed through a contract under the program.

(B)

Inclusions

The term eligible land includes—

(i)

cropland;

(ii)

grassland;

(iii)

rangeland;

(iv)

pasture land;

(v)

nonindustrial private forest land; and

(vi)

other agricultural areas (including cropped woodland, marshes, and agricultural land used or capable of being used for the production of livestock), as determined by the Secretary.

(5)

Priority resource concern

The term priority resource concern means a natural resource concern or problem, as determined by the Secretary, that—

(A)

is identified at the national, State, or local level as a priority for a particular area of a State;

(B)

represents a significant concern in a State or region; and

(C)

is likely to be addressed successfully through the implementation of conservation activities under this program.

(6)

Program

The term program means the conservation stewardship program established by this subchapter.

(7)

Stewardship threshold

The term stewardship threshold means the level of management required, as determined by the Secretary, to conserve and improve the quality and condition of a natural resource.

1238E.

Conservation stewardship program

(a)

Establishment and purpose

During each of fiscal years 2013 through 2017, the Secretary shall carry out a conservation stewardship program to encourage producers to address priority resource concerns in a comprehensive manner—

(1)

by undertaking additional conservation activities; and

(2)

by improving, maintaining, and managing existing conservation activities.

(b)

Exclusions

(1)

Land enrolled in other conservation programs

Subject to paragraph (2), the following land (even if covered by the definition of eligible land) is not eligible for enrollment in the program:

(A)

Land enrolled in the conservation reserve program, unless—

(i)

the conservation reserve contract will expire at the end of the fiscal year in which the land is to be enrolled in the program; and

(ii)

conservation reserve program payments for land enrolled in the program cease before the first program payment is made to the applicant under this subchapter.

(B)

Land enrolled in a wetland easement through the agricultural conservation easement program.

(C)

Land enrolled in the conservation security program.

(2)

Conversion to cropland

Eligible land used for crop production after October 1, 2012, that had not been planted, considered to be planted, or devoted to crop production for at least 4 of the 6 years preceding that date shall not be the basis for any payment under the program, unless the land does not meet the requirement because—

(A)

the land had previously been enrolled in the conservation reserve program;

(B)

the land has been maintained using long-term crop rotation practices, as determined by the Secretary; or

(C)

the land is incidental land needed for efficient operation of the farm or ranch, as determined by the Secretary.

1238F.

Stewardship contracts

(a)

Submission of contract offers

To be eligible to participate in the conservation stewardship program, a producer shall submit to the Secretary a contract offer for the agricultural operation that—

(1)

demonstrates to the satisfaction of the Secretary that the producer, at the time of the contract offer, meets or exceeds the stewardship threshold for at least 2 priority resource concerns; and

(2)

would, at a minimum, meet or exceed the stewardship threshold for at least 1 additional priority resource concern by the end of the stewardship contract by—

(A)

installing and adopting additional conservation activities; and

(B)

improving, maintaining, and managing existing conservation activities across the entire agricultural operation in a manner that increases or extends the conservation benefits in place at the time the contract offer is accepted by the Secretary.

(b)

Evaluation of contract offers

(1)

Ranking of applications

In evaluating contract offers submitted under subsection (a), the Secretary shall rank applications based on—

(A)

the level of conservation treatment on all applicable priority resource concerns at the time of application;

(B)

the degree to which the proposed conservation activities effectively increase conservation performance;

(C)

the number of applicable priority resource concerns proposed to be treated to meet or exceed the stewardship threshold by the end of the contract;

(D)

the extent to which other priority resource concerns will be addressed to meet or exceed the stewardship threshold by the end of the contract period;

(E)

the extent to which the actual and anticipated conservation benefits from the contract are provided at the least cost relative to other similarly beneficial contract offers; and

(F)

the extent to which priority resource concerns will be addressed when transitioning from the conservation reserve program to agricultural production.

(2)

Prohibition

The Secretary may not assign a higher priority to any application because the applicant is willing to accept a lower payment than the applicant would otherwise be eligible to receive.

(3)

Additional criteria

The Secretary may develop and use such additional criteria that the Secretary determines are necessary to ensure that national, State, and local priority resource concerns are effectively addressed.

(c)

Entering into contracts

After a determination that a producer is eligible for the program under subsection (a), and a determination that the contract offer ranks sufficiently high under the evaluation criteria under subsection (b), the Secretary shall enter into a conservation stewardship contract with the producer to enroll the eligible land to be covered by the contract.

(d)

Contract provisions

(1)

Term

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

(2)

Required provisions

The conservation stewardship contract of a producer shall—

(A)

state the amount of the payment the Secretary agrees to make to the producer for each year of the conservation stewardship contract under section 1238G(d);

(B)

require the producer—

(i)

to implement a conservation stewardship plan that describes the program purposes to be achieved through 1 or more conservation activities;

(ii)

to maintain and supply information as required by the Secretary to determine compliance with the conservation stewardship plan and any other requirements of the program; and

(iii)

not to conduct any activities on the agricultural operation that would tend to defeat the purposes of the program;

(C)

permit all economic uses of the eligible land that—

(i)

maintain the agricultural nature of the land; and

(ii)

are consistent with the conservation purposes of the conservation stewardship contract;

(D)

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

(E)

include provisions requiring that upon the violation of a term or condition of the contract at any time the producer has control of the land—

(i)

if the Secretary determines that the violation warrants termination of the contract—

(I)

the producer shall forfeit all rights to receive payments under the contract; and

(II)

the producer shall refund all or a portion of the payments received by the producer under the contract, including any interest on the payments, as determined by the Secretary; or

(ii)

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

(F)

include provisions in accordance with paragraphs (3) and (4) of this section; and

(G)

include any additional provisions the Secretary determines are necessary to carry out the program.

(3)

Change of interest in land subject to a contract

(A)

In general

At the time of application, a producer shall have control of the eligible land to be enrolled in the program. Except as provided in subparagraph (B), a change in the interest of a producer in eligible land covered by a contract under the program shall result in the termination of the contract with regard to that land.

(B)

Transfer of duties and rights

Subparagraph (A) shall not apply if—

(i)

within a reasonable period of time (as determined by the Secretary) after the date of the change in the interest in eligible land covered by a contract under the program, the transferee of the land provides written notice to the Secretary that all duties and rights under the contract have been transferred to, and assumed by, the transferee for the portion of the land transferred;

(ii)

the transferee meets the eligibility requirements of the program; and

(iii)

the Secretary approves the transfer of all duties and rights under the contract.

(4)

Modification and termination of contracts

(A)

Voluntary modification or termination

The Secretary may modify or terminate a contract with a producer if—

(i)

the producer agrees to the modification or termination; and

(ii)

the Secretary determines that the modification or termination is in the public interest.

(B)

Involuntary termination

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

(5)

Repayment

If a contract is terminated, the Secretary may, consistent with the purposes of the program—

(A)

allow the producer to retain payments already received under the contract; or

(B)

require repayment, in whole or in part, of payments received and assess liquidated damages.

(e)

Contract renewal

At the end of the initial 5-year contract period, the Secretary may allow the producer to renew the contract for 1 additional 5-year period if the producer—

(1)

demonstrates compliance with the terms of the initial contract;

(2)

agrees to adopt and continue to integrate conservation activities across the entire agricultural operation, as determined by the Secretary; and

(3)

agrees, by the end of the contract period—

(A)

to meet the stewardship threshold of at least two additional priority resource concerns on the agricultural operation; or

(B)

to exceed the stewardship threshold of two existing priority resource concerns that are specified by the Secretary in the initial contract.

1238G.

Duties of the secretary

(a)

In general

To achieve the conservation goals of a contract under the conservation stewardship program, the Secretary shall—

(1)

make the program available to eligible producers on a continuous enrollment basis with 1 or more ranking periods, one of which shall occur in the first quarter of each fiscal year;

(2)

identify not less than 5 priority resource concerns in a particular watershed or other appropriate region or area within a State; and

(3)

establish a science-based stewardship threshold for each priority resource concern identified under paragraph (2).

(b)

Allocation to states

The Secretary shall allocate acres to States for enrollment, based—

(1)

primarily on each State’s proportion of eligible land to the total acreage of eligible land in all States; and

(2)

also on consideration of—

(A)

the extent and magnitude of the conservation needs associated with agricultural production in each State;

(B)

the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and

(C)

other considerations to achieve equitable geographic distribution of funds, as determined by the Secretary.

(c)

Acreage enrollment limitation

During the period beginning on October 1, 2012, and ending on September 30, 2021, the Secretary shall, to the maximum extent practicable—

(1)

enroll in the program an additional 9,000,000 acres for each fiscal year; and

(2)

manage the program to achieve a national average rate of $18 per acre, which shall include the costs of all financial assistance, technical assistance, and any other expenses associated with enrollment or participation in the program.

(d)

Conservation stewardship payments

(1)

Availability of payments

The Secretary shall provide annual payments under the program to compensate the producer for—

(A)

installing and adopting additional conservation activities; and

(B)

improving, maintaining, and managing conservation activities in place at the agricultural operation of the producer at the time the contract offer is accepted by the Secretary.

(2)

Payment amount

The amount of the conservation stewardship annual payment shall be determined by the Secretary and based, to the maximum extent practicable, on the following factors:

(A)

Costs incurred by the producer associated with planning, design, materials, installation, labor, management, maintenance, or training.

(B)

Income forgone by the producer.

(C)

Expected conservation benefits.

(D)

The extent to which priority resource concerns will be addressed through the installation and adoption of conservation activities on the agricultural operation.

(E)

The level of stewardship in place at the time of application and maintained over the term of the contract.

(F)

The degree to which the conservation activities will be integrated across the entire agricultural operation for all applicable priority resource concerns over the term of the contract.

(G)

Such other factors as determined appropriate by the Secretary.

(3)

Exclusions

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

(A)

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

(B)

conservation activities for which there is no cost incurred or income forgone to the producer.

(4)

Delivery of payments

In making payments under this subsection, the Secretary shall, to the extent practicable—

(A)

prorate conservation performance over the term of the contract so as to accommodate, to the extent practicable, producers earning equal annual payments in each fiscal year; and

(B)

make payments as soon as practicable after October 1 of each fiscal year for activities carried out in the previous fiscal year.

(e)

Supplemental payments for resource-conserving crop rotations

(1)

Availability of payments

The Secretary shall provide additional payments to producers that, in participating in the program, agree to adopt or improve resource-conserving crop rotations to achieve beneficial crop rotations as appropriate for the eligible land of the producers.

(2)

Beneficial crop rotations

The Secretary shall determine whether a resource-conserving crop rotation is a beneficial crop rotation eligible for additional payments under paragraph (1) based on whether the resource-conserving crop rotation is designed to provide natural resource conservation and production benefits.

(3)

Eligibility

To be eligible to receive a payment described in paragraph (1), a producer shall agree to adopt and maintain beneficial resource-conserving crop rotations for the term of the contract.

(4)

Resource-conserving crop rotation

In this subsection, the term resource-conserving crop rotation means a crop rotation that—

(A)

includes at least 1 resource conserving crop (as defined by the Secretary);

(B)

reduces erosion;

(C)

improves soil fertility and tilth;

(D)

interrupts pest cycles; and

(E)

in applicable areas, reduces depletion of soil moisture or otherwise reduces the need for irrigation.

(f)

Payment limitations

A person or legal entity may not receive, directly or indirectly, payments under the program that, in the aggregate, exceed $200,000 under all contracts entered into during fiscal years 2013 through 2017, excluding funding arrangements with Indian tribes, regardless of the number of contracts entered into under the program by the person or legal entity.

(g)

Specialty crop and organic producers

The Secretary shall ensure that outreach and technical assistance are available, and program specifications are appropriate to enable specialty crop and organic producers to participate in the program.

(h)

Coordination with organic certification

The Secretary shall establish a transparent means by which producers may initiate organic certification under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) while participating in a contract under the program.

(i)

Regulations

The Secretary shall promulgate regulations that—

(1)

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

(2)

otherwise enable the Secretary to carry out the program.

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

(c)

Effect on existing contracts

(1)

In general

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Conservation stewardship program

Funds made available under section 1241(a)(4) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) (as amended by section 2601(a) of this title) may be used to administer and make payments to program participants that enrolled into contracts during any of fiscal years 2009 through 2012.

C

Environmental Quality Incentives Program

2201.

Purposes

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

(1)

in paragraph (3)—

(A)

in subparagraph (A), by striking and at the end;

(B)

by redesignating subparagraph (B) as subparagraph (C) and, in such subparagraph, by inserting and after the semicolon; and

(C)

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

(B)

developing and improving wildlife habitat; and

;

(2)

in paragraph (4), by striking ; and and inserting a period; and

(3)

by striking paragraph (5).

2202.

Establishment and administration

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

(1)

in subsection (a), by striking 2014 and inserting 2017;

(2)

in subsection (b), by striking paragraph (2) and inserting the following new paragraph:

(2)

Term

A contract under the program shall have a term that does not exceed 10 years.

;

(3)

in subsection (d)(4)—

(A)

in subparagraph (A), in the matter preceding clause (i), by inserting , veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))), before or a beginning farmer or rancher; and

(B)

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

(B)

Advance payments

(i)

In general

Not more than 50 percent of the amount determined under subparagraph (A) may be provided in advance for the purpose of purchasing materials or contracting.

(ii)

Return of funds

If funds provided in advance are not expended during the 90-day period beginning on the date of receipt of the funds, the funds shall be returned within a reasonable time frame, as determined by the Secretary.

;

(4)

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

(f)

Allocation of funding

(1)

Livestock

For each of fiscal years 2013 through 2017, at least 60 percent of the funds made available for payments under the program shall be targeted at practices relating to livestock production.

(2)

Wildlife habitat

For each of fiscal years 2013 through 2017, 5 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat.

;

(5)

in subsection (g)—

(A)

in the subsection heading, by striking Federally Recognized Native American Indian Tribes and Alaska Native Corporations and inserting Indian Tribes;

(B)

by striking federally recognized Native American Indian Tribes and Alaska Native Corporations (including their affiliated membership organizations) and inserting Indian tribes; and

(C)

by striking or Native Corporation; and

(6)

by adding at the end the following:

(j)

Wildlife habitat incentive practice

The Secretary shall provide payments under the program for conservation practices that support the restoration, development, and improvement of wildlife habitat on eligible land, including—

(1)

upland wildlife habitat;

(2)

wetland wildlife habitat;

(3)

habitat for threatened and endangered species;

(4)

fish habitat;

(5)

habitat on pivot corners and other irregular areas of a field; and

(6)

other types of wildlife habitat, as determined appropriate by the Secretary.

.

2203.

Evaluation of applications

Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C. 3839aa–3(b)) is amended—

(1)

in paragraph (1), by striking environmental and inserting conservation; and

(2)

in paragraph (3), by striking purpose of the environmental quality incentives program specified in section 1240(1) and inserting purposes of the program.

2204.

Duties of producers

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

2205.

Limitation on payments

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

1240G.

Limitation on payments

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

.

2206.

Conservation innovation grants and payments

Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa–8) is amended—

(1)

in subsection (a)(2)—

(A)

in subparagraph (C), by striking ; and and inserting a semicolon;

(B)

in subparagraph (D), by striking the period and inserting a semicolon; and

(C)

by adding at the end the following new subparagraphs:

(E)

facilitate on-farm conservation research and demonstration activities; and

(F)

facilitate pilot testing of new technologies or innovative conservation practices.

; and

(2)

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

(b)

Reporting

Not later than December 31, 2013, and every two years thereafter, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report on the status of projects funded under this section, including—

(1)

funding awarded;

(2)

project results; and

(3)

incorporation of project findings, such as new technology and innovative approaches, into the conservation efforts implemented by the Secretary.

.

2207.

Effective date

(a)

In general

The amendments made by this subtitle shall take effect on October 1, 2012.

(b)

Effect on existing contracts

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

D

Agricultural Conservation Easement Program

2301.

Agricultural conservation easement program

(a)

Establishment

Title XII of the Food Security Act of 1985 is amended by adding at the end the following new subtitle:

H

Agricultural Conservation Easement Program

1265.

Establishment and purposes

(a)

Establishment

The Secretary shall establish an agricultural conservation easement program for the conservation of eligible land and natural resources through easements or other interests in land.

(b)

Purposes

The purposes of the program are to—

(1)

combine the purposes and coordinate the functions of the wetlands reserve program established under section 1237, the grassland reserve program established under section 1238N, and the farmland protection program established under section 1238I, as such sections were in effect on September 30, 2012;

(2)

restore, protect, and enhance wetlands on eligible land;

(3)

protect the agricultural use and related conservation values of eligible land by limiting nonagricultural uses of that land; and

(4)

protect grazing uses and related conservation values by restoring and conserving eligible land.

1265A.

Definitions

In this subtitle:

(1)

Agricultural land easement

The term agricultural land easement means an easement or other interest in eligible land that—

(A)

is conveyed for the purpose of protecting natural resources and the agricultural nature of the land; and

(B)

permits the landowner the right to continue agricultural production and related uses subject to an agricultural land easement plan, as approved by the Secretary.

(2)

Eligible entity

The term eligible entity means—

(A)

an agency of State or local government or an Indian tribe (including a farmland protection board or land resource council established under State law); or

(B)

an organization that is—

(i)

organized for, and at all times since the formation of the organization has been operated principally for, 1 or more of the conservation purposes specified in clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;

(ii)

an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code; or

(iii)

described in—

(I)

paragraph (1) or (2) of section 509(a) of that Code; or

(II)

section 509(a)(3) of that Code and is controlled by an organization described in section 509(a)(2) of that Code.

(3)

Eligible land

The term eligible land means private or tribal land that is—

(A)

in the case of an agricultural land easement, agricultural land, including land on a farm or ranch—

(i)

that is subject to a pending offer for purchase of an agricultural land easement from an eligible entity;

(ii)

that—

(I)

has prime, unique, or other productive soil;

(II)

contains historical or archaeological resources; or

(III)

the protection of which will further a State or local policy consistent with the purposes of the program; and

(iii)

that is—

(I)

cropland;

(II)

rangeland;

(III)

grassland or land that contains forbs, or shrubland for which grazing is the predominate use;

(IV)

pastureland; or

(V)

nonindustrial private forest land that contributes to the economic viability of an offered parcel or serves as a buffer to protect such land from development;

(B)

in the case of a wetland easement, a wetland or related area, including—

(i)

farmed or converted wetlands, together with adjacent land that is functionally dependent on that land, if the Secretary determines it—

(I)

is likely to be successfully restored in a cost effective manner; and

(II)

will maximize the wildlife benefits and wetland functions and values, as determined by the Secretary in consultation with the Secretary of the Interior at the local level;

(ii)

cropland or grassland that was used for agricultural production prior to flooding from the natural overflow of—

(I)

a closed basin lake and adjacent land that is functionally dependent upon it, if the State or other entity is willing to provide 50 percent share of the cost of an easement;

(II)

a pothole and adjacent land that is functionally dependent on it;

(iii)

farmed wetlands and adjoining lands that—

(I)

are enrolled in the conservation reserve program;

(II)

have the highest wetland functions and values, as determined by the Secretary; and

(III)

are likely to return to production after they leave the conservation reserve program;

(iv)

riparian areas that link wetlands that are protected by easements or some other device that achieves the same purpose as an easement; or

(v)

other wetlands of an owner that would not otherwise be eligible, if the Secretary determines that the inclusion of such wetlands in a wetland easement would significantly add to the functional value of the easement; or

(C)

in the case of either an agricultural land easement or wetland easement, other land that is incidental to land described in subparagraph (A) or (B), if the Secretary determines that it is necessary for the efficient administration of the easements under this program.

(4)

Program

The term program means the agricultural conservation easement program established by this subtitle.

(5)

Wetland easement

The term wetland easement means a reserved interest in eligible land that—

(A)

is defined and delineated in a deed; and

(B)

stipulates—

(i)

the rights, title, and interests in land conveyed to the Secretary; and

(ii)

the rights, title, and interests in land that are reserved to the landowner.

1265B.

Agricultural land easements

(a)

Availability of assistance

The Secretary shall facilitate and provide funding for—

(1)

the purchase by eligible entities of agricultural land easements and other interests in eligible land; and

(2)

technical assistance to provide for the conservation of natural resources pursuant to an agricultural land easement plan.

(b)

Cost-share assistance

(1)

In general

The Secretary shall protect the agricultural use, including grazing, and related conservation values of eligible land through cost-share assistance to eligible entities for purchasing agricultural land easements.

(2)

Scope of assistance available

(A)

Federal share

An agreement described in paragraph (4) shall provide for a Federal share determined by the Secretary of an amount not to exceed 50 percent of the fair market value of the agricultural land easement or other interest in land, as determined by the Secretary using—

(i)

the Uniform Standards of Professional Appraisal Practice;

(ii)

an area-wide market analysis or survey; or

(iii)

another industry-approved method.

(B)

Non-federal share

(i)

In general

Under the agreement, the eligible entity shall provide a share that is at least equivalent to that provided by the Secretary.

(ii)

Source of contribution

An eligible entity may include as part of its share a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the private landowner if the eligible entity contributes its own cash resources in an amount that is at least 50 percent of the amount contributed by the Secretary.

(C)

Exception

In the case of grassland of special environmental significance, as determined by the Secretary, the Secretary may provide an amount not to exceed 75 percent of the fair market value of the agricultural land easement.

(3)

Evaluation and ranking of applications

(A)

Criteria

The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.

(B)

Considerations

In establishing the criteria, the Secretary shall emphasize support for—

(i)

protecting agricultural uses and related conservation values of the land; and

(ii)

maximizing the protection of areas devoted to agricultural use.

(C)

Bidding down

If the Secretary determines that 2 or more applications for cost-share assistance are comparable in achieving the purpose of the program, the Secretary shall not assign a higher priority to any of those applications solely on the basis of lesser cost to the program.

(4)

Agreements with eligible entities

(A)

In general

The Secretary shall enter into agreements with eligible entities to stipulate the terms and conditions under which the eligible entity is permitted to use cost-share assistance provided under this section.

(B)

Length of agreements

An agreement shall be for a term that is—

(i)

in the case of an eligible entity certified under the process described in paragraph (5), a minimum of five years; and

(ii)

for all other eligible entities, at least three, but not more than five years.

(C)

Minimum terms and conditions

An eligible entity shall be authorized to use its own terms and conditions for agricultural land easements so long as the Secretary determines such terms and conditions—

(i)

are consistent with the purposes of the program;

(ii)

permit effective enforcement of the conservation purposes of such easements;

(iii)

include a right of enforcement for the Secretary, that may be used only if the terms of the easement are not enforced by the holder of the easement;

(iv)

subject the land in which an interest is purchased to an agricultural land easement plan that—

(I)

describes the activities which promote the long-term viability of the land to meet the purposes for which the easement was acquired;

(II)

requires the management of grasslands according to a grasslands management plan; and

(III)

includes a conservation plan, where appropriate, and requires, at the option of the Secretary, the conversion of highly erodible cropland to less intensive uses; and

(v)

include a limit on the impervious surfaces to be allowed that is consistent with the agricultural activities to be conducted.

(D)

Substitution of qualified projects

An agreement shall allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at the time of the proposed substitution.

(E)

Effect of violation

If a violation occurs of a term or condition of an agreement under this subsection—

(i)

the Secretary may terminate the agreement; and

(ii)

the Secretary may require the eligible entity to refund all or part of any payments received by the entity under the program, with interest on the payments as determined appropriate by the Secretary.

(5)

Certification of eligible entities

(A)

Certification process

The Secretary shall establish a process under which the Secretary may—

(i)

directly certify eligible entities that meet established criteria;

(ii)

enter into long-term agreements with certified eligible entities; and

(iii)

accept proposals for cost-share assistance for the purchase of agricultural land easements throughout the duration of such agreements.

(B)

Certification criteria

In order to be certified, an eligible entity shall demonstrate to the Secretary that the entity will maintain, at a minimum, for the duration of the agreement—

(i)

a plan for administering easements that is consistent with the purpose of this subtitle;

(ii)

the capacity and resources to monitor and enforce agricultural land easements; and

(iii)

policies and procedures to ensure—

(I)

the long-term integrity of agricultural land easements on eligible land;

(II)

timely completion of acquisitions of such easements; and

(III)

timely and complete evaluation and reporting to the Secretary on the use of funds provided under the program.

(C)

Review and revision

(i)

Review

The Secretary shall conduct a review of eligible entities certified under subparagraph (A) every three years to ensure that such entities are meeting the criteria established under subparagraph (B).

(ii)

Revocation

If the Secretary finds that the certified eligible entity no longer meets the criteria established under subparagraph (B), the Secretary may—

(I)

allow the certified eligible entity a specified period of time, at a minimum 180 days, in which to take such actions as may be necessary to meet the criteria; and

(II)

revoke the certification of the eligible entity, if after the specified period of time, the certified eligible entity does not meet such criteria.

(c)

Method of enrollment

The Secretary shall enroll eligible land under this section through the use of—

(1)

permanent easements; or

(2)

easements for the maximum duration allowed under applicable State laws.

(d)

Technical assistance

The Secretary may provide technical assistance, if requested, to assist in—

(1)

compliance with the terms and conditions of easements; and

(2)

implementation of an agricultural land easement plan.

1265C.

Wetland easements

(a)

Availability of assistance

The Secretary shall provide assistance to owners of eligible land to restore, protect, and enhance wetlands through—

(1)

wetland easements and related wetland easement plans; and

(2)

technical assistance.

(b)

Easements

(1)

Method of enrollment

The Secretary shall enroll eligible land under this section through the use of—

(A)

30-year easements;

(B)

permanent easements;

(C)

easements for the maximum duration allowed under applicable State laws; or

(D)

as an option for Indian tribes only, 30-year contracts (which shall be considered to be 30-year easements for the purposes of this subtitle).

(2)

Limitations

(A)

Ineligible land

The Secretary may not acquire easements on—

(i)

land established to trees under the conservation reserve program, except in cases where the Secretary determines it would further the purposes of the program; and

(ii)

farmed wetlands or converted wetlands where the conversion was not commenced prior to December 23, 1985.

(B)

Changes in ownership

No wetland easement shall be created on land that has changed ownership during the preceding 24-month period unless—

(i)

the new ownership was acquired by will or succession as a result of the death of the previous owner;

(ii)
(I)

the ownership change occurred because of foreclosure on the land; and

(II)

immediately before the foreclosure, the owner of the land exercises a right of redemption from the mortgage holder in accordance with State law; or

(iii)

the Secretary determines that the land was acquired under circumstances that give adequate assurances that such land was not acquired for the purposes of placing it in the program.

(3)

Evaluation and ranking of offers

(A)

Criteria

The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.

(B)

Considerations

When evaluating offers from landowners, the Secretary may consider—

(i)

the conservation benefits of obtaining a wetland easement, including the potential environmental benefits if the land was removed from agricultural production;

(ii)

the cost-effectiveness of each wetland easement, so as to maximize the environmental benefits per dollar expended;

(iii)

whether the landowner or another person is offering to contribute financially to the cost of the wetland easement to leverage Federal funds; and

(iv)

such other factors as the Secretary determines are necessary to carry out the purposes of the program.

(C)

Priority

The Secretary shall place priority on acquiring wetland easements based on the value of the wetland easement for protecting and enhancing habitat for migratory birds and other wildlife.

(4)

Agreement

To be eligible to place eligible land into the program through a wetland easement, the owner of such land shall enter into an agreement with the Secretary to—

(A)

grant an easement on such land to the Secretary;

(B)

authorize the implementation of a wetland easement plan developed for the eligible land under subsection (f);

(C)

create and record an appropriate deed restriction in accordance with applicable State law to reflect the easement agreed to;

(D)

provide a written statement of consent to such easement signed by those holding a security interest in the land;

(E)

comply with the terms and conditions of the easement and any related agreements; and

(F)

permanently retire any existing base history for the land on which the easement has been obtained.

(5)

Terms and conditions of easement

(A)

In general

A wetland easement shall include terms and conditions that—

(i)

permit—

(I)

repairs, improvements, and inspections on the land that are necessary to maintain existing public drainage systems; and

(II)

owners to control public access on the easement areas while identifying access routes to be used for restoration activities and management and easement monitoring;

(ii)

prohibit—

(I)

the alteration of wildlife habitat and other natural features of such land, unless specifically authorized by the Secretary;

(II)

the spraying of such land with chemicals or the mowing of such land, except where such spraying or mowing is authorized by the Secretary or is necessary—

(aa)

to comply with Federal or State noxious weed control laws;

(bb)

to comply with a Federal or State emergency pest treatment program; or

(cc)

to meet habitat needs of specific wildlife species;

(III)

any activities to be carried out on the owner’s or successor’s land that is immediately adjacent to, and functionally related to, the land that is subject to the easement if such activities will alter, degrade, or otherwise diminish the functional value of the eligible land; and

(IV)

the adoption of any other practice that would tend to defeat the purposes of the program, as determined by the Secretary;

(iii)

provide for the efficient and effective establishment of wildlife functions and values; and

(iv)

include such additional provisions as the Secretary determines are desirable to carry out the program or facilitate the practical administration thereof.

(B)

Violation

On the violation of the terms or conditions of a wetland easement, the wetland easement shall remain in force and the Secretary may require the owner to refund all or part of any payments received by the owner under the program, together with interest thereon as determined appropriate by the Secretary.

(C)

Compatible uses

Land subject to a wetland easement may be used for compatible economic uses, including such activities as hunting and fishing, managed timber harvest, or periodic haying or grazing, if such use is specifically permitted by the wetland easement plan developed for the land under subsection (f) and is consistent with the long-term protection and enhancement of the wetland resources for which the easement was established.

(D)

Reservation of grazing rights

The Secretary may include in the terms and conditions of a wetland easement a provision under which the owner reserves grazing rights if—

(i)

the Secretary determines that the reservation and use of the grazing rights—

(I)

is compatible with the land subject to the easement;

(II)

is consistent with the historical natural uses of the land and the long-term protection and enhancement goals for which the easement was established; and

(III)

complies with the wetland easement plan developed for the land under subsection (f); and

(ii)

the agreement provides for a commensurate reduction in the easement payment to account for the grazing value, as determined by the Secretary.

(6)

Compensation

(A)

Determination

(i)

Permanent easements

The Secretary shall pay as compensation for a permanent wetland easement acquired under the program an amount necessary to encourage enrollment in the program, based on the lowest of—

(I)

the fair market value of the land, as determined by the Secretary, using the Uniform Standards of Professional Appraisal Practice or an area-wide market analysis or survey;

(II)

the amount corresponding to a geographical cap, as determined by the Secretary in regulations; or

(III)

the offer made by the landowner.

(ii)

30-year easements

Compensation for a 30-year wetland easement shall be not less than 50 percent, but not more than 75 percent, of the compensation that would be paid for a permanent wetland easement.

(B)

Form of payment

Compensation for a wetland easement shall be provided by the Secretary in the form of a cash payment, in an amount determined under subparagraph (A).

(C)

Payment schedule

(i)

Easements valued at $500,000 or less

For wetland easements valued at $500,000 or less, the Secretary may provide easement payments in not more than 10 annual payments.

(ii)

Easements valued at more than $500,000

For wetland easements valued at more than $500,000, the Secretary may provide easement payments in at least 5, but not more than 10 annual payments, except that, if the Secretary determines it would further the purposes of the program, the Secretary may make a lump sum payment for such an easement.

(c)

Easement restoration

(1)

In general

The Secretary shall provide financial assistance to owners of eligible land to carry out the establishment of conservation measures and practices and protect wetland functions and values, including necessary maintenance activities, as set forth in a wetland easement plan developed for the eligible land under subsection (f).

(2)

Payments

The Secretary shall—

(A)

in the case of a permanent wetland easement, pay an amount that is not less than 75 percent, but not more than 100 percent, of the eligible costs, as determined by the Secretary; and

(B)

in the case of a 30-year wetland easement, pay an amount that is not less than 50 percent, but not more than 75 percent, of the eligible costs, as determined by the Secretary.

(d)

Technical assistance

(1)

In general

The Secretary shall assist owners in complying with the terms and conditions of wetland easements.

(2)

Contracts or agreements

The Secretary may enter into 1 or more contracts with private entities or agreements with a State, non-governmental organization, or Indian tribe to carry out necessary restoration, enhancement, or maintenance of a wetland easement if the Secretary determines that the contract or agreement will advance the purposes of the program.

(e)

Wetland enhancement option

The Secretary may enter into 1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetland enhancement option that the Secretary determines would advance the purposes of program.

(f)

Administration

(1)

Wetland easement plan

The Secretary shall develop a wetland easement plan for eligible lands subject to a wetland easement, which shall include practices and activities necessary to restore, protect, enhance, and maintain the enrolled lands.

(2)

Delegation of easement administration

The Secretary may delegate—

(A)

any of the easement management, monitoring, and enforcement responsibilities of the Secretary to other Federal or State agencies that have the appropriate authority, expertise, and resources necessary to carry out such delegated responsibilities; and

(B)

any of the easement management responsibilities of the Secretary to other conservation organizations if the Secretary determines the organization has the appropriate expertise and resources.

(3)

Payments

(A)

Timing of payments

The Secretary shall provide payment for obligations incurred by the Secretary under this section—

(i)

with respect to any easement restoration obligation under subsection (c), as soon as possible after the obligation is incurred; and

(ii)

with respect to any annual easement payment obligation incurred by the Secretary, as soon as possible after October 1 of each calendar year.

(B)

Payments to others

If an owner who is entitled to a payment under this section dies, becomes incompetent, is otherwise unable to receive such payment, or is succeeded by another person or entity who renders or completes the required performance, the Secretary shall make such payment, in accordance with regulations prescribed by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all of the circumstances.

1265D.

Administration

(a)

Ineligible land

The Secretary may not use program funds for the purposes of acquiring an easement on—

(1)

lands owned by an agency of the United States, other than land held in trust for Indian tribes;

(2)

lands owned in fee title by a State, including an agency or a subdivision of a State, or a unit of local government;

(3)

land subject to an easement or deed restriction which, as determined by the Secretary, provides similar protection as would be provided by enrollment in the program; or

(4)

lands where the purposes of the program would be undermined due to on-site or off-site conditions, such as risk of hazardous substances, proposed or existing rights of way, infrastructure development, or adjacent land uses.

(b)

Priority

In evaluating applications under the program, the Secretary may give priority to land that is currently enrolled in the conservation reserve program in a contract that is set to expire within 1 year and—

(1)

in the case of an agricultural land easement, is grassland that would benefit from protection under a long-term easement; and

(2)

in the case of a wetland easement, is a wetland or related area with the highest functions and value and is likely to return to production after the land leaves the conservation reserve program.

(c)

Subordination, exchange, modification, and termination

(1)

In general

The Secretary may subordinate, exchange, modify, or terminate any interest in land, or portion of such interest, administered by the Secretary, either directly or on behalf of the Commodity Credit Corporation under the program if the Secretary determines that—

(A)

it is in the Federal Government’s interest to subordinate, exchange, modify, or terminate the interest in land;

(B)

the subordination, exchange, modification, or termination action—

(i)

will address a compelling public need for which there is no practicable alternative; or

(ii)

such action will further the practical administration of the program; and

(C)

the subordination, exchange, modification, or termination action will result in comparable conservation value and equivalent or greater economic value to the United States.

(2)

Consultation

The Secretary shall work with the owner, and eligible entity if applicable, to address any subordination, exchange, modification, or termination of the interest, or portion of such interest, in land.

(3)

Notice

At least 90 days before taking any termination action described in paragraph (1), the Secretary shall provide written notice of such action to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

(d)

Land enrolled in conservation reserve program

The Secretary may terminate or modify a contract entered into under section 1231(a) if eligible land that is subject to such contract is transferred into the program.

(e)

Allocation of funds for agricultural land easements

Of the funds made available under section 1241 to carry out the program for a fiscal year, the Secretary shall, to the extent practicable, use for agricultural land easements—

(1)

no less than 40 percent in each of fiscal years 2013 through 2016; and

(2)

no less than 50 percent in fiscal year 2017.

.

(b)

Compliance with certain requirements

Before an eligible entity or owner of eligible land may receive assistance under subtitle H of title XII of the Food Security Act of 1985, the eligible entity or person shall agree, during the crop year for which the assistance is provided and in exchange for the assistance—

(1)

to comply with applicable conservation requirements under subtitle B of title XII of that Act (16 U.S.C. 3811 et seq.); and

(2)

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

(c)

Cross reference; calculation

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended—

(1)

in subsection (c)—

(A)

in paragraph (1)—

(i)

by inserting and at the end of subparagraph (A);

(ii)

by striking and at the end of subparagraph (B); and

(iii)

by striking subparagraph (C);

(B)

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

(C)

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

(2)

the agricultural conservation easement program established under subtitle H; and

; and

(2)

in subsection (f)—

(A)

in paragraph (1)—

(i)

in subparagraph (A), by striking programs administered under subchapters B and C of chapter 1 of subtitle D and inserting conservation reserve program established under subchapter B of chapter 1 of subtitle D and wetland easements under section 1265C; and

(ii)

in subparagraph (B), by striking an easement acquired under subchapter C of chapter 1 of subtitle D and inserting a wetland easement under section 1265C; and

(B)

by adding at the end the following new paragraph:

(5)

Calculation

In calculating the percentages described in paragraph (1), the Secretary shall include any acreage that was included in calculations of percentages made under such paragraph, as in effect on September 30, 2012, and that remains enrolled when the calculation is made after that date under paragraph (1).

.

(d)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

E

Regional Conservation Partnership Program

2401.

Regional conservation partnership program

(a)

In general

Title XII of the Food Security Act of 1985 is amended by inserting after subtitle H, as added by section 2301, the following new subtitle:

I

Regional Conservation Partnership Program

1271.

Establishment and purposes

(a)

Establishment

The Secretary shall establish a regional conservation partnership program to implement eligible activities on eligible land through—

(1)

partnership agreements with eligible partners; and

(2)

contracts with producers.

(b)

Purposes

The purposes of the program are as follows:

(1)

To use covered programs to accomplish purposes and functions similar to those of the following programs, as in effect on September 30, 2012:

(A)

The agricultural water enhancement program established under section 1240I.

(B)

The Chesapeake Bay watershed program established under section 1240Q.

(C)

The cooperative conservation partnership initiative established under section 1243.

(D)

The Great Lakes basin program for soil erosion and sediment control established under section 1240P.

(2)

To further the conservation, restoration, and sustainable use of soil, water, wildlife, and related natural resources on eligible land on a regional or watershed scale.

(3)

To encourage eligible partners to cooperate with producers in—

(A)

meeting or avoiding the need for national, State, and local natural resource regulatory requirements related to production on eligible land; and

(B)

implementing projects that will result in the carrying out of eligible activities that affect multiple agricultural or nonindustrial private forest operations on a local, regional, State, or multi-State basis.

1271A.

Definitions

In this subtitle:

(1)

Covered program

The term covered program means the following:

(A)

The agricultural conservation easement program.

(B)

The environmental quality incentives program.

(C)

The conservation stewardship program.

(2)

Eligible activity

The term eligible activity means any of the following conservation activities:

(A)

Water quality or quantity conservation, restoration, or enhancement projects relating to surface water and groundwater resources, including—

(i)

the conversion of irrigated cropland to the production of less water-intensive agricultural commodities or dryland farming; or

(ii)

irrigation system improvement and irrigation efficiency enhancement.

(B)

Drought mitigation.

(C)

Flood prevention.

(D)

Water retention.

(E)

Air quality improvement.

(F)

Habitat conservation, restoration, and enhancement.

(G)

Erosion control and sediment reduction.

(H)

Other related activities that the Secretary determines will help achieve conservation benefits.

(3)

Eligible land

The term eligible land means land on which agricultural commodities, livestock, or forest-related products are produced, including—

(A)

cropland;

(B)

grassland;

(C)

rangeland;

(D)

pastureland;

(E)

nonindustrial private forest land; and

(F)

other land incidental to agricultural production (including wetlands and riparian buffers) on which significant natural resource issues could be addressed under the program.

(4)

Eligible partner

The term eligible partner means any of the following:

(A)

An agricultural or silvicultural producer association or other group of producers.

(B)

A State or unit of local government.

(C)

An Indian tribe.

(D)

A farmer cooperative.

(E)

A water district, irrigation district, rural water district or association, or other organization with specific water delivery authority to producers on agricultural land.

(F)

An institution of higher education.

(G)

An organization with an established history of working cooperatively with producers on agricultural land, as determined by the Secretary, to address—

(i)

local conservation priorities related to agricultural production, wildlife habitat development, or nonindustrial private forest land management; or

(ii)

critical watershed-scale soil erosion, water quality, sediment reduction, or other natural resource issues.

(5)

Partnership agreement

The term partnership agreement means an agreement entered into under section 1271B between the Secretary and an eligible partner.

(6)

Program

The term program means the regional conservation partnership program established by this subtitle.

1271B.

Regional conservation partnerships

(a)

Partnership agreements authorized

The Secretary may enter into a partnership agreement with an eligible partner to implement a project that will assist producers with installing and maintaining an eligible activity on eligible land.

(b)

Length

A partnership agreement shall be for a period not to exceed 5 years, except that the Secretary may extend the agreement one time for up to 12 months when an extension is necessary to meet the objectives of the program.

(c)

Duties of partners

(1)

In general

Under a partnership agreement, the eligible partner shall—

(A)

define the scope of a project, including—

(i)

the eligible activities to be implemented;

(ii)

the potential agricultural or nonindustrial private forest land operations affected;

(iii)

the local, State, multi-State, or other geographic area covered; and

(iv)

the planning, outreach, implementation, and assessment to be conducted;

(B)

conduct outreach to producers for potential participation in the project;

(C)

at the request of a producer, act on behalf of a producer participating in the project in applying for assistance under section 1271C;

(D)

leverage financial or technical assistance provided by the Secretary with additional funds to help achieve the project objectives;

(E)

conduct an assessment of the project’s effects; and

(F)

at the conclusion of the project, report to the Secretary on its results and funds leveraged.

(2)

Contribution

An eligible partner shall provide a significant portion of the overall costs of the scope of the project that is the subject of the agreement entered into under subsection (a), as determined by the Secretary.

(d)

Applications

(1)

Competitive process

The Secretary shall conduct a competitive process to select applications for partnership agreements and may assess and rank applications with similar conservation purposes as a group.

(2)

Criteria used

In carrying out the process described in paragraph (1), the Secretary shall make public the criteria used in evaluating applications.

(3)

Content

An application to the Secretary shall include a description of—

(A)

the scope of the project, as described in subsection (c)(1)(A);

(B)

the plan for monitoring, evaluating, and reporting on progress made towards achieving the project’s objectives;

(C)

the program resources requested for the project, including the covered programs to be used and estimated funding needed from the Secretary;

(D)

eligible partners collaborating to achieve project objectives, including their roles, responsibilities, capabilities, and financial contribution; and

(E)

any other elements the Secretary considers necessary to adequately evaluate and competitively select applications for funding under the program.

(4)

Priority to certain applications

The Secretary may give a higher priority to applications that—

(A)

assist producers in meeting or avoiding the need for a natural resource regulatory requirement;

(B)

have a high percentage of eligible producers in the area to be covered by the agreement;

(C)

significantly leverage non-Federal financial and technical resources and coordinate with other local, State, or national efforts;

(D)

deliver high percentages of applied conservation to address conservation priorities or regional, State, or national conservation initiatives;

(E)

provide innovation in conservation methods and delivery, including outcome-based performance measures and methods; or

(F)

meet other factors that are important for achieving the purposes of the program, as determined by the Secretary.

1271C.

Assistance to producers

(a)

In general

The Secretary shall enter into contracts with producers to provide financial and technical assistance to—

(1)

producers participating in a project with an eligible partner, as described in section 1271B; or

(2)

producers that fit within the scope of a project described in section 1271B or a critical conservation area designated under section 1271F, but who are seeking to implement an eligible activity on eligible land independent of a partner.

(b)

Terms and conditions

(1)

Consistency with program rules

Except as provided in paragraph (2), the Secretary shall ensure that the terms and conditions of a contract under this section are consistent with the applicable rules of the covered programs to be used as part of the project, as described in the application under section 1271B(d)(3)(C).

(2)

Adjustments

Except with respect to statutory program requirements governing appeals, payment limitations, and conservation compliance, the Secretary may adjust the discretionary program rules of a covered program—

(A)

 to provide a simplified application and evaluation process; and

(B)

to better reflect unique local circumstances and purposes if the Secretary determines such adjustments are necessary to achieve the purposes of the program.

(c)

Payments

(1)

In general

In accordance with statutory requirements of the covered programs involved, the Secretary may make payments to a producer in an amount determined by the Secretary to be necessary to achieve the purposes of the program.

(2)

Payments to producers in States with water quantity concerns

The Secretary may provide payments to producers participating in a project that addresses water quantity concerns for a period of five years in an amount sufficient to encourage conversion from irrigated farming to dryland farming.

(3)

Waiver authority

To assist in the implementation of the program, the Secretary may waive the applicability of the limitation in section 1001D(b)(2) of this Act for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program.

1271D.

Funding

(a)

Availability of funds

The Secretary shall use $100,000,000 of the funds of the Commodity Credit Corporation for each of fiscal years 2013 through 2017 to carry out the program.

(b)

Duration of availability

Funds made available under subsection (a) shall remain available until expended.

(c)

Additional funding and acres

(1)

In general

In addition to the funds made available under subsection (a), the Secretary shall reserve 6 percent of the funds and acres made available for a covered program for each of fiscal years 2013 through 2017 in order to ensure additional resources are available to carry out this program.

(2)

Unused funds and acres

Any funds or acres reserved under paragraph (1) for a fiscal year from a covered program that are not obligated under this program by April 1 of that fiscal year shall be returned for use under the covered program.

(d)

Allocation of funding

Of the funds and acres made available for the program under subsections (a) and (c), the Secretary shall allocate—

(1)

25 percent of the funds and acres to projects based on a State competitive process administered by the State Conservationist, with the advice of the State technical committee established under subtitle G;

(2)

50 percent of the funds and acres to projects based on a national competitive process to be established by the Secretary; and

(3)

25 percent of the funds and acres to projects for the critical conservation areas designated under section 1271F.

(e)

Limitation on administrative expenses

None of the funds made available under the program may be used to pay for the administrative expenses of eligible partners.

1271E.

Administration

(a)

Disclosure

In addition to the criteria used in evaluating applications as described in section 1271B(d)(2), the Secretary shall make publicly available information on projects selected through the competitive process described in section 1271B(d)(1).

(b)

Reporting

Not later than December 31, 2013, and every two years thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the status of projects funded under the program, including—

(1)

the number and types of eligible partners and producers participating in the partnership agreements selected;

(2)

the number of producers receiving assistance; and

(3)

total funding committed to projects, including from Federal and non-Federal resources.

1271F.

Critical conservation areas

(a)

In general

In administering funds under section 1271D(d)(3), the Secretary shall select applications for partnership agreements and producer contracts within critical conservation areas designated under this section.

(b)

Critical conservation area designations

(1)

Priority

In designating critical conservation areas under this section, the Secretary shall give priority to geographical areas based on the degree to which the geographical area—

(A)

includes multiple States with significant agricultural production;

(B)

is covered by an existing regional, State, binational, or multistate agreement or plan that has established objectives, goals, and work plans and is adopted by a Federal, State, or regional authority;

(C)

would benefit from water quality improvement, including through reducing erosion, promoting sediment control, and addressing nutrient management activities affecting large bodies of water of regional, national, or international significance;

(D)

would benefit from water quantity improvement, including improvement relating to—

(i)

groundwater, surface water, aquifer, or other water sources; or

(ii)

a need to promote water retention and flood prevention; or

(E)

contains producers that need assistance in meeting or avoiding the need for a natural resource regulatory requirement that could have a negative economic impact on agricultural operations within the area.

(2)

Limitation

The Secretary may not designate more than 8 geographical areas as critical conservation areas under this section.

(c)

Administration

(1)

In general

Except as provided in paragraph (2), the Secretary shall administer any partnership agreement or producer contract under this section in a manner that is consistent with the terms of the program.

(2)

Relationship to existing activity

The Secretary shall, to the maximum extent practicable, ensure that eligible activities carried out in critical conservation areas designated under this section complement and are consistent with other Federal and State programs and water quality and quantity strategies.

(3)

Additional authority

For a critical conservation area described in subsection (b)(1)(D), the Secretary may use authorities under the Watershed Protection and Flood Prevention Act (16 U.S.C. 1001 et seq.), other than section 14 of such Act (16 U.S.C. 1012), to carry out projects for the purposes of this section.

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

F

Other Conservation Programs

2501.

Conservation of private grazing land

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

2502.

Grassroots source water protection program

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2) is amended to read as follows:

(b)

Funding

(1)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2008 through 2017.

(2)

Availability of funds

In addition to funds made available under paragraph (1), of the funds of the Commodity Credit Corporation, the Secretary shall use $5,000,000, to remain available until expended.

.

2503.

Voluntary public access and habitat incentive program

(a)

Funding

Section 1240R(f) of the Food Security Act of 1985 (16 U.S.C. 3839bb–5(f)) is amended by inserting before the period at the end the following: and $30,000,000 for the period of fiscal years 2013 through 2017.

(b)

Report on program effectiveness

Not later than two years after the date of the enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report evaluating the effectiveness of the voluntary public access program established by section 1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb–5), including—

(1)

identifying cooperating agencies;

(2)

identifying the number of land holdings and total acres enrolled by each State and tribal government;

(3)

evaluating the extent of improved access on eligible lands, improved wildlife habitat, and related economic benefits; and

(4)

any other relevant information and data relating to the program that would be helpful to such Committees.

2504.

Agriculture conservation experienced services program

(a)

Funding

Subsection (c) of section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) is amended to read as follows:

(c)

Funding

(1)

In general

The Secretary may carry out the ACES program using funds made available to carry out each program under this title.

(2)

Exclusion

Funds made available to carry out the conservation reserve program may not be used to carry out the ACES program.

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2505.

Small watershed rehabilitation program

(a)

Availability of Funds

Section 14(h)(1) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended—

(1)

in subparagraph (E), by striking ; and and inserting a semicolon;

(2)

in subparagraph (F), by striking the period and inserting a semicolon;

(3)

in subparagraph (G), by striking the period and inserting ; and; and

(4)

by adding at the end the following new subparagraph:

(H)

$250,000,000 for fiscal year 2013, to remain available until expended.

.

(b)

Authorization of appropriations

Section 14(h)(2)(E) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by striking 2012 and inserting 2017.

2506.

Agricultural management assistance program

(a)

Uses

Section 524(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(2)) is amended—

(1)

by striking subparagraph (B) and redesignating subparagraphs (C) through (F) as subparagraphs (B) through (E), respectively; and

(2)

in subparagraph (B) (as so redesignated)—

(A)

in the matter preceding clause (i), by striking or resource conservation practices; and

(B)

by striking clause (i) and redesignating clauses (ii) through (iv) as clauses (i) through (iii), respectively.

(b)

Commodity Credit Corporation

(1)

Funding

Section 524(b)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended to read as follows:

(B)

Funding

The Commodity Credit Corporation shall make available to carry out this subsection not less than $10,000,000 for each fiscal year.

.

(2)

Certain uses

Section 524(b)(4)(C) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(C)) is amended—

(A)

in clause (i)—

(i)

by striking 50 and inserting 30; and

(ii)

by striking (A), (B), and (C) and inserting (A) and (B); and

(B)

in clause (iii), by striking 40 and inserting 60.

G

Funding and Administration

2601.

Funding

(a)

In general

Subsection (a) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended to read as follows:

(a)

Annual funding

For each of fiscal years 2013 through 2017, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the following programs under this title (including the provision of technical assistance):

(1)

The conservation reserve program under subchapter B of chapter 1 of subtitle D, including, to the maximum extent practicable, $25,000,000 for the period of fiscal years 2013 through 2017 to carry out section 1235(f) to facilitate the transfer of land subject to contracts from retired or retiring owners and operators to beginning farmers or ranchers and socially disadvantaged farmers or ranchers.

(2)

The agriculture conservation easement program under subtitle H, using, to the maximum extent practicable—

(A)

$450,000,000 in fiscal year 2013;

(B)

$475,000,000 in fiscal year 2014;

(C)

$500,000,000 in fiscal year 2015;

(D)

$525,000,000 in fiscal year 2016; and

(E)

$266,000,000 in fiscal year 2017.

(3)

The conservation security program under subchapter A of chapter 2 of subtitle D, using such sums as are necessary to administer contracts entered into before September 30, 2008.

(4)

The conservation stewardship program under subchapter B of chapter 2 of subtitle D.

(5)

The environmental quality incentives program under chapter 4 of subtitle D, using, to the maximum extent practicable, $1,750,000,000 for each of fiscal years 2013 through 2017.

.

(b)

Guaranteed availability of funds

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended—

(1)

by redesignating subsections (b) through (h) as subsections (c) through (i); respectively; and

(2)

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

(b)

Availability of funds

Amounts made available by subsection (a) shall be used by the Secretary to carry out the programs specified in such subsection for fiscal years 2013 through 2017 and shall remain available until expended. Amounts made available for the programs specified in such subsection during a fiscal year through modifications, cancellations, terminations, and other related administrative actions and not obligated in that fiscal year shall remain available for obligation during subsequent fiscal years, but shall reduce the amount of additional funds made available in the subsequent fiscal year by an amount equal to the amount remaining unobligated.

.

(c)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

2602.

Technical assistance

(a)

In general

Subsection (c) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841), as redesignated by section 2601(b)(1) of this Act, is amended to read as follows:

(c)

Technical assistance

(1)

Availability of funds

Commodity Credit Corporation funds made available for a fiscal year for each of the programs specified in subsection (a)—

(A)

shall be available for the provision of technical assistance for the programs for which funds are made available as necessary to implement the programs effectively; and

(B)

shall not be available for the provision of technical assistance for conservation programs specified in subsection (a) other than the program for which the funds were made available.

(2)

Report

Not later than December 31, 2012, the Secretary shall submit (and update as necessary in subsequent years) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report—

(A)

detailing the amount of technical assistance funds requested and apportioned in each program specified in subsection (a) during the preceding fiscal year; and

(B)

any other data relating to this subsection that would be helpful to such Committees.

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2603.

Regional equity

(a)

In general

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (e) (as redesignated by section 2601(b)(1) of this Act) and inserting the following:

(e)

Regional equity

(1)

Equitable distribution

In determining funding allocations each fiscal year, the Secretary shall, after considering available funding and program demand in each State, provide a distribution of funds for conservation programs under subtitle D (excluding the conservation reserve program under subchapter B of chapter 1), subtitle H (excluding wetland easements under section 1265C), and subtitle I to ensure equitable program participation proportional to historical funding allocations and usage by all States.

(2)

Minimum percentage

In determining the specific funding allocations under paragraph (1), the Secretary shall—

(A)

ensure that during the first quarter of each fiscal year each State has the opportunity to establish that the State can use an aggregate allocation amount of at least 0.6 percent of the funds made available for those conservation programs; and

(B)

for each State that can so establish, provide an aggregate amount of at least 0.6 percent of the funds made available for those conservation programs.

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2604.

Reservation of funds to provide assistance to certain farmers or ranchers for conservation access

(a)

In general

Subsection (h) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended—

(1)

in paragraph (1) by striking 2012 and inserting 2017; and

(2)

by adding at the end the following new paragraph:

(4)

Preference

In providing assistance under paragraph (1), the Secretary shall give preference to a veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))) that qualifies under subparagraph (A) or (B) of paragraph (1).

.

(b)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

2605.

Annual report on program enrollments and assistance

(a)

In general

Subsection (i) (as redesignated by section 2601(b)(1)) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended—

(1)

in paragraph (1), by striking wetlands reserve program and inserting agricultural conservation easement program;

(2)

by striking paragraphs (2) and (3) and redesignating paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), respectively; and

(3)

in paragraph (3) (as so redesignated)—

(A)

by striking agricultural water enhancement program and inserting regional conservation partnership program; and

(B)

by striking 1240I(g) and inserting 1271C(c)(3).

(b)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

2606.

Review of conservation practice standards

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

2607.

Administrative requirements applicable to all conservation programs

(a)

In general

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended—

(1)

in subsection (a)(2), by adding at the end the following new subparagraph:

(E)

Veteran farmers or ranchers (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))).

;

(2)

in subsection (d), by inserting , H, and I before the period at the end;

(3)

in subsection (f)—

(A)

in paragraph (1)(B), by striking country and inserting county; and

(B)

in paragraph (3), by striking subsection (c)(2)(B) or (f)(4) and inserting subsection (c)(2)(A)(ii) or (f)(2); and

(4)

by adding at the end the following new subsections:

(j)

Improved administrative efficiency and effectiveness

In administrating a conservation program under this title, the Secretary shall, to the maximum extent practicable—

(1)

seek to reduce administrative burdens and costs to producers by streamlining conservation planning and program resources; and

(2)

take advantage of new technologies to enhance efficiency and effectiveness.

(k)

Relation to other payments

Any payment received by an owner or operator under this title, including an easement payment or rental payment, shall be in addition to, and not affect, the total amount of payments that the owner or operator is otherwise eligible to receive under any of the following:

(1)

This Act.

(2)

The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).

(3)

The Federal Agriculture Reform and Risk Management Act of 2012.

(4)

Any law that succeeds a law specified in paragraph (1), (2), or (3).

.

(b)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

2608.

Standards for State technical committees

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

2609.

Rulemaking authority

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

1246.

Regulations

(a)

In general

The Secretary shall promulgate such regulations as are necessary to implement programs under this title, including such regulations as the Secretary determines to be necessary to ensure a fair and reasonable application of the limitations established under section 1244(f).

(b)

Rulemaking procedure

The promulgation of regulations and administration of programs under this title—

(1)

shall be carried out without regard to—

(A)

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

(B)

chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act); and

(2)

shall be made as an interim rule effective on publication with an opportunity for notice and comment.

(c)

Congressional review of agency rulemaking

In promulgating regulations under this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

.

H

Repeal of Superseded Program Authorities and Transitional Provisions; Technical Amendments

2701.

Comprehensive conservation enhancement program

(a)

Repeal

Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is repealed.

(b)

Conforming amendment

The heading of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended to read as follows: Conservation Reserve.

2702.

Emergency forestry conservation reserve program

(a)

Repeal

Section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the conservation reserve program under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2703.

Wetlands reserve program

(a)

Repeal

Subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the agricultural conservation easement program under subtitle H of title XII of the Food Security Act of 1985, as added by section 2301 of this Act, to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2704.

Farmland protection program and farm viability program

(a)

Repeal

Subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is repealed.

(b)

Conforming amendment

The heading of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended by striking and Farmland Protection.

(c)

Transitional provisions

(1)

Effect on existing contracts

The amendments made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the agricultural conservation easement program under subtitle H of title XII of the Food Security Act of 1985, as added by section 2301 of this Act, to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(d)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

2705.

Grassland reserve program

(a)

Repeal

Subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the agricultural conservation easement program under subtitle H of title XII of the Food Security Act of 1985, as added by section 2301 of this Act, to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2706.

Agricultural water enhancement program

(a)

Repeal

Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the regional conservation partnership program under subtitle I of title XII of the Food Security Act of 1985, as added by section 2401 of this Act, to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2707.

Wildlife habitat incentive program

(a)

Repeal

Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the environmental quality incentives program under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2708.

Great Lakes basin program

(a)

Repeal

Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb–3) is repealed.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2709.

Chesapeake Bay watershed program

(a)

Repeal

Section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the regional conservation partnership program under subtitle I of title XII of the Food Security Act of 1985, as added by section 2401 of this Act, to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2710.

Cooperative conservation partnership initiative

(a)

Repeal

Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) before October 1, 2012, or any payments required to be made in connection with the contract.

(2)

Funding

The Secretary may use funds made available to carry out the regional conservation partnership program under subtitle I of title XII of the Food Security Act of 1985, as added by section 2401 of this Act, to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as they existed on September 30, 2012.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2012.

2711.

Environmental easement program

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

2712.

Technical amendments

(a)

Definitions

Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended in the matter preceding paragraph (1) by striking E and inserting I.

(b)

Program ineligibility

Section 1211(a) of the Food Security Act of 1985 (16 U.S.C. 3811(a)) is amended by striking predominate each place it appears and inserting predominant.

(c)

Specialty crop producers

Section 1242(i) of the Food Security Act of 1985 (16 U.S.C. 3842(i)) is amended in the header by striking Speciality and inserting Specialty.

III

Trade

A

Food for Peace Act

3001.

General authority

Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended—

(1)

in the matter preceding paragraph (1), by inserting (to be implemented by the Administrator) after under this title; and

(2)

by striking paragraph (7) and the second sentence and inserting the following new paragraph:

(7)

build resilience to mitigate and prevent food crises and reduce the future need for emergency aid.

.

3002.

Support for organizations through which assistance is provided

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

3003.

Food aid quality

Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is amended—

(1)

in paragraph (1)—

(A)

in the matter preceding subparagraph (A)—

(i)

by striking The Administrator and inserting In consultation with the Secretary, the Administrator; and

(ii)

by inserting to establish a mechanism after this title;

(B)

by striking and at the end of subparagraph (B); and

(C)

by striking subparagraph (C) and inserting the following new paragraphs:

(C)

to evaluate, as necessary, the use of current and new agricultural commodities and products thereof in different program settings and for particular recipient groups, including the testing of prototypes;

(D)

to establish and implement appropriate protocols for quality assurance of food products procured by the Secretary for food aid programs; and

(E)

to periodically update program guidelines on the recommended use of agricultural commodities and food products in food aid programs to reflect findings from the implementation of this subsection and other relevant information.

;

(2)

in paragraph (2), by striking The Administrator and inserting In consultation with the Secretary, the Administrator; and

(3)

in paragraph (3), by striking fiscal years 2009 through 2011, not more than $4,500,000 and inserting fiscal years 2013 through 2017, not more than $1,000,000.

3004.

Minimum levels of assistance

Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is amended—

(1)

in paragraph (1), by striking 2012 and inserting 2017; and

(2)

in paragraph (2), by striking 2012 and inserting 2017.

3005.

Food Aid Consultative Group

(a)

Membership

Section 205(b) of the Food for Peace Act (7 U.S.C. 1725(b)) is amended—

(1)

by striking and at the end of paragraph (6);

(2)

by redesignating paragraph (7) as paragraph (8); and

(3)

by inserting after paragraph (6) the following new paragraph:

(7)

representatives from the United States agricultural processing sector involved in providing agricultural commodities for programs under this Act; and

.

(b)

Consultation

Section 205(d) of the Food for Peace Act (7 U.S.C. 1725(d)) is amended—

(1)

by striking the first sentence and inserting the following:

(1)

Consultation in advance of issuance of implementation regulations, handbooks, and guidelines

Not later than 45 days before a proposed regulation, handbook, or guideline implementing this title, or a proposed significant revision to a regulation, handbook, or guideline implementing this title, becomes final, the Administrator shall provide the proposal to the Group for review and comment.

; and

(2)

by adding at the end the following new paragraph:

(2)

Consultation regarding food aid quality efforts

The Administrator shall seek input from and consult with the Group on the implementation of section 202(h).

.

(c)

Reauthorization

Section 205(f) of the Food for Peace Act (7 U.S.C. 1725(f)) is amended by striking 2012 and inserting 2017.

3006.

Oversight, monitoring, and evaluation

(a)

Regulations and guidance

Section 207(c) of the Food for Peace Act (7 U.S.C. 1726a(c)) is amended—

(1)

in the subsection heading, by inserting and Guidance after Regulations;

(2)

in paragraph (1), by adding at the end the following new sentence: Not later than 270 days after the date of the enactment of the Federal Agriculture Reform and Risk Management Act of 2012, the Administrator shall issue all regulations and revisions to agency guidance necessary to implement the amendments made to this title by such Act.; and

(3)

in paragraph (2), by inserting and guidance after develop regulations.

(b)

Funding

Section 207(f) of the Food for Peace Act (7 U.S.C. 1726a(f)) is amended—

(1)

in paragraph (2)—

(A)

by inserting and at the end of subparagraph (D);

(B)

by striking ; and at the end of subparagraph (E) and inserting the period; and

(C)

by striking subparagraph (F);

(2)

by striking paragraphs (3) and (4); and

(3)

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

(4)

in paragraph (4) (as so redesignated)—

(A)

in subparagraph (A), by striking , except for paragraph (2)(F), for which only $2,500,000 shall be made available during fiscal year 2009 and inserting and up to $10,000,000 of such funds for each of fiscal years 2013 through 2017; and

(B)

in subparagraph (B)(i), by striking 2012 and inserting 2017.

(c)

Implementation reports

Not later than 270 days after the date of the enactment of this Act, the Administrator of the Agency for International Development shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committees on Agriculture and Foreign Affairs of the House of Representatives a report describing—

(1)

the implementation of section 207(c) of the Food for Peace Act (7 U.S.C. 1726a(c));

(2)

the surveys, studies, monitoring, reporting, and audit requirements for programs conducted under title II of such Act (7 U.S.C. 1721 et seq.) by an eligible organization that is a nongovernmental organization (as such term is defined in section 402 of such Act (7 U.S.C. 1732)); and

(3)

the surveys, studies, monitoring, reporting, and audit requirements for such programs by an eligible organization that is an intergovernmental organization, such as the World Food Program or other multilateral organization.

3007.

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

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

3008.

General provisions

(a)

Impact on Local Farmers and Economy

Section 403(b) of the Food for Peace Act (7 U.S.C. 1733(b)) is amended by adding at the end the following new sentence: The Secretary or the Administrator, as appropriate, shall seek information, as part of the regular proposal and submission process, from implementing agencies on the potential benefits to the local economy of sales of agricultural commodities within the recipient country..

(b)

Prevention of price disruptions

Section 403(e) of the Food for Peace Act (7 U.S.C. 1733(e)) is amended—

(1)

in paragraph (2), by striking reasonable market price and inserting fair market value; and

(2)

by adding at the end the following new paragraph:

(3)

Coordination on assessments

The Secretary and the Administrator shall coordinate in assessments to carry out paragraph (1) and in the development of approaches to be used by implementing agencies for determining the fair market value described in paragraph (2).

.

(c)

Report on use of funds

Section 403 of the Food for Peace Act (7 U.S.C. 1733) is amended by adding at the end the following new subsection:

(m)

Report on use of funds

Not later than 180 days after the date of the enactment of the Federal Agriculture Reform and Risk Management Act of 2012, and annually thereafter, the Administrator shall submit to Congress a report—

(1)

specifying the amount of funds (including funds for administrative costs, indirect cost recovery, and internal transportation, storage and handling, and associated distribution costs) provided to each eligible organization that received assistance under this Act in the previous fiscal year; and

(2)

describing how those funds were used by the eligible organization.

.

3009.

Prepositioning of agricultural commodities

Section 407(c)(4) of the Food for Peace Act (7 U.S.C. 1736a(c)(4)) is amended—

(1)

in subparagraph (A)—

(A)

by striking 2012 and inserting 2017; and

(B)

by striking for each such fiscal year not more than $10,000,000 of such funds and inserting for each of fiscal years 2001 through 2012 not more than $10,000,000 of such funds and for each of fiscal years 2013 through 2017 not more than $15,000,000 of such funds; and

(2)

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

(B)

Additional prepositioning sites

The Administrator may establish additional sites for prepositioning in foreign countries or change the location of current sites for prepositioning in foreign countries after conducting, and based on the results of, assessments of need, feasibility, and cost.

.

3010.

Annual report regarding food aid programs and activities

Section 407(f)(1) of the Food for Peace Act (7 U.S.C. 1736a(f)(1)) is amended—

(1)

in the paragraph heading, by striking agricultural trade and inserting food aid;

(2)

in subparagraph (B)(ii), by inserting before the semicolon at the end the following: and the intended beneficiaries of the project or activity; and

(3)

in subparagraph (B)(iii)—

(A)

by striking and at the end of subclause (I);

(B)

by inserting and at the end of subclause (II); and

(C)

by inserting after subclause (II) the following new subclause:

(III)

the McGovern-Dole International Food for Education and Child Nutrition Program established by section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1);

.

3011.

Deadline for agreements to finance sales or to provide other assistance

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

3012.

Authorization of appropriations

(a)

Authorization of appropriations

Section 412(a)(1) of the Food for Peace Act (7 U.S.C. 1736f(a)(1)) is amended by striking for fiscal year 2008 and each fiscal year thereafter, $2,500,000,000 and inserting $2,500,000,000 for each of fiscal years 2008 through 2012 and $2,000,000,000 for each of fiscal years 2013 through 2017.

(b)

Minimum level of nonemergency food assistance

Paragraph (1) of section 412(e) of the Food for Peace Act (7 U.S.C. 1736f(e)) is amended to read as follows:

(1)

Funds and commodities

For each of fiscal years 2013 through 2017, of the amounts made available to carry out emergency and nonemergency food assistance programs under title II, not less than $400,000,000 shall be expended for nonemergency food assistance programs under such title.

.

3013.

Micronutrient fortification programs

(a)

Elimination of obsolete reference to study

Section 415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g–2(a)(2)(B)) is amended by striking , using recommendations and all that follows through quality enhancements.

(b)

Extension

Section 415(c) of the Food for Peace Act (7 U.S.C. 1736g–2(c)) is amended by striking 2012 and inserting 2017.

3014.

John Ogonowski and Doug Bereuter Farmer-to-Farmer Program

Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended—

(1)

in subsection (d), in the matter preceding paragraph (1), by inserting , and not less than the greater of $15,000,000 or 0.5 percent of the amounts made available for each of fiscal years 2013 through 2017, after 2012; and

(2)

in subsection (e)(1), by striking 2012 and inserting 2017.

B

Agricultural Trade Act of 1978

3101.

Funding for export credit guarantee program

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

3102.

Funding for market access program

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

3103.

Foreign market development cooperator program

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

C

Other Agricultural Trade Laws

3201.

Food for Progress Act of 1985

(a)

Extension

The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended—

(1)

in subsection (f)(3), by striking 2012 and inserting 2017;

(2)

in subsection (g), by striking 2012 and inserting 2017;

(3)

in subsection (k), by striking 2012 and inserting 2017; and

(4)

in subsection (l)(1), by striking 2012 and inserting 2017.

(b)

Repeal of completed project

Subsection (f) of the Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph (6).

3202.

Bill Emerson Humanitarian Trust

Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1) is amended—

(1)

in subsection (b)(2)(B)(i), by striking 2012 both places it appears and inserting 2017; and

(2)

in subsection (h), by striking 2012 both places it appears and inserting 2017.

3203.

Promotion of agricultural exports to emerging markets

(a)

Direct credits or export credit guarantees

Section 1542(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is amended by striking 2012 and inserting 2017.

(b)

Development of agricultural systems

Section 1542(d)(1)(A)(i) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is amended by striking 2012 and inserting 2017.

3204.

McGovern-Dole International Food for Education and Child Nutrition Program

(a)

Reauthorization

Section 3107(l)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)(2)) is amended by striking 2012 and inserting 2017.

(b)

Technical correction

Section 3107(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(d)) is amended by striking to in the matter preceding paragraph (1).

3205.

Technical assistance for specialty crops

(a)

Purpose

Section 3205(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking related barriers to trade and inserting technical barriers to trade.

(b)

Funding

Section 3205(e)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended—

(1)

by inserting and at the end of subparagraph (C); and

(2)

by striking subparagraphs (D) and (E) and inserting the following new subparagraph:

(D)

$9,000,000 for each of fiscal years 2011 through 2017.

.

3206.

Global Crop Diversity Trust

Section 3202(c) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 22 U.S.C. 2220a note) is amended by striking section and all that follows through the period and inserting the following:

section—

(1)

$60,000,000 for the period of fiscal years 2008 through 2012; and

(2)

$50,000,000 for the period of fiscal years 2013 through 2017.

.

3207.

Under Secretary of Agriculture for Foreign Agricultural Services

(a)

In general

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

225A.

Under Secretary of Agriculture for Foreign Agricultural Services

(a)

Authorization

The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture for Foreign Agricultural Services.

(b)

Confirmation required

If the Secretary establishes the position of Under Secretary of Agriculture for Foreign Agricultural Services under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate.

(c)

Functions of under secretary

(1)

Principal functions

Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture for Foreign Agricultural Services those functions under the jurisdiction of the Department that are related to foreign agricultural services.

(2)

Additional functions

The Under Secretary of Agriculture for Foreign Agricultural Services shall perform such other functions as may be required by law or prescribed by the Secretary.

(d)

Succession

Any official who is serving as Under Secretary of Agriculture for Farm and Foreign Agricultural Services on the date of the enactment of this section and who was appointed by the President, by and with the advice and consent of the Senate, shall not be required to be reappointed under subsection (b) or section 225(b) to the successor position authorized under subsection (a) or section 225(a) if the Secretary establishes the position, and the official occupies the new position, with 180 days after the date of the enactment of this section (or such later date set by the Secretary if litigation delays rapid succession).

.

(b)

Conforming amendments

Section 225 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6931) is amended—

(1)

by striking Under Secretary of Agriculture for Farm and Foreign Agricultural Services each place it appears and inserting Under Secretary of Agriculture for Farm Services; AND

(2)

in subsection (c)(1), by striking and foreign agricultural.

(c)

Permanent authority

Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended—

(1)

in paragraph (6)(C), by striking or at the end;

(2)

in paragraph (7), by striking the period at the end and inserting a semicolon; and

(3)

by adding at the end the following new paragraph:

(8)

the authority of the Secretary to establish in the Department the position of Under Secretary of Agriculture for Foreign Agricultural Services in accordance with section 225A;

.

IV

Nutrition

A

Supplemental nutrition assistance program

4001.

Retailers

(a)

Definition of retail food store

Section 3(p)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is amended by striking at least 2 and inserting at least 3.

(b)

Alternative benefit delivery

Section 7(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended—

(1)

by striking paragraph (2) and inserting the following:

(2)

Imposition of costs

(A)

In general

Except as provided in subparagraph (B), the Secretary shall require participating retailers (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies.

(B)

Exemptions

The Secretary may exempt from subparagraph (A)—

(i)

farmers’ markets, military commissaries, nonprofit food buying cooperatives, and establishments, organizations, programs, or group living arrangements described in paragraphs (5), (7), and (8) of section 3(k); and

(ii)

establishments described in paragraphs (3), (4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.

; and

(2)

by adding at the end the following:

(4)

Termination of manual vouchers

(A)

In general

Effective beginning on the effective date of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a household that receives supplemental nutrition assistance under this Act or allow retailers to accept manual vouchers as payment, unless the Secretary determines that the manual vouchers are necessary, such as in the event of an electronic benefit transfer system failure or a disaster situation.

(B)

Exemptions

The Secretary may exempt categories of retailers or individual retailers from subparagraph (A) based on criteria established by the Secretary.

(5)

Unique identification number required

In an effort to enhance the antifraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide for and maintain a unique terminal identification number information through the supplemental nutrition assistance program electronic benefit transfer transaction routing system. In developing the regulations implementing this paragraph, the Secretary shall consider existing commercial practices for other point-of-sale debit transactions. The Secretary shall issue proposed regulations implementing this paragraph not earlier than 2 years after the date of enactment of this paragraph.

.

(c)

Electronic benefit transfers

Section 7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by striking is operational— and all that follows through (ii) in the case of other participating stores, and inserting is operational.

(d)

Approval of retail food stores and wholesale food concerns

Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is amended—

(1)

in the 2d sentence of subsection (a)(1) by striking ; and (C) and inserting ; (C) whether the applicant is located in an area with significantly limited access to food; and (D);

(2)

in subsection (b) by adding at the end the following:

(3)

Retail food stores with significant sales of excluded items

(A)

In general

No retail food store for which at least 45 percent of the total sales of the retail food store is from the sale of excluded items described in section 3(k)(1) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the retail food store is required for the effective and efficient operation of the supplemental nutrition assistance program.

(B)

Application

Subparagraph (A) shall be effective—

(i)

in the case of retail food stores applying to be authorized for the 1st time, beginning on the date that is 1 year after the effective date of this paragraph; and

(ii)

in the case of retail food stores participating in the program on the effective date of this paragraph, during periodic reauthorization in accordance with subsection (a)(2)(A).

; and

(3)

by adding at the end the following:

(g)

EBT service requirement

An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).

.

4002.

Enhancing services to elderly and disabled supplemental nutrition assistance program recipients

(a)

Enhancing services to elderly and disabled program recipients

Section 3(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)) is amended—

(1)

in paragraph (3) by striking and at the end,

(2)

in paragraph (4) by striking the period at the end and inserting ; and, and

(3)

by inserting after paragraph (4) the following:

(5)

a governmental or private nonprofit food purchasing and delivery service that—

(A)

purchases food for, and delivers such food to, individuals who are—

(i)

unable to shop for food; and

(ii)
(I)

not less than 60 years of age; or

(II)

physically or mentally handicapped or otherwise disabled;

(B)

clearly notifies the participating household at the time such household places a food order—

(i)

of any delivery fee associated with the food purchase and delivery provided to such household by such service; and

(ii)

that a delivery fee cannot be paid with benefits provided under supplemental nutrition assistance program; and

(C)

sells food purchased for such household at the price paid by such service for such food and without any additional cost markup.

.

(b)

Implementation

(1)

Issuance of rules

The Secretary of Agriculture shall issue regulations that—

(A)

establish criteria to identify a food purchasing and delivery service referred to in section 3(p)(5) of the Food and Nutrition Act of 2008 as amended by this Act, and

(B)

establish procedures to ensure that such service—

(i)

does not charge more for a food item than the price paid by the such service for such food item,

(ii)

offers food delivery service at no or low cost to households under such Act,

(iii)

ensures that benefits provided under the supplemental nutrition assistance program are used only to purchase food, as defined in section 3 of such Act,

(iv)

limits the purchase of food, and the delivery of such food, to households eligible to receive services described in section 3(p)(5) of such Act as so amended,

(v)

has established adequate safeguards against fraudulent activities, including unauthorized use of electronic benefit cards issued under such Act, and

(vi)

such other requirements as the Secretary deems to be appropriate.

(2)

Limitation

Before the issuance of rules under paragraph (1) , the Secretary of Agriculture may not approve more than 20 food purchasing and delivery services referred to in section 3(p)(5) of the Food and Nutrition Act of 2008 as amended by this Act, to participate as retail food stores under the supplemental nutrition assistance program.

4003.

Food distribution program on Indian reservations

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

4004.

Updating program eligibility

Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—

(1)

in the 2d sentence of subsection (a) by striking households in which each member receives benefits and inserting households in which each member receives cash assistance, and

(2)

in subsection (j) by striking or who receives benefits under a State program and inserting or who receives cash assistance under a State program.

4005.

Exclusion of medical marijuana from excess medical expense deduction

Section 5(e)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(5)) is amended by adding at the end the following:

(C)

Exclusion of medical marijuana

The Secretary shall promulgate rules to ensure that medical marijuana is not treated as a medical expense for purposes of this paragraph.

.

4006.

Standard utility allowances based on the receipt of energy assistance payments

(a)

Standard utility allowances in the supplemental nutrition assistance program

Section 5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended—

(1)

in clause (i) by inserting , subject to clause (iv) after Secretary; and

(2)

in clause (iv)(I) by striking the household still incurs and all that follows through the end of the subclause and inserting the payment received by, or made on behalf of, the household exceeds $10 or a higher amount annually, as determined by the Secretary..

(b)

Conforming amendment

Section 2605(f)(2)(A) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended by inserting before the semicolon at the end , except that, for purposes of the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such payments or allowances exceed $10 or a higher amount annually, as determined by the Secretary of Agriculture in accordance with section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)).

(c)

Effective and implementation date

(1)

In general

Except as provided in paragraph (2), this section and the amendments made by this section shall take effect beginning on October 1, 2013, for all certification periods beginning after that date.

(2)

State option to delay implementation for current recipients

A State may, at the option of the State, implement a policy that eliminates or minimizes the effect of the amendments made by this section for households that receive a standard utility allowance as of the date of enactment of this Act for not more than a 180-day period beginning on the date on which the amendments made by this section would otherwise affect the benefits received by a household.

4007.

Eligibility disqualifications

Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking section; and inserting the following:

section, subject to the condition that the course or program of study—

(i)

is part of a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302)) that may be completed in not more than 4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)); or

(ii)

is limited to remedial courses, basic adult education, literacy, or English as a second language;

.

4008.

Ending supplemental nutrition assistance program benefits for lottery or gambling winners

(a)

In general

Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is amended by adding at the end the following:

(r)

Ineligibility for benefits due to receipt of substantial lottery or gambling winnings

(1)

In general

Any household in which a member receives substantial lottery or gambling winnings, as determined by the Secretary, shall lose eligibility for benefits immediately upon receipt of the winnings.

(2)

Duration of ineligibility

A household described in paragraph (1) shall remain ineligible for participation until the household meets the allowable financial resources and income eligibility requirements under subsections (c), (d), (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.

(3)

Agreements

As determined by the Secretary, each State agency, to the maximum extent practicable, shall establish agreements with entities responsible for the regulation or sponsorship of gaming in the State to determine whether individuals participating in the supplemental nutrition assistance program have received substantial lottery or gambling winnings.

.

(b)

Conforming amendments

Section 5(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the 2d sentence by striking sections 6(b), 6(d)(2), and 6(g) and inserting subsections (b), (d)(2), (g), and (r) of section 6.

4009.

Improving security of food assistance

Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(8)) is amended—

(1)

in the heading by striking card fee and inserting of cards;

(2)

by striking A State and inserting the following:

(A)

Fees

A State

; and

(3)

by adding after subparagraph (A) (as so designated by paragraph (2)) the following:

(B)

Purposeful loss of cards

(i)

In general

Subject to terms and conditions established by the Secretary in accordance with clause (ii), if a household makes excessive requests for replacement of the electronic benefit transfer card of the household, the Secretary may require a State agency to decline to issue a replacement card to the household unless the household, upon request of the State agency, provides an explanation for the loss of the card.

(ii)

Requirements

The terms and conditions established by the Secretary shall provide that—

(I)

the household be given the opportunity to provide the requested explanation and meet the requirements under this paragraph promptly;

(II)

after an excessive number of lost cards, the head of the household shall be required to review program rights and responsibilities with State agency personnel authorized to make determinations under section 5(a); and

(III)

any action taken, including actions required under section 6(b)(2), other than the withholding of the electronic benefit transfer card until an explanation described in subclause (I) is provided, shall be consistent with the due process protections under section 6(b) or 11(e)(10), as appropriate.

(C)

Protecting vulnerable persons

In implementing this paragraph, a State agency shall act to protect homeless persons, persons with disabilities, victims of crimes, and other vulnerable persons who lose electronic benefit transfer cards but are not intentionally committing fraud.

(D)

Effect on eligibility

While a State may decline to issue an electronic benefits transfer card until a household satisfies the requirements under this paragraph, nothing in this paragraph shall be considered a denial of, or limitation on, the eligibility for benefits under section 5.

.

4010.

Demonstration projects on acceptance of benefits of mobile transactions

Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended by adding at the end the following:

(14)

Demonstration projects on acceptance of benefits of mobile transactions

(A)

In general

The Secretary shall pilot the use of mobile technologies determined by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores, farmers markets, and other direct producer-to-consumer marketing outlets to accept benefits from recipients of supplemental nutrition assistance through mobile transactions.

(B)

Demonstration projects

To be eligible to participate in a demonstration project under subsection (a), a retail food store, farmers market, or other direct producer-to-consumer marketing outlet shall submit to the Secretary for approval a plan that includes—

(i)

a description of the technology;

(ii)

the manner by which the retail food store, farmers market or other direct producer-to-consumer marketing outlet will provide proof of the transaction to households;

(iii)

the provision of data to the Secretary, consistent with requirements established by the Secretary, in a manner that allows the Secretary to evaluate the impact of the demonstration on participant access, ease of use, and program integrity; and

(iv)

such other criteria as the Secretary may require.

(C)

Date of completion

The demonstration projects under this paragraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.

(D)

Report to congress

The Secretary shall submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes a finding, based on the data provided under subparagraph (C) whether or not implementation in all States is in the best interest of the supplemental nutrition assistance program.

.

4011.

Use of benefits for purchase of community-supported agriculture share

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

4012.

Restaurant meals program

(a)

In general

Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)) is amended—

(1)

in paragraph (22) by striking and at the end;

(2)

in paragraph (23)(C) by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following:

(24)

if the State elects to carry out a program to contract with private establishments to offer meals at concessional prices, as described in paragraphs (3), (4), and (9) of section 3(k)—

(A)

the plans of the State agency for operating the program, including—

(i)

documentation of a need that eligible homeless, elderly, and disabled clients are underserved in a particular geographic area;

(ii)

the manner by which the State agency will limit participation to only those private establishments that the State determines necessary to meet the need identified in clause (i); and

(iii)

any other conditions the Secretary may prescribe, such as the level of security necessary to ensure that only eligible recipients participate in the program; and

(B)

a report by the State agency to the Secretary annually, the schedule of which shall be established by the Secretary, that includes—

(i)

the number of households and individual recipients authorized to participate in the program, including any information on whether the individual recipient is elderly, disabled, or homeless; and

(ii)

an assessment of whether the program is meeting an established need, as documented under subparagraph (A)(i).

.

(b)

Approval of retail food stores and wholesale food concerns

Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is amended by adding at the end the following:

(h)

Private establishments

(1)

In general

Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals at concessional prices as described in paragraphs (3), (4), and (9) of section 3(k) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the private establishment is required to meet a documented need in accordance with section 11(e)(24).

(2)

Existing contracts

(A)

In general

If, on the day before the effective date of this subsection, a State has entered into a contract with a private establishment described in paragraph (1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a documented need in accordance with section 11(e)(24), the Secretary shall allow the operation of the private establishment to continue without that determination of need for a period not to exceed 180 days from the date on which the Secretary establishes determination criteria, by regulation, under section 11(e)(24).

(B)

Justification

If the Secretary determines to terminate a contract with a private establishment that is in effect on the effective date of this subsection, the Secretary shall provide justification to the State in which the private establishment is located for that termination.

(3)

Report to Congress

Not later than 90 days after September 30, 2013, and 90 days after the last day of each fiscal year thereafter, the Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the effectiveness of a program under this subsection using any information received from States under section 11(e)(24) as well as any other information the Secretary may have relating to the manner in which benefits are used.

.

(c)

Conforming amendments

Section 3(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting subject to section 9(h) after concessional prices each place it appears.

4013.

State verification option

Section 11(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(p)) is amended to read as follows:

(p)

State verification option

In carrying out the supplemental nutrition assistance program, a State agency shall be required to use an income and eligibility, or an immigration status, verification system established under section 1137 of the Social Security Act (42 U.S.C. 1320b–7), in accordance with standards set by the Secretary.

.

4014.

Repeal of grant program

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

4015.

Data exchange standardization for improved interoperability

(a)

Data Exchange Standardization

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding at the end the following:

(v)

Data exchange standardization for improved interoperability

(1)

Data exchange standards

(A)

Designation

The Secretary, in consultation with an interagency work group which shall be established by the Office of Management and Budget, and considering State perspectives, shall, by rule, designate a data exchange standard for any category of information required to be reported under this Act.

(B)

Data exchange standards must be nonproprietary and interoperable

The data exchange standard designated under subparagraph (A) shall, to the extent practicable, be nonproprietary and interoperable.

(C)

Other requirements

In designating data exchange standards under this subsection, the Secretary shall, to the extent practicable, incorporate—

(i)

interoperable standards developed and maintained by an international voluntary consensus standards body, as defined by the Office of Management and Budget, such as the International Organization for Standardization;

(ii)

interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model; and

(iii)

interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance, such as the Federal Acquisition Regulatory Council.

(2)

Data exchange standards for reporting

(A)

Designation

The Secretary, in consultation with an interagency work group established by the Office of Management and Budget, and considering State perspectives, shall, by rule, designate data exchange standards to govern the data reporting required under this part.

(B)

Requirements

The data exchange standards required by subparagraph (A) shall, to the extent practicable—

(i)

incorporate a widely-accepted, nonproprietary, searchable, computer-readable format;

(ii)

be consistent with and implement applicable accounting principles; and

(iii)

be capable of being continually upgraded as necessary.

(C)

Incorporation of nonproprietary standards

In designating reporting standards under this subsection, the Secretary shall, to the extent practicable, incorporate existing nonproprietary standards, such as the eXtensible Markup Language.

.

(b)

Effective Dates

(1)

Data exchange standards

The Secretary of Agriculture shall issue a proposed rule under section 11(v)(1) of the Food and Nutrition Act of 2008 within 12 months after the effective date of this section, and shall issue a final rule under such section after public comment, within 24 months after such effective date.

(2)

Data reporting standards

The reporting standards required under section 11(v)(2) of such Act shall become effective with respect to reports required in the first reporting period, after the effective date of the final rule referred to in paragraph (1) of this subsection, for which the authority for data collection and reporting is established or renewed under the Paperwork Reduction Act.

4016.

Repeal of bonus program

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

4017.

Funding of employment and training programs

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

4018.

Monitoring employment and training program

(a)

Reporting measures

Section 16(h)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(5)) is amended to read:

(5)
(A)

In general

The Secretary shall monitor the employment and training programs carried out by State agencies under section 6(d)(4) and assess their effectiveness in—

(i)

preparing members of households participating in the supplemental nutrition assistance program for employment, including the acquisition of basic skills necessary for employment; and

(ii)

increasing the numbers of household members who obtain and retain employment subsequent to their participation in such employment and training programs.

(B)

Reporting measures

The Secretary, in consultation with the Secretary of Labor, shall develop reporting measures that identify improvements in the skills, training education or work experience of members of households participating in the supplemental nutrition assistance program. Measures shall be based on common measures of performance for federal workforce training programs, so long as they reflect the challenges facing the types of members of households participating in the supplemental nutrition assistance program who participate in a specific employment and training component. The Secretary shall require that each State employment and training plan submitted under section 11(3)(19) identify appropriate reporting measures for each of their proposed components that serve at least 100 people. Such measures may include:

(i)

the percentage and number of program participants who received employment and training services and are in unsubsidized employment subsequent to the receipt of those services;

(ii)

the percentage and number of program participants who obtain a recognized postsecondary credential, including a registered apprenticeship, or a regular secondary school diploma or its recognized equivalent, while participating in or within 1 year after receiving employment and training services;

(iii)

the percentage and number of program participants who are in an education or training program that is intended to lead to a recognized postsecondary credential, including a registered apprenticeship or on-the-job training program, a regular secondary school diploma or its recognized equivalent, or unsubsidized employment;

(iv)

subject to the terms and conditions set by the Secretary, measures developed by each State agency to assess the skills acquisition of employment and training program participants that reflect the goals of their specific employment and training program components, which may include, but are not limited to—

(I)

the percentage and number of program participants who are meeting program requirements in each component of the State’s education and training program; and

(II)

the percentage and number of program participants who are gaining skills likely to lead to employment as measured through testing, quantitative or qualitative assessment or other method; and

(v)

other indicators as approved by the Secretary.

(C)

State report

Each State agency shall annually prepare and submit to the Secretary a report on the State’s employment and training program that includes the numbers of supplemental nutrition assistance program participants who have gained skills, training, work or experience that will increase their ability to obtain regular employment using measures identified in subparagraph (B).

(D)

Modifications to the state employment and training plan

Subject to the terms and conditions established by the Secretary, if the Secretary determines that the state agency’s performance with respect to employment and training outcomes is inadequate, the Secretary may require the State agency to make modifications to their employment and training plan to improve such outcomes.

(E)

Periodic evaluation

(i)

In general

Subject to terms and conditions established by the Secretary, not later than October 1, 2015, and not less frequently than once every 5 years thereafter, the Secretary shall conduct a study to review existing practice and research to identify employment and training program components and practices that—

(I)

effectively assist members of households participating in the supplemental nutrition assistance program in gaining skills, training, work, or experience that will increase their ability to obtain regular employment, and

(II)

are best integrated with statewide workforce development systems.

(ii)

Report to congress

The Secretary shall submit a report that describes the results of the study under clause (i) to the Committee on Agriculture in the House of Representatives, and the Committee on Agriculture, Nutrition and Forestry in the Senate.

.

(b)

Effective date

Notwithstanding section 4(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)), the Secretary shall issue interim final regulations implementing the amendment made by subsection (a) no later than 18 months after the date of enactment of this Act. States shall include such reporting measures in their employment and training plans for the 1st fiscal year thereafter that begins no sooner than 6 months after the date that such regulations are published.

4019.

Cooperation with program research and evaluation

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is amended by adding at the end the following:

(l)

Cooperation with program research and evaluation

States, State agencies, local agencies, institutions, facilities such as data consortiums, and contractors participating in programs authorized under this Act shall cooperate with officials and contractors acting on behalf of the Secretary in the conduct of evaluations and studies under this Act and shall submit information at such time and in such manner as the Secretary may require.

.

4020.

Authorization of appropriations

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

4021.

Limitation on use of block grant to Puerto Rico

Section 19(a)(2)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(B)) is amended by adding at the end the following:

(iii)

Limitation on use of funds

None of the funds made available to the Commonwealth of Puerto Rico under this subparagraph may be used to provide nutrition assistance in the form of cash benefits.

.

4022.

Assistance for community food projects

(a)

Definition

Section 25(a)(1)(B)(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2034(a)(1)(B)(i)) is amended—

(1)

in subclause (II) by striking and at the end;

(2)

in subclause (III) by striking or at the end and inserting and; and

(3)

by adding at the end the following:

(IV)

to provide incentives for the consumption of fruits and vegetables among low-income individuals; or

.

(b)

Additional funding

Section 25(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended by adding at the end the following:

(3)

Funding

(A)

In general

Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $10,000,000 for fiscal year 2013 and each fiscal year thereafter. Of the amount made available under this subparagraph for each such fiscal year, $5,000,000 shall be available to carry out subsection (a)(1)(B)(I)(IV).

(B)

Receipt and acceptance

The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section, the funds transferred under subparagraph (A) without further appropriation.

(C)

Maintenance of funding

The funding provided under subparagraph (A) shall supplement (and not supplant) other Federal funding made available to the Secretary to carry out this section.

.

4023.

Emergency food assistance

(a)

Purchase of commodities

Section 27(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended—

(1)

in paragraph (1) by striking 2008 through 2012 and inserting 2012 through 2017; and

(2)

in paragraph (2)—

(A)

by striking subparagraphs (A) and (B) and inserting the following:

(A)

for fiscal year 2012, $260,250,000;

(B)

for fiscal year 2013 the dollar amount of commodities specified in subparagraph (A) adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2011 and June 30, 2012, and subsequently increased by $20,000,000;

;

(B)

in subparagraph (C)—

(i)

by striking 2010 through 2012, the dollar amount of commodities specified in and inserting 2014 through 2017, the total amount of commodities under; and

(ii)

by striking 2008 and inserting 2012; and

(iii)

by striking the period at the end and inserting:; and; and

(C)

by adding at the end the following:

(D)

for fiscal year 2013 the dollar amount of commodities specified in subparagraph (B), and for each of the fiscal years 2014 through 2017 the respective dollar amount of commodities specified in subparagraph (C), increased by $5,000,000.

.

(b)

Emergency food program infrastructure grants

Section 209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is amended by striking 2012 and inserting 2017.

4024.

Nutrition education

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

4025.

Retailer trafficking

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

29.

Retailer trafficking

(a)

Purpose

The purpose of this section is to provide the Department of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retailer program integrity. Additional funds are provided to supplement the Department’s payment accuracy, and retailer and recipient integrity activities.

(b)

Funding

(1)

In general

Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $5,000,000 for fiscal year 2013 and each fiscal year thereafter.

(2)

Receipt and acceptance

The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1) without further appropriation.

(3)

Maintenance of funding

The funding provided under paragraph (1) shall supplement (and not supplant) other Federal funding for programs carried out under this Act.

.

4026.

Technical and conforming amendments

(a)

Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended—

(1)

in subsection (g) by striking coupon, the last place it appears and inserting coupon;

(2)

in subsection (k)(7) by striking or are and inserting and;

(3)

by striking subsection (l);

(4)

by redesignating subsections (m) through (t) as subsections (l) through (s), respectively; and

(5)

by inserting after subsection (s) (as so redesignated) the following:

(t)

Supplemental nutritional assistance program means the program operated pursuant to this Act.

.

(b)

Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended by striking benefits the last place it appears and inserting Benefits.

(c)

Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—

(1)

in the last sentence of subsection (i)(2)(D) by striking section 13(b)(2) and inserting section 13(b); and

(2)

in subsection (k)(4)(A) by striking paragraph (2)(H) and inserting paragraph (2)(G).

(d)

Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended—

(1)

in subparagraph (B)(vii) by moving the left margin 2 ems to the left, and

(2)

in subparagraph(F)(iii) by moving the left margin 4 ems to the left.

(e)

Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended by redesignating the 2d paragraph (12) as paragraph (13).

(f)

Section 9(a)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 2018(a)) is amended by moving the left margin 2 ems to the left.

(g)

Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended—

(1)

in subsection (b)(3)(C) by striking civil money penalties and inserting civil penalties; and

(2)

in subsection (g)(1) by striking (7 U.S.C. 1786) and inserting (42 U.S.C. 1786).

(h)

Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2024(b)(1)) is amended in the 1st sentence by striking an benefit and inserting a benefit.

(i)

Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the proviso following paragraph (8) by striking , as amended..

(j)

Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(e)) is amended in the 1st sentence by striking sections 7(f) and inserting section 7(f).

(k)

Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by striking Food benefits and inserting Benefits.

(l)

Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking subsection and inserting subsections.

(m)

Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(1)) is amended by striking (Public Law 98–8; 7 U.S.C. 612c note) and inserting (7 U.S.C. 7515).

(n)

Section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g) is amended in the section heading by striking food stamp programs and inserting supplemental nutrition assistance program.

(o)

Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1871) is amended by striking 531 and inserting 454.

(p)

Section 3803(c)(2)(C)(vii) of title 31 of the United States Code is amended by striking section 3(l) each place it appears and inserting section 3(s).

(q)

Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193) is amended—

(1)

in subsection (a)(2) by striking section 3(l) and inserting section 3(s);

(2)

in subsection (b)(2) by striking section 3(l) and inserting section 3(s); and

(3)

in subsection (e)(2) by striking section 3(l) and inserting section 3(s).

(r)

The Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c) is amended—

(1)

in section 4(a) by striking Food Stamp Act of 1977 and inserting Food and Nutrition Act of 2008; and

(2)

in section 5—

(A)

in subsection (i)(1) by striking Food Stamp Act of 1977 and inserting Food and Nutrition Act of 2008; and

(B)

in subsection (l)(2)(B) by striking Food Stamp Act of 1977 and inserting Food and Nutrition Act of 2008.

(s)

The Social Security Act (42 U.S.C. 301 et seq.) is amended—

(1)

in the heading of section 453(j)(10) by striking food stamp and inserting supplemental nutrition assistance;

(2)

in section 1137—

(A)

in subsection (a)(5)(B) by striking food stamp and inserting supplemental nutrition assistance; and

(B)

in subsection (b)(4) by striking food stamp program under the Food Stamp Act of 1977 and inserting supplemental nutrition assistance program under the Food and Nutrition Act of 2008; and

(3)

in the heading of section 1631(n) by striking food stamp and inserting supplemental nutrition assistance.

4027.

Tolerance level for excluding small errors

The Secretary shall set the tolerance level for excluding small errors for the purposes of section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c))—

(1)

for fiscal year 2013 at an amount no greater than $25; and

(2)

for each fiscal year thereafter, the amount specified in paragraph (1) adjusted by the percentage by which the thrifty food plan is adjusted under section 3(u)(4) of such Act between June 30, 2011, and June 30 of the immediately preceding fiscal year.

4028.

Commonwealth of the Northern Mariana Islands pilot program

(a)

Study

(1)

In general

Prior to establishing the pilot program under subsection (b), the Secretary shall conduct a study to be completed not later than 2 years after the effective date of this section to assess—

(A)

the capabilities of the Commonwealth of the Northern Mariana Islands to operate the supplemental nutrition assistance program in the same manner in which the program is operated in the States (as defined in section 3 of the Food and Nutrition Act (7 U.S.C. 2011 et seq)); and

(B)

alternative models of the supplemental nutrition assistance program operation and benefit delivery that best meet the nutrition assistance needs of the Commonwealth of the Northern Mariana Islands.

(2)

Scope

The study conducted under paragraph (1)(A) will assess the capability of the Commonwealth to fulfill the responsibilities of a State agency, including—

(A)

extending and limiting participation to eligible households, as prescribed by sections 5 and 6 of the Act;

(B)

issuing benefits through EBT cards, as prescribed by section 7 of the Act;

(C)

maintaining the integrity of the program, including operation of a quality control system, as prescribed by section 16(c) of the Act;

(D)

implementing work requirements, including operating an employment and training program, as prescribed by section 6(d) of the Act; and

(E)

paying a share of administrative costs with non-Federal funds, as prescribed by section 16(a) of the Act.

(b)

Establishment

If the Secretary determines that a pilot program is feasible, the Secretary shall establish a pilot program for the Commonwealth of the Northern Mariana Islands to operate the supplemental nutrition assistance program in the same manner in which the program is operated in the States.

(c)

Scope

The Secretary shall utilize the information obtained from the study conducted under subsection (a) to establish the scope of the pilot program established under subsection (b).

(d)

Report

Not later than June 30, 2018, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the pilot program carried out under this section, including an analysis of the feasibility of operating in the Commonwealth of the Northern Mariana Islands the supplemental nutrition assistance program as it is operated in the States.

(e)

Funding

(1)

Study

Of the funds made available under section 18(a)(1) of the Food and Nutrition Act of 2008, the Secretary may use not more than $1,000,000 in each of fiscal years 2013 and 2014 to conduct the study described in subsection (a).

(2)

Pilot program

Of the funds made available under section 18(a)(1) of the Food and Nutrition Act of 2008, for the purposes of establishing and carrying out the pilot program established under subsection (b) of this section, including the Federal costs for providing technical assistance to the Commonwealth, authorizing and monitoring retail food stores, and assessing pilot operations, the Secretary may use not more than—

(A)

$13,500,000 in fiscal year 2015; and

(B)

$8,500,000 in each of fiscal years 2016 and 2017.

4029.

Annual State report on verification of SNAP participation

(a)

Annual report

Not later 1 year after the date specified by the Secretary in the 180-period beginning on the date of the enactment of this Act, and annually thereafter, each State agency that carries out the supplemental nutrition assistance program shall submit to the Secretary a report containing sufficient information for the Secretary to determine whether the State agency has, for the then most recently concluded fiscal year preceding such annual date, verified that households to which such State agency provided such assistance in such fiscal year—

(1)

did not obtain benefits attributable to a deceased individual; and

(2)

did not include an individual who was simultaneously included in a household receiving such assistance in another State.

(b)

Penalty for noncompliance

For any fiscal year for which a State agency fails to comply with subsection (a), the Secretary shall reduce by 50 percent the amount otherwise payable to such State agency under section 16(a) of the Food and Nutrition Act of 2008 with respect to such fiscal year.

B

Commodity distribution programs

4101.

Commodity distribution program

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

4102.

Commodity supplemental food program

Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended—

(1)

in paragraphs (1) and (2)(B) of subsection (a) by striking 2012 each place it appears and inserting 2017;

(2)

in the 1st sentence of subsection (d)(2) by striking 2012 and inserting 2017;

(3)

by striking subsection (g) and inserting the following:

(g)

Eligibility

Except as provided in subsection (m), the States shall only provide assistance under the commodity supplemental food program to low-income individuals aged 60 and older.

; and

(4)

by adding at the end the following:

(m)

Phase-out

Notwithstanding any other provision of law, an individual who receives assistance under the commodity supplemental food program on the day before the effective date of this subsection shall continue to receive that assistance until the date on which the individual no longer qualifies for assistance under the eligibility criteria for the program in effect on the day before the effective date of this subsection.

.

4103.

Distribution of surplus commodities to special nutrition projects

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

4104.

Processing of commodities

(a)

Section 17 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note) is amended by—

(1)

striking the heading and inserting Commodity donations and processing; and

(2)

adding at the end the following:

(c)

Processing

For any program included in subsection (b), the Secretary may, notwithstanding any other provision of State or Federal law relating to the procurement of goods and services—

(1)

retain title to commodities delivered to a processor, on behalf of a State (including a State distributing agency and a recipient agency), until such time as end products containing such commodities, or similar commodities as approved by the Secretary, are delivered to a State distributing agency or to a recipient agency; and

(2)

promulgate regulations to ensure accountability for commodities provided to a processor for processing into end products, and to facilitate processing of commodities into end products for use by recipient agencies. Such regulations may provide that—

(A)

a processor that receives commodities for processing into end products, or provides a service with respect to such commodities or end products, in accordance with its agreement with a State distributing agency or a recipient agency, provide to the Secretary a bond or other means of financial assurance to protect the value of such commodities; and

(B)

in the event a processor fails to deliver to a State distributing agency or a recipient agency an end product in conformance with the processing agreement entered into under this Act, the Secretary take action with respect to the bond or other means of financial assurance pursuant to regulations promulgated under this paragraph and distribute any proceeds obtained by the Secretary to one or more State distributing agencies and recipient agencies as determined appropriate by the Secretary.

.

(b)

Definitions

Section 18 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note) is amended by striking paragraphs (1) and (2) and inserting the following:

(1)

The term commodities means agricultural commodities and their products that are donated by the Secretary for use by recipient agencies.

(2)

The term end product means a food product that contains processed commodities.

.

(c)

Technical and conforming amendments

Section 3 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended—

(1)

in subsection (a)—

(A)

in paragraph (2) by striking subparagraph (B) and inserting the following:

(B)

the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));

; and

(B)

in paragraph (3)(D) by striking the Committee on Education and Labor and inserting the Committee on Education and the Workforce;

(2)

in subsection (b)(1)(A)(ii) by striking section 32 of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.) and inserting section 32 of the Act of August 24, 1935 (7 U.S.C. 612c);

(3)

in subsection (e)(1)(D)(iii) by striking subclause (II) and inserting the following:

(II)

the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));

; and

(4)

in subsection (k) by striking the Committee on Education and Labor and inserting the Committee on Education and the Workforce.

C

Miscellaneous

4201.

Farmers’ market nutrition program

Section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007) is amended—

(1)

in the section heading by striking Seniors;

(2)

by amending subsection (a) to read as follows:

(a)

Funding

(1)

In general

Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall use to carry out and expand the farmers market nutrition program $20,600,000 for each of fiscal years 2013 through 2017.

(2)

Additional funding

There is authorized to be appropriated such sums as are necessary to carry out this subsection for each of fiscal years 2013 through 2017.

;

(3)

in subsection (b)—

(A)

in the matter preceding paragraph (1), by striking seniors; and

(B)

in paragraph (1) by inserting , and low-income families who are determined to be at nutritional risk after low-income seniors;

(4)

in subsection (c) by striking seniors;

(5)

in subsection (d) by striking seniors;

(6)

in subsection (e) by striking seniors;

(7)

by redesignating subsections (c), (d), (e), and (f) as subsections (d), (e), (f), and (g), respectively; and

(8)

by inserting after subsection (b) the following:

(c)

State grants and other assistance

The Secretary shall carry out the Program through grants and other assistance provided in accordance with agreements made with States, for implementation through State agencies and local agencies, that include provisions—

(1)

for the issuance of coupons or vouchers to participating individuals;

(2)

establishing an appropriate annual percentage limitation on the use of funds for administrative costs; and

(3)

specifying other terms and conditions as the Secretary deems appropriate to encourage expanding the participation of small scale farmers in Federal nutrition programs.

.

4202.

Nutrition information and awareness pilot program

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

4203.

Fresh fruit and vegetable program

Section 19 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769a) is amended—

(1)

in the section heading, by striking Fresh;

(2)

in subsection (a), by striking fresh;

(3)

in subsection (b), by striking fresh; and

(4)

in subsection (e), by striking fresh.

4204.

Additional authority for purchase of fresh fruits, vegetables, and other specialty food crops

Section 10603 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4) is amended—

(1)

in subsection (b), by striking 2012 and inserting 2017;

(2)

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

(3)

by inserting after subsection (b) the following new subsection:

(c)

Pilot grant program for purchase of fresh fruits and vegetables

(1)

In general

Using amounts made available to carry out subsection (b), the Secretary of Agriculture shall conduct a pilot program under which the Secretary will give not more than five participating States the option of receiving a grant in an amount equal to the value of the commodities that the participating State would otherwise receive under this section for each of fiscal years 2013 through 2017.

(2)

Use of grant funds

A participating State receiving a grant under this subsection may use the grant funds solely to purchase fresh fruits and vegetables for distribution to schools and service institutions in the State that participate in the food service programs under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

(3)

Selection of participating States

The Secretary shall select participating States from applications submitted by the States.

(4)

Reporting requirements

(A)

School and service institution requirement

Schools and service institutions in a participating State shall keep records of purchases of fresh fruits and vegetables made using the grant funds and report such records to the State.

(B)

State requirement

Each participating State shall submit to the Secretary a report on the success of the pilot program in the State, including information on—

(i)

the amount and value of each type of fresh fruit and vegetable purchased by the State; and

(ii)

the benefit provided by such purchases in conducting the school food service in the State, including meeting school meal requirements.

.

4205.

Encouraging locally and regionally grown and raised food

(a)

Commodity Purchase Streamlining

The Secretary may permit each school food authority with a low annual commodity entitlement value, as determined by the Secretary, to elect to substitute locally and regionally grown and raised food for the authority’s allotment, in whole or in part, of commodity assistance for the school meal programs under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), if—

(1)

the election is requested by the school food authority;

(2)

the Secretary determines that the election will reduce State and Federal administrative costs; and

(3)

the election will provide the school food authority with greater flexibility to purchase locally and regionally grown and raised foods.

(b)

Farm-to-school demonstration programs

(1)

In general

The Secretary may establish farm-to-school demonstration programs under which school food authorities, agricultural producers producing for local and regional markets, and other farm-to-school stakeholders will collaborate with the Agriculture Marketing Service to, on a cost neutral basis, source food for the school meal programs under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) from local farmers and ranchers in lieu of the commodity assistance provided to the school food authorities for the school meal programs.

(2)

Requirements

(A)

In general

Each demonstration program carried out under this subsection shall—

(i)

facilitate and increase the purchase of unprocessed and minimally processed locally and regionally grown and raised agricultural products to be served under the school meal programs;

(ii)

test methods to improve procurement, transportation, and meal preparation processes for the school meal programs;

(iii)

assess whether administrative costs can be saved through increased school authority flexibility to source locally and regionally produced foods for the school meal programs; and

(iv)

undertake rigorous evaluation and share information about results of the demonstration program, including cost savings, with the Secretary, other school food authorities, agricultural producers producing for the local and regional market, and the general public.

(B)

Plans

In order to be selected to carry out a demonstration program under this subsection, a school food authority shall submit to the Secretary a plan at such time and in such manner as the Secretary may require, and containing information with respect to the requirements described in clauses (i) through (iv) of subparagraph (A).

(3)

Technical assistance

The Secretary shall provide technical assistance to demonstration program participants to assist such participants to acquire bids from potential vendors in a timely and cost-effective manner.

(4)

Length

The Secretary shall determine the appropriate length of time for each demonstration program under this subsection.

(5)

Coordination

The Secretary shall coordinate among relevant agencies of the Department of Agriculture and non-governmental organizations with appropriate expertise to facilitate the provision of training and technical assistance necessary to the successful implementation of demonstration programs carried out under this subsection.

(6)

Number

Subject to the availability of funds to carry out this subsection, the Secretary of Agriculture shall implement at least 10 demonstration programs under this subsection.

(7)

Diversity and balance

In carrying out demonstration programs under this subsection, the Secretary shall, to the maximum extent practicable, ensure—

(A)

geographical diversity;

(B)

at least half of the demonstration programs are completed in collaboration with school food authorities with small annual commodity entitlements, as determined by the Secretary;

(C)

at least half of the demonstration programs are completed in rural or tribal communities;

(D)

equitable treatment of school food authorities with a high percentage of students eligible for free or reduced price lunches, as determined by the Secretary; and

(E)

at least one of the demonstration programs is completed on a military installation as defined in section 2687(e)(1) of title 10, United States Code.

V

Credit

A

Farm ownership loans

5001.

Eligibility for farm ownership loans

(a)

In general

Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)) is amended—

(1)

by striking (a) In general.—The and inserting the following:

(a)

In general

(1)

Eligibility requirements

The

;

(2)

in the 1st sentence, by inserting after limited liability companies the following: , and such other legal entities as the Secretary deems appropriate,;

(3)

in the 2nd sentence, by redesignating clauses (1) through (4) as clauses (A) through (D), respectively;

(4)

in each of the 2nd and 3rd sentences, by striking and limited liability companies each place it appears and inserting limited liability companies, and such other legal entities;

(5)

in the 3rd sentence, by striking (3) and (4) and inserting (C) and (D), respectively; and

(6)

by adding at the end the following:

(2)

Special deeming rules

(A)

Eligibility of certain operating-only entities

An entity that is or will become only the operator of a family farm is deemed to meet the owner-operator requirements of paragraph (1) if the individuals that are the owners of the family farm own more than 50 percent (or such other percentage as the Secretary determines is appropriate) of the entity.

(B)

Eligibility of certain embedded entities

An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph (A) of this paragraph that is owned, in whole or in part, by other entities, is deemed to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the ownership interests of each embedded entity of such entity is owned directly or indirectly by the individuals that own the family farm.

.

(b)

Direct farm ownership experience requirement

Section 302(b)(1) of such Act (7 U.S.C. 1922(b)(1)) is amended by inserting or has other acceptable experience for a period of time, as determined by the Secretary, after 3 years.

(c)

Conforming amendments

(1)

Section 304(c)(2) of such Act (7 U.S.C. 1924(c)(2)) by striking paragraphs (1) and (2) of section 302(a) and inserting clauses (A) and (B) of section 302(a)(1).

(2)

Section 310D of such Act (7 U.S.C. 1934) is amended—

(A)

by inserting after partnership the following: , or such other legal entities as the Secretary deems appropriate,; and

(B)

by striking or partners each place it appears and inserting partners, or owners.

5002.

Conservation loan and loan guarantee program

(a)

Eligibility

Section 304(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(c)) is amended by inserting after limited liability companies the following: , or such other legal entities as the Secretary deems appropriate,.

(b)

Limitation on loan guarantee amount

Section 304(e) of such Act (7 U.S.C. 1924(e)) is amended by striking 75 percent and inserting 90 percent.

(c)

Extension of program

Section 304(h) of such Act (7 U.S.C. 1924(h)) is amended by striking 2012 and inserting 2017.

5003.

Down payment loan program

(a)

In general

Section 310E(b)(1)(C) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking $500,000 and inserting $667,000.

(b)

Technical correction

Section 310E(b) of such Act (7 U.S.C. 1935(b)) is amended by striking the 2nd paragraph (2).

5004.

Elimination of mineral rights appraisal requirement

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

B

Operating loans

5101.

Eligibility for farm operating loans

Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(a)) is amended—

(1)

by striking (a) In general.—The and inserting the following:

(a)

In general

(1)

Eligibility requirements

The

;

(2)

in the 1st sentence, by inserting after limited liability companies the following: , and such other legal entities as the Secretary deems appropriate,;

(3)

in the 2nd sentence, by redesignating clauses (1) through (4) as clauses (A) through (D), respectively;

(4)

in each of the 2nd and 3rd sentences, by striking and limited liability companies each place it appears and inserting limited liability companies, and such other legal entities;

(5)

in the 3rd sentence, by striking (3) and (4) and inserting (C) and (D), respectively; and

(6)

by adding at the end the following:

(2)

Special deeming rule

An entity that is an operator described in paragraph (1) that is owned, in whole or in part, by other entities, is deemed to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the ownership interests of each embedded entity of such entity is owned directly or indirectly by the individuals that own the family farm.

.

5102.

Elimination of rural residency requirement for operating loans to youth

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

5103.

Authority to waive personal liability for youth loans due to circumstances beyond borrower control

Section 311(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is amended by adding at the end the following:

(5)

The Secretary may, on a case by case basis, waive the personal liability of a borrower for a loan made under this subsection if any default on the loan was due to circumstances beyond the control of the borrower.

.

5104.

Microloans

(a)

In general

Section 313 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1943) is amended by adding at the end the following:

(c)

Microloans

(1)

In general

Subject to paragraph (2), the Secretary may establish a program to make or guarantee microloans.

(2)

Limitation

The Secretary shall not make or guarantee a microloan under this subsection that exceeds $35,000 or that would cause the total principal indebtedness outstanding at any 1 time for microloans made under this chapter to any 1 borrower to exceed $70,000.

(3)

Applications

To the maximum extent practicable, the Secretary shall limit the administrative burdens and streamline the application and approval process for microloans under this subsection.

(4)

Cooperative lending projects

(A)

In general

Subject to subparagraph (B), the Secretary may contract with community-based and nongovernmental organizations, State entities, or other intermediaries, as the Secretary determines appropriate—

(i)

to make or guarantee a microloan under this subsection; and

(ii)

to provide business, financial, marketing, and credit management services to borrowers.

(B)

Requirements

Before contracting with an entity described in subparagraph (A), the Secretary—

(i)

shall review and approve—

(I)

the loan loss reserve fund for microloans established by the entity; and

(II)

the underwriting standards for microloans of the entity; and

(ii)

establish such other requirements for contracting with the entity as the Secretary determines necessary.

.

(b)

Exceptions for direct loans

Section 311(c)(2) of such Act (7 U.S.C. 1941(c)(2)) is amended to read as follows:

(2)

Exceptions

In this subsection, the term direct operating loan shall not include—

(A)

a loan made to a youth under subsection (b); or

(B)

a microloan made to a young beginning farmer or rancher or a military veteran farmer, as defined by the Secretary.

.

(c)

Section 312(a) of such Act (7 U.S.C. 1942(a)) is amended by inserting (including a microloan, as defined by the Secretary) after A direct loan.

(d)

Section 316(a)(2) of such Act (7 U.S.C. 1946(a)(2)) is amended by inserting a microloan to a beginning farmer or rancher or military veteran farmer or after The interest rate on.

C

Emergency loans

5201.

Eligibility for emergency loans

Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended—

(1)

by striking owner-operators (in the case of loans for a purpose under subtitle A) or operators (in the case of loans for a purpose under subtitle B) each place it appears and inserting (in the case of farm ownership loans in accordance with subtitle A) owner-operators or operators, or (in the case of loans for a purpose under subtitle B) operators;

(2)

by inserting after limited liability companies the 1st place it appears the following: , or such other legal entities as the Secretary deems appropriate; and

(3)

by inserting after limited liability companies the 2nd place it appears the following: , or other legal entities;

(4)

by striking and limited liability companies, and inserting limited liability companies, and such other legal entities;

(5)

by striking ownership and operator and inserting ownership or operator; and

(6)

by adding at the end the following: An entity that is an owner-operator or operator described in this subsection is deemed to meet the direct ownership requirement imposed under this subsection if at least 75 percent of the ownership interests of each embedded entity of such entity is owned directly or indirectly by the individuals that own the family farm..

D

Administrative provisions

5301.

Beginning farmer and rancher individual development accounts pilot program

Section 333B(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 19