< Back to H.R. 2642 (113th Congress, 2013–2015)

Text of the Agriculture Reform, Food, and Jobs Act of 2013

This bill was enacted after being signed by the President on February 7, 2014. The text of the bill below is as of Feb 5, 2014 (Passed Congress/Enrolled Bill).

Source: GPO

I

One Hundred Thirteenth Congress of the United States of America

At the Second Session

H. R. 2642

AN ACT

To provide for the reform and continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2018, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Agricultural Act of 2014.

(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

Part I—Repeals

Sec. 1101. Repeal of direct payments.

Sec. 1102. Repeal of counter-cyclical payments.

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

Part II—Commodity policy

Sec. 1111. Definitions.

Sec. 1112. Base acres.

Sec. 1113. Payment yields.

Sec. 1114. Payment acres.

Sec. 1115. Producer election.

Sec. 1116. Price loss coverage.

Sec. 1117. Agriculture risk coverage.

Sec. 1118. Producer agreements.

Sec. 1119. Transition assistance for producers of upland cotton.

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 policy.

Subtitle D—Dairy

Part I—Margin protection program for dairy producers

Sec. 1401. Definitions.

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

Sec. 1403. Establishment of margin protection program for dairy producers.

Sec. 1404. Participation of dairy operations in margin protection program.

Sec. 1405. Production history of participating dairy operations.

Sec. 1406. Margin protection payments.

Sec. 1407. Premiums for margin protection program.

Sec. 1408. Effect of failure to pay administrative fees or premiums.

Sec. 1409. Duration.

Sec. 1410. Administration and enforcement.

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

Sec. 1421. Repeal of dairy product price support program.

Sec. 1422. Temporary continuation and eventual repeal of milk income loss contract program.

Sec. 1423. Repeal of dairy export incentive program.

Sec. 1424. Extension of dairy forward pricing program.

Sec. 1425. Extension of dairy indemnity program.

Sec. 1426. Extension of dairy promotion and research program.

Sec. 1427. Repeal of Federal Milk Marketing Order Review Commission.

Part III—Dairy product donation program

Sec. 1431. Dairy product donation program.

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. Rulemaking related to significant contribution for active personal management.

Sec. 1605. Adjusted gross income limitation.

Sec. 1606. Geographically disadvantaged farmers and ranchers.

Sec. 1607. Personal liability of producers for deficiencies.

Sec. 1608. Prevention of deceased individuals receiving payments under farm commodity programs.

Sec. 1609. Technical corrections.

Sec. 1610. Appeals.

Sec. 1611. Assignment of payments.

Sec. 1612. Tracking of benefits.

Sec. 1613. Signature authority.

Sec. 1614. Implementation.

Sec. 1615. Research option.

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. Effect on existing contracts.

Subtitle B—Conservation Stewardship Program

Sec. 2101. Conservation stewardship program.

Subtitle C—Environmental Quality Incentives Program

Sec. 2201. Purposes.

Sec. 2202. Definitions.

Sec. 2203. Establishment and administration.

Sec. 2204. Evaluation of applications.

Sec. 2205. Duties of producers.

Sec. 2206. Limitation on payments.

Sec. 2207. Conservation innovation grants and payments.

Sec. 2208. Effect on existing contracts.

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. Emergency watershed protection program.

Sec. 2507. Terminal Lakes.

Sec. 2508. Soil and Water Resources Conservation.

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. Administrative requirements applicable to all conservation programs.

Sec. 2607. Standards for State technical committees.

Sec. 2608. Rulemaking authority.

Sec. 2609. Wetlands mitigation.

Sec. 2610. Lesser prairie-chicken conservation report.

Sec. 2611. Highly erodible land and wetland conservation for crop insurance.

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. Temporary administration of conservation programs.

Sec. 2713. Technical amendments.

Title III—Trade

Subtitle A—Food for Peace Act

Sec. 3001. General authority.

Sec. 3002. Set-aside for support for organizations through which nonemergency 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. Impact on local farmers and economy and report on use of funds.

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. Minimum level of nonemergency food assistance.

Sec. 3013. Micronutrient fortification programs.

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

Sec. 3015. Coordination of foreign assistance programs report.

Subtitle B—Agricultural Trade Act of 1978

Sec. 3101. 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 Act.

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. Local and regional food aid procurement projects.

Sec. 3208. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs.

Title IV—Nutrition

Subtitle A—Supplemental nutrition assistance program

Sec. 4001. Preventing payment of cash to recipients of supplemental nutrition assistance benefits for the return of empty bottles and cans used to contain food purchased with benefits provided under the program.

Sec. 4002. Retail food stores.

Sec. 4003. Enhancing services to elderly and disabled supplemental nutrition assistance program participants.

Sec. 4004. Food distribution program on Indian reservations.

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. Eligibility disqualifications for certain convicted felons.

Sec. 4009. Ending supplemental nutrition assistance program benefits for lottery or gambling winners.

Sec. 4010. Improving security of food assistance.

Sec. 4011. Technology modernization for retail food stores.

Sec. 4012. Use of benefits for purchase of community-supported agriculture share.

Sec. 4013. Improved wage verification using the National Directory of New Hires.

Sec. 4014. Restaurant meals program.

Sec. 4015. Mandating State immigration verification.

Sec. 4016. Data exchange standardization for improved interoperability.

Sec. 4017. Pilot projects to improve Federal-State cooperation in identifying and reducing fraud in the supplemental nutrition assistance program.

Sec. 4018. Prohibiting government-sponsored recruitment activities.

Sec. 4019. Tolerance level for excluding small errors.

Sec. 4020. Quality control standards.

Sec. 4021. Performance bonus payments.

Sec. 4022. Pilot projects to reduce dependency and increase work requirements and work effort under supplemental nutrition assistance program.

Sec. 4023. Cooperation with program research and evaluation.

Sec. 4024. Authorization of appropriations.

Sec. 4025. Review, report, and regulation of cash nutrition assistance program benefits provided in Puerto Rico.

Sec. 4026. Assistance for community food projects.

Sec. 4027. Emergency food assistance.

Sec. 4028. Nutrition education.

Sec. 4029. Retail food store and recipient trafficking.

Sec. 4030. Technical and conforming amendments.

Sec. 4031. Commonwealth of the Northern Mariana Islands pilot program.

Sec. 4032. Annual State report on verification of SNAP participation.

Sec. 4033. Service of traditional foods in public facilities.

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

Sec. 4202. Pilot project for procurement of unprocessed fruits and vegetables.

Sec. 4203. Seniors farmers' market nutrition program.

Sec. 4204. Dietary Guidelines for Americans.

Sec. 4205. Multiagency task force.

Sec. 4206. Healthy Food Financing Initiative.

Sec. 4207. Purchase of Halal and Kosher food for emergency food assistance program.

Sec. 4208. Food insecurity nutrition incentive.

Sec. 4209. Food and agriculture service learning program.

Sec. 4210. Nutrition information and awareness pilot program.

Sec. 4211. Termination of existing agreement.

Sec. 4212. Review of sole-source contracts in Federal nutrition programs.

Sec. 4213. Pulse crop products.

Sec. 4214. Pilot project for canned, frozen, or dried fruits and vegetables.

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. Joint financing arrangements.

Sec. 5004. Elimination of mineral rights appraisal requirement.

Sec. 5005. Down payment loan program.

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. Defaults by youth loan borrowers.

Sec. 5104. Term limits on direct operating loans.

Sec. 5105. Valuation of local or regional crops.

Sec. 5106. Microloans.

Sec. 5107. Term limits on guaranteed operating loans.

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. Farmer loan pilot projects.

Sec. 5303. Definition of qualified beginning farmer or rancher.

Sec. 5304. Loan authorization levels.

Sec. 5305. Loan fund set-asides.

Sec. 5306. Borrower training.

Subtitle E—Miscellaneous

Sec. 5401. State agricultural mediation programs.

Sec. 5402. Loans to purchasers of highly fractionated land.

Sec. 5403. Removal of duplicative appraisals.

Sec. 5404. Compensation disclosure by Farm Credit System institutions.

Title VI—Rural Development

Subtitle A—Consolidated Farm and Rural Development Act

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

Sec. 6002. Elimination of reservation of community facilities grant program funds.

Sec. 6003. Rural water and wastewater circuit rider program.

Sec. 6004. Use of loan guarantees for community facilities.

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

Sec. 6006. Essential community facilities technical assistance and training.

Sec. 6007. Emergency and imminent community water assistance grant program.

Sec. 6008. Water systems for rural and native villages in Alaska.

Sec. 6009. Household water well systems.

Sec. 6010. Rural business and industry loan program.

Sec. 6011. Solid waste management grants.

Sec. 6012. Rural business development grants.

Sec. 6013. Rural cooperative development grants.

Sec. 6014. Locally or regionally produced agricultural food products.

Sec. 6015. Appropriate technology transfer for rural areas program.

Sec. 6016. Rural economic area partnership zones.

Sec. 6017. Intermediary relending program.

Sec. 6018. Rural college coordinated strategy.

Sec. 6019. Rural water and waste disposal infrastructure.

Sec. 6020. Simplified applications.

Sec. 6021. National Rural Development Partnership.

Sec. 6022. Grants for NOAA weather radio transmitters.

Sec. 6023. Rural microentrepreneur assistance program.

Sec. 6024. Health care services.

Sec. 6025. Strategic economic and community development.

Sec. 6026. Delta Regional Authority.

Sec. 6027. Northern Great Plains Regional Authority.

Sec. 6028. Rural business investment program.

Subtitle B—Rural Electrification Act of 1936

Sec. 6101. Fees for certain loan guarantees.

Sec. 6102. Guarantees for bonds and notes issued for electrification or telephone purposes.

Sec. 6103. Expansion of 911 access.

Sec. 6104. Access to broadband telecommunications services in rural areas.

Sec. 6105. Rural Gigabit Network Pilot Program.

Subtitle C—Miscellaneous

Sec. 6201. Distance learning and telemedicine.

Sec. 6202. Agricultural transportation.

Sec. 6203. Value-added agricultural product market development grants.

Sec. 6204. Agriculture innovation center demonstration program.

Sec. 6205. Rural energy savings program.

Sec. 6206. Study of rural transportation issues.

Sec. 6207. Regional economic and infrastructure development.

Sec. 6208. Definition of rural area for purposes of the Housing Act of 1949.

Sec. 6209. Program metrics.

Sec. 6210. Funding of pending rural development loan and grant applications.

Title VII—Research, Extension, and Related Matters

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

Sec. 7101. Option to be included as non-land-grant college of agriculture.

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. Agricultural and food policy research centers.

Sec. 7107. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions.

Sec. 7108. Repeal of human nutrition intervention and health promotion research program.

Sec. 7109. Repeal of pilot research program to combine medical and agricultural research.

Sec. 7110. Nutrition education program.

Sec. 7111. Continuing animal health and disease research programs.

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 Program for Hispanic Agricultural Workers and Youth.

Sec. 7117. Competitive grants for international agricultural science and education programs.

Sec. 7118. Repeal of research equipment grants.

Sec. 7119. University research.

Sec. 7120. Extension service.

Sec. 7121. Auditing, reporting, bookkeeping, and administrative requirements.

Sec. 7122. Supplemental and alternative crops.

Sec. 7123. Capacity building grants for NLGCA institutions.

Sec. 7124. Aquaculture assistance programs.

Sec. 7125. Rangeland research programs.

Sec. 7126. Special authorization for biosecurity planning and response.

Sec. 7127. Distance education and resident instruction grants program for insular area institutions of higher education.

Sec. 7128. Matching funds requirement.

Sec. 7129. Designation of Central State University as 1890 institution.

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. National Agricultural Weather Information System.

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

Sec. 7208. 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. 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. Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica.

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

Sec. 7305. Grants for youth organizations.

Sec. 7306. Specialty crop research initiative.

Sec. 7307. [H7308] Food animal residue avoidance database program.

Sec. 7308. Repeal of national swine research center.

Sec. 7309. Office of pest management policy.

Sec. 7310. Forestry products advanced utilization research.

Sec. 7311. 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. Competitive, Special, and Facilities Research Grant Act.

Sec. 7405. Renewable Resources Extension Act of 1978.

Sec. 7406. National Aquaculture Act of 1980.

Sec. 7407. Repeal of use of remote sensing data.

Sec. 7408. Repeal of reports under Farm Security and Rural Investment Act of 2002.

Sec. 7409. Beginning farmer and rancher development program.

Sec. 7410. National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985.

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

Part I—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 II—Miscellaneous Provisions

Sec. 7511. Enhanced use lease authority pilot program.

Sec. 7512. Grazinglands research laboratory.

Sec. 7513. Budget submission and funding.

Sec. 7514. Repeal of seed distribution.

Sec. 7515. Natural products research program.

Sec. 7516. Sun grant program.

Sec. 7517. Repeal of study and report on food deserts.

Sec. 7518. Repeal of agricultural and rural transportation research and education.

Subtitle F—Miscellaneous provisions

Sec. 7601. Foundation for Food and Agriculture Research.

Sec. 7602. Concessions and agreements with nonprofit organizations for National Arboretum.

Sec. 7603. Agricultural and food law research, legal tools, and information.

Sec. 7604. Cotton Disease Research Report.

Sec. 7605. Miscellaneous technical corrections.

Sec. 7606. Legitimacy of industrial hemp research.

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. State-wide assessment and strategies for forest resources.

Subtitle C—Reauthorization of other forestry-Related laws

Sec. 8201. Rural revitalization technologies.

Sec. 8202. Office of International Forestry.

Sec. 8203. Healthy forests reserve program.

Sec. 8204. Insect and disease infestation.

Sec. 8205. Stewardship end result contracting projects.

Sec. 8206. Good neighbor authority.

Subtitle D—Miscellaneous Provisions

Sec. 8301. Revision of strategic plan for forest inventory and analysis.

Sec. 8302. Forest service participation in ACES program.

Sec. 8303. Extension of stewardship contracts authority regarding use of designation by prescription to all thinning sales under National Forest Management Act of 1976.

Sec. 8304. Reimbursement of fire funds.

Sec. 8305. Forest Service large airtanker and aerial asset firefighting recapitalization pilot program.

Sec. 8306. Land conveyance, Jefferson National Forest in Wise County, Virginia.

Title IX—Energy

Sec. 9001. Definitions.

Sec. 9002. Biobased markets program.

Sec. 9003. Biorefinery assistance.

Sec. 9004. Repowering assistance program.

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. Repeal of forest biomass for energy.

Sec. 9012. Community wood energy program.

Sec. 9013. Repeal of biofuels infrastructure study.

Sec. 9014. Repeal of renewable fertilizer study.

Sec. 9015. Energy efficiency report for USDA facilities.

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

Sec. 10008. Importation of seed.

Sec. 10009. Bulk shipments of apples to Canada.

Sec. 10010. Specialty crop block grants.

Sec. 10011. Department of Agriculture consultation regarding enforcement of certain labor law provisions.

Sec. 10012. Report on honey.

Sec. 10013. Reports to Congress.

Sec. 10014. Stay of regulations.

Sec. 10015. Regulation of sulfuryl fluoride.

Sec. 10016. Local food production and program evaluation.

Sec. 10017. Clarification of use of funds for technical assistance.

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. Crop margin coverage option.

Sec. 11005. Premium amounts for catastrophic risk protection.

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 of policies and Board review and approval.

Sec. 11011. Consultation.

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

Sec. 11013. Test weight for corn.

Sec. 11014. Crop production on native sod.

Sec. 11015. Coverage levels by practice.

Sec. 11016. Beginning farmer and rancher provisions.

Sec. 11017. Stacked income protection plan for producers of upland cotton.

Sec. 11018. Peanut revenue crop insurance.

Sec. 11019. Authority to correct errors.

Sec. 11020. Implementation.

Sec. 11021. Crop insurance fraud.

Sec. 11022. Research and development priorities.

Sec. 11023. Crop insurance for organic crops.

Sec. 11024. Program compliance partnerships.

Sec. 11025. Pilot programs.

Sec. 11026. Index-based weather insurance pilot program.

Sec. 11027. Enhancing producer self-help through farm financial benchmarking.

Sec. 11028. Technical amendments.

Title XII—Miscellaneous

Subtitle A—Livestock

Sec. 12101. Trichinae certification program.

Sec. 12102. Sheep production and marketing grant program.

Sec. 12103. National Aquatic Animal Health Plan.

Sec. 12104. Country of origin labeling.

Sec. 12105. National animal health laboratory network.

Sec. 12106. Food safety inspection.

Sec. 12107. National Poultry Improvement Plan.

Sec. 12108. Sense of Congress regarding feral swine eradication.

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.

Sec. 12203. Socially Disadvantaged Farmers and Ranchers Policy Research Center.

Sec. 12204. Receipt for service or denial of service from certain department of agriculture agencies.

Subtitle C—Other miscellaneous provisions

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

Sec. 12302. Program benefit eligibility status for participants in high plains water study.

Sec. 12303. Office of Tribal Relations.

Sec. 12304. Military Veterans Agricultural Liaison.

Sec. 12305. Noninsured crop assistance program.

Sec. 12306. Acer access and development program.

Sec. 12307. Science Advisory Board.

Sec. 12308. Amendments to Animal Welfare Act.

Sec. 12309. Produce represented as grown in the United States when it is not in fact grown in the United States.

Sec. 12310. Report on water sharing.

Sec. 12311. Scientific and economic analysis of the FDA Food Safety Modernization Act.

Sec. 12312. Payment in lieu of taxes.

Sec. 12313. Silvicultural activities.

Sec. 12314. Pima agriculture cotton trust fund.

Sec. 12315. Agriculture Wool Apparel Manufacturers Trust Fund.

Sec. 12316. Wool research and promotion.

Subtitle D—Oilheat Efficiency, Renewable Fuel Research and Jobs Training

Sec. 12401. Short title.

Sec. 12402. Findings and purposes.

Sec. 12403. Definitions.

Sec. 12404. Membership.

Sec. 12405. Functions.

Sec. 12406. Assessments.

Sec. 12407. Market survey and consumer protection.

Sec. 12408. Lobbying restrictions.

Sec. 12409. Noncompliance.

Sec. 12410. Sunset.

2.

Definition of Secretary of Agriculture

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

I

Commodities

A

Repeals and reforms

I

Repeals

1101.

Repeal of direct payments

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

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 2013 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 2013 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 2013 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 2013 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.

II

Commodity policy

1111.

Definitions

In this subtitle and subtitle B:

(1)

Actual crop revenue

The term actual crop revenue, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1117(b).

(2)

Agriculture risk coverage

The term agriculture risk coverage means coverage provided under section 1117.

(3)

Agriculture risk coverage guarantee

The term agriculture risk coverage guarantee, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1117(c).

(4)

Base acres

(A)

In general

The term base acres, with respect to a covered commodity on a farm, means the number of acres in effect under sections 1001 and 1301 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702, 8751), as adjusted pursuant to sections 1101, 1108, and 1302 of such Act (7 U.S.C. 8711, 8718, 8752), as in effect on September 30, 2013, subject to any reallocation, adjustment, or reduction under section 1112 of this Act.

(B)

Inclusion of generic base acres

The term base acres includes any generic base acres planted to a covered commodity as determined in section 1114(b).

(5)

County coverage

The term county coverage means agriculture risk coverage selected under section 1115(b)(1) to be obtained at the county level.

(6)

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.

(7)

Effective price

The term effective price, with respect to a covered commodity for a crop year, means the price calculated by the Secretary under section 1116(b) to determine whether price loss coverage payments are required to be provided for that crop year.

(8)

Extra long staple cotton

The term extra long staple cotton means cotton that—

(A)

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

(B)

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

(9)

Generic base acres

The term generic base acres means the number of base acres for cotton in effect under section 1001 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702), as adjusted pursuant to section 1101 of such Act (7 U.S.C. 8711), as in effect on September 30, 2013, subject to any adjustment or reduction under section 1112 of this Act.

(10)

Individual coverage

The term individual coverage means agriculture risk coverage selected under section 1115(b)(2) to be obtained at the farm level.

(11)

Medium grain rice

The term medium grain rice includes short grain rice and temperate japonica rice.

(12)

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.

(13)

Payment acres

The term payment acres, with respect to the provision of price loss coverage payments and agriculture risk coverage payments, means the number of acres determined for a farm under section 1114.

(14)

Payment yield

The term payment yield, for a farm for a covered commodity—

(A)

means the yield used to make payments pursuant to section 1104 or 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on September 30, 2013; or

(B)

means the yield established under section 1113 of this Act.

(15)

Price loss coverage

The term price loss coverage means coverage provided under section 1116.

(16)

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.

(17)

Pulse crop

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

(18)

Reference price

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

(A)

For wheat, $5.50 per bushel.

(B)

For corn, $3.70 per bushel.

(C)

For grain sorghum, $3.95 per bushel.

(D)

For barley, $4.95 per bushel.

(E)

For oats, $2.40 per bushel.

(F)

For long grain rice, $14.00 per hundredweight.

(G)

For medium grain rice, $14.00 per hundredweight.

(H)

For soybeans, $8.40 per bushel.

(I)

For other oilseeds, $20.15 per hundredweight.

(J)

For peanuts, $535.00 per ton.

(K)

For dry peas, $11.00 per hundredweight.

(L)

For lentils, $19.97 per hundredweight.

(M)

For small chickpeas, $19.04 per hundredweight.

(N)

For large chickpeas, $21.54 per hundredweight.

(19)

Secretary

The term Secretary means the Secretary of Agriculture.

(20)

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.

(21)

Temperate japonica rice

The term temperate japonica rice means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions, in the Western United States, as determined by the Secretary, for the purpose of—

(A)

the reallocation of base acres under section 1112;

(B)

the establishment of a reference price (as required under section 1116(g)) and an effective price pursuant to section 1116; and

(C)

the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to section 1117.

(22)

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)).

(23)

United States

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

(24)

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.

1112.

Base acres

(a)

Retention or 1-time reallocation of base acres

(1)

Election required

(A)

Notice of election opportunity

As soon as practicable after the date of enactment of this Act, the Secretary shall provide notice to the owners of a farm regarding their opportunity to make an election, in the manner provided in this subsection—

(i)

to retain base acres, including any generic base acres, as provided in paragraph (2); or

(ii)

in lieu of retaining base acres, to reallocate base acres, other than any generic base acres, as provided in paragraph (3).

(B)

Content of notice

The notice under subparagraph (A) shall include the following:

(i)

Information that the opportunity of an owner to make the election is being provided only once.

(ii)

Information regarding the manner in which the owner must make the election and the manner of notifying the Secretary of the election.

(iii)

Information regarding the deadline before which the owner must notify the Secretary of the election to be in effect beginning with the 2014 crop year.

(C)

Effect of Failure To Make Election

If the owner of a farm fails to make the election under this subsection, or fails to timely notify the Secretary of the election as required by subparagraph (B)(iii), the owner shall be deemed to have elected to retain base acres, including generic base acres, as provided in paragraph (2).

(2)

Retention of base acres

(A)

Election to retain

For the purpose of applying this part to a covered commodity, the Secretary shall give an owner of a farm an opportunity to elect to retain all of the base acres for each covered commodity on the farm.

(B)

Treatment of generic base acres

Generic base acres are automatically retained.

(3)

Reallocation of base acres

(A)

Election to reallocate

For the purpose of applying this part to covered commodities, the Secretary shall give an owner of a farm an opportunity to elect to reallocate all of the base acres for covered commodities on the farm, as in effect on September 30, 2013, among those covered commodities planted on the farm at any time during the 2009 through 2012 crop years.

(B)

Reallocation formula

The reallocation of base acres among covered commodities on a farm shall be in proportion to the ratio of—

(i)

the 4-year average of—

(I)

the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2009 through 2012 crop years; and

(II)

any acreage on the farm that the producers were prevented from planting during the 2009 through 2012 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to

(ii)

the 4-year average of—

(I)

the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage, or other similar purposes for such crop years; and

(II)

any acreage on the farm that the producers were prevented from planting during such crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.

(C)

Treatment of generic base acres

Generic base acres are retained and may not be reallocated under this paragraph.

(D)

Inclusion of all 4 years in average

For the purpose of determining a 4-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted.

(E)

Treatment of multiple planting or prevented planting

For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2009 through 2012 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the commodity to be used for that crop year in determining the 4-year average, but may not include both the initial commodity and the subsequent commodity.

(F)

Limitation

The reallocation of base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres (including generic base acres) for the farm in excess of the number of base acres in effect for the farm on September 30, 2013.

(4)

Application of Election to All Covered Commodities

The election made under this subsection, or deemed to be made under paragraph (1)(C), with respect to a farm shall apply to all of the covered commodities on the farm.

(b)

Adjustment of base acres

(1)

In general

Notwithstanding the election made under subsection (a), the Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm and any generic base acres for the farm whenever any of the following circumstances occur:

(A)

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

(B)

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

(C)

The producer has eligible 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 agriculture risk 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.

(c)

Prevention of excess base acres

(1)

Required reduction

Notwithstanding the election made under subsection (a), if the sum of the base acres for a farm, including generic base acres, and 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 generic base acres for the farm so that the sum of the base acres, including generic base acres, and the 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 (b)(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 generic base acres 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.

(d)

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 generic base acres 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, including any generic base acres, on a farm 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).

1113.

Payment yields

(a)

Establishment and purpose

For the purpose of making price loss coverage payments under section 1116, 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).

(c)

Effect of lack of payment yield

(1)

Establishment by secretary

In the case of a covered commodity on a farm for which base acres have been established or that is planted on generic base acres, if no payment yield is otherwise established for the covered commodity on the farm, the Secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph (2).

(2)

Use of similarly situated farms

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. The use of such data in an appeal, by the Secretary or by the producer, shall not be subject to any other provision of law.

(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, on a covered commodity-by-covered-commodity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made.

(2)

Time for election

The election under paragraph (1) shall be made at a time and manner to be in effect beginning with the 2014 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).

1114.

Payment acres

(a)

Determination of payment acres

(1)

General rule

For the purpose of price loss coverage and agriculture risk coverage when county coverage has been selected under section 1115(b)(1), but subject to subsection (e), the payment acres for each covered commodity on a farm shall be equal to 85 percent of the base acres for the covered commodity on the farm.

(2)

Effect of individual coverage

In the case of agriculture risk coverage when individual coverage has been selected under section 1115(b)(2), but subject to subsection (e), the payment acres for a farm shall be equal to 65 percent of the base acres for all of the covered commodities on the farm.

(b)

Treatment of generic base acres

(1)

In general

In the case of generic base acres, price loss coverage payments and agriculture risk coverage payments are made only with respect to generic base acres planted to a covered commodity for the crop year.

(2)

Attribution

With respect to a farm containing generic base acres, for the purpose of applying paragraphs (1)(B) and (2)(B) of subsection (a), generic base acres on the farm are attributed to a covered commodity in the following manner:

(A)

If a single covered commodity is planted and the total acreage planted exceeds the generic base acres on the farm, the generic base acres are attributed to that covered commodity in an amount equal to the total number of generic base acres.

(B)

If multiple covered commodities are planted and the total number of acres planted to all covered commodities on the farm exceeds the generic base acres on the farm, the generic base acres are attributed to each of the covered commodities on the farm on a pro rata basis to reflect the ratio of—

(i)

the acreage planted to a covered commodity on the farm; to

(ii)

the total acreage planted to all covered commodities on the farm.

(C)

If the total number of acres planted to all covered commodities on the farm does not exceed the generic base acres on the farm, the number of acres planted to a covered commodity is attributed to that covered commodity.

(3)

Treated as additional acreage

When generic base acres are planted to a covered commodity or acreage planted to a covered commodity is attributed to generic base acres, the generic base acres are in addition to other base acres on the farm.

(c)

Exclusion

The quantity of payment acres determined under subsection (a) may not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for price loss coverage payments or agriculture risk coverage payments, unless the crop was approved for double cropping in the county, as determined by the Secretary.

(d)

Effect of minimal payment acres

(1)

Prohibition on payments

Notwithstanding any other provision of this title, a producer on a farm may not receive price loss coverage payments or agriculture risk coverage payments if the sum of the base acres on the farm is 10 acres or less, as determined by the Secretary.

(2)

Exceptions

Paragraph (1) does not apply to a producer that 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.

(e)

Effect of planting fruits and vegetables

(1)

Reduction required

In the manner provided in this subsection, payment acres on a farm shall be reduced in any crop year in which fruits, vegetables (other than mung beans and pulse crops), or wild rice have been planted on base acres on a farm.

(2)

Price loss coverage and county coverage

In the case of price loss coverage payments and agricultural risk coverage payments using county coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 15 percent of base acres.

(3)

Individual coverage

In the case of agricultural risk coverage payments using individual coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 35 percent of base acres.

(4)

Reduction exceptions

No reduction to payment acres shall be made under this subsection if—

(A)

cover crops or crops referred to in paragraph (1) are grown solely for conservation purposes and not harvested for use or sale, as determined by the Secretary; or

(B)

in any region in which there is a history of double-cropping covered commodities with crops referred to in paragraph (1) and such crops were so double-cropped on the base acres, as determined by the Secretary.

1115.

Producer election

(a)

Election required

For the 2014 through 2018 crop years, all of the producers on a farm shall make a 1-time, irrevocable election to obtain—

(1)

price loss coverage under section 1116 on a covered commodity-by-covered-commodity basis; or

(2)

agriculture risk coverage under section 1117.

(b)

Coverage options

In the election under subsection (a), the producers on a farm that elect under paragraph (2) of such subsection to obtain agriculture risk coverage under section 1117 shall unanimously select whether to receive agriculture risk coverage payments based on—

(1)

county coverage applicable on a covered commodity-by-covered-commodity basis; or

(2)

individual coverage applicable to all of the covered commodities on the farm.

(c)

Effect of failure to make unanimous election

If all the producers on a farm fail to make a unanimous election under subsection (a) for the 2014 crop year—

(1)

the Secretary shall not make any payments with respect to the farm for the 2014 crop year under section 1116 or 1117; and

(2)

the producers on the farm shall be deemed to have elected price loss coverage under section 1116 for all covered commodities on the farm for the 2015 through 2018 crop years.

(d)

Effect of selection of county coverage

If all the producers on a farm select county coverage for a covered commodity under subsection (b)(1), the Secretary may not make price loss coverage payments under section 1116 to the producers on the farm with respect to that covered commodity.

(e)

Effect of selection of individual coverage

If all the producers on a farm select individual coverage under subsection (b)(2), in addition to the selection and election under this section applying to each producer on the farm, the Secretary shall consider, for purposes of making the calculations required by subsections (b)(2) and (c)(3) of section 1117, the producer’s share of all farms in the same State—

(1)

in which the producer has an interest; and

(2)

for which individual coverage has been selected.

(f)

Prohibition on reconstitution

The Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change an election or selection made under this section.

1116.

Price loss coverage

(a)

Price loss coverage payments

If all of the producers on a farm make the election under subsection (a) of section 1115 to obtain price loss coverage or, subject to subsection (c)(1) of such section, are deemed to have made such election under subsection (c)(2) of such section, the Secretary shall make price loss coverage payments to producers on the farm on a covered commodity-by-covered-commodity basis if the Secretary determines that, for any of the 2014 through 2018 crop years—

(1)

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

(2)

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

(b)

Effective price

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

(1)

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

(2)

the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.

(c)

Payment rate

The payment rate shall be equal to the difference between—

(1)

the reference price for the covered commodity; and

(2)

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

(d)

Payment amount

If price loss coverage payments are required to be provided under this section for any of the 2014 through 2018 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—

(1)

the payment rate for the covered commodity under subsection (c);

(2)

the payment yield for the covered commodity; and

(3)

the payment acres for the covered commodity.

(e)

Time for payments

If the Secretary determines under this section 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.

(f)

Effective price for barley

In determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price.

(g)

Reference price for temperate japonica rice

The Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to 115 percent of the amount established in subparagraphs (F) and (G) of section 1111(18) in order to reflect price premiums.

1117.

Agriculture risk coverage

(a)

Agriculture risk coverage payments

If all of the producers on a farm make the election under section 1115(a) to obtain agriculture risk coverage, the Secretary shall make agriculture risk coverage payments to producers on the farm if the Secretary determines that, for any of the 2014 through 2018 crop years—

(1)

the actual crop revenue determined under subsection (b) for the crop year; is less than

(2)

the agriculture risk coverage guarantee determined under subsection (c) for the crop year.

(b)

Actual crop revenue

(1)

County coverage

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

(A)

the actual average county yield per planted acre for the covered commodity, as determined by the Secretary; and

(B)

the higher of—

(i)

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

(ii)

the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.

(2)

Individual coverage

In the case of individual coverage, the amount of the actual crop revenue for a producer on a farm for a crop year shall be based on the producer’s share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:

(A)

For each covered commodity, the product obtained by multiplying—

(i)

the total production of the covered commodity on such farms, as determined by the Secretary; and

(ii)

the higher of—

(I)

the national average market price received by producers during the 12-month marketing year, as determined by the Secretary; or

(II)

the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.

(B)

The sum of the amounts determined under subparagraph (A) for all covered commodities on such farms.

(C)

The quotient obtained by dividing the amount determined under subparagraph (B) by the total planted acres of all covered commodities on such farms.

(c)

Agriculture risk coverage guarantee

(1)

In general

The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 86 percent of the benchmark revenue.

(2)

Benchmark revenue for county coverage

In the case of county coverage, the benchmark revenue shall be the product obtained by multiplying—

(A)

subject to paragraph (4), 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

(B)

subject to paragraph (5), the national average market price received by producers during the 12-month marketing year for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.

(3)

Benchmark revenue for individual coverage

In the case of individual coverage, the benchmark revenue for a producer on a farm for a crop year shall be based on the producer’s share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:

(A)

For each covered commodity for each of the most recent 5 crop years, the product obtained by multiplying—

(i)

subject to paragraph (4), the yield per planted acre for the covered commodity on such farms, as determined by the Secretary; by

(ii)

subject to paragraph (5), the national average market price received by producers during the 12-month marketing year.

(B)

For each covered commodity, the average of the revenues determined under subparagraph (A) for the most recent 5 crop years, excluding each of the crop years with the highest and lowest revenues.

(C)

For each of the 2014 through 2018 crop years, the sum of the amounts determined under subparagraph (B) for all covered commodities on such farms, but adjusted to reflect the ratio between the total number of acres planted on such farms to a covered commodity and the total acres of all covered commodities planted on such farms.

(4)

Yield conditions

If the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity 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 paragraph (2)(A) or (3)(A)(i) shall be 70 percent of the transitional yield.

(5)

Reference price

If the national average market price received by producers during the 12-month marketing year 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 paragraph (2)(B) or (3)(A)(ii).

(d)

Payment rate

The payment rate for a covered commodity, in the case of county coverage, or a farm, in the case of individual coverage, shall be equal to the lesser of—

(1)

the amount that—

(A)

the agriculture risk coverage guarantee for the crop year applicable under subsection (c); exceeds

(B)

the actual crop revenue for the crop year applicable under subsection (b); or

(2)

10 percent of the benchmark revenue for the crop year applicable under subsection (c).

(e)

Payment amount

If agriculture risk coverage payments are required to be paid for any of the 2014 through 2018 crop years, the amount of the agriculture risk coverage payment for the crop year shall be determined by multiplying—

(1)

the payment rate determined under subsection (d); and

(2)

the payment acres determined under section 1114.

(f)

Time for payments

If the Secretary determines that agriculture risk 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.

(g)

Additional duties of the Secretary

In providing agriculture risk coverage, the Secretary shall—

(1)

to the maximum extent practicable, use all available information and analysis, including data mining, to check for anomalies in the determination of agriculture risk coverage payments;

(2)

to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;

(3)

in the case of individual coverage, assign an average yield for a farm on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary determines that the farm has planted acreage in a quantity that is insufficient to calculate a representative average yield for the farm; and

(4)

in the case of county coverage, assign an actual or 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—

(A)

the Secretary cannot establish the actual or benchmark county yield for each planted acre for a crop year for a covered commodity in the county in accordance with subsection (b)(1) or (c)(2); or

(B)

the yield determined under subsection (b)(1) or (c)(2) is an unrepresentative average yield for the county, as determined by the Secretary.

1118.

Producer agreements

(a)

Compliance with certain requirements

(1)

Requirements

Before the producers on a farm may receive payments under this subtitle with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—

(A)

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

(B)

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

(C)

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

(D)

to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary.

(2)

Compliance

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

(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 payments under this subtitle are provided shall result in the termination of the payments, 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 payment under this subtitle 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)

Production reports

As an additional condition on receiving agriculture risk coverage payments for individual coverage, the Secretary shall require a producer on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on all farms in the same State—

(1)

in which the producer has an interest; and

(2)

for which individual coverage has been selected.

(e)

Effect of inaccurate reports

No penalty with respect to benefits under this subtitle or subtitle B shall be assessed against a producer on a farm for an inaccurate acreage or production report unless the Secretary determines that the producer on the farm knowingly and willfully falsified the acreage or production report.

(f)

Tenants and sharecroppers

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

(g)

Sharing of payments

The Secretary shall provide for the sharing of payments made under this subtitle among the producers on a farm on a fair and equitable basis.

1119.

Transition assistance for producers of upland cotton

(a)

Availability

(1)

Purpose

It is the purpose of this section to provide transition assistance to producers of upland cotton in light of the repeal of section 1103 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713), the inapplicability of sections 1116 and 1117 to upland cotton, and the delayed implementation of the Stacked Income Protection Plan required by section 508B of the Federal Crop Insurance Act (7 U.S.C. 1508b), as added by section 11017 of this Act.

(2)

2014 crop year

For the 2014 crop of upland cotton, the Secretary shall provide transition assistance, pursuant to the terms and conditions of this section, to producers on a farm for which cotton base acres were in existence for the 2013 crop year.

(3)

2015 crop year

For the 2015 crop of upland cotton, the Secretary shall provide transition assistance, pursuant to the terms and conditions of this section, to producers on a farm—

(A)

for which cotton base acres were in existence for the 2013 crop year; and

(B)

that is located in a county in which the Stacked Income Protection Plan required by section 508B of the Federal Crop Insurance Act (7 U.S.C. 1508b) is not available to producers of upland cotton for the 2015 crop year.

(b)

Transition assistance rate

The transition assistance rate shall be equal to the product obtained by multiplying—

(1)

the June 12, 2013, midpoint estimate for the marketing year average price of upland cotton received by producers for the marketing year beginning August 1, 2013, minus the December 10, 2013, midpoint estimate for the marketing year average price of upland cotton received by producers for the marketing year beginning August 1, 2013, as contained in the applicable World Agricultural Supply and Demand Estimates report published by the Department of Agriculture; and

(2)

the national program yield for upland cotton of 597 pounds per acre.

(c)

Calculation of transition assistance amount

The amount of transition assistance to be provided under this section to producers on a farm for a crop year shall be equal to the product obtained by multiplying—

(1)

for the 2014 crop year, 60 percent, and for the 2015 crop year, 36.5 percent, of the cotton base acres referred to in subsection (a) for the farm, subject to adjustment or reduction for conservation measures as provided in subsections (b) and (c) of section 1112;

(2)

the transition assistance rate in effect for the crop year under subsection (b); and

(3)

the payment yield for upland cotton for the farm established for purposes of section 1103(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713(c)(3)), divided by the national program yield for upland cotton of 597 pounds per acre.

(d)

Time for payment

The Secretary may not make transition assistance payments for a crop year under this section before October 1 of the calendar year in which the crop of upland cotton is harvested.

(e)

Payment limitations

Sections 1001 through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308C), as in effect on September 30, 2013, shall apply to the receipt of transition assistance under this section in the same manner as such sections applied to section 1103 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713).

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 2014 through 2018 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 2014 through 2018 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 each of the 2014 through 2018 crop years, 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 $0.45 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, 2019, 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 2014 through 2018 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 section 1201 at a rate that is the lesser of—

(1)

the loan rate established for peanuts under section 1202(a)(20), 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 each of the 2014 through 2018 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 each of the 2014 through 2018 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 each of the 2014 through 2018 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 section 1115 with respect to that loan commodity on the farm;

(II)

in the case of a farm for which agriculture risk coverage is elected under section 1116(a), the payment yield that would otherwise be in effect with respect to that loan commodity on the farm in the absence of such election; or

(III)

in the case of a farm for which no payment yield is otherwise established for that loan commodity on the farm, an appropriate yield established by the Secretary in a manner consistent with section 1113(c).

(2)

Grazing of triticale acreage

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

(A)

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

(B)

the payment quantity determined by multiplying—

(i)

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

(ii)
(I)

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

(II)

in the case of a farm for which agriculture risk coverage is elected under section 1116(a), the payment yield that would otherwise be in effect for wheat on the farm in the absence of such election; or

(III)

in the case of a farm for which no payment yield is otherwise established for wheat on the farm, an appropriate yield established by the Secretary in a manner consistent with section 1113(c).

(c)

Time, manner, and availability of payment

(1)

Time and manner

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

(2)

Availability

(A)

In general

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

(B)

Certain commodities

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

(d)

Prohibition on crop insurance indemnity or noninsured crop assistance

A 2014 through 2018 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 beginning on August 1, 2014, 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 weeks’ 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, 2013, 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, 2019, 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 2014 through 2018 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—

(i)

the payment yield in effect for the calculation of price loss coverage under section 1115, or the payment yield deemed to be in effect or established under subclause (II) or (III) of section 1206(b)(1)(B)(ii), with respect to corn or grain sorghum on a field that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained; or

(ii)

the actual yield of corn or grain sorghum on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained.

(b)

Recourse loans available for seed cotton

For each of the 2014 through 2018 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 policy

(a)

Continuation of current program and loan rates

(1)

Sugarcane

Section 156(a) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)) is amended—

(A)

by inserting and at the end of paragraph (3);

(B)

in paragraph (4), by striking the 2011 crop year; and and inserting each of the 2011 through 2018 crop years.; and

(C)

by striking paragraph (5).

(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 2018.

(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 2018.

(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 2018.

(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 2018.

D

Dairy

I

Margin protection program for dairy producers

1401.

Definitions

In this part and part III:

(1)

Actual dairy production margin

The term actual dairy production 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 operations for all milk sold to plants and dealers in the United States, as determined by the Secretary.

(3)

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.

(4)

Consecutive 2-month period

The term consecutive 2-month period refers to the 2-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.

(5)

Dairy operation

(A)

In general

The term dairy operation means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer—

(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, which are at least commensurate with the individual or entity’s share 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 operation.

(6)

Margin protection program

The term margin protection program means the margin protection program required by section 1403.

(7)

Margin protection program payment

The term margin protection program payment means a payment made to a participating dairy operation under the margin protection program pursuant to section 1406.

(8)

Participating dairy operation

The term participating dairy operation means a dairy operation that registers under section 1404 to participate in the margin protection program.

(9)

Production history

The term production history means the production history determined for a participating dairy operation under subsection (a) or (b) of section 1405 when the participating dairy operation first registers to participate in the margin protection program.

(10)

Secretary

The term Secretary means the Secretary of Agriculture.

(11)

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 production 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 production margin

(1)

In general

For use in the margin protection program, the Secretary shall calculate the actual dairy production margin for each consecutive 2-month period by subtracting—

(A)

the average feed cost for that consecutive 2-month period, determined in accordance with subsection (a); from

(B)

the all-milk price for that consecutive 2-month period.

(2)

Time for calculation

The calculation required by this subsection shall be made as soon as practicable using the full-month price of the applicable reference month.

1403.

Establishment of margin protection program for dairy producers

Not later than September 1, 2014, the Secretary shall establish and administer a margin protection program for dairy producers under which participating dairy operations are paid a margin protection payment when actual dairy production margins are less than the threshold levels for a margin protection payment.

1404.

Participation of dairy operations in margin protection program

(a)

Eligibility

All dairy operations in the United States shall be eligible to participate in the margin protection program to receive margin protection payments.

(b)

Registration process

(1)

In general

The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in the margin protection program.

(2)

Treatment of multiproducer dairy operations

If a participating dairy operation is operated by more than 1 dairy producer, all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of participating in the margin protection program.

(3)

Treatment of producers with multiple dairy operations

If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to participate in the margin protection program.

(c)

Annual administrative fee

(1)

Administrative fee required

Each participating dairy operation shall—

(A)

pay an administrative fee to register to participate in the margin protection program; and

(B)

pay the administrative fee annually through the duration of the margin protection program specified in section 1409.

(2)

Amount of fee

The administrative fee for a participating dairy operation shall be $100.

(3)

Use of Fees

The Secretary shall use administrative fees collected under this subsection to cover administrative costs incurred to carry out the margin protection program.

(d)

Relation to livestock gross margin for dairy program

A dairy operation may participate in the margin protection program or the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both.

1405.

Production history of participating dairy operations

(a)

Production history

(1)

In general

Except as provided in subsection (b), when a dairy operation first registers to participate in the margin protection program, the production history of the dairy operation for the margin protection program is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012, or 2013 calendar years.

(2)

Adjustment

In subsequent years, the Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) to reflect any increase in the national average milk production.

(b)

Election by new dairy operations

In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:

(1)

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

(2)

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

(c)

Required information

A participating dairy operation shall provide all information that the Secretary may require in order to establish the production history of the participating dairy operation for purposes of participating in the margin protection program.

1406.

Margin protection payments

(a)

Coverage level threshold and coverage percentage

For purposes of receiving margin protection payments for a consecutive 2-month period, a participating dairy operation shall annually elect—

(1)

a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00; and

(2)

a percentage of coverage, in 5-percent increments, beginning with 25 percent and not exceeding 90 percent of the production history of the participating dairy operation.

(b)

Payment threshold

A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation.

(c)

Amount of margin protection payment

The margin protection payment for the participating dairy operation shall be determined as follows:

(1)

The Secretary shall calculate the amount by which the coverage level threshold selected by the participating dairy operation exceeds the average actual dairy production margin for the consecutive 2-month period.

(2)

The amount determined under paragraph (1) shall be multiplied by—

(A)

the coverage percentage selected by the participating dairy operation; and

(B)

the production history of the participating dairy operation divided by 6.

1407.

Premiums for margin protection program

(a)

Calculation of premiums

For purposes of participating in the margin protection program, a participating dairy operation shall pay an annual premium equal to the product obtained by multiplying—

(1)

the coverage percentage elected by the participating dairy operation under section 1406(a)(2);

(2)

the production history of the participating dairy operation; and

(3)

the premium per hundredweight of milk imposed by this section for the coverage level selected.

(b)

Premium per hundredweight for first 4 million pounds of production

(1)

In general

For the first 4,000,000 pounds of milk marketings included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).

(2)

Producer premiums

Except as provided in paragraph (3), the following annual premiums apply:

Coverage LevelPremium per Cwt.
$4.00None
$4.50$0.010
$5.00$0.025
$5.50$0.040
$6.00$0.055
$6.50$0.090
$7.00$0.217
$7.50$0.300
$8.00$0.475
(3)

Special rule

The premium per hundredweight specified in the table contained in paragraph (2) for each coverage level (except the $8.00 coverage level) shall be reduced by 25 percent for each of calendar years 2014 and 2015.

(c)

Premium per hundredweight for production in excess of 4 million pounds

(1)

In general

For milk marketings in excess of 4,000,000 pounds included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).

(2)

Producer premiums

The following annual premiums apply:

Coverage LevelPremium per Cwt.
$4.00None
$4.50$0.020
$5.00$0.040
$5.50$0.100
$6.00$0.155
$6.50$0.290
$7.00$0.830
$7.50$1.060
$8.00$1.360
(d)

Time for payment of premium

The Secretary shall provide more than 1 method by which a participating dairy operation may pay the premium required under this section in any manner that maximizes participating dairy operation payment flexibility and program integrity.

(e)

Premium obligations

(1)

Pro-ration of premium for new participants

In the case of a participating dairy operation that first registers to participate in the margin protection program for a calendar year after the start of the calendar year, the participating dairy operation shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage.

(2)

Legal obligation

A participating dairy operation in the margin protection program for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Secretary, for any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary considers appropriate to ensure the integrity of the program.

1408.

Effect of failure to pay administrative fees or premiums

(a)

Loss of benefits

A participating dairy operation that fails to pay the required annual administrative fee under section 1404 or is in arrears on premium payments under section 1407—

(1)

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

(2)

may not receive 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 participation in the margin protection program.

1409.

Duration

The margin protection program shall end on December 31, 2018.

1410.

Administration and enforcement

(a)

In general

The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out the margin protection program.

(b)

Reconstitution

The Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the purpose of the dairy producer receiving margin protection payments.

(c)

Administrative appeals

Using authorities under section 1001(h) of the Food Security Act of 1985 (7 U.S.C. 1308(h)) and subtitle H of the Department of Agriculture Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary shall promulgate regulations to provide for administrative appeals of decisions of the Secretary that are adverse to participants of the margin protection program.

(d)

Inclusion of additional order

Section 143(a)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7253(a)(2)) is amended by adding at the end the following new sentence: Subsection (b) does not apply to the authority of the Secretary under this subsection..

II

Repeal or reauthorization of other dairy-Related provisions

1421.

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.

1422.

Temporary continuation and eventual repeal of milk income loss contract program

(a)

Temporary continuation of payments under milk income loss contract program

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

(1)

in subsection (a), by adding at the end the following new paragraph:

(6)

Termination date

The term termination date means the earlier of the following:

(A)

The date on which the Secretary certifies to Congress that the margin protection program required by section 1403 of the Agricultural Act of 2014 is operational.

(B)

September 1, 2014.

;

(2)

in subsection (c)(3)—

(A)

in subparagraph (B), by inserting after August 31, 2013, the following: and for the period beginning February 1, 2014, and ending on the termination date,; and

(B)

in subparagraph (C), by striking and thereafter, and inserting and ending January 31, 2014,;

(3)

in subsection (d)—

(A)

in paragraph (2), by striking For any month beginning on or after September 1, 2013, and inserting During the period beginning on September 1, 2013, and ending on January 31, 2014,;

(B)

by redesignating paragraph (3) as paragraph (4); and

(C)

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

(3)

Final adjustment authority

During the period beginning on February 1, 2014, and ending on the termination date, if the National Average Dairy Feed Ration Cost for a month during that period is greater than $7.35 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 45 percent of the percentage by which the National Average Dairy Feed Ration Cost exceeds $7.35 per hundredweight.

;

(4)

in subsection (e)(2)(A)—

(A)

in clause (ii), by inserting after August 31, 2013, the following: and for the period beginning February 1, 2014, and ending on the termination date,; and

(B)

in clause (iii), by striking effective beginning September 1, 2013, and inserting for the period beginning September 1, 2013, and ending January 31, 2014,;

(5)

in subsection (g), by striking during the period beginning on the date that is 90 days after the date of enactment of this Act and ending on September 30, 2013 and inserting until the termination date; and

(6)

in subsection (h)(1), by striking September 30, 2013 and inserting the termination date.

(b)

Repeal of milk income loss contract program

(1)

Repeal

Effective on the termination date, section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.

(2)

Termination date defined

In paragraph (1), the term termination date means the earlier of the following:

(A)

The date on which the Secretary certifies to Congress that the margin protection program required by section 1403 is operational.

(B)

September 1, 2014.

1423.

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.

1424.

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 2018; and

(2)

in paragraph (2), by striking 2015 and inserting 2021.

1425.

Extension of dairy indemnity program

Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by striking 2012 and inserting 2018.

1426.

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 2018.

1427.

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

Dairy product donation program

1431.

Dairy product donation program

(a)

Program required; purpose

Not later than 120 days after the date on which the Secretary certifies to Congress that the margin protection program is operational, the Secretary shall establish and administer a dairy product donation program for the purposes of—

(1)

addressing low operating margins experienced by participating dairy operations; and

(2)

providing nutrition assistance to individuals in low-income groups.

(b)

Program trigger

The Secretary shall announce that the dairy product donation program is in effect for a month, and undertake activities under subsection (c) during the month, whenever the actual dairy production margin has been $4.00 or less per hundredweight of milk for each of the immediately preceding 2 months.

(c)

Required program activities

(1)

In general

Whenever the dairy product donation program is in effect under subsection (b), the Secretary shall immediately purchase dairy products, at prevailing market prices, until such time as one of the termination conditions specified in subsection (d)(1) is met.

(2)

Consultation

To determine the types and quantities of dairy products to purchase under the dairy product donation program, the Secretary shall consult with public and private nonprofit organizations organized to feed low-income populations

(d)

Termination of program activities

(1)

Termination thresholds

The Secretary shall cease activities under the dairy product donation program, and shall not reinitiate activities under the program until the condition specified in subsection (b) is again met, whenever any one of the following occurs:

(A)

The Secretary has made purchases under the dairy product donation program for three consecutive months, even if the actual dairy production margin remains $4.00 or less per hundredweight of milk.

(B)

The actual dairy production margin has been greater than $4.00 per hundredweight of milk for the immediately preceding month.

(C)

The actual dairy production margin has been $4.00 or less, but more than $3.00, per hundredweight of milk for the immediately preceding month and during the same month—

(i)

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

(ii)

the price in the United States for non-fat dry milk was more than 5 percent above the world price of skim milk powder.

(D)

The actual dairy production margin has been $3.00 or less per hundredweight of milk for the immediately preceding month and during the same month—

(i)

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

(ii)

the price in the United States for non-fat dry milk was more than 7 percent above the world price of skim milk powder.

(2)

Determinations

For purposes of this subsection, the Secretary shall determine the price in the United States for cheddar cheese and non-fat dry milk and the world price of cheddar cheese and skim milk powder.

(e)

Distribution of purchased dairy products

(1)

In general

The Secretary of Agriculture shall distribute, but not store, the dairy products purchased under the dairy product donation program in a manner that encourages the domestic consumption of such dairy products by diverting them to persons in low-income groups, as determined by the Secretary.

(2)

Use of public or private nonprofit organizations

The Secretary shall utilize the services of public and private nonprofit organizations for the distribution of dairy products purchased under the dairy product donation program. A public or private nonprofit organization that receives dairy products may transfer the products to another public or private nonprofit organization that agrees to use the dairy products to provide, without cost or waste, nutrition assistance to individuals in low-income groups.

(f)

Prohibition on resale of products

A public or private nonprofit organization that receives dairy products under subsection (e) may not sell the products back into commercial markets.

(g)

Use of commodity credit corporation funds

As specified in section 1601(a), the funds, facilities, and authorities of the Commodity Credit Corporation shall be available to the Secretary for the purposes of implementing and administering the dairy product donation program.

(h)

Duration

In addition to the termination conditions specified in subsection (d)(1), the dairy product donation program shall end on December 31, 2018.

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 fiscal year 2012 and each succeeding fiscal year, 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 fiscal year 2012 and each succeeding fiscal year, 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 3 monthly payments using the monthly payment rate determined under subparagraph (B);

(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 4 monthly payments using the monthly payment rate determined under subparagraph (B); or

(cc)

if the county is rated as having a D4 (exceptional drought) intensity in any area of the county for at least 4 weeks during the normal grazing period, in an amount equal to 5 monthly payments using the monthly 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 fiscal year 2012 and each succeeding fiscal year, 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 fiscal year 2012 and each succeeding fiscal year, 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 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 11017 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 such allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of such expenditures during that period to ensure that such expenditures do not exceed 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 2014 through 2018 crops of covered commodities (as defined in section 1111), 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, 2018:

(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 2014 through 2018 crops of covered commodities (as defined in section 1111), 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, 2018:

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

(11)

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

(12)

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

(c)

Suspension of certain quota provisions

The joint resolution entitled A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 2014 through 2018.

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 sections 1116 and 1117 and as marketing loan gains or loan deficiency payments under subtitle B of title I of the Agricultural Act of 2014 (other than for 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 sections 1116 and 1117 and as marketing loan gains or loan deficiency payments under subtitle B of title I of the Agricultural Act of 2014 for peanuts may not exceed $125,000.

.

(b)

Conforming amendments

(1)

Limitation on applicability

Section 1001(d) of the Food Security Act of 1985 (7 U.S.C. 1308(d)) is amended by striking the marketing assistance loan program or the loan deficiency payment program under title I of the Food, Conservation, and Energy Act of 2008 and inserting the forfeiture of a commodity pledged as collateral for a loan made available under subtitle B of title I of the Agricultural Act of 2014.

(2)

Treatment of federal agencies and State and local governments

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

(A)

in paragraph (5)(A), by striking or title XII and inserting , title I of the Agricultural Act of 2014, or title XII; and

(B)

in paragraph (6)(A), by striking or title XII and inserting , title I of the Agricultural Act of 2014, or title XII.

(3)

Foreign persons ineligible

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 Agricultural Act of 2014, after 2008,.

(c)

Application

The amendments made by this section shall apply beginning with the 2014 crop year.

1604.

Rulemaking related to significant contribution for active personal management

(a)

Regulations required

Within 180 days after the date of the enactment of this Act, the Secretary shall promulgate, with an opportunity for notice and comment, regulations—

(1)

to define the term significant contribution of active personal management for purposes of section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1); and

(2)

if the Secretary determines it is appropriate, to establish limits for varying types of farming operations on the number of individuals who may be considered to be actively engaged in farming with respect to the farming operation when a significant contribution of active personal management is the basis used to meet the requirement of being actively engaged in farming under section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) by an individual or entity.

(b)

Considerations

In promulgating the regulations required under subsection (a), the Secretary shall consider—

(1)

the size, nature, and management requirements of each type of farming operation;

(2)

the changing nature of active personal management due to advancements of farming operations; and

(3)

the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation.

(c)

Family Farms

The Secretary shall not apply the regulations promulgated pursuant to subsection (a) to individuals or entities comprised solely of family members (as that term is defined in section 1001(a)(2) of the Food Security Act of 1985 (7 U.S.C. 1308(a)(2))).

(d)

Monitoring

The regulations promulgated pursuant to subsection (a) shall include a plan for monitoring the status of compliance reviews for whether a person or entity is in compliance with the regulations.

(e)

Paperwork reduction

In order to conserve Federal resources and prevent unnecessary paperwork burdens, the Secretary shall ensure that any additional paperwork required as a result of the regulations promulgated pursuant to subsection (a) be limited to those persons who are subject to such regulations.

(f)

Relation to other requirements

Nothing in this section may be construed to authorize the Secretary to alter, directly or indirectly, existing regulations for other requirements in section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1).

(g)

Effective Date

The requirements of any regulation promulgated pursuant to this section shall apply beginning with the 2015 crop year.

1605.

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 $900,000.

(2)

Covered benefits

Paragraph (1) applies with respect to the following:

(A)

A payment or benefit under subtitle A or E of title I of the Agricultural Act of 2014.

(B)

A marketing loan gain or loan deficiency payment under subtitle B of title I of the Agricultural Act of 2014.

(C)

Starting with fiscal year 2015, a payment or benefit under title II of the Agricultural Act of 2014, title II of the Farm Security and Rural Investment Act of 2002, title II of the Food, Conservation, and Energy Act of 2008, or title XII of the Food Security Act of 1985.

(D)

A payment or benefit under section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)).

(E)

A payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

.

(b)

Updating 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 repealed.

(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 Agricultural Act of 2014.

(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 2013 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).

1606.

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 each of fiscal years 2009 through 2012 and inserting fiscal year 2009 and each succeeding fiscal year.

1607.

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 Agricultural Act of 2014.

1608.

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 determine 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.

1609.

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)

by striking (a);

(2)

by striking sections 1101 and 1102 of Public Law 107–171 and inserting subtitle A of title I of the Agricultural Act of 2014; and

(3)

by striking such section 1102 and inserting such subtitle; and

(4)

by striking subsection (b).

1610.

Appeals

(a)

Direction, control, and support

Section 272 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6992) is amended by striking subsection (c) and inserting the following:

(c)

Direction, control, and support

(1)

Direction and control

(A)

In general

Except as provided in paragraph (2), the Director shall be free from the direction and control of any person other than the Secretary or the Deputy Secretary of Agriculture.

(B)

Administrative support

The Division shall not receive administrative support (except on a reimbursable basis) from any agency other than the Office of the Secretary.

(C)

Prohibition on delegation

The Secretary may not delegate to any other officer or employee of the Department, other than the Deputy Secretary of Agriculture or the Director, the authority of the Secretary with respect to the Division.

(2)

Exception

The Assistant Secretary for Administration is authorized to investigate, enforce, and implement the provisions in law, Executive order, or regulations that relate in general to competitive and excepted service positions and employment within the Division, including the position of Director, and such authority may be further delegated to subordinate officials.

.

(b)

Conforming amendment

Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended—

(1)

in the matter preceding paragraph (1) by striking affect— and inserting affect:;

(2)

by striking the authority each place it appears in paragraphs (1) through (7) and inserting The authority;

(3)

by striking the semicolon at the end of each of paragraphs (1) through (5) and inserting a period;

(4)

in paragraph (6)(C), by striking ; or at the end and inserting a period; and

(5)

by adding at the end the following:

(8)

The authority of the Secretary to carry out amendments made to this title by the Agricultural Act of 2014.

.

1611.

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.

1612.

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.

1613.

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.

1614.

Implementation

(a)

Maintenance of base acres and payment yields

The Secretary shall maintain, for each covered commodity and upland cotton, base acres and payment yields on a farm established under sections 1001 and 1301 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702, 8751), as adjusted pursuant to sections 1101, 1102, 1108, and 1302 of such Act (7 U.S.C. 8711, 8712, 8718, 8752), as in effect on September 30, 2013.

(b)

Streamlining

In implementing this title, the Secretary shall—

(1)

reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements, including through the implementation of the Acreage Crop Reporting and Streamlining Initiative that, in part, shall ensure that—

(A)

a producer (or an agent of a producer) may report information, electronically (including geospatial data) or conventionally, to the Department; and

(B)

upon the request of the producer (or agent thereof) the Department of Agriculture electronically shares with the producer (or agent) in real time and without cost to the producer (or agent) the common land unit data, related farm level data, and other information of the producer;

(2)

improve coordination, information sharing, and administrative work with the Farm Service Agency, 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.

(c)

Implementation

(1)

In general

The Secretary shall make available to the Farm Service Agency to carry out this title $100,000,000.

(2)

Additional funds

(A)

Initial determination

If, by September 30, 2014, the Secretary notifies the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that the Farm Service Agency has made substantial progress toward implementing the requirements of subsection (b)(1), the Secretary shall make available to the Farm Service Agency to carry out this title $10,000,000 on October 1, 2014. The amount made available under this subparagraph is in addition to the amount made available under paragraph (1).

(B)

Subsequent determination

If, by September 30, 2015, the Secretary notifies the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that the requirements of subsection (b)(1) have been fully implemented and those Committees provide written concurrence to the Secretary, the Secretary shall make available to the Farm Service Agency to carry out this title $10,000,000 on the date the written concurrence is provided or October 1, 2015, whichever is later. The amount made available under this subparagraph is in addition to the amount made available under paragraph (1) and any amount made available under subparagraph (A).

(3)

Producer education

(A)

In general

Of the funds made available under paragraph (1), the Secretary shall provide $3,000,000 to State extension services for the purpose of educating farmers and ranchers on the options made available under subtitles A, D, and E of this title and under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

(B)

Web-based decision aids

(i)

Use of qualified universities

Of the funds made available under paragraph (1), the Secretary shall use $3,000,000 to support qualified universities (or university-based organizations) that represent a diversity of regions and commodities (including dairy), possess expertise regarding the programs authorized by this Act, have a history in the development of decision aids and producer outreach initiatives regarding farm risk management programs, and are able to meet the deadline established pursuant to clause (ii) to develop web-based decision aids to assist producers in understanding available options described in subparagraph (A) and to train producers to use these decision aids.

(ii)

Deadlines

To the maximum extent practicable, the Secretary shall—

(I)

obligate the funds made available under clause (i) within 30 days after the date of the enactment of this Act; and

(II)

require the products described in clause (i) to be made available to producers on the internet within a reasonable period of time, as determined by the Secretary, after the implementation of the first rule implementing programs required under subtitle A of this title.

(d)

Loan implementation

(1)

In general

In any crop year in which an order is issued pursuant 2 U.S.C. 901(a), the Secretary shall use such sums as necessary of the funds of the Commodity Credit Corporation for such crop year to fully restore the support, loan, or assistance that is otherwise required under subtitles B or C of this title or under the amendments made by subtitles B or C, except with respect to the assistance provided under sections 1207(c) and 1208.

(2)

Repayment

In carrying out this subsection, the Secretary shall ensure that when a producer repays a loan at a rate equal to the loan rate plus interest in accordance with the repayment provisions of subtitles B or C that the repayment amount shall include the portion of the loan amount provided under paragraph (1), except that this paragraph shall not affect or reduce marketing loan gains, loan deficiency payments, or forfeiture benefits provided for under subtitles B or C and as supplemented in accordance with paragraph (1).

1615.

Research option

(a)

In general

Notwithstanding section 4(m) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714b(m)), funds of the Commodity Credit Corporation disbursed pursuant to the memorandum of understanding between the Government of the United States of America and the Government of the Federative Republic of Brazil regarding a fund for technical assistance and capacity building with respect to dispute WT/DS 267 in the World Trade Organization may, upon resolution of the dispute, be used for research consistent with the conditions imposed by subsection (b).

(b)

Conditions

Research authorized by subsection (a) must be conducted in collaboration with research agencies of the United States Department of Agriculture or with a college, university, or research foundation located in the United States. Such research and collaboration shall be subject to the agreement of the parties to the resolved dispute described in subsection (a).

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 2018.

(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 enactment of the Agricultural Act of 2014;

(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 2014, no more than 27,500,000 acres;

(B)

fiscal year 2015, no more than 26,000,000 acres;

(C)

fiscal year 2016, no more than 25,000,000 acres;

(D)

fiscal year 2017, no more than 24,000,000 acres; and

(E)

fiscal year 2018, no more than 24,000,000 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 2014 through 2018 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 2018; 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 amendments

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

(1)

by striking the heading and inserting the following: Farmable wetland program; and

(2)

in subsection (f)(2), by striking section 1234(c)(2)(B) and inserting section 1234(d)(2)(A)(ii).

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 if those activities or uses are consistent with a plan approved by the Secretary and include—

(1)

harvesting, grazing, or other commercial use of the forage in response to a drought, flooding, or other emergency, without any reduction in the rental rate;

(2)

consistent with the conservation of soil, water quality, and wildlife habitat (including habitat during primary 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, managed harvesting and other commercial use (including the managed harvesting of biomass), except that in permitting those activities, the Secretary, in coordination with the State technical committee—

(A)

shall develop appropriate vegetation management requirements; and

(B)

shall identify periods during which the activities may be conducted, such that the frequency is at least every 5 but not more than once every 3 years;

(3)

subject to appropriate restrictions during the nesting season for birds in the local area that are economically significant, in significant decline, or conserved in accordance with Federal or State law, as determined by the Secretary in consultation with the State technical committee, 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)

prescribed grazing for the control of invasive species, which may be conducted annually;

(B)

routine grazing, except that in permitting such routine 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 2 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 threatened or endangered wildlife and wildlife habitat; and

(iii)

the purposes of the conservation reserve program under this subchapter;

(4)

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; and

(5)

grazing by livestock of a beginning farmer or rancher without any reduction in the rental rate, if the grazing is—

(A)

consistent with the conservation of soil, water quality, and wildlife habitat;

(B)

subject to appropriate restrictions during the nesting season for birds in the local area that are economically significant, in significant decline, or conserved in accordance with Federal or State law, as determined by the Secretary in consultation with the State technical committee; and

(C)

described in subparagraph (A) or (B) of paragraph (3).

(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 birds in the local area that are economically significant, in significant decline, or conserved in accordance with Federal or State law, as determined by the Secretary in consultation with the State technical committee.

(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 for economic use 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.

(4)

Payment reduction

In the case of an activity carried out under paragraph (1), the Secretary shall reduce the payment otherwise payable under the contract by an amount commensurate with the economic value of the activity.

.

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 to read as follows:

(A)

Applicability

This paragraph applies to land devoted to the production of hardwood trees, windbreaks, shelterbelts, or wildlife corridors under a contract entered into under this subchapter after November 28, 1990.

.

(b)

Incentives for thinning

Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is amended—

(1)

in subsection (b)—

(A)

in the heading, by striking Federal percentage of; and

(B)

in paragraph (3)(B)—

(i)

in clause (i), by striking or thinning; and

(ii)

by amending clause (ii) to read as follows:

(ii)

Duration

The Secretary shall make payments as described in clause (i) for a period of not less than 2 years, but not more than 4 years, beginning on the date of the planting of the trees or shrubs.

;

(2)

by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and

(3)

by inserting after subsection (b) the following:

(c)

Incentive payments

(1)

In general

The Secretary may make incentive payments to an owner or operator of eligible land in an amount sufficient to encourage proper thinning and other practices to improve the condition of resources, promote forest management, or enhance wildlife habitat on the land.

(2)

Limitation

A payment described in paragraph (1) may not exceed 150 percent of the total cost of thinning and other practices conducted by the owner or operator.

.

(c)

Annual rental payments

Section 1234(d) of the Food Security Act of 1985 (as redesignated by subsection (b)(2)) is amended—

(1)

in paragraph (1), by inserting or other eligible lands after highly erodible cropland both places it appears;

(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.

; and

(3)

in paragraph (5)—

(A)

in subparagraph (A), by striking conduct an annual survey and inserting , not less frequently than once every other year, conduct a survey;

(B)

in subparagraph (B), by striking annual; and

(C)

by adding at the end the following:

(C)

Use

The Secretary may use the estimates derived from the survey conducted under subparagraph (A) relating to dryland cash rental rates as a factor in determining rental rates under this section in a manner determined appropriate by the Secretary.

.

(d)

Payment schedule

Subsection (e) of section 1234 of the Food Security Act of 1985 (as redesignated by subsection (b)(2)) is amended to read as follows:

(e)

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.

.

(e)

Payment limitation

Section 1234(g) of the Food Security Act of 1985 (as redesignated by subsection (b)(2)) 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 2015, 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.

(J)

Land enrolled under the conservation reserve enhancement program.

; 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 or rancher or 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 or rancher, a veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))), or a;

(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(d)(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.

Effect on existing contracts

(a)

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 the date of enactment of the Agricultural Act of 2014, or any payments required to be made in connection with the contract.

(b)

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 the date of enactment of the Agricultural Act of 2014, 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 land in 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 2014 through 2018, the Secretary shall carry out a conservation stewardship program to encourage producers to address priority resource concerns and improve and conserve the quality and condition of natural resources 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 reserve 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 the date of enactment of the Agricultural Act of 2014, 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 such 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); 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 2 additional priority resource concerns on the agricultural operation; or

(B)

to exceed the stewardship threshold of 2 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, 1 of which shall occur in the first quarter of each fiscal year;

(2)

identify not less than 5 priority resource concerns in a particular watershed or other appropriate region or area within a State; and

(3)

establish a science-based stewardship threshold for each priority resource concern identified under paragraph (2).

(b)

Allocation to States

The Secretary shall allocate 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 the date of enactment of the Agricultural Act of 2014, and ending on September 30, 2022, the Secretary shall, to the maximum extent practicable—

(1)

enroll in the program an additional 10,000,000 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 annual payment shall be determined by the Secretary and based, to the maximum extent practicable, on the following factors:

(A)

Costs incurred by the producer associated with planning, design, materials, installation, labor, management, maintenance, or training.

(B)

Income forgone by the producer.

(C)

Expected conservation benefits.

(D)

The extent to which priority resource concerns will be addressed through the installation and adoption of conservation activities on the agricultural operation.

(E)

The level of stewardship in place at the time of application and maintained over the term of the contract.

(F)

The degree to which the conservation activities will be integrated across the entire agricultural operation for all applicable priority resource concerns over the term of the contract.

(G)

Such other factors as are determined appropriate by the Secretary.

(3)

Exclusions

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

(A)

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

(B)

conservation activities for which there is no cost incurred or income forgone to the producer.

(4)

Delivery of payments

In making payments under this subsection, the Secretary shall, to the extent practicable—

(A)

prorate conservation performance over the term of the contract so as to accommodate, to the extent practicable, producers earning equal annual payments in each fiscal year; and

(B)

make such payments as soon as practicable after October 1 of each fiscal year for activities carried out in the previous fiscal year.

(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 2014 through 2018, 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)

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 the date of enactment of the Agricultural Act of 2014, 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 2013.

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.

Definitions

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

(1)

by striking paragraph (2) and redesignating paragraphs (3) through (6) as paragraphs (2) through (5), respectively; and

(2)

in paragraph (2) (as so redesignated), by inserting established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) after national organic program.

2203.

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 2018;

(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)—

(A)

in paragraph (3), by striking subparagraphs (A) through (G) and inserting the following:

(A)

soil health;

(B)

water quality and quantity improvement;

(C)

nutrient management;

(D)

pest management;

(E)

air quality improvement;

(F)

wildlife habitat development, including pollinator habitat; or

(G)

invasive species management.

; and

(B)

in paragraph (4)—

(i)

in subparagraph (A), in the matter preceding clause (i), by inserting , 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))), before or a beginning farmer or rancher; and

(ii)

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 timeframe, 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 2014 through 2018, 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 2014 through 2018, at least 5 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat under subsection (g).

; and

(5)

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

(g)

Wildlife habitat incentive program

(1)

In general

The Secretary shall provide payments under the environmental quality incentives program for conservation practices that support the restoration, development, protection, and improvement of wildlife habitat on eligible land, including—

(A)

upland wildlife habitat;

(B)

wetland wildlife habitat;

(C)

habitat for threatened and endangered species;

(D)

fish habitat;

(E)

habitat on pivot corners and other irregular areas of a field; and

(F)

other types of wildlife habitat, as determined by the Secretary.

(2)

State technical committee

In determining the practices eligible for payment under paragraph (1) and targeted for funding under subsection (f), the Secretary shall consult with the relevant State technical committee not less often than once each year.

.

2204.

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.

2205.

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.

2206.

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 2014 through 2018, regardless of the number of contracts entered into under this chapter by the person or legal entity.

.

2207.

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.

;

(2)

in subsection (b)(2)—

(A)

by striking $37,500,000 and inserting $25,000,000; and

(B)

by striking 2012 and inserting 2018; and

(3)

by adding at the end the following new subsection:

(c)

Reporting

Not later than December 31, 2014, 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.

.

2208.

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 the date of enactment of the Agricultural Act of 2014, 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 the day before the date of enactment of the Agricultural Act of 2014;

(2)

restore, protect, and enhance wetlands on eligible land;

(3)

protect the agricultural use and future viability, 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)
(I)

that has prime, unique, or other productive soil;

(II)

that contains historical or archaeological resources;

(III)

the enrollment of which would protect grazing uses and related conservation values by restoring and conserving land; or

(IV)

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 predominant use;

(IV)

located in an area that has been historically dominated by grassland, forbs, or shrubs and could provide habitat for animal or plant populations of significant ecological value;

(V)

pastureland; or

(VI)

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 reserve 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; or

(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 reserve easement would significantly add to the functional value of the easement; or

(C)

in the case of either an agricultural land easement or a wetland reserve 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 an easement under the program.

(4)

Program

The term program means the agricultural conservation easement program established by this subtitle.

(5)

Wetland reserve easement

The term wetland reserve 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 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, as determined by the Secretary using—

(i)

the Uniform Standards of Professional Appraisal Practice;

(ii)

an areawide 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 under clause (i) 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

(i)

Grasslands

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.

(ii)

Cash contribution

For purposes of subparagraph (B)(ii), the Secretary may waive any portion of the eligible entity cash contribution requirement for projects of special significance, subject to an increase in the private landowner donation that is equal to the amount of the waiver, if the donation is voluntary and the property is in active agricultural production.

(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 the program;

(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 a 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 reserve easements

(a)

Availability of assistance

The Secretary shall provide assistance to owners of eligible land to restore, protect, and enhance wetlands through—

(1)

wetland reserve easements and related wetland reserve 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.

(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 this section; and

(ii)

farmed wetlands or converted wetlands where the conversion was not commenced prior to December 23, 1985.

(B)

Changes in ownership

No wetland reserve 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 for offers from landowners under this section 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 reserve easement, including the potential environmental benefits if the land was removed from agricultural production;

(ii)

the cost effectiveness of each wetland reserve 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 reserve 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 give priority to acquiring wetland reserve easements based on the value of the wetland reserve 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 reserve 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 reserve 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 reserve 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 wetland 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 a term or condition of a wetland reserve easement, the wetland reserve 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, with interest on the payments as determined appropriate by the Secretary.

(C)

Compatible uses

Land subject to a wetland reserve 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 reserve 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 reserve 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 reserve 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 reserve 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 areawide 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)

Other

Compensation for a 30-year contract or 30-year wetland reserve 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 reserve easement.

(B)

Form of payment

Compensation for a wetland reserve 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 reserve easements valued at $500,000 or less, the Secretary may provide payments in not more than 10 annual payments.

(ii)

Easements valued at more than $500,000

For wetland reserve easements valued at more than $500,000, the Secretary may provide 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 reserve easement plan developed for the eligible land under subsection (f).

(2)

Payments

The Secretary shall—

(A)

in the case of a permanent wetland reserve 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 contract or 30-year wetland reserve 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 a wetland reserve easement.

(2)

Contracts or agreements

The Secretary may enter into 1 or more contracts with private entities or agreements with a State, nongovernmental organization, or Indian tribe to carry out necessary restoration, enhancement, or maintenance of a wetland reserve easement if the Secretary determines that the contract or agreement will advance the purposes of the program.

(e)

Wetland reserve 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 reserve enhancement option that the Secretary determines would advance the purposes of program.

(f)

Administration

(1)

Wetland reserve easement plan

The Secretary shall develop a wetland reserve easement plan for any eligible land subject to a wetland reserve easement, which shall include practices and activities necessary to restore, protect, enhance, and maintain the enrolled land.

(2)

Delegation of easement administration

(A)

In general

The Secretary may delegate any of the management, monitoring, and enforcement responsibilities of the Secretary under this section to other Federal or State agencies that have the appropriate authority, expertise, and resources necessary to carry out such delegated responsibilities, or to conservation organizations if the Secretary determines the organization has similar expertise and resources.

(B)

Limitation

The Secretary shall not delegate any of the monitoring or enforcement responsibilities under this section to conservation organizations.

(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.

(g)

Application

The relevant provisions of this section shall also apply to a 30-year contract.

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 reserve easement, is a wetland or related area with the highest wetland 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 other programs

(1)

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.

(2)

Other

In accordance with the provisions of subtitle H of title II of the Agricultural Act of 2014, land enrolled in the wetlands reserve program, grassland reserve program, or farmland protection program on the day before the date of enactment of the Agricultural Act of 2014 shall be considered enrolled in the program.

(e)

Compliance with certain requirements

The Secretary may not provide assistance under this subtitle to an eligible entity or owner of eligible land unless the eligible entity or owner agrees, during the crop year for which the assistance is provided—

(1)

to comply with applicable conservation requirements under subtitle B; and

(2)

to comply with applicable wetland protection requirements under subtitle C.

.

(b)

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 paragraph:

(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 reserve 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 reserve easement under section 1265C;

(B)

by striking paragraph (4) and inserting the following:

(4)

Exclusions

(A)

Shelterbelts and windbreaks

The limitations established under paragraph (1) shall not apply to cropland that is subject to an easement under subchapter B of chapter 1 of subtitle D that is used for the establishment of shelterbelts and windbreaks.

(B)

Wet and saturated soils

For the purposes of enrolling land in a wetland reserve easement under section 1265C, the limitations established under paragraph (1) shall not apply to cropland designated by the Secretary with subclass w in the land capability classes IV through VIII because of severe use limitations due to soil saturation or inundation.

; and

(C)

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 the day before the date of enactment of the Agricultural Act of 2014, and that remains enrolled when the calculation is made after that date under paragraph (1).

.

E

Regional Conservation Partnership Program

2401.

Regional conservation partnership program

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 the day before the date of enactment of the Agricultural Act of 2014:

(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 installation and maintenance of eligible activities that affect multiple agricultural or nonindustrial private forest operations on a local, regional, State, or multistate 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.

(D)

The healthy forests reserve program established under section 501 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571).

(2)

Eligible activity

The term eligible activity means a conservation activity for any of the following:

(A)

Water quality restoration or enhancement projects, including nutrient management and sediment reduction.

(B)

Water 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.

(C)

Drought mitigation.

(D)

Flood prevention.

(E)

Water retention.

(F)

Air quality improvement.

(G)

Habitat conservation, restoration, and enhancement.

(H)

Erosion control and sediment reduction.

(I)

Forest restoration.

(J)

Other related activities that the Secretary determines will help achieve conservation benefits.

(3)

Eligible land

(A)

In general

The term eligible land means—

(i)

land on which agricultural commodities, livestock, or forest-related products are produced; and

(ii)

lands associated with the lands described in clause (i).

(B)

Inclusions

The term eligible land includes—

(i)

cropland;

(ii)

grassland;

(iii)

rangeland;

(iv)

pastureland;

(v)

nonindustrial private forest land; and

(vi)

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)

A municipal water or wastewater treatment entity.

(G)

An institution of higher education.

(H)

An organization or entity 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, multistate, or other geographic area covered; and

(iv)

the planning, outreach, implementation, and assessment to be conducted;

(B)

conduct outreach and education 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 toward 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)

each eligible partner 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 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; 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 an eligible partner.

(b)

Terms and conditions

(1)

Consistency with program rules

(A)

In general

Except as provided in subparagraph (B) and 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 partnership agreement, as described in the application under section 1271B(d)(3)(C).

(B)

Adjustments

(i)

In general

The Secretary may adjust the rules of a covered program, including—

(I)

operational guidance and requirements for a covered program at the discretion of the Secretary so as to provide a simplified application and evaluation process; and

(II)

nonstatutory, regulatory rules or provisions to better reflect unique local circumstances and purposes if the Secretary determines such adjustments are necessary to achieve the purposes of the covered program.

(ii)

Limitation

The Secretary shall not adjust the application of statutory requirements for a covered program, including requirements governing appeals, payment limits, and conservation compliance.

(iii)

Irrigation

In States where irrigation has not been used significantly for agricultural purposes, as determined by the Secretary, the Secretary shall not limit eligibility under section 1271B or this section on the basis of prior irrigation history.

(2)

Alternative funding arrangements

(A)

In general

For the purposes of providing assistance for land described in subsection (a) and section 1271F, the Secretary may enter into alternative funding arrangements with a multistate water resource agency or authority if—

(i)

the Secretary determines that the goals and objectives of the program will be met by the alternative funding arrangements;

(ii)

the agency or authority certifies that the limitations established under this section on agreements with individual producers will not be exceeded; and

(iii)

all participating producers meet applicable payment eligibility provisions.

(B)

Conditions

As a condition of receiving funding under subparagraph (A), the multistate water resource agency or authority shall agree—

(i)

to submit an annual independent audit to the Secretary that describes the use of funds under this paragraph;

(ii)

to provide any data necessary for the Secretary to issue a report on the use of funds under this paragraph; and

(iii)

not to use any of the funds provided pursuant to subparagraph (A) for administration or to provide for administrative costs through contracts with another entity.

(C)

Limitation

The Secretary may enter into not more than 20 alternative funding arrangements under this paragraph.

(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 certain producers

The Secretary may provide payments for a period of 5 years—

(A)

to producers participating in a project that addresses water quantity concerns and in an amount sufficient to encourage conversion from irrigated to dryland farming; and

(B)

to producers participating in a project that addresses water quality concerns and in an amount sufficient to encourage adoption of conservation practices and systems that improve nutrient management.

(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 2014 through 2018 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 7 percent of the funds and acres made available for a covered program for each of fiscal years 2014 through 2018 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 committed 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 subsection (a) and reserved for the program under subsection (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)

40 percent of the funds and acres to projects based on a national competitive process to be established by the Secretary; and

(3)

35 percent of the funds and acres to projects for critical conservation areas designated under section 1271F.

(e)

Limitation on administrative expenses

None of the funds made available or reserved for 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, 2014, 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;

(3)

total funding committed to projects, including from Federal and non-Federal resources; and

(4)

a description of how the funds under section 1271C(b)(2) are being administered, including—

(A)

any oversight mechanisms that the Secretary has implemented;

(B)

the process through which the Secretary is resolving appeals by program participants; and

(C)

the means by which the Secretary is tracking adherence to any applicable provisions for payment eligibility.

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 impact on the economic scope of the agricultural operations within the area.

(2)

Expiration

Critical conservation area designations under this section shall expire after 5 years, subject to redesignation, except that the Secretary may withdraw designation from an area if the Secretary finds the area no longer meets the conditions described in paragraph (1).

(3)

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.

.

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 “2018”.

2502.

Grassroots source water protection program

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) 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 2018.

(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)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amended—

(1)

in the heading, by striking Fiscal years 2009 through 2012 and inserting Mandatory funding; and

(2)

by inserting and $40,000,000 for the period of fiscal years 2014 through 2018 before the period at the end.

(b)

Report on program effectiveness

Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report evaluating the effectiveness of the voluntary public access and habitat incentive 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 State;

(3)

evaluating the extent of improved access on eligible land, 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

Subsection (c)(2) of section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) is amended to read as follows:

(2)

Exclusion

Funds made available to carry out the conservation reserve program may not be used to carry out the ACES program.

.

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 2014, 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 2018.

2506.

Emergency watershed protection program

Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) is amended—

(1)

by striking Sec. 403. The Secretary and inserting the following:

403.

Emergency measures

(a)

In general

The Secretary

; and

(2)

by adding at the end the following:

(b)

Floodplain easements

(1)

Modification and termination

The Secretary may modify or terminate a floodplain easement administered by the Secretary under this section if—

(A)

the current owner agrees to the modification or termination; and

(B)

the Secretary determines that the modification or termination—

(i)

will address a compelling public need for which there is no practicable alternative; and

(ii)

is in the public interest.

(2)

Consideration

(A)

Termination

As consideration for termination of an easement and associated agreements under paragraph (1), the Secretary shall enter into compensatory arrangements as determined to be appropriate by the Secretary.

(B)

Modification

In the case of a modification under paragraph (1)—

(i)

as a condition of the modification, the current owner shall enter into a compensatory arrangement (as determined to be appropriate by the Secretary) to incur the costs of modification; and

(ii)

the Secretary shall ensure that—

(I)

the modification will not adversely affect the floodplain functions and values for which the easement was acquired;

(II)

any adverse impacts will be mitigated by enrollment and restoration of other land that provides greater floodplain functions and values at no additional cost to the Federal Government; and

(III)

the modification will result in equal or greater environmental and economic values to the United States.

.

2507.

Terminal Lakes

Section 2507 of the Farm Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–171) is amended to read as follows:

2507.

Terminal lakes assistance

(a)

Definitions

In this section:

(1)

Eligible land

The term eligible land means privately owned agricultural land (including land in which a State has a property interest as a result of State water law)—

(A)

that a landowner voluntarily agrees to sell to a State; and

(B)

which—

(i)
(I)

is ineligible for enrollment as a wetland reserve easement established under the agricultural conservation easement program under subtitle H of the Food Security Act of 1985;

(II)

is flooded to—

(aa)

an average depth of at least 6.5 feet; or

(bb)

a level below which the State determines the management of the water level is beyond the control of the State or landowner; or

(III)

is inaccessible for agricultural use due to the flooding of adjoining property (such as islands of agricultural land created by flooding);

(ii)

is located within a watershed with water rights available for lease or purchase; and

(iii)

has been used during at least 5 of the immediately preceding 30 years—

(I)

to produce crops or hay; or

(II)

as livestock pasture or grazing.

(2)

Program

The term program means the voluntary land purchase program established under this section.

(3)

Terminal lake

The term terminal lake means a lake and its associated riparian and watershed resources that is—

(A)

considered flooded because there is no natural outlet for water accumulating in the lake or the associated riparian area such that the watershed and surrounding land is consistently flooded; or

(B)

considered terminal because it has no natural outlet and is at risk due to a history of consistent Federal assistance to address critical resource conditions, including insufficient water available to meet the needs of the lake, general uses, and water rights.

(b)

Assistance

The Secretary shall—

(1)

provide grants under subsection (c) for the purchase of eligible land impacted by a terminal lake described in subsection (a)(3)(A); and

(2)

provide funds to the Secretary of the Interior pursuant to subsection (e)(2) with assistance in accordance with subsection (d) for terminal lakes described in subsection (a)(3)(B).

(c)

Land purchase grants

(1)

In general

Using funds provided under subsection (e)(1), the Secretary shall make available land purchase grants to States for the purchase of eligible land in accordance with this subsection.

(2)

Implementation

(A)

Amount

A land purchase grant shall be in an amount not to exceed the lesser of—

(i)

50 percent of the total purchase price per acre of the eligible land; or

(ii)
(I)

in the case of eligible land that was used to produce crops or hay, $400 per acre; and

(II)

in the case of eligible land that was pasture or grazing land, $200 per acre.

(B)

Determination of purchase price

A State purchasing eligible land with a land purchase grant shall ensure, to the maximum extent practicable, that the purchase price of such land reflects the value, if any, of other encumbrances on the eligible land to be purchased, including easements and mineral rights.

(C)

Cost-share required

To be eligible to receive a land purchase grant, a State shall provide matching non-Federal funds in an amount equal to 50 percent of the amount described in subparagraph (A), including additional non-Federal funds.

(D)

Conditions

To receive a land purchase grant, a State shall agree—

(i)

to ensure that any eligible land purchased is—

(I)

conveyed in fee simple to the State; and

(II)

free from mortgages or other liens at the time title is transferred;

(ii)

to maintain ownership of the eligible land in perpetuity;

(iii)

to pay (from funds other than grant dollars awarded) any costs associated with the purchase of eligible land under this section, including surveys and legal fees; and

(iv)

to keep eligible land in a conserving use, as defined by the Secretary.

(E)

Loss of Federal benefits

Eligible land purchased with a grant under this section shall lose eligibility for any benefits under other Federal programs, including—

(i)

benefits under title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);

(ii)

benefits under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and

(iii)

covered benefits described in section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a).

(F)

Prohibition

Any Federal rights or benefits associated with eligible land prior to purchase by a State may not be transferred to any other land or person in anticipation of or as a result of such purchase.

(d)

Water assistance

(1)

In general

The Secretary of the Interior, acting through the Commissioner of Reclamation, may use the funds described in subsection (e)(2) to administer and provide financial assistance to carry out this subsection to provide water and assistance to a terminal lake described in subsection (a)(3)(B) through willing sellers or willing participants only—

(A)

to lease water;

(B)

to purchase land, water appurtenant to the land, and related interests; and

(C)

to carry out research, support, and conservation activities for associated fish, wildlife, plant, and habitat resources.

(2)

Exclusions

The Secretary of the Interior may not use this subsection to deliver assistance to the Great Salt Lake in Utah, lakes that are considered dry lakes, or other lakes that do not meet the purposes of this section, as determined by the Secretary of the Interior.

(3)

Transitional provision

(A)

In general

Notwithstanding any other provision of this section, any funds made available before the date of enactment of the Agricultural Act of 2014 under a provision of law described in subparagraph (B) shall remain available using the provisions of law (including regulations) in effect on the day before the date of enactment of that Act.

(B)

Described laws

The provisions of law described in this section are—

(i)

section 2507 of the Farm Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–171) (as in effect on the day before the date of enactment of the Agricultural Act of 2014);

(ii)

section 207 of the Energy and Water Development Appropriations Act, 2003 (Public Law 108–7; 117 Stat. 146);

(iii)

section 208 of the Energy and Water Development Appropriations Act, 2006 (Public Law 109–103; 119 Stat. 2268, 123 Stat. 2856); and

(iv)

section 208 of the Energy and Water Development and Related Agencies Appropriations Act, 2010 (Public Law 111–85; 123 Stat. 2858, 123 Stat. 2967, 125 Stat. 867).

(e)

Funding

(1)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out subsection (c) $25,000,000, to remain available until expended.

(2)

Commodity credit corporation

As soon as practicable after the date of enactment of the Agricultural Act of 2014, the Secretary shall transfer to the Bureau of Reclamation—Water and Related Resources account $150,000,000 from the funds of the Commodity Credit Corporation to carry out subsection (d), to remain available until expended.

.

2508.

Soil and Water Resources Conservation

(a)

Congressional policy and declaration of purpose

Section 4 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2003) is amended—

(1)

in subsection (b), by inserting and tribal after State each place it appears; and

(2)

in subsection (c)(2), by inserting , tribal, after State.

(b)

Continuing appraisal of soil, water, and related resources

Section 5 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2004) is amended—

(1)

in subsection (a)(4), by striking and State and inserting , State, and tribal;

(2)

in subsection (b), by inserting , tribal after State each place it appears; and

(3)

in subsection (c)—

(A)

by striking State soil and inserting State and tribal soil; and

(B)

by striking local and inserting local, tribal,.

(c)

Soil and water conservation program

Section 6(a) of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2005(a)) is amended—

(1)

by inserting , tribal, after State the first place it appears;

(2)

by inserting , tribal after State each other place it appears; and

(3)

by inserting , tribal, after private.

(d)

Utilization of available information and data

Section 9 of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2008) is amended by inserting , tribal after State.

G

Funding and Administration

2601.

Funding

(a)

In general

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (a) and inserting the following:

(a)

Annual funding

For each of fiscal years 2014 through 2018, 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—

(A)

$10,000,000 for the period of fiscal years 2014 through 2018 to provide payments under section 1234(c); and

(B)

$33,000,000 for the period of fiscal years 2014 through 2018 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 agricultural conservation easement program under subtitle H using to the maximum extent practicable—

(A)

$400,000,000 for fiscal year 2014;

(B)

$425,000,000 for fiscal year 2015;

(C)

$450,000,000 for fiscal year 2016;

(D)

$500,000,000 for fiscal year 2017; and

(E)

$250,000,000 for fiscal year 2018.

(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—

(A)

$1,350,000,000 for fiscal year 2014;

(B)

$1,600,000,000 for fiscal year 2015;

(C)

$1,650,000,000 for fiscal year 2016;

(D)

$1,650,000,000 for fiscal year 2017; and

(E)

$1,750,000,000 for fiscal year 2018.

.

(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;

(2)

by inserting after subsection (a) the following:

(b)

Availability of funds

Amounts made available by subsection (a) for fiscal years 2014 through 2018 shall be used by the Secretary to carry out the programs specified in such subsection and shall remain available until expended.

; and

(3)

in subsection (d) (as redesignated by paragraph (1)), by striking subsection (b) and inserting subsection (c).

2602.

Technical assistance

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (c) (as redesignated by section 2601(b)(1)) and inserting the following:

(c)

Technical assistance

(1)

Availability

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;

(B)

except for technical assistance for the conservation reserve program under subchapter B of chapter 1 of subtitle D, shall be apportioned for the provision of technical assistance in the amount determined by the Secretary, at the sole discretion of the Secretary; and

(C)

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)

Priority

(A)

In general

In the delivery of technical assistance under the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a et seq.), the Secretary shall give priority to producers who request technical assistance from the Secretary in order to comply for the first time with the requirements of subtitle B and subtitle C of this title as a result of the amendments made by section 2611 of the Agricultural Act of 2014.

(B)

Report

Not later than 270 days after the date of enactment of the Agricultural Act of 2014, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report regarding the extent to which the conservation compliance requirements contained in the amendments made by section 2611 of the Agricultural Act of 2014 apply to and impact specialty crop growers, including national analysis and surveys to determine the extent of specialty crop acreage that includes highly erodible land and wetlands.

(3)

Report

Not later than December 31, 2014, 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 provision that would be helpful to such Committees.

(4)

Compliance report

Not later than November 1 of each year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes—

(A)

a description of the extent to which the requests for highly erodible land conservation and wetland compliance determinations are being addressed in a timely manner;

(B)

the total number of requests completed in the previous fiscal year;

(C)

the incomplete determinations on record; and

(D)

the number of requests that are still outstanding more than 1 year since the date on which the requests were received from the producer.

.

2603.

Regional equity

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)) and inserting the following:

(e)

Regional equity

(1)

Equitable distribution

When 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, 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.

.

2604.

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

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 2018; 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).

.

2605.

Annual report on program enrollments and assistance

Subsection (i) 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 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;

(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); and

(4)

by adding at the end the following:

(5)

Payments made under the conservation stewardship program.

(6)

Exceptions provided by the Secretary under section 1265B(b)(2)(C).

.

2606.

Administrative requirements applicable to all conservation programs

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 (d)(2)(A)(ii) or (g)(2);

(4)

in subsection (h)(2), by inserting , including, to the extent practicable, practices that maximize benefits for honey bees after pollinators; and

(5)

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 Agricultural Act of 2014.

(4)

Any law that succeeds a law specified in paragraph (1), (2), or (3).

(l)

Funding for Indian tribes

In carrying out the conservation stewardship program under subchapter B of chapter 2 of subtitle D and the environmental quality incentives program under chapter 4 of subtitle D, the Secretary may enter into alternative funding arrangements with Indian tribes if the Secretary determines that the goals and objectives of the programs will be met by such arrangements, and that statutory limitations regarding contracts with individual producers will not be exceeded by any tribal member.

.

2607.

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.

2608.

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 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.

.

2609.

Wetlands mitigation

Section 1222(k) of the Food Security Act of 1985 (16 U.S.C. 3822(k)) is amended to read as follows:

(k)

Mitigation banking

(1)

Mitigation banking program

(A)

In general

Using authorities available to the Secretary, the Secretary shall operate a program or work with third parties to establish mitigation banks to assist persons in complying with the provisions of this section while mitigating any loss of wetland values and functions.

(B)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use $10,000,000, to remain available until expended, to carry out this paragraph.

(2)

Applicability

Subsection (f)(2)(C) shall not apply to this subsection.

(3)

Policy and criteria

The Secretary shall develop the appropriate policy and criteria that will allow willing persons to access existing mitigation banks, under this section or any other authority, that will serve the purposes of this section without requiring the Secretary to hold an easement, in whole or in part, in a mitigation bank.

.

2610.

Lesser prairie-chicken conservation report

(a)

In general

Not later than 90 days after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the results of a review and analysis of each of the activities (including those administered by the Secretary) that pertain to the conservation of the lesser prairie-chicken, including the conservation reserve program, the environmental quality incentives program, the Lesser Prairie-Chicken Initiative, the Western Association of Fish and Wildlife Agencies Candidate Conservation Agreement with Assurances for Oil and Gas, and the Western Association of Fish and Wildlife Agencies Lesser Prairie-Chicken Range-Wide Conservation Plan.

(b)

Contents

The Secretary shall include in the report required by this section, at a minimum—

(1)

with respect to each activity described in subsection (a) as it relates to the conservation of the lesser prairie-chicken, findings regarding—

(A)

the cost of the activity to the Federal Government, impacted State governments, and the private sector;

(B)

the conservation effectiveness of the activity; and

(C)

the cost effectiveness of the activity; and

(2)

a ranking of the activities described in subsection (a) based on their relative cost effectiveness.

2611.

Highly erodible land and wetland conservation for crop insurance

(a)

Highly erodible land program ineligibility

(1)

In general

Section 1211(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3811(a)(1)) is amended—

(A)

in subparagraph (C), by striking or at the end;

(B)

in subparagraph (D), by adding or at the end; and

(C)

by adding at the end the following:

(E)

any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), on the condition that if a person is determined to have committed a violation under this subsection during a crop year, ineligibility under this subparagraph shall—

(i)

only apply to reinsurance years subsequent to the date of final determination of a violation, including all administrative appeals; and

(ii)

not apply to the existing reinsurance year or any reinsurance year prior to the date of final determination;

.

(2)

Exemptions

Section 1212(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3812(a)(2)) is amended—

(A)

in the first sentence, by striking (2) If, and inserting the following:

(2)

Eligibility based on compliance with conservation plan

(A)

In general

If,

;

(B)

in the second sentence, by striking In carrying and inserting the following:

(B)

Minimization of documentation

In carrying

; and

(C)

by adding at the end the following:

(C)

Crop insurance

(i)

Operations new to compliance

Notwithstanding section 1211(a), in the case of a person that is subject to section 1211 for the first time solely due to the amendment made by section 2611(a) of the Agricultural Act of 2014, any person who produces an agricultural commodity on the land that is the basis of the payments described in section 1211(a)(1)(E) shall have 5 reinsurance years after the date on which such payments become subject to section 1211 to develop and comply with an approved conservation plan so as to maintain eligibility for such payments.

(ii)

Existing operations with prior violations

Notwithstanding section 1211(a), in the case of a person that the Secretary determines would have been in violation of section 1211(a) if the person had continued participation in the programs requiring compliance at any time after the date of enactment of the Agricultural Act of 2014 and is currently in violation of section 1211(a), the person shall have 2 reinsurance years after the date on which the payments described in section 1211(a)(1)(E) become subject to section 1211 to develop and comply with an approved conservation plan, as determined by the Secretary, so as to maintain eligibility for such payments.

(iii)

Applicable reinsurance year

Ineligibility for the payment described in section 1211(a)(1)(E) for a violation under this subparagraph during a crop year shall—

(I)

only apply to reinsurance years subsequent to the date of a final determination of a violation, including all administrative appeals; and

(II)

not apply to the existing reinsurance year or any reinsurance year prior to the date of the final determination.

.

(3)

Crop insurance premium assistance

Section 1213(d) of the Food Security Act of 1985 (16 U.S.C. 3812a(d)) is amended by adding at the end the following:

(4)

Crop insurance premium assistance

For the purpose of determining the eligibility of a person for the payment described in section 1211(a)(1)(E), the Secretary shall apply the procedures described in section 1221(c)(3)(E) and coordinate the certification process so as to avoid duplication or unnecessary paperwork.

.

(b)

Wetland conservation program ineligibility

Section 1221 of the Food Security Act of 1985 (16 U.S.C. 3821) is amended—

(1)

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

(2)

by inserting after subsection (b) the following:

(c)

Ineligibility for crop insurance premium assistance

(1)

Requirements

(A)

In general

If a person is determined to have committed a violation under subsection (a) or (d) during a crop year, the person shall be ineligible to receive any payment of any portion of premium paid by the Federal Crop Insurance Corporation for a plan or policy of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) pursuant to this subsection.

(B)

Applicability

Ineligibility under this subsection shall—

(i)

only apply to reinsurance years subsequent to the date of a final determination of a violation, including all administrative appeals; and

(ii)

not apply to the existing reinsurance year or any reinsurance year prior to the date of the final determination.

(2)

Conversions

(A)

In general

Notwithstanding paragraph (1), ineligibility for crop insurance premium assistance shall apply in accordance with this paragraph.

(B)

New conversions

In the case of a wetland that the Secretary determines was converted after the date of enactment of the Agricultural Act of 2014

(i)

the person shall be ineligible to receive crop insurance premium subsidies in subsequent reinsurance years unless the Secretary determines that an exemption pursuant to section 1222 applies; or

(ii)

for any violation that the Secretary determines impacts less than 5 acres of an entire farm, the person may pay a contribution in an amount equal to 150 percent of the cost of mitigation, as determined by the Secretary, to the fund described in section 1241(f) for wetland restoration in lieu of ineligibility to receive crop insurance premium assistance.

(C)

Prior conversions

In the case of a wetland that the Secretary determines was converted prior to the date of enactment of the Agricultural Act of 2014, ineligibility under this subsection shall not apply.

(D)

Conversions and new policies or plans of insurance

In the case of an agricultural commodity for which an individual policy or plan of insurance is available for the first time to the person after the date of enactment of the Agricultural Act of 2014

(i)

ineligibility shall apply only to conversions that take place after the date on which the policy or plan of insurance first becomes available to the person; and

(ii)

the person shall take such steps as the Secretary determines appropriate to mitigate any prior conversion in a timely manner but not to exceed 2 reinsurance years.

(3)

Limitations

(A)

Mitigation required

Except as otherwise provided in this paragraph, a person subject to a final determination, including all administrative appeals, of a violation described in subsection (d) shall have 1 reinsurance year to initiate a mitigation plan to remedy the violation, as determined by the Secretary, before becoming ineligible under this subsection in the following reinsurance year to receive any payment of any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

(B)

Persons covered for the first time

Notwithstanding the requirements of paragraph (1), in the case of a person that is subject to this subsection for the first time solely due to the amendment made by section 2611(b) of the Agricultural Act of 2014, the person shall have 2 reinsurance years after the reinsurance year in which a final determination is made, including all administrative appeals, of a violation described in this subsection to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection.

(C)

Good faith

If the Secretary determines that a person subject to a final determination, including all administrative appeals, of a violation described in this subsection acted in good faith and without intent to commit a violation described in this subsection as described in section 1222(h), the person shall have 2 reinsurance years to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection.

(D)

Tenant relief

(i)

In general

If a tenant is determined to be ineligible for payments and other benefits under this subsection, the Secretary may limit the ineligibility only to the farm that is the basis for the ineligibility determination if the tenant has established, to the satisfaction of the Secretary that—

(I)

the tenant has made a good faith effort to meet the requirements of this section, including enlisting the assistance of the Secretary to obtain a reasonable plan for restoration or mitigation for the farm;

(II)

the landlord on the farm refuses to comply with the plan on the farm; and

(III)

the Secretary determines that the lack of compliance is not a part of a scheme or device to avoid the compliance.

(ii)

Report

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 an annual report concerning the ineligibility determinations limited during the previous 12-month period under this subparagraph.

(E)

Certificate of compliance

(i)

In general

Beginning with the first full reinsurance year immediately following the date of enactment of this paragraph, all persons seeking eligibility for the payment of a portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) shall provide certification of compliance with this section as determined by the Secretary.

(ii)

Timely evaluation

The Secretary shall evaluate the certification in a timely manner and—

(I)

a person who has properly complied with certification shall be held harmless with regard to eligibility during the period of evaluation; and

(II)

if the Secretary fails to evaluate the certification in a timely manner and the person is subsequently found to be in violation of this subsection, ineligibility shall not apply to the person for that violation.

(iii)

Equitable contribution

(I)

In general

If a person fails to notify the Secretary as required and is subsequently found to be in violation of this subsection, the Secretary shall—

(aa)

determine the amount of an equitable contribution to conservation by the person for the violation; and

(bb)

deposit the contribution in the fund described in section 1241(f).

(II)

Limitation

The contribution shall not exceed the total of the portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance for all years the person is determined to have been in violation subsequent to the date on which certification was first required under this subparagraph.

(4)

Duties of the Secretary

(A)

In general

In carrying out this subsection, the Secretary shall use existing processes and procedures for certifying compliance.

(B)

Responsibility

The Secretary, acting through the agencies of the Department of Agriculture, shall be solely responsible for determining whether a producer is eligible to receive crop insurance premium subsidies in accordance with this subsection.

(C)

Limitation

The Secretary shall ensure that no agent, approved insurance provider, or employee or contractor of an agency or approved insurance provider, bears responsibility or liability for the eligibility of an insured producer under this subsection, other than in cases of misrepresentation, fraud, or scheme and device.

.

H

Repeal of Superseded Program Authorities and Transitional Provisions; Technical Amendments

2701.

Comprehensive conservation enhancement program

Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is repealed.

2702.

Emergency forestry conservation reserve program

(a)

Repeal

Except as provided in subsection (b), section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) is repealed.

(b)

Transitional provisions

(1)

Effect on existing contracts and agreements

The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the Secretary of Agriculture under section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) before the date of enactment of the Agricultural Act of 2014, or any payments required to be made in connection with the contract or agreement.

(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 or agreements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts or agreements as in existence on the day before the date of enactment of the Agricultural Act of 2014.

2703.

Wetlands reserve program

(a)

Repeal

Except as provided in subsection (b), 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, agreements, and easements

The amendment made by this section shall not affect the validity or terms of any contract, agreement, or easement 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 the date of enactment of the Agricultural Act of 2014, or any payments required to be made in connection with the