S. 10: Agriculture Reform, Food, and Jobs Act of 2013

113th Congress, 2013–2015. Text as of Jan 22, 2013 (Introduced).

Status & Summary | PDF | Source: GPO and Cato Institute Deepbills

II

113th CONGRESS

1st Session

S. 10

IN THE SENATE OF THE UNITED STATES

January 22 (legislative day, January 3), 2013

(for himself, Ms. Stabenow, Mr. Durbin, Mr. Schumer, Mr. Johnson of South Dakota, Mr. Leahy, Mr. Baucus, Mr. Bennet, Mr. Brown, Mr. Tester, Mr. Casey, Mr. Harkin, Mr. Schatz, Ms. Heitkamp, Ms. Klobuchar, Mr. Coons, Mr. Donnelly, Mr. Levin, and Mr. Franken) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To reauthorize agricultural programs through 2018.

1.

Short title; table of contents

(a)

In general

This Act may be cited as the Agriculture Reform, Food, and Jobs Act of 2013 .

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE I—Commodity programs

Subtitle A—Repeals and reforms

Sec. 1101. Repeal of direct payments.

Sec. 1102. Repeal of counter-cyclical payments.

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

Sec. 1104. Definitions.

Sec. 1105. Agriculture risk coverage.

Sec. 1106. Producer agreement required as condition of provision of payments.

Sec. 1107. Period of effectiveness.

Sec. 1108. Adjusted gross income limitation for conservation programs.

Subtitle B—Marketing assistance loans and loan deficiency payments

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

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

Sec. 1203. Term of loans.

Sec. 1204. Repayment of loans.

Sec. 1205. Loan deficiency payments.

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

Sec. 1207. Special competitive provisions for extra long staple cotton.

Sec. 1208. Availability of recourse loans for high moisture feed grains and seed cotton.

Sec. 1209. Adjustments of loans.

Subtitle C—Sugar

Sec. 1301. Sugar program.

Subtitle D—Dairy

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

Sec. 1401. Definitions.

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

SUBPART A—Dairy production margin protection program

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

Sec. 1412. Participation of dairy operations in production margin protection program.

Sec. 1413. Production history of participating dairy operations.

Sec. 1414. Basic production margin protection.

Sec. 1415. Supplemental production margin protection.

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

SUBPART B—Dairy market stabilization program

Sec. 1431. Establishment of dairy market stabilization program.

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

Sec. 1433. Milk marketings information.

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

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

Sec. 1436. Suspension of reduced payment requirement.

Sec. 1437. Enforcement.

Sec. 1438. Audit requirements.

Sec. 1439. Study; report.

SUBPART C—Administration

Sec. 1451. Duration.

Sec. 1452. Administration and enforcement.

Part II—Dairy market transparency

Sec. 1461. Dairy product mandatory reporting.

Sec. 1462. Federal milk marketing order information.

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

Sec. 1471. Repeal of dairy product price support and milk income loss contract programs.

Sec. 1472. Repeal of dairy export incentive program.

Sec. 1473. Extension of dairy forward pricing program.

Sec. 1474. Extension of dairy indemnity program.

Sec. 1475. Extension of dairy promotion and research program.

Sec. 1476. Extension of Federal Milk Marketing Order Review Commission.

Part IV—Federal milk marketing order reform

Sec. 1481. Federal milk marketing orders.

Part V—Effective date

Sec. 1491. Effective date.

Subtitle E—Supplemental agricultural disaster assistance programs

Sec. 1501. Supplemental agricultural disaster assistance programs.

Subtitle F—Administration

Sec. 1601. Administration generally.

Sec. 1602. Suspension of permanent price support authority.

Sec. 1603. Payment limitations.

Sec. 1604. Payments limited to active farmers.

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. Appeals.

Sec. 1610. Technical corrections.

Sec. 1611. Assignment of payments.

Sec. 1612. Tracking of benefits.

Sec. 1613. Signature authority.

Sec. 1614. Implementation.

TITLE II—Conservation

Subtitle A—Conservation Reserve Program

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

Sec. 2002. Farmable wetland program.

Sec. 2003. Duties of owners and operators.

Sec. 2004. Duties of the Secretary.

Sec. 2005. Payments.

Sec. 2006. Contract requirements.

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

Sec. 2008. Effective date.

Subtitle B—Conservation Stewardship Program

Sec. 2101. Conservation stewardship program.

Subtitle C—Environmental Quality Incentives Program

Sec. 2201. Purposes.

Sec. 2202. 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. Effective date.

Subtitle D—Agricultural Conservation Easement Program

Sec. 2301. Agricultural Conservation Easement Program.

Subtitle E—Regional Conservation Partnership Program

Sec. 2401. Regional Conservation Partnership Program.

Subtitle F—Other Conservation Programs

Sec. 2501. Conservation of private grazing land.

Sec. 2502. Grassroots source water protection program.

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

Sec. 2504. Agriculture conservation experienced services program.

Sec. 2505. Small watershed rehabilitation program.

Sec. 2506. Terminal lakes assistance.

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 for conservation programs.

Sec. 2607. Rulemaking authority.

Sec. 2608. Standards for State technical committees.

Sec. 2609. Highly erodible land and wetland conservation for crop insurance.

Subtitle H—Repeal of superseded program authorities and transitional provisions

Sec. 2701. Comprehensive conservation enhancement program.

Sec. 2702. Emergency forestry conservation reserve program.

Sec. 2703. Wetlands reserve program.

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

Sec. 2705. Grassland reserve program.

Sec. 2706. Agricultural water enhancement program.

Sec. 2707. Wildlife habitat incentive program.

Sec. 2708. Great Lakes basin program.

Sec. 2709. Chesapeake Bay watershed program.

Sec. 2710. Cooperative conservation partnership initiative.

Sec. 2711. Environmental easement program.

Sec. 2712. Technical amendments.

TITLE III—Trade

Subtitle A—Food for Peace Act

Sec. 3001. Set-aside for support for organizations through which nonemergency assistance is provided.

Sec. 3002. Food aid quality.

Sec. 3003. Minimum levels of assistance.

Sec. 3004. Reauthorization of Food Aid Consultative Group.

Sec. 3005. Oversight, monitoring, and evaluation of Food for Peace Act programs.

Sec. 3006. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods.

Sec. 3007. Limitation on total volume of commodities monetized.

Sec. 3008. Flexibility.

Sec. 3009. Procurement, transportation, testing, and storage of agricultural commodities for prepositioning in the United States and foreign countries.

Sec. 3010. Deadline for agreements to finance sales or to provide other assistance.

Sec. 3011. Minimum level of nonemergency food assistance.

Sec. 3012. Coordination of foreign assistance programs report.

Sec. 3013. Micronutrient fortification programs.

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

Sec. 3015. Prohibition on assistance for North Korea.

Subtitle B—Agricultural Trade Act of 1978

Sec. 3101. Export credit guarantee programs.

Sec. 3102. Funding for market access program.

Sec. 3103. Foreign market development cooperator program.

Subtitle C—Other Agricultural Trade Laws

Sec. 3201. Food for Progress Act of 1985.

Sec. 3202. Bill Emerson Humanitarian Trust.

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

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

Sec. 3205. Technical assistance for specialty crops.

Sec. 3206. Global Crop Diversity Trust.

Sec. 3207. Local and regional food aid procurement projects.

Sec. 3208. Donald Payne Horn of Africa food resilience program.

Sec. 3209. Agricultural trade enhancement study.

TITLE IV—Nutrition

Subtitle A—Supplemental nutrition assistance program

Sec. 4001. Food distribution program on Indian reservations.

Sec. 4002. Standard utility allowances based on the receipt of energy assistance payments.

Sec. 4003. Eligibility disqualifications.

Sec. 4004. Ending supplemental nutrition assistance program benefits for lottery or gambling winners.

Sec. 4005. Retail food stores.

Sec. 4006. Improving security of food assistance.

Sec. 4007. Technology modernization for retail food stores.

Sec. 4008. Use of benefits for purchase of community-supported agriculture share.

Sec. 4009. Restaurant meals program.

Sec. 4010. Quality control error rate determination.

Sec. 4011. Performance bonus payments.

Sec. 4012. Authorization of appropriations.

Sec. 4013. Assistance for community food projects.

Sec. 4014. Emergency food assistance.

Sec. 4015. Nutrition education.

Sec. 4016. Retail food store and recipient trafficking.

Sec. 4017. Technical and conforming amendments.

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. Technical and conforming amendments.

Subtitle C—Miscellaneous

Sec. 4201. Purchase of fresh fruits and vegetables for distribution to schools and service institutions.

Sec. 4202. Seniors farmers' market nutrition program.

Sec. 4203. Nutrition information and awareness pilot program.

Sec. 4204. Whole grain products.

Sec. 4205. Hunger-free communities.

Sec. 4206. Healthy Food Financing Initiative.

Sec. 4207. Pulse crop products.

Sec. 4208. Dietary Guidelines for Americans.

Sec. 4209. Purchases of locally produced foods.

TITLE V—Credit

Subtitle A—Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act

Sec. 5001. Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act.

Subtitle B—Miscellaneous

Sec. 5101. State agricultural mediation programs.

Sec. 5102. Loans to purchasers of highly fractionated land.

Sec. 5103. Removal of duplicative appraisals.

TITLE VI—Rural Development

Subtitle A—Reorganization of the Consolidated Farm and Rural Development Act

Sec. 6001. Reorganization of the Consolidated Farm and Rural Development Act.

Sec. 6002. Conforming amendments.

Subtitle B—Rural electrification

Sec. 6101. Definition of rural area.

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.

Subtitle C—Miscellaneous

Sec. 6201. Distance learning and telemedicine.

Sec. 6202. Rural energy savings program.

Sec. 6203. Funding of pending rural development loan and grant applications.

Sec. 6204. Study of rural transportation issues.

Sec. 6205. Agricultural transportation policy.

TITLE VII—Research, Extension, and Related Matters

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

Sec. 7101. National Agricultural Research, Extension, Education, and Economics Advisory Board.

Sec. 7102. Specialty crop committee.

Sec. 7103. Veterinary services grant program.

Sec. 7104. Grants and fellowships for food and agriculture sciences education.

Sec. 7105. Agricultural and food policy research centers.

Sec. 7106. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions.

Sec. 7107. Nutrition education program.

Sec. 7108. Continuing animal health and disease research programs.

Sec. 7109. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University.

Sec. 7110. Grants to upgrade agricultural and food sciences facilities and equipment at insular area land-grant institutions.

Sec. 7111. Hispanic-serving institutions.

Sec. 7112. Competitive grants for international agricultural science and education programs.

Sec. 7113. University research.

Sec. 7114. Extension service.

Sec. 7115. Supplemental and alternative crops.

Sec. 7116. Capacity building grants for NLGCA institutions.

Sec. 7117. Aquaculture assistance programs.

Sec. 7118. Rangeland research programs.

Sec. 7119. Special authorization for biosecurity planning and response.

Sec. 7120. Distance education and resident instruction grants program for insular area institutions of higher education.

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. High-priority research and extension initiatives.

Sec. 7208. Organic agriculture research and extension initiative.

Sec. 7209. Farm business management.

Sec. 7210. Regional centers of excellence.

Sec. 7211. Assistive technology program for farmers with disabilities.

Sec. 7212. 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. Grants for youth organizations.

Sec. 7305. Specialty crop research initiative.

Sec. 7306. Food animal residue avoidance database program.

Sec. 7307. Office of pest management policy.

Sec. 7308. Authorization of regional integrated pest management centers.

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. Enhanced use lease authority pilot program under Department of Agriculture Reorganization Act of 1994.

Sec. 7406. Renewable Resources Extension Act of 1978.

Sec. 7407. National Aquaculture Act of 1980.

Sec. 7408. Beginning farmer and rancher development program under Farm Security and Rural Investment Act of 2002.

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

Sec. 7511. Grazinglands research laboratory.

Sec. 7512. Budget submission and funding.

Sec. 7513. Natural products research program.

Sec. 7514. Sun grant program.

Subtitle F—Miscellaneous

Sec. 7601. Foundation for Food and Agriculture Research.

Sec. 7602. Objective and scholarly agricultural and food law research and information.

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.

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

Sec. 8101. State-wide assessment and strategies for forest resources.

Sec. 8102. Forest stewardship program.

Sec. 8103. Forest Legacy Program.

Sec. 8104. Community forest and open space conservation program.

Sec. 8105. Urban and community forestry assistance.

Subtitle C—Reauthorization of other forestry-Related laws

Sec. 8201. Rural revitalization technologies.

Sec. 8202. Office of International Forestry.

Sec. 8203. Insect infestations and related diseases.

Sec. 8204. Stewardship end result contracting projects.

Sec. 8205. Healthy forests reserve program.

Subtitle D—Miscellaneous provisions

Sec. 8301. McIntire-Stennis Cooperative Forestry Act.

Sec. 8302. Revision of strategic plan for forest inventory and analysis.

TITLE IX—Energy

Sec. 9001. Definition of renewable chemical.

Sec. 9002. Biobased markets program.

Sec. 9003. Biorefinery, renewable chemical, and biobased product manufacturing assistance.

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

Sec. 9005. Bioenergy program for advanced biofuels.

Sec. 9006. Biodiesel fuel education program.

Sec. 9007. Rural Energy for America Program.

Sec. 9008. Biomass research and development.

Sec. 9009. Feedstock flexibility program for bioenergy producers.

Sec. 9010. Biomass Crop Assistance Program.

Sec. 9011. Repeal of forest biomass for energy.

Sec. 9012. Community wood energy program.

Sec. 9013. Repeal of renewable fertilizer study.

TITLE X—Horticulture

Sec. 10001. Specialty crops market news allocation.

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

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

Sec. 10004. Study on local food production and program evaluation.

Sec. 10005. Organic agriculture.

Sec. 10006. Food safety education initiatives.

Sec. 10007. Coordinated plant management program.

Sec. 10008. Specialty crop block grants.

Sec. 10009. Recordkeeping, investigations, and enforcement.

Sec. 10010. Report on honey.

Sec. 10011. Effective date.

TITLE XI—Crop insurance

Sec. 11001. Supplemental coverage option.

Sec. 11002. Premium amounts for catastrophic risk protection.

Sec. 11003. Permanent enterprise unit.

Sec. 11004. Enterprise units for irrigated and nonirrigated crops.

Sec. 11005. Data collection.

Sec. 11006. Adjustment in actual production history to establish insurable yields.

Sec. 11007. Submission and review of policies.

Sec. 11008. Board review and approval.

Sec. 11009. Consultation.

Sec. 11010. Budget limitations on renegotiation of the Standard Reinsurance Agreement.

Sec. 11011. Stacked Income Protection Plan for producers of upland cotton.

Sec. 11012. Peanut revenue crop insurance.

Sec. 11013. Authority to correct errors.

Sec. 11014. Implementation.

Sec. 11015. Approval of costs for research and development.

Sec. 11016. Whole farm risk management insurance.

Sec. 11017. Study of food safety insurance.

Sec. 11018. Crop insurance for livestock.

Sec. 11019. Margin coverage for catfish.

Sec. 11020. Poultry business disruption insurance policy.

Sec. 11021. Crop insurance for organic crops.

Sec. 11022. Research and development.

Sec. 11023. Pilot programs.

Sec. 11024. Index-based weather insurance pilot program.

Sec. 11025. Enhancing producer self-help through farm financial benchmarking.

Sec. 11026. Beginning farmer and rancher provisions.

Sec. 11027. Agricultural management assistance, risk management education, and organic certification cost share assistance.

Sec. 11028. Crop production on native sod.

Sec. 11029. Technical amendments.

Sec. 11030. Greater accessibility for crop insurance.

Sec. 11031. GAO crop insurance fraud report.

Sec. 11032. Limitation on premium subsidy based on average adjusted gross income.

TITLE XII—Miscellaneous

Subtitle A—Socially disadvantaged producers and limited resource producers

Sec. 12001. Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers.

Sec. 12002. Office of Advocacy and Outreach.

Subtitle B—Livestock

Sec. 12101. Wildlife reservoir zoonotic disease initiative.

Sec. 12102. Trichinae certification program.

Sec. 12103. National Aquatic Animal Health Plan.

Sec. 12104. Sheep production and marketing grant program.

Sec. 12105. Feral swine eradication pilot program.

Subtitle C—Other miscellaneous provisions

Sec. 12201. Military Veterans Agricultural Liaison.

Sec. 12202. Information gathering.

Sec. 12203. Grants to improve supply, stability, safety, and training of agricultural labor force.

Sec. 12204. Noninsured crop assistance program.

Sec. 12205. Regional economic and infrastructure development.

Sec. 12206. Canada geese removal.

Sec. 12207. Office of Tribal Relations.

Sec. 12208. Repeal of duplicative program.

Sec. 12209. Sense of the Senate.

Sec. 12210. Acer Access and Development Program.

Sec. 12211. Definition of rural area for purposes of the Housing Act of 1949.

Sec. 12212. Prohibition on attending an animal fight or causing a minor to attend an animal fight; enforcement of animal fighting provisions.

2.

Definition of Secretary

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

I

Commodity programs

A

Repeals and reforms

1101.

Repeal of direct payments

(a)

Repeal

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

(b)

Continued application for 2013 crop year

Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2013 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) (except pulse crops) and peanuts on a farm.

1102.

Repeal of counter-cyclical payments

(a)

Repeal

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

(b)

Continued application for 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 is made before the date of enactment of this Act.

1104.

Definitions

In this subtitle, subtitle B, and subtitle F:

(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 1105(c)(3).

(2)

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 1105(c)(4).

(3)

Agriculture risk coverage payment

The term agriculture risk coverage payment means a payment under section 1105(c).

(4)

Average individual yield

The term average individual yield means the yield reported by a producer for purposes of subtitle A of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), to the maximum extent practicable.

(5)

County coverage

For the purposes of agriculture risk coverage under section 1105, the term county coverage means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average county yield described in subsection (c) of that section.

(6)

Covered commodity

(A)

In general

The term covered commodity means wheat, corn, grain sorghum, barley, oats, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.

(B)

Popcorn

The Secretary

(i)

shall study the feasibility of including popcorn as a covered commodity by 2014; and

(ii)

if the Secretary determines it to be feasible, shall designate popcorn as a covered commodity.

(7)

Eligible acres

(A)

In general

Except as provided in subparagraphs (B) through (D), the term eligible acres means all acres planted or prevented from being planted to all covered commodities on a farm in any crop year.

(B)

Maximum

Except as provided in (C), the total quantity of eligible acres on a farm determined under subparagraph (A) shall not exceed the average total acres planted or prevented from being planted to covered commodities and upland cotton on the farm for the 2009 through 2012 crop years, as determined by the Secretary.

(C)

Adjustment

The Secretary shall provide for an adjustment, as appropriate, in the eligible acres for covered commodities for a farm if any of the following circumstances occurs:

(i)

If a conservation reserve contract for a farm in a county entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) expires or is voluntarily terminated or cropland is released from coverage under a conservation reserve contract, the Secretary shall provide for an adjustment, as appropriate, in the eligible acres for the farm to a total quantity that is the higher of—

(I)

the total base acreage for the farm, less any upland cotton base acreage, that was suspended during the conservation reserve contract; or

(II)

the product obtained by multiplying—

(aa)

the average proportion that—

(AA)

the total number of acres planted to covered commodities and upland cotton in the county for crop years 2009 through 2012; bears to

(BB)

the total number of all acres of covered commodities, grassland, and upland cotton acres in the county for the same crop years; by

(bb)

the total acres for which coverage has expired, voluntarily terminated, or been released under the conservation reserve contract.

(ii)

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)).

(iii)

The producer has any acreage not cropped during the 2009 through 2012 crop years, but placed into an established rotation practice for the purposes of enriching land or conserving moisture for subsequent crop years, including summer fallow, as determined by the Secretary.

(D)

Exclusion

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

(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)

Individual coverage

For purposes of agriculture risk coverage under section 1105, the term individual coverage means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average individual yield of the producer described in subsection (c) of that section.

(10)

Medium grain rice

The term medium grain rice includes short grain rice.

(11)

Midseason price

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

(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)

Producer

(A)

In general

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

(B)

Hybrid seed

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

(i)

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

(ii)

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

(14)

Pulse crop

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

(15)

State

The term State means—

(A)

a State;

(B)

the District of Columbia;

(C)

the Commonwealth of Puerto Rico; and

(D)

any other territory or possession of the United States.

(16)

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)).

(17)

United States

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

(18)

United States premium factor

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

1105.

Agriculture risk coverage

(a)

Payments required

If the Secretary determines that payments are required under subsection (c), the Secretary shall make payments for each covered commodity available to producers in accordance with this section.

(b)

Coverage election

(1)

In general

For the period of crop years 2014 through 2018, the producers shall make a 1-time, irrevocable election to receive—

(A)

individual coverage under this section, as determined by the Secretary; or

(B)

in the case of a county with sufficient data (as determined by the Secretary), county coverage under this section.

(2)

Effect of election

The election made under paragraph (1) shall be binding on the producers making the election, regardless of covered commodities planted, and applicable to all acres under the operational control of the producers, in a manner that—

(A)

acres brought under the operational control of the producers after the election are included; and

(B)

acres no longer under the operational control of the producers after the election are no longer subject to the election of the producers but become subject to the election of the subsequent producers.

(3)

Duties of the Secretary

The Secretary shall ensure that producers are precluded from taking any action, including reconstitution, transfer, or other similar action, that would have the effect of altering or reversing the election made under paragraph (1).

(c)

Agriculture risk coverage

(1)

Payments

The Secretary shall make agriculture risk coverage payments available under this subsection for each of the 2014 through 2018 crop years if the Secretary determines that—

(A)

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

(B)

the agriculture risk coverage guarantee for the crop year for the covered commodity.

(2)

Time for payments

If the Secretary determines under this subsection that agriculture risk coverage payments are required to be made for the covered commodity, the agriculture risk coverage payments shall be made as soon as practicable thereafter.

(3)

Actual crop revenue

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

(A)
(i)

in the case of individual coverage, the actual average individual yield for the covered commodity, as determined by the Secretary; or

(ii)

in the case of county coverage, the actual average yield for the county for the covered commodity, as determined by the Secretary; and

(B)

the higher of—

(i)

the midseason price; or

(ii)

if applicable, the national marketing assistance loan rate for the covered commodity under subtitle B.

(4)

Agriculture risk coverage guarantee

(A)

In general

The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 89 percent of the benchmark revenue.

(B)

Benchmark revenue

(i)

In general

The benchmark revenue shall be the product obtained by multiplying—

(I)
(aa)

in the case of individual coverage, subject to clause (ii), the average individual 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; or

(bb)

in the case of county coverage, the average county yield, as determined by the Secretary, for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and

(II)

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

(ii)

Use of transitional yields

If the yield determined under clause (i)(I)(aa)

(I)

for the 2013 crop year or any prior crop year, is less than 60 percent of the applicable transitional yield, the Secretary shall use 60 percent of the applicable transitional yield for that crop year; and

(II)

for the 2014 crop year and any subsequent crop year, is less than 70 percent of the applicable transitional yield, the Secretary shall use 70 percent of the applicable transitional yield for that crop year.

(iii)

Special rule for rice and peanuts

If the national marketing year average price under clause (i)(II) for any of the applicable crop years is lower than the price for the covered commodity listed below, the Secretary shall use the following price for that crop year:

(I)

For long grain rice, $13.00 per hundredweight.

(II)

For medium grain rice, $13.00 per hundredweight.

(III)

For peanuts, $530.00 per ton.

(5)

Payment rate

The payment rate for each covered commodity shall be equal to the lesser of—

(A)

the amount that—

(i)

the agriculture risk coverage guarantee for the covered commodity; exceeds

(ii)

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

(B)

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

(6)

Payment amount

If agriculture risk coverage payments under this subsection are required to be paid for any of the 2014 through 2018 crop years of a covered commodity, the amount of the agriculture risk coverage payment for the crop year shall be equal to the product obtained by multiplying—

(A)

the payment rate under paragraph (5); and

(B)
(i)

in the case of individual coverage the sum of—

(I)

65 percent of the planted eligible acres of the covered commodity; and

(II)

45 percent of the eligible acres that were prevented from being planted to the covered commodity; or

(ii)

in the case of county coverage—

(I)

80 percent of the planted eligible acres of the covered commodity; and

(II)

45 percent of the eligible acres that were prevented from being planted to the covered commodity.

(7)

Duties of the Secretary

In carrying out the program under this subsection, the Secretary shall—

(A)

to the maximum extent practicable, use all available information and analysis to check for anomalies in the determination of payments under the program;

(B)

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

(C)

differentiate by type or class the national average price of—

(i)

sunflower seeds;

(ii)

barley, using malting barley values; and

(iii)

wheat; and

(D)

assign a yield for each acre planted or prevented from being planted 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 the Secretary cannot establish the yield as determined under paragraph (3)(A)(ii) or (4)(B)(i) or if the yield determined under paragraph (3)(A)(ii) or (4) is an unrepresentative average yield for the covered commodity as determined by the Secretary.

1106.

Producer agreement required as condition of provision of payments

(a)

Compliance with certain requirements

(1)

Requirements

Before the producers on a farm may receive agriculture risk coverage payments, 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 use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and

(D)

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

(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 agriculture risk coverage payments are made shall result in the termination of the agriculture risk coverage 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 an agriculture risk coverage payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary.

(c)

Reports

(1)

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.

(2)

Production reports

As a condition on the receipt of any benefits under section 1105, the Secretary shall require producers on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on the farm.

(3)

Penalties

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

(4)

Data reporting

To the maximum extent practicable, the Secretary shall use data reported by the producer pursuant to requirements under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) to meet the obligations described in paragraphs (1) and (2), without additional submissions to the Department.

(d)

Tenants and sharecroppers

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

1107.

Period of effectiveness

Sections 1104 through 1106 shall be effective beginning with the 2014 crop year of each covered commodity through the 2018 crop year.

1108.

Adjusted gross income limitation for conservation programs

Section 1001D(b)(2)(A) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(2)(A)) is amended—

(1)

by striking Limits.— and all that follows through clause (ii), and inserting Limits.—Notwithstanding any other provision of law,; and

(2)

by striking clause (ii).

B

Marketing assistance loans and loan deficiency payments

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

(1)

Requirements

Before the producers on a farm may receive a marketing assistance loan or any other payment or benefit under this subtitle, the producers shall agree, for 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 use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and

(D)

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

(2)

Compliance

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

(3)

Modification

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

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

(7)

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

(8)

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

(9)

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

(10)

In the case of soybeans, $5.00 per bushel.

(11)

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

(A)

Sunflower seed.

(B)

Rapeseed.

(C)

Canola.

(D)

Safflower.

(E)

Flaxseed.

(F)

Mustard seed.

(G)

Crambe.

(H)

Sesame seed.

(I)

Other oilseeds designated by the Secretary.

(12)

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

(13)

In the case of lentils, $11.28 per hundredweight.

(14)

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

(15)

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

(16)

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

(17)

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

(18)

In the case of mohair, $4.20 per pound.

(19)

In the case of honey, $0.69 per pound.

(20)

In the case of peanuts, $355 per ton.

(b)

Single county loan rate for other oilseeds

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

1203.

Term of loans

(a)

Term of loan

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

(b)

Extensions prohibited

The Secretary may not extend the term of a marketing assistance loan for any loan commodity.

1204.

Repayment of loans

(a)

General rule

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

(1)

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

(2)

a rate (as determined by the Secretary) that—

(A)

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

(B)

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

(3)

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

(A)

minimize potential loan forfeitures;

(B)

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

(C)

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

(D)

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

(E)

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

(b)

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

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

(1)

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

(2)

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

(c)

Repayment rates for extra long staple cotton

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

(d)

Prevailing world market price

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

(1)

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

(2)

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

(e)

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

(1)

Rice

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

(2)

Cotton

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

(A)

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

(i)

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

(ii)

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

(B)

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

(i)

to minimize potential loan forfeitures;

(ii)

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

(iii)

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

(iv)

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

(I)

there are insufficient current-crop price quotations; and

(II)

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

(3)

Guidelines for additional adjustments

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

(f)

Repayment rates for confectionery and other kinds of sunflower seeds

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

(1)

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

(2)

the repayment rate established for oil sunflower seed.

(g)

Payment of cotton storage costs

Effective for each of the 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 20 percent.

(h)

Repayment rate for peanuts

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

(1)

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

(2)

a rate that the Secretary determines will—

(A)

minimize potential loan forfeitures;

(B)

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

(C)

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

(D)

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

(i)

Authority To temporarily adjust repayment rates

(1)

Adjustment authority

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

(2)

Duration

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

1205.

Loan deficiency payments

(a)

Availability of loan deficiency payments

(1)

In general

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

(2)

Unshorn pelts, hay, and silage

(A)

Marketing assistance loans

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

(B)

Loan deficiency payment

Effective for the 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 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 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 yield in effect for the calculation of agriculture risk coverage payments under subtitle A with respect to that loan commodity on the farm; or

(II)

in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary.

(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 yield in effect for the calculation of agriculture risk coverage payments under subtitle A with respect to wheat on the farm; or

(II)

in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 1102 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8712).

(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 competitive provisions for extra long staple cotton

(a)

Competitiveness program

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

(1)

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

(2)

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

(3)

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

(b)

Payments under program; trigger

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

(1)

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

(2)

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

(c)

Eligible recipients

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

(d)

Payment amount

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

1208.

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

(b)

Recourse loans available for seed cotton

For each of the 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)).

1209.

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 subtitles C through E.

(c)

Adjustment on county basis

(1)

In general

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

(2)

Prohibition

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

(d)

Adjustment in loan rate for cotton

(1)

In general

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

(2)

Revisions to quality adjustments for upland cotton

(A)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary shall implement revisions in the administration of the marketing assistance loan program for upland cotton to more accurately and efficiently reflect market values for upland cotton.

(B)

Mandatory revisions

Revisions under subparagraph (A) shall include—

(i)

the elimination of warehouse location differentials;

(ii)

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

(iii)

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

(iv)

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

(C)

Discretionary revisions

Revisions under subparagraph (A) may include—

(i)

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

(ii)

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

(iii)

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

(3)

Consultation with private sector

(A)

Prior to revision

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 revisions to the administration of the loan program for upland cotton, by—

(A)

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

(B)

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

(e)

Rice

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

C

Sugar

1301.

Sugar program

(a)

Continuation of current program and loan rates

(1)

Sugarcane

Section 156(a)(5) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(5)) is amended by striking the 2012 crop year and inserting each of the 2014 through 2018 crop years.

(2)

Sugar beets

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

Sugar import quota adjustment date

Section 359k(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)) is amended—

(A)

by striking April 1 each place it appears and inserting February 1 ; and

(B)

by striking April 1 each place it appears and inserting February 1.

(3)

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

Dairy production margin protection and dairy market stabilization programs

1401.

Definitions

In this part:

(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)

Annual production history

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

(4)

Average feed cost

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

(A)

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

(B)

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

(C)

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

(5)

Basic production history

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

(6)

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.

(7)

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 pooling of resources and a common ownership structure;

(ii)

is at risk in the production of milk on the dairy operation; and

(iii)

contributes land, labor, management, equipment, or capital to the dairy operation.

(B)

Additional ownership structures

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

(8)

Handler

(A)

In general

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

(B)

Producer-handler

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

(9)

Participating dairy operation

The term participating dairy operation means a dairy operation that—

(A)

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

(B)

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

(10)

Production margin protection program

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

(11)

Secretary

The term Secretary means the Secretary of Agriculture.

(12)

Stabilization program

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

(13)

Stabilization program base

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

(14)

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 margins

(1)

Production margin protection program

For use in the production margin protection program under subpart A, 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)

Stabilization program

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

(A)

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

(B)

the all-milk price for that preceding month.

(3)

Time for calculations

The calculations required by paragraphs (1) and (2) shall be made as soon as practicable using the full month price of the applicable reference month.

A

Dairy production margin protection program

1411.

Establishment of dairy production margin protection program

Effective not later than 120 days after the effective date of this subtitle, the Secretary shall establish and administer a dairy production margin protection program under which participating dairy operations are paid—

(1)

basic production margin protection program payments under section 1414 when actual dairy production margins are less than the threshold levels for such payments; and

(2)

supplemental production margin protection program payments under section 1415 if purchased by a participating dairy operation.

1412.

Participation of dairy operations in production margin protection program

(a)

Eligibility

All dairy operations in the United States shall be eligible to participate in the production margin protection program, except that a participating dairy operation shall be required to register with the Secretary before the participating dairy operation may receive—

(1)

basic production margin protection program payments under section 1414; and

(2)

if the participating dairy operation purchases supplemental production margin protection under section 1415, supplemental production margin protection program payments under such section.

(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 production 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—

(A)

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

(B)

payment of the participation fee under subsection (d) and producer premiums under section 1415; and

(C)

participation in the stabilization program under subtitle B.

(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 receive basic production margin protection and purchase supplemental production margin protection and only those dairy operations so registered shall be covered by the stabilization program.

(c)

Time for registration

(1)

Existing dairy operations

During the 15-month period beginning on the date of the initiation of the registration period for the production margin protection program, a dairy operation that is actively engaged as of such date may register with the Secretary

(A)

to receive basic production margin protection; and

(B)

if the dairy operation elects, to purchase supplemental production margin protection.

(2)

New Entrants

A dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the registration period for the production margin protection program, but that, after such date, establishes a new dairy operation, may register with the Secretary during the 1-year period beginning on the date on which the dairy operation first markets milk commercially—

(A)

to receive basic production margin protection; and

(B)

if the dairy operation elects, to purchase supplemental production margin protection.

(d)

Transition from MILC to production margin protection

(1)

Definition of transition period

In this subsection, the term transition period means the period during which the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) and the production margin protection program under this subtitle are both in existence.

(2)

Notice of availability

Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice in the Federal Register to inform dairy operations of the availability of basic production margin protection and supplemental production margin protection, including the terms of the protection and information about the option of dairy operations during the transition period to make an election described in paragraph (3).

(3)

Election

Except as provided in paragraph (4), a dairy operation may elect to participate in either the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) or the production margin protection program under this subtitle for the duration of the transition period.

(4)

Transfer to production margin protection

A dairy operation that elects to participate in the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) during the transition period may, at any time, make a permanent transfer to the production margin protection program.

(e)

Administration fee

(1)

Administration fee required

Except as provided in paragraph (5), a participating dairy operation shall—

(A)

pay an administration fee under this subsection to register to participate in the production margin protection program; and

(B)

pay the administration fee annually thereafter to continue to participate in the production margin protection program.

(2)

Fee amount

The administration fee for a participating dairy operation for a calendar year shall be based on the pounds of milk (in millions) marketed by the participating dairy operation in the previous calendar year, as follows:

Pounds Marketed (in millions) Administration Fee
less than 1 $100
1 to 5 $250
more than 5 to 10 $350
more than 10 to 40 $1,000
more than 40 $2,500.
(3)

Deposit of Fees

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

(4)

Use of Fees

The Secretary shall use administration fees collected under this subsection—

(A)

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

(B)

to cover costs of the Department of Agriculture relating to reporting of dairy market news, carrying out the amendments made by section 1476, and carrying out section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), to the extent funds remain available after operation of subparagraph (A).

(5)

Waiver

The Secretary shall waive or reduce the administration fee required under paragraph (1) in the case of a limited-resource dairy operation, as defined by the Secretary.

(f)

Limitation

A dairy operation may only participate in the production 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.

1413.

Production history of participating dairy operations

(a)

Production history for basic production margin protection

(1)

Determination required

For purposes of providing basic production margin protection, the Secretary shall determine the basic production history of a participating dairy operation.

(2)

Calculation

Except as provided in paragraph (3), the basic production history of a participating dairy operation for basic production margin protection is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 3 calendar years immediately preceding the calendar year in which the participating dairy operation first signed up to participate in the production margin protection program.

(3)

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 basic production history of the participating dairy operation:

(A)

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

(B)

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.

(4)

No change in production history for basic production margin protection

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

(b)

Annual production history for supplemental production margin protection

(1)

Determination required

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

(2)

Calculation

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

(3)

New dairy operations

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

(c)

Required information

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

(1)

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

(2)

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

(d)

Transfer of production histories

(1)

Transfer by sale or lease

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

(2)

Coverage level

(A)

Basic production margin protection

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

(B)

Supplemental production margin protection

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

(e)

Movement and transfer of production history

(1)

Movement and transfer authorized

Subject to paragraph (2), if a participating dairy operation moves from 1 location to another location, the participating dairy operation may transfer the basic production history and annual production history associated with the participating dairy operation.

(2)

Notification requirement

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

(3)

Subsequent occupation of vacated location

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

1414.

Basic production margin protection

(a)

Payment threshold

The Secretary shall make a payment to participating dairy operations in accordance with subsection (b) whenever the average actual dairy production margin for a consecutive 2-month period is less than $4.00 per hundredweight of milk.

(b)

Basic production margin protection payment

The basic production margin protection payment for a participating dairy operation for a consecutive 2-month period shall be equal to the product obtained by multiplying—

(1)

the difference between the average actual dairy production margin for the consecutive 2-month period and $4.00, except that, if the difference is more than $4.00, the Secretary shall use $4.00; by

(2)

the lesser of—

(A)

80 percent of the production history of the participating dairy operation, divided by 6; or

(B)

the actual quantity of milk marketed by the participating dairy operation during the consecutive 2-month period.

1415.

Supplemental production margin protection

(a)

Election of supplemental production margin protection

A participating dairy operation may annually purchase supplemental production margin protection to protect, during the calendar year for which purchased, a higher level of the income of a participating dairy operation than the income level guaranteed by basic production margin protection under section 1414.

(b)

Selection of payment threshold

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

(c)

Coverage percentage

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

(d)

Premiums for supplemental production margin protection

(1)

Premiums required

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

(A)

the coverage percentage elected by the participating dairy operation under subsection (c);

(B)

the annual production history of the participating dairy operation; and

(C)

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

(2)

Premium per hundredweight for first 4 million pounds of production

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

Coverage Level Premium per Cwt.
$4.50 $0.01
$5.00 $0.02
$5.50 $0.035
$6.00 $0.045
$6.50 $0.09
$7.00 $0.40
$7.50 $0.60
$8.00 $0.95.
(3)

Premium per hundredweight for production in excess of 4 million pounds

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

Coverage Level Premium per Cwt.
$4.50 $0.02
$5.00 $0.04
$5.50 $0.10
$6.00 $0.15
$6.50 $0.29
$7.00 $0.62
$7.50 $0.83
$8.00 $1.06.
(4)

Time for payment

In promulgating the rules to initiate the production margin protection program, the Secretary shall provide more than 1 method by which a participating dairy operation that purchases supplemental production margin protection for a calendar year may pay the premium under this subsection for that year in any manner that maximizes participating dairy operation payment flexibility and program integrity.

(e)

Premium obligations

(1)

Pro-ration of premium for new dairy operations

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

(2)

Legal obligation

A participating dairy operation that purchases supplemental production margin protection 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 1 or more producers in 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.

(f)

Supplemental payment threshold

A participating dairy operation with supplemental production margin protection shall receive a supplemental production 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 under subsection (b).

(g)

Supplemental production margin protection payments

(1)

In general

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

(2)

Amount of payment

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

(A)

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

(i)

the average actual dairy production margin for the consecutive 2-month period; or

(ii)

$4.00.

(B)

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

(i)

The annual production history of the participating dairy operation, divided by 6.

(ii)

The actual amount of milk marketed by the participating dairy operation during the consecutive 2-month period.

1416.

Effect of failure to pay administration fees or premiums

(a)

Loss of benefits

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

(1)

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

(2)

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

(b)

Enforcement

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

B

Dairy market stabilization program

1431.

Establishment of dairy market stabilization program

(a)

Program required; purpose

Effective not later than 120 days after the effective date of this subtitle, the Secretary shall establish and administer a dairy market stabilization program applicable to participating dairy operations for the purpose of assisting in balancing the supply of milk with demand when participating dairy operations are experiencing low or negative operating margins.

(b)

Election of stabilization program base calculation method

(1)

Election

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

(2)

Change in calculation method

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

(3)

Calculation methods

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

(A)

The volume of the average monthly milk marketings of the participating dairy operation for the 3 months immediately preceding the announcement by the Secretary that the stabilization program will become effective.

(B)

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

1432.

Threshold for implementation and reduction in dairy payments

(a)

When stabilization program required

Except as provided in subsection (b), the Secretary shall announce that the stabilization program is in effect and order reduced payments by handlers to participating dairy operations that exceed the applicable percentage of the participating dairy operation’s stabilization program base whenever—

(1)

the actual dairy production margin has been $6.00 or less per hundredweight of milk for each of the immediately preceding 2 months; or

(2)

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

(b)

Exception

If any of the conditions described in section 1436(b) have been met during the 2-month period immediately preceding the month in which the announcement under subsection (a) would otherwise be made by the Secretary in the absence of this exception, the Secretary shall—

(1)

suspend the stabilization program;

(2)

refrain from making the announcement under subsection (a) to implement order the stabilization payment; or

(3)

order reduced payments.

(c)

Effective date for implementation of payment reductions

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

1433.

Milk marketings information

(a)

Collection of milk marketing data

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

(b)

Reduce regulatory burden

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

1434.

Calculation and collection of reduced dairy operation payments

(a)

Reduced participating dairy operation payments required

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

(b)

Reductions based on actual dairy production margin

(1)

Reduction requirement 1

If the Secretary determines that the average actual dairy production margin has been less than $6.00 but greater than $5.00 per hundredweight of milk for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:

(A)

98 percent of the stabilization program base of the participating dairy operation.

(B)

94 percent of the marketings of milk for the month by the participating dairy operation.

(2)

Reduction requirement 2

If the Secretary determines that the average actual dairy production margin has been less than $5.00 but greater than $4.00 for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:

(A)

97 percent of the stabilization program base of the participating dairy operation.

(B)

93 percent of the marketings of milk for the month by the participating dairy operation.

(3)

Reduction requirement 3

If the Secretary determines that the average actual dairy production margin has been $4.00 or less for any 1 month, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:

(A)

96 percent of the stabilization program base of the participating dairy operation.

(B)

92 percent of the marketings of milk for the month by the participating dairy operation.

(c)

Continuation of reductions

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

(d)

Payment reduction exception

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

1435.

Remitting funds to the Secretary and use of funds

(a)

Remitting funds

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

(b)

Deposit of remitted funds

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

(c)

Use of funds

(1)

Availability for certain commodity donations

Not later than 90 days after the funds described in subsection (a) are due as determined by the Secretary, the Secretary shall obligate the funds for the purpose of—

(A)

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

(B)

expanding consumption and building demand for dairy products.

(2)

No duplication of effort

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

(3)

Accounting

The Secretary shall keep an accurate account of all funds expended under paragraph (1).

(d)

Annual Report

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

(1)

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

(2)

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

(3)

the impact of the stabilization program on dairy markets.

(e)

Enforcement

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

1436.

Suspension of reduced payment requirement

(a)

Determination of prices

For purposes of this section:

(1)

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

(2)

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

(b)

Suspension thresholds

The stabilization program shall be suspended or the Secretary shall refrain from making the announcement under section 1432(a) if the Secretary determines that—

(1)

the actual dairy production margin is greater than $6.00 per hundredweight of milk for 2 consecutive months;

(2)

the actual dairy production margin is equal to or less than $6.00 (but greater than $5.00) for 2 consecutive months, and during the same 2 consecutive months—

(A)

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

(B)

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

(3)

the actual dairy production margin is equal to or less than $5.00 (but greater than $4.00) for 2 consecutive months, and during the same 2 consecutive months—

(A)

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

(B)

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

(4)

the actual dairy production margin is equal to or less than $4.00 for 2 consecutive months, and during the same 2 consecutive months—

(A)

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

(B)

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

(c)

Implementation by handlers

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

(d)

Condition on resumption of stabilization program

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

(1)

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

(2)

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

1437.

Enforcement

(a)

Unlawful act

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

(b)

Order

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

(c)

Appeal

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

(d)

Noncompliance with order

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

1438.

Audit requirements

(a)

Audits of dairy operation and handler compliance

(1)

Audits authorized

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

(2)

Sample of dairy operations

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

(b)

Submission of results

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

1439.

Study; report

(a)

In general

The Secretary shall direct the Office of the Chief Economist to conduct a study of the impacts of the program established under section 1431(a).

(b)

Considerations

The study conducted under subsection (a) shall consider—

(1)

the economic impact of the program throughout the dairy product value chain, including the impact on producers, processors, domestic customers, export customers, actual market growth and potential market growth, farms of different sizes, and different regions and States; and

(2)

the impact of the program on the competitiveness of the United States dairy industry in international markets.

(c)

Report

Not later than December 1, 2017, the Office of the Chief Economist shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subsection (a).

C

Administration

1451.

Duration

The production margin protection program and the stabilization program shall end on December 31, 2018.

1452.

Administration and enforcement

(a)

In general

The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out the production margin protection, supplemental production margin protection, and market stabilization programs.

(b)

Reconstitution and eligibility issues

(1)

Reconstitution

Using authorities under section 1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the sole purpose of the dairy producer—

(A)

receiving basic margin protection;

(B)

purchasing supplemental margin protection; or

(C)

avoiding participation in the market stabilization program.

(2)

Eligibility issues

Using authorities under section 1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary shall promulgate regulations—

(A)

to prohibit a scheme or device;

(B)

to provide for equitable relief; and

(C)

to provide for other issues affecting eligibility and liability issues.

(3)

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 programs described in subsection (a).

II

Dairy market transparency

1461.

Dairy product mandatory reporting

(a)

Definitions

Section 272(1)(A) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by inserting , or any other products that may significantly aid price discovery in the dairy markets, as determined by the Secretary after of 1937.

(b)

Mandatory reporting for dairy products

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

(1)

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

(1)

In general

In establishing the program, the Secretary shall only—

(A)
(i)

subject to the conditions described in paragraph (2), require each manufacturer to report to the Secretary, more frequently than once per month, information concerning the price, quantity, and moisture content of dairy products sold by the manufacturer and any other product characteristics that may significantly aid price discovery in the dairy markets, as determined by the Secretary; and

(ii)

modify the format used to provide the information on the day before the date of enactment of this subtitle to ensure that the information can be readily understood by market participants; and

(B)

require each manufacturer and other person storing dairy products (including dairy products in cold storage) to report to the Secretary, more frequently than once per month, information on the quantity of dairy products stored.

; and

(2)

in paragraph (2), by inserting or those that may significantly aid price discovery in the dairy markets after Federal milk marketing order each place it appears in subparagraphs (A), (B), and (C).

1462.

Federal milk marketing order information

(a)

Information clearinghouse

(1)

In general

The Secretary shall, on behalf of each milk marketing order issued under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, establish an information clearinghouse for the purposes of educating the public about the Federal milk marketing order system and any marketing order referenda, including proposal information and timelines that shall be kept current and updated as information becomes available.

(2)

Requirements

Information under paragraph (1) shall include—

(A)

information on procedures by which cooperatives vote;

(B)

if applicable, information on the manner by which producers may cast an individual ballot;

(C)

in applicable, instructions on the manner in which to vote online;

(D)

due dates for each specific referendum;

(E)

the text of each referendum question under consideration;

(F)

a description in plain language of the question;

(G)

any relevant background information to the question; and

(H)

any other information that increases Federal milk marketing order transparency.

(b)

Notification list for upcoming referendum

Each Federal milk marketing order shall—

(1)

make available the information described in subsection (b) through an Internet site; and

(2)

publicize the information in major agriculture and dairy-specific publications on upcoming referenda.

(c)

Study

(1)

In general

The Secretary shall conduct a study of the feasibility of establishing 2 classes of milk, a fluid class and a manufacturing class, to replace the 4–class system in effect on the date of enactment of this Act in administering Federal milk marketing orders.

(2)

Federal Milk Market Order Review Commission

The Secretary may elect to use the Federal Milk Market Order Review Commission established under section 1509(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1726), or documents of the Commission, to conduct all or part of the study.

(3)

Report

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study required under this subsection, including any recommendations.

III

Repeal or reauthorization of other dairy-Related provisions

1471.

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

(a)

Repeal of dairy product price support program

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

(b)

Repeal of milk income loss contract program

(1)

Payments under milk income loss contract program

Section 1506(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773(c)(3)) is amended—

(A)

in subparagraph (A), by inserting and after the semicolon;

(B)

in subparagraph (B), by striking August 31, 2013, 45 percent; and and inserting June 30, 2014, 45 percent.; and

(C)

by striking subparagraph (C).

(2)

Extension

Section 1506(h)(1) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is amended by striking September 30, 2013 and inserting June 30, 2014.

(3)

Repeal

Effective July 1, 2014, section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.

1472.

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.

1473.

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.

1474.

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.

1475.

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.

1476.

Extension of Federal Milk Marketing Order Review Commission

Section 1509(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1726) is amended by inserting or other funds after Subject to the availability of appropriations.

IV

Federal milk marketing order reform

1481.

Federal milk marketing orders

(a)

Amendments

The Secretary shall provide an analysis on the effects of amending each Federal milk marketing order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937 (in this part referred to as a milk marketing order), as required by this section.

(b)

Use of end-Product price formulas

In carrying out subsection (a), the Secretary shall—

(1)

consider replacing the use of end-product price formulas with other pricing alternatives; and

(2)

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 findings of the Secretary on the impact of the action considered under paragraph (1).

V

Effective date

1491.

Effective date

Except as otherwise provided in this subtitle, this subtitle and the amendments made by this subtitle take effect on October 1, 2013.

E

Supplemental agricultural disaster assistance programs

1501.

Supplemental agricultural disaster assistance programs

(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

(A)

In general

The term farm means, in relation to an eligible producer on a farm, the total of all crop acreage in all counties that is planted or intended to be planted for harvest, for sale, or on-farm livestock feeding (including native grassland intended for haying) by the eligible producer.

(B)

Aquaculture

In the case of aquaculture, the term farm means, in relation to an eligible producer on a farm, all fish being produced in all counties that are intended to be harvested for sale by the eligible producer.

(C)

Honey

In the case of honey, the term farm means, in relation to an eligible producer on a farm, all bees and beehives in all counties that are intended to be harvested for a honey crop for sale by the eligible producer.

(3)

Farm-raised fish

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

(4)

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.

(b)

Livestock indemnity payments

(1)

Payments

For each of fiscal years 2012 through 2018, 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; 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 65 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)

Establishment

There is established a livestock forage disaster program to provide 1 source for livestock forage disaster assistance for weather-related forage losses, as determined by the Secretary, by combining—

(A)

the livestock forage assistance functions of—

(i)

the noninsured crop disaster assistance program established by section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and

(ii)

the emergency assistance for livestock, honey bees, and farm-raised fish program under section 531(e) of the Federal Crop Insurance Act (7 U.S.C. 1531(e)) (as in existence on the day before the date of enactment of this Act); and

(B)

the livestock forage disaster program under section 531(d) of the Federal Crop Insurance Act (7 U.S.C. 1531(d)) (as in existence on the day before the date of enactment of this Act).

(2)

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 an eligible forage loss, as determined by the Secretary, the eligible livestock producer—

(I)

owned;

(II)

leased;

(III)

purchased;

(IV)

entered into a contract to purchase;

(V)

was a contract grower; or

(VI)

sold or otherwise disposed of due to an eligible forage loss during—

(aa)

the current production year; or

(bb)

subject to paragraph (4)(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 eligible forage loss, 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 forage loss

The term eligible forage loss means 1 or more forage losses that occur due to weather-related conditions, including drought, flood, blizzard, hail, excessive moisture, hurricane, and fire, occurring during the normal grazing period, as determined by the Secretary, if the forage—

(i)

is grown on land that is native or improved pastureland with permanent vegetative cover; or

(ii)

is a crop planted specifically for the purpose of providing grazing for covered livestock of an eligible livestock producer.

(D)

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 covered 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 an eligible forage loss;

(III)

certifies the eligible forage 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.

(E)

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 (4)(D)(i), that would be expected from the grazing land or pastureland for livestock during the normal grazing period, in the absence of an eligible forage loss that diminishes the production of the grazing land or pastureland.

(F)

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 (4)(D)(i).

(3)

Program

For each of fiscal years 2012 through 2018, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide compensation under paragraphs (4) through (6), as determined by the Secretary for eligible forage losses affecting covered livestock of eligible livestock producers.

(4)

Assistance for eligible forage losses due to drought conditions

(A)

Eligible forage losses

(i)

In general

An eligible livestock producer of covered livestock may receive assistance under this paragraph for eligible forage losses that occur due to drought 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 paragraph for eligible forage 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.), unless the land is grassland eligible for the conservation reserve program under section 1231(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001).

(B)

Monthly payment rate

(i)

In general

Except as provided in clause (ii), the payment rate for assistance for 1 month under this paragraph 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 Farm Service Agency 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).

(iii)

Annual payment based on drought conditions determined by means other than the U.S. Drought Monitor

(I)

In general

An eligible livestock producer that owns grazing land or pastureland that is physically located in a county that has experienced on average, over the preceding calendar year, precipitation levels that are 50 percent or more below normal levels, according to sufficient documentation as determined by the Secretary, may be eligible, subject to a determination by the Secretary, to receive assistance under this paragraph in an amount equal to not more than 1 monthly payment using the monthly payment rate under subparagraph (B).

(II)

No duplicate payment

A producer may not receive a payment under both clause (ii) and this clause.

(5)

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 eligible forage 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 (4)(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.

(6)

Assistance for eligible forage losses due to other than drought or fire

(A)

Eligible forage losses

(i)

In general

Subject to subparagraph (B), an eligible livestock producer of covered livestock may receive assistance under this paragraph for eligible forage losses that occur due to weather-related conditions other than drought or fire 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 paragraph for eligible forage 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.), unless the land is grassland eligible for the conservation reserve program under section 1231(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001).

(B)

Payments for eligible forage losses

(i)

In general

The Secretary shall provide assistance under this paragraph to an eligible livestock producer for eligible forage losses that occur due to weather-related conditions other than—

(I)

drought under paragraph (4); and

(II)

fire on public managed land under paragraph (5).

(ii)

Terms and conditions

The Secretary shall establish terms and conditions for assistance under this paragraph that are consistent with the terms and conditions for assistance under this subsection.

(7)

No duplicative payments

An eligible livestock producer may elect to receive assistance for eligible forage losses under either paragraph (4), (5), or (6), if applicable, but may not receive assistance under more than 1 of those paragraphs for the same loss, as determined by the Secretary.

(8)

Determinations by Secretary

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

(d)

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

(1)

In general

For each of fiscal years 2012 through 2018, the Secretary shall use not more than $5,000,000 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, adverse weather, or other conditions, such as blizzards and wildfires, as determined by the Secretary, that are not covered under subsection (b) or (c).

(2)

Use of funds

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

(3)

Availability of funds

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

(e)

Tree assistance program

(1)

Definitions

In this subsection:

(A)

Eligible orchardist

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

(B)

Natural disaster

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

(C)

Nursery tree grower

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

(D)

Tree

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

(2)

Eligibility

(A)

Loss

Subject to subparagraph (B), for each of fiscal years 2012 through 2018, 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 $100,000 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)

Payments

(1)

Payment limitations

(A)

Definitions of legal entity and person

In this subsection, the terms legal entity and person have the meanings 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 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 $100,000 for any crop year.

(C)

Direct attribution

Subsections (d) and (e) 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.

(2)

Payment delivery

The Secretary shall make payments under this section after October 1, 2013, for losses incurred in the 2012 and 2013 fiscal years, and as soon as practicable for losses incurred in any year thereafter.

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 11001 and 11011 shall be made without regard to—

(A)

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

(B)

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

(C)

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

(3)

Congressional review of agency rulemaking

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

(d)

Adjustment Authority Related to Trade Agreements Compliance

(1)

Required determination; adjustment

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

(2)

Congressional notification

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

1602.

Suspension of permanent price support authority

(a)

Agricultural Adjustment Act of 1938

The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2014 through 2018 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 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 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act and through December 31, 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 peanuts and other covered commodities

The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under subtitle A of title I of the Agriculture Reform, Food, and Jobs Act of 2013 for—

(1)

peanuts may not exceed $50,000; and

(2)

1 or more other covered commodities may not exceed $50,000.

.

(b)

Limitation on marketing loan gains and loan deficiency payments for peanuts and other covered commodities

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

(d)

Limitation on marketing loan gains and loan deficiency payments for peanuts and other covered commodities

The total amount of marketing loan gains and loan deficiency payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under subtitle B of the Agriculture Reform, Food, and Jobs Act of 2013 (or a successor provision) for—

(1)

peanuts may not exceed $75,000; and

(2)

1 or more other covered commodities may not exceed $75,000.

.

(c)

Conforming amendments

(1)

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

(A)

in subsection (a)(1), by striking section 1001 of the Food, Conservation, and Energy Act of 2008 and inserting section 1104 of the Agriculture Reform, Food, and Jobs Act of 2013 ;

(B)

in subsection (e)

(i)

in paragraph (1) , by striking subsections (b) and (c) and a program described in paragraphs (1)(C) and inserting subsection (b) and a program described in paragraph (1)(B); and

(ii)

in paragraph (3)(B), by striking subsections (b) and (c) each place it appears and inserting subsection (b);

(C)

in subsection (f)

(i)

by striking or title XII each place it appears in paragraphs (5)(A) and (6)(A) and inserting , title I of the Agriculture Reform, Food, and Jobs Act of 2013 , or title XII;

(ii)

in paragraph (2), by striking Subsections (b) and (c) and inserting Subsection (b);

(iii)

in paragraph (4)(B), by striking subsection (b) or (c) and inserting subsection (b);

(iv)

in paragraph (5)

(I)

in subparagraph (A), by striking subsection (d) and inserting subsection (c); and

(II)

in subparagraph (B), by striking subsection (b), (c), or (d) and inserting subsection (b) or (c); and

(v)

in paragraph (6)

(I)

in subparagraph (A), by striking subsection (d), except as provided in subsection (g) and inserting subsection (c), except as provided in subsection (f); and

(II)

in subparagraph (B), by striking subsections (b), (c), and (d) and inserting subsections (b) and (c);

(D)

in subsection (g)

(i)

in paragraph (1)

(I)

bv striking subsection (f)(6)(A) and inserting subsection (e)(6)(A) and

(II)

by striking subsection (b) or (c) and inserting subsection (b); and

(ii)

in paragraph (2)(A), by striking subsections (b) and (c) and inserting subsection (b); and

(E)

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

(2)

Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—

(A)

in subsection (a), by striking subsections (b) and (c) and inserting subsection (b); and

(B)

in subsection (b)(1), by striking subsection (b) or (c) and inserting subsection (b).

(3)

Section 1001B(a) of the Food Security Act of 1985 (7 U.S.C. 1308–2(a)) is amended in the matter preceding paragraph (1) by striking subsections (b) and (c) and inserting subsection (b).

(4)

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 Agriculture Reform, Food, and Jobs Act of 2013 , after 2008,.

(d)

Application

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

1604.

Payments limited to active farmers

Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—

(1)

in subsection (b)(2)

(A)

by striking or active personal management each place it appears in subparagraphs (A)(i)(II) and (B)(ii); and

(B)

in subparagraph (C), by striking , as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management and inserting are met by partners or members making a significant contribution of personal labor, those partners or members; and

(2)

in subsection (c)

(A)

in paragraph (1)

(i)

by striking subparagraph (A) and inserting the following:

(A)

the landowner share-rents the land at a rate that is usual and customary;

;

(ii)

in subparagraph (B), by striking the period at the end and inserting ; and; and

(iii)

by adding at the end the following:

(C)

the share of the payments received by the landowner is commensurate with the share of the crop or income received as rent.

;

(B)

in paragraph (2)(A), by striking active personal management or;

(C)

in paragraph (5)

(i)

by striking (5) and all that follows through (A) In general.—A person and inserting the following:

(5)

Custom farming services

A person

;

(ii)

by inserting under usual and customary terms after services; and

(iii)

by striking subparagraph (B); and

(D)

by adding at the end the following:

(7)

Farm managers

A person who otherwise meets the requirements of this subsection other than (b)(2)(A)(i)(II) shall be considered to be actively engaged in farming, as determined by the Secretary, with respect to the farming operation, including a farming operation that is a sole proprietorship, a legal entity such as a joint venture or general partnership, or a legal entity such as a corporation or limited partnership, if the person—

(A)

makes a significant contribution of management to the farming operation necessary for the farming operation, taking into account—

(i)

the size and complexity of the farming operation; and

(ii)

the management requirements normally and customarily required by similar farming operations;

(B)

is the only person in the farming operation qualifying as actively engaged in farming;

(C)

does not use the management contribution under this paragraph to qualify as actively engaged in more than 1 farming operation; and

(D)

manages a farm operation that does not substantially share equipment, labor, or management with persons or legal entities that with the person collectively receive, directly or indirectly, an amount equal to more than the applicable limits under section 1001(b).

.

1605.

Adjusted gross income limitation

(a)

In general

Section 1001D(b)) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended by striking paragraph (1) and inserting the following:

(1)

Commodity programs

(A)

Limitation

Notwithstanding any other provision of law, a person or legal entity shall not be eligible to receive any benefit described in subparagraph (B) during a crop, fiscal or program year, as appropriate, if the average adjusted gross income (or comparable measure over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary) of the person or legal entity exceeds $750,000.

(B)

Covered benefits

Subparagraph (A) applies with respect to the following:

(i)

A payment under section 1105 of the Agriculture Reform, Food, and Jobs Act of 2013 .

(ii)

A marketing loan gain or loan deficiency payment under subtitle B of title I of the Agriculture Reform, Food, and Jobs Act of 2013 .

(iii)

A payment under subtitle E of the Agriculture Reform, Food, and Jobs Act of 2013 .

.

.

(b)

Application

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

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 2012 and inserting 2018 .

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 Agriculture Reform, Food, and Jobs Act of 2013 .

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.

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)

Determination of appealability of agency decisions

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

(d)

Determination of appealability of agency decisions

(1)

Definition of a matter of general applicability

In this subsection, the term a matter of general applicability means a matter that challenges the merits or authority of a rule, procedure, local or national program practice, or determination of an agency that applies, or can apply, to more than 1 interested party as opposed to the particular application of the rule, procedure, or practice to a specific set of facts or the facts themselves as the facts apply to 1 particular interested party.

(2)

Matters not subject to appeal

The Division may not hear appeals—

(A)

unless the determination of the agency is adverse to the appellant;

(B)

that involve matters of general applicability; and

(C)

that involve requests for equitable relief unless the equitable relief has been denied by the agency.

(3)

Equitable relief

(A)

In general

An appeal requesting equitable relief may not be granted by the Director to an appellant unless, using the rules and practices that the agency applies to itself, the agency could in fact have granted the relief because the appellant acted in good faith, but failed to fully comply with the requirement of the rule or practice of the agency.

(B)

Remand

If it cannot be determined whether the agency would have granted equitable relief because the appellant acted in good faith, but failed to comply with the rule or practice of the agency, the matter shall be remanded to the agency for further consideration.

(4)

Determination of appealability

If an officer, employee, or committee of an agency determines that a decision is not appealable and a participant appeals the decision to the Director, the Director shall determine whether the decision is adverse to the individual participant and appealable or is a matter of general applicability and not subject to appeal.

(5)

Appealability of determination

The determination of the Director as to whether a decision is appealable is final.

.

(c)

Equitable relief

Section 278 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6998) is amended by striking subsection (d).

(d)

Conforming amendment

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

(1)

in paragraph (6)(C), by striking or at the end;

(2)

in paragraph (7), by striking the period at the end and inserting ; or; and

(3)

by adding at the end the following:

(8)

the authority of the Secretary to carry out amendments to sections 272 and 278 made by the Agriculture Reform, Food, and Jobs Act of 2013 .

.

1610.

Technical corrections

(a)

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)
(1)

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)

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).

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)

Streamlining

In implementing this title, the Secretary shall, to the maximum extent practicable—

(1)

seek to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements;

(2)

improve coordination, information sharing, and administrative work with the Risk Management Agency and the Natural Resources Conservation Service; and

(3)

take advantage of new technologies to enhance efficiency and effectiveness of program delivery to producers.

(b)

Implementation

On October 1, 2013, the Secretary shall make available to the Farm Service Agency to carry out this title $100,000,000.

II

Conservation

A

Conservation Reserve Program

2001.

Extension and enrollment requirements of conservation reserve program

(a)

Extension

Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 2012 and inserting 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 Agriculture Reform, Food, and Jobs Act of 2013 ;

(2)

by striking paragraph (2) and redesignating paragraph (3) as paragraph (2);

(3)

by inserting before paragraph (4) the following:

(3)

grassland that—

(A)

contains forbs or shrubland (including improved rangeland and pastureland) for which grazing is the predominant use;

(B)

is located in an area historically dominated by grassland; 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 and riparian buffers devoted to trees, shrubs, or grasses; and

(5)

by striking paragraph (5) and inserting the following:

(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 in a 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

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

(d)

Enrollment

(1)

Maximum acreage enrolled

The Secretary may maintain in the conservation reserve at any 1 time during—

(A)

fiscal year 2013, no more than 32,000,000 acres;

(B)

fiscal year 2014, no more than 30,000,000 acres;

(C)

fiscal year 2015, no more than 27,500,000 acres;

(D)

fiscal year 2016, no more than 26,500,000 acres;

(E)

fiscal year 2017, no more than 25,500,000 acres; and

(F)

fiscal year 2018, no more than 25,000,000 acres.

(2)

Grassland

(A)

Limitation

For purposes of applying the limitations in paragraph (1), no more than 1,500,000 acres of the land described in subsection (b)(3) may be enrolled in the program at any 1 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 at least once during each fiscal year.

.

(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:

(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 this section, 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)

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:

1231B.

Farmable wetland program

;

and
(2)

in subsection (f)(2), by striking section 1234(c)(2)(B) and inserting section 1234(c)(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 section 1233(b);.

(b)

Conservation plan requirements

Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (b) and inserting the following:

(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, 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 land normally devoted to the production of an agricultural commodity on a farm or ranch to a less intensive use;

(B)

the retirement of any cropland base and allotment history that the owner or operator agrees to retire permanently; and

(C)

the development and management of grassland for multiple natural resource conservation benefits, including soil, water, air, and wildlife.

(b)

Specified activities permitted

The Secretary shall permit certain activities or commercial uses of land that is subject to the contract 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 drought, flooding, or other emergency without any reduction in the rental rate;

(2)

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 (including habitat during the primary nesting season for critical birds in the area); and

(B)

described in subparagraph (B) or (C) of paragraph (3);

(3)

consistent with the conservation of soil, water quality, and wildlife habitat (including habitat during the primary nesting season for critical birds in the area) and in exchange for a reduction of not less than 25 percent in the annual rental rate for the acres covered by the authorized activity—

(A)

managed harvesting and other commercial use (including the managed harvesting of biomass), except that in permitting those activities the Secretary, in coordination with the State technical committee—

(i)

shall develop appropriate vegetation management requirements; and

(ii)

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

(B)

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

(C)

routine grazing, except that in permitting 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

(D)

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; and

(4)

the intermittent and seasonal use of vegetative buffer practices incidental to agricultural production on land adjacent to the buffer such that the permitted use does not destroy the permanent vegetative cover.

(c)

Authorized activities on grassland

Notwithstanding section 1232(a)(8), 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 primary nesting season for critical birds in the area.

(3)

Fire presuppression, rehabilitation, and construction of fire breaks.

(4)

Grazing-related activities, such as fencing and livestock watering.

(d)

Resource conserving use

(1)

In general

Beginning on the date that is 1 year before the date of termination of a contract under the program, the Secretary shall allow an owner or operator to make conservation and land improvements that facilitate maintaining protection of highly erodible 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)

Reenrollment prohibited

Land altered under paragraph (1) may not be reenrolled in the conservation reserve program for 5 years.

(4)

Payment

The Secretary shall provide an annual payment that is reduced in an amount commensurate with any income or other compensation received as a result of the activities carried out under paragraph (1).

.

2005.

Payments

(a)

Trees, windbreaks, shelterbelts, and wildlife corridors

Section 1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is amended—

(1)

in clause (i), by inserting and after the semicolon;

(2)

by striking clause (ii); and

(3)

by redesignating clause (iii) as clause (ii).

(b)

Incentives

Section 1234(b)(3)(B) of the Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amended—

(1)

in clause (i), by inserting , practices to improve the condition of resources on the land, after operator); and

(2)

by adding at the end the following:

(iii)

Incentives

In making rental payments to an owner or operator of land described in subparagraph (A), the Secretary may provide incentive payments sufficient to encourage proper thinning and practices to improve the condition of resources on the land.

.

(c)

Annual rental payments

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

(1)

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

(2)

by striking paragraph (2) and inserting the following:

(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)

Grassland

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)

(A)

by striking The Secretary and inserting the following:

(i)

Survey

The Secretary

; and

(B)

by adding at the end the following:

(ii)

Use

The Secretary may use the survey of dryland cash rental rates described in clause (i) as a factor in determining rental rates under this section as the Secretary determines appropriate.

.

(d)

Payment schedule

Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is amended by striking subsection (d) and inserting the following:

(d)

Payment schedule

(1)

In general

Except as otherwise provided in this section, payments under this subchapter shall be made in cash in such amount and on such time schedule as is agreed on and specified in the contract.

(2)

Source

Payments under this subchapter shall be made using the funds of the Commodity Credit Corporation.

(3)

Advance payment

Payments under this subchapter may be made in advance of determination of performance.

.

(e)

Payment limitation

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

(1)

in paragraph (1), by striking , including rental payments made in the form of in-kind commodities,;

(2)

by striking paragraph (3); and

(3)

by redesignating paragraph (4) as paragraph (2).

2006.

Contract requirements

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

(1)

in paragraph (1)

(A)

in the matter preceding subparagraph (A), by striking Duties and all that follows through a beginning farmer and inserting Transition to covered farmer or rancher.—In the case of a contract modification approved in order to facilitate the transfer of land subject to a contract from a retired farmer or rancher to a beginning farmer;

(B)

in subparagraph (D), by striking the farmer or rancher and inserting the covered farmer or rancher; and

(C)

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 provided under section 1234(c)(2)(A)(ii) .

2007.

Conversion of land subject to contract to other conserving uses

Section 1235A of the Food Security Act of 1985 (16 U.S.C. 3835a) is repealed.

2008.

Effective date

(a)

In general

The amendments made by this subtitle shall take effect on October 1, 2013, except, the amendment made by section 2001(d), which shall take effect on the date of enactment of this Act.

(b)

Effect on existing contracts

(1)

In general

Except as provided in paragraph (2), the amendments made by this subtitle shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before October 1, 2013, or any payments required to be made in connection with the contract.

(2)

Updating of existing contracts

The Secretary shall permit an owner or operator with a contract entered into under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before October 1, 2013, to update the contract to reflect the activities and uses of land under contract permitted under the terms and conditions of paragraphs (1) and (2) of section 1233(b) of that Act (as amended by section 2004).

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

(ii)

land 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)

pastureland;

(v)

nonindustrial private forest land; and

(vi)

other agricultural land (including cropped woodland, marshes, and agricultural land 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 the 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.

(B)

Land enrolled in the Agricultural Conservation Easement Program in a wetland easement.

(C)

Land enrolled in the conservation security program.

(2)

Conversion to cropland

Eligible land used for crop production after October 1, 2013, that had not been planted, considered to be planted, or devoted to crop production for at least 4 of the 6 years preceding that date shall not be the basis for any payment under the program, unless the land does not meet the requirement because—

(A)

the land had previously been enrolled in the conservation reserve program;

(B)

the land has been maintained using long-term crop rotation practices, as determined by the Secretary; or

(C)

the land is incidental land needed for efficient operation of the farm or ranch, as determined by the Secretary.

1238F.

Stewardship contracts

(a)

Submission of contract offers

To be eligible to participate in the conservation stewardship program, a producer shall submit 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, is meeting 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 on the 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 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 where 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)

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

(II)

to 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, to refund or accept adjustments to the payments provided to the producer, as the Secretary determines to be appropriate;

(F)

include provisions in accordance with paragraphs (3) and (4) of this section; and

(G)

include any additional provisions the Secretary determines are necessary to carry out the program.

(3)

Change of interest in land subject to a contract

(A)

In general

At the time of application, a producer shall have control of the eligible land to be enrolled in the program. Except as provided in subparagraph (B), a change in the interest of a producer in eligible land covered by a contract under the program shall result in the termination of the contract with regard to that land.

(B)

Transfer of duties and rights

Subparagraph (A) shall not apply if—

(i)

within a reasonable period of time (as determined by the Secretary) after the date of the change in the interest in all or a portion of the land covered by a contract under the program, the transferee of the land provides written notice to the Secretary that 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 existing contract;

(2)

agrees to adopt and continue to integrate conservation activities across the entire agricultural operation as determined by the Secretary; and

(3)

agrees, at a minimum, to meet or exceed the stewardship threshold for at least 2 additional priority resource concerns on the agricultural operation by the end of the contract period.

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 subparagraph (2).

(b)

Allocation to states

The Secretary shall allocate acres to States for enrollment, based—

(1)

primarily on each State’s proportion of eligible land to the total acreage of eligible land in all States; and

(2)

also on consideration of—

(A)

the extent and magnitude of the conservation needs associated with agricultural production in each State;

(B)

the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and

(C)

other considerations to achieve equitable geographic distribution of funds, as determined by the Secretary.

(c)

Acreage enrollment limitation

During the period beginning on October 1, 2013, and ending on September 30, 2022, the Secretary shall, to the maximum extent practicable—

(1)

enroll in the program an additional 10,348,000 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 operation of the producer at the time the contract offer is accepted by the Secretary.

(2)

Payment amount

The amount of the conservation stewardship annual payment shall be determined by the Secretary and based, to the maximum extent practicable, on the following factors:

(A)

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

(B)

Income forgone by the producer.

(C)

Expected conservation benefits.

(D)

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

(E)

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

(F)

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

(G)

Such other factors as determined 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 stewardship payments, 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 stewardship payments in each fiscal year; and

(B)

make stewardship 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 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 the 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)

Effective date

The amendment made by this section shall take effect on October 1, 2013.

(c)

Effect on existing contracts

(1)

In general

The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) before October 1, 2013, 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)) may be used to administer and make payments to program participants 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:

(B)

develop and improve 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:

(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;

(G)

invasive species management; or

(H)

other resource issues of regional or national significance, as determined by the Secretary.

; and

(B)

in paragraph (4)

(i)

in subparagraph (A) in the matter preceding clause (i), by inserting , veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))), before or a beginning farmer or rancher; and

(ii)

by striking subparagraph (B) and inserting the following:

(B)

Advance payments

(i)

In general

Not more than 30 percent of the amount determined under subparagraph (A) may be provided in advance for the purpose of purchasing materials or contracting.

(ii)

Return of funds

If funds provided in advance are not expended during the 90-day period beginning on the date of receipt of the funds, the funds shall be returned within a reasonable time frame, as determined by the Secretary.

;

(4)

by striking subsection (f) and inserting the following:

(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:

(g)

Wildlife habitat incentive practice

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

(1)

upland wildlife habitat;

(2)

wetland wildlife habitat;

(3)

habitat for threatened and endangered species;

(4)

fish habitat;

(5)

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

(6)

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

.

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—

(1)

in subsection (a)

(A)

by striking by the person or entity during any six-year period, and inserting during fiscal years 2014 through 2018; and

(B)

by striking federally recognized and all that follows through the period and inserting Indian tribes under section 1244(l).; and

(2)

in subsection (b)(2), by striking any six-year period and inserting fiscal years 2014 through 2018.

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 (b)(2), by striking 2012 and inserting 2018; and

(2)

by adding at the end the following:

(c)

Reporting

Not later than December 31, 2014, and every 2 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.

Effective date

(a)

In general

The amendments made by this subtitle shall take effect on October 1, 2013.

(b)

Effect on existing contracts

The amendments made by this title shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) before October 1, 2013, 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:

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;

(2)

restore, protect, and enhance wetland on eligible land;

(3)

protect the agricultural use, 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 purposes of protecting natural resources and the agricultural nature of the land, and of promoting agricultural viability for future generations; and

(B)

permits the landowner the right to continue agricultural production and related uses subject to an agricultural land easement plan.

(2)

Eligible entity

The term eligible entity means—

(A)

an agency of State or local government or an Indian tribe (including 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 from an eligible entity;

(ii)

that—

(I)

has prime, unique, or other productive soil;

(II)

contains historical or archaeological resources; or

(III)

the protection of which will further a State or local policy consistent with the purposes of the program; and

(iii)

that is—

(I)

cropland;

(II)

rangeland;

(III)

grassland or land that contains forbs, or shrubland for which grazing is the predominant use;

(IV)

pastureland; or

(V)

nonindustrial private forest land that contributes to the economic viability of an offered parcel or serves as a buffer to protect such land from development;

(B)

in the case of a wetland easement, a wetland or related area, including—

(i)

farmed or converted wetland, together with the 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 a closed basin lake or pothole, as determined by the Secretary, together (where practicable) with the adjacent land that is functionally dependent on the cropland or grassland;

(iii)

farmed wetland and adjoining land that—

(I)

is enrolled in the conservation reserve program;

(II)

has the highest wetland functions and values; and

(III)

is likely to return to production after the land leaves the conservation reserve program;

(iv)

riparian areas that link wetland that is protected by easements or some other device that achieves the same purpose as an easement; or

(v)

other wetland of an owner that would not otherwise be eligible if the Secretary determines that the inclusion of such wetland in such easement would significantly add to the functional value of the easement; and

(C)

in the case of both an agricultural land easement or wetland easement, other land that is incidental to eligible land if the Secretary determines that it is necessary for the efficient administration of the easements under this program.

(4)

Program

The term program means the Agricultural Conservation Easement Program established by this subtitle.

(5)

Wetland easement

The term wetland easement means a reserved interest in eligible land that—

(A)

is defined and delineated in a deed; and

(B)

stipulates—

(i)

the rights, title, and interests in land conveyed to the Secretary; and

(ii)

the rights, title, and interests in land that are reserved to the landowner.

1265B.

Agricultural land easements

(a)

Availability of assistance

The Secretary shall facilitate and provide funding for—

(1)

the purchase by eligible entities of agricultural land easements and other interests in eligible land; and

(2)

technical assistance to provide for the conservation of natural resources pursuant to an agricultural land easement plan.

(b)

Cost-Share assistance

(1)

In general

The Secretary shall provide cost-share assistance to eligible entities for purchasing agricultural land easements to protect the agricultural use, including grazing, and related conservation values of eligible land.

(2)

Scope of assistance available

(A)

Federal share

Subject to subparagraph (C), an agreement described in paragraph (4) shall provide for a Federal share determined by the Secretary of an amount not to exceed 50 percent of the fair market value of the agricultural land easement or other interest in land, as determined by the Secretary using—

(i)

the Uniform Standards of Professional Appraisal Practices;

(ii)

an area-wide market analysis or survey; or

(iii)

another industry approved method.

(B)

Non-Federal share

(i)

In general

Subject to subparagraph (C), under the agreement, the eligible entity shall provide a share that is at least equivalent to that provided by the Secretary.

(ii)

Source of contribution

An eligible entity may include as part of its share a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the private landowner if the eligible entity contributes its own cash resources in an amount that is at least 50 percent of the amount contributed by the Secretary.

(C)

Waiver authority

In the case of grassland of special environmental significance, as determined by the Secretary, the Secretary may provide up to 75 percent of the fair market value of the agricultural land easement.

(3)

Evaluation and ranking of applications

(A)

Criteria

The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.

(B)

Considerations

In establishing the criteria, the Secretary shall emphasize support for—

(i)

protecting agricultural uses and related conservation values of the land; and

(ii)

maximizing the protection of areas devoted to agricultural use.

(C)

Bidding down

If the Secretary determines that 2 or more applications for cost-share assistance are comparable in achieving the purpose of the program, the Secretary shall not assign a higher priority to any of those applications solely on the basis of lesser cost to the program.

(4)

Agreements with eligible entities

(A)

In general

The Secretary shall enter into agreements with eligible entities to stipulate the terms and conditions under which the eligible entity is permitted to use cost-share assistance provided under this section.

(B)

Length of agreements

An agreement shall be for a term that is—

(i)

in the case of an eligible entity certified under the process described in paragraph (5), a minimum of 5 years; and

(ii)

for all other eligible entities, at least 3, but not more than 5 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)

are permanent or for the maximum duration allowed under applicable State law;

(iii)

permit effective enforcement of the conservation purposes of such easements, including appropriate restrictions depending on the purposes for which the easement is acquired;

(iv)

include a right of enforcement for the Secretary if terms of the easement are not enforced by the holder of the easement;

(v)

subject the land 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 grassland according to a grassland 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

(vi)

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 agreement may be terminated; and

(ii)

the Secretary may require the eligible entity to refund all or part of any payments received by the entity under the program, with interest on the payments as determined appropriate by the Secretary.

(5)

Certification of eligible entities

(A)

Certification process

The Secretary shall establish a process under which the Secretary may—

(i)

directly certify eligible entities that meet established criteria;

(ii)

enter into long-term agreements with certified eligible entities; and

(iii)

accept proposals for cost-share assistance for the purchase of agricultural land easements throughout the duration of such agreements.

(B)

Certification criteria

In order to be certified, an eligible entity shall demonstrate to the Secretary that the entity will maintain, at a minimum, for the duration of the agreement—

(i)

a plan for administering easements that is consistent with the purpose of this subtitle;

(ii)

the capacity and resources to monitor and enforce agricultural land easements; and

(iii)

policies and procedures to ensure—

(I)

the long-term integrity of agricultural land easements on eligible land;

(II)

timely completion of acquisitions of 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 3 years to ensure that such entities are meeting the criteria established under subparagraph (B).

(ii)

Revocation

If the Secretary finds that the certified entity no longer meets the criteria established under subparagraph (B), the Secretary may—

(I)

allow the certified 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 entity, if after the specified period of time, the certified entity does not meet such criteria.

(c)

Technical assistance

The Secretary may provide technical assistance, if requested, to assist in—

(1)

compliance with the terms and conditions of easements; and

(2)

implementation of an agricultural land easement plan.

1265C.

Wetland easements

(a)

Availability of assistance

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

(1)

easements and related wetland easement plans; and

(2)

technical assistance.

(b)

Easements

(1)

Method of enrollment

The Secretary shall enroll eligible land 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 the program; and

(ii)

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

(B)

Changes in ownership

No easement shall be created on land that has changed ownership during the preceding 24-month period unless—

(i)

the new ownership was acquired by will or succession as a result of the death of the previous owner;

(ii)
(I)

the ownership change occurred because of foreclosure on the land; and

(II)

immediately before the foreclosure, the owner of the land exercises a right of redemption from the mortgage holder in accordance with State law; or

(iii)

the Secretary determines that the land was acquired under circumstances that give adequate assurances that such land was not acquired for the purposes of placing it in the program.

(3)

Evaluation and ranking of offers

(A)

Criteria

The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.

(B)

Considerations

When evaluating offers from landowners, the Secretary may consider—

(i)

the conservation benefits of obtaining an easement or 30-year contract, including the potential environmental benefits if the land was removed from agricultural production;

(ii)

the cost-effectiveness of each easement or 30-year contract, 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 easement or 30-year contract to leverage Federal funds; and

(iv)

such other factors as the Secretary determines are necessary to carry out the purposes of the program.

(C)

Priority

The Secretary shall place priority on acquiring easements based on the value of the easement for protecting and enhancing habitat for migratory birds and other wildlife.

(4)

Agreement

To be eligible to place eligible land into the program through a wetland easement, the owner of such land shall enter into an agreement with the Secretary to—

(A)

grant an easement on such land to the Secretary;

(B)

authorize the implementation of a wetland easement plan;

(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 cropland base and allotment history for the land on which the easement has been obtained.

(5)

Terms and conditions of easement

(A)

In general

A wetland easement shall include terms and conditions that—

(i)

permit—

(I)

repairs, improvements, and inspections on the land that are necessary to maintain existing public drainage systems; and

(II)

owners to control public access on the easement areas while identifying access routes to be used for restoration activities and management and easement monitoring;

(ii)

prohibit—

(I)

the alteration of wildlife habitat and other natural features of such land, unless specifically authorized by the Secretary;

(II)

the spraying of such land with chemicals or the mowing of such land, except where such spraying or mowing is authorized by the Secretary or is necessary—

(aa)

to comply with Federal or State noxious weed control laws;

(bb)

to comply with a Federal or State emergency pest treatment program; or

(cc)

to meet habitat needs of specific wildlife species;

(III)

any activities to be carried out on the owner’s or successor’s land that is immediately adjacent to, and functionally related to, the land that is subject to the easement if such activities will alter, degrade, or otherwise diminish the functional value of the eligible land; and

(IV)

the adoption of any other practice that would tend to defeat the purposes of the program, as determined by the Secretary;

(iii)

provide for the efficient and effective establishment of 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 the terms or conditions of the easement, the easement shall remain in force and the Secretary may require the owner to refund all or part of any payments received by the owner under the program, together with interest thereon as determined appropriate by the Secretary.

(C)

Compatible uses

Land subject to a wetland easement may be used for compatible economic uses, including such activities as hunting and fishing, managed timber harvest, or periodic haying or grazing, if such use is specifically permitted by the wetland easement plan 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 an 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 long-term protection and enhancement goals for which the easement was established; and

(III)

complies with the wetland easement plan; and

(ii)

the agreement provides for a commensurate reduction in the easement payment to account for the grazing value, as determined by the Secretary.

(E)

Application

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

(6)

Compensation

(A)

Determination

(i)

In general

The Secretary shall pay as compensation for a permanent easement acquired 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 Practices or an area-wide market analysis or survey;

(II)

the amount corresponding to a geographical cap, as determined by the Secretary in regulations; or

(III)

the offer made by the landowner.

(ii)

Other

Compensation for a 30-year contract or 30-year easement shall be not less than 50 percent, but not more than 75 percent, of the compensation that would be paid for a permanent easement.

(B)

Form of payment

Compensation 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 less than $500,000

For easements valued at $500,000 or less, the Secretary may provide easement payments in not more than 10 annual payments.

(ii)

Easements valued at more than $500,000

For easements valued at more than $500,000, the Secretary may provide easement payments in at least 5, but not more than 10 annual payments, except that, if the Secretary determines it would further the purposes of the program, the Secretary may make a lump sum payment for such an easement.

(c)

Easement restoration

(1)

In general

The Secretary shall provide financial assistance to carry out the establishment of conservation measures and practices and protect wetland functions and values, including necessary maintenance activities, as set forth in a wetland easement plan.

(2)

Payments

The Secretary shall—

(A)

in the case of a permanent easement, pay an amount that is not less than 75 percent, but not more than 100 percent, of the eligible costs; and

(B)

in the case of a 30-year contract or 30-year easement, pay an amount that is not less than 50 percent, but not more than 75 percent, of the eligible costs.

(d)

Technical assistance

(1)

In general

The Secretary shall assist owners in complying with the terms and conditions of easements and 30-year contracts.

(2)

Contracts or agreements

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

(e)

Wetland enhancement option

The Secretary may enter into 1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetland enhancement option that the Secretary determines would advance the purposes of the program.

(f)

Administration

(1)

Wetland easement plan

The Secretary shall develop a wetland easement plan for eligible land subject to a wetland easement, which will include the 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 easement management, monitoring, and enforcement responsibilities of the Secretary to other Federal or State agencies that have the appropriate authority, expertise and resources necessary to carry out such delegated responsibilities or to other 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 the program 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 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 dies, becomes incompetent, is otherwise unable to receive such payment, or is succeeded by another person or entity who renders or completes the required performance, the Secretary shall make such payment, in accordance with regulations prescribed by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all of the circumstances.

1265D.

Administration

(a)

Ineligible land

The Secretary may not acquire an easement under the program on—

(1)

land owned by an agency of the United States, other than land held in trust for Indian tribes;

(2)

land 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; and

(4)

land where the purposes of the program would be undermined due to on-site or off-site conditions, such as risk of hazardous substances, proposed or existing rights of way, infrastructure development, or adjacent land uses.

(b)

Priority

In evaluating applications under the program, the Secretary may give priority to land that is currently enrolled in the conservation reserve program in a contract that is set to expire within 1 year and—

(1)

in the case of an agricultural land easement, is grassland that would benefit from protection under a long-term easement; and

(2)

in the case of a wetland easement, is a wetland or related area with the highest functions and values 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, terminate, or modify 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 when 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 current owner, and eligible entity if applicable, to address any subordination, exchange, termination, or modification 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 an existing contract entered into under section 1231(a) if eligible land that is subject to such contract is transferred into the program.

(2)

Other

Land enrolled in the wetlands reserve program, grassland reserve program, or farmland protection program shall be considered enrolled in this program.

(e)

Allocation of funds for agricultural land easements

Of the funds made available under section 1241 to carry out the program for a fiscal year, the Secretary shall, to the extent practicable, use no less than 40 percent for agricultural land easements.

.

(b)

Compliance with certain requirements

Before an eligible entity or owner of eligible land may receive assistance under subtitle H of title XII of the Food Security Act of 1985, the eligible entity or person shall agree, during the crop year for which the assistance is provided and in exchange for the assistance—

(1)

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

(2)

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

(c)

Cross-Reference

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:

(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 the Agricultural Conservation Easement Program under subtitle H using wetland easements under section 1265C ; and

(ii)

in subparagraph (B), by striking subchapter C of chapter 1 of subtitle D and inserting the Agricultural Conservation Easement Program under subtitle H using wetland easements under section 1265C ; and

(B)

in paragraph (4), by striking subchapter C and inserting subchapter B.

(d)

Effective date

The amendments made by this section shall take effect on October 1, 2013.

E

Regional Conservation Partnership Program

2401.

Regional Conservation Partnership Program

(a)

In general

Title XII of the Food Security Act of 1985 is amended by inserting after subtitle H (as added by section 2301) the following:

I

Regional Conservation Partnership Program

1271.

Establishment and purposes

(a)

Establishment

The Secretary shall establish a Regional Conservation Partnership Program to implement eligible activities through—

(1)

partnership agreements with eligible partners; and

(2)

contracts with producers.

(b)

Purposes

The purposes of the program are—

(1)

to combine the purposes and coordinate the functions of—

(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; and

(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 a regional or watershed scale; and

(3)

to encourage partners to cooperate with producers in—

(A)

meeting or avoiding the need for national, State, and local natural resource regulatory requirements related to production; 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 multi-State basis.

1271A.

Definitions

In this subtitle:

(1)

Covered programs

The term covered programs means—

(A)

the agricultural conservation easement program;

(B)

the environmental quality incentives program; and

(C)

the conservation stewardship program.

(2)

Eligible activity

The term eligible activity means any of the following conservation activities when delivered through a covered program:

(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; and

(ii)

irrigation system improvement and irrigation efficiency enhancement.

(C)

Drought mitigation.

(D)

Flood prevention.

(E)

Water retention.

(F)

Habitat conservation, restoration, and enhancement.

(G)

Erosion control.

(H)

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

(3)

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)

An institution of higher education.

(F)

An organization with an established history of working cooperatively with producers on agricultural land, as determined by the Secretary, to address—

(i)

local conservation priorities related to agricultural production, wildlife habitat development, and nonindustrial private forest land management; or

(ii)

critical watershed-scale soil erosion, water quality, sediment reduction, or other natural resource concerns.

(4)

Partnership agreement

The term partnership agreement means an agreement between the Secretary and an eligible partner.

(5)

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.

(b)

Length

A partnership agreement shall be for a period not to exceed 5 years, except that the Secretary may extend the agreement 1 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 operations affected;

(iii)

the local, State, multi-State or other geographic area covered; and

(iv)

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

(B)

conduct outreach 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

A partner shall provide a significant portion of the overall costs of the scope of the project as determined by the Secretary.

(d)

Applications

(1)

Competitive process

The Secretary shall conduct a competitive process to select applications for partnership agreements and may assess and rank applications with similar conservation purposes as a group.

(2)

Criteria used

In carrying out the process described in paragraph (1), the Secretary shall make public the criteria used in evaluating applications.

(3)

Content

An application to the Secretary shall include a description of—

(A)

the scope of the project as described in subsection (c)(1)(A);

(B)

the plan for monitoring, evaluating, and reporting on progress made towards achieving the project’s objectives;

(C)

the program resources requested for the project, including the covered programs to be used and estimated funding needed from the Secretary;

(D)

the partners collaborating to achieve project objectives, including their roles, responsibilities, capabilities, and financial contribution; and

(E)

any other elements the Secretary considers necessary to adequately evaluate and competitively select applications for funding under the program.

(4)

Application selection

(A)

Priority to certain applications

The Secretary shall give a higher priority to applications that—

(i)

assist producers in meeting or avoiding the need for a natural resource regulatory requirement;

(ii)

significantly leverage non-Federal financial and technical resources and coordinate with other local, State, regional, or national efforts;

(iii)

deliver high percentages of applied conservation to address conservation priorities or local, State, regional, or national conservation initiatives; or

(iv)

provide innovation in conservation methods and delivery, including outcome-based performance measures and methods.

(B)

Other applications

The Secretary may give priority to applications that—

(i)

have a high percentage of producers in the area to be covered by the agreement; or

(ii)

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 to provide financial and technical assistance to—

(1)

producers participating in a project with an eligible partner as described in section 1271B; or

(2)

producers that fit within the scope of a project described in section 1271B or a critical conservation area designated pursuant to section 1271F, but who are seeking to implement an eligible activity independent of a partner.

(b)

Terms and conditions

(1)

Consistency with program rules

(A)

In general

Except as provided in subparagraph (B), the Secretary shall ensure that the terms and conditions of a contract under this section are consistent with the applicable rules of the covered programs to be used as part of the project, as described in the application under section 1271B(d)(3)(C).

(B)

Adjustments

Except for statutory program requirements governing appeals, payment limitations, and conservation compliance, the Secretary may adjust the discretionary program rules of a covered program—

(i)

to provide a simplified application and evaluation process; and

(ii)

to better reflect unique local circumstances and purposes if the Secretary determines such adjustments are necessary to achieve the purposes of the program.

(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 on receipt of 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 funds for administration or contracting with another entity.

(C)

Limitation

The Secretary may enter into not more than 10 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 established under this subtitle.

(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 8 percent of the funds and acres made available for a covered program for each of fiscal years 2014 through 2014 in order to ensure additional resources are available to carry out this program.

(2)

Unused funds and acres

Any funds or acres reserved under paragraph (1) for a fiscal year from a covered program that are not obligated under this program by April 1 of that fiscal year shall be returned for use under the covered program.

(d)

Allocation of funding

Of the funds and acres made available for the program under subsections (a) and (c), the Secretary shall allocate—

(1)

25 percent of the funds and acres to projects based on a State competitive process administered by the State conservationist, with the advice of the State technical committee;

(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 the critical conservation areas designated in section 1271F.

(e)

Limitation on administrative expenses

None of the funds made available under the program may be used to pay for the administrative expenses of 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 for every 2 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 partners and producers participating in the partnership agreements selected;

(2)

the number of producers receiving assistance;

(3)

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

(4)

a description of how the funds under section 1271C(b)(3) 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

When administering the funding described in section 1271D(d)(3), the Secretary shall select applications for partnership agreements and producer contracts within designated critical conservation areas.

(b)

Critical conservation area designations

(1)

In general

The Secretary shall designate up to 6 geographical areas as critical conservation areas based on the degree to which an 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)

has water quality concerns, including concerns for reducing erosion, promoting sediment control, and addressing nutrient management activities affecting large bodies of water of regional, national, or international significance;

(D)

has water quantity concerns, including—

(i)

concerns for groundwater, surface water, aquifer, or other water sources; or

(ii)

a need to promote water retention and flood prevention; or

(E)

is subject to regulatory requirements that could reduce the economic scope of 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).

(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.

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2013.

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 inserting and $30,000,000 for each of fiscal years 2014 through 2018 before the period at the end.

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 by inserting and $15,000,000 for each of fiscal years 2014 through 2018 before the period at the end.

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.

(c)

Effective date

The amendment made by this section shall take effect on October 1, 2013.

2504.

Agriculture conservation experienced services program

(a)

Funding

Section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) is amended by striking subsection (c) and inserting the following:

(c)

Funding

(1)

In general

The Secretary may carry out the ACES program using funds made available to carry out each program under this title.

(2)

Exclusion

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

.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2013.

2505.

Small watershed rehabilitation program

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.

Terminal lakes assistance

Section 2507 of the Food, 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 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 rip