Text: H.R.2 — 115th Congress (2017-2018)All Information (Except Text)

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Public Law No: 115-334 (12/20/2018)

 
[115th Congress Public Law 334]
[From the U.S. Government Publishing Office]



[[Page 4489]]

                   AGRICULTURE IMPROVEMENT ACT OF 2018

[[Page 132 STAT. 4490]]

Public Law 115-334
115th Congress

                                 An Act


 
  To provide for the reform and continuation of agricultural and other 
programs of the Department of Agriculture through fiscal year 2023, and 
        for other purposes. <<NOTE: Dec. 20, 2018 -  [H.R. 2]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Agriculture 
Improvement Act of 2018.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 7 USC 9001 note.>>  Short Title.--This Act may be cited 
as the ``Agriculture Improvement Act of 2018''.

    (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--COMMODITIES

                      Subtitle A--Commodity Policy

Sec. 1101. Definition of effective reference price.
Sec. 1102. Base acres.
Sec. 1103. Payment yields.
Sec. 1104. Payment acres.
Sec. 1105. Producer election.
Sec. 1106. Price loss coverage.
Sec. 1107. Agriculture risk coverage.
Sec. 1108. Repeal of transition assistance for producers of upland 
           cotton.

                       Subtitle B--Marketing Loans

Sec. 1201. Extensions.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Economic adjustment assistance for textile mills.
Sec. 1204. Special competitive provisions for extra long staple cotton.
Sec. 1205. Availability of recourse loans.

                            Subtitle C--Sugar

Sec. 1301. Sugar policy.

  Subtitle D--Dairy Margin Coverage and Other Dairy Related Provisions

Sec. 1401. Dairy margin coverage.
Sec. 1402. Reauthorizations.
Sec. 1403. Class I skim milk price.
Sec. 1404. Dairy product donation.

        Subtitle E--Supplemental Agricultural Disaster Assistance

Sec. 1501. Supplemental agricultural disaster assistance.

                 Subtitle F--Noninsured Crop Assistance

Sec. 1601. Noninsured crop assistance program.

                       Subtitle G--Administration

Sec. 1701. Regulations.
Sec. 1702. Suspension of permanent price support authority.

[[Page 132 STAT. 4491]]

Sec. 1703. Payment limitations.
Sec. 1704. Adjusted gross income limitations.
Sec. 1705. Farm Service Agency accountability.
Sec. 1706. Implementation.
Sec. 1707. Exemption from certain reporting requirements for certain 
           producers.

                         TITLE II--CONSERVATION

                    Subtitle A--Wetland Conservation

Sec. 2101. Wetland conversion.
Sec. 2102. Wetland conservation.
Sec. 2103. Mitigation banking.

                Subtitle B--Conservation Reserve Program

Sec. 2201. Conservation reserve.
Sec. 2202. Conservation reserve enhancement program.
Sec. 2203. Farmable wetland program.
Sec. 2204. Pilot programs.
Sec. 2205. Duties of owners and operators.
Sec. 2206. Duties of the Secretary.
Sec. 2207. Payments.
Sec. 2208. Contracts.
Sec. 2209. Eligible land; State law requirements.

 Subtitle C--Environmental Quality Incentives Program and Conservation 
                           Stewardship Program

Sec. 2301. Repeal of conservation programs.
Sec. 2302. Purposes of environmental quality incentives program.
Sec. 2303. Definitions under environmental quality incentives program.
Sec. 2304. Establishment and administration of environmental quality 
           incentives program.
Sec. 2305. Environmental quality incentives program plan.
Sec. 2306. Limitation on payments under environmental quality incentives 
           program.
Sec. 2307. Conservation innovation grants and payments.
Sec. 2308. Conservation stewardship program.
Sec. 2309. Grassland conservation initiative.

                 Subtitle D--Other Conservation Programs

Sec. 2401. Watershed protection and flood prevention.
Sec. 2402. Soil and water resources conservation.
Sec. 2403. Emergency conservation program.
Sec. 2404. Conservation of private grazing land.
Sec. 2405. Grassroots source water protection program.
Sec. 2406. Voluntary public access and habitat incentive program.
Sec. 2407. Wildlife management.
Sec. 2408. Feral swine eradication and control pilot program.
Sec. 2409. Report on small wetlands.
Sec. 2410. Sense of Congress relating to increased watershed-based 
           collaboration.

                 Subtitle E--Funding and Administration

Sec. 2501. Commodity Credit Corporation.
Sec. 2502. Delivery of technical assistance.
Sec. 2503. Administrative requirements for conservation programs.
Sec. 2504. Temporary administration of conservation programs.

         Subtitle F--Agricultural Conservation Easement Program

Sec. 2601. Establishment and purposes.
Sec. 2602. Definitions.
Sec. 2603. Agricultural land easements.
Sec. 2604. Wetland reserve easements.
Sec. 2605. Administration.

          Subtitle G--Regional Conservation Partnership Program

Sec. 2701. Establishment and purposes.
Sec. 2702. Definitions.
Sec. 2703. Regional conservation partnerships.
Sec. 2704. Assistance to producers.
Sec. 2705. Funding.
Sec. 2706. Administration.

[[Page 132 STAT. 4492]]

Sec. 2707. Critical conservation areas.

              Subtitle H--Repeals and Technical Amendments

                             PART I--Repeals

Sec. 2811. Repeal of Conservation Corridor Demonstration Program.
Sec. 2812. Repeal of cranberry acreage reserve program.
Sec. 2813. Repeal of National Natural Resources Foundation.
Sec. 2814. Repeal of flood risk reduction.
Sec. 2815. Repeal of study of land use for expiring contracts and 
           extension of authority.
Sec. 2816. Repeal of Integrated Farm Management Program Option.
Sec. 2817. Repeal of clarification of definition of agricultural lands.

                      PART II--Technical Amendments

Sec. 2821. Technical amendments.
Sec. 2822. State technical committees.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

Sec. 3101. Labeling requirements.
Sec. 3102. Food aid quality assurance.
Sec. 3103. Local sale and barter of commodities.
Sec. 3104. Minimum levels of assistance.
Sec. 3105. Food aid consultative group.
Sec. 3106. Issuance of regulations.
Sec. 3107. Oversight, monitoring, and evaluation.
Sec. 3108. Assistance for stockpiling and rapid transportation, 
           delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3109. Consideration of impact of provision of agricultural 
           commodities and other assistance on local farmers and 
           economy.
Sec. 3110. Allowance for distribution costs.
Sec. 3111. Prepositioning of agricultural commodities.
Sec. 3112. Annual report regarding food aid programs and activities.
Sec. 3113. Deadline for agreements to finance sales or to provide other 
           assistance.
Sec. 3114. Minimum level of nonemergency food assistance.
Sec. 3115. Termination date for micronutrient fortification programs.
Sec. 3116. John Ogonowski and Doug Bereuter Farmer-to-Farmer program.

               Subtitle B--Agricultural Trade Act of 1978

Sec. 3201. Agricultural trade promotion and facilitation.

                Subtitle C--Other Agricultural Trade Laws

Sec. 3301. Growing American Food Exports.
Sec. 3302. Food for Progress Act of 1985.
Sec. 3303. Bill Emerson Humanitarian Trust Act.
Sec. 3304. Promotion of agricultural exports to emerging markets.
Sec. 3305. Cochran fellowship program.
Sec. 3306. Borlaug International Agricultural Science and Technology 
           Fellowship program.
Sec. 3307. International Agricultural Education Fellowship program.
Sec. 3308. International food security technical assistance.
Sec. 3309. McGovern-Dole International Food for Education and Child 
           Nutrition program.
Sec. 3310. Global Crop Diversity Trust.
Sec. 3311. Local and regional food aid procurement projects.
Sec. 3312. Foreign trade missions.

                           TITLE IV--NUTRITION

          Subtitle A--Supplemental Nutrition Assistance Program

Sec. 4001. Requirements for online acceptance of benefits.
Sec. 4002. Re-evaluation of thrifty food plan.
Sec. 4003. Food distribution program on Indian reservations.
Sec. 4004. Simplified homeless housing costs.
Sec. 4005. Employment and training for supplemental nutrition assistance 
           program.
Sec. 4006. Improvements to electronic benefit transfer system.
Sec. 4007. Review of supplemental nutrition assistance program 
           operations.
Sec. 4008. Retail incentives.

[[Page 132 STAT. 4493]]

Sec. 4009. Required action on data match information.
Sec. 4010. Incentivizing technology modernization.
Sec. 4011. Interstate data matching to prevent multiple issuances.
Sec. 4012. Requirement of live-production environments for certain pilot 
           projects relating to cost sharing for computerization.
Sec. 4013. Quality control improvements.
Sec. 4014. Evaluation of child support enforcement cooperation 
           requirements.
Sec. 4015. Longitudinal data for research.
Sec. 4016. Authorization of appropriations.
Sec. 4017. Assistance for community food projects.
Sec. 4018. Emergency food assistance program.
Sec. 4019. Nutrition education.
Sec. 4020. Retail food store and recipient trafficking.
Sec. 4021. Public-private partnerships.
Sec. 4022. Technical corrections.

               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. Food donation standards.

                        Subtitle C--Miscellaneous

Sec. 4201. Seniors farmers' market nutrition program.
Sec. 4202. Purchase of fresh fruits and vegetables for distribution to 
           schools and service institutions.
Sec. 4203. Service of traditional foods in public facilities.
Sec. 4204. Healthy food financing initiative.
Sec. 4205. The Gus Schumacher nutrition incentive program.
Sec. 4206. Micro-grants for food security.
Sec. 4207. Buy American requirements.
Sec. 4208. Healthy fluid milk incentives projects.

                             TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5101. Modification of the 3-year experience eligibility requirement 
           for farm ownership loans.
Sec. 5102. Conservation loan and loan guarantee program.
Sec. 5103. Limitations on amount of farm ownership loans.
Sec. 5104. Relending program to resolve ownership and succession on 
           farmland.

                       Subtitle B--Operating Loans

Sec. 5201. Limitations on amount of operating loans.
Sec. 5202. Microloans.
Sec. 5203. Cooperative lending pilot projects.

                  Subtitle C--Administrative Provisions

Sec. 5301. Beginning farmer and rancher individual development accounts 
           pilot program.
Sec. 5302. Loan authorization levels.
Sec. 5303. Loan fund set-asides.
Sec. 5304. Use of additional funds for direct operating microloans under 
           certain conditions.
Sec. 5305. Equitable relief.
Sec. 5306. Socially disadvantaged farmers and ranchers; qualified 
           beginning farmers and ranchers.
Sec. 5307. Emergency loan eligibility.

                        Subtitle D--Miscellaneous

Sec. 5401. Technical corrections to the Consolidated Farm and Rural 
           Development Act.
Sec. 5402. State agricultural mediation programs.
Sec. 5403. Compensation of bank directors.
Sec. 5404. Sharing of privileged and confidential information.
Sec. 5405. Facility headquarters.
Sec. 5406. Removal and prohibition authority; industry-wide prohibition.
Sec. 5407. Jurisdiction over institution-affiliated parties.
Sec. 5408. Definition of institution-affiliated party.
Sec. 5409. Prohibition on use of funds.

[[Page 132 STAT. 4494]]

Sec. 5410. Expansion of acreage exception to loan amount limitation.
Sec. 5411. Repeal of obsolete provisions; technical corrections.
Sec. 5412. Corporation as conservator or receiver; certain other powers.
Sec. 5413. Reporting.
Sec. 5414. Study on loan risk.
Sec. 5415. GAO report on ability of the Farm Credit System to meet the 
           agricultural credit needs of Indian tribes and their members.
Sec. 5416. GAO report on credit service to socially disadvantaged 
           farmers and ranchers.

                       TITLE VI--RURAL DEVELOPMENT

         Subtitle A--Improving Health Outcomes in Rural America

Sec. 6101. Combating substance use disorder in rural America; 
           prioritizations.
Sec. 6102. Distance learning and telemedicine.
Sec. 6103. Refinancing of certain rural hospital debt.

     Subtitle B--Connecting Rural Americans to High Speed Broadband

Sec. 6201. Access to broadband telecommunications services in rural 
           areas.
Sec. 6202. Expansion of middle mile infrastructure into rural areas.
Sec. 6203. Modifications to the Rural Gigabit Program.
Sec. 6204. Community Connect Grant Program.
Sec. 6205. Outdated broadband systems.
Sec. 6206. Default and deobligation; deferral.
Sec. 6207. Public notice, assessments, and reporting requirements.
Sec. 6208. Environmental reviews.
Sec. 6209. Use of loan proceeds to refinance loans for deployment of 
           broadband service.
Sec. 6210. Smart utility authority for broadband.
Sec. 6211. Refinancing of telephone loans.
Sec. 6212. Federal broadband program coordination.
Sec. 6213. Transition rule.
Sec. 6214. Rural broadband integration working group.

                        Subtitle C--Miscellaneous

Sec. 6301. Exclusion of certain populations from definition of rural 
           area.
Sec. 6302. Establishment of technical assistance program.
Sec. 6303. Rural energy savings program.
Sec. 6304. Northern Border Regional Commission reauthorization.
Sec. 6305. Definition of rural area for purposes of the Housing Act of 
           1949.
Sec. 6306. Council on Rural Community Innovation and Economic 
           Development.

  Subtitle D--Additional Amendments to the Consolidated Farm and Rural 
                             Development Act

Sec. 6401. Strategic economic and community development.
Sec. 6402. Expanding access to credit for rural communities.
Sec. 6403. Water, waste disposal, and wastewater facility grants.
Sec. 6404. Rural water and wastewater technical assistance and training 
           programs.
Sec. 6405. Rural water and wastewater circuit rider program.
Sec. 6406. Tribal college and university essential community facilities.
Sec. 6407. Emergency and imminent community water assistance grant 
           program.
Sec. 6408. Water systems for rural and native villages in Alaska.
Sec. 6409. Rural decentralized water systems.
Sec. 6410. Solid waste management grants.
Sec. 6411. Rural business development grants.
Sec. 6412. Rural cooperative development grants.
Sec. 6413. Locally or regionally produced agricultural food products.
Sec. 6414. Appropriate technology transfer for rural areas program.
Sec. 6415. Rural economic area partnership zones.
Sec. 6416. Intemediary relending program.
Sec. 6417. Access to information to verify income for participants in 
           certain rural housing programs.
Sec. 6418. Providing for additional fees for guaranteed loans under the 
           Consolidated Farm and Rural Development Act.
Sec. 6419. Rural Business-Cooperative Service programs technical 
           assistance and training.
Sec. 6420. National Rural Development Partnership.
Sec. 6421. Grants for NOAA weather radio transmitters.
Sec. 6422. Rural microentrepreneur assistance program.
Sec. 6423. Health care services.
Sec. 6424. Rural innovation stronger economy grant program.

[[Page 132 STAT. 4495]]

Sec. 6425. Delta Regional Authority.
Sec. 6426. Rural business investment program.
Sec. 6427. Rural business investment program.

 Subtitle E--Additional Amendments to the Rural Electrification Act of 
                                  1936

Sec. 6501. Amendments to section 2 of the Rural Electrification Act of 
           1936.
Sec. 6502. Loans for telephone service.
Sec. 6503. Cushion of credit payments program.
Sec. 6504. Extension of the rural economic development loan and grant 
           program.
Sec. 6505. Guarantees for bonds and notes issued for electrification or 
           telephone purposes.
Sec. 6506. Expansion of 911 access.
Sec. 6507. Cybersecurity and grid security improvements.

                       Subtitle F--Program Repeals

Sec. 6601. Elimination of unfunded programs.
Sec. 6602. Repeal of Rural Telephone Bank.
Sec. 6603. Amendments to LOCAL TV Act.

                    Subtitle G--Technical Corrections

Sec. 6701. Corrections relating to the Consolidated Farm and Rural 
           Development Act.
Sec. 6702. Corrections relating to the Rural Electrification Act of 
           1936.

           TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS

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

Sec. 7101. Purposes of agricultural research, extension, and education.
Sec. 7102. Matters related to certain school designations and 
           declarations.
Sec. 7103. National Agricultural Research, Extension, Education, and 
           Economics Advisory Board.
Sec. 7104. Specialty crop committee.
Sec. 7105. Renewable energy committee discontinued.
Sec. 7106. Veterinary services grant program.
Sec. 7107. Grants and fellowships for food and agriculture sciences 
           education.
Sec. 7108. Agricultural and food policy research centers.
Sec. 7109. Education grants to Alaska Native serving institutions and 
           Native Hawaiian serving institutions.
Sec. 7110. Next generation agriculture technology challenge.
Sec. 7111. Land-grant designation.
Sec. 7112. Nutrition education program.
Sec. 7113. Continuing animal health and disease research programs.
Sec. 7114. Carryover of funds for extension at 1890 land-grant colleges, 
           including Tuskegee University.
Sec. 7115. Extension and agricultural research at 1890 land-grant 
           colleges, including Tuskegee University.
Sec. 7116. Reports on disbursement of funds for agricultural research 
           and extension at 1862 and 1890 land-grant colleges, including 
           Tuskegee University.
Sec. 7117. Scholarships for students at 1890 institutions.
Sec. 7118. Grants to upgrade agricultural and food sciences facilities 
           at 1890 land-grant colleges, including Tuskegee University.
Sec. 7119. Grants to upgrade agriculture and food sciences facilities 
           and equipment at insular area land-grant institutions.
Sec. 7120. New Beginning for Tribal Students.
Sec. 7121. Hispanic-serving institutions.
Sec. 7122. Binational agricultural research and development.
Sec. 7123. Partnerships to build capacity in international agricultural 
           research, extension, and teaching.
Sec. 7124. Competitive grants for international agricultural science and 
           education programs.
Sec. 7125. Limitation on indirect costs for agricultural research, 
           education, and extension programs.
Sec. 7126. Research equipment grants.
Sec. 7127. University research.
Sec. 7128. Extension service.
Sec. 7129. Supplemental and alternative crops; hemp.
Sec. 7130. New Era Rural Technology program.
Sec. 7131. Capacity building grants for NLGCA Institutions.
Sec. 7132. Agriculture advanced research and development authority 
           pilot.

[[Page 132 STAT. 4496]]

Sec. 7133. Aquaculture assistance programs.
Sec. 7134. Rangeland research programs.
Sec. 7135. Special authorization for biosecurity planning and response.
Sec. 7136. 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 strategic germplasm and cultivar collection 
           assessment and utilization plan.
Sec. 7206. National Genetics Resources Program.
Sec. 7207. National Agricultural Weather Information System.
Sec. 7208. Agricultural genome to phenome initiative.
Sec. 7209. High-priority research and extension initiatives.
Sec. 7210. Organic agriculture research and extension initiative.
Sec. 7211. Farm business management.
Sec. 7212. Urban, indoor, and other emerging agricultural production 
           research, education, and extension initiative.
Sec. 7213. Centers of excellence at 1890 Institutions.
Sec. 7214. Clarification of veteran eligibility for assistive technology 
           program for farmers with disabilities.
Sec. 7215. National Rural Information Center Clearinghouse.

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

Sec. 7301. National food safety training, education, extension, 
           outreach, and technical assistance program.
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. Forestry products advanced utilization research.

         Subtitle D--Food, Conservation, and Energy Act of 2008

                      PART I--Agricultural Security

Sec. 7401. Agricultural biosecurity communication center.
Sec. 7402. Assistance to build local capacity in agricultural 
           biosecurity planning, preparation, and response.
Sec. 7403. Research and development of agricultural countermeasures.
Sec. 7404. Agricultural biosecurity grant program.

                         PART II--Miscellaneous

Sec. 7411. Grazinglands research laboratory.
Sec. 7412. Farm and Ranch Stress Assistance Network.
Sec. 7413. Natural products research program.
Sec. 7414. Sun grant program.

                  Subtitle E--Amendments to Other Laws

Sec. 7501. Critical Agricultural Materials Act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Research Facilities Act.
Sec. 7504. Agriculture and Food Research Initiative.
Sec. 7505. Extension design and demonstration initiative.
Sec. 7506. Repeal of review of agricultural research service.
Sec. 7507. Biomass research and development.
Sec. 7508. Reinstatement of matching requirement for Federal funds used 
           in extension work at the University of the District of 
           Columbia.
Sec. 7509. Renewable Resources Extension Act of 1978.
Sec. 7510. National Aquaculture Act of 1980.
Sec. 7511. Federal agriculture research facilities.

                        Subtitle F--Other Matters

Sec. 7601. Enhanced use lease authority program.

[[Page 132 STAT. 4497]]

Sec. 7602. Transfer of administrative jurisdiction over portion of Henry 
           A. Wallace Beltsville Agricultural Research Center, 
           Beltsville, Maryland.
Sec. 7603. Foundation for food and agriculture research.
Sec. 7604. Assistance for forestry research under the McIntire-Stennis 
           Cooperative Forestry Act.
Sec. 7605. Legitimacy of industrial hemp research.
Sec. 7606. Collection of data relating to barley area planted and 
           harvested.
Sec. 7607. Collection of data relating to the size and location of dairy 
           farms.
Sec. 7608. Agriculture innovation center demonstration program.
Sec. 7609. Smith-Lever community extension program.
Sec. 7610. Mechanization and automation for specialty crops.
Sec. 7611. Experienced services program.
Sec. 7612. Simplified plan of work.
Sec. 7613. Review of land-grant time and effort reporting requirements.
Sec. 7614. Matching funds requirement.

                          TITLE VIII--FORESTRY

         Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8101. Support for State assessments and strategies for forest 
           resources.
Sec. 8102. State and private forest landscape-scale restoration program.

  Subtitle B--Forest and Rangeland Renewable Resources Research Act of 
                                  1978

Sec. 8201. Repeal of recycling research.
Sec. 8202. Repeal of forestry student grant program.

        Subtitle C--Global Climate Change Prevention Act of 1990

Sec. 8301. Repeals relating to biomass.

           Subtitle D--Healthy Forests Restoration Act of 2003

Sec. 8401. Promoting cross-boundary wildfire mitigation.
Sec. 8402. Authorization of appropriations for hazardous fuel reduction 
           on Federal land.
Sec. 8403. Repeal of biomass commercial utilization grant program.
Sec. 8404. Water Source Protection Program.
Sec. 8405. Watershed Condition Framework.
Sec. 8406. Authorization of appropriations to combat insect infestations 
           and related diseases.
Sec. 8407. Healthy Forests Restoration Act of 2003 amendments.
Sec. 8408. Authorization of appropriations for designation of treatment 
           areas.

Subtitle E--Repeal or Reauthorization of Miscellaneous Forestry Programs

Sec. 8501. Repeal of revision of strategic plan for forest inventory and 
           analysis.
Sec. 8502. Semiarid agroforestry research center.
Sec. 8503. National Forest Foundation Act.
Sec. 8504. Conveyance of Forest Service administrative sites.

                      Subtitle F--Forest Management

Sec. 8601. Definition of National Forest System.

PART I--Expedited Environmental Analysis and Availability of Categorical 
           Exclusions to Expedite Forest Management Activities

Sec. 8611. Categorical exclusion for greater sage-grouse and mule deer 
           habitat.

           PART II--Miscellaneous Forest Management Activities

Sec. 8621. Additional authority for sale or exchange of small parcels of 
           National Forest System land.
Sec. 8622. Forest Service participation in ACES program.
Sec. 8623. Authorization for lease of Forest Service sites.
Sec. 8624. Good neighbor authority.
Sec. 8625. Chattahoochee-Oconee National Forest land adjustment.
Sec. 8626. Tennessee wilderness.
Sec. 8627. Kisatchie National Forest land conveyance.
Sec. 8628. Purchase of Natural Resources Conservation Service property, 
           Riverside County, California.
Sec. 8629. Collaborative Forest Landscape Restoration Program.
Sec. 8630. Utility infrastructure rights-of-way vegetation management 
           pilot program.
Sec. 8631. Okhissa Lake rural economic development land conveyance.
Sec. 8632. Remote sensing technologies.

[[Page 132 STAT. 4498]]

                       PART III--Timber Innovation

Sec. 8641. Definitions.
Sec. 8642. Clarification of research and development program for wood 
           building construction.
Sec. 8643. Wood innovation grant program.
Sec. 8644. Community wood energy and wood innovation program.

                        Subtitle G--Other Matters

Sec. 8701. Rural revitalization technologies.
Sec. 8702. Resource Advisory Committees.
Sec. 8703. Tribal forest management demonstration project.
Sec. 8704. Technical corrections.
Sec. 8705. Streamlining the Forest Service process for consideration of 
           communications facility location applications.
Sec. 8706. Report on wildfire, insect infestation, and disease 
           prevention on Federal land.
Sec. 8707. West Fork Fire Station.
Sec. 8708. Competitive forestry, natural resources, and environmental 
           grants program.

                            TITLE IX--ENERGY

Sec. 9001. Definitions.
Sec. 9002. Biobased markets program.
Sec. 9003. Biorefinery assistance.
Sec. 9004. Repowering assistance program.
Sec. 9005. Bioenergy program for advanced biofuels.
Sec. 9006. Biodiesel fuel education program.
Sec. 9007. Rural Energy for America Program.
Sec. 9008. Rural Energy Self-Sufficiency Initiative.
Sec. 9009. Feedstock flexibility.
Sec. 9010. Biomass Crop Assistance Program.
Sec. 9011. Carbon utilization and biogas education program.

                          TITLE X--HORTICULTURE

Sec. 10101. Specialty crops market news allocation.
Sec. 10102. Local agriculture market program.
Sec. 10103. Organic production and market data initiatives.
Sec. 10104. Organic certification.
Sec. 10105. National organic certification cost-share program.
Sec. 10106. Food safety education initiatives.
Sec. 10107. Specialty crop block grants.
Sec. 10108. Amendments to the Plant Variety Protection Act.
Sec. 10109. Multiple crop and pesticide use survey.
Sec. 10110. Report on the arrival in the United States of forest pests 
           through restrictions on the importation of certain plants for 
           planting.
Sec. 10111. Report on plant biostimulants.
Sec. 10112. Clarification of use of funds for technical assistance.
Sec. 10113. Hemp production.
Sec. 10114. Interstate commerce.
Sec. 10115. FIFRA interagency working group.
Sec. 10116. Study on methyl bromide use in response to an emergency 
           event.

                        TITLE XI--CROP INSURANCE

Sec. 11101. Definitions.
Sec. 11102. Data collection.
Sec. 11103. Sharing of records.
Sec. 11104. Use of resources.
Sec. 11105. Specialty crops.
Sec. 11106. Insurance period.
Sec. 11107. Cover crops.
Sec. 11108. Underserved producers.
Sec. 11109. Treatment of forage and grazing.
Sec. 11110. Administrative basic fee.
Sec. 11111. Enterprise units.
Sec. 11112. Continued authority.
Sec. 11113. Submission of policies and materials to board.
Sec. 11114. Crop production on native sod.
Sec. 11115. Use of national agricultural statistics service data to 
           combat waste, fraud, and abuse.
Sec. 11116. Submission of information to corporation.

[[Page 132 STAT. 4499]]

Sec. 11117. Continuing education for loss adjusters and agents.
Sec. 11118. Program administration.
Sec. 11119. Agricultural commodity.
Sec. 11120. Maintenance of policies.
Sec. 11121. Reimbursement of research, development, and maintenance 
           costs.
Sec. 11122. Research and development authority.
Sec. 11123. Funding for research and development.
Sec. 11124. Technical amendment to pilot programs.
Sec. 11125. Education and risk management assistance.
Sec. 11126. Repeal of cropland report annual updates.

                        TITLE XII--MISCELLANEOUS

                          Subtitle A--Livestock

Sec. 12101. Animal disease prevention and management.
Sec. 12102. Sheep production and marketing grant program.
Sec. 12103. Feasibility study on livestock dealer statutory trust.
Sec. 12104. Definition of livestock.
Sec. 12105. National Aquatic Animal Health Plan.
Sec. 12106. Veterinary training.
Sec. 12107. Report on FSIS guidance and outreach to small meat 
           processors.
Sec. 12108. Regional Cattle and Carcass Grading Correlation and Training 
           Centers.

                Subtitle B--Agriculture and Food Defense

Sec. 12201. Repeal of Office of Homeland Security.
Sec. 12202. Office of Homeland Security.
Sec. 12203. Agriculture and food defense.
Sec. 12204. Biological agents and toxins list.
Sec. 12205. Authorization of appropriations.

             Subtitle C--Historically Underserved Producers

Sec. 12301. Farming opportunities training and outreach.
Sec. 12302. Urban agriculture.
Sec. 12303. Tribal Advisory Committee.
Sec. 12304. Beginning farmer and rancher coordination.
Sec. 12305. Agricultural youth organization coordinator.
Sec. 12306. Availability of Department of Agriculture programs for 
           veteran farmers and ranchers.

    Subtitle D--Department of Agriculture Reorganization Act of 1994 
                               Amendments

Sec. 12401. Office of Congressional Relations and Intergovernmental 
           Affairs.
Sec. 12402. Military Veterans Agricultural Liaison.
Sec. 12403. Civil rights analyses.
Sec. 12404. Farm Service Agency.
Sec. 12405. Under Secretary of Agriculture for Farm Production and 
           Conservation.
Sec. 12406. Office of Partnerships and Public Engagement.
Sec. 12407. Under Secretary of Agriculture for Rural Development.
Sec. 12408. Administrator of the Rural Utilities Service.
Sec. 12409. Rural Health Liaison.
Sec. 12410. Natural Resources Conservation Service.
Sec. 12411. Office of the Chief Scientist.
Sec. 12412. Appointment of national appeals division hearing officers.
Sec. 12413. Trade and foreign agricultural affairs.
Sec. 12414. Repeals.
Sec. 12415. Technical corrections.
Sec. 12416. Termination of authority.

               Subtitle E--Other Miscellaneous Provisions

              PART I--Miscellaneous Agriculture Provisions

Sec. 12501. Acer access and development program.
Sec. 12502. Protecting animals with shelter.
Sec. 12503. Marketing orders.
Sec. 12504. Establishment of food loss and waste reduction liaison.
Sec. 12505. Report on business centers.
Sec. 12506. Report on personnel.
Sec. 12507. Report on absent landlords.
Sec. 12508. Century farms program.
Sec. 12509. Report on importation of live dogs.
Sec. 12510. Tribal Promise Zones.

[[Page 132 STAT. 4500]]

Sec. 12511. Precision agriculture connectivity.
Sec. 12512. Improvements to United States Drought Monitor.
Sec. 12513. Dairy business innovation initiatives.
Sec. 12514. Report on funding for the National Institute of Food and 
           Agriculture and other extension programs.
Sec. 12515. Prohibition on slaughter of dogs and cats for human 
           consumption.
Sec. 12516. Labeling exemption for single ingredient foods and products.
Sec. 12517. South Carolina inclusion in Virginia/Carolina peanut 
           producing region.
Sec. 12518. Forest Service hire authority.
Sec. 12519. Conversion authority.
Sec. 12520. Authorization of protection operations for the Secretary of 
           Agriculture and others.

               PART II--National Oilheat Research Alliance

Sec. 12531. National oilheat research alliance.

                     Subtitle F--General Provisions

Sec. 12601. Baiting of migratory game birds.
Sec. 12602. Pima agriculture cotton trust fund.
Sec. 12603. Agriculture wool apparel manufacturers trust fund.
Sec. 12604. Wool research and promotion.
Sec. 12605. Emergency Citrus Disease Research and Development Trust 
           Fund.
Sec. 12606. Extension of merchandise processing fees.
Sec. 12607. Reports on land access and farmland ownership data 
           collection.
Sec. 12608. Reauthorization of rural emergency medical services training 
           and equipment assistance program.
Sec. 12609. Commission on Farm Transitions--Needs for 2050.
Sec. 12610. Exceptions under United States Grain Standards Act.
Sec. 12611. Conference report requirement threshold.
Sec. 12612. National agriculture imagery program.
Sec. 12613. Report on inclusion of natural stone products in Commodity 
           Promotion, Research, and Information Act of 1996.
Sec. 12614. Establishment of food access liaison.
Sec. 12615. Eligibility for operators on heirs property land to obtain a 
           farm number.
Sec. 12616. Extending prohibition on animal fighting to the territories.
Sec. 12617. Exemption of exportation of certain echinoderms from 
           permission and licensing requirements.
Sec. 12618. Data on conservation practices.
Sec. 12619. Conforming changes to Controlled Substances Act.

SEC. 2. <<NOTE: 7 USC 9001 note.>>  DEFINITION OF SECRETARY.

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

                          TITLE I--COMMODITIES

                      Subtitle A--Commodity Policy

SEC. 1101. DEFINITION OF EFFECTIVE REFERENCE PRICE.

    Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is 
amended--
            (1) by redesignating paragraphs (8) through (25) as 
        paragraphs (9) through (26), respectively; and
            (2) by inserting after paragraph (7) the following:
            ``(8) Effective reference price.--The term `effective 
        reference price', with respect to a covered commodity for a crop 
        year, means the lesser of the following:
                    ``(A) An amount equal to 115 percent of the 
                reference price for such covered commodity.
                    ``(B) An amount equal to the greater of--
                          ``(i) the reference price for such covered 
                      commodity; or
                          ``(ii) 85 percent of the average of the 
                      marketing year average price of the covered 
                      commodity for the

[[Page 132 STAT. 4501]]

                      most recent 5 crop years, excluding each of the 
                      crop years with the highest and lowest marketing 
                      year average price.''.
SEC. 1102. BASE ACRES.

    (a) Technical Corrections.--Section 1112(c)(2) of the Agricultural 
Act of 2014 (7 U.S.C. 9012(c)(2)) is amended by striking subparagraph 
(A) and inserting the following:
                    ``(A) Any acreage on the farm enrolled in--
                          ``(i) 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.); or
                          ``(ii) a wetland reserve easement under 
                      section 1265C of the Food Security Act of 1985 (16 
                      U.S.C. 3865c).''.

    (b) Reduction in Base Acres.--Section 1112(d) of the Agricultural 
Act of 2014 (7 U.S.C. 9012(d)) is amended by adding at the end the 
following:
            ``(3) Treatment of base acres on farms entirely planted to 
        grass or pasture.--
                    ``(A) In general.--In the case of a farm on which 
                all of the cropland was planted to grass or pasture 
                (including cropland that was idle or fallow), as 
                determined by the Secretary, during the period beginning 
                on January 1, 2009, and ending on December 31, 2017, the 
                Secretary shall maintain all base acres and payment 
                yields for the covered commodities on the farm, except 
                that no payment shall be made with respect to those base 
                acres under section 1116 or 1117 for the 2019 through 
                2023 crop years.
                    ``(B) Ineligibility.--The producers on a farm for 
                which all of the base acres are maintained under 
                subparagraph (A) shall be ineligible for the option to 
                change the election applicable to the producers on the 
                farm under section 1115(h).
            ``(4) Prohibition on reconstitution of farm.--The Secretary 
        shall ensure that producers on a farm do not reconstitute the 
        farm to void or change the treatment of base acres under this 
        section.''.
SEC. 1103. PAYMENT YIELDS.

    (a) Treatment of Designated Oilseeds.--Section 1113(b) of the 
Agricultural Act of 2014 (7 U.S.C. 9013(b)) is amended--
            (1) in paragraph (1), by striking ``designated oilseeds'' 
        and inserting ``oilseeds designated before the date of enactment 
        of the Agriculture Improvement Act of 2018'';
            (2) in paragraphs (2) and (3), by striking ``a designated 
        oilseed'' each place it appears and inserting ``an oilseed 
        designated before the date of enactment of the Agriculture 
        Improvement Act of 2018''; and
            (3) by adding at the end the following:
            ``(4) Treatment of oilseeds designated after certain date.--
        In the case of oilseeds designated on or after the date of 
        enactment of the Agriculture Improvement Act of 2018, the 
        payment yield shall be equal to 90 percent of the average of the 
        yield per planted acre for the most recent 5 crop years, as 
        determined by the Secretary, excluding any crop year in which 
        the acreage planted to the covered commodity was zero.''.

[[Page 132 STAT. 4502]]

    (b) Single Opportunity to Update Yields.--Section 1113 of the 
Agricultural Act of 2014 (7 U.S.C. 9013) is amended by striking 
subsection (d) and inserting the following:
    ``(d) Single Opportunity to Update Yields.--
            ``(1) Election to update.--At the sole discretion of the 
        owner of a farm, the owner of a farm shall have a 1-time 
        opportunity to update, on a covered-commodity-by-covered-
        commodity basis, the payment yield that would otherwise be used 
        in calculating any price loss coverage payment for each covered 
        commodity on the farm for which the election is made.
            ``(2) Method of updating yields for covered commodities.--If 
        the owner of a farm elects to update yields under paragraph (1), 
        the payment yield for a covered commodity on the farm, for the 
        purpose of calculating price loss coverage payments only, shall 
        be equal to the product obtained by multiplying--
                    ``(A) 90 percent;
                    ``(B) the average of the yield per planted acre for 
                the crop of covered commodities on the farm for the 2013 
                through 2017 crop years, as determined by the Secretary, 
                excluding any crop year in which the acreage planted to 
                the covered commodity was zero; and
                    ``(C) subject to paragraph (3), the ratio obtained 
                by dividing--
                          ``(i) the average of the 2008 through 2012 
                      national average yield per planted acre for the 
                      covered commodity, as determined by the Secretary; 
                      by
                          ``(ii) the average of the 2013 through 2017 
                      national average yield per planted acre for the 
                      covered commodity, as determined by the Secretary.
            ``(3) Limitation.--In no case shall the ratio obtained under 
        paragraph (2)(C) be less than 90 percent or greater than 100 
        percent.
            ``(4) Use of county average yield.--For the purposes of 
        determining the average yield per planted acre under paragraph 
        (2)(B), if the yield per planted acre for a crop of a covered 
        commodity for a farm for any of the crop years described in that 
        subparagraph was less than 75 percent of the average of county 
        yields for those crop years for that commodity, the Secretary 
        shall assign a yield for that crop year equal to 75 percent of 
        the average of the 2013 through 2017 county yield for the 
        covered commodity.
            ``(5) Upland cotton conversion.--In the case of seed cotton, 
        for purposes of determining the average of the yield per planted 
        acre under this subsection, the average yield for seed cotton 
        per planted acre shall be equal to 2.4 times the average yield 
        for upland cotton per planted acre.
            ``(6) Time for election.--An election under this subsection 
        shall be made at a time and manner so as to be in effect 
        beginning with the 2020 crop year, as determined by the 
        Secretary.''.
SEC. 1104. PAYMENT ACRES.

    Section 1114 of the Agricultural Act of 2014 (7 U.S.C. 9014) is 
amended--
            (1) in subsection (d)--

[[Page 132 STAT. 4503]]

                    (A) in paragraph (1), by inserting ``, unless the 
                sum of the base acres on the farm, when combined with 
                the base acres of other farms in which the producer has 
                an interest, is more than 10 acres'' before the period 
                at the end; and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking ``or'' at 
                      the end;
                          (ii) in subparagraph (B), by striking the 
                      period at the end and inserting a semicolon; and
                          (iii) by adding at the end the following:
                    ``(C) a beginning farmer or rancher (as defined in 
                subsection (a) of section 2501 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 2279)); or
                    ``(D) a veteran farmer or rancher (as defined in 
                subsection (a) of section 2501 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 2279)).''; 
                and
            (2) in subsection (e), by adding at the end the following:
            ``(5) Effect of reduction.--For each crop year for which 
        fruits, vegetables (other than mung beans and pulse crops), or 
        wild rice are planted to base acres on a farm for which a 
        reduction in payment acres is made under this subsection, the 
        Secretary shall consider such base acres to be planted, or 
        prevented from being planted, to a covered commodity for 
        purposes of any adjustment or reduction of base acres for the 
        farm under section 1112.''.
SEC. 1105. PRODUCER ELECTION.

    Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is 
amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``Except as provided in subsection (g), for the 
        2014 through 2018 crop years'' and inserting ``For the 2014 
        through 2018 crop years (except as provided in subsection (g)) 
        and for the 2019 through 2023 crop years (subject to subsection 
        (h))'';
            (2) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``subsection (a), the producers on a farm that 
        elect under paragraph (2) of such subsection to obtain 
        agriculture risk coverage under section 1117'' and inserting 
        ``subsection (a) or (h), as applicable, the producers on a farm 
        that elect to obtain agriculture risk coverage'';
            (3) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``or the 2019 crop year, as applicable'' after 
                ``2014 crop year'';
                    (B) in paragraph (1), by inserting ``or the 2019 
                crop year, as applicable,'' after ``2014 crop year''; 
                and
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) subject to subsection (h), the producers on the farm 
        shall be deemed to have elected, as applicable--
                    ``(A) price loss coverage for all covered 
                commodities on the farm for the 2015 through 2018 crop 
                years; and
                    ``(B) the same coverage for each covered commodity 
                on the farm for the 2020 through 2023 crop years as was 
                applicable for the 2015 through 2018 crop years.'';

[[Page 132 STAT. 4504]]

            (4) in subsection (g)(1), by inserting ``for the 2018 crop 
        year,'' before ``all of the producers''; and
            (5) by adding at the end the following:

    ``(h) Option to Change Election.--
            ``(1) In general.--For the 2021 crop year and each crop year 
        thereafter, all of the producers on a farm may change the 
        election under subsection (a), subsection (c), or this 
        subsection, as applicable, to price loss coverage or agriculture 
        risk coverage, as applicable.
            ``(2) Applicability.--An election change under paragraph (1) 
        shall apply to--
                    ``(A) the crop year for which the election change is 
                made; and
                    ``(B) each crop year thereafter until another 
                election change is made under that paragraph.''.
SEC. 1106. PRICE LOSS COVERAGE.

    Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and indenting 
                appropriately;
                    (B) in the matter preceding subparagraph (A) (as so 
                redesignated)--
                          (i) by inserting ``or (h)'' after ``subsection 
                      (a)''; and
                          (ii) by striking ``determines that, for any of 
                      the 2014 through 2018 crop years--'' and inserting 
                      ``determines that--
            ``(1) for any of the 2014 through 2018 crop years--'';
                    (C) in paragraph (1)(B) (as so redesignated), by 
                striking the period at the end and inserting ``; or''; 
                and
                    (D) by adding at the end the following:
            ``(2) for any of the 2019 through 2023 crop years--
                    ``(A) the effective price for the covered commodity 
                for the crop year; is less than
                    ``(B) the effective reference price for the covered 
                commodity for the crop year.'';
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (1) and (2) as 
                clauses (i) and (ii), respectively, and indenting 
                appropriately;
                    (B) in the matter preceding clause (i) (as so 
                redesignated), by striking ``The payment rate'' and 
                inserting the following:
            ``(1) In general.--
                    ``(A) 2014 through 2018 crop years.--For the 2014 
                through 2018 crop years, the payment rate'';
                    (C) in paragraph (1) (as so designated), by adding 
                at the end the following:
                    ``(B) 2019 through 2023 crop years.--For the 2019 
                through 2023 crop years, the payment rate shall be equal 
                to the difference between--
                          ``(i) the effective reference price for the 
                      covered commodity; and
                          ``(ii) the effective price determined under 
                      subsection (b) for the covered commodity.''; and
                    (D) by adding at the end the following:

[[Page 132 STAT. 4505]]

            ``(2) Announcement.--Not later than 30 days after the end of 
        each applicable 12-month marketing year for each covered 
        commodity, the Secretary shall publish the payment rate 
        determined under paragraph (1).
            ``(3) Insufficient data.--In the case of a covered 
        commodity, such as temperate japonica rice, for which the 
        Secretary cannot determine the payment rate for the most recent 
        12-month marketing year by the date described in paragraph (2) 
        due to insufficient reporting of timely pricing data by 1 or 
        more nongovernmental entities, including a marketing cooperative 
        for the covered commodity, the Secretary shall publish the 
        payment rate as soon as practicable after the marketing year 
        data are made available.''; and
            (3) by striking subsection (g) and inserting the following:

    ``(g) Reference Price for Temperate Japonica Rice.--In order to 
reflect price premiums, the Secretary shall provide a reference price 
with respect to temperate japonica rice in an amount equal to the amount 
established under subparagraph (F) of section 1111(19), as adjusted by 
paragraph (8) of such section, multiplied by the ratio obtained by 
dividing--
            ``(1) the simple average of the marketing year average price 
        of medium grain rice from the 2012 through 2016 crop years; by
            ``(2) the simple average of the marketing year average price 
        of all rice from the 2012 through 2016 crop years.''.
SEC. 1107. AGRICULTURE RISK COVERAGE.

    Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is 
amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1)--
                    (A) by inserting ``(beginning with the 2019 crop 
                year, based on the physical location of the farm)'' 
                after ``payments''; and
                    (B) by inserting ``or the 2019 through 2023 crop 
                years, as applicable'' after ``2014 through 2018 crop 
                years'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                      ``paragraph (4)'' and inserting ``paragraphs (4) 
                      and (5)''; and
                          (ii) in subparagraph (B), by striking ``(5)'' 
                      and inserting ``(6)'';
                    (B) in paragraph (3)--
                          (i) in subparagraph (A)(ii), by striking 
                      ``(5)'' and inserting ``(6)''; and
                          (ii) in subparagraph (C), by striking ``2018'' 
                      and inserting ``2023'';
                    (C) in paragraph (4)--
                          (i) by striking ``If'' and inserting the 
                      following:
                    ``(A) 2014 through 2018 crop years.--Effective for 
                the 2014 through 2018 crop years, if''; and
                          (ii) by adding at the end the following:
                    ``(B) 2019 through 2023 crop years.--Effective for 
                the 2019 through 2023 crop years, if the yield per 
                planted acre for the covered commodity or historical 
                county yield per planted acre for the covered commodity 
                for any of

[[Page 132 STAT. 4506]]

                the 5 most recent crop years, as determined by the 
                Secretary, is less than 80 percent of the transitional 
                yield, as determined by the Secretary, the amounts used 
                for any of those years in paragraph (2)(A) or (3)(A)(i) 
                shall be 80 percent of the transitional yield.'';
                    (D) by redesignating paragraph (5) as paragraph (6);
                    (E) by inserting after paragraph (4) the following:
            ``(5) Trend-adjusted yield.--The Secretary shall calculate 
        and use a trend-adjusted yield factor to adjust the yield 
        determined under paragraph (2)(A) and subsection (b)(1)(A), 
        taking into consideration, but not exceeding, the trend-adjusted 
        yield factor that is used to increase yield history under the 
        endorsement under the Federal Crop Insurance Act (7 U.S.C. 1501 
        et seq.) for that crop and county.''; and
                    (F) in paragraph (6) (as so redesignated)--
                          (i) by striking ``Reference price.--If the 
                      national average market price'' and inserting the 
                      following: ``Low national average market price.--
                    ``(A) Reference price.--For the 2014 through 2018 
                crop years, if the national average market price''; and
                          (ii) by adding at the end the following:
                    ``(B) Effective reference price.--For the 2019 
                through 2023 crop years, if the national average market 
                price received by producers during the 12-month 
                marketing year for any of the 5 most recent crop years 
                is lower than the effective reference price for the 
                covered commodity, the Secretary shall use the effective 
                reference price for any of those years for the amounts 
                in paragraph (2)(B) or (3)(A)(ii).'';
            (3) in subsection (d)--
                    (A) in paragraph (1), by redesignating subparagraphs 
                (A) and (B) as clauses (i) and (ii), respectively, and 
                indenting appropriately;
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and indenting 
                appropriately;
                    (C) in the matter preceding subparagraph (A) (as so 
                redesignated), by striking ``The payment'' and inserting 
                the following:
            ``(1) In general.--The payment''; and
                    (D) by adding at the end the following:
            ``(2) Announcement.--Not later than 30 days after the end of 
        each applicable 12-month marketing year for each covered 
        commodity, the Secretary shall publish the payment rate 
        determined under paragraph (1) for each county.'';
            (4) in subsection (e), in the matter preceding paragraph 
        (1), by striking ``2018'' and inserting ``2023'';
            (5) in subsection (g)--
                    (A) in paragraph (2), by striking ``to the maximum 
                extent practicable,'';
                    (B) in paragraph (3), by striking ``and'' after the 
                semicolon at the end;
                    (C) in paragraph (4)--
                          (i) in the matter preceding subparagraph (A), 
                      by inserting ``effective for the 2014 through 2018 
                      crop years,'' before ``in the case of''; and

[[Page 132 STAT. 4507]]

                          (ii) in subparagraph (B), by striking the 
                      period at the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(5) effective for the 2019 through 2023 crop years, in the 
        case of county coverage, assign an actual or benchmark county 
        yield for each planted acre for the crop year for the covered 
        commodity--
                    ``(A) for a county for which county data collected 
                by the Risk Management Agency are sufficient for the 
                Secretary to offer a county-wide insurance product, 
                using the actual average county yield determined by the 
                Risk Management Agency; or
                    ``(B) for a county not described in subparagraph 
                (A), using--
                          ``(i) other sources of yield information, as 
                      determined by the Secretary; or
                          ``(ii) the yield history of representative 
                      farms in the State, region, or crop reporting 
                      district, as determined by the Secretary.''; and
            (6) by adding at the end the following:

    ``(h) Publications.--
            ``(1) County guarantee.--
                    ``(A) In general.--For each crop year for a covered 
                commodity, the Secretary shall publish information 
                describing, for that crop year for the covered commodity 
                in each county--
                          ``(i) the agriculture risk coverage guarantee 
                      for county coverage determined under subsection 
                      (c)(1);
                          ``(ii) the average historical county yield 
                      determined under subsection (c)(2)(A); and
                          ``(iii) the national average market price 
                      determined under subsection (c)(2)(B).
                    ``(B) Timing.--
                          ``(i) In general.--Except as provided in 
                      clauses (ii) and (iii), not later than 30 days 
                      after the end of each applicable 12-month 
                      marketing year, the Secretary shall publish the 
                      information described in subparagraph (A).
                          ``(ii) Insufficient data.--In the case of a 
                      covered commodity, such as temperate japonica 
                      rice, for which the Secretary cannot determine the 
                      national average market price for the most recent 
                      12-month marketing year by the date described in 
                      clause (i) due to insufficient reporting of timely 
                      pricing data by 1 or more nongovernmental 
                      entities, including a marketing cooperative for 
                      the covered commodity, as soon as practicable 
                      after the pricing data are made available, the 
                      Secretary shall publish information describing--
                                    ``(I) the agriculture risk coverage 
                                guarantee under subparagraph (A)(i); and
                                    ``(II) the national average market 
                                price under subparagraph (A)(iii).
                          ``(iii) Transition.--Not later than 60 days 
                      after the date of enactment of the Agriculture 
                      Improvement Act of 2018, the Secretary shall 
                      publish the information described in clauses (i) 
                      and (ii) of subparagraph (A) for the 2018 crop 
                      year.

[[Page 132 STAT. 4508]]

            ``(2) Actual average county yield.--As soon as practicable 
        after each crop year, the Secretary shall determine and publish 
        each actual average county yield for each covered commodity, as 
        determined under subsection (b)(1)(A).
            ``(3) Data sources for county yields.--For the 2018 crop 
        year and each crop year thereafter, the Secretary shall make 
        publicly available information describing, for the most recent 
        crop year--
                    ``(A) the sources of data used to calculate county 
                yields under subsection (c)(2)(A) for each covered 
                commodity--
                          ``(i) by county; and
                          ``(ii) nationally; and
                    ``(B) the number and outcome of occurrences in which 
                the Farm Service Agency reviewed, changed, or determined 
                not to change a source of data used to calculate county 
                yields under subsection (c)(2)(A).

    ``(i) Administrative Units.--
            ``(1) In general.--For purposes of agriculture risk coverage 
        payments in the case of county coverage, a county may be divided 
        into not greater than 2 administrative units in accordance with 
        this subsection.
            ``(2) Eligible counties.--A county that may be divided into 
        administrative units under this subsection is a county that--
                    ``(A) is larger than 1,400 square miles; and
                    ``(B) contains more than 190,000 base acres.
            ``(3) Elections.--Before making any agriculture risk 
        coverage payments for the 2019 crop year, the Farm Service 
        Agency State committee, in consultation with the Farm Service 
        Agency county or area committee of a county described in 
        paragraph (2), may make a 1-time election to divide the county 
        into administrative units under this subsection along a boundary 
        that better reflects differences in weather patterns, soil 
        types, or other factors.
            ``(4) Limitation.--The Secretary shall--
                    ``(A) limit the number of counties that may be 
                divided into administrative units under paragraph (3) to 
                25 counties; and
                    ``(B) give preference to the division of counties 
                that have greater variation in climate, soils, and 
                expected productivity between the proposed 
                administrative units.
            ``(5) Administration.--For purposes of providing agriculture 
        risk coverage payments in the case of county coverage, the 
        Secretary shall consider an administrative unit elected under 
        paragraph (3) to be a county for the 2019 through 2023 crop 
        years.''.
SEC. 1108. REPEAL OF TRANSITION ASSISTANCE FOR PRODUCERS OF UPLAND 
                          COTTON.

    Section 1119 of the Agricultural Act of 2014 (7 U.S.C. 9019) is 
repealed.

[[Page 132 STAT. 4509]]

                       Subtitle B--Marketing Loans

SEC. 1201. EXTENSIONS.

    (a) In General.--Section 1201(b)(1) of the Agricultural Act of 2014 
(7 U.S.C. 9031(b)(1)) is amended by striking ``2018'' and inserting 
``2023''.
    (b) Repayment.--Section 1204 of the Agricultural Act of 2014 (7 
U.S.C. 9034) is amended--
            (1) in subsection (e)(2)(B), in the matter preceding clause 
        (i), by striking ``2019''and inserting ``2024''; and
            (2) in subsection (g), by striking ``2018'' and inserting 
        ``2023''.

    (c) Loan Deficiency Payments.--
            (1) Extension.--Section 1205(a)(2)(B) of the Agricultural 
        Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking 
        ``2018'' and inserting ``2023''.
            (2) Payments in lieu of ldps.--Section 1206 of the 
        Agricultural Act of 2014 (7 U.S.C. 9036) is amended in 
        subsections (a) and (d) by striking ``2018'' each place it 
        appears and inserting ``2023''.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) In General.--Section 1202 of the Agricultural Act of 2014 (7 
U.S.C. 9032) is amended--
            (1) in subsection (a), by striking the subsection heading 
        and inserting ``2014 through 2018 crop years'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
            (3) by inserting after subsection (a) the following:

    ``(b) 2019 Through 2023 Crop Years.--For purposes of each of the 
2019 through 2023 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, $3.38 per bushel.
            ``(2) In the case of corn, $2.20 per bushel.
            ``(3) In the case of grain sorghum, $2.20 per bushel.
            ``(4) In the case of barley, $2.50 per bushel.
            ``(5) In the case of oats, $2.00 per bushel.
            ``(6)(A) Subject to subparagraphs (B) and (C), in the case 
        of base quality of upland cotton, 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 planting.
            ``(B) Except as provided in subparagraph (C), the loan rate 
        determined under subparagraph (A) may not equal less than an 
        amount equal to 98 percent of the loan rate for base quality of 
        upland cotton for the preceding year.
            ``(C) The loan rate determined under subparagraph (A) may 
        not be equal to an amount--
                    ``(i) less than $0.45 per pound; or
                    ``(ii) more than $0.52 per pound.
            ``(7) In the case of extra long staple cotton, $0.95 per 
        pound.
            ``(8) In the case of long grain rice, $7.00 per 
        hundredweight.

[[Page 132 STAT. 4510]]

            ``(9) In the case of medium grain rice, $7.00 per 
        hundredweight.
            ``(10) In the case of soybeans, $6.20 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, $6.15 per hundredweight.
            ``(13) In the case of lentils, $13.00 per hundredweight.
            ``(14) In the case of small chickpeas, $10.00 per 
        hundredweight.
            ``(15) In the case of large chickpeas, $14.00 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.''; and
            (4) in subsection (c) (as so redesignated), by striking 
        ``subsection (a)(11)'' and inserting ``subsections (a)(11) and 
        (b)(11)''.

    (b) Conforming Amendment.--Section 1204(h)(1) of the Agricultural 
Act of 2014 (7 U.S.C. 9034(h)(1)) is amended by striking ``section 
1202(a)(20)'' and inserting ``subsection (a)(20) or (b)(20), as 
applicable, of section 1202''.
SEC. 1203. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS.

    (a) 2008 Authority.--Section 1207 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8737) is amended by striking subsection 
(c).
    (b) 2014 Authority.--Section 1207(c) of the Agricultural Act of 2014 
(7 U.S.C. 9037(c)) is amended by striking the subsection heading and 
inserting ``Economic Adjustment Assistance for Textile Mills''.
SEC. 1204. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE 
                          COTTON.

    (a) In General.--Section 1208(a) of the Agricultural Act of 2014 (7 
U.S.C. 9038(a)) is amended in the matter preceding paragraph (1) by 
striking ``2019'' and inserting ``2024''.
    (b) Payments Under Program; Trigger.--Section 1208(b)(2) of the 
Agricultural Act of 2014 (7 U.S.C. 9038(b)(2)) is amended by striking 
``134 percent'' and inserting ``113 percent''.
SEC. 1205. AVAILABILITY OF RECOURSE LOANS.

    (a) In General.--Section 1209 of the Agricultural Act of 2014 (7 
U.S.C. 9039) is amended in subsections (a)(2) and (b) by striking 
``2018'' each place it appears and inserting ``2023''.
    (b) Recourse Loans Available for Contaminated Commodities.--Section 
1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended--
            (1) by redesignating subsection (c) as subsection (d); and

[[Page 132 STAT. 4511]]

            (2) by inserting after subsection (b) the following:

    ``(c) Recourse Loans Available for Contaminated Commodities.--In the 
case of a loan commodity that is ineligible for 100 percent of the 
nonrecourse marketing loan rate in the county due to a determination 
that the commodity is contaminated yet still merchantable, for each of 
the 2019 through 2023 crops of such loan commodity, the Secretary shall 
make available recourse commodity loans, at the rate provided under 
section 1202, on any production.''.

                            Subtitle C--Sugar

SEC. 1301. SUGAR POLICY.

    (a) Sugar Program.--
            (1) Sugarcane.--Section 156(a) of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)) is 
        amended--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) 19.75 cents per pound for raw cane sugar for each of 
        the 2019 through 2023 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 ``2018'' and inserting 
        ``2023''.
            (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 ``2018'' and inserting ``2023''.

    (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 ``2018'' and inserting ``2023''.
            (2) Effective period.--Section 359l(a) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 
        striking ``2018'' and inserting ``2023''.

  Subtitle D--Dairy Margin Coverage and Other Dairy Related Provisions

SEC. 1401. DAIRY MARGIN COVERAGE.

    (a) Review of Data Used in Calculation of Average Feed Cost.--Not 
later than 60 days after the date of the enactment of this Act, the 
Secretary shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report evaluating the extent to which the 
average cost of feed used by a dairy operation to produce a 
hundredweight of milk calculated by the Secretary as required by section 
1402(a) of the Agricultural Act of 2014 (7 U.S.C. 9052(a)) is 
representative of actual dairy feed costs.
    (b) Corn Silage Report.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the

[[Page 132 STAT. 4512]]

Senate a report detailing the costs incurred by dairy operations in the 
use of corn silage as feed, and the difference between the feed cost of 
corn silage and the feed cost of corn.
    (c) <<NOTE: 7 USC 9052 note.>>  Collection of Alfalfa Hay Data.--Not 
later than 120 days after the date of the enactment of this Act, the 
Secretary, acting through the National Agricultural Statistics Service, 
shall revise monthly price survey reports to include prices for high-
quality alfalfa hay in the top five milk producing States, as measured 
by volume of milk produced during the previous month.

    (d) Registration of Multiproducer Dairy Operations.--Section 1404(b) 
of the Agricultural Act of 2014 (7 U.S.C. 9054(b)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Election period for 2019 calendar year.--For the 2019 
        calendar year, the Secretary shall--
                    ``(A) open the election period not later than 60 
                days after the effective date described in section 
                1401(m) of the Agriculture Improvement Act of 2018; and
                    ``(B) hold that election period open for not less 
                than 90 days.
            ``(4) Treatment of multiproducer dairy operation.--
                    ``(A) In general.--If a participating dairy 
                operation is operated by more than 1 dairy producer, the 
                dairy producers of the dairy operation who elect to 
                participate shall be treated as a single dairy operation 
                for purposes of participating in dairy margin coverage.
                    ``(B) Rule of construction.--Subparagraph (A) shall 
                not be construed to allow a producer to adjust the 
                proportion of their share covered under tier I or tier 
                II premiums from the proportion covered for the 
                operation.''.

    (e) Relation to Livestock Gross Margin for Dairy Program.--
            (1) In general.--Section 1404 of the Agricultural Act of 
        2014 (7 U.S.C. 9054) is amended by striking subsection (d).
            (2) Retroactive program option.--Section 1404(b)(2) of the 
        Agricultural Act of 2014 (7 U.S.C. 9054(b)(2)) is amended--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                    ``(A) In general.--The Secretary''; and
                    (B) by adding at the end the following:
                    ``(B) Retroactive program option.--In the case of a 
                dairy operation that, by operation of subsection (d) (as 
                in effect on the day before the date of enactment of the 
                Agriculture Improvement Act of 2018), was ineligible to 
                participate in the margin protection program for any 
                part of calendar year 2018, the Secretary shall 
                establish a new election period for that calendar year 
                that ends on a date that is not less than 90 days after 
                the date of enactment of the Agriculture Improvement Act 
                of 2018 and the Secretary determines is necessary for 
                dairy operations to make new elections to participate in 
                the margin protection program (as in effect on the day 
                before the date of enactment of the Agriculture 
                Improvement Act of 2018) for that calendar year, 
                including dairy operations that elected to participate 
                in the livestock gross margin for dairy program under 
                the Federal Crop Insurance Act (7 U.S.C. 1501 et

[[Page 132 STAT. 4513]]

                seq.) before the date of enactment of the Bipartisan 
                Budget Act of 2018 (Public Law 115-123).''.

    (f) Production History of Participating Dairy Operators.--
            (1) Adjustment.--Section 1405 of the Agricultural Act of 
        2014 (7 U.S.C. 9055) is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (2), by striking ``In 
                      subsequent years'' and inserting ``In the 
                      subsequent calendar years ending before January 1, 
                      2019''; and
                          (ii) in paragraph (3), by inserting ``, as 
                      applicable'' after ``paragraph (2)''; and
                    (B) in subsection (b)--
                          (i) by redesignating paragraphs (1) and (2) as 
                      subparagraphs (A) and (B), respectively, and 
                      indenting appropriately;
                          (ii) in the matter preceding subparagraph (A) 
                      (as so redesignated), by striking ``In the case'' 
                      and inserting the following:
            ``(1) Dairy operations with less than 1 year of production 
        history.--In the case''; and
                          (iii) by adding at the end the following:
            ``(2) Dairy operations with 1 year or more of production 
        history.--In the case of a participating dairy operation that 
        was not in operation prior to January 1, 2014, that has not 
        established a production history, and that has been in operation 
        for equal to or longer than 1 year, the participating dairy 
        operation shall elect the annual milk marketings during any 1 
        calendar year to determine the production history of the 
        participating dairy operation.
            ``(3) Adjustment.--The Secretary shall adjust the production 
        history of a participating dairy operation determined under 
        paragraph (1) or (2) to reflect any increase or decrease in the 
        national average milk production relative to calendar year 
        2017.''.
            (2) Limitation on changes to business structure.--Section 
        1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended 
        by adding at the end the following new subsection:

    ``(d) Limitation on Changes to Business Structure.--The Secretary 
may not make dairy margin coverage payments to a participating dairy 
operation if the Secretary determines that the participating dairy 
operation has reorganized the structure of such operation solely for the 
purpose of qualifying as a new operation under subsection (b).''.
    (g) Coverage Level Threshold and Coverage Percentage.--Section 1406 
of the Agricultural Act of 2014 (7 U.S.C. 9056) is amended by striking 
subsection (a) and inserting the following:
    ``(a) Coverage Level Threshold and Coverage Percentage.--
            ``(1) Coverage level threshold.--
                    ``(A) In general.--For purposes of receiving dairy 
                margin coverage payments for a month, a participating 
                dairy operation shall annually elect a coverage level 
                threshold that is equal to $4.00, $4.50, $5.00, $5.50, 
                $6.00, $6.50, $7.00, $7.50, $8.00, $8.50, $9.00, or 
                $9.50.
                    ``(B) Applicability.--Except as provided in 
                subparagraph (C), the coverage level threshold elected 
                under

[[Page 132 STAT. 4514]]

                subparagraph (A) shall apply to the covered production 
                elected by the participating dairy operation under 
                paragraph (2).
                    ``(C) Second coverage election for tier ii.--In the 
                case of a participating dairy operation that elects a 
                coverage level threshold of $8.50, $9.00, or $9.50 under 
                subparagraph (A)--
                          ``(i) that coverage level threshold shall 
                      apply to the first 5,000,000 pounds of milk 
                      marketings included in the covered production 
                      elected by the participating dairy operation; and
                          ``(ii) the participating dairy operation shall 
                      elect a coverage level threshold that is equal to 
                      $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, 
                      $7.50, or $8.00 to apply to milk marketings in 
                      excess of 5,000,000 pounds included in the covered 
                      production elected by the participating dairy 
                      operation.
            ``(2) Coverage percentage.--For purposes of receiving dairy 
        margin coverage payments for a month, a participating dairy 
        operation shall annually elect a percentage of coverage, in 5-
        percent increments, not exceeding 95 percent of the production 
        history of the participating dairy operation.''.

    (h) Producer Premiums.--Section 1407 of the Agricultural Act of 2014 
(7 U.S.C. 9057) is amended--
            (1) in subsection (b), by striking paragraphs (2) and (3) 
        and inserting the following:
            ``(2) Producer premiums.--Except as provided in subsection 
        (g), the following annual premiums apply:


----------------------------------------------------------------------------------------------------------------
                    ``Coverage Level                                         Premium per Cwt.
----------------------------------------------------------------------------------------------------------------
$4.00                                                    None
$4.50                                                    $0.0025
$5.00                                                    $0.005
$5.50                                                    $0.030
$6.00                                                    $0.050
$6.50                                                    $0.070
$7.00                                                    $0.080
$7.50                                                    $0.090
$8.00                                                    $0.100
$8.50                                                    $0.105
$9.00                                                    $0.110
$9.50                                                    $0.150''; and
 
----------------------------------------------------------------------------------------------------------------

            (2) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Producer premiums.--Except as provided in subsection 
        (g), the following annual premiums apply:


----------------------------------------------------------------------------------------------------------------
                    ``Coverage Level                                         Premium per Cwt.
----------------------------------------------------------------------------------------------------------------
$4.00                                                    None

[[Page 132 STAT. 4515]]

 
$4.50                                                    $0.0025
$5.00                                                    $0.005
$5.50                                                    $0.100
$6.00                                                    $0.310
$6.50                                                    $0.650
$7.00                                                    $1.107
$7.50                                                    $1.413
$8.00                                                    $1.813''.
 
----------------------------------------------------------------------------------------------------------------

    (i) Repayment of Premiums.--Section 1407 of the Agricultural Act of 
2014 (7 U.S.C. 9057) is amended by adding at the end the following:
    ``(f) Repayment of Premiums.--
            ``(1) In general.--Each dairy operation described in 
        paragraph (2) shall be eligible to receive a repayment from the 
        Secretary in an amount equal to the difference between--
                    ``(A) the total amount of premiums paid by the 
                participating dairy operation under this section for 
                each applicable calendar year; and
                    ``(B) the total amount of payments made to the 
                participating dairy operation under section 1406 for 
                that calendar year.
            ``(2) Eligibility.--A dairy operation that is eligible to 
        receive a repayment under paragraph (1) is a dairy operation 
        that--
                    ``(A) participated in the margin protection program, 
                as in effect for any of calendar years 2014 through 
                2017; and
                    ``(B) submits to the Secretary an application for 
                the repayment at such time, in such manner, and 
                containing such information as the Secretary may 
                require.
            ``(3) Method of repayment.--A dairy operation that is 
        eligible to receive a repayment under paragraph (1) shall elect 
        to receive the repayment--
                    ``(A) in an amount equal to 75 percent of the 
                repayment calculated under that paragraph as credit that 
                may be used by the dairy operation for dairy margin 
                coverage premiums; or
                    ``(B) in an amount equal to 50 percent of the 
                repayment calculated under that paragraph as a direct 
                cash repayment.
            ``(4) Applicability.--Paragraph (1) shall only apply to a 
        calendar year during the period of calendar years 2014 through 
        2017 for which the amount described in subparagraph (A) of that 
        paragraph is greater than the amount described in subparagraph 
        (B) of that paragraph.''.

    (j) Premium Discount.--Section 1407 of the Agricultural Act of 2014 
(7 U.S.C. 9057) (as amended by subsection (i)) is amended by adding at 
the end the following:
    ``(g) Premium Discount.--The premium per hundredweight specified in 
the tables contained in subsections (b) and (c) for each coverage level 
shall be reduced by 25 percent in accordance with the following:

[[Page 132 STAT. 4516]]

            ``(1) In general.--For each of calendar years 2019 through 
        2023, for a participating dairy operation that makes a 1-time 
        election of coverage level in a tier and of a percentage of 
        coverage under section 1406(a) for the 5-year period beginning 
        in January 2019.
            ``(2) New dairy operations.--For each applicable calendar 
        year through 2023, for a participating dairy operation that--
                    ``(A) establishes a production history pursuant to 
                section 1405(b); and
                    ``(B) makes a 1-time election of coverage level in a 
                tier and of a percentage of coverage under section 
                1406(a) for the period beginning with the first 
                available calendar year and ending in December 2023.
            ``(3) Full participation required.--Notwithstanding the 
        annual elections under section 1406(a)--
                    ``(A) a 1-time enrollment under this subsection 
                shall remain in effect for the full duration applicable 
                to a participating dairy operation in accordance with 
                paragraph (1) or (2)(B), as applicable; and
                    ``(B) a participating dairy operation that makes a 
                1-time enrollment under this subsection and is 
                noncompliant under section 1408 shall be subject to that 
                section.''.

    (k) Conforming Amendments Related to Program Name.--
            (1) Heading.--The heading of part I of subtitle D of title I 
        of the Agricultural Act of 2014 (Public Law 113-79; 128 Stat. 
        688) is amended to read as follows:

                   ``PART I--DAIRY MARGIN COVERAGE''.

            (2) Definitions.--Section 1401 of the Agricultural Act of 
        2014 (7 U.S.C. 9051) is amended--
                    (A) by striking paragraphs (5) and (6) and inserting 
                the following new paragraphs:
            ``(5) Dairy margin coverage.--The term `dairy margin 
        coverage' means the dairy margin coverage program required by 
        section 1403.
            ``(6) Dairy margin coverage payment.--The term `dairy margin 
        coverage payment' means a payment made to a participating dairy 
        operation under dairy margin coverage pursuant to section 
        1406.''; and
                    (B) in paragraphs (7) and (8), by striking ``the 
                margin protection program'' both places it appears and 
                inserting ``dairy margin coverage''.
            (3) Calculation of actual dairy production margin.--Section 
        1402(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9052(b)(1)) 
        is amended in the matter preceding subparagraph (A) by striking 
        ``the margin protection program'' and inserting ``dairy margin 
        coverage''.
            (4) Program operation.--Section 1403 of the Agricultural Act 
        of 2014 (7 U.S.C. 9053) is amended--
                    (A) by striking the section heading and inserting 
                ``dairy margin coverage'';
                    (B) by striking ``Not later than September 1, 2014, 
                the Secretary shall establish and administer a margin 
                protection program'' and inserting the following:

    ``(a) In General.--The Secretary shall continue to administer a 
dairy margin coverage program'';

[[Page 132 STAT. 4517]]

                    (C) in subsection (a) (as so designated), by 
                striking ``margin protection payment'' both places it 
                appears and inserting ``dairy margin coverage payment''; 
                and
                    (D) by adding at the end the following:

    ``(b) Regulations.--Subpart A of part 1430 of title 7, Code of 
Federal Regulations (as in effect on the date of enactment of the 
Agriculture Improvement Act of 2018), shall remain in effect for dairy 
margin coverage beginning with the 2019 calendar year, except to the 
extent that the regulations are inconsistent with any provision of this 
Act.''.
            (5) Participation.--Section 1404 of the Agricultural Act of 
        2014 (7 U.S.C. 9054) is amended--
                    (A) in the section heading, by striking ``margin 
                protection program'' and inserting ``dairy margin 
                coverage'';
                    (B) in subsection (a), by striking ``the margin 
                protection program to receive margin protection 
                payments'' and inserting ``dairy margin coverage to 
                receive dairy margin coverage payments''; and
                    (C) in subsections (b) and (c), by striking ``the 
                margin protection program'' each place it appears and 
                inserting ``dairy margin coverage''.
            (6) Production history.--Section 1405 of the Agricultural 
        Act of 2014 (7 U.S.C. 9055) is amended in subsections (a)(1) and 
        (c) by striking ``the margin protection program'' each place it 
        appears and inserting ``dairy margin coverage''.
            (7) Payments.--Section 1406 of the Agricultural Act of 2014 
        (7 U.S.C. 9056) is amended--
                    (A) in the section heading, by striking ``margin 
                protection'' and inserting ``dairy margin coverage'';
                    (B) by striking ``margin protection'' each place it 
                appears and inserting ``dairy margin coverage''; and
                    (C) in the heading of subsection (c), by striking 
                ``Margin Protection''.
            (8) Premiums.--Section 1407 of the Agricultural Act of 2014 
        (7 U.S.C. 9057) is amended--
                    (A) in the section heading, by striking ``margin 
                protection program'' and inserting ``dairy margin 
                coverage'';
                    (B) in subsection (a), in the matter preceding 
                paragraph (1), by striking ``the margin protection 
                program'' and inserting ``dairy margin coverage'';
                    (C) in subsection (d), by striking ``program'' and 
                inserting ``dairy margin coverage''; and
                    (D) in subsection (e)--
                          (i) by striking ``the margin protection 
                      program'' both places it appears and inserting 
                      ``dairy margin coverage''; and
                          (ii) in paragraph (2), by striking ``integrity 
                      of the program'' and inserting ``integrity of 
                      dairy margin coverage''.
            (9) Failure to pay administrative fees or premiums.--Section 
        1408 of the Agricultural Act of 2014 (7 U.S.C. 9058) is 
        amended--
                    (A) in subsection (a)(2), by striking ``margin 
                protection'' and inserting ``dairy margin coverage''; 
                and

[[Page 132 STAT. 4518]]

                    (B) in subsection (b), by striking ``the margin 
                protection program'' and inserting ``dairy margin 
                coverage''.
            (10) Administration and enforcement.--Section 1410 of the 
        Agricultural Act of 2014 (7 U.S.C. 9060) is amended--
                    (A) in subsections (a) and (c), by striking ``the 
                margin protection program'' each place it appears and 
                inserting ``dairy margin coverage''; and
                    (B) in subsection (b), by striking ``margin 
                protection'' and inserting ``dairy margin coverage''.

    (l) Duration.--Section 1409 of the Agricultural Act of 2014 (7 
U.S.C. 9059) is amended--
            (1) by striking ``The margin protection program'' and 
        inserting ``Dairy margin coverage''; and
            (2) by striking ``2018'' and inserting ``2023''.

    (m) <<NOTE: 7 USC 9051 note.>>  Effective Date.--The amendments made 
by this section shall take effect on January 1, 2019.
SEC. 1402. REAUTHORIZATIONS.

    (a) Forward Pricing.--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 ``2018'' and inserting 
        ``2023''; and
            (2) in paragraph (2), by striking ``2021'' and inserting 
        ``2026''.

    (b) Indemnity Program.--Section 3 of Public Law 90-484 (7 U.S.C. 
4553) is amended by striking ``2018'' and inserting ``2023''.
    (c) Promotion and Research.--Section 113(e)(2) of the Dairy 
Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 
striking ``2018'' and inserting ``2023''.
SEC. 1403. CLASS I SKIM MILK PRICE.

    (a) Class I Skim Milk Price.--Section 8c(5)(A) of the Agricultural 
Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended by striking 
``Throughout'' in the third sentence and all that follows through the 
period at the end of the fourth sentence and inserting ``Throughout the 
2-year period beginning on the effective date of this sentence (and 
subsequent to such 2-year period unless modified by amendment to the 
order involved), for purposes of determining prices for milk of the 
highest use classification, the Class I skim milk price per 
hundredweight specified in section 1000.50(b) of title 7, Code of 
Federal Regulations (or successor regulations), shall be the sum of the 
adjusted Class I differential specified in section 1000.52 of such title 
7 (or successor regulations), plus the adjustment to Class I prices 
specified in sections 1005.51(b), 1006.51(b), and 1007.51(b) of such 
title 7 (or successor regulations), plus the simple average of the 
advanced pricing factors computed in sections 1000.50(q)(1) and 
1000.50(q)(2) of such title 7 (or successor regulations), plus $0.74.''.
    (b) <<NOTE: 7 USC 608c note.>>  Effective Date and Implementation.--
            (1) Effective date.--The amendment made by subsection (a) 
        shall take effect on the first day of the first month beginning 
        more than 120 days after the date of enactment of this Act.
            (2) Implementation.--Implementation of the amendment made by 
        subsection (a) shall not be subject to any of the following:
                    (A) The notice and comment provisions of section 553 
                of title 5, United States Code.

[[Page 132 STAT. 4519]]

                    (B) The notice and hearing requirements of section 
                8c(3) of the Agricultural Adjustment Act (7 U.S.C. 
                608c(3)), reenacted with amendments by the Agricultural 
                Marketing Agreement Act of 1937.
                    (C) The order amendment requirements of section 
                8c(17) of that Act (7 U.S.C. 608c(17)).
                    (D) A referendum under section 8c(19) of that Act (7 
                U.S.C. 608c(19)).
SEC. 1404. DAIRY PRODUCT DONATION.

    (a) Repeal of Dairy Product Donation Program.--Section 1431 of the 
Agricultural Act of 2014 (7 U.S.C. 9071) is repealed.
    (b) Milk Donation Program.--
            (1) In general.--Part III of subtitle D of title I of the 
        Agricultural Act of 2014 (Public Law 113-79; 128 Stat. 695) is 
        amended to read as follows:

                    ``PART III--MILK DONATION PROGRAM

``SEC. 1431. <<NOTE: 7 USC 9071.>>  MILK DONATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible dairy organization.--The term `eligible dairy 
        organization' means a dairy farmer (either individually or as 
        part of a cooperative), or a dairy processor, who--
                    ``(A) accounts to a Federal milk marketing order 
                marketwide pool; and
                    ``(B) incurs qualified expenses under subsection 
                (e).
            ``(2) Eligible distributor.--The term `eligible distributor' 
        means a public or private nonprofit organization that 
        distributes donated eligible milk.
            ``(3) Eligible milk.--The term `eligible milk' means Class I 
        fluid milk products produced and processed in the United States.
            ``(4) Eligible partnership.--The term `eligible partnership' 
        means a partnership between an eligible dairy organization and 
        an eligible distributor.
            ``(5) Participating partnership.--The term `participating 
        partnership' means an eligible partnership for which the 
        Secretary has approved a donation and distribution plan for 
        eligible milk under subsection (c)(2).

    ``(b) Program Required; Purposes.--Not later than 180 days after the 
date of enactment of the Agriculture Improvement Act of 2018, the 
Secretary shall establish and administer a milk donation program for the 
purposes of--
            ``(1) encouraging the donation of eligible milk;
            ``(2) providing nutrition assistance to individuals in low-
        income groups; and
            ``(3) reducing food waste.

    ``(c) Donation and Distribution Plans.--
            ``(1) In general.--To be eligible to receive reimbursement 
        under subsection (d), an eligible partnership shall submit to 
        the Secretary a donation and distribution plan that--
                    ``(A) describes the process that the eligible 
                partnership will use for the donation, processing, 
                transportation, temporary storage, and distribution of 
                eligible milk;

[[Page 132 STAT. 4520]]

                    ``(B) includes an estimate of the quantity of 
                eligible milk that the eligible partnership will donate 
                each year, based on--
                          ``(i) preplanned donations; and
                          ``(ii) contingency plans to address 
                      unanticipated donations; and
                    ``(C) describes the rate at which the eligible 
                partnership will be reimbursed, which shall be based on 
                a percentage of the limitation described in subsection 
                (e)(2), not to exceed 100 percent.
            ``(2) Review and approval.--Not less frequently than 
        annually, the Secretary shall--
                    ``(A) review donation and distribution plans 
                submitted under paragraph (1); and
                    ``(B) determine whether to approve or disapprove 
                each of those donation and distribution plans.

    ``(d) Reimbursement.--
            ``(1) In general.--On receipt of appropriate documentation 
        under paragraph (2), the Secretary shall reimburse an eligible 
        dairy organization that is a member of a participating 
        partnership on a regular basis for qualified expenses described 
        in subsection (e).
            ``(2) Documentation.--
                    ``(A) In general.--An eligible dairy organization 
                shall submit to the Secretary such documentation as the 
                Secretary may require to demonstrate the qualified 
                expenses described in subsection (e) of the eligible 
                dairy organization.
                    ``(B) Verification.--The Secretary may verify the 
                accuracy of documentation submitted under subparagraph 
                (A) by spot checks and audits.
            ``(3) Retroactive reimbursement.--In providing 
        reimbursements under paragraph (1), the Secretary may provide 
        reimbursements for qualified expenses incurred before the date 
        on which the donation and distribution plan for the applicable 
        participating partnership was approved by the Secretary.

    ``(e) Qualified Expenses.--
            ``(1) In general.--The amount of a reimbursement under 
        subsection (d) shall be an amount equal to the product of--
                    ``(A) the quantity of eligible milk donated by the 
                eligible dairy organization under a donation and 
                distribution plan approved by the Secretary under 
                subsection (c); and
                    ``(B) subject to the limitation under paragraph (2), 
                the rate described in that donation and distribution 
                plan under subsection (c)(1)(C).
            ``(2) Limitation.--Expenses eligible for reimbursement under 
        subsection (d) shall not exceed the value that an eligible dairy 
        organization incurred by accounting to the Federal milk 
        marketing order pool at the difference in the Class I milk value 
        and the lowest classified price for the applicable month (either 
        Class III milk or Class IV milk).

    ``(f) Preapproval.--
            ``(1) In general.--The Secretary shall--
                    ``(A) establish a process for an eligible 
                partnership to apply for preapproval of donation and 
                distribution plans under subsection (c); and

[[Page 132 STAT. 4521]]

                    ``(B) not less frequently than annually, preapprove 
                an amount for qualified expenses described in subsection 
                (e) that the Secretary will allocate for reimbursement 
                under each donation and distribution plan preapproved 
                under subparagraph (A), based on an assessment of--
                          ``(i) the feasibility of the plan; and
                          ``(ii) the extent to which the plan advances 
                      the purposes described in subsection (b).
            ``(2) Preference.--In preapproving amounts for reimbursement 
        under paragraph (1)(B), the Secretary shall give preference to 
        eligible partnerships that will provide funding and in-kind 
        contributions in addition to the reimbursements.
            ``(3) Adjustments.--
                    ``(A) In general.--The Secretary shall adjust or 
                increase amounts preapproved for reimbursement under 
                paragraph (1)(B) based on performance and demand.
                    ``(B) Requests for increase.--
                          ``(i) In general.--The Secretary shall 
                      establish a procedure for a participating 
                      partnership to request an increase in the amount 
                      preapproved for reimbursement under paragraph 
                      (1)(B) based on changes in conditions.
                          ``(ii) Interim approval; incremental 
                      increase.--The Secretary may provide an interim 
                      approval of an increase requested under clause (i) 
                      and an incremental increase in the amount of 
                      reimbursement to the applicable participating 
                      partnership to allow time for the Secretary to 
                      review the request without interfering with the 
                      donation and distribution of eligible milk by the 
                      participating partnership.

    ``(g) Prohibition on Resale of Products.--
            ``(1) In general.--An eligible distributor that receives 
        eligible milk donated under this section may not sell the 
        products back into commercial markets.
            ``(2) Prohibition on future participation.--An eligible 
        distributor that the Secretary determines has violated paragraph 
        (1) shall not be eligible for any future participation in the 
        program established under this section.

    ``(h) Administration.--The Secretary shall publicize opportunities 
to participate in the program established under this section.
    ``(i) Reviews.--The Secretary shall conduct appropriate reviews or 
audits to ensure the integrity of the program established under this 
section.
    ``(j) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $9,000,000 for fiscal 
year 2019, and $5,000,000 for each fiscal year thereafter, to remain 
available until expended.''.
            (2) Conforming amendment.--Section 1401 of the Agricultural 
        Act of 2014 (7 U.S.C. 9051) is amended, in the matter preceding 
        paragraph (1), by striking ``and part III''.

[[Page 132 STAT. 4522]]

        Subtitle E--Supplemental Agricultural Disaster Assistance

SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) Members of Indian Tribes.--Section 1501(a)(1)(B) of the 
Agricultural Act of 2014 (7 U.S.C. 9081(a)(1)(B)) is amended--
            (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively; and
            (2) by inserting after clause (ii) the following:
                          ``(iii) an Indian tribe or tribal organization 
                      (as those terms are defined in section 4 of the 
                      Indian Self-Determination and Education Assistance 
                      Act (25 U.S.C. 5304));''.

    (b) Covered Livestock Losses for Livestock Indemnity Payments.--
Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (A);
                    (B) in subparagraph (B), by striking ``cold.'' and 
                inserting ``cold, on the condition that in the case of 
                the death loss of unweaned livestock due to that adverse 
                weather, the Secretary may disregard any management 
                practice, vaccination protocol, or lack of vaccination 
                by the eligible producer on a farm; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) disease that, as determined by the Secretary--
                          ``(i) is caused or transmitted by a vector; 
                      and
                          ``(ii) is not susceptible to control by 
                      vaccination or acceptable management practices.''; 
                      and
            (2) in paragraph (4), by striking ``A payment'' and 
        inserting ``Payment reductions.--A payment''.

    (c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised 
Fish.--
            (1) In general.--Section 1501(d)(2) of the Agricultural Act 
        of 2014 (7 U.S.C. 9081(d)(2)) is amended by inserting ``, 
        including inspections of cattle tick fever'' before the period 
        at the end.
            (2) <<NOTE: 7 USC 9081 note.>>  Effective date.--The 
        amendment made by paragraph (1) shall apply to inspections of 
        cattle tick fever conducted on or after the date of enactment of 
        this Act.

    (d) Tree Assistance Program.--Section 1501(e) of the Agricultural 
Act of 2014 (7 U.S.C. 9081(e)) is amended--
            (1) in paragraph (3), in the matter preceding subparagraph 
        (A), by striking ``paragraph (4)'' and inserting ``paragraphs 
        (4) and (5)''; and
            (2) by adding at the end the following:
            ``(5) Payment rate for beginning and veteran producers.--
        Subject to paragraph (4), in the case of a beginning farmer or 
        rancher or a veteran farmer or rancher (as those terms are 
        defined in subsection (a) of section 2501 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        2279)) that is eligible to receive assistance under this 
        subsection, the Secretary shall provide reimbursement of 75 
        percent of the costs under subparagraphs (A)(i) and (B) of 
        paragraph (3).''.

[[Page 132 STAT. 4523]]

    (e) Payment Limitation.--Section 1501(f)(2) of the Agricultural Act 
of 2014 (7 U.S.C. 9081(f)(2)) is amended by striking ``this section 
(excluding payments received under subsections (b) and (e))'' and 
inserting ``subsection (c)''.

                 Subtitle F--Noninsured Crop Assistance

SEC. 1601. NONINSURED CROP ASSISTANCE PROGRAM.

    Section 196 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7333) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by adding at the end the 
                following:
                    ``(C) Data collection and sharing.--The Secretary 
                shall coordinate with the Administrator of the Risk 
                Management Agency on the type and format of data 
                received under the noninsured crop disaster assistance 
                program that--
                          ``(i) best facilitates the use of that data in 
                      developing policies or plans of insurance offered 
                      under the Federal Crop Insurance Act (7 U.S.C. 
                      1501 et seq.); and
                          ``(ii) ensures the availability of that data 
                      on a regular basis.
                    ``(D) Coordination.--The Secretary shall coordinate 
                between the agencies of the Department that provide 
                programs or services to farmers and ranchers that are 
                potentially eligible for the noninsured crop disaster 
                assistance program under this section--
                          ``(i) to make available coverage under--
                                    ``(I) the fee waiver under 
                                subsection (k)(2); or
                                    ``(II) the premium discount under 
                                subsection (l)(3); and
                          ``(ii) to share eligibility information to 
                      reduce paperwork and avoid duplication.'';
                    (B) in paragraph (2), by striking subparagraph (A) 
                and inserting the following:
                    ``(A) In general.--Subject to subparagraph (B), in 
                this section, the term `eligible crop' means each 
                commercial crop or other agricultural commodity that is 
                produced for food or fiber (except livestock) for which 
                catastrophic risk protection under subsection (b) of 
                section 508 of the Federal Crop Insurance Act (7 U.S.C. 
                1508) and additional coverage under subsections (c) and 
                (h) of such section are not available or, if such 
                coverage is available, it is only available under a 
                policy that provides coverage for specific intervals 
                based on weather indexes or under a whole farm plan of 
                insurance.''; and
                    (C) in paragraph (4)(B)--
                          (i) by striking clause (i) and inserting the 
                      following:
                          ``(i) In general.--
                                    ``(I) Agricultural act of 2014.--
                                During the first 4 crop years of 
                                planting, as determined by the 
                                Secretary, native sod acreage that has 
                                been tilled for the production of an 
                                annual crop during the period beginning 
                                on February 8, 2014, and ending on the 
                                date of enactment of the Agriculture

[[Page 132 STAT. 4524]]

                                Improvement Act of 2018 shall be subject 
                                to a reduction in benefits under this 
                                section as described in this 
                                subparagraph.
                                    ``(II) Subsequent years.--Native sod 
                                acreage that has been tilled for the 
                                production of an eligible crop after the 
                                date of enactment of the Agriculture 
                                Improvement Act of 2018 shall be subject 
                                to a reduction in benefits under this 
                                section as described in this 
                                subparagraph for not more than any 4 
                                crop years--
                                            ``(aa) during the first 10 
                                        crop years after the initial 
                                        tillage; and
                                            ``(bb) during which a crop 
                                        on that acreage is enrolled 
                                        under subsection (l)(2) or 
                                        (k).''; and
                          (ii) in clause (iii)(I), by striking 
                      ``transitional yield of the producer'' and 
                      inserting ``county expected yield'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``not later than 
                30 days'' and inserting ``by an appropriate deadline''; 
                and
                    (B) by adding at the end the following:
            ``(4) Streamlined submission process.--The Secretary shall 
        establish a streamlined process for the submission of records 
        and acreage reports under paragraphs (2) and (3) for diverse 
        production systems such as those typical of urban production 
        systems, other small-scale production systems, and direct-to-
        consumer production systems.'';
            (3) in subsection (d)--
                    (A) by redesignating paragraphs (1), (2), and (3) as 
                paragraphs (2), (3), and (4), respectively;
                    (B) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) the producer's share of the total acres devoted to the 
        eligible crop; by''; and
                    (C) in paragraph (2) (as so redesignated), by 
                striking ``established yield for the crop'' and 
                inserting ``approved yield for the crop, as determined 
                by the Secretary'';
            (4) in subsection (e)--
                    (A) in paragraph (1), by striking ``farm'' and 
                inserting ``approved'';
                    (B) in paragraph (2)--
                          (i) in the second sentence--
                                    (I) by inserting ``approved'' before 
                                ``yield''; and
                                    (II) by striking ``Subject'' and 
                                inserting the following:
                    ``(B) Calculation.--Subject''; and
                          (ii) in the matter preceding subparagraph (B) 
                      (as so designated)--
                                    (I) by striking ``yield coverage'' 
                                and inserting ``an approved yield''; and
                                    (II) by striking ``The Secretary'' 
                                and inserting the following:
                    ``(A) In general.--The Secretary''; and
                    (C) in paragraph (3), by striking ``transitional 
                yield of the producer'' and inserting ``county expected 
                yield'';
            (5) in subsection (i)(2), by striking ``exceed $125,000'' 
        and inserting the following: ``exceed--

[[Page 132 STAT. 4525]]

                    ``(A) in the case of catastrophic coverage under 
                subsection (c), $125,000; and
                    ``(B) in the case of additional coverage under 
                subsection (l), $300,000'';
            (6) in subsection (k)(1)--
                    (A) in subparagraph (A), by striking ``$250'' and 
                inserting ``$325''; and
                    (B) in subparagraph (B)--
                          (i) by striking ``$750'' and inserting 
                      ``$825''; and
                          (ii) by striking ``$1,875'' and inserting 
                      ``$1,950''; and
            (7) in subsection (l)--
                    (A) in paragraph (1)--
                          (i) by redesignating subparagraphs (A), (B), 
                      and (C) as subparagraphs (B), (C), and (D), 
                      respectively;
                          (ii) by inserting before subparagraph (B) (as 
                      so redesignated) the following:
                    ``(A) the producer's share of the total acres 
                devoted to the crop;''; and
                          (iii) in subparagraph (C) (as so 
                      redesignated), by inserting ``, contract price, or 
                      other premium price (such as a local, organic, or 
                      direct market price, as elected by the producer)'' 
                      after ``price'';
                    (B) in paragraph (2)(B)(i)--
                          (i) in subclause (IV), by striking ``and'' at 
                      the end;
                          (ii) in subclause (V), by striking ``or'' at 
                      the end and inserting ``and''; and
                          (iii) by adding at the end the following:
                                    ``(VI) the producer's share of the 
                                crop; or'';
                    (C) by striking paragraphs (3) and (5); and
                    (D) by redesignating paragraph (4) as paragraph (3).

                       Subtitle G--Administration

SEC. 1701. REGULATIONS.

    Section 1601(c)(2) of the Agricultural Act of 2014 (7 U.S.C. 
9091(c)(2)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``title and sections 11003 and 11017'' and inserting ``title, 
        sections 11003 and 11017, title I of the Agriculture Improvement 
        Act of 2018 and the amendments made by that title, and section 
        10109 of that Act'';
            (2) in subparagraph (A), by adding ``and'' at the end;
            (3) in subparagraph (B), by striking ``; and'' and inserting 
        a period; and
            (4) by striking subparagraph (C).
SEC. 1702. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    Section 1602 of the Agricultural Act of 2014 (7 U.S.C. 9092) is 
amended by striking ``2018'' each place it appears and inserting 
``2023''.
SEC. 1703. PAYMENT LIMITATIONS.

    (a) In General.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308) is amended--
            (1) in subsection (a)--

[[Page 132 STAT. 4526]]

                    (A) in paragraph (1), by striking ``section 1001 of 
                the Food, Conservation, and Energy Act of 2008'' and 
                inserting ``section 1111 of the Agricultural Act of 2014 
                (7 U.S.C. 9011)''; and
                    (B) in paragraph (2), by inserting ``first cousin, 
                niece, nephew,'' after ``sibling,'';
            (2) in subsections (b) and (c), by striking ``and as 
        marketing loan gains or loan deficiency payments under subtitle 
        B of title I of the Agricultural Act of 2014'' each place it 
        appears and inserting ``of the Agricultural Act of 2014 (7 
        U.S.C. 9016, 9017)''; and
            (3) in subsection (f), by adding at the end the following:
            ``(9) Administration of reduction.--The Secretary shall 
        apply any order described in section 1614(d)(1) of the 
        Agricultural Act of 2014 (7 U.S.C. 9097(d)(1)) to payments under 
        sections 1116 and 1117 of that Act (7 U.S.C. 9016, 9017) prior 
        to applying payment limitations under this section.''.

    (b) <<NOTE: 7 USC 1308 note.>>  Application.--The amendments made by 
this section shall apply beginning with the 2019 crop year.
SEC. 1704. ADJUSTED GROSS INCOME LIMITATIONS.

    (a) Waiver.--Section 1001D(b) of the Food Security Act of 1985 (7 
U.S.C. 1308-3a(b)) is amended--
            (1) in paragraph (2)(C), by inserting ``title II of the 
        Agriculture Improvement Act of 2018,'' after ``under''; and
            (2) by adding at the end the following:
            ``(3) Waiver.--The Secretary may waive the limitation 
        established by paragraph (1) with respect to a payment pursuant 
        to a covered benefit described in paragraph (2)(C), on a case-
        by-case basis, if the Secretary determines that environmentally 
        sensitive land of special significance would be protected as a 
        result of such waiver.''.

    (b) Conforming Amendment.--Section 1001D(b)(1) of the Food Security 
Act of 1985 (7 U.S.C. 1308-3a(b)(1)) is amended by inserting ``subject 
to paragraph (3),'' after ``of law,''.
    (c) <<NOTE: 7 USC 1308-3a note.>>  Transition.--Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308-3a), as in effect on the day 
before the date of enactment of this Act, shall apply with respect to 
the 2018 crop, fiscal, or program year, as appropriate, for each program 
described in subsection (b)(2) of that section (as so in effect on that 
day).
SEC. 1705. <<NOTE: 7 USC 6932 note.>>  FARM SERVICE AGENCY 
                          ACCOUNTABILITY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall establish policies, procedures, and 
plans to improve program accountability and integrity through targeted 
and coordinated activities, including utilizing data mining to identify 
and reduce errors, waste, fraud, and abuse in programs administered by 
the Farm Service Agency.
    (b) Report.--Not later than 3 years 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 describing the progress 
and results of the activities conducted under subsection (a).

[[Page 132 STAT. 4527]]

SEC. 1706. IMPLEMENTATION.

    (a) Maintenance of Base Acres and Payment Yields.--Section 1614(a) 
of the Agricultural Act of 2014 (7 U.S.C. 9097(a)) is amended by 
inserting ``, and as adjusted pursuant to sections 1112 and 1113'' 
before the period at the end.
    (b) Streamlining.--Section 1614 of the Agricultural Act of 2014 (7 
U.S.C. 9097) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Streamlining.--In implementing this title and the amendments 
made by this title, the Secretary shall--
            ``(1) continue to reduce administrative burdens and costs to 
        producers by streamlining and reducing paperwork, forms, and 
        other administrative requirements, to ensure that--
                    ``(A) a producer (or an agent of a producer) may 
                report information, electronically (including geospatial 
                data) or conventionally, to the Department of 
                Agriculture, subject to the Secretary--
                          ``(i) establishing reasonable levels of 
                      tolerance that reflect the differences in accuracy 
                      between measures of common land units and 
                      geospatial data; and
                          ``(ii) ensuring that discrepancies that occur 
                      within the levels of tolerance established under 
                      clause (i) shall not be used to penalize a 
                      producer (or an agent of a producer) under any 
                      program administered by the Department of 
                      Agriculture;
                    ``(B) on the request of a producer (or an agent of a 
                producer), the Department of Agriculture electronically 
                shares with the producer (or agent) in real time and 
                without cost to the producer (or agent) the common land 
                unit data, related farm level data, conservation 
                practices, and other information of the producer through 
                a single Department of Agriculture-wide login;
                    ``(C) not later than September 30, 2020, the 
                Administrator of the Risk Management Agency and the 
                Administrator of the Farm Service Agency shall implement 
                a consistent method for determining crop acreage, 
                acreage yields, farm acreage, property descriptions, and 
                other common informational requirements, including 
                measures of common land units;
                    ``(D) except in the case of misrepresentation, 
                fraud, or scheme and device, no crop insurance agent, 
                approved insurance provider, or employee or contractor 
                of a crop insurance agency or approved insurance 
                provider bears responsibility or liability under the 
                Acreage Crop Reporting and Streamlining Initiative (or 
                any successor or similar initiative) for the eligibility 
                of a producer for a program administered by the 
                Department of Agriculture, not including a policy or 
                plan of insurance offered under the Federal Crop 
                Insurance Act (7 U.S.C. 1501 et seq.); and
                    ``(E) on request of a crop insurance agent or 
                approved insurance provider required to deliver policies 
                and plans of insurance under the Federal Crop Insurance 
                Act (7 U.S.C. 1501 et seq.) the crop insurance agent or 
                approved insurance provider receives, in a timely 
                manner, any information held by the Farm Service Agency 
                that is necessary to ensure effective crop insurance 
                coverage for farmer customers;

[[Page 132 STAT. 4528]]

            ``(2) continue to improve coordination, information sharing, 
        and administrative work among the Farm Service Agency, Risk 
        Management Agency, Natural Resources Conservation Service, and 
        other agencies, as determined by the Secretary;
            ``(3) continue to take advantage of new technologies to 
        enhance the efficiency and effectiveness of the delivery of 
        Department of Agriculture programs to producers, including by 
        developing and making publicly available data standards and 
        security procedures to allow third-party providers to develop 
        applications that use or feed data (including geospatial and 
        precision agriculture data) into the datasets and analyses of 
        the Department of Agriculture; and
            ``(4) reduce administrative burdens on producers 
        participating in price loss coverage or agriculture risk 
        coverage by offering--
                    ``(A) those producers an option to remotely and 
                electronically sign annual contracts for that coverage; 
                and
                    ``(B) to the maximum extent practicable, an option 
                to sign a multiyear contract for that coverage.''.

    (c) Implementation.--Section 1614(c) of the Agricultural Act of 2014 
(7 U.S.C. 9097(c)) is amended by adding at the end the following:
            ``(4) Agriculture improvement act of 2018.--The Secretary 
        shall make available to the Farm Service Agency to carry out 
        title I of the Agriculture Improvement Act of 2018 and the 
        amendments made by that title $15,500,000.''.

    (d) Loan Implementation.--Section 1614(d)(1) of the Agricultural Act 
of 2014 (7 U.S.C. 9097(d)(1)) is amended by striking ``under subtitles'' 
and all that follows through ``except'' and inserting ``under subtitle B 
or C, under the amendments made by subtitle B or C, or under the 
amendments made by subtitle B or C of the Agriculture Improvement Act of 
2018, except''.
    (e) Deobligation of Unliquidated Obligations.--Section 1614 of the 
Agricultural Act of 2014 (7 U.S.C. 9097) is amended by adding at the end 
the following:
    ``(e) Deobligation of Unliquidated Obligations.--
            ``(1) In general.--Subject to paragraph (3), any payment 
        obligated or otherwise made available by the Secretary under 
        this title on or after the date of enactment of the Agriculture 
        Improvement Act of 2018 that is not disbursed to the recipient 
        by the date that is 5 years after the date on which the payment 
        is obligated or otherwise made available shall--
                    ``(A) be deobligated; and
                    ``(B) revert to the Treasury.
            ``(2) Outstanding payments.--
                    ``(A) In general.--Subject to paragraph (3), any 
                payment obligated or otherwise made available by the 
                Farm Service Agency (or any predecessor agency of the 
                Department of Agriculture) under the laws described in 
                subparagraph (B) before the date of enactment of the 
                Agriculture Improvement Act of 2018, that is not 
                disbursed by the date that is 5 years after the date on 
                which the payment is obligated or otherwise made 
                available shall--
                          ``(i) be deobligated; and
                          ``(ii) revert to the Treasury.
                    ``(B) Laws described.--The laws referred to in 
                subparagraph (A) are any of the following:

[[Page 132 STAT. 4529]]

                          ``(i) This title.
                          ``(ii) Title I of the Food, Conservation, and 
                      Energy Act of 2008 (7 U.S.C. 8702 et seq.).
                          ``(iii) Title I of the Farm Security and Rural 
                      Investment Act of 2002 (7 U.S.C. 7901 et seq.).
                          ``(iv) The Agricultural Market Transition Act 
                      (7 U.S.C. 7201 et seq.).
                          ``(v) Titles I through XI of the Food, 
                      Agriculture, Conservation, and Trade Act of 1990 
                      (Public Law 101-624; 104 Stat. 3374) and the 
                      amendments made by those titles.
                          ``(vi) Titles I through X of the Food Security 
                      Act of 1985 (Public Law 99-198; 99 Stat. 1362) and 
                      the amendments made by those titles.
                          ``(vii) Titles I through XI of the Agriculture 
                      and Food Act of 1981 (Public Law 97-98; 95 Stat. 
                      1218) and the amendments made by those titles.
                          ``(viii) Titles I through X of the Food and 
                      Agriculture Act of 1977 (Public Law 95-113; 91 
                      Stat. 917) and the amendments made by those 
                      titles.
            ``(3) Waiver.--The Secretary may delay the date of the 
        deobligation and reversion under paragraph (1) or (2) of any 
        payment--
                    ``(A) that is the subject of--
                          ``(i) ongoing administrative review or appeal;
                          ``(ii) litigation; or
                          ``(iii) the settlement of an estate; or
                    ``(B) for which the Secretary otherwise determines 
                that the circumstances are such that the delay is 
                equitable.''.

    (f) Report.--Section 1614 of the Agricultural Act of 2014 (7 U.S.C. 
9097) (as amended by subsection (e)) is amended by adding at the end the 
following:
    ``(f) Report.--Not later than January 1, 2020, and each January 1 
thereafter through January 1, 2023, 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 tilled native sod acreage that was subject to a 
reduction in benefits under section 196(a)(4)(B) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)(4)(B) 
and section 508(o)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(o)(2))--
            ``(1) as of the date of submission of the report; and
            ``(2) by State and county, relative to the total acres of 
        cropland in the State or county.''.
SEC. 1707. <<NOTE: 31 USC 6101 note.>>  EXEMPTION FROM CERTAIN 
                          REPORTING REQUIREMENTS FOR CERTAIN 
                          PRODUCERS.

    (a) Definition of Exempted Producer.--In this section, the term 
``exempted producer'' means an individual or entity that is eligible to 
participate in--
            (1) a conservation program under title II or a law amended 
        by title II;
            (2) an indemnity or disease control program under the Animal 
        Health Protection Act (7 U.S.C. 8301 et seq.) or the Plant 
        Protection Act (7 U.S.C. 7701 et seq.); or
            (3) a commodity program under title I of the Agricultural 
        Act of 2014 (7 U.S.C. 9011 et seq.), excluding the assistance

[[Page 132 STAT. 4530]]

        provided to users of cotton under sections 1207(c) and 1208 of 
        that Act (7 U.S.C. 9037(c), 9038).

    (b) Exemption.--Notwithstanding the Federal Funding Accountability 
and Transparency Act of 2006 (Public Law 109-282; 31 U.S.C. 6101 note), 
the requirements of parts 25 and 170 of title 2, Code of Federal 
Regulations (or successor regulations), shall not apply with respect to 
assistance received by an exempted producer from the Secretary, acting 
through the Chief of the Natural Resources Conservation Service, the 
Administrator of the Animal and Plant Health Inspection Service, or the 
Administrator of the Farm Service Agency.

                         TITLE II--CONSERVATION

                    Subtitle A--Wetland Conservation

SEC. 2101. WETLAND CONVERSION.

    Section 1221(d) of the Food Security Act of 1985 (16 U.S.C. 3821(d)) 
is amended--
            (1) by striking ``Except as'' and inserting the following:
            ``(1) In general.--Except as''; and
            (2) by adding at the end the following:
            ``(2) Duty of the secretary.--No person shall become 
        ineligible under paragraph (1) if the Secretary determines that 
        an exemption under section 1222(b) applies to that person.''.
SEC. 2102. WETLAND CONSERVATION.

    Section 1222(c) of the Food Security Act of 1985 (16 U.S.C. 3822(c)) 
is amended--
            (1) by striking ``No program'' and inserting the following:
            ``(1) In general.--No program'';
            (2) in paragraph (1) (as so designated), by inserting ``, 
        which, except as provided in paragraph (2), shall be conducted 
        in the presence of the affected person'' before the period at 
        the end; and
            (3) by adding at the end the following:
            ``(2) Exception.--The Secretary may conduct an on-site visit 
        under paragraph (1) without the affected person present if the 
        Secretary has made a reasonable effort to include the presence 
        of the affected person at the on-site visit.''.
SEC. 2103. MITIGATION BANKING.

    Section 1222(k)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 
3822(k)(1)(B)) is amended to read as follows:
                    ``(B) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to carry 
                out this paragraph $5,000,000 for each of fiscal years 
                2019 through 2023.''.

                Subtitle B--Conservation Reserve Program

SEC. 2201. CONSERVATION RESERVE.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended by striking ``2018'' and inserting 
``2023''.

[[Page 132 STAT. 4531]]

    (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 ``Agricultural Act of 
        2014 (except for land enrolled in the conservation reserve 
        program as of that date)'' and inserting ``Agriculture 
        Improvement Act of 2018, on the condition that the Secretary 
        shall consider to be planted cropland enrolled in the 
        conservation reserve program'';
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively;
            (3) by inserting after paragraph (3) the following:
            ``(4) cropland, marginal pasture land, and grasslands that 
        will have a positive impact on water quality and will be devoted 
        to--
                    ``(A) a grass sod waterway;
                    ``(B) a contour grass sod strip;
                    ``(C) a prairie strip;
                    ``(D) a filterstrip;
                    ``(E) a riparian buffer;
                    ``(F) a wetland or a wetland buffer;
                    ``(G) a saturated buffer;
                    ``(H) a bioreactor; or
                    ``(I) another similar water quality practice, as 
                determined by the Secretary;'';
            (4) in paragraph (5) (as so redesignated)--
                    (A) in subparagraph (C), by striking ``or 
                filterstrips or riparian buffers devoted to trees, 
                shrubs, or grasses'' and inserting ``salt tolerant 
                vegetation, field borders, or practices to benefit State 
                or federally identified wellhead protection areas''; and
                    (B) in subparagraph (E), by striking ``or'' after 
                the semicolon;
            (5) in paragraph (6) (as so redesignated), in subparagraph 
        (B)(ii), by striking the period at the end and inserting ``; 
        or''; and
            (6) by adding at the end the following:
            ``(7) as determined by the Secretary, land--
                    ``(A) that was enrolled in the conservation reserve 
                program under a 15-year contract that expired on 
                September 30, 2017, or September 30, 2018;
                    ``(B) for which there was no opportunity for 
                additional enrollment in that program; and
                    ``(C) on which the conservation practice under the 
                expired contract under subparagraph (A) is 
                maintained.''.

    (c) Enrollment.--Section 1231(d) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)) is amended--
            (1) in paragraph (1), by striking subparagraphs (A) through 
        (E) and inserting the following:
                    ``(A) fiscal year 2019, not more than 24,000,000 
                acres;
                    ``(B) fiscal year 2020, not more than 24,500,000 
                acres;
                    ``(C) fiscal year 2021, not more than 25,000,000 
                acres;
                    ``(D) fiscal year 2022, not more than 25,500,000 
                acres; and
                    ``(E) fiscal year 2023, not more than 27,000,000 
                acres.'';
            (2) in paragraph (2)--
                    (A) by striking subparagraphs (A) and (B) and 
                inserting the following:

[[Page 132 STAT. 4532]]

                    ``(A) Limitation.--For purposes of applying the 
                limitations in paragraph (1)--
                          ``(i) the Secretary shall enroll and maintain 
                      in the conservation reserve not fewer than 
                      2,000,000 acres of the land described in 
                      subsection (b)(3) by September 30, 2023; and
                          ``(ii) in carrying out clause (i), to the 
                      maximum extent practicable, the Secretary shall 
                      maintain in the conservation reserve at any one 
                      time during--
                                    ``(I) fiscal year 2019, 1,000,000 
                                acres;
                                    ``(II) fiscal year 2020, 1,500,000 
                                acres; and
                                    ``(III) fiscal years 2021 through 
                                2023, 2,000,000 acres.
                    ``(B) Priority.--In enrolling acres under 
                subparagraph (A), the Secretary may give priority to 
                land, as determined by the Secretary--
                          ``(i) with expiring conservation reserve 
                      contracts;
                          ``(ii) at risk of conversion or development; 
                      or
                          ``(iii) of ecological significance, including 
                      land that--
                                    ``(I) may assist in the restoration 
                                of threatened or endangered species 
                                under the Endangered Species Act of 1973 
                                (16 U.S.C. 1531 et seq.);
                                    ``(II) may assist in preventing a 
                                species from being listed as a 
                                threatened or endangered species under 
                                the Endangered Species Act of 1973 (16 
                                U.S.C. 1531 et seq.); or
                                    ``(III) improves or creates wildlife 
                                habitat corridors.'';
                    (B) in subparagraph (C)--
                          (i) by striking ``In enrolling'' and inserting 
                      the following:
                          ``(i) In general.--In enrolling'';
                          (ii) in clause (i) (as so designated), by 
                      striking ``a continuous'' and inserting ``an 
                      annual''; and
                          (iii) by adding at the end the following:
                          ``(ii) Timing of grassland ranking period.--
                      For purposes of grasslands described in subsection 
                      (b)(3), the Secretary shall announce at least 1 
                      ranking period subsequent to the announcement of 
                      general enrollment offers.''; and
                    (C) by adding at the end the following:
                    ``(D) Reservation of unenrolled acres.--If the 
                Secretary is unable in a fiscal year to enroll enough 
                acres of land described in subsection (b)(3) to meet the 
                number of acres described in clause (ii) or (iii) of 
                subparagraph (A) for the fiscal year--
                          ``(i) the Secretary shall reserve the 
                      remaining number of acres for that fiscal year for 
                      the enrollment of land described in subsection 
                      (b)(3); and
                          ``(ii) that number of acres shall not be 
                      available for the enrollment of any other type of 
                      eligible land.''; and
            (3) by adding at the end the following:
            ``(3) Water quality practices to foster clean lakes, 
        estuaries, and rivers (clear initiative).--

[[Page 132 STAT. 4533]]

                    ``(A) In general.--The Secretary shall give priority 
                within continuous enrollment under paragraph (6) to the 
                enrollment of land described in subsection (b)(4).
                    ``(B) Sediment and nutrient loadings.--In carrying 
                out subparagraph (A), the Secretary shall give priority 
                to the implementation of practices on land that, if 
                enrolled, will help reduce sediment loadings, nutrient 
                loadings, and harmful algal blooms, as determined by the 
                Secretary.
                    ``(C) Acreage.--
                          ``(i) In general.--Of the acres maintained in 
                      the conservation reserve in accordance with 
                      paragraph (1), to the maximum extent practicable, 
                      not less than 40 percent of acres enrolled in the 
                      conservation reserve using continuous enrollment 
                      under paragraph (6) shall be of land described in 
                      subsection (b)(4).
                          ``(ii) Limitation.--The acres described in 
                      clause (i) shall not include grasslands described 
                      in subsection (b)(3).
                    ``(D) Report.--The Secretary shall--
                          ``(i) in the monthly publication of the 
                      Secretary describing conservation reserve program 
                      statistics, include a description of enrollments 
                      through the priority under this paragraph; and
                          ``(ii) publish on the website of the Farm 
                      Service Agency an annual report describing a 
                      summary of, with respect to the enrollment 
                      priority under this paragraph--
                                    ``(I) new enrollments;
                                    ``(II) expirations;
                                    ``(III) geographic distribution; and
                                    ``(IV) estimated water quality 
                                benefits.
            ``(4) State enrollment rates.--At the beginning of each of 
        fiscal years 2019 through 2023, to the maximum extent 
        practicable, the Secretary shall allocate to the States 
        proportionately 60 percent of the available number of acres each 
        year for enrollment in the conservation reserve, in accordance 
        with historical State enrollment rates, taking into 
        consideration--
                    ``(A) the average number of acres of all land 
                enrolled in the conservation reserve in each State 
                during each of fiscal years 2007 through 2016;
                    ``(B) the average number of acres of all land 
                enrolled in the conservation reserve nationally during 
                each of fiscal years 2007 through 2016; and
                    ``(C) the acres available for enrollment during each 
                of fiscal years 2019 through 2023, excluding acres 
                described in paragraph (2).
            ``(5) Frequency.--In carrying out this subchapter, for 
        contracts that are not available on a continuous enrollment 
        basis, the Secretary shall hold a signup and enrollment not less 
        often than once each year.
            ``(6) Continuous enrollment procedure.--
                    ``(A) In general.--To the maximum extent 
                practicable, the Secretary shall allow producers to 
                submit applications on a continuous basis for enrollment 
                in--
                          ``(i) the conservation reserve of--

[[Page 132 STAT. 4534]]

                                    ``(I) marginal pasture land 
                                described in subsection (b)(2);
                                    ``(II) land described in subsection 
                                (b)(4); and
                                    ``(III) cropland described in 
                                subsection (b)(5); and
                          ``(ii) the conservation reserve enhancement 
                      program under section 1231A.
                    ``(B) Limitation.--For purposes of applying the 
                limitations in paragraph (1)--
                          ``(i) the Secretary shall, to the maximum 
                      extent practicable, enroll and maintain not fewer 
                      than 8,600,000 acres of land under subparagraph 
                      (A) by September 30, 2023; and
                          ``(ii) in carrying out clause (i), to the 
                      maximum extent practicable, the Secretary shall 
                      maintain in the conservation reserve at any one 
                      time during--
                                    ``(I) fiscal year 2019, 8,000,000 
                                acres;
                                    ``(II) fiscal year 2020, 8,250,000 
                                acres;
                                    ``(III) fiscal year 2021, 8,500,000 
                                acres; and
                                    ``(IV) fiscal years 2022 and 2023, 
                                8,600,000 acres.''.

    (d) Eligibility for Consideration.--Section 1231(h) of the Food 
Security Act of 1985 (16 U.S.C. 3831(h)) is amended--
            (1) by striking ``On the expiration'' and inserting the 
        following:
            ``(1) In general.--On the expiration''; and
            (2) by adding at the end the following:
            ``(2) Reenrollment limitation for certain land.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), land subject to a contract entered 
                into under this subchapter shall be eligible for only 
                one reenrollment in the conservation reserve under 
                paragraph (1) if the land is devoted to hardwood trees.
                    ``(B) Exclusions.--Subparagraph (A) shall not apply 
                to--
                          ``(i) riparian forested buffers;
                          ``(ii) forested wetlands enrolled under 
                      subsection (d)(3) or the conservation reserve 
                      enhancement program under section 1231A; and
                          ``(iii) shelterbelts.''.
SEC. 2202. CONSERVATION RESERVE ENHANCEMENT PROGRAM.

    (a) In General.--Subchapter B of chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 is amended by inserting after 
section 1231 (16 U.S.C. 3831) the following:
``SEC. 1231A. <<NOTE: 16 USC 3831a.>>  CONSERVATION RESERVE 
                            ENHANCEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) CREP.--The term `CREP' means a conservation reserve 
        enhancement program carried out under subsection (b)(1).
            ``(2) Eligible land.--The term `eligible land' means land 
        that is eligible to be included in the program established under 
        this subchapter.
            ``(3) Eligible partner.--The term `eligible partner' means--
                    ``(A) a State;
                    ``(B) a political subdivision of a State;

[[Page 132 STAT. 4535]]

                    ``(C) an Indian tribe (as defined in section 4 of 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 5304)); or
                    ``(D) a nongovernmental organization.
            ``(4) Management.--The term `management' means an activity 
        conducted by an owner or operator under a contract entered into 
        under this subchapter after the establishment of a conservation 
        practice on eligible land, to regularly maintain or enhance the 
        vegetative cover established by the conservation practice--
                    ``(A) throughout the term of the contract; and
                    ``(B) consistent with the conservation plan that 
                covers the eligible land.

    ``(b) Agreements.--
            ``(1) In general.--The Secretary may enter into an agreement 
        with an eligible partner to carry out a conservation reserve 
        enhancement program--
                    ``(A) to assist in enrolling eligible land in the 
                program established under this subchapter; and
                    ``(B) that the Secretary determines will advance the 
                purposes of this subchapter.
            ``(2) Contents.--An agreement entered into under paragraph 
        (1) shall--
                    ``(A) describe--
                          ``(i) 1 or more specific State or nationally 
                      significant conservation concerns to be addressed 
                      by the agreement;
                          ``(ii) quantifiable environmental goals for 
                      addressing the concerns under clause (i);
                          ``(iii) a suitable acreage goal for enrollment 
                      of eligible land under the agreement, as 
                      determined by the Secretary;
                          ``(iv) the location of eligible land to be 
                      enrolled in the project area identified under the 
                      agreement;
                          ``(v) the payments to be offered by the 
                      Secretary and eligible partner to an owner or 
                      operator; and
                          ``(vi) an appropriate list of conservation 
                      reserve program conservation practices that are 
                      appropriate to meeting the concerns described 
                      under clause (i), as determined by the Secretary 
                      in consultation with eligible partners;
                    ``(B) subject to subparagraph (C), require the 
                eligible partner to provide matching funds--
                          ``(i) in an amount determined during a 
                      negotiation between the Secretary and 1 or more 
                      eligible partners, if the majority of the matching 
                      funds to carry out the agreement are provided by 1 
                      or more eligible partners that are not 
                      nongovernmental organizations; or
                          ``(ii) in an amount not less than 30 percent 
                      of the cost required to carry out the conservation 
                      measures and practices described in the agreement, 
                      if a majority of the matching funds to carry out 
                      the agreement are provided by 1 or more 
                      nongovernmental organizations; and
                    ``(C) include procedures to allow for a temporary 
                waiver of the matching requirements under subparagraph 
                (B), or

[[Page 132 STAT. 4536]]

                continued enrollment with a temporary suspension of 
                incentives or eligible partner contributions for new 
                agreements, during a period when an eligible partner 
                loses the authority or ability to provide matching 
                contributions, if the Secretary determines that the 
                temporary waiver or continued enrollment with a 
                temporary suspension will advance the purposes of this 
                subchapter.
            ``(3) Effect on existing agreements.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                agreement under this subsection shall not affect, 
                modify, or interfere with existing agreements under this 
                subchapter.
                    ``(B) Modification of existing agreements.--To 
                implement this section, the signatories to an agreement 
                under this subsection may mutually agree to a 
                modification of an agreement entered into before the 
                date of enactment of this section under the Conservation 
                Reserve Enhancement Program established by the Secretary 
                under this subchapter.

    ``(c) Payments.--
            ``(1) Matching requirement.--Funds provided by an eligible 
        partner may be in cash, in-kind contributions, or technical 
        assistance, as determined by the Secretary.
            ``(2) Marginal pastureland cost-share payments.--The 
        Secretary shall ensure that cost-share payments to an owner or 
        operator to install stream fencing, crossings, and alternative 
        water development on marginal pastureland under a CREP reflect 
        the fair market value of the cost of installation.
            ``(3) Cost-share and practice incentive payments.--
                    ``(A) In general.--On request of an owner or 
                operator, the Secretary shall provide cost-share 
                payments when a major component of a conservation 
                practice is completed under a CREP, as determined by the 
                Secretary.
                    ``(B) Exemption.--For purposes of implementing 
                conservation practices on land enrolled under a CREP, 
                the Secretary may waive the contribution limitation 
                described in section 1234(b)(2)(A).
            ``(4) Riparian buffer management payments.--
                    ``(A) In general.--In the case of an agreement under 
                subsection (b)(1) that includes riparian buffers as an 
                eligible practice, the Secretary shall make cost-share 
                payments to encourage the regular management of the 
                riparian buffer throughout the term of the agreement, 
                consistent with the conservation plan that covers the 
                eligible land.
                    ``(B) Limitation.--The amount of payments received 
                by an owner or operator under subparagraph (A) shall not 
                be greater than 100 percent of the normal and customary 
                projected management cost, as determined by the 
                Secretary, in consultation with the applicable State 
                technical committee established under section 1261(a).

    ``(d) Forested Riparian Buffer Practice.--
            ``(1) Food-producing woody plants.--In the case of an 
        agreement under subsection (b)(1) that includes forested 
        riparian buffers as an eligible practice, the Secretary shall 
        allow an owner or operator--
                    ``(A) to plant food-producing woody plants in the 
                forested riparian buffers, on the conditions that--

[[Page 132 STAT. 4537]]

                          ``(i) the plants shall contribute to the 
                      conservation of soil, water quality, and wildlife 
                      habitat; and
                          ``(ii) the planting shall be consistent with--
                                    ``(I) recommendations of the 
                                applicable State technical committee 
                                established under section 1261(a); and
                                    ``(II) technical guide standards of 
                                the applicable field office of the 
                                Natural Resources Conservation Service; 
                                and
                    ``(B) to harvest from plants described in 
                subparagraph (A), on the conditions that--
                          ``(i) the harvesting shall not damage the 
                      conserving cover or otherwise have a negative 
                      impact on the conservation concerns targeted by 
                      the CREP;
                          ``(ii) only native plant species appropriate 
                      to the region shall be used within 35 feet of the 
                      watercourse; and
                          ``(iii) the producer shall be subject to a 
                      reduction in the rental rate commensurate to the 
                      value of the crop harvested.
            ``(2) Technical assistance.--For the purpose of enrolling 
        forested riparian buffers in a CREP, the Administrator of the 
        Farm Service Agency shall coordinate with the applicable State 
        forestry agency.

    ``(e) Drought and Water Conservation Agreements.--In the case of an 
agreement under subsection (b)(1) to address regional drought concerns, 
in accordance with the conservation purposes of the CREP, the Secretary, 
in consultation with the applicable State technical committee 
established under section 1261(a), may--
            ``(1) notwithstanding subsection (a)(2), enroll other 
        agricultural land on which the resource concerns identified in 
        the agreement can be addressed if the enrollment of the land is 
        critical to the accomplishment of the purposes of the agreement;
            ``(2) permit dryland agricultural uses with the adoption of 
        best management practices on enrolled land if the agreement 
        involves the significant long-term reduction of consumptive 
        water use and dryland production is compatible with the 
        agreement; and
            ``(3) calculate annual rental payments consistent with 
        existing administrative practice for similar drought and water 
        conservation agreements under this subtitle and ensure regional 
        consistency in those rates.

    ``(f) Status Report.--Not later than 180 days after the end of each 
fiscal year, the Secretary shall submit to Congress a report that 
describes, with respect to each agreement entered into under subsection 
(b)(1)--
            ``(1) the status of the agreement;
            ``(2) the purposes and objectives of the agreement;
            ``(3) the Federal and eligible partner commitments made 
        under the agreement; and
            ``(4) the progress made in fulfilling those commitments.''.

    (b) Conforming Amendments.--
            (1) Section 1240R(c)(3) of the Food Security Act of 1985 (16 
        U.S.C. 3839bb-5(c)(3)) is amended by striking ``a special 
        conservation reserve enhancement program described in section 
        1234(f)(4)'' and inserting ``a conservation reserve enhancement 
        program under section 1231A''.

[[Page 132 STAT. 4538]]

            (2) Section 1244(f)(3) of the Food Security Act of 1985 (16 
        U.S.C. 3844(f)(3)) is amended by striking ``subsection 
        (d)(2)(A)(ii) or (g)(2) of section 1234'' and inserting 
        ``section 1231A''.
SEC. 2203. FARMABLE WETLAND PROGRAM.

    Section 1231B of the Food Security Act of 1985 (16 U.S.C. 3831b) is 
amended--
            (1) in subsection (a)(1), by striking ``2018'' and inserting 
        ``2023''; and
            (2) in subsection (f)(2), by striking ``1234(d)(2)(A)(ii)'' 
        and inserting ``1234(d)''.
SEC. 2204. PILOT PROGRAMS.

    Subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 is amended by inserting after section 1231B (16 
U.S.C. 3831b) the following:
``SEC. 1231C. <<NOTE: 16 USC 3831c.>>  PILOT PROGRAMS.

    ``(a) CLEAR 30.--
            ``(1) In general.--
                    ``(A) Enrollment.--The Secretary shall establish a 
                pilot program to enroll land in the conservation reserve 
                program through a 30-year conservation reserve contract 
                (referred to in this subsection as a `CLEAR 30 
                contract') in accordance with this subsection.
                    ``(B) Inclusion of acreage limitation.--For purposes 
                of applying the limitations in section 1231(d)(1), the 
                Secretary shall include acres of land enrolled under 
                this subsection.
            ``(2) Expired conservation contract election.--
                    ``(A) Definition of covered contract.--In this 
                paragraph, the term `covered contract' means a contract 
                entered into under this subchapter that--
                          ``(i) expires on or after the date of 
                      enactment of the Agriculture Improvement Act of 
                      2018; and
                          ``(ii) covers land enrolled in the 
                      conservation reserve program under the clean 
                      lakes, estuaries, and rivers priority described in 
                      section 1231(d)(3) (or the predecessor practices 
                      that constitute the priority, as determined by the 
                      Secretary).
                    ``(B) Election.--On the expiration of a covered 
                contract, an owner or operator party to the covered 
                contract shall elect--
                          ``(i) not to reenroll the land under the 
                      contract;
                          ``(ii) to offer to reenroll the land under the 
                      contract if the land remains eligible under the 
                      terms in effect as of the date of expiration; or
                          ``(iii) not to reenroll the land under the 
                      contract and to enroll that land through a CLEAR 
                      30 contract under this subsection.
            ``(3) Eligible land.--Only land that is subject to an 
        expired covered contract shall be eligible for enrollment 
        through a CLEAR 30 contract under this subsection.
            ``(4) Term.--The term of a CLEAR 30 contract shall be 30 
        years.
            ``(5) Agreements.--To be eligible to enroll land in the 
        conservation reserve program through a CLEAR 30 contract,

[[Page 132 STAT. 4539]]

        the owner of the land shall enter into an agreement with the 
        Secretary--
                    ``(A) to implement a conservation reserve plan 
                developed for the land;
                    ``(B) to comply with the terms and conditions of the 
                contract and any related agreements; and
                    ``(C) to temporarily suspend the base history for 
                the land covered by the contract.
            ``(6) Terms and conditions of clear 30 contracts.--
                    ``(A) In general.--A CLEAR 30 contract 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 land while identifying 
                                access routes to be used for restoration 
                                activities and management and contract 
                                monitoring;
                          ``(ii) prohibit--
                                    ``(I) the alteration of wildlife 
                                habitat and other natural features of 
                                the land, unless specifically authorized 
                                by the Secretary as part of the 
                                conservation reserve plan;
                                    ``(II) the spraying of the land with 
                                chemicals or the mowing of the land, 
                                except where the 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 activity to be carried 
                                out on the land of the owner or 
                                successor that is immediately adjacent 
                                to, and functionally related to, the 
                                land that is subject to the contract if 
                                the activity will alter, degrade, or 
                                otherwise diminish the functional value 
                                of the land; and
                                    ``(IV) the adoption of any other 
                                practice that would tend to defeat the 
                                purposes of the conservation reserve 
                                program, as determined by the Secretary; 
                                and
                          ``(iii) include any additional provision that 
                      the Secretary determines is appropriate to carry 
                      out this section or facilitate the practical 
                      administration of this section.
                    ``(B) Violation.--On the violation of a term or 
                condition of a CLEAR 30 contract, the Secretary may 
                require the owner to refund all or part of any payments 
                received by the owner under the conservation reserve 
                program, with interest on the payments, as determined 
                appropriate by the Secretary.
                    ``(C) Compatible uses.--Land subject to a CLEAR 30 
                contract may be used for compatible economic uses,

[[Page 132 STAT. 4540]]

                including hunting and fishing, managed timber harvest, 
                or periodic haying or grazing, if the use--
                          ``(i) is specifically permitted by the 
                      conservation reserve plan developed for the land; 
                      and
                          ``(ii) is consistent with the long-term 
                      protection and enhancement of the conservation 
                      resources for which the contract was established.
            ``(7) Compensation.--
                    ``(A) Amount of payments.--The Secretary shall 
                provide payment under this subsection to an owner of 
                land enrolled through a CLEAR 30 contract using 30 
                annual payments in an amount equal to the amount that 
                would be used if the land were to be enrolled in the 
                conservation reserve program under section 1231(d)(3).
                    ``(B) Form of payment.--Compensation for a CLEAR 30 
                contract shall be provided by the Secretary in the form 
                of a cash payment in an amount determined under 
                subparagraph (A).
                    ``(C) Timing.--The Secretary shall provide any 
                annual payment obligation under subparagraph (A) as 
                early as practicable in each fiscal year.
                    ``(D) Payments to others.--The Secretary shall make 
                a payment, in accordance with regulations prescribed by 
                the Secretary, in a manner as the Secretary determines 
                is fair and reasonable under the circumstances, if an 
                owner who is entitled to a payment under this section--
                          ``(i) dies;
                          ``(ii) becomes incompetent;
                          ``(iii) is succeeded by another person or 
                      entity who renders or completes the required 
                      performance; or
                          ``(iv) is otherwise unable to receive the 
                      payment.
            ``(8) Technical assistance.--
                    ``(A) In general.--The Secretary shall assist owners 
                in complying with the terms and conditions of a CLEAR 30 
                contract.
                    ``(B) Contracts or agreements.--The Secretary may 
                enter into 1 or more contracts with private entities or 
                agreements with a State, nongovernmental organization, 
                or Indian Tribe to carry out necessary maintenance of a 
                CLEAR 30 contract if the Secretary determines that the 
                contract or agreement will advance the purposes of the 
                conservation reserve program.
            ``(9) Administration.--
                    ``(A) Conservation reserve plan.--The Secretary 
                shall develop a conservation reserve plan for any land 
                subject to a CLEAR 30 contract, which shall include 
                practices and activities necessary to maintain, protect, 
                and enhance the conservation value of the enrolled land.
                    ``(B) Delegation of contract administration.--
                          ``(i) Federal, state, or local government 
                      agencies.--The Secretary may delegate any of the 
                      management, monitoring, and enforcement 
                      responsibilities of the Secretary under this 
                      subsection to other Federal, State, or local 
                      government agencies that have the appropriate 
                      authority, expertise, and resources necessary to 
                      carry out those delegated responsibilities.

[[Page 132 STAT. 4541]]

                          ``(ii) Conservation organizations.--The 
                      Secretary may delegate any management 
                      responsibilities of the Secretary under this 
                      subsection to conservation organizations if the 
                      Secretary determines the conservation organization 
                      has similar expertise and resources.

    ``(b) Soil Health and Income Protection Pilot Program.--
            ``(1) Definition of eligible land.--In this subsection:
                    ``(A) In general.--The term `eligible land' means 
                cropland that--
                          ``(i) is selected by the owner or operator of 
                      the land for proposed enrollment in the pilot 
                      program under this subsection; and
                          ``(ii) as determined by the Secretary--
                                    ``(I) is located within 1 or more 
                                States that are part of the prairie 
                                pothole region, as selected by the 
                                Secretary based on consultation with 
                                State Committees of the Farm Service 
                                Agency and State technical committees 
                                established under section 1261(a) from 
                                that region;
                                    ``(II) had a cropping history or was 
                                considered to be planted during each of 
                                the 3 crop years preceding enrollment; 
                                and
                                    ``(III) is verified to be less-
                                productive land, as compared to other 
                                land on the applicable farm.
                    ``(B) Exclusion.--The term `eligible land' does not 
                include any land that was enrolled in a conservation 
                reserve program contract in any of the 3 crop years 
                preceding enrollment in the pilot program under this 
                subsection.
            ``(2) Establishment.--
                    ``(A) In general.--The Secretary shall establish a 
                voluntary soil health and income protection pilot 
                program under which eligible land is enrolled through 
                the use of contracts to assist owners and operators of 
                eligible land to conserve and improve the soil, water, 
                and wildlife resources of the eligible land.
                    ``(B) Deadline for participation.--Eligible land may 
                be enrolled in the program under this section through 
                December 31, 2020.
            ``(3) Contracts.--
                    ``(A) Requirements.--A contract described in 
                paragraph (2) shall--
                          ``(i) be entered into by the Secretary, the 
                      owner of the eligible land, and (if applicable) 
                      the operator of the eligible land; and
                          ``(ii) provide that, during the term of the 
                      contract--
                                    ``(I) the lowest practicable cost 
                                perennial conserving use cover crop for 
                                the eligible land, as determined by the 
                                applicable State conservationist after 
                                considering the advice of the applicable 
                                State technical committee, shall be 
                                planted on the eligible land;
                                    ``(II) except as provided in 
                                subparagraph (E), the owner or operator 
                                of the eligible land shall pay the cost 
                                of planting the conserving use cover 
                                crop under subclause (I);

[[Page 132 STAT. 4542]]

                                    ``(III) subject to subparagraph (F), 
                                the eligible land may be harvested for 
                                seed, hayed, or grazed outside the 
                                primary nesting season established for 
                                the applicable county;
                                    ``(IV) the eligible land may be 
                                eligible for a walk-in access program of 
                                the applicable State, if any; and
                                    ``(V) a nonprofit wildlife 
                                organization may provide to the owner or 
                                operator of the eligible land a payment 
                                in exchange for an agreement by the 
                                owner or operator not to harvest the 
                                conserving use cover.
                    ``(B) Payments.--Except as provided in subparagraphs 
                (E) and (F)(ii)(II), the annual rental rate for a 
                payment under a contract described in paragraph (2) 
                shall be equal to 50 percent of the average rental rate 
                for the applicable county under section 1234(d), as 
                determined by the Secretary.
                    ``(C) Limitation on enrolled land.--Not more than 15 
                percent of the eligible land on a farm may be enrolled 
                in the pilot program under this subsection.
                    ``(D) Term.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), each contract described in paragraph 
                      (2) shall be for a term of 3, 4, or 5 years, as 
                      determined by the parties to the contract.
                          ``(ii) Early termination.--
                                    ``(I) Secretary.--The Secretary may 
                                terminate a contract described in 
                                paragraph (2) before the end of the term 
                                described in clause (i) if the Secretary 
                                determines that the early termination of 
                                the contract is necessary.
                                    ``(II) Owners and operators.--An 
                                owner and (if applicable) an operator of 
                                eligible land enrolled in the pilot 
                                program under this subsection may 
                                terminate a contract described in 
                                paragraph (2) before the end of the term 
                                described in clause (i) if the owner and 
                                (if applicable) the operator pay to the 
                                Secretary an amount equal to the amount 
                                of rental payments received under the 
                                contract.
                    ``(E) Beginning, limited resource, socially 
                disadvantaged, or veteran farmers and ranchers.--With 
                respect to a beginning, limited resource, socially 
                disadvantaged, or veteran farmer or rancher, as 
                determined by the Secretary--
                          ``(i) a contract described in paragraph (2) 
                      shall provide that, during the term of the 
                      contract, of the actual cost of establishment of 
                      the conserving use cover crop under subparagraph 
                      (A)(ii)(I)--
                                    ``(I) using the funds of the 
                                Commodity Credit Corporation, the 
                                Secretary shall pay 50 percent; and
                                    ``(II) the beginning, limited 
                                resource, socially disadvantaged, or 
                                veteran farmer or rancher shall pay 50 
                                percent; and

[[Page 132 STAT. 4543]]

                          ``(ii) the annual rental rate for a payment 
                      under a contract described in paragraph (2) shall 
                      be equal to 75 percent of the average rental rate 
                      for the applicable county under section 1234(d), 
                      as determined by the Secretary.
                    ``(F) Harvesting, haying, and grazing outside 
                applicable period.--The harvesting for seed, haying, or 
                grazing of eligible land under subparagraph (A)(ii)(III) 
                outside of the primary nesting season established for 
                the applicable county shall be subject to the conditions 
                that--
                          ``(i) with respect to eligible land that is so 
                      hayed or grazed, adequate stubble height shall be 
                      maintained to protect the soil on the eligible 
                      land, as determined by the applicable State 
                      conservationist after considering the advice of 
                      the applicable State technical committee; and
                          ``(ii) with respect to eligible land that is 
                      so harvested for seed--
                                    ``(I) the eligible land shall not be 
                                eligible to be insured or reinsured 
                                under the Federal Crop Insurance Act (7 
                                U.S.C. 1501 et seq.); and
                                    ``(II) the rental payment otherwise 
                                applicable to the eligible land under 
                                this subsection shall be reduced by 25 
                                percent.
            ``(4) Acreage limitation.--Of the number of acres available 
        for enrollment in the conservation reserve under section 
        1231(d)(1), not more than 50,000 total acres of eligible land 
        may be enrolled under the pilot program under this subsection.
            ``(5) Report.--The Secretary shall submit to the Committee 
        on Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate an annual 
        report describing the eligible land enrolled in the pilot 
        program under this subsection, including--
                    ``(A) the estimated conservation value of the land; 
                and
                    ``(B) estimated savings from reduced commodity 
                payments, crop insurance indemnities, and crop insurance 
                premium subsidies.''.
SEC. 2205. DUTIES OF OWNERS AND OPERATORS.

    Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) 
is amended--
            (1) by redesignating paragraphs (10) and (11) as paragraphs 
        (11) and (12), respectively; and
            (2) by inserting after paragraph (9) the following:
            ``(10) on land devoted to hardwood or other trees, excluding 
        windbreaks and shelterbelts, to carry out proper thinning and 
        other practices--
                    ``(A) to enhance the conservation benefits and 
                wildlife habitat resources addressed by the conservation 
                practice under which the land is enrolled; and
                    ``(B) to promote forest management;''.
SEC. 2206. DUTIES OF THE SECRETARY.

    (a) Cost-Share and Rental Payments.--Section 1233(a) of the Food 
Security Act of 1985 (16 U.S.C. 3833(a)) is amended--
            (1) in paragraph (1), by inserting ``, including the cost of 
        fencing and other water distribution practices, if applicable'' 
        after ``interest''; and

[[Page 132 STAT. 4544]]

            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``in an amount necessary to compensate'' and 
                inserting ``, in accordance with section 1234(d),'';
                    (B) in subparagraph (A)--
                          (i) by inserting ``, marginal pastureland,'' 
                      after ``cropland''; and
                          (ii) by adding ``or'' at the end;
                    (C) by striking subparagraph (B); and
                    (D) by redesignating subparagraph (C) as 
                subparagraph (B).

    (b) Specified Activities Permitted.--Section 1233 of the Food 
Security Act of 1985 (16 U.S.C. 3833) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Specified Activities Permitted.--
            ``(1) In general.--The Secretary, in coordination with the 
        applicable State technical committee established under section 
        1261(a), shall permit certain activities or commercial uses of 
        established cover on land that is subject to a contract under 
        the conservation reserve program if--
                    ``(A) those activities or uses--
                          ``(i) are consistent with the conservation of 
                      soil, water quality, and wildlife habitat;
                          ``(ii) are subject to appropriate restrictions 
                      during the primary nesting season for birds in the 
                      local area that are economically significant, in 
                      significant decline, or conserved in accordance 
                      with Federal or State law;
                          ``(iii) contribute to the health and vigor of 
                      the established cover; and
                          ``(iv) are consistent with a site-specific 
                      plan, including vegetative management 
                      requirements, stocking rates, and frequency and 
                      duration of activity, taking into consideration 
                      regional differences, such as climate, soil type, 
                      and natural resources; and
                    ``(B) the Secretary, in coordination with the State 
                technical committee, includes contract modifications--
                          ``(i) without any reduction in the rental rate 
                      for--
                                    ``(I) emergency haying, emergency 
                                grazing, or other emergency use of the 
                                forage in response to a localized or 
                                regional drought, flooding, wildfire, or 
                                other emergency, on all practices, 
                                outside the primary nesting season, 
                                when--
                                            ``(aa) the county is 
                                        designated as D2 (severe 
                                        drought) or greater according to 
                                        the United States Drought 
                                        Monitor;
                                            ``(bb) there is at least a 
                                        40 percent loss in forage 
                                        production in the county; or
                                            ``(cc) the Secretary, in 
                                        coordination with the State 
                                        technical committee, determines 
                                        that the program can assist in 
                                        the response to a natural 
                                        disaster event without permanent 
                                        damage to the established cover;
                                    ``(II) emergency grazing on all 
                                practices during the primary nesting 
                                season if payments are authorized for a 
                                county under the livestock forage 
                                disaster program under clause (ii) of 
                                section 1501(c)(3)(D) of the 
                                Agricultural Act of 2014 (7

[[Page 132 STAT. 4545]]

                                U.S.C. 9081(c)(3)(D)), at 50 percent of 
                                the normal carrying capacity determined 
                                under clause (i) of that section, 
                                adjusted to the site-specific plan;
                                    ``(III) emergency haying on certain 
                                practices, outside the primary nesting 
                                season, if payments are authorized for a 
                                county under the livestock forage 
                                disaster program under clause (ii) of 
                                section 1501(c)(3)(D) of the 
                                Agricultural Act of 2014 (7 U.S.C. 
                                9081(c)(3)(D)), on not more than 50 
                                percent of contract acres, as identified 
                                in the site-specific plan;
                                    ``(IV) grazing of all practices, 
                                outside the primary nesting season, if 
                                included as a mid-contract management 
                                practice under section 1232(a)(5);
                                    ``(V) the intermittent and seasonal 
                                use of vegetative buffer established 
                                under paragraphs (4) and (5) of section 
                                1231(b) that are incidental to 
                                agricultural production on land adjacent 
                                to the buffer such that the permitted 
                                use--
                                            ``(aa) does not destroy the 
                                        permanent vegetative cover; and
                                            ``(bb) retains suitable 
                                        vegetative structure for 
                                        wildlife cover and shelter 
                                        outside the primary nesting 
                                        season; or
                                    ``(VI) grazing on all practices, 
                                outside the primary nesting season, if 
                                conducted by a beginning farmer or 
                                rancher; or
                          ``(ii) with a 25 percent reduction in the 
                      annual rental rate for the acres covered by the 
                      authorized activity, including--
                                    ``(I) grazing not more frequently 
                                than every other year on the same land, 
                                except that during the primary nesting 
                                season, grazing shall be subject to a 50 
                                percent reduction in the stocking rate 
                                specified in the site-specific plan;
                                    ``(II) grazing of all practices 
                                during the primary nesting season, with 
                                a 50 percent reduction in the stocking 
                                rate specified in the site-specific 
                                plan;
                                    ``(III) haying and other commercial 
                                use (including the managed harvesting of 
                                biomass and excluding the harvesting of 
                                vegetative cover), on the condition that 
                                the activity--
                                            ``(aa) is completed outside 
                                        the primary nesting season;
                                            ``(bb) occurs not more than 
                                        once every 3 years; and
                                            ``(cc) maintains 25 percent 
                                        of the total contract acres 
                                        unharvested, in accordance with 
                                        a site-specific plan that 
                                        provides for wildlife cover and 
                                        shelter;
                                    ``(IV) annual grazing outside the 
                                primary nesting season if consistent 
                                with a site-specific plan that is 
                                authorized for the control of invasive 
                                species; and
                                    ``(V) the installation of wind 
                                turbines and associated access, except 
                                that in permitting the installation of 
                                wind turbines, the Secretary shall

[[Page 132 STAT. 4546]]

                                determine the number and location of 
                                wind turbines that may be installed, 
                                taking into account--
                                            ``(aa) the location, size, 
                                        and other physical 
                                        characteristics of the land;
                                            ``(bb) the extent to which 
                                        the land contains threatened or 
                                        endangered wildlife and wildlife 
                                        habitat; and
                                            ``(cc) the purposes of the 
                                        conservation reserve program 
                                        under this subchapter.
            ``(2) Conditions on haying and grazing.--
                    ``(A) In general.--The Secretary may permit haying 
                or grazing in accordance with paragraph (1) on any land 
                or practice subject to a contract under the conservation 
                reserve program.
                    ``(B) Exceptions.--
                          ``(i) Damage to vegetative cover.--Haying or 
                      grazing described in paragraph (1) shall not be 
                      permitted on land subject to a contract under the 
                      conservation reserve program, or under a 
                      particular practice, if haying or grazing for that 
                      year under that practice, as applicable, would 
                      cause long-term damage to vegetative cover on that 
                      land.
                          ``(ii) Special agreements.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), haying or 
                                grazing described in paragraph (1) shall 
                                not be permitted on--
                                            ``(aa) land covered by a 
                                        contract enrolled under the 
                                        State acres for wildlife 
                                        enhancement program established 
                                        by the Secretary; or
                                            ``(bb) land covered by a 
                                        contract enrolled under a 
                                        conservation reserve enhancement 
                                        program established under 
                                        section 1231A or the 
                                        Conservation Reserve Enhancement 
                                        Program established by the 
                                        Secretary under this subchapter.
                                    ``(II) Exception.--Subclause (I) 
                                shall not apply to land on which haying 
                                or grazing is specifically permitted 
                                under the applicable conservation 
                                reserve enhancement program agreement or 
                                other partnership agreement entered into 
                                under this subchapter.''.

    (c) Natural Disaster or Adverse Weather as Mid-contract 
Management.--Section 1233 of the Food Security Act of 1985 (16 U.S.C. 
3833) is amended by adding at the end the following:
    ``(e) Natural Disaster or Adverse Weather as Mid-contract 
Management.--In the case of a natural disaster or adverse weather event 
that has the effect of a management practice consistent with the 
conservation plan, the Secretary shall not require further management 
practices pursuant to section 1232(a)(5) that are intended to achieve 
the same effect.''.
SEC. 2207. PAYMENTS.

    (a) Cost Sharing Payments.--Section 1234(b) of the Food Security Act 
of 1985 (16 U.S.C. 3834(b)) is amended--
            (1) by striking paragraphs (2) through (4) and inserting the 
        following:
            ``(2) Limitations.--

[[Page 132 STAT. 4547]]

                    ``(A) In general.--The Secretary shall ensure, to 
                the maximum extent practicable, that cost sharing 
                payments to an owner or operator under this subchapter, 
                when combined with the sum of payments from all other 
                funding sources for measures and practices described in 
                paragraph (1), do not exceed 100 percent of the total 
                actual cost of establishing those measures and 
                practices, as determined by the Secretary.
                    ``(B) Mid-contract management grazing.--The 
                Secretary may not make any cost sharing payment to an 
                owner or operator under this subchapter pursuant to 
                section 1232(a)(5).
                    ``(C) Seed cost.--In the case of seed costs related 
                to the establishment of cover, cost sharing payments 
                under this subchapter shall not exceed 50 percent of the 
                actual cost of the seed mixture, as determined by the 
                Secretary.'';
            (2) by redesignating paragraph (5) as paragraph (3);
            (3) in paragraph (3) (as so redesignated), by striking ``An 
        owner'' and inserting ``Except in the case of incentive payments 
        that are related to the cost of the establishment of a practice 
        and received from eligible partners under the conservation 
        reserve enhancement program under section 1231A, an owner''; and
            (4) by adding at the end the following:
            ``(4) Practice incentives for continuous practices.--In 
        addition to the cost sharing payment described in this 
        subsection, the Secretary shall make an incentive payment to an 
        owner or operator of land enrolled under section 1231(d)(6) in 
        an amount not to exceed 50 percent of the actual cost of 
        establishing all measures and practices described in paragraph 
        (1), including seed costs related to the establishment of cover, 
        as determined by the Secretary.''.

    (b) Incentive Payments.--Section 1234(c) of the Food Security Act of 
1985 (16 U.S.C. 3834(c)) is amended--
            (1) in the subsection heading, by striking ``Incentive'' and 
        inserting ``Forest Management Incentive'';
            (2) in paragraph (1), by striking ``The Secretary'' and 
        inserting ``Using funds made available under section 
        1241(a)(1)(A), the Secretary''; and
            (3) in paragraph (2), by striking ``150 percent'' and 
        inserting ``100 percent''.

    (c) Annual Rental Payments.--Section 1234(d) of the Food Security 
Act of 1985 (16 U.S.C. 3834(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``the Secretary may consider, among 
                other things, the amount'' and inserting the following: 
                ``the Secretary shall consider--
                    ``(A) the amount'';
                    (B) in subparagraph (A) (as so designated), by 
                striking the period at the end and inserting a 
                semicolon; and
                    (C) by adding at the end the following:
                    ``(B) the impact on the local farmland rental 
                market; and
                    ``(C) such other factors as the Secretary determines 
                to be appropriate.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--

[[Page 132 STAT. 4548]]

                          (i) in clause (i), by striking ``; or'' and 
                      inserting a period;
                          (ii) by striking clause (ii); and
                          (iii) by striking ``determined through--'' in 
                      the matter preceding clause (i) and all that 
                      follows through ``the submission of bids'' in 
                      clause (i) and inserting ``determined through the 
                      submission of applications'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) Multiple enrollments.--
                          ``(i) In general.--Subject to clause (ii), if 
                      land subject to a contract entered into under this 
                      subchapter is reenrolled under section 1231(h)(1) 
                      or has been previously enrolled in the 
                      conservation reserve, the annual rental payment 
                      shall be in an amount that is not more than 85 
                      percent in the case of general enrollment 
                      contacts, or 90 percent in the case of continuous 
                      enrollment contracts, of the applicable estimated 
                      average county rental rate published pursuant to 
                      paragraph (4) for the year in which the 
                      reenrollment occurs.
                          ``(ii) Conservation reserve enhancement 
                      program.--The reduction in annual rental payments 
                      under clause (i) may be waived as part of the 
                      negotiation between the Secretary and an eligible 
                      partner to enter into a conservation reserve 
                      enhancement program agreement under section 
                      1231A.'';
                    (D) in subparagraph (C) (as so redesignated), by 
                striking ``In the case'' and inserting ``Notwithstanding 
                subparagraph (A), in the case''; and
                    (E) by adding at the end the following:
                    ``(D) Continuous sign-up incentives.--The Secretary 
                shall make an incentive payment to the owner or operator 
                of land enrolled under section 1231(d)(6) at the time of 
                initial enrollment in an amount equal to 32.5 percent of 
                the amount of the first annual rental payment under 
                subparagraph (A).'';
            (3) by striking paragraph (4);
            (4) by redesignating paragraph (5) as paragraph (4); and
            (5) in paragraph (4) (as so redesignated)--
                    (A) in subparagraph (A)--
                          (i) by striking ``, not less frequently than 
                      once every other year,'' and inserting 
                      ``annually''; and
                          (ii) by inserting ``, and shall publish the 
                      estimates derived from the survey not later than 
                      September 15 of each year'' before the period at 
                      the end;
                    (B) in subparagraph (B), by inserting ``and the 
                average current and previous soil rental rates for each 
                county'' after ``subparagraph (A)'';
                    (C) in subparagraph (C), by striking ``may use'' and 
                inserting ``shall consider''; and
                    (D) by adding at the end the following:
                    ``(D) Submission of additional information by state 
                fsa offices and crep partners.--
                          ``(i) In general.--The Secretary shall provide 
                      an opportunity for State Committees of the Farm 
                      Service Agency or eligible partners (as defined in 
                      section

[[Page 132 STAT. 4549]]

                      1231A(a)) in conservation reserve enhancement 
                      programs under section 1231A to propose an 
                      alternative soil rental rate prior to finalizing 
                      new rates, on the condition that documentation 
                      described in clause (ii) is provided to support 
                      the proposed alternative.
                          ``(ii) Acceptable documentation.--
                      Documentation referred to in clause (i) includes--
                                    ``(I) an average of cash rents from 
                                a random sample of lease agreements;
                                    ``(II) cash rent estimates from a 
                                published survey;
                                    ``(III) neighboring county estimate 
                                comparisons from the National 
                                Agricultural Statistics Service;
                                    ``(IV) an average of cash rents from 
                                Farm Service Agency farm business plans;
                                    ``(V) models that estimate cash 
                                rents, such as models that use returns 
                                to estimate crop production or land 
                                value data; or
                                    ``(VI) other documentation, as 
                                determined by the Secretary.
                          ``(iii) Notification.--Not less than 14 days 
                      prior to the announcement of new or revised soil 
                      rental rates, the Secretary shall offer a briefing 
                      to the Chairman and Ranking Member of the 
                      Committee on Agriculture of the House of 
                      Representatives and the Chairman and Ranking 
                      Member of the Committee on Agriculture, Nutrition, 
                      and Forestry of the Senate, including information 
                      on and the rationale for the alternative rates 
                      proposed under clause (i) that were accepted or 
                      rejected.
                    ``(E) Rental rate limitation.--Notwithstanding 
                forest management incentive payments described in 
                subsection (c), the county average soil rental rate 
                (before any adjustments relating to specific practices, 
                wellhead protection, or soil productivity) shall not 
                exceed--
                          ``(i) 85 percent of the estimated rental rate 
                      determined under this paragraph for general 
                      enrollment; or
                          ``(ii) 90 percent of the estimated rental rate 
                      determined under this paragraph for continuous 
                      enrollment.''.

    (d) Payment Limitation for Rental Payments.--Section 1234(g) of the 
Food Security Act of 1985 (16 U.S.C. 3834(g)) is amended--
            (1) in paragraph (1), by striking ``The total'' and 
        inserting ``Except as provided in paragraph (2), the total''; 
        and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Wellhead protection.--Paragraph (1) and section 
        1001D(b) shall not apply to rental payments received by a rural 
        water district or association for land that is enrolled under 
        this subchapter for the purpose of protecting a wellhead.''.
SEC. 2208. CONTRACTS.

    (a) Transition Option for Certain Farmers or Ranchers.--Section 
1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is 
amended--
            (1) in paragraph (1)--

[[Page 132 STAT. 4550]]

                    (A) in the matter preceding subparagraph (A), by 
                striking ``retired farmer or rancher'' and inserting 
                ``contract holder'';
                    (B) by striking ``retired or retiring owner or 
                operator'' each place it appears and inserting 
                ``contract holder'';
                    (C) in subparagraph (A), in the matter preceding 
                clause (i), by striking ``1 year'' and inserting ``2 
                years'';
                    (D) in subparagraph (B), by inserting ``, including 
                a lease with a term of less than 5 years and an option 
                to purchase'' after ``option to purchase'';
                    (E) in subparagraph (D), by striking ``; and'' and 
                inserting a semicolon;
                    (F) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (G) by inserting after subparagraph (D) the 
                following:
                    ``(E) give priority to the enrollment of the land 
                covered by the contract in--
                          ``(i) the environmental quality incentives 
                      program established under subchapter A of chapter 
                      4;
                          ``(ii) the conservation stewardship program 
                      established under subchapter B of chapter 4; or
                          ``(iii) the agricultural conservation easement 
                      program established under subtitle H; and''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``The Secretary'' and inserting ``To the extent 
                that the maximum number of acres permitted to be 
                enrolled under the conservation reserve program has not 
                been met, the Secretary''; and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A)(i) is carried out on land described in 
                paragraph (4) or (5) of section 1231(b); and
                    ``(ii) is eligible for continuous enrollment under 
                section 1231(d)(6); and''.

    (b) End of Contract Considerations.--Section 1235(g) of the Food 
Security Act of 1985 (16 U.S.C. 3835(g)) is amended to read as follows:
    ``(g) End of Contract Considerations.--The Secretary shall not 
consider an owner or operator to be in violation of a term or condition 
of the conservation reserve contract if--
            ``(1) during the year prior to expiration of the contract, 
        the owner or operator--
                    ``(A)(i) enters into a contract under the 
                environmental quality incentives program established 
                under subchapter A of chapter 4; and
                    ``(ii) begins the establishment of a practice under 
                that contract; or
                    ``(B)(i) enters into a contract under the 
                conservation stewardship program established under 
                subchapter B of chapter 4; and
                    ``(ii) begins the establishment of a practice under 
                that contract; or
            ``(2) during the 3 years prior to the expiration of the 
        contract, the owner or operator begins the certification process 
        under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et 
        seq.).''.

[[Page 132 STAT. 4551]]

SEC. 2209. <<NOTE: 16 USC 3831 note.>>  ELIGIBLE LAND; STATE LAW 
                          REQUIREMENTS.

    The Secretary shall revise paragraph (4) of section 1410.6(d) of 
title 7, Code of Federal Regulations, to provide that land enrolled 
under a Conservation Reserve Enhancement Program agreement initially 
established before January 1, 2014 (including an amended or successor 
Conservation Reserve Enhancement Program agreement, as determined by the 
Secretary), shall not be ineligible for enrollment in 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.) 
under that paragraph if the Deputy Administrator (as defined in section 
1410.2(b) of title 7, Code of Federal Regulations (or successor 
regulations)), on recommendation from and in consultation with the 
applicable State technical committee established under section 1261(a) 
of the Food Security Act of 1985 (16 U.S.C. 3861(a)) determines, under 
such terms and conditions as the Deputy Administrator, in consultation 
with the State technical committee, determines to be appropriate, that 
making that land eligible for enrollment in that program is not contrary 
to the purposes of that program.

 Subtitle C--Environmental Quality Incentives Program and Conservation 
                           Stewardship Program

SEC. 2301. REPEAL OF CONSERVATION PROGRAMS.

    (a) In General.--Chapter 4 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3839aa et seq.) is amended--
            (1) by striking the chapter designation and heading and 
        inserting the following:

 ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM AND CONSERVATION 
                           STEWARDSHIP PROGRAM

     ``Subchapter A--Environmental Quality Incentives Program''; and

            (2) by inserting after section 1240H the following:

           ``Subchapter B--Conservation Stewardship Program''.

    (b) Conservation Stewardship 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--
            (1) by redesignating sections 1238D through 1238G <<NOTE: 16 
        USC 3838d-3838g.>>  as sections 1240I through 1240L, 
        respectively; and
            (2) by moving sections 1240I through 1240L <<NOTE: 16 
        USC 3839aa-21-- 3839aa-24.>>  (as so redesignated) so as to 
        appear after the subchapter heading for subchapter B of chapter 
        4 of subtitle D of title XII of that Act (as added by subsection 
        (a)(2)).

    (c) Repeal.--
            (1) In general.--Chapter 2 of subtitle D of title XII of the 
        Food Security Act of 1985 (16 U.S.C. 3838 et seq.) (as amended 
        by subsection (b)) <<NOTE: 16 USC 3838-3838c.>>  is repealed.

[[Page 132 STAT. 4552]]

            (2) <<NOTE: 16 USC 3838d note.>>  Termination of 
        conservation stewardship program.--Effective on the date of 
        enactment of this Act, the conservation stewardship program 
        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.) (as in 
        effect on the day before the date of enactment of this Act) 
        shall cease to be effective.
            (3) <<NOTE: 16 USC 3839aa-21 note.>>  Transitional 
        provisions.--
                    (A) Effect on existing contracts and agreements.--
                The cessation of effectiveness under paragraph (2) shall 
                not affect--
                          (i) the validity or terms of any contract 
                      entered into by the Secretary under subchapter B 
                      of chapter 2 of subtitle D of title XII of the 
                      Food Security Act of 1985 (16 U.S.C. 3838d et 
                      seq.) before the date of enactment of this Act, or 
                      any payments, modifications, or technical 
                      assistance required to be made in connection with 
                      the contract; or
                          (ii) subject to subparagraph (D), any 
                      agreement entered into by the Secretary under the 
                      regional conservation partnership program under 
                      subtitle I of title XII of the Food Security Act 
                      of 1985 (16 U.S.C. 3871 et seq.) on or before 
                      September 30, 2018, under which conservation 
                      stewardship program acres and associated funding 
                      have been allocated to the agreement for the 
                      purpose of entering into a contract under 
                      subchapter B of chapter 2 of subtitle D of title 
                      XII of that Act (16 U.S.C. 3838d et seq.) (as in 
                      effect on the day before the date of enactment of 
                      this Act).
                    (B) Extension permitted.--Notwithstanding paragraph 
                (2), the Secretary may extend for 1 year a contract 
                described in subparagraph (A)(i) if that contract 
                expires on or before December 31, 2019, under the terms 
                and payment rate of the existing contract and in 
                accordance with 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.) (as in effect on the day before the date 
                of enactment of this Act).
                    (C) Renewal not permitted.--
                          (i) In general.--Notwithstanding subparagraph 
                      (A), and subject to clause (ii), the Secretary may 
                      not renew a contract or agreement described in 
                      that subparagraph.
                          (ii) Exception.--The Secretary may renew a 
                      contract described in subparagraph (A)(i)--
                                    (I) if that contract expires on or 
                                after December 31, 2019;
                                    (II) under the terms of the 
                                conservation stewardship program under 
                                subchapter B of chapter 4 of subtitle D 
                                of title XII of the Food Security Act of 
                                1985 (as added by subsections (a)(2) and 
                                (b)); and
                                    (III) subject to the limitation on 
                                funding for that subchapter under 
                                section 1241 of the Food Security Act of 
                                1985 (16 U.S.C. 3841).
                    (D) RCPP contracts.--

[[Page 132 STAT. 4553]]

                          (i) Treatment of acreage.--In the case of an 
                      agreement described in subparagraph (A)(ii), the 
                      Secretary may provide an amount of funding that is 
                      equivalent to the value of any acres covered by 
                      the agreement.
                          (ii) Funds and acres not obligated.--In the 
                      case of an agreement described in subparagraph 
                      (A)(ii) to which program acres and associated 
                      funding have been allocated but not yet obligated 
                      to enter into a contract 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.) (as 
                      in effect on the day before the date of enactment 
                      of this Act)--
                                    (I) the Secretary shall modify the 
                                agreement to authorize the entrance into 
                                a contract under subchapter B of chapter 
                                4 of subtitle D of title XII of the Food 
                                Security Act of 1985 (as added by 
                                subsections (a)(2) and (b)); and
                                    (II) the funds associated with the 
                                conservation stewardship program acres 
                                allocated under that agreement, on 
                                modification under subclause (I), may be 
                                used to enter into conservation 
                                stewardship program contracts with 
                                producers under subchapter B of chapter 
                                4 of subtitle D of title XII of the Food 
                                Security Act of 1985 (as added by 
                                subsections (a)(2) and (b)).
            (4) <<NOTE: 16 USC 3839aa-21 note.>>  Contract 
        administration.--Subject to paragraphs (3)(C) and 
        (3)(D)(ii)(II), the Secretary shall administer each contract and 
        agreement described in clauses (i) and (ii) of paragraph (3)(A) 
        until the expiration of the contract or agreement in accordance 
        with the regulations to carry out the conservation stewardship 
        program 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.) 
        (as in effect on the day before the date of enactment of this 
        Act) that are in effect on the day before that date of 
        enactment.
            (5) <<NOTE: 16 USC 3839aa-21 note.>>  Funding.--
        Notwithstanding paragraphs (1) and (2), any funds made available 
        from the Commodity Credit Corporation under section 1241(a)(4) 
        of the Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) for 
        fiscal years 2014 through 2018 shall be available to carry out--
                    (A) any contract or agreement described in paragraph 
                (3)(A)(i) for fiscal year 2019;
                    (B) any contract or agreement described in paragraph 
                (3)(A)(ii);
                    (C) any contract extended under paragraph (3)(B); 
                and
                    (D) any contract or agreement under subchapter B of 
                chapter 4 of subtitle D of title XII of the Food 
                Security Act of 1985 (as added by subsections (a)(2) and 
                (b)).

    (d) Conforming Amendments.--
            (1) Food security act of 1985.--
                    (A) Section 1211(a)(3)(A) of the Food Security Act 
                of 1985 (16 U.S.C. 3811(a)(3)(A)) is amended by 
                inserting ``subchapter A of'' before ``chapter 4''.
                    (B) Section 1221(b)(3)(A) of the Food Security Act 
                of 1985 (16 U.S.C. 3821(b)(3)(A)) is amended by 
                inserting ``subchapter A of'' before ``chapter 4''.

[[Page 132 STAT. 4554]]

                    (C) Section 1240J(b)(1) of the Food Security Act of 
                1985 (as redesignated by subsection (b)(1)) is amended 
                by striking subparagraph (C).
                    (D) Section 1240 of the Food Security Act of 1985 
                (16 U.S.C. 3839aa) is amended in the matter preceding 
                paragraph (1) by striking ``chapter'' and inserting 
                ``subchapter''.
                    (E) Section 1240A of the Food Security Act of 1985 
                (16 U.S.C. 3839aa-1) is amended by striking ``chapter'' 
                each place it appears and inserting ``subchapter''.
                    (F) Section 1240B(i)(2)(B) of the Food Security Act 
                of 1985 (16 U.S.C. 3839aa-2(i)(2)(B)) is amended by 
                striking ``chapter'' and inserting ``subchapter''.
                    (G) Section 1240C(b) of the Food Security Act of 
                1985 (16 U.S.C. 3839aa-3(b)) is amended in the matter 
                preceding paragraph (1) by striking ``chapter'' and 
                inserting ``subchapter''.
                    (H) Section 1240E(b)(2) of the Food Security Act of 
                1985 (16 U.S.C. 3839aa-5(b)(2)) is amended by striking 
                ``chapter'' and inserting ``subchapter''.
                    (I) Section 1240G of the Food Security Act of 1985 
                (16 U.S.C. 3839aa-7) is amended by striking ``chapter'' 
                each place it appears and inserting ``subchapter''.
                    (J) Section 1240H of the Food Security Act of 1985 
                (16 U.S.C. 3839aa-8) is amended by striking ``chapter'' 
                each place it appears and inserting ``subchapter''.
                    (K) Section 1244(c)(3) of the Food Security Act of 
                1985 (16 U.S.C. 3844(c)(3)) is amended by inserting 
                ``subchapter A of'' before ``chapter 4''.
                    (L) Section 1244(l) of the Food Security Act of 1985 
                (16 U.S.C. 3844(l)) is amended--
                          (i) by striking ``chapter 2'' and inserting 
                      ``chapter 4''; and
                          (ii) by inserting ``subchapter A of'' after 
                      ``incentives program under''.
            (2) Other laws.--
                    (A) Section 344(f)(8) of the Agricultural Adjustment 
                Act of 1938 (7 U.S.C. 1344(f)(8)) is amended by 
                inserting ``subchapter A of'' before ``chapter 4''.
                    (B) Section 377 of the Agricultural Adjustment Act 
                of 1938 (7 U.S.C. 1377) is amended by inserting 
                ``subchapter A of'' before ``chapter 4''.
                    (C) Paragraph (1) of the last proviso of the matter 
                under the heading ``conservation reserve program'' under 
                the heading ``Soil Bank Programs'' of title I of the 
                Department of Agriculture and Farm Credit Administration 
                Appropriation Act, 1959 (7 U.S.C. 1831a), is amended by 
                inserting ``subchapter A of'' before ``chapter 4''.
                    (D) Section 8(b)(1) of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590h(b)(1)) is amended 
                by inserting ``subchapter A of'' before ``chapter 4''.
                    (E) Section 1271(c)(3)(C) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (16 U.S.C. 
                2106a(c)(3)(C)) is amended by inserting ``subchapter A 
                of'' before ``chapter 4''.

[[Page 132 STAT. 4555]]

                    (F) Section 304(a)(1) of the Lake Champlain Special 
                Designation Act of 1990 (33 U.S.C. 1270 note; Public Law 
                101-596) is amended by inserting ``subchapter A of'' 
                before ``chapter 4''.
                    (G) Section 202(c) of the Colorado River Basin 
                Salinity Control Act (43 U.S.C. 1592(c)) is amended by 
                inserting ``subchapter A of'' before ``chapter 4''.
SEC. 2302. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is 
amended by striking paragraph (4) and inserting the following:
            ``(4) assisting producers to make beneficial, cost-effective 
        changes to production systems, including addressing identified, 
        new, or expected resource concerns related to organic 
        production, grazing management, fuels management, forest 
        management, nutrient management associated with crops and 
        livestock, pest management, irrigation management, adapting to, 
        and mitigating against, increasing weather volatility, drought 
        resiliency measures, or other practices on agricultural and 
        forested land.''.
SEC. 2303. DEFINITIONS UNDER ENVIRONMENTAL QUALITY INCENTIVES 
                          PROGRAM.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) 
is amended--
            (1) by redesignating paragraphs (1), (2), (3), (4) and (5) 
        as paragraphs (2), (4), (5), (6), and (8), respectively;
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Conservation planning assessment.--The term 
        `conservation planning assessment' means a report, as determined 
        by the Secretary, that--
                    ``(A) is developed by--
                          ``(i) a State or unit of local government 
                      (including a conservation district);
                          ``(ii) a Federal agency; or
                          ``(iii) a third-party provider certified under 
                      section 1242(e) (including a certified rangeland 
                      professional);
                    ``(B) assesses rangeland or cropland function and 
                describes conservation activities to enhance the 
                economic and ecological management of that land; and
                    ``(C) can be incorporated into a comprehensive 
                planning document required by the Secretary for 
                enrollment in a conservation program of the Department 
                of Agriculture.'';
            (3) in paragraph (2) (as so redesignated), in subparagraph 
        (B)(vi)--
                    (A) by inserting ``environmentally sensitive 
                areas,'' after ``marshes,''; and
                    (B) by inserting ``identified or expected'' before 
                ``resource concerns'';
            (4) by inserting after paragraph (2) (as so redesignated) 
        the following:
            ``(3) Incentive practice.--The term `incentive practice' 
        means a practice or set of practices approved by the Secretary 
        that, when implemented and maintained on eligible land, address 
        1 or more priority resource concerns.'';
            (5) in paragraph (6) (as so redesignated)--

[[Page 132 STAT. 4556]]

                    (A) in subparagraph (A)--
                          (i) in clause (iv), by striking ``and'' at the 
                      end;
                          (ii) by redesignating clause (v) as clause 
                      (vii); and
                          (iii) by inserting after clause (iv) the 
                      following:
                          ``(v) soil testing;
                          ``(vi) soil remediation to be carried out by 
                      the producer; and''; and
                    (B) in subparagraph (B)--
                          (i) in clause (i), by striking ``and'' at the 
                      end;
                          (ii) by redesignating clause (ii) as clause 
                      (vi); and
                          (iii) by inserting after clause (i) the 
                      following:
                          ``(ii) planning for resource-conserving crop 
                      rotations (as defined in section 1240L(d)(1));
                          ``(iii) soil health planning, including 
                      increasing soil organic matter and the use of 
                      cover crops;
                          ``(iv) a conservation planning assessment;
                          ``(v) precision conservation management 
                      planning; and'';
            (6) by inserting after paragraph (6) (as so redesignated) 
        the following:
            ``(7) Priority resource concern.--The term `priority 
        resource concern' means a natural resource concern or problem, 
        as determined by the Secretary, that--
                    ``(A) is identified at the national, State, or local 
                level as a priority for a particular area of a State; 
                and
                    ``(B) represents a significant concern in a State or 
                region.''; and
            (7) by adding at the end the following:
            ``(9) Soil remediation.--The term `soil remediation' means 
        scientifically based practices that--
                    ``(A) ensure the safety of producers from 
                contaminants in soil;
                    ``(B) limit contaminants in soil from entering 
                agricultural products for human or animal consumption; 
                and
                    ``(C) regenerate and sustain the soil.
            ``(10) Soil testing.--The term `soil testing' means the 
        evaluation of soil health, including testing for--
                    ``(A) the optimal level of constituents in the soil, 
                such as organic matter, nutrients, and the potential 
                presence of soil contaminants, including heavy metals, 
                volatile organic compounds, polycyclic aromatic 
                hydrocarbons, or other contaminants; and
                    ``(B) the biological and physical characteristics 
                indicative of proper soil functioning.''.
SEC. 2304. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL 
                          QUALITY INCENTIVES PROGRAM.

    (a) Establishment.--Section 1240B(a) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)) is amended by striking ``2019'' and 
inserting ``2023''.
    (b) Payments.--Section 1240B(d) of the Food Security Act of 1985 (16 
U.S.C. 3839aa-2(d)) is amended--
            (1) in paragraph (4)(B)--
                    (A) in clause (i)--
                          (i) by striking ``Not more than'' and 
                      inserting ``On an election by a producer described 
                      in subparagraph (A), the Secretary shall provide 
                      at least'';

[[Page 132 STAT. 4557]]

                          (ii) by striking ``may be provided''; and
                          (iii) by striking ``the purpose of'' and 
                      inserting ``all costs related to''; and
                    (B) by adding at the end the following:
                          ``(iii) Notification and documentation.--The 
                      Secretary shall--
                                    ``(I) notify each producer described 
                                in subparagraph (A), at the time of 
                                enrollment in the program, of the option 
                                to receive advance payments under clause 
                                (i); and
                                    ``(II) document the election of each 
                                producer described in subparagraph (A) 
                                to receive advance payments under clause 
                                (i) with respect to each practice that 
                                has costs described in that clause.''; 
                                and
            (2) by adding at the end the following:
            ``(7) Increased payments for high-priority practices.--
                    ``(A) State determination.--Each State, in 
                consultation with the State technical committee 
                established under section 1261(a) for the State, may 
                designate not more than 10 practices to be eligible for 
                increased payments under subparagraph (B), on the 
                condition that the practice, as determined by the 
                Secretary--
                          ``(i) addresses specific causes of impairment 
                      relating to excessive nutrients in groundwater or 
                      surface water;
                          ``(ii) addresses the conservation of water to 
                      advance drought mitigation and declining aquifers;
                          ``(iii) meets other environmental priorities 
                      and other priority resource concerns identified in 
                      habitat or other area restoration plans; or
                          ``(iv) is geographically targeted to address a 
                      natural resource concern in a specific watershed.
                    ``(B) Increased payments.--Notwithstanding paragraph 
                (2), in the case of a practice designated under 
                subparagraph (A), the Secretary may increase the amount 
                that would otherwise be provided for a practice under 
                this subsection to not more than 90 percent of the costs 
                associated with planning, design, materials, equipment, 
                installation, labor, management, maintenance, or 
                training.''.

    (c) Allocation of Funding.--Section 1240B(f) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2(f)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``2014 through 2018'' and inserting 
                ``2019 through 2023'';
                    (B) by striking ``60'' and inserting ``50''; and
                    (C) by striking ``production.'' and inserting 
                ``production, including grazing management practices.''; 
                and
            (2) in paragraph (2)--
                    (A) by striking ``For each'' and inserting the 
                following:
                    ``(A) Fiscal years 2014 through 2018.--For each''; 
                and
                    (B) by adding at the end the following:
                    ``(B) Fiscal years 2019 through 2023.--For each of 
                fiscal years 2019 through 2023, at least 10 percent of 
                the funds made available for payments under the program

[[Page 132 STAT. 4558]]

                shall be targeted at practices benefitting wildlife 
                habitat under subsection (g).''.

    (d) Wildlife Habitat Incentive Program.--Section 1240B(g) of the 
Food Security Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended by adding 
at the end the following:
            ``(3) Maximum term.--In the case of a contract under the 
        program entered into solely for the establishment of 1 or more 
        annual management practices for the benefit of wildlife as 
        described in paragraph (1), notwithstanding any maximum contract 
        term established by the Secretary, the contract shall have a 
        term that does not exceed 10 years.
            ``(4) Included practices.--For the purpose of providing 
        seasonal wetland habitat for waterfowl and migratory birds, a 
        practice that is eligible for payment under paragraph (1) and 
        targeted for funding under subsection (f) may include--
                    ``(A) a practice to carry out postharvest flooding; 
                or
                    ``(B) a practice to maintain the hydrology of 
                temporary and seasonal wetlands of not more than 2 acres 
                to maintain waterfowl and migratory bird habitat on 
                working cropland.''.

    (e) Water Conservation or Irrigation Efficiency Practice.--Section 
1240B(h) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(h)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Availability of payments.--The Secretary may provide 
        water conservation and system efficiency payments under this 
        subsection to an entity described in paragraph (2) or a producer 
        for--
                    ``(A) water conservation scheduling, water 
                distribution efficiency, soil moisture monitoring, or an 
                appropriate combination thereof;
                    ``(B) irrigation-related structural or other 
                measures that conserve surface water or groundwater, 
                including managed aquifer recovery practices; or
                    ``(C) a transition to water-conserving crops, water-
                conserving crop rotations, or deficit irrigation.'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following:
            ``(2) Eligibility of certain entities.--
                    ``(A) In general.--Notwithstanding section 
                1001(f)(6), the Secretary may enter into a contract 
                under this subsection with a State, irrigation district, 
                groundwater management district, acequia, land-grant 
                mercedes, or similar entity under a streamlined 
                contracting process to implement water conservation or 
                irrigation practices under a watershed-wide project that 
                will effectively conserve water, provide fish and 
                wildlife habitat, or provide for drought-related 
                environmental mitigation, as determined by the 
                Secretary.
                    ``(B) Implementation.--Water conservation or 
                irrigation practices that are the subject of a contract 
                entered into under subparagraph (A) shall be implemented 
                on--
                          ``(i) eligible land of a producer; or
                          ``(ii) land that is--
                                    ``(I) under the control of an 
                                irrigation district, groundwater 
                                management district, acequia, land-grant 
                                mercedes, or similar entity; and

[[Page 132 STAT. 4559]]

                                    ``(II) adjacent to eligible land 
                                described in clause (i), as determined 
                                by the Secretary.
                    ``(C) Waiver authority.--The Secretary may waive the 
                applicability of the limitations in section 1001D(b) or 
                section 1240G for a payment made under a contract 
                entered into under this paragraph if the Secretary 
                determines that the waiver is necessary to fulfill the 
                objectives of the project.
                    ``(D) Contract limitations.--If the Secretary grants 
                a waiver under subparagraph (C), the Secretary may 
                impose a separate payment limitation for the contract 
                with respect to which the waiver applies.'';
            (4) in paragraph (3) (as so redesignated)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``to a producer'' and inserting ``under this 
                subsection'';
                    (B) in subparagraph (A), by striking ``the eligible 
                land of the producer is located, there is a reduction in 
                water use in the operation of the producer'' and 
                inserting ``the land on which the practices will be 
                implemented is located, there is a reduction in water 
                use in the operation on that land''; and
                    (C) in subparagraph (B), by inserting ``except in 
                the case of an application under paragraph (2),'' before 
                ``the producer agrees''; and
            (5) by adding at the end the following:
            ``(4) Effect.--Nothing in this subsection authorizes the 
        Secretary to modify the process for determining the annual 
        allocation of funding to States under the program.''.

    (f) Payments for Conservation Practices Related to Organic 
Production.--Section 1240B(i)(3) of the Food Security Act of 1985 (16 
U.S.C. 3839aa-2(i)(3)) is amended--
            (1) in the first sentence, by striking ``Payments'' and 
        inserting the following:
                    ``(A) In general.--Payments'';
            (2) in the second sentence, by striking ``In applying these 
        limitations'' and inserting the following:
                    ``(B) Technical assistance.--In applying the 
                limitations under subparagraph (A)''; and
            (3) in subparagraph (A) (as so designated)--
                    (A) by striking ``aggregate, $20,000 per year or 
                $80,000 during any 6-year period.'' and inserting the 
                following: ``aggregate--
                          ``(i) through fiscal year 2018--
                                    ``(I) $20,000 per year; or
                                    ``(II) $80,000 during any 6-year 
                                period; and''; and
                    (B) by adding at the end the following:
                          ``(ii) during the period of fiscal years 2019 
                      through 2023, $140,000.''.

    (g) Conservation Incentive Contracts.--Section 1240B of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-2) is amended by adding at the 
end the following:
    ``(j) Conservation Incentive Contracts.--
            ``(1) Identification of eligible priority resource concerns 
        for states.--

[[Page 132 STAT. 4560]]

                    ``(A) In general.--The Secretary, in consultation 
                with the applicable State technical committee 
                established under section 1261(a), shall identify 
                watersheds (or other appropriate regions or areas within 
                a State) and the corresponding priority resource 
                concerns for those watersheds or other regions or areas 
                that are eligible to be the subject of an incentive 
                contract under this subsection.
                    ``(B) Limitation.--For each of the relevant land 
                uses within the watersheds, regions, or other areas 
                identified under subparagraph (A), the Secretary shall 
                identify not more than 3 eligible priority resource 
                concerns.
            ``(2) Contracts.--
                    ``(A) Authority.--
                          ``(i) In general.--The Secretary shall enter 
                      into contracts with producers under this 
                      subsection that require the implementation, 
                      adoption, management, and maintenance of incentive 
                      practices that effectively address at least 1 
                      eligible priority resource concern identified 
                      under paragraph (1) for the term of the contract.
                          ``(ii) Inclusions.--Through a contract entered 
                      into under clause (i), the Secretary may provide--
                                    ``(I) funding, through annual 
                                payments, for certain incentive 
                                practices to attain increased levels of 
                                conservation on eligible land; or
                                    ``(II) assistance, through a 
                                practice payment, to implement an 
                                incentive practice.
                    ``(B) Term.--A contract under this subsection shall 
                have a term of not less than 5, and not more than 10, 
                years.
                    ``(C) Prioritization.--Notwithstanding section 
                1240C, the Secretary shall develop criteria for 
                evaluating incentive practice applications that--
                          ``(i) give priority to applications that 
                      address eligible priority resource concerns 
                      identified under paragraph (1); and
                          ``(ii) evaluate applications relative to other 
                      applications for similar agriculture and forest 
                      operations.
            ``(3) Incentive practice payments.--
                    ``(A) In general.--The Secretary shall provide 
                payments to producers through contracts entered into 
                under paragraph (2) for--
                          ``(i) adopting and installing incentive 
                      practices; and
                          ``(ii) managing, maintaining, and improving 
                      the incentive practices for the duration of the 
                      contract, as determined appropriate by the 
                      Secretary.
                    ``(B) Payment amounts.--In determining the amount of 
                payments under subparagraph (A), the Secretary shall 
                consider, to the extent practicable--
                          ``(i) the level and extent of the incentive 
                      practice to be installed, adopted, completed, 
                      maintained, managed, or improved;
                          ``(ii) the cost of the installation, adoption, 
                      completion, management, maintenance, or 
                      improvement of the incentive practice;
                          ``(iii) income foregone by the producer, 
                      including payments, as appropriate, to address--

[[Page 132 STAT. 4561]]

                                    ``(I) increased economic risk;
                                    ``(II) loss in revenue due to 
                                anticipated reductions in yield; and
                                    ``(III) economic losses during 
                                transition to a resource-conserving 
                                cropping system or resource-conserving 
                                land use; and
                          ``(iv) the extent to which compensation would 
                      ensure long-term continued maintenance, 
                      management, and improvement of the incentive 
                      practice.
                    ``(C) Delivery of payments.--In making payments 
                under subparagraph (A), the Secretary shall, to the 
                extent practicable--
                          ``(i) in the case of annual payments under 
                      paragraph (2)(A)(ii)(I), make those payments as 
                      soon as practicable after October 1 of each fiscal 
                      year for which increased levels of conservation 
                      are maintained during the term of the contract; 
                      and
                          ``(ii) in the case of practice payments under 
                      paragraph (2)(A)(ii)(II), make those payments as 
                      soon as practicable on the implementation of an 
                      incentive practice.''.
SEC. 2305. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    Section 1240E(a)(3) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-5(a)(3)) is amended by inserting ``progressive'' before 
``implementation''.
SEC. 2306. LIMITATION ON PAYMENTS UNDER ENVIRONMENTAL QUALITY 
                          INCENTIVES PROGRAM.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended--
            (1) by striking ``A person'' and inserting ``Not including 
        payments made under section 1240B(j), a person''; and
            (2) by inserting ``or the period of fiscal years 2019 
        through 2023,'' after ``2018,''.
SEC. 2307. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    (a) Competitive Grants for Innovative Conservation Approaches.--
Section 1240H(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
8(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``program;'' and 
        inserting ``program or community colleges (as defined in section 
        1473E(a) of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3319e(a))) carrying out 
        demonstration projects on land of the community college;'';
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (G) and (H), respectively; and
            (3) by inserting after subparagraph (D) the following:
                    ``(E) partner with farmers to develop innovative 
                practices for urban, indoor, or other emerging 
                agricultural operations;
                    ``(F) utilize edge-of-field and other monitoring 
                practices on farms--
                          ``(i) to quantify the impacts of practices 
                      implemented under the program; and
                          ``(ii) to assist producers in making the best 
                      conservation investments for the operations of the 
                      producers;''.

[[Page 132 STAT. 4562]]

    (b) Air Quality Concerns From Agricultural Operations.--Section 
1240H(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-8(b)(2)) 
is amended by striking ``$25,000,000 for each of fiscal years 2009 
through 2018'' and inserting ``$37,500,000 for each of fiscal years 2019 
through 2023''.
    (c) On-Farm Conservation Innovation Trials; Reporting and 
Database.--Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
3839aa-8) is amended by striking subsection (c) and inserting the 
following:
    ``(c) On-Farm Conservation Innovation Trials.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible entity.--The term `eligible entity' 
                means, as determined by the Secretary--
                          ``(i) a third-party private entity the primary 
                      business of which is related to agriculture;
                          ``(ii) a nongovernmental organization with 
                      experience working with agricultural producers; or
                          ``(iii) a governmental organization.
                    ``(B) New or innovative conservation approach.--The 
                term `new or innovative conservation approach' means--
                          ``(i) new or innovative--
                                    ``(I) precision agriculture 
                                technologies;
                                    ``(II) enhanced nutrient management 
                                plans, nutrient recovery systems, and 
                                fertilization systems;
                                    ``(III) soil health management 
                                systems, including systems to increase 
                                soil carbon levels;
                                    ``(IV) water management systems;
                                    ``(V) resource-conserving crop 
                                rotations (as defined in section 
                                1240L(d)(1));
                                    ``(VI) cover crops; and
                                    ``(VII) irrigation systems; and
                          ``(ii) any other conservation approach 
                      approved by the Secretary as new or innovative.
            ``(2) Testing new or innovative conservation approaches.--
        Using $25,000,000 of the funds made available to carry out this 
        subchapter for each of fiscal years 2019 through 2023, the 
        Secretary shall carry out on-farm conservation innovation 
        trials, on eligible land of producers, to test new or innovative 
        conservation approaches--
                    ``(A) directly with producers; or
                    ``(B) through eligible entities.
            ``(3) Incentive payments.--
                    ``(A) Agreements.--In carrying out paragraph (2), 
                the Secretary shall enter into agreements with producers 
                (either directly or through eligible entities) on whose 
                land an on-farm conservation innovation trial is being 
                carried out to provide payments (including payments to 
                compensate for foregone income, as appropriate to 
                address the increased economic risk potentially 
                associated with new or innovative conservation 
                approaches) to the producers to assist with adopting and 
                evaluating new or innovative conservation approaches to 
                achieve conservation benefits.
                    ``(B) Adjusted gross income requirements.--
                          ``(i) In general.--Adjusted gross income 
                      requirements under section 1001D(b)(1) shall--

[[Page 132 STAT. 4563]]

                                    ``(I) apply to producers receiving 
                                payments under this subsection; and
                                    ``(II) be enforced by the Secretary.
                          ``(ii) Reporting.--An eligible entity 
                      participating in an on-farm conservation 
                      innovation trial under this subsection shall 
                      report annually to the Secretary on the amount of 
                      payments made to individual farm operations under 
                      this subsection.
                    ``(C) Limitation on administrative expenses.--None 
                of the funds made available to carry out this subsection 
                may be used to pay for the administrative expenses of an 
                eligible entity.
                    ``(D) Length of agreements.--An agreement entered 
                into under subparagraph (A) shall be for a period 
                determined by the Secretary that is--
                          ``(i) not less than 3 years; and
                          ``(ii) if appropriate, more than 3 years, 
                      including if such a period is appropriate to 
                      support--
                                    ``(I) adaptive management over 
                                multiple crop years; and
                                    ``(II) adequate data collection and 
                                analysis by a producer or eligible 
                                entity to report the natural resource 
                                and agricultural production benefits of 
                                the new or innovative conservation 
                                approaches to the Secretary.
            ``(4) Flexible adoption.--The scale of adoption of a new or 
        innovative conservation approach under an on-farm conservation 
        innovation trial under an agreement under paragraph (2) may 
        include multiple scales on an operation, including whole farm, 
        field-level, or sub-field scales.
            ``(5) Technical assistance.--The Secretary shall provide 
        technical assistance--
                    ``(A) to each producer or eligible entity 
                participating in an on-farm conservation innovation 
                trial under paragraph (2) with respect to the design, 
                installation, and management of the new or innovative 
                conservation approaches; and
                    ``(B) to each eligible entity participating in an 
                on-farm conservation innovation trial under paragraph 
                (2) with respect to data analyses of the on-farm 
                conservation innovation trial.
            ``(6) Geographic scope.--The Secretary shall identify a 
        diversity of geographic regions of the United States in which to 
        establish on-farm conservation innovation trials under paragraph 
        (2), taking into account factors such as soil type, cropping 
        history, and water availability.
            ``(7) Soil health demonstration trial.--Using funds made 
        available to carry out this subsection, the Secretary shall 
        carry out a soil health demonstration trial under which the 
        Secretary coordinates with eligible entities--
                    ``(A) to provide incentives to producers to 
                implement conservation practices that--
                          ``(i) improve soil health;
                          ``(ii) increase carbon levels in the soil; or
                          ``(iii) meet the goals described in clauses 
                      (i) and (ii);

[[Page 132 STAT. 4564]]

                    ``(B) to establish protocols for measuring carbon 
                levels in the soil and testing carbon levels on land 
                where conservation practices described in subparagraph 
                (A) were applied to evaluate gains in soil health as a 
                result of the practices implemented by the producers in 
                the soil health demonstration trial; and
                    ``(C)(i) not later than September 30, 2020, to 
                initiate a study regarding changes in soil health and, 
                if feasible, economic outcomes, generated as a result of 
                the conservation practices described in subparagraph (A) 
                that were applied by producers through the soil health 
                demonstration trial; and
                    ``(ii) to submit to the Committee on Agriculture of 
                the House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate 
                annual reports on the progress and results of the study 
                under clause (i).

    ``(d) Reporting and Database.--
            ``(1) Report required.--Not later than September 30, 2019, 
        and 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 activities funded under this section, 
        including--
                    ``(A) funding awarded;
                    ``(B) results of the activities, including, if 
                feasible, economic outcomes;
                    ``(C) incorporation of findings from the activities, 
                such as new technology and innovative approaches, into 
                the conservation efforts implemented by the Secretary; 
                and
                    ``(D) on completion of the study required under 
                subsection (c)(7)(C), the findings of the study.
            ``(2) Conservation practice database.--
                    ``(A) In general.--The Secretary shall use the data 
                reported under paragraph (1) to establish and maintain a 
                publicly available conservation practice database that 
                provides--
                          ``(i) a compilation and analysis of effective 
                      conservation practices for soil health, nutrient 
                      management, and source water protection in varying 
                      soil compositions, cropping systems, slopes, and 
                      landscapes; and
                          ``(ii) a list of recommended new and effective 
                      conservation practices.
                    ``(B) Privacy.--Information provided under 
                subparagraph (A) shall be transformed into a statistical 
                or aggregate form so as to not include any identifiable 
                or personal information of individual producers.''.
SEC. 2308. CONSERVATION STEWARDSHIP PROGRAM.

    (a) Definitions.--Section 1240I of the Food Security Act of 1985 (as 
redesignated by section 2301(b)) is amended--
            (1) in paragraph (2)(B)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:

[[Page 132 STAT. 4565]]

                          ``(iii) development of a comprehensive 
                      conservation plan, as defined in section 
                      1240L(e)(1);
                          ``(iv) soil health planning, including 
                      planning to increase soil organic matter; and
                          ``(v) activities that will assist a producer 
                      to adapt to, or mitigate against, increasing 
                      weather volatility.''; and
            (2) in paragraph (7), by striking the period at the end and 
        inserting the following: ``through the use of--
                    ``(A) quality criteria under a resource management 
                system;
                    ``(B) predictive analytics tools or models developed 
                or approved by the Natural Resources Conservation 
                Service;
                    ``(C) data from past and current enrollment in the 
                program; and
                    ``(D) other methods that measure conservation and 
                improvement in priority resource concerns, as determined 
                by the Secretary.''.

    (b) Conservation Stewardship Program.--
            (1) Establishment.--Subsection (a) of section 1240J of the 
        Food Security Act of 1985 (as redesignated by section 2301(b)) 
        is amended in the matter preceding paragraph (1) by striking 
        ``2014 through 2018'' and inserting ``2019 through 2023''.
            (2) Exclusions.--Subsection (b)(2) of section 1240J of the 
        Food Security Act of 1985 (as redesignated by section 2301(b)) 
        is amended in the matter preceding paragraph (1) by striking 
        ``the Agricultural Act of 2014'' and inserting the ``Agriculture 
        Improvement Act of 2018''.

    (c) Stewardship Contracts.--Section 1240K of the Food Security Act 
of 1985 (as redesignated by section 2301(b)) is amended--
            (1) in subsection (b), by striking paragraph (1) and 
        inserting the following:
            ``(1) Ranking of applications.--
                    ``(A) In general.--In evaluating contract offers 
                submitted under subsection (a) and contract renewals 
                under subsection (e), the Secretary shall rank 
                applications based on--
                          ``(i) the natural resource conservation and 
                      environmental benefits that result from the 
                      conservation treatment on all applicable priority 
                      resource concerns at the time of submission of the 
                      application;
                          ``(ii) the degree to which the proposed 
                      conservation activities increase natural resource 
                      conservation and environmental benefits; and
                          ``(iii) other consistent criteria, as 
                      determined by the Secretary.
                    ``(B) Additional criterion.--If 2 or more 
                applications receive the same ranking under subparagraph 
                (A), the Secretary shall rank those contracts based on 
                the extent to which the actual and anticipated 
                conservation benefits from each contract are provided at 
                the lowest cost relative to other similarly beneficial 
                contract offers.'';
            (2) in subsection (c)--
                    (A) by striking ``the program under subsection (a)'' 
                and inserting ``a contract or contract renewal under 
                this section'';

[[Page 132 STAT. 4566]]

                    (B) by inserting ``or contract renewal'' before 
                ``offer ranks'';
                    (C) by inserting ``or contract renewal'' after 
                ``stewardship contract''; and
                    (D) by adding ``or contract renewal'' before the 
                period at the end;
            (3) in subsection (d)(2)(A), by striking ``1238G(d)'' and 
        inserting ``1240L(c)''; and
            (4) in subsection (e)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``At the end'' and all that follows through 
                ``period'' the second place it appears and inserting the 
                following: ``The Secretary may provide the producer an 
                opportunity to renew an existing contract in the first 
                half of the fifth year of the contract period'';
                    (B) in paragraph (1), by striking ``initial'' and 
                inserting ``existing'';
                    (C) in paragraph (2)--
                          (i) by inserting ``new or improved'' after 
                      ``integrate''; and
                          (ii) by inserting ``demonstrating continued 
                      improvement during the additional 5-year period,'' 
                      after ``operation,''; and
                    (D) in paragraph (3)(B), by striking ``to exceed the 
                stewardship threshold of'' and inserting ``to adopt or 
                improve conservation activities, as determined by the 
                Secretary, to achieve higher levels of performance with 
                respect to not less than''.

    (d) Duties of Secretary.--Section 1240L of the Food Security Act of 
1985 (as redesignated by section 2301(b)) is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``acres'' and inserting ``funding'';
            (2) by striking subsection (c);
            (3) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively;
            (4) in subsection (c) (as so redesignated), by adding at the 
        end the following:
            ``(5) Payment for cover crop activities.--The amount of a 
        payment under this subsection for cover crop activities shall be 
        not less than 125 percent of the annual payment amount 
        determined by the Secretary under paragraph (2).'';
            (5) in subsection (d) (as so redesignated)--
                    (A) in the subsection heading, by inserting ``and 
                Advanced Grazing Management'' after ``Rotations'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraphs (1) and (4) as 
                paragraphs (2) and (1), respectively, and moving the 
                paragraphs so as to appear in numerical order;
                    (D) in paragraph (1) (as so redesignated)--
                          (i) by redesignating subparagraphs (A) through 
                      (D) and (E) as clauses (i) through (iv) and (vi), 
                      respectively, and indenting appropriately;
                          (ii) by striking the paragraph designation and 
                      all that follows through ``the term'' in the 
                      matter preceding clause (i) (as so redesignated) 
                      and inserting the following:
            ``(1) Definitions.--In this subsection:

[[Page 132 STAT. 4567]]

                    ``(A) Advanced grazing management.--The term 
                `advanced grazing management' means the use of a 
                combination of grazing practices (as determined by the 
                Secretary), which may include management-intensive 
                rotational grazing, that provide for--
                          ``(i) improved soil health and carbon 
                      sequestration;
                          ``(ii) drought resilience;
                          ``(iii) wildlife habitat;
                          ``(iv) wildfire mitigation;
                          ``(v) control of invasive plants; and
                          ``(vi) water quality improvement.
                    ``(B) Management-intensive rotational grazing.--The 
                term `management-intensive rotational grazing' means a 
                strategic, adaptively managed multipasture grazing 
                system in which animals are regularly and systematically 
                moved to fresh pasture in a manner that--
                          ``(i) maximizes the quantity and quality of 
                      forage growth;
                          ``(ii) improves manure distribution and 
                      nutrient cycling;
                          ``(iii) increases carbon sequestration from 
                      greater forage harvest;
                          ``(iv) improves the quality and quantity of 
                      cover for wildlife;
                          ``(v) provides permanent cover to protect the 
                      soil from erosion; and
                          ``(vi) improves water quality.
                    ``(C) Resource-conserving crop rotation.--The 
                term''; and
                          (iii) in subparagraph (C) (as so designated)--
                                    (I) in clause (iv) (as so 
                                redesignated), by striking ``and'' at 
                                the end; and
                                    (II) by inserting after clause (iv) 
                                (as so redesignated) the following:
                          ``(v) builds soil organic matter; and'';
                    (E) in paragraph (2) (as so redesignated), by 
                striking ``improve resource-conserving'' and all that 
                follows through the period at the end and inserting the 
                following: ``improve, manage, and maintain--
                    ``(A) resource-conserving crop rotations; or
                    ``(B) advanced grazing management.'';
                    (F) in paragraph (3)--
                          (i) by striking ``paragraph (1)'' and 
                      inserting ``paragraph (2)''; and
                          (ii) by striking ``and maintain'' and all that 
                      follows through the period at the end and 
                      inserting ``or improve, manage, and maintain 
                      resource-conserving crop rotations or advanced 
                      grazing management for the term of the 
                      contract.''; and
                    (G) by adding at the end the following:
            ``(4) Amount of payment.--An additional payment provided 
        under paragraph (2) shall be not less than 150 percent of the 
        annual payment amount determined by the Secretary under 
        subsection (c)(2).'';
            (6) by inserting after subsection (d) (as so redesignated) 
        the following:

    ``(e) Payment for Comprehensive Conservation Plan.--

[[Page 132 STAT. 4568]]

            ``(1) Definition of comprehensive conservation plan.--In 
        this subsection, the term `comprehensive conservation plan' 
        means a conservation plan that meets or exceeds the stewardship 
        threshold for each priority resource concern identified by the 
        Secretary under subsection (a)(2).
            ``(2) Payment for comprehensive conservation plan.--The 
        Secretary shall provide a 1-time payment to a producer that 
        develops a comprehensive conservation plan.
            ``(3) Amount of payment.--The Secretary shall determine the 
        amount of payment under paragraph (2) based on--
                    ``(A) the number of priority resource concerns 
                addressed in the comprehensive conservation plan; and
                    ``(B) the number of types of land uses included in 
                the comprehensive conservation plan.'';
            (7) in subsection (f), by striking ``2014 through 2018'' and 
        inserting ``2019 through 2023'';
            (8) in subsection (h)--
                    (A) by striking the subsection designation and 
                heading and all that follows through ``The Secretary'' 
                and inserting the following:

    ``(h) Organic Certification.--
            ``(1) Coordination.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Allocation.--
                    ``(A) In general.--Using funds made available for 
                the program for each of fiscal years 2019 through 2023, 
                the Secretary shall allocate funding to States to 
                support organic production and transition to organic 
                production through paragraph (1).
                    ``(B) Determination.--The Secretary shall determine 
                the allocation to a State under subparagraph (A) based 
                on--
                          ``(i) the number of certified and 
                      transitioning organic operations within the State; 
                      and
                          ``(ii) the number of acres of certified and 
                      transitioning organic production within the 
                      State.''; and
            (9) by adding at the end the following:

    ``(j) Streamlining and Coordination.--To the maximum extent 
feasible, the Secretary shall provide for streamlined and coordinated 
procedures for the program and the environmental quality incentives 
program under subchapter A, including applications, contracting, 
conservation planning, conservation practices, and related 
administrative procedures.
    ``(k) Soil Health.--To the maximum extent feasible, the Secretary 
shall manage the program to enhance soil health.
    ``(l) Annual Report.--Each fiscal year, the Secretary shall submit 
to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a report 
describing the payment rates for conservation activities offered to 
producers under the program and an analysis of whether payment rates can 
be reduced for the most expensive conservation activities.''.
SEC. 2309. GRASSLAND CONSERVATION INITIATIVE.

    Subchapter B of chapter 4 of subtitle D of title XII of the Food 
Security Act of 1985 (as added by subsections (a)(2) and (b) of section 
2301) is amended by adding at the end the following:

[[Page 132 STAT. 4569]]

``SEC. 1240L-1. <<NOTE: 16 USC 3839aa-25.>>  GRASSLAND 
                              CONSERVATION INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible land.--Notwithstanding sections 1240I(4) and 
        1240J(b)(2), the term `eligible land' means cropland on a farm 
        for which base acres have been maintained by the Secretary under 
        section 1112(d)(3) of the Agricultural Act of 2014 (7 U.S.C. 
        9012(d)(3)).
            ``(2) Initiative.--The term `initiative' means the grassland 
        conservation initiative established under subsection (b).

    ``(b) Establishment and Purpose.--The Secretary shall establish 
within the program a grassland conservation initiative for the purpose 
of assisting producers in protecting grazing uses, conserving and 
improving soil, water, and wildlife resources, and achieving related 
conservation values by conserving eligible land through grassland 
conservation contracts under subsection (e).
    ``(c) Election.--Beginning in fiscal year 2019, the Secretary shall 
provide a 1-time election to enroll eligible land in the initiative 
under a contract described in subsection (e).
    ``(d) Method of Enrollment.--The Secretary shall--
            ``(1) notwithstanding subsection (b) of section 1240K, 
        determine under subsection (c) of that section that eligible 
        land ranks sufficiently high under the evaluation criteria 
        described in subsection (b) of that section; and
            ``(2) enroll the eligible land in the initiative under a 
        contract described in subsection (e).

    ``(e) Grassland Conservation Contract.--
            ``(1) In general.--Notwithstanding section 1240K(a)(1), to 
        enroll eligible land in the initiative under a grassland 
        conservation contract, a producer shall agree--
                    ``(A) to meet or exceed the stewardship threshold 
                for not less than 1 priority resource concern by the 
                date on which the contract expires; and
                    ``(B) to comply with the terms and conditions of the 
                contract.
            ``(2) Terms.--A grassland conservation contract entered into 
        under this section shall--
                    ``(A)(i) be for a single 5-year term; and
                    ``(ii) not be subject to renewal or reenrollment 
                under section 1240K(e); and
                    ``(B) be subject to section 1240K(d).
            ``(3) Early termination.--The Secretary shall allow a 
        producer that enters into a grassland conservation contract 
        under this section--
                    ``(A) to terminate the contract at any time; and
                    ``(B) to retain payments already received under the 
                contract.

    ``(f) Grassland Conservation Plan.--The grassland conservation plan 
developed for eligible land shall be limited to--
            ``(1) eligible land; and
            ``(2) resource concerns and activities relating to 
        grassland.

    ``(g) Payments.--
            ``(1) In general.--Beginning in fiscal year 2019, of the 
        funds made available for this subchapter under section 
        1241(a)(3)(B), and notwithstanding any payment under title I of 
        the Agriculture Improvement Act of 2018, an amendment made by 
        that title, or section 1240L(c), the Secretary shall make annual 
        grassland conservation contract payments to the

[[Page 132 STAT. 4570]]

        producer of any eligible land that is the subject of a grassland 
        conservation contract under this section.
            ``(2) Payment noneligibility.--A grassland conservation 
        contract under this section shall not be--
                    ``(A) eligible for payments under section 1240L(d); 
                or
                    ``(B) subject to the payment limitations under this 
                subchapter.
            ``(3) Limitation.--The amount of an annual payment under 
        this subsection shall be $18 per acre, not to exceed the number 
        of base acres on a farm.

    ``(h) Considered Planted.--The Secretary shall consider land 
enrolled under a grassland conservation contract under this section 
during a crop year to be planted or considered planted to a covered 
commodity (as defined in section 1111 of the Agricultural Act of 2014 (7 
U.S.C. 9011)) during that crop year.
    ``(i) Other Contracts.--A producer with an agricultural operation 
that contains land eligible under this section and land eligible under 
section 1240K--
            ``(1) may enroll the land eligible under this section 
        through a contract under this section or under section 1240K; 
        and
            ``(2) shall not be prohibited from enrolling the land 
        eligible under section 1240K through a contract under section 
        1240K.''.

                 Subtitle D--Other Conservation Programs

SEC. 2401. WATERSHED PROTECTION AND FLOOD PREVENTION.

    (a) Assistance to Local Organizations.--Section 3 of the Watershed 
Protection and Flood Prevention Act (16 U.S.C. 1003) is amended--
            (1) by striking the section designation and all that follows 
        through ``In order to assist'' and inserting the following:
``SEC. 3. ASSISTANCE TO LOCAL ORGANIZATIONS.

    ``(a) In General.--In order to assist''; and
            (2) by adding at the end the following:

    ``(b) Waiver.--The Secretary may waive the watershed plan for works 
of improvement if the Secretary determines that--
            ``(1) the watershed plan is unnecessary or duplicative; and
            ``(2) the works of improvement are otherwise consistent with 
        applicable requirements under section 4.''.

    (b) Authorization of Appropriations.--Section 14(h)(2)(E) of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) 
is amended by striking ``2018'' and inserting ``2023''.
    (c) Funds of Commodity Credit Corporation.--The Watershed Protection 
and Flood Prevention Act (16 U.S.C. 1001 et seq.) is amended by adding 
at the end the following:
``SEC. 15. <<NOTE: 16 USC 1012a.>>  FUNDING.

    ``In addition to any other funds made available by this Act, of the 
funds of the Commodity Credit Corporation, the Secretary shall make 
available to carry out this Act $50,000,000 for fiscal year 2019 and 
each fiscal year thereafter.''.
SEC. 2402. SOIL AND WATER RESOURCES CONSERVATION.

    The Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 
2001 et seq.) is amended--

[[Page 132 STAT. 4571]]

            (1) in section 5(e) (16 U.S.C. 2004(e)), by striking ``and 
        December 31, 2015'' and inserting ``December 31, 2015, and 
        December 31, 2022'';
            (2) in section 6(d) (16 U.S.C. 2005(d)), by striking ``, 
        respectively'' and inserting ``, and a program update shall be 
        completed by December 31, 2023'';
            (3) in section 7 (16 U.S.C. 2006)--
                    (A) in subsection (a), by striking ``and 2016'' and 
                inserting ``, 2016, and 2022''; and
                    (B) in subsection (b), in the matter preceding 
                paragraph (1), by striking ``and 2017'' and inserting 
                ``, 2017, and 2023''; and
            (4) in section 10 (16 U.S.C. 2009), by striking ``2018'' and 
        inserting ``2023''.
SEC. 2403. EMERGENCY CONSERVATION PROGRAM.

    (a) Repair or Replacement of Fencing.--
            (1) In general.--Section 401 of the Agricultural Credit Act 
        of 1978 (16 U.S.C. 2201) is amended--
                    (A) by inserting ``wildfires,'' after 
                ``hurricanes,'';
                    (B) by striking the section designation and all that 
                follows through ``The Secretary of Agriculture'' and 
                inserting the following:
``SEC. 401. EMERGENCY CONSERVATION PROGRAM.

    ``(a) In General.--The Secretary of Agriculture (referred to in this 
title as the `Secretary')''; and
                    (C) by adding at the end the following:

    ``(b) Repair or Replacement of Fencing.--
            ``(1) In general.--With respect to a payment to an 
        agricultural producer under subsection (a) for the repair or 
        replacement of fencing, the Secretary shall give the 
        agricultural producer the option of receiving not more than 25 
        percent of the payment, determined by the Secretary based on the 
        applicable percentage of the fair market value of the cost of 
        the repair or replacement, before the agricultural producer 
        carries out the repair or replacement.
            ``(2) Return of funds.--If the funds provided under 
        paragraph (1) are not expended by the end of the 60-day period 
        beginning on the date on which the agricultural producer 
        receives those funds, the funds shall be returned within a 
        reasonable timeframe, as determined by the Secretary.''.
            (2) Conforming amendments.--
                    (A) Sections 402, 403, 404, and 405 of the 
                Agricultural Credit Act of 1978 (16 U.S.C. 2202, 2203, 
                2204, 2205) are amended by striking ``Secretary of 
                Agriculture'' each place it appears and inserting 
                ``Secretary''.
                    (B) Section 407(a) of the Agricultural Credit Act of 
                1978 (16 U.S.C. 2206(a)) is amended by striking 
                paragraph (4).

    (b) Cost Share Payments.--Title IV of the Agricultural Credit Act of 
1978 is amended by inserting after section 402 (16 U.S.C. 2202) the 
following:
``SEC. 402A. <<NOTE: 16 USC 2202a.>>  COST-SHARE REQUIREMENT.

    ``(a) Cost-share Rate.--Subject to subsections (b) and (c), the 
maximum cost-share payment under sections 401 and 402 shall

[[Page 132 STAT. 4572]]

not exceed 75 percent of the total allowable cost, as determined by the 
Secretary.
    ``(b) Exception.--Notwithstanding subsection (a), a payment to a 
limited resource farmer or rancher, a socially disadvantaged farmer or 
rancher (as defined in subsection (a) of section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279), or a 
beginning farmer or rancher under section 401 or 402 shall not exceed 90 
percent of the total allowable cost, as determined by the Secretary.
    ``(c) Limitation.--The total payment under sections 401 and 402 for 
a single event may not exceed 50 percent of the agriculture value of the 
land, as determined by the Secretary.''.
    (c) Payment Limitations.--Title IV of the Agricultural Credit Act of 
1978 (16 U.S.C. 2201 et seq.) is amended by inserting after section 402A 
(as added by subsection (b)) the following:
``SEC. 402B. <<NOTE: 16 USC 2202b.>>  PAYMENT LIMITATION.

    ``The maximum payment made under the emergency conservation program 
to an agricultural producer under sections 401 and 402 shall not exceed 
$500,000.''.
    (d) Watershed Protection Program.--Section 403 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2203) is amended--
            (1) by striking the section heading and inserting 
        ``emergency watershed program''; and
            (2) in subsection (a), by inserting ``watershed protection'' 
        after ``emergency''.

    (e) Funding and Administration.--Section 404 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2204) is amended--
            (1) in the fourth sentence, by striking ``The Corporation'' 
        and inserting the following:

    ``(d) Limitation.--The Commodity Credit Corporation'';
            (2) in the third sentence (as amended by subsection 
        (a)(2)(A)), by striking ``In implementing the provisions of'' 
        and inserting the following:

    ``(c) Use of Commodity Credit Corporation.--In implementing'';
            (3) by striking the second sentence;
            (4) by striking the section designation and all that follows 
        through ``There are authorized'' in the first sentence and 
        inserting the following:
``SEC. 404. FUNDING AND ADMINISTRATION.

    ``(a) Authorization of Appropriations.--There are authorized'';
            (5) in subsection (a) (as so designated), by inserting ``, 
        to remain available until expended'' before the period at the 
        end; and
            (6) by inserting after subsection (a) (as so designated) the 
        following:

    ``(b) Set-aside for Fencing.--Of the amounts made available under 
subsection (a) for a fiscal year, 25 percent shall be set aside until 
April 1 of that fiscal year for the repair or replacement of fencing.''.
SEC. 2404. CONSERVATION OF PRIVATE GRAZING LAND.

    Section 1240M of the Food Security Act of 1985 (16 U.S.C. 3839bb) is 
amended--
            (1) in subsection (c)(2), by adding at the end the 
        following:

[[Page 132 STAT. 4573]]

                    ``(C) Partnerships.--In carrying out the program 
                under this section, the Secretary shall provide 
                education and outreach activities through partnerships 
                with--
                          ``(i) land-grant colleges and universities (as 
                      defined in section 1404 of the National 
                      Agricultural Research, Extension, and Teaching 
                      Policy Act of 1977 (7 U.S.C. 3103)); and
                          ``(ii) nongovernmental organizations.''; and
            (2) in subsection (e), by striking ``2018'' and inserting 
        ``2023''.
SEC. 2405. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    (a) Authorization of Appropriations.--Section 1240O(b)(1) of the 
Food Security Act of 1985 (16 U.S.C. 3839bb-2(b)(1)) is amended by 
striking ``2018'' and inserting ``2023''.
    (b) Availability of Funds.--Section 1240O(b) of the Food Security 
Act of 1985 (16 U.S.C. 3839bb-2(b)) is amended by adding at the end the 
following:
            ``(3) Additional funding.--In addition to any other funds 
        made available under this subsection, of the funds of the 
        Commodity Credit Corporation, the Secretary shall use $5,000,000 
        beginning in fiscal year 2019, to remain available until 
        expended.''.
SEC. 2406. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    Section 1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb-5) 
is amended--
            (1) in subsections (a) and (c), by striking ``grants'' each 
        place it appears and inserting ``funding'';
            (2) in subsections (b) and (d)(2), by striking ``a grant'' 
        each place it appears and inserting ``funding'';
            (3) in subsection (c)(3) (as amended by section 2202(b)(1)), 
        by inserting ``or on land covered by a wetland reserve easement 
        under section 1265C'' before ``by providing''; and
            (4) in subsection (f)--
                    (A) in paragraph (1)--
                          (i) by striking ``2012 and'' and inserting 
                      ``2012,''; and
                          (ii) by inserting ``, and $50,000,000 for the 
                      period of fiscal years 2019 through 2023'' before 
                      the period at the end;
                    (B) by redesignating paragraph (2) as paragraph (3); 
                and
                    (C) by inserting after paragraph (1) the following:
            ``(2) Enhanced public access to wetland reserve easements.--
        To the maximum extent practicable, of the funds made available 
        under paragraph (1), the Secretary shall use $3,000,000 for the 
        period of fiscal years 2019 through 2023 to encourage public 
        access to land covered by wetland reserve easements under 
        section 1265C through agreements with States and tribal 
        governments under this section.''.
SEC. 2407. <<NOTE: 16 USC 1531 note.>>  WILDLIFE MANAGEMENT.

    (a) In General.--The Secretary and the Secretary of the Interior 
shall continue to carry out the Working Lands for Wildlife model of 
conservation on working landscapes, as implemented on

[[Page 132 STAT. 4574]]

the day before the date of enactment of this Act, in accordance with--
            (1) the document entitled ``Partnership Agreement Between 
        the United States Department of Agriculture Natural Resources 
        Conservation Service and the United States Department of the 
        Interior Fish and Wildlife Service'', numbered A-3A7516-937, and 
        formalized by the Chief of the Natural Resources Conservation 
        Service on September 15, 2016, and by the Director of the United 
        States Fish and Wildlife Service on August 4, 2016, as in effect 
        on September 15, 2016; and
            (2) United States Fish and Wildlife Service Director's Order 
        No. 217, dated August 9, 2016, as in effect on August 9, 2016.

    (b) Expansion of Model.--The Secretary and the Secretary of the 
Interior may expand the conservation model described in subsection (a) 
through a new partnership agreement between the Farm Service Agency and 
the United States Fish and Wildlife Service for the purpose of carrying 
out conservation activities for species conservation.
    (c) Extension of Period of Regulatory Predictability.--
            (1) Definition of period of regulatory predictability.--In 
        this subsection, the term ``period of regulatory 
        predictability'' means the period of regulatory predictability 
        under the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.) initially determined in accordance with the document and 
        order described in paragraphs (1) and (2), respectively, of 
        subsection (a).
            (2) Extension.--After the period of regulatory 
        predictability, on request of the Secretary, the Secretary of 
        the Interior, acting through the Director of the United States 
        Fish and Wildlife Service, may provide additional consultation 
        under section 7(a)(2) of the Endangered Species Act of 1973 (16 
        U.S.C. 1536(a)(2)), or additional conference under section 
        7(a)(4) of that Act (16 U.S.C. 1536(a)(4)), as applicable, with 
        the Chief of the Natural Resources Conservation Service or the 
        Administrator of the Farm Service Agency, as applicable, to 
        extend the period of regulatory predictability.
SEC. 2408. <<NOTE: 7 USC 8351 note.>>  FERAL SWINE ERADICATION AND 
                          CONTROL PILOT PROGRAM.

    (a) In General.--The Secretary shall establish a feral swine 
eradication and control pilot program to respond to the threat feral 
swine pose to agriculture, native ecosystems, and human and animal 
health.
    (b) Duties of the Secretary.--In carrying out the pilot program, the 
Secretary shall--
            (1) study and assess the nature and extent of damage to the 
        pilot areas caused by feral swine;
            (2) develop methods to eradicate or control feral swine in 
        the pilot areas;
            (3) develop methods to restore damage caused by feral swine; 
        and
            (4) provide financial assistance to agricultural producers 
        in pilot areas.

    (c) Assistance.--The Secretary may provide financial assistance to 
agricultural producers under the pilot program to implement methods to--
            (1) eradicate or control feral swine in the pilot areas; and

[[Page 132 STAT. 4575]]

            (2) restore damage caused by feral swine.

    (d) Coordination.--The Secretary shall ensure that the Natural 
Resources Conservation Service and the Animal and Plant Health 
Inspection Service coordinate for purposes of this section through State 
technical committees established under section 1261(a) of the Food 
Security Act of 1985 (16 U.S.C. 3861(a)).
    (e) Pilot Areas.--The Secretary shall carry out the pilot program in 
areas of States in which feral swine have been identified as a threat to 
agriculture, native ecosystems, or human or animal health, as determined 
by the Secretary.
    (f) Cost Sharing.--
            (1) Federal share.--The Federal share of the costs of 
        activities under the pilot program may not exceed 75 percent of 
        the total costs of such activities.
            (2) In-kind contributions.--The non-Federal share of the 
        costs of activities under the pilot program may be provided in 
        the form of in-kind contributions of materials or services.

    (g) Funding.--
            (1) Mandatory funding.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $75,000,000 for the period of fiscal years 2019 through 2023.
            (2) Distribution of funds.--Of the funds made available 
        under paragraph (1)--
                    (A) 50 percent shall be allocated to the Natural 
                Resources Conservation Service to carry out the pilot 
                program, including the provision of financial assistance 
                to producers for on-farm trapping and technology related 
                to capturing and confining feral swine; and
                    (B) 50 percent shall be allocated to the Animal and 
                Plant Health Inspection Service to carry out the pilot 
                program, including the use of established, and testing 
                of innovative, population reduction methods.
            (3) Limitation on administrative expenses.--Not more than 10 
        percent of funds made available under this section may be used 
        for administrative expenses of the pilot program.
SEC. 2409. REPORT ON SMALL WETLANDS.

    (a) In General.--The Secretary, acting through the Chief of the 
Natural Resources Conservation Service, 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 number of wetlands with an area not more than 1 acre that have been 
delineated in each of the States of North Dakota, South Dakota, 
Minnesota, and Iowa during fiscal years 2014 through 2018.
    (b) Requirement.--In the report under subsection (a), the Secretary, 
acting through the Chief of the Natural Resources Conservation Service, 
shall list the number of wetlands acres in each State described in the 
report by tenths of an acre, and ensure the report is based on the best 
available science.
SEC. 2410. SENSE OF CONGRESS RELATING TO INCREASED WATERSHED-BASED 
                          COLLABORATION.

    It is the sense of Congress that the Federal Government should 
recognize and encourage partnerships at the watershed level between 
nonpoint sources and regulated point sources to advance the goals of the 
Federal Water Pollution Control Act (33 U.S.C.

[[Page 132 STAT. 4576]]

1251 et seq.) and provide benefits to farmers, landowners, and the 
public.

                 Subtitle E--Funding and Administration

SEC. 2501. COMMODITY CREDIT CORPORATION.

    (a) Annual Funding.--Section 1241(a) of the Food Security Act of 
1985 (16 U.S.C. 3841(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``2018 (and fiscal year 2019 in the case of the program 
        specified in paragraph (5))'' and inserting ``2023'';
            (2) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``$10,000,000 
                for the period of fiscal years 2014 through 2018'' and 
                inserting ``$12,000,000 for the period of fiscal years 
                2019 through 2023''; and
                    (B) in subparagraph (B)--
                          (i) by striking ``$33,000,000 for the period 
                      of fiscal years 2014 through 2018'' and inserting 
                      ``$50,000,000 for the period of fiscal years 2019 
                      through 2023, including not more than $5,000,000 
                      to provide outreach and technical assistance,''; 
                      and
                          (ii) by striking ``retired or retiring owners 
                      and operators'' and inserting ``contract 
                      holders'';
            (3) in paragraph (2)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) $450,000,000 for each of fiscal years 2019 
                through 2023.'';
            (4) by striking paragraph (3) and inserting the following:
            ``(3) The programs under chapter 4, using, to the maximum 
        extent practicable--
                    ``(A) for the environmental quality incentives 
                program under subchapter A of that chapter--
                          ``(i) $1,750,000,000 for fiscal year 2019;
                          ``(ii) $1,750,000,000 for fiscal year 2020;
                          ``(iii) $1,800,000,000 for fiscal year 2021;
                          ``(iv) $1,850,000,000 for fiscal year 2022; 
                      and
                          ``(v) $2,025,000,000 for fiscal year 2023; and
                    ``(B) for the conservation stewardship program under 
                subchapter B of that chapter--
                          ``(i) $700,000,000 for fiscal year 2019;
                          ``(ii) $725,000,000 for fiscal year 2020;
                          ``(iii) $750,000,000 for fiscal year 2021;
                          ``(iv) $800,000,000 for fiscal year 2022; and
                          ``(v) $1,000,000,000 for fiscal year 2023.'';
            (5) in paragraph (4), by inserting ``(as in effect on the 
        day before the date of enactment of the Agriculture Improvement 
        Act of 2018), using such sums as are necessary to administer 
        contracts entered into before that date of enactment'' before 
        the period at the end; and
            (6) by striking paragraph (5).

    (b) Availability of Funds.--Section 1241(b) of the Food Security Act 
of 1985 (16 U.S.C. 3841(b)) is amended by striking ``2018

[[Page 132 STAT. 4577]]

(and fiscal year 2019 in the case of the program specified in subsection 
(a)(5))'' and inserting ``2023''.
    (c) Report on Program Enrollments and Assistance.--Section 1241(i) 
of the Food Security Act of 1985 (16 U.S.C. 3841(i)) is amended to read 
as follows:
    ``(i) Report on Program Enrollments and Assistance.--Not later than 
December 15 of each of calendar years 2019 through 2023, the Secretary 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate an annual report containing statistics by State 
related to enrollments in conservation programs under this title, as 
follows:
            ``(1) The annual and current cumulative activity reflecting 
        active agreement and contract enrollment statistics.
            ``(2) Secretarial exceptions, waivers, and significant 
        payments, including--
                    ``(A) payments made under the agricultural 
                conservation easement program for easements valued at 
                $250,000 or greater;
                    ``(B) payments made under the regional conservation 
                partnership program subject to the waiver of adjusted 
                gross income limitations pursuant to section 
                1271C(c)(3);
                    ``(C) waivers granted by the Secretary under section 
                1001D(b)(3);
                    ``(D) exceptions and activity associated with 
                section 1240B(h)(2); and
                    ``(E) exceptions provided by the Secretary under 
                section 1265B(b)(2)(B)(ii).''.

    (d) Allocations Review and Update.--Section 1241(g) of the Food 
Security Act of 1985 (16 U.S.C. 3841(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``January'' and all that follows 
                through ``shall'' and inserting ``1 year after the date 
                of enactment of the Agriculture Improvement Act of 2018, 
                the Secretary, acting through the Chief of the Natural 
                Resources Conservation Service and the Administrator of 
                the Farm Service Agency, shall'';
                    (B) by inserting ``annual'' after ``utilize''; and
                    (C) by inserting ``relevant data on local natural 
                resource concerns, resource inventories, evaluations and 
                reports, recommendations from State technical committees 
                established under section 1261(a),'' after ``accounting 
                for''; and
            (2) in paragraph (2)--
                    (A) by striking ``that the formulas'' and inserting 
                the following: ``that--
                    ``(A) the formulas'';
                    (B) in subparagraph (A) (as so designated), by 
                striking the period at the end and inserting a 
                semicolon; and
                    (C) by adding at the end the following:
                    ``(B) to the maximum extent practicable, local 
                natural resource concerns are considered a leading 
                factor in determining annual funding allocation to 
                States;
                    ``(C) the process used at the national level to 
                evaluate State budget proposals and to allocate funds is 
                reviewed annually to assess the effect of allocations in 
                addressing identified natural resource priorities and 
                objectives; and

[[Page 132 STAT. 4578]]

                    ``(D) the allocation of funds to States addresses 
                priority natural resource concerns and objectives.''.

    (e) Assistance to Certain Farmers or Ranchers for Conservation 
Access.--Section 1241(h) of the Food Security Act of 1985 (16 U.S.C. 
3841(h)) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and indenting 
                appropriately;
                    (B) in the matter preceding clause (i) (as so 
                redesignated), by striking ``Of the funds'' and 
                inserting the following:
                    ``(A) Fiscal years 2009 through 2018.--Of the 
                funds''; and
                    (C) by adding at the end the following:
                    ``(B) Fiscal years 2019 through 2023.--Of the funds 
                made available for each of fiscal years 2019 through 
                2023 to carry out the environmental quality incentives 
                program under subchapter A of chapter 4 of subtitle D 
                and the conservation stewardship program under 
                subchapter B of chapter 4 of subtitle D, the Secretary 
                shall use, to the maximum extent practicable--
                          ``(i) 5 percent to assist beginning farmers or 
                      ranchers; and
                          ``(ii) 5 percent to assist socially 
                      disadvantaged farmers or ranchers.'';
            (2) in paragraph (2), by inserting ``and, in the case of 
        fiscal years 2019 through 2023, under the conservation 
        stewardship program under subchapter B of chapter 4 of subtitle 
        D'' before the period at the end;
            (3) in paragraph (3), by striking ``year, acres not 
        obligated under paragraph (1)'' and inserting ``year through 
        fiscal year 2018, acres not obligated under paragraph (1)(A)''; 
        and
            (4) in paragraph (4), by striking ``subparagraph (A) or (B) 
        of paragraph (1)'' and inserting ``, as applicable, clause (i) 
        or (ii) of paragraph (1)(A) or clause (i) or (ii) of paragraph 
        (1)(B)''.

    (f) Conservation Standards and Requirements.--Section 1241 of the 
Food Security Act of 1985 (16 U.S.C. 3841) is amended by adding at the 
end the following:
    ``(j) Conservation Standards and Requirements.--
            ``(1) In general.--Subject to the requirements of this 
        title, the Natural Resources Conservation Service shall serve as 
        the lead agency in developing and establishing technical 
        standards and requirements for conservation programs carried out 
        under this title, including--
                    ``(A) standards for conservation practices under 
                this title;
                    ``(B) technical guidelines for implementing 
                conservation practices under this title, including the 
                location of the conservation practices; and
                    ``(C) standards for conservation plans.
            ``(2) Consistency of farm service agency technical standards 
        and payment rates.--The Administrator of the Farm Service Agency 
        shall ensure that--
                    ``(A) technical standards of programs administered 
                by the Farm Service Agency are consistent with the 
                technical

[[Page 132 STAT. 4579]]

                standards established by the Natural Resources 
                Conservation Service under paragraph (1); and
                    ``(B) payment rates, to the extent practicable, are 
                consistent between the Farm Service Agency and the 
                Natural Resources Conservation Service.''.
SEC. 2502. DELIVERY OF TECHNICAL ASSISTANCE.

    (a) Definitions.--Section 1242(a) of the Food Security Act of 1985 
(16 U.S.C. 3842(a)) is amended to read as follows:
    ``(a) Definitions.--In this section:
            ``(1) Eligible participant.--The term `eligible participant' 
        means a producer, landowner, or entity that is participating in, 
        or seeking to participate in, programs in which the producer, 
        landowner, or entity is otherwise eligible to participate under 
        this title or the agricultural management assistance program 
        under section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 
        1524(b)).
            ``(2) Third-party provider.--The term `third-party provider' 
        means a commercial entity (including a farmer cooperative, 
        agriculture retailer, or other commercial entity (as defined by 
        the Secretary)), a nonprofit entity, a State or local government 
        (including a conservation district), or a Federal agency, that 
        has expertise in the technical aspect of conservation planning, 
        including nutrient management planning, watershed planning, or 
        environmental engineering.''.

    (b) Certification Process.--Section 1242(e) of the Food Security Act 
of 1985 (16 U.S.C. 3842(e)) is amended by adding at the end the 
following:
            ``(4) Certification process.--The Secretary shall certify a 
        third-party provider through--
                    ``(A) a certification process administered by the 
                Secretary, acting through the Chief of the Natural 
                Resources Conservation Service; or
                    ``(B) a non-Federal entity approved by the Secretary 
                to perform the certification.
            ``(5) Streamlined certification.--The Secretary shall 
        provide a streamlined certification process for a third-party 
        provider that has an appropriate specialty certification, 
        including a sustainability certification.''.

    (c) Expedited Revision of Standards.--Section 1242(h) of the Food 
Security Act of 1985 (16 U.S.C. 3842(h)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) not later than 1 year after the date of 
                enactment of the Agriculture Improvement Act of 2018, 
                complete a review of each conservation practice 
                standard, including engineering design specifications, 
                in effect on the day before the date of enactment of 
                that Act;'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
                    (C) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(D) evaluate opportunities to increase flexibility 
                in conservation practice standards in a manner that 
                ensures equivalent natural resource benefits.'';

[[Page 132 STAT. 4580]]

            (2) in paragraph (2), by inserting ``State technical 
        committees established under section 1261(a),'' before ``crop 
        consultants''; and
            (3) by striking paragraph (3) and inserting the following:
            ``(3) Expedited revision of standards.--Not later than 1 
        year after the date of enactment of the Agriculture Improvement 
        Act of 2018, the Secretary shall develop for the programs under 
        this title an administrative process for--
                    ``(A) expediting the establishment and revision of 
                conservation practice standards;
                    ``(B) considering conservation innovations and 
                scientific and technological advancements with respect 
                to any establishment or revision under subparagraph (A);
                    ``(C) allowing local flexibility in the creation 
                of--
                          ``(i) interim practice standards and 
                      supplements to existing practice standards to 
                      address the considerations described in 
                      subparagraph (B); and
                          ``(ii) partnership-led proposals for new and 
                      innovative techniques to facilitate implementing 
                      agreements and grants under this title; and
                    ``(D) soliciting regular input from State technical 
                committees established under section 1261(a) for 
                recommendations that identify innovations or 
                advancements described in subparagraph (B).
            ``(4) Report.--Not later than 2 years after the date of 
        enactment of the Agriculture Improvement Act of 2018, and every 
        2 years thereafter, the Secretary shall submit to Congress a 
        report on--
                    ``(A) the administrative process developed under 
                paragraph (3);
                    ``(B) conservation practice standards that were 
                established or revised under that process; and
                    ``(C) conservation innovations that were considered 
                under that process.''.
SEC. 2503. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    (a) Acreage Limitations.--Section 1244(f) of the Food Security Act 
of 1985 (16 U.S.C. 3844(f)) is amended--
            (1) in paragraph (1)(B), by striking ``10'' and inserting 
        ``15''; and
            (2) in paragraph (5), by striking ``the Agricultural Act of 
        2014'' and inserting ``the Agriculture Improvement Act of 
        2018''.

    (b) Requirements for Conservation Programs.--Section 1244 of the 
Food Security Act of 1985 (16 U.S.C. 3844) is amended--
            (1) by striking subsection (m);
            (2) by redesignating subsections (j) through (l) as 
        subsections (k) through (m), respectively; and
            (3) by inserting after subsection (i) the following:

    ``(j) Review and Guidance for Practice Costs and Payment Rates.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Agriculture Improvement Act of 2018, and not 
        later than October 1 of each year thereafter, the Secretary 
        shall--

[[Page 132 STAT. 4581]]

                    ``(A) review the estimates for practice costs and 
                rates of payments made to producers for practices on 
                eligible land under this title; and
                    ``(B) evaluate whether those costs and rates reflect 
                a payment that--
                          ``(i) encourages participation in a 
                      conservation program administered by the 
                      Secretary;
                          ``(ii) encourages implementation of the most 
                      effective practices to address local natural 
                      resource concerns on eligible land; and
                          ``(iii) accounts for regional, State, and 
                      local variability relating to the complexity, 
                      implementation, and adoption of practices on 
                      eligible land.
            ``(2) Guidance; review.--The Secretary shall--
                    ``(A) issue guidance to States to annually review 
                and adjust the estimates for practice costs and rates of 
                payments made to producers to reflect the evaluation 
                factors described in paragraph (1)(B); and
                    ``(B) determine the appropriate practice costs and 
                rates of payments for each State by--
                          ``(i) annually reviewing each conservation 
                      program payment schedule and payment rate used in 
                      the State; and
                          ``(ii) consulting with the State technical 
                      committee established under section 1261(a) in 
                      that State.''.

    (c) Funding for Indian Tribes.--Section 1244(m) of the Food Security 
Act of 1985 (as redesignated by subsection (b)(2)) is amended--
            (1) by striking ``may'' and inserting ``shall'';
            (2) by striking ``that the goals'' and inserting the 
        following: ``that--
            ``(1) the goals'';
            (3) in paragraph (1) (as so designated), by striking 
        ``arrangements, and that statutory'' and inserting the 
        following: ``arrangements;
            ``(2) a sufficient number of eligible participants will be 
        aggregated under the alternative funding arrangement to 
        accomplish the underlying purposes and objectives of the 
        applicable program; and
            ``(3) statutory''; and
            (4) in paragraph (3) (as so designated), by striking the 
        period at the end and inserting ``, except that the Secretary 
        may approve a waiver if the Secretary is authorized to approve a 
        waiver under the statutory authority of the applicable 
        program.''.

    (d) Source Water Protection Through Targeting of Agricultural 
Practices.--Section 1244 of the Food Security Act of 1985 (16 U.S.C. 
3844) (as amended by subsection (b)) is amended by adding at the end the 
following:
    ``(n) Source Water Protection Through Targeting of Agricultural 
Practices.--
            ``(1) In general.--In carrying out any conservation program 
        administered by the Secretary, the Secretary shall encourage 
        practices that relate to water quality and water quantity that 
        protect source water for drinking water (including protecting 
        against public health threats) while also benefitting 
        agricultural producers.

[[Page 132 STAT. 4582]]

            ``(2) Collaboration with water systems and increased 
        incentives.--
                    ``(A) In general.--In encouraging practices under 
                paragraph (1), the Secretary shall--
                          ``(i) work collaboratively with community 
                      water systems and State technical committees 
                      established under section 1261(a) to identify, in 
                      each State, local priority areas for the 
                      protection of source waters for drinking water; 
                      and
                          ``(ii) subject to subparagraph (B), for 
                      practices described in paragraph (1), offer to 
                      producers increased incentives and higher payment 
                      rates than are otherwise statutorily authorized by 
                      the applicable conservation program administered 
                      by the Secretary.
                    ``(B) Limitation.--An increased payment under 
                subparagraph (A)(ii) shall not exceed 90 percent of 
                practice costs associated with planning, design, 
                materials, equipment, installation, labor, management, 
                maintenance, or training.
            ``(3) Reservation of funds.--
                    ``(A) In general.--In each of fiscal years 2019 
                through 2023, the Secretary shall use to carry out this 
                subsection not less than 10 percent of any funds 
                available for conservation programs administered by the 
                Secretary under this title (other than the conservation 
                reserve program established under subchapter B of 
                chapter 1 of subtitle D).
                    ``(B) Limitation.--Funds available for a specific 
                conservation program shall not be transferred to fund a 
                different conservation program under this title.''.

    (e) Environmental Services Market.--Section 1244 of the Food 
Security Act of 1985 (16 U.S.C. 3844) (as amended by subsection (d)) is 
amended by adding at the end the following:
    ``(o) Environmental Services Market.--The Secretary may not 
prohibit, through a contract, easement, or agreement under this title, a 
participant in a conservation program administered by the Secretary 
under this title from participating in, and receiving compensation from, 
an environmental services market if 1 of the purposes of the market is 
the facilitation of additional conservation benefits that are consistent 
with the purposes of the conservation program administered by the 
Secretary.''.
    (f) Regulatory Certainty.--Section 1244 of the Food Security Act of 
1985 (16 U.S.C. 3844) (as amended by subsection (e)) is amended by 
adding at the end the following:
    ``(p) Regulatory Certainty.--
            ``(1) In general.--In addition to technical and programmatic 
        information that the Secretary is otherwise authorized to 
        provide, on request of a Federal agency, a State, an Indian 
        tribe, or a unit of local government, the Secretary may provide 
        technical and programmatic information--
                    ``(A) subject to paragraph (2), to the Federal 
                agency, State, Indian tribe, or unit of local government 
                to support specifically the development of mechanisms 
                that would provide regulatory certainty, regulatory 
                predictability, safe harbor protection, or other similar 
                regulatory assurances to a farmer, rancher, or private 
                nonindustrial forest landowner under a regulatory 
                requirement--
                          ``(i) that relates to soil, water, or 
                      wildlife; and

[[Page 132 STAT. 4583]]

                          ``(ii) over which that Federal agency, State, 
                      Indian tribe, or unit of local government has 
                      authority; and
                    ``(B) relating to conservation practices or 
                activities that could be implemented by a farmer, 
                rancher, or private nonindustrial forest landowner to 
                address a targeted soil, water, or wildlife resource 
                concern that is the direct subject of a regulatory 
                requirement enforced by that Federal agency, State, 
                Indian tribe, or unit of local government, as 
                applicable.
            ``(2) Mechanisms.--The Secretary shall only provide 
        additional technical and programmatic information under 
        paragraph (1) if the mechanisms to be developed by the Federal 
        agency, State, Indian tribe, or unit of local government, as 
        applicable, under paragraph (1)(A) are anticipated to include, 
        at a minimum--
                    ``(A) the implementation of 1 or more conservation 
                practices or activities that effectively addresses the 
                soil, water, or wildlife resource concern identified 
                under paragraph (1);
                    ``(B) the on-site confirmation that the applicable 
                conservation practices or activities identified under 
                subparagraph (A) have been implemented;
                    ``(C) a plan for a periodic audit, as appropriate, 
                of the continued implementation or maintenance of each 
                of the conservation practices or activities identified 
                under subparagraph (A); and
                    ``(D) notification to a farmer, rancher, or private 
                nonindustrial forest landowner of, and an opportunity to 
                correct, any noncompliance with a requirement to obtain 
                regulatory certainty, regulatory predictability, safe 
                harbor protection, or other similar regulatory 
                assurance.
            ``(3) Continuing current collaboration on soil, water, or 
        wildlife conservation practices.--The Secretary shall--
                    ``(A) continue collaboration with Federal agencies, 
                States, Indian tribes, or local units of government on 
                existing regulatory certainty, regulatory 
                predictability, safe harbor protection, or other similar 
                regulatory assurances in accordance with paragraph (2); 
                and
                    ``(B) continue collaboration with the Secretary of 
                the Interior on consultation under section 7(a)(2) of 
                the Endangered Species Act of 1973 (16 U.S.C. 
                1536(a)(2)) or conference under section 7(a)(4) of that 
                Act (16 U.S.C. 1536(a)(4)), as applicable, for wildlife 
                conservation efforts, including the Working Lands for 
                Wildlife model of conservation on working landscapes, as 
                implemented on the day before the date of enactment of 
                the Agriculture Improvement Act of 2018, in accordance 
                with--
                          ``(i) the document entitled `Partnership 
                      Agreement Between the United States Department of 
                      Agriculture Natural Resources Conservation Service 
                      and the United States Department of the Interior 
                      Fish and Wildlife Service', numbered A-3A75-16-
                      937, and formalized by the Chief of the Natural 
                      Resources Conservation Service on September 15, 
                      2016, and by the Director of the United States 
                      Fish and Wildlife Service on August 4, 2016, as in 
                      effect on September 15, 2016; and

[[Page 132 STAT. 4584]]

                          ``(ii) United States Fish and Wildlife Service 
                      Director's Order No. 217, dated August 9, 2016, as 
                      in effect on August 9, 2016.
            ``(4) Savings clause.--Nothing in this subsection--
                    ``(A) preempts, displaces, or supplants any 
                authority or right of a Federal agency, a State, an 
                Indian tribe, or a unit of local government;
                    ``(B) modifies or otherwise affects, preempts, or 
                displaces--
                          ``(i) any cause of action; or
                          ``(ii) a provision of Federal or State law 
                      establishing a remedy for a civil or criminal 
                      cause of action; or
                    ``(C) applies to a case in which the Department of 
                Agriculture is the originating agency requesting a 
                consultation or other technical and programmatic 
                information or assistance from another Federal agency in 
                assisting farmers, ranchers, or nonindustrial private 
                forest landowners participating in a conservation 
                program administered by the Secretary.''.
SEC. 2504. <<NOTE: 16 USC 3801 note.>>  TEMPORARY ADMINISTRATION 
                          OF CONSERVATION PROGRAMS.

    (a) Interim Administration.--Subject to subsection (d), the 
Secretary shall use the applicable regulations in effect on the day 
before the date of enactment of this Act, to the extent that the terms 
and conditions of those regulations are consistent with the amendments 
made by this title, to carry out the programs under laws as amended by 
this title, including--
            (1) the conservation reserve program under subchapter B of 
        chapter 1 of subtitle D of title XII of the Food Security Act of 
        1985 (16 U.S.C. 3831 et seq.) (as amended by subtitle B);
            (2) the environmental quality incentives program under 
        subchapter A of chapter 4 of subtitle D of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3839aa et seq) (as added by 
        section 2301(a)(1) and amended by subtitle C);
            (3) the conservation stewardship program under subchapter B 
        of chapter 4 of subtitle D of title XII of the Food Security Act 
        of 1985 (as added by subsections (a)(2) and (b) of section 2301 
        and amended by subtitle C); and
            (4) the agricultural conservation easement program 
        established under subtitle H of title XII of the Food Security 
        Act of 1985 (16 U.S.C. 3865 et seq.) (as amended by subtitle F).

    (b) Regional Conservation Partnership Program.--Notwithstanding 
subsection (e) of section 1271E of the Food Security Act of 1985 (16 
U.S.C. 3871e) (as amended by section 2706), and subject to subsection 
(d), for fiscal year 2019, the Secretary may use an availability of 
program funding announcement consistent with the amendments made by 
subtitle G to carry out the regional conservation partnership program 
under subtitle I of title XII of the Food Security Act of 1985 (16 
U.S.C. 3871 et seq.) without issuing a regulation.
    (c) Funding.--The Secretary may only use funds authorized to be made 
available by this title or the amendments made by this title for the 
specific programs described in paragraphs (1) through (4) of subsection 
(a) and subsection (b), in accordance

[[Page 132 STAT. 4585]]

with any restrictions on the use of those funds, for the purposes 
described in subsections (a) and (b).
    (d) Termination of Authority.--The authority of the Secretary to 
carry out subsections (a) and (b) shall terminate on September 30, 2019.
    (e) Permanent Administration.--Effective beginning on the 
termination date described in subsection (d), the Secretary shall carry 
out this title and the amendments made by this title in accordance with 
such final regulations as the Secretary considers necessary to carry out 
this title and the amendments made by this title.

         Subtitle F--Agricultural Conservation Easement Program

SEC. 2601. ESTABLISHMENT AND PURPOSES.

    Section 1265(b) of the Food Security Act of 1985 (16 U.S.C. 3865(b)) 
is amended--
            (1) in paragraph (3), by inserting ``that negatively affect 
        the agricultural uses and conservation values'' after ``that 
        land''; and
            (2) in paragraph (4), by striking ``restoring and'' and 
        inserting ``restoring or''.
SEC. 2602. DEFINITIONS.

    Section 1265A of the Food Security Act of 1985 (16 U.S.C. 3865a) is 
amended--
            (1) in paragraph(1)(B), by striking ``subject to an 
        agricultural land easement plan, as approved by the Secretary'';
            (2) by redesignating paragraphs (2), (3), (4), and (5) as 
        paragraphs (3), (4), (6), and (7), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Buy-protect-sell transaction.--
                    ``(A) In general.--The term `buy-protect-sell 
                transaction' means a legal arrangement--
                          ``(i) between an eligible entity and the 
                      Secretary relating to land that an eligible entity 
                      owns or is going to purchase prior to acquisition 
                      of an agricultural land easement;
                          ``(ii) under which the eligible entity 
                      certifies to the Secretary that the eligible 
                      entity shall--
                                    ``(I)(aa) hold an agricultural land 
                                easement on that land, but transfer 
                                ownership of the land to a farmer or 
                                rancher that is not an eligible entity 
                                prior to or on acquisition of the 
                                agricultural land easement; or
                                    ``(bb) hold an agricultural land 
                                easement on that land, but transfer 
                                ownership of the land to a farmer or 
                                rancher that is not an eligible entity 
                                in a timely manner and, subject to 
                                subparagraph (B), not later than 3 years 
                                after the date of acquisition of the 
                                agricultural land easement; and
                                    ``(II) make an initial sale of the 
                                land subject to the agricultural land 
                                easement to a farmer or rancher at not 
                                more than agricultural value, plus any 
                                reasonable holding and transaction costs

[[Page 132 STAT. 4586]]

                                incurred by the eligible entity, as 
                                determined by the Secretary; and
                          ``(iii) under which the Secretary shall be 
                      reimbursed for the entirety of the Federal share 
                      of the cost of the agricultural land easement by 
                      the eligible entity if the eligible entity fails 
                      to transfer ownership under item (aa) or (bb), as 
                      applicable, of clause (ii)(I).
                    ``(B) Time extension.--Under subparagraph 
                (A)(ii)(I)(bb), an eligible entity may transfer land 
                later than 3 years after the date of acquisition of the 
                agricultural land easement if the Secretary determines 
                an extension of time is justified.'';
            (4) in paragraph (4) (as so redesignated)--
                    (A) in subparagraph (A)(i)--
                          (i) by striking ``to a'' and inserting the 
                      following: ``to--
                                    ``(I) a'';
                          (ii) in subclause (I) (as so designated), by 
                      adding ``or'' at the end; and
                          (iii) by adding at the end the following:
                                    ``(II) a buy-protect-sell 
                                transaction;''; and
                    (B) in subparagraph (B)(i)(II), by striking ``, as 
                determined by the Secretary in consultation with the 
                Secretary of the Interior at the local level''; and
            (5) by inserting after paragraph (4) (as so redesignated) 
        the following:
            ``(5) Monitoring report.--The term `monitoring report' means 
        a report, the contents of which are formulated and prepared by 
        the holder of an agricultural land easement, that accurately 
        documents whether the land subject to the agricultural land 
        easement is in compliance with the terms and conditions of the 
        agricultural land easement.''.
SEC. 2603. AGRICULTURAL LAND EASEMENTS.

    (a) Availability of Assistance.--Section 1265B(a) of the Food 
Security Act of 1985 (16 U.S.C. 3865b(a)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking ``provide for the 
        conservation of natural resources pursuant to an agricultural 
        land easement plan.'' and inserting ``implement the program, 
        including technical assistance for the development of a 
        conservation plan under subsection (b)(4)(C)(iv); and''; and
            (3) by adding at the end the following:
            ``(3) buy-protect-sell transactions.''.

    (b) Cost-share Assistance.--
            (1) Scope of assistance available.--Section 1265B(b)(2) of 
        the Food Security Act of 1985 (16 U.S.C. 3865b(b)(2)) is 
        amended--
                    (A) in subparagraph (B), by striking clause (ii) and 
                inserting the following:
                          ``(ii) Grasslands exception.--In the case of 
                      grassland of special environmental significance, 
                      as determined by the Secretary, the Secretary may 
                      provide an amount not to exceed 75 percent of the 
                      fair market value of the agricultural land 
                      easement.

[[Page 132 STAT. 4587]]

                          ``(iii) Permissible forms.--The non-Federal 
                      share provided by an eligible entity under this 
                      subparagraph may comprise--
                                    ``(I) cash resources;
                                    ``(II) a charitable donation or 
                                qualified conservation contribution (as 
                                defined in section 170(h) of the 
                                Internal Revenue Code of 1986) from the 
                                private landowner from which the 
                                agricultural land easement will be 
                                purchased;
                                    ``(III) costs associated with 
                                securing a deed to the agricultural land 
                                easement, including the cost of 
                                appraisal, survey, inspection, and 
                                title; and
                                    ``(IV) other costs, as determined by 
                                the Secretary.''; and
                    (B) by striking subparagraph (C).
            (2) Evaluation and ranking of applications.--Section 
        1265B(b)(3) of the Food Security Act of 1985 (16 U.S.C. 
        3865b(b)(3)) is amended--
                    (A) by redesignating subparagraph (C) as 
                subparagraph (E); and
                    (B) by inserting after subparagraph (B) the 
                following:
                    ``(C) Accounting for geographic differences.--The 
                Secretary may adjust the criteria established under 
                subparagraph (A) to account for geographic differences, 
                if the adjustments--
                          ``(i) meet the purposes of the program; and
                          ``(ii) continue to maximize the benefit of the 
                      Federal investment under the program.
                    ``(D) Priority.--In evaluating applications under 
                the program, the Secretary may give priority to an 
                application for the purchase of an agricultural land 
                easement that, as determined by the Secretary, maintains 
                agricultural viability.''.
            (3) Agreements with eligible entities.--Section 1265B(b)(4) 
        of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(4)) is 
        amended--
                    (A) in subparagraph (C), by striking clauses (iii) 
                and (iv) and inserting the following:
                          ``(iii) include a right of enforcement for the 
                      Secretary that--
                                    ``(I) may be used only if the terms 
                                and conditions of the easement are not 
                                enforced by the eligible entity; and
                                    ``(II) does not extend to a right of 
                                inspection unless--
                                            ``(aa)(AA) the holder of the 
                                        easement fails to provide 
                                        monitoring reports in a timely 
                                        manner; or
                                            ``(BB) the Secretary has a 
                                        reasonable and articulable 
                                        belief that the terms and 
                                        conditions of the easement have 
                                        been violated; and
                                            ``(bb) prior to the 
                                        inspection, the Secretary 
                                        notifies the eligible entity and 
                                        the landowner of the inspection 
                                        and provides a reasonable 
                                        opportunity for the eligible 
                                        entity and the landowner to 
                                        participate in the inspection;

[[Page 132 STAT. 4588]]

                          ``(iv) include a conservation plan only for 
                      any portion of the land subject to the 
                      agricultural land easement that is highly erodible 
                      cropland; and'';
                    (B) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) Additional permitted terms and conditions.--An 
                eligible entity may include terms and conditions for an 
                agricultural land easement that--
                          ``(i) are intended to keep the land subject to 
                      the agricultural land easement under the ownership 
                      of a farmer or rancher, as determined by the 
                      Secretary;
                          ``(ii) allow subsurface mineral development on 
                      the land subject to the agricultural land easement 
                      and in accordance with applicable State law if, as 
                      determined by the Secretary--
                                    ``(I) the subsurface mineral 
                                development--
                                            ``(aa) has a limited and 
                                        localized impact;
                                            ``(bb) does not harm the 
                                        agricultural use and 
                                        conservation values of the land 
                                        subject to the easement;
                                            ``(cc) does not materially 
                                        alter or affect the existing 
                                        topography;
                                            ``(dd) shall comply with a 
                                        subsurface mineral development 
                                        plan that--
                                                ``(AA) includes a plan 
                                            for the remediation of 
                                            impacts to the agricultural 
                                            use and conservation values 
                                            of the land subject to the 
                                            easement; and
                                                ``(BB) is approved by 
                                            the Secretary prior to the 
                                            initiation of mineral 
                                            development activity;
                                            ``(ee) is not accomplished 
                                        by any surface mining method;
                                            ``(ff) is within the 
                                        impervious surface limits of the 
                                        easement under subparagraph 
                                        (C)(v); and
                                            ``(gg) uses practices and 
                                        technologies that minimize the 
                                        duration and intensity of 
                                        impacts to the agricultural use 
                                        and conservation values of the 
                                        land subject to the easement; 
                                        and
                                    ``(II) each area impacted by the 
                                subsurface mineral development shall be 
                                reclaimed and restored by the holder of 
                                the mineral rights at cessation of 
                                operation; and
                          ``(iii) include other relevant activities 
                      relating to the agricultural land easement, as 
                      determined by the Secretary.''.
            (4) Certification of eligible entities.--Section 1265B(b)(5) 
        of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(5)) is 
        amended--
                    (A) in subparagraph (A)--
                          (i) in clause (ii), by striking ``; and'' and 
                      inserting a semicolon;
                          (ii) in clause (iii), by striking the period 
                      at the end and inserting ``; and''; and
                          (iii) by adding at the end the following:

[[Page 132 STAT. 4589]]

                          ``(iv) allow a certified eligible entity to 
                      use its own terms and conditions, notwithstanding 
                      paragraph (4)(C), as long as the terms and 
                      conditions are consistent with the purposes of the 
                      program.''; and
                    (B) in subparagraph (B)--
                          (i) in clause (iii), by redesignating 
                      subclauses (I) through (III) as items (aa) through 
                      (cc), respectively, and indenting appropriately;
                          (ii) by redesignating clauses (i) through 
                      (iii) as subclauses (I) through (III), 
                      respectively, and indenting appropriately;
                          (iii) in the matter preceding subclause (I) 
                      (as so redesignated), by striking ``entity will'' 
                      and inserting the following: ``eligible entity--
                          ``(i) will'';
                          (iv) in clause (i)(III)(cc) (as so 
                      redesignated), by striking the period at the end 
                      and inserting a semicolon; and
                          (v) by adding at the end the following:
                          ``(ii) has--
                                    ``(I) been accredited by the Land 
                                Trust Accreditation Commission, or by an 
                                equivalent accrediting body, as 
                                determined by the Secretary;
                                    ``(II) acquired not fewer than 10 
                                agricultural land easements under the 
                                program or any predecessor program; and
                                    ``(III) successfully met the 
                                responsibilities of the eligible entity 
                                under the applicable agreements with the 
                                Secretary, as determined by the 
                                Secretary, relating to agricultural land 
                                easements that the eligible entity has 
                                acquired under the program or any 
                                predecessor program; or
                          ``(iii) is a State department of agriculture 
                      or other State agency with statutory authority for 
                      farm and ranchland protection that has--
                                    ``(I) acquired not fewer than 10 
                                agricultural land easements under the 
                                program or any predecessor program; and
                                    ``(II) successfully met the 
                                responsibilities of the eligible entity 
                                under the applicable agreements with the 
                                Secretary, as determined by the 
                                Secretary, relating to agricultural land 
                                easements that the eligible entity has 
                                acquired under the program or any 
                                predecessor program.''.
            (5) Technical assistance.--Section 1265B of the Food 
        Security Act of 1985 (16 U.S.C. 3865b) is amended by striking 
        subsection (d) and inserting the following:

    ``(d) Technical Assistance.--The Secretary may provide technical 
assistance, if requested, to assist in compliance with the terms and 
conditions of easements.''.
SEC. 2604. WETLAND RESERVE EASEMENTS.

    Section 1265C of the Food Security Act of 1985 (16 U.S.C. 3865c) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (3)(C), by inserting ``or improving 
                water quality'' before the period at the end; and

[[Page 132 STAT. 4590]]

                    (B) in paragraph (5)--
                          (i) in subparagraph (C)--
                                    (I) by striking ``Land subject'' and 
                                inserting the following:
                          ``(i) In general.--Land subject'';
                                    (II) in clause (i) (as so 
                                designated), by inserting ``water 
                                management,'' after ``timber harvest,''; 
                                and
                                    (III) by adding at the end the 
                                following:
                          ``(ii) Compatible use authorization.--In 
                      evaluating and authorizing a compatible economic 
                      use under clause (i), the Secretary shall--
                                    ``(I) request and consider the 
                                advice of the applicable State technical 
                                committee established under section 
                                1261(a) about the 1 or more types of 
                                uses that may be authorized to be 
                                conducted on land subject to a wetland 
                                reserve easement, including the 
                                frequency, timing, and intensity of 
                                those uses;
                                    ``(II) consider the ability of an 
                                authorized use to facilitate the 
                                practical administration and management 
                                of that land; and
                                    ``(III) ensure that an authorized 
                                use furthers the functions and values 
                                for which the wetland reserve easement 
                                was established.''; and
                          (ii) in subparagraph (D)(i)(III), by inserting 
                      after ``under subsection (f)'' the following: ``or 
                      a grazing management plan that is consistent with 
                      the wetland reserve easement plan and has been 
                      reviewed, and modified as necessary, at least 
                      every 5 years''; and
            (2) in subsection (f)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Wetland reserve easement plan.--
                    ``(A) In general.--The Secretary shall develop a 
                wetland reserve easement plan--
                          ``(i) for any eligible land subject to a 
                      wetland reserve easement; and
                          ``(ii) that restores, protects, enhances, 
                      manages, maintains, and monitors the eligible land 
                      subject to the wetland reserve easements acquired 
                      under this section.
                    ``(B) Practices and activities.--A wetland reserve 
                easement plan under subparagraph (A) shall include 
                practices and activities, including repair or 
                replacement, that are necessary to restore and maintain 
                the enrolled land and the functions and values of the 
                wetland subject to a wetland reserve easement.'';
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (C) by inserting after paragraph (1) the following:
            ``(2) Alternative plant communities.--The Secretary, in 
        coordination with State technical committees established under 
        section 1261(a) and pursuant to State-specific criteria and 
        guidelines, may authorize the establishment or restoration of a 
        hydrologically appropriate native community or alternative 
        naturalized vegetative community as part of a wetland reserve 
        easement plan on land subject to a wetland reserve easement

[[Page 132 STAT. 4591]]

        if that hydrologically appropriate native or alternative 
        naturalized vegetative community shall--
                    ``(A) substantially support or benefit migratory 
                waterfowl or other wetland wildlife; or
                    ``(B) meet local resource concerns or needs 
                (including as an element of a regional, State, or local 
                wildlife initiative or plan).''.
SEC. 2605. ADMINISTRATION.

    Section 1265D of the Food Security Act of 1985 (16 U.S.C. 3865d) is 
amended--
            (1) in paragraph (a)(4), by striking ``proposed'' and 
        inserting ``permitted'';
            (2) by striking subsection (c) and inserting the following:

    ``(c) Subordination, Exchange, Modification, and Termination.--
            ``(1) Subordination.--The Secretary may subordinate any 
        interest in land, or portion of such interest, administered by 
        the Secretary (including for the purposes of utilities and 
        energy transmission services) either directly or on behalf of 
        the Commodity Credit Corporation under the program if the 
        Secretary determines that the subordination--
                    ``(A) increases conservation values or has a limited 
                negative effect on conservation values;
                    ``(B) minimally affects the acreage subject to the 
                interest in land; and
                    ``(C) is in the public interest or furthers the 
                practical administration of the program.
            ``(2) Modification and exchange.--
                    ``(A) Authority.--The Secretary may approve a 
                modification or exchange of any interest in land, or 
                portion of such interest, administered by the Secretary, 
                either directly or on behalf of the Commodity Credit 
                Corporation under the program if the Secretary 
                determines that--
                          ``(i) no reasonable alternative exists and the 
                      effect on the interest in land is avoided or 
                      minimized to the extent practicable; and
                          ``(ii) the modification or exchange--
                                    ``(I) results in equal or increased 
                                conservation values;
                                    ``(II) results in equal or greater 
                                economic value to the United States;
                                    ``(III) is consistent with the 
                                original intent of the easement;
                                    ``(IV) is consistent with the 
                                purposes of the program; and
                                    ``(V) is in the public interest or 
                                furthers the practical administration of 
                                the program.
                    ``(B) Limitation.--In modifying or exchanging an 
                interest in land, or portion of such interest, under 
                this paragraph, the Secretary may not increase any 
                payment to an eligible entity.
            ``(3) Termination.--The Secretary may approve a termination 
        of any interest in land, or portion of such interest, 
        administered by the Secretary, directly or on behalf of the 
        Commodity Credit Corporation under the program if the Secretary 
        determines that--

[[Page 132 STAT. 4592]]

                    ``(A) termination is in the interest of the Federal 
                Government;
                    ``(B) the United States will be fully compensated 
                for--
                          ``(i) the fair market value of the interest in 
                      land;
                          ``(ii) any costs relating to the termination; 
                      and
                          ``(iii) any damages determined appropriate by 
                      the Secretary; and
                    ``(C) the termination will--
                          ``(i) address a compelling public need for 
                      which there is no practicable alternative even 
                      with avoidance and minimization; and
                          ``(ii) further the practical administration of 
                      the program.
            ``(4) Consent.--The Secretary shall obtain consent from the 
        landowner and eligible entity, if applicable, for any 
        subordination, exchange, modification, or termination of 
        interest in land, or portion of such interest, under this 
        subsection.
            ``(5) Notice.--At least 90 days before taking any 
        termination action described in paragraph (3), 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.''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by striking ``transferred into 
                the program'' and inserting ``enrolled in an easement 
                under section 1265C(b)''; and
                    (B) by adding at the end the following:
            ``(3) Agricultural land easements.--A farmer or rancher who 
        owns eligible land subject to an agricultural land easement may 
        enter into a contract under subchapter B of chapter 1 of 
        subtitle D.''.

          Subtitle G--Regional Conservation Partnership Program

SEC. 2701. ESTABLISHMENT AND PURPOSES.

    Section 1271 of the Food Security Act of 1985 (16 U.S.C. 3871) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``, including 
                partnership agreements funded through alternative 
                funding arrangements or grant agreements under section 
                1271C(d),'' after ``partnership agreements''; and
                    (B) in paragraph (2), by striking ``contracts with 
                producers'' and inserting ``program contracts with 
                producers''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``use covered programs'' 
                and inserting ``carry out eligible activities'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) To further the conservation, protection, restoration, 
        and sustainable use of soil, water (including sources of 
        drinking water and groundwater), wildlife, agricultural land, 
        and related

[[Page 132 STAT. 4593]]

        natural resources on eligible land on a regional or watershed 
        scale.'';
                    (C) in paragraph (3)--
                          (i) in subparagraph (A), by inserting ``, 
                      including through alignment of partnership 
                      projects with other national, State, and local 
                      agencies and programs addressing similar natural 
                      resource or environmental concerns'' after 
                      ``eligible land''; and
                          (ii) in subparagraph (B), by striking 
                      ``installation'' and inserting ``adoption, 
                      installation,''; and
                    (D) by adding at the end the following:
            ``(4) To encourage the flexible and streamlined delivery of 
        conservation assistance to producers through partnership 
        agreements.
            ``(5) To engage producers and eligible partners in 
        conservation projects to achieve greater conservation outcomes 
        and benefits for producers than would otherwise be achieved.''.
SEC. 2702. DEFINITIONS.

    Section 1271A of the Food Security Act of 1985 (16 U.S.C. 3871a) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by inserting ``, not 
                including the grassland conservation initiative under 
                section 1240L-1'' before the period at the end; and
                    (B) by adding at the end the following:
                    ``(E) The conservation reserve program established 
                under subchapter B of chapter 1 of subtitle D.
                    ``(F) The programs established by the Secretary to 
                carry out the Watershed Protection and Flood Prevention 
                Act (16 U.S.C. 1001 et seq.), except for any program 
                established by the Secretary to carry out section 14 (16 
                U.S.C. 1012) of that Act.'';
            (2) by striking paragraphs (2) and (3) and inserting the 
        following:
            ``(2) Eligible activity.--The term `eligible activity' means 
        a practice, activity, agreement, easement, or related 
        conservation measure that is available under the statutory 
        authority for a covered program.
            ``(3) Eligible land.--The term `eligible land' means any 
        agricultural or nonindustrial private forest land or associated 
        land on which the Secretary determines an eligible activity 
        would help achieve conservation benefits.'';
            (3) in paragraph (4)--
                    (A) in subparagraph (E), by inserting ``acequia,'' 
                after ``irrigation district,''; and
                    (B) by adding at the end the following:
                    ``(I) An organization described in section 
                1265A(3)(B).
                    ``(J) A conservation district.'';
            (4) by striking paragraph (5) and inserting the following:
            ``(5) Partnership agreement.--The term `partnership 
        agreement' means the programmatic agreement entered into between 
        the Secretary and an eligible partner, subject to the terms and 
        conditions under section 1271B.''; and
            (5) by adding at the end the following:
            ``(7) Program contract.--

[[Page 132 STAT. 4594]]

                    ``(A) In general.--The term `program contract' means 
                the contract between the Secretary and a producer 
                entered into under this subtitle.
                    ``(B) Exclusion.--The term `program contract' does 
                not include a contract under a covered program.''.
SEC. 2703. REGIONAL CONSERVATION PARTNERSHIPS.

    Section 1271B of the Food Security Act of 1985 (16 U.S.C. 3871b) is 
amended--
            (1) by striking subsection (b) and inserting the following:

    ``(b) Length.--
            ``(1) In general.--A partnership agreement shall be--
                    ``(A) for a period not to exceed 5 years; or
                    ``(B) for a period that is longer than 5 years, if 
                the longer period is necessary to meet the objectives of 
                the program, as determined by the Secretary.
            ``(2) Renewal.--A partnership agreement may be renewed under 
        subsection (e)(5) for a period not to exceed 5 years.
            ``(3) Extension.--A partnership agreement, or any renewal of 
        a partnership agreement, may each be extended 1 time for a 
        period not longer than 12 months, as determined by the 
        Secretary.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                    (I) by redesignating clauses (iii) 
                                and (iv) as clauses (iv) and (v), 
                                respectively; and
                                    (II) by striking clauses (i) and 
                                (ii) and inserting the following:
                          ``(i) 1 or more conservation benefits that the 
                      project shall achieve;
                          ``(ii) the eligible activities on eligible 
                      land to be conducted under the project to achieve 
                      conservation benefits;
                          ``(iii) the implementation timeline for 
                      carrying out the project, including any interim 
                      milestones;'';
                          (ii) in subparagraph (D), by striking 
                      ``funds'' and inserting ``contributions''; and
                          (iii) in subparagraph (E), by striking ``of 
                      the project's effects; and'' and inserting the 
                      following: ``of--
                          ``(i) the progress made by the project in 
                      achieving each conservation benefit defined in the 
                      partnership agreement, including in a quantified 
                      form to the extent practicable; and
                          ``(ii) as appropriate, other outcomes of the 
                      project; and''; and
                    (B) in paragraph (2)--
                          (i) by striking ``An eligible'' and inserting 
                      the following:
                    ``(A) In general.--An eligible''; and
                          (ii) by adding at the end the following:
                    ``(B) Form.--A contribution of an eligible partner 
                under this paragraph may be in the form of--
                          ``(i) direct funding;
                          ``(ii) in-kind support; or
                          ``(iii) a combination of direct funding and 
                      in-kind support.

[[Page 132 STAT. 4595]]

                    ``(C) Treatment.--Any amounts expended during the 
                period beginning on the date on which the Secretary 
                announces the approval of an application under 
                subsection (e) and ending on the day before the 
                effective date of the partnership agreement by an 
                eligible partner for staff salaries or development of 
                the partnership agreement may be considered to be a part 
                of the contribution of the eligible partner under this 
                paragraph.'';
            (3) by redesignating subsection (d) as subsection (e);
            (4) by inserting after subsection (c) the following:

    ``(d) Duties of Secretary.--The Secretary shall--
            ``(1) establish a timeline for carrying out the duties of 
        the Secretary under a partnership agreement, including--
                    ``(A) entering into program contracts with 
                producers;
                    ``(B) providing financial assistance to producers; 
                and
                    ``(C) in the case of a partnership agreement that is 
                funded through an alternative funding arrangement or 
                grant agreement under section 1271C(d), providing the 
                payments to the eligible partner for carrying out 
                eligible activities;
            ``(2) identify in each State a program coordinator for the 
        State, who shall be responsible for providing assistance to 
        eligible partners under the program;
            ``(3) establish guidance to assist eligible partners with 
        carrying out the assessment required under subsection (c)(1)(E);
            ``(4) provide to each eligible partner that has entered into 
        a partnership agreement that is not funded through an 
        alternative funding arrangement or grant agreement under section 
        1271C(d)--
                    ``(A) a semiannual report describing the status of 
                each pending and obligated contract under the project of 
                the eligible partner; and
                    ``(B) an annual report describing how the Secretary 
                used amounts reserved by the Secretary for that year for 
                technical assistance under section 1271D(f); and
            ``(5) ensure that any eligible activity effectively achieves 
        the conservation benefits identified in the partnership 
        agreement under subsection (c)(1)(A)(i).'';
            (5) in subsection (e) (as redesignated by paragraph (3))--
                    (A) in paragraph (1), by inserting ``simplified'' 
                after ``conduct a'';
                    (B) in paragraph (3)--
                          (i) by striking the paragraph designation and 
                      heading and all that follows through ``description 
                      of--'' and inserting the following:
            ``(3) Contents.--The Secretary shall develop a simplified 
        application that includes a description of--'';
                          (ii) in subparagraph (C), by striking ``, 
                      including the covered programs to be used''; and
                          (iii) in subparagraph (D), by striking 
                      ``financial'';
                    (C) in paragraph (4)--
                          (i) by striking subparagraph (D);
                          (ii) by redesignating subparagraphs (E) and 
                      (F) as subparagraphs (G) and (H), respectively; 
                      and
                          (iii) by inserting after subparagraph (C) the 
                      following:

[[Page 132 STAT. 4596]]

                    ``(D) build new partnerships with local, State, and 
                private entities to include a diversity of stakeholders 
                in the project;
                    ``(E) deliver a high percentage of applied 
                conservation--
                          ``(i) to achieve conservation benefits; or
                          ``(ii) in the case of a project in a critical 
                      conservation area under section 1271F, to address 
                      the priority resource concern for that critical 
                      conservation area;
                    ``(F) implement the project consistent with existing 
                watershed, habitat, or other area restoration plans;''; 
                and
                    (D) by adding at the end the following:
            ``(5) Renewals.--If the Secretary determines that a project 
        that is the subject of a partnership agreement has met or 
        exceeded the objectives of the project, the Secretary may renew 
        the partnership agreement through an expedited noncompetitive 
        process if the 1 or more eligible partners that are parties to 
        the partnership agreement request the renewal in order--
                    ``(A) to continue to implement the project under a 
                renewal of the partnership agreement; or
                    ``(B) to expand the scope of the project under a 
                renewal of the partnership agreement, as long as the 
                expansion is within the objectives and purposes of the 
                original partnership agreement.''; and
            (6) by adding at the end the following:

    ``(f) Nonapplicability of Adjusted Gross Income Limitation.--The 
adjusted gross income limitation described in section 1001D(b)(1) shall 
not apply to an eligible partner under the program.''.
SEC. 2704. ASSISTANCE TO PRODUCERS.

    Section 1271C of the Food Security Act of 1985 (16 U.S.C. 3871c) is 
amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:

    ``(a) In General.--A producer may receive financial or technical 
assistance to conduct eligible activities on eligible land through a 
program contract entered into with the Secretary.
    ``(b) Program Contracts.--
            ``(1) In general.--The Secretary shall establish a program 
        contract to be entered into with a producer to conduct eligible 
        activities on eligible land, subject to such terms and 
        conditions as the Secretary may establish.
            ``(2) Application bundles.--
                    ``(A) In general.--An eligible partner may submit to 
                the Secretary, on behalf of producers, a bundle of 
                applications for assistance under the program through 
                program contracts to address a substantial portion of 
                the conservation benefits to be achieved by the project, 
                as defined in the partnership agreement.
                    ``(B) Priority.--The Secretary may give priority to 
                applications described in subparagraph (A).'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``In accordance 
                with statutory requirements of the covered programs 
                involved, the Secretary may make payments to a 
                producer'' and inserting ``Subject to section 1271D, the 
                Secretary may make payments to a producer''; and

[[Page 132 STAT. 4597]]

                    (B) in paragraph (3), by striking ``participating''; 
                and
            (3) by adding at the end the following:

    ``(d) Funding Through Alternative Funding Arrangements or Grant 
Agreements.--
            ``(1) In general.--A partnership agreement entered into with 
        an eligible partner may be funded through an alternative funding 
        arrangement or grant in accordance with this subsection.
            ``(2) Duties of the secretary.--The Secretary shall--
                    ``(A) under a funding agreement under paragraph 
                (1)--
                          ``(i) use funding made available to carry out 
                      this subtitle to provide funding directly to the 
                      eligible partner; and
                          ``(ii) provide technical and administrative 
                      assistance, as mutually agreed by the parties; and
                    ``(B) enter into not more than 15 alternative 
                funding arrangements or grant agreements with 1 or more 
                eligible partners each fiscal year.
            ``(3) Duties of eligible partners.--Under a funding 
        agreement under paragraph (1), the eligible partner shall--
                    ``(A) carry out eligible activities on eligible land 
                in agreement with producers to achieve conservation 
                benefits on a regional or watershed scale, such as--
                          ``(i) infrastructure investments relating to 
                      agricultural or nonindustrial private forest 
                      production that would--
                                    ``(I) benefit multiple producers; 
                                and
                                    ``(II) address natural resource 
                                concerns such as drought, wildfire, or 
                                water quality impairment on the land 
                                covered by the project;
                          ``(ii) projects addressing natural resources 
                      concerns in coordination with producers, including 
                      the development and implementation of watershed, 
                      habitat, or other area restoration plans;
                          ``(iii) projects that use innovative 
                      approaches to leveraging the Federal investment in 
                      conservation with private financial mechanisms, in 
                      conjunction with agricultural production or forest 
                      resource management, such as--
                                    ``(I) the provision of performance-
                                based payments to producers; and
                                    ``(II) support for an environmental 
                                market; or
                          ``(iv) other projects for which the Secretary 
                      determines that the goals and objectives of the 
                      program would be easier to achieve through the 
                      funding agreement under paragraph (1); and
                    ``(B) submit to the Secretary, in addition to any 
                information that the Secretary requires to prepare the 
                report under section 1271E(b), an annual report that 
                describes the status of the project, including a 
                description of--
                          ``(i) the use of the funds awarded under 
                      paragraph (1);
                          ``(ii) any subcontracts awarded;
                          ``(iii) the producers receiving funding 
                      through the funding agreement under paragraph (1);

[[Page 132 STAT. 4598]]

                          ``(iv)(I) the progress made by the project in 
                      addressing each natural resource concern defined 
                      in the funding agreement under paragraph (1), 
                      including in a quantified form to the extent 
                      practicable; and
                          ``(II) as appropriate, other outcomes of the 
                      project; and
                          ``(v) any other reporting data the Secretary 
                      determines are necessary to ensure compliance with 
                      the program rules.''.
SEC. 2705. FUNDING.

    Section 1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``$100,000,000'' and inserting 
                ``$300,000,000''; and
                    (B) by striking ``2014 through 2018'' and inserting 
                ``2019 through 2023'';
            (2) by striking subsection (c);
            (3) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively;
            (4) in subsection (c) (as so redesignated)--
                    (A) in the matter preceding paragraph (1)--
                          (i) by striking ``and acres''; and
                          (ii) by striking ``and reserved for the 
                      program under subsection (c)'';
                    (B) in paragraph (1)--
                          (i) by striking ``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'' 
                      and inserting ``50 percent of the funds to 
                      projects based on a State or multistate 
                      competitive process administered by the Secretary 
                      at the local level with the advice of the 
                      applicable State technical committees''; and
                          (ii) by adding ``and'' after the semicolon;
                    (C) by striking paragraph (2);
                    (D) by redesignating paragraph (3) as paragraph (2); 
                and
                    (E) in paragraph (2) (as so redesignated), by 
                striking ``35 percent of the funds and acres'' and 
                inserting ``50 percent of the funds'';
            (5) in subsection (d) (as so redesignated)--
                    (A) by striking ``None of the funds made available 
                or reserved for the program'' and inserting the 
                following:
            ``(1) In general.--Except as provided in paragraph (2), none 
        of the funds made available for the program, including for a 
        partnership agreement funded through an alternative funding 
        arrangement or grant agreement under section 1271C(d),''; and
                    (B) by adding at the end the following:
            ``(2) Project development and outreach.--Under a partnership 
        agreement that is not funded through an alternative funding 
        arrangement or grant agreement under section 1271C(d), the 
        Secretary may advance reasonable amounts of funding for not 
        longer than 90 days for technical assistance

[[Page 132 STAT. 4599]]

        to eligible partners to conduct project development and outreach 
        activities in a project area, including--
                    ``(A) providing outreach and education to producers 
                for potential participation in the project;
                    ``(B) establishing baseline metrics to support the 
                development of the assessment required under section 
                1271B(c)(1)(E); or
                    ``(C) providing technical assistance to 
                producers.''; and
            (6) by adding at the end the following:

    ``(e) Technical Assistance.--
            ``(1) In general.--At the time of project selection, the 
        Secretary shall identify and make publicly available the amount 
        that the Secretary shall use to provide technical assistance 
        under the terms of the partnership agreement.
            ``(2) Limitation.--The Secretary shall limit costs of the 
        Secretary for technical assistance to costs specific and 
        necessary to carry out the objectives of the program.
            ``(3) Third-party providers.--The Secretary shall develop 
        and implement strategies to encourage third-party technical 
        service providers to provide technical assistance to eligible 
        partners pursuant to a partnership agreement.''.
SEC. 2706. ADMINISTRATION.

    Section 1271E of the Food Security Act of 1985 (16 U.S.C. 3871e) is 
amended--
            (1) in subsection (a), by striking ``1271B(d)'' each place 
        it appears and inserting ``1271B(e)'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``December 31, 2014'' and inserting ``December 
                31, 2019'';
                    (B) by redesignating paragraphs (1) through (4) as 
                paragraphs (2) through (5), respectively;
                    (C) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) a summary of--
                    ``(A) the progress made towards achieving the 
                conservation benefits defined for the projects; and
                    ``(B) any other related outcomes of the projects;'';
                    (D) in paragraph (4) (as so redesignated), by 
                striking ``and'' at the end;
                    (E) in paragraph (5) (as so redesignated)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``1271C(b)(2)'' and inserting 
                      ``1271C(d)''; and
                          (ii) in subparagraph (C), by striking the 
                      period at the end and inserting ``; and''; and
                    (F) by adding at the end the following:
            ``(6) in the case of a project within a critical 
        conservation area under section 1271F, the status of each 
        priority resource concern for each designated critical 
        conservation area, including--
                    ``(A) the priority resource concerns for which each 
                critical conservation area is designated;
                    ``(B) conservation goals and outcomes sufficient to 
                demonstrate that progress is being made to address the 
                priority resource concerns;
                    ``(C) the partnership agreements selected to address 
                each conservation goal and outcome; and

[[Page 132 STAT. 4600]]

                    ``(D) the extent to which each conservation goal and 
                outcome is being addressed by the partnership 
                agreements.''; and
            (3) by adding at the end the following:

    ``(c) Compliance With Certain Requirements.--The Secretary may not 
provide assistance under the program to a producer unless the producer 
agrees, during the program year for which the assistance is provided--
            ``(1) to comply with applicable conservation requirements 
        under subtitle B; and
            ``(2) to comply with applicable wetland protection 
        requirements under subtitle C.

    ``(d) Historically Underserved Producers.--To the maximum extent 
practicable, in carrying out the program, the Secretary and eligible 
partners shall conduct outreach to beginning farmers and ranchers, 
veteran farmers and ranchers, socially disadvantaged farmers and 
ranchers, and limited resource farmers and ranchers to encourage 
participation by those producers in a project subject to a partnership 
agreement or funding agreement under 1271C(d).
    ``(e) Regulations.--The Secretary shall issue regulations to carry 
out the program.''.
SEC. 2707. CRITICAL CONSERVATION AREAS.

    Section 1271F of the Food Security Act of 1985 (16 U.S.C. 3871f) is 
amended--
            (1) by redesignating subsections (a), (b), and (c) as 
        subsections (b), (c), and (e), respectively;
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:

    ``(a) Definitions.--In this section:
            ``(1) Critical conservation area.--The term `critical 
        conservation area' means a geographical area that contains a 
        critical conservation condition that can be addressed through 
        the program.
            ``(2) Priority resource concern.--The term `priority 
        resource concern' means a natural resource concern located in a 
        critical conservation area that can be addressed through--
                    ``(A) water quality improvement, including through 
                reducing erosion, promoting sediment control, and 
                addressing nutrient management activities affecting 
                large bodies of water of regional, national, or 
                international significance;
                    ``(B) water quantity improvement, including 
                improvement relating to--
                          ``(i) drought;
                          ``(ii) groundwater, surface water, aquifer, or 
                      other water sources; or
                          ``(iii) water retention and flood prevention;
                    ``(C) wildlife habitat restoration to address 
                species of concern at a Federal, State, or local level; 
                and
                    ``(D) other natural resource improvements, as 
                determined by the Secretary, within the critical 
                conservation area.'';
            (3) in subsection (b) (as so redesignated)--
                    (A) by striking ``(b) In General.--'' and inserting 
                the following:

    ``(b) Applications.--'';

[[Page 132 STAT. 4601]]

                    (B) by striking ``1271D(d)(3)'' and inserting 
                ``1271D(d)(2)'';
                    (C) by striking ``producer'' and inserting 
                ``program''; and
                    (D) by inserting ``that address 1 or more priority 
                resource concerns for which the critical conservation 
                area is designated'' before the period at the end;
            (4) in subsection (c) (as so redesignated)--
                    (A) by redesignating paragraphs (1) through (3) as 
                paragraphs (2) through (4), respectively;
                    (B) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) In general.--The Secretary shall identify 1 or more 
        priority resource concerns that apply to each critical 
        conservation area designated under this section after the date 
        of enactment of the Agricultural Act of 2014 (Public Law 113-79; 
        128 Stat. 649), including the conservation goals and outcomes 
        sufficient to demonstrate that progress is being made to address 
        the priority resource concern.'';
                    (C) in paragraph (2) (as so redesignated)--
                          (i) by striking subparagraphs (C) and (D) and 
                      inserting the following:
                    ``(C) contains 1 or more priority resource concerns; 
                or''; and
                          (ii) by redesignating subparagraph (E) as 
                      subparagraph (D); and
                    (D) by striking paragraph (3) (as so redesignated) 
                and inserting the following:
            ``(3) Review and withdrawal.--The Secretary may--
                    ``(A) review designations of critical conservation 
                areas under this section not more frequently than once 
                every 5 years; and
                    ``(B) withdraw designation of a critical 
                conservation area only if the Secretary determines that 
                the area is no longer a critical conservation area.'';
            (5) by inserting after subsection (c) (as so redesignated) 
        the following:

    ``(d) Outreach to Eligible Partners and Producers.--The Secretary 
shall provide outreach and education to eligible partners and producers 
in critical conservation areas designated under this section to 
encourage the development of projects to address each priority resource 
concern identified by the Secretary for that critical conservation 
area.''; and
            (6) in subsection (e) (as so redesignated)--
                    (A) in paragraph (1), by striking ``producer'' and 
                inserting ``program''; and
                    (B) by striking paragraph (3).

[[Page 132 STAT. 4602]]

              Subtitle H--Repeals and Technical Amendments

                             PART I--REPEALS

SEC. 2811. REPEAL OF CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.

    (a) In General.--Subtitle G of title II of the Farm Security and 
Rural Investment Act of 2002 (16 U.S.C. 3801 note; Public Law 107-171) 
is repealed.
    (b) Conforming Amendment.--Section 5059 of the Water Resources 
Development Act of 2007 (16 U.S.C. 3801 note; Public Law 110-114) is 
repealed.
SEC. 2812. REPEAL OF CRANBERRY ACREAGE RESERVE PROGRAM.

    Section 10608 of the Farm Security and Rural Investment Act of 2002 
(16 U.S.C. 3801 note; Public Law 107-171) is repealed.
SEC. 2813. REPEAL OF NATIONAL NATURAL RESOURCES FOUNDATION.

    Subtitle F of title III of the Federal Agriculture Improvement and 
Reform Act of 1996 (16 U.S.C. 5801 et seq.) <<NOTE: 16 USC 5801 and 
note, 5802-5809.>>  is repealed.
SEC. 2814. REPEAL OF FLOOD RISK REDUCTION.

    Section 385 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7334) is repealed.
SEC. 2815. REPEAL OF STUDY OF LAND USE FOR EXPIRING CONTRACTS AND 
                          EXTENSION OF AUTHORITY.

    Section 1437 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (16 U.S.C. 3831 note; Public Law 101-624) is repealed.
SEC. 2816. REPEAL OF INTEGRATED FARM MANAGEMENT PROGRAM OPTION.

    Section 1451 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5822) is repealed.
SEC. 2817. REPEAL OF CLARIFICATION OF DEFINITION OF AGRICULTURAL 
                          LANDS.

    Section 325 of the Federal Agriculture Improvement and Reform Act of 
1996 (Public Law 104-127; 110 Stat. 992) is repealed.

                      PART II--TECHNICAL AMENDMENTS

SEC. 2821. TECHNICAL AMENDMENTS.

    (a) Watershed Protection and Flood Prevention Act.--Section 5(4) of 
the Watershed Protection and Flood Prevention Act (16 U.S.C. 1005(4)) is 
amended--
            (1) by striking ``goodwater'' and inserting ``floodwater''; 
        and
            (2) by striking ``Secretary of Health, Education, and 
        Welfare'' each place it appears and inserting ``Secretary of 
        Health and Human Services''.

    (b) Delineation of Wetlands; Exemptions.--Section 1222(j) of the 
Food Security Act of 1985 (16 U.S.C. 3822(j)) is amended by striking 
``National Resources Conservation Service'' and inserting ``Natural 
Resources Conservation Service''.

[[Page 132 STAT. 4603]]

    (c) Farmable Wetland Program.--Section 1231B(b)(2)(A)(i) of the Food 
Security Act of 1985 (16 U.S.C. 3831b(b)(2)(A)(i)) is amended by adding 
a semicolon at the end.
    (d) Terminal Lakes Assistance.--Section 2507 of the Farm Security 
and Rural Investment Act of 2002 (16 U.S.C. 3839bb-6) is amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraph (2) as paragraph (1); 
                and
                    (C) by adding at the end the following:
            ``(2) No additional funds.--
                    ``(A) In general.--Nothing in this section 
                authorizes any additional funds to carry out this 
                section.
                    ``(B) Availability of funds.--Any funds made 
                available to carry out this section before the date of 
                enactment of the Agriculture Improvement Act of 2018 may 
                remain available until expended.''; and
            (2) by adding at the end the following:

    ``(f) Termination of Authority.--The authority provided by this 
section shall terminate on October 1, 2023.''.
    (e) Delivery of Technical Assistance.--Section 1242 of the Food 
Security Act of 1985 (16 U.S.C. 3842) is amended by striking ``third 
party'' each place it appears and inserting ``third-party''.
    (f) Administrative Requirements for Conservation Programs.--Section 
1244(b)(4)(B) of the Food Security Act of 1985 (16 U.S.C. 3844(b)(4)(B)) 
is amended by striking ``General Accounting Office'' and inserting 
``Government Accountability Office''.
SEC. 2822. STATE TECHNICAL COMMITTEES.

    (a) Standards.--Section 1261(b)(2) of the Food Security Act of 1985 
(16 U.S.C. 3861(b)(2)) is amended by striking ``under section 1262(b)''.
    (b) Composition.--Section 1261(c) of the Food Security Act of 1985 
(16 U.S.C. 3861(c)) is amended by adding at the end the following:
            ``(14) The State Cooperative Extension Service and land 
        grant university in the State.''.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

SEC. 3101. LABELING REQUIREMENTS.

    Section 202(g) of the Food for Peace Act (7 U.S.C. 1722(g)) is 
amended to read as follows:
    ``(g) Labeling of Assistance.--Agricultural commodities and other 
assistance provided under this title shall, to the extent practicable, 
be clearly identified with appropriate markings on the package or 
container of such agricultural commodities or food procured outside of 
the United States, or on printed material that accompanies other 
assistance, in the language of the locality in which such commodities 
and other assistance are distributed, as being furnished by the people 
of the United States of America.''.

[[Page 132 STAT. 4604]]

SEC. 3102. FOOD AID QUALITY ASSURANCE.

    Section 202(h)(3) of the Food for Peace Act (7 U.S.C. 1722(h)(3)) is 
amended by striking ``2018'' and inserting ``2023''.
SEC. 3103. LOCAL SALE AND BARTER OF COMMODITIES.

    Section 203 of the Food for Peace Act (7 U.S.C. 1723) is amended--
            (1) in subsection (a), by inserting ``to generate proceeds 
        to be used as provided in this section'' before the period at 
        the end;
            (2) by striking subsection (b); and
            (3) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.
SEC. 3104. MINIMUM LEVELS OF ASSISTANCE.

    Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is 
amended in paragraphs (1) and (2) by striking ``2018'' both places it 
appears and inserting ``2023''.
SEC. 3105. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended--
            (1) in subsection (d)(1), in the first sentence, by striking 
        ``45'' and inserting ``30''; and
            (2) in subsection (f), by striking ``2018'' and inserting 
        ``2023''.
SEC. 3106. ISSUANCE OF REGULATIONS.

    Section 207(c)(1) of the Food for Peace Act (7 U.S.C. 1726a(c)(1)) 
is amended by striking ``the Agricultural Act of 2014''and inserting 
``the Agriculture Improvement Act of 2018''.
SEC. 3107. OVERSIGHT, MONITORING, AND EVALUATION.

    Section 207(f)(4) of the Food for Peace Act (7 U.S.C. 1726a(f)(4)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``$17,000,000'' and inserting ``1.5 
                percent, but not less than $17,000,000,''; and
                    (B) by striking ``2018'' each place it appears and 
                inserting ``2023''; and
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``2018'' and 
                inserting ``2023''; and
                    (B) in clause (ii), by striking ``chapter 1 of part 
                I of''.
SEC. 3108. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
                          DELIVERY, AND DISTRIBUTION OF SHELF-
                          STABLE PREPACKAGED FOODS.

    Section 208 of the Food for Peace Act (7 U.S.C. 1726b) is amended--
            (1) by amending the section heading to read as follows: 
        ``international food relief partnership.''; and
            (2) in subsection (f), by striking ``2018'' and inserting 
        ``2023''.
SEC. 3109. CONSIDERATION OF IMPACT OF PROVISION OF AGRICULTURAL 
                          COMMODITIES AND OTHER ASSISTANCE ON 
                          LOCAL FARMERS AND ECONOMY.

    (a) Inclusion of All Modalities.--Section 403(a) of the Food for 
Peace Act (7 U.S.C. 1733(a)) is amended--

[[Page 132 STAT. 4605]]

            (1) in the matter preceding paragraph (1), by inserting ``, 
        food procured outside of the United States, food voucher, or 
        cash transfer for food'' after ``agricultural commodity'';
            (2) in paragraph (1), by inserting ``in the case of the 
        provision of an agricultural commodity,'' before ``adequate''; 
        and
            (3) in paragraph (2), by striking ``commodity'' and 
        inserting ``agricultural commodity or use of the food procured 
        outside of the United States, food voucher, or cash transfer for 
        food''.

    (b) Avoidance of Disruptive Impact.--Section 403(b) of the Food for 
Peace Act (7 U.S.C. 1733(b)) is amended--
            (1) in the first sentence, by inserting ``, the use of food 
        procured outside of the United States, food vouchers, and cash 
        transfers for food,'' after ``agricultural commodities''; and
            (2) in the second sentence, by striking ``of sales of 
        agricultural commodities''.
SEC. 3110. ALLOWANCE FOR DISTRIBUTION COSTS.

    Section 406(b)(6) of the Food for Peace Act (7 U.S.C. 1736(b)(6)) is 
amended by striking ``and distribution costs'' and inserting ``, 
distribution, and program implementation costs to use the commodities''.
SEC. 3111. PREPOSITIONING OF AGRICULTURAL COMMODITIES.

    Section 407(c)(4)(A) of the Food for Peace Act (7 U.S.C. 
1736a(c)(4)(A)) is amended by striking ``2018'' each place it appears 
and inserting ``2023''.
SEC. 3112. ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND 
                          ACTIVITIES.

    (a) In General.--Section 407(f) of the Food for Peace Act (7 U.S.C. 
1736a(f)) is amended to read as follows:
    ``(f) Annual Report Regarding Food Aid Programs and Activities.--
            ``(1) Annual report.--Not later than April 1 of each fiscal 
        year, the Administrator and the Secretary shall jointly, or each 
        separately, prepare and submit to the appropriate committees of 
        Congress a report regarding each program and activity carried 
        out under this Act by the Administrator, the Secretary, or both, 
        as applicable, during the prior fiscal year.
            ``(2) Contents.--An annual report described in paragraph (1) 
        shall include, with respect to the prior fiscal year, the 
        following:
                    ``(A) A list that contains a description of each 
                country and organization that receives food and other 
                assistance under this Act (including the quantity of 
                food and assistance provided to each country and 
                organization).
                    ``(B) A general description of each project and 
                activity implemented under this Act (including each 
                activity funded through the use of local currencies) and 
                the total number of beneficiaries of the project.
                    ``(C) A statement describing the quantity of 
                agricultural commodities made available to, and the 
                total number of beneficiaries in, each country pursuant 
                to--
                          ``(i) this Act;
                          ``(ii) section 416(b) of the Agricultural Act 
                      of 1949 (7 U.S.C. 1431(b));
                          ``(iii) the Food for Progress Act of 1985 (7 
                      U.S.C. 1736o); and

[[Page 132 STAT. 4606]]

                          ``(iv) the McGovern-Dole International Food 
                      for Education and Child Nutrition Program 
                      established by section 3107 of the Farm Security 
                      and Rural Investment Act of 2002 (7 U.S.C. 1736o-
                      1).
                    ``(D) An assessment of the progress made through 
                programs under this Act towards reducing food insecurity 
                in the populations receiving food assistance from the 
                United States.
                    ``(E) A description of efforts undertaken by the 
                Food Aid Consultative Group under section 205 to achieve 
                an integrated and effective food assistance program.
                    ``(F) An assessment of--
                          ``(i) each program oversight, monitoring, and 
                      evaluation system implemented under section 
                      207(f); and
                          ``(ii) the impact of each program oversight, 
                      monitoring, and evaluation system on the 
                      effectiveness and efficiency of assistance 
                      provided under this title.
                    ``(G) An assessment of the progress made by the 
                Administrator in addressing issues relating to quality 
                with respect to the provision of food assistance.
                    ``(H) A statement of the amount of funds (including 
                funds for administrative costs, indirect cost recovery, 
                internal transportation, storage and handling, and 
                associated distribution costs) provided to each eligible 
                organization that received assistance under this Act, 
                that further describes the following:
                          ``(i) How such funds were used by the eligible 
                      organization.
                          ``(ii) The actual rate of return for each 
                      commodity made available under this Act, including 
                      factors that influenced the rate of return, and, 
                      for the commodity, the costs of bagging or further 
                      processing, ocean transportation, inland 
                      transportation in the recipient country, storage 
                      costs, and any other information that the 
                      Administrator and the Secretary determine to be 
                      necessary.
                          ``(iii) For each instance in which a commodity 
                      was made available under this Act at a rate of 
                      return less than 70 percent, the reasons for the 
                      rate of return realized.
                    ``(I) For funds expended for purposes of section 
                202(e), 406(b)(6), and 407(c)(1)(B), a detailed 
                accounting of the expenditures and purposes of such 
                expenditures with respect to each such section.
            ``(3) Rate of return described.--For purposes of applying 
        subparagraph (H) of paragraph (2), the rate of return for a 
        commodity shall be equal to the proportion that--
                    ``(A) the proceeds the implementing partners 
                generate through monetization; bears to
                    ``(B) the cost to the Federal Government to procure 
                and ship the commodity to a recipient country for 
                monetization.''.

    (b) Conforming Repeal.--Subsection (m) of section 403 of the Food 
for Peace Act (7 U.S.C. 1733) is repealed.

[[Page 132 STAT. 4607]]

SEC. 3113. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO PROVIDE 
                          OTHER ASSISTANCE.

    Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended by 
striking ``2018'' and inserting ``2023''.
SEC. 3114. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

    Section 412(e) of the Food for Peace Act (7 U.S.C. 1736f(e)) is 
amended to read as follows:
    ``(e) Minimum Level of Nonemergency Food Assistance.--
            ``(1) In general.--For each of fiscal years 2019 through 
        2023, not less than $365,000,000 of the amounts made available 
        to carry out emergency and nonemergency food assistance programs 
        under title II, nor more than 30 percent of such amounts, shall 
        be expended for nonemergency food assistance programs under such 
        title.
            ``(2) Community development funds.--Funds appropriated each 
        year to carry out part I of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2151 et seq.) that are made available through grants 
        or cooperative agreements to strengthen food security in 
        developing countries and that are consistent with section 
        202(e)(1)(C) may be considered amounts expended for nonemergency 
        food assistance programs for purposes of paragraph (1).
            ``(3) Farmer-to-farmer program.--In determining the amount 
        expended for a fiscal year for nonemergency food assistance 
        programs under paragraph (1), amounts expended for that year to 
        carry out programs under section 501 may be considered amounts 
        expended for nonemergency food assistance programs.''.
SEC. 3115. TERMINATION DATE FOR MICRONUTRIENT FORTIFICATION 
                          PROGRAMS.

    Section 415(c) of the Food for Peace Act (7 U.S.C. 1736g-2(c)) is 
amended by striking ``2018'' and inserting ``2023''.
SEC. 3116. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER 
                          PROGRAM.

    Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``section 1342 of title 31, United States 
                Code, or'' after ``Notwithstanding'';
                    (B) in paragraph (1) by inserting ``technical'' 
                before ``assistance''; and
                    (C) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                      by inserting ``employees or staff of a State 
                      cooperative institution (as such term is defined 
                      in paragraph 18 of section 1404 of the National 
                      Agricultural Research, Extension, and Teaching 
                      Policy Act of 1977 (7 U.S.C. 3103), except that 
                      subparagraphs (E), (F), and (G) of such paragraph 
                      shall not apply),'' after ``private 
                      corporations,''; and
                          (ii) in subparagraph (A)--
                                    (I) by striking ``; and'' at the end 
                                of clause (viii); and

[[Page 132 STAT. 4608]]

                                    (II) by striking clause (ix) and 
                                inserting the following:
                          ``(ix) agricultural education and extension;
                          ``(x) selection of seed varieties and plant 
                      stocks;
                          ``(xi) knowledge of insecticide and sanitation 
                      procedures to prevent crop destruction;
                          ``(xii) use and maintenance of agricultural 
                      equipment and irrigation systems; and
                          ``(xiii) selection of fertilizers and methods 
                      of soils treatment; and'';
            (2) in subsection (d), in the matter preceding paragraph 
        (1), by striking ``2018'' and inserting ``2023'';
            (3) in subsection (e)(1), in the matter preceding 
        subparagraph (A), by striking ``2018'' and inserting ``2023''; 
        and
            (4) by adding at the end the following:

    ``(f) Grant Program to Create New Partners and Innovation.--
            ``(1) In general.--The Administrator of the Agency for 
        International Development shall develop a grant program to be 
        carried out in fiscal years 2019 through 2023 to facilitate new 
        and innovative partnerships and activities under this title.
            ``(2) Use of funds.--A grant recipient under this subsection 
        shall use funds received under this subsection to--
                    ``(A) prioritize new implementing partners;
                    ``(B) develop innovative volunteer models;
                    ``(C) develop, improve, or maintain strategic 
                partnerships with other United States development 
                programs; and
                    ``(D) expand the footprint and impact of the 
                programs and activities under this title, and diversity 
                among program participants, including land-grant 
                colleges and universities and cooperative extension 
                services (as such terms are defined in section 1404 of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3103)).''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 3201. AGRICULTURAL TRADE PROMOTION AND FACILITATION.

    (a) In General.--Section 203 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5623) is amended to read as follows:
``SEC. 203. AGRICULTURAL TRADE PROMOTION AND FACILITATION.

    ``(a) Establishment.--The Secretary shall carry out activities under 
this section--
            ``(1) to access, develop, maintain, and expand markets for 
        United States agricultural commodities; and
            ``(2) to promote cooperation and the exchange of 
        information.

    ``(b) Market Access Program.--
            ``(1) Definition of eligible trade organization.--In this 
        subsection, the term `eligible trade organization' means--
                    ``(A) a United States agricultural trade 
                organization or regional State-related organization that 
                promotes the export and sale of United States 
                agricultural commodities and that does not stand to 
                profit directly from specific sales of United States 
                agricultural commodities;

[[Page 132 STAT. 4609]]

                    ``(B) a cooperative organization or State agency 
                that promotes the sale of United States agricultural 
                commodities; or
                    ``(C) a private organization that promotes the 
                export and sale of United States agricultural 
                commodities if the Secretary determines that such 
                organization would significantly contribute to United 
                States export market development.
            ``(2) In general.--The Commodity Credit Corporation shall 
        establish and carry out a program, to be known as the `Market 
        Access Program', to encourage the development, maintenance, and 
        expansion of commercial export markets for United States 
        agricultural commodities (including commodities that are 
        organically produced (as defined in section 2103 of the Organic 
        Foods Production Act of 1990 (7 U.S.C. 6502))) through cost-
        share assistance to eligible trade organizations that implement 
        a foreign market development program.
            ``(3) Participation requirements.--
                    ``(A) Marketing plan and other requirements.--To be 
                eligible for cost-share assistance under this 
                subsection, an eligible trade organization shall--
                          ``(i) prepare and submit a marketing plan to 
                      the Secretary that meets the guidelines governing 
                      such a marketing plan specified in this paragraph 
                      or otherwise established by the Secretary;
                          ``(ii) meet any other requirements established 
                      by the Secretary; and
                          ``(iii) enter into an agreement with the 
                      Secretary.
                    ``(B) Purpose of marketing plan.--A marketing plan 
                submitted under this paragraph shall describe the 
                advertising or other market oriented export promotion 
                activities to be carried out by the eligible trade 
                organization with respect to which assistance under this 
                subsection is being requested.
                    ``(C) Specific elements.--To be approved by the 
                Secretary, a marketing plan submitted under this 
                paragraph shall--
                          ``(i) specifically describe the manner in 
                      which assistance received by the eligible trade 
                      organization, in conjunction with funds and 
                      services provided by the eligible trade 
                      organization, will be expended in implementing the 
                      marketing plan;
                          ``(ii) establish specific market goals to be 
                      achieved under the marketing plan; and
                          ``(iii) contain whatever additional 
                      requirements are determined by the Secretary to be 
                      necessary.
                    ``(D) Branded promotion.--A marketing plan approved 
                by the Secretary may provide for the use of branded 
                advertising to promote the sale of United States 
                agricultural commodities in a foreign country under such 
                terms and conditions as may be established by the 
                Secretary.
                    ``(E) Amendments.--An approved marketing plan may be 
                amended by the eligible trade organization at any time, 
                subject to the approval of the amendment by the 
                Secretary.
            ``(4) Level of assistance and cost-share requirements.--

[[Page 132 STAT. 4610]]

                    ``(A) In general.--The Secretary shall justify in 
                writing the level of assistance to be provided to an 
                eligible trade organization under this subsection and 
                the level of cost sharing required of the organization.
                    ``(B) Limitation on branded promotion.--Assistance 
                provided under this subsection for activities described 
                in paragraph (3)(D) shall not exceed 50 percent of the 
                cost of implementing the marketing plan, except that the 
                Secretary may determine not to apply such limitation in 
                the case of United States agricultural commodities with 
                respect to which there has been a favorable decision by 
                the United States Trade Representative under section 301 
                of the Trade Act of 1974 (19 U.S.C. 2411). Criteria used 
                by the Secretary for determining that the limitation 
                shall not apply shall be consistent and documented.
            ``(5) Other terms and conditions.--
                    ``(A) Multiyear basis.--The Secretary may provide 
                assistance under this subsection on a multiyear basis, 
                subject to annual review by the Secretary for compliance 
                with the approved marketing plan.
                    ``(B) Termination of assistance.--The Secretary may 
                terminate any assistance made, or to be made, available 
                under this subsection if the Secretary determines that--
                          ``(i) the eligible trade organization is not 
                      adhering to the terms and conditions applicable to 
                      the provision of the assistance;
                          ``(ii) the eligible trade organization is not 
                      implementing the approved marketing plan or is not 
                      adequately meeting the established goals of the 
                      plan;
                          ``(iii) the eligible trade organization is not 
                      adequately contributing its own resources to the 
                      implementation of the plan; or
                          ``(iv) the Secretary determines that 
                      termination of assistance in a particular instance 
                      is in the best interests of the Market Access 
                      Program.
                    ``(C) Evaluations.--Beginning not later than 15 
                months after the initial provision of assistance under 
                this subsection to an eligible trade organization, the 
                Secretary shall monitor the expenditures by the eligible 
                trade organization of such assistance, including the 
                following:
                          ``(i) An evaluation of the effectiveness of 
                      the marketing plan of the eligible trade 
                      organization in developing or maintaining markets 
                      for United States agricultural commodities.
                          ``(ii) An evaluation of whether assistance 
                      provided under this subsection is necessary to 
                      maintain such markets.
                          ``(iii) A thorough accounting of the 
                      expenditure by the eligible trade organization of 
                      the assistance provided under this subsection.
            ``(6) Restrictions on use of funds.--Assistance provided 
        under this subsection to an eligible trade organization may not 
        be used--
                    ``(A) to provide direct assistance to any foreign 
                for-profit corporation for the corporation's use in 
                promoting foreign-produced products; or

[[Page 132 STAT. 4611]]

                    ``(B) to provide direct assistance to any for-profit 
                corporation that is not recognized as a small business 
                concern (as described in section 3(a) of the Small 
                Business Act (15 U.S.C. 632(a))), excluding--
                          ``(i) a cooperative;
                          ``(ii) an association described in the first 
                      section of the Act entitled `An Act To authorize 
                      association of producers of agricultural 
                      products', approved February 18, 1922 (7 U.S.C. 
                      291); or
                          ``(iii) a nonprofit trade association.
            ``(7) Permissive use of funds.--Assistance provided under 
        this subsection to a United States agricultural trade 
        association, cooperative, or small business may be used for 
        individual branded promotional activity related to a United 
        States branded product, if the beneficiaries of the activity 
        have provided funds for the activity in an amount that is at 
        least equivalent to the amount of such assistance.
            ``(8) Priority.--In providing assistance for branded 
        promotion, the Secretary should give priority to small-sized 
        entities.
            ``(9) Contribution level.--
                    ``(A) In general.--The Secretary should require a 
                minimum contribution level of 10 percent from an 
                eligible trade organization that receives assistance for 
                nonbranded promotion.
                    ``(B) Increases in contribution level.--The 
                Secretary may increase the contribution level in any 
                subsequent year that an eligible trade organization 
                receives assistance for nonbranded promotion.
            ``(10) Additionality.--The Secretary should require each 
        participant in the Market Access Program to certify that any 
        Federal funds received supplement, but do not supplant, private 
        or third party participant funds or other contributions to 
        Program activities.
            ``(11) Independent audits.--If as a result of an evaluation 
        or audit of activities of a participant under the Market Access 
        Program, the Secretary determines that a further review is 
        justified in order to ensure compliance with the requirements of 
        the Program, the Secretary should require the participant to 
        contract for an independent audit of the Program activities, 
        including activities of any subcontractor.
            ``(12) Tobacco.--No funds made available under the Market 
        Access Program may be used for activities to develop, maintain, 
        or expand foreign markets for tobacco.

    ``(c) Foreign Market Development Cooperator Program.--
            ``(1) Definition of eligible trade organization.--In this 
        subsection, the term `eligible trade organization' means a 
        United States trade organization that--
                    ``(A) promotes the export of 1 or more United States 
                agricultural commodities; and
                    ``(B) does not have a business interest in or 
                receive remuneration from specific sales of agricultural 
                commodities.
            ``(2) Establishment.--The Secretary shall establish and, in 
        cooperation with eligible trade organizations, carry out a 
        program to be known as the `Foreign Market Development

[[Page 132 STAT. 4612]]

        Cooperator Program' to maintain and develop foreign markets for 
        United States agricultural commodities.
            ``(3) Use of funds.--Funds made available to carry out this 
        subsection shall be used only to provide--
                    ``(A) cost-share assistance to an eligible trade 
                organization under a contract or agreement with the 
                eligible trade organization; and
                    ``(B) assistance for other costs that are 
                appropriate to carry out the Foreign Market Development 
                Cooperator Program, including contingent liabilities 
                that are not otherwise funded.

    ``(d) E (Kika) De La Garza Emerging Markets Program.--
            ``(1) Definition of emerging market.--In this subsection, 
        the term `emerging market' means any country, foreign territory, 
        customs union, or other economic market that the Secretary 
        determines--
                    ``(A) is taking steps toward a market-oriented 
                economy through the food, agriculture, or rural business 
                sectors of its economy; and
                    ``(B) has the potential to provide a viable and 
                significant market for United States agricultural 
                commodities.
            ``(2) Establishment.--The Secretary shall establish and 
        carry out a program, to be known as the `E (Kika) de la Garza 
        Emerging Markets Program'--
                    ``(A) to develop agricultural markets in emerging 
                markets; and
                    ``(B) to promote cooperation and exchange of 
                information between agricultural institutions and 
                agribusinesses in the United States and emerging 
                markets.
            ``(3) Development of agricultural systems.--
                    ``(A) In general.--
                          ``(i) Implementation.--To develop, maintain, 
                      or expand markets for exports of United States 
                      agricultural commodities, the Secretary shall make 
                      available to emerging markets the expertise of the 
                      United States--
                                    ``(I) to make assessments of food 
                                and rural business systems needs;
                                    ``(II) to make recommendations on 
                                measures necessary to enhance the 
                                effectiveness of the food and rural 
                                business systems described in subclause 
                                (I), including potential reductions in 
                                trade barriers; and
                                    ``(III) to identify and carry out 
                                specific opportunities and projects to 
                                enhance the effectiveness of the food 
                                and rural business systems described in 
                                subclause (I).
                          ``(ii) Extent of program.--The Secretary shall 
                      implement this subparagraph with respect to at 
                      least 3 emerging markets in each fiscal year.
                    ``(B) Experts from the united states.--The Secretary 
                may implement subparagraph (A) by providing--
                          ``(i) assistance to teams (consisting 
                      primarily of agricultural consultants, 
                      agricultural producers, other persons from the 
                      private sector, and government officials expert in 
                      assessing the food and rural business systems of 
                      other countries) to enable those teams to

[[Page 132 STAT. 4613]]

                      conduct the assessments, make the recommendations, 
                      and identify the opportunities and projects 
                      described in subparagraph (A)(i) in emerging 
                      markets;
                          ``(ii) for necessary subsistence and 
                      transportation expenses of--
                                    ``(I) United States food and rural 
                                business system experts, including 
                                United States agricultural producers and 
                                other United States individuals 
                                knowledgeable in agricultural and 
                                agribusiness matters, to enable such 
                                United States food and rural business 
                                system experts to assist in transferring 
                                knowledge and expertise to entities from 
                                emerging markets; and
                                    ``(II) individuals designated by 
                                emerging markets to enable such 
                                designated individuals to consult with 
                                such United States experts to enhance 
                                food and rural business systems of such 
                                emerging markets and to transfer 
                                knowledge and expertise to such emerging 
                                markets.
                    ``(C) Cost-sharing.--The Secretary shall encourage 
                the nongovernmental experts described in subparagraph 
                (B) to share the costs of, and otherwise assist in, the 
                participation of those experts in the E (Kika) de la 
                Garza Emerging Markets Program.
                    ``(D) Technical assistance.--The Secretary is 
                authorized to provide, or pay the necessary costs for, 
                technical assistance (including the establishment of 
                extension services) to enable individuals or other 
                entities to carry out recommendations, projects, and 
                opportunities in emerging markets, including 
                recommendations, projects, and opportunities described 
                in subclauses (II) and (III) of subparagraph (A)(i).
                    ``(E) Reports to secretary.--A team that receives 
                assistance under subparagraph (B)(i) shall prepare and 
                submit to the Secretary such reports as the Secretary 
                may require.
                    ``(F) Advisory committee.--To provide the Secretary 
                with information that may be useful to the Secretary in 
                carrying out this subsection, the Secretary may 
                establish an advisory committee composed of 
                representatives of the various sectors of the food and 
                rural business systems of the United States.
                    ``(G) Effect.--The authority provided under this 
                subsection shall be in addition to and not in place of 
                any other authority of the Secretary or the Commodity 
                Credit Corporation.

    ``(e) Technical Assistance for Specialty Crops.--
            ``(1) Establishment.--The Secretary of Agriculture shall 
        establish an export assistance program, in this subsection 
        referred to as the `program', to address existing or potential 
        unique barriers that prohibit or threaten the export of United 
        States specialty crops.
            ``(2) Purpose.--The program shall provide direct assistance 
        through public and private sector projects and technical 
        assistance, including through the program under section 2(e) of 
        the Competitive, Special, and Facilities Research Grant Act (7 
        U.S.C. 3157(e)), to remove, resolve, or mitigate existing or

[[Page 132 STAT. 4614]]

        potential sanitary, phytosanitary, and technical barriers to 
        trade.
            ``(3) Priority.--The program shall address time sensitive 
        and strategic market access projects based on--
                    ``(A) trade effect on market retention, market 
                access, and market expansion; and
                    ``(B) trade impact.
            ``(4) Multiyear projects.--The Secretary may provide 
        assistance under the program to a project for longer than a 5-
        year period if the Secretary determines that further assistance 
        would effectively support the purpose described in paragraph 
        (2).
            ``(5) Outreach and technical assistance.--The Secretary 
        shall--
                    ``(A) conduct outreach to inform eligible 
                organizations of the requirements of the program and the 
                process by which such organizations may submit proposals 
                for funding;
                    ``(B) provide technical assistance to eligible 
                organizations to assist in developing proposals and 
                complying with the requirements of the program; and
                    ``(C) solicit input from eligible organizations on 
                improvements to streamline and facilitate the provision 
                of assistance under this subsection.
            ``(6) Regulations and procedures.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Agriculture Improvement Act of 
                2018, the Secretary shall review program regulations, 
                procedures, and guidelines for assistance under this 
                subsection and make revisions to streamline, improve, 
                and clarify the application, approval and compliance 
                processes for such assistance, including revisions to 
                implement the requirements of paragraph (5).
                    ``(B) Considerations.--In reviewing and making 
                revisions under subparagraph (A), the Secretary shall 
                consider--
                          ``(i) establishing accountability standards 
                      that are appropriate for the size and scope of a 
                      project; and
                          ``(ii) establishing streamlined application 
                      and approval processes, including for smaller-
                      scale projects or projects to address time-
                      sensitive trade barriers.
            ``(7) Annual report.--Each year, the Secretary shall submit 
        to the appropriate committees of Congress a report that 
        contains, for the period covered by the report, a description 
        of--
                    ``(A) each factor that affects the export of 
                specialty crops, including each factor relating to any--
                          ``(i) significant sanitary or phytosanitary 
                      issue;
                          ``(ii) trade barrier; or
                          ``(iii) emerging sanitary or phytosanitary 
                      issue or trade barrier; and
                    ``(B)(i) any funds provided under subsection 
                (f)(3)(A)(iv) that were not obligated in a fiscal year; 
                and
                    ``(ii) the reason such funds were not obligated.

    ``(f) Funding and Administration.--

[[Page 132 STAT. 4615]]

            ``(1) Commodity credit corporation.--The Secretary shall use 
        the funds, facilities, and authorities of the Commodity Credit 
        Corporation to carry out this section.
            ``(2) Funding amount.--For each of fiscal years 2019 through 
        2023, of the funds of, or an equal value of commodities owned 
        by, the Commodity Credit Corporation, the Secretary shall use to 
        carry out this section $255,000,000, to remain available until 
        expended.
            ``(3) Allocation.--
                    ``(A) In general.--For each of fiscal years 2019 
                through 2023, the Secretary shall allocate funds to 
                carry out this section in accordance with the following:
                          ``(i) Market access program.--For market 
                      access activities authorized under subsection (b), 
                      of the funds of, or an equal value of commodities 
                      owned by, the Commodity Credit Corporation, not 
                      less than $200,000,000 for each fiscal year.
                          ``(ii) Foreign market development cooperator 
                      program.--To carry out subsection (c), of the 
                      funds of, or an equal value of commodities owned 
                      by, the Commodity Credit Corporation, not less 
                      than $34,500,000 for each fiscal year.
                          ``(iii) E (kika) de la garza emerging markets 
                      program.--To provide assistance under subsection 
                      (d), of the funds of, or an equal value of 
                      commodities owned by, the Commodity Credit 
                      Corporation, not more than $8,000,000 for each 
                      fiscal year.
                          ``(iv) Technical assistance for specialty 
                      crops.--To carry out subsection (e), of the funds 
                      of, or an equal value of the commodities owned by, 
                      the Commodity Credit Corporation, $9,000,000 for 
                      each fiscal year.
                          ``(v) Priority trade fund.--
                                    ``(I) In general.--In addition to 
                                the amounts allocated under clauses (i) 
                                through (iv), and notwithstanding any 
                                limitations in those clauses, as 
                                determined by the Secretary, for 1 or 
                                more programs under this section for 
                                authorized activities to access, 
                                develop, maintain, and expand markets 
                                for United States agricultural 
                                commodities, $3,500,000 for each fiscal 
                                year.
                                    ``(II) Considerations.--In 
                                allocating funds made available under 
                                subclause (I), the Secretary may 
                                consider providing a greater allocation 
                                to 1 or more programs under this section 
                                for which the amounts requested under 
                                applications exceed available funding 
                                for the 1 or more programs.
                    ``(B) Reallocation.--Any funds allocated under 
                clauses (i) through (iv) of subparagraph (A) that remain 
                unobligated one year after the end of the fiscal year in 
                which they are first made available shall be reallocated 
                to the priority trade fund under subparagraph (A)(v). To 
                the maximum extent practicable, the Secretary shall 
                allocate such reallocated funds to support exports of 
                those types of United States agricultural commodities 
                eligible for assistance under the program for which the 
                funds were originally allocated under subparagraph (A).

[[Page 132 STAT. 4616]]

            ``(4) Cuba.--Notwithstanding section 908 of the Trade 
        Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 
        7207) or any other provision of law, funds made available under 
        this section may be used to carry out the programs authorized 
        under subsections (b) and (c) in Cuba. Funds may not be used as 
        described in the previous sentence in contravention with 
        directives set forth under the National Security Presidential 
        Memorandum entitled `Strengthening the Policy of the United 
        States Toward Cuba' issued by the President on June 16, 2017, 
        during the period in which that memorandum is in effect.
            ``(5) Authorization of appropriations.--In addition to any 
        other amounts provided under this subsection, there are 
        authorized to be appropriated such sums as are necessary to 
        carry out the programs and authorities under paragraph (3)(A)(v) 
        and subsections (b) through (e).''.

    (b) Conforming Amendments.--
            (1) Market access program.--
                    (A) Section 211 of the Agricultural Trade Act of 
                1978 (7 U.S.C. 5641) is amended by striking subsection 
                (c).
                    (B) Section 402(a)(1) of the Agricultural Trade Act 
                of 1978 (7 U.S.C. 5662(a)(1)) is amended by striking 
                ``203'' and inserting ``203(b)''.
                    (C) Section 282(f)(2)(C) of the Agricultural 
                Marketing Act of 1946 (7 U.S.C. 1638a(f)(2)(C)) is 
                amended by striking ``section 203 of the Agricultural 
                Trade Act of 1978 (7 U.S.C. 5623)'' and inserting 
                ``section 203(b) of the Agricultural Trade Act of 1978 
                (7 U.S.C. 5623(b))''.
                    (D) Section 718 of the Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Agencies Appropriations Act, 1999 (7 U.S.C. 5623 note; 
                Public Law 105-277) is amended by striking ``section 203 
                of the Agricultural Trade Act of 1978 (7 U.S.C. 5623)'' 
                and inserting ``section 203(b) of the Agricultural Trade 
                Act of 1978 (7 U.S.C. 5623(b)''.
                    (E) Section 1302 of the Omnibus Budget 
                Reconciliation Act of 1993 <<NOTE: 7 USC 5623 note.>>  
                is repealed.
            (2) Foreign market development cooperator program.--Title 
        VII of the Agricultural Trade Act of 1978 (7 U.S.C. 5721 et 
        seq.) <<NOTE: 7 USC 5721-5723.>>  is repealed.
            (3) E (kika) de la garza emerging markets program.--
                    (A) Section 1542 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C 5622 note; 
                Public Law 101-624) is amended--
                          (i) by striking subsection (d);
                          (ii) by redesignating subsections (e) and (f) 
                      as subsections (d) and (e), respectively; and
                          (iii) in subsection (e) (as so redesignated)--
                                    (I) in the matter preceding 
                                paragraph (1), by striking ``country'' 
                                and inserting ``country, foreign 
                                territory, customs union, or other 
                                economic market''; and
                                    (II) in paragraph (1), by striking 
                                ``the economy of the country'' and 
                                inserting ``its economy''.
                    (B) Section 1543(b)(5) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 
                3293(b)(5))

[[Page 132 STAT. 4617]]

                is amended by striking ``section 1542(f)'' and inserting 
                ``section 1542(e)''.
                    (C) Section 1543A(c)(2) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 
                5679(c)(2)) is amended by inserting ``and section 203(d) 
                of the Agricultural Trade Act of 1978'' after ``section 
                1542''.
            (4) Technical assistance for specialty crops.--Section 3205 
        of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        5680) is repealed.

                Subtitle C--Other Agricultural Trade Laws

SEC. 3301. GROWING AMERICAN FOOD EXPORTS.

    Section 1543A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5679) is amended--
            (1) in subsection (b)(1)(A), by inserting ``or new 
        agricultural production technologies'' after ``biotechnology''; 
        and
            (2) in subsection (d), by striking ``$6,000,000'' and all 
        that follows through the period at the end and inserting 
        ``$2,000,000 for each of fiscal years 2019 through 2023.''.
SEC. 3302. FOOD FOR PROGRESS ACT OF 1985.

    Section 1110 of the Food Security Act of 1985 (also known as the 
Food for Progress Act of 1985 (7 U.S.C. 1736o)) is amended--
            (1) by striking ``President'' each place it appears and 
        inserting ``Secretary'';
            (2) in subsection (b)--
                    (A) in paragraph (5)--
                          (i) by striking ``and'' at the end of 
                      subparagraph (E);
                          (ii) by redesignating subparagraph (F) as 
                      subparagraph (G); and
                          (iii) by inserting after subparagraph (E) the 
                      following new subparagraph:
                    ``(F) a college or university (as such terms are 
                defined in section 1404(4) of the Food and Agriculture 
                Act of 1977 (7 U.S.C. 3103(4)); and''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(10) Rate of return.--For purposes of applying subsection 
        (j)(3), the rate of return for an eligible commodity shall be 
        equal to the proportion that--
                    ``(A) the proceeds eligible entities generate 
                through monetization of such commodity, bears to
                    ``(B) the cost to the Federal Government to procure 
                and ship the commodity to the country where it is 
                monetized.
            ``(11) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.'';
            (3) in subsection (f)(3), by striking ``2018'' and inserting 
        ``2023'';
            (4) in subsection (g), by striking ``2018'' and inserting 
        ``2023'';
            (5) in subsection (j)(3)--
                    (A) by striking ``December 1'' and inserting ``April 
                1'';
                    (B) by striking ``of the Senate a list of programs'' 
                and inserting ``of the Senate--

[[Page 132 STAT. 4618]]

    ``(A) a list of programs'';
                    (C) by striking ``approved to date for the fiscal 
                year'' and inserting ``approved during the prior fiscal 
                year'';
                    (D) by striking the period at the end and inserting 
                a semicolon; and
                    (E) by adding at the end the following new 
                subparagraphs:
                    ``(B) a description of the actual rate of return for 
                each commodity made available under this section for the 
                previous fiscal year including--
                          ``(i) factors that influenced the rate of 
                      return; and
                          ``(ii) with respect to the commodity, the 
                      costs of bagging or further processing, ocean 
                      transportation, inland transportation, storage 
                      costs, and any other information that the 
                      Secretary determines to be necessary; and
                    ``(C) for each instance in which a commodity was 
                made available under this section at a rate of return 
                less than 70 percent, an explanation for the rate of 
                return realized.''.
            (6) in subsection (k), by striking ``2018'' and inserting 
        ``2023'';
            (7) in subsection (l)(1), by striking ``2018'' and inserting 
        ``2023'';
            (8) in the heading of subsection (m), by striking 
        ``Presidential'' and inserting ``Secretarial'';
            (9) in subsection (o), by striking ``(acting through the 
        Secretary)'';
            (10) in subsection (o)(1), by striking ``subparagraphs (C) 
        and (F)'' and inserting ``subparagraphs (C) and (G)''; and
            (11) by adding at the end the following new subsection:.

    ``(p) Pilot Agreements.--
            ``(1) In general.--For each of fiscal years 2019 through 
        2023, subject to the availability of appropriations pursuant to 
        the authorization in paragraph (3), the Secretary shall enter 
        into 1 or more pilot agreements with 1 or more eligible entities 
        through which the Secretary shall provide financial assistance 
        to the eligible entities to carry out activities consistent with 
        subsection (l)(4)(A).
            ``(2) Report required.--In each of fiscal years 2020 through 
        2024, the Secretary shall submit to the Committee on Agriculture 
        of the House of Representatives and Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report describing, with 
        respect to the previous fiscal year--
                    ``(A) the amount provided to eligible entities under 
                each pilot agreement pursuant to paragraph (1) and how 
                the funds were used;
                    ``(B) the activities carried out under each pilot 
                agreement;
                    ``(C) the number of direct and indirect 
                beneficiaries of those activities; and
                    ``(D) the effectiveness of the pilot agreements, 
                including as applicable the impact on food security and 
                agricultural productivity.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out pilot agreements pursuant to 
        this subsection $10,000,000 for each of fiscal years 2019 
        through 2023.''.

[[Page 132 STAT. 4619]]

SEC. 3303. BILL EMERSON HUMANITARIAN TRUST ACT.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended--
            (1) in subsection (b)(2)(B)(i), by striking ``2018'' each 
        place it appears and inserting ``2023''; and
            (2) in subsection (h), by striking ``2018'' each place it 
        appears and inserting ``2023''.
SEC. 3304. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

    Section 1542(a) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended by 
striking ``2018'' and inserting ``2023''.
SEC. 3305. COCHRAN FELLOWSHIP PROGRAM.

    Section 1543 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 3293) is amended--
            (1) in subsection (a), by striking ``for study in the United 
        States.'' and inserting the following: ``for study--
            ``(1) in the United States; or
            ``(2) at a college or university located in an eligible 
        country that the Secretary determines--
                    ``(A) has sufficient scientific and technical 
                facilities;
                    ``(B) has established a partnership with at least 
                one college or university in the United States; and
                    ``(C) has substantial participation by faculty 
                members of the United States college or university in 
                the design of the fellowship curriculum and classroom 
                instruction under the fellowship.'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``(which may 
                include agricultural extension services)'' after 
                ``systems''; and
                    (B) in paragraph (2)--
                          (i) by striking ``enhance trade'' and 
                      inserting the following: ``enhance--
                    ``(A) trade'';
                          (ii) in subparagraph (A) (as so designated) by 
                      striking the period at the end and inserting ``; 
                      or''; and
                          (iii) by adding at the end the following:
                    ``(B) linkages between agricultural interests in the 
                United States and regulatory systems governing sanitary 
                and phytosanitary standards for agricultural products 
                that--
                          ``(i) may enter the United States; and
                          ``(ii) may pose risks to human, animal, or 
                      plant life or health.''; and
            (3) in subsection (f)--
                    (A) in paragraph (1), by striking ``$3,000,000'' and 
                inserting ``$4,000,000'';
                    (B) in paragraph (2), by striking ``$2,000,000'' and 
                inserting ``$3,000,000''; and
                    (C) in paragraph (3), by striking ``$5,000,000'' and 
                inserting ``$6,000,000''.

[[Page 132 STAT. 4620]]

SEC. 3306. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND 
                          TECHNOLOGY FELLOWSHIP PROGRAM.

    Section 1473G of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3319j) is amended--
            (1) in subsection (c)(2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``shall support'' and inserting ``support'';
                    (B) in subparagraph (C), by striking ``and'' at the 
                end;
                    (C) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(E) the development of agricultural extension 
                services in eligible countries.''; and
            (2) in subsection (f)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Leveraging alumni engagement.--In carrying out the 
        purposes and programs under this section, the Secretary shall 
        encourage ongoing engagement with fellowship recipients who have 
        completed training under the program to provide advice 
        regarding, and participate in, new or ongoing agricultural 
        development projects, with a priority for capacity-building 
        projects.''.
SEC. 3307. <<NOTE: 7 USC 3295.>>  INTERNATIONAL AGRICULTURAL 
                          EDUCATION FELLOWSHIP PROGRAM.

    (a) Fellowship Program Establishment.--The Secretary shall establish 
a fellowship program to be known as the International Agricultural 
Education Fellowship Program to provide fellowships to citizens of the 
United States to assist eligible countries in developing school-based 
agricultural education and youth extension programs.
    (b) Eligible Country Described.--For purposes of this section, an 
eligible country is a developing country, as determined by the Secretary 
using a gross national income per capita test selected by the Secretary.
    (c) Purpose of Fellowships.--The goals of providing a fellowship 
under this section are to--
            (1) develop globally minded United States agriculturists 
        with experience living abroad;
            (2) focus on meeting the food and fiber needs of the 
        domestic population of eligible countries; and
            (3) strengthen and enhance trade linkages between eligible 
        countries and the United States agricultural industry.

    (d) Eligible Candidates.--The Secretary may provide fellowships to 
citizens of the United States who--
            (1) hold at least a bachelors degree in an agricultural 
        related field of study; and
            (2) have an understanding of United States school-based 
        agricultural education and youth extension programs, as 
        determined by the Secretary.

    (e) Candidate Identification.--The Secretary shall consult with the 
National FFA Organization, the National 4-H Council, and other entities 
as the Secretary determines are appropriate to identify candidates for 
fellowships.

[[Page 132 STAT. 4621]]

    (f) Program Implementation.--The Secretary shall provide for the 
management, coordination, evaluation, and monitoring of the Fellowship 
Program, except that the Secretary may contract out the management of 
the fellowship program to an outside organization with experience in 
implementing fellowship programs focused on building capacity for 
school-based agricultural education and youth extension programs in 
developing countries.
    (g) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        $5,000,000 to carry out this section for each of fiscal years 
        2019 through 2023.
            (2) Duration.--Any funds made available under this 
        subsection shall remain available until expended.
SEC. 3308. INTERNATIONAL FOOD SECURITY TECHNICAL ASSISTANCE.

    The Food, Agriculture, Conservation, and Trade Act of 1990 is 
amended by inserting after section 1543A (7 U.S.C. 5679) the following:
``SEC. 1543B. <<NOTE: 7 USC 1736dd.>>  INTERNATIONAL FOOD SECURITY 
                            TECHNICAL ASSISTANCE.

    ``(a) Definition of International Food Security.--In this section, 
the term `international food security' means access by any person at any 
time to food and nutrition that is sufficient for a healthy and 
productive life.
    ``(b) Collection of Information.--The Secretary of Agriculture 
(referred to in this section as the `Secretary') shall compile 
information from appropriate mission areas of the Department of 
Agriculture (including the Food, Nutrition, and Consumer Services 
mission area) relating to the improvement of international food 
security.
    ``(c) Public Availability.--To benefit programs for the improvement 
of international food security, the Secretary shall organize the 
information described in subsection (b) and make the information 
available in a format suitable for--
            ``(1) public education; and
            ``(2) use by--
                    ``(A) a Federal, State, or local agency;
                    ``(B) an agency or instrumentality of the government 
                of a foreign country;
                    ``(C) a domestic or international organization, 
                including a domestic or international nongovernmental 
                organization; and
                    ``(D) an intergovernmental organization.

    ``(d) Technical Assistance.--On request by an entity described in 
subsection (c)(2), the Secretary may provide technical assistance to the 
entity to implement a program for the improvement of international food 
security.
    ``(e) Program Priority.--In carrying out this section, the Secretary 
shall give priority to programs relating to the development of food and 
nutrition safety net systems with a focus on food insecure countries.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2019 through 2023.''.

[[Page 132 STAT. 4622]]

SEC. 3309. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND 
                          CHILD NUTRITION PROGRAM.

    Section 3107 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1736o-1) is amended--
            (1) in subsection (a)--
                    (A) by striking ``that is'' and inserting the 
                following: ``that--
            ``(1) is'';
                    (B) in paragraph (1) (as so designated), by striking 
                the period at the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(2)(A) is produced in and procured from--
                    ``(i) a developing country that is a recipient 
                country; or
                    ``(ii) a developing country in the same region as a 
                recipient country; and
            ``(B) at a minimum, meets each nutritional, quality, and 
        labeling standard of the recipient country, as determined by the 
        Secretary.'';
            (2) in subsection (c)(2)(A)--
                    (A) in clause (v)(IV), by striking ``and'' at the 
                end;
                    (B) by redesignating clause (vi) as clause (vii); 
                and
                    (C) by inserting after clause (v) the following:
                          ``(vi) the costs associated with transporting 
                      the commodities described in subsection (a)(2) 
                      from a developing country described in 
                      subparagraph (A)(ii) of that subsection to any 
                      designated point of entry within the recipient 
                      country; and'';
            (3) in subsection (f)(1)--
                    (A) by redesignating subparagraphs (E) and (F) as 
                subparagraphs (F) and (G), respectively; and
                    (B) by inserting after subparagraph (D) the 
                following:
                    ``(E) ensure to the maximum extent practicable that 
                assistance--
                          ``(i) is provided under this section in a 
                      timely manner; and
                          ``(ii) is available when needed throughout the 
                      applicable school year;''; and
            (4) in subsection (l)--
                    (A) in paragraph (2), by striking ``2018'' and 
                inserting ``2023''; and
                    (B) by adding at the end the following:
            ``(4) Purchase of commodities.--Of the funds made available 
        to carry out this section, not more than 10 percent shall be 
        used to purchase agricultural commodities described in 
        subsection (a)(2).''.
SEC. 3310. GLOBAL CROP DIVERSITY TRUST.

    Section 3202 of the Food, Conservation, and Energy Act of 2008 (22 
U.S.C. 2220a note; Public Law 110-246) is amended--
            (1) by amending subsection (b) to read as follows:

    ``(b) United States Contribution Limit.--
            ``(1) In general.--The aggregate contributions of funds of 
        the Federal Government provided to the Trust shall not exceed--

[[Page 132 STAT. 4623]]

                    ``(A) for the period of fiscal years 2014 through 
                2018, 25 percent of the total amount of funds 
                contributed to the Trust from all sources; and
                    ``(B) subject to paragraph (2), effective beginning 
                with fiscal year 2019, 33 percent of the total amount of 
                funds contributed to the Trust from all sources.
            ``(2) Annual limitation.--The contributions of funds of the 
        Federal Government provided to the Trust shall not exceed 
        $5,500,000 for each of fiscal years 2019 through 2023.''; and
            (2) in subsection (c), by striking ``2018'' and inserting 
        ``2023''.
SEC. 3311. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.

    Section 3206(e)(1) of the Food, Conservation, and Energy Act of 2008 
(7 U.S.C. 1726c(e)(1)) is amended--
            (1) by inserting ``to the Secretary'' after 
        ``appropriated''; and
            (2) by striking ``2014 through 2018'' and inserting ``2019 
        through 2023''.
SEC. 3312. <<NOTE: 7 USC 5608.>>  FOREIGN TRADE MISSIONS.

    (a) Tribal Representation on Trade Missions.--
            (1) In general.--The Secretary, in consultation with the 
        Tribal Advisory Committee established under subsection (b)(2) of 
        section 309 of the Federal Crop Insurance Reform and Department 
        of Agriculture Reorganization Act of 1994 (7 U.S.C. 6921(b)(2)) 
        (as added by section 12303(2)) (referred to in this section as 
        the ``Advisory Committee''), shall seek--
                    (A) to support the greater inclusion of Tribal 
                agricultural and food products in Federal trade-related 
                activities; and
                    (B) to increase the collaboration between Federal 
                trade promotion efforts and other Federal trade-related 
                activities in support of the greater inclusion sought 
                under subparagraph (A).
            (2) Interdepartmental coordination.--In carrying out 
        activities to increase the collaboration described in paragraph 
        (1)(B), the Secretary shall coordinate with--
                    (A) the Secretary of Commerce;
                    (B) the Secretary of State;
                    (C) the Secretary of the Interior; and
                    (D) the heads of any other relevant Federal 
                agencies.

    (b) Report; Goals.--
            (1) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall submit a report 
        describing the efforts of the Department of Agriculture and 
        other Federal agencies under this section to--
                    (A) the Advisory Committee;
                    (B) the Committee on Agriculture of the House of 
                Representatives;
                    (C) the Committee on Energy and Commerce of the 
                House of Representatives;
                    (D) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate;
                    (E) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (F) the Committee on Indian Affairs of the Senate.

[[Page 132 STAT. 4624]]

            (2) Goals.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall establish goals for 
        measuring, in an objective and quantifiable format, the extent 
        to which Indian Tribes and Tribal agricultural and food products 
        are included in the trade-related activities of the Department 
        of Agriculture.

                           TITLE IV--NUTRITION

          Subtitle A--Supplemental Nutrition Assistance Program

SEC. 4001. REQUIREMENTS FOR ONLINE ACCEPTANCE OF BENEFITS.

    (a) Definition.--Section 3(o)(1) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2012(o)(1)) is amended by striking ``or house-to-house 
trade route'' and inserting ``, house-to-house trade route, or online 
entity''.
    (b) Acceptance of Benefits.--Section 7(k) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2016(k)) is amended--
            (1) by striking the heading and inserting ``Acceptance of 
        Program Benefits Through Online Transactions'',
            (2) in paragraph (4) by striking subparagraph (C), and
            (3) by striking paragraph (5).
SEC. 4002. RE-EVALUATION OF THRIFTY FOOD PLAN.

    Section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2012(u)) is amended by inserting after the 1st sentence the following:
``By 2022 and at 5-year intervals thereafter, the Secretary shall re-
evaluate and publish the market baskets of the thrifty food plan based 
on current food prices, food composition data, consumption patterns, and 
dietary guidance.''.
SEC. 4003. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

    (a) In General.--Section 4(b) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2013(b)) is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) Administrative costs.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall pay not less than 80 percent of 
                administrative costs and distribution costs on Indian 
                reservations as the Secretary determines necessary for 
                effective administration of such distribution by a State 
                agency or tribal organization.
                    ``(B) Waiver.--The Secretary shall waive up to 100 
                percent of the non-Federal share of the costs described 
                in subparagraph (A) if the Secretary determines that--
                          ``(i) the tribal organization is financially 
                      unable to provide a greater non-Federal share of 
                      the costs; or
                          ``(ii) providing a greater non-Federal share 
                      of the costs would be a substantial burden for the 
                      tribal organization.
                    ``(C) Limitation.--The Secretary may not reduce any 
                benefits or services under the food distribution program 
                on Indian reservations under this subsection to any 
                tribal

[[Page 132 STAT. 4625]]

                organization that is granted a waiver under subparagraph 
                (B).
                    ``(D) Tribal contribution.--The Secretary may allow 
                a tribal organization to use funds provided to the 
                tribal organization through a Federal agency or other 
                Federal benefit to satisfy all or part of the non-
                Federal share of the costs described in subparagraph (A) 
                if that use is otherwise consistent with the purpose of 
                the funds.'',
            (2) in paragraph (6)--
                    (A) in the heading by striking ``locally-grown'' and 
                inserting ``locally- and regionally-grown'',
                    (B) in subparagraph (A) by striking ``locally-
                grown'' and inserting ``locally- and regionally-grown'',
                    (C) in subparagraph (C)--
                          (i) in the heading by striking ``locally 
                      grown'' and inserting ``locally- and regionally-
                      grown'', and
                          (ii) by striking ``locally-grown'' and 
                      inserting ``locally- and regionally-grown'',
                    (D) by amending subparagraph (D) to read as follows:
                    ``(D) Purchase of foods.--In carrying out this 
                paragraph, the Secretary shall purchase or offer to 
                purchase those traditional foods that may be procured 
                cost-effectively.'',
                    (E) by striking subparagraph (E), and
                    (F) in subparagraph (F)--
                          (i) by striking ``(F)'' and inserting ``(E)'', 
                      and
                          (ii) by striking ``2018'' and inserting 
                      ``2023'', and
            (3) by adding at the end the following:
            ``(7) Availability of funds.--
                    ``(A) In general.--Funds made available for a fiscal 
                year to carry out this subsection shall remain available 
                for obligation for a period of 2 fiscal years.
                    ``(B) Administrative costs.--Funds made available 
                for a fiscal year to carry out paragraph (4) shall 
                remain available for obligation by the State agency or 
                tribal organization for a period of 2 fiscal years.''.

    (b) <<NOTE: 7 USC 2013 note.>>  Demonstration Project for Tribal 
Organizations.--
            (1) Definitions.--In this subsection:
                    (A) Demonstration project.--The term ``demonstration 
                project'' means the demonstration project established 
                under paragraph (2).
                    (B) Food distribution program.--The term ``food 
                distribution program'' means the food distribution 
                program on Indian reservations carried out under section 
                4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
                2013(b)).
                    (C) Indian reservation.--The term ``Indian 
                reservation'' has the meaning given the term 
                ``reservation'' in section 3 of the Food and Nutrition 
                Act of 2008 (7 U.S.C. 2012).
                    (D) Indian tribe.--The term ``Indian tribe'' has the 
                meaning given the term in section 4 of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                5304).
                    (E) Self-determination contract.--The term ``self-
                determination contract'' has the meaning given the term 
                in section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 5304).

[[Page 132 STAT. 4626]]

                    (F) Tribal organization.--The term ``tribal 
                organization'' has the meaning given the term in section 
                3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012).
            (2) Establishment.--Subject to the availability of 
        appropriations, the Secretary shall establish a demonstration 
        project under which 1 or more tribal organizations may enter 
        into self-determination contracts to purchase agricultural 
        commodities under the food distribution program for the Indian 
        reservation of that tribal organization.
            (3) Eligibility.--
                    (A) Consultation.--The Secretary shall consult with 
                the Secretary of the Interior and Indian tribes to 
                determine the process and criteria under which a tribal 
                organization may participate in the demonstration 
                project.
                    (B) Criteria.--The Secretary shall select for 
                participation in the demonstration project tribal 
                organizations that--
                          (i) are successfully administering the food 
                      distribution program of the tribal organization 
                      under section 4(b)(2)(B) of the Food and Nutrition 
                      Act of 2008 (7 U.S.C. 2013(b)(2)(B)),
                          (ii) have the capacity to purchase 
                      agricultural commodities in accordance with 
                      paragraph (4) for the food distribution program of 
                      the tribal organization, and
                          (iii) meet any other criteria determined by 
                      the Secretary, in consultation with the Secretary 
                      of the Interior and Indian tribes.
            (4) Procurement of agricultural commodities.--Any 
        agricultural commodities purchased by a tribal organization 
        under the demonstration project shall--
                    (A) be domestically produced,
                    (B) supplant, not supplement, the type of 
                agricultural commodities in existing food packages for 
                that tribal organization,
                    (C) be of similar or higher nutritional value as the 
                type of agricultural commodities that would be 
                supplanted in the existing food package for that tribal 
                organization, and
                    (D) meet any other criteria determined by the 
                Secretary.
            (5) Report.--Not later than 1 year after the date on which 
        funds are appropriated under paragraph (6) and annually 
        thereafter, the Secretary shall submit to the Committee on 
        Agriculture of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        describing the activities carried out under the demonstration 
        project during the preceding year.
            (6) Funding.--
                    (A) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to carry 
                out this subsection $5,000,000, to remain available 
                until expended.
                    (B) Appropriations in advance.--Only funds 
                appropriated under subparagraph (A) in advance 
                specifically to carry out this subsection shall be 
                available to carry out this subsection.

[[Page 132 STAT. 4627]]

    (c) Conforming Amendment.--Section 3(v) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2012(v)) is amended by striking ``the Indian Self-
Determination Act (25 U.S.C. 450b(b))'' and inserting ``section 4 of the 
Indian Self-Determination and Education Assistance Act (25 U.S.C. 
5304)''.
SEC. 4004. SIMPLIFIED HOMELESS HOUSING COSTS.

    Section 5(e)(6)(D) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(6)(D)) is amended--
            (1) by redesignating clause (ii) as clause (iii), and
            (2) by striking clause (i) and inserting the following:
                          ``(i) Alternative deduction.--The State agency 
                      shall allow a deduction of $143 a month for 
                      households--
                                    ``(I) in which all members are 
                                homeless individuals;
                                    ``(II) that are not receiving free 
                                shelter throughout the month; and
                                    ``(III) that do not opt to claim an 
                                excess shelter expense deduction under 
                                subparagraph (A).
                          ``(ii) Adjustment.--For fiscal year 2019 and 
                      each subsequent fiscal year the amount of the 
                      homeless shelter deduction specified in clause (i) 
                      shall be adjusted to reflect changes for the 12-
                      month period ending the preceding November 30 in 
                      the Consumer Price Index for All Urban Consumers 
                      published by the Bureau of Labor Statistics of the 
                      Department of Labor.''.
SEC. 4005. EMPLOYMENT AND TRAINING FOR SUPPLEMENTAL NUTRITION 
                          ASSISTANCE PROGRAM.

    (a) Employment and Training Programs That Meet State and Local 
Workforce Needs.--Section 6(d)(4) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2015(d)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i)--
                          (i) by inserting ``, in consultation with the 
                      State workforce development board, or, if the 
                      State demonstrates that consultation with private 
                      employers or employer organizations would be more 
                      effective or efficient, in consultation with 
                      private employers or employer organizations,'' 
                      after ``designed by the State agency'', and
                          (ii) by striking ``that will increase their 
                      ability to obtain regular employment.'' and 
                      inserting the following: ``that will--
                                    ``(I) increase the ability of the 
                                household members to obtain regular 
                                employment; and
                                    ``(II) meet State or local workforce 
                                needs.'', and
                    (B) in clause (ii) by inserting ``and implemented to 
                meet the purposes of clause (i)'' after ``under this 
                paragraph'',
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by inserting 
                ``case management services such as comprehensive intake

[[Page 132 STAT. 4628]]

                assessments, individualized service plans, progress 
                monitoring, or coordination with service providers and'' 
                after ``contains'',
                    (B) in clause (iv) by redesignating subclauses (I) 
                and (II) as items (aa) and (bb), respectively, and 
                indenting appropriately,
                    (C) by redesignating clauses (i) through (vii) and 
                clause (viii) as subclauses (I) through (VII) and 
                subclause (IX), respectively, and indenting 
                appropriately,
                    (D) by striking subclause (I), as so redesignated, 
                and inserting the following:
                                    ``(I) Supervised job search programs 
                                that occur at State-approved locations 
                                at which the activities of participants 
                                shall be directly supervised and the 
                                timing and activities of participants 
                                tracked in accordance with guidelines 
                                issued by the State.'',
                    (E) in subclause (II), as so redesignated, by 
                striking ``jobs skills assessments, job finding clubs, 
                training in techniques for'' and inserting 
                ``employability assessments, training in techniques to 
                increase'',
                    (F) in subclause (IV), as so redesignated, in the 
                first sentence, by inserting ``, including subsidized 
                employment and apprenticeships'' before the period at 
                the end,
                    (G) in subclause (VII), as so redesignated, by 
                inserting ``not less than 30 days but'' after ``period 
                of'',
                    (H) by inserting after subclause (VII), as so 
                redesignated, the following:
                                    ``(VIII) Programs and activities 
                                under clause (iv) of section 16(h)(1)(F) 
                                that the Secretary determines, based on 
                                results from the independent evaluations 
                                conducted under clause (vii)(I) of such 
                                section, have the most demonstrable 
                                impact on the ability of participants to 
                                find and retain employment that leads to 
                                increased household income and reduced 
                                reliance on public assistance.'',
                    (I) in the matter preceding subclause (I), as so 
                redesignated--
                          (i) by striking ``this subparagraph'' and 
                      inserting ``this clause'', and
                          (ii) by striking ``(B) For purposes of this 
                      Act, an'' and inserting the following:
                    ``(B) Definitions.--In this Act:
                          ``(i) Employment and training program.--The 
                      term'', and
                    (J) by adding at the end the following:
                          ``(ii) Workforce partnership.--
                                    ``(I) In general.--The term 
                                `workforce partnership' means a program 
                                that--
                                            ``(aa) is operated by--
                                                ``(AA) a private 
                                            employer, an organization 
                                            representing private 
                                            employers, or a nonprofit 
                                            organization providing 
                                            services relating to 
                                            workforce development; or
                                                ``(BB) an entity 
                                            identified as an eligible 
                                            provider of training 
                                            services under section 
                                            122(d) of the Workforce 
                                            Innovation and Opportunity 
                                            Act (29 U.S.C. 3152(d));

[[Page 132 STAT. 4629]]

                                            ``(bb) the Secretary 
                                        certifies, or the State agency 
                                        certifies to the Secretary--
                                                ``(AA) subject to 
                                            subparagraph (N)(ii), would 
                                            assist participants who are 
                                            members of households 
                                            participating in the 
                                            supplemental nutrition 
                                            assistance program in 
                                            gaining high-quality, work-
                                            relevant skills, training, 
                                            work, or experience that 
                                            will increase the ability of 
                                            the participants to obtain 
                                            regular employment;
                                                ``(BB) subject to 
                                            subparagraph (N)(ii), would 
                                            provide participants with 
                                            not less than 20 hours per 
                                            week of training, work, or 
                                            experience under subitem 
                                            (AA);
                                                ``(CC) would not use any 
                                            funds authorized to be 
                                            appropriated by this Act;
                                                ``(DD) would provide 
                                            sufficient information, on 
                                            request by the State agency, 
                                            for the State agency to 
                                            determine that participants 
                                            who are members of 
                                            households participating in 
                                            the supplemental nutrition 
                                            assistance program are 
                                            fulfilling any applicable 
                                            work requirement under this 
                                            subsection or subsection 
                                            (o);
                                                ``(EE) would be willing 
                                            to serve as a reference for 
                                            participants who are members 
                                            of households participating 
                                            in the supplemental 
                                            nutrition assistance program 
                                            for future employment or 
                                            work-related programs; and
                                                ``(FF) meets any other 
                                            criteria established by the 
                                            Secretary, on the condition 
                                            that the Secretary shall not 
                                            establish any additional 
                                            criteria that would impose 
                                            significant paperwork 
                                            burdens on the workforce 
                                            partnership; and
                                            ``(cc) is in compliance with 
                                        the Fair Labor Standards Act of 
                                        1938 (29 U.S.C. 201 et seq.), if 
                                        applicable.
                                    ``(II) Inclusion.--The term 
                                `workforce partnership' includes a 
                                multistate program.'',
            (3) in subparagraph (E)--
                    (A) in the second sentence, by striking ``Such 
                requirements'' and inserting the following:
                          ``(ii) Variation.--The requirements under 
                      clause (i)'',
                    (B) by striking ``(E) Each State'' and inserting the 
                following:
                    ``(E) Requirements for participation for certain 
                individuals.--
                          ``(i) In general.--Each State'', and
                    (C) by adding at the end the following:
                          ``(iii) Application to workforce 
                      partnerships.--To the extent that a State agency 
                      requires an individual to participate in an 
                      employment and training program, the State agency 
                      shall consider an individual participating in a 
                      workforce partnership to be in

[[Page 132 STAT. 4630]]

                      compliance with the employment and training 
                      requirements.'',
            (4) in subparagraph (H), by striking ``(B)(v)'' and 
        inserting ``(B)(i)(V)'', and
            (5) by adding at the end the following:
                    ``(N) Workforce partnerships.--
                          ``(i) Certification.--In certifying that a 
                      program meets the requirements of subitems (AA) 
                      and (BB) of subparagraph (B)(ii)(I)(bb) to be 
                      certified as a workforce partnership, the 
                      Secretary or the State agency shall require that 
                      the program submit to the Secretary or State 
                      agency sufficient information that describes--
                                    ``(I) the services and activities of 
                                the program that would provide 
                                participants with not less than 20 hours 
                                per week of training, work, or 
                                experience under those subitems; and
                                    ``(II) how the program would provide 
                                services and activities described in 
                                subclause (I) that would directly 
                                enhance the employability or job 
                                readiness of the participant.
                          ``(ii) Supplement, not supplant.--A State 
                      agency may use a workforce partnership to 
                      supplement, not to supplant, the employment and 
                      training program of the State agency.
                          ``(iii) Participation.--A State agency--
                                    ``(I) shall--
                                            ``(aa) maintain a list of 
                                        workforce partnerships certified 
                                        under subparagraph 
                                        (B)(ii)(I)(bb); and
                                            ``(bb) not less frequently 
                                        than at certification and 
                                        recertification, provide to a 
                                        household member subject to work 
                                        requirements under subsection 
                                        (d)(1) or subsection (o), 
                                        electronically or by other 
                                        means, the list described in 
                                        item (aa); but
                                    ``(II) may not require any member of 
                                a household participating in the 
                                supplemental nutrition assistance 
                                program to participate in a workforce 
                                partnership.
                          ``(iv) Effect.--
                                    ``(I) In general.--A workforce 
                                partnership shall not replace the 
                                employment or training of an individual 
                                not participating in the workforce 
                                partnership.
                                    ``(II) Selection.--Nothing in this 
                                subsection or subsection (o) affects the 
                                criteria or screening process for 
                                selecting participants by a workforce 
                                partnership.
                          ``(v) Limitation on reporting requirements.--
                      In carrying out this subparagraph, the Secretary 
                      and each applicable State agency shall limit the 
                      reporting requirements of a workforce partnership 
                      to--
                                    ``(I) on notification that an 
                                individual is receiving supplemental 
                                nutrition assistance program benefits, 
                                notifying the applicable State

[[Page 132 STAT. 4631]]

                                agency that the individual is 
                                participating in the workforce 
                                partnership;
                                    ``(II) identifying participants who 
                                have completed or are no longer 
                                participating in the workforce 
                                partnership;
                                    ``(III) identifying changes to the 
                                workforce partnership that result in the 
                                workforce partnership no longer meeting 
                                the certification requirements of the 
                                Secretary or the State agency under 
                                subparagraph (B)(ii)(I)(bb); and
                                    ``(IV) providing sufficient 
                                information, on request by the State 
                                agency, for the State agency to verify 
                                that a participant is fulfilling any 
                                applicable work requirements under this 
                                subsection or subsection (o).
                    ``(O) Referral of certain individuals.--
                          ``(i) In general.--In accordance with such 
                      regulations as may be issued by the Secretary, 
                      with respect to any individual who is not eligible 
                      for an exemption under paragraph (2) and who is 
                      determined by the operator of an employment and 
                      training program component to be ill-suited to 
                      participate in that employment and training 
                      program component, the State agency shall--
                                    ``(I) refer the individual to an 
                                appropriate employment and training 
                                program component;
                                    ``(II) refer the individual to an 
                                appropriate workforce partnership, if 
                                available;
                                    ``(III) reassess the physical and 
                                mental fitness of the individual under 
                                paragraph (1)(A); or
                                    ``(IV) to the maximum extent 
                                practicable, coordinate with other 
                                Federal, State, or local workforce or 
                                assistance programs to identify work 
                                opportunities or assistance for the 
                                individual.
                          ``(ii) Process.--In carrying out clause (i), 
                      the State agency shall ensure that an individual 
                      undergoing and complying with the process 
                      established under that clause shall not be found 
                      to have refused without good cause to participate 
                      in an employment and training program.''.

    (b) Work Requirements.--Section 6(o) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2015(o)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B) by striking ``and'' at the 
                end,
                    (B) in subparagraph (C) by striking ``job search 
                program or a job search training program.'' and 
                inserting ``supervised job search program or job search 
                training program;'', and
                    (C) by adding at the end the following:
                    ``(D) a program of employment and training for 
                veterans operated by the Department of Labor or the 
                Department of Veterans Affairs, and approved by the 
                Secretary; and
                    ``(E) a workforce partnership under subsection 
                (d)(4)(N).'',
            (2) in paragraph (4)(A) by inserting ``and with the support 
        of the chief executive officer of the State'' after ``agency'', 
        and

[[Page 132 STAT. 4632]]

            (3) in paragraph (6)--
                    (A) in the heading by striking ``15-percent 
                exemption'' and inserting ``Exemptions'',
                    (B) in subparagraph (B) by striking ``(G)'' and 
                inserting ``(H)'',
                    (C) in subparagraph (C) by striking ``(E) and (G)'' 
                and inserting ``(F) and (H)'' ,
                    (D) in subparagraph (D)--
                          (i) in the heading by striking ``Subsequent 
                      fiscal years'' and inserting ``Fiscal years 1999 
                      through 2019'',
                          (ii) by striking ``(E) through (G)'' and 
                      inserting ``(F) through (H)'', and
                          (iii) by striking ``year,'' and inserting 
                      ``year through fiscal year 2019,'',
                    (E) in subparagraph (E) by striking ``or (D)'' and 
                inserting ``, (D), or (E)'',
                    (F) by redesignating subparagraphs (E), (F), and (G) 
                as subparagraphs (F), (G), and (H), respectively, and
                    (G) by inserting after subparagraph (D) the 
                following:
                    ``(E) Subsequent fiscal years.--Subject to 
                subparagraphs (F) through (H), for fiscal year 2020 and 
                each subsequent fiscal year, a State agency may provide 
                a number of exemptions such that the average monthly 
                number of exemptions in effect during the fiscal year 
                does not exceed 12 percent of the number of covered 
                individuals in the State, as estimated by the Secretary 
                under subparagraph (C), adjusted by the Secretary to 
                reflect changes in the State's caseload and the 
                Secretary's estimate of changes in the proportion of 
                members of households that receive supplemental 
                nutrition assistance program benefits covered by waivers 
                granted under paragraph (4).''.

    (c) State Plans.--Section 11 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2020) is amended--
            (1) in subsection (e)(19) by inserting ``the extent to which 
        such programs will be carried out in coordination with the 
        activities carried out under title I of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3111 et seq.),'' before ``and the 
        basis,'', and
            (2) by adding at the end the following:

    ``(w) For households containing at least one adult, with no elderly 
or disabled members and with no earned income at their last 
certification or required report, a State agency shall, at the time of 
recertification, be required to advise members of the household not 
exempt under section 6(d)(2) regarding available employment and training 
services.''.
    (d) Funding of Employment and Training Programs.--Section 16(h) of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A) by striking ``$90,000,000'' 
                and inserting ``$103,900,000'',
                    (B) in subparagraph (C)--
                          (i) in clause (i) by inserting ``, subject to 
                      clauses (ii) through (v),'' after ``(B), the 
                      Secretary'', and
                          (ii) by adding at the end the following:

[[Page 132 STAT. 4633]]

                          ``(iv) Priority.--The Secretary shall 
                      reallocate funds under this subparagraph as 
                      follows:
                                    ``(I)(aa) Subject to items (bb) and 
                                (cc), not less than 50 percent shall be 
                                reallocated to State agencies requesting 
                                such funds to conduct employment and 
                                training programs and activities for 
                                which such State agencies had previously 
                                received funding under subparagraph 
                                (F)(viii) that the Secretary determines 
                                have the most demonstrable impact on the 
                                ability of participants to find and 
                                retain employment that leads to 
                                increased household income and reduced 
                                reliance on public assistance.
                                    ``(bb) The Secretary shall base the 
                                determination under item (aa) on--
                                            ``(AA) project results from 
                                        the independent evaluations 
                                        conducted under subparagraph 
                                        (F)(vii)(I); or
                                            ``(BB) if the project 
                                        results from the independent 
                                        evaluations conducted under 
                                        subparagraph (F)(vii)(I) are not 
                                        yet available, the reports under 
                                        subparagraph (F)(vii)(II) or 
                                        other information relating to 
                                        performance of the programs and 
                                        activities funded under 
                                        subparagraph (F)(viii).
                                    ``(cc) Employment and training 
                                activities funded under this subclause 
                                are not subject to subparagraph 
                                (F)(vii), but are subject to monitoring 
                                under paragraph (h)(5).
                                    ``(II) Not less than 30 percent 
                                shall be reallocated to State agencies 
                                requesting such funds to implement or 
                                continue employment and training 
                                programs and activities under section 
                                6(d)(4)(B)(i) that the Secretary 
                                determines have the most demonstrable 
                                impact on the ability of participants to 
                                find and retain employment that leads to 
                                increased household income and reduced 
                                reliance on public assistance, including 
                                programs and activities that are 
                                targeted to--
                                            ``(aa) individuals 50 years 
                                        of age or older;
                                            ``(bb) formerly incarcerated 
                                        individuals;
                                            ``(cc) individuals 
                                        participating in a substance 
                                        abuse treatment program;
                                            ``(dd) homeless individuals;
                                            ``(ee) people with 
                                        disabilities seeking to enter 
                                        the workforce;
                                            ``(ff) other individuals 
                                        with substantial barriers to 
                                        employment; or
                                            ``(gg) households facing 
                                        multi-generational poverty, to 
                                        support employment and workforce 
                                        participation through an 
                                        integrated and family-focused 
                                        approach in providing supportive 
                                        services.
                                    ``(III) The Secretary shall 
                                reallocate any remaining funds available 
                                under this subparagraph, to State 
                                agencies requesting such funds to use 
                                for employment and training programs and

[[Page 132 STAT. 4634]]

                                activities that the Secretary determines 
                                have the most demonstrable impact on the 
                                ability of participants to find and 
                                retain employment that leads to 
                                increased household income and reduced 
                                reliance on public assistance under 
                                section 6(d)(4)(B)(i).
                          ``(v) Consideration.--In reallocating funds 
                      under this subparagraph, a State agency that 
                      receives reallocated funds under clause (iv)(I) 
                      may also be considered for reallocated funding 
                      under clause (iv)(II).'', and
                    (C) in subparagraph (D) by striking ``$50,000'' and 
                inserting ``$100,000'', and
            (2) in paragraph (5)(B) by adding at the end the following:
                          ``(v) State option.--The State agency may 
                      report relevant data from a workforce partnership 
                      carried out under section 6(d)(4)(N) to 
                      demonstrate the number of program participants 
                      served by the workforce partnership.''.

    (e) Expired Authority.--Section 17(b) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2026(b)) is amended--
            (1) by striking paragraph (2), and
            (2) by redesignating paragraph (3) as paragraph (2).
SEC. 4006. IMPROVEMENTS TO ELECTRONIC BENEFIT TRANSFER SYSTEM.

    (a) EBT Portability.--Section 7(f)(5) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2016(f)(5)) is amended by adding at the end the 
following:
                    ``(C) Operation of individual point of sale device 
                by farmers' markets and direct marketing farmers.--A 
                farmers' market or direct marketing farmer that is 
                exempt under paragraph (2)(B)(i) shall be allowed to 
                operate an individual electronic benefit transfer point 
                of sale device at more than 1 location under the same 
                supplemental nutrition assistance program authorization, 
                if--
                          ``(i) the farmers' market or direct marketing 
                      farmer provides to the Secretary information on 
                      location and hours of operation at each location; 
                      and
                          ``(ii)(I) the point of sale device used by the 
                      farmers' market or direct marketing farmer is 
                      capable of providing location information of the 
                      device through the electronic benefit transfer 
                      system; or
                          ``(II) if the Secretary determines that the 
                      technology is not available for a point of sale 
                      device to meet the requirement under subclause 
                      (I), the farmers' market or direct marketing 
                      farmer provides to the Secretary any other 
                      information, as determined by the Secretary, 
                      necessary to ensure the integrity of transactions 
                      processed using the point of sale device.''.

    (b) Modernization of Electronic Benefit Transfer Regulations.--The 
1st sentence of section 7(h)(2) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2016(h)(2)) is amended by inserting ``and shall periodically 
review such regulations and modify such regulations to take into account 
evolving technology and comparable industry standards'' before the 
period at the end.
    (c) Benefit Recovery.--Section 7(h)(12) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2016(h)(12)) is amended--

[[Page 132 STAT. 4635]]

            (1) in subparagraph (A) by inserting ``, or due to the death 
        of all members of the household'' after ``inactivity'', and
            (2) by striking subparagraphs (B) and (C) and inserting the 
        following:
                    ``(B) Benefit storage.--
                          ``(i) In general.--A State agency may store 
                      recovered electronic benefits off-line in 
                      accordance with clause (ii), if the household has 
                      not accessed the account after 3 months.
                          ``(ii) Notice of benefit storage.--A State 
                      agency shall--
                                    ``(I) send notice to a household the 
                                benefits of which are stored under 
                                clause (i); and
                                    ``(II) not later than 48 hours after 
                                request by the household, make the 
                                stored benefits available to the 
                                household.
                    ``(C) Benefit expunging.--
                          ``(i) In general.--Subject to clause (ii), a 
                      State agency shall expunge benefits that have not 
                      been accessed by a household after a period of 9 
                      months, or upon verification that all members of 
                      the household are deceased.
                          ``(ii) Notice of benefit expunging.--Not later 
                      than 30 days before benefits are to be expunged 
                      under clause (i), a State agency shall--
                                    ``(I) provide sufficient notice to 
                                the household that benefits will be 
                                expunged due to inactivity, and the date 
                                upon which benefits will be expunged;
                                    ``(II) for benefits stored off-line 
                                in accordance with subparagraph (B), 
                                provide the household an opportunity to 
                                request that such benefits be restored 
                                to the household; and
                                    ``(III) not later than 48 hours 
                                after request by the household, make the 
                                benefits available to the household.''.

    (d) Prohibited Fees.--Section 7 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2016) is amended--
            (1) by amending subsection (h)(13) to read as follows:
            ``(13) Fees.--
                    ``(A) Interchange fees.--No interchange fees shall 
                apply to electronic benefit transfer transactions under 
                this subsection.
                    ``(B) Other fees.--Effective through fiscal year 
                2023, neither a State, nor any agent, contractor, or 
                subcontractor of a State who facilitates the provision 
                of supplemental nutrition assistance program benefits in 
                such State may impose a fee for switching (as defined in 
                subsection (j)(1)(H)) or routing such benefits.'', and
            (2) by amending subsection (j)(1)(H) to read as follows:
                    ``(H) Switching.--The term `switching' means the 
                routing of an intrastate or interstate transaction that 
                consists of transmitting the details of a transaction 
                electronically recorded through the use of an electronic 
                benefit transfer card in one State to the issuer of the 
                card that may be in the same or different State.''.

    (e) Mobile Technologies.--Section 7(h)(14) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2016(h)(14)) is amended--

[[Page 132 STAT. 4636]]

            (1) by amending subparagraph (A) to read as follows:
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall authorize the use of mobile technologies 
                for the purpose of accessing supplemental nutrition 
                assistance program benefits.'',
            (2) in subparagraph (B)--
                    (A) by striking the heading and inserting 
                ``Demonstration projects on access of benefits through 
                mobile technologies'',
                    (B) by amending clause (i) to read as follows:
                          ``(i) Demonstration projects.--Before 
                      authorizing implementation of subparagraph (A) in 
                      all States, the Secretary shall approve not more 
                      than 5 demonstration project proposals submitted 
                      by State agencies that will pilot the use of 
                      mobile technologies for supplemental nutrition 
                      assistance program benefits access.'',
                    (C) in clause (ii)--
                          (i) in the heading by striking ``Demonstration 
                      projects'' and inserting ``Project requirements'',
                          (ii) by striking ``retail food store'' the 
                      first place it appears and inserting ``State 
                      agency'',
                          (iii) by striking ``includes'',
                          (iv) by striking subclauses (I), (II), (III), 
                      and (IV), and inserting the following:
                                    ``(I) provides recipient protections 
                                regarding privacy, ease of use, 
                                household access to benefits, and 
                                support similar to the protections 
                                provided under existing methods;
                                    ``(II) ensures that all recipients, 
                                including those without access to mobile 
                                payment technology and those who shop 
                                across State borders, have a means of 
                                benefit access;
                                    ``(III) requires retail food stores, 
                                unless exempt under section 7(f)(2)(B), 
                                to bear the costs of acquiring and 
                                arranging for the implementation of 
                                point-of-sale equipment and supplies for 
                                the redemption of benefits that are 
                                accessed through mobile technologies;
                                    ``(IV) requires that foods purchased 
                                with benefits issued under this section 
                                through mobile technologies are 
                                purchased at a price not higher than the 
                                price of the same food purchased by 
                                other methods used by the retail food 
                                store, as determined by the Secretary;
                                    ``(V) ensures adequate documentation 
                                for each authorized transaction, 
                                adequate security measures to deter 
                                fraud, and adequate access to retail 
                                food stores that accept benefits 
                                accessed through mobile technologies, as 
                                determined by the Secretary;
                                    ``(VI) provides for an evaluation of 
                                the demonstration project, including, 
                                but not limited to, an evaluation of 
                                household access to benefits;
                                    ``(VII) requires that the State 
                                demonstration projects are voluntary for 
                                all retail food stores

[[Page 132 STAT. 4637]]

                                and that all recipients are able to use 
                                benefits in non-participating retail 
                                food stores; and
                                    ``(VIII) meets other criteria as 
                                established by the Secretary.'',
                    (D) by amending clause (iii) to read as follows:
                          ``(iv) Date of project approval.--The 
                      Secretary shall solicit and approve the qualifying 
                      demonstration projects required under subparagraph 
                      (B)(i) not later than January 1, 2021.'', and
                    (E) by inserting after clause (ii) the following:
                          ``(iii) Priority.--The Secretary may 
                      prioritize demonstration project proposals that 
                      would--
                                    ``(I) reduce fraud;
                                    ``(II) encourage positive 
                                nutritional outcomes; and
                                    ``(III) meet such other criteria as 
                                determined by the Secretary.'', and
            (3) in subparagraph (C)(i)--
                    (A) by striking ``2017'' and inserting ``2022'', and
                    (B) by inserting ``requires further study by way of 
                an extended pilot period or'' after ``States'' the 2d 
                place it appears.

    (f) Approval of Retail Food Stores.--Section 9 of the Food and 
Nutrition Act (7 U.S.C. 2018) is amended--
            (1) in subsection (a)(1)--
                    (A) in the 4th sentence by striking ``No retail food 
                store'' and inserting the following:
                    ``(D) Visit required.--No retail food store'',
                    (B) in the 3d sentence by striking ``Approval'' and 
                inserting the following:
                    ``(C) Certificate.--Approval'',
                    (C) in the 2d sentence--
                          (i) by striking ``food; and (D) the'' and 
                      inserting the following: ``food;
                          ``(iv) any information, if available, about 
                      the ability of the anticipated or existing 
                      electronic benefit transfer equipment and service 
                      provider of the applicant to provide sufficient 
                      information through the electronic benefit 
                      transfer system to minimize the risk of fraudulent 
                      transactions; and
                          ``(v) the'',
                          (ii) by striking ``concern; (C) whether'' and 
                      inserting the following: ``concern;
                          ``(iii) whether'',
                          (iii) by striking ``applicant; (B) the'' and 
                      inserting the following: ``applicant;
                          ``(ii) the'',
                          (iv) by striking ``following: (A) the nature'' 
                      and inserting the following: ``following:
                          ``(i) the nature'', and
                          (v) in the matter preceding clause (i), as so 
                      designated, by striking ``In determining'' and 
                      inserting the following:
                    ``(B) Factors for consideration.--In determining'', 
                and
                    (D) in the 1st sentence by striking ``(a)(1) 
                Regulations'' and inserting the following:

[[Page 132 STAT. 4638]]

    ``(a) Authorization to Accept and Redeem Benefits.--
            ``(1) Applications.--
                    ``(A) In general.--Regulations'',
            (2) in subsection (a) by adding at the end the following:
            ``(4) Electronic benefit transfer equipment and service 
        providers.--Before implementing clause (iv) of paragraph (1)(B), 
        the Secretary shall issue guidance for retail food stores on how 
        to select electronic benefit transfer equipment and service 
        providers that are able to meet the requirements of that 
        clause.'', and
            (3) in the 1st sentence of subsection (c) by inserting 
        ``records relating to electronic benefit transfer equipment and 
        related services, transaction and redemption data provided 
        through the electronic benefit transfer system,'' after 
        ``purchase invoices,''.
SEC. 4007. REVIEW OF SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM 
                          OPERATIONS.

    Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is 
amended by adding at the end the following:
    ``(i) Review of Program Operations.--
            ``(1) Review by the secretary.--The Secretary--
                    ``(A) shall review a representative sample of 
                currently authorized facilities referred to in section 
                3(k)(3) to determine whether benefits are properly used 
                by or on behalf of participating households residing in 
                such facilities and whether such facilities are using 
                more than 1 source of Federal or State funding to meet 
                the food needs of residents;
                    ``(B) may carry out similar reviews for currently 
                participating residential drug and alcohol treatment and 
                rehabilitation programs, and group living arrangements 
                for the blind and disabled, referred to in section 3(k);
                    ``(C) shall gather information, and such facilities, 
                programs, and arrangements shall be required to submit 
                information deemed necessary for a full and thorough 
                review; and
                    ``(D) shall report the results of these reviews to 
                the Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate not later than 18 
                months after the date of the enactment of the 
                Agriculture Improvement Act of 2018, along with 
                recommendations regarding--
                          ``(i) any additional requirements or oversight 
                      that would be appropriate for such facilities, 
                      programs, and arrangements; and
                          ``(ii) whether such facilities, programs, and 
                      arrangements should continue to be authorized to 
                      participate in the supplemental nutrition 
                      assistance program.
            ``(2) Limitation.--Nothing in this subsection shall 
        authorize the Secretary to deny any application for continued 
        authorization, any application for authorization, or any request 
        to withdraw the authorization of any such facility, program, or 
        arrangement based on a determination that residents of any such 
        facility or entity are residents of an institution for

[[Page 132 STAT. 4639]]

        a period of 18 months from the date of enactment of the 
        Agriculture Improvement Act of 2018.''.
SEC. 4008. RETAIL INCENTIVES.

    Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018), as 
amended by section 4007, is amended by adding at the end the following:
    ``(j) Incentives.--
            ``(1) Definition of eligible incentive food.--In this 
        subsection, the term `eligible incentive food' means--
                    ``(A) a staple food that is identified for increased 
                consumption, consistent with the most recent dietary 
                recommendations; and
                    ``(B) a fruit, vegetable, dairy, whole grain, or 
                product thereof.
            ``(2) Guidance.--
                    ``(A) In general.--The Secretary shall issue 
                guidance to clarify the process by which an approved 
                retail food store may seek a waiver to offer an 
                incentive, which may be used only for the purchase of an 
                eligible incentive food at the point of purchase, to a 
                household purchasing food with benefits issued under 
                this Act.
                    ``(B) Guidance.--The guidance under subparagraph (A) 
                shall establish a process under which an approved retail 
                food store, prior to carrying out an incentive program 
                under this subsection, shall provide to the Secretary 
                information describing the incentive program, 
                including--
                          ``(i) the types of incentives that will be 
                      offered;
                          ``(ii) the types of foods that will be 
                      incentivized for purchase; and
                          ``(iii) an explanation of how the incentive 
                      program intends to support meeting dietary intake 
                      goals.
            ``(3) No limitation on benefits.--A waiver granted under 
        this subsection shall not be used to carry out any activity that 
        limits the use of benefits under this Act or any other Federal 
        nutrition law.
            ``(4) Effect.--Guidance provided under this subsection shall 
        not affect any requirements under section 4405 of the Food, 
        Conservation, and Energy Act of 2008 (7 U.S.C. 7517), including 
        the eligibility of a retail food store to participate in a 
        project funded under such section.
            ``(5) Report.--The Secretary shall submit to the Committee 
        on Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate an annual 
        report describing the types of incentives approved under this 
        subsection.''.
SEC. 4009. REQUIRED ACTION ON DATA MATCH INFORMATION.

    Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)) is amended--
            (1) in paragraph (24) by striking ``and'' after the 
        semicolon,
            (2) in paragraph (25) by striking the period at the end and 
        inserting ``; and'', and
            (3) by adding at the end the following:
            ``(26) that for a household participating in the 
        supplemental nutrition assistance program, the State agency 
        shall pursue clarification and verification, if applicable, of 
        information relating to the circumstances of the household 
        received from

[[Page 132 STAT. 4640]]

        data matches for the purpose of ensuring an accurate eligibility 
        and benefit determination, only if the information--
                    ``(A) appears to present significantly conflicting 
                information from the information that was used by the 
                State agency at the time of certification of the 
                household;
                    ``(B) is obtained from data matches carried out 
                under subsection (q), (r), or (x); or
                    ``(C)(i) is less than 60 days old relative to the 
                current month of participation of the household; and
                    ``(ii) if accurate, would have been required to be 
                reported by the household based on the reporting 
                requirements assigned to the household by the State 
                agency under section 6(c).''.
SEC. 4010. INCENTIVIZING TECHNOLOGY MODERNIZATION.

    Section 11(t) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(t)) is amended--
            (1) by striking the heading and inserting ``Grants for 
        Simplified Application and Eligibility Determination Systems and 
        Improved Access to Benefits'',
            (2) in paragraph (1) by striking ``implement--'' and all 
        that follows through the period at the end, and inserting 
        ``implement supplemental nutrition assistance program simplified 
        application and eligibility determination systems.'', and
            (3) in paragraph (2)--
                    (A) by amending subparagraph (B) to read as follows:
                    ``(B) establishing enhanced technological methods 
                that improve the administrative infrastructure used in 
                processing applications and determining eligibility; 
                or'',
                    (B) by striking subparagraphs (C) and (D), and
                    (C) by redesignating subparagraph (E) as 
                subparagraph (C).
SEC. 4011. INTERSTATE DATA MATCHING TO PREVENT MULTIPLE ISSUANCES.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020), as 
amended by section 4005(c), is amended by adding at the end the 
following:
    ``(x) National Accuracy Clearinghouse.--
            ``(1) Definition of indication of multiple issuance.--In 
        this subsection, the term `indication of multiple issuance' 
        means an indication, based on a computer match, that 
        supplemental nutrition assistance program benefits are being 
        issued to an individual by more than 1 State agency 
        simultaneously.
            ``(2) Establishment.--
                    ``(A) In general.--The Secretary shall establish an 
                interstate data system, to be known as the `National 
                Accuracy Clearinghouse', to prevent multiple issuances 
                of supplemental nutrition assistance program benefits to 
                an individual by more than 1 State agency 
                simultaneously.
                    ``(B) Data matching.--The Secretary shall require 
                that State agencies make available to the National 
                Accuracy Clearinghouse only such information as is 
                necessary for the purpose described in subparagraph (A).
                    ``(C) Data protection.--The information made 
                available by State agencies under subparagraph (B)--
                          ``(i) shall be used only for the purpose 
                      described in subparagraph (A);

[[Page 132 STAT. 4641]]

                          ``(ii) shall be exempt from the disclosure 
                      requirements of section 552(a) of title 5 of the 
                      United States Code pursuant to section 552(b)(3) 
                      of title 5 of the United States Code, to the 
                      extent such information is obtained or received by 
                      the Secretary;
                          ``(iii) shall not be retained for longer than 
                      is necessary to accomplish the purpose in 
                      subparagraph (A);
                          ``(iv) shall be used in a manner that protects 
                      the identity and location of a vulnerable 
                      individual (including a victim of domestic 
                      violence) that is an applicant for, or recipient 
                      of, supplemental nutrition assistance program 
                      benefits; and
                          ``(v) shall meet security standards as 
                      determined by the Secretary.
            ``(3) Issuance of interim final regulations.--Not later than 
        18 months after the date of enactment of the Agriculture 
        Improvement Act of 2018, the Secretary shall promulgate 
        regulations (which shall include interim final regulations) to 
        carry out this subsection that--
                    ``(A) incorporate best practices and lessons learned 
                from the pilot program under section 4032(c) of the 
                Agricultural Act of 2014 (7 U.S.C. 2036c(c));
                    ``(B) require a State agency to take appropriate 
                action, as determined by the Secretary, with respect to 
                each indication of multiple issuance of supplemental 
                nutrition assistance program benefits, or each 
                indication that an individual receiving such benefits in 
                1 State has applied to receive such benefits in another 
                State, while ensuring timely and fair service to 
                applicants for, and recipients of, such benefits;
                    ``(C) establish standards to limit and protect the 
                information submitted through or retained by the 
                National Accuracy Clearinghouse consistent with 
                paragraph (2)(C);
                    ``(D) establish safeguards to protect--
                          ``(i) the information submitted through or 
                      retained by the National Accuracy Clearinghouse, 
                      including by limiting the period of time that 
                      information is retained to the period necessary to 
                      accomplish the purpose described in paragraph 
                      (2)(A); and
                          ``(ii) the privacy of information that is 
                      submitted through or retained by the National 
                      Accuracy Clearinghouse consistent with subsection 
                      (e)(8); and
                    ``(E) include such other rules and standards the 
                Secretary determines appropriate to carry out this 
                subsection.
            ``(4) Timing.--The initial match and corresponding actions 
        required by paragraph (3)(B) shall occur within 3 years after 
        the date of the enactment of the Agriculture Improvement Act of 
        2018.''.
SEC. 4012. REQUIREMENT OF LIVE-PRODUCTION ENVIRONMENTS FOR CERTAIN 
                          PILOT PROJECTS RELATING TO COST SHARING 
                          FOR COMPUTERIZATION.

    Section 16(g)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(g)(1)) is amended--
            (1) in subparagraph (F) by redesignating clauses (i) and 
        (ii) as subclauses (I) and (II), respectively, and indenting 
        appropriately;

[[Page 132 STAT. 4642]]

            (2) by redesignating subparagraphs (A) through (F) as 
        clauses (i) through (vi), respectively, and indenting 
        appropriately;
            (3) in the matter preceding clause (i), as so redesignated--
                    (A) by striking ``paragraphs (2) and (3)'' and 
                inserting ``paragraph (2)''; and
                    (B) by striking ``in the planning'' and inserting 
                the following: ``in the--
                    ``(A) planning'',
            (4) in clause (v), as so redesignated, of subparagraph (A), 
        as so designated, by striking ``implementation, including 
        through pilot projects in limited areas for major systems 
        changes as determined under rules promulgated by the Secretary, 
        data from which'' and inserting the following: ``implementation, 
        including a requirement that--
                                    ``(I) such testing shall be 
                                accomplished through pilot projects in 
                                limited areas for major systems changes 
                                (as determined under rules promulgated 
                                by the Secretary);
                                    ``(II) each pilot project described 
                                in subclause (I) that is carried out 
                                before the implementation of a system 
                                shall be conducted in a live-production 
                                environment; and
                                    ``(III) the data resulting from each 
                                pilot project carried out under this 
                                clause'';
            (5) in clause (vi), as so redesignated, by striking the 
        period at end and inserting ``; and'', and
            (6) by adding at the end the following:
                    ``(B) operation of 1 or more automatic data 
                processing and information retrieval systems that the 
                Secretary determines may continue to be operated in 
                accordance with clauses (i) through (vii) of 
                subparagraph (A).''.
SEC. 4013. QUALITY CONTROL IMPROVEMENTS.

    (a) Records.--Section 11(a)(3)(B) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2020(a)(3)(B)) is amended--
            (1) by striking ``Records described'' and inserting ``All 
        records, and the entire information systems in which records are 
        contained, that are covered'', and
            (2) by amending clause (i) to read as follows:
                          ``(i) be made available for inspection and 
                      audit by the Secretary, subject to data and 
                      security protocols agreed to by the State agency 
                      and Secretary;''.

    (b) Quality Control System.--Section 16(c)(1)(B) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(B)) is amended to read as 
follows:
                    ``(B) Quality control system integrity.--
                          ``(i) In general.--Not later than 180 days 
                      after the date of enactment of the Agriculture 
                      Improvement Act of 2018, the Secretary shall issue 
                      interim final regulations that--
                                    ``(I) ensure that the quality 
                                control system established under this 
                                subsection produces valid statistical 
                                results;
                                    ``(II) provide for oversight of 
                                contracts entered into by a State agency 
                                for the purpose of improving payment 
                                accuracy;

[[Page 132 STAT. 4643]]

                                    ``(III) ensure the accuracy of data 
                                collected under the quality control 
                                system established under this 
                                subsection; and
                                    ``(IV) for each fiscal year, to the 
                                maximum extent practicable, provide for 
                                the evaluation of the integrity of the 
                                quality control process of not fewer 
                                than 2 State agencies, selected in 
                                accordance with criteria determined by 
                                the Secretary.
                          ``(ii) Debarment.--In accordance with the 
                      nonprocurement debarment procedures under part 417 
                      of title 2, Code of Federal Regulations, or 
                      successor regulations, the Secretary shall debar 
                      any person that, in carrying out the quality 
                      control system established under this subsection, 
                      knowingly submits, or causes to be submitted, 
                      false information to the Secretary.''.

    (c) Reporting Requirements.--The 1st sentence of section 16(c)(4) of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(4)) is amended by 
inserting ``, including providing access to applicable State records and 
the entire information systems in which the records are contained,'' 
after ``necessary''.
    (d) State Performance Indicators.--Section 16(d) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025(d)) is amended--
            (1) by striking the heading and inserting ``State 
        Performance Indicators'',
            (2) in paragraph (2)--
                    (A) in the heading by striking ``and thereafter'' 
                and inserting ``through 2017'',
                    (B) in subparagraph (A) by striking ``and each 
                fiscal year thereafter'' and inserting ``through fiscal 
                year 2017'', and
                    (C) in subparagraph (B) by striking ``and each 
                fiscal year thereafter'' and inserting ``through fiscal 
                year 2017'', and
            (3) by adding at the end the following:
            ``(6) Fiscal year 2018 and fiscal years thereafter.--
                    ``(A) With respect to fiscal year 2018 and each 
                fiscal year thereafter, the Secretary shall establish, 
                by regulation, performance criteria relating to--
                          ``(i) actions taken to correct errors, reduce 
                      rates of error, and improve eligibility 
                      determinations; and
                          ``(ii) other indicators of effective 
                      administration determined by the Secretary.
                    ``(B) The Secretary shall not award performance 
                bonus payments to State agencies in fiscal year 2019 for 
                fiscal year 2018 performance.''.

    (e) Cost Sharing for Computerization.--Section 16(g)(1)(A) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2025(g)(1)(A)), as amended by 
section 4012, is amended--
            (1) in clause (v)(III) by striking ``and'', and
            (2) by adding at the end the following:
                          ``(vii) would be accessible by the Secretary 
                      for inspection and audit under section 
                      11(a)(3)(B); and''.
SEC. 4014. EVALUATION OF CHILD SUPPORT ENFORCEMENT COOPERATION 
                          REQUIREMENTS.

    Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is 
amended by adding at the end the following:

[[Page 132 STAT. 4644]]

    ``(m) Evaluation of Child Support Enforcement Cooperation 
Requirements.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Health and Human Services, shall conduct an 
        independent evaluation of a representative sample of States--
                    ``(A) to assess the implementation and impact of the 
                eligibility requirements described in subsections (l) 
                through (n) of section 6 in States that have formerly 
                implemented or continue to implement those requirements, 
                and the feasibility of implementing those requirements 
                in other States;
                    ``(B) to assess the factors that contributed to the 
                decision of States that formerly implemented the 
                eligibility requirements described in each of 
                subsections (l) through (n) of section 6 to cease such 
                implementation;
                    ``(C) to review alternatives to the eligibility 
                requirements described in each of subsections (l) 
                through (n) of section 6 that are used by other States 
                to assist participants in the supplemental nutrition 
                assistance program to make or receive child support 
                payments and the effectiveness of those alternatives; 
                and
                    ``(D) to evaluate the costs and benefits to 
                households and to State agencies, of requiring State 
                agencies to implement each of the eligibility 
                requirements described in subsections (l) through (n) of 
                section 6.
            ``(2) Evaluation.--The evaluation under paragraph (1) shall 
        include, to the maximum extent practicable, an assessment of--
                    ``(A) the manner in which applicable State agencies 
                implement and enforce the eligibility requirements 
                described in subparagraph (A) of such paragraph, 
                including--
                          ``(i) the procedures used by each State to 
                      determine cooperation, to sanction participants 
                      for failure to cooperate, and to determine good 
                      cause for noncooperation under each of subsections 
                      (l) through (n) of section 6; and
                          ``(ii) the manner in which each State aligns 
                      the procedures for implementing those eligibility 
                      requirements with procedures for implementing 
                      other Federal programs that require cooperation 
                      with child support enforcement, including the 
                      program of block grants to States for temporary 
                      assistance for needy families established under 
                      part A of title IV of the Social Security Act (42 
                      U.S.C. 601 et seq.), the Medicaid program under 
                      title XIX of the Social Security Act (42 U.S.C. 
                      1396 et seq.), and programs carried out under the 
                      Child Care and Development Block Grant Act of 1990 
                      (42 U.S.C. 9857 et seq.);
                    ``(B) the Federal, State, and local costs associated 
                with implementing those eligibility requirements, 
                including costs incurred under this Act and by child 
                support enforcement agencies for personnel, technology 
                upgrades, and other costs;
                    ``(C) the effect of those eligibility requirements 
                on the establishment of new child support orders, the 
                establishment of paternity, changes in child support 
                payments to

[[Page 132 STAT. 4645]]

                custodial households, and changes in arrears owed on 
                child support orders;
                    ``(D) with respect to the eligibility requirements 
                under each of subsections (l) through (n) of section 6--
                          ``(i) the number of individuals subject to 
                      those requirements;
                          ``(ii) the number of individuals in each State 
                      who meet those requirements; and
                          ``(iii) the number of individuals in each 
                      State who fail to meet those requirements;
                    ``(E) the number of individuals in each State for 
                whom good cause for noncooperation has been found under 
                section 6(l)(2);
                    ``(F) the impact of those eligibility requirements 
                on the supplemental nutrition assistance program 
                eligibility, benefit levels, food security, income, and 
                economic stability of--
                          ``(i) individuals subject to those 
                      requirements;
                          ``(ii) the household members of those 
                      individuals, including children; and
                          ``(iii) households with nontraditional family 
                      structures, including a household in which a 
                      grandparent is the primary caretaker of a 
                      grandchild of the grandparent.
            ``(3) State agency cooperation.--Each State agency selected 
        under paragraph (1) shall provide information to the Secretary 
        necessary to conduct the evaluation under such paragraph.
            ``(4) Report.--Not later than 3 years after the date of 
        enactment of the Agriculture Improvement Act of 2018, the 
        Secretary shall submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report describing the 
        findings from the evaluation conducted under paragraph (1).''.
SEC. 4015. LONGITUDINAL DATA FOR RESEARCH.

    (a) Longitudinal Data.--Section 17 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2026), as amended by section 4014, is amended by adding 
at the end the following:
    ``(n) Longitudinal Data for Research.--
            ``(1) In general.--Subject to paragraphs (3) through (5), a 
        State agency may, on approval by the Secretary, establish a 
        longitudinal database that contains information about households 
        and members of households that receive benefits under the 
        supplemental nutrition assistance program in the State.
            ``(2) Purpose.--Each longitudinal database established under 
        paragraph (1) shall be used solely to conduct research on 
        participation in and the operation of the supplemental nutrition 
        assistance program, including duration of participation in the 
        program.
            ``(3) Requirements for databases.--Prior to the approval of 
        State agencies to establish longitudinal databases under 
        paragraph (1), the Secretary shall--

[[Page 132 STAT. 4646]]

                    ``(A) identify features that shall be standard 
                across States such as database format to facilitate use 
                of longitudinal databases established under paragraph 
                (1) for research purposes;
                    ``(B) identify features of longitudinal databases 
                established under paragraph (1) that may vary across 
                States;
                    ``(C) identify a procedure for States operating 
                longitudinal databases under paragraph (1) to use a 
                unique identifier to provide relevant information on 
                household members who receive benefits under the 
                supplemental nutrition assistance program for the 
                purpose of comparing participation data in multiple 
                participating States over time while protecting 
                participant privacy;
                    ``(D) establish the manner in which data security 
                and privacy protections, as required by Federal law and 
                consistent with other appropriate practices, shall be 
                implemented and maintained;
                    ``(E) provide direction to State agencies on the 
                responsibilities of and funding arrangements for State 
                agencies and any State contractors (including entities 
                providing technical assistance) relating to the 
                establishment and operation of a longitudinal database;
                    ``(F) provide a description of the documentation 
                that States shall submit to the Secretary prior to 
                allowing researchers access to a longitudinal database;
                    ``(G) consult with other Federal research agencies, 
                including the Bureau of the Census;
                    ``(H) consult with States that have already 
                established databases used for purposes similar to the 
                purposes outlined in this subsection; and
                    ``(I) identify any other requirements determined 
                appropriate by the Secretary.
            ``(4) Included data.--
                    ``(A) In general.--Subject to subparagraph (B), each 
                longitudinal database established under paragraph (1)--
                          ``(i) shall include monthly information about 
                      households and members of households that receive 
                      benefits under the supplemental nutrition 
                      assistance program in the participating State 
                      taken from existing information collected by the 
                      State agency including, if available,--
                                    ``(I) demographic characteristics;
                                    ``(II) income and financial 
                                resources (as described in section 
                                5(g));
                                    ``(III) employment status;
                                    ``(IV) household circumstances, such 
                                as deductible expenses; and
                                    ``(V) the amount of the monthly 
                                allotment received under the 
                                supplemental nutrition assistance 
                                program; and
                          ``(ii) may include information from other 
                      State data sources such as--
                                    ``(I) earnings and employment data 
                                from the State department of labor;
                                    ``(II) health insurance program 
                                data; or
                                    ``(III) data from participation in 
                                other programs administered by the 
                                State.

[[Page 132 STAT. 4647]]

                    ``(B) Data protection.--Any State that establishes a 
                longitudinal database under paragraph (1) shall, in 
                accordance with all applicable Federal and State privacy 
                standards and requirements--
                          ``(i) protect the privacy of information about 
                      each member of each household that receives 
                      benefits under the supplemental nutrition 
                      assistance program in such State by ensuring that 
                      no personally identifiable information (including 
                      social security number, home address, or contact 
                      information) is included in the longitudinal 
                      database; and
                          ``(ii) make the data under this paragraph 
                      available to researchers and the Secretary.
            ``(5) Approval.--The Secretary shall approve the 
        establishment of longitudinal databases under paragraph (1) in 
        States that--
                    ``(A) meet the requirements for databases under 
                paragraph (3) and (4)(B);
                    ``(B) reflect a range of participant numbers, 
                demographics, operational structures, and geographic 
                regions; and
                    ``(C) have the capacity to provide on a periodic and 
                ongoing basis household and participant data derived 
                from the eligibility system and other data sources of 
                the State.
            ``(6) Grants.--
                    ``(A) In general.--In carrying out this subsection, 
                the Secretary may provide grants to States that have 
                been approved by the Secretary in accordance with 
                paragraph (5) out of funds made available under 
                paragraph (9).
                    ``(B) Method of awarding grants.--Grants awarded 
                under this paragraph shall be made in such amounts and 
                under such terms and conditions as the Secretary 
                determines necessary to carry out the purposes of this 
                subsection.
            ``(7) Report.--
                    ``(A) In general.--Not later than 4 years after the 
                effective date of this subsection, 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 
                feasibility of expanding implementation of longitudinal 
                databases to every State.
                    ``(B) Contents.--The report required under 
                subparagraph (A) shall describe--
                          ``(i) the cost of expanding implementation of 
                      longitudinal databases with consistent data to 
                      every State;
                          ``(ii) the challenges and benefits of using 
                      State longitudinal databases with consistent data; 
                      and
                          ``(iii) alternatives to expanding 
                      implementation of longitudinal databases with 
                      consistent data to every State that may achieve 
                      similar research outcomes and the advantages and 
                      disadvantages of those alternatives.
            ``(8) Effect.--Nothing in this subsection shall be construed 
        to prevent or limit the ability of State agencies to establish

[[Page 132 STAT. 4648]]

        or continue operating databases used for purposes similar to the 
        purposes outlined in this subsection.
            ``(9) Funding.--Of the funds made available under section 
        18, the Secretary shall use to carry out this subsection--
                    ``(A) $20,000,000 for fiscal year 2019 to remain 
                available through fiscal year 2021; and
                    ``(B) $5,000,000 for fiscal year 2022 and each 
                fiscal year thereafter.''.

    (b) Conforming Amendment.--The 1st sentence of section 16(a) of the 
Food and Nutrition Act of 2008 is amended--
            (1) by striking ``and (8)'' and inserting ``(8)''; and
            (2) by inserting ``, and (9) establishing and operating a 
        longitudinal database in accordance with section 17(n)'' before 
        ``: Provided''.
SEC. 4016. AUTHORIZATION OF APPROPRIATIONS.

    The 1st sentence of section 18(a)(1) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2027(a)(1)) is amended by striking ``2018'' and 
inserting ``2023''.
SEC. 4017. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25(b)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2034(b)(2)) is amended--
            (1) in subparagraph (B) by striking ``and'' at the end,
            (2) in subparagraph (C) by striking ``fiscal year 2015 and 
        each fiscal year thereafter.'' and inserting ``each of fiscal 
        years 2015 through 2018; and'', and
            (3) by adding at the end the following:
                    ``(D) $5,000,000 for fiscal year 2019 and each 
                fiscal year thereafter.''.
SEC. 4018. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) State Plan.--Section 202A(b) of the Emergency Food Assistance 
Act of 1983 (7 U.S.C. 7503(b)) is amended--
            (1) in paragraph (3), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) at the option of the State agency, describe a plan of 
        operation for 1 or more projects in partnership with 1 or more 
        emergency feeding organizations located in the State to harvest, 
        process, package, or transport donated commodities received 
        under section 203D(d); and
            ``(6) describe a plan, which may include the use of a State 
        advisory board established under subsection (c), that provides 
        emergency feeding organizations or eligible recipient agencies 
        within the State an opportunity to provide input on the 
        commodity preferences and needs of the emergency feeding 
        organization or eligible recipient agency.''.

    (b) State and Local Supplementation of Commodities.--Section 203D of 
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7507) is amended by 
adding at the end the following:
    ``(d) Projects to Harvest, Process, Package, or Transport Donated 
Commodities.--
            ``(1) Definition of project.--In this subsection, the term 
        `project' means the harvesting, processing, packaging, or 
        transportation of unharvested, unprocessed, or unpackaged 
        commodities donated by agricultural producers, processors, or

[[Page 132 STAT. 4649]]

        distributors for use by emergency feeding organizations under 
        subsection (a).
            ``(2) Federal funding for projects.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C) and paragraph (3), using funds made available under 
                paragraph (5), the Secretary may provide funding to 
                States to pay for the costs of carrying out a project.
                    ``(B) Federal share.--The Federal share of the cost 
                of a project under subparagraph (A) shall not exceed 50 
                percent of the total cost of the project.
                    ``(C) Allocation.--
                          ``(i) In general.--Each fiscal year, the 
                      Secretary shall allocate the funds made available 
                      under subparagraph (A), based on a formula 
                      determined by the Secretary, to States that have 
                      submitted a State plan describing a plan of 
                      operation for a project under section 202A(b)(5).
                          ``(ii) Reallocation.--If the Secretary 
                      determines that a State will not expend all of the 
                      funds allocated to the State for a fiscal year 
                      under clause (i), the Secretary shall reallocate 
                      the unexpended funds to other States that have 
                      submitted under section 202A(b)(5) a State plan 
                      describing a plan of operation for a project 
                      during that fiscal year or the subsequent fiscal 
                      year, as the Secretary determines appropriate.
                          ``(iii) Reports.--Each State to which funds 
                      are allocated for a fiscal year under this 
                      subparagraph shall, on a regular basis, submit to 
                      the Secretary financial reports describing the use 
                      of the funds.
            ``(3) Project purposes.--A State may only use Federal funds 
        received under paragraph (2) for a project the purposes of which 
        are--
                    ``(A) to reduce food waste at the agricultural 
                production, processing, or distribution level through 
                the donation of food;
                    ``(B) to provide food to individuals in need; and
                    ``(C) to build relationships between agricultural 
                producers, processors, and distributors and emergency 
                feeding organizations through the donation of food.
            ``(4) Cooperative agreements.--The Secretary may encourage a 
        State agency that carries out a project using Federal funds 
        received under paragraph (2) to enter into cooperative 
        agreements with State agencies of other States under section 
        203B(d) to maximize the use of commodities donated under the 
        project.
            ``(5) Funding.--Out of funds not otherwise appropriated, the 
        Secretary of the Treasury shall transfer to the Secretary to 
        carry out this subsection $4,000,000 for each of fiscal years 
        2019 through 2023, to remain available until the end of the 
        subsequent fiscal year.''.

    (c) Food Waste.--Section 203D of the Emergency Food Assistance Act 
of 1983 (7 U.S.C. 7507), as amended by subsection (b), is amended by 
adding at the end the following:
    ``(e) Food Waste.--The Secretary shall issue guidance outlining best 
practices to minimize the food waste of the commodities donated under 
subsection (a).''.

[[Page 132 STAT. 4650]]

    (d) Emergency Food Program Infrastructure Grants.--Section 209(d) of 
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is amended 
by striking ``2018'' and inserting ``2023''.
    (e) Availability of Commodities for the Emergency Food Assistance 
Program.--Section 27(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036(a)) is amended--
            (1) in paragraph (1), by striking ``2018'' and inserting 
        ``2023''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``2018'' and 
                inserting ``2023'';
                    (B) in subparagraph (D)--
                          (i) in the matter preceding clause (i), by 
                      striking ``2018'' and inserting ``2023'';
                          (ii) in clause (iii), by striking ``and'' 
                      after the semicolon;
                          (iii) in clause (iv), by striking ``and'' 
                      after the semicolon;
                          (iv) by adding at the end the following:
                          ``(v) for fiscal year 2019, $23,000,000;
                          ``(vi) for fiscal year 2020, $35,000,000;
                          ``(vii) for fiscal year 2021, $35,000,000;
                          ``(viii) for fiscal year 2022, $35,000,000; 
                      and
                          ``(ix) for fiscal year 2023, $35,000,000; 
                      and''; and
                    (C) in subparagraph (E)--
                          (i) by striking ``2019'' and inserting 
                      ``2024'';
                          (ii) by striking ``(D)(iv)'' and inserting 
                      ``(D)(ix)''; and
                          (iii) by striking ``June 30, 2017'' and 
                      inserting ``June 30, 2023''.
SEC. 4019. NUTRITION EDUCATION.

    Section 28(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036a(c)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B)--
                          (i) in the matter preceding clause (i), by 
                      striking ``Except as provided in subparagraph (C), 
                      a'' and inserting ``A'',
                          (ii) in clause (ii) by striking ``and'' after 
                      the semicolon,
                          (iii) by redesignating clause (iii) as clause 
                      (iv), and
                          (iv) by inserting after clause (ii) the 
                      following:
                          ``(iii) describe how the State agency shall 
                      use an electronic reporting system to--
                                    ``(I) measure and evaluate the 
                                projects; and
                                    ``(II) account for the allowable 
                                State agency administrative costs 
                                including for--
                                            ``(aa) salaries and benefits 
                                        of State agency personnel;
                                            ``(bb) office supplies and 
                                        equipment;
                                            ``(cc) travel costs;
                                            ``(dd) development and 
                                        production of nutrition 
                                        education materials;
                                            ``(ee) memberships, 
                                        subscriptions, and professional 
                                        activities;

[[Page 132 STAT. 4651]]

                                            ``(ff) lease or rental 
                                        costs;
                                            ``(gg) maintenance and 
                                        repair expenses;
                                            ``(hh) indirect costs; and
                                            ``(ii) cost of using 
                                        publicly-owned building space; 
                                        and'', and
                    (B) by striking subparagraph (C),
            (2) in paragraph (3)(B) in the matter preceding clause (i), 
        by inserting ``, the Director of the National Institute of Food 
        and Agriculture,'' before ``and outside stakeholders'',
            (3) in paragraph (5) by inserting ``the expanded food and 
        nutrition education program or'' before ``other health 
        promotion'', and
            (4) by adding at the end the following:
            ``(6) Information clearinghouse.--The Secretary shall 
        establish an online clearinghouse that makes available to State 
        agencies, local agencies, institutions of higher education, and 
        community organizations best practices for planning, 
        implementing, and evaluating nutrition education and obesity 
        prevention services to ensure that projects carried out with 
        funds received under this section are appropriate for the target 
        population.
            ``(7) Technical assistance.--The Secretary shall provide 
        technical assistance to a State agency in developing and 
        implementing a nutrition education State plan, including--
                    ``(A) by identifying common challenges faced by 
                entities described in paragraph (6) that participate in 
                projects carried out with funds received under this 
                section;
                    ``(B) by coordinating efforts to address those 
                common challenges;
                    ``(C) by collecting and disseminating information on 
                evidence-based practices relating to nutrition education 
                and obesity prevention;
                    ``(D) by facilitating communication between and 
                among grantees and subgrantees of funds received under 
                this section;
                    ``(E) by assisting State agencies in creating or 
                maintaining systems to compile program data; and
                    ``(F) by performing or assisting with other 
                activities, as determined by the Secretary.
            ``(8) Annual state report.--Each State agency that delivers 
        nutrition education and obesity prevention services under this 
        subsection shall submit to the Secretary an annual report, which 
        shall be made publicly available by the Secretary, that 
        includes--
                    ``(A) the use of funds on the State agency's 
                program, including for each category of allowable State 
                agency administrative costs identified in paragraph 
                (2)(B)(iii)(II);
                    ``(B) a description of each project carried out by 
                that agency under this subsection, including, with 
                respect to the project, the target population, 
                interventions, educational materials used, key 
                performance indicators used, and evaluations made;
                    ``(C) a comprehensive analysis of the impacts and 
                outcomes--
                          ``(i) of the project, including with respect 
                      to the elements described in subparagraph (A); and

[[Page 132 STAT. 4652]]

                          ``(ii) to the extent practicable, of completed 
                      multiyear projects; and
                    ``(D) the status of any ongoing multiyear project.
            ``(9) Annual federal report.--The Administrator of the Food 
        and Nutrition Service, in consultation with the Director of the 
        National Institute of Food and Agriculture, shall annually 
        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--
                    ``(A) evaluates the level of coordination between--
                          ``(i) the nutrition education and obesity 
                      prevention grant program under this section;
                          ``(ii) the expanded food and nutrition 
                      education program under section 1425 of the 
                      National Agricultural Research, Extension, and 
                      Teaching Policy Act of 1977 (7 U.S.C. 3175); and
                          ``(iii) any other nutrition education program 
                      administered by the Department of Agriculture; and
                    ``(B) includes the use of funds on such programs 
                including State agency administrative costs reported by 
                States under paragraph (8)(A).''.
SEC. 4020. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

    Section 29(c)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036b(c)(1)) is amended by striking ``2018'' and inserting ``2023''.
SEC. 4021. PUBLIC-PRIVATE PARTNERSHIPS.

    The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is 
amended by adding at the end the following:
``SEC. 30. <<NOTE: 7 USC 2036d.>>  PILOT PROJECTS TO ENCOURAGE THE 
                      USE OF PUBLIC-PRIVATE PARTNERSHIPS COMMITTED 
                      TO ADDRESSING FOOD INSECURITY.

    ``(a) In General.--The Secretary may, on application of eligible 
entities, approve not more than 10 pilot projects to support public-
private partnerships that address food insecurity and poverty.
    ``(b) Definitions.--For purposes of this section--
            ``(1) the term `eligible entity' means--
                    ``(A) a nonprofit organization;
                    ``(B) a community-based organization;
                    ``(C) an institution of higher education; or
                    ``(D) a private entity, as determined by the 
                Secretary; and
            ``(2) the term `public agency' means a department, agency, 
        other unit, or instrumentality of Federal, State, or local 
        government.

    ``(c) Project Requirements.--Projects approved under this section 
shall--
            ``(1) be limited to 2 years in length; and
            ``(2) include a collaboration between one or more public 
        agencies and one or more eligible entities that--
                    ``(A) improves the effectiveness and impact of the 
                supplemental nutrition assistance program;
                    ``(B) develops food security solutions that are 
                specific to the needs of a community or region; and
                    ``(C) strengthens the capacity of communities to 
                address food insecurity and poverty.

[[Page 132 STAT. 4653]]

    ``(d) Evaluation.--The Secretary shall provide for an independent 
evaluation of pilot projects approved under this section that includes--
            ``(1) a summary of the activities conducted under the pilot 
        projects;
            ``(2) an assessment of the effectiveness of the pilot 
        projects; and
            ``(3) best practices regarding the use of public-private 
        partnerships to improve the effectiveness of public benefit 
        programs to address food insecurity and poverty.

    ``(e) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $5,000,000 to 
        remain available until expended.
            ``(2) Appropriation in advance.--Only funds appropriated 
        under paragraph (1) in advance specifically to carry out this 
        section shall be available to carry out this section.''.
SEC. 4022. TECHNICAL CORRECTIONS.

    The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is 
amended--
            (1) in section 3--
                    (A) in subsections (d) and (i) by striking ``7(i)'' 
                and inserting ``7(h)'', and
                    (B) in subsection (o)(1)(A) by striking ``(r)(1)'' 
                and inserting ``(q)(1)'',
            (2) in section 5(a) by striking ``and section'' each place 
        it appears and all that follows through ``households'' the 
        respective next place it appears, and inserting ``and section 
        3(m)(4), households'',
            (3) in subsections (e)(1) and (f)(1)(A)(i) of section 8 by 
        striking ``3(n)(5)'' and inserting ``3(m)(5)'',
            (4) in the 1st sentence of section 10--
                    (A) by striking ``or the Federal Savings and Loan 
                Insurance Corporation'' each place it appears, and
                    (B) by striking ``3(p)(4)'' and inserting 
                ``3(o)(4)'',
            (5) in section 11--
                    (A) in subsection (a)(2) by striking ``3(t)(1)'' and 
                inserting ``3(s)(1)'', and
                    (B) in subsection (d)--
                          (i) by striking ``3(t)(1)'' each place it 
                      appears and inserting ``3(s)(1)'', and
                          (ii) by striking ``3(t)(2)'' each place it 
                      appears and inserting ``3(s)(2)'', and
                    (C) in subsection (e)--
                          (i) in paragraph (17) by striking ``3(t)(1)'' 
                      inserting ``3(s)(1)'', and
                          (ii) in paragraph (23) by striking 
                      ``Simplified Supplemental Nutrition Assistance 
                      Program'' and inserting ``simplified supplemental 
                      nutrition assistance program'',
            (6) in section 15(e) by striking ``exchange'' and all that 
        follows through ``anything'', and inserting ``exchange for 
        benefits, or anything'',
            (7) in section 17(b)(1)(B)(iv)(III)(aa) by striking ``3(n)'' 
        and inserting ``3(m)'',

[[Page 132 STAT. 4654]]

            (8) in section 25(a)(1)(B)(i)(I) by striking the 2d 
        semicolon at the end, and
            (9) in section 26(b) by striking ``out'' and all that 
        follows through ``(referred'', and inserting ``out a simplified 
        supplemental nutrition assistance program (referred''.

               Subtitle B--Commodity Distribution Programs

SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.

    The 1st sentence of section 4(a) of the Agriculture and Consumer 
Protection Act of 1973 (7 U.S.C. 612c note) is amended by striking 
``2018'' and inserting ``2023''.
SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 
U.S.C. 612c note; Public Law 93-86) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by striking ``2018'' and 
                inserting ``2023'', and
                    (B) in paragraph (2)(B), in the matter preceding 
                clause (i), by striking ``2018'' and inserting ``2023'',
            (2) in subsection (d)(2), in the 1st sentence, by striking 
        ``2018'' and inserting ``2023'', and
            (3) in subsection (g)--
                    (A) by striking ``Except'' and inserting the 
                following:
            ``(1) In general.--Except'', and
                    (B) by adding at the end the following:
            ``(2) Certification.--
                    ``(A) Definition of certification period.--In this 
                paragraph, the term `certification period' means the 
                period during which a participant in the commodity 
                supplemental food program in a State may continue to 
                receive benefits under the commodity supplemental food 
                program without a formal review of the eligibility of 
                the participant.
                    ``(B) Minimum certification period.--Subject to 
                subparagraphs (C) and (D), a State shall establish for 
                the commodity supplemental food program of the State a 
                certification period of--
                          ``(i) not less than 1 year; but
                          ``(ii) not more than 3 years.
                    ``(C) Temporary certification.--An eligible 
                applicant for the commodity supplemental food program in 
                a State may be provided with a temporary monthly 
                certification to fill any caseload slot resulting from 
                nonparticipation by certified participants.
                    ``(D) Approvals.--A certification period of more 
                than 1 year established by a State under subparagraph 
                (B) shall be subject to the approval of the Secretary, 
                who shall approve such a certification period on the 
                condition that, with respect to each participant 
                receiving benefits under the commodity supplemental food 
                program of the State, the local agency in the State 
                administering the commodity supplemental food program, 
                on an annual basis during the certification period 
                applicable to the participant--

[[Page 132 STAT. 4655]]

                          ``(i) verifies the address and continued 
                      interest of the participant; and
                          ``(ii) has sufficient reason to determine that 
                      the participant still meets the income eligibility 
                      standards under paragraph (1), which may include a 
                      determination that the participant has a fixed 
                      income.''.
SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL 
                          NUTRITION PROJECTS.

    Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e(a)(2)(A)) is amended by striking ``2018'' and inserting 
``2023''.
SEC. 4104. FOOD DONATION STANDARDS.

    Section 203D of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
7507), as amended by section 4018(c), is amended by adding at the end 
the following:
    ``(f) Food Donation Standards.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Apparently wholesome food.--The term 
                `apparently wholesome food' has the meaning given the 
                term in section 22(b) of the Child Nutrition Act of 1966 
                (42 U.S.C. 1791(b)).
                    ``(B) Institution of higher education.--The term 
                `institution of higher education' has the meaning given 
                the term in section 102 of the Higher Education Act of 
                1965 (20 U.S.C. 1002).
                    ``(C) Qualified direct donor.--The term `qualified 
                direct donor' means a retail food store, wholesaler, 
                agricultural producer, restaurant, caterer, school food 
                authority, or institution of higher education.
            ``(2) Guidance.--
                    ``(A) In general.--Not later than 180 days after the 
                date of enactment of the Agriculture Improvement Act of 
                2018, the Secretary shall issue guidance to promote 
                awareness of donations of apparently wholesome food 
                protected under section 22(c) of the Child Nutrition Act 
                of 1966 (42 U.S.C. 1791(c)) by qualified direct donors 
                in compliance with applicable State and local health, 
                food safety, and food handling laws (including 
                regulations).
                    ``(B) Issuance.--The Secretary shall encourage State 
                agencies and emergency feeding organizations to share 
                the guidance issued under subparagraph (A) with 
                qualified direct donors.''.

                        Subtitle C--Miscellaneous

SEC. 4201. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402(a) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 3007(a)) is amended by striking ``2018'' and inserting 
``2023''.
SEC. 4202. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR 
                          DISTRIBUTION TO SCHOOLS AND SERVICE 
                          INSTITUTIONS.

    Section 10603(b) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 612c-4(b)) is amended by striking ``2018'' and inserting 
``2023''.

[[Page 132 STAT. 4656]]

SEC. 4203. SERVICE OF TRADITIONAL FOODS IN PUBLIC FACILITIES.

    Section 4033(d)(1) of the Agricultural Act of 2014 (128 Stat. 818) 
is amended--
            (1) by striking ``and'' the 1st place it appears,
            (2) by inserting ``, a State, a county or county equivalent, 
        a local educational agency, and an entity or person authorized 
        to facilitate the donation, storage, preparation, or serving of 
        traditional food by the operator of a food service program'' 
        after ``organization'', and
            (3) by inserting ``storage, preparation, or'' after 
        ``donation to or''.
SEC. 4204. HEALTHY FOOD FINANCING INITIATIVE.

    Section 243 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6953) is amended--
            (1) in subsection (a), by inserting ``and enterprises'' 
        after ``retailers'';
            (2) in subsection (b)(3)(B)(iii), by inserting ``and 
        enterprises'' after ``retailers''; and
            (3) in subsection (c)(2)(B)(ii), by inserting ``as 
        applicable,'' before ``to accept''.
SEC. 4205. THE GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM.

    (a) Amendment to Program.--Section 4405 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 7517) is amended--
            (1) by striking the heading and inserting ``the gus 
        schumacher nutrition incentive program'',
            (2) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        governmental agency or nonprofit organization.'',
                    (B) in paragraph (3) by striking ``means the'' and 
                all that follows through the period at the end, and 
                inserting the following:
        ``means--
                    ``(A) the supplemental nutrition assistance program 
                established under the Food and Nutrition Act of 2008 (7 
                U.S.C. 2011 et seq.); and
                    ``(B) the programs for nutrition assistance under 
                section 19 of such Act (7 U.S.C. 2028).'', and
                    (C) by adding at the end the following:
            ``(4) Healthcare partner.--The term `healthcare partner' 
        means a healthcare provider, including--
                    ``(A) a hospital;
                    ``(B) a Federally-qualified health center (as 
                defined in section 1905(l) of the Social Security Act 
                (42 U.S.C. 1396d(l)));
                    ``(C) a hospital or clinic operated by the Secretary 
                of Veterans Affairs; or
                    ``(D) a healthcare provider group.
            ``(5) Member.--The term `member' means, as determined by the 
        applicable eligible entity or healthcare partner carrying out a 
        project under subsection (c) in accordance with procedures 
        established by the Secretary--
                    ``(A) an individual eligible for--
                          ``(i) benefits under the Food and Nutrition 
                      Act of 2008 (7 U.S.C. 2011 et seq.); or

[[Page 132 STAT. 4657]]

                          ``(ii) medical assistance under a State plan 
                      or a waiver of such a plan under title XIX of the 
                      Social Security Act (42 U.S.C. 1396 et seq.) and 
                      enrolled under such plan or waiver; and
                    ``(B) a member of a low-income household that 
                suffers from, or is at risk of developing, a diet-
                related health condition.'',
            (3) in subsection (b)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (B) by striking ``The'' 
                      and inserting ``Except as provided in subparagraph 
                      (D)(iii), the'',
                          (ii) in subparagraph (C) by adding at the end 
                      the following:
                          ``(iii) Tribal agencies.--The Secretary may 
                      allow a Tribal agency to use funds provided to the 
                      Indian Tribe of the Tribal agency through a 
                      Federal agency (including the Indian Health 
                      Service) or other Federal benefit to satisfy all 
                      or part of the non-Federal share described in 
                      clause (i) if such use is otherwise consistent 
                      with the purpose of such funds.'',
                          (iii) by redesignating subparagraphs (B) and 
                      (C) as subparagraphs (C) and (D), and
                          (iv) by inserting after subparagraph (A) the 
                      following:
                    ``(B) Partners and collaborators.--An eligible 
                entity that receives a grant under this subsection may 
                partner with, or make subgrants to, public, private, 
                nonprofit, or for-profit entities, including--
                          ``(i) an emergency feeding organization;
                          ``(ii) an agricultural cooperative;
                          ``(iii) a producer network or association;
                          ``(iv) a community health organization;
                          ``(v) a public benefit corporation;
                          ``(vi) an economic development corporation;
                          ``(vii) a farmers' market;
                          ``(viii) a community-supported agriculture 
                      program;
                          ``(ix) a buying club;
                          ``(x) a retail food store participating in the 
                      supplemental nutrition assistance program;
                          ``(xi) a State, local, or tribal agency;
                          ``(xii) another eligible entity that receives 
                      a grant under this subsection; and
                          ``(xiii) any other entity the Secretary 
                      designates.'',
                    (B) in paragraph (2)--
                          (i) by amending subparagraph (A) to read as 
                      follows:
                    ``(A) In general.--To receive a grant under this 
                subsection, an eligible entity shall--
                          ``(i) meet the application criteria set forth 
                      by the Secretary; and
                          ``(ii) propose a project that, at a minimum--
                                    ``(I) has the support of the State 
                                agency administering the supplemental 
                                nutrition assistance program;
                                    ``(II) would increase the purchase 
                                of fruits and vegetables by low-income 
                                households participating

[[Page 132 STAT. 4658]]

                                in the supplemental nutrition assistance 
                                program by providing an incentive for 
                                the purchase of fruits and vegetables at 
                                the point of purchase to a household 
                                purchasing food with supplemental 
                                nutrition assistance program benefits;
                                    ``(III) except in the case of 
                                projects receiving $100,000 or less over 
                                1 year, would measure the purchase of 
                                fruits and vegetables by low-income 
                                households participating in the 
                                supplemental nutrition assistance 
                                program;
                                    ``(IV) ensures that the same terms 
                                and conditions apply to purchases made 
                                by individuals with benefits issued 
                                under the Food and Nutrition Act of 2008 
                                and incentives provided for in this 
                                subsection as apply to purchases made by 
                                individuals who are not members of 
                                households receiving benefits, such as 
                                provided for in section 278.2(b) of 
                                title 7, Code of Federal Regulations (or 
                                a successor regulation);
                                    ``(V) has adequate plans to collect 
                                data for reporting and agrees to provide 
                                that information for the report 
                                described in subsection (e)(2)(B)(iii); 
                                and
                                    ``(VI) would share information with 
                                the Nutrition Incentive Program 
                                Training, Technical Assistance, 
                                Evaluation, and Information Centers 
                                established under subsection (e).'',
                          (ii) in subparagraph (B)--
                                    (I) by striking clause (v),
                                    (II) by redesignating clause (vi) as 
                                clause (x), and
                                    (III) by inserting after clause (iv) 
                                the following:
                          ``(v) include a project design--
                                    ``(I) that provides incentives when 
                                fruits or vegetables are purchased using 
                                supplemental nutrition assistance 
                                program benefits; and
                                    ``(II) in which the incentives 
                                earned may be used only to purchase 
                                fruits or vegetables;
                          ``(vi) have demonstrated the ability to 
                      provide services to underserved communities;
                          ``(vii) include coordination with multiple 
                      stakeholders, such as farm organizations, 
                      nutrition education programs, cooperative 
                      extension services, public health departments, 
                      health providers, private and public health 
                      insurance agencies, cooperative grocers, grocery 
                      associations, and community-based and 
                      nongovernmental organizations;
                          ``(viii) offer supplemental services in high-
                      need communities, including online ordering, 
                      transportation between home and store, and 
                      delivery services;
                          ``(ix) include food retailers that are open--
                                    ``(I) for extended hours; and
                                    ``(II) most or all days of the year; 
                                or'', and
                    (C) by striking paragraphs (3) and (4),
            (4) in subsection (c)--
                    (A) in paragraph (1) by striking ``subsection (b) 
                $5,000,000 for each of fiscal years 2014 through 2018''

[[Page 132 STAT. 4659]]

                and inserting ``this section $5,000,000 for each of 
                fiscal years 2014 through 2023'', and
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``subsection (b)'' and inserting 
                      ``this section'',
                          (ii) in subparagraph (B) by striking ``and'' 
                      at the end,
                          (iii) in subparagraph (C) by striking the 
                      period at the end and inserting a semicolon, and
                          (iv) by adding at the end the following:
                    ``(C) $45,000,000 for fiscal year 2019;
                    ``(D) $48,000,000 for fiscal year 2020;
                    ``(E) $48,000,000 for fiscal year 2021;
                    ``(F) $53,000,000 for fiscal year 2022; and
                    ``(G) $56,000,000 for fiscal year 2023 and each 
                fiscal year thereafter.
            ``(3) Use of funds.--With respect to funds made available 
        under this section for fiscal years 2019 through 2023--
                    ``(A) for each fiscal year the Secretary shall use 
                not more than 10 percent of such funds available for 
                such fiscal year for the produce prescription program 
                described in subsection (c);
                    ``(B) for each fiscal year not more than 8 percent 
                of such funds available for such fiscal year shall be 
                used by the National Institute of Food and Agriculture 
                and the Food and Nutrition Service for administration; 
                and
                    ``(C) the Secretary shall use for the Nutrition 
                Incentive Program Training, Technical Assistance, 
                Evaluation, and Information Centers established under 
                subsection (e) not more than--
                          ``(i) $17,000,000 in the aggregate for fiscal 
                      years 2019 and 2020; and
                          ``(ii) $7,000,000 for each of the fiscal years 
                      2021 through 2023.'',
            (5) by redesignating subsection (c) as subsection (f), and
            (6) by inserting after subsection (b) the following:

    ``(c) Produce Prescription Program.--
            ``(1) In general.--The Secretary shall establish a grant 
        program under which the Secretary shall award grants to eligible 
        entities to conduct projects that demonstrate and evaluate the 
        impact of the projects on--
                    ``(A) the improvement of dietary health through 
                increased consumption of fruits and vegetables;
                    ``(B) the reduction of individual and household food 
                insecurity; and
                    ``(C) the reduction in healthcare use and associated 
                costs.
            ``(2) Healthcare partners.--In carrying out a project using 
        a grant received under paragraph (1), an eligible entity shall 
        partner with 1 or more healthcare partners.
            ``(3) Grant applications.--
                    ``(A) In general.--To be eligible to receive a grant 
                under paragraph (1), an eligible entity--
                          ``(i) shall--
                                    ``(I) prescribe fresh fruits and 
                                vegetables to members;

[[Page 132 STAT. 4660]]

                                    ``(II) submit to the Secretary an 
                                application containing such information 
                                as the Secretary may require, including 
                                the information described in 
                                subparagraph (B); and
                          ``(ii) may--
                                    ``(I) provide financial or non-
                                financial incentives for members to 
                                purchase or procure fresh fruits and 
                                vegetables;
                                    ``(II) provide educational resources 
                                on nutrition to members; and
                                    ``(III) establish additional 
                                accessible locations for members to 
                                procure fresh fruits and vegetables.
                    ``(B) Application.--An application shall--
                          ``(i) identify the 1 or more healthcare 
                      partners with which the eligible entity is 
                      partnering under paragraph (2); and
                          ``(ii) include--
                                    ``(I) a description of the methods 
                                by which an eligible entity shall--
                                            ``(aa) screen and verify 
                                        eligibility for members for 
                                        participation in a produce 
                                        prescription project, in 
                                        accordance with procedures 
                                        established under subsection 
                                        (a)(5);
                                            ``(bb) implement an 
                                        effective produce prescription 
                                        project, including the role of 
                                        each healthcare partner in 
                                        implementing the produce 
                                        prescription project;
                                            ``(cc) evaluate members 
                                        participating in a produce 
                                        prescription project with 
                                        respect to the matters described 
                                        in subparagraphs (A) through (C) 
                                        of paragraph (1);
                                            ``(dd) provide educational 
                                        opportunities relating to 
                                        nutrition to members 
                                        participating in a produce 
                                        prescription project; and
                                            ``(ee) inform members of the 
                                        availability of the produce 
                                        prescription project, including 
                                        locations at which produce 
                                        prescriptions may be redeemed;
                                    ``(II) a description of any 
                                additional nonprofit or emergency 
                                feeding organizations that shall be 
                                involved in the project and the role of 
                                each additional nonprofit or emergency 
                                feeding organization in implementing and 
                                evaluating an effective produce 
                                prescription project;
                                    ``(III) documentation of a 
                                partnership agreement with a relevant 
                                State Medicaid agency or other 
                                appropriate entity, as determined by the 
                                Secretary, to evaluate the effectiveness 
                                of the produce prescription project in 
                                reducing healthcare use and associated 
                                costs;
                                    ``(IV) adequate plans to collect 
                                data for reporting and agreement to 
                                provide that information for the report 
                                described in subsection (e)(2)(B)(iii); 
                                and
                                    ``(V) agreement to share information 
                                with the Nutrition Incentive Program 
                                Training, Technical

[[Page 132 STAT. 4661]]

                                Assistance, Evaluation, and Information 
                                Centers established under subsection 
                                (e).
            ``(4) Coordination.--In carrying out the grant program 
        established under paragraph (1), the Secretary shall coordinate 
        with the Secretary of Health and Human Services and the heads of 
        other appropriate Federal agencies that carry out activities 
        relating to healthcare partners.
            ``(5) Partnerships.--
                    ``(A) In general.--In carrying out the grant program 
                under paragraph (1), the Secretary may enter into 1 or 
                more memoranda of understanding with a Federal agency, a 
                State, or a private entity to ensure the effective 
                implementation and evaluation of each project.
                    ``(B) Memorandum of understanding.--A memorandum of 
                understanding entered into under subparagraph (A) shall 
                include--
                          ``(i) a description of a plan to provide 
                      educational opportunities relating to nutrition to 
                      members participating in produce prescription 
                      projects;
                          ``(ii) a description of the role of the 
                      Federal agency, State, or private entity, as 
                      applicable, in implementing and evaluating an 
                      effective produce prescription project; and
                          ``(iii) documentation of a partnership 
                      agreement with a relevant State Medicaid agency or 
                      other appropriate entity, as determined by the 
                      Secretary.

    ``(d) Applicability.--
            ``(1) In general.--The value of any benefit provided to a 
        participant in any activity funded under subsections (b) or (c) 
        shall be treated as supplemental nutrition benefits under 
        section 8(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
        2017(b)).
            ``(2) Prohibition on collection of sales taxes.--Each State 
        shall ensure that no State or local tax is collected on a 
        purchase of food with assistance provided under subsections (b) 
        and (c).
            ``(3) No limitation on benefits.--Grants made available 
        under subsections (b) and (c) shall not be used to carry out any 
        project that limits the use of benefits under the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other 
        Federal nutrition law.
            ``(4) Household allotment.--Assistance provided under 
        subsections (b) and (c) to households receiving benefits under 
        the supplemental nutrition assistance program shall not--
                    ``(A) be considered part of the supplemental 
                nutrition assistance program benefits of the household; 
                or
                    ``(B) be used in the collection or disposition of 
                claims under section 13 of the Food and Nutrition Act of 
                2008 (7 U.S.C. 2022).

    ``(e) Nutrition Incentive Program Training, Technical Assistance, 
Evaluation, and Information Centers.--
            ``(1) In general.--The Secretary shall--
                    ``(A) establish 1 or more Nutrition Incentive 
                Program Training, Technical Assistance, Evaluation, and 
                Information Centers, in consultation with the Director 
                of the National Institute of Food and Agriculture; and

[[Page 132 STAT. 4662]]

                    ``(B) to the extent practicable, consult on the 
                design and scope of such Centers with grocers, farmers, 
                health professionals, researchers, incentive program 
                managers, and employees of the Department of Agriculture 
                with direct experience with implementation of existing 
                incentive programs or projects.
            ``(2) Establishment.--The Centers shall be capable of 
        providing services related to grants under subsections (b) and 
        (c), including--
                    ``(A) offering incentive program training and 
                technical assistance to applicants and grantees to the 
                extent practicable, including--
                          ``(i) collecting and providing information on 
                      best practices that may include communications, 
                      signage, record-keeping, incentive instruments, 
                      development and integration of point of sale 
                      systems, and reporting;
                          ``(ii) disseminating information and assisting 
                      with collaboration among grantee projects, 
                      applicable State agencies, and nutrition education 
                      programs;
                          ``(iii) facilitating communication between 
                      grantees and the Department of Agriculture and 
                      applicable State agencies; and
                          ``(iv) providing support for the development 
                      of best practices for produce prescription 
                      projects and the sharing of information among 
                      eligible entities and healthcare providers that 
                      participate in a produce prescription project 
                      under subsection (c); and
                          ``(v) other services identified by the 
                      Secretary; and
                    ``(B) creating a system to collect and compile core 
                data sets from eligible entities that--
                          ``(i) uses standard metrics with consideration 
                      of outcome measures for existing projects;
                          ``(ii) includes to the extent practicable 
                      grocers, farmers, health professionals, 
                      researchers, incentive program managers, and 
                      employees of the Department of Agriculture with 
                      direct experience with implementation of existing 
                      incentive programs in the design of the instrument 
                      through which data will be collected and the 
                      mechanism for reporting;
                          ``(iii) compiles project data from grantees, 
                      and beginning in fiscal year 2020 generates an 
                      annual report to Congress on grant outcomes, 
                      including--
                                    ``(I) the results of the project; 
                                and
                                    ``(II) the amount of grant funds 
                                used for the project; and
                          ``(iv) creates and maintains a publicly 
                      accessible online site that makes annual reports 
                      and incentive program information available in an 
                      anonymized format that protects confidential, 
                      personal, or other sensitive data.
            ``(3) Cooperative agreement.--
                    ``(A) In general.--To carry out paragraph (1), the 
                Secretary may, on a competitive basis, enter into 1 or 
                more cooperative agreements with 1 or more organizations 
                with expertise in developing outcome-based reporting, at

[[Page 132 STAT. 4663]]

                least 1 of which has expertise in the food insecurity 
                nutrition incentive program and at least 1 of which has 
                expertise in produce prescription projects.
                    ``(B) Inclusion.--The organizations referred to in 
                subparagraph (A) may include--
                          ``(i) nongovernmental organizations;
                          ``(ii) State cooperative extension services;
                          ``(iii) regional food system centers;
                          ``(iv) Federal, State, or Tribal agencies;
                          ``(v) institutions of higher education (as 
                      defined in section 101(a) of the Higher Education 
                      Act of 1965 (20 U.S.C. 1001(a))); or
                          ``(vi) other appropriate entities as 
                      determined by the Secretary.''.

    (b) Conforming Amendment.--The table of contents of the Food, 
Conservation, and Energy Act of 2008 (Public Law 113-188) is amended by 
striking the item relating to section 4405 and inserting the following:

``Sec. 4405. The Gus Schumacher nutrition incentive program.''.

SEC. 4206. <<NOTE: 7 USC 7518.>>  MICRO-GRANTS FOR FOOD SECURITY.

    (a) Purpose.--The purpose of this section is to increase the 
quantity and quality of locally grown food through small-scale 
gardening, herding, and livestock operations in food insecure 
communities in areas of the United States that have significant levels 
of food insecurity and import a significant quantity of food.
    (b) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        entity that--
                    (A) is--
                          (i) an individual;
                          (ii) an Indian tribe or tribal organization, 
                      as defined in section 4 of the Indian Self-
                      Determination and Education Assistance Act (25 
                      U.S.C. 5304);
                          (iii) a nonprofit organization engaged in 
                      increasing food security, as determined by the 
                      Secretary, including--
                                    (I) a religious organization;
                                    (II) a food bank; or
                                    (III) a food pantry;
                          (iv) a federally funded educational facility, 
                      including--
                                    (I) a Head Start program or an Early 
                                Head Start program carried out under the 
                                Head Start Act (42 U.S.C. 9831 et seq.);
                                    (II) a public elementary school or 
                                public secondary school;
                                    (III) a public institution of higher 
                                education (as defined in section 101 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1001));
                                    (IV) a Tribal College or University 
                                (as defined in section 316(b) of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1059c(b))); or
                                    (V) a job training program; or
                          (v) a local or Tribal government that may not 
                      levy local taxes under State or Federal law; and
                    (B) is located in an eligible State.

[[Page 132 STAT. 4664]]

            (2) Eligible state.--The term ``eligible State'' means--
                    (A) the State of Alaska;
                    (B) the State of Hawaii;
                    (C) American Samoa;
                    (D) the Commonwealth of the Northern Mariana 
                Islands;
                    (E) the Commonwealth of Puerto Rico;
                    (F) the Federated States of Micronesia;
                    (G) Guam;
                    (H) the Republic of the Marshall Islands;
                    (I) the Republic of Palau; and
                    (J) the United States Virgin Islands.

    (c) Establishment.--The Secretary shall distribute funds to the 
agricultural department or agency of each eligible State for the 
competitive distribution of subgrants to eligible entities to increase 
the quantity and quality of locally grown food in food insecure 
communities, including through small-scale gardening, herding, and 
livestock operations.
    (d) Distribution of Funds.--
            (1) In general.--Of the amount made available under 
        subsection (g), the Secretary shall distribute--
                    (A) 40 percent to the State of Alaska;
                    (B) 40 percent to the State of Hawaii; and
                    (C) 2.5 percent to each eligible State described in 
                any of subparagraphs (C) through (J) of subsection 
                (b)(2).
            (2) Carryover of funds.--Funds distributed under paragraph 
        (1) shall remain available until expended.
            (3) Administrative funds.--An eligible State that receives 
        funds under paragraph (1) may use not more than 3 percent of 
        those funds--
                    (A) to administer the competition for providing 
                subgrants to eligible entities in that eligible State;
                    (B) to provide oversight of the subgrant recipients 
                in that eligible State; and
                    (C) to collect data and submit a report to the 
                Secretary under subsection (f)(2).

    (e) Subgrants to Eligible Entities.--
            (1) Amount of subgrants.--
                    (A) In general.--The amount of a subgrant to an 
                eligible entity under this section shall be--
                          (i) in the case of an eligible entity that is 
                      an individual, not greater than $5,000 per year; 
                      and
                          (ii) in the case of an eligible entity 
                      described in any of clauses (ii) through (v) of 
                      subsection (b)(1)(A), not greater than $10,000 per 
                      year.
                    (B) Matching requirement.--As a condition of 
                receiving a subgrant under this section, an eligible 
                entity shall provide funds equal to 10 percent of the 
                amount received by the eligible entity under the 
                subgrant, to be derived from non-Federal sources. A 
                State may waive the matching requirement for an 
                individual who otherwise meets the requirements to 
                receive a subgrant by the eligible State.
                    (C) Project period.--Funds received by an eligible 
                entity that is awarded a subgrant under this section 
                shall remain available for expenditure not later than 3 
                years after the date the funds are received.

[[Page 132 STAT. 4665]]

            (2) Priority.--In carrying out the competitive distribution 
        of subgrants under subsection (c), an eligible State may give 
        priority to an eligible entity that--
                    (A) has not previously received a subgrant under 
                this section; or
                    (B) is located in a community or region in that 
                eligible State with the highest degree of food 
                insecurity, as determined by the agricultural department 
                or agency of the eligible State.
            (3) Projects.--An eligible State may provide subgrants to 2 
        or more eligible entities to carry out the same project.
            (4) Use of subgrant funds by eligible entities.--An eligible 
        entity that receives a subgrant under this section shall use the 
        funds to engage in activities that will increase the quantity 
        and quality of locally grown food for food insecure individuals, 
        families, neighborhoods, and communities, including by--
                    (A) purchasing gardening tools or equipment, soil, 
                soil amendments, seeds, plants, animals, canning 
                equipment, refrigeration, or other items necessary to 
                grow and store food;
                    (B) purchasing or building composting units;
                    (C) purchasing or building towers designed to grow 
                leafy green vegetables;
                    (D) expanding an area under cultivation or engaging 
                in other activities necessary to be eligible to receive 
                funding under the environmental quality incentives 
                program established under chapter 4 of subtitle D of 
                title XII of the Food Security Act of 1985 (16 U.S.C. 
                3839aa et seq.) for a high tunnel;
                    (E) engaging in an activity that extends the growing 
                season;
                    (F) starting or expanding hydroponic and aeroponic 
                farming of any scale;
                    (G) building, buying, erecting, or repairing fencing 
                for livestock, poultry, or reindeer;
                    (H) purchasing and equipping a slaughter and 
                processing facility approved by the Secretary;
                    (I) traveling to participate in agricultural 
                education provided by--
                          (i) a State cooperative extension service;
                          (ii) a land-grant college or university (as 
                      defined in section 1404 of the National 
                      Agricultural Research, Extension, and Teaching 
                      Policy Act of 1977 (7 U.S.C. 3103));
                          (iii) a Tribal College or University (as 
                      defined in section 316(b) of the Higher Education 
                      Act of 1965 (20 U.S.C. 1059c(b)));
                          (iv) an Alaska Native-serving institution or a 
                      Native Hawaiian-serving institution (as such terms 
                      are defined in section 317(b) of the Higher 
                      Education Act of 1965 (20 U.S.C. 1059d(b))); or
                          (v) a Federal or State agency;
                    (J) paying for shipping of purchased items relating 
                to growing or raising food for local consumption or 
                purchase;
                    (K) creating or expanding avenues for--

[[Page 132 STAT. 4666]]

                          (i) the sale of food commodities, specialty 
                      crops, and meats that are grown by the eligible 
                      entity for sale in the local community; or
                          (ii) increasing the availability of fresh, 
                      locally grown, and nutritious food; and
                    (L) engaging in other activities relating to 
                increasing food security (including subsistence), as 
                determined by the Secretary.
            (5) Eligibility for other financial assistance.--An eligible 
        entity shall not be ineligible to receive financial assistance 
        under another program administered by the Secretary as a result 
        of receiving a subgrant under this section.

    (f) Reporting Requirement.--
            (1) Subgrant recipients.--As a condition of receiving a 
        subgrant under this section, an eligible entity shall agree to 
        submit to the eligible State in which the eligible entity is 
        located a report--
                    (A) not later than 60 days after the end of the 
                project funded by the subgrant; and
                    (B) that describes the use of the subgrants by 
                eligible entities, the quantity of food grown through 
                small-scale gardening, herding, and livestock 
                operations, and the number of food insecure individuals 
                fed as a result of the subgrant.
            (2) Report to the secretary.--Not later than 120 days after 
        the date on which an eligible State receives a report from each 
        eligible entity in that State under paragraph (1), the eligible 
        State shall submit to the Secretary a report that describes, in 
        the aggregate, the information and data contained in the reports 
        received from those eligible entities.

    (g) Funding.--
            (1) Authorization of appropriations.--There is authorized to 
        be appropriated to the Secretary to carry out this section 
        $10,000,000 for fiscal year 2019 and each fiscal year 
        thereafter, to remain available until expended.
            (2) Appropriations in advance.--Only funds appropriated 
        under paragraph (1) in advance specifically to carry out this 
        section shall be available to carry out this section.
SEC. 4207. <<NOTE: 42 USC 1760 note.>>  BUY AMERICAN REQUIREMENTS.

    (a) Enforcement.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall--
            (1) enforce full compliance with the requirements of section 
        12(n) of the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1760(n)) for purchases of agricultural commodities, 
        including fish, meats, vegetables, and fruits, and the products 
        thereof, and
            (2) ensure that States and school food authorities fully 
        understand their responsibilities under such Act.

    (b) Requirement.--The products of the agricultural commodities 
described in subsection (a)(1) shall be processed in the United States 
and substantially contain--
            (1) meats, vegetables, fruits, and other agricultural 
        commodities produced in--
                    (A) a State,
                    (B) the District of Columbia,
                    (C) the Commonwealth of Puerto Rico, or

[[Page 132 STAT. 4667]]

                    (D) any territory or possession of the United 
                States, or
            (2) fish harvested--
                    (A) within the Exclusive Economic Zone of the United 
                States, as described in Presidential Proclamation 5030 
                (48 Fed. Reg. 10605; March 10, 1983), or
                    (B) by a United States flagged vessel.

    (c) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary shall submit to Congress a report on the 
actions the Secretary has taken, and plans to take, to comply with this 
section.
SEC. 4208. <<NOTE: 7 USC 2026a note.>>  HEALTHY FLUID MILK 
                          INCENTIVES PROJECTS.

    (a) Definition of Fluid Milk.--In this section the term ``fluid 
milk'' means all varieties of pasteurized cow's milk that--
            (1) is without flavoring or sweeteners,
            (2) is consistent with the most recent dietary 
        recommendations,
            (3) is packaged in liquid form, and
            (4) contains vitamins A and D at levels consistent with the 
        Food and Drug Administration, State, and local standards for 
        fluid milk.

    (b) Projects.--The Secretary of Agriculture shall carry out, under 
such terms and conditions as the Secretary considers to be appropriate, 
healthy fluid milk incentive projects to develop and test methods to 
increase the purchase and consumption of fluid milk by members of 
households that receive supplemental nutrition assistance program 
benefits by providing an incentive for the purchase of fluid milk at the 
point of purchase to members of households purchasing food with 
supplemental nutrition assistance program benefits.
    (c) Grants or Cooperative Agreements.--
            (1) In general.--To carry out this section, the Secretary, 
        on a competitive basis, shall enter into cooperative agreements 
        with, or provide grants to, governmental entities or nonprofit 
        organizations for projects that meet the purpose and selection 
        criteria specified in this subsection.
            (2) Application.--To be eligible to enter into a cooperative 
        agreement or receive a grant under this subsection, a government 
        entity or nonprofit organization shall submit to the Secretary 
        an application containing such information as the Secretary may 
        require.
            (3) Selection criteria.--Projects proposed in applications 
        shall be evaluated against publicly disseminated criteria that 
        shall incorporate a scientifically based strategy that is 
        designed to improve diet quality and nutritional outcomes 
        through the increased purchase of fluid milk by members of 
        households that participate in the supplemental nutrition 
        assistance program.
            (4) Use of funds.--Funds made available to carry out this 
        section shall not be used for any project that limits the use of 
        benefits provided under the Food and Nutrition Act of 2008.

    (d) Evaluation and Reporting.--
            (1) Evaluation.--
                    (A) Independent evaluation.--

[[Page 132 STAT. 4668]]

                          (i) In general.--The Secretary shall provide 
                      for an independent evaluation of projects selected 
                      under this section that measures, to the maximum 
                      extent practicable, the impact on health and 
                      nutrition.
                          (ii) Requirement.--The independent evaluation 
                      under this subparagraph shall use rigorous 
                      methodologies, particularly random assignment or 
                      other methods that are capable of producing 
                      scientifically valid information regarding which 
                      activities are effective.
                    (B) Costs.--The Secretary may use funds not to 
                exceed 7 percent of the funding provided to carry out 
                this section to pay costs associated with evaluating the 
                outcomes of the healthy fluid milk incentive projects.
            (2) Reporting.--Not later than December 31 of 2020, and 
        biennially thereafter, the Secretary shall submit to the 
        Committee on Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        a report that includes a description of--
                    (A) the status of each healthy fluid milk incentives 
                project, and
                    (B) the results of any completed evaluation that--
                          (i) include, to the maximum extent 
                      practicable, the impact of the healthy fluid milk 
                      incentive projects on health and nutrition 
                      outcomes among households participating in such 
                      projects, and
                          (ii) have not been submitted in a previous 
                      report under this paragraph.
            (3) Public dissemination.--In addition to the reporting 
        requirements under paragraph (2), evaluation results shall be 
        shared publicly to promote wide use of successful strategies.

    (e) Funding.--
            (1) Authorization of appropriations.--There is authorized to 
        be appropriated $20,000,000 to carry out and evaluate the 
        outcomes of projects under this section, to remain available 
        until expended.
            (2) Appropriations in advance.--Only funds appropriated 
        under paragraph (1) in advance specifically to carry out this 
        section shall be available to carry out this section.

                             TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 5101. MODIFICATION OF THE 3-YEAR EXPERIENCE ELIGIBILITY 
                          REQUIREMENT FOR FARM OWNERSHIP LOANS.

    Section 302(b) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1922(b)) is amended by adding at the end the following:
            ``(4) Waiver authority.--In the case of a qualified 
        beginning farmer or rancher, the Secretary may--
                    ``(A) reduce the 3-year requirement in paragraph (1) 
                to 1 or 2 years, if the farmer or rancher has--
                          ``(i) not less than 16 credit hours of post-
                      secondary education in a field related to 
                      agriculture;
                          ``(ii) successfully completed a farm 
                      management curriculum offered by a cooperative 
                      extension service,

[[Page 132 STAT. 4669]]

                      a community college, an adult vocational 
                      agriculture program, a nonprofit organization, or 
                      a land-grant college or university;
                          ``(iii) at least 1 year of experience as hired 
                      farm labor with substantial management 
                      responsibilities;
                          ``(iv) successfully completed a farm 
                      mentorship, apprenticeship, or internship program 
                      with an emphasis on management requirements and 
                      day-to-day farm management decisions;
                          ``(v) significant business management 
                      experience;
                          ``(vi) been honorably discharged from the 
                      armed forces of the United States;
                          ``(vii) successfully repaid a youth loan made 
                      under section 311(b); or
                          ``(viii) an established relationship with an 
                      individual who has experience in farming or 
                      ranching, or is a retired farmer or rancher, and 
                      is participating as a counselor in a Service Corps 
                      of Retired Executives program authorized under 
                      section 8(b)(1)(B) of the Small Business Act (15 
                      U.S.C. 637(b)(1)(B)), or with a local farm or 
                      ranch operator or organization, approved by the 
                      Secretary, that is committed to mentoring the 
                      farmer or rancher; or
                    ``(B) waive the 3-year requirement in paragraph (1) 
                if the farmer or rancher meets the requirements of 
                clauses (iii) and (viii) of subparagraph (A).''.
SEC. 5102. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    Section 304(h) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924(h)) is amended by striking ``2018'' and inserting ``2023''.
SEC. 5103. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

    Section 305 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1925) is amended--
            (1) in subsection (a)(2)--
                    (A) by striking ``$300,000'' and inserting 
                ``$600,000'';
                    (B) by striking ``$700,000'' and inserting 
                ``$1,750,000''; and
                    (C) by striking ``2000'' and inserting ``2019''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``August'' and 
                inserting ``July''; and
                    (B) in paragraph (2), by striking ``ending on August 
                31, 1996'' and inserting ``that immediately precedes the 
                12-month period described in paragraph (1)''.
SEC. 5104. RELENDING PROGRAM TO RESOLVE OWNERSHIP AND SUCCESSION 
                          ON FARMLAND.

    Subtitle A of title III of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end 
the following:
``SEC. 310I. <<NOTE: 7 USC 1936c.>>  RELENDING PROGRAM TO RESOLVE 
                          OWNERSHIP AND SUCCESSION ON FARMLAND.

    ``(a) In General.--The Secretary may make loans to eligible entities 
described in subsection (b) so that the eligible entities

[[Page 132 STAT. 4670]]

may relend the funds to individuals and entities for the purposes 
described in subsection (c).
    ``(b) Eligible Entities.--Entities eligible for loans described in 
subsection (a) are cooperatives, credit unions, and nonprofit 
organizations with--
            ``(1) certification under section 1805.201 of title 12, Code 
        of Federal Regulations (or successor regulations), to operate as 
        a lender;
            ``(2) experience assisting socially disadvantaged farmers 
        and ranchers (as defined in subsection (a) of section 2501 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
        U.S.C. 2279)) or limited resource or new and beginning farmers 
        and ranchers, rural businesses, cooperatives, or credit unions, 
        including experience in making and servicing agricultural and 
        commercial loans; and
            ``(3) the ability to provide adequate assurance of the 
        repayment of a loan.

    ``(c) Eligible Purposes.--The proceeds from loans made by the 
Secretary pursuant to subsection (a) shall be re-lent by eligible 
entities for projects that assist heirs with undivided ownership 
interests to resolve ownership and succession on farmland that has 
multiple owners.
    ``(d) Preference.--In making loans under subsection (a), the 
Secretary shall give preference to eligible entities--
            ``(1) with not less than 10 years of experience serving 
        socially disadvantaged farmers and ranchers; and
            ``(2) in States that have adopted a statute consisting of an 
        enactment or adoption of the Uniform Partition of Heirs Property 
        Act, as approved and recommended for enactment in all States by 
        the National Conference of Commissioners on Uniform State Laws 
        in 2010, that relend to owners of heirs property (as defined in 
        that Act).

    ``(e) Loan Terms and Conditions.--The following terms and conditions 
shall apply to loans made under this section:
            ``(1) The interest rate at which intermediaries may borrow 
        funds under this section shall be determined by the Secretary.
            ``(2) The rates, terms, and payment structure for borrowers 
        to which intermediaries lend shall be--
                    ``(A) determined by the intermediary in an amount 
                sufficient to cover the cost of operating and sustaining 
                the revolving loan fund; and
                    ``(B) clearly and publicly disclosed to qualified 
                ultimate borrowers.
            ``(3) Borrowers to which intermediaries lend shall be--
                    ``(A) required to complete a succession plan as a 
                condition of the loan; and
                    ``(B) be offered the opportunity to borrow 
                sufficient funds to cover costs associated with the 
                succession plan under subparagraph (A) and other 
                associated legal and closing costs.

    ``(f) Report.--Not later than 1 year after the date of enactment of 
this section, 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 operation 
and outcomes of the program under this section, with recommendations on 
how to strengthen the program.

[[Page 132 STAT. 4671]]

    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2019 through 2023.''.

                       Subtitle B--Operating Loans

SEC. 5201. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

    Section 313 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1943) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``$300,000'' and inserting 
                ``$400,000'';
                    (B) by striking ``$700,000'' and inserting 
                ``$1,750,000''; and
                    (C) by striking ``2000'' and inserting ``2019''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``August'' and 
                inserting ``July''; and
                    (B) in paragraph (2), by striking ``ending on August 
                31, 1996'' and inserting ``that immediately precedes the 
                12-month period described in paragraph (1)''.
SEC. 5202. MICROLOANS.

    Section 313(c)(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1943(c)(2)) is amended by striking ``title'' and inserting 
``subsection''.
SEC. 5203. COOPERATIVE LENDING PILOT PROJECTS.

    Section 313(c)(4)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1943(c)(4)(A)) is amended by striking ``2018'' and 
inserting ``2023''.

                  Subtitle C--Administrative Provisions

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT 
                          ACCOUNTS PILOT PROGRAM.

    Section 333B(h) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1983b(h)) is amended by striking ``2018'' and inserting 
``2023''.
SEC. 5302. LOAN AUTHORIZATION LEVELS.

    Section 346(b)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1994(b)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``$4,226,000,000 for each of fiscal years 2008 through 2018'' 
        and inserting ``$10,000,000,000 for each of fiscal years 2019 
        through 2023''; and
            (2) by striking subparagraphs (A) and (B) and inserting the 
        following:
                    ``(A) $3,000,000,000 shall be for direct loans, of 
                which--
                          ``(i) $1,500,000,000 shall be for farm 
                      ownership loans under subtitle A; and
                          ``(ii) $1,500,000,000 shall be for operating 
                      loans under subtitle B; and
                    ``(B) $7,000,000,000 shall be for guaranteed loans, 
                of which--

[[Page 132 STAT. 4672]]

                          ``(i) $3,500,000,000 shall be for farm 
                      ownership loans under subtitle A; and
                          ``(ii) $3,500,000,000 shall be for operating 
                      loans under subtitle B.''.
SEC. 5303. LOAN FUND SET-ASIDES.

    Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by striking 
``2018'' and inserting ``2023''.
SEC. 5304. USE OF ADDITIONAL FUNDS FOR DIRECT OPERATING MICROLOANS 
                          UNDER CERTAIN CONDITIONS.

    Section 346(b) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1994(b)) is amended by adding at the end the following:
            ``(5) Use of additional funds for direct operating 
        microloans under certain conditions.--
                    ``(A) In general.--If the Secretary determines that 
                the amount needed for a fiscal year for direct operating 
                loans (including microloans) under subtitle B is greater 
                than the aggregate principal amount authorized for that 
                fiscal year by this Act, an appropriations Act, or any 
                other provision of law, the Secretary shall make 
                additional microloans under subtitle B using amounts 
                made available under subparagraph (C).
                    ``(B) Notice.--Not later than 15 days before the 
                date on which the Secretary uses the authority under 
                subparagraph (A), the Secretary shall submit a notice of 
                the use of that authority to--
                          ``(i) the Committee on Appropriations of the 
                      House of Representatives;
                          ``(ii) the Committee on Appropriations of the 
                      Senate;
                          ``(iii) the Committee on Agriculture of the 
                      House of Representatives; and
                          ``(iv) the Committee on Agriculture, 
                      Nutrition, and Forestry of the Senate.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $5,000,000 for each of fiscal years 2019 
                through 2023.''.
SEC. 5305. EQUITABLE RELIEF.

    The Consolidated Farm and Rural Development Act is amended by 
inserting after section 365 (7 U.S.C. 2008) the following:
``SEC. 366. <<NOTE: 7 USC 2008a.>>  EQUITABLE RELIEF.

    ``(a) In General.--Subject to subsection (b), the Secretary may 
provide a form of relief described in subsection (c) to any farmer or 
rancher who--
            ``(1) received a direct farm ownership, operating, or 
        emergency loan under this title; and
            ``(2) the Secretary determines is not in compliance with the 
        requirements of this title with respect to the loan.

    ``(b) Limitation.--The Secretary may only provide relief to a farmer 
or rancher under subsection (a) if the Secretary determines that the 
farmer or rancher--
            ``(1) acted in good faith; and

[[Page 132 STAT. 4673]]

            ``(2) relied on an action of, or the advice of, the 
        Secretary (including any authorized representative of the 
        Secretary) to the detriment of the farming or ranching operation 
        of the farmer or rancher.

    ``(c) Forms of Relief.--The Secretary may provide to a farmer or 
rancher under subsection (a) any of the following forms of relief:
            ``(1) The farmer or rancher may retain loans or other 
        benefits received in association with the loan with respect to 
        which the farmer or rancher was determined to be noncompliant 
        under subsection (a)(2).
            ``(2) The farmer or rancher may receive such other equitable 
        relief as the Secretary determines to be appropriate.

    ``(d) Condition.--As a condition of receiving relief under this 
section, the Secretary may require the farmer or rancher to take actions 
designed to remedy the noncompliance.
    ``(e) Administrative Appeal; Judicial Review.--A determination or 
action of the Secretary under this section--
            ``(1) shall be final; and
            ``(2) shall not be subject to administrative appeal or 
        judicial review under chapter 7 of title 5, United States 
        Code.''.
SEC. 5306. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS; QUALIFIED 
                          BEGINNING FARMERS AND RANCHERS.

    The Consolidated Farm and Rural Development Act is amended by 
inserting after section 366 (as added by section 5305) the following:
``SEC. 367. <<NOTE: 7 USC 2008b.>>  SOCIALLY DISADVANTAGED FARMERS 
                        AND RANCHERS; QUALIFIED BEGINNING FARMERS 
                        AND RANCHERS.

    ``In the case of a loan guaranteed by the Secretary under subtitle A 
or B to a socially disadvantaged farmer or rancher (as defined in 
section 355(e)) or a qualified beginning farmer or rancher, the 
Secretary may provide for a standard guarantee plan, which shall cover 
an amount equal to 95 percent of the outstanding principal of the 
loan.''.
SEC. 5307. EMERGENCY LOAN ELIGIBILITY.

    Section 373(b)(2)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008h(b)(2)(B)) is amended--
            (1) by redesignating clauses (i) and (ii) as subclauses (I) 
        and (II), respectively, and indenting appropriately;
            (2) in the matter preceding subclause (I) (as so 
        redesignated), by striking ``The Secretary'' and inserting the 
        following:
                          ``(i) In general.--The Secretary''; and
            (3) by adding at the end the following:
                          ``(ii) Restructured loans.--For purposes of 
                      clause (i), a borrower who was restructured with a 
                      write-down or restructuring under section 353 
                      shall not be considered to have received debt 
                      forgiveness on a loan made or guaranteed under 
                      this title.''.

[[Page 132 STAT. 4674]]

                        Subtitle D--Miscellaneous

SEC. 5401. TECHNICAL CORRECTIONS TO THE CONSOLIDATED FARM AND 
                          RURAL DEVELOPMENT ACT.

    (a)(1) Section 321(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)) is amended in the second sentence by striking 
``and limited liability companies'' and inserting ``limited liability 
companies, and such other legal entities''.
    (2) <<NOTE: 7 USC 1961 note.>>  The amendment made by this 
subsection shall take effect as if included in the enactment of section 
5201(2)(C) of the Agricultural Act of 2014 (Public Law 113-79) in lieu 
of the amendment made by such section.

    (b)(1) Section 331D(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981d(e)) is amended by inserting after 
``within 60 days after receipt of the notice required in this section'' 
the following: ``or, in extraordinary circumstances as determined by the 
applicable State director, after the 60-day period''.
    (2) <<NOTE: 7 USC 1981d note.>>  The amendment made by this 
subsection shall take effect as if included in the enactment of section 
10 of the Agricultural Credit Improvement Act of 1992 (Public Law 102-
554).

    (c)(1) Section 333A(f)(1)(A) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983a(f)(1)(A)) is amended by striking ``114'' 
and inserting ``339''.
    (2) <<NOTE: 7 USC 1983a note.>>  The amendment made by this 
subsection shall take effect as if included in the enactment of section 
14 of the Agricultural Credit Improvement Act of 1992 (Public Law 102-
554).

    (d) Section 339(d)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C.1989(d)(3)) is amended by striking ``preferred certified 
lender'' and inserting ``Preferred Certified Lender''.
    (e)(1) Section 343(a)(11)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(11)(C)) is amended by striking ``or 
joint operators'' and inserting ``joint operator, or owners''.
    (2) <<NOTE: 7 USC 1991 note.>>  The amendment made by this 
subsection shall take effect as of the effective date of section 
5303(a)(2) of the Agricultural Act of 2014 (Public Law 113-79).

    (f)(1) Section 343(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(b)) is amended by striking ``307(e)'' and inserting 
``307(d)''.
    (2) <<NOTE: 7 USC 1901 note.>>  The amendment made by paragraph (1) 
shall take effect as of the date of enactment of the Agricultural Act of 
2014 (Public Law 113-79).

    (g) Section 346(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C.1994(a)) is amended by striking the last comma.
SEC. 5402. STATE AGRICULTURAL MEDIATION PROGRAMS.

    (a) Issues Covered by State Mediation Programs.--Section 501(c) of 
the Agricultural Credit Act of 1987 (7 U.S.C. 5101(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                          (i) in the matter preceding clause (i), by 
                      striking ``under the jurisdiction of the 
                      Department of Agriculture'';
                          (ii) in clause (ii), by inserting ``and the 
                      national organic program established under the 
                      Organic Foods

[[Page 132 STAT. 4675]]

                      Production Act of 1990 (7 U.S.C. 6501 et seq.)'' 
                      before the period at the end; and
                          (iii) by striking clause (vii) and inserting 
                      the following:
                          ``(vii) Lease issues, including land leases 
                      and equipment leases.
                          ``(viii) Family farm transition.
                          ``(ix) Farmer-neighbor disputes.
                          ``(x) Such other issues as the Secretary or 
                      the head of the department of agriculture of each 
                      participating State considers appropriate for 
                      better serving the agricultural community and 
                      persons eligible for mediation.''; and
                    (B) by adding at the end the following:
                    ``(C) Mediation services.--Funding provided for the 
                mediation program of a qualifying State may also be used 
                to provide credit counseling to persons described in 
                paragraph (2)--
                          ``(i) prior to the initiation of any mediation 
                      involving the Department of Agriculture; or
                          ``(ii) unrelated to any ongoing dispute or 
                      mediation in which the Department of Agriculture 
                      is a party.'';
            (2) in paragraph (2)(A)--
                    (A) in clause (ii), by striking ``and'' after the 
                semicolon;
                    (B) in clause (iii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                          ``(iv) any other persons involved in an issue 
                      for which mediation services are provided by a 
                      mediation program described in paragraph 
                      (1)(B).''; and
            (3) in paragraph (3)(F), by striking ``that persons'' and 
        inserting the following: ``that--
                          ``(i) the Department of Agriculture receives 
                      adequate notification of those issues; and
                          ``(ii) persons''.

    (b) Report Required.--Section 505 of the Agricultural Credit Act of 
1987 (7 U.S.C. 5105) is amended to read as follows:
``SEC. 505. REPORT.

    ``Not later than 2 years after the date of enactment of the 
Agriculture Improvement Act of 2018, the Secretary shall submit to 
Congress a report describing--
            ``(1) the effectiveness of the State mediation programs 
        receiving matching grants under this subtitle;
            ``(2) recommendations for improving the delivery of 
        mediation services to producers;
            ``(3) the steps being taken to ensure that State mediation 
        programs receive timely funding under this subtitle; and
            ``(4) the savings to the States as a result of having a 
        mediation program.''.

    (c) Authorization of Appropriations.--Section 506 of the 
Agricultural Credit Act of 1987 (7 U.S.C. 5106) is amended by striking 
``2018'' and inserting ``2023''.
SEC. 5403. COMPENSATION OF BANK DIRECTORS.

    Section 4.21 of the Farm Credit Act of 1971 (12 U.S.C. 2209) is 
repealed.

[[Page 132 STAT. 4676]]

SEC. 5404. SHARING OF PRIVILEGED AND CONFIDENTIAL INFORMATION.

    Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 2254) is 
amended by adding at the end the following:
    ``(e) Sharing of Privileged and Confidential Information.--A System 
institution shall not be considered to have waived the confidentiality 
of a privileged communication with an attorney or an accountant if the 
System institution provides the content of the communication to the Farm 
Credit Administration pursuant to the supervisory or regulatory 
authorities of the Farm Credit Administration.''.
SEC. 5405. FACILITY HEADQUARTERS.

    Section 5.16 of the Farm Credit Act of 1971 (12 U.S.C. 2251) is 
amended by striking all that precedes ``to the rental of quarters'' and 
inserting the following:
``SEC. 5.16. QUARTERS AND FACILITIES FOR THE FARM CREDIT 
                          ADMINISTRATION.

    ``(a) The Farm Credit Administration shall maintain its principal 
office within the Washington D.C.-Maryland-Virginia standard 
metropolitan statistical area, and such other offices within the United 
States as in its judgment are necessary.
    ``(b) As an alternate''.
SEC. 5406. REMOVAL AND PROHIBITION AUTHORITY; INDUSTRY-WIDE 
                          PROHIBITION.

    Part C of title V of the Farm Credit Act of 1971 is amended by 
inserting after section 5.29 (12 U.S.C. 2265) the following:
``SEC. 5.29A. <<NOTE: 12 USC 2265a.>>  REMOVAL AND PROHIBITION 
                            AUTHORITY; INDUSTRY-WIDE PROHIBITION.

    ``(a) Definition of Person.--In this section, the term `person' 
means--
            ``(1) an individual; and
            ``(2) in the case of a specific determination by the Farm 
        Credit Administration, a legal entity.

    ``(b) Industry-wide Prohibition.--Except as provided in subsection 
(c), any person who, pursuant to an order issued under section 5.28 or 
5.29, has been removed or suspended from office at a System institution 
or prohibited from participating in the conduct of the affairs of a 
System institution shall not, during the period of effectiveness of the 
order, continue or commence to hold any office in, or participate in any 
manner in the conduct of the affairs of--
            ``(1) any insured depository institution subject to section 
        8(e)(7)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
        1818(e)(7)(A)(i));
            ``(2) any institution subject to section 8(e)(7)(A)(ii) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(A)(ii));
            ``(3) any insured credit union under the Federal Credit 
        Union Act (12 U.S.C. 1751 et seq.);
            ``(4) any Federal home loan bank;
            ``(5) any institution chartered under this Act;
            ``(6) any appropriate Federal financial institutions 
        regulatory agency (as defined in section 8(e)(7)(D) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(D)));
            ``(7) the Federal Housing Finance Agency; or

[[Page 132 STAT. 4677]]

            ``(8) the Farm Credit Administration.

    ``(c) Exception for Institution-affiliated Party That Receives 
Written Consent.--
            ``(1) In general.--
                    ``(A) Affiliated parties.--If, on or after the date 
                on which an order described in subsection (b) is issued 
                that removes or suspends an institution-affiliated party 
                from office at a System institution or prohibits an 
                institution-affiliated party from participating in the 
                conduct of the affairs of a System institution, that 
                party receives written consent described in subparagraph 
                (B), subsection (b) shall not apply to that party--
                          ``(i) to the extent provided in the written 
                      consent received; and
                          ``(ii) with respect to the institution 
                      described in each written consent.
                    ``(B) Written consent described.--The written 
                consent referred to in subparagraph (A) is written 
                consent received from--
                          ``(i) the Farm Credit Administration; and
                          ``(ii) each appropriate Federal financial 
                      institutions regulatory agency (as defined in 
                      section 8(e)(7)(D) of the Federal Deposit 
                      Insurance Act (12 U.S.C. 1818(e)(7)(D))) of the 
                      applicable institution described in any of 
                      paragraphs (1), (2), (3), or (4) of subsection (b) 
                      with respect to which the party proposes to be 
                      become an affiliated party.
            ``(2) Disclosure.--Any agency described in clause (i) or 
        (ii) of paragraph (1)(B) that provides a written consent under 
        that paragraph shall--
                    ``(A) report the action to the Farm Credit 
                Administration; and
                    ``(B) publicly disclose the action.
            ``(3) Consultation between agencies.--The agencies described 
        in clauses (i) and (ii) of paragraph (1)(B) shall consult with 
        each other before providing any written consent under that 
        paragraph.

    ``(d) Violations.--A violation of subsection (b) by any person who 
is subject to an order described in that subsection shall be treated as 
violation of that order.''.
SEC. 5407. JURISDICTION OVER INSTITUTION-AFFILIATED PARTIES.

    Part C of title V of the Farm Credit Act of 1971 is amended by 
inserting after section 5.31 (12 U.S.C. 2267) the following:
``SEC. 5.31A. <<NOTE: 12 USC 2267a.>>  JURISDICTION OVER 
                            INSTITUTION-AFFILIATED PARTIES.

    ``(a) In General.--For purposes of sections 5.25, 5.26, and 5.32, 
the jurisdiction of the Farm Credit Administration over parties, and the 
authority of the Farm Credit Administration to initiate actions, shall 
include enforcement authority over institution-affiliated parties.
    ``(b) Effect of Separation on Jurisdiction and Authority.--Subject 
to subsection (c), the resignation, termination of employment or 
participation, or separation of an institution-affiliated party 
(including a separation caused by the merger, consolidation, 
conservatorship, or receivership of a Farm Credit System institution) 
shall not affect the jurisdiction and authority of the Farm Credit

[[Page 132 STAT. 4678]]

Administration to issue any notice or order and proceed under this part 
against that party.
    ``(c) Limitation.--To proceed against a party under subsection (b), 
the notice or order described in that subsection shall be served not 
later than 6 years after the date on which the party ceased to be an 
institution-affiliated party with respect to the applicable Farm Credit 
System institution.
    ``(d) Applicability.--The date on which a party ceases to be an 
institution-affiliated party described in subsection (c) may occur 
before, on, or after the date of enactment of this section.''.
SEC. 5408. DEFINITION OF INSTITUTION-AFFILIATED PARTY.

    Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) is 
amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following:
            ``(4) the term `institution-affiliated party' means--
                    ``(A) a director, officer, employee, shareholder, or 
                agent of a System institution;
                    ``(B) an independent contractor (including an 
                attorney, appraiser, or accountant) who knowingly or 
                recklessly participates in--
                          ``(i) a violation of law (including 
                      regulations) that is associated with the 
                      operations and activities of 1 or more System 
                      institutions;
                          ``(ii) a breach of fiduciary duty; or
                          ``(iii) an unsafe practice that causes or is 
                      likely to cause more than a minimum financial loss 
                      to, or a significant adverse effect on, a System 
                      institution; and
                    ``(C) any other person, as determined by the Farm 
                Credit Administration (by regulation or on a case-by-
                case basis) who participates in the conduct of the 
                affairs of a System institution; and''.
SEC. 5409. PROHIBITION ON USE OF FUNDS.

    Section 5.65 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-14) is 
amended by adding at the end the following:
    ``(e) Prohibition on Uses of Funds Related to Federal Agricultural 
Mortgage Corporation.--No funds from administrative accounts or from the 
Farm Credit System Insurance Fund may be used by the Corporation to 
provide assistance to the Federal Agricultural Mortgage Corporation or 
to support any activities related to the Federal Agricultural Mortgage 
Corporation.''.
SEC. 5410. EXPANSION OF ACREAGE EXCEPTION TO LOAN AMOUNT 
                          LIMITATION.

    (a) In General.--Section 8.8(c)(2) of the Farm Credit Act of 1971 
(12 U.S.C. 2279aa-8(c)(2)) is amended by striking ``1,000'' and 
inserting ``2,000''.
    (b) <<NOTE: 12 USC 2279aa-8 note.>>  Effective Date.--The amendment 
made by subsection (a) shall take effect 1 year after the date a report 
submitted in accordance with section 5414 of this Act indicates that it 
is feasible to increase the acreage limitation in section 8.8(c)(2) of 
the Farm Credit Act of 1971 to 2,000 acres.

[[Page 132 STAT. 4679]]

SEC. 5411. REPEAL OF OBSOLETE PROVISIONS; TECHNICAL CORRECTIONS.
            (1) Section 1.1(c) of the Farm Credit Act of 1971 (12 U.S.C. 
        2001(c)) is amended in the first sentence by striking 
        ``including any costs of defeasance under section 4.8(b),''.
            (2) Section 1.2 of the Farm Credit Act of 1971 (12 U.S.C. 
        2002) is amended by striking subsection (a) and inserting the 
        following:

    ``(a) Composition.--The Farm Credit System shall include the Farm 
Credit Banks, the bank for cooperatives, Agricultural Credit Banks, the 
Federal Land Bank Associations, the Federal Land Credit Associations, 
the Production Credit Associations, the agricultural credit 
associations, the Federal Farm Credit Banks Funding Corporation, the 
Federal Agricultural Mortgage Corporation, service corporations 
established pursuant to section 4.25, and such other institutions as may 
be made a part of the Farm Credit System, all of which shall be 
chartered by and subject to regulation by the Farm Credit 
Administration.''.
            (3) Section 2.4 of the Farm Credit Act of 1971 (12 U.S.C. 
        2075) is amended by striking subsection (d).
            (4) Section 3.0(a) of the Farm Credit Act of 1971 (12 U.S.C. 
        2121(a)) is amended--
                    (A) in the third sentence, by striking ``and a 
                Central Bank for Cooperatives''; and
                    (B) by striking the fifth sentence.
            (5) Section 3.2 of the Farm Credit Act of 1971 (12 U.S.C. 
        2123) is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (1), by striking ``not merged 
                      into the United Bank for Cooperatives or the 
                      National Bank for Cooperatives''; and
                          (ii) in paragraph (2)(A), in the matter 
                      preceding clause (i), by striking ``(other than 
                      the National Bank for Cooperatives)'';
                    (B) by striking subsection (b);
                    (C) in subsection (a)--
                          (i) by striking ``(a)(1) Each bank'' and 
                      inserting the following:

    ``(a) In General.--Each bank''; and
                          (ii) by striking ``(2)(A) If approved'' and 
                      inserting the following:

    ``(b) Nomination and Election.--
            ``(1) In general.--If approved'';
                    (D) in subsection (b)(1) (as so designated)--
                          (i) in subparagraph (B), by striking ``(B) The 
                      total'' and inserting the following:
            ``(2) Number of votes.--The total''; and
                          (ii) by redesignating clauses (i) and (ii) as 
                      subparagraphs (A) and (B), respectively, and 
                      indenting appropriately; and
                    (E) in paragraph (2) (as so designated), by striking 
                ``paragraph'' and inserting ``subsection''.
            (6) Section 3.5 of the Farm Credit Act of 1971 (12 U.S.C. 
        2126) is amended in the third sentence by striking ``district''.
            (7) Section 3.7(a) of the Farm Credit Act of 1971 (12 U.S.C. 
        2128(a)) is amended by striking the second sentence.

[[Page 132 STAT. 4680]]

            (8) Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 (12 
        U.S.C. 2129(b)(1)(A)) is amended by inserting ``(or any 
        successor agency)'' after ``Rural Electrification 
        Administration''.
            (9) Section 3.9(a) of the Farm Credit Act of 1971 (12 U.S.C. 
        2130(a)) is amended by striking the third sentence.
            (10) Section 3.10 of the Farm Credit Act of 1971 (12 U.S.C. 
        2131) is amended--
                    (A) in subsection (c), by striking the second 
                sentence; and
                    (B) in subsection (d)--
                          (i) by striking ``district'' each place it 
                      appears; and
                          (ii) by inserting ``for cooperatives (or any 
                      successor bank)'' before ``on account''.
            (11) Section 3.11 of the Farm Credit Act of 1971 (12 U.S.C. 
        2132) is amended--
                    (A) in subsection (a), in the first sentence, by 
                striking ``subsections (b) and (c) of this section'' and 
                inserting ``subsection (b)'';
                    (B) in subsection (b)--
                          (i) in the first sentence, by striking 
                      ``district''; and
                          (ii) in the second sentence, by striking 
                      ``Except as provided in subsection (c) below, 
                      all'' and inserting ``All'';
                    (C) by striking subsection (c); and
                    (D) by redesignating subsections (d) through (f) as 
                subsections (c) through (e), respectively.
            (12) Part B of title III of the Farm Credit Act of 1971 (12 
        U.S.C. 2141 et seq.) is amended in the part heading by striking 
        ``United and''.
            (13) Section 3.20 of the Farm Credit Act of 1971 (12 U.S.C. 
        2141) is amended--
                    (A) in subsection (a), by striking ``or the United 
                Bank for Cooperatives, as the case may be''; and
                    (B) in subsection (b), by striking ``the district 
                banks for cooperatives and the Central Bank for 
                Cooperatives'' and inserting ``the constituent banks 
                described in section 413(b) of the Agricultural Credit 
                Act of 1987 (12 U.S.C. 2121 note; Public Law 100-233)''.
            (14) Section 3.21 of the Farm Credit Act of 1971 (12 U.S.C. 
        2142) is repealed.
            (15) Section 3.28 of the Farm Credit Act of 1971 (12 U.S.C. 
        2149) is amended by striking ``a district bank for cooperatives 
        and the Central Bank for Cooperatives'' and inserting ``the 
        constituent banks described in section 413(b) of the 
        Agricultural Credit Act of 1987 (12 U.S.C. 2121 note; Public Law 
        100-233)''.
            (16) Section 3.29 of the Farm Credit Act of 1971 (12 U.S.C. 
        2149a) is repealed.
            (17) Section 4.0 of the Farm Credit Act of 1971 (12 U.S.C. 
        2151) is repealed.
            (18) Section 4.8 of the Farm Credit Act of 1971 (12 U.S.C. 
        2159) is amended--
                    (A) by striking the section designation and heading 
                and all that follows through ``Each bank'' in subsection 
                (a) and inserting the following:

[[Page 132 STAT. 4681]]

``SEC. 4.8. PURCHASE AND SALE OF OBLIGATIONS.

    ``Each bank''; and
                    (B) by striking subsection (b).
            (19) Section 4.9 of the Farm Credit Act of 1971 (12 U.S.C. 
        2160) is amended--
                    (A) in subsection (d)--
                          (i) by striking paragraph (2) and inserting 
                      the following:
            ``(3) Representation of board.--The Farm Credit System 
        Insurance Corporation shall not have representation on the board 
        of directors of the Corporation.'';
                          (ii) in the undesignated matter following 
                      paragraph (1)(D), by striking ``In selecting'' and 
                      inserting the following:
            ``(2) Considerations.--In selecting''; and
                          (iii) in paragraph (2) (as so designated), by 
                      inserting ``of paragraph (1)'' after ``(A) and 
                      (B)'';
                    (B) by striking subsection (e); and
                    (C) by redesignating subsection (f) as subsection 
                (e).
            (20) Section 4.9A(c) of the Farm Credit Act of 1971 (12 
        U.S.C. 2162(c)) is amended--
                    (A) by striking ``institution, and--'' in the matter 
                preceding paragraph (1) and all that follows through the 
                period at the end of paragraph (2) and inserting 
                ``institution.'';
                    (B) by striking ``If an institution'' and inserting 
                the following:
            ``(1) In general.--If an institution'';
                    (C) in paragraph (1) (as so designated), by striking 
                ``the receiver of the institution'' and inserting ``the 
                Farm Credit System Insurance Corporation, acting as 
                receiver,''; and
                    (D) by adding at the end the following:
            ``(2) Funding.--The Farm Credit System Insurance Corporation 
        shall use such funds from the Farm Credit Insurance Fund as are 
        sufficient to carry out this section.''.
            (21) Section 4.12A(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2184(a)) is amended by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--A Farm Credit System bank or association 
        shall provide to a stockholder of the bank or association a 
        current list of stockholders of the bank or association not 
        later than 7 calendar days after the date on which the bank or 
        association receives a written request for the stockholder list 
        from the stockholder.''.
            (22) Section 4.14A of the Farm Credit Act of 1971 (12 U.S.C. 
        2202a) is amended--
                    (A) in subsection (a)--
                          (i) in the matter preceding paragraph (1), by 
                      inserting ``and section 4.36'' before the colon at 
                      the end; and
                          (ii) in paragraph (5)(B)(ii)(I), by striking 
                      ``4.14C,'';
                    (B) by striking subsection (h);
                    (C) by redesignating subsections (i) through (l) as 
                subsections (h) through (k), respectively; and
                    (D) in subsection (k) (as so redesignated), by 
                striking ``production credit''.

[[Page 132 STAT. 4682]]

            (23) Section 4.14C of the Farm Credit Act of 1971 (12 U.S.C. 
        2202c) is repealed.
            (24) Section 4.17 of the Farm Credit Act of 1971 (12 U.S.C. 
        2205) is amended in the third sentence by striking ``Federal 
        intermediate credit banks and''.
            (25) Section 4.19(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2207(a)) is amended--
                    (A) in the first sentence--
                          (i) by striking ``district''; and
                          (ii) by striking ``Federal land bank 
                      association and production credit''; and
                    (B) in the second sentence, by striking ``units'' 
                and inserting ``institutions''.
            (26) Section 4.38 of the Farm Credit Act of 1971 (12 U.S.C. 
        2219c) is amended by striking ``The Assistance Board established 
        under section 6.0 and all'' and inserting ``All''.
            (27) Section 4.39 of the Farm Credit Act of 1971 (12 U.S.C. 
        2219d) is amended by striking ``8.0(7))'' and inserting 
        ``8.0)''.
            (28) Section 5.16 of the Farm Credit Act of 1971 (12 U.S.C. 
        2251) is amended in the undesignated matter following paragraph 
        (5) of subsection (b) (as designated by section 5405)--
                    (A) in the fifth sentence, by striking ``In actions 
                undertaken by the banks pursuant to the foregoing 
                provisions of this section'' and inserting the 
                following:
            ``(5) Agent for banks.--In actions undertaken by the banks 
        pursuant to this section'';
                    (B) in the fourth sentence, by striking ``The 
                plans'' and inserting the following:
            ``(4) Approval of board.--The plans'';
                    (C) in the third sentence, by striking ``The 
                powers'' and inserting the following:
            ``(3) Powers of banks.--The powers'';
                    (D) in the second sentence, by striking ``Such 
                advances'' and inserting the following:
            ``(2) Advances.--The advances of funds described in 
        paragraph (1)''; and
                    (E) in the first sentence, by striking ``The Board'' 
                and inserting the following:

    ``(c) Financing.--
            ``(1) In general.--The Board''.
            (29) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 
        U.S.C. 2252(a)(2)) is amended by striking the second and third 
        sentences.
            (30) Section 5.18 of the Farm Credit Act of 1971 (12 U.S.C. 
        2253) is repealed.
            (31) Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 
        2254) is amended--
                    (A) in subsection (a)--
                          (i) in the first sentence, by striking 
                      ``Except for Federal land bank associations, 
                      each'' and inserting ``Each''; and
                          (ii) by striking the second sentence; and
                    (B) in subsection (b)--
                          (i) by striking ``(b)(1) Each'' and inserting 
                      ``(b) Each'';
                          (ii) in the matter preceding paragraph (2) (as 
                      so designated)--

[[Page 132 STAT. 4683]]

                                    (I) in the second sentence, by 
                                striking ``, except with respect to any 
                                actions taken by any banks of the System 
                                under section 4.8(b),''; and
                                    (II) by striking the third sentence; 
                                and
                          (iii) by striking paragraphs (2) and (3).
            (32) Section 5.31 of the Farm Credit Act of 1971 (12 U.S.C. 
        2267) is amended in the second sentence by striking ``4.14A(i)'' 
        and inserting ``4.14A(h)''.
            (33) Section 5.32(h) of the Farm Credit Act of 1971 (12 
        U.S.C. 2268(h)) is amended by striking ``4.14A(i)'' and 
        inserting ``4.14A(h)''.
            (34) Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 
        2271) is amended in paragraph (5) (as redesignated by section 
        5408(2))--
                    (A) in subparagraph (A), by adding ``and'' at the 
                end;
                    (B) by striking subparagraph (B);
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (D) in subparagraph (B) (as so redesignated)--
                          (i) by striking ``after December 31, 1992,''; 
                      and
                          (ii) by striking ``by the Farm Credit System 
                      Assistance Board under section 6.6 or''.
            (35) Section 5.38 of the Farm Credit Act of 1971 (12 U.S.C. 
        2274) is amended by striking ``a farm'' and all that follows 
        through ``land bank'' and inserting ``a Farm Credit Bank board, 
        officer, or employee shall not remove any director or officer of 
        any''.
            (36) Section 5.44 of the Farm Credit Act of 1971 (12 U.S.C. 
        2275) is repealed.
            (37) Section 5.58(2) of the Farm Credit Act of 1971 (12 
        U.S.C. 2277a-7(2)) is amended by striking the second sentence.
            (38) Section 5.60 of the Farm Credit Act of 1971 (12 U.S.C. 
        2277a-9) is amended--
                    (A) in subsection (b), by striking the subsection 
                designation and heading and all that follows through 
                ``The Corporation'' in paragraph (2) and inserting the 
                following:

    ``(b) Amounts in Fund.--The Corporation''; and
                    (B) in subsection (c)(2), by striking ``Insurance 
                Fund to--'' in the matter preceding subparagraph (A) and 
                all that follows through ``ensure'' in subparagraph (B) 
                and inserting ``Insurance Fund to ensure''.
            (39) Title VI of the Farm Credit Act of 1971 (12 U.S.C. 
        2278a et seq.) <<NOTE: 12 USC 2278a-- 2278a-13, 2278b-2-- 2278b-
        11.>>  is repealed.
            (40) Section 7.9 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279c-2) is amended by striking subsection (c).
            (41) Section 7.10(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279d(a)) is amended by striking paragraph (4) and 
        inserting the following:
            ``(4) the institution pays to the Farm Credit Insurance Fund 
        the amount by which the total capital of the institution exceeds 
        6 percent of the assets;''.
            (42) Section 8.0 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279aa) is amended--
                    (A) in paragraph (2), by striking ``means--'' in the 
                matter preceding subparagraph (A) and all that follows 
                through the period at the end of the undesignated matter

[[Page 132 STAT. 4684]]

                following subparagraph (B) and inserting ``means the 
                board of directors established under section 8.2.'';
                    (B) by striking paragraphs (6) and (8);
                    (C) by redesignating paragraphs (7), (9), and (10) 
                as paragraphs (6), (7), and (8), respectively; and
                    (D) in subparagraph (B)(i) of paragraph (7) (as so 
                redesignated), by striking ``(b) through (d)'' and 
                inserting ``(b) and (c)''.
            (43) Section 8.2 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279aa-2) is amended--
                    (A) by striking subsection (a);
                    (B) in subsection (b), by striking the subsection 
                designation and heading and all that follows through the 
                period at the end of paragraph (1) and inserting the 
                following:

    ``(a) In General.--
            ``(1) Establishment.--The Corporation shall be under the 
        management of the board of directors.'';
                    (C) in subsection (a) (as so designated)--
                          (i) by striking ``permanent board'' each place 
                      it appears and inserting ``Board'';
                          (ii) by striking paragraph (3);
                          (iii) by redesignating paragraphs (4) through 
                      (10) as paragraphs (3) through (9), respectively; 
                      and
                          (iv) in paragraph (3)(A) (as so redesignated), 
                      by striking ``(6)'' and inserting ``(5)''; and
                    (D) by redesignating subsection (c) as subsection 
                (b).
            (44) Section 8.4(a)(1) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa-4(a)(1)) is amended--
                    (A) in the sixth sentence--
                          (i) by striking ``Class B'' and inserting the 
                      following:
                          ``(iii) Class b stock.--Class B''; and
                          (ii) by striking ``8.2(b)(2)(B)'' and 
                      inserting ``8.2(a)(2)(B)'';
                    (B) in the fifth sentence--
                          (i) by striking ``Class A'' and inserting the 
                      following:
                          ``(ii) Class a stock.--Class A''; and
                          (ii) by striking ``8.2(b)(2)(A)'' and 
                      inserting ``8.2(a)(2)(A)'';
                    (C) in the fourth sentence, by striking ``The 
                stock'' and inserting the following:
                    ``(D) Classes of stock.--
                          ``(i) In general.--The stock'';
                    (D) by striking the third sentence and inserting the 
                following:
                    ``(C) Offers.--
                          ``(i) In general.--The Board shall offer the 
                      voting common stock to banks, other financial 
                      institutions, insurance companies, and System 
                      institutions under such terms and conditions as 
                      the Board may adopt.
                          ``(ii) Requirements.--The voting common stock 
                      shall be fairly and broadly offered to ensure 
                      that--
                                    ``(I) no institution or institutions 
                                acquire a disproportionate share of the 
                                total quantity of the

[[Page 132 STAT. 4685]]

                                voting common stock outstanding of a 
                                class of stock; and
                                    ``(II) capital contributions and 
                                issuances of voting common stock for the 
                                contributions are fairly distributed 
                                between entities eligible to hold class 
                                A stock and class B stock.'';
                    (E) in the second sentence, by striking ``Each 
                share'' and inserting the following:
                    ``(B) Number of votes.--Each share''; and
                    (F) in the first sentence, by striking ``The 
                Corporation'' and inserting the following:
                    ``(A) In general.--The Corporation''.
            (45) Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279aa-6) is amended--
                    (A) by striking subsection (d);
                    (B) by redesignating subsection (e) as subsection 
                (d); and
                    (C) in paragraph (2) of subsection (d) (as so 
                redesignated), by striking ``8.0(9))'' and inserting 
                ``8.0)''.
            (46) Section 8.9 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279aa-9) is amended by striking ``4.14C,'' each place it 
        appears.
            (47) Section 8.11(e) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa-11(e)) is amended by striking ``8.0(7))'' and 
        inserting ``8.0)''.
            (48) Section 8.32(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279bb-1(a)) is amended--
                    (A) in the first sentence of the matter preceding 
                paragraph (1), by striking ``Not sooner than the 
                expiration of the 3-year period beginning on the date of 
                enactment of the Farm Credit System Reform Act of 1996, 
                the'' and inserting ``The''; and
                    (B) in paragraph (1)(B), by striking ``8.0(9)(C)'' 
                and inserting ``8.0(7)(C)''.
            (49) Section 8.33(b)(2)(A) of the Farm Credit Act of 1971 
        (12 U.S.C. 2279bb-2(b)(2)(A)) is amended by striking ``8.6(e)'' 
        and inserting ``8.6(d)''.
            (50) Section 8.35 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279bb-4) is amended by striking subsection (e).
            (51) Section 8.38 of the Farm Credit Act of 1971 (12 U.S.C. 
        2279bb-7) is repealed.
            (52) Section 4 of the Agricultural Marketing Act (12 U.S.C. 
        1141b) is repealed.
            (53) Section 5 of the Agricultural Marketing Act (12 U.S.C. 
        1141c) is repealed.
            (54) Section 6 of the Agricultural Marketing Act (12 U.S.C. 
        1141d) is repealed.
            (55) Section 7 of the Agricultural Marketing Act (12 U.S.C. 
        1141e) is repealed.
            (56) Section 8 of the Agricultural Marketing Act (12 U.S.C. 
        1141f) is repealed.
            (57) Section 14 of the Agricultural Marketing Act (12 U.S.C. 
        1141i) is repealed.
            (58) The Act of June 22, 1939 (53 Stat. 853, chapter 239; 12 
        U.S.C. 1141d-1), is repealed.
            (59) Section 201(e) of the Emergency Relief and Construction 
        Act of 1932 (12 U.S.C. 1148) is repealed.

[[Page 132 STAT. 4686]]

            (60) Section 2 of the Act of July 14, 1953 (67 Stat. 150, 
        chapter 192; 12 U.S.C. 1148a-4), is repealed.
            (61) Section 32 of the Farm Credit Act of 1937 (12 U.S.C. 
        1148b) is repealed.
            (62) Section 33 of the Farm Credit Act of 1937 (12 U.S.C. 
        1148c) is repealed.
            (63) Section 34 of the Farm Credit Act of 1937 (12 U.S.C. 
        1148d) is repealed.
            (64) The Joint Resolution of March 3, 1932 (47 Stat. 60, 
        chapter 70; 12 U.S.C. 1401 et seq.), is repealed.
SEC. 5412. <<NOTE: 12 USC 2277a-10c.>>  CORPORATION AS CONSERVATOR 
                          OR RECEIVER; CERTAIN OTHER POWERS.

    Part E of title V of the Farm Credit Act of 1971 is amended by 
inserting after section 5.61B (12 U.S.C. 2277a-10b) the following:
``SEC. 5.61C. CORPORATION AS CONSERVATOR OR RECEIVER; CERTAIN 
                            OTHER POWERS.

    ``(a) Definition of Institution.--In this section, the term 
`institution' includes any System institution for which the Corporation 
has been appointed as conservator or receiver.
    ``(b) Certain Powers and Duties of Corporation as Conservator or 
Receiver.--In addition to the powers inherent in the express grant of 
corporate authority under section 5.58(9), and other powers exercised by 
the Corporation under this part, the Corporation shall have the 
following express powers to act as a conservator or receiver:
            ``(1) Rulemaking authority of corporation.--The Corporation 
        may prescribe such regulations as the Corporation determines to 
        be appropriate regarding the conduct of conservatorships or 
        receiverships.
            ``(2) General powers.--
                    ``(A) Successor to system institution.--The 
                Corporation shall, as conservator or receiver, and by 
                operation of law, succeed to--
                          ``(i) all rights, titles, powers, and 
                      privileges of the System institution, and of any 
                      stockholder, member, officer, or director of such 
                      System institution with respect to the System 
                      institution and the assets of the System 
                      institution; and
                          ``(ii) title to the books, records, and assets 
                      of any previous conservator or other legal 
                      custodian of such System institution.
                    ``(B) Operate the system institution.--The 
                Corporation may, as conservator or receiver--
                          ``(i) take over the assets of and operate the 
                      System institution with all the powers of the 
                      stockholders or members, the directors, and the 
                      officers of the System institution and conduct all 
                      business of the System institution;
                          ``(ii) collect all obligations and money due 
                      the System institution;
                          ``(iii) perform all functions of the System 
                      institution in the name of the System institution 
                      which are consistent with the appointment as 
                      conservator or receiver;
                          ``(iv) preserve and conserve the assets and 
                      property of such System institution; and

[[Page 132 STAT. 4687]]

                          ``(v) provide by contract for assistance in 
                      fulfilling any function, activity, action, or duty 
                      of the Corporation as conservator or receiver.
                    ``(C) Functions of system institution's officers, 
                directors, members, and stockholders.--The Corporation 
                may, by regulation or order, provide for the exercise of 
                any function by any stockholder, member, director, or 
                officer of any System institution for which the 
                Corporation has been appointed conservator or receiver.
                    ``(D) Powers as conservator.--Subject to any Farm 
                Credit Administration approvals required under this Act, 
                the Corporation may, as conservator, take such action as 
                may be--
                          ``(i) necessary to put the System institution 
                      in a sound and solvent condition; and
                          ``(ii) appropriate to carry on the business of 
                      the System institution and preserve and conserve 
                      the assets and property of the System institution.
                    ``(E) Additional powers as receiver.--The 
                Corporation may, as receiver, liquidate the System 
                institution and proceed to realize upon the assets of 
                the System institution, in such manner as the 
                Corporation determines to be appropriate.
                    ``(F) Organization of new system bank.--The 
                Corporation may, as receiver with respect to any System 
                bank, organize a bridge System bank under subsection 
                (h).
                    ``(G) Merger; transfer of assets and liabilities.--
                          ``(i) In general.--Subject to clause (ii), the 
                      Corporation may, as conservator or receiver--
                                    ``(I) merge the System institution 
                                with another System institution; and
                                    ``(II) transfer or sell any asset or 
                                liability of the System institution in 
                                default without any approval, 
                                assignment, or consent with respect to 
                                such transfer.
                          ``(ii) Approval.--No merger or transfer under 
                      clause (i) may be made to another System 
                      institution (other than a bridge System bank under 
                      subsection (h)) without the approval of the Farm 
                      Credit Administration.
                    ``(H) Payment of valid obligations.--The 
                Corporation, as conservator or receiver, shall, to the 
                extent that proceeds are realized from the performance 
                of contracts or the sale of the assets of a System 
                institution, pay all valid obligations of the System 
                institution in accordance with the prescriptions and 
                limitations of this section.
                    ``(I) Incidental powers.--
                          ``(i) In general.--The Corporation may, as 
                      conservator or receiver--
                                    ``(I) exercise all powers and 
                                authorities specifically granted to 
                                conservators or receivers, respectively, 
                                under this section and such incidental 
                                powers as shall be necessary to carry 
                                out such powers; and
                                    ``(II) take any action authorized by 
                                this section, which the Corporation 
                                determines is in the best interests of--

[[Page 132 STAT. 4688]]

                                            ``(aa) the System 
                                        institution in receivership or 
                                        conservatorship;
                                            ``(bb) System institutions;
                                            ``(cc) System institution 
                                        stockholders or investors; or
                                            ``(dd) the Corporation.
                          ``(ii) Termination of rights and claims.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), 
                                notwithstanding any other provision of 
                                law, the appointment of the Corporation 
                                as receiver for a System institution and 
                                the succession of the Corporation, by 
                                operation of law, to the rights, titles, 
                                powers, and privileges described in 
                                subparagraph (A) shall terminate all 
                                rights and claims that the stockholders 
                                and creditors of the System institution 
                                may have, arising as a result of their 
                                status as stockholders or creditors, 
                                against the assets or charter of the 
                                System institution or the Corporation.
                                    ``(II) Exceptions.--Subclause (I) 
                                shall not terminate the right to 
                                payment, resolution, or other 
                                satisfaction of the claims of 
                                stockholders and creditors described in 
                                that subclause, as permitted under 
                                paragraphs (10) and (11) and subsection 
                                (d).
                          ``(iii) Charter.--Notwithstanding any other 
                      provision of law, for purposes of this section, 
                      the charter of a System institution shall not be 
                      considered to be an asset of the System 
                      institution.
                    ``(J) Utilization of private sector.--In carrying 
                out its responsibilities in the management and 
                disposition of assets from System institutions, as 
                conservator, receiver, or in its corporate capacity, the 
                Corporation may utilize the services of private persons, 
                including real estate and loan portfolio asset 
                management, property management, auction marketing, 
                legal, and brokerage services, if the Corporation 
                determines utilization of such services is practicable, 
                efficient, and cost effective.
            ``(3) Authority of receiver to determine claims.--
                    ``(A) In general.--The Corporation may, as receiver, 
                determine claims in accordance with the requirements of 
                this subsection and regulations prescribed under 
                paragraph (4).
                    ``(B) Notice requirements.--The receiver, in any 
                case involving the liquidation or winding up of the 
                affairs of a closed System institution, shall--
                          ``(i) promptly publish a notice to the System 
                      institution's creditors to present their claims, 
                      together with proof, to the receiver by a date 
                      specified in the notice which shall be not less 
                      than 90 days after the publication of such notice; 
                      and
                          ``(ii) republish such notice approximately 1 
                      month and 2 months, respectively, after the 
                      publication under clause (i).
                    ``(C) Mailing required.--The receiver shall mail a 
                notice similar to the notice published under 
                subparagraph

[[Page 132 STAT. 4689]]

                (B)(i) at the time of such publication to any creditor 
                shown on the System institution's books--
                          ``(i) at the creditor's last address appearing 
                      in such books; or
                          ``(ii) upon discovery of the name and address 
                      of a claimant not appearing on the System 
                      institution's books within 30 days after the 
                      discovery of such name and address.
            ``(4) Rulemaking authority relating to determination of 
        claims.--The Corporation may prescribe regulations regarding the 
        allowance or disallowance of claims by the receiver and 
        providing for administrative determination of claims and review 
        of such determination.
            ``(5) Procedures for determination of claims.--
                    ``(A) Determination period.--
                          ``(i) In general.--Before the end of the 180-
                      day period beginning on the date any claim against 
                      a System institution is filed with the Corporation 
                      as receiver, the Corporation shall determine 
                      whether to allow or disallow the claim and shall 
                      notify the claimant of any determination with 
                      respect to such claim.
                          ``(ii) Extension of time.--The period 
                      described in clause (i) may be extended by a 
                      written agreement between the claimant and the 
                      Corporation.
                          ``(iii) Mailing of notice sufficient.--The 
                      requirements of clause (i) shall be deemed to be 
                      satisfied if the notice of any determination with 
                      respect to any claim is mailed to the last address 
                      of the claimant which appears--
                                    ``(I) on the System institution's 
                                books;
                                    ``(II) in the claim filed by the 
                                claimant; or
                                    ``(III) in documents submitted in 
                                proof of the claim.
                          ``(iv) Contents of notice of disallowance.--If 
                      any claim filed under clause (i) is disallowed, 
                      the notice to the claimant shall contain--
                                    ``(I) a statement of each reason for 
                                the disallowance; and
                                    ``(II) the procedures available for 
                                obtaining agency review of the 
                                determination to disallow the claim or 
                                judicial determination of the claim.
                    ``(B) Allowance of proven claims.--The receiver 
                shall allow any claim received on or before the date 
                specified in the notice published under paragraph 
                (3)(B)(i) by the receiver from any claimant which is 
                proved to the satisfaction of the receiver.
                    ``(C) Disallowance of claims filed after end of 
                filing period.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), claims filed after the date specified 
                      in the notice published under paragraph (3)(B)(i) 
                      shall be disallowed and such disallowance shall be 
                      final.
                          ``(ii) Certain exceptions.--Clause (i) shall 
                      not apply with respect to any claim filed by any 
                      claimant after the date specified in the notice 
                      published under paragraph (3)(B)(i) and such claim 
                      may be considered by the receiver if--

[[Page 132 STAT. 4690]]

                                    ``(I) the claimant did not receive 
                                notice of the appointment of the 
                                receiver in time to file such claim 
                                before such date; and
                                    ``(II) such claim is filed in time 
                                to permit payment of such claim.
                    ``(D) Authority to disallow claims.--
                          ``(i) In general.--The receiver may disallow 
                      any portion of any claim by a creditor or claim of 
                      security, preference, or priority which is not 
                      proved to the satisfaction of the receiver.
                          ``(ii) Payments to less than fully secured 
                      creditors.--In the case of a claim of a creditor 
                      against a System institution which is secured by 
                      any property or other asset of such System 
                      institution, any receiver appointed for any System 
                      institution--
                                    ``(I) may treat the portion of such 
                                claim which exceeds an amount equal to 
                                the fair market value of such property 
                                or other asset as an unsecured claim 
                                against the System institution; and
                                    ``(II) may not make any payment with 
                                respect to such unsecured portion of the 
                                claim other than in connection with the 
                                disposition of all claims of unsecured 
                                creditors of the System institution.
                          ``(iii) Exceptions.--No provision of this 
                      paragraph shall apply with respect to--
                                    ``(I) any extension of credit from 
                                any Federal Reserve bank or the United 
                                States Treasury to any System 
                                institution; or
                                    ``(II) any security interest in the 
                                assets of the System institution 
                                securing any such extension of credit.
                    ``(E) No judicial review of determination pursuant 
                to subparagraph (d).--No court may review the 
                Corporation's determination pursuant to subparagraph (D) 
                to disallow a claim.
                    ``(F) Legal effect of filing.--
                          ``(i) Statute of limitation tolled.--For 
                      purposes of any applicable statute of limitations, 
                      the filing of a claim with the receiver shall 
                      constitute a commencement of an action.
                          ``(ii) No prejudice to other actions.--Subject 
                      to paragraph (12) and the determination of claims 
                      by a receiver, the filing of a claim with the 
                      receiver shall not prejudice any right of the 
                      claimant to continue any action which was filed 
                      before the appointment of the receiver.
            ``(6) Provision for judicial determination of claims.--
                    ``(A) In general.--Before the end of the 60-day 
                period beginning on the earlier of--
                          ``(i) the end of the period described in 
                      paragraph (5)(A)(i) with respect to any claim 
                      against a System institution for which the 
                      Corporation is receiver; or
                          ``(ii) the date of any notice of disallowance 
                      of such claim pursuant to paragraph (5)(A)(i),
                the claimant may request administrative review of the 
                claim in accordance with paragraph (7) or file suit on 
                such claim (or continue an action commenced before the

[[Page 132 STAT. 4691]]

                appointment of the receiver) in the district or 
                territorial court of the United States for the district 
                within which the System institution's principal place of 
                business is located or the United States District Court 
                for the District of Columbia (and such court shall have 
                jurisdiction to hear such claim).
                    ``(B) Statute of limitations.--If any claimant fails 
                to file suit on such claim (or continue an action 
                commenced before the appointment of the receiver), 
                before the end of the 60-day period described in 
                subparagraph (A), the claim shall be deemed to be 
                disallowed (other than any portion of such claim which 
                was allowed by the receiver) as of the end of such 
                period, such disallowance shall be final, and the 
                claimant shall have no further rights or remedies with 
                respect to such claim.
            ``(7) Review of claims; administrative hearing.--If any 
        claimant requests review under this paragraph in lieu of filing 
        or continuing any action under paragraph (6) and the Corporation 
        agrees to such request, the Corporation shall consider the claim 
        after opportunity for a hearing on the record. The final 
        determination of the Corporation with respect to such claim 
        shall be subject to judicial review under chapter 7 of title 5, 
        United States Code.
            ``(8) Expedited determination of claims.--
                    ``(A) Establishment required.--The Corporation shall 
                establish a procedure for expedited relief outside of 
                the routine claims process established under paragraph 
                (5) for claimants who--
                          ``(i) allege the existence of legally valid 
                      and enforceable or perfected security interests in 
                      assets of any System institution for which the 
                      Corporation has been appointed receiver; and
                          ``(ii) allege that irreparable injury will 
                      occur if the routine claims procedure is followed.
                    ``(B) Determination period.--Before the end of the 
                90-day period beginning on the date any claim is filed 
                in accordance with the procedures established pursuant 
                to subparagraph (A), the Corporation shall--
                          ``(i) determine--
                                    ``(I) whether to allow or disallow 
                                such claim; or
                                    ``(II) whether such claim should be 
                                determined pursuant to the procedures 
                                established pursuant to paragraph (5); 
                                and
                          ``(ii) notify the claimant of the 
                      determination, and if the claim is disallowed, 
                      provide a statement of each reason for the 
                      disallowance and the procedure for obtaining 
                      agency review or judicial determination.
                    ``(C) Period for filing or renewing suit.--Any 
                claimant who files a request for expedited relief shall 
                be permitted to file a suit, or to continue a suit filed 
                before the appointment of the receiver, seeking a 
                determination of the claimant's rights with respect to 
                such security interest after the earlier of--
                          ``(i) the end of the 90-day period beginning 
                      on the date of the filing of a request for 
                      expedited relief; or

[[Page 132 STAT. 4692]]

                          ``(ii) the date the Corporation denies the 
                      claim.
                    ``(D) Statute of limitations.--If an action 
                described in subparagraph (C) is not filed, or the 
                motion to renew a previously filed suit is not made, 
                before the end of the 30-day period beginning on the 
                date on which such action or motion may be filed in 
                accordance with subparagraph (B), the claim shall be 
                deemed to be disallowed as of the end of such period 
                (other than any portion of such claim which was allowed 
                by the receiver), such disallowance shall be final, and 
                the claimant shall have no further rights or remedies 
                with respect to such claim.
                    ``(E) Legal effect of filing.--
                          ``(i) Statute of limitation tolled.--For 
                      purposes of any applicable statute of limitations, 
                      the filing of a claim with the receiver shall 
                      constitute a commencement of an action.
                          ``(ii) No prejudice to other actions.--Subject 
                      to paragraph (12), the filing of a claim with the 
                      receiver shall not prejudice any right of the 
                      claimant to continue any action which was filed 
                      before the appointment of the receiver.
            ``(9) Agreement as basis of claim.--
                    ``(A) Requirements.--Except as provided in 
                subparagraph (B), any agreement which does not meet the 
                requirements set forth in section 5.61(d) shall not form 
                the basis of, or substantially comprise, a claim against 
                the receiver or the Corporation.
                    ``(B) Exception to contemporaneous execution 
                requirement.--Notwithstanding section 5.61(d), any 
                agreement relating to an extension of credit between a 
                Federal Reserve bank or the United States Treasury and 
                any System institution which was executed before such 
                extension of credit to such System institution shall be 
                treated as having been executed contemporaneously with 
                such extension of credit for purposes of subparagraph 
                (A).
            ``(10) Payment of claims.--
                    ``(A) In general.--The receiver may, in the 
                receiver's discretion and to the extent funds are 
                available from the assets of the System institution, pay 
                creditor claims which are allowed by the receiver, 
                approved by the Corporation pursuant to a final 
                determination pursuant to paragraph (7) or (8), or 
                determined by the final judgment of any court of 
                competent jurisdiction in such manner and amounts as are 
                authorized under this Act.
                    ``(B) Liquidation payments.--The receiver may, in 
                the receiver's sole discretion, pay from the assets of 
                the System institution portions of proved claims at any 
                time, and no liability shall attach to the Corporation 
                (in such Corporation's corporate capacity or as 
                receiver), by reason of any such payment, for failure to 
                make payments to a claimant whose claim is not proved at 
                the time of any such payment.
                    ``(C) Rulemaking authority of corporation.--The 
                Corporation may prescribe such rules, including 
                definitions of terms, as it deems appropriate to 
                establish a single uniform interest rate for or to make 
                payments of post insolvency interest to creditors 
                holding proven claims

[[Page 132 STAT. 4693]]

                against the receivership estates of System institutions 
                following satisfaction by the receiver of the principal 
                amount of all creditor claims.
            ``(11) Priority of expenses and claims.--
                    ``(A) In general.--Amounts realized from the 
                liquidation or other resolution of any System 
                institution by any receiver appointed for such System 
                institution shall be distributed to pay claims (other 
                than secured claims to the extent of any such security) 
                in the following order of priority:
                          ``(i) Administrative expenses of the receiver.
                          ``(ii) If authorized by the Corporation, 
                      wages, salaries, or commissions, including 
                      vacation, severance, and sick leave pay earned by 
                      an individual--
                                    ``(I) in an amount that is not more 
                                than $11,725 for each individual (as 
                                indexed for inflation, by regulation of 
                                the Corporation); and
                                    ``(II) that is earned 180 days or 
                                fewer before the date of appointment of 
                                the Corporation as receiver.
                          ``(iii) In the case of the resolution of a 
                      System bank, all claims of holders of consolidated 
                      and System-wide bonds and all claims of the other 
                      System banks arising from the payments of the 
                      System banks pursuant to--
                                    ``(I) section 4.4 on consolidated 
                                and System-wide bonds issued under 
                                subsection (c) or (d) of section 4.2; or
                                    ``(II) an agreement, in writing and 
                                approved by the Farm Credit 
                                Administration, among the System banks 
                                to reallocate the payments.
                          ``(iv) In the case of the resolution of a 
                      production credit association or other association 
                      making direct loans under section 7.6, all claims 
                      of a System bank based on the financing agreement 
                      between the association and the System bank--
                                    ``(I) including interest accrued 
                                before and after the appointment of the 
                                receiver; and
                                    ``(II) not including any setoff for 
                                stock or other equity of that System 
                                bank owned by the association, on that 
                                condition that, prior to making that 
                                setoff, that System bank shall obtain 
                                the approval of the Farm Credit 
                                Administration Board for the retirement 
                                of that stock or equity.
                          ``(v) Any general or senior liability of the 
                      System institution (which is not a liability 
                      described in clause (vi) or (vii)).
                          ``(vi) Any obligation subordinated to general 
                      creditors (which is not an obligation described in 
                      clause (vii)).
                          ``(vii) Any obligation to stockholders or 
                      members arising as a result of their status as 
                      stockholders or members.
                    ``(B) Payment of claims.--
                          ``(i) In general.--

[[Page 132 STAT. 4694]]

                                    ``(I) Payment.--All claims of each 
                                priority described in clauses (i) 
                                through (vii) of subparagraph (A) shall 
                                be paid in full, or provisions shall be 
                                made for that payment, prior to the 
                                payment of any claim of a lesser 
                                priority.
                                    ``(II) Insufficient funds.--If there 
                                are insufficient funds to pay in full 
                                all claims in any priority described 
                                clauses (i) through (vii) of 
                                subparagraph (A), distribution on that 
                                priority of claims shall be made on a 
                                pro rata basis.
                          ``(ii) Distribution of remaining assets.--
                      Following the payment of all claims in accordance 
                      with subparagraph (A), the receiver shall 
                      distribute the remainder of the assets of the 
                      System institution to the owners of stock, 
                      participation certificates, and other equities in 
                      accordance with the priorities for impairment 
                      under the bylaws of the System institution.
                          ``(iii) Eligible borrower stock.--
                      Notwithstanding subparagraph (C) or any other 
                      provision of this section, eligible borrower stock 
                      shall be retired in accordance with section 4.9A.
                    ``(C) Effect of state law.--
                          ``(i) In general.--The provisions of 
                      subparagraph (A) shall not supersede the law of 
                      any State except to the extent such law is 
                      inconsistent with the provisions of such 
                      subparagraph, and then only to the extent of the 
                      inconsistency.
                          ``(ii) Procedure for determination of 
                      inconsistency.--Upon the Corporation's own motion 
                      or upon the request of any person with a claim 
                      described in subparagraph (A) or any State which 
                      is submitted to the Corporation in accordance with 
                      procedures which the Corporation shall prescribe, 
                      the Corporation shall determine whether any 
                      provision of the law of any State is inconsistent 
                      with any provision of subparagraph (A) and the 
                      extent of any such inconsistency.
                          ``(iii) Judicial review.--The final 
                      determination of the Corporation under clause (ii) 
                      shall be subject to judicial review under chapter 
                      7 of title 5, United States Code.
                    ``(D) Accounting report.--Any distribution by the 
                Corporation in connection with any claim described in 
                subparagraph (A)(vii) shall be accompanied by the 
                accounting report required under paragraph (15)(B).
            ``(12) Suspension of legal actions.--
                    ``(A) In general.--After the appointment of a 
                conservator or receiver for a System institution, the 
                conservator or receiver may request a stay for a period 
                not to exceed--
                          ``(i) 45 days, in the case of any conservator; 
                      and
                          ``(ii) 90 days, in the case of any receiver,
                in any judicial action or proceeding to which such 
                System institution is or becomes a party.
                    ``(B) Grant of stay by all courts required.--Upon 
                receipt of a request by any conservator or receiver 
                pursuant to subparagraph (A) for a stay of any judicial 
                action or proceeding in any court with jurisdiction of 
                such action

[[Page 132 STAT. 4695]]

                or proceeding, the court shall grant such stay as to all 
                parties.
            ``(13) Additional rights and duties.--
                    ``(A) Prior final adjudication.--The Corporation 
                shall abide by any final unappealable judgment of any 
                court of competent jurisdiction which was rendered 
                before the appointment of the Corporation as conservator 
                or receiver.
                    ``(B) Rights and remedies of conservator or 
                receiver.--In the event of any appealable judgment, the 
                Corporation as conservator or receiver shall--
                          ``(i) have all the rights and remedies 
                      available to the System institution (before the 
                      appointment of such conservator or receiver) and 
                      the Corporation in its corporate capacity, 
                      including removal to Federal court and all 
                      appellate rights; and
                          ``(ii) not be required to post any bond in 
                      order to pursue such remedies.
                    ``(C) No attachment or execution.--No attachment or 
                execution may issue by any court on--
                          ``(i) assets in the possession of the 
                      receiver; or
                          ``(ii) the charter of a System institution for 
                      which the Corporation has been appointed receiver.
                    ``(D) Limitation on judicial review.--Except as 
                otherwise provided in this subsection, no court shall 
                have jurisdiction over--
                          ``(i) any claim or action for payment from, or 
                      any action seeking a determination of rights with 
                      respect to, the assets of any System institution 
                      for which the Corporation has been appointed 
                      receiver, including assets which the Corporation 
                      may acquire from itself as such receiver; or
                          ``(ii) any claim relating to any act or 
                      omission of such System institution or the 
                      Corporation as receiver.
                    ``(E) Disposition of assets.--In exercising any 
                right, power, privilege, or authority as receiver in 
                connection with any sale or disposition of assets of any 
                System institution for which the Corporation is acting 
                as receiver, the Corporation shall, to the maximum 
                extent practicable, conduct its operations in a manner 
                which--
                          ``(i) maximizes the net present value return 
                      from the sale or disposition of such assets;
                          ``(ii) minimizes the amount of any loss 
                      realized in the resolution of cases;
                          ``(iii) ensures adequate competition and fair 
                      and consistent treatment of offerors;
                          ``(iv) prohibits discrimination on the basis 
                      of race, sex, or ethnic groups in the solicitation 
                      and consideration of offers; and
                          ``(v) mitigates the potential for serious 
                      adverse effects to the rest of the System.
            ``(14) Statute of limitations for actions brought by 
        conservator or receiver.--
                    ``(A) In general.--Notwithstanding any provision of 
                any contract, the applicable statute of limitations with

[[Page 132 STAT. 4696]]

                regard to any action brought by the Corporation as 
                conservator or receiver shall be--
                          ``(i) in the case of any contract claim, the 
                      longer of--
                                    ``(I) the 6-year period beginning on 
                                the date the claim accrues; or
                                    ``(II) the period applicable under 
                                State law; and
                          ``(ii) in the case of any tort claim, the 
                      longer of--
                                    ``(I) the 3-year period beginning on 
                                the date the claim accrues; or
                                    ``(II) the period applicable under 
                                State law.
                    ``(B) Determination of the date on which a claim 
                accrues.--For purposes of subparagraph (A), the date on 
                which the statute of limitations begins to run on any 
                claim described in such subparagraph shall be the later 
                of--
                          ``(i) the date of the appointment of the 
                      Corporation as conservator or receiver; or
                          ``(ii) the date on which the cause of action 
                      accrues.
                    ``(C) Revival of expired state causes of action.--
                          ``(i) In general.--In the case of any tort 
                      claim described in clause (ii) for which the 
                      statute of limitation applicable under State law 
                      with respect to such claim has expired not more 
                      than 5 years before the appointment of the 
                      Corporation as conservator or receiver, the 
                      Corporation may bring an action as conservator or 
                      receiver on such claim without regard to the 
                      expiration of the statute of limitation applicable 
                      under State law.
                          ``(ii) Claims described.--A tort claim 
                      referred to in clause (i) is a claim arising from 
                      fraud, intentional misconduct resulting in unjust 
                      enrichment, or intentional misconduct resulting in 
                      substantial loss to the System institution.
            ``(15) Accounting and recordkeeping requirements.--
                    ``(A) In general.--The Corporation as conservator or 
                receiver shall, consistent with the accounting and 
                reporting practices and procedures established by the 
                Corporation, maintain a full accounting of each 
                conservatorship and receivership or other disposition of 
                System institutions in default.
                    ``(B) Annual accounting or report.--With respect to 
                each conservatorship or receivership to which the 
                Corporation was appointed, the Corporation shall make an 
                annual accounting or report, as appropriate, available 
                to the Farm Credit Administration Board.
                    ``(C) Availability of reports.--Any report prepared 
                pursuant to subparagraph (B) shall be made available by 
                the Corporation upon request to any stockholder of the 
                System institution for which the Corporation was 
                appointed conservator or receiver or any other member of 
                the public.
                    ``(D) Recordkeeping requirement.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), after the end of the 6-year period 
                      beginning on the date the Corporation is appointed 
                      as receiver of a System institution, the 
                      Corporation may destroy any

[[Page 132 STAT. 4697]]

                      records of such System institution which the 
                      Corporation, in the Corporation's discretion, 
                      determines to be unnecessary unless directed not 
                      to do so by a court of competent jurisdiction or 
                      governmental agency, or prohibited by law.
                          ``(ii) Old records.--Notwithstanding clause 
                      (i), the Corporation may destroy records of a 
                      System institution which are at least 10 years old 
                      as of the date on which the Corporation is 
                      appointed as the receiver of such System 
                      institution in accordance with clause (i) at any 
                      time after such appointment is final, without 
                      regard to the 6-year period of limitation 
                      contained in clause (i).
            ``(16) Fraudulent transfers.--
                    ``(A) In general.--The Corporation, as conservator 
                or receiver for any System institution, may avoid a 
                transfer of any interest of a System institution-
                affiliated party, or any person who the Corporation 
                determines is a debtor of the System institution, in 
                property, or any obligation incurred by such party or 
                person, that was made within 5 years of the date on 
                which the Corporation was appointed conservator or 
                receiver if such party or person voluntarily or 
                involuntarily made such transfer or incurred such 
                liability with the intent to hinder, delay, or defraud 
                the System institution, the Farm Credit Administration, 
                or the Corporation.
                    ``(B) Right of recovery.--To the extent a transfer 
                is avoided under subparagraph (A), the Corporation may 
                recover, for the benefit of the System institution, the 
                property transferred, or, if a court so orders, the 
                value of such property (at the time of such transfer) 
                from--
                          ``(i) the initial transferee of such transfer 
                      or the System institution-affiliated party or 
                      person for whose benefit such transfer was made; 
                      or
                          ``(ii) any immediate or mediate transferee of 
                      any such initial transferee.
                    ``(C) Rights of transferee or obligee.--The 
                Corporation may not recover under subparagraph (B) 
                from--
                          ``(i) any transferee that takes for value, 
                      including satisfaction or securing of a present or 
                      antecedent debt, in good faith; or
                          ``(ii) any immediate or mediate good faith 
                      transferee of such transferee.
                    ``(D) Rights under this paragraph.--The rights under 
                this paragraph of the Corporation shall be superior to 
                any rights of a trustee or any other party (other than 
                any party which is a Federal agency) under title 11, 
                United States Code.
            ``(17) Attachment of assets and other injunctive relief.--
        Subject to paragraph (18), any court of competent jurisdiction 
        may, at the request of the Corporation (in the Corporation's 
        capacity as conservator or receiver for any System institution 
        or in the Corporation's corporate capacity with respect to any 
        asset acquired or liability assumed by the Corporation under 
        section 5.61), issue an order in accordance with Rule 65 of the 
        Federal Rules of Civil Procedure, including an order placing the 
        assets of any person designated by the

[[Page 132 STAT. 4698]]

        Corporation under the control of the court and appointing a 
        trustee to hold such assets.
            ``(18) Standards.--
                    ``(A) Showing.--Rule 65 of the Federal Rules of 
                Civil Procedure shall apply with respect to any 
                proceeding under paragraph (17) without regard to the 
                requirement of such rule that the applicant show that 
                the injury, loss, or damage is irreparable and 
                immediate.
                    ``(B) State proceeding.--If, in the case of any 
                proceeding in a State court, the court determines that 
                rules of civil procedure available under the laws of 
                such State provide substantially similar protections to 
                such party's right to due process as Rule 65 (as 
                modified with respect to such proceeding by subparagraph 
                (A)), the relief sought by the Corporation pursuant to 
                paragraph (17) may be requested under the laws of such 
                State.
            ``(19) Treatment of claims arising from breach of contracts 
        executed by the receiver or conservator.--Notwithstanding any 
        other provision of this subsection, any final and unappealable 
        judgment for monetary damages entered against a receiver or 
        conservator for a System institution for the breach of an 
        agreement executed or approved by such receiver or conservator 
        after the date of its appointment shall be paid as an 
        administrative expense of the receiver or conservator. Nothing 
        in this paragraph shall be construed to limit the power of a 
        receiver or conservator to exercise any rights under contract or 
        law, including terminating, breaching, canceling, or otherwise 
        discontinuing such agreement.

    ``(c) Provisions Relating to Contracts Entered Into Before 
Appointment of Conservator or Receiver.--
            ``(1) Authority to repudiate contracts.--In addition to any 
        other rights a conservator or receiver may have, the conservator 
        or receiver for a System institution may disaffirm or repudiate 
        any contract or lease--
                    ``(A) to which such System institution is a party;
                    ``(B) the performance of which the conservator or 
                receiver, in the conservator's or receiver's discretion, 
                determines to be burdensome; and
                    ``(C) the disaffirmance or repudiation of which the 
                conservator or receiver determines, in the conservator's 
                or receiver's discretion, will promote the orderly 
                administration of the System institution's affairs.
            ``(2) Timing of repudiation.--The Corporation as conservator 
        or receiver for any System institution shall determine whether 
        or not to exercise the rights of repudiation under this 
        subsection within a reasonable period following such 
        appointment.
            ``(3) Claims for damages for repudiation.--
                    ``(A) In general.--Except as otherwise provided in 
                subparagraph (C) and paragraphs (4), (5), and (6), the 
                liability of the conservator or receiver for the 
                disaffirmance or repudiation of any contract pursuant to 
                paragraph (1) shall be--
                          ``(i) limited to actual direct compensatory 
                      damages; and
                          ``(ii) determined as of--

[[Page 132 STAT. 4699]]

                                    ``(I) the date of the appointment of 
                                the conservator or receiver; or
                                    ``(II) in the case of any contract 
                                or agreement referred to in paragraph 
                                (8), the date of the disaffirmance or 
                                repudiation of such contract or 
                                agreement.
                    ``(B) No liability for other damages.--For purposes 
                of subparagraph (A), the term `actual direct 
                compensatory damages' does not include--
                          ``(i) punitive or exemplary damages;
                          ``(ii) damages for lost profits or 
                      opportunity; or
                          ``(iii) damages for pain and suffering.
                    ``(C) Measure of damages for repudiation of 
                financial contracts.--In the case of any qualified 
                financial contract or agreement to which paragraph (8) 
                applies, compensatory damages shall be--
                          ``(i) deemed to include normal and reasonable 
                      costs of cover or other reasonable measures of 
                      damages utilized in the industries for such 
                      contract and agreement claims; and
                          ``(ii) paid in accordance with this subsection 
                      and subsection (j), except as otherwise 
                      specifically provided in this section.
            ``(4) Leases under which the system institution is the 
        lessee.--
                    ``(A) In general.--If the conservator or receiver 
                disaffirms or repudiates a lease under which the System 
                institution was the lessee, the conservator or receiver 
                shall not be liable for any damages (other than damages 
                determined pursuant to subparagraph (B)) for the 
                disaffirmance or repudiation of such lease.
                    ``(B) Payments of rent.--Notwithstanding 
                subparagraph (A), the lessor under a lease to which such 
                subparagraph applies shall--
                          ``(i) be entitled to the contractual rent 
                      accruing before the later of the date--
                                    ``(I) the notice of disaffirmance or 
                                repudiation is mailed; or
                                    ``(II) the disaffirmance or 
                                repudiation becomes effective, unless 
                                the lessor is in default or breach of 
                                the terms of the lease; and
                          ``(ii) have no claim for damages under any 
                      acceleration clause or other penalty provision in 
                      the lease; and
                          ``(iii) have a claim for any unpaid rent, 
                      subject to all appropriate offsets and defenses, 
                      due as of the date of the appointment, which shall 
                      be paid in accordance with this subsection and 
                      subsection (j).
            ``(5) Leases under which the system institution is the 
        lessor.--
                    ``(A) In general.--If the conservator or receiver 
                repudiates an unexpired written lease of real property 
                of the System institution under which the System 
                institution is the lessor and the lessee is not, as of 
                the date of such repudiation, in default, the lessee 
                under such lease may either--

[[Page 132 STAT. 4700]]

                          ``(i) treat the lease as terminated by such 
                      repudiation; or
                          ``(ii) remain in possession of the leasehold 
                      interest for the balance of the term of the lease, 
                      unless the lessee defaults under the terms of the 
                      lease after the date of such repudiation.
                    ``(B) Provisions applicable to lessee remaining in 
                possession.--If any lessee under a lease described in 
                subparagraph (A) remains in possession of a leasehold 
                interest pursuant to clause (ii) of such subparagraph--
                          ``(i) the lessee--
                                    ``(I) shall continue to pay the 
                                contractual rent pursuant to the terms 
                                of the lease after the date of the 
                                repudiation of such lease; and
                                    ``(II) may offset against any rent 
                                payment which accrues after the date of 
                                the repudiation of the lease, any 
                                damages which accrue after such date due 
                                to the nonperformance of any obligation 
                                of the System institution under the 
                                lease after such date; and
                          ``(ii) the conservator or receiver shall not 
                      be liable to the lessee for any damages arising 
                      after such date as a result of the repudiation, 
                      other than the amount of any offset allowed under 
                      clause (i)(II).
            ``(6) Contracts for the sale of real property.--
                    ``(A) In general.--If the conservator or receiver 
                repudiates any contract that meets the requirements of 
                paragraphs (1) through (4) of section 5.61(d) for the 
                sale of real property, and the purchaser of such real 
                property under such contract is in possession and is 
                not, as of the date of such repudiation, in default, 
                such purchaser may either--
                          ``(i) treat the contract as terminated by such 
                      repudiation; or
                          ``(ii) remain in possession of such real 
                      property.
                    ``(B) Provisions applicable to purchaser remaining 
                in possession.--If any purchaser of real property under 
                any contract described in subparagraph (A) remains in 
                possession of such property pursuant to clause (ii) of 
                such subparagraph--
                          ``(i) the purchaser--
                                    ``(I) shall continue to make all 
                                payments due under the contract after 
                                the date of the repudiation of the 
                                contract; and
                                    ``(II) may offset against any such 
                                payments any damages which accrue after 
                                such date due to the nonperformance 
                                (after such date) of any obligation of 
                                the System institution under the 
                                contract; and
                          ``(ii) the conservator or receiver shall--
                                    ``(I) not be liable to the purchaser 
                                for any damages arising after that date 
                                as a result of the repudiation, other 
                                than the amount of any offset allowed 
                                under clause (i)(II);
                                    ``(II) deliver title to the 
                                purchaser in accordance with the 
                                contract; and

[[Page 132 STAT. 4701]]

                                    ``(III) have no obligation under the 
                                contract, other than the performance 
                                required under subclause (II).
                    ``(C) Assignment and sale allowed.--
                          ``(i) In general.--No provision of this 
                      paragraph shall be construed as limiting the right 
                      of the conservator or receiver to assign the 
                      contract described in subparagraph (A) and sell 
                      the property subject to the contract and this 
                      paragraph.
                          ``(ii) No liability after assignment and 
                      sale.--If an assignment and sale described in 
                      clause (i) is consummated, the Corporation, acting 
                      as conservator or receiver, shall have no further 
                      liability under the applicable contract described 
                      in subparagraph (A) or with respect to the real 
                      property which was the subject of such contract.
            ``(7) Provisions applicable to service contracts.--
                    ``(A) Services performed before appointment.--In the 
                case of any contract for services between any person and 
                any System institution for which the Corporation has 
                been appointed conservator or receiver, any claim of 
                such person for services performed before the 
                appointment of the conservator or the receiver shall 
                be--
                          ``(i) a claim to be paid in accordance with 
                      subsections (b) and (d); and
                          ``(ii) deemed to have arisen as of the date 
                      the conservator or receiver was appointed.
                    ``(B) Services performed after appointment and prior 
                to repudiation.--If, in the case of any contract for 
                services described in subparagraph (A), the conservator 
                or receiver accepts performance by the other person 
                before the conservator or receiver makes any 
                determination to exercise the right of repudiation of 
                such contract under this section--
                          ``(i) the other party shall be paid under the 
                      terms of the contract for the services performed; 
                      and
                          ``(ii) the amount of such payment shall be 
                      treated as an administrative expense of the 
                      conservatorship or receivership.
                    ``(C) Acceptance of performance no bar to subsequent 
                repudiation.--The acceptance by any conservator or 
                receiver of services referred to in subparagraph (B) in 
                connection with a contract described in such 
                subparagraph shall not affect the right of the 
                conservator or receiver, to repudiate such contract 
                under this section at any time after such performance.
            ``(8) Certain qualified financial contracts.--
                    ``(A) Definitions.--In this paragraph:
                          ``(i) Commodity contract.--The term `commodity 
                      contract' means--
                                    ``(I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    ``(II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;

[[Page 132 STAT. 4702]]

                                    ``(III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    ``(IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option traded 
                                on, or subject to the rules of, a 
                                contract market or board of trade that 
                                is cleared by such clearing 
                                organization;
                                    ``(V) with respect to a commodity 
                                options dealer, a commodity option;
                                    ``(VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(VIII) any option to enter into 
                                any agreement or transaction referred to 
                                in this clause;
                                    ``(IX) a master agreement that 
                                provides for an agreement or transaction 
                                referred to in any of subclauses (I) 
                                through (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether the 
                                master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), (IV), (V), 
                                (VI), (VII), or (VIII); or
                                    ``(X) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause, including 
                                any guarantee or reimbursement 
                                obligation in connection with any 
                                agreement or transaction referred to in 
                                this clause.
                          ``(ii) Forward contract.--The term `forward 
                      contract' means--
                                    ``(I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in the 
                                future becomes the subject of dealing in 
                                the forward contract trade, or product 
                                or byproduct thereof, with a maturity 
                                date more than 2 days after the date the 
                                contract is entered into, including a 
                                repurchase or reverse repurchase 
                                transaction (whether or not such 
                                repurchase or reverse repurchase 
                                transaction is a repurchase agreement), 
                                consignment, lease, swap, hedge 
                                transaction, deposit, loan, option, 
                                allocated transaction, unallocated 
                                transaction, or any other similar 
                                agreement;
                                    ``(II) any combination of agreements 
                                or transactions referred to in 
                                subclauses (I) and (III);

[[Page 132 STAT. 4703]]

                                    ``(III) any option to enter into any 
                                agreement or transaction referred to in 
                                subclause (I) or (II);
                                    ``(IV) a master agreement that 
                                provides for an agreement or transaction 
                                referred to in subclauses (I) through 
                                (III), together with all supplements to 
                                any such master agreement, without 
                                regard to whether the master agreement 
                                provides for an agreement or transaction 
                                that is not a forward contract under 
                                this clause, except that the master 
                                agreement shall be considered to be a 
                                forward contract under this clause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), or (III); or
                                    ``(V) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV), including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement or 
                                transaction referred to in any such 
                                subclause.
                          ``(iii) Person.--The term `person'--
                                    ``(I) has the meaning given the term 
                                in section 1 of title 1, United States 
                                Code; and
                                    ``(II) includes any governmental 
                                entity.
                          ``(iv) Qualified financial contract.--The term 
                      `qualified financial contract' means any 
                      securities contract, commodity contract, forward 
                      contract, repurchase agreement, swap agreement, 
                      and any similar agreement that the Corporation 
                      determines by regulation, resolution, or order to 
                      be a qualified financial contract for purposes of 
                      this paragraph.
                          ``(v) Repurchase agreement.--
                                    ``(I) In general.--The term 
                                `repurchase agreement' (including with 
                                respect to a reverse repurchase 
                                agreement)--
                                            ``(aa) means--
                                                ``(AA) an agreement, 
                                            including related terms, 
                                            which provides for the 
                                            transfer of one or more 
                                            certificates of deposit, 
                                            mortgage-related securities 
                                            (as such term is defined in 
                                            section 3(a) of the 
                                            Securities Exchange Act of 
                                            1934 (15 U.S.C. 78c(a))), 
                                            mortgage loans, interests in 
                                            mortgage-related securities 
                                            or mortgage loans, eligible 
                                            bankers' acceptances, 
                                            qualified foreign government 
                                            securities or securities 
                                            that are direct obligations 
                                            of, or that are fully 
                                            guaranteed by, the United 
                                            States or any agency of the 
                                            United States against the 
                                            transfer of funds by the 
                                            transferee of such 
                                            certificates of deposit, 
                                            eligible bankers' 
                                            acceptances, securities, 
                                            mortgage loans, or interests 
                                            with a simultaneous 
                                            agreement by such transferee 
                                            to transfer to the 
                                            transferor thereof 
                                            certificates of deposit, 
                                            eligible bankers' 
                                            acceptances,

[[Page 132 STAT. 4704]]

                                            securities, mortgage loans, 
                                            or interests as described 
                                            above, at a date certain not 
                                            later than 1 year after such 
                                            transfers or on demand, 
                                            against the transfer of 
                                            funds, or any other similar 
                                            agreement;
                                                ``(BB) any combination 
                                            of agreements or 
                                            transactions referred to in 
                                            subitems (AA) and (CC);
                                                ``(CC) any option to 
                                            enter into any agreement or 
                                            transaction referred to in 
                                            subitem (AA) or (BB);
                                                ``(DD) a master 
                                            agreement that provides for 
                                            an agreement or transaction 
                                            referred to in subitem (AA), 
                                            (BB), or (CC), together with 
                                            all supplements to any such 
                                            master agreement, without 
                                            regard to whether the master 
                                            agreement provides for an 
                                            agreement or transaction 
                                            that is not a repurchase 
                                            agreement under this item, 
                                            except that the master 
                                            agreement shall be 
                                            considered to be a 
                                            repurchase agreement under 
                                            this item only with respect 
                                            to each agreement or 
                                            transaction under the master 
                                            agreement that is referred 
                                            to in subitem (AA), (BB), or 
                                            (CC); and
                                                ``(EE) any security 
                                            agreement or arrangement or 
                                            other credit enhancement 
                                            related to any agreement or 
                                            transaction referred to in 
                                            any of subitems (AA) through 
                                            (DD), including any 
                                            guarantee or reimbursement 
                                            obligation in connection 
                                            with any agreement or 
                                            transaction referred to in 
                                            any such subitem; and
                                            ``(bb) does not include any 
                                        repurchase obligation under a 
                                        participation in a commercial 
                                        mortgage, loan unless the 
                                        Corporation determines by 
                                        regulation, resolution, or order 
                                        to include any such 
                                        participation within the meaning 
                                        of such term.
                                    ``(II) Related definition.--For 
                                purposes of subclause (I)(aa), the term 
                                `qualified foreign government security' 
                                means a security that is a direct 
                                obligation of, or that is fully 
                                guaranteed by, the central government of 
                                a member of the Organization for 
                                Economic Cooperation and Development (as 
                                determined by regulation or order 
                                adopted by the appropriate Federal 
                                banking authority).
                          ``(vi) Securities contract.--The term 
                      `securities contract'--
                                    ``(I) means--
                                            ``(aa) a contract for the 
                                        purchase, sale, or loan of a 
                                        security, a certificate of 
                                        deposit, a mortgage loan, any 
                                        interest in a mortgage loan, a 
                                        group or index of securities, 
                                        certificates of deposit, or 
                                        mortgage loans or interests

[[Page 132 STAT. 4705]]

                                        therein (including any interest 
                                        therein or based on the value 
                                        thereof) or any option on any of 
                                        the foregoing, including any 
                                        option to purchase or sell any 
                                        such security, certificate of 
                                        deposit, mortgage loan, 
                                        interest, group or index, or 
                                        option, and including any 
                                        repurchase or reverse repurchase 
                                        transaction on any such 
                                        security, certificate of 
                                        deposit, mortgage loan, 
                                        interest, group or index, or 
                                        option (whether or not the 
                                        repurchase or reverse repurchase 
                                        transaction is a repurchase 
                                        agreement);
                                            ``(bb) any option entered 
                                        into on a national securities 
                                        exchange relating to foreign 
                                        currencies;
                                            ``(cc) the guarantee 
                                        (including by novation) by or to 
                                        any securities clearing agency 
                                        of any settlement of cash, 
                                        securities, certificates of 
                                        deposit, mortgage loans or 
                                        interests therein, group or 
                                        index of securities, 
                                        certificates of deposit, or 
                                        mortgage loans or interests 
                                        therein (including any interest 
                                        therein or based on the value 
                                        thereof) or option on any of the 
                                        foregoing, including any option 
                                        to purchase or sell any such 
                                        security, certificate of 
                                        deposit, mortgage loan, 
                                        interest, group or index, or 
                                        option (whether or not the 
                                        settlement is in connection with 
                                        any agreement or transaction 
                                        referred to in any of items 
                                        (aa), (bb), and (dd) through 
                                        (kk));
                                            ``(dd) any margin loan;
                                            ``(ee) any extension of 
                                        credit for the clearance or 
                                        settlement of securities 
                                        transactions;
                                            ``(ff) any loan transaction 
                                        coupled with a securities collar 
                                        transaction, any prepaid 
                                        securities forward transaction, 
                                        or any total return swap 
                                        transaction coupled with a 
                                        securities sale transaction;
                                            ``(gg) any other agreement 
                                        or transaction that is similar 
                                        to any agreement or transaction 
                                        referred to in this subclause;
                                            ``(hh) any combination of 
                                        the agreements or transactions 
                                        referred to in this subclause;
                                            ``(ii) any option to enter 
                                        into any agreement or 
                                        transaction referred to in this 
                                        subclause;
                                            ``(jj) a master agreement 
                                        that provides for an agreement 
                                        or transaction referred to in 
                                        any of items (aa) through (ii), 
                                        together with all supplements to 
                                        any such master agreement, 
                                        without regard to whether the 
                                        master agreement provides for an 
                                        agreement or transaction that is 
                                        not a securities contract under 
                                        this subclause, except that the 
                                        master agreement shall be 
                                        considered to be a securities 
                                        contract under this subclause 
                                        only with respect to each 
                                        agreement or transaction under 
                                        the master agreement that is 
                                        referred

[[Page 132 STAT. 4706]]

                                        to in item (aa), (bb), (cc), 
                                        (dd), (ee), (ff), (gg), (hh), or 
                                        (ii); and
                                            ``(kk) any security 
                                        agreement or arrangement or 
                                        other credit enhancement related 
                                        to any agreement or transaction 
                                        referred to in this subclause, 
                                        including any guarantee or 
                                        reimbursement obligation in 
                                        connection with any agreement or 
                                        transaction referred to in this 
                                        subclause; and
                                    ``(II) does not include any 
                                purchase, sale, or repurchase obligation 
                                under a participation in a commercial 
                                mortgage loan unless the Corporation 
                                determines by regulation, resolution, or 
                                order to include any such agreement 
                                within the meaning of such term.
                          ``(vii) Swap agreement.--The term `swap 
                      agreement' means--
                                    ``(I) any agreement, including the 
                                terms and conditions incorporated by 
                                reference in any such agreement, that 
                                is--
                                            ``(aa) an interest rate 
                                        swap, option, future, or forward 
                                        agreement, including a rate 
                                        floor, rate cap, rate collar, 
                                        cross-currency rate swap, and 
                                        basis swap;
                                            ``(bb) a spot, same day-
                                        tomorrow, tomorrow-next, 
                                        forward, or other foreign 
                                        exchange precious metals or 
                                        other commodity agreement;
                                            ``(cc) a currency swap, 
                                        option, future, or forward 
                                        agreement;
                                            ``(dd) an equity index or 
                                        equity swap, option, future, or 
                                        forward agreement;
                                            ``(ee) a debt index or debt 
                                        swap, option, future, or forward 
                                        agreement;
                                            ``(ff) a total return, 
                                        credit spread or credit swap, 
                                        option, future, or forward 
                                        agreement;
                                            ``(gg) a commodity index or 
                                        commodity swap, option, future, 
                                        or forward agreement;
                                            ``(hh) a weather swap, 
                                        option, future, or forward 
                                        agreement;
                                            ``(ii) an emissions swap, 
                                        option, future, or forward 
                                        agreement; or
                                            ``(jj) an inflation swap, 
                                        option, future, or forward 
                                        agreement;
                                    ``(II) any agreement or transaction 
                                that is similar to any other agreement 
                                or transaction referred to in this 
                                clause and that is of a type that has 
                                been, is presently, or in the future 
                                becomes, the subject of recurrent 
                                dealings in the swap or other 
                                derivatives markets (including terms and 
                                conditions incorporated by reference in 
                                such agreement) and that is a forward, 
                                swap, future, option or spot transaction 
                                on one or more rates, currencies, 
                                commodities, equity securities or other 
                                equity instruments, debt securities or 
                                other debt instruments, quantitative 
                                measures associated with an occurrence, 
                                extent of an occurrence, or

[[Page 132 STAT. 4707]]

                                contingency associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                                    ``(III) any combination of 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(IV) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(V) a master agreement that 
                                provides for an agreement or transaction 
                                referred to in any of subclauses (I) 
                                through (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether the 
                                master agreement contains an agreement 
                                or transaction that is not a swap 
                                agreement under this clause, except that 
                                the master agreement shall be considered 
                                to be a swap agreement under this clause 
                                only with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), or (IV); and
                                    ``(VI) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreements or 
                                transactions referred to in any of 
                                subclauses (I) through (V), including 
                                any guarantee or reimbursement 
                                obligation in connection with any 
                                agreement or transaction referred to in 
                                any such subclause.
                          ``(viii) Transfer.--The term `transfer' means 
                      every mode, direct or indirect, absolute or 
                      conditional, voluntary or involuntary, of 
                      disposing of or parting with property or with an 
                      interest in property, including retention of title 
                      as a security interest and foreclosure of the 
                      equity of redemption of a System institution.
                          ``(ix) Treatment of master agreement as 1 
                      agreement.--For purposes of this subparagraph--
                                    ``(I) any master agreement for any 
                                contract or agreement described in this 
                                subparagraph (or any master agreement 
                                for such a master agreement or 
                                agreements), together with all 
                                supplements to the master agreement, 
                                shall be treated as a single agreement 
                                and a single qualified financial 
                                contact; and
                                    ``(II) if a master agreement 
                                contains provisions relating to 
                                agreements or transactions that are not 
                                qualified financial contracts, the 
                                master agreement shall be deemed to be a 
                                qualified financial contract only with 
                                respect to those transactions that are 
                                themselves qualified financial 
                                contracts.
                    ``(B) Rights of parties to contracts.--Subject to 
                paragraphs (9) and (10), and notwithstanding any other 
                provision of this Act (other than subsection (b)(9) and 
                section 5.61(d)) or any other Federal or State law, no 
                person shall be stayed or prohibited from exercising--
                          ``(i) any right such person has to cause the 
                      termination, liquidation, or acceleration of any 
                      qualified financial contract with a System 
                      institution which arises upon the appointment of 
                      the Corporation as

[[Page 132 STAT. 4708]]

                      receiver for such System institution at any time 
                      after such appointment;
                          ``(ii) any right under any security agreement 
                      or arrangement or other credit enhancement related 
                      to one or more qualified financial contracts 
                      described in clause (i); or
                          ``(iii) any right to offset or net out any 
                      termination value, payment amount, or other 
                      transfer obligation arising under, or in 
                      connection with, 1 or more contracts and 
                      agreements described in clause (i), including any 
                      master agreement for such contracts or agreements.
                    ``(C) Applicability of other provisions.--Subsection 
                (b)(12) shall apply in the case of any judicial action 
                or proceeding brought against any receiver referred to 
                in subparagraph (A), or the System institution for which 
                such receiver was appointed, by any party to a contract 
                or agreement described in subparagraph (B)(i) with such 
                System institution.
                    ``(D) Certain transfers not avoidable.--
                          ``(i) In general.--Notwithstanding paragraph 
                      (11) or any other Federal or State law relating to 
                      the avoidance of preferential or fraudulent 
                      transfers, the Corporation, whether acting as such 
                      or as conservator or receiver of a System 
                      institution, may not avoid any transfer of money 
                      or other property in connection with any qualified 
                      financial contract with a System institution.
                          ``(ii) Exception for certain transfers.--
                      Clause (i) shall not apply to any transfer of 
                      money or other property in connection with any 
                      qualified financial contract with a System 
                      institution if the Corporation determines that the 
                      transferee had actual intent to hinder, delay, or 
                      defraud such System institution, the creditors of 
                      such System institution, or any conservator or 
                      receiver appointed for such System institution.
                    ``(E) Certain protections in event of appointment of 
                conservator.--Notwithstanding any other provision of 
                this Act (other than subparagraph (G), paragraph (10), 
                subsection (b)(9), and section 5.61(d)) or any other 
                Federal or State law, no person shall be stayed or 
                prohibited from exercising--
                          ``(i) any right such person has to cause the 
                      termination, liquidation, or acceleration of any 
                      qualified financial contract with a System 
                      institution in a conservatorship based upon a 
                      default under such financial contract which is 
                      enforceable under applicable noninsolvency law;
                          ``(ii) any right under any security agreement 
                      or arrangement or other credit enhancement related 
                      to one or more qualified financial contracts 
                      described in clause (i); and
                          ``(iii) any right to offset or net out any 
                      termination values, payment amounts, or other 
                      transfer obligations arising under or in 
                      connection with such qualified financial 
                      contracts.

[[Page 132 STAT. 4709]]

                    ``(F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the 
                Corporation, or authorizing any court or agency to limit 
                or delay, in any manner, the right or power of the 
                Corporation to transfer any qualified financial contract 
                in accordance with paragraphs (9) and (10) or to 
                disaffirm or repudiate any such contract in accordance 
                with paragraph (1).
                    ``(G) Walkaway clauses not effective.--
                          ``(i) Definition of walkaway clause.--In this 
                      subparagraph, the term `walkaway clause' means any 
                      provision in a qualified financial contract that 
                      suspends, conditions, or extinguishes a payment 
                      obligation of a party, in whole or in part, or 
                      does not create a payment obligation of a party 
                      that would otherwise exist--
                                    ``(I) solely because of--
                                            ``(aa) the status of the 
                                        party as a nondefaulting party 
                                        in connection with the 
                                        insolvency of a System 
                                        institution that is a party to 
                                        the contract; or
                                            ``(bb) the appointment of, 
                                        or the exercise of rights or 
                                        powers by, the Corporation as a 
                                        conservator or receiver of the 
                                        System institution; and
                                    ``(II) not as a result of the 
                                exercise by a party of any right to 
                                offset, setoff, or net obligations that 
                                exist under--
                                            ``(aa) the contract;
                                            ``(bb) any other contract 
                                        between those parties; or
                                            ``(cc) applicable law.
                          ``(ii) Treatment.--Notwithstanding the 
                      provisions of subparagraphs (B) and (E), no 
                      walkaway clause shall be enforceable in a 
                      qualified financial contract of a System 
                      institution in default.
                          ``(iii) Limited suspension of certain 
                      obligations.--In the case of a qualified financial 
                      contract referred to in clause (ii), any payment 
                      or delivery obligations otherwise due from a party 
                      pursuant to the qualified financial contract shall 
                      be suspended from the time the receiver is 
                      appointed until the earlier of--
                                    ``(I) the time such party receives 
                                notice that such contract has been 
                                transferred pursuant to subparagraph 
                                (B); or
                                    ``(II) 5:00 p.m. (eastern time) on 
                                the business day following the date of 
                                the appointment of the receiver.
                    ``(H) Recordkeeping requirements.--The Corporation, 
                in consultation with the Farm Credit Administration, may 
                prescribe regulations requiring more detailed 
                recordkeeping by any System institution with respect to 
                qualified financial contracts (including market 
                valuations), only if such System institution is subject 
                to subclause (I), (III), or (IV) of section 
                5.61B(a)(1)(A)(ii).
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) Definitions.--In this paragraph:

[[Page 132 STAT. 4710]]

                          ``(i) Clearing organization.--The term 
                      `clearing organization' has the meaning given the 
                      term in section 402 of the Federal Deposit 
                      Insurance Corporation Improvement Act of 1991 (12 
                      U.S.C. 4402).
                          ``(ii) Financial institution.--The term 
                      `financial institution' means a System 
                      institution, a broker or dealer, a depository 
                      institution, a futures commission merchant, or any 
                      other institution, as determined by the 
                      Corporation by regulation to be a financial 
                      institution.
                    ``(B) Requirement.--In making any transfer of assets 
                or liabilities of a System institution in default which 
                includes any qualified financial contract, the 
                conservator or receiver for such System institution 
                shall either--
                          ``(i) transfer to one financial institution, 
                      other than a financial institution for which a 
                      conservator, receiver, trustee in bankruptcy, or 
                      other legal custodian has been appointed, or that 
                      is otherwise the subject of a bankruptcy or 
                      insolvency proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the System 
                                institution in default;
                                    ``(II) all claims of such person or 
                                any affiliate of such person against 
                                such System institution under any such 
                                contract (other than any claim which, 
                                under the terms of any such contract, is 
                                subordinated to the claims of general 
                                unsecured creditors of such System 
                                institution);
                                    ``(III) all claims of such System 
                                institution against such person or any 
                                affiliate of such person under any such 
                                contract; and
                                    ``(IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) or 
                                (III) under any such contract; or
                          ``(ii) transfer none of the qualified 
                      financial contracts, claims, property or other 
                      credit enhancement referred to in clause (i) (with 
                      respect to such person and any affiliate of such 
                      person).
                    ``(C) Transfer to foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contracts and related claims and property 
                under subparagraph (B)(i), the conservator or receiver 
                for the System institution shall not make such transfer 
                to a foreign bank, financial institution organized under 
                the laws of a foreign country, or a branch or agency of 
                a foreign bank or financial institution unless, under 
                the law applicable to such bank, financial institution, 
                branch or agency, to the qualified financial contracts, 
                and to any netting contract, any security agreement or 
                arrangement or other credit enhancement related to one 
                or more qualified financial contracts, the contractual 
                rights of the parties to such qualified financial 
                contracts, netting contracts, security agreements or 
                arrangements, or other credit enhancements are 
                enforceable substantially to the same extent as 
                permitted under this section.

[[Page 132 STAT. 4711]]

                    ``(D) Transfer of contracts subject to the rules of 
                a clearing organization.--In the event that a 
                conservator or receiver transfers any qualified 
                financial contract and related claims, property, and 
                credit enhancements pursuant to subparagraph (B)(i) and 
                such contract is cleared by or subject to the rules of a 
                clearing organization, the clearing organization shall 
                not be required to accept the transferee as a member by 
                virtue of the transfer.
            ``(10) Notification of transfer.--
                    ``(A) Definition of business day.--In this 
                paragraph, the term `business day' means any day other 
                than any Saturday, Sunday, or any day on which either 
                the New York Stock Exchange or the Federal Reserve Bank 
                of New York is closed.
                    ``(B) Notification.--If--
                          ``(i) the conservator or receiver for a System 
                      institution in default makes any transfer of the 
                      assets and liabilities of such System institution; 
                      and
                          ``(ii) the transfer includes any qualified 
                      financial contract, the conservator or receiver 
                      shall notify any person who is a party to any such 
                      contract of such transfer by 5:00 p.m. (eastern 
                      time) on the business day following the date of 
                      the appointment of the receiver in the case of a 
                      receivership, or the business day following such 
                      transfer in the case of a conservatorship.
                    ``(C) Certain rights not enforceable.--
                          ``(i) Receivership.--A person who is a party 
                      to a qualified financial contract with a System 
                      institution may not exercise any right that such 
                      person has to terminate, liquidate, or net such 
                      contract under paragraph (8)(B) of this 
                      subsection, solely by reason of or incidental to 
                      the appointment of a receiver for the System 
                      institution (or the insolvency or financial 
                      condition of the System institution for which the 
                      receiver has been appointed)--
                                    ``(I) until 5:00 p.m. (eastern time) 
                                on the business day following the date 
                                of the appointment of the receiver; or
                                    ``(II) after the person has received 
                                notice that the contract has been 
                                transferred pursuant to paragraph 
                                (9)(B).
                          ``(ii) Conservatorship.--A person who is a 
                      party to a qualified financial contract with a 
                      System institution may not exercise any right that 
                      such person has to terminate, liquidate, or net 
                      such contract under paragraph (8)(E) of this 
                      subsection, solely by reason of or incidental to 
                      the appointment of a conservator for the System 
                      institution (or the insolvency or financial 
                      condition of the System institution for which the 
                      conservator has been appointed).
                          ``(iii) Notice.--For purposes of this 
                      paragraph, the Corporation as receiver or 
                      conservator of a System institution shall be 
                      deemed to have notified a person who is a party to 
                      a qualified financial contract with such System 
                      institution if the Corporation has taken

[[Page 132 STAT. 4712]]

                      steps reasonably calculated to provide notice to 
                      such person by the time specified in subparagraph 
                      (B).
                    ``(D) Treatment of bridge system institutions.--The 
                following System institutions shall not be considered to 
                be a financial institution for which a conservator, 
                receiver, trustee in bankruptcy, or other legal 
                custodian has been appointed or which is otherwise the 
                subject of a bankruptcy or insolvency proceeding for 
                purposes of paragraph (9):
                          ``(i) A bridge System bank.
                          ``(ii) A System institution organized by the 
                      Corporation or the Farm Credit Administration, for 
                      which a conservator is appointed either--
                                    ``(I) immediately upon the 
                                organization of the System institution; 
                                or
                                    ``(II) at the time of a purchase and 
                                assumption transaction between the 
                                System institution and the Corporation 
                                as receiver for a System institution in 
                                default.
            ``(11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the rights of disaffirmance or 
        repudiation of a conservator or receiver with respect to any 
        qualified financial contract to which a System institution is a 
        party, the conservator or receiver for such System institution 
        shall either--
                    ``(A) disaffirm or repudiate all qualified financial 
                contracts between--
                          ``(i) any person or any affiliate of such 
                      person; and
                          ``(ii) the System institution in default; or
                    ``(B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).
            ``(12) Certain security interests not avoidable.--No 
        provision of this subsection shall be construed as permitting 
        the avoidance of any legally enforceable or perfected security 
        interest in any of the assets of any System institution except 
        where such an interest is taken in contemplation of the System 
        institution's insolvency or with the intent to hinder, delay, or 
        defraud the System institution or the creditors of such System 
        institution.
            ``(13) Authority to enforce contracts.--
                    ``(A) In general.--The conservator or receiver may 
                enforce any contract, other than a director's or 
                officer's liability insurance contract or a System 
                institution bond, entered into by the System institution 
                notwithstanding any provision of the contract providing 
                for termination, default, acceleration, or exercise of 
                rights upon, or solely by reason of, insolvency or the 
                appointment of or the exercise of rights or powers by a 
                conservator or receiver.
                    ``(B) Certain rights not affected.--No provision of 
                this paragraph may be construed as impairing or 
                affecting any right of the conservator or receiver to 
                enforce or recover under a director's or officer's 
                liability insurance contract or institution bond under 
                other applicable law.
                    ``(C) Consent requirement.--

[[Page 132 STAT. 4713]]

                          ``(i) In general.--Except as otherwise 
                      provided by this section, no person may exercise 
                      any right or power to terminate, accelerate, or 
                      declare a default under any contract to which the 
                      System institution is a party, or to obtain 
                      possession of or exercise control over any 
                      property of the System institution or affect any 
                      contractual rights of the System institution, 
                      without the consent of the conservator or 
                      receiver, as appropriate, during the 45-day period 
                      beginning on the date of the appointment of the 
                      conservator, or during the 90-day period beginning 
                      on the date of the appointment of the receiver, as 
                      applicable.
                          ``(ii) Certain exceptions.--No provision of 
                      this subparagraph shall apply to a director or 
                      officer liability insurance contract or an 
                      institution bond, to the rights of parties to 
                      certain qualified financial contracts pursuant to 
                      paragraph (8), or shall be construed as permitting 
                      the conservator or receiver to fail to comply with 
                      otherwise enforceable provisions of such contract.
            ``(14) Exception for federal reserve and the united states 
        treasury.--No provision of this subsection shall apply with 
        respect to--
                    ``(A) any extension of credit from any Federal 
                Reserve bank or the United States Treasury to any System 
                institution; or
                    ``(B) any security interest in the assets of the 
                System institution securing any such extension of 
                credit.
            ``(15) Savings clause.--The meanings of terms used in this 
        subsection--
                    ``(A) are applicable for purposes of this subsection 
                only; and
                    ``(B) shall not be construed or applied so as to 
                challenge or affect the characterization, definition, or 
                treatment of any similar terms under any other law, 
                regulation, or rule, including--
                          ``(i) the Gramm-Leach-Bliley Act (12 U.S.C. 
                      1811 note; Public Law 106-102);
                          ``(ii) the Legal Certainty for Bank Products 
                      Act of 2000 (7 U.S.C. 27 et seq.);
                          ``(iii) the securities laws (as that term is 
                      defined in section 3(a) of the Securities Exchange 
                      Act of 1934 (15 U.S.C. 78c(a))); and
                          ``(iv) the Commodity Exchange Act (7 U.S.C. 1 
                      et seq.).

    ``(d) Valuation of Claims in Default.--
            ``(1) In general.--Notwithstanding any other provision of 
        Federal law or the law of any State and regardless of the method 
        which the Corporation determines to utilize with respect to a 
        System institution in default or in danger of default, including 
        transactions authorized under subsection (h) and section 
        5.61(a), this subsection shall govern the rights of the 
        creditors of such System institution.
            ``(2) Maximum liability.--The maximum liability of the 
        Corporation, acting as receiver or in any other capacity, to any 
        person having a claim against the receiver or the System 
        institution for which such receiver is appointed shall equal

[[Page 132 STAT. 4714]]

        the amount such claimant would have received if the Corporation 
        had liquidated the assets and liabilities of such System 
        institution without exercising the Corporation's authority under 
        subsection (h) or section 5.61(a).
            ``(3) Additional payments authorized.--
                    ``(A) In general.--The Corporation may, in its 
                discretion and in the interests of minimizing its 
                losses, use its own resources to make additional 
                payments or credit additional amounts to or with respect 
                to or for the account of any claimant or category of 
                claimants. Notwithstanding any other provision of 
                Federal or State law, or the constitution of any State, 
                the Corporation shall not be obligated, as a result of 
                having made any such payment or credited any such amount 
                to or with respect to or for the account of any claimant 
                or category of claimants, to make payments to any other 
                claimant or category of claimants.
                    ``(B) Manner of payment.--The Corporation may make 
                the payments or credit the amounts specified in 
                subparagraph (A) directly to the claimants or may make 
                such payments or credit such amounts to an open System 
                institution to induce such System institution to accept 
                liability for such claims.

    ``(e) Limitation on Court Action.--Except as provided in this 
section, no court may take any action, except at the written request of 
the Board of Directors, to restrain or affect the exercise of powers or 
functions of the Corporation as a conservator or a receiver.
    ``(f) Liability of Directors and Officers.--
            ``(1) In general.--A director or officer of a System 
        institution may be held personally liable for monetary damages 
        in any civil action--
                    ``(A) brought by, on behalf of, or at the request or 
                direction of the Corporation;
                    ``(B) prosecuted wholly or partially for the benefit 
                of the Corporation--
                          ``(i) acting as conservator or receiver of 
                      that System institution;
                          ``(ii) acting based on a suit, claim, or cause 
                      of action purchased from, assigned by, or 
                      otherwise conveyed by that receiver or 
                      conservator; or
                          ``(iii) acting based on a suit, claim, or 
                      cause of action purchased from, assigned by, or 
                      otherwise conveyed in whole or in part by a System 
                      institution or an affiliate of a System 
                      institution in connection with assistance provided 
                      under section 5.61(a); and
                    ``(C) for, as determined under the applicable State 
                law--
                          ``(i) gross negligence; or
                          ``(ii) any similar conduct, including conduct 
                      that demonstrates a greater disregard of a duty of 
                      care than gross negligence, such as intentional 
                      tortious conduct.
            ``(2) Effect.--Nothing in paragraph (1) impairs or affects 
        any right of the Corporation under any other applicable law.

    ``(g) Damages.--In any proceeding related to any claim against a 
System institution's director, officer, employee, agent, attorney, 
accountant, appraiser, or any other party employed by or providing

[[Page 132 STAT. 4715]]

services to a System institution, recoverable damages determined to 
result from the improvident or otherwise improper use or investment of 
any System institution's assets shall include principal losses and 
appropriate interest.
    ``(h) Bridge Farm Credit System Banks.--
            ``(1) Organization.--
                    ``(A) Purpose.--
                          ``(i) In general.--When 1 or more System banks 
                      are in default, or when the Corporation 
                      anticipates that 1 or more System banks may become 
                      in default, the Corporation may, in its 
                      discretion, organize, and the Farm Credit 
                      Administration may, in its discretion, charter, 1 
                      or more System banks, with the powers and 
                      attributes of System banks, subject to the 
                      provisions of this subsection, to be referred to 
                      as `bridge System banks'.
                          ``(ii) Intent of congress.--It is the intent 
                      of the Congress that, in order to prevent 
                      unnecessary hardship or losses to the customers of 
                      any System bank in default with respect to which a 
                      bridge System bank is chartered, the Corporation 
                      should--
                                    ``(I) continue to honor commitments 
                                made by the System bank in default to 
                                creditworthy customers; and
                                    ``(II) not interrupt or terminate 
                                adequately secured loans which are 
                                transferred under this subsection and 
                                are being repaid by the debtor in 
                                accordance with the terms of the loan 
                                instrument.
                    ``(B) Authorities.--Once chartered by the Farm 
                Credit Administration, the bridge System bank may--
                          ``(i) assume such liabilities of the System 
                      bank or banks in default or in danger of default 
                      as the Corporation may, in its discretion, 
                      determine to be appropriate;
                          ``(ii) purchase such assets of the System bank 
                      or banks in default or in danger of default as the 
                      Corporation may, in its discretion, determine to 
                      be appropriate; and
                          ``(iii) perform any other temporary function 
                      which the Corporation may, in its discretion, 
                      prescribe in accordance with this Act.
                    ``(C) Articles of association.--The articles of 
                association and organization certificate of a bridge 
                System bank as approved by the Corporation shall be 
                executed by 3 representatives designated by the 
                Corporation.
                    ``(D) Interim directors.--A bridge System bank shall 
                have an interim board of directors consisting of not 
                fewer than 5 nor more than 10 members appointed by the 
                Corporation.
            ``(2) Chartering.--
                    ``(A) Conditions.--The Farm Credit Administration 
                may charter a bridge System bank only if the Board of 
                Directors determines that--
                          ``(i) the amount which is reasonably necessary 
                      to operate such bridge System bank will not exceed 
                      the amount which is reasonably necessary to save 
                      the cost of liquidating 1 or more System banks in 
                      default or

[[Page 132 STAT. 4716]]

                      in danger of default with respect to which the 
                      bridge System bank is chartered;
                          ``(ii) the continued operation of such System 
                      bank or banks in default or in danger of default 
                      with respect to which the bridge System bank is 
                      chartered is essential to provide adequate farm 
                      credit services in the 1 or more communities where 
                      each such System bank in default or in danger of 
                      default is or was providing those farm credit 
                      services; or
                          ``(iii) the continued operation of such System 
                      bank or banks in default or in danger of default 
                      with respect to which the bridge System bank is 
                      chartered is in the best interest of the Farm 
                      Credit System or the public.
                    ``(B) Bridge system bank treated as being in default 
                for certain purposes.--A bridge System bank shall be 
                treated as being in default at such times and for such 
                purposes as the Corporation may, in its discretion, 
                determine.
                    ``(C) Management.--A bridge System bank, upon the 
                granting of its charter, shall be under the management 
                of a board of directors consisting of not fewer than 5 
                nor more than 10 members appointed by the Corporation, 
                in consultation with the Farm Credit Administration.
                    ``(D) Bylaws.--The board of directors of a bridge 
                System bank shall adopt such bylaws as may be approved 
                by the Corporation.
            ``(3) Transfer of assets and liabilities.--
                    ``(A) Transfer upon grant of charter.--Upon the 
                granting of a charter to a bridge System bank pursuant 
                to this subsection, the Corporation, as receiver, may 
                transfer any assets and liabilities of the System bank 
                to the bridge System bank in accordance with paragraph 
                (1).
                    ``(B) Subsequent transfers.--At any time after a 
                charter is granted to a bridge System bank, the 
                Corporation, as receiver, may transfer any assets and 
                liabilities of such System bank in default as the 
                Corporation may, in its discretion, determine to be 
                appropriate in accordance with paragraph (1).
                    ``(C) Effective without approval.--The transfer of 
                any assets or liabilities of a System bank in default or 
                danger of default transferred to a bridge System bank 
                shall be effective without any further approval under 
                Federal or State law, assignment, or consent with 
                respect thereto.
            ``(4) Powers of bridge system banks.--Each bridge System 
        bank chartered under this subsection shall, to the extent 
        described in the charter of the System bank in default with 
        respect to which the bridge System bank is chartered, have all 
        corporate powers of, and be subject to the same provisions of 
        law as, any System bank, except that--
                    ``(A) the Corporation may--
                          ``(i) remove the interim directors and 
                      directors of a bridge System bank;
                          ``(ii) fix the compensation of members of the 
                      interim board of directors and the board of 
                      directors and senior

[[Page 132 STAT. 4717]]

                      management, as determined by the Corporation in 
                      its discretion, of a bridge System bank; and
                          ``(iii) waive any requirement established 
                      under Federal or State law which would otherwise 
                      be applicable with respect to directors of a 
                      bridge System bank, on the condition that the 
                      waiver of any requirement established by the Farm 
                      Credit Administration shall require the 
                      concurrence of the Farm Credit Administration;
                    ``(B) the Corporation may indemnify the 
                representatives for purposes of paragraph (1)(B) and the 
                interim directors, directors, officers, employees, and 
                agents of a bridge System bank on such terms as the 
                Corporation determines to be appropriate;
                    ``(C) no requirement under any provision of law 
                relating to the capital of a System institution shall 
                apply with respect to a bridge System bank;
                    ``(D) the Farm Credit Administration Board may 
                establish a limitation on the extent to which any person 
                may become indebted to a bridge System bank without 
                regard to the amount of the bridge System bank's capital 
                or surplus;
                    ``(E)(i) the board of directors of a bridge System 
                bank shall elect a chairperson who may also serve in the 
                position of chief executive officer, except that such 
                person shall not serve either as chairperson or as chief 
                executive officer without the prior approval of the 
                Corporation; and
                    ``(ii) the board of directors of a bridge System 
                bank may appoint a chief executive officer who is not 
                also the chairperson, except that such person shall not 
                serve as chief executive officer without the prior 
                approval of the Corporation;
                    ``(F) the Farm Credit Administration may waive any 
                requirement for a fidelity bond with respect to a bridge 
                System bank at the request of the Corporation;
                    ``(G) any judicial action to which a bridge System 
                bank becomes a party by virtue of its acquisition of any 
                assets or assumption of any liabilities of a System bank 
                in default shall be stayed from further proceedings for 
                a period of up to 45 days at the request of the bridge 
                System bank;
                    ``(H) no agreement which tends to diminish or defeat 
                the right, title or interest of a bridge System bank in 
                any asset of a System bank in default acquired by it 
                shall be valid against the bridge System bank unless 
                such agreement--
                          ``(i) is in writing;
                          ``(ii) was executed by such System bank in 
                      default and the person or persons claiming an 
                      adverse interest thereunder, including the 
                      obligor, contemporaneously with the acquisition of 
                      the asset by such System bank in default;
                          ``(iii) was approved by the board of directors 
                      of such System bank in default or its loan 
                      committee, which approval shall be reflected in 
                      the minutes of said board or committee; and

[[Page 132 STAT. 4718]]

                          ``(iv) has been, continuously from the time of 
                      its execution, an official record of such System 
                      bank in default;
                    ``(I) notwithstanding subsection 5.61(d)(2), any 
                agreement relating to an extension of credit between a 
                System bank, Federal Reserve bank, or the United States 
                Treasury and any System institution which was executed 
                before the extension of credit by such lender to such 
                System institution shall be treated as having been 
                executed contemporaneously with such extension of credit 
                for purposes of subparagraph (H); and
                    ``(J) except with the prior approval of the 
                Corporation and the concurrence of the Farm Credit 
                Administration, a bridge System bank may not, in any 
                transaction or series of transactions, issue capital 
                stock or be a party to any merger, consolidation, 
                disposition of substantially all of the assets or 
                liabilities of the bridge System bank, sale or exchange 
                of capital stock, or similar transaction, or change its 
                charter.
            ``(5) Capital.--
                    ``(A) No capital required.--The Corporation shall 
                not be required to--
                          ``(i) issue any capital stock on behalf of a 
                      bridge System bank chartered under this 
                      subsection; or
                          ``(ii) purchase any capital stock of a bridge 
                      System bank, except that notwithstanding any other 
                      provision of Federal or State law, the Corporation 
                      may purchase and retain capital stock of a bridge 
                      System bank in such amounts and on such terms as 
                      the Corporation, in its discretion, determines to 
                      be appropriate.
                    ``(B) Operating funds in lieu of capital.--Upon the 
                organization of a bridge System bank, and thereafter, as 
                the Corporation may, in its discretion, determine to be 
                necessary or advisable, the Corporation may make 
                available to the bridge System bank, upon such terms and 
                conditions and in such form and amounts as the 
                Corporation may in its discretion determine, funds for 
                the operation of the bridge System bank in lieu of 
                capital.
                    ``(C) Authority to issue capital stock.--Whenever 
                the Farm Credit Administration Board determines it is 
                advisable to do so, the Corporation shall cause capital 
                stock of a bridge System bank to be issued and offered 
                for sale in such amounts and on such terms and 
                conditions as the Corporation may, in its discretion, 
                determine.
            ``(6) Employee status.--Representatives for purposes of 
        paragraph (1)(C), interim directors, directors, officers, 
        employees, or agents of a bridge System bank are not, solely by 
        virtue of service in any such capacity, officers or employees of 
        the United States. Any employee of the Corporation, the Farm 
        Credit Administration, or any Federal instrumentality who serves 
        at the request of the Corporation as a representative for 
        purposes of paragraph (1)(C), interim director, director, 
        officer, employee, or agent of a bridge System bank shall not--
                    ``(A) solely by virtue of service in any such 
                capacity lose any existing status as an officer or 
                employee of the United States for purposes of any 
                provision of law; or

[[Page 132 STAT. 4719]]

                    ``(B) receive any salary or benefits for service in 
                any such capacity with respect to a bridge System bank 
                in addition to such salary or benefits as are obtained 
                through employment with the Corporation or such Federal 
                instrumentality.
            ``(7) Assistance authorized.--The Corporation may, in its 
        discretion, provide assistance under section 5.61(a) to 
        facilitate any merger or consolidation of a bridge System bank 
        in the same manner and to the same extent as such assistance may 
        be provided to a qualifying insured System bank (as defined in 
        section 5.61(a)(2)(B)) or to facilitate a bridge System bank's 
        acquisition of any assets or the assumption of any liabilities 
        of a System bank in default or in danger of default.
            ``(8) Duration of bridge system banks.--Subject to 
        paragraphs (10) and (11), the status of a bridge System bank as 
        such shall terminate at the end of the 2-year period following 
        the date it was granted a charter. The Farm Credit 
        Administration Board may, in its discretion, extend the status 
        of the bridge System bank as such for 3 additional 1-year 
        periods.
            ``(9) Termination of bridge system banks status.--The status 
        of any bridge System bank as such shall terminate upon the 
        earliest of--
                    ``(A) the merger or consolidation of the bridge 
                System bank with a System institution that is not a 
                bridge System bank, on the condition that the merger or 
                consolidation shall be subject to the approval of the 
                Farm Credit Administration;
                    ``(B) at the election of the Corporation and with 
                the approval of the Farm Credit Administration, the sale 
                of a majority or all of the capital stock of the bridge 
                System bank to a System institution or another bridge 
                System bank;
                    ``(C) at the election of the Corporation, and with 
                the approval of the Farm Credit Administration, either 
                the assumption of all or substantially all of the 
                liabilities of the bridge System bank, or the 
                acquisition of all or substantially all of the assets of 
                the bridge System bank, by a System institution that is 
                not a bridge System bank or other entity as permitted 
                under applicable law; and
                    ``(D) the expiration of the period provided in 
                paragraph (8), or the earlier dissolution of the bridge 
                System bank as provided in paragraph (11).
            ``(10) Effect of termination events.--
                    ``(A) Merger or consolidation.--A bridge System bank 
                that participates in a merger or consolidation as 
                provided in paragraph (9)(A) shall be for all purposes a 
                System institution, with all the rights, powers, and 
                privileges thereof, and such merger or consolidation 
                shall be conducted in accordance with, and shall have 
                the effect provided in, the provisions of applicable 
                law.
                    ``(B) Charter conversion.--Following the sale of a 
                majority or all of the capital stock of the bridge 
                System bank as provided in paragraph (9)(B), the Farm 
                Credit Administration Board may amend the charter of the 
                bridge System bank to reflect the termination of the 
                status of the bridge System bank as such, whereupon the 
                System bank shall remain a System bank, with all of the 
                rights,

[[Page 132 STAT. 4720]]

                powers, and privileges thereof, subject to all laws and 
                regulations applicable thereto.
                    ``(C) Assumption of liabilities and sale of 
                assets.--Following the assumption of all or 
                substantially all of the liabilities of the bridge 
                System bank, or the sale of all or substantially all of 
                the assets of the bridge System bank, as provided in 
                paragraph (9)(C), at the election of the Corporation, 
                the bridge System bank may retain its status as such for 
                the period provided in paragraph (8).
                    ``(D) Amendments to charter.--Following the 
                consummation of a transaction described in subparagraph 
                (A), (B), or (C) of paragraph (9), the charter of the 
                resulting System institution shall be amended by the 
                Farm Credit Administration to reflect the termination of 
                bridge System bank status, if appropriate.
            ``(11) Dissolution of bridge system bank.--