Shown Here:
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.
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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.
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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.
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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 appropria 