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110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-627
======================================================================
FOOD, CONSERVATION, AND ENERGY ACT OF 2008
----------
CONFERENCE REPORT
TO ACCOMPANY
H.R. 2419
May 13, 2008.--Ordered to be printed
FOOD, CONSERVATION, AND ENERGY ACT OF 2008
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-627
_______________________________________________________________________
FOOD, CONSERVATION, AND ENERGY ACT OF 2008
__________
CONFERENCE REPORT
TO ACCOMPANY
H.R. 2419
May 13, 2008.--Ordered to be printed
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-627
======================================================================
FOOD, CONSERVATION, AND ENERGY ACT OF 2008
_______
May 13, 2008.--Ordered to be printed
_______
Mr. Peterson of Minnesota, from the committee of conference, submitted
the following
CONFERENCE REPORT
[To accompany H.R. 2419]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H. R.
2419), to provide for the continuation of agricultural programs
through fiscal year 2012, and for other purposes, having met,
after full and free conference, have agreed to recommend and do
recommend to their respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Food,
Conservation, and Energy Act of 2008''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--COMMODITY PROGRAMS
Sec. 1001. Definitions.
Subtitle A--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Base acres.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Average crop revenue election program.
Sec. 1106. Producer agreement required as condition of provision of
payments.
Sec. 1107. Planting flexibility.
Sec. 1108. Special rule for long grain and medium grain rice.
Sec. 1109. Period of effectiveness.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Sec. 1210. Adjustments of loans.
Subtitle C--Peanuts
Sec. 1301. Definitions.
Sec. 1302. Base acres for peanuts for a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of
payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for
peanuts.
Sec. 1308. Adjustments of loans.
Subtitle D--Sugar
Sec. 1401. Sugar program.
Sec. 1402. United States membership in the International Sugar
Organization.
Sec. 1403. Flexible marketing allotments for sugar.
Sec. 1404. Storage facility loans.
Sec. 1405. Commodity Credit Corporation storage payments.
Subtitle E--Dairy
Sec. 1501. Dairy product price support program.
Sec. 1502. Dairy forward pricing program.
Sec. 1503. Dairy export incentive program.
Sec. 1504. Revision of Federal marketing order amendment procedures.
Sec. 1505. Dairy indemnity program.
Sec. 1506. Milk income loss contract program.
Sec. 1507. Dairy promotion and research program.
Sec. 1508. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1509. Federal Milk Marketing Order Review Commission.
Sec. 1510. Mandatory reporting of dairy commodities.
Subtitle F--Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Availability of quality incentive payments for covered
oilseed producers.
Sec. 1606. Personal liability of producers for deficiencies.
Sec. 1607. Extension of existing administrative authority regarding
loans.
Sec. 1608. Assignment of payments.
Sec. 1609. Tracking of benefits.
Sec. 1610. Government publication of cotton price forecasts.
Sec. 1611. Prevention of deceased individuals receiving payments under
farm commodity programs.
Sec. 1612. Hard white wheat development program.
Sec. 1613. Durum wheat quality program.
Sec. 1614. Storage facility loans.
Sec. 1615. State, county, and area committees.
Sec. 1616. Prohibition on charging certain fees.
Sec. 1617. Signature authority.
Sec. 1618. Modernization of Farm Service Agency.
Sec. 1619. Information gathering.
Sec. 1620. Leasing of office space.
Sec. 1621. Geographically disadvantaged farmers and ranchers.
Sec. 1622. Implementation.
Sec. 1623. Repeals.
TITLE II--CONSERVATION
Subtitle A--Definitions and Highly Erodible Land and Wetland
Conservation
Sec. 2001. Definitions relating to conservation title of Food Security
Act of 1985.
Sec. 2002. Review of good faith determinations related to highly
erodible land conservation.
Sec. 2003. Review of good faith determinations related to wetland
conservation.
Subtitle B--Conservation Reserve Program
Sec. 2101. Extension of conservation reserve program.
Sec. 2102. Land eligible for enrollment in conservation reserve.
Sec. 2103. Maximum enrollment of acreage in conservation reserve.
Sec. 2104. Designation of conservation priority areas.
Sec. 2105. Treatment of multi-year grasses and legumes.
Sec. 2106. Revised pilot program for enrollment of wetland and buffer
acreage in conservation reserve.
Sec. 2107. Additional duty of participants under conservation reserve
contracts.
Sec. 2108. Managed haying, grazing, or other commercial use of forage on
enrolled land and installation of wind turbines.
Sec. 2109. Cost sharing payments relating to trees, windbreaks,
shelterbelts, and wildlife corridors.
Sec. 2110. Evaluation and acceptance of contract offers, annual rental
payments, and payment limitations.
Sec. 2111. Conservation reserve program transition incentives for
beginning farmers or ranchers and socially disadvantaged
farmers or ranchers.
Subtitle C--Wetlands Reserve Program
Sec. 2201. Establishment and purpose of wetlands reserve program.
Sec. 2202. Maximum enrollment and enrollment methods.
Sec. 2203. Duration of wetlands reserve program and lands eligible for
enrollment.
Sec. 2204. Terms of wetlands reserve program easements.
Sec. 2205. Compensation for easements under wetlands reserve program.
Sec. 2206. Wetlands reserve enhancement program and reserved rights
pilot program.
Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve
program.
Sec. 2208. Payment limitations under wetlands reserve contracts and
agreements.
Sec. 2209. Repeal of payment limitations exception for State agreements
for wetlands reserve enhancement.
Sec. 2210. Report on implications of long-term nature of conservation
easements.
Subtitle D--Conservation Stewardship Program
Sec. 2301. Conservation stewardship program.
Subtitle E--Farmland Protection and Grassland Reserve
Sec. 2401. Farmland protection program.
Sec. 2402. Farm viability program.
Sec. 2403. Grassland reserve program.
Subtitle F--Environmental Quality Incentives Program
Sec. 2501. Purposes of environmental quality incentives program.
Sec. 2502. Definitions.
Sec. 2503. Establishment and administration of environmental quality
incentives program.
Sec. 2504. Evaluation of applications.
Sec. 2505. Duties of producers under environmental quality incentives
program.
Sec. 2506. Environmental quality incentives program plan.
Sec. 2507. Duties of the Secretary.
Sec. 2508. Limitation on environmental quality incentives program
payments.
Sec. 2509. Conservation innovation grants and payments.
Sec. 2510. Agricultural water enhancement program.
Subtitle G--Other Conservation Programs of the Food Security Act of 1985
Sec. 2601. Conservation of private grazing land.
Sec. 2602. Wildlife habitat incentive program.
Sec. 2603. Grassroots source water protection program.
Sec. 2604. Great Lakes Basin Program for soil erosion and sediment
control.
Sec. 2605. Chesapeake Bay watershed program.
Sec. 2606. Voluntary public access and habitat incentive program.
Subtitle H--Funding and Administration of Conservation Programs
Sec. 2701. Funding of conservation programs under Food Security Act of
1985.
Sec. 2702. Authority to accept contributions to support conservation
programs.
Sec. 2703. Regional equity and flexibility.
Sec. 2704. Assistance to certain farmers and ranchers to improve their
access to conservation programs.
Sec. 2705. Report regarding enrollments and assistance under
conservation programs.
Sec. 2706. Delivery of conservation technical assistance.
Sec. 2707. Cooperative conservation partnership initiative.
Sec. 2708. Administrative requirements for conservation programs.
Sec. 2709. Environmental services markets.
Sec. 2710. Agriculture conservation experienced services program.
Sec. 2711. Establishment of State technical committees and their
responsibilities.
Subtitle I--Conservation Programs Under Other Laws
Sec. 2801. Agricultural management assistance program.
Sec. 2802. Technical assistance under Soil Conservation and Domestic
Allotment Act.
Sec. 2803. Small watershed rehabilitation program.
Sec. 2804. Amendments to Soil and Water Resources Conservation Act of
1977.
Sec. 2805. Resource Conservation and Development Program.
Sec. 2806. Use of funds in Basin Funds for salinity control activities
upstream of Imperial Dam.
Sec. 2807. Desert terminal lakes.
Subtitle J--Miscellaneous Conservation Provisions
Sec. 2901. High Plains water study.
Sec. 2902. Naming of National Plant Materials Center at Beltsville,
Maryland, in honor of Norman A. Berg.
Sec. 2903. Transition.
Sec. 2904. Regulations.
TITLE III--TRADE
Subtitle A--Food for Peace Act
Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Generation and use of currencies by private voluntary
organizations and cooperatives.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3014. General authorities and requirements.
Sec. 3015. Definitions.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Consolidation and modification of annual reports regarding
agricultural trade issues.
Sec. 3019. Expiration of assistance.
Sec. 3020. Authorization of appropriations.
Sec. 3021. Minimum level of nonemergency food assistance.
Sec. 3022. Coordination of foreign assistance programs.
Sec. 3023. Micronutrient fortification programs.
Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Subtitle B--Agricultural Trade Act of 1978 and Related Statutes
Sec. 3101. Export credit guarantee program.
Sec. 3102. Market access program.
Sec. 3103. Export enhancement program.
Sec. 3104. Foreign market development cooperator program.
Sec. 3105. Food for Progress Act of 1985.
Sec. 3106. McGovern-Dole International Food for Education and Child
Nutrition Program.
Subtitle C--Miscellaneous
Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Global Crop Diversity Trust.
Sec. 3203. Technical assistance for specialty crops.
Sec. 3204. Emerging markets and facility guarantee loan program.
Sec. 3205. Consultative Group to Eliminate the Use of Child Labor and
Forced Labor in Imported Agricultural Products.
Sec. 3206. Local and regional food aid procurement projects.
Subtitle D--Softwood Lumber
Sec. 3301. Softwood lumber.
TITLE IV--NUTRITION
Subtitle A--Food Stamp Program
PART I--Renaming of Food Stamp Act and Program
Sec. 4001. Renaming of Food Stamp Act and program.
Sec. 4002. Conforming amendments.
PART II--Benefit Improvements
Sec. 4101. Exclusion of certain military payments from income.
Sec. 4102. Strengthening the food purchasing power of low-income
Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Asset indexation, education, and retirement accounts.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Transitional benefits option.
Sec. 4107. Increasing the minimum benefit.
Sec. 4108. Employment, training, and job retention.
PART III--Program Operations
Sec. 4111. Nutrition education.
Sec. 4112. Technical clarification regarding eligibility.
Sec. 4113. Clarification of split issuance.
Sec. 4114. Accrual of benefits.
Sec. 4115. Issuance and use of program benefits.
Sec. 4116. Review of major changes in program design.
Sec. 4117. Civil rights compliance.
Sec. 4118. Codification of access rules.
Sec. 4119. State option for telephonic signature.
Sec. 4120. Privacy protections.
Sec. 4121. Preservation of access and payment accuracy.
Sec. 4122. Funding of employment and training programs.
PART IV--Program Integrity
Sec. 4131. Eligibility disqualification.
Sec. 4132. Civil penalties and disqualification of retail food stores
and wholesale food concerns.
Sec. 4133. Major systems failures.
PART V--Miscellaneous
Sec. 4141. Pilot projects to evaluate health and nutrition promotion in
the supplemental nutrition assistance program.
Sec. 4142. Study on comparable access to supplemental nutrition
assistance for Puerto Rico.
Subtitle B--Food Distribution Programs
PART I--Emergency Food Assistance Program
Sec. 4201. Emergency food assistance.
Sec. 4202. Emergency food program infrastructure grants.
PART II--Food Distribution Program on Indian Reservations
Sec. 4211. Assessing the nutritional value of the FDPIR food package.
PART III--Commodity Supplemental Food Program
Sec. 4221. Commodity supplemental food program.
PART IV--Senior Farmers' Market Nutrition Program
Sec. 4231. Senior farmers' market nutrition program.
Subtitle C--Child Nutrition and Related Programs
Sec. 4301. State performance on enrolling children receiving program
benefits for free school meals.
Sec. 4302. Purchases of locally produced foods.
Sec. 4303. Healthy food education and program replicability.
Sec. 4304. Fresh fruit and vegetable program.
Sec. 4305. Whole grain products.
Sec. 4306. Buy American requirements.
Sec. 4307. Survey of foods purchased by school food authorities.
Subtitle D--Miscellaneous
Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows.
Sec. 4402. Assistance for community food projects.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and nuts
to support domestic nutrition assistance programs.
Sec. 4405. Hunger-free communities.
Sec. 4406. Reauthorization of Federal food assistance programs.
Sec. 4407. Effective and implementation dates.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Direct loans.
Sec. 5002. Conservation loan and loan guarantee program.
Sec. 5003. Limitations on amount of farm ownership loans.
Sec. 5004. Down payment loan program.
Sec. 5005. Beginning farmer or rancher and socially disadvantaged farmer
or rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 5101. Farming experience as eligibility requirement.
Sec. 5102. Limitations on amount of operating loans.
Sec. 5103. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.
Subtitle C--Emergency Loans
Sec. 5201. Eligibility of equine farmers and ranchers for emergency
loans.
Subtitle D--Administrative Provisions
Sec. 5301. Beginning farmer and rancher individual development accounts
pilot program.
Sec. 5302. Inventory sales preferences; loan fund set-asides.
Sec. 5303. Loan authorization levels.
Sec. 5304. Transition to private commercial or other sources of credit.
Sec. 5305. Extension of the right of first refusal to reacquire
homestead property to immediate family members of borrower-
owner.
Sec. 5306. Rural development and farm loan program activities.
Subtitle E--Farm Credit
Sec. 5401. Farm Credit System Insurance Corporation.
Sec. 5402. Technical correction.
Sec. 5403. Bank for cooperatives voting stock.
Sec. 5404. Premiums.
Sec. 5405. Certification of premiums.
Sec. 5406. Rural utility loans.
Sec. 5407. Equalization of loan-making powers of certain district
associations.
Subtitle F--Miscellaneous
Sec. 5501. Loans to purchasers of highly fractioned land.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. SEARCH grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facility grants, loans, and loan guarantees.
Sec. 6005. Community facility grants to advance broadband.
Sec. 6006. Rural water and wastewater circuit rider program.
Sec. 6007. Tribal College and University essential community facilities.
Sec. 6008. Emergency and imminent community water assistance grant
program.
Sec. 6009. Water systems for rural and native villages in Alaska.
Sec. 6010. Grants to nonprofit organizations to finance the
construction, refurbishing, and servicing of individually-
owned household water well systems in rural areas for
individuals with low or moderate incomes.
Sec. 6011. Interest rates for water and waste disposal facilities loans.
Sec. 6012. Cooperative equity security guarantee.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Grants to broadcasting systems.
Sec. 6015. Locally or regionally produced agricultural food products.
Sec. 6016. Appropriate technology transfer for rural areas.
Sec. 6017. Rural economic area partnership zones.
Sec. 6018. Definitions.
Sec. 6019. National rural development partnership.
Sec. 6020. Historic barn preservation.
Sec. 6021. Grants for NOAA weather radio transmitters.
Sec. 6022. Rural microentrepreneur assistance program.
Sec. 6023. Grants for expansion of employment opportunities for
individuals with disabilities in rural areas.
Sec. 6024. Health care services.
Sec. 6025. Delta Regional Authority.
Sec. 6026. Northern Great Plains Regional Authority.
Sec. 6027. Rural Business Investment Program.
Sec. 6028. Rural Collaborative Investment Program.
Sec. 6029. Funding of pending rural development loan and grant
applications.
Subtitle B--Rural Electrification Act of 1936
Sec. 6101. Energy efficiency programs.
Sec. 6102. Reinstatement of Rural Utility Services direct lending.
Sec. 6103. Deferment of payments to allow loans for improved energy
efficiency and demand reduction and for energy efficiency and
use audits.
Sec. 6104. Rural electrification assistance.
Sec. 6105. Substantially underserved trust areas.
Sec. 6106. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans for renewable energy.
Sec. 6109. Bonding requirements.
Sec. 6110. Access to broadband telecommunications services in rural
areas.
Sec. 6111. National Center for Rural Telecommunications Assessment.
Sec. 6112. Comprehensive rural broadband strategy.
Sec. 6113. Study on rural electric power generation.
Subtitle C--Miscellaneous
Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Value-added agricultural market development program grants.
Sec. 6203. Agriculture innovation center demonstration program.
Sec. 6204. Rural firefighters and emergency medical service assistance
program.
Sec. 6205. Insurance of loans for housing and related facilities for
domestic farm labor.
Sec. 6206. Study of rural transportation issues.
Subtitle D--Housing Assistance Council
Sec. 6301. Short title.
Sec. 6302. Assistance to Housing Assistance Council.
Sec. 6303. Audits and reports.
Sec. 6304. Persons not lawfully present in the United States.
Sec. 6305. Limitation on use of authorized amounts.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7101. Definitions.
Sec. 7102. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7103. Specialty crop committee report.
Sec. 7104. Renewable energy committee.
Sec. 7105. Veterinary medicine loan repayment.
Sec. 7106. Eligibility of University of the District of Columbia for
grants and fellowships for food and agricultural sciences
education.
Sec. 7107. Grants to 1890 schools to expand extension capacity.
Sec. 7108. Expansion of food and agricultural sciences awards.
Sec. 7109. Grants and fellowships for food and agricultural sciences
education.
Sec. 7110. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities and
forest products.
Sec. 7111. Policy research centers.
Sec. 7112. Education grants to Alaska Native-serving institutions and
Native Hawaiian-serving institutions.
Sec. 7113. Emphasis of human nutrition initiative.
Sec. 7114. Human nutrition intervention and health promotion research
program.
Sec. 7115. Pilot research program to combine medical and agricultural
research.
Sec. 7116. Nutrition education program.
Sec. 7117. Continuing animal health and disease research programs.
Sec. 7118. Cooperation among eligible institutions.
Sec. 7119. Appropriations for research on national or regional problems.
Sec. 7120. Animal health and disease research program.
Sec. 7121. Authorization level for extension at 1890 land-grant
colleges.
Sec. 7122. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7123. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee University.
Sec. 7124. Grants to upgrade agriculture and food sciences facilities at
the District of Columbia land-grant university.
Sec. 7125. Grants to upgrade agriculture and food sciences facilities
and equipment at insular area land-grant institutions.
Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and
education.
Sec. 7131. Competitive grants for international agricultural science and
education programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology
fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program
for insular area institutions of higher education.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7201. National genetics resources program.
Sec. 7202. National Agricultural Weather Information System.
Sec. 7203. Partnerships.
Sec. 7204. High-priority research and extension areas.
Sec. 7205. Nutrient management research and extension initiative.
Sec. 7206. Organic Agriculture Research and Extension Initiative.
Sec. 7207. Agricultural bioenergy feedstock and energy efficiency
research and extension initiative.
Sec. 7208. Farm business management and benchmarking.
Sec. 7209. Agricultural telecommunications program.
Sec. 7210. Assistive technology program for farmers with disabilities.
Sec. 7211. Research on honey bee diseases.
Sec. 7212. National Rural Information Center Clearinghouse.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7301. Peer and merit review.
Sec. 7302. Partnerships for high-value agricultural product quality
research.
Sec. 7303. Precision agriculture.
Sec. 7304. Biobased products.
Sec. 7305. Thomas Jefferson Initiative for Crop Diversification.
Sec. 7306. Integrated research, education, and extension competitive
grants program.
Sec. 7307. Fusarium graminearum grants.
Sec. 7308. Bovine Johne's disease control program.
Sec. 7309. Grants for youth organizations.
Sec. 7310. Agricultural biotechnology research and development for
developing countries.
Sec. 7311. Specialty crop research initiative.
Sec. 7312. Food animal residue avoidance database program.
Sec. 7313. Office of pest management policy.
Subtitle D--Other Laws
Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Smith-Lever Act.
Sec. 7404. Hatch Act of 1887.
Sec. 7405. Agricultural Experiment Station Research Facilities Act.
Sec. 7406. Agriculture and food research initiative.
Sec. 7407. Agricultural Risk Protection Act of 2000.
Sec. 7408. Exchange or sale authority.
Sec. 7409. Enhanced use lease authority pilot program.
Sec. 7410. Beginning farmer and rancher development program.
Sec. 7411. Public education regarding use of biotechnology in producing
food for human consumption.
Sec. 7412. McIntire-Stennis Cooperative Forestry Act.
Sec. 7413. Renewable Resources Extension Act of 1978.
Sec. 7414. National Aquaculture Act of 1980.
Sec. 7415. Construction of Chinese Garden at the National Arboretum.
Sec. 7416. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7417. Eligibility of University of the District of Columbia for
certain land-grant university assistance.
Subtitle E--Miscellaneous
PART I--General Provisions
Sec. 7501. Definitions.
Sec. 7502. Grazinglands research laboratory.
Sec. 7503. Fort Reno Science Park Research Facility.
Sec. 7504. Roadmap.
Sec. 7505. Review of plan of work requirements.
Sec. 7506. Budget submission and funding.
PART II--Research, Education, and Economics
Sec. 7511. Research, education, and economics.
PART III--New Grant and Research Programs
Sec. 7521. Research and education grants for the study of antibiotic-
resistant bacteria.
Sec. 7522. Farm and ranch stress assistance network.
Sec. 7523. Seed distribution.
Sec. 7524. Live virus foot and mouth disease research.
Sec. 7525. Natural products research program.
Sec. 7526. Sun grant program.
Sec. 7527. Study and report on food deserts.
Sec. 7528. Demonstration project authority for temporary positions.
Sec. 7529. Agricultural and rural transportation research and education.
TITLE VIII--FORESTRY
Subtitle A--Amendments to Cooperative Forestry Assistance Act of 1978
Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term State-wide assessments and strategies for forest
resources.
Sec. 8003. Community forest and open space conservation program.
Sec. 8004. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of Palau.
Sec. 8005. Changes to Forest Resource Coordinating Committee.
Sec. 8006. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8007. Competition in programs under Cooperative Forestry Assistance
Act of 1978.
Sec. 8008. Competitive allocation of funds for cooperative forest
innovation partnership projects.
Subtitle B--Cultural and Heritage Cooperation Authority
Sec. 8101. Purposes.
Sec. 8102. Definitions.
Sec. 8103. Reburial of human remains and cultural items.
Sec. 8104. Temporary closure for traditional and cultural purposes.
Sec. 8105. Forest products for traditional and cultural purposes.
Sec. 8106. Prohibition on disclosure.
Sec. 8107. Severability and savings provisions.
Subtitle C--Amendments to Other Forestry-Related Laws
Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Emergency forest restoration program.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Healthy forests reserve program.
Subtitle D--Boundary Adjustments and Land Conveyance Provisions
Sec. 8301. Green Mountain National Forest boundary adjustment.
Sec. 8302. Land conveyances, Chihuahuan Desert Nature Park, New Mexico,
and George Washington National Forest, Virginia.
Sec. 8303. Sale and exchange of National Forest System land, Vermont.
Subtitle E--Miscellaneous Provisions
Sec. 8401. Qualifying timber contract options.
Sec. 8402. Hispanic-serving institution agricultural land national
resources leadership program.
TITLE IX--ENERGY
Sec. 9001. Energy.
Sec. 9002. Biofuels infrastructure study.
Sec. 9003. Renewable fertilizer study.
TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE
Sec. 10001. Definitions.
Subtitle A--Horticulture Marketing and Information
Sec. 10101. Independent evaluation of Department of Agriculture
commodity purchase process.
Sec. 10102. Quality requirements for clementines.
Sec. 10103. Inclusion of specialty crops in census of agriculture.
Sec. 10104. Mushroom promotion, research, and consumer information.
Sec. 10105. Food safety education initiatives.
Sec. 10106. Farmers' market promotion program.
Sec. 10107. Specialty crops market news allocation.
Sec. 10108. Expedited marketing order for Hass avocados for grades and
standards and other purposes.
Sec. 10109. Specialty crop block grants.
Subtitle B--Pest and Disease Management
Sec. 10201. Plant pest and disease management and disaster prevention.
Sec. 10202. National Clean Plant Network.
Sec. 10203. Plant protection.
Sec. 10204. Regulations to improve management and oversight of certain
regulated articles.
Sec. 10205. Pest and Disease Revolving Loan Fund.
Sec. 10206. Cooperative agreements relating to plant pest and disease
prevention activities.
Subtitle C--Organic Agriculture
Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data initiatives.
Sec. 10303. National Organic Program.
Subtitle D--Miscellaneous
Sec. 10401. National Honey Board.
Sec. 10402. Identification of honey.
Sec. 10403. Grant program to improve movement of specialty crops.
Sec. 10404. Market loss assistance for asparagus producers.
TITLE XI--LIVESTOCK
Sec. 11001. Livestock mandatory reporting.
Sec. 11002. Country of origin labeling.
Sec. 11003. Agricultural Fair Practices Act of 1967 definitions.
Sec. 11004. Annual report.
Sec. 11005. Production contracts.
Sec. 11006. Regulations.
Sec. 11007. Sense of Congress regarding pseudorabies eradication
program.
Sec. 11008. Sense of Congress regarding the cattle fever tick
eradication program.
Sec. 11009. National Sheep Industry Improvement Center.
Sec. 11010. Trichinae certification program.
Sec. 11011. Low pathogenic diseases.
Sec. 11012. Animal protection.
Sec. 11013. National Aquatic Animal Health Plan.
Sec. 11014. Study on bioenergy operations.
Sec. 11015. Interstate shipment of meat and poultry inspected by Federal
and State agencies for certain small establishments.
Sec. 11016. Inspection and grading.
Sec. 11017. Food safety improvement.
TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS
Subtitle A--Crop Insurance and Disaster Assistance
Sec. 12001. Definition of organic crop.
Sec. 12002. General powers.
Sec. 12003. Reduction in loss ratio.
Sec. 12004. Premiums adjustments.
Sec. 12005. Controlled business insurance.
Sec. 12006. Administrative fee.
Sec. 12007. Time for payment.
Sec. 12008. Catastrophic coverage reimbursement rate.
Sec. 12009. Grain sorghum price election.
Sec. 12010. Premium reduction authority.
Sec. 12011. Enterprise and whole farm units.
Sec. 12012. Payment of portion of premium for area revenue plans.
Sec. 12013. Denial of claims.
Sec. 12014. Settlement of crop insurance claims on farm-stored
production.
Sec. 12015. Time for reimbursement.
Sec. 12016. Reimbursement rate.
Sec. 12017. Renegotiation of Standard Reinsurance Agreement.
Sec. 12018. Change in due date for Corporation payments for underwriting
gains.
Sec. 12019. Malting barley.
Sec. 12020. Crop production on native sod.
Sec. 12021. Information management.
Sec. 12022. Research and development.
Sec. 12023. Contracts for additional policies and studies.
Sec. 12024. Funding from insurance fund.
Sec. 12025. Pilot programs.
Sec. 12026. Risk management education for beginning farmers or ranchers.
Sec. 12027. Coverage for aquaculture under noninsured crop assistance
program.
Sec. 12028. Increase in service fees for noninsured crop assistance
program.
Sec. 12029. Determination of certain sweet potato production.
Sec. 12030. Declining yield report.
Sec. 12031. Definition of basic unit.
Sec. 12032. Crop insurance mediation.
Sec. 12033. Supplemental agricultural disaster assistance.
Sec. 12034. Fisheries disaster assistance.
Subtitle B--Small Business Disaster Loan Program
Sec. 12051. Short title.
Sec. 12052. Definitions.
PART I--Disaster Planning and Response
Sec. 12061. Economic injury disaster loans to nonprofits.
Sec. 12062. Coordination of disaster assistance programs with FEMA.
Sec. 12063. Public awareness of disaster declaration and application
periods.
Sec. 12064. Consistency between administration regulations and standard
operating procedures.
Sec. 12065. Increasing collateral requirements.
Sec. 12066. Processing disaster loans.
Sec. 12067. Information tracking and follow-up system.
Sec. 12068. Increased deferment period.
Sec. 12069. Disaster processing redundancy.
Sec. 12070. Net earnings clauses prohibited.
Sec. 12071. Economic injury disaster loans in cases of ice storms and
blizzards.
Sec. 12072. Development and implementation of major disaster response
plan.
Sec. 12073. Disaster planning responsibilities.
Sec. 12074. Assignment of employees of the office of disaster assistance
and disaster cadre.
Sec. 12075. Comprehensive disaster response plan.
Sec. 12076. Plans to secure sufficient office space.
Sec. 12077. Applicants that have become a major source of employment due
to changed economic circumstances.
Sec. 12078. Disaster loan amounts.
Sec. 12079. Small business bonding threshold.
PART II--Disaster Lending
Sec. 12081. Eligibility for additional disaster assistance.
Sec. 12082. Additional economic injury disaster loan assistance.
Sec. 12083. Private disaster loans.
Sec. 12084. Immediate Disaster Assistance program.
Sec. 12085. Expedited disaster assistance loan program.
Sec. 12086. Gulf Coast Disaster Loan Refinancing Program.
PART III--Miscellaneous
Sec. 12091. Reports on disaster assistance.
TITLE XIII--COMMODITY FUTURES
Sec. 13001. Short title.
Subtitle A--General Provisions
Sec. 13101. Commission authority over agreements, contracts or
transactions in foreign currency.
Sec. 13102. Anti-fraud authority over principal-to-principal
transactions.
Sec. 13103. Criminal and civil penalties.
Sec. 13104. Authorization of appropriations.
Sec. 13105. Technical and conforming amendments.
Sec. 13106. Portfolio margining and security index issues.
Subtitle B--Significant Price Discovery Contracts on Exempt Commercial
Markets
Sec. 13201. Significant price discovery contracts.
Sec. 13202. Large trader reporting.
Sec. 13203. Conforming amendments.
Sec. 13204. Effective date.
TITLE XIV--MISCELLANEOUS
Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers
Sec. 14001. Improved program delivery by Department of Agriculture on
Indian reservations.
Sec. 14002. Foreclosure.
Sec. 14003. Receipt for service or denial of service from certain
Department of Agriculture agencies.
Sec. 14004. Outreach and technical assistance for socially disadvantaged
farmers or ranchers.
Sec. 14005. Accurate documentation in the Census of Agriculture and
certain studies.
Sec. 14006. Transparency and accountability for socially disadvantaged
farmers or ranchers.
Sec. 14007. Oversight and compliance.
Sec. 14008. Minority Farmer Advisory Committee.
Sec. 14009. National Appeals Division.
Sec. 14010. Report of civil rights complaints, resolutions, and actions.
Sec. 14011. Sense of Congress relating to claims brought by socially
disadvantaged farmers or ranchers.
Sec. 14012. Determination on merits of Pigford claims.
Sec. 14013. Office of Advocacy and Outreach.
Subtitle B--Agricultural Security
Sec. 14101. Short title.
Sec. 14102. Definitions.
Chapter 1--Agricultural Security
Sec. 14111. Office of Homeland Security.
Sec. 14112. Agricultural biosecurity communication center.
Sec. 14113. Assistance to build local capacity in agricultural
biosecurity planning, preparedness, and response.
Chapter 2--Other Provisions
Sec. 14121. Research and development of agricultural countermeasures.
Sec. 14122. Agricultural biosecurity grant program.
Subtitle C--Other Miscellaneous Provisions
Sec. 14201. Cotton classification services.
Sec. 14202. Designation of States for cotton research and promotion.
Sec. 14203. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 14204. Grants to improve supply, stability, safety, and training of
agricultural labor force.
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 14206. Report on stored quantities of propane.
Sec. 14207. Prohibitions on dog fighting ventures.
Sec. 14208. Department of Agriculture conference transparency.
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act
amendments.
Sec. 14210. Importation of live dogs.
Sec. 14211. Permanent debarment from participation in Department of
Agriculture programs for fraud.
Sec. 14212. Prohibition on closure or relocation of county offices for
the Farm Service Agency.
Sec. 14213. USDA Graduate School.
Sec. 14214. Fines for violations of the Animal Welfare Act.
Sec. 14215. Definition of central filing system.
Sec. 14216. Consideration of proposed recommendations of study on use of
cats and dogs in Federal research.
Sec. 14217. Regional economic and infrastructure development.
Sec. 14218. Coordinator for chronically underserved rural areas.
Sec. 14219. Elimination of statute of limitations applicable to
collection of debt by administrative offset.
Sec. 14220. Availability of excess and surplus computers in rural areas.
Sec. 14221. Repeal of section 3068 of the Water Resources Development
Act of 2007.
Sec. 14222. Domestic food assistance programs.
Sec. 14223. Technical correction.
TITLE XV--TRADE AND TAX PROVISIONS
Sec. 15001. Short title; etc.
Subtitle A--Supplemental Agricultural Disaster Assistance From the
Agricultural Disaster Relief Trust Fund
Sec. 15101. Supplemental agricultural disaster assistance.
Subtitle B--Revenue Provisions for Agriculture Programs
Sec. 15201. Customs User Fees.
Sec. 15202. Time for payment of corporate estimated taxes.
Subtitle C--Tax Provisions
PART I--Conservation
subpart a--land and species preservation provisions
Sec. 15301. Exclusion of conservation reserve program payments from SECA
tax for certain individuals.
Sec. 15302. Two-year extension of special rule encouraging contributions
of capital gain real property for conservation purposes.
Sec. 15303. Deduction for endangered species recovery expenditures.
subpart b--timber provisions
Sec. 15311. Temporary reduction in rate of tax on qualified timber gain
of corporations.
Sec. 15312. Timber REIT modernization.
Sec. 15313. Mineral royalty income qualifying income for timber REITs.
Sec. 15314. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 15315. Safe harbor for timber property.
Sec. 15316. Qualified forestry conservation bonds.
PART II--Energy Provisions
subpart a--cellulosic biofuel
Sec. 15321. Credit for production of cellulosic biofuel.
Sec. 15322. Comprehensive study of biofuels.
subpart b--revenue provisions
Sec. 15331. Modification of alcohol credit.
Sec. 15332. Calculation of volume of alcohol for fuel credits.
Sec. 15333. Ethanol tariff extension.
Sec. 15334. Limitations on duty drawback on certain imported ethanol.
PART III--Agricultural Provisions
Sec. 15341. Increase in loan limits on agricultural bonds.
Sec. 15342. Allowance of section 1031 treatment for exchanges involving
certain mutual ditch, reservoir, or irrigation company stock.
Sec. 15343. Agricultural chemicals security credit.
Sec. 15344. 3-year depreciation for race horses that are 2 years old or
younger.
Sec. 15345. Temporary tax relief for Kiowa County, Kansas and
surrounding area.
Sec. 15346. Competitive certification awards modification authority.
PART IV--Other Revenue Provisions
Sec. 15351. Limitation on excess farm losses of certain taxpayers.
Sec. 15352. Modification to optional method of computing net earnings
from self-employment.
Sec. 15353. Information reporting for Commodity Credit Corporation
transactions.
PART V--Protection of Social Security
Sec. 15361. Protection of social security.
Subtitle D--Trade Provisions
PART I--Extension of Certain Trade Benefits
Sec. 15401. Short title.
Sec. 15402. Benefits for apparel and other textile articles.
Sec. 15403. Labor Ombudsman and technical assistance improvement and
compliance needs assessment and remediation program.
Sec. 15404. Petition process.
Sec. 15405. Conditions regarding enforcement of circumvention.
Sec. 15406. Presidential proclamation authority.
Sec. 15407. Regulations and procedures.
Sec. 15408. Extension of CBTPA.
Sec. 15409. Sense of Congress on interpretation of textile and apparel
provisions for Haiti.
Sec. 15410. Sense of Congress on trade mission to Haiti.
Sec. 15411. Sense of Congress on visa systems.
Sec. 15412. Effective date.
PART II--Miscellaneous Trade Provisions
Sec. 15421. Unused merchandise drawback.
Sec. 15422. Requirements relating to determination of transaction value
of imported merchandise.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
TITLE I--COMMODITY PROGRAMS
SEC. 1001. DEFINITIONS.
In this title (other than subtitle C):
(1) Average crop revenue election payment.--The
term ``average crop revenue election payment'' means a
payment made to producers on a farm under section 1105.
(2) Base acres.--
(A) In general.--The term ``base acres'',
with respect to a covered commodity on a farm,
means the number of acres established under
section 1101 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911) as in
effect on September 30, 2007, subject to any
adjustment under section 1101 of this Act.
(B) Peanuts.--The term ``base acres for
peanuts'' has the meaning given the term in
section 1301.
(3) Counter-cyclical payment.--The term ``counter-
cyclical payment'' means a payment made to producers on
a farm under section 1104.
(4) Covered commodity.--The term ``covered
commodity'' means wheat, corn, grain sorghum, barley,
oats, upland cotton, long grain rice, medium grain
rice, pulse crops, soybeans, and other oilseeds.
(5) Direct payment.--The term ``direct payment''
means a payment made to producers on a farm under
section 1103.
(6) Effective price.--The term ``effective price'',
with respect to a covered commodity for a crop year,
means the price calculated by the Secretary under
section 1104 to determine whether counter-cyclical
payments are required to be made for that crop year.
(7) Extra long staple cotton.--The term ``extra
long staple cotton'' means cotton that--
(A) is produced from pure strain varieties
of the Barbadense species or any hybrid of the
species, or other similar types of extra long
staple cotton, designated by the Secretary,
having characteristics needed for various end
uses for which United States upland cotton is
not suitable and grown in irrigated cotton-
growing regions of the United States designated
by the Secretary or other areas designated by
the Secretary as suitable for the production of
the varieties or types; and
(B) is ginned on a roller-type gin or, if
authorized by the Secretary, ginned on another
type gin for experimental purposes.
(8) Loan commodity.--The term ``loan commodity''
means wheat, corn, grain sorghum, barley, oats, upland
cotton, extra long staple cotton, long grain rice,
medium grain rice, soybeans, other oilseeds, graded
wool, nongraded wool, mohair, honey, dry peas, lentils,
small chickpeas, and large chickpeas.
(9) Medium grain rice.--The term ``medium grain
rice'' includes short grain rice.
(10) Other oilseed.--The term ``other oilseed''
means a crop of sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed, crambe, sesame seed,
or any oilseed designated by the Secretary.
(11) Payment acres.--The term ``payment acres''
means, in the case of direct payments and counter-
cyclical payments--
(A) except as provided in subparagraph (B),
85 percent of the base acres of a covered
commodity on a farm on which direct payments or
counter-cyclical payments are made; and
(B) in the case of direct payments for each
of the 2009 through 2011 crop years, 83.3
percent of the base acres for the covered
commodity on a farm on which direct payments
are made.
(12) Payment yield.--The term ``payment yield''
means the yield established for direct payments and the
yield established for counter-cyclical payments under
section 1102 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7912) as in effect on September
30, 2007, or under section 1102 of this Act, for a farm
for a covered commodity.
(13) Producer.--
(A) In general.--The term ``producer''
means an owner, operator, landlord, tenant, or
sharecropper that shares in the risk of
producing a crop and is entitled to share in
the crop available for marketing from the farm,
or would have shared had the crop been
produced.
(B) Hybrid seed.--In determining whether a
grower of hybrid seed is a producer, the
Secretary shall--
(i) not take into consideration the
existence of a hybrid seed contract;
and
(ii) ensure that program
requirements do not adversely affect
the ability of the grower to receive a
payment under this title.
(14) Pulse crop.--The term ``pulse crop'' means dry
peas, lentils, small chickpeas, and large chickpeas.
(15) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of
the United States.
(16) Target price.--The term ``target price'' means
the price per bushel, pound, or hundredweight (or other
appropriate unit) of a covered commodity used to
determine the payment rate for counter-cyclical
payments.
(17) United states.--The term ``United States'',
when used in a geographical sense, means all of the
States.
(18) United states premium factor.--The term
``United States Premium Factor'' means the percentage
by which the difference in the United States loan
schedule premiums for Strict Middling (SM) 1\1/8\-inch
upland cotton and for Middling (M) 1\3/32\-inch upland
cotton exceeds the difference in the applicable
premiums for comparable international qualities.
Subtitle A--Direct Payments and Counter-Cyclical Payments
SEC. 1101. BASE ACRES.
(a) Adjustment of Base Acres.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for
covered commodities for a farm whenever any of the
following circumstances occurs:
(A) A conservation reserve contract entered
into under section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) with respect to
the farm expires or is voluntarily terminated,
or was terminated or expired during the period
beginning on October 1, 2007, and ending on the
date of enactment of this Act.
(B) Cropland is released from coverage
under a conservation reserve contract by the
Secretary, or was released during the period
beginning on October 1, 2007, and ending on the
date of enactment of this Act.
(C) The producer has eligible pulse crop
acreage, which shall be determined in the same
manner as eligible oilseed acreage under
section 1101(a)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(D) The producer has eligible oilseed
acreage as the result of the Secretary
designating additional oilseeds, which shall be
determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the
Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7911(a)(2)).
(2) Special conservation reserve acreage payment
rules.--For the crop year in which a base acres
adjustment under subparagraph (A) or (B) of paragraph
(1) is first made, the owner of the farm shall elect to
receive either direct payments and counter-cyclical
payments with respect to the acreage added to the farm
under this subsection or a prorated payment under the
conservation reserve contract, but not both.
(b) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base
acres for a farm, together with the acreage described
in paragraph (2) exceeds the actual cropland acreage of
the farm, the Secretary shall reduce the base acres for
1 or more covered commodities for the farm or the base
acres for peanuts for the farm so that the sum of the
base acres and acreage described in paragraph (2) does
not exceed the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1),
the Secretary shall include the following:
(A) Any base acres for peanuts for the
farm.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands
reserve program under chapter 1 of subtitle D
of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled
in a Federal conservation program for which
payments are made in exchange for not producing
an agricultural commodity on the acreage.
(D) Any eligible pulse crop acreage, which
shall be determined in the same manner as
eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional
oilseeds, any eligible oilseed acreage, which
shall be determined in the same manner as
eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give
the owner of the farm the opportunity to select the
base acres for a covered commodity or the base acres
for peanuts for the farm against which the reduction
required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In
applying paragraph (1), the Secretary shall make an
exception in the case of double cropping, as determined
by the Secretary.
(5) Coordinated application of requirements.--The
Secretary shall take into account section 1302(b) when
applying the requirements of this subsection.
(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may
reduce, at any time, the base acres for any
covered commodity for the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in
a manner prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall
proportionately reduce base acres on a farm for
covered commodities for land that has been
subdivided and developed for multiple
residential units or other nonfarming uses if
the size of the tracts and the density of the
subdivision is such that the land is unlikely
to return to the previous agricultural use,
unless the producers on the farm demonstrate
that the land--
(i) remains devoted to commercial
agricultural production; or
(ii) is likely to be returned to
the previous agricultural use.
(B) Requirement.--The Secretary shall
establish procedures to identify land described
in subparagraph (A).
(3) Review and report.--Each year, to ensure, to
the maximum extent practicable, that payments are
received only by producers, the Secretary shall submit
to Congress a report that describes the results of the
actions taken under paragraph (2).
(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision
of this title, a producer on a farm may not receive
direct payments, counter-cyclical payments, or average
crop revenue election payments if the sum of the base
acres of the farm is 10 acres or less, as determined by
the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a
farm owned by--
(A) a socially disadvantaged farmer or
rancher (as defined in section 355(e) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher,
as defined by the Secretary.
(3) Data collection and publication.--The Secretary
shall--
(A) collect and publish segregated data and
survey information about the farm profiles,
utilization of land, and crop production; and
(B) perform an evaluation on the supply and
price of fruits and vegetables based on the
effects of suspension of base acres under this
section.
SEC. 1102. PAYMENT YIELDS.
(a) Establishment and Purpose.--For the purpose of making
direct payments and counter-cyclical payments under this
subtitle, the Secretary shall provide for the establishment of
a yield for each farm for any designated oilseed or eligible
pulse crop for which a payment yield was not established under
section 1102 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7912) in accordance with this section.
(b) Payment Yields for Designated Oilseeds and Eligible
Pulse Crops.--
(1) Determination of average yield.--In the case of
designated oilseeds and eligible pulse crops, the
Secretary shall determine the average yield per planted
acre for the designated oilseed or pulse crop on a farm
for the 1998 through 2001 crop years, excluding any
crop year in which the acreage planted to the
designated oilseed or pulse crop was zero.
(2) Adjustment for payment yield.--
(A) In general.--The payment yield for a
farm for a designated oilseed or eligible pulse
crop shall be equal to the product of the
following:
(i) The average yield for the
designated oilseed or pulse crop
determined under paragraph (1).
(ii) The ratio resulting from
dividing the national average yield for
the designated oilseed or pulse crop
for the 1981 through 1985 crops by the
national average yield for the
designated oilseed or pulse crop for
the 1998 through 2001 crops.
(B) No national average yield information
available.--To the extent that national average
yield information for a designated oilseed or
pulse crop is not available, the Secretary
shall use such information as the Secretary
determines to be fair and equitable to
establish a national average yield under this
section.
(3) Use of partial county average yield.--If the
yield per planted acre for a crop of a designated
oilseed or pulse crop for a farm for any of the 1998
through 2001 crop years was less than 75 percent of the
county yield for that designated oilseed or pulse crop,
the Secretary shall assign a yield for that crop year
equal to 75 percent of the county yield for the purpose
of determining the average under paragraph (1).
(4) No historic yield data available.--In the case
of establishing yields for designated oilseeds and
eligible pulse crops, if historic yield data is not
available, the Secretary shall use the ratio for dry
peas calculated under paragraph (2)(A)(ii) in
determining the yields for designated oilseeds and
eligible pulse crops, as determined to be fair and
equitable by the Secretary.
SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.
(a) Payment Required.--For each of the 2008 through 2012
crop years of each covered commodity (other than pulse crops),
the Secretary shall make direct payments to producers on farms
for which base acres and payment yields are established.
(b) Payment Rate.--Except as provided in section 1105, the
payment rates used to make direct payments with respect to
covered commodities for a crop year shall be as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Long grain rice, $2.35 per hundredweight.
(8) Medium grain rice, $2.35 per hundredweight.
(9) Soybeans, $0.44 per bushel.
(10) Other oilseeds, $0.80 per hundredweight.
(c) Payment Amount.--The amount of the direct payment to be
paid to the producers on a farm for a covered commodity for a
crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on
the farm.
(3) The payment yield for the covered commodity for
the farm.
(d) Time for Payment.--
(1) In general.--Except as provided in paragraph
(2), in the case of each of the 2008 through 2012 crop
years, the Secretary may not make direct payments
before October 1 of the calendar year in which the crop
of the covered commodity is harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of
the producers on a farm, the Secretary
shall pay in advance up to 22 percent
of the direct payment for a covered
commodity for any of the 2008 through
2011 crop years to the producers on a
farm.
(ii) 2008 crop year.--If the
producers on a farm elect to receive
advance direct payments under clause
(i) for a covered commodity for the
2008 crop year, as soon as practicable
after the election, the Secretary shall
make the advance direct payment to the
producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses
(ii) and (iii), the producers on a farm
shall select the month during which the
advance payment for a crop year will be
made.
(ii) Options.--The month selected
may be any month during the period--
(I) beginning on December 1
of the calendar year before the
calendar year in which the crop
of the covered commodity is
harvested; and
(II) ending during the
month within which the direct
payment would otherwise be
made.
(iii) Change.--The producers on a
farm may change the selected month for
a subsequent advance payment by
providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer
on a farm that receives an advance direct payment for a
crop year ceases to be a producer on that farm, or the
extent to which the producer shares in the risk of
producing a crop changes, before the date the remainder
of the direct payment is made, the producer shall be
responsible for repaying the Secretary the applicable
amount of the advance payment, as determined by the
Secretary.
SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) Payment Required.--Except as provided in section 1105,
for each of the 2008 through 2012 crop years for each covered
commodity, the Secretary shall make counter-cyclical payments
to producers on farms for which payment yields and base acres
are established with respect to the covered commodity if the
Secretary determines that the effective price for the covered
commodity is less than the target price for the covered
commodity.
(b) Effective Price.--
(1) Covered commodities other than rice.--Except as
provided in paragraph (2), for purposes of subsection
(a), the effective price for a covered commodity is
equal to the sum of the following:
(A) The higher of the following:
(i) The national average market
price received by producers during the
12-month marketing year for the covered
commodity, as determined by the
Secretary.
(ii) The national average loan rate
for a marketing assistance loan for the
covered commodity in effect for the
applicable period under subtitle B.
(B) The payment rate in effect for the
covered commodity under section 1103 for the
purpose of making direct payments with respect
to the covered commodity.
(2) Rice.--In the case of long grain rice and
medium grain rice, for purposes of subsection (a), the
effective price for each type or class of rice is equal
to the sum of the following:
(A) The higher of the following:
(i) The national average market
price received by producers during the
12-month marketing year for the type or
class of rice, as determined by the
Secretary.
(ii) The national average loan rate
for a marketing assistance loan for the
type or class of rice in effect for the
applicable period under subtitle B.
(B) The payment rate in effect for the type
or class of rice under section 1103 for the
purpose of making direct payments with respect
to the type or class of rice.
(c) Target Price.--
(1) 2008 crop year.--For purposes of the 2008 crop
year, the target prices for covered commodities shall
be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per
hundredweight.
(H) Medium grain rice, $10.50 per
hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per
hundredweight.
(2) 2009 crop year.--For purposes of the 2009 crop
year, the target prices for covered commodities shall
be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per
hundredweight.
(H) Medium grain rice, $10.50 per
hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per
hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per
hundredweight.
(N) Large chickpeas, $12.81 per
hundredweight.
(3) Subsequent crop years.--For purposes of each of
the 2010 through 2012 crop years, the target prices for
covered commodities shall be as follows:
(A) Wheat, $4.17 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.63 per bushel.
(D) Barley, $2.63 per bushel.
(E) Oats, $1.79 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per
hundredweight.
(H) Medium grain rice, $10.50 per
hundredweight.
(I) Soybeans, $6.00 per bushel.
(J) Other oilseeds, $12.68 per
hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per
hundredweight.
(N) Large chickpeas, $12.81 per
hundredweight.
(d) Payment Rate.--The payment rate used to make counter-
cyclical payments with respect to a covered commodity for a
crop year shall be equal to the difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection
(b) for the covered commodity.
(e) Payment Amount.--If counter-cyclical payments are
required to be paid under this section for any of the 2008
through 2012 crop years of a covered commodity, the amount of
the counter-cyclical payment to be paid to the producers on a
farm for that crop year shall be equal to the product of the
following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on
the farm.
(3) The payment yield for the covered commodity for
the farm.
(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph
(2), if the Secretary determines under subsection (a)
that counter-cyclical payments are required to be made
under this section for the crop of a covered commodity,
beginning October 1, or as soon as practicable
thereafter, after the end of the marketing year for the
covered commodity, the Secretary shall make the
counter-cyclical payments for the crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the
12-month marketing year for a covered
commodity, the Secretary estimates that
counter-cyclical payments will be required for
the crop of the covered commodity, the
Secretary shall give producers on a farm the
option to receive partial payments of the
counter-cyclical payment projected to be made
for that crop of the covered commodity.
(B) Election.--
(i) In general.--The Secretary
shall allow producers on a farm to make
an election to receive partial payments
for a covered commodity under
subparagraph (A) at any time but not
later than 60 days prior to the end of
the marketing year for that covered
commodity.
(ii) Date of issuance.--The
Secretary shall issue the partial
payment after the date of an
announcement by the Secretary but not
later than 30 days prior to the end of
the marketing year.
(3) Time for partial payments.--When the Secretary
makes partial payments for a covered commodity for any
of the 2008 through 2010 crop years--
(A) the first partial payment shall be made
after completion of the first 180 days of the
marketing year for the covered commodity; and
(B) the final partial payment shall be made
beginning October 1, or as soon as practicable
thereafter, after the end of the applicable
marketing year for the covered commodity.
(4) Amount of partial payment.--
(A) First partial payment.--For each of the
2008 through 2010 crops of a covered commodity,
the first partial payment under paragraph (3)
to the producers on a farm may not exceed 40
percent of the projected counter-cyclical
payment for the covered commodity for the crop
year, as determined by the Secretary.
(B) Final payment.--The final payment for a
covered commodity for a crop year shall be
equal to the difference between--
(i) the actual counter-cyclical
payment to be made to the producers for
the covered commodity for that crop
year; and
(ii) the amount of the partial
payment made to the producers under
subparagraph (A).
(5) Repayment.--The producers on a farm that
receive a partial payment under this subsection for a
crop year shall repay to the Secretary the amount, if
any, by which the total of the partial payments exceed
the actual counter-cyclical payment to be made for the
covered commodity for that crop year.
SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.
(a) Availability and Election of Alternative Approach.--
(1) Availability of average crop revenue election
payments.--As an alternative to receiving counter-
cyclical payments under section 1104 or 1304 and in
exchange for a 20-percent reduction in direct payments
under section 1103 or 1303 and a 30-percent reduction
in marketing assistance loan rates under section 1202
or 1307, with respect to all covered commodities and
peanuts on a farm, during each of the 2009, 2010, 2011,
and 2012 crop years, the Secretary shall give the
producers on the farm an opportunity to make an
irrevocable election to instead receive average crop
revenue election (referred to in this section as
``ACRE'') payments under this section for the initial
crop year for which the election is made through the
2012 crop year.
(2) Limitation.--
(A) In general.--The total number of
planted acres for which the producers on a farm
may receive ACRE payments under this section
may not exceed the total base acreage for all
covered commodities and peanuts on the farm.
(B) Election.--If the total number of
planted acres to all covered commodities and
peanuts of the producers on a farm exceeds the
total base acreage of the farm, the producers
on the farm may choose which planted acres to
enroll in the program under this section.
(3) Election; time for election.--
(A) In general.--The Secretary shall
provide notice to producers regarding the
opportunity to make each of the elections
described in paragraph (1).
(B) Notice requirements.--The notice shall
include--
(i) notice of the opportunity of
the producers on a farm to make the
election; and
(ii) information regarding the
manner in which the election must be
made and the time periods and manner in
which notice of the election must be
submitted to the Secretary.
(4) Election deadline.--Within the time period and
in the manner prescribed pursuant to paragraph (3), all
of the producers on a farm shall submit to the
Secretary notice of an election made under paragraph
(1).
(5) Effect of failure to make election.--If all of
the producers on a farm fail to make an election under
paragraph (1), make different elections under paragraph
(1), or fail to timely notify the Secretary of the
election made, as required by paragraph (4), all of the
producers on the farm shall be deemed to have made the
election to receive counter-cyclical payments under
section 1104 or 1304 for all covered commodities and
peanuts on the farm, and to otherwise not have made the
election described in paragraph (1), for the applicable
crop years.
(b) Payments Required.--
(1) In general.--In the case of producers on a farm
who make an election under subsection (a) to receive
ACRE payments for any of the 2009 through 2012 crop
years for all covered commodities and peanuts, the
Secretary shall make ACRE payments available to the
producers on a farm in accordance with this subsection.
(2) ACRE payment.--
(A) In general.--Subject to paragraph (3),
in the case of producers on a farm described in
paragraph (1), the Secretary shall make ACRE
payments available to the producers on a farm
for each crop year if--
(i) the actual State revenue for
the crop year for the covered commodity
or peanuts in the State determined
under subsection (c); is less than
(ii) the ACRE program guarantee for
the crop year for the covered commodity
or peanuts in the State determined
under subsection (d).
(B) Individual loss.--The Secretary shall
make ACRE payments available to the producers
on a farm in a State for a crop year only if
(as determined by the Secretary)--
(i) the actual farm revenue for the
crop year for the covered commodity or
peanuts, as determined under subsection
(e); is less than
(ii) the farm ACRE benchmark
revenue for the crop year for the
covered commodity or peanuts, as
determined under subsection (f).
(3) Time for payments.--In the case of each of the
2009 through 2012 crop years, the Secretary shall make
ACRE payments beginning October 1, or as soon as
practicable thereafter, after the end of the applicable
marketing year for the covered commodity or peanuts.
(c) Actual State Revenue.--
(1) In general.--For purposes of subsection
(b)(2)(A), the amount of the actual State revenue for a
crop year of a covered commodity or peanuts shall equal
the product obtained by multiplying--
(A) the actual State yield for each planted
acre for the crop year for the covered
commodity or peanuts determined under paragraph
(2); and
(B) the national average market price for
the crop year for the covered commodity or
peanuts determined under paragraph (3).
(2) Actual state yield.--For purposes of paragraph
(1)(A), the actual State yield for each planted acre
for a crop year for a covered commodity or peanuts in a
State shall equal (as determined by the Secretary)--
(A) the quantity of the covered commodity
or peanuts that is produced in the State during
the crop year; divided by
(B) the number of acres that are planted to
the covered commodity or peanuts in the State
during the crop year.
(3) National average market price.--For purposes of
paragraph (1)(B), the national average market price for
a crop year for a covered commodity or peanuts in a
State shall equal the greater of--
(A) the national average market price
received by producers during the 12-month
marketing year for the covered commodity or
peanuts, as determined by the Secretary; or
(B) the marketing assistance loan rate for
the covered commodity or peanuts under section
1202 or 1307, as reduced under subsection
(a)(1).
(d) ACRE Program Guarantee.--
(1) Amount.--
(A) In general.--For purposes of subsection
(b)(2)(A) and subject to subparagraph (B), the
ACRE program guarantee for a crop year for a
covered commodity or peanuts in a State shall
equal 90 percent of the product obtained by
multiplying--
(i) the benchmark State yield for
each planted acre for the crop year for
the covered commodity or peanuts in a
State determined under paragraph (2);
and
(ii) the ACRE program guarantee
price for the crop year for the covered
commodity or peanuts determined under
paragraph (3).
(B) Minimum and maximum guarantee.--In the
case of each of the 2010 through 2012 crop
years, the ACRE program guarantee for a crop
year for a covered commodity or peanuts under
subparagraph (A) shall not decrease or increase
more than 10 percent from the guarantee for the
preceding crop year.
(2) Benchmark state yield.--
(A) In general.--For purposes of paragraph
(1)(A)(i), subject to subparagraph (B), the
benchmark State yield for each planted acre for
a crop year for a covered commodity or peanuts
in a State shall equal the average yield per
planted acre for the covered commodity or
peanuts in the State for the most recent 5 crop
year yields, excluding each of the crop years
with the highest and lowest yields, using
National Agricultural Statistics Service data.
(B) Assigned yield.--If the Secretary
cannot establish the benchmark State yield for
each planted acre for a crop year for a covered
commodity or peanuts in a State in accordance
with subparagraph (A) or if the yield
determined under subparagraph (A) is an
unrepresentative average yield for the State
(as determined by the Secretary), the Secretary
shall assign a benchmark State yield for each
planted acre for the crop year for the covered
commodity or peanuts in the State on the basis
of--
(i) previous average yields for a
period of 5 crop years, excluding each
of the crop years with the highest and
lowest yields; or
(ii) benchmark State yields for
planted acres for the crop year for the
covered commodity or peanuts in similar
States.
(3) ACRE program guarantee price.--For purposes of
paragraph (1)(A)(ii), the ACRE program guarantee price
for a crop year for a covered commodity or peanuts in a
State shall be the simple average of the national
average market price received by producers of the
covered commodity or peanuts for the most recent 2 crop
years, as determined by the Secretary.
(4) States with irrigated and nonirrigated land.--
In the case of a State in which at least 25 percent of
the acreage planted to a covered commodity or peanuts
in the State is irrigated and at least 25 percent of
the acreage planted to the covered commodity or peanuts
in the State is not irrigated, the Secretary shall
calculate a separate ACRE program guarantee for the
irrigated and nonirrigated areas of the State for the
covered commodity or peanuts.
(e) Actual Farm Revenue.--For purposes of subsection
(b)(2)(B)(i), the amount of the actual farm revenue for a crop
year for a covered commodity or peanuts shall equal the amount
determined by multiplying--
(1) the actual yield for the covered commodity or
peanuts of the producers on the farm; and
(2) the national average market price for the crop
year for the covered commodity or peanuts determined
under subsection (c)(3).
(f) Farm ACRE Benchmark Revenue.--For purposes of
subsection (b)(2)(B)(ii), the farm ACRE benchmark revenue for
the crop year for a covered commodity or peanuts shall equal
the sum obtained by adding--
(1) the amount determined by multiplying--
(A) the average yield per planted acre for
the covered commodity or peanuts of the
producers on the farm for the most recent 5
crop years, excluding each of the crop years
with the highest and lowest yields; and
(B) the ACRE program guarantee price for
the applicable crop year for the covered
commodity or peanuts in a State determined
under subsection (d)(3); and
(2) the amount of the per acre crop insurance
premium required to be paid by the producers on the
farm for the applicable crop year for the covered
commodity or peanuts on the farm.
(g) Payment Amount.--If ACRE payments are required to be
paid for any of the 2009 through 2012 crop years of a covered
commodity or peanuts under this section, the amount of the ACRE
payment to be paid to the producers on the farm for the crop
year under this section shall be equal to the product obtained
by multiplying--
(1) the lesser of--
(A) the difference between--
(i) the ACRE program guarantee for
the crop year for the covered commodity
or peanuts in the State determined
under subsection (d); and
(ii) the actual State revenue from
the crop year for the covered commodity
or peanuts in the State determined
under subsection (c); and
(B) 25 percent of the ACRE program
guarantee for the crop year for the covered
commodity or peanuts in the State determined
under subsection (d);
(2)(A) for each of the 2009 through 2011 crop
years, 83.3 percent of the acreage planted or
considered planted to the covered commodity or peanuts
for harvest on the farm in the crop year; and
(B) for the 2012 crop year, 85 percent of the
acreage planted or considered planted to the covered
commodity or peanuts for harvest on the farm in the
crop year; and
(3) the quotient obtained by dividing--
(A) the average yield per planted acre for
the covered commodity or peanuts of the
producers on the farm for the most recent 5
crop years, excluding each of the crop years
with the highest and lowest yields; by
(B) the benchmark State yield for the crop
year, as determined under subsection (d)(2).
SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF
PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm
may receive direct payments, counter-cyclical payments,
or average crop revenue election payments with respect
to the farm, the producers shall agree, during the crop
year for which the payments are made and in exchange
for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of
the Food Security Act of 1985 (16 U.S.C. 3811
et seq.);
(B) to comply with applicable wetland
protection requirements under subtitle C of
title XII of that Act (16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1107;
(D) to use the land on the farm, in a
quantity equal to the attributable base acres
for the farm and any base acres for peanuts for
the farm under subtitle C, for an agricultural
or conserving use, and not for a
nonagricultural commercial, industrial, or
residential use, as determined by the
Secretary; and
(E) to effectively control noxious weeds
and otherwise maintain the land in accordance
with sound agricultural practices, as
determined by the Secretary, if the
agricultural or conserving use involves the
noncultivation of any portion of the land
referred to in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules
as the Secretary considers necessary to ensure producer
compliance with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee
or owner, the Secretary may modify the requirements of
this subsection if the modifications are consistent
with the objectives of this subsection, as determined
by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in
paragraph (2), a transfer of (or change in) the
interest of the producers on a farm in base
acres for which direct payments or counter-
cyclical payments are made, or on which average
crop revenue election payments are based, shall
result in the termination of the direct
payments, counter-cyclical payments, or average
crop revenue election payments to the extent
the payments are made or based on the base
acres, unless the transferee or owner of the
acreage agrees to assume all obligations under
subsection (a).
(B) Effective date.--The termination shall
take effect on the date determined by the
Secretary.
(2) Exception.--If a producer entitled to a direct
payment, counter-cyclical payment, or average crop
revenue election payment dies, becomes incompetent, or
is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with
rules issued by the Secretary.
(c) Reports.--
(1) Acreage reports.--As a condition on the receipt
of any benefits under this subtitle or subtitle B, the
Secretary shall require producers on a farm to submit
to the Secretary annual acreage reports with respect to
all cropland on the farm.
(2) Production reports.--As a condition on the
receipt of any benefits under this subtitle or subtitle
B, the Secretary shall require producers on a farm that
receive payments under section 1105 to submit to the
Secretary annual production reports with respect to all
covered commodities and peanuts produced on the farm.
(3) Penalties.--No penalty with respect to benefits
under this subtitle or subtitle B shall be assessed
against the producers on a farm for an inaccurate
acreage or production report unless the producers on
the farm knowingly and willfully falsified the acreage
or production report.
(d) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for
the sharing of direct payments, counter-cyclical payments, or
average crop revenue election payments among the producers on a
farm on a fair and equitable basis.
SEC. 1107. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any
commodity or crop may be planted on base acres on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an
agricultural commodity specified in paragraph (3) shall
be prohibited on base acres unless the commodity, if
planted, is destroyed before harvest.
(2) Treatment of trees and other perennials.--The
planting of an agricultural commodity specified in
paragraph (3) that is produced on a tree or other
perennial plant shall be prohibited on base acres.
(3) Covered agricultural commodities.--Paragraphs
(1) and (2) apply to the following agricultural
commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and
pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b)
shall not limit the planting of an agricultural commodity
specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of
double-cropping of covered commodities with
agricultural commodities specified in subsection
(b)(3), as determined by the Secretary, in which case
the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a
history of planting agricultural commodities specified
in subsection (b)(3) on base acres, except that direct
payments and counter-cyclical payments shall be reduced
by an acre for each acre planted to such an
agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a
specific agricultural commodity specified in subsection
(b)(3), except that--
(A) the quantity planted may not exceed the
average annual planting history of such
agricultural commodity by the producers on the
farm in the 1991 through 1995 or 1998 through
2001 crop years (excluding any crop year in
which no plantings were made), as determined by
the Secretary; and
(B) direct payments and counter-cyclical
payments shall be reduced by an acre for each
acre planted to such agricultural commodity.
(d) Planting Transferability Pilot Project.--
(1) Pilot project authorized.--Notwithstanding
paragraphs (1) and (2) of subsection (b) and in
addition to the exceptions provided in subsection (c),
the Secretary shall carry out a pilot project to permit
the planting of cucumbers, green peas, lima beans,
pumpkins, snap beans, sweet corn, and tomatoes grown
for processing on base acres during each of the 2009
through 2012 crop years.
(2) Pilot project states and acres.--The number of
base acres eligible during each crop year for the pilot
project under paragraph (1) shall be--
(A) 9,000 acres in the State of Illinois;
(B) 9,000 acres in the State of Indiana;
(C) 1,000 acres in the State of Iowa;
(D) 9,000 acres in the State of Michigan;
(E) 34,000 acres in the State of Minnesota;
(F) 4,000 acres in the State of Ohio; and
(G) 9,000 acres in the State of Wisconsin.
(3) Contract and management requirements.--To be
eligible for selection to participate in the pilot
project, the producers on a farm shall--
(A) demonstrate to the Secretary that the
producers on the farm have entered into a
contract to produce a crop of a commodity
specified in paragraph (1) for processing;
(B) agree to produce the crop as part of a
program of crop rotation on the farm to achieve
agronomic and pest and disease management
benefits; and
(C) provide evidence of the disposition of
the crop.
(4) Temporary reduction in base acres.--The base
acres on a farm for a crop year shall be reduced by an
acre for each acre planted under the pilot program.
(5) Duration of reductions.--The reduction in the
base acres of a farm for a crop year under paragraph
(4) shall expire at the end of the crop year.
(6) Recalculation of base acres.--
(A) In general.--If the Secretary
recalculates base acres for a farm while the
farm is included in the pilot project, the
planting and production of a crop of a
commodity specified in paragraph (1) on base
acres for which a temporary reduction was made
under this section shall be considered to be
the same as the planting and production of a
covered commodity.
(B) Prohibition.--Nothing in this paragraph
provides authority for the Secretary to
recalculate base acres for a farm.
(7) Pilot impact evaluation.--
(A) In general.--The Secretary shall
periodically evaluate the pilot project
conducted under this subsection to determine
the effects of the pilot project on the supply
and price of--
(i) fresh fruits and vegetables;
and
(ii) fruits and vegetables for
processing.
(B) Determination.--An evaluation under
subparagraph (A) shall include a determination
as to whether--
(i) producers of fresh fruits and
vegetables are being negatively
impacted; and
(ii) existing production capacities
are being supplanted.
(C) Report.--As soon as practicable after
conducting an evaluation under subparagraph
(A), the Secretary shall submit to the
Committee on Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate a report that describes the results of
the evaluation.
SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.
(a) Calculation Method.--Subject to subsections (b) and
(c), for the purposes of determining the amount of the counter-
cyclical payments to be paid to the producers on a farm for
long grain rice and medium grain rice under section 1104, the
base acres of rice on the farm shall be apportioned using the
4-year average of the percentages of acreage planted in the
applicable State to long grain rice and medium grain rice
during the 2003 through 2006 crop years, as determined by the
Secretary.
(b) Producer Election.--As an alternative to the
calculation method described in subsection (a), the Secretary
shall provide producers on a farm the opportunity to elect to
apportion rice base acres on the farm using the 4-year average
of--
(1) the percentages of acreage planted on the farm
to long grain rice and medium grain rice during the
2003 through 2006 crop years;
(2) the percentages of any acreage on the farm that
the producers were prevented from planting to long
grain rice and medium grain rice during the 2003
through 2006 crop years because of drought, flood,
other natural disaster, or other condition beyond the
control of the producers, as determined by the
Secretary; and
(3) in the case of a crop year for which a producer
on a farm elected not to plant to long grain and medium
grain rice during the 2003 through 2006 crop years, the
percentages of acreage planted in the applicable State
to long grain rice and medium grain rice, as determined
by the Secretary.
(c) Limitation.--In carrying out this section, the
Secretary shall use the same total base acres, payment acres,
and payment yields established with respect to rice under
sections 1101 and 1102 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911, 7912), as in effect on
September 30, 2007, subject to any adjustment under section
1101 of this Act.
SEC. 1109. PERIOD OF EFFECTIVENESS.
This subtitle shall be effective beginning with the 2008
crop year of each covered commodity through the 2012 crop year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
LOAN COMMODITIES.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2008 through
2012 crops of each loan commodity, the Secretary shall
make available to producers on a farm nonrecourse
marketing assistance loans for loan commodities
produced on the farm.
(2) Terms and conditions.--The marketing assistance
loans shall be made under terms and conditions that are
prescribed by the Secretary and at the loan rate
established under section 1202 for the loan commodity.
(b) Eligible Production.--The producers on a farm shall be
eligible for a marketing assistance loan under subsection (a)
for any quantity of a loan commodity produced on the farm.
(c) Compliance With Conservation and Wetlands
Requirements.--As a condition of the receipt of a marketing
assistance loan under subsection (a), the producer shall comply
with applicable conservation requirements under subtitle B of
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.) and applicable wetland protection requirements under
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
(a) 2008 Crop Year.--For purposes of the 2008 crop year,
the loan rate for a marketing assistance loan under section
1201 for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton,
$0.52 per pound.
(7) In the case of extra long staple cotton,
$0.7977 per pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 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, $6.22 per
hundredweight.
(13) In the case of lentils, $11.72 per
hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of graded wool, $1.00 per pound.
(16) In the case of nongraded wool, $0.40 per
pound.
(17) In the case of mohair, $4.20 per pound.
(18) In the case of honey, $0.60 per pound.
(b) 2009 Crop Year.--Except as provided in section 1105,
for purposes of the 2009 crop year, the loan rate for a
marketing assistance loan under section 1201 for a loan
commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton,
$0.52 per pound.
(7) In the case of extra long staple cotton,
$0.7977 per pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per
hundredweight for each of the following kinds of
oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the
Secretary.
(12) In the case of dry peas, $5.40 per
hundredweight.
(13) In the case of lentils, $11.28 per
hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.00 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, $0.60 per pound.
(c) 2010 Through 2012 Crop Years.--Except as provided in
section 1105, for purposes of each of the 2010 through 2012
crop years, the loan rate for a marketing assistance loan under
section 1201 for a loan commodity shall be equal to the
following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton,
$0.52 per pound.
(7) In the case of extra long staple cotton,
$0.7977 per pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per
hundredweight for each of the following kinds of
oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the
Secretary.
(12) In the case of dry peas, $5.40 per
hundredweight.
(13) In the case of lentils, $11.28 per
hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per
pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(d) Single County Loan Rate for Other Oilseeds.--The
Secretary shall establish a single loan rate in each county for
each kind of other oilseeds described in subsections (a)(11),
(b)(11), and (c)(11).
SEC. 1203. TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity, a
marketing assistance loan under section 1201 shall have a term
of 9 months beginning on the first day of the first month after
the month in which the loan is made.
(b) Extensions Prohibited.--The Secretary may not extend
the term of a marketing assistance loan for any loan commodity.
SEC. 1204. REPAYMENT OF LOANS.
(a) General Rule.--The Secretary shall permit the producers
on a farm to repay a marketing assistance loan under section
1201 for a loan commodity (other than upland cotton, long grain
rice, medium grain rice, extra long staple cotton, and
confectionery and each other kind of sunflower seed (other than
oil sunflower seed)) at a rate that is the lesser of--
(1) the loan rate established for the commodity
under section 1202, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283));
(2) a rate (as determined by the Secretary) that--
(A) is calculated based on average market
prices for the loan commodity during the
preceding 30-day period; and
(B) will minimize discrepancies in
marketing loan benefits across State boundaries
and across county boundaries; or
(3) a rate that the Secretary may develop using
alternative methods for calculating a repayment rate
for a loan commodity that the Secretary determines
will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodity by the Federal Government;
(C) minimize the cost incurred by the
Federal Government in storing the commodity;
(D) allow the commodity produced in the
United States to be marketed freely and
competitively, both domestically and
internationally; and
(E) minimize discrepancies in marketing
loan benefits across State boundaries and
across county boundaries.
(b) Repayment Rates for Upland Cotton, Long Grain Rice, and
Medium Grain Rice.--The Secretary shall permit producers to
repay a marketing assistance loan under section 1201 for upland
cotton, long grain rice, and medium grain rice at a rate that
is the lesser of--
(1) the loan rate established for the commodity
under section 1202, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the
commodity, as determined and adjusted by the Secretary
in accordance with this section.
(c) Repayment Rates for Extra Long Staple Cotton.--
Repayment of a marketing assistance loan for extra long staple
cotton shall be at the loan rate established for the commodity
under section 1202, plus interest (determined in accordance
with section 163 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market Price.--For purposes of this
section and section 1207, the Secretary shall prescribe by
regulation--
(1) a formula to determine the prevailing world
market price for each of upland cotton, long grain
rice, and medium grain rice; and
(2) a mechanism by which the Secretary shall
announce periodically those prevailing world market
prices.
(e) Adjustment of Prevailing World Market Price for Upland
Cotton, Long Grain Rice, and Medium Grain Rice.--
(1) Rice.--The prevailing world market price for
long grain rice and medium grain rice determined under
subsection (d) shall be adjusted to United States
quality and location.
(2) Cotton.--The prevailing world market price for
upland cotton determined under subsection (d)--
(A) shall be adjusted to United States
quality and location, with the adjustment to
include--
(i) a reduction equal to any United
States Premium Factor for upland cotton
of a quality higher than Middling (M)
1\3/32\-inch; and
(ii) the average costs to market
the commodity, including average
transportation costs, as determined by
the Secretary; and
(B) may be further adjusted, during the
period beginning on the date of enactment of
this Act and ending on July 31, 2013, if the
Secretary determines the adjustment is
necessary to--
(i) minimize potential loan
forfeitures;
(ii) minimize the accumulation of
stocks of upland cotton by the Federal
Government;
(iii) ensure that upland cotton
produced in the United States can be
marketed freely and competitively, both
domestically and internationally; and
(iv) ensure an appropriate
transition between current-crop and
forward-crop price quotations, except
that the Secretary may use forward-crop
price quotations prior to July 31 of a
marketing year only if--
(I) there are insufficient
current-crop price quotations;
and
(II) the forward-crop price
quotation is the lowest such
quotation available.
(3) Guidelines for additional adjustments.--In
making adjustments under this subsection, the Secretary
shall establish a mechanism for determining and
announcing the adjustments in order to avoid undue
disruption in the United States market.
(f) Repayment Rates for Confectionery and Other Kinds of
Sunflower Seeds.--The Secretary shall permit the producers on a
farm to repay a marketing assistance loan under section 1201
for confectionery and each other kind of sunflower seed (other
than oil sunflower seed) at a rate that is the lesser of--
(1) the loan rate established for the commodity
under section 1202, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil
sunflower seed.
(g) Payment of Cotton Storage Costs.--
(1) 2008 through 2011 crop years.--Effective for
each of the 2008 through 2011 crop years, the Secretary
shall provide cotton storage payments in the same
manner, and at the same rates as the Secretary provided
storage payments for the 2006 crop of cotton, except
that the rates shall be reduced by 10 percent.
(2) Subsequent crop years.--Beginning with the 2012
crop year, the Secretary shall provide cotton storage
payments in the same manner, and at the same rates as
the Secretary provided storage payments for the 2006
crop of cotton, except that the rates shall be reduced
by 20 percent.
(h) Authority to Temporarily Adjust Repayment Rates.--
(1) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment
rate otherwise applicable under this section for
marketing assistance loans under section 1201 for a
loan commodity.
(2) Duration.--Any adjustment made under paragraph
(1) in the repayment rate for marketing assistance
loans for a loan commodity shall be in effect on a
short-term and temporary basis, as determined by the
Secretary.
SEC. 1205. LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection
(d), the Secretary may make loan deficiency payments
available to producers on a farm that, although
eligible to obtain a marketing assistance loan under
section 1201 with respect to a loan commodity, agree to
forgo obtaining the loan for the commodity in return
for loan deficiency payments under this section.
(2) Unshorn pelts, hay, and silage.--
(A) Marketing assistance loans.--Subject to
subparagraph (B), nongraded wool in the form of
unshorn pelts and hay and silage derived from a
loan commodity are not eligible for a marketing
assistance loan under section 1201.
(B) Loan deficiency payment.--Effective for
the 2008 through 2012 crop years, the Secretary
may make loan deficiency payments available
under this section to producers on a farm that
produce unshorn pelts or hay and silage derived
from a loan commodity.
(b) Computation.--A loan deficiency payment for a loan
commodity or commodity referred to in subsection (a)(2) shall
be computed by multiplying--
(1) the payment rate determined under subsection
(c) for the commodity; by
(2) the quantity of the commodity produced by the
eligible producers, excluding any quantity for which
the producers obtain a marketing assistance loan under
section 1201.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity,
the payment rate shall be the amount by which--
(A) the loan rate established under section
1202 for the loan commodity; exceeds
(B) the rate at which a marketing
assistance loan for the loan commodity may be
repaid under section 1204.
(2) Unshorn pelts.--In the case of unshorn pelts,
the payment rate shall be the amount by which--
(A) the loan rate established under section
1202 for ungraded wool; exceeds
(B) the rate at which a marketing
assistance loan for ungraded wool may be repaid
under section 1204.
(3) Hay and silage.--In the case of hay or silage
derived from a loan commodity, the payment rate shall
be the amount by which--
(A) the loan rate established under section
1202 for the loan commodity from which the hay
or silage is derived; exceeds
(B) the rate at which a marketing
assistance loan for the loan commodity may be
repaid under section 1204.
(d) Exception for Extra Long Staple Cotton.--This section
shall not apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The
Secretary shall determine the amount of the loan deficiency
payment to be made under this section to the producers on a
farm with respect to a quantity of a loan commodity or
commodity referred to in subsection (a)(2) using the payment
rate in effect under subsection (c) as of the date the
producers request the payment.
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
(a) Eligible Producers.--
(1) In general.--Effective for the 2008 through
2012 crop years, in the case of a producer that would
be eligible for a loan deficiency payment under section
1205 for wheat, barley, or oats, but that elects to use
acreage planted to the wheat, barley, or oats for the
grazing of livestock, the Secretary shall make a
payment to the producer under this section if the
producer enters into an agreement with the Secretary to
forgo any other harvesting of the wheat, barley, or
oats on that acreage.
(2) Grazing of triticale acreage.--Effective for
the 2008 through 2012 crop years, with respect to a
producer on a farm that uses acreage planted to
triticale for the grazing of livestock, the Secretary
shall make a payment to the producer under this section
if the producer enters into an agreement with the
Secretary to forgo any other harvesting of triticale on
that acreage.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under
this section to a producer on a farm described in
subsection (a)(1) shall be equal to the amount
determined by multiplying--
(A) the loan deficiency payment rate
determined under section 1205(c) in effect, as
of the date of the agreement, for the county in
which the farm is located; by
(B) the payment quantity determined by
multiplying--
(i) the quantity of the grazed
acreage on the farm with respect to
which the producer elects to forgo
harvesting of wheat, barley, or oats;
and
(ii) the payment yield in effect
for the calculation of direct payments
under subtitle A with respect to that
loan commodity on the farm or, in the
case of a farm without a payment yield
for that loan commodity, an appropriate
yield established by the Secretary in a
manner consistent with section 1102 of
the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7912).
(2) Grazing of triticale acreage.--The amount of a
payment made under this section to a producer on a farm
described in subsection (a)(2) shall be equal to the
amount determined by multiplying--
(A) the loan deficiency payment rate
determined under section 1205(c) in effect for
wheat, as of the date of the agreement, for the
county in which the farm is located; by
(B) the payment quantity determined by
multiplying--
(i) the quantity of the grazed
acreage on the farm with respect to
which the producer elects to forgo
harvesting of triticale; and
(ii) the payment yield in effect
for the calculation of direct payments
under subtitle A with respect to wheat
on the farm or, in the case of a farm
without a payment yield for wheat, an
appropriate yield established by the
Secretary in a manner consistent with
section 1102 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C.
7912).
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section
shall be made at the same time and in the same manner
as loan deficiency payments are made under section
1205.
(2) Availability.--
(A) In general.--The Secretary shall
establish an availability period for the
payments authorized by this section.
(B) Certain commodities.--In the case of
wheat, barley, and oats, the availability
period shall be consistent with the
availability period for the commodity
established by the Secretary for marketing
assistance loans authorized by this subtitle.
(d) Prohibition on Crop Insurance Indemnity or Noninsured
Crop Assistance.--A 2008 through 2012 crop of wheat, barley,
oats, or triticale planted on acreage that a producer elects,
in the agreement required by subsection (a), to use for the
grazing of livestock in lieu of any other harvesting of the
crop shall not be eligible for an indemnity under a policy or
plan of insurance authorized under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under
section 196 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333).
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.
(a) Special Import Quota.--
(1) Definition of special import quota.--In this
subsection, the term ``special import quota'' means a
quantity of imports that is not subject to the over-
quota tariff rate of a tariff-rate quota.
(2) Establishment.--
(A) In general.--The President shall carry
out an import quota program during the period
beginning on the date of enactment of this Act
through July 31, 2013, as provided in this
subsection.
(B) Program requirements.--Whenever the
Secretary determines and announces that for any
consecutive 4-week period, the Friday through
Thursday average price quotation for the
lowest-priced United States growth, as quoted
for Middling (M) 1\3/32\-inch cotton, delivered
to a definable and significant international
market, as determined by the Secretary, exceeds
the prevailing world market price, there shall
immediately be in effect a special import
quota.
(3) Quantity.--The quota shall be equal to 1 week's
consumption of cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3
months for which data are available.
(4) Application.--The quota shall apply to upland
cotton purchased not later than 90 days after the date
of the Secretary's announcement under paragraph (2) and
entered into the United States not later than 180 days
after that date.
(5) Overlap.--A special quota period may be
established that overlaps any existing quota period if
required by paragraph (2), except that a special quota
period may not be established under this subsection if
a quota period has been established under subsection
(b).
(6) Preferential tariff treatment.--The quantity
under a special import quota shall be considered to be
an in-quota quantity for purposes of--
(A) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(7) Limitation.--The quantity of cotton entered
into the United States during any marketing year under
the special import quota established under this
subsection may not exceed the equivalent of 10 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the 3 months
immediately preceding the first special import quota
established in any marketing year.
(b) Limited Global Import Quota for Upland Cotton.--
(1) Definitions.--In this subsection:
(A) Supply.--The term ``supply'' means,
using the latest official data of the Bureau of
the Census, the Department of Agriculture, and
the Department of the Treasury--
(i) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(ii) production of the current
crop; and
(iii) imports to the latest date
available during the marketing year.
(B) Demand.--The term ``demand'' means--
(i) the average seasonally adjusted
annual rate of domestic mill
consumption of cotton during the most
recent 3 months for which data are
available; and
(ii) the larger of--
(I) average exports of
upland cotton during the
preceding 6 marketing years; or
(II) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(C) Limited global import quota.--The term
``limited global import quota'' means a
quantity of imports that is not subject to the
over-quota tariff rate of a tariff-rate quota.
(2) Program.--The President shall carry out an
import quota program that provides that whenever the
Secretary determines and announces that the average
price of the base quality of upland cotton, as
determined by the Secretary, in the designated spot
markets for a month exceeded 130 percent of the average
price of the quality of cotton in the markets for the
preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect
a limited global import quota subject to the following
conditions:
(A) Quantity.--The quantity of the quota
shall be equal to 21 days of domestic mill
consumption of upland cotton at the seasonally
adjusted average rate of the most recent 3
months for which data are available or as
estimated by the Secretary.
(B) Quantity if prior quota.--If a quota
has been established under this subsection
during the preceding 12 months, the quantity of
the quota next established under this
subsection shall be the smaller of 21 days of
domestic mill consumption calculated under
subparagraph (A) or the quantity required to
increase the supply to 130 percent of the
demand.
(C) Preferential tariff treatment.--The
quantity under a limited global import quota
shall be considered to be an in-quota quantity
for purposes of--
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean
Trade Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade
Act of 1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(D) Quota entry period.--When a quota is
established under this subsection, cotton may
be entered under the quota during the 90-day
period beginning on the date the quota is
established by the Secretary.
(3) No overlap.--Notwithstanding paragraph (2), a
quota period may not be established that overlaps an
existing quota period or a special quota period
established under subsection (a).
(c) Economic Adjustment Assistance to Users of Upland
Cotton.--
(1) In general.--Subject to paragraph (2), the
Secretary shall, on a monthly basis, provide economic
adjustment assistance to domestic users of upland
cotton in the form of payments for all documented use
of that upland cotton during the previous monthly
period regardless of the origin of the upland cotton.
(2) Value of assistance.--
(A) Beginning period.--During the period
beginning on August 1, 2008, and ending on July
31, 2012, the value of the assistance provided
under paragraph (1) shall be 4 cents per pound.
(B) Subsequent period.--Effective beginning
on August 1, 2012, the value of the assistance
provided under paragraph (1) shall be 3 cents
per pound.
(3) Allowable purposes.--Economic adjustment
assistance under this subsection shall be made
available only to domestic users of upland cotton that
certify that the assistance shall be used only to
acquire, construct, install, modernize, develop,
convert, or expand land, plant, buildings, equipment,
facilities, or machinery.
(4) Review or audit.--The Secretary may conduct
such review or audit of the records of a domestic user
under this subsection as the Secretary determines
necessary to carry out this subsection.
(5) Improper use of assistance.--If the Secretary
determines, after a review or audit of the records of
the domestic user, that economic adjustment assistance
under this subsection was not used for the purposes
specified in paragraph (3), the domestic user shall
be--
(A) liable to repay the assistance to the
Secretary, plus interest, as determined by the
Secretary; and
(B) ineligible to receive assistance under
this subsection for a period of 1 year
following the determination of the Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other
provision of law, during the period beginning on the date of
enactment of this Act through July 31, 2013, the Secretary
shall carry out a program--
(1) to maintain and expand the domestic use of
extra long staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton
produced in the United States remains competitive in
world markets.
(b) Payments Under Program; Trigger.--Under the program,
the Secretary shall make payments available under this section
whenever--
(1) for a consecutive 4-week period, the world
market price for the lowest priced competing growth of
extra long staple cotton (adjusted to United States
quality and location and for other factors affecting
the competitiveness of such cotton), as determined by
the Secretary, is below the prevailing United States
price for a competing growth of extra long staple
cotton; and
(2) the lowest priced competing growth of extra
long staple cotton (adjusted to United States quality
and location and for other factors affecting the
competitiveness of such cotton), as determined by the
Secretary, is less than 134 percent of the loan rate
for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long
staple cotton produced in the United States and exporters of
extra long staple cotton produced in the United States that
enter into an agreement with the Commodity Credit Corporation
to participate in the program under this section.
(d) Payment Amount.--Payments under this section shall be
based on the amount of the difference in the prices referred to
in subsection (b)(1) during the fourth week of the consecutive
4-week period multiplied by the amount of documented purchases
by domestic users and sales for export by exporters made in the
week following such a consecutive 4-week period.
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS
AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Definition of high moisture state.--In this
subsection, the term ``high moisture state'' means corn
or grain sorghum having a moisture content in excess of
Commodity Credit Corporation standards for marketing
assistance loans made by the Secretary under section
1201.
(2) Recourse loans available.--For each of the 2008
through 2012 crops of corn and grain sorghum, the
Secretary shall make available recourse loans, as
determined by the Secretary, to producers on a farm
that--
(A) normally harvest all or a portion of
their crop of corn or grain sorghum in a high
moisture state;
(B) present--
(i) certified scale tickets from an
inspected, certified commercial scale,
including a licensed warehouse,
feedlot, feed mill, distillery, or
other similar entity approved by the
Secretary, pursuant to regulations
issued by the Secretary; or
(ii) field or other physical
measurements of the standing or stored
crop in regions of the United States,
as determined by the Secretary, that do
not have certified commercial scales
from which certified scale tickets may
be obtained within reasonable proximity
of harvest operation;
(C) certify that they were the owners of
the feed grain at the time of delivery to, and
that the quantity to be placed under loan under
this subsection was in fact harvested on the
farm and delivered to, a feedlot, feed mill, or
commercial or on-farm high-moisture storage
facility, or to a facility maintained by the
users of corn and grain sorghum in a high
moisture state; and
(D) comply with deadlines established by
the Secretary for harvesting the corn or grain
sorghum and submit applications for loans under
this subsection within deadlines established by
the Secretary.
(3) Eligibility of acquired feed grains.--A loan
under this subsection shall be made on a quantity of
corn or grain sorghum of the same crop acquired by the
producer equivalent to a quantity determined by
multiplying--
(A) the acreage of the corn or grain
sorghum in a high moisture state harvested on
the producer's farm; by
(B) the lower of the farm program payment
yield used to make counter-cyclical payments
under subtitle A or the actual yield on a
field, as determined by the Secretary, that is
similar to the field from which the corn or
grain sorghum was obtained.
(b) Recourse Loans Available for Seed Cotton.--For each of
the 2008 through 2012 crops of upland cotton and extra long
staple cotton, the Secretary shall make available recourse seed
cotton loans, as determined by the Secretary, on any
production.
(c) Repayment Rates.--Repayment of a recourse loan made
under this section shall be at the loan rate established for
the commodity by the Secretary, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
SEC. 1210. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--Subject to subsection (e), the
Secretary may make appropriate adjustments in the loan rates
for any loan commodity (other than cotton) for differences in
grade, type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection
(a) shall, to the maximum extent practicable, be made in such a
manner that the average loan level for the commodity will, on
the basis of the anticipated incidence of the factors, be equal
to the level of support determined in accordance with this
subtitle and subtitles B through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan
rates for a crop for producers in individual counties
in a manner that results in the lowest loan rate being
95 percent of the national average loan rate, if those
loan rates do not result in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection
shall not result in an increase in the national average
loan rate for any year.
(d) Adjustment in Loan Rate for Cotton.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan rate for cotton for differences
in quality factors.
(2) Revisions to quality adjustments for upland
cotton.--
(A) In general.--Not later than 180 days
after the date of enactment of this Act, the
Secretary shall implement revisions in the
administration of the marketing assistance loan
program for upland cotton to more accurately
and efficiently reflect market values for
upland cotton.
(B) Mandatory revisions.--Revisions under
subparagraph (A) shall include--
(i) the elimination of warehouse
location differentials;
(ii) the establishment of
differentials for the various quality
factors and staple lengths of cotton
based on a 3-year, weighted moving
average of the weighted designated spot
market regions, as determined by
regional production;
(iii) the elimination of any
artificial split in the premium or
discount between upland cotton with a
32 or 33 staple length due to
micronaire; and
(iv) a mechanism to ensure that no
premium or discount is established that
exceeds the premium or discount
associated with a leaf grade that is 1
better than the applicable color grade.
(C) Discretionary revisions.--Revisions
under subparagraph (A) may include--
(i) the use of non-spot market
price data, in addition to spot market
price data, that would enhance the
accuracy of the price information used
in determining quality adjustments
under this subsection;
(ii) adjustments in the premiums or
discounts associated with upland cotton
with a staple length of 33 or above due
to micronaire with the goal of
eliminating any unnecessary artificial
splits in the calculations of the
premiums or discounts; and
(iii) such other adjustments as the
Secretary determines appropriate, after
consultations conducted in accordance
with paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--In making
adjustments to the loan rate for cotton
(including any review of the adjustments) as
provided in this subsection, the Secretary
shall consult with representatives of the
United States cotton industry.
(B) Inapplicability of federal advisory
committee act.--The Federal Advisory Committee
Act (5 U.S.C. App.) shall not apply to
consultations under this subsection.
(4) Review of adjustments.--The Secretary may
review the operation of the upland cotton quality
adjustments implemented pursuant to this subsection and
may make further revisions to the administration of the
loan program for upland cotton, by--
(A) revoking or revising any actions taken
under paragraph (2)(B); or
(B) revoking or revising any actions taken
or authorized to be taken under paragraph
(2)(C).
(e) Rice.--The Secretary shall not make adjustments in the
loan rates for long grain rice and medium grain rice, except
for differences in grade and quality (including milling
yields).
Subtitle C--Peanuts
SEC. 1301. DEFINITIONS.
In this subtitle:
(1) Base acres for peanuts.--
(A) In general.--The term ``base acres for
peanuts'' means the number of acres assigned to
a farm pursuant to section 1302 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 7952), as in effect on September 30,
2007, subject to any adjustment under section
1302 of this Act.
(B) Covered commodities.--The term ``base
acres'', with respect to a covered commodity,
has the meaning given the term in section 1101.
(2) Counter-cyclical payment.--The term ``counter-
cyclical payment'' means a payment made to producers on
a farm under section 1304.
(3) Direct payment.--The term ``direct payment''
means a direct payment made to producers on a farm
under section 1303.
(4) Effective price.--The term ``effective price''
means the price calculated by the Secretary under
section 1304 for peanuts to determine whether counter-
cyclical payments are required to be made under that
section for a crop year.
(5) Payment acres.--The term ``payment acres''
means, in the case of direct payments and counter-
cyclical payments--
(A) except as provided in subparagraph (B),
85 percent of the base acres of peanuts on a
farm on which direct payments or counter-
cyclical payments are made; and
(B) in the case of direct payments for each
of the 2009 through 2011 crop years, 83.3
percent of the base acres for peanuts on a farm
on which direct payments are made.
(6) Payment yield.--The term ``payment yield''
means the yield established for direct payments and the
yield established for counter-cyclical payments under
section 1302 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7952), as in effect on September
30, 2007, for a farm for peanuts.
(7) Producer.--
(A) In general.--The term ``producer''
means an owner, operator, landlord, tenant, or
sharecropper that shares in the risk of
producing a crop on a farm and is entitled to
share in the crop available for marketing from
the farm, or would have shared had the crop
been produced.
(B) Hybrid seed.--In determining whether a
grower of hybrid seed is a producer, the
Secretary shall--
(i) not take into consideration the
existence of a hybrid seed contract;
and
(ii) ensure that program
requirements do not adversely affect
the ability of the grower to receive a
payment under this subtitle.
(8) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of
the United States.
(9) Target price.--The term ``target price'' means
the price per ton of peanuts used to determine the
payment rate for counter-cyclical payments.
(10) United states.--The term ``United States'',
when used in a geographical sense, means all of the
States.
SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.
(a) Adjustment of Base Acreage for Peanuts.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for
peanuts for a farm whenever any of the following
circumstances occur:
(A) A conservation reserve contract entered
into under section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) with respect to
the farm expires or is voluntarily terminated,
or was terminated or expired during the period
beginning on October 1, 2007, and ending on the
date of enactment of this Act.
(B) Cropland is released from coverage
under a conservation reserve contract by the
Secretary, or was released during the period
beginning on October 1, 2007, and ending on the
date of enactment of this Act.
(C) The producer has eligible pulse crop
acreage, which shall be determined in the same
manner as eligible oilseed acreage under
section 1101(a)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(D) The producer has eligible oilseed
acreage as the result of the Secretary
designating additional oilseeds, which shall be
determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the
Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7911(a)(2)).
(2) Special conservation reserve acreage payment
rules.--For the crop year in which a base acres for
peanuts adjustment under subparagraph (A) or (B) of
paragraph (1) is first made, the owner of the farm
shall elect to receive either direct payments and
counter-cyclical payments with respect to the acreage
added to the farm under this subsection or a prorated
payment under the conservation reserve contract, but
not both.
(b) Prevention of Excess Base Acres for Peanuts.--
(1) Required reduction.--If the sum of the base
acres for peanuts for a farm, together with the acreage
described in paragraph (2), exceeds the actual cropland
acreage of the farm, the Secretary shall reduce the
base acres for peanuts for the farm or the base acres
for 1 or more covered commodities for the farm so that
the sum of the base acres for peanuts and acreage
described in paragraph (2) does not exceed the actual
cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1),
the Secretary shall include the following:
(A) Any base acres for the farm for a
covered commodity.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands
reserve program under chapter 1 of subtitle D
of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled
in a Federal conservation program for which
payments are made in exchange for not producing
an agricultural commodity on the acreage.
(D) Any eligible pulse crop acreage, which
shall be determined in the same manner as
eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional
oilseeds, any eligible oilseed acreage, which
shall be determined in the same manner as
eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give
the owner of the farm the opportunity to select the
base acres for peanuts or the base acres for covered
commodities against which the reduction required by
paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In
applying paragraph (1), the Secretary shall make an
exception in the case of double cropping, as determined
by the Secretary.
(5) Coordinated application of requirements.--The
Secretary shall take into account section 1101(b) when
applying the requirements of this subsection.
(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may
reduce, at any time, the base acres for peanuts
for the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in
a manner prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall
proportionately reduce base acres on a farm for
peanuts for land that has been subdivided and
developed for multiple residential units or
other nonfarming uses if the size of the tracts
and the density of the subdivision is such that
the land is unlikely to return to the previous
agricultural use, unless the producers on the
farm demonstrate that the land--
(i) remains devoted to commercial
agricultural production; or
(ii) is likely to be returned to
the previous agricultural use.
(B) Requirement.--The Secretary shall
establish procedures to identify land described
in subparagraph (A).
(3) Review and report.--Each year, to ensure, to
the maximum extent practicable, that payments are
received only by producers, the Secretary shall submit
to Congress a report that describes the results of the
actions taken under paragraph (2).
(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision
of this title, a producer on a farm may not receive
direct payments, counter-cyclical payments, or average
crop revenue election payments if the sum of the base
acres of the farm is 10 acres or less, as determined by
the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a
farm owned by--
(A) a socially disadvantaged farmer or
rancher (as defined in section 355(e) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher,
as defined by the Secretary.
(3) Data collection and publication.--The Secretary
shall--
(A) collect and publish segregated data and
survey information about the farm profiles,
utilization of land, and crop production; and
(B) perform an evaluation on the supply and
price of fruits and vegetables based on the
effects of suspension of base acres under this
section.
SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.
(a) Payment Required.--For each of the 2008 through 2012
crop years for peanuts, the Secretary shall make direct
payments to the producers on a farm for which a payment yield
and base acres for peanuts are established.
(b) Payment Rate.--Except as provided in section 1105, the
payment rate used to make direct payments with respect to
peanuts for a crop year shall be equal to $36 per ton.
(c) Payment Amount.--The amount of the direct payment to be
paid to the producers on a farm for peanuts for a crop year
shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(d) Time for Payment.--
(1) In general.--Except as provided in paragraph
(2), in the case of each of the 2008 through 2012 crop
years, the Secretary may not make direct payments under
this section before October 1 of the calendar year in
which the crop is harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of
the producers on a farm, the Secretary
shall pay in advance up to 22 percent
of the direct payment for peanuts for
any of the 2008 through 2011 crop years
to the producers on a farm.
(ii) 2008 crop year.--If the
producers on a farm elect to receive
advance direct payments under clause
(i) for peanuts for the 2008 crop year,
as soon as practicable after the
election, the Secretary shall make the
advance direct payment to the producers
on the farm.
(B) Month.--
(i) Selection.--Subject to clauses
(ii) and (iii), the producers on a farm
shall select the month during which the
advance payment for a crop year will be
made.
(ii) Options.--The month selected
may be any month during the period--
(I) beginning on December 1
of the calendar year before the
calendar year in which the crop
of peanuts is harvested; and
(II) ending during the
month within which the direct
payment would otherwise be
made.
(iii) Change.--The producers on a
farm may change the selected month for
a subsequent advance payment by
providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer
on a farm that receives an advance direct payment for a
crop year ceases to be a producer on that farm, or the
extent to which the producer shares in the risk of
producing a crop changes, before the date the remainder
of the direct payment is made, the producer shall be
responsible for repaying the Secretary the applicable
amount of the advance payment, as determined by the
Secretary.
SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.
(a) Payment Required.--Except as provided in section 1105,
for each of the 2008 through 2012 crop years for peanuts, the
Secretary shall make counter-cyclical payments to producers on
farms for which payment yields and base acres for peanuts are
established if the Secretary determines that the effective
price for peanuts is less than the target price for peanuts.
(b) Effective Price.--For purposes of subsection (a), the
effective price for peanuts is equal to the sum of the
following:
(1) The higher of the following:
(A) The national average market price for
peanuts received by producers during the 12-
month marketing year for peanuts, as determined
by the Secretary.
(B) The national average loan rate for a
marketing assistance loan for peanuts in effect
for the applicable period under this subtitle.
(2) The payment rate in effect for peanuts under
section 1303 for the purpose of making direct payments.
(c) Target Price.--For purposes of subsection (a), the
target price for peanuts shall be equal to $495 per ton.
(d) Payment Rate.--The payment rate used to make counter-
cyclical payments for a crop year shall be equal to the
difference between--
(1) the target price for peanuts; and
(2) the effective price determined under subsection
(b) for peanuts.
(e) Payment Amount.--If counter-cyclical payments are
required to be paid for any of the 2008 through 2012 crops of
peanuts, the amount of the counter-cyclical payment to be paid
to the producers on a farm for that crop year shall be equal to
the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph
(2), if the Secretary determines under subsection (a)
that counter-cyclical payments are required to be made
under this section for a crop of peanuts, beginning
October 1, or as soon as practicable after the end of
the marketing year, the Secretary shall make the
counter-cyclical payments for the crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the
12-month marketing year, the Secretary
estimates that counter-cyclical payments will
be required under this section for a crop year,
the Secretary shall give producers on a farm
the option to receive partial payments of the
counter-cyclical payment projected to be made
for the crop.
(B) Election.--
(i) In general.--The Secretary
shall allow producers on a farm to make
an election to receive partial payments
under subparagraph (A) at any time but
not later than 60 days prior to the end
of the marketing year for the crop.
(ii) Date of issuance.--The
Secretary shall issue the partial
payment after the date of an
announcement by the Secretary but not
later than 30 days prior to the end of
the marketing year.
(3) Time for partial payments.--When the Secretary
makes partial payments for any of the 2008 through 2010
crop years--
(A) the first partial payment shall be made
after completion of the first 180 days of the
marketing year for that crop; and
(B) the final partial payment shall be made
beginning October 1, or as soon as practicable
thereafter, after the end of the applicable
marketing year for that crop.
(4) Amount of partial payments.--
(A) First partial payment.--For each of the
2008 through 2010 crop years, the first partial
payment under paragraph (3) to the producers on
a farm may not exceed 40 percent of the
projected counter-cyclical payment for the crop
year, as determined by the Secretary.
(B) Final payment.--The final payment for a
crop year shall be equal to the difference
between--
(i) the actual counter-cyclical
payment to be made to the producers for
that crop year; and
(ii) the amount of the partial
payment made to the producers under
subparagraph (A).
(5) Repayment.--The producers on a farm that
receive a partial payment under this subsection for a
crop year shall repay to the Secretary the amount, if
any, by which the total of the partial payments exceed
the actual counter-cyclical payment to be made for that
crop year.
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF
PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm
may receive direct payments or counter-cyclical
payments under this subtitle, or average crop revenue
election payments under section 1105, with respect to
the farm, the producers shall agree, during the crop
year for which the payments are made and in exchange
for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of
the Food Security Act of 1985 (16 U.S.C. 3811
et seq.);
(B) to comply with applicable wetland
protection requirements under subtitle C of
title XII of that Act (16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1306;
(D) to use the land on the farm, in a
quantity equal to the attributable base acres
for peanuts and any base acres for the farm
under subtitle A, for an agricultural or
conserving use, and not for a nonagricultural
commercial, industrial, or residential use, as
determined by the Secretary; and
(E) to effectively control noxious weeds
and otherwise maintain the land in accordance
with sound agricultural practices, as
determined by the Secretary, if the
agricultural or conserving use involves the
noncultivation of any portion of the land
referred to in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules
as the Secretary considers necessary to ensure producer
compliance with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee
or owner, the Secretary may modify the requirements of
this subsection if the modifications are consistent
with the objectives of this subsection, as determined
by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in
paragraph (2), a transfer of (or change in) the
interest of the producers on a farm in the base
acres for peanuts for which direct payments or
counter-cyclical payments are made, or on which
average crop revenue election payments are
based, shall result in the termination of the
direct payments, counter-cyclical payments, or
average crop revenue election payments to the
extent the payments are made or based on the
base acres, unless the transferee or owner of
the acreage agrees to assume all obligations
under subsection (a).
(B) Effective date.--The termination shall
take effect on the date determined by the
Secretary.
(2) Exception.--If a producer entitled to a direct
payment, counter-cyclical payment, or average crop
revenue election payment dies, becomes incompetent, or
is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with
rules issued by the Secretary.
(c) Acreage Reports.--
(1) In general.--As a condition on the receipt of
any benefits under this subtitle, the Secretary shall
require producers on a farm to submit to the Secretary
annual acreage reports with respect to all cropland on
the farm.
(2) Penalties.--No penalty with respect to benefits
under this subtitle shall be assessed against the
producers on a farm for an inaccurate acreage report
unless the producers on the farm knowingly and
willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for
the sharing of direct payments, counter-cyclical payments, or
average crop revenue election payments under section 1105 among
the producers on a farm on a fair and equitable basis.
SEC. 1306. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any
commodity or crop may be planted on the base acres for peanuts
on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an
agricultural commodity specified in paragraph (3) shall
be prohibited on base acres for peanuts unless the
commodity, if planted, is destroyed before harvest.
(2) Treatment of trees and other perennials.--The
planting of an agricultural commodity specified in
paragraph (3) that is produced on a tree or other
perennial plant shall be prohibited on base acres for
peanuts.
(3) Covered agricultural commodities.--Paragraphs
(1) and (2) apply to the following agricultural
commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and
pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b)
shall not limit the planting of an agricultural commodity
specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of
double-cropping of peanuts with agricultural
commodities specified in subsection (b)(3), as
determined by the Secretary, in which case the double-
cropping shall be permitted;
(2) on a farm that the Secretary determines has a
history of planting agricultural commodities specified
in subsection (b)(3) on the base acres for peanuts,
except that direct payments and counter-cyclical
payments shall be reduced by an acre for each acre
planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a
specific agricultural commodity specified in subsection
(b)(3), except that--
(A) the quantity planted may not exceed the
average annual planting history of such
agricultural commodity by the producers on the
farm in the 1991 through 1995 or 1998 through
2001 crop years (excluding any crop year in
which no plantings were made), as determined by
the Secretary; and
(B) direct payments and counter-cyclical
payments shall be reduced by an acre for each
acre planted to such agricultural commodity.
SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR
PEANUTS.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2008 through
2012 crops of peanuts, the Secretary shall make
available to producers on a farm nonrecourse marketing
assistance loans for peanuts produced on the farm.
(2) Terms and conditions.--The loans shall be made
under terms and conditions that are prescribed by the
Secretary and at the loan rate established under
subsection (b).
(3) Eligible production.--The producers on a farm
shall be eligible for a marketing assistance loan under
this subsection for any quantity of peanuts produced on
the farm.
(4) Options for obtaining loan.--A marketing
assistance loan under this subsection, and loan
deficiency payments under subsection (e), may be
obtained at the option of the producers on a farm
through--
(A) a designated marketing association or
marketing cooperative of producers that is
approved by the Secretary; or
(B) the Farm Service Agency.
(5) Storage of loan peanuts.--As a condition on the
Secretary's approval of an individual or entity to
provide storage for peanuts for which a marketing
assistance loan is made under this section, the
individual or entity shall agree--
(A) to provide such storage on a
nondiscriminatory basis; and
(B) to comply with such additional
requirements as the Secretary considers
appropriate to accomplish the purposes of this
section and promote fairness in the
administration of the benefits of this section.
(6) Storage, handling, and associated costs.--
(A) In general.--Beginning with the 2008
crop of peanuts, to ensure proper storage of
peanuts for which a loan is made under this
section, the Secretary shall pay handling and
other associated costs (other than storage
costs) incurred at the time at which the
peanuts are placed under loan, as determined by
the Secretary.
(B) Redemption and forfeiture.--The
Secretary shall--
(i) require the repayment of
handling and other associated costs
paid under subparagraph (A) for all
peanuts pledged as collateral for a
loan that is redeemed under this
section; and
(ii) pay storage, handling, and
other associated costs for all peanuts
pledged as collateral that are
forfeited under this section.
(7) Marketing.--A marketing association or
cooperative may market peanuts for which a loan is made
under this section in any manner that conforms to
consumer needs, including the separation of peanuts by
type and quality.
(b) Loan Rate.--Except as provided in section 1105, the
loan rate for a marketing assistance loan for peanuts under
subsection (a) shall be equal to $355 per ton.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for
peanuts under subsection (a) shall have a term of 9
months beginning on the first day of the first month
after the month in which the loan is made.
(2) Extensions prohibited.--The Secretary may not
extend the term of a marketing assistance loan for
peanuts under subsection (a).
(d) Repayment Rate.--
(1) In general.--The Secretary shall permit
producers on a farm to repay a marketing assistance
loan for peanuts under subsection (a) at a rate that is
the lesser of--
(A) the loan rate established for peanuts
under subsection (b), plus interest (determined
in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7283)); or
(B) a rate that the Secretary determines
will--
(i) minimize potential loan
forfeitures;
(ii) minimize the accumulation of
stocks of peanuts by the Federal
Government;
(iii) minimize the cost incurred by
the Federal Government in storing
peanuts; and
(iv) allow peanuts produced in the
United States to be marketed freely and
competitively, both domestically and
internationally.
(2) Authority to temporarily adjust repayment
rates.--
(A) Adjustment authority.--In the event of
a severe disruption to marketing,
transportation, or related infrastructure, the
Secretary may modify the repayment rate
otherwise applicable under this subsection for
marketing assistance loans for peanuts under
subsection (a).
(B) Duration.--An adjustment made under
subparagraph (A) in the repayment rate for
marketing assistance loans for peanuts shall be
in effect on a short-term and temporary basis,
as determined by the Secretary.
(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan
deficiency payments available to producers on a farm
that, although eligible to obtain a marketing
assistance loan for peanuts under subsection (a), agree
to forgo obtaining the loan for the peanuts in return
for loan deficiency payments under this subsection.
(2) Computation.--A loan deficiency payment under
this subsection shall be computed by multiplying--
(A) the payment rate determined under
paragraph (3) for peanuts; by
(B) the quantity of the peanuts produced by
the producers, excluding any quantity for which
the producers obtain a marketing assistance
loan under subsection (a).
(3) Payment rate.--For purposes of this subsection,
the payment rate shall be the amount by which--
(A) the loan rate established under
subsection (b); exceeds
(B) the rate at which a loan may be repaid
under subsection (d).
(4) Effective date for payment rate
determination.--The Secretary shall determine the
amount of the loan deficiency payment to be made under
this subsection to the producers on a farm with respect
to a quantity of peanuts using the payment rate in
effect under paragraph (3) as of the date the producers
request the payment.
(f) Compliance With Conservation and Wetlands
Requirements.--As a condition of the receipt of a marketing
assistance loan under subsection (a), the producer shall comply
with applicable conservation requirements under subtitle B of
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.) and applicable wetland protection requirements under
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
(g) Reimbursable Agreements and Payment of Administrative
Expenses.--The Secretary may implement any reimbursable
agreements or provide for the payment of administrative
expenses under this subtitle only in a manner that is
consistent with such activities in regard to other commodities.
SEC. 1308. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--The Secretary may make
appropriate adjustments in the loan rates for peanuts for
differences in grade, type, quality, location, and other
factors.
(b) Manner of Adjustment.--The adjustments under subsection
(a) shall, to the maximum extent practicable, be made in such a
manner that the average loan level for peanuts will, on the
basis of the anticipated incidence of the factors, be equal to
the level of support determined in accordance with this
subtitle and subtitles B, D, and E.
(c) Adjustment on County Basis.--
(1) In general.--Subject to paragraph (2), the
Secretary may establish loan rates for a crop of
peanuts for producers in individual counties in a
manner that results in the lowest loan rate being 95
percent of the national average loan rate, if those
loan rates do not result in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection
shall not result in an increase in the national average
loan rate for any year.
Subtitle D--Sugar
SEC. 1401. SUGAR PROGRAM.
(a) In General.--Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended
to read as follows:
``SEC. 156. SUGAR PROGRAM.
``(a) Sugarcane.--The Secretary shall make loans available
to processors of domestically grown sugarcane at a rate equal
to--
``(1) 18.00 cents per pound for raw cane sugar for
the 2008 crop year;
``(2) 18.25 cents per pound for raw cane sugar for
the 2009 crop year;
``(3) 18.50 cents per pound for raw cane sugar for
the 2010 crop year;
``(4) 18.75 cents per pound for raw cane sugar for
the 2011 crop year; and
``(5) 18.75 cents per pound for raw cane sugar for
the 2012 crop year.
``(b) Sugar Beets.--The Secretary shall make loans
available to processors of domestically grown sugar beets at a
rate equal to--
``(1) 22.9 cents per pound for refined beet sugar
for the 2008 crop year; and
``(2) a rate that is equal to 128.5 percent of the
loan rate per pound of raw cane sugar for the
applicable crop year under subsection (a) for each of
the 2009 through 2012 crop years.
``(c) Term of Loans.--
``(1) In general.--A loan under this section during
any fiscal year shall be made available not earlier
than the beginning of the fiscal year and shall mature
at the earlier of--
``(A) the end of the 9-month period
beginning on the first day of the first month
after the month in which the loan is made; or
``(B) the end of the fiscal year in which
the loan is made.
``(2) Supplemental loans.--In the case of a loan
made under this section in the last 3 months of a
fiscal year, the processor may repledge the sugar as
collateral for a second loan in the subsequent fiscal
year, except that the second loan shall--
``(A) be made at the loan rate in effect at
the time the first loan was made; and
``(B) mature in 9 months less the quantity
of time that the first loan was in effect.
``(d) Loan Type; Processor Assurances.--
``(1) Nonrecourse loans.--The Secretary shall carry
out this section through the use of nonrecourse loans.
``(2) Processor assurances.--
``(A) In general.--The Secretary shall
obtain from each processor that receives a loan
under this section such assurances as the
Secretary considers adequate to ensure that the
processor will provide payments to producers
that are proportional to the value of the loan
received by the processor for the sugar beets
and sugarcane delivered by producers to the
processor.
``(B) Minimum payments.--
``(i) In general.--Subject to
clause (ii), the Secretary may
establish appropriate minimum payments
for purposes of this paragraph.
``(ii) Limitation.--In the case of
sugar beets, the minimum payment
established under clause (i) shall not
exceed the rate of payment provided for
under the applicable contract between a
sugar beet producer and a sugar beet
processor.
``(3) Administration.--The Secretary may not impose
or enforce any prenotification requirement, or similar
administrative requirement not otherwise in effect on
May 13, 2002, that has the effect of preventing a
processor from electing to forfeit the loan collateral
(of an acceptable grade and quality) on the maturity of
the loan.
``(e) Loans for In-Process Sugar.--
``(1) Definition of in-process sugars and syrups.--
In this subsection, the term `in-process sugars and
syrups' does not include raw sugar, liquid sugar,
invert sugar, invert syrup, or other finished product
that is otherwise eligible for a loan under subsection
(a) or (b).
``(2) Availability.--The Secretary shall make
nonrecourse loans available to processors of a crop of
domestically grown sugarcane and sugar beets for in-
process sugars and syrups derived from the crop.
``(3) Loan rate.--The loan rate shall be equal to
80 percent of the loan rate applicable to raw cane
sugar or refined beet sugar, as determined by the
Secretary on the basis of the source material for the
in-process sugars and syrups.
``(4) Further processing on forfeiture.--
``(A) In general.--As a condition of the
forfeiture of in-process sugars and syrups
serving as collateral for a loan under
paragraph (2), the processor shall, within such
reasonable time period as the Secretary may
prescribe and at no cost to the Commodity
Credit Corporation, convert the in-process
sugars and syrups into raw cane sugar or
refined beet sugar of acceptable grade and
quality for sugars eligible for loans under
subsection (a) or (b).
``(B) Transfer to corporation.--Once the
in-process sugars and syrups are fully
processed into raw cane sugar or refined beet
sugar, the processor shall transfer the sugar
to the Commodity Credit Corporation.
``(C) Payment to processor.--On transfer of
the sugar, the Secretary shall make a payment
to the processor in an amount equal to the
amount obtained by multiplying--
``(i) the difference between--
``(I) the loan rate for raw
cane sugar or refined beet
sugar, as appropriate; and
``(II) the loan rate the
processor received under
paragraph (3); by
``(ii) the quantity of sugar
transferred to the Secretary.
``(5) Loan conversion.--If the processor does not
forfeit the collateral as described in paragraph (4),
but instead further processes the in-process sugars and
syrups into raw cane sugar or refined beet sugar and
repays the loan on the in-process sugars and syrups,
the processor may obtain a loan under subsection (a) or
(b) for the raw cane sugar or refined beet sugar, as
appropriate.
``(6) Term of loan.--The term of a loan made under
this subsection for a quantity of in-process sugars and
syrups, when combined with the term of a loan made with
respect to the raw cane sugar or refined beet sugar
derived from the in-process sugars and syrups, may not
exceed 9 months, consistent with subsection (c).
``(f) Avoiding Forfeitures; Corporation Inventory
Disposition.--
``(1) In general.--Subject to subsection (d)(3), to
the maximum extent practicable, the Secretary shall
operate the program established under this section at
no cost to the Federal Government by avoiding the
forfeiture of sugar to the Commodity Credit
Corporation.
``(2) Inventory disposition.--
``(A) In general.--To carry out paragraph
(1), the Commodity Credit Corporation may
accept bids to obtain raw cane sugar or refined
beet sugar in the inventory of the Commodity
Credit Corporation from (or otherwise make
available such commodities, on appropriate
terms and conditions, to) processors of
sugarcane and processors of sugar beets (acting
in conjunction with the producers of the
sugarcane or sugar beets processed by the
processors) in return for the reduction of
production of raw cane sugar or refined beet
sugar, as appropriate.
``(B) Bioenergy feedstock.--If a reduction
in the quantity of production accepted under
subparagraph (A) involves sugar beets or
sugarcane that has already been planted, the
sugar beets or sugarcane so planted may not be
used for any commercial purpose other than as a
bioenergy feedstock.
``(C) Additional authority.--The authority
provided under this paragraph is in addition to
any authority of the Commodity Credit
Corporation under any other law.
``(g) Information Reporting.--
``(1) Duty of processors and refiners to report.--A
sugarcane processor, cane sugar refiner, and sugar beet
processor shall furnish the Secretary, on a monthly
basis, such information as the Secretary may require to
administer sugar programs, including the quantity of
purchases of sugarcane, sugar beets, and sugar, and
production, importation, distribution, and stock levels
of sugar.
``(2) Duty of producers to report.--
``(A) Proportionate share states.--As a
condition of a loan made to a processor for the
benefit of a producer, the Secretary shall
require each producer of sugarcane located in a
State (other than the Commonwealth of Puerto
Rico) in which there are in excess of 250
producers of sugarcane to report, in the manner
prescribed by the Secretary, the sugarcane
yields and acres planted to sugarcane of the
producer.
``(B) Other states.--The Secretary may
require each producer of sugarcane or sugar
beets not covered by subparagraph (A) to
report, in a manner prescribed by the
Secretary, the yields of, and acres planted to,
sugarcane or sugar beets, respectively, of the
producer.
``(3) Duty of importers to report.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall require
an importer of sugars, syrups, or molasses to
be used for human consumption or to be used for
the extraction of sugar for human consumption
to report, in the manner prescribed by the
Secretary, the quantities of the products
imported by the importer and the sugar content
or equivalent of the products.
``(B) Tariff-rate quotas.--Subparagraph (A)
shall not apply to sugars, syrups, or molasses
that are within the quantities of tariff-rate
quotas that are subject to the lower rate of
duties.
``(4) Collection of information on mexico.--
``(A) Collection.--The Secretary shall
collect--
``(i) information on the
production, consumption, stocks, and
trade of sugar in Mexico, including
United States exports of sugar to
Mexico; and
``(ii) publicly available
information on Mexican production,
consumption, and trade of high fructose
corn syrups.
``(B) Publication.--The data collected
under subparagraph (A) shall be published in
each edition of the World Agricultural Supply
and Demand Estimates.
``(5) Penalty.--Any person willfully failing or
refusing to furnish the information required to be
reported by paragraph (1), (2), or (3), or furnishing
willfully false information, shall be subject to a
civil penalty of not more than $10,000 for each such
violation.
``(6) Monthly reports.--Taking into consideration
the information received under this subsection, the
Secretary shall publish on a monthly basis composite
data on production, imports, distribution, and stock
levels of sugar.
``(h) Substitution of Refined Sugar.--For purposes of
Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff
Schedule of the United States and the reexport programs and
polyhydric alcohol program administered by the Secretary, all
refined sugars (whether derived from sugar beets or sugarcane)
produced by cane sugar refineries and beet sugar processors
shall be fully substitutable for the export of sugar and sugar-
containing products under those programs.
``(i) Effective Period.--This section shall be effective
only for the 2008 through 2012 crops of sugar beets and
sugarcane.''.
(b) Transition.--The Secretary shall make loans for raw
cane sugar and refined beet sugar available for the 2007 crop
year on the terms and conditions provided in section 156 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272), as in effect on the day before the date of
enactment of this Act.
SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL SUGAR
ORGANIZATION.
The Secretary shall work with the Secretary of State to
restore United States membership in the International Sugar
Organization not later than 1 year after the date of enactment
of this Act.
SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
(a) Definitions.--Section 359a of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
(1) by redesignating paragraphs (1), (2), (3), and
(4) as paragraphs (2), (4), (5), and (6), respectively;
(2) by inserting before paragraph (2) (as so
redesignated) the following:
``(1) Human consumption.--The term `human
consumption', when used in the context of a reference
to sugar (whether in the form of sugar, in-process
sugar, syrup, molasses, or in some other form) for
human consumption, includes sugar for use in human
food, beverages, or similar products.''; and
(3) by inserting after paragraph (2) (as so
redesignated) the following:
``(3) Market.--
``(A) In general.--The term `market' means
to sell or otherwise dispose of in commerce in
the United States.
``(B) Inclusions.--The term `market'
includes--
``(i) the forfeiture of sugar under
the loan program for sugar established
under section 156 of the Federal
Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7272);
``(ii) with respect to any
integrated processor and refiner, the
movement of raw cane sugar into the
refining process; and
``(iii) the sale of sugar for the
production of ethanol or other
bioenergy product, if the disposition
of the sugar is administered by the
Secretary under section 9010 of the
Farm Security and Rural Investment Act
of 2002.
``(C) Marketing year.--Forfeited sugar
described in subparagraph (B)(i) shall be
considered to have been marketed during the
crop year for which a loan is made under the
loan program described in that subparagraph.''.
(b) Flexible Marketing Allotments for Sugar.--Section 359b
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is
amended to read as follows:
``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
``(a) Sugar Estimates.--
``(1) In general.--Not later than August 1 before
the beginning of each of the 2008 through 2012 crop
years for sugarcane and sugar beets, the Secretary
shall estimate--
``(A) the quantity of sugar that will be
subject to human consumption in the United
States during the crop year;
``(B) the quantity of sugar that would
provide for reasonable carryover stocks;
``(C) the quantity of sugar that will be
available from carry-in stocks for human
consumption in the United States during the
crop year;
``(D) the quantity of sugar that will be
available from the domestic processing of
sugarcane, sugar beets, and in-process beet
sugar; and
``(E) the quantity of sugars, syrups, and
molasses that will be imported for human
consumption or to be used for the extraction of
sugar for human consumption in the United
States during the crop year, whether the
articles are under a tariff-rate quota or are
in excess or outside of a tariff-rate quota.
``(2) Exclusion.--The estimates under this
subsection shall not apply to sugar imported for the
production of polyhydric alcohol or to any sugar
refined and reexported in refined form or in products
containing sugar.
``(3) Reestimates.--The Secretary shall make
reestimates of sugar consumption, stocks, production,
and imports for a crop year as necessary, but not later
than the beginning of each of the second through fourth
quarters of the crop year.
``(b) Sugar Allotments.--
``(1) Establishment.--By the beginning of each crop
year, the Secretary shall establish for that crop year
appropriate allotments under section 359c for the
marketing by processors of sugar processed from sugar
cane or sugar beets or in-process beet sugar (whether
the sugar beets or in-process beet sugar was produced
domestically or imported) at a level that is--
``(A) sufficient to maintain raw and
refined sugar prices above forfeiture levels so
that there will be no forfeitures of sugar to
the Commodity Credit Corporation under the loan
program for sugar established under section 156
of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272); but
``(B) not less than 85 percent of the
estimated quantity of sugar for domestic human
consumption for the crop year.
``(2) Products.--The Secretary may include sugar
products, the majority content of which is sucrose for
human consumption, derived from sugar cane, sugar
beets, molasses, or sugar in the allotments established
under paragraph (1) if the Secretary determines it to
be appropriate for purposes of this part.
``(c) Coverage of Allotments.--
``(1) In general.--The marketing allotments under
this part shall apply to the marketing by processors of
sugar intended for domestic human consumption that has
been processed from sugar cane, sugar beets, or in-
process beet sugar, whether such sugar beets or in-
process beet sugar was produced domestically or
imported.
``(2) Exceptions.--Consistent with the
administration of marketing allotments for each of the
2002 through 2007 crop years, the marketing allotments
shall not apply to sugar sold--
``(A) to facilitate the exportation of the
sugar to a foreign country, except that the
exports of sugar shall not be eligible to
receive credits under reexport programs for
refined sugar or sugar containing products
administered by the Secretary;
``(B) to enable another processor to
fulfill an allocation established for that
processor; or
``(C) for uses other than domestic human
consumption, except for the sale of sugar for
the production of ethanol or other bioenergy if
the disposition of the sugar is administered by
the Secretary under section 9010 of the Farm
Security and Rural Investment Act of 2002.
``(3) Requirement.--The sale of sugar described in
paragraph (2)(B) shall be--
``(A) made prior to May 1; and
``(B) reported to the Secretary.
``(d) Prohibitions.--
``(1) In general.--During all or part of any crop
year for which marketing allotments have been
established, no processor of sugar beets or sugarcane
shall market for domestic human consumption a quantity
of sugar in excess of the allocation established for
the processor, except--
``(A) to enable another processor to
fulfill an allocation established for that
other processor; or
``(B) to facilitate the exportation of the
sugar.
``(2) Civil penalty.--Any processor who knowingly
violates paragraph (1) shall be liable to the Commodity
Credit Corporation for a civil penalty in an amount
equal to 3 times the United States market value, at the
time of the commission of the violation, of that
quantity of sugar involved in the violation.''.
(c) Establishment of Flexible Marketing Allotments.--
Section 359c of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359cc) is amended--
(1) by striking subsection (b) and inserting the
following:
``(b) Overall Allotment Quantity.--
``(1) In general.--The Secretary shall establish
the overall quantity of sugar to be allotted for the
crop year (referred to in this part as the `overall
allotment quantity') at a level that is--
``(A) sufficient to maintain raw and
refined sugar prices above forfeiture levels to
avoid forfeiture of sugar to the Commodity
Credit Corporation; but
``(B) not less than a quantity equal to 85
percent of the estimated quantity of sugar for
domestic human consumption for the crop year.
``(2) Adjustment.--Subject to paragraph (1), the
Secretary shall adjust the overall allotment quantity
to maintain--
``(A) raw and refined sugar prices above
forfeiture levels to avoid the forfeiture of
sugar to the Commodity Credit Corporation; and
``(B) adequate supplies of raw and refined
sugar in the domestic market.'';
(2) in subsection (d)(2), by inserting ``or in-
process beet sugar'' before the period at the end;
(3) in subsection (g)(1)--
(A) by striking ``(1) in general.--The
Secretary'' and inserting the following:
``(1) Adjustments.--
``(A) In general.--Subject to subparagraph
(B), the Secretary''; and
(B) by adding at the end the following:
``(B) Limitation.--In carrying out
subparagraph (A), the Secretary may not reduce
the overall allotment quantity to a quantity of
less than 85 percent of the estimated quantity
of sugar for domestic human consumption for the
crop year.''; and
(4) by striking subsection (h).
(d) Allocation of Marketing Allotments.--Section 359d(b) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is
amended--
(1) in paragraph (1)(F), by striking ``Except as
otherwise provided in section 359f(c)(8), if'' and
inserting ``If''; and
(2) in paragraph (2), by striking subparagraphs
(G), (H), and (I) and inserting the following:
``(G) Sale of factories of a processor to
another processor.--
``(i) Effect of sale.--Subject to
subparagraphs (E) and (F), if 1 or more
factories of a processor of beet sugar
(but not all of the assets of the
processor) are sold to another
processor of beet sugar during a crop
year, the Secretary shall assign a pro
rata portion of the allocation of the
seller to the allocation of the buyer
to reflect the historical contribution
of the production of the sold 1 or more
factories to the total allocation of
the seller, unless the buyer and the
seller have agreed upon the transfer of
a different portion of the allocation
of the seller, in which case, the
Secretary shall transfer that portion
agreed upon by the buyer and seller.
``(ii) Application of allocation.--
The assignment of the allocation under
clause (i) shall apply--
``(I) during the remainder
of the crop year for which the
sale described in clause (i)
occurs; and
``(II) during each
subsequent crop year.
``(iii) Use of other factories to
fill allocation.--If the assignment of
the allocation under clause (i) to the
buyer for the 1 or more purchased
factories cannot be filled by the
production of the 1 or more purchased
factories, the remainder of the
allocation may be filled by beet sugar
produced by the buyer from other
factories of the buyer.
``(H) New entrants starting production,
reopening, or acquiring an existing factory
with production history.--
``(i) Definition of new entrant.--
``(I) In general.--In this
subparagraph, the term `new
entrant' means an individual,
corporation, or other entity
that--
``(aa) does not
have an allocation of
the beet sugar
allotment under this
part;
``(bb) is not
affiliated with any
other individual,
corporation, or entity
that has an allocation
of beet sugar under
this part (referred to
in this clause as a
`third party'); and
``(cc) will process
sugar beets produced by
sugar beet growers
under contract with the
new entrant for the
production of sugar at
the new or re-opened
factory that is the
basis for the new
entrant allocation.
``(II) Affiliation.--For
purposes of subclause (I)(bb),
a new entrant and a third party
shall be considered to be
affiliated if--
``(aa) the third
party has an ownership
interest in the new
entrant;
``(bb) the new
entrant and the third
party have owners in
common;
``(cc) the third
party has the ability
to exercise control
over the new entrant by
organizational rights,
contractual rights, or
any other means;
``(dd) the third
party has a contractual
relationship with the
new entrant by which
the new entrant will
make use of the
facilities or assets of
the third party; or
``(ee) there are
any other similar
circumstances by which
the Secretary
determines that the new
entrant and the third
party are affiliated.
``(ii) Allocation for a new entrant
that has constructed a new factory or
reopened a factory that was not
operated since before 1998.--If a new
entrant constructs a new sugar beet
processing factory, or acquires and
reopens a sugar beet processing factory
that last processed sugar beets prior
to the 1998 crop year and there is no
allocation currently associated with
the factory, the Secretary shall--
``(I) assign an allocation
for beet sugar to the new
entrant that provides a fair
and equitable distribution of
the allocations for beet sugar
so as to enable the new entrant
to achieve a factory
utilization rate comparable to
the factory utilization rates
of other similarly-situated
processors; and
``(II) reduce the
allocations for beet sugar of
all other processors on a pro
rata basis to reflect the
allocation to the new entrant.
``(iii) Allocation for a new
entrant that has acquired an existing
factory with a production history.--
``(I) In general.--If a new
entrant acquires an existing
factory that has processed
sugar beets from the 1998 or
subsequent crop year and has a
production history, on the
mutual agreement of the new
entrant and the company
currently holding the
allocation associated with the
factory, the Secretary shall
transfer to the new entrant a
portion of the allocation of
the current allocation holder
to reflect the historical
contribution of the production
of the 1 or more sold factories
to the total allocation of the
current allocation holder,
unless the new entrant and
current allocation holder have
agreed upon the transfer of a
different portion of the
allocation of the current
allocation holder, in which
case, the Secretary shall
transfer that portion agreed
upon by the new entrant and the
current allocation holder.
``(II) Prohibition.--In the
absence of a mutual agreement
described in subclause (I), the
new entrant shall be ineligible
for a beet sugar allocation.
``(iv) Appeals.--Any decision made
under this subsection may be appealed
to the Secretary in accordance with
section 359i.''.
(e) Reassignment of Deficits.--Section 359e(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is
amended in paragraphs (1)(D) and (2)(C), by inserting ``of raw
cane sugar'' after ``imports'' each place it appears.
(f) Provisions Applicable to Producers.--Section 359f(c) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is
amended--
(1) by striking paragraph (8);
(2) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively;
(3) by inserting before paragraph (2) (as so
redesignated) the following:
``(1) Definition of seed.--
``(A) In general.--In this subsection, the
term `seed' means only those varieties of seed
that are dedicated to the production of
sugarcane from which is produced sugar for
human consumption.
``(B) Exclusion.--The term `seed' does not
include seed of a high-fiber cane variety
dedicated to other uses, as determined by the
Secretary'';
(4) in paragraph (3) (as so redesignated)--
(A) in the first sentence--
(i) by striking ``paragraph (1)''
and inserting ``paragraph (2)''; and
(ii) by inserting ``sugar produced
from'' after ``quantity of''; and
(B) in the second sentence, by striking
``paragraph (7)'' and inserting ``paragraph
(8)'';
(5) in the first sentence of paragraph (6)(C) (as
so redesignated), by inserting ``for sugar'' before
``in excess of the farm's proportionate share''; and
(6) in paragraph (8) (as so redesignated), by
inserting ``sugar from'' after ``the amount of''.
(g) Special Rules.--Section 359g of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
(1) by striking subsection (a) and inserting the
following:
``(a) Transfer of Acreage Base History.--
``(1) Transfer authorized.--For the purpose of
establishing proportionate shares for sugarcane farms
under section 359f(c), the Secretary, on application of
any producer, with the written consent of all owners of
a farm, may transfer the acreage base history of the
farm to any other parcels of land of the applicant.
``(2) Converted acreage base.--
``(A) In general.--Sugarcane acreage base
established under section 359f(c) that has been
or is converted to nonagricultural use on or
after May 13, 2002, may be transferred to other
land suitable for the production of sugarcane
that can be delivered to a processor in a
proportionate share State in accordance with
this paragraph.
``(B) Notification.--Not later than 90 days
after the Secretary becomes aware of a
conversion of any sugarcane acreage base to a
nonagricultural use, the Secretary shall notify
the 1 or more affected landowners of the
transferability of the applicable sugarcane
acreage base.
``(C) Initial transfer period.--The owner
of the base attributable to the acreage at the
time of the conversion shall be afforded 90
days from the date of the receipt of the
notification under subparagraph (B) to transfer
the base to 1 or more farms owned by the owner.
``(D) Grower of record.--If a transfer
under subparagraph (C) cannot be accomplished
during the period specified in that
subparagraph, the grower of record with regard
to the acreage base on the date on which the
acreage was converted to nonagricultural use
shall--
``(i) be notified; and
``(ii) have 90 days from the date
of the receipt of the notification to
transfer the base to 1 or more farms
operated by the grower.
``(E) Pool distribution.--
``(i) In general.--If transfers
under subparagraphs (B) and (C) cannot
be accomplished during the periods
specified in those subparagraphs, the
county committee of the Farm Service
Agency for the applicable county shall
place the acreage base in a pool for
possible assignment to other farms.
``(ii) Acceptance of requests.--
After providing reasonable notice to
farm owners, operators, and growers of
record in the county, the county
committee shall accept requests from
owners, operators, and growers of
record in the county.
``(iii) Assignment.--The county
committee shall assign the acreage base
to other farms in the county that are
eligible and capable of accepting the
acreage base, based on a random drawing
from among the requests received under
clause (ii).
``(F) Statewide reallocation.--
``(i) In general.--Any acreage base
remaining unassigned after the
transfers and processes described in
subparagraphs (A) through (E) shall be
made available to the State committee
of the Farm Service Agency for
allocation among the remaining county
committees in the State representing
counties with farms eligible for
assignment of the base, based on a
random drawing.
``(ii) Allocation.--Any county
committee receiving acreage base under
this subparagraph shall allocate the
acreage base to eligible farms using
the process described in subparagraph
(E).
``(G) Status of reassigned base.--After
acreage base has been reassigned in accordance
with this subparagraph, the acreage base
shall--
``(i) remain on the farm; and
``(ii) be subject to the transfer
provisions of paragraph (1).''; and
(2) in subsection (d)--
(A) in paragraph (1)--
(i) by inserting ``affected''
before ``crop-share owners'' each place
it appears; and
(ii) by striking ``, and from the
processing company holding the
applicable allocation for such
shares,''; and
(B) in paragraph (2), by striking ``based
on'' and all that follows through the end of
subparagraph (B) and inserting ``based on--
``(A) the number of acres of sugarcane base
being transferred; and
``(B) the pro rata amount of allocation at
the processing company holding the applicable
allocation that equals the contribution of the
grower to allocation of the processing company
for the sugarcane acreage base being
transferred.''.
(h) Appeals.--Section 359i of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359ii) is amended--
(1) in subsection (a), by inserting ``or 359g(d)''
after ``359f''; and
(2) by striking subsection (c).
(i) Reallocating Sugar Quota Import Shortfalls.--Section
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk) is repealed.
(j) Administration of Tariff Rate Quotas.--Part VII of
subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is
amended by adding at the end the following:
``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.
``(a) Establishment.--
``(1) In general.--Except as provided in paragraph
(2) and notwithstanding any other provision of law, at
the beginning of the quota year, the Secretary shall
establish the tariff-rate quotas for raw cane sugar and
refined sugars at the minimum level necessary to comply
with obligations under international trade agreements
that have been approved by Congress.
``(2) Exception.--Paragraph (1) shall not apply to
specialty sugar.
``(b) Adjustment.--
``(1) Before april 1.--Before April 1 of each
fiscal year, if there is an emergency shortage of sugar
in the United States market that is caused by a war,
flood, hurricane, or other natural disaster, or other
similar event as determined by the Secretary--
``(A) the Secretary shall take action to
increase the supply of sugar in accordance with
sections 359c(b)(2) and 359e(b), including an
increase in the tariff-rate quota for raw cane
sugar to accommodate the reassignment to
imports; and
``(B) if there is still a shortage of sugar
in the United States market, and marketing of
domestic sugar has been maximized, and domestic
raw cane sugar refining capacity has been
maximized, the Secretary may increase the
tariff-rate quota for refined sugars sufficient
to accommodate the supply increase, if the
further increase will not threaten to result in
the forfeiture of sugar pledged as collateral
for a loan under section 156 of the Federal
Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7272).
``(2) On or after april 1.--On or after April 1 of
each fiscal year--
``(A) the Secretary may take action to
increase the supply of sugar in accordance with
sections 359c(b)(2) and 359e(b), including an
increase in the tariff-rate quota for raw cane
sugar to accommodate the reassignment to
imports; and
``(B) if there is still a shortage of sugar
in the United States market, and marketing of
domestic sugar has been maximized, the
Secretary may increase the tariff-rate quota
for raw cane sugar if the further increase will
not threaten to result in the forfeiture of
sugar pledged as collateral for a loan under
section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7272).''.
(k) Period of Effectiveness.--Part VII of subtitle B of
title III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359aa) (as amended by subsection (j)) is amended by adding at
the end the following:
``SEC. 359L. PERIOD OF EFFECTIVENESS.
``(a) In General.--This part shall be effective only for
the 2008 through 2012 crop years for sugar.
``(b) Transition.--The Secretary shall administer flexible
marketing allotments for sugar for the 2007 crop year for sugar
on the terms and conditions provided in this part as in effect
on the day before the date of enactment of this section.''.
SEC. 1404. STORAGE FACILITY LOANS.
Section 1402(c) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7971(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the
end;
(2) by redesignating paragraph (2) as paragraph
(3);
(3) by inserting after paragraph (1) the following:
``(2) not include any penalty for prepayment;
and''; and
(4) in paragraph (3) (as redesignated by paragraph
(2)), by inserting ``other'' after ``on such''.
SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
Subtitle E of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended by adding
at the end the following:
``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
``(a) Initial Crop Years.--Notwithstanding any other
provision of law, for each of the 2008 through 2011 crop years,
the Commodity Credit Corporation shall establish rates for the
storage of forfeited sugar in an amount that is not less than--
``(1) in the case of refined sugar, 15 cents per
hundredweight of refined sugar per month; and
``(2) in the case of raw cane sugar, 10 cents per
hundredweight of raw cane sugar per month.
``(b) Subsequent Crop Years.--For each of the 2012 and
subsequent crop years, the Commodity Credit Corporation shall
establish rates for the storage of forfeited sugar in the same
manner as was used on the day before the date of enactment of
this section.''.
Subtitle E--Dairy
SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.
(a) Definition of Net Removals.--In this section, the term
``net removals'' means--
(1) the sum of--
(A) the quantity of a product described in
subsection (b) purchased by the Commodity
Credit Corporation under this section; and
(B) the quantity of the product exported
under section 153 of the Food Security Act of
1985 (15 U.S.C. 713a-14); less
(2) the quantity of the product sold for
unrestricted use by the Commodity Credit Corporation.
(b) Support Activities.--During the period beginning on
January 1, 2008, and ending December 31, 2012, the Secretary
shall support the price of cheddar cheese, butter, and nonfat
dry milk through the purchase of such products made from milk
produced in the United States.
(c) Purchase Price.--To carry out subsection (b) during the
period specified in that subsection, the Secretary shall
purchase--
(1) cheddar cheese in blocks at not less than $1.13
per pound;
(2) cheddar cheese in barrels at not less than
$1.10 per pound;
(3) butter at not less than $1.05 per pound; and
(4) nonfat dry milk at not less than $0.80 per
pound.
(d) Temporary Price Adjustment To Avoid Excess
Inventories.--
(1) Adjustments authorized.--The Secretary may
adjust the minimum purchase prices established under
subsection (c) only as permitted under this subsection.
(2) Cheese inventories in excess of 200,000,000
pounds.--If net removals for a period of 12 consecutive
months exceed 200,000,000 pounds of cheese, but do not
exceed 400,000,000 pounds, the Secretary may reduce the
purchase prices under paragraphs (1) and (2) of
subsection (c) during the immediately following month
by not more than 10 cents per pound.
(3) Cheese inventories in excess of 400,000,000
pounds.--If net removals for a period of 12 consecutive
months exceed 400,000,000 pounds of cheese, the
Secretary may reduce the purchase prices under
paragraphs (1) and (2) of subsection (c) during the
immediately following month by not more than 20 cents
per pound.
(4) Butter inventories in excess of 450,000,000
pounds.--If net removals for a period of 12 consecutive
months exceed 450,000,000 pounds of butter, but do not
exceed 650,000,000 pounds, the Secretary may reduce the
purchase price under subsection (c)(3) during the
immediately following month by not more than 10 cents
per pound.
(5) Butter inventories in excess of 650,000,000
pounds.--If net removals for a period of 12 consecutive
months exceed 650,000,000 pounds of butter, the
Secretary may reduce the purchase price under
subsection (c)(3) during the immediately following
month by not more than 20 cents per pound.
(6) Nonfat dry milk inventories in excess of
600,000,000 pounds.--If net removals for a period of 12
consecutive months exceed 600,000,000 pounds of nonfat
dry milk, but do not exceed 800,000,000 pounds, the
Secretary may reduce the purchase price under
subsection (c)(4) during the immediately following
month by not more than 5 cents per pound.
(7) Nonfat dry milk inventories in excess of
800,000,000 pounds.--If net removals for a period of 12
consecutive months exceed 800,000,000 pounds of nonfat
dry milk, the Secretary may reduce the purchase price
under subsection (c)(4) during the immediately
following month by not more than 10 cents per pound.
(e) Uniform Purchase Price.--The prices that the Secretary
pays for cheese, butter, or nonfat dry milk, respectively,
under subsection (b) shall be uniform for all regions of the
United States.
(f) Sales From Inventories.--In the case of each commodity
specified in subsection (c) that is available for unrestricted
use in the inventory of the Commodity Credit Corporation, the
Secretary may sell the commodity at the market prices
prevailing for that commodity at the time of sale, except that
the sale price may not be less than 110 percent of the minimum
purchase price specified in subsection (c) for that commodity.
SEC. 1502. DAIRY FORWARD PRICING PROGRAM.
(a) Program Required.--The Secretary shall establish a
program under which milk producers and cooperative associations
of producers are authorized to voluntarily enter into forward
price contracts with milk handlers.
(b) Minimum Milk Price Requirements.--Payments made by milk
handlers to milk producers and cooperative associations of
producers, and prices received by milk producers and
cooperative associations, in accordance with the terms of a
forward price contract authorized by subsection (a), shall be
treated as satisfying--
(1) all uniform and minimum milk price requirements
of subparagraphs (B) and (F) of paragraph (5) of
section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937; and
(2) the total payment requirement of subparagraph
(C) of that paragraph.
(c) Milk Covered by Program.--
(1) Covered milk.--The program shall apply only
with respect to the marketing of federally regulated
milk that--
(A) is not classified as Class I milk or
otherwise intended for fluid use; and
(B) is in the current of interstate or
foreign commerce or directly burdens,
obstructs, or affects interstate or foreign
commerce in federally regulated milk.
(2) Relation to class i milk.--To assist milk
handlers in complying with paragraph (1)(A) without
having to segregate or otherwise individually track the
source and disposition of milk, a milk handler may
allocate milk receipts from producers, cooperatives,
and other sources that are not subject to a forward
contract to satisfy the obligations of the handler with
regard to Class I milk usage.
(d) Voluntary Program.--
(1) In general.--A milk handler may not require
participation in a forward pricing contract as a
condition of the handler receiving milk from a producer
or cooperative association of producers.
(2) Pricing.--A producer or cooperative association
described in paragraph (1) may continue to have their
milk priced in accordance with the minimum payment
provisions of the Federal milk marketing order.
(3) Complaints.--
(A) In general.--The Secretary shall
investigate complaints made by producers or
cooperative associations of coercion by
handlers to enter into forward contracts.
(B) Action.--If the Secretary finds
evidence of coercion, the Secretary shall take
appropriate action.
(e) Duration.--
(1) New contracts.--No forward price contract may
be entered into under the program established under
this section after September 30, 2012.
(2) Application.--No forward contract entered into
under the program may extend beyond September 30, 2015.
SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Extension.--Section 153(a) of the Food Security Act of
1985 (15 U.S.C. 713a-14(a)) is amended by striking ``2007'' and
inserting ``2012''.
(b) Compliance With Trade Agreements.--Section 153 of the
Food Security Act of 1985 (15 U.S.C. 713a-14) is amended--
(1) in subsection (c), by striking paragraph (3)
and inserting the following:
``(3) the maximum volume of dairy product exports
allowable consistent with the obligations of the United
States under the Uruguay Round Agreements approved
under section 101 of the Uruguay Round Agreements Act
(19 U.S.C. 3511) is exported under the program each
year (minus the volume sold under section 1163 of this
Act during that year), except to the extent that the
export of such a volume under the program would, in the
judgment of the Secretary, exceed the limitations on
the value permitted under subsection (f); and''; and.
(2) in subsection (f), by striking paragraph (1)
and inserting the following:
``(1) Funds and commodities.--Except as provided in
paragraph (2), the Commodity Credit Corporation shall
in each year use money and commodities for the program
under this section in the maximum amount consistent
with the obligations of the United States under the
Uruguay Round Agreements approved under section 101 of
the Uruguay Round Agreements Act (19 U.S.C. 3511),
minus the amount expended under section 1163 of this
Act during that year.''.
SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.
Section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended by striking subsection (17)
and inserting the following:
``(17) Provisions applicable to amendments.--
``(A) Applicability to amendments.--The
provisions of this section and section 8d
applicable to orders shall be applicable to
amendments to orders.
``(B) Supplemental rules of practice.--
``(i) In general.--Not later than
60 days after the date of enactment of
this subparagraph, the Secretary shall
issue, using informal rulemaking,
supplemental rules of practice to
define guidelines and timeframes for
the rulemaking process relating to
amendments to orders.
``(ii) Issues.--At a minimum, the
supplemental rules of practice shall
establish--
``(I) proposal submission
requirements;
``(II) pre-hearing
information session
specifications;
``(III) written testimony
and data request requirements;
``(IV) public participation
timeframes; and
``(V) electronic document
submission standards.
``(iii) Effective date.--The
supplemental rules of practice shall
take effect not later than 120 days
after the date of enactment of this
subparagraph, as determined by the
Secretary.
``(C) Hearing timeframes.--
``(i) In general.--Not more than 30
days after the receipt of a proposal
for an amendment hearing regarding a
milk marketing order, the Secretary
shall--
``(I) issue a notice
providing an action plan and
expected timeframes for
completion of the hearing not
more than 120 days after the
date of the issuance of the
notice;
``(II)(aa) issue a request
for additional information to
be used by the Secretary in
making a determination
regarding the proposal; and
``(bb) if the additional
information is not provided to
the Secretary within the
timeframe requested by the
Secretary, issue a denial of
the request; or
``(III) issue a denial of
the request.
``(ii) Requirement.--A post-hearing
brief may be filed under this paragraph
not later than 60 days after the date
of an amendment hearing regarding a
milk marketing order.
``(iii) Recommended decisions.--A
recommended decision on a proposed
amendment to an order shall be issued
not later than 90 days after the
deadline for the submission of post-
hearing briefs.
``(iv) Final decisions.--A final
decision on a proposed amendment to an
order shall be issued not later than 60
days after the deadline for submission
of comments and exceptions to the
recommended decision issued under
clause (iii).
``(D) Industry assessments.--If the
Secretary determines it is necessary to improve
or expedite rulemaking under this subsection,
the Secretary may impose an assessment on the
affected industry to supplement appropriated
funds for the procurement of service providers,
such as court reporters.
``(E) Use of informal rulemaking.--The
Secretary may use rulemaking under section 553
of title 5, United States Code, to amend
orders, other than provisions of orders that
directly affect milk prices.
``(F) Avoiding duplication.--The Secretary
shall not be required to hold a hearing on any
amendment proposed to be made to a milk
marketing order in response to an application
for a hearing on the proposed amendment if--
``(i) the application requesting
the hearing is received by the
Secretary not later than 90 days after
the date on which the Secretary has
announced the decision on a previously
proposed amendment to that order; and
``(ii) the 2 proposed amendments
are essentially the same, as determined
by the Secretary.
``(G) Monthly feed and fuel costs for make
allowances.--As part of any hearing to adjust
make allowances under marketing orders
commencing prior to September 30, 2012, the
Secretary shall--
``(i) determine the average monthly
prices of feed and fuel incurred by
dairy producers in the relevant
marketing area;
``(ii) consider the most recent
monthly feed and fuel price data
available; and
``(iii) consider those prices in
determining whether or not to adjust
make allowances.''.
SEC. 1505. DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended
by striking ``2007'' and inserting ``2012''.
SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.
(a) Definitions.--In this section:
(1) Class i milk.--The term ``Class I milk'' means
milk (including milk components) classified as Class I
milk under a Federal milk marketing order.
(2) Eligible production.--The term ``eligible
production'' means milk produced by a producer in a
participating State.
(3) Federal milk marketing order.--The term
``Federal milk marketing order'' means an order issued
under section 8c of the Agricultural Adjustment Act (7
U.S.C. 608c), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937.
(4) Participating state.--The term ``participating
State'' means each State.
(5) Producer.--The term ``producer'' means an
individual or entity that directly or indirectly (as
determined by the Secretary)--
(A) shares in the risk of producing milk;
and
(B) makes contributions (including land,
labor, management, equipment, or capital) to
the dairy farming operation of the individual
or entity that are at least commensurate with
the share of the individual or entity of the
proceeds of the operation.
(b) Payments.--The Secretary shall offer to enter into
contracts with producers on a dairy farm located in a
participating State under which the producers receive payments
on eligible production.
(c) Amount.--Payments to a producer under this section
shall be calculated by multiplying (as determined by the
Secretary)--
(1) the payment quantity for the producer during
the applicable month established under subsection (e);
(2) the amount equal to--
(A) $16.94 per hundredweight, as adjusted
under subsection (d); less
(B) the Class I milk price per
hundredweight in Boston under the applicable
Federal milk marketing order; by
(3)(A) for the period beginning October 1, 2007,
and ending September 30, 2008, 34 percent;
(B) for the period beginning October 1, 2008, and
ending August 31, 2012, 45 percent; and
(C) for the period beginning September 1, 2012, and
thereafter, 34 percent.
(d) Payment Rate Adjustment for Feed Prices.--
(1) Initial adjustment authority.--During the
period beginning on January 1, 2008, and ending on
August 31, 2012, if the National Average Dairy Feed
Ration Cost for a month during that period is greater
than $7.35 per hundredweight, the amount specified in
subsection (c)(2)(A) used to determine the payment rate
for that month shall be increased by 45 percent of the
percentage by which the National Average Dairy Feed
Ration Cost exceeds $7.35 per hundredweight.
(2) Subsequent adjustment authority.--For any month
beginning on or after September 1, 2012, if the
National Average Dairy Feed Ration Cost for the month
is greater than $9.50 per hundredweight, the amount
specified in subsection (c)(2)(A) used to determine the
payment rate for that month shall be increased by 45
percent of the percentage by which the National Average
Dairy Feed Ration Cost exceeds $9.50 per hundredweight.
(3) National average dairy feed ration cost.--For
each month, the Secretary shall calculate a National
Average Dairy Feed Ration Cost per hundredweight using
the same procedures (adjusted to a hundredweight basis)
used to calculate the feed components of the estimated
price of 16 percent Mixed Dairy Feed per pound noted on
page 33 of the USDA March 2008 Agricultural Prices
publication (including the data and factors noted in
footnote 4).
(e) Payment Quantity.--
(1) In general.--Subject to paragraph (2), the
payment quantity for a producer during the applicable
month under this section shall be equal to the quantity
of eligible production marketed by the producer during
the month.
(2) Limitation.--
(A) In general.--The payment quantity for
all producers on a single dairy operation for
which the producers receive payments under
subsection (b) shall not exceed--
(i) for the period beginning
October 1, 2007, and ending September
30, 2008, 2,400,000 pounds;
(ii) for the period beginning
October 1, 2008, and ending August 31,
2012, 2,985,000 pounds for each fiscal
year; and
(iii) effective beginning September
1, 2012, 2,400,000 pounds per fiscal
year.
(B) Standards.--For purposes of determining
whether producers are producers on separate
dairy operations or a single dairy operation,
the Secretary shall apply the same standards as
were applied in implementing the dairy program
under section 805 of the Agriculture, Rural
Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2001 (as
enacted into law by Public Law 106-387; 114
Stat. 1549A-50).
(3) Reconstitution.--The Secretary shall ensure
that a producer does not reconstitute a dairy operation
for the sole purpose of receiving additional payments
under this section.
(f) Payments.--A payment under a contract under this
section shall be made on a monthly basis not later than 60 days
after the last day of the month for which the payment is made.
(g) Signup.--The Secretary shall offer to enter into
contracts under this section during the period beginning on the
date that is 90 days after the date of enactment of this Act
and ending on September 30, 2012.
(h) Duration of Contract.--
(1) In general.--Except as provided in paragraph
(2), any contract entered into by producers on a dairy
farm under this section shall cover eligible production
marketed by the producers on the dairy farm during the
period starting with the first day of month the
producers on the dairy farm enter into the contract and
ending on September 30, 2012.
(2) Violations.--If a producer violates the
contract, the Secretary may--
(A) terminate the contract and allow the
producer to retain any payments received under
the contract; or
(B) allow the contract to remain in effect
and require the producer to repay a portion of
the payments received under the contract based
on the severity of the violation.
SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.
(a) Extension of Dairy Promotion and Research Authority.--
Section 113(e)(2) of the Dairy Production Stabilization Act of
1983 (7 U.S.C. 4504(e)(2)) is amended by striking ``2007'' and
inserting ``2012''.
(b) Definition of United States for Promotion Program.--
Section 111 of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4502) is amended--
(1) by striking subsection (l) and inserting the
following:
``(l) the term `United States', when used in a geographical
sense, means all of the States, the District of Columbia, and
the Commonwealth of Puerto Rico;''; and
(2) in subsection (m), by striking ``(as defined in
subsection (l))''.
(c) Definition of United States for Research Program.--
Section 130 of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4531)) is amended by striking paragraph (12) and
inserting the following:
``(12) the term `United States', when used in a
geographical sense, means all of the States, the
District of Columbia, and the Commonwealth of Puerto
Rico.''.
(d) Assessment Rate for Imported Dairy Products.--Section
113(g) of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504(g)) is amended by striking paragraph (3) and
inserting the following:
``(3) Rate.--
``(A) In general.--The rate of assessment
for milk produced in the United States
prescribed by the order shall be 15 cents per
hundredweight of milk for commercial use or the
equivalent thereof, as determined by the
Secretary.
``(B) Imported dairy products.--The rate of
assessment for imported dairy products
prescribed by the order shall be 7.5 cents per
hundredweight of milk for commercial use or the
equivalent thereof, as determined by the
Secretary.''.
(e) Time and Method of Importer Payments.--Section
113(g)(6) of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504(g)(6)) is amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as
subparagraph (B).
(f) Refund of Assessments on Certain Imported Dairy
Products.--Section 113(g) of the Dairy Production Stabilization
Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end
the following:
``(7) Refund of assessments on certain imported
products.--
``(A) In general.--An importer shall be
entitled to a refund of any assessment paid
under this subsection on imported dairy
products imported under a contract entered into
prior to the date of enactment of the Food,
Conservation, and Energy Act of 2008.
``(B) Expiration.--Refunds under
subparagraph (A) shall expire 1 year after the
date of enactment of the Food, Conservation,
and Energy Act of 2008.''.
SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR
NONFAT DRY MILK.
Not later than 90 days after the date of enactment of this
Act, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
regarding Department of Agriculture reporting procedures for
nonfat dry milk and the impact of the procedures on Federal
milk marketing order minimum prices during the period beginning
on July 1, 2006, and ending on the date of enactment of this
Act.
SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
(a) Establishment.--Subject to the availability of
appropriations to carry out this section, the Secretary shall
establish a commission to be known as the ``Federal Milk
Marketing Order Review Commission'' (referred to in this
section as the ``commission''), which shall conduct a
comprehensive review and evaluation of--
(1) the Federal milk marketing order system in
effect on the date of establishment of the commission;
and
(2) non-Federal milk marketing order systems.
(b) Elements of Review and Evaluation.--As part of the
review and evaluation under subsection (a), the commission
shall consider legislative and regulatory options for--
(1) ensuring that the competitiveness of dairy
products with other competing products in the
marketplace is preserved and enhanced;
(2) enhancing the competitiveness of American dairy
producers in world markets;
(3) ensuring the competitiveness and transparency
in dairy pricing;
(4) streamlining and expediting the process by
which amendments to Federal milk market orders are
adopted;
(5) simplifying the Federal milk marketing order
system;
(6) evaluating whether the Federal milk marketing
order system serves the interests of dairy producers,
consumers, and dairy processors; and
(7) evaluating the nutritional composition of milk,
including the potential benefits and costs of adjusting
the milk content standards.
(c) Membership.--
(1) Composition.--The commission shall consist of
14 members.
(2) Members.--As soon as practicable after the date
on which funds are first made available to carry out
this section, the Secretary shall appoint members to
the commission according to the following requirements:
(A) At least 1 member shall represent a
national consumer organization.
(B) At least 4 members shall represent
land-grant universities or NLGCA Institutions
(as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)) with
accredited dairy economic programs, with at
least 2 of those members being experts in the
field of economics.
(C) At least 1 member shall represent the
food and beverage retail sector.
(D) 4 dairy producers and 4 dairy
processors, appointed so as to balance
geographical distribution of milk production
and dairy processing, reflect all segments of
dairy processing, and represent all regions of
the United States equitably, including States
that operate outside of a Federal milk
marketing order.
(3) Chair.--The commission shall elect 1 of the
appointed members of the commission to serve as
chairperson for the duration of the proceedings of the
commission.
(4) Vacancy.--Any vacancy occurring before the
termination of the commission shall be filled in the
same manner as the original appointment.
(5) Compensation.--Members of the commission shall
serve without compensation, but shall be reimbursed by
the Secretary from existing budget authority for
necessary and reasonable expenses incurred in the
performance of the duties of the commission.
(d) Report.--
(1) In general.--Not later than 2 years after the
date of the first meeting of the commission, the
commission shall submit to Congress and the Secretary a
report describing the results of the review and
evaluation conducted under this section, including such
recommendations regarding the legislative and
regulatory options considered under subsection (b) as
the commission considers to be appropriate.
(2) Opinions.--The report findings shall reflect,
to the maximum extent practicable, a consensus opinion
of the commission members, but the report may include
majority and minority findings regarding those matters
for which consensus was not reached.
(e) Advisory Nature.--The commission is wholly advisory in
nature, and the recommendations of the commission are
nonbinding.
(f) No Effect on Existing Programs.--The Secretary shall
not allow the existence of the commission to impede, delay, or
otherwise affect any decisionmaking process of the Department
of Agriculture, including any rulemaking procedures planned,
proposed, or near completion.
(g) Administrative Assistance.--The Secretary shall provide
administrative support to the commission, and expend to carry
out this section such funds as necessary from budget authority
available to the Secretary.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
(i) Termination.--The commission shall terminate effective
on the date of the submission of the report under subsection
(d).
SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.
(a) Electronic Reporting.--Section 273 of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637b) is amended--
(1) by redesignating subsection (d) as subsection
(e); and
(2) by inserting after subsection (c) the
following:
``(d) Electronic Reporting.--
``(1) In general.--Subject to the availability of
funds under paragraph (3), the Secretary shall
establish an electronic reporting system to carry out
this section.
``(2) Frequency of reports.--After the
establishment of the electronic reporting system in
accordance with paragraph (1), the Secretary shall
increase the frequency of the reports required under
this section.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as are
necessary to carry out this subsection.''.
(b) Quarterly Audits.--Section 273(c) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637b(c)) is amended by
striking paragraph (3) and inserting the following:
``(3) Verification.--
``(A) In general.--The Secretary shall take
such actions as the Secretary considers
necessary to verify the accuracy of the
information submitted or reported under this
subtitle.
``(B) Quarterly audits.--The Secretary
shall quarterly conduct an audit of information
submitted or reported under this subtitle and
compare such information with other related
dairy market statistics.''.
Subtitle F--Administration
SEC. 1601. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--Except as
otherwise provided in this title, the Secretary shall use the
funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this title.
(b) Determinations by Secretary.--A determination made by
the Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Except as otherwise provided in
this subsection, not later than 90 days after the date
of enactment of this Act, the Secretary and the
Commodity Credit Corporation, as appropriate, shall
promulgate such regulations as are necessary to
implement this title and the amendments made by this
title.
(2) Procedure.--The promulgation of the regulations
and administration of this title and the amendments
made by this title shall be made without regard to--
(A) chapter 35 of title 44, United States
Code (commonly known as the ``Paperwork
Reduction Act'');
(B) the Statement of Policy of the
Secretary of Agriculture effective July 24,
1971 (36 Fed. Reg. 13804), relating to notices
of proposed rulemaking and public participation
in rulemaking; and
(C) the notice and comment provisions of
section 553 of title 5, United States Code.
(3) Congressional review of agency rulemaking.--In
carrying out this subsection, the Secretary shall use
the authority provided under section 808 of title 5,
United States Code.
(4) Interim regulations.--Notwithstanding
paragraphs (1) and (2), the Secretary shall implement
the amendments made by sections 1603 and 1604 for the
2009 crop, fiscal, or program year, as appropriate,
through the promulgation of an interim rule.
(d) Adjustment Authority Related to Trade Agreements
Compliance.--
(1) Required determination; adjustment.--If the
Secretary determines that expenditures under this title
that are subject to the total allowable domestic
support levels under the Uruguay Round Agreements (as
defined in section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501)) will exceed such allowable levels
for any applicable reporting period, the Secretary
shall, to the maximum extent practicable, make
adjustments in the amount of such expenditures during
that period to ensure that such expenditures do not
exceed such allowable levels.
(2) Congressional notification.--Before making any
adjustment under paragraph (1), the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives or the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
describing the determination made under that paragraph
and the extent of the adjustment to be made.
(e) Treatment of Advance Payment Option.--Section 1601(d)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7991(d)) is amended--
(1) in paragraph (1), by striking ``and'' at the
end;
(2) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(3) the advance payment of direct payments and
counter-cyclical payments under title I of the Food,
Conservation, and Energy Act of 2008.''.
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The following
provisions of the Agricultural Adjustment Act of 1938 shall not
be applicable to the 2008 through 2012 crops of covered
commodities, peanuts, and sugar and shall not be applicable to
milk during the period beginning on the date of enactment of
this Act through December 31, 2012:
(1) Parts II through V of subtitle B of title III
(7 U.S.C. 1326 et seq.).
(2) In the case of upland cotton, section 377 (7
U.S.C. 1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et
seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of
the Agricultural Act of 1949 shall not be applicable to the
2008 through 2012 crops of covered commodities, peanuts, and
sugar and shall not be applicable to milk during the period
beginning on the date of enactment of this Act and through
December 31, 2012:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than
sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and
1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) Suspension of Certain Quota Provisions.--The joint
resolution entitled ``A joint resolution relating to corn and
wheat marketing quotas under the Agricultural Adjustment Act of
1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and
1340), shall not be applicable to the crops of wheat planted
for harvest in the calendar years 2008 through 2012.
SEC. 1603. PAYMENT LIMITATIONS.
(a) Extension of Limitations.--Sections 1001 and 1001C(a)
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are
amended by striking ``Farm Security and Rural Investment Act of
2002'' each place it appears and inserting ``Food,
Conservation, and Energy Act of 2008''.
(b) Revision of Limitations.--
(1) Definitions.--Section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a)) is amended--
(A) in the matter preceding paragraph (1),
by inserting ``through section 1001F''after
``section'';
(B) by striking paragraph (2) and
redesignating paragraph (3) as paragraph (5);
and
(C) by inserting after paragraph (1) the
following:
``(2) Family member.--The term `family member'
means a person to whom a member in the farming
operation is related as lineal ancestor, lineal
descendant, sibling, spouse, or otherwise by marriage.
``(3) Legal entity.--The term `legal entity' means
an entity that is created under Federal or State law
and that--
``(A) owns land or an agricultural
commodity; or
``(B) produces an agricultural commodity.
``(4) Person.--The term `person' means a natural
person, and does not include a legal entity.''.
(2) Limitation on direct payments and counter-
cyclical payments.--Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended by striking
subsections (b), (c), and (d) and inserting the
following:
``(b) Limitation on Direct Payments, Counter-Cyclical
Payments, and ACRE Payments for Covered Commodities (Other Than
Peanuts).--
``(1) Direct payments.--The total amount of direct
payments received, directly or indirectly, by a person
or legal entity (except a joint venture or a general
partnership) for any crop year under subtitle A of
title I of the Food, Conservation, and Energy Act of
2008 for 1 or more covered commodities (except for
peanuts) may not exceed--
``(A) in the case of a person or legal
entity that does not participate in the average
crop revenue election program under section
1105 of that Act, $40,000; or
``(B) in the case of a person or legal
entity that participates in the average crop
revenue election program under section 1105 of
that Act, an amount equal to--
``(i) the payment limit specified
in subparagraph (A); less
``(ii) the amount of the reduction
in direct payments under section
1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a
general partnership) that does not participate in the
average crop revenue election program under section
1105 of the Food, Conservation, and Energy Act of 2008,
the total amount of counter-cyclical payments received,
directly or indirectly, by the person or legal entity
for any crop year under subtitle A of title I of that
Act for 1 or more covered commodities (except for
peanuts) may not exceed $65,000.
``(3) ACRE and counter-cyclical payments.--In the
case of a person or legal entity (except a joint
venture or a general partnership) that participates in
the average crop revenue election program under section
1105 of the Food, Conservation, and Energy Act of 2008,
the total amount of average crop revenue election
payments and counter-cyclical payments received,
directly or indirectly, by the person or legal entity
for any crop year for 1 or more covered commodities
(except for peanuts) may not exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct
payment limitation is reduced under paragraph
(1)(B).
``(c) Limitation on Direct Payments, Counter-Cyclical
Payments, and ACRE Payments for Peanuts.--
``(1) Direct payments.--The total amount of direct
payments received, directly or indirectly, by a person
or legal entity (except a joint venture or a general
partnership) for any crop year under subtitle C of
title I of the Food, Conservation, and Energy Act of
2008 for peanuts may not exceed--
``(A) in the case of a person or legal
entity that does not participate in the average
crop revenue election program under section
1105 of that Act, $40,000; or
``(B) in the case of a person or legal
entity that participates in the average crop
revenue election program under section 1105 of
that Act, an amount equal to--
``(i) the payment limit specified
in subparagraph (A); less
``(ii) the amount of the reduction
in direct payments under section
1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a
general partnership) that does not participate in the
average crop revenue election program under section
1105 of the Food, Conservation, and Energy Act of 2008,
the total amount of counter-cyclical payments received,
directly or indirectly, by the person or legal entity
for any crop year under subtitle C of title I of that
Act for peanuts may not exceed $65,000.
``(3) ACRE and counter-cyclical payments.--In the
case of a person or legal entity (except a joint
venture or a general partnership) that participates in
the average crop revenue election program under section
1105 of the Food, Conservation, and Energy Act of 2008,
the total amount of average crop revenue election
payments received, directly or indirectly, by the
person or legal entity for any crop year for peanuts
may not exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct
payment limitation is reduced under paragraph
(1)(B).
``(d) Limitation on Applicability.--Nothing in this section
authorizes any limitation on any benefit associated with the
marketing assistance loan program or the loan deficiency
payment program under title I of the Food, Conservation, and
Energy Act of 2008.''.
(3) Direct attribution.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended--
(A) by striking subsections (e) and (f) and
redesignating subsection (g) as subsection (h);
and
(B) by inserting after subsection (d) the
following:
``(e) Attribution of Payments.--
``(1) In general.--In implementing subsections (b)
and (c) and a program described in paragraphs (1)(C)
and (2)(B) of section 1001D(b), the Secretary shall
issue such regulations as are necessary to ensure that
the total amount of payments are attributed to a person
by taking into account the direct and indirect
ownership interests of the person in a legal entity
that is eligible to receive the payments.
``(2) Payments to a person.--Each payment made
directly to a person shall be combined with the pro
rata interest of the person in payments received by a
legal entity in which the person has a direct or
indirect ownership interest unless the payments of the
legal entity have been reduced by the pro rata share of
the person.
``(3) Payments to a legal entity.--
``(A) In general.--Each payment made to a
legal entity shall be attributed to those
persons who have a direct or indirect ownership
interest in the legal entity unless the payment
to the legal entity has been reduced by the pro
rata share of the person.
``(B) Attribution of payments.--
``(i) Payment limits.--Except as
provided in clause (ii), payments made
to a legal entity shall not exceed the
amounts specified in subsections (b)
and (c).
``(ii) Exception for joint ventures
and general partnerships.--Payments
made to a joint venture or a general
partnership shall not exceed, for each
payment specified in subsections (b)
and (c), the amount determined by
multiplying the maximum payment amount
specified in subsections (b) and (c) by
the number of persons and legal
entities (other than joint ventures and
general partnerships) that comprise the
ownership of the joint venture or
general partnership.
``(iii) Reduction.--Payments made
to a legal entity shall be reduced
proportionately by an amount that
represents the direct or indirect
ownership in the legal entity by any
person or legal entity that has
otherwise exceeded the applicable
maximum payment limitation.
``(4) Four levels of attribution for embedded legal
entities.--
``(A) In general.--Attribution of payments
made to legal entities shall be traced through
4 levels of ownership in legal entities.
``(B) First level.--Any payments made to a
legal entity (a first-tier legal entity) that
is owned in whole or in part by a person shall
be attributed to the person in an amount that
represents the direct ownership in the first-
tier legal entity by the person.
``(C) Second level.--
``(i) In general.--Any payments
made to a first-tier legal entity that
is owned (in whole or in part) by
another legal entity (a second-tier
legal entity) shall be attributed to
the second-tier legal entity in
proportion to the ownership of the
second-tier legal entity in the first-
tier legal entity.
``(ii) Ownership by a person.--If
the second-tier legal entity is owned
(in whole or in part) by a person, the
amount of the payment made to the
first-tier legal entity shall be
attributed to the person in the amount
that represents the indirect ownership
in the first-tier legal entity by the
person.
``(D) Third and fourth levels.--
``(i) In general.--Except as
provided in clause (ii), the Secretary
shall attribute payments at the third
and fourth tiers of ownership in the
same manner as specified in
subparagraph (C).
``(ii) Fourth-tier ownership.--If
the fourth-tier of ownership is that of
a fourth-tier legal entity and not that
of a person, the Secretary shall reduce
the amount of the payment to be made to
the first-tier legal entity in the
amount that represents the indirect
ownership in the first-tier legal
entity by the fourth-tier legal entity.
``(f) Special Rules.--
``(1) Minor children.--
``(A) In general.--Except as provided in
subparagraph (B), payments received by a child
under the age of 18 shall be attributed to the
parents of the child.
``(B) Regulations.--The Secretary shall
issue regulations specifying the conditions
under which payments received by a child under
the age of 18 will not be attributed to the
parents of the child.
``(2) Marketing cooperatives.--Subsections (b) and
(c) shall not apply to a cooperative association of
producers with respect to commodities produced by the
members of the association that are marketed by the
association on behalf of the members of the association
but shall apply to the producers as persons.
``(3) Trusts and estates.--
``(A) In general.--With respect to
irrevocable trusts and estates, the Secretary
shall administer this section through section
1001F in such manner as the Secretary
determines will ensure the fair and equitable
treatment of the beneficiaries of the trusts
and estates.
``(B) Irrevocable trust.--
``(i) In general.--In order for a
trust to be considered an irrevocable
trust, the terms of the trust agreement
shall not--
``(I) allow for
modification or termination of
the trust by the grantor;
``(II) allow for the
grantor to have any future,
contingent, or remainder
interest in the corpus of the
trust; or
``(III) except as provided
in clause (ii), provide for the
transfer of the corpus of the
trust to the remainder
beneficiary in less than 20
years beginning on the date the
trust is established.
``(ii) Exception.--Clause (i)(III)
shall not apply in a case in which the
transfer is--
``(I) contingent on the
remainder beneficiary achieving
at least the age of majority;
or
``(II) contingent on the
death of the grantor or income
beneficiary.
``(C) Revocable trust.--For the purposes of
this section through section 1001F, a revocable
trust shall be considered to be the same person
as the grantor of the trust.
``(4) Cash rent tenants.--
``(A) Definition.--In this paragraph, the
term `cash rent tenant' means a person or legal
entity that rents land--
``(i) for cash; or
``(ii) for a crop share guaranteed
as to the amount of the commodity to be
paid in rent.
``(B) Restriction.--A cash rent tenant who
makes a significant contribution of active
personal management, but not of personal labor,
with respect to a farming operation shall be
eligible to receive a payment described in
subsection (b) or (c) only if the tenant makes
a significant contribution of equipment to the
farming operation.
``(5) Federal agencies.--
``(A) In general.--Notwithstanding
subsection (d), a Federal agency shall not be
eligible to receive any payment, benefit, or
loan under title I of the Food, Conservation,
and Energy Act of 2008 or title XII of this
Act.
``(B) Land rental.--A lessee of land owned
by a Federal agency may receive a payment
described in subsection (b), (c), or (d) if the
lessee otherwise meets all applicable criteria.
``(6) State and local governments.--
``(A) In general.--Notwithstanding
subsection (d), except as provided in
subsection (g), a State or local government, or
political subdivision or agency of the
government, shall not be eligible to receive
any payment, benefit, or loan under title I of
the Food, Conservation, and Energy Act of 2008
or title XII of this Act.
``(B) Tenants.--A lessee of land owned by a
State or local government, or political
subdivision or agency of the government, may
receive payments described in subsections (b),
(c), and (d) if the lessee otherwise meets all
applicable criteria.
``(7) Changes in farming operations.--
``(A) In general.--In the administration of
this section through section 1001F, the
Secretary may not approve any change in a
farming operation that otherwise will increase
the number of persons to which the limitations
under this section are applied unless the
Secretary determines that the change is bona
fide and substantive.
``(B) Family members.--The addition of a
family member to a farming operation under the
criteria set out in section 1001A shall be
considered a bona fide and substantive change
in the farming operation.
``(8) Death of owner.--
``(A) In general.--If any ownership
interest in land or a commodity is transferred
as the result of the death of a program
participant, the new owner of the land or
commodity may, if the person is otherwise
eligible to participate in the applicable
program, succeed to the contract of the prior
owner and receive payments subject to this
section without regard to the amount of
payments received by the new owner.
``(B) Limitations on prior owner.--Payments
made under this paragraph shall not exceed the
amount to which the previous owner was entitled
to receive under the terms of the contract at
the time of the death of the prior owner.
``(g) Public Schools.--
``(1) In general.--Notwithstanding subsection
(f)(6)(A), a State or local government, or political
subdivision or agency of the government, shall be
eligible, subject to the limitation in paragraph (2),
to receive a payment described in subsection (b) or (c)
for land owned by the State or local government, or
political subdivision or agency of the government, that
is used to maintain a public school.
``(2) Limitation.--
``(A) In general.--For each State, the
total amount of payments described in
subsections (b) and (c) that are received
collectively by the State and local government
and all political subdivisions or agencies of
those governments shall not exceed $500,000.
``(B) Exception.--The limitation in
subparagraph (A) shall not apply to States with
a population of less than 1,500,000.''.
(c) Repeal of 3-Entity Rule.--Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1) is amended--
(1) in the section heading, by striking
``prevention of creation of entities to qualify as
separate persons'' and inserting ``notification of
interests''; and
(2) by striking subsection (a) and inserting the
following:
``(a) Notification of Interests.--To facilitate
administration of section 1001 and this section, each person or
legal entity receiving payments described in subsections (b)
and (c) of section 1001 as a separate person or legal entity
shall separately provide to the Secretary, at such times and in
such manner as prescribed by the Secretary--
``(1) the name and social security number of each
person, or the name and taxpayer identification number
of each legal entity, that holds or acquires an
ownership interest in the separate person or legal
entity; and
``(2) the name and taxpayer identification number
of each legal entity in which the person or legal
entity holds an ownership interest.''.
(d) Amendment for Consistency.--Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking
subsection (b) and inserting the following:
``(b) Actively Engaged.--
``(1) In general.--To be eligible to receive a
payment described in subsection (b) or (c) of section
1001, a person or legal entity shall be actively
engaged in farming with respect to a farming operation
as provided in this subsection or subsection (c).
``(2) Classes actively engaged.--Except as provided
in subsections (c) and (d)--
``(A) a person (including a person
participating in a farming operation as a
partner in a general partnership, a participant
in a joint venture, a grantor of a revocable
trust, or a participant in a similar entity, as
determined by the Secretary) shall be
considered to be actively engaged in farming
with respect to a farming operation if--
``(i) the person makes a
significant contribution (based on the
total value of the farming operation)
to the farming operation of--
``(I) capital, equipment,
or land; and
``(II) personal labor or
active personal management;
``(ii) the person's share of the
profits or losses from the farming
operation is commensurate with the
contributions of the person to the
farming operation; and
``(iii) the contributions of the
person are at risk;
``(B) a legal entity that is a corporation,
joint stock company, association, limited
partnership, charitable organization, or other
similar entity determined by the Secretary
(including any such legal entity participating
in the farming operation as a partner in a
general partnership, a participant in a joint
venture, a grantor of a revocable trust, or as
a participant in a similar legal entity as
determined by the Secretary) shall be
considered as actively engaged in farming with
respect to a farming operation if--
``(i) the legal entity separately
makes a significant contribution (based
on the total value of the farming
operation) of capital, equipment, or
land;
``(ii) the stockholders or members
collectively make a significant
contribution of personal labor or
active personal management to the
operation; and
``(iii) the standards provided in
clauses (ii) and (iii) of subparagraph
(A), as applied to the legal entity,
are met by the legal entity;
``(C) if a legal entity that is a general
partnership, joint venture, or similar entity,
as determined by the Secretary, separately
makes a significant contribution (based on the
total value of the farming operation involved)
of capital, equipment, or land, and the
standards provided in clauses (ii) and (iii) of
subparagraph (A), as applied to the legal
entity, are met by the legal entity, the
partners or members making a significant
contribution of personal labor or active
personal management shall be considered to be
actively engaged in farming with respect to the
farming operation involved; and
``(D) in making determinations under this
subsection regarding equipment and personal
labor, the Secretary shall take into
consideration the equipment and personal labor
normally and customarily provided by farm
operators in the area involved to produce
program crops.
``(c) Special Classes Actively Engaged.--
``(1) Landowner.--A person or legal entity that is
a landowner contributing the owned land to a farming
operation shall be considered to be actively engaged in
farming with respect to the farming operation if--
``(A) the landowner receives rent or income
for the use of the land based on the production
on the land or the operating results of the
operation; and
``(B) the person or legal entity meets the
standards provided in clauses (ii) and (iii) of
subsection (b)(2)(A).
``(2) Adult family member.--If a majority of the
participants in a farming operation are family members,
an adult family member shall be considered to be
actively engaged in farming with respect to the farming
operation if the person--
``(A) makes a significant contribution,
based on the total value of the farming
operation, of active personal management or
personal labor; and
``(B) with respect to such contribution,
meets the standards provided in clauses (ii)
and (iii) of subsection (b)(2)(A).
``(3) Sharecropper.--A sharecropper who makes a
significant contribution of personal labor to a farming
operation shall be considered to be actively engaged in
farming with respect to the farming operation if the
contribution meets the standards provided in clauses
(ii) and (iii) of subsection (b)(2)(A).
``(4) Growers of hybrid seed.--In determining
whether a person or legal entity growing hybrid seed
under contract shall be considered to be actively
engaged in farming, the Secretary shall not take into
consideration the existence of a hybrid seed contract.
``(5) Custom farming services.--
``(A) In general.--A person or legal entity
receiving custom farming services shall be
considered separately eligible for payment
limitation purposes if the person or legal
entity is actively engaged in farming based on
subsection (b)(2) or paragraphs (1) through (4)
of this subsection.
``(B) Prohibition.--No other rules with
respect to custom farming shall apply.
``(6) Spouse.--If 1 spouse (or estate of a deceased
spouse) is determined to be actively engaged, the other
spouse shall be determined to have met the requirements
of subsection (b)(2)(A)(i)(II).
``(d) Classes Not Actively Engaged.--
``(1) Cash rent landlord.--A landlord contributing
land to a farming operation shall not be considered to
be actively engaged in farming with respect to the
farming operation if the landlord receives cash rent,
or a crop share guaranteed as to the amount of the
commodity to be paid in rent, for the use of the land.
``(2) Other persons and legal entities.--Any other
person or legal entity that the Secretary determines
does not meet the standards described in subsections
(b)(2) and (c) shall not be considered to be actively
engaged in farming with respect to a farming
operation.''.
(e) Denial of Program Benefits.--Section 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308-2) is amended to read as
follows:
``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.
``(a) 2-Year Denial of Program Benefits.--A person or legal
entity shall be ineligible to receive payments specified in
subsections (b) and (c) of section 1001 for the crop year, and
the succeeding crop year, in which the Secretary determines
that the person or legal entity--
``(1) failed to comply with section 1001A(b) and
adopted or participated in adopting a scheme or device
to evade the application of section 1001, 1001A, or
1001C; or
``(2) intentionally concealed the interest of the
person or legal entity in any farm or legal entity
engaged in farming.
``(b) Extended Ineligibility.--If the Secretary determines
that a person or legal entity, for the benefit of the person or
legal entity or the benefit of any other person or legal
entity, has knowingly engaged in, or aided in the creation of a
fraudulent document, failed to disclose material information
relevant to the administration of sections 1001 through 1001F,
or committed other equally serious actions (as identified in
regulations issued by the Secretary), the Secretary may for a
period not to exceed 5 crop years deny the issuance of payments
to the person or legal entity.
``(c) Pro Rata Denial.--
``(1) In general.--Payments otherwise owed to a
person or legal entity described in subsections (a) or
(b) shall be denied in a pro rata manner based on the
ownership interest of the person or legal entity in a
farm.
``(2) Cash rent tenant.--Payments otherwise payable
to a person or legal entity shall be denied in a pro
rata manner if the person or legal entity is a cash
rent tenant on a farm owned or under the control of a
person or legal entity with respect to which a
determination has been made under subsection (a) or
(b).
``(d) Joint and Several Liability.--Any legal entity
(including partnerships and joint ventures) and any member of
any legal entity determined to have knowingly participated in a
scheme or device to evade, or that has the purpose of evading,
sections 1001, 1001A, or 1001C shall be jointly and severally
liable for any amounts that are payable to the Secretary as the
result of the scheme or device (including amounts necessary to
recover those amounts).
``(e) Release.--The Secretary may partially or fully
release from liability any person or legal entity who
cooperates with the Secretary in enforcing sections 1001,
1001A, and 1001C, and this section.''
(f) Conforming Amendment To Apply Direct Attribution to
NAP.--
(1) In general.--Section 196(i) of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(i)) is amended--
(A) by striking paragraphs (1) and (2) and
inserting the following:
``(1) Definitions.--In this subsection, the terms
`legal entity' and `person' have the meanings given
those terms in section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308(a)).
``(2) Payment limitation.--The total amount of
payments received, directly or indirectly, by a person
or legal entity (excluding a joint venture or general
partnership) for any crop year may not exceed
$100,000.'';
(B) by striking paragraph (4) and inserting
the following:
``(4) Adjusted gross income limitation.--A person
or legal entity that has an average adjusted gross
income in excess of the average adjusted gross income
limitation applicable under section 1001D(b)(1)(A) of
the Food Security Act of 1985 (7 U.S.C. 1308-
3a(b)(1)(A)), or a successor provision, shall not be
eligible to receive noninsured crop disaster assistance
under this section.''; and
(C) in paragraph (5)--
(i) by striking ``necessary to
ensure'' and inserting ``necessary--
``(A) to ensure''; and
(ii) by striking ``this
subsection.'' and inserting the
following: ``this subsection; and
``(B) to ensure that payments under this
section are attributed to a person or legal
entity (excluding a joint venture or general
partnership) in accordance with the terms and
conditions of sections 1001 through 1001D of
the Food Security Act of 1985 (7 U.S.C. 1308 et
seq.), as determined by the Secretary.''.
(2) Transition.--Section 196(i) of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(i)), as in effect on September 30, 2007,
shall apply with respect to the 2007 and 2008 crops of
any eligible crop.
(g) Conforming Amendments.--
(1) Section 1009(e) of the Food Security Act of
1985 (7 U.S.C. 1308a(e)) is amended in the second
sentence by striking ``of $50,000''.
(2) Section 609(b)(1) of the Emergency Livestock
Feed Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is
amended by inserting ``(before the amendment made by
section 1703(a) of the Food, Conservation, and Energy
Act of 2008)'' after ``1985''.
(3) Section 524(b)(3) of the Federal Crop Insurance
Act (7 U.S.C. 1524(b)(3)) is amended by inserting
``(before the amendment made by section 1703(a) of the
Food, Conservation, and Energy Act of 2008)'' after
``1308(5)))''.
(4) Section 10204(c)(1) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is
amended by inserting ``(before the amendment made by
section 1703(a) of the Food, Conservation, and Energy
Act of 2008)'' after ``1308)''.
(5) Section 1271(c)(3)(A) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C.
2106a(c)(3)(A)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food,
Conservation, and Energy Act of 2008)'' after
``1308)''.
(6) Section 291(2) of the Trade Act of 1974 (19
U.S.C. 2401(2)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food,
Conservation, and Energy Act of 2008)'' before the
period at the end.
(h) Transition.--Section 1001, 1001A, and 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in
effect on September 30, 2007, shall continue to apply with
respect to the 2007 and 2008 crops of any covered commodity or
peanuts.
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.
(a) In General.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a(e)) is amended to read as follows:
``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.
``(a) Definitions.--
``(1) In general.--In this section:
``(A) Average adjusted gross income.--The
term `average adjusted gross income', with
respect to a person or legal entity, means the
average of the adjusted gross income or
comparable measure of the person or legal
entity over the 3 taxable years preceding the
most immediately preceding complete taxable
year, as determined by the Secretary.
``(B) Average adjusted gross farm income.--
The term `average adjusted gross farm income',
with respect to a person or legal entity, means
the average of the portion of adjusted gross
income of the person or legal entity that is
attributable to activities related to farming,
ranching, or forestry for the 3 taxable years
described in subparagraph (A), as determined by
the Secretary in accordance with subsection
(c).
``(C) Average adjusted gross nonfarm
income.--The term `average adjusted gross
nonfarm income', with respect to a person or
legal entity, means the difference between--
``(i) the average adjusted gross
income of the person or legal entity;
and
``(ii) the average adjusted gross
farm income of the person or legal
entity.
``(2) Special rules for certain persons and legal
entities.--In the case of a legal entity that is not
required to file a Federal income tax return or a
person or legal entity that did not have taxable income
in 1 or more of the taxable years used to determine the
average under subparagraph (A) or (B) of paragraph (1),
the Secretary shall provide, by regulation, a method
for determining the average adjusted gross income, the
average adjusted gross farm income, and the average
adjusted gross nonfarm income of the person or legal
entity for purposes of this section.
``(3) Allocation of income.--On the request of any
person filing a joint tax return, the Secretary shall
provide for the allocation of average adjusted gross
income, average adjusted gross farm income, and average
adjusted gross nonfarm income among the persons filing
the return if--
``(A) the person provides a certified
statement by a certified public accountant or
attorney that specifies the method by which the
average adjusted gross income, average adjusted
gross farm income, and average adjusted gross
nonfarm income would have been declared and
reported had the persons filed 2 separate
returns; and
``(B) the Secretary determines that the
method described in the statement is consistent
with the information supporting the filed joint
tax return.
``(b) Limitations.--
``(1) Commodity programs.--
``(A) Nonfarm limitation.--Notwithstanding
any other provision of law, a person or legal
entity shall not be eligible to receive any
benefit described in subparagraph (C) during a
crop, fiscal, or program year, as appropriate,
if the average adjusted gross nonfarm income of
the person or legal entity exceeds $500,000.
``(B) Farm limitation.--Notwithstanding any
other provision of law, a person or legal
entity shall not be eligible to receive a
direct payment under subtitle A or C of title I
of the Food, Conservation, and Energy Act of
2008 during a crop year, if the average
adjusted gross farm income of the person or
legal entity exceeds $750,000.
``(C) Covered benefits.--Subparagraph (A)
applies with respect to the following:
``(i) A direct payment or counter-
cyclical payment under subtitle A or C
of title I of the Food, Conservation,
and Energy Act of 2008 or an average
crop revenue election payment under
subtitle A of title I of that Act.
``(ii) A marketing loan gain or
loan deficiency payment under subtitle
B or C of title I of the Food,
Conservation, and Energy Act of 2008.
``(iii) A payment or benefit under
section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7
U.S.C. 7333).
``(iv) A payment or benefit under
section 1506 of the Food, Conservation,
and Energy Act of 2008.
``(v) A payment or benefit under
title IX of the Trade Act of 1974 or
subtitle B of the Federal Crop
Insurance Act.
``(2) Conservation programs.--
``(A) Limits.--
``(i) In general.--Notwithstanding
any other provision of law, except as
provided in clause (ii), a person or
legal entity shall not be eligible to
receive any benefit described in
subparagraph (B) during a crop, fiscal,
or program year, as appropriate, if the
average adjusted gross nonfarm income
of the person or legal entity exceeds
$1,000,000, unless not less than 66.66
percent of the average adjusted gross
income of the person or legal entity is
average adjusted gross farm income.
``(ii) Exception.--The Secretary
may waive the limitation established
under clause (i) on a case-by-case
basis if the Secretary determines that
environmentally sensitive land of
special significance would be
protected.
``(B) Covered benefits.--Subparagraph (A)
applies with respect to the following:
``(i) A payment or benefit under
title XII of this Act.
``(ii) A payment or benefit under
title II of the Farm Security and Rural
Investment Act of 2002 (Public Law 107-
171; 116 Stat. 223) or title II of the
Food, Conservation, and Energy Act of
2008.
``(iii) A payment or benefit under
section 524(b) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)).
``(c) Income Determination.--
``(1) In general.--In determining the average
adjusted gross farm income of a person or legal entity,
the Secretary shall include income or benefits derived
from or related to--
``(A) the production of crops, including
specialty crops (as defined in section 3 of the
Specialty Crops Competitiveness Act of 2004 (7
U.S.C. 1621 note; Public Law 108-465)) and
unfinished raw forestry products;
``(B) the production of livestock
(including cattle, elk, reindeer, bison,
horses, deer, sheep, goats, swine, poultry,
fish, and other aquacultural products used for
food, honeybees, and other animals designated
by the Secretary) and products produced by, or
derived from, livestock;
``(C) the production of farm-based
renewable energy (as defined in section 9001 of
the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8101));
``(D) the sale, including the sale of
easements and development rights, of farm,
ranch, or forestry land, water or hunting
rights, or environmental benefits;
``(E) the rental or lease of land or
equipment used for farming, ranching, or
forestry operations, including water or hunting
rights;
``(F) the processing (including packing),
storing (including shedding), and transporting
of farm, ranch, and forestry commodities,
including renewable energy;
``(G) the feeding, rearing, or finishing of
livestock;
``(H) the sale of land that has been used
for agriculture;
``(I) payments or other benefits received
under any program authorized under title I of
the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7901 et seq.) or title I of the
Food, Conservation, and Energy Act of 2008;
``(J) payments or other benefits received
under any program authorized under title XII of
this Act, title II of the Farm Security and
Rural Investment Act of 2002 (Public Law 107-
171; 116 Stat. 223), or title II of the Food,
Conservation, and Energy Act of 2008;
``(K) payments or other benefits received
under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7333);
``(L) payments or other benefits received
under title IX of the Trade Act of 1974 or
subtitle B of the Federal Crop Insurance Act;
``(M) risk management practices, including
benefits received under a program authorized
under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) (including a catastrophic risk
protection plan offered under section 508(b) of
that Act (7 U.S.C. 1508(b))); and
``(N) any other activity related to
farming, ranching, or forestry, as determined
by the Secretary.
``(2) Income derived from farming, ranching, or
forestry.--In determining the average adjusted gross
farm income of a person or legal entity, in addition to
the inclusions described in paragraph (1), the
Secretary shall include any income reported on the
Schedule F or other schedule used by the person or
legal entity to report income from farming, ranching,
or forestry operations to the Internal Revenue Service,
to the extent such income is not already included under
paragraph (1).
``(3) Special rule.--If not less than 66.66 percent
of the average adjusted gross income of a person or
legal entity is derived from farming, ranching, or
forestry operations described in paragraphs (1) and
(2), in determining the average adjusted gross farm
income of the person or legal entity, the Secretary
shall also include--
``(A) the sale of equipment to conduct
farm, ranch, or forestry operations; and
``(B) the provision of production inputs
and services to farmers, ranchers, foresters,
and farm operations.
``(d) Enforcement.--
``(1) In general.--To comply with subsection (b),
at least once every 3 years a person or legal entity
shall provide to the Secretary--
``(A) a certification by a certified public
accountant or another third party that is
acceptable to the Secretary that the average
adjusted gross income, average adjusted gross
farm income, and average adjusted gross nonfarm
income of the person or legal entity does not
exceed the applicable limitation specified in
that subsection; or
``(B) information and documentation
regarding the average adjusted gross income,
average adjusted gross farm income, and average
adjusted gross nonfarm income of the person or
legal entity through other procedures
established by the Secretary.
``(2) Denial of program benefits.--If the Secretary
determines that a person or legal entity has failed to
comply with this section, the Secretary shall deny the
issuance of applicable payments and benefits specified
in paragraphs (1)(C) and (2)(B) of subsection (b) to
the person or legal entity, under similar terms and
conditions as described in section 1001B.
``(3) Audit.--The Secretary shall establish
statistically valid procedures under which the
Secretary shall conduct targeted audits of such persons
or legal entities as the Secretary determines are most
likely to exceed the limitations under subsection (b).
``(e) Commensurate Reduction.--In the case of a payment or
benefit described in paragraphs (1)(C) and (2)(B) of subsection
(b) made in a crop, program, or fiscal year, as appropriate, to
an entity, general partnership, or joint venture, the amount of
the payment or benefit shall be reduced by an amount that is
commensurate with the direct and indirect ownership interest in
the entity, general partnership, or joint venture of each
person who has an average adjusted gross income, average
adjusted gross farm income, or average adjusted gross nonfarm
income in excess of the applicable limitation specified in
subsection (b).
``(f) Effective Period.--This section shall apply only
during the 2009 through 2012 crop, program, or fiscal years, as
appropriate.''.
(b) Transition.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a), as in effect on September 30, 2007,
shall apply with respect to the 2007 and 2008 crop, fiscal, or
program year, as appropriate, for each program described in
paragraphs (1)(C) and (2)(B) of subsection (b) of that section
(as amended by subsection (a)).
SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COVERED
OILSEED PRODUCERS.
(a) Incentive Payments Required.--Subject to subsection (b)
and the availability of appropriations under subsection (h),
the Secretary shall use funds made available under subsection
(h) to provide quality incentive payments for the production of
oilseeds with specialized traits that enhance human health, as
determined by the Secretary.
(b) Covered Oilseeds.--The Secretary shall make payments
under this section only for the production of an oilseed
variety that has, as determined by the Secretary--
(1) been demonstrated to improve the health profile
of the oilseed for use in human consumption by--
(A) reducing or eliminating the need to
partially hydrogenate the oil derived from the
oilseed for use in human consumption; or
(B) adopting new technology traits; and
(2) 1 or more impediments to commercialization.
(c) Request for Proposals.--
(1) Issuance.--If funds are made available to carry
out this section for a crop year, the Secretary shall
issue a request for proposals for payments under this
section.
(2) Multiyear proposals.--A proponent may submit a
multiyear proposal for payments under this section.
(3) Content of proposals.--A proposal for payments
under this section shall include a description of--
(A) how use of the oilseed enhances human
health;
(B) the impediments to commercial use of
the oilseed;
(C) each oilseed variety described in
subsection (b) and the value of the oilseed
variety as a matter of public policy;
(D) a range for the base price and premiums
per bushel or hundredweight to be paid to
producers;
(E) a per bushel or hundredweight amount of
incentive payments requested for each year
under this section that does not exceed \1/3\
of the total premium offered for any year;
(F) the period of time, not to exceed 4
years, during which incentive payments are to
be provided to producers; and
(G) the targeted total quantity of
production and estimated acres needed to
produce the targeted quantity for each year
under this section.
(d) Contracts for Production.--
(1) In general.--The Secretary shall approve
successful proposals submitted under subsection (c) on
a timely basis.
(2) Timing of payments.--The Secretary shall make
payments to producers under this section after the
Secretary receives documentation that the premium
required under a contract has been paid to covered
producers.
(e) Administration.--
(1) In general.--If funding provided for a crop
year is not fully allocated under the initial request
for proposals under subsection (c), the Secretary shall
issue additional requests for proposals for subsequent
crop years under this section.
(2) Prorated payments.--If funding provided for a
crop year is less than the amount otherwise approved by
the Secretary or for which approval is sought, the
Secretary shall prorate the payments or approvals in a
manner determined by the Secretary so that the total
payments do not exceed the funding level.
(f) Proprietary Information.--The Secretary shall protect
proprietary information provided to the Secretary for the
purpose of administering this section.
(g) Program Compliance and Penalties.--
(1) Guarantee.--The proponent, if approved, shall
be required to guarantee that the oilseed on which a
payment is made by the Secretary under this section is
used for human consumption as described in the
proposal, as approved by the Secretary.
(2) Noncompliance.--If oilseeds on which a payment
is made by the Secretary under this section are not
actually used for the purpose the payment is made, the
proponent shall be required to pay to the Secretary an
amount equal to, as determined by the Secretary--
(A) in the case of an inadvertent failure,
twice the amount of the payment made by the
Secretary under this section to the producer of
the oilseeds; and
(B) in any other case, up to twice the full
value of the oilseeds involved.
(3) Documentation.--The Secretary may require such
assurances and documentation as may be needed to
enforce the guarantee.
(4) Additional penalties.--
(A) In general.--In addition to payments
required under paragraph (2), the Secretary may
impose penalties on additional persons that use
oilseeds the use of which is restricted under
this section for a purpose other than the
intended use.
(B) Amount.--The amount of a penalty under
this paragraph shall--
(i) be in an amount determined
appropriated by the Secretary; but
(ii) not to exceed twice the full
value of the oilseeds.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2009 through 2012.
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking ``and
title I of the Farm Security and Rural Investment Act of 2002''
each place it appears and inserting ``title I of the Farm
Security and Rural Investment Act of 2002, and title I of the
Food, Conservation, and Energy Act of 2008''.
SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING
LOANS.
Section 166 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7286) is amended--
(1) by striking ``and subtitle B and C of title I
of the Farm Security and Rural Investment Act of 2002''
each place it appears and inserting ``, title I of the
Farm Security and Rural Investment Act of 2002, and
title I of the Food, Conservation, and Energy Act of
2008''; and
(2) in subsection (c), by adding at the end the
following:
``(3) Termination of authority.--The authority to
carry out paragraph (1) terminates effective ending
with the 2009 crop year.''.
SEC. 1608. ASSIGNMENT OF PAYMENTS.
(a) In General.--The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)),
relating to assignment of payments, shall apply to payments
made under this title.
(b) Notice.--The producer making the assignment, or the
assignee, shall provide the Secretary with notice, in such
manner as the Secretary may require, of any assignment made
under this section.
SEC. 1609. TRACKING OF BENEFITS.
As soon as practicable after the date of enactment of this
Act, the Secretary may track the benefits provided, directly or
indirectly, to individuals and entities under titles I and II
and the amendments made by those titles.
SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.
Section 15 of the Agricultural Marketing Act (12 U.S.C.
1141j) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e) through (g) as
subsections (d) through (f), respectively.
SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER
FARM COMMODITY PROGRAMS.
(a) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall promulgate
regulations that--
(1) describe the circumstances under which, in
order to allow for the settlement of estates and for
related purposes, payments may be issued in the name of
a deceased individual; and
(2) preclude the issuance of payments to, and on
behalf of, deceased individuals that were not eligible
for the payments.
(b) Coordination.--At least twice each year, the Secretary
shall reconcile the social security numbers of all individuals
who receive payments under this title, whether directly or
indirectly, with the Social Security Administration to
determine if the individuals are alive.
SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible hard white wheat seed.--The term
``eligible hard white wheat seed'' means hard white
wheat seed that, as determined by the Secretary, is--
(A) certified;
(B) of a variety that is suitable for the
State in which the seed will be planted;
(C) rated at least superior with respect to
quality; and
(D) specifically approved under a seed
establishment program established by the State
Department of Agriculture and the State Wheat
Commission of the 1 or more States in which the
seed will be planted.
(2) Program.--The term ``program'' means the hard
white wheat development program established under
subsection (b)(1).
(3) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture, in consultation with the
State Departments of Agriculture and the State Wheat
Commissions of the States in regions in which hard
white wheat is produced, as determined by the
Secretary.
(b) Establishment.--
(1) In general.--Subject to the availability of
appropriations, the Secretary shall establish a hard
white wheat development program in accordance with
paragraph (2) to promote the establishment of hard
white wheat as a viable market class of wheat in the
United States by encouraging production of at least
240,000,000 bushels of hard white wheat by 2012.
(2) Payments.--
(A) In general.--Subject to subparagraphs
(B) and (C) and subsection (c), if funds are
made available for any of the 2009 through 2012
crops of hard white wheat, the Secretary shall
make available incentive payments to producers
of those crops.
(B) Acreage limitation.--The Secretary
shall carry out subparagraph (A) subject to a
regional limitation determined by the Secretary
on the number of acres for which payments may
be received that takes into account planting
history and potential planting, but does not
exceed a total of 2,900,000 acres or the
equivalent volume of production based on a
yield of 50 bushels per acre.
(C) Payment limitations.--Payments to
producers on a farm described in subparagraph
(A) shall be--
(i) in an amount that is not less
than $0.20 per bushel; and
(ii) in an amount that is not less
than $2.00 per acre for planting
eligible hard white wheat seed.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $35,000,000 for
the period of fiscal years 2009 through 2012.
SEC. 1613. DURUM WHEAT QUALITY PROGRAM.
(a) In General.--Subject to the availability of funds under
subsection (c), the Secretary shall provide compensation to
producers of durum wheat in an amount not to exceed 50 percent
of the actual cost of fungicides applied to a crop of durum
wheat of the producers to control Fusarium head blight (wheat
scab) on acres certified to have been planted to Durum wheat in
a crop year.
(b) Insufficient Funds.--If the total amount of funds
appropriated for a fiscal year under subsection (c) are
insufficient to fulfill all eligible requests for compensation
under this section, the Secretary shall prorate the
compensation payments in a manner determined by the Secretary
to be equitable.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2009 through 2012.
SEC. 1614. STORAGE FACILITY LOANS.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a storage
facility loan program to provide funds for producers of grains,
oilseeds, pulse crops, hay, renewable biomass, and other
storable commodities (other than sugar), as determined by the
Secretary, to construct or upgrade storage and handling
facilities for the commodities.
(b) Eligible Producers.--A storage facility loan under this
section shall be made available to any producer described in
subsection (a) that, as determined by the Secretary--
(1) has a satisfactory credit history;
(2) has a need for increased storage capacity; and
(3) demonstrates an ability to repay the loan.
(c) Term of Loans.--A storage facility loan under this
section shall have a maximum term of 12 years.
(d) Loan Amount.--The maximum principal amount of a storage
facility loan under this section shall be $500,000.
(e) Loan Disbursements.--The Secretary shall provide for 1
partial disbursement of loan principal and 1 final disbursement
of loan principal, as determined to be appropriate and subject
to acceptable documentation, to facilitate the purchase and
construction of eligible facilities.
(f) Loan Security.--Approval of a storage facility loan
under this section shall--
(1) require the borrower to provide loan security
to the Secretary, in the form of--
(A) a lien on the real estate parcel on
which the storage facility is located; or
(B) such other security as is acceptable to
the Secretary;
(2) under such rules and regulations as the
Secretary may prescribe, not require a severance
agreement from the holder of any prior lien on the real
estate parcel on which the storage facility is located,
if the borrower--
(A) agrees to increase the down payment on
the storage facility by an amount determined
appropriate by the Secretary; or
(B) provides other security acceptable to
the Secretary; and
(3) allow a borrower, upon the approval of the
Secretary, to define a subparcel of real estate as
security for the storage facility loan if the subparcel
is--
(A) of adequate size and value to
adequately secure the loan; and
(B) not subject to any other liens or
mortgages that are superior to the lien
interest of the Commodity Credit Corporation.
SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES.
Section 8(b)(5)(B)(ii) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is
amended--
(1) by redesignating subclauses (I) and (II) as
items (aa) and (bb), respectively, and indenting
appropriately;
(2) in the matter preceding item (aa) (as
redesignated by paragraph (1)), by striking ``A
committee established'' and inserting the following:
``(I) In general.--Except
as provided in subclause (II),
a committee established''; and
(3) by adding at the end the following:
``(II) Combination or
consolidation of areas.--A
committee established by
combining or consolidating 2 or
more county or area committees
shall consist of not fewer than
3 nor more than 11 members
that--
``(aa) are fairly
representative of the
agricultural producers
within the area covered
by the county, area, or
local committee; and
``(bb) are elected
by the agricultural
producers that
participate or
cooperate in programs
administered within the
area under the
jurisdiction of the
county, area, or local
committee.
``(III) Representation of
socially disadvantaged farmers
and ranchers.--The Secretary
shall develop procedures to
maintain representation of
socially disadvantaged farmers
and ranchers on combined or
consolidated committees.
``(IV) Eligibility for
membership.--Notwithstanding
any other producer eligibility
requirements for service on
county or area committees, if a
county or area is consolidated
or combined, a producer shall
be eligible to serve only as a
member of the county or area
committee that the producer
elects to administer the farm
records of the producer.''.
SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES.
Public Law 108-470 (7 U.S.C. 7416a) is amended--
(1) in subsection (a), by striking ``may'' and
inserting ``shall''; and
(2) by adding at the end the following:
``(c) Prohibition on Charging Certain Fees.--The Secretary
may not charge any fees or related costs for the collection of
commodity assessments pursuant to this Act.''.
SEC. 1617. SIGNATURE AUTHORITY.
(a) In General.--In carrying out this title and title II
and amendments made by those titles, if the Secretary approves
a document, the Secretary shall not subsequently determine the
document is inadequate or invalid because of the lack of
authority of any person signing the document on behalf of the
applicant or any other individual, entity, general partnership,
or joint venture, or the documents relied upon were determined
inadequate or invalid, unless the person signing the program
document knowingly and willfully falsified the evidence of
signature authority or a signature.
(b) Affirmation.--
(1) In general.--Nothing in this section prohibits
the Secretary from asking a proper party to affirm any
document that otherwise would be considered approved
under subsection (a).
(2) No retroactive effect.--A denial of benefits
based on a lack of affirmation under paragraph (1)
shall not be retroactive with respect to third-party
producers who were not the subject of the erroneous
representation of authority, if the third-party
producers--
(A) relied on the prior approval by the
Secretary of the documents in good faith; and
(B) substantively complied with all program
requirements.
SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall transmit to the Committee on
Agriculture and the Committee on Appropriations of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry and the Committee on Appropriations of the Senate
a report prepared by a third party that describes--
(1) the data processing and information technology
challenges experienced in local offices of the Farm
Service Agency;
(2) the impact of those challenges on service to
producers, on efficiency of personnel, and on
implementation of this Act;
(3) the need for information technology system
upgrades of the Farm Service Agency relative to other
agencies of the Department of Agriculture;
(4) the detailed plan needed to fulfill the needs
of the Department that are identified in paragraph (3),
including hardware, software, and infrastructure
requirements;
(5) the estimated cost and timeframe for long-term
modernization and stabilization of Farm Service Agency
information technology systems;
(6) the benefits associated with such modernization
and stabilization; and
(7) an evaluation of the existence of appropriate
oversight within the Department to ensure that funds
needed for systems upgrades can be appropriately
managed.
SEC. 1619. INFORMATION GATHERING.
(a) Geospatial Systems.--The Secretary shall ensure that
all the geospatial data of the agencies of the Department of
Agriculture are portable and standardized.
(b) Limitation on Disclosures.--
(1) Definition of agricultural operation.--In this
subsection, the term ``agricultural operation''
includes the production and marketing of agricultural
commodities and livestock.
(2) Prohibition.--Except as provided in paragraphs
(3) and (4), the Secretary, any officer or employee of
the Department of Agriculture, or any contractor or
cooperator of the Department, shall not disclose--
(A) information provided by an agricultural
producer or owner of agricultural land
concerning the agricultural operation, farming
or conservation practices, or the land itself,
in order to participate in programs of the
Department; or
(B) geospatial information otherwise
maintained by the Secretary about agricultural
land or operations for which information
described in subparagraph (A) is provided.
(3) Authorized disclosures.--
(A) Limited release of information.--If the
Secretary determines that the information
described in paragraph (2) will not be
subsequently disclosed except in accordance
with paragraph (4), the Secretary may release
or disclose the information to a person or
Federal, State, local, or tribal agency working
in cooperation with the Secretary in any
Department program--
(i) when providing technical or
financial assistance with respect to
the agricultural operation,
agricultural land, or farming or
conservation practices; or
(ii) when responding to a disease
or pest threat to agricultural
operations, if the Secretary determines
that a threat to agricultural
operations exists and the disclosure of
information to a person or cooperating
government entity is necessary to
assist the Secretary in responding to
the disease or pest threat as
authorized by law.
(4) Exceptions.--Nothing in this subsection
affects--
(A) the disclosure of payment information
(including payment information and the names
and addresses of recipients of payments) under
any Department program that is otherwise
authorized by law;
(B) the disclosure of information described
in paragraph (2) if the information has been
transformed into a statistical or aggregate
form without naming any--
(i) individual owner, operator, or
producer; or
(ii) specific data gathering site;
or
(C) the disclosure of information described
in paragraph (2) pursuant to the consent of the
agricultural producer or owner of agricultural
land.
(5) Condition of other programs.--The participation
of the agricultural producer or owner of agricultural
land in, or receipt of any benefit under, any program
administered by the Secretary may not be conditioned on
the consent of the agricultural producer or owner of
agricultural land under paragraph (4)(C).
(6) Waiver of privilege or protection.--The
disclosure of information under paragraph (2) shall not
constitute a waiver of any applicable privilege or
protection under Federal law, including trade secret
protection.
SEC. 1620. LEASING OF OFFICE SPACE.
Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to the Committee on Agriculture
and the Committee on Appropriations of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry and the Committee on Appropriations of the Senate
a report that describes--
(1) the costs and time associated with complying
with leasing procedures of the General Services
Administration relative to the previous independent
leasing procedures of the Department of Agriculture;
(2) the additional staffing needs associated with
complying with those procedures; and
(3) the value added to the leasing process and the
ability of the Department to secure best-value leases
by complying with the General Services Administration
leasing procedures.
SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
(a) Definitions.--In this section:
(1) Agricultural commodity.--The term
``agricultural commodity'' has the meaning given the
term in section 102 of the Agricultural Trade Act of
1978 (7 U.S.C. 5602).
(2) Geographically disadvantaged farmer or
rancher.--The term ``geographically disadvantaged
farmer or rancher'' has the meaning given the term in
section 10906(a) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 2204 note; Public Law
107-171).
(b) Authorization.--Subject to the availability of funds
under subsection (d), the Secretary may provide geographically
disadvantaged farmers or ranchers direct reimbursement payments
for activities described in subsection (c).
(c) Transportation.--
(1) In general.--Subject to paragraphs (2) and (3),
the Secretary may provide direct reimbursement payments
to a geographically disadvantaged farmer or rancher to
transport an agricultural commodity, or inputs used to
produce an agricultural commodity, during a fiscal
year.
(2) Proof of eligibility.--To be eligible to
receive assistance under paragraph (1), a
geographically disadvantaged farmer or rancher shall
demonstrate to the Secretary that transportation of the
agricultural commodity or inputs occurred over a
distance of more than 30 miles, as determined by the
Secretary.
(3) Amount.--
(A) In general.--Subject to paragraph (2),
the amount of direct reimbursement payments
made to a geographically disadvantaged farmer
or rancher under this section for a fiscal year
shall equal the product obtained by
multiplying--
(i) the amount of costs incurred by
the geographically disadvantaged farmer
or rancher for transportation of the
agricultural commodity or inputs during
the fiscal year; and
(ii)(I) the percentage of the
allowance for that fiscal year under
section 5941 of title 5, United States
Code, for Federal employees stationed
in Alaska and Hawaii; or
(II) in the case of an insular area
(as defined in section 1404 of the
National Agricultural Research,
Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)), a comparable
percentage of the allowance for the
fiscal year, as determined by the
Secretary.
(B) Limitation.--The total amount of direct
reimbursement payments provided by the
Secretary under this section shall not exceed
$15,000,000 for a fiscal year.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2009 through 2012.
SEC. 1622. IMPLEMENTATION.
The Secretary shall make available to the Farm Service
Agency to carry out this title $50,000,000.
SEC. 1623. REPEALS.
(a) Commission on Application of Payment Limitations.--
Section 1605 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7993) is repealed.
(b) Renewed Availability of Market Loss Assistance and
Certain Emergency Assistance to Persons That Failed To Receive
Assistance Under Earlier Authorities.--Section 1617 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8000) is
repealed.
TITLE II--CONSERVATION
Subtitle A--Definitions and Highly Erodible Land and Wetland
Conservation
SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD SECURITY
ACT OF 1985.
(a) Beginning Farmer or Rancher.--Section 1201(a) of the
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
(1) by redesignating paragraphs (2) through (6),
(7) through (11), (12), (13) through (15), (16), (17),
and (18) as paragraphs (3) through (7), (9) through
(13), (15), (20) through (22), (24), (26), and (27),
respectively; and
(2) by inserting after paragraph (1) the following
new paragraph:
``(2) Beginning farmer or rancher.--The term
`beginning farmer or rancher' has the meaning given the
term in section 343(a)(8) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(8)).''.
(b) Farm.--Section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)) is amended by inserting after paragraph
(7), as redesignated by subsection (a)(1), the following new
paragraph:
``(8) Farm.--The term `farm' means a farm that--
``(A) is under the general control of one
operator;
``(B) has one or more owners;
``(C) consists of one or more tracts of
land, whether or not contiguous;
``(D) is located within a county or region,
as determined by the Secretary; and
``(E) may contain lands that are incidental
to the production of perennial crops, including
conserving uses, forestry, and livestock, as
determined by the Secretary.''.
(c) Indian Tribe.--Section 1201(a) of the Food Security Act
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after
paragraph (13), as redesignated by subsection (a)(1), the
following new paragraph:
``(14) Indian tribe.--The term `Indian tribe' has
the meaning given the term in section 4(e) of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b(e)).''.
(d) Integrated Pest Management; Livestock; Nonindustrial
Private Forest Land; Person and Legal Entity.--Section 1201(a)
of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended
by inserting after paragraph (15), as redesignated by
subsection (a)(1), the following new paragraphs:
``(16) Integrated pest management.--The term
`integrated pest management' means a sustainable
approach to managing pests by combining biological,
cultural, physical, and chemical tools in a way that
minimizes economic, health, and environmental risks.
``(17) Livestock.--The term `livestock' means all
animals raised on farms, as determined by the
Secretary.
``(18) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land,
as determined by the Secretary, that--
``(A) has existing tree cover or is
suitable for growing trees; and
``(B) is owned by any nonindustrial private
individual, group, association, corporation,
Indian tribe, or other private legal entity
that has definitive decisionmaking authority
over the land.
``(19) Person and legal entity.--For purposes of
applying payment limitations under subtitle D, the
terms `person' and `legal entity' have the meanings
given those terms in section 1001(a) of this Act (7
U.S.C. 1308(a)).''.
(e) Socially Disadvantaged Farmer or Rancher.--Section
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is
amended by inserting after paragraph (22), as redesignated by
subsection (a)(1), the following new paragraph:
``(23) Socially disadvantaged farmer or rancher.--
The term `socially disadvantaged farmer or rancher' has
the meaning given the term in section 2501(e)(2) of the
Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(e)(2)).''.
(f) Technical Assistance.--Section 1201(a) of the Food
Security Act of 1985 (16 U.S.C. 3801(a)) is amended by
inserting after paragraph (24), as redesignated by subsection
(a)(1), the following new paragraph:
``(25) Technical assistance.--The term `technical
assistance' means technical expertise, information, and
tools necessary for the conservation of natural
resources on land active in agricultural, forestry, or
related uses. The term includes the following:
``(A) Technical services provided directly
to farmers, ranchers, and other eligible
entities, such as conservation planning,
technical consultation, and assistance with
design and implementation of conservation
practices.
``(B) Technical infrastructure, including
activities, processes, tools, and agency
functions needed to support delivery of
technical services, such as technical
standards, resource inventories, training,
data, technology, monitoring, and effects
analyses.''.
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO HIGHLY
ERODIBLE LAND CONSERVATION.
Section 1212 of the Food Security Act of 1985 (16 U.S.C.
3812) is amended by striking subsection (f) and inserting the
following new subsection:
``(f) Graduated Penalties.--
``(1) Ineligibility.--No person shall become
ineligible under section 1211 for program loans,
payments, and benefits as a result of the failure of
the person to actively apply a conservation plan, if
the Secretary determines that the person has acted in
good faith and without an intent to violate this
subtitle.
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under
paragraph (1) shall be reviewed by the applicable--
``(A) State Executive Director, with the
technical concurrence of the State
Conservationist; or
``(B) district director, with the technical
concurrence of the area conservationist.
``(3) Period for implementation.--A person who
meets the requirements of paragraph (1) shall be
allowed a reasonable period of time, as determined by
the Secretary, but not to exceed 1 year, during which
to implement the measures and practices necessary to be
considered to be actively applying the conservation
plan of the person.
``(4) Penalties.--
``(A) Application.--This paragraph applies
if the Secretary determines that--
``(i) a person has failed to comply
with section 1211 with respect to
highly erodible cropland, and has acted
in good faith and without an intent to
violate section 1211; or
``(ii) the violation--
``(I) is technical and
minor in nature; and
``(II) has a minimal effect
on the erosion control purposes
of the conservation plan
applicable to the land on which
the violation has occurred.
``(B) Reduction.--If this paragraph applies
under subparagraph (A), the Secretary shall, in
lieu of applying the ineligibility provisions
of section 1211, reduce program benefits
described in section 1211 that the producer
would otherwise be eligible to receive in a
crop year by an amount commensurate with the
seriousness of the violation, as determined by
the Secretary.
``(5) Subsequent crop years.--Any person whose
benefits are reduced for any crop year under this
subsection shall continue to be eligible for all of the
benefits described in section 1211 for any subsequent
crop year if, prior to the beginning of the subsequent
crop year, the Secretary determines that the person is
actively applying a conservation plan according to the
schedule specified in the plan.''.
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO WETLAND
CONSERVATION.
Section 1222(h) of the Food Security Act of 1985 (16 U.S.C.
3822(h)) is amended--
(1) by redesignating paragraph (2) as paragraph
(3);
(2) by inserting after paragraph (1) the following
new paragraph:
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under
paragraph (1) shall be reviewed by the applicable--
``(A) State Executive Director, with the
technical concurrence of the State
Conservationist; or
``(B) district director, with the technical
concurrence of the area conservationist.''; and
(3) in paragraph (3) (as redesignated by paragraph
(1)), by inserting ``be'' before ``actively''.
Subtitle B--Conservation Reserve Program
SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.
Section 1231(a) of the Food Security Act of 1985 (16 U.S.C.
3831(a)) is amended--
(1) by striking ``2007 calendar year'' and
inserting ``2012 fiscal year''; and
(2) by inserting before the period the following:
``and to address issues raised by State, regional, and
national conservation initiatives''; and
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION RESERVE.
Section 1231(b) of the Food Security Act of 1985 (16 U.S.C.
3831(b)) is amended--
(1) in paragraph (1)(B)--
(A) by striking ``Farm Security and Rural
Investment Act of 2002'' and inserting ``Food,
Conservation, and Energy Act of 2008''; and
(B) by striking the period at the end and
inserting a semicolon; and
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``;
or'' and inserting a semicolon;
(B) in subparagraph (D), by striking
``and'' at the end and inserting ``or''; and
(C) in subparagraph (E), by inserting
``or'' after the semicolon at the end.
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION RESERVE.
Section 1231(d) of the Food Security Act of 1985 (16 U.S.C.
3831(d)) is amended--
(1) by striking ``2007 calendar years'' and
inserting ``2009 fiscal years'';
(2) by striking ``( 16 U.S.C.'' and inserting ``(16
U.S.C.''; and
(3) by adding at the end the following new
sentence: ``During fiscal years 2010, 2011, and 2012,
the Secretary may maintain up to 32,000,000 acres in
the conservation reserve at any 1 time.''.
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.
Section 1231(f) of the Food Security Act of 1985 (16 U.S.C.
3831(f)) is amended by striking ``the Chesapeake Bay Region
(Pennsylvania, Maryland, and Virginia)'' and inserting ``the
Chesapeake Bay Region''.
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.
Subsection (g) of section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended to read as follows:
``(g) Multi-Year Grasses and Legumes.--
``(1) In general.--For purposes of this subchapter,
alfalfa and other multi-year grasses and legumes in a
rotation practice, approved by the Secretary, shall be
considered agricultural commodities.
``(2) Cropping history.--Alfalfa, when grown as
part of a rotation practice, as determined by the
Secretary, is an agricultural commodity subject to the
cropping history criteria under subsection (b)(1)(B)
for the purpose of determining whether highly erodible
cropland has been planted or considered planted for 4
of the 6 years referred to in such subsection.''.
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER
ACREAGE IN CONSERVATION RESERVE.
(a) Revised Program.--
(1) In general.--Title XII of the Food Security Act
of 1985 is amended by inserting after section 1231 (16
U.S.C. 3831) the following new section:
``SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER
ACREAGE IN CONSERVATION RESERVE.
``(a) Program Required.--
``(1) In general.--During the 2008 through 2012
fiscal years, the Secretary shall carry out a program
in each State under which the Secretary shall enroll
eligible acreage described in subsection (b).
``(2) Participation among states.--The Secretary
shall ensure, to the maximum extent practicable, that
owners and operators in each State have an equitable
opportunity to participate in the program established
under this section.
``(b) Eligible Acreage.--
``(1) Wetland and related land.--Subject to
subsections (c) and (d), an owner or operator may
enroll in the conservation reserve, pursuant to the
program established under this section, land--
``(A) that is wetland (including a
converted wetland described in section
1222(b)(1)(A)) that had a cropping history
during at least 3 of the immediately preceding
10 crop years;
``(B) on which a constructed wetland is to
be developed that will receive flow from a row
crop agriculture drainage system and is
designed to provide nitrogen removal in
addition to other wetland functions;
``(C) that was devoted to commercial pond-
raised aquaculture in any year during the
period of calendar years 2002 through 2007; or
``(D) that, after January 1, 1990, and
before December 31, 2002, was--
``(i) cropped during at least 3 of
10 crop years; and
``(ii) subject to the natural
overflow of a prairie wetland.
``(2) Buffer acreage.--Subject to subsections (c)
and (d), an owner or operator may enroll in the
conservation reserve, pursuant to the program
established under this section, buffer acreage that--
``(A) with respect to land described in
subparagraph (A), (B), or (C) of paragraph
(1)--
``(i) is contiguous to such land;
``(ii) is used to protect such
land; and
``(iii) is of such width as the
Secretary determines is necessary to
protect such land, taking into
consideration and accommodating the
farming practices (including the
straightening of boundaries to
accommodate machinery) used with
respect to the cropland that surrounds
such land; and
``(B) with respect to land described in
subparagraph (D) of paragraph (1), enhances a
wildlife benefit to the extent practicable in
terms of upland to wetland ratios, as
determined by the Secretary.
``(c) Program Limitations.--
``(1) Acreage limitation.--The Secretary may enroll
in the conservation reserve, pursuant to the program
established under this section, not more than--
``(A) 100,000 acres in any State; and
``(B) a total of 1,000,000 acres.
``(2) Relationship to maximum enrollment.--Subject
to paragraph (3), any acreage enrolled in the
conservation reserve under this section shall be
considered acres maintained in the conservation
reserve.
``(3) Relationship to other enrolled acreage.--
Acreage enrolled in the conservation reserve under this
section shall not affect for any fiscal year the
quantity of--
``(A) acreage enrolled to establish
conservation buffers as part of the program
announced on March 24, 1998 (63 Fed. Reg.
14109); or
``(B) acreage enrolled into the
conservation reserve enhancement program
announced on May 27, 1998 (63 Fed. Reg. 28965).
``(4) Review; potential increase in enrollment
acreage.--The Secretary shall conduct a review of the
program established under this section with respect to
each State that has enrolled land in the conservation
reserve pursuant to the program. As a result of the
review, the Secretary may increase the number of acres
that may be enrolled in a State under the program to
not more than 200,000 acres, notwithstanding paragraph
(1)(A).
``(d) Owner or Operator Enrollment Limitations.--
``(1) Wetland and related land.--
``(A) Wetlands and constructed wetlands.--
The maximum size of any land described in
subparagraph (A) or (B) of subsection (b)(1)
that an owner or operator may enroll in the
conservation reserve, pursuant to the program
established under this section, shall be 40
contiguous acres.
``(B) Flooded farmland.--The maximum size
of any land described in subparagraph (D) of
subsection (b)(1) that an owner or operator may
enroll in the conservation reserve, pursuant to
the program established under this section,
shall be 20 contiguous acres.
``(C) Coverage.--All acres described in
subparagraph (A) or (B), including acres that
are ineligible for payment, shall be covered by
the conservation contract.
``(2) Buffer acreage.--The maximum size of any
buffer acreage described in subsection (b)(2) that an
owner or operator may enroll in the conservation
reserve under this section shall be determined by the
Secretary in consultation with the State Technical
Committee.
``(3) Tracts.--Except for land described in
subsection (b)(1)(C) and buffer acreage related to such
land, the maximum size of any eligible acreage
described in subsection (b)(1) in a tract of an owner
or operator enrolled in the conservation reserve under
this section shall be 40 acres.
``(e) Duties of Owners and Operators.--During the term of a
contract entered into under the program established under this
section, an owner or operator shall agree--
``(1) to restore the hydrology of the wetland
within the eligible acreage to the maximum extent
practicable, as determined by the Secretary;
``(2) to establish vegetative cover (which may
include emerging vegetation in water and bottomland
hardwoods, cypress, and other appropriate tree species)
on the eligible acreage, as determined by the
Secretary;
``(3) to a general prohibition of commercial use of
the enrolled land; and
``(4) to carry out other duties described in
section 1232.
``(f) Duties of the Secretary.--
``(1) In general.--Except as provided in paragraphs
(2) and (3), in return for a contract entered into
under this section, the Secretary shall--
``(A) make payments to the owner or
operator based on rental rates for cropland;
and
``(B) provide assistance to the owner or
operator in accordance with sections 1233 and
1234.
``(2) Contract offers and payments.--The Secretary
shall use the method of determination described in
section 1234(c)(2)(B) to determine the acceptability of
contract offers and the amount of rental payments under
this section.
``(3) Incentives.--The amounts payable to owners
and operators in the form of rental payments under
contracts entered into under this section shall reflect
incentives that are provided to owners and operators to
enroll filterstrips in the conservation reserve under
section 1234.''.
(2) Repeal of superseded program.--Section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831) is
amended--
(A) by striking subsection (h); and
(B) by redesignating subsections (i) and
(j) as subsections (h) and (i), respectively.
(b) Conforming Changes to Emergency Forestry Conservation
Reserve Program.--Subsection (k) of section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended--
(1) by striking ``(k) Emergency Forestry
Conservation Reserve Program.--'' and inserting the
following:
``SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.'';
(2) by striking ``subsection'' each place it
appears (other than paragraph (3)(C)(ii)) and inserting
``section'';
(3) by redesignating paragraphs (1), (2), and (3)
as subsections (a), (b), and (c), respectively;
(4) in subsection (a), as so redesignated, by
redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively; and
(5) in subsection (c), as so redesignated--
(A) by redesignating subparagraphs (A)
through (I) as paragraphs (1) through (9),
respectively;
(B) in paragraph (1), as so redesignated,
by striking ``subparagraph (B)'' and
``subparagraph (G)'' and inserting ``paragraph
(2)'' and ``paragraph (7)'', respectively;
(C) in paragraph (3), as so redesignated--
(i) by redesignating clauses (i)
and (ii) as subparagraphs (A) and (B),
respectively; and
(ii) by striking ``subsection (d)''
and inserting ``section 1231(d)'';
(D) in paragraph (4), as so redesignated,
by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;
(E) in paragraph (5), as so redesignated--
(i) by redesignating clauses (i)
through (v) as subparagraphs (A)
through (E), respectively, and
subclauses (I) and (II) as clauses (i)
and (ii), respectively;
(ii) in subparagraph (B), as so
redesignated, by striking ``clause
(i)(I)'' and inserting ``subparagraph
(A)(i)''; and
(iii) in subparagraph (C), as so
redesignated, by striking ``clause
(i)(II)'' and inserting ``subparagraph
(A)(ii)''; and
(F) in paragraph (9), as so redesignated,
by redesignating clauses (i) through (iii) as
subparagraphs (A) through (C), respectively,
and subclauses (I) through (III) as clauses (i)
through (iii), respectively.
SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION RESERVE
CONTRACTS.
Section 1232(a) of the Food Security Act of 1985 (16 U.S.C.
3832(a)) is amended--
(1) by redesignating paragraphs (5) through (10) as
paragraphs (6) through (11), respectively; and
(2) by inserting after paragraph (4) the following
new paragraph:
``(5) to undertake management on the land as needed
throughout the term of the contract to implement the
conservation plan;''.
SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE OF FORAGE
ON ENROLLED LAND AND INSTALLATION OF WIND TURBINES.
(a) General Prohibition; Exceptions.--Section 1232(a) of
the Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended by
striking paragraph (8), as redesignated by section 2107, and
inserting the following new paragraph:
``(8) not to conduct any harvesting or grazing, nor
otherwise make commercial use of the forage, on land
that is subject to the contract, nor adopt any similar
practice specified in the contract by the Secretary as
a practice that would tend to defeat the purposes of
the contract, except that the Secretary may permit,
consistent with the conservation of soil, water
quality, and wildlife habitat (including habitat during
nesting seasons for birds in the area)--
``(A) managed harvesting (including the
managed harvesting of biomass), except that in
permitting managed harvesting, the Secretary,
in coordination with the State technical
committee--
``(i) shall develop appropriate
vegetation management requirements; and
``(ii) shall identify periods
during which managed harvesting may be
conducted;
``(B) harvesting and grazing or other
commercial use of the forage on the land that
is subject to the contract in response to a
drought or other emergency;
``(C) routine grazing or prescribed grazing
for the control of invasive species, except
that in permitting such routine grazing or
prescribed grazing, the Secretary, in
coordination with the State technical
committee--
``(i) shall develop appropriate
vegetation management requirements and
stocking rates for the land that are
suitable for continued routine grazing;
and
``(ii) shall establish the
frequency during which routine grazing
may be conducted, taking into
consideration regional differences such
as--
``(I) climate, soil type,
and natural resources;
``(II) the number of years
that should be required between
routine grazing activities; and
``(III) how often during a
year in which routine grazing
is permitted that routine
grazing should be allowed to
occur; and
``(D) the installation of wind turbines,
except that in permitting the installation of
wind turbines, the Secretary shall determine
the number and location of wind turbines that
may be installed, taking into account--
``(i) the location, size, and other
physical characteristics of the land;
``(ii) the extent to which the land
contains wildlife and wildlife habitat;
and
``(iii) the purposes of the
conservation reserve program under this
subchapter;''.
(b) Rental Payment Reduction.--Section 1232 of the Food
Security Act of 1985 (16 U.S.C. 3832) is amended by adding at
the end the following new subsection:
``(d) Rental Payment Reduction for Certain Authorized Uses
of Enrolled Land.--In the case of an authorized activity under
subsection (a)(8) on land that is subject to a contract under
this subchapter, the Secretary shall reduce the rental payment
otherwise payable under the contract by an amount commensurate
with the economic value of the authorized activity.''.
SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, WINDBREAKS,
SHELTERBELTS, AND WILDLIFE CORRIDORS.
Section 1234(b) of the Food Security Act of 1985 (16 U.S.C.
3834(b)) is amended by striking paragraph (3) and inserting the
following new paragraph:
``(3) Trees, windbreaks, shelterbelts, and wildlife
corridors.--
``(A) Applicability.--This paragraph
applies to--
``(i) land devoted to the
production of hardwood trees,
windbreaks, shelterbelts, or wildlife
corridors under a contract entered into
under this subchapter after November
28, 1990;
``(ii) land converted to such
production under section 1235A; and
``(iii) land on which an owner or
operator agrees to conduct thinning
authorized by section 1232(a)(9), if
the thinning is necessary to improve
the condition of resources on the land.
``(B) Payments.--
``(i) Percentage.--In making cost
share payments to an owner or operator
of land described in subparagraph (A),
the Secretary shall pay 50 percent of
the reasonable and necessary costs
incurred by the owner or operator for
maintaining trees or shrubs, including
the cost of replanting (if the trees or
shrubs were lost due to conditions
beyond the control of the owner or
operator) or thinning.
``(ii) Duration.--The Secretary
shall make payments as described in
clause (i) for a period of not less
than 2 years, but not more than 4
years, beginning on the date of--
``(I) the planting of the
trees or shrubs; or
``(II) the thinning of
existing stands to improve the
condition of resources on the
land.''.
SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, ANNUAL RENTAL
PAYMENTS, AND PAYMENT LIMITATIONS.
(a) Evaluation and Acceptance of Contract Offers.--Section
1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is
amended by striking paragraph (3) and inserting the following
new paragraph:
``(3) Acceptance of contract offers.--
``(A) Evaluation of offers.--In determining
the acceptability of contract offers, the
Secretary may take into consideration the
extent to which enrollment of the land that is
the subject of the contract offer would improve
soil resources, water quality, or wildlife
habitat or provide other environmental
benefits.
``(B) Establishment of different criteria
in various states and regions.--The Secretary
may establish different criteria for
determining the acceptability of contract
offers in various States and regions of the
United States based on the extent to which
water quality or wildlife habitat may be
improved or erosion may be abated.
``(C) Local preference.--In determining the
acceptability of contract offers for new
enrollments, the Secretary shall accept, to the
maximum extent practicable, an offer from an
owner or operator that is a resident of the
county in which the land is located or of a
contiguous county if, as determined by the
Secretary, the land would provide at least
equivalent conservation benefits to land under
competing offers.''.
(b) Annual Survey of Dryland and Irrigated Cash Rental
Rates.--
(1) Annual estimates required.--Section 1234(c) of
the Food Security Act of 1985 (16 U.S.C. 3834(c)) is
amended by adding at the end the following new
paragraph:
``(5) Rental rates.--
``(A) Annual estimates.--The Secretary
(acting through the National Agricultural
Statistics Service) shall conduct an annual
survey of per acre estimates of county average
market dryland and irrigated cash rental rates
for cropland and pastureland in all counties or
equivalent subdivisions within each State that
have 20,000 acres or more of cropland and
pastureland.
``(B) Public availability of estimates.--
The estimates derived from the annual survey
conducted under subparagraph (A) shall be
maintained on a website of the Department of
Agriculture for use by the general public.''.
(2) First survey.--The first survey required by
paragraph (5) of section 1234(c) of the Food Security
Act of 1985 (16 U.S.C. 3834(c)), as added by subsection
(a), shall be conducted not later than 1 year after the
date of enactment of this Act.
(c) Payment Limitations.--Section 1234(f) of the Food
Security Act of 1985 (16 U.S.C. 3834(f)) is amended--
(1) in paragraph (1), by striking ``made to a
person'' and inserting ``received by a person or legal
entity, directly or indirectly,'';
(2) by striking paragraph (2); and
(3) in paragraph (4), by striking ``any person''
and inserting ``any person or legal entity''.
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR
BEGINNING FARMERS OR RANCHERS AND SOCIALLY
DISADVANTAGED FARMERS OR RANCHERS.
(a) Contract Modification Authority.--Section 1235(c)(1)(B)
of the Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is
amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) by redesignating clause (iii) as clause (iv);
and
(3) by inserting after clause (ii) the following
new clause:
``(iii) to facilitate a transition
of land subject to the contract from a
retired or retiring owner or operator
to a beginning farmer or rancher or
socially disadvantaged farmer or
rancher for the purpose of returning
some or all of the land into production
using sustainable grazing or crop
production methods; or''.
(b) Transition Option.--Section 1235 of the Food Security
Act of 1985 (16 U.S.C. 3835) is amended by adding at the end
the following new subsection:
``(f) Transition Option for Certain Farmers or Ranchers.--
``(1) Duties of the secretary.--In the case of a
contract modification approved in order to facilitate
the transfer, as described in subsection
(c)(1)(B)(iii), of land to a beginning farmer or
rancher or socially disadvantaged farmer or rancher (in
this subsection referred to as a `covered farmer or
rancher'), the Secretary shall--
``(A) beginning on the date that is 1 year
before the date of termination of the
contract--
``(i) allow the covered farmer or
rancher, in conjunction with the
retired or retiring owner or operator,
to make conservation and land
improvements; and
``(ii) allow the covered farmer or
rancher to begin the certification
process under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501
et seq.);
``(B) beginning on the date of termination
of the contract, require the retired or
retiring owner or operator to sell or lease
(under a long-term lease or a lease with an
option to purchase) to the covered farmer or
rancher the land subject to the contract for
production purposes;
``(C) require the covered farmer or rancher
to develop and implement a conservation plan;
``(D) provide to the covered farmer or
rancher an opportunity to enroll in the
conservation stewardship program or the
environmental quality incentives program by not
later than the date on which the farmer or
rancher takes possession of the land through
ownership or lease; and
``(E) continue to make annual payments to
the retired or retiring owner or operator for
not more than an additional 2 years after the
date of termination of the contract, if the
retired or retiring owner or operator is not a
family member (as defined in section
1001A(b)(3)(B) of this Act) of the covered
farmer or rancher.
``(2) Reenrollment.--The Secretary shall provide a
covered farmer or rancher with the option to reenroll
any applicable partial field conservation practice
that--
``(A) is eligible for enrollment under the
continuous signup requirement of section
1231(h)(4)(B); and
``(B) is part of an approved conservation
plan.''.
Subtitle C--Wetlands Reserve Program
SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE PROGRAM.
Subsection (a) of section 1237 of the Food Security Act of
1985 (16 U.S.C. 3837) is amended to read as follows:
``(a) Establishment and Purposes.--
``(1) Establishment.--The Secretary shall establish
a wetlands reserve program to assist owners of eligible
lands in restoring and protecting wetlands.
``(2) Purposes.--The purposes of the wetlands
reserve program are to restore, protect, or enhance
wetlands on private or tribal lands that are eligible
under subsections (c) and (d).''.
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.
Section 1237(b) of the Food Security Act of 1985 (16 U.S.C.
3837(b)) is amended--
(1) by striking paragraph (1) and inserting the
following new paragraph:
``(1) Maximum enrollment.--The total number of
acres enrolled in the wetlands reserve program shall
not exceed 3,041,200 acres.'';
(2) in paragraph (2), by striking ``The Secretary''
and inserting ``Subject to paragraph (3), the
Secretary''; and
(3) by adding at the end the following new
paragraph:
``(3) Acreage owned by indian tribes.--In the case
of acreage owned by an Indian tribe, the Secretary
shall enroll acreage into the wetlands reserve program
through the use of--
``(A) a 30-year contract (the value of
which shall be equivalent to the value of a 30-
year easement);
``(B) restoration cost-share agreements; or
``(C) any combination of the options
described in subparagraphs (A) and (B).''.
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS ELIGIBLE FOR
ENROLLMENT.
(a) In General.--Section 1237(c) of the Food Security Act
of 1985 (16 U.S.C. 3837(c)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``2007 calendar'' and
inserting ``2012 fiscal''; and
(B) by inserting ``private or tribal''
before ``land'' the second place it appears;
(2) by striking paragraph (2) and inserting the
following new paragraph:
``(2) such land is--
``(A) farmed wetland or converted wetland,
together with the adjacent land that is
functionally dependent on the wetlands, except
that converted wetland with respect to which
the conversion was not commenced prior to
December 23, 1985, shall not be eligible to be
enrolled in the program under this section; or
``(B) cropland or grassland that was used
for agricultural production prior to flooding
from the natural overflow of a closed basin
lake or pothole, as determined by the
Secretary, together (where practicable) with
the adjacent land that is functionally
dependent on the cropland or grassland; and''.
(b) Change of Ownership.--Section 1237E(a) of the Food
Security Act of 1985 (16 U.S.C. 3837e(a)) is amended by
striking ``in the preceding 12 months'' and inserting ``during
the preceding 7-year period''.
(c) Annual Survey and Reallocation.--Section 1237F of the
Food Security Act of 1985 (16 U.S.C. 3837f) is amended by
adding at the end the following new subsection:
``(c) Prairie Pothole Region Survey and Reallocation.--
``(1) Survey.--The Secretary shall conduct a survey
during fiscal year 2008 and each subsequent fiscal year
for the purpose of determining interest and allocations
for the Prairie Pothole Region to enroll eligible land
described in section 1237(c)(2)(B).
``(2) Annual adjustment.--The Secretary shall make
an adjustment to the allocation for an interested State
for a fiscal year, based on the results of the survey
conducted under paragraph (1) for the State during the
previous fiscal year.''.
SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.
Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16
U.S.C. 3837a(b)(2)(B)) is amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking ``; and'' and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) to meet habitat needs of
specific wildlife species; and''.
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS RESERVE PROGRAM.
Subsection (f) of section 1237A of the Food Security Act of
1985 (16 U.S.C. 3837a) is amended to read as follows:
``(f) Compensation.--
``(1) Determination.--Effective on the date of the
enactment of the Food, Conservation, and Energy Act of
2008, the Secretary shall pay as compensation for a
conservation easement acquired under this subchapter
the lowest of--
``(A) the fair market value of the land, as
determined by the Secretary, using the Uniform
Standards of Professional Appraisal Practices
or an area-wide market analysis or survey;
``(B) the amount corresponding to a
geographical cap, as determined by the
Secretary in regulations; or
``(C) the offer made by the landowner.
``(2) Form of payment.--Compensation for an
easement shall be provided by the Secretary in the form
of a cash payment, in an amount determined under
paragraph (1) and specified in the easement agreement.
``(3) Payment schedule for easements.--
``(A) Easements valued at $500,000 or
less.--For easements valued at $500,000 or
less, the Secretary may provide easement
payments in not more than 30 annual payments.
``(B) Easements in excess of $500,000.--For
easements valued at more than $500,000, the
Secretary may provide easement payments in at
least 5, but not more than 30 annual payments,
except that, if the Secretary determines it
would further the purposes of the program, the
Secretary may make a lump sum payment for such
an easement.
``(4) Restoration agreement payment limitation.--
Payments made to a person or legal entity, directly or
indirectly, pursuant to a restoration cost-share
agreement under this subchapter may not exceed, in the
aggregate, $50,000 per year.
``(5) Enrollment procedure.--Lands may be enrolled
under this subchapter through the submission of bids
under a procedure established by the Secretary.''.
SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND RESERVED RIGHTS
PILOT PROGRAM.
Section 1237A of the Food Security Act of 1985 (16 U.S.C.
3837a) is amended by adding at the end the following new
subsection:
``(h) Wetlands Reserve Enhancement Program.--
``(1) Program authorized.--The Secretary may enter
into 1 or more agreements with a State (including a
political subdivision or agency of a State),
nongovernmental organization, or Indian tribe to carry
out a special wetlands reserve enhancement program that
the Secretary determines would advance the purposes of
this subchapter.
``(2) Reserved rights pilot program.--
``(A) Reservation of grazing rights.--As
part of the wetlands reserve enhancement
program, the Secretary shall carry out a pilot
program for land in which a landowner may
reserve grazing rights in the warranty easement
deed restriction if the Secretary determines
that the reservation and use of the grazing
rights--
``(i) is compatible with the land
subject to the easement;
``(ii) is consistent with the long-
term wetland protection and enhancement
goals for which the easement was
established; and
``(iii) complies with a
conservation plan.
``(B) Duration.--The pilot program
established under this paragraph shall
terminate on September 30, 2012.''.
SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS RESERVE
PROGRAM.
Section 1237C of the Food Security Act of 1985 (16 U.S.C.
3837c) is amended--
(1) in subsection (a)(1), by inserting ``including
necessary maintenance activities,'' after ``values,'';
and
(2) by striking subsection (c) and inserting the
following new subsection:
``(c) Ranking of Offers.--
``(1) Conservation benefits and funding
considerations.--When evaluating offers from
landowners, the Secretary may consider--
``(A) the conservation benefits of
obtaining an easement or other interest in the
land;
``(B) the cost-effectiveness of each
easement or other interest in eligible land, so
as to maximize the environmental benefits per
dollar expended; and
``(C) whether the landowner or another
person is offering to contribute financially to
the cost of the easement or other interest in
the land to leverage Federal funds.
``(2) Additional considerations.--In determining
the acceptability of easement offers, the Secretary may
take into consideration--
``(A) the extent to which the purposes of
the easement program would be achieved on the
land;
``(B) the productivity of the land; and
``(C) the on-farm and off-farm
environmental threats if the land is used for
the production of agricultural commodities.''.
SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CONTRACTS AND
AGREEMENTS.
Section 1237D(c)(1) of the Food Security Act of 1985 (16
U.S.C. 3837d(c)(1)) is amended--
(1) by striking ``The total amount of easement
payments made to a person'' and inserting ``The total
amount of payments that a person or legal entity may
receive, directly or indirectly,''; and
(2) by inserting ``or under 30-year contracts''
before the period at the end.
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE AGREEMENTS
FOR WETLANDS RESERVE ENHANCEMENT.
Section 1237D(c) of the Food Security Act of 1985 (16
U.S.C. 3837d(c)) is amended by striking paragraph (4).
SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CONSERVATION
EASEMENTS.
(a) Report Required.--Not later than January 1, 2010, the
Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that evaluates the implications of the long-term nature of
conservation easements granted under section 1237A of the Food
Security Act of 1985 (16 U.S.C. 3837a) on resources of the
Department of Agriculture.
(b) Inclusions.--The report required by subsection (a)
shall include the following:
(1) Data relating to the number and location of
conservation easements granted under that section that
the Secretary holds or has a significant role in
monitoring or managing.
(2) An assessment of the extent to which the
oversight of the conservation easement agreements
impacts the availability of resources, including
technical assistance.
(3) An assessment of the uses and value of
agreements with partner organizations.
(4) Any other relevant information relating to
costs or other effects that would be helpful to the
Committees referred to in subsection (a).
Subtitle D--Conservation Stewardship Program
SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.
(a) Establishment of Program.--Chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 is amended--
(1) by redesignating subchapters B (farmland
protection program) and C (grassland reserve program)
as subchapters C and D, respectively; and
(2) by inserting after subchapter A the following
new subchapter:
``Subchapter B--Conservation Stewardship Program
``SEC. 1238D. DEFINITIONS.
``In this subchapter:
``(1) Conservation activities.--
``(A) In general.--The term `conservation
activities' means conservation systems,
practices, or management measures that are
designed to address a resource concern.
``(B) Inclusions.--The term `conservation
activities' includes--
``(i) structural measures,
vegetative measures, and land
management measures, including
agriculture drainage management
systems, as determined by the
Secretary; and
``(ii) planning needed to address a
resource concern.
``(2) Conservation measurement tools.--The term
`conservation measurement tools' means procedures to
estimate the level of environmental benefit to be
achieved by a producer in implementing conservation
activities, including indices or other measures
developed by the Secretary.
``(3) Conservation stewardship plan.--The term
`conservation stewardship plan' means a plan that--
``(A) identifies and inventories resource
concerns;
``(B) establishes benchmark data and
conservation objectives;
``(C) describes conservation activities to
be implemented, managed, or improved; and
``(D) includes a schedule and evaluation
plan for the planning, installation, and
management of the new and existing conservation
activities.
``(4) Priority resource concern.--The term
`priority resource concern' means a resource concern
that is identified at the State level, in consultation
with the State Technical Committee, as a priority for a
particular watershed or area of the State.
``(5) Program.--The term `program' means the
conservation stewardship program established by this
subchapter.
``(6) Resource concern.--The term `resource
concern' means a specific natural resource impairment
or problem, as determined by the Secretary, that--
``(A) represents a significant concern in a
State or region; and
``(B) is likely to be addressed
successfully through the implementation of
conservation activities by producers on land
eligible for enrollment in the program.
``(7) Stewardship threshold.--The term `stewardship
threshold' means the level of natural resource
conservation and environmental management required, as
determined by the Secretary using conservation
measurement tools, to improve and conserve the quality
and condition of a resource concern.
``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.
``(a) Establishment and Purpose.--During each of fiscal
years 2009 through 2012, the Secretary shall carry out a
conservation stewardship program to encourage producers to
address resource concerns in a comprehensive manner--
``(1) by undertaking additional conservation
activities; and
``(2) by improving, maintaining and managing
existing conservation activities.
``(b) Eligible Land.--
``(1) In general.--Except as provided in subsection
(c), the following land is eligible for enrollment in
the program:
``(A) Private agricultural land (including
cropland, grassland, prairie land, improved
pastureland, rangeland, and land used for agro-
forestry).
``(B) Agricultural land under the
jurisdiction of an Indian tribe.
``(C) Forested land that is an incidental
part of an agricultural operation.
``(D) Other private agricultural land
(including cropped woodland, marshes, and
agricultural land used for the production of
livestock) on which resource concerns related
to agricultural production could be addressed
by enrolling the land in the program, as
determined by the Secretary.
``(2) Special rule for nonindustrial private forest
land.--Nonindustrial private forest land is eligible
for enrollment in the program, except that not more
than 10 percent of the annual acres enrolled nationally
in any fiscal year may be nonindustrial private forest
land.
``(3) Agricultural operation.--Eligible land shall
include all acres of an agricultural operation of a
producer, whether or not contiguous, that are under the
effective control of the producer at the time the
producer enters into a stewardship contract, and is
operated by the producer with equipment, labor,
management, and production or cultivation practices
that are substantially separate from other agricultural
operations, as determined by the Secretary.
``(c) Exclusions.--
``(1) Land enrolled in other conservation
programs.--Subject to paragraph (2), the following land
is not eligible for enrollment in the program:
``(A) Land enrolled in the conservation
reserve program.
``(B) Land enrolled in the wetlands reserve
program.
``(C) Land enrolled in the grassland
reserve program.
``(2) Conversion to cropland.--Land used for crop
production after the date of enactment of the Food,
Conservation, and Energy Act of 2008 that had not been
planted, considered to be planted, or devoted to crop
production for at least 4 of the 6 years preceding that
date shall not be the basis for any payment under the
program, unless the land does not meet the requirement
because--
``(A) the land had previously been enrolled
in the conservation reserve program;
``(B) the land has been maintained using
long-term crop rotation practices, as
determined by the Secretary; or
``(C) the land is incidental land needed
for efficient operation of the farm or ranch,
as determined by the Secretary.
``SEC. 1238F. STEWARDSHIP CONTRACTS.
``(a) Submission of Contract Offers.--To be eligible to
participate in the conservation stewardship program, a producer
shall submit to the Secretary for approval a contract offer
that--
``(1) demonstrates to the satisfaction of the
Secretary that the producer, at the time of the
contract offer, is meeting the stewardship threshold
for at least one resource concern; and
``(2) would, at a minimum, meet or exceed the
stewardship threshold for at least 1 priority resource
concern by the end of the stewardship contract by--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing
conservation activities in place at the
operation of the producer at the time the
contract offer is accepted by the Secretary.
``(b) Evaluation of Contract Offers.--
``(1) Ranking of applications.--In evaluating
contract offers made by producers to enter into
contracts under the program, the Secretary shall rank
applications based on--
``(A) the level of conservation treatment
on all applicable priority resource concerns at
the time of application, based to the maximum
extent practicable on conservation measurement
tools;
``(B) the degree to which the proposed
conservation treatment on applicable priority
resource concerns effectively increases
conservation performance, based to the maximum
extent possible on conservation measurement
tools;
``(C) the number of applicable priority
resource concerns proposed to be treated to
meet or exceed the stewardship threshold by the
end of the contract;
``(D) the extent to which other resource
concerns, in addition to priority resource
concerns, will be addressed to meet or exceed
the stewardship threshold by the end of the
contract period; and
``(E) the extent to which the actual and
anticipated environmental benefits from the
contract are provided at the least cost
relative to other similarly beneficial contract
offers.
``(2) Prohibition.--The Secretary may not assign a
higher priority to any application because the
applicant is willing to accept a lower payment than the
applicant would otherwise be eligible to receive.
``(3) Additional criteria.--The Secretary may
develop and use such additional criteria for evaluating
applications to enroll in the program that the
Secretary determines are necessary to ensure that
national, State, and local conservation priorities are
effectively addressed.
``(c) Entering Into Contracts.--After a determination that
a producer is eligible for the program under subsection (a),
and a determination that the contract offer ranks sufficiently
high under the evaluation criteria under subsection (b), the
Secretary shall enter into a conservation stewardship contract
with the producer to enroll the land to be covered by the
contract.
``(d) Contract Provisions.--
``(1) Term.--A conservation stewardship contract
shall be for a term of 5 years.
``(2) Provisions.--The conservation stewardship
contract of a producer shall--
``(A) state the amount of the payment the
Secretary agrees to make to the producer for
each year of the conservation stewardship
contract under section 1238G(e);
``(B) require the producer--
``(i) to implement during the term
of the conservation stewardship
contract the conservation stewardship
plan approved by the Secretary;
``(ii) to maintain, and make
available to the Secretary at such
times as the Secretary may request,
appropriate records showing the
effective and timely implementation of
the conservation stewardship contract;
and
``(iii) not to engage in any
activity during the term of the
conservation stewardship contract on
the eligible land covered by the
contract that would interfere with the
purposes of the conservation
stewardship contract;
``(C) permit all economic uses of the land
that--
``(i) maintain the agricultural
nature of the land; and
``(ii) are consistent with the
conservation purposes of the
conservation stewardship contract;
``(D) include a provision to ensure that a
producer shall not be considered in violation
of the contract for failure to comply with the
contract due to circumstances beyond the
control of the producer, including a disaster
or related condition, as determined by the
Secretary; and
``(E) include such other provisions as the
Secretary determines necessary to ensure the
purposes of the program are achieved.
``(e) Contract Renewal.--At the end of an initial
conservation stewardship contract of a producer, the Secretary
may allow the producer to renew the contract for one additional
five-year period if the producer--
``(1) demonstrates compliance with the terms of the
existing contract; and
``(2) agrees to adopt new conservation activities,
as determined by the Secretary.
``(f) Modification.--The Secretary may allow a producer to
modify a stewardship contract if the Secretary determines that
the modification is consistent with achieving the purposes of
the program.
``(g) Contract Termination.--
``(1) Voluntary termination.--A producer may
terminate a conservation stewardship contract if the
Secretary determines that termination would not defeat
the purposes of the program.
``(2) Involuntary termination.--The Secretary may
terminate a contract under this subchapter if the
Secretary determines that the producer violated the
contract.
``(3) Repayment.--If a contract is terminated, the
Secretary may, consistent with the purposes of the
program--
``(A) allow the producer to retain payments
already received under the contract; or
``(B) require repayment, in whole or in
part, of payments already received and assess
liquidated damages.
``(4) Change of interest in land subject to a
contract.--
``(A) In general.--Except as provided in
paragraph (B), a change in the interest of a
producer in land covered by a contract under
this chapter shall result in the termination of
the contract with regard to that land.
``(B) Transfer of duties and rights.--
Subparagraph (A) shall not apply if--
``(i) within a reasonable period of
time (as determined by the Secretary)
after the date of the change in the
interest in land covered by a contract
under the program, the transferee of
the land provides written notice to the
Secretary that all duties and rights
under the contract have been
transferred to, and assumed by, the
transferee; and
``(ii) the transferee meets the
eligibility requirements of the
program.
``(h) Coordination With Organic Certification.--The
Secretary shall establish a transparent means by which
producers may initiate organic certification under the Organic
Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) while
participating in a contract under this subchapter.
``(i) On-Farm Research and Demonstration or Pilot
Testing.--The Secretary may approve a contract offer under this
subchapter that includes--
``(1) on-farm conservation research and
demonstration activities; and
``(2) pilot testing of new technologies or
innovative conservation practices.
``SEC. 1238G. DUTIES OF THE SECRETARY.
``(a) In General.--To achieve the conservation goals of a
contract under the conservation stewardship program, the
Secretary shall--
``(1) make the program available to eligible
producers on a continuous enrollment basis with 1 or
more ranking periods, one of which shall occur in the
first quarter of each fiscal year;
``(2) identify not less than 3 nor more than 5
priority resource concerns in a particular watershed or
other appropriate region or area within a State; and
``(3) develop reliable conservation measurement
tools for purposes of carrying out the program.
``(b) Allocation to States.--The Secretary shall allocate
acres to States for enrollment, based--
``(1) primarily on each State's proportion of
eligible acres under section 1238E(b)(1) to the total
number of eligible acres in all States; and
``(2) also on consideration of--
``(A) the extent and magnitude of the
conservation needs associated with agricultural
production in each State;
``(B) the degree to which implementation of
the program in the State is, or will be,
effective in helping producers address those
needs; and
``(C) other considerations to achieve
equitable geographic distribution of funds, as
determined by the Secretary.
``(c) Specialty Crop and Organic Producers.--The Secretary
shall ensure that outreach and technical assistance are
available, and program specifications are appropriate to enable
specialty crop and organic producers to participate in the
program.
``(d) Acreage Enrollment Limitation.--During the period
beginning on October 1, 2008, and ending on September 30, 2017,
the Secretary shall, to the maximum extent practicable--
``(1) enroll in the program an additional
12,769,000 acres for each fiscal year; and
``(2) manage the program to achieve a national
average rate of $18 per acre, which shall include the
costs of all financial assistance, technical
assistance, and any other expenses associated with
enrollment or participation in the program.
``(e) Conservation Stewardship Payments.--
``(1) Availability of payments.--The Secretary
shall provide a payment under the program to compensate
the producer for--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing
conservation activities in place at the
operation of the producer at the time the
contract offer is accepted by the Secretary.
``(2) Payment amount.--The amount of the
conservation stewardship payment shall be determined by
the Secretary and based, to the maximum extent
practicable, on the following factors:
``(A) Costs incurred by the producer
associated with planning, design, materials,
installation, labor, management, maintenance,
or training.
``(B) Income forgone by the producer.
``(C) Expected environmental benefits as
determined by conservation measurement tools.
``(3) Exclusions.--A payment to a producer under
this subsection shall not be provided for--
``(A) the design, construction, or
maintenance of animal waste storage or
treatment facilities or associated waste
transport or transfer devices for animal
feeding operations; or
``(B) conservation activities for which
there is no cost incurred or income forgone to
the producer.
``(4) Timing of payments.--
``(A) In general.--The Secretary shall make
payments as soon as practicable after October 1
of each fiscal year for activities carried out
in the previous fiscal year.
``(B) Additional activities.--The Secretary
shall make payments to compensate producers for
installation of additional practices at the
time at which the practices are installed and
adopted.
``(f) Supplemental Payments for Resource-Conserving Crop
Rotations.--
``(1) Availability of payments.--The Secretary
shall provide additional payments to producers that, in
participating in the program, agree to adopt resource-
conserving crop rotations to achieve beneficial crop
rotations as appropriate for the land of the producers.
``(2) Beneficial crop rotations.--The Secretary
shall determine whether a resource-conserving crop
rotation is a beneficial crop rotation eligible for
additional payments under paragraph (1), based on
whether the resource-conserving crop rotation is
designed to provide natural resource conservation and
production benefits.
``(3) Eligibility.--To be eligible to receive a
payment described in paragraph (1), a producer shall
agree to adopt and maintain beneficial resource-
conserving crop rotations for the term of the contract.
``(4) Resource-conserving crop rotation.--In this
subsection, the term `resource-conserving crop
rotation' means a crop rotation that--
``(A) includes at least 1 resource
conserving crop (as defined by the Secretary);
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces
depletion of soil moisture or otherwise reduces
the need for irrigation.
``(g) Payment Limitations.--A person or legal entity may
not receive, directly or indirectly, payments under this
subchapter that, in the aggregate, exceed $200,000 for all
contracts entered into during any 5-year period, excluding
funding arrangements with federally recognized Indian tribes or
Alaska Native corporations, regardless of the number of
contracts entered into under the program by the person or
entity.
``(h) Regulations.--The Secretary shall promulgate
regulations that--
``(1) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and
reasonable application of the limitations established
under subsection (g); and
``(2) otherwise enable the Secretary to carry out
the program.
``(i) Data.--The Secretary shall maintain detailed and
segmented data on contracts and payments under the program to
allow for quantification of the amount of payments made for--
``(1) the installation and adoption of additional
conservation activities and improvements to
conservation activities in place on the operation of a
producer at the time the conservation stewardship offer
is accepted by the Secretary;
``(2) participation in research, demonstration, and
pilot projects; and
``(3) the development and periodic assessment and
evaluation of conservation plans developed under this
subchapter.''.
(b) Termination of Conservation Security Program Authority;
Effect on Existing Contracts.--Section 1238A of the Food
Security Act of 1985 (16 U.S.C. 3838a) is amended by adding at
the end the following new subsection:
``(g) Prohibition on Conservation Security Program
Contracts; Effect on Existing Contracts.--
``(1) Prohibition.--A conservation security
contract may not be entered into or renewed under this
subchapter after September 30, 2008.
``(2) Exception.--This subchapter, and the terms
and conditions of the conservation security program,
shall continue to apply to--
``(A) conservation security contracts
entered into on or before September 30, 2008;
and
``(B) any conservation security contract
entered into after that date, but for which the
application for the contract was received
during the 2008 sign-up period.
``(3) Effect on payments.--The Secretary shall make
payments under this subchapter with respect to
conservation security contracts described in paragraph
(2) during the remaining term of the contracts.
``(4) Regulations.--A contract described in
paragraph (2) may not be administered under the
regulations issued to carry out the conservation
stewardship program.''.
(c) Reference to Redesignated Subchapter.--Section
1238A(b)(3)(C) of title XII of the Food Security Act of 1985
(16 U.S.C. 3838a(b)(3)(C)) is amended by striking ``subchapter
C'' and inserting ``subchapter D''.
Subtitle E--Farmland Protection and Grassland Reserve
SEC. 2401. FARMLAND PROTECTION PROGRAM.
(a) Definitions.--Section 1238H of the Food Security Act of
1985 (16 U.S.C. 3838h) is amended--
(1) by striking paragraph (1) and inserting the
following new paragraph:
``(1) Eligible entity.--The term `eligible entity'
means--
``(A) any agency of any State or local
government or an Indian tribe (including a
farmland protection board or land resource
council established under State law); or
``(B) any organization that--
``(i) is organized for, and at all
times since the formation of the
organization has been operated
principally for, 1 or more of the
conservation purposes specified in
clause (i), (ii), (iii), or (iv) of
section 170(h)(4)(A) of the Internal
Revenue Code of 1986;
``(ii) is an organization described
in section 501(c)(3) of that Code that
is exempt from taxation under section
501(a) of that Code; and
``(iii) is--
``(I) described in
paragraph (1) or (2) of section
509(a) of that Code; or
``(II) described in section
509(a)(3), and is controlled by
an organization described in
section 509(a)(2), of that
Code.''; and
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``that--'' and
inserting ``that is subject to a
pending offer for purchase from an
eligible entity and--''; and
(ii) by striking clauses (i) and
(ii) and inserting the following new
clauses:
``(i) has prime, unique, or other
productive soil;
``(ii) contains historical or
archaeological resources; or
``(iii) the protection of which
will further a State or local policy
consistent with the purposes of the
program.''; and
(B) in subparagraph (B)--
(i) in clause (iv), by striking
``and'' at the end; and
(ii) by striking clause (v) and
inserting the following new clauses:
``(v) forest land that--
``(I) contributes to the
economic viability of an
agricultural operation; or
``(II) serves as a buffer
to protect an agricultural
operation from development; and
``(vi) land that is incidental to
land described in clauses (i) through
(v), if such land is necessary for the
efficient administration of a
conservation easement, as determined by
the Secretary.''.
(b) Farmland Protection.--Section 1238I of the Food
Security Act of 1985 (16 U.S.C. 3838i) is amended to read as
follows:
``SEC. 1238I. FARMLAND PROTECTION PROGRAM.
``(a) Establishment.--The Secretary shall establish and
carry out a farmland protection program under which the
Secretary shall facilitate and provide funding for the purchase
of conservation easements or other interests in eligible land.
``(b) Purpose.--The purpose of the program is to protect
the agricultural use and related conservation values of
eligible land by limiting nonagricultural uses of that land.
``(c) Cost-Share Assistance.--
``(1) Provision of assistance.--The Secretary shall
provide cost-share assistance to eligible entities for
purchasing a conservation easement or other interest in
eligible land.
``(2) Federal share.--The share of the cost
provided by the Secretary for purchasing a conservation
easement or other interest in eligible land shall not
exceed 50 percent of the appraised fair market value of
the conservation easement or other interest in eligible
land.
``(3) Non-federal share.--
``(A) Share provided by eligible entity.--
The eligible entity shall provide a share of
the cost of purchasing a conservation easement
or other interest in eligible land in an amount
that is not less than 25 percent of the
acquisition purchase price.
``(B) Landowner contribution.--As part of
the non-Federal share of the cost of purchasing
a conservation easement or other interest in
eligible land, an eligible entity may include a
charitable donation or qualified conservation
contribution (as defined by section 170(h) of
the Internal Revenue Code of 1986) from the
private landowner from which the conservation
easement or other interest in land will be
purchased.
``(d) Determination of Fair Market Value.--Effective on the
date of enactment of the Food, Conservation, and Energy Act of
2008, the fair market value of the conservation easement or
other interest in eligible land shall be determined on the
basis of an appraisal using an industry approved method,
selected by the eligible entity and approved by the Secretary.
``(e) Bidding Down Prohibited.--If the Secretary determines
that 2 or more applications for cost-share assistance are
comparable in achieving the purpose of the program, the
Secretary shall not assign a higher priority to any 1 of those
applications solely on the basis of lesser cost to the program.
``(f) Condition on Assistance.--
``(1) Conservation plan.--Any highly erodible
cropland for which a conservation easement or other
interest is purchased using cost-share assistance
provided under the program shall be subject to a
conservation plan that requires, at the option of the
Secretary, the conversion of the cropland to less
intensive uses.
``(2) Contingent right of enforcement.--The
Secretary shall require the inclusion of a contingent
right of enforcement for the Secretary in the terms of
a conservation easement or other interest in eligible
land that is purchased using cost-share assistance
provided under the program.
``(g) Agreements With Eligible Entities.--
``(1) In general.--The Secretary shall enter into
agreements with eligible entities to stipulate the
terms and conditions under which the eligible entity is
permitted to use cost-share assistance provided under
subsection (c).
``(2) Length of agreements.--An agreement under
this subsection shall be for a term that is--
``(A) in the case of an eligible entity
certified under the process described in
subsection (h), a minimum of five years; and
``(B) for all other eligible entities, at
least three, but not more than five years.
``(3) Substitution of qualified projects.--An
agreement shall allow, upon mutual agreement of the
parties, substitution of qualified projects that are
identified at the time of the proposed substitution.
``(4) Minimum requirements.--An eligible entity
shall be authorized to use its own terms and
conditions, as approved by the Secretary, for
conservation easements and other purchases of interests
in land, so long as such terms and conditions--
``(A) are consistent with the purposes of
the program;
``(B) permit effective enforcement of the
conservation purposes of such easements or
other interests; and
``(C) include a limit on the impervious
surfaces to be allowed that is consistent with
the agricultural activities to be conducted.
``(5) Effect of violation.--If a violation occurs
of a term or condition of an agreement entered into
under this subsection--
``(A) the agreement shall remain in force;
and
``(B) the Secretary may require the
eligible entity to refund all or part of any
payments received by the entity under the
program, with interest on the payments as
determined appropriate by the Secretary.
``(h) Certification of Eligible Entities.--
``(1) Certification process.--The Secretary shall
establish a process under which the Secretary may--
``(A) directly certify eligible entities
that meet established criteria;
``(B) enter into long-term agreements with
certified entities, as authorized by subsection
(g)(2)(A); and
``(C) accept proposals for cost-share
assistance to certified entities for the
purchase of conservation easements or other
interests in eligible land throughout the
duration of such agreements.
``(2) Certification criteria.--In order to be
certified, an eligible entity shall demonstrate to the
Secretary that the entity will maintain, at a minimum,
for the duration of the agreement--
``(A) a plan for administering easements
that is consistent with the purpose of this
subchapter;
``(B) the capacity and resources to monitor
and enforce conservation easements or other
interests in land; and
``(C) policies and procedures to ensure--
``(i) the long-term integrity of
conservation easements or other
interests in eligible land;
``(ii) timely completion of
acquisitions of easements or other
interests in eligible land; and
``(iii) timely and complete
evaluation and reporting to the
Secretary on the use of funds provided
by the Secretary under the program.
``(3) Review and revision.--
``(A) Review.--The Secretary shall conduct
a review of eligible entities certified under
paragraph (1) every three years to ensure that
such entities are meeting the criteria
established under paragraph (2).
``(B) Revocation.--If the Secretary finds
that the certified entity no longer meets the
criteria established under paragraph (2), the
Secretary may--
``(i) allow the certified entity a
specified period of time, at a minimum
180 days, in which to take such actions
as may be necessary to meet the
criteria; and
``(ii) revoke the certification of
the entity, if after the specified
period of time, the certified entity
does not meet the criteria established
in paragraph (2).''.
SEC. 2402. FARM VIABILITY PROGRAM.
Section 1238J(b) of the Food Security Act of 1985 (16
U.S.C. 3838j(b)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 2403. GRASSLAND RESERVE PROGRAM.
Subchapter D of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), as
redesignated by section 2301(a)(1), is amended to read as
follows:
``Subchapter D--Grassland Reserve Program
``SEC. 1238N. GRASSLAND RESERVE PROGRAM.
``(a) Establishment and Purpose.--The Secretary shall
establish a grassland reserve program (referred to in this
subchapter as the `program') for the purpose of assisting
owners and operators in protecting grazing uses and related
conservation values by restoring and conserving eligible land
through rental contracts, easements, and restoration
agreements.
``(b) Enrollment of Acreage.--
``(1) Acreage enrolled.--The Secretary shall enroll
an additional 1,220,000 acres of eligible land in the
program during fiscal years 2009 through 2012.
``(2) Methods of enrollment.--The Secretary shall
enroll eligible land in the program through the use of;
``(A) a 10-year, 15-year, or 20-year rental
contract;
``(B) a permanent easement; or
``(C) in a State that imposes a maximum
duration for easements, an easement for the
maximum duration allowed under the law of that
State.
``(3) Limitation.--Of the total amount of funds
expended under the program to acquire rental contracts
and easements described in paragraph (2), the Secretary
shall use, to the extent practicable--
``(A) 40 percent for rental contacts; and
``(B) 60 percent for easements.
``(4) Enrollment of conservation reserve land.--
``(A) Priority.--Upon expiration of a
contract under subchapter B of chapter 1 of
this subtitle, the Secretary shall give
priority for enrollment in the program to land
previously enrolled in the conservation reserve
program if--
``(i) the land is eligible land, as
defined in subsection (c); and
``(ii) the Secretary determines
that the land is of high ecological
value and under significant threat of
conversion to uses other than grazing.
``(B) Maximum enrollment.--The number of
acres of land enrolled under the priority
described in subparagraph (A) in a calendar
year shall not exceed 10 percent of the total
number of acres enrolled in the program in that
calendar year.
``(c) Eligible Land Defined.--For purposes of the program,
the term `eligible land' means private or tribal land that--
``(1) is grassland, land that contains forbs, or
shrubland (including improved rangeland and
pastureland) for which grazing is the predominant use;
``(2) is located in an area that has been
historically dominated by grassland, forbs, or
shrubland, and the land--
``(A) could provide habitat for animal or
plant populations of significant ecological
value if the land--
``(i) is retained in its current
use; or
``(ii) is restored to a natural
condition;
``(B) contains historical or archaeological
resources; or
``(C) would address issues raised by State,
regional, and national conservation priorities;
or
``(3) is incidental to land described in paragraph
(1) or (2), if the incidental land is determined by the
Secretary to be necessary for the efficient
administration of a rental contract or easement under
the program.
``SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.
``(a) Rental Contracts.--To be eligible to enroll eligible
land in the program under a rental contract, the owner or
operator of the land shall agree--
``(1) to comply with the terms of the contract and,
when applicable, a restoration agreement;
``(2) to suspend any existing cropland base and
allotment history for the land under another program
administered by the Secretary; and
``(3) to implement a grazing management plan, as
approved by the Secretary, which may be modified upon
mutual agreement of the parties.
``(b) Easements.--To be eligible to enroll eligible land in
the program through an easement, the owner of the land shall
agree--
``(1) to grant an easement to the Secretary or to
an eligible entity described in section 1238Q;
``(2) to create and record an appropriate deed
restriction in accordance with applicable State law to
reflect the easement;
``(3) to provide a written statement of consent to
the easement signed by persons holding a security
interest or any vested interest in the land;
``(4) to provide proof of unencumbered title to the
underlying fee interest in the land that is the subject
of the easement;
``(5) to comply with the terms of the easement and,
when applicable, a restoration agreement;
``(6) to implement a grazing management plan, as
approved by the Secretary, which may be modified upon
mutual agreement of the parties; and
``(7) to eliminate any existing cropland base and
allotment history for the land under another program
administered by the Secretary.
``(c) Restoration Agreements.--
``(1) When applicable.--To be eligible for cost-
share assistance to restore eligible land subject to a
rental contract or an easement under the program, the
owner or operator of the land shall agree to comply
with the terms of a restoration agreement.
``(2) Terms and conditions.--The Secretary shall
prescribe the terms and conditions of a restoration
agreement by which eligible land that is subject to a
rental contract or easement under the program shall be
restored.
``(3) Duties.--The restoration agreement shall
describe the respective duties of the owner or operator
and the Secretary, including the Federal share of
restoration payments and technical assistance.
``(d) Terms and Conditions Applicable to Rental Contracts
and Easements.--
``(1) Permissible activities.--The terms and
conditions of a rental contract or easement under the
program shall permit--
``(A) common grazing practices, including
maintenance and necessary cultural practices,
on the land in a manner that is consistent with
maintaining the viability of grassland, forb,
and shrub species appropriate to that locality;
``(B) haying, mowing, or harvesting for
seed production, subject to appropriate
restrictions during the nesting season for
birds in the local area that are in significant
decline or are conserved in accordance with
Federal or State law, as determined by the
State Conservationist;
``(C) fire presuppression, rehabilitation,
and construction of fire breaks; and
``(D) grazing related activities, such as
fencing and livestock watering.
``(2) Prohibitions.--The terms and conditions of a
rental contract or easement under the program shall
prohibit--
``(A) the production of crops (other than
hay), fruit trees, vineyards, or any other
agricultural commodity that is inconsistent
with maintaining grazing land; and
``(B) except as permitted under a
restoration plan, the conduct of any other
activity that would be inconsistent with
maintaining grazing land enrolled in the
program.
``(3) Additional terms and conditions.--A rental
contract or easement under the program shall include
such additional provisions as the Secretary determines
are appropriate to carry out or facilitate the purposes
and administration of the program.
``(e) Violations.--On a violation of the terms or
conditions of a rental contract, easement, or restoration
agreement entered into under this section--
``(1) the contract or easement shall remain in
force; and
``(2) the Secretary may require the owner or
operator to refund all or part of any payments received
under the program, with interest on the payments as
determined appropriate by the Secretary.
``SEC. 1238P. DUTIES OF SECRETARY.
``(a) Evaluation and Ranking of Applications.--
``(1) Criteria.--The Secretary shall establish
criteria to evaluate and rank applications for rental
contracts and easements under the program.
``(2) Considerations.--In establishing the
criteria, the Secretary shall emphasize support for--
``(A) grazing operations;
``(B) plant and animal biodiversity; and
``(C) grassland, land that contains forbs,
and shrubland under the greatest threat of
conversion to uses other than grazing.
``(b) Payments.--
``(1) In general.--In return for the execution of a
rental contract or the granting of an easement by an
owner or operator under the program, the Secretary
shall--
``(A) make rental contract or easement
payments to the owner or operator in accordance
with paragraphs (2) and (3); and
``(B) make payments to the owner or
operator under a restoration agreement for the
Federal share of the cost of restoration in
accordance with paragraph (4).
``(2) Rental contract payments.--
``(A) Percentage of grazing value of
land.--In return for the execution of a rental
contract by an owner or operator under the
program, the Secretary shall make annual
payments during the term of the contract in an
amount, subject to subparagraph (B), that is
not more than 75 percent of the grazing value
of the land covered by the contract.
``(B) Payment limitation.--Payments made
under 1 or more rental contracts to a person or
legal entity, directly or indirectly, may not
exceed, in the aggregate, $50,000 per year.
``(3) Easement payments.--
``(A) In general.--Subject to subparagraph
(B), in return for the granting of an easement
by an owner under the program, the Secretary
shall make easement payments in an amount not
to exceed the fair market value of the land
less the grazing value of the land encumbered
by the easement.
``(B) Method for determination of
compensation.--In making a determination under
subparagraph (A), the Secretary shall pay as
compensation for an easement acquired under the
program the lowest of--
``(i) the fair market value of the
land encumbered by the easement, as
determined by the Secretary, using--
``(I) the Uniform Standards
of Professional Appraisal
Practices; or
``(II) an area-wide market
analysis or survey;
``(ii) the amount corresponding to
a geographical cap, as determined by
the Secretary in regulations; or
``(iii) the offer made by the
landowner.
``(C) Schedule.--Easement payments may be
provided in up to 10 annual payments of equal
or unequal amount, as agreed to by the
Secretary and the owner.
``(4) Restoration agreement payments.--
``(A) Federal share of restoration.--The
Secretary shall make payments to an owner or
operator under a restoration agreement of not
more than 50 percent of the costs of carrying
out measures and practices necessary to restore
functions and values of that land.
``(B) Payment limitation.--Payments made
under 1 or more restoration agreements to a
person or legal entity, directly or indirectly,
may not exceed, in the aggregate, $50,000 per
year.
``(5) Payments to others.--If an owner or operator
who is entitled to a payment under the program dies,
becomes incompetent, is otherwise unable to receive the
payment, or is succeeded by another person who renders
or completes the required performance, the Secretary
shall make the payment, in accordance with regulations
promulgated by the Secretary and without regard to any
other provision of law, in such manner as the Secretary
determines is fair and reasonable in light of all the
circumstances.
``SEC. 1238Q. DELEGATION OF DUTY.
``(a) Authority to Delegate.--The Secretary may delegate a
duty under the program--
``(1) by transferring title of ownership to an
easement to an eligible entity to hold and enforce; or
``(2) by entering into a cooperative agreement with
an eligible entity for the eligible entity to own,
write, and enforce an easement.
``(b) Eligible Entity Defined.--In this section, the term
`eligible entity' means--
``(1) an agency of State or local government or an
Indian tribe; or
``(2) an organization that--
``(A) is organized for, and at all times
since the formation of the organization has
been operated principally for, one or more of
the conservation purposes specified in clause
(i), (ii), (iii), or (iv) of section
170(h)(4)(A) of the Internal Revenue Code of
1986;
``(B) is an organization described in
section 501(c)(3) of that Code that is exempt
from taxation under section 501(a) of that
Code; and
``(C) is described in--
``(i) paragraph (1) or (2) of
section 509(a) of that Code; or
``(ii) in section 509(a)(3) of that
Code, and is controlled by an
organization described in section
509(a)(2) of that Code.
``(c) Transfer of Title of Ownership.--
``(1) Transfer.--The Secretary may transfer title
of ownership to an easement to an eligible entity to
hold and enforce, in lieu of the Secretary, subject to
the right of the Secretary to conduct periodic
inspections and enforce the easement, if--
``(A) the Secretary determines that the
transfer will promote protection of grassland,
land that contains forbs, or shrubland;
``(B) the owner authorizes the eligible
entity to hold or enforce the easement; and
``(C) the eligible entity agrees to assume
the costs incurred in administering and
enforcing the easement, including the costs of
restoration or rehabilitation of the land as
specified by the owner and the eligible entity.
``(2) Application.--An eligible entity that seeks
to hold and enforce an easement shall apply to the
Secretary for approval.
``(3) Approval by secretary.--The Secretary may
approve an application described in paragraph (2) if
the eligible entity--
``(A) has the relevant experience
necessary, as appropriate for the application,
to administer an easement on grassland, land
that contains forbs, or shrubland;
``(B) has a charter that describes a
commitment to conserving ranchland,
agricultural land, or grassland for grazing and
conservation purposes; and
``(C) has the resources necessary to
effectuate the purposes of the charter.
``(d) Cooperative Agreements.--
``(1) Authorized; terms and conditions.--The
Secretary shall establish the terms and conditions of a
cooperative agreement under which an eligible entity
shall use funds provided by the Secretary to own,
write, and enforce an easement, in lieu of the
Secretary.
``(2) Minimum requirements.--At a minimum, the
cooperative agreement shall--
``(A) specify the qualification of the
eligible entity to carry out the entity's
responsibilities under the program, including
acquisition, monitoring, enforcement, and
implementation of management policies and
procedures that ensure the long-term integrity
of the easement protections;
``(B) require the eligible entity to assume
the costs incurred in administering and
enforcing the easement, including the costs of
restoration or rehabilitation of the land as
specified by the owner and the eligible entity;
``(C) specify the right of the Secretary to
conduct periodic inspections to verify the
eligible entity's enforcement of the easement;
``(D) subject to subparagraph (E), identify
a specific project or a range of projects to be
funded under the agreement;
``(E) allow, upon mutual agreement of the
parties, substitution of qualified projects
that are identified at the time of
substitution;
``(F) specify the manner in which the
eligible entity will evaluate and report the
use of funds to the Secretary;
``(G) allow the eligible entity flexibility
to develop and use terms and conditions for
easements, if the Secretary finds the terms and
conditions consistent with the purposes of the
program and adequate to enable effective
enforcement of the easements;
``(H) if applicable, allow an eligible
entity to include a charitable donation or
qualified conservation contribution (as defined
by section 170(h) of the Internal Revenue Code
of 1986) from the landowner from which the
easement will be purchased as part of the
entity's share of the cost to purchase an
easement; and
``(I) provide for a schedule of payments to
an eligible entity, as agreed to by the
Secretary and the eligible entity.
``(3) Cost sharing.--
``(A) In general.--As part of a cooperative
agreement with an eligible entity under this
subsection, the Secretary may provide a share
of the purchase price of an easement under the
program.
``(B) Minimum share by eligible entity.--
The eligible entity shall be required to
provide a share of the purchase price at least
equivalent to that provided by the Secretary.
``(C) Priority.--The Secretary may accord a
higher priority to proposals from eligible
entities that leverage a greater share of the
purchase price of the easement.
``(4) Violation.--If an eligible entity violates
the terms or conditions of a cooperative agreement
entered into under this subsection--
``(A) the cooperative agreement shall
remain in force; and
``(B) the Secretary may require the
eligible entity to refund all or part of any
payments received by the eligible entity under
the program, with interest on the payments as
determined appropriate by the Secretary.
``(e) Protection of Federal Investment.--When delegating a
duty under this section, the Secretary shall ensure that the
terms of an easement include a contingent right of enforcement
for the Department.''.
Subtitle F--Environmental Quality Incentives Program
SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
(a) Revised Purposes.--Section 1240 of the Food Security
Act of 1985 (16 U.S.C. 3839aa) is amended--
(1) in the matter preceding paragraph (1), by
inserting ``, forest management,'' after ``agricultural
production''; and
(2) by striking paragraphs (3) and (4) and
inserting the following new paragraphs:
``(3) providing flexible assistance to producers to
install and maintain conservation practices that
sustain food and fiber production while--
``(A) enhancing soil, water, and related
natural resources, including grazing land,
forestland, wetland, and wildlife; and
``(B) conserving energy;
``(4) assisting producers to make beneficial, cost
effective changes to production systems (including
conservation practices related to organic production),
grazing management, fuels management, forest
management, nutrient management associated with
livestock, pest or irrigation management, or other
practices on agricultural and forested land; and''.
(b) Technical Correction.--The Food Security Act of 1985 is
amended by inserting immediately before section 1240 (16 U.S.C.
3839aa) the following:
``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM''.
SEC. 2502. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16 U.S.C.
3839aa-1) is amended to read as follows:
``SEC. 1240A. DEFINITIONS.
``In this chapter:
``(1) Eligible land.--
``(A) In general.--The term `eligible land'
means land on which agricultural commodities,
livestock, or forest-related products are
produced.
``(B) Inclusions.--The term `eligible land'
includes the following:
``(i) Cropland.
``(ii) Grassland.
``(iii) Rangeland.
``(iv) Pasture land.
``(v) Nonindustrial private forest
land.
``(vi) Other agricultural land
(including cropped woodland, marshes,
and agricultural land used for the
production of livestock) on which
resource concerns related to
agricultural production could be
addressed through a contract under the
program, as determined by the
Secretary.
``(2) National organic program.--The term `national
organic program' means the national organic program
established under the Organic Foods Production Act of
1990 (7 U.S.C. 6501 et seq.).
``(3) Organic system plan.--The term `organic
system plan' means an organic plan approved under the
national organic program.
``(4) Payment.--The term `payment' means financial
assistance provided to a producer for performing
practices under this chapter, including compensation
for--
``(A) incurred costs associated with
planning, design, materials, equipment,
installation, labor, management, maintenance,
or training; and
``(B) income forgone by the producer.
``(5) Practice.--The term `practice' means 1 or
more improvements and conservation activities that are
consistent with the purposes of the program under this
chapter, as determined by the Secretary, including--
``(A) improvements to eligible land of the
producer, including--
``(i) structural practices;
``(ii) land management practices;
``(iii) vegetative practices;
``(iv) forest management; and
``(v) other practices that the
Secretary determines would further the
purposes of the program; and
``(B) conservation activities involving the
development of plans appropriate for the
eligible land of the producer, including--
``(i) comprehensive nutrient
management planning; and
``(ii) other plans that the
Secretary determines would further the
purposes of the program under this
chapter.
``(6) Program.--The term `program' means the
environmental quality incentives program established by
this chapter.''.
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
Section 1240B of the Food Security Act of 1985 (16 U.S.C.
3839aa-2) is amended to read as follows:
``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.
``(a) Establishment.--During each of the 2002 through 2012
fiscal years, the Secretary shall provide payments to producers
that enter into contracts with the Secretary under the program.
``(b) Practices and Term.--
``(1) Practices.--A contract under the program may
apply to the performance of one or more practices.
``(2) Term.--A contract under the program shall
have a term that--
``(A) at a minimum, is equal to the period
beginning on the date on which the contract is
entered into and ending on the date that is one
year after the date on which all practices
under the contract have been implemented; but
``(B) not to exceed 10 years.
``(c) Bidding Down.--If the Secretary determines that the
environmental values of two or more applications for payments
are comparable, the Secretary shall not assign a higher
priority to the application only because it would present the
least cost to the program.
``(d) Payments.--
``(1) Availability of payments.--Payments are
provided to a producer to implement one or more
practices under the program.
``(2) Limitation on payment amounts.--A payment to
a producer for performing a practice may not exceed, as
determined by the Secretary--
``(A) 75 percent of the costs associated
with planning, design, materials, equipment,
installation, labor, management, maintenance,
or training;
``(B) 100 percent of income foregone by the
producer; or
``(C) in the case of a practice consisting
of elements covered under subparagraphs (A) and
(B)--
``(i) 75 percent of the costs
incurred for those elements covered
under subparagraph (A); and
``(ii) 100 percent of income
foregone for those elements covered
under subparagraph (B).
``(3) Special rule involving payments for foregone
income.--In determining the amount and rate of payments
under paragraph (2)(B), the Secretary may accord great
significance to a practice that, as determined by the
Secretary, promotes--
``(A) residue management;
``(B) nutrient management;
``(C) air quality management;
``(D) invasive species management;
``(E) pollinator habitat;
``(F) animal carcass management technology;
or
``(G) pest management.
``(4) Increased payments for certain producers.--
``(A) In general.--Notwithstanding
paragraph (2), in the case of a producer that
is a limited resource, socially disadvantaged
farmer or rancher or a beginning farmer or
rancher, the Secretary shall increase the
amount that would otherwise be provided to a
producer under this subsection--
``(i) to not more than 90 percent
of the costs associated with planning,
design, materials, equipment,
installation, labor, management,
maintenance, or training; and
``(ii) to not less than 25 percent
above the otherwise applicable rate.
``(B) Advance payments.--Not more than 30
percent of the amount determined under
subparagraph (A) may be provided in advance for
the purpose of purchasing materials or
contracting.
``(5) Financial assistance from other sources.--
Except as provided in paragraph (6), any payments
received by a producer from a State or private
organization or person for the implementation of one or
more practices on eligible land of the producer shall
be in addition to the payments provided to the producer
under this subsection.
``(6) Other payments.--A producer shall not be
eligible for payments for practices on eligible land
under the program if the producer receives payments or
other benefits for the same practice on the same land
under another program under this subtitle.
``(e) Modification or Termination of Contracts.--
``(1) Voluntary modification or termination.--The
Secretary may modify or terminate a contract entered
into with a producer under the program if--
``(A) the producer agrees to the
modification or termination; and
``(B) the Secretary determines that the
modification or termination is in the public
interest.
``(2) Involuntary termination.--The Secretary may
terminate a contract under the program if the Secretary
determines that the producer violated the contract.
``(f) Allocation of Funding.--For each of fiscal years 2002
through 2012, 60 percent of the funds made available for
payments under the program shall be targeted at practices
relating to livestock production.
``(g) Funding for Federally Recognized Native American
Indian Tribes and Alaska Native Corporations.--The Secretary
may enter into alternative funding arrangements with federally
recognized Native American Indian Tribes and Alaska Native
Corporations (including their affiliated membership
organizations) if the Secretary determines that the goals and
objectives of the program will be met by such arrangements, and
that statutory limitations regarding contracts with individual
producers will not be exceeded by any Tribal or Native
Corporation member.
``(h) Water Conservation or Irrigation Efficiency
Practice.--
``(1) Availability of payments.--The Secretary may
provide payments under this subsection to a producer
for a water conservation or irrigation practice.
``(2) Priority.--In providing payments to a
producer for a water conservation or irrigation
practice, the Secretary shall give priority to
applications in which--
``(A) consistent with the law of the State
in which the eligible land of the producer is
located, there is a reduction in water use in
the operation of the producer; or
``(B) the producer agrees not to use any
associated water savings to bring new land,
other than incidental land needed for efficient
operations, under irrigated production, unless
the producer is participating in a watershed-
wide project that will effectively conserve
water, as determined by the Secretary.
``(i) Payments for Conservation Practices Related to
Organic Production.--
``(1) Payments authorized.--The Secretary shall
provide payments under this subsection for conservation
practices, on some or all of the operations of a
producer, related--
``(A) to organic production; and
``(B) to the transition to organic
production.
``(2) Eligibility requirements.--As a condition for
receiving payments under this subsection, a producer
shall agree--
``(A) to develop and carry out an organic
system plan; or
``(B) to develop and implement conservation
practices for certified organic production that
are consistent with an organic system plan and
the purposes of this chapter.
``(3) Payment limitations.--Payments under this
subsection to a person or legal entity, directly or
indirectly, may not exceed, in the aggregate, $20,000
per year or $80,000 during any 6-year period. In
applying these limitations, the Secretary shall not
take into account payments received for technical
assistance.
``(4) Exclusion of certain organic certification
costs.--Payments may not be made under this subsection
to cover the costs associated with organic
certification that are eligible for cost-share payments
under section 10606 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 6523).
``(5) Termination of contracts.--The Secretary may
cancel or otherwise nullify a contract to provide
payments under this subsection if the Secretary
determines that the producer--
``(A) is not pursuing organic
certification; or
``(B) is not in compliance with the Organic
Foods Production Act of 1990 (7 U.S.C. 6501 et
seq.).''.
SEC. 2504. EVALUATION OF APPLICATIONS.
Section 1240C of the Food Security Act of 1985 (16 U.S.C.
3839aa-3) is amended to read as follows:
``SEC. 1240C. EVALUATION OF APPLICATIONS.
``(a) Evaluation Criteria.--The Secretary shall develop
criteria for evaluating applications that will ensure that
national, State, and local conservation priorities are
effectively addressed.
``(b) Prioritization of Applications.--In evaluating
applications under this chapter, the Secretary shall prioritize
applications--
``(1) based on their overall level of cost-
effectiveness to ensure that the conservation practices
and approaches proposed are the most efficient means of
achieving the anticipated environmental benefits of the
project;
``(2) based on how effectively and comprehensively
the project addresses the designated resource concern
or resource concerns;
``(3) that best fulfill the purpose of the
environmental quality incentives program specified in
section 1240(1); and
``(4) that improve conservation practices or
systems in place on the operation at the time the
contract offer is accepted or that will complete a
conservation system.
``(c) Grouping of Applications.--To the greatest extent
practicable, the Secretary shall group applications of similar
crop or livestock operations for evaluation purposes or
otherwise evaluate applications relative to other applications
for similar farming operations.''.
SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY INCENTIVES
PROGRAM.
Section 1240D of the Food Security Act of 1985 (16 U.S.C.
3839aa-4) is amended--
(1) in the matter preceding paragraph (1), by
striking ``technical assistance, cost-share payments,
or incentive'';
(2) in paragraph (2), by striking ``farm or ranch''
and inserting ``farm, ranch, or forest land''; and
(3) in paragraph (4), by striking ``cost-share
payments and incentive''.
SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
(a) Plan of Operations.--Section 1240E(a) of the Food
Security Act of 1985 (16 U.S.C. 3839aa-5(a)) is amended--
(1) in the subsection heading, by striking ``In
General'' and inserting ``Plan of Operations'';
(2) in matter preceding paragraph (1), by striking
``cost-share payments or incentive'';
(3) in paragraph (2), by striking ``and'' after the
semicolon at the end;
(4) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(5) by adding at the end the following new
paragraph:
``(4) in the case of forest land, is consistent
with the provisions of a forest management plan that is
approved by the Secretary, which may include--
``(A) a forest stewardship plan described
in section 5 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103a);
``(B) another practice plan approved by the
State forester; or
``(C) another plan determined appropriate
by the Secretary.''.
(b) Avoidance of Duplication.--Subsection (b) of section
1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa-5) is
amended to read as follows:
``(b) Avoidance of Duplication.--The Secretary shall--
``(1) consider a plan developed in order to acquire
a permit under a water or air quality regulatory
program as the equivalent of a plan of operations under
subsection (a), if the plan contains elements
equivalent to those elements required by a plan of
operations; and
``(2) to the maximum extent practicable, eliminate
duplication of planning activities under the program
under this chapter and comparable conservation
programs.''.
SEC. 2507. DUTIES OF THE SECRETARY.
Section 1240F(1) of the Food Security Act of 1985 (16
U.S.C. 3839aa-6(1)) is amended by striking ``cost-share
payments or incentive''.
SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES PROGRAM
PAYMENTS.
Section 1240G of the Food Security Act of 1985 (16 U.S.C.
3839aa-7) is amended--
(1) by striking ``An individual or entity'' and
inserting ``(a) limitation.--Subject to subsection (b),
a person or legal entity'';
(2) by striking ``$450,000'' and inserting
``$300,000'';
(3) by striking ``the individual'' both places it
appears and inserting ``the person''; and
(4) by adding at the end the following new
subsection:
``(b) Waiver Authority.--In the case of contracts under
this chapter for projects of special environmental significance
(including projects involving methane digesters), as determined
by the Secretary, the Secretary may--
``(1) waive the limitation otherwise applicable
under subsection (a); and
``(2) raise the limitation to not more than
$450,000 during any six-year period.''.
SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa-8) is amended to read as follows:
``SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
``(a) Competitive Grants for Innovative Conservation
Approaches.--
``(1) Grants.--Out of the funds made available to
carry out this chapter, the Secretary may pay the cost
of competitive grants that are intended to stimulate
innovative approaches to leveraging the Federal
investment in environmental enhancement and protection,
in conjunction with agricultural production or forest
resource management, through the program.
``(2) Use.--The Secretary may provide grants under
this subsection to governmental and non-governmental
organizations and persons, on a competitive basis, to
carry out projects that--
``(A) involve producers who are eligible
for payments or technical assistance under the
program;
``(B) leverage Federal funds made available
to carry out the program under this chapter
with matching funds provided by State and local
governments and private organizations to
promote environmental enhancement and
protection in conjunction with agricultural
production;
``(C) ensure efficient and effective
transfer of innovative technologies and
approaches demonstrated through projects that
receive funding under this section, such as
market systems for pollution reduction and
practices for the storage of carbon in soil;
and
``(D) provide environmental and resource
conservation benefits through increased
participation by producers of specialty crops.
``(b) Air Quality Concerns From Agricultural Operations.--
``(1) Implementation assistance.--The Secretary
shall provide payments under this subsection to
producers to implement practices to address air quality
concerns from agricultural operations and to meet
Federal, State, and local regulatory requirements. The
funds shall be made available on the basis of air
quality concerns in a State and shall be used to
provide payments to producers that are cost effective
and reflect innovative technologies.
``(2) Funding.--Of the funds made available to
carry out this chapter, the Secretary shall carry out
this subsection using $37,500,000 for each of fiscal
years 2009 through 2012.''.
SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
Section 1240I of the Food Security Act of 1985 (16 U.S.C.
3839aa-9) is amended to read as follows:
``SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Agricultural water enhancement activity.--The
term `agricultural water enhancement activity' includes
the following activities carried out with respect to
agricultural land:
``(A) Water quality or water conservation
plan development, including resource condition
assessment and modeling.
``(B) Water conservation restoration or
enhancement projects, including conversion to
the production of less water-intensive
agricultural commodities or dryland farming.
``(C) Water quality or quantity restoration
or enhancement projects.
``(D) Irrigation system improvement and
irrigation efficiency enhancement.
``(E) Activities designed to mitigate the
effects of drought.
``(F) Related activities that the Secretary
determines will help achieve water quality or
water conservation benefits on agricultural
land.
``(2) Partner.--The term `partner' means an entity
that enters into a partnership agreement with the
Secretary to carry out agricultural water enhancement
activities on a regional basis, including--
``(A) an agricultural or silvicultural
producer association or other group of such
producers;
``(B) a State or unit of local government;
or
``(C) a federally recognized Indian tribe.
``(3) Partnership agreement.--The term `partnership
agreement' means an agreement between the Secretary and
a partner.
``(4) Program.--The term `program' means the
agricultural water enhancement program established
under subsection (b).
``(b) Establishment of Program.--Beginning in fiscal year
2009, the Secretary shall carry out, in accordance with this
section and using such procedures as the Secretary determines
to be appropriate, an agricultural water enhancement program as
part of the environmental quality incentives program to promote
ground and surface water conservation and improve water quality
on agricultural lands--
``(1) by entering into contracts with, and making
payments to, producers to carry out agricultural water
enhancement activities; or
``(2) by entering into partnership agreements with
partners, in accordance with subsection (c), on a
regional level to benefit working agricultural land.
``(c) Partnership Agreements.--
``(1) Agreements authorized.--The Secretary may
enter into partnership agreements to meet the
objectives of the program described in subsection (b).
``(2) Applications.--An application to the
Secretary to enter into a partnership agreement under
paragraph (1) shall include the following:
``(A) A description of the geographical
area to be covered by the partnership
agreement.
``(B) A description of the agricultural
water quality or water conservation issues to
be addressed by the partnership agreement.
``(C) A description of the agricultural
water enhancement objectives to be achieved
through the partnership.
``(D) A description of the partners
collaborating to achieve the project objectives
and the roles, responsibilities, and
capabilities of each partner.
``(E) A description of the program
resources, including payments the Secretary is
requested to make.
``(F) Such other elements as the Secretary
considers necessary to adequately evaluate and
competitively select applications for
partnership agreements.
``(3) Duties of partners.--A partner under a
partnership agreement shall--
``(A) identify producers participating in
the project and act on their behalf in applying
for the program;
``(B) leverage funds provided by the
Secretary with additional funds to help achieve
project objectives;
``(C) conduct monitoring and evaluation of
project effects; and
``(D) at the conclusion of the project,
report to the Secretary on project results.
``(d) Agricultural Water Enhancement Activities by
Producers.--The Secretary shall select agricultural water
enhancement activities proposed by producers according to
applicable requirements under the environmental quality
incentives program.
``(e) Agricultural Water Enhancement Activities by
Partners.--
``(1) Competitive process.--The Secretary shall
conduct a competitive process to select partners. In
carrying out the process, the Secretary shall make
public the criteria used in evaluating applications.
``(2) Authority to give priority to certain
proposals.--The Secretary may give a higher priority to
proposals from partners that--
``(A) include high percentages of
agricultural land and producers in a region or
other appropriate area;
``(B) result in high levels of applied
agricultural water quality and water
conservation activities;
``(C) significantly enhance agricultural
activity;
``(D) allow for monitoring and evaluation;
and
``(E) assist producers in meeting a
regulatory requirement that reduces the
economic scope of the producer's operation.
``(3) Priority to proposals from states with water
quantity concerns.--The Secretary shall give a higher
priority to proposals from partners that--
``(A) include the conversion of
agricultural land from irrigated farming to
dryland farming;
``(B) leverage Federal funds provided under
the program with funds provided by partners;
and
``(C) assist producers in States with water
quantity concerns, as determined by the
Secretary.
``(4) Administration.--In carrying out this
subsection, the Secretary shall--
``(A) accept qualified applications--
``(i) directly from partners
applying on behalf of producers; or
``(ii) from producers applying
through a partner as part of a regional
agricultural water enhancement project;
and
``(B) ensure that resources made available
for regional agricultural water enhancement
activities are delivered in accordance with
applicable program rules.
``(f) Areas Experiencing Exceptional Drought.--
Notwithstanding the purposes described in section 1240, the
Secretary shall consider as an eligible agricultural water
enhancement activity the use of a water impoundment to capture
surface water runoff on agricultural land if the agricultural
water enhancement activity--
``(1) is located in an area that is experiencing or
has experienced exceptional drought conditions during
the previous two calendar years; and
``(2) will capture surface water runoff through the
construction, improvement, or maintenance of irrigation
ponds or small, on-farm reservoirs.
``(g) Waiver Authority.--To assist in the implementation of
agricultural water enhancement activities under the program,
the Secretary shall waive the applicability of the limitation
in section 1001D(b)(2)(B) of this Act for participating
producers if the Secretary determines that the waiver is
necessary to fulfill the objectives of the program.
``(h) Payments Under Program.--
``(1) In general.--The Secretary shall provide
appropriate payments to producers participating in
agricultural water enhancement activities in an amount
determined by the secretary to be necessary to achieve
the purposes of the program described in subsection
(b).
``(2) Payments to producers in states with water
quantity concerns.--The Secretary shall provide
payments for a period of five years to producers
participating in agricultural water enhancement
activities under proposals described in subsection
(e)(3) in an amount sufficient to encourage producers
to convert from irrigated farming to dryland farming.
``(i) Consistency With State Law.--Any agricultural water
enhancement activity conducted under the program shall be
conducted in a manner consistent with State water law.
``(j) Funding.--
``(1) Availability of funds.--In addition to funds
made available to carry out this chapter under section
1241(a), the Secretary shall carry out the program
using, of the funds of the Commodity Credit
Corporation--
``(A) $73,000,000 for each of fiscal years
2009 and 2010;
``(B) $74,000,000 for fiscal year 2011; and
``(C) $60,000,000 for fiscal year 2012 and
each fiscal year thereafter.
``(2) Limitation on administrative expenses.--None
of the funds made available for regional agricultural
water conservation activities under the program may be
used to pay for the administrative expenses of
partners.''.
Subtitle G--Other Conservation Programs of the Food Security Act of
1985
SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND.
Section 1240M(e) of the Food Security Act of 1985 (16
U.S.C. 3839bb(e)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) Eligibility.--Section 1240N of the Food Security Act of
1985 (16 U.S.C. 3839bb-1) is amended--
(1) in subsection (a), by inserting before the
period at the end the following: ``for the development
of wildlife habitat on private agricultural land,
nonindustrial private forest land, and tribal lands''.
(2) in subsection (b)(1), by striking
``landowners'' and inserting ``owners of lands referred
to in subsection (a)''.
(b) Inclusion of Pivot Corners and Irregular Areas.--
Section 1240N(b)(1)(E) of the Food Security Act of 1985 (16
U.S.C. 3839bb-1(b)(1)(E)) is amended by inserting before the
period at the end the following: ``, including habitat
developed on pivot corners and irregular areas''.
(c) Cost Share for Long-Term Agreements.--Section
1240N(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C.
3839bb-1(b)(2)(B)) is amended by striking ``15 percent'' and
inserting ``25 percent''.
(d) Priority for Certain Conservation Initiatives; Payment
Limitation.--Section 1240N of the Food Security Act of 1985 (16
U.S.C. 3839bb-1) is amended by adding at the end the following
new subsections:
``(d) Priority for Certain Conservation Initiatives.--In
carrying out this section, the Secretary may give priority to
projects that would address issues raised by State, regional,
and national conservation initiatives.
``(e) Payment Limitation.--Payments made to a person or
legal entity, directly or indirectly, under the program may not
exceed, in the aggregate, $50,000 per year.''.
SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
Section 1240O(b) of the Food Security Act of 1985 (16
U.S.C. 3839bb-2(b)) is amended by striking ``$5,000,000 for
each of fiscal years 2002 through 2007'' and inserting
``$20,000,000 for each of fiscal years 2008 through 2012''.
SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.
Section 1240P of the Food Security Act of 1985 (16 U.S.C.
3839bb-3) is amended to read as follows:
``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.
``(a) Program Authorized.--The Secretary may carry out the
Great Lakes basin program for soil erosion and sediment control
(referred to in this section as the `program'), including
providing assistance to implement the recommendations of the
Great Lakes Regional Collaboration Strategy to Restore and
Protect the Great Lakes.
``(b) Consultation and Cooperation.--The Secretary shall
carry out the program in consultation with the Great Lakes
Commission created by Article IV of the Great Lakes Basin
Compact (82 Stat. 415) and in cooperation with the
Administrator of the Environmental Protection Agency and the
Secretary of the Army.
``(c) Assistance.--In carrying out the program, the
Secretary may--
``(1) provide project demonstration grants, provide
technical assistance, and carry out information and
educational programs to improve water quality in the
Great Lakes basin by reducing soil erosion and
improving sediment control; and
``(2) establish a priority for projects and
activities that--
``(A) directly reduce soil erosion or
improve sediment control;
``(B) reduce soil loss in degraded rural
watersheds; or
``(C) improve water quality for downstream
watersheds.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out the program
$5,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 is amended by inserting after section 1240P (16
U.S.C. 3839bb-3) the following new section:
``SEC. 1240Q. CHESAPEAKE BAY WATERSHED.
``(a) Chesapeake Bay Watershed Defined.--In this section,
the term `Chesapeake Bay watershed' means all tributaries,
backwaters, and side channels, including their watersheds,
draining into the Chesapeake Bay.
``(b) Establishment and Purpose.--The Secretary shall
assist producers in implementing conservation activities on
agricultural lands in the Chesapeake Bay watershed for the
purposes of--
``(1) improving water quality and quantity in the
Chesapeake Bay watershed; and
``(2) restoring, enhancing, and preserving soil,
air, and related resources in the Chesapeake Bay
watershed.
``(c) Conservation Activities.--The Secretary shall deliver
the funds made available to carry out this section through
applicable programs under this subtitle to assist producers in
enhancing land and water resources--
``(1) by controlling erosion and reducing sediment
and nutrient levels in ground and surface water; and
``(2) by planning, designing, implementing, and
evaluating habitat conservation, restoration, and
enhancement measures where there is significant
ecological value if the lands are--
``(A) retained in their current use; or
``(B) restored to their natural condition.
``(d) Agreements.--
``(1) In general.--The Secretary shall--
``(A) enter into agreements with producers
to carry out the purposes of this section; and
``(B) use the funds made available to carry
out this section to cover the costs of the
program involved with each agreement.
``(2) Special considerations.--In entering into
agreements under this subsection, the Secretary shall
give special consideration to, and begin evaluating,
applications with producers in the following river
basins:
``(A) The Susquehanna River.
``(B) The Shenandoah River.
``(C) The Potomac River (including North
and South Potomac).
``(D) The Patuxent River.
``(e) Duties of the Secretary.--In carrying out the
purposes in this section, the Secretary shall--
``(1) where available, use existing plans, models,
and assessments to assist producers in implementing
conservation activities; and
``(2) proceed expeditiously with the implementation
of any agreement with a producer that is consistent
with State strategies for the restoration of the
Chesapeake Bay watershed.
``(f) Consultation.--The Secretary, in consultation with
appropriate Federal agencies, shall ensure conservation
activities carried out under this section complement Federal
and State programs, including programs that address water
quality, in the Chesapeake Bay watershed.
``(g) Sense of Congress Regarding Chesapeake Bay Executive
Council.--It is the sense of Congress that the Secretary should
be a member of the Chesapeake Bay Executive Council, and is
authorized to do so under section 1(3) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590a(3)).
``(h) Funding.--
``(1) Availability.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use, to the
maximum extent practicable--
``(A) $23,000,000 for fiscal year 2009;
``(B) $43,000,000 for fiscal year 2010;
``(C) $72,000,000 for fiscal year 2011; and
``(D) $50,000,000 for fiscal year 2012.
``(2) Duration of availability.--Funds made
available under paragraph (1) shall remain available
until expended.''
SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by inserting
after section 1240Q, as added by section 2605, the following
new section:
``SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
``(a) Establishment.--The Secretary shall establish a
voluntary public access program under which States and tribal
governments may apply for grants to encourage owners and
operators of privately-held farm, ranch, and forest land to
voluntarily make that land available for access by the public
for wildlife-dependent recreation, including hunting or fishing
under programs administered by the States and tribal
governments.
``(b) Applications.--In submitting applications for a grant
under the program, a State or tribal government shall
describe--
``(1) the benefits that the State or tribal
government intends to achieve by encouraging public
access to private farm and ranch land for--
``(A) hunting and fishing; and
``(B) to the maximum extent practicable,
other recreational purposes; and
``(2) the methods that will be used to achieve
those benefits.
``(c) Priority.--In approving applications and awarding
grants under the program, the Secretary shall give priority to
States and tribal governments that propose--
``(1) to maximize participation by offering a
program the terms of which are likely to meet with
widespread acceptance among landowners;
``(2) to ensure that land enrolled under the State
or tribal government program has appropriate wildlife
habitat;
``(3) to strengthen wildlife habitat improvement
efforts on land enrolled in a special conservation
reserve enhancement program described in section
1234(f)(4) by providing incentives to increase public
hunting and other recreational access on that land;
``(4) to use additional Federal, State, tribal
government, or private resources in carrying out the
program; and
``(5) to make available to the public the location
of land enrolled.
``(d) Relationship to Other Laws.--
``(1) No preemption.--Nothing in this section
preempts a State or tribal government law, including
any State or tribal government liability law.
``(2) Effect of inconsistent opening dates for
migratory bird hunting.--The Secretary shall reduce by
25 percent the amount of a grant otherwise determined
for a State under the program if the opening dates for
migratory bird hunting in the State are not consistent
for residents and non-residents.
``(e) Regulations.--The Secretary shall promulgate such
regulations as are necessary to carry out this section.
``(f) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent
practicable, $50,000,000 for the period of fiscal years 2009
through 2012.''.
Subtitle H--Funding and Administration of Conservation Programs
SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF
1985.
(a) In General.--Section 1241(a) of the Food Security Act
of 1985 (16 U.S.C. 3841(a)) is amended in the matter preceding
paragraph (1), by striking ``2007'' and inserting ``2012''.
(b) Conservation Reserve Program.--Paragraph (1) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended by striking the period at the end and inserting the
following: ``, including to the maximum extent practicable--
``(A) $100,000,000 for the period of fiscal
years 2009 through 2012 to provide cost share
payments under paragraph (3) of section 1234(b)
in connection with thinning activities
conducted on land described in subparagraph
(A)(iii) of such paragraph; and
``(B) $25,000,000 for the period of fiscal
years 2009 through 2012 to carry out section
1235(f) to facilitate the transfer of land
subject to contracts from retired or retiring
owners and operators to beginning farmers or
ranchers and socially disadvantaged farmers or
ranchers.''.
(c) Conservation Security and Conservation Stewardship
Programs.--Paragraph (3) of section 1241(a) of the Food
Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as
follows:
``(3)(A) Conservation security program.--The
conservation security program under subchapter A of
chapter 2, using such sums as are necessary to
administer contracts entered into before September 30,
2008.
``(B) Conservation stewardship program.--The
conservation stewardship program under subchapter B of
chapter 2.''.
(d) Farmland Protection Program.--Paragraph (4) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended to read as follows:
``(4) The farmland protection program under
subchapter C of chapter 2, using, to the maximum extent
practicable--
``(A) $97,000,000 in fiscal year 2008;
``(B) $121,000,000 in fiscal year 2009;
``(C) $150,000,000 in fiscal year 2010;
``(D) $175,000,000 in fiscal year 2011; and
``(E) $200,000,000 in fiscal year 2012.''.
(e) Grassland Reserve Program.--Paragraph (5) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended to read as follows:
``(5) The grassland reserve program under
subchapter D of chapter 2.''.
(f) Environmental Quality Incentives Program.--Paragraph
(6) of section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended to read as follows:
``(6) The environmental quality incentives program
under chapter 4, using, to the maximum extent
practicable--
``(A) $1,200,000,000 in fiscal year 2008;
``(B) $1,337,000,000 in fiscal year 2009;
``(C) $1,450,000,000 in fiscal year 2010;
``(D) $1,588,000,000 in fiscal year 2011;
and
``(E) $1,750,000,000 in fiscal year
2012.''.
(g) Wildlife Habitat Incentives Program.--Paragraph (7)(D)
of section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT CONSERVATION
PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by adding at the end the following new
subsection:
``(e) Acceptance and Use of Contributions.--
``(1) Authority to establish contribution
accounts.--Subject to paragraph (2), the Secretary may
establish a sub-account for each conservation program
administered by the Secretary under subtitle D to
accept contributions of non-Federal funds to support
the purposes of the program.
``(2) Deposit and use of contributions.--
Contributions of non-Federal funds received for a
conservation program administered by the Secretary
under subtitle D shall be deposited into the sub-
account established under this subsection for the
program and shall be available to the Secretary,
without further appropriation and until expended, to
carry out the program.''.
SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.
(a) Regional Equity and Flexibility.--Section 1241(d) of
the Food Security Act of 1985 (16 U.S.C. 3841(d)) is amended--
(1) by striking ``Before April 1'' and inserting
the following:
``(1) Priority funding to promote equity.--Before
April 1'';
(2) by striking ``$12,000,000'' and inserting
``$15,000,000''; and
(3) by adding at the end the following new
paragraph:
``(2) Specific funding allocations.--In determining
the specific funding allocations for States under
paragraph (1), the Secretary shall consider the
respective demand in each State for each program
covered by such paragraph.''.
(b) Allocations Review and Update.--Section 1241 of the
Food Security Act of 1985 (16 U.S.C. 3841) is amended by
inserting after subsection (e), as added by section 2702, the
following new subsection:
``(f) Allocations Review and Update.--
``(1) Review.--Not later than January 1, 2012, the
Secretary shall conduct a review of conservation
programs and authorities under this title that utilize
allocation formulas to determine the sufficiency of the
formulas in accounting for State-level economic
factors, level of agricultural infrastructure, or
related factors that affect conservation program costs.
``(2) Update.--The Secretary shall improve
conservation program allocation formulas as necessary
to ensure that the formulas adequately reflect the
costs of carrying out the conservation programs.''.
SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO IMPROVE THEIR
ACCESS TO CONSERVATION PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by inserting after subsection (f), as added by
section 2703(b), the following new subsection:
``(g) Assistance to Certain Farmers or Ranchers for
Conservation Access.--
``(1) Assistance.--Of the funds made available for
each of fiscal years 2009 through 2012 to carry out the
environmental quality incentives program and the acres
made available for each of such fiscal years to carry
out the conservation stewardship program, the Secretary
shall use, to the maximum extent practicable--
``(A) 5 percent to assist beginning farmers
or ranchers; and
``(B) 5 percent to assist socially
disadvantaged farmers or ranchers.
``(2) Repooling of funds.--In any fiscal year,
amounts not obligated under paragraph (1) by a date
determined by the Secretary shall be available for
payments and technical assistance to all persons
eligible for payments or technical assistance in that
fiscal year under the environmental quality incentives
program.
``(3) Repooling of acres.--In any fiscal year,
acres not obligated under paragraph (1) by a date
determined by the Secretary shall be available for use
in that fiscal year under the conservation stewardship
program.''.
SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE UNDER
CONSERVATION PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by inserting after subsection (g), as added by
section 2704, the following new subsection:
``(h) Report on Program Enrollments and Assistance.--
Beginning in calendar year 2009, and each year 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 semiannual report
containing statistics by State related to enrollments in
conservation programs under this subtitle, as follows:
``(1) Payments made under the wetlands reserve
program for easements valued at $250,000 or greater.
``(2) Payments made under the farmland protection
program for easements in which the Federal share is
$250,000 or greater.
``(3) Payments made under the grassland reserve
program valued at $250,000 or greater.
``(4) Payments made under the environmental quality
incentives program for land determined to have special
environmental significance pursuant to section
1240G(b).
``(5) Payments made under the agricultural water
enhancement program subject to the waiver of adjusted
gross income limitations pursuant to section 1240I(g).
``(6) Waivers granted by the Secretary under
section 1001D(b)(2) of this Act in order to protect
environmentally sensitive land of special
significance.''.
SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE.
Section 1242 of the Food Security Act of 1985 (16 U.S.C.
3842) is amended to read as follows:
``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.
``(a) Definition of Eligible Participant.--In this section,
the term `eligible participant' means a producer, landowner, or
entity that is participating in, or seeking to participate in,
programs for which the producer, landowner, or entity is
otherwise eligible to participate in under this title or the
agricultural management assistance program under section 524 of
the Federal Crop Insurance Act (7 U.S.C. 1524).
``(b) Purpose of Technical Assistance.--The purpose of
technical assistance authorized by this section is to provide
eligible participants with consistent, science-based, site-
specific practices designed to achieve conservation objectives
on land active in agricultural, forestry, or related uses.
``(c) Provision of Technical Assistance.--The Secretary
shall provide technical assistance under this title to an
eligible participant--
``(1) directly;
``(2) through an agreement with a third-party
provider; or
``(3) at the option of the eligible participant,
through a payment, as determined by the Secretary, to
the eligible participant for an approved third-party
provider, if available.
``(d) Non-Federal Assistance.--The Secretary may request
the services of, and enter into cooperative agreements or
contracts with, other agencies within the Department or non-
Federal entities to assist the Secretary in providing technical
assistance necessary to assist in implementing conservation
programs under this title.
``(e) Certification of Third-Party Providers.--
``(1) Purpose.--The purpose of the third-party
provider program is to increase the availability and
range of technical expertise available to eligible
participants to plan and implement conservation
measures.
``(2) Regulations.--Not later than 180 days after
the date of the enactment of the Food, Conservation,
and Energy Act of 2008, the Secretary shall promulgate
such regulations as are necessary to carry out this
section.
``(3) Expertise.--In promulgating such regulations,
the Secretary, to the maximum extent practicable,
shall--
``(A) ensure that persons with expertise in
the technical aspects of conservation planning,
watershed planning, and environmental
engineering, including commercial entities,
nonprofit entities, State or local governments
or agencies, and other Federal agencies, are
eligible to become approved providers of the
technical assistance;
``(B) provide national criteria for the
certification of third-party providers; and
``(C) approve any unique certification
standards established at the State level.
``(f) Administration.--
``(1) Funding.--Effective for fiscal year 2008 and
each subsequent fiscal year, funds of the Commodity
Credit Corporation made available to carry out
technical assistance for each of the programs specified
in section 1241 shall be available for the provision of
technical assistance from third-party providers under
this section.
``(2) Term of agreement.--An agreement with a
third-party provider under this section shall have a
term that--
``(A) at a minimum, is equal to the period
beginning on the date on which the agreement is
entered into and ending on the date that is 1
year after the date on which all activities
performed pursuant to the agreement have been
completed;
``(B) does not exceed 3 years; and
``(C) can be renewed, as determined by the
Secretary.
``(3) Review of certification requirements.--Not
later than 1 year after the date of enactment of the
Food, Conservation, and Energy Act of 2008, the
Secretary shall--
``(A) review certification requirements for
third-party providers; and
``(B) make any adjustments considered
necessary by the Secretary to improve
participation.
``(4) Eligible activities.--
``(A) Inclusion of activities.--The
Secretary may include as activities eligible
for payments to a third party provider--
``(i) technical services provided
directly to eligible participants, such
as conservation planning, education and
outreach, and assistance with design
and implementation of conservation
practices; and
``(ii) related technical assistance
services that accelerate conservation
program delivery.
``(B) Exclusions.--The Secretary shall not
designate as an activity eligible for payments
to a third party provider any service that is
provided by a business, or equivalent, in
connection with conducting business and that is
customarily provided at no cost.
``(5) Payment amounts.--The Secretary shall
establish fair and reasonable amounts of payments for
technical services provided by third-party providers.
``(g) Availability of Technical Services.--
``(1) In general.--In carrying out the programs
under this title and the agricultural management
assistance program under section 524 of the Federal
Crop Insurance Act (7 U.S.C. 1524), the Secretary shall
make technical services available to all eligible
participants who are installing an eligible practice.
``(2) Technical service contracts.--In any case in
which financial assistance is not provided under a
program referred to in paragraph (1), the Secretary may
enter into a technical service contract with the
eligible participant for the purposes of assisting in
the planning, design, or installation of an eligible
practice.
``(h) Review of Conservation Practice Standards.--
``(1) Review required.--The Secretary shall--
``(A) review conservation practice
standards, including engineering design
specifications, in effect on the date of the
enactment of the Food, Conservation, and Energy
Act of 2008;
``(B) ensure, to the maximum extent
practicable, the completeness and relevance of
the standards to local agricultural, forestry,
and natural resource needs, including specialty
crops, native and managed pollinators,
bioenergy crop production, forestry, and such
other needs as are determined by the Secretary;
and
``(C) ensure that the standards provide for
the optimal balance between meeting site-
specific conservation needs and minimizing
risks of design failure and associated costs of
construction and installation.
``(2) Consultation.--In conducting the review under
paragraph (1), the Secretary shall consult with
eligible participants, crop consultants, cooperative
extension and land grant universities, nongovernmental
organizations, and other qualified entities.
``(3) Expedited revision of standards.--If the
Secretary determines under paragraph (1) that revisions
to the conservation practice standards, including
engineering design specifications, are necessary, the
Secretary shall establish an administrative process for
expediting the revisions.
``(i) Addressing Concerns of Speciality Crop, Organic, and
Precision Agriculture Producers.--
``(1) In general.--The Secretary shall--
``(A) to the maximum extent practicable,
fully incorporate specialty crop production,
organic crop production, and precision
agriculture into the conservation practice
standards; and
``(B) provide for the appropriate range of
conservation practices and resource mitigation
measures available to producers involved with
organic or specialty crop production or
precision agriculture.
``(2) Availability of adequate technical
assistance.--
``(A) In general.--The Secretary shall
ensure that adequate technical assistance is
available for the implementation of
conservation practices by producers involved
with organic, specialty crop production, or
precision agriculture through Federal
conservation programs.
``(B) Requirements.--In carrying out
subparagraph (A), the Secretary shall develop--
``(i) programs that meet specific
needs of producers involved with
organic, specialty crop production or
precision agriculture through
cooperative agreements with other
agencies and nongovernmental
organizations; and
``(ii) program specifications that
allow for innovative approaches to
engage local resources in providing
technical assistance for planning and
implementation of conservation
practices.''.
SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) Transfer of Existing Provisions.--Subsections (a), (c),
and (d) of section 1243 of the Food Security Act of 1985 (16
U.S.C. 3843) are--
(1) redesignated as subsections (c), (d), and (e),
respectively; and
(2) transferred to appear at the end of section
1244 of such Act (16 U.S.C. 3844).
(b) Establishment of Partnership Initiative.--Section 1243
of the Food Security Act of 1985 (16 U.S.C. 3843), as amended
by subsection (a), is amended to read as follows:
``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
``(a) Establishment of Initiative.--The Secretary shall
establish a cooperative conservation partnership initiative (in
this section referred to as the `Initiative') to work with
eligible partners to provide assistance to producers enrolled
in a program described in subsection (c)(1) that will enhance
conservation outcomes on agricultural and nonindustrial private
forest land.
``(b) Purposes.--The purposes of a partnership entered into
under the Initiative shall be--
``(1) to address conservation priorities involving
agriculture and nonindustrial private forest land on a
local, State, multi-State, or regional level;
``(2) to encourage producers to cooperate in
meeting applicable Federal, State, and local regulatory
requirements related to production involving
agriculture and nonindustrial private forest land;
``(3) to encourage producers to cooperate in the
installation and maintenance of conservation practices
that affect multiple agricultural or nonindustrial
private forest operations; or
``(4) to promote the development and demonstration
of innovative conservation practices and delivery
methods, including those for specialty crop and organic
production and precision agriculture producers.
``(c) Initiative Programs.--
``(1) Covered programs.--Except as provided in
paragraph (2), the Initiative applies to all
conservation programs under subtitle D.
``(2) Excluded programs.--The Initiative shall not
include the following programs:
``(A) Conservation reserve program.
``(B) Wetlands reserve program.
``(C) Farmland protection program.
``(D) Grassland reserve program.
``(d) Eligible Partners.--The Secretary may enter into a
partnership under the Initiative with one or more of the
following:
``(1) States and local governments.
``(2) Indian tribes.
``(3) Producer associations.
``(4) Farmer cooperatives.
``(5) Institutions of higher education.
``(6) Nongovernmental organizations with a history
of working cooperatively with producers to effectively
address conservation priorities related to agricultural
production and nonindustrial private forest land.
``(e) Implementation Agreements.--The Secretary shall carry
out the Initiative--
``(1) by selecting, through a competitive process,
eligible partners from among applications submitted
under subsection (f); and
``(2) by entering into multi-year agreements with
eligible partners so selected for a period not to
exceed 5 years.
``(f) Applications.--
``(1) Required information.--An application to
enter into a partnership agreement under the Initiative
shall include the following:
``(A) A description of the area covered by
the agreement, conservation priorities in the
area, conservation objectives to be achieved,
and the expected level of participation by
agricultural producers and nonindustrial
private forest landowners.
``(B) A description of the partner, or
partners, collaborating to achieve the
objectives of the agreement, and the roles,
responsibilities, and capabilities of the
partner.
``(C) A description of the resources that
are requested from the Secretary, and the non-
Federal resources that will be leveraged by the
Federal contribution.
``(D) A description of the plan for
monitoring, evaluating, and reporting on
progress made towards achieving the objectives
of the agreement.
``(E) Such other information that may be
required by the Secretary.
``(2) Priorities.--The Secretary shall give
priority to applications for agreements that--
``(A) have a high percentage of producers
involved and working agricultural or
nonindustrial private forest land included in
the area covered by the agreement;
``(B) significantly leverage non-Federal
financial and technical resources and
coordinate with other local, State, or Federal
efforts;
``(C) deliver high percentages of applied
conservation to address water quality, water
conservation, or State, regional, or national
conservation initiatives;
``(D) provide innovation in conservation
methods and delivery, including outcome-based
performance measures and methods; or
``(E) meet other factors, as determined by
the Secretary.
``(g) Relationship to Covered Programs.--
``(1) Compliance with program rules.--Except as
provided in paragraph (2), the Secretary shall ensure
that resources made available under the Initiative are
delivered in accordance with the applicable rules of
programs specified in subsection (c)(1) through normal
program mechanisms relating to program functions,
including rules governing appeals, payment limitations,
and conservation compliance.
``(2) Adjustment.--The Secretary may adjust the
elements of any program specified in subsection
(c)(1)--
``(A) to better reflect unique local
circumstances and purposes if the Secretary
determines such adjustments are necessary to
achieve the purposes of the Initiative; and
``(B) to provide preferential enrollment to
producers who are eligible for the applicable
program and to participate in the Initiative.
``(h) Technical and Financial Assistance.--The Secretary
shall provide appropriate technical and financial assistance to
producers participating in the Initiative in an amount
determined to be necessary to achieve the purposes of the
Initiative.
``(i) Funding.--
``(1) Reservation.--Of the funds and acres made
available for each of fiscal years 2009 through 2012 to
implement the programs described in subsection (c)(1),
the Secretary shall reserve 6 percent of the funds and
acres to ensure an adequate source of funds and acres
for the Initiative.
``(2) Allocation requirements.--Of the funds and
acres reserved for the Initiative for a fiscal year,
the Secretary shall allocate--
``(A) 90 percent of the funds and acres to
projects based on the direction of State
conservationists, with the advice of State
technical committees; and
``(B) 10 percent of the funds and acres to
projects based on a national competitive
process established by the Secretary.
``(3) Unused funding.--Any funds and acres reserved
for a fiscal year under paragraph (1) that are not
obligated by April 1 of that fiscal year may be used to
carry out other activities under the program that is
the source of the funds or acres during the remainder
of that fiscal year.
``(4) Administrative costs of partners.--Overhead
or administrative costs of partners may not be covered
by funds provided through the Initiative.''.
SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.
Section 1244 of the Food Security Act of 1985 (16 U.S.C.
3844), as amended by section 2707, is further amended--
(1) by striking subsection (a) and inserting the
following new subsection:
``(a) Incentives for Certain Farmers and Ranchers and
Indian Tribes.--
``(1) Incentives authorized.--In carrying out any
conservation program administered by the Secretary, the
Secretary may provide to a person or entity specified
in paragraph (2) incentives to participate in the
conservation program--
``(A) to foster new farming and ranching
opportunities; and
``(B) to enhance long-term environmental
goals.
``(2) Covered persons.--Incentives authorized by
paragraph (1) may be provided to the following:
``(A) Beginning farmers or ranchers.
``(B) Socially disadvantaged farmers or
ranchers.
``(C) Limited resource farmers or ranchers.
``(D) Indian tribes.''; and
(2) by adding at the end the following new
subsections:
``(f) Acreage Limitations.--
``(1) Limitations.--
``(A) Enrollments.--The Secretary shall not
enroll more than 25 percent of the cropland in
any county in the programs administered under
subchapters B and C of chapter 1 of subtitle D.
``(B) Easements.--Not more than 10 percent
of the cropland in a country may be subject to
an easement acquired under subchapter C of
chapter 1 of subtitle D.
``(2) Exceptions.--The Secretary may exceed the
limitation in paragraph (1)(A), if the Secretary
determines that--
``(A) the action would not adversely affect
the local economy of a county; and
``(B) operators in the county are having
difficulties complying with conservation plans
implemented under section 1212.
``(3) Waiver to exclude certain acreage.--The
Secretary may grant a waiver to exclude acreage
enrolled under subsection (c)(2)(B) or (f)(4) of
section 1234 from the limitations in paragraph (1)(A)
with the concurrence of the county government of the
county involved.
``(4) Shelterbelts and windbreaks.--The limitations
established under paragraph (1) shall not apply to
cropland that is subject to an easement under
subchapter C of chapter 1 that is used for the
establishment of shelterbelts and windbreaks.
``(g) Compliance and Performance.--For each conservation
program under subtitle D, the Secretary shall develop
procedures--
``(1) to monitor compliance with program
requirements;
``(2) to measure program performance;
``(3) to demonstrate whether the long-term
conservation benefits of the program are being
achieved;
``(4) to track participation by crop and livestock
types; and
``(5) to coordinate activities described in this
subsection with the national conservation program
authorized under section 5 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2004).
``(h) Encouragement of Pollinator Habitat Development and
Protection.--In carrying out any conservation program
administered by the Secretary, the Secretary may, as
appropriate, encourage--
``(1) the development of habitat for native and
managed pollinators; and
``(2) the use of conservation practices that
benefit native and managed pollinators.
``(i) Streamlined Application Process.--
``(1) In general.--In carrying out each
conservation program under this title, the Secretary
shall ensure that the application process used by
producers and landowners is streamlined to minimize
complexity and eliminate redundancy.
``(2) Review and streamlining.--
``(A) Review.--The Secretary shall carry
out a review of the application forms and
processes for each conservation program covered
by this subsection.
``(B) Streamlining.--On completion of the
review the Secretary shall revise application
forms and processes, as necessary, to ensure
that--
``(i) all required application
information is essential for the
efficient, effective, and accountable
implementation of conservation
programs;
``(ii) conservation program
applicants are not required to provide
information that is readily available
to the Secretary through existing
information systems of the Department
of Agriculture;
``(iii) information provided by the
applicant is managed and delivered
efficiently for use in all stages of
the application process, or for
multiple applications; and
``(iv) information technology is
used effectively to minimize data and
information input requirements.
``(3) Implementation and notification.--Not later
than 1 year after the date of enactment of the Food,
Conservation, and Energy Act of 2008, the Secretary
shall submit to Congress a written notification of
completion of the requirements of this subsection.''.
SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.
Subtitle E of title XII of the Food Security Act of 1985 is
amended by inserting after section 1244 (16 U.S.C. 3844) the
following new section:
``SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.
``(a) Technical Guidelines Required.--The Secretary shall
establish technical guidelines that outline science-based
methods to measure the environmental services benefits from
conservation and land management activities in order to
facilitate the participation of farmers, ranchers, and forest
landowners in emerging environmental services markets. The
Secretary shall give priority to the establishment of
guidelines related to farmer, rancher, and forest landowner
participation in carbon markets.
``(b) Establishment.--The Secretary shall establish
guidelines under subsection (a) for use in developing the
following:
``(1) A procedure to measure environmental services
benefits.
``(2) A protocol to report environmental services
benefits.
``(3) A registry to collect, record and maintain
the benefits measured.
``(c) Verification Requirements.--
``(1) Verification of reports.--The Secretary shall
establish guidelines for a process to verify that a
farmer, rancher, or forest landowner who reports an
environmental services benefit pursuant to the protocol
required by paragraph (2) of subsection (b) for
inclusion in the registry required by paragraph (3) of
such subsection has implemented the conservation or
land management activity covered by the report.
``(2) Role of third parties.--In establishing the
verification guidelines required by paragraph (1), the
Secretary shall consider the role of third-parties in
conducting independent verification of benefits
produced for environmental services markets and other
functions, as determined by the Secretary.
``(d) Use of Existing Information.--In carrying out
subsection (b), the Secretary shall build on activities or
information in existence on the date of the enactment of the
Food, Conservation, and Energy Act of 2008 regarding
environmental services markets.
``(e) Consultation.--In carrying out this section, the
Secretary shall consult with the following:
``(1) Federal and State government agencies.
``(2) Nongovernmental interests including--
``(A) farm, ranch, and forestry producers;
``(B) financial institutions involved in
environmental services trading;
``(C) institutions of higher education with
relevant expertise or experience;
``(D) nongovernmental organizations with
relevant expertise or experience; and
``(E) private sector representatives with
relevant expertise or experience.
``(3) Other interested persons, as determined by
the Secretary.''.
SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
Subtitle F of title XII of the Food Security Act of 1985 is
amended by inserting after section 1251 (16 U.S.C. 2005a) the
following new section:
``SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
``(a) Establishment and Purpose.--The Secretary shall
establish a conservation experienced services program (in this
section referred to as the `ACES Program') for the purpose of
utilizing the talents of individuals who are age 55 or older,
but who are not employees of the Department of Agriculture or a
State agriculture department, to provide technical services in
support of the conservation-related programs and authorities
carried out by the Secretary. Such technical services may
include conservation planning assistance, technical
consultation, and assistance with design and implementation of
conservation practices.
``(b) Program Agreements.--
``(1) Relation to older american community service
employment program.--Notwithstanding any other
provision of law relating to Federal grants,
cooperative agreements, or contracts, to carry out the
ACES program during a fiscal year, the Secretary may
enter into agreements with nonprofit private agencies
and organizations eligible to receive grants for that
fiscal year under the Community Service Senior
Opportunities Act (42 U.S.C. 3056 et seq.) to secure
participants for the ACES program who will provide
technical services under the ACES program.
``(2) Required determination.--Before entering into
an agreement under paragraph (1), the Secretary shall
ensure that the agreement would not--
``(A) result in the displacement of
individuals employed by the Department,
including partial displacement through
reduction of non-overtime hours, wages, or
employment benefits;
``(B) result in the use of an individual
under the ACES program for a job or function in
a case in which a Federal employee is in a
layoff status from the same or a substantially-
equivalent job or function with the Department;
or
``(C) affect existing contracts for
services.
``(c) Funding Source.--
``(1) In general.--Except as provided in paragraph
(2), the Secretary may carry out the ACES program using
funds made available to carry out each program under
this title.
``(2) Exclusions.--Funds made available to carry
out the following programs may not be used to carry out
the ACES program:
``(A) The conservation reserve program.
``(B) The wetlands reserve program.
``(C) The grassland reserve program.
``(D) The conservation stewardship program.
``(d) Liability.--An individual providing technical
services under the ACES program is deemed to be an employee of
the United States Government for purposes of chapter 171 of
title 28, United States Code, if the individual--
``(1) is providing technical services pursuant to
an agreement entered into under subsection (b); and
``(2) is acting within the scope of the
agreement.''.
SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND THEIR
RESPONSIBILITIES.
Subtitle G of title XII of the Farm Security Act of 1985
(16 U.S.C. 3861, 3862) is amended to read as follows:
``Subtitle G--State Technical Committees
``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.
``(a) Establishment.--The Secretary shall establish a
technical committee in each State to assist the Secretary in
the considerations relating to implementation and technical
aspects of the conservation programs under this title.
``(b) Standards.--Not later than 180 days after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall develop--
``(1) standard operating procedures to standardize
the operations of State technical committees; and
``(2) standards to be used by State technical
committees in the development of technical guidelines
under section 1262(b) for the implementation of the
conservation provisions of this title.
``(c) Composition.--Each State technical committee shall be
composed of agricultural producers and other professionals that
represent a variety of disciplines in the soil, water, wetland,
and wildlife sciences. The technical committee for a State
shall include representatives from among the following:
``(1) The Natural Resources Conservation Service.
``(2) The Farm Service Agency.
``(3) The Forest Service.
``(4) The National Institute of Food and
Agriculture.
``(5) The State fish and wildlife agency.
``(6) The State forester or equivalent State
official.
``(7) The State water resources agency.
``(8) The State department of agriculture.
``(9) The State association of soil and water
conservation districts.
``(10) Agricultural producers representing the
variety of crops and livestock or poultry raised within
the State.
``(11) Owners of nonindustrial private forest land.
``(12) Nonprofit organizations within the meaning
of section 501(c)(3) of the Internal Revenue Code of
1986 with demonstrable conservation expertise and
experience working with agriculture producers in the
State.
``(13) Agribusiness.
``SEC. 1262. RESPONSIBILITIES.
``(a) In General.--Each State technical committee
established under section 1261 shall meet regularly to provide
information, analysis, and recommendations to appropriate
officials of the Department of Agriculture who are charged with
implementing the conservation provisions of this title.
``(b) Public Notice and Attendance.--Each State technical
committee shall provide public notice of, and permit public
attendance at, meetings considering issues of concern related
to carrying out this title.
``(c) Role.--
``(1) In general.--The role of State technical
committees is advisory in nature, and such committees
shall have no implementation or enforcement authority.
However, the Secretary shall give strong consideration
to the recommendations of such committees in
administering the programs under this title.
``(2) Advisory role in establishing program
priorities and criteria.--Each State technical
committee shall advise the Secretary in establishing
priorities and criteria for the programs in this title,
including the review of whether local working groups
are addressing those priorities.
``(d) FACA Requirements.--
``(1) Exemption.--Each State technical committee
shall be exempt from the Federal Advisory Committee Act
(5 U.S.C. App.).
``(2) Local working groups.--For purposes of the
Federal Advisory Committee Act (5 U.S.C. App.), any
local working group established under this subtitle
shall be considered to be a subcommittee of the
applicable State technical committee.''.
Subtitle I--Conservation Programs Under Other Laws
SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.
(a) Eligible States.--Section 524(b)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting
``Hawaii,'' after ``Delaware,''.
(b) Funding.--Section 524(b)(4)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended--
(1) in clause (i), by striking ``Except as provided
in clauses (ii) and (iii)'' and inserting ``Except as
provided in clause (ii)''; and
(2) by striking clauses (ii) and (iii) and
inserting the following new clause:
``(ii) Exception for fiscal years
2008 through 2012.--For each of fiscal
years 2008 through 2012, the Commodity
Credit Corporation shall make available
to carry out this subsection
$15,000,000.''.
(c) Certain Uses.--Section 524(b)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(4)) is amended by adding at the
end the following new subparagraph:
``(C) Certain uses.--Of the amounts made
available to carry out this subsection for a
fiscal year, the Commodity Credit Corporation
shall use not less than--
``(i) 50 percent to carry out
subparagraphs (A), (B), and (C) of
paragraph (2) through the Natural
Resources Conservation Service;
``(ii) 10 percent to provide
organic certification cost share
assistance through the Agricultural
Marketing Service; and
``(iii) 40 percent to conduct
activities to carry out subparagraph
(F) of paragraph (2) through the Risk
Management Agency.''.
SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND DOMESTIC
ALLOTMENT ACT.
(a) Prevention of Soil Erosion.--
(1) In general.--The first section of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590a) is amended--
(A) by striking ``That it'' and inserting
the following:
``SECTION 1. PURPOSE.
``It''; and
(B) in the matter preceding paragraph (1),
by striking ``and thereby to preserve natural
resources,'' and inserting ``to preserve soil,
water, and related resources, promote soil and
water quality,''.
(2) Policies and purposes.--Section 7(a)(1) of the
Soil Conservation and Domestic Allotment Act (16 U.S.C.
590g(a)(1)) is amended by striking ``fertility'' and
inserting ``and water quality and related resources''.
(b) Definitions.--Section 10 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590j) is amended to read as
follows:
``SEC. 10. DEFINITIONS.
``In this Act:
``(1) Agricultural commodity.--The term
`agricultural commodity' means--
``(A) an agricultural commodity; and
``(B) any regional or market
classification, type, or grade of an
agricultural commodity.
``(2) Technical assistance.--
``(A) In general.--The term `technical
assistance' means technical expertise,
information, and tools necessary for the
conservation of natural resources on land
active in agricultural, forestry, or related
uses.
``(B) Inclusions.--The term `technical
assistance' includes--
``(i) technical services provided
directly to farmers, ranchers, and
other eligible entities, such as
conservation planning, technical
consultation, and assistance with
design and implementation of
conservation practices; and
``(ii) technical infrastructure,
including activities, processes, tools,
and agency functions needed to support
delivery of technical services, such as
technical standards, resource
inventories, training, data,
technology, monitoring, and effects
analyses.''.
SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.
(a) Availability of Funds.--Section 14(h)(1) of the
Watershed Protection and Flood Prevention Act (16 U.S.C.
1012(h)(1)) is amended by adding at the end the following new
subparagraph:
``(G) $100,000,000 for fiscal year 2009, to
be available until expended.''.
(b) Authorization of Appropriations.--Section 14(h)(2)(E)
of the Watershed Protection and Flood Prevention Act (16 U.S.C.
1012(h)(2)(E)) is amended by striking ``fiscal year 2007'' and
inserting ``each of fiscal years 2008 through 2012''.
SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES CONSERVATION ACT OF
1977.
(a) Congressional Findings.--Section 2 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is
amended--
(1) in paragraph (2), by striking ``base, of the''
and inserting ``base of the''; and
(2) in paragraph (3), by striking ``(3)'' and all
that follows through ``Since individual'' and inserting
the following:
``(3) Appraisal and inventory of resources,
assessment and inventory of conservation needs,
evaluation of the effects of conservation practices,
and analyses of alternative approaches to existing
conservation programs are basic to effective soil,
water, and related natural resource conservation.
``(4) Since individual''.
(b) Continuing Appraisal of Soil, Water, and Related
Resources.--Section 5 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2004) is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and''
at the end;
(B) in paragraph (6), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(7) data on conservation plans, conservation
practices planned or implemented, environmental
outcomes, economic costs, and related matters under
conservation programs administered by the Secretary.'';
(2) by redesignating subsection (d) as subsection
(e);
(3) by inserting after subsection (c) the following
new subsection:
``(d) Evaluation of Appraisal.--In conducting the appraisal
described in subsection (a), the Secretary shall concurrently
solicit and evaluate recommendations for improving the
appraisal, including the content, scope, process, participation
in, and other elements of the appraisal, as determined by the
Secretary.''; and
(4) in subsection (e), as redesignated by paragraph
(2), by striking the first sentence and inserting the
following: ``The Secretary shall conduct comprehensive
appraisals under this section, to be completed by
December 31, 2010, and December 31, 2015.''.
(c) Soil and Water Conservation Program.--Section 6 of the
Soil and Water Resources Conservation Act of 1977 (16 U.S.C.
2005) is amended--
(1) by redesignating subsection (b) as subsection
(d);
(2) by inserting after subsection (a) the following
new subsections:
``(b) Evaluation of Existing Conservation Programs.--In
evaluating existing conservation programs, the Secretary shall
emphasize demonstration, innovation, and monitoring of specific
program components in order to encourage further development
and adoption of practices and performance-based standards.
``(c) Improvement to Program.--In developing a national
soil and water conservation program under subsection (a), the
Secretary shall solicit and evaluate recommendations for
improving the program, including the content, scope, process,
participation in, and other elements of the program, as
determined by the Secretary.''; and
(3) in subsection (d), as redesignated by paragraph
(1), by striking ``December 31, 1979'' and all that
follows through ``December 31, 2007'' and inserting
``December 31, 2011, and December 31, 2016''.
(d) Reports to Congress.--Section 7 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended
to read as follows:
``SEC. 7. REPORTS TO CONGRESS.
``(a) Appraisal.--Not later than the date on which Congress
convenes in 2011 and 2016, the President shall transmit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate the appraisal developed under section 5 and completed
before the end of the previous year.
``(b) Program and Statement of Policy.--Not later than the
date on which Congress convenes in 2012 and 2017, the President
shall transmit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate--
``(1) the initial program or updated program
developed under section 6 and completed before the end
of the previous year;
``(2) a detailed statement of policy regarding soil
and water conservation activities of the Department of
Agriculture; and
``(3) a special evaluation of the status,
conditions, and trends of soil quality on cropland in
the United States that addresses the challenges and
opportunities for reducing soil erosion to tolerance
levels.
``(c) Improvements to Appraisal and Program.--Not later
than the date on which Congress convenes in 2012, 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 plans of the
Department of Agriculture for improving the resource appraisal
and national conservation program required under this Act,
based on the recommendations received under sections 5(d) and
6(c).''.
(e) Termination of Program.--Section 10 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is
amended by striking ``2008'' and inserting ``2018''.
SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
(a) Locally Led Planning Process.--Section 1528 of the
Agriculture and Food Act of 1981 (16 U.S.C. 3451) is amended--
(1) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``planning process'' and
inserting ``locally led planning process'';
(2) by redesignating paragraphs (8) and (9) as
paragraphs (9) and (8), respectively, and moving those
paragraphs so as to appear in numerical order;
(3) in paragraph (8) (as so redesignated)--
(A) by striking ``planning process'' and
inserting ``Locally led planning process''; and
(B) by striking ``council'' and inserting
``locally led council''.
(b) Authorized Technical Assistance.--Section 1528(13) of
the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is
amended by striking subparagraphs (C) and (D) and inserting the
following new subparagraphs:
``(C) providing assistance for the
implementation of area plans and projects; and
``(D) providing services that involve the
resources of Department of Agriculture programs
in a local community, as defined in the locally
led planning process.''.
(c) Improved Provision of Technical Assistance.--Section
1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454)
is amended--
(1) by inserting ``(a) In General.--'' before ``In
carrying''; and
(2) by adding at the end the following new
subsection:
``(b) Coordinator.--
``(1) In general.--To improve the provision of
technical assistance to councils under this subtitle,
the Secretary shall designate for each council an
individual to be the coordinator for the council.
``(2) Responsibility.--A coordinator for a council
shall be directly responsible for the provision of
technical assistance to the council.''.
(d) Program Evaluation.--Section 1534 of the Agriculture
and Food Act of 1981 (16 U.S.C. 3457) is repealed.
SEC. 2806. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL ACTIVITIES
UPSTREAM OF IMPERIAL DAM.
(a) In General.--Section 202(a) of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding
at the end the following new paragraph:
``(7) Basin states program.--
``(A) In general.--A Basin States Program
that the Secretary, acting through the Bureau
of Reclamation, shall implement to carry out
salinity control activities in the Colorado
River Basin using funds made available under
section 205(f).
``(B) Assistance.--The Secretary, in
consultation with the Colorado River Basin
Salinity Control Advisory Council, shall carry
out this paragraph using funds described in
subparagraph (A) directly or by providing
grants, grant commitments, or advance funds to
Federal or non-Federal entities under such
terms and conditions as the Secretary may
require.
``(C) Activities.--Funds described in
subparagraph (A) shall be used to carry out, as
determined by the Secretary--
``(i) cost-effective measures and
associated works to reduce salinity
from saline springs, leaking wells,
irrigation sources, industrial sources,
erosion of public and private land, or
other sources;
``(ii) operation and maintenance of
salinity control features constructed
under the Colorado River Basin salinity
control program; and
``(iii) studies, planning, and
administration of salinity control
activities.
``(D) Report.--
``(i) In general.--Not later than
30 days before implementing the program
established under this paragraph, the
Secretary shall submit to the
appropriate committees of Congress a
planning report that describes the
proposed implementation of the program.
``(ii) Implementation.--The
Secretary may not expend funds to
implement the program established under
this paragraph before the expiration of
the 30-day period beginning on the date
on which the Secretary submits the
report, or any revision to the report,
under clause (i).''.
(b) Conforming Amendments.--
(1) Section 202 of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592) is amended--
(A) in subsection (a), in the matter
preceding paragraph (1), by striking
``program'' and inserting ``programs''; and
(B) in subsection (b)(4)--
(i) by striking ``program'' and
inserting ``programs''; and
(ii) by striking ``and (6)'' and
inserting ``(6), and (7)''.
(2) Section 205 of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1595) is amended by
striking subsection (f) and inserting the following new
subsection:
``(f) Up-Front Cost Share.--
``(1) In general.--Effective beginning on the date
of enactment of this paragraph, subject to paragraph
(3), the cost share obligations required by this
section shall be met through an up-front cost share
from the Basin Funds, in the same proportions as the
cost allocations required under subsection (a), as
provided in paragraph (2).
``(2) Basin states program.--The Secretary shall
expend the required cost share funds described in
paragraph (1) through the Basin States Program for
salinity control activities established under section
202(a)(7).
``(3) Existing salinity control activities.--The
cost share contribution required by this section shall
continue to be met through repayment in a manner
consistent with this section for all salinity control
activities for which repayment was commenced prior to
the date of enactment of this paragraph.''.
SEC. 2807. DESERT TERMINAL LAKES.
Section 2507 of the Farm Security and Rural Investment Act
of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is amended--
(1) in subsection (a)--
(A) by striking ``(a)'' and all that
follows through ``$200,000,000'' and inserting
``(a) Transfer.--Subject to subsection (b) and
paragraph (1) of section 207(a) of Public Law
108-7 (117 Stat. 146), notwithstanding
paragraph (3) of that section, on the date of
enactment of the Food, Conservation, and Energy
Act of 2008, the Secretary of Agriculture shall
transfer $175,000,000''; and
(B) by striking the quotation marks at the
beginning of paragraphs (1) and (2); and
(2) by striking subsection (b) and inserting the
following new subsection:
``(b) Permitted Uses.--In any case in which there are
willing sellers, the funds described in subsection (a) may be
used--
``(1) to lease water; or
``(2) to purchase land, water appurtenant to the
land, and related interests in the Walker River Basin
in accordance with section 208(a)(1)(A) of the Energy
and Water Development Appropriations Act, 2006 (Public
Law 109-103; 119 Stat. 2268).''.
Subtitle J--Miscellaneous Conservation Provisions
SEC. 2901. HIGH PLAINS WATER STUDY.
Notwithstanding any other provision of this Act, no person
shall become ineligible for any program benefits under this Act
or an amendment made by this Act solely as a result of
participating in a 1-time study of recharge potential for the
Ogallala Aquifer in the High Plains of the State of Texas.
SEC. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT BELTSVILLE,
MARYLAND, IN HONOR OF NORMAN A. BERG.
The National Plant Materials Center at Beltsville,
Maryland, referenced in section 613.5(a) of title 7, Code of
Federal Regulations, shall be known and designated as the
``Norman A. Berg National Plant Materials Center''. Any
reference in a law, map, regulation, document, paper, or other
record of the United States to such National Plant Materials
Center shall be deemed to be a reference to the Norman A. Berg
National Plant Materials Center.
SEC. 2903. TRANSITION.
(a) Continuation of Programs in Fiscal Year 2008.--Except
as otherwise provided by an amendment made by this title, the
Secretary of Agriculture shall continue to carry out any
program or activity covered by title XII of the Food Security
Act (16 U.S.C. 3801 et seq.) until September 30, 2008, using
the provisions of law applicable to the program or activity as
they existed on the day before the date of the enactment of
this Act and using funds made available under such title for
fiscal year 2008 for the program or activity.
(b) Ground and Surface Water Conservation Program.--During
the period beginning on the date of the enactment of this Act
and ending on September 30, 2008, the Secretary of Agriculture
shall continue to carry out the ground and surface water
conservation program under section 1240I of the Food Security
Act of 1985 (16 U.S.C. 3839aa-9), as in effect before the
amendment made by section 2510, using the terms, conditions,
and funds available to the Secretary to carry out such program
on the day before the date of the enactment of this Act.
SEC. 2904. REGULATIONS.
(a) Issuance.--Except as otherwise provided in this title
or an amendment made by this title, not later than 90 days
after the date of enactment of this Act, the Secretary of
Agriculture, in consultation with the Commodity Credit
Corporation, shall promulgate such regulations as are necessary
to implement this title.
(b) Applicable Authority.--The promulgation of regulations
under subsection (a) and administration of this title--
(1) shall be carried out without regard to--
(A) chapter 35 of title 44, United States
Code (commonly known as the Paperwork Reduction
Act); and
(B) the Statement of Policy of the
Secretary of Agriculture effective July 24,
1971 (36 Fed. Reg. 13804) relating to notices
of proposed rulemaking and public participation
in rulemaking; and
(2) may--
(A) be promulgated with an opportunity for
notice and comment; or
(B) if determined to be appropriate by the
Secretary of Agriculture or the Commodity
Credit Corporation, as an interim rule
effective on publication with an opportunity
for notice and comment.
(c) Congressional Review of Agency Rulemaking.--In carrying
out this section, the Secretary shall use the authority
provided under section 808(2) of title 5, United States Code.
TITLE III--TRADE
Subtitle A--Food for Peace Act
SEC. 3001. SHORT TITLE.
(a) In General.--Section 1 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 note; 104
Stat. 3633) is amended by striking ``Agricultural Trade
Development and Assistance Act of 1954'' and inserting ``Food
for Peace Act''.
(b) Conforming Amendments.--
(1) In general.--Each provision of law described in
paragraph (2) is amended--
(A) by striking ``Agricultural Trade
Development and Assistance Act of 1954'' each
place it appears and inserting ``Food for Peace
Act''; and
(B) in each section heading, by striking
``agricultural trade development and assistance
act of 1954'' each place it appears and
inserting ``FOOD FOR PEACE ACT''.
(2) Provisions of law.--The provisions of law
referred to in paragraph (1) are the following:
(A) The Agriculture and Food Act of 1981
(Public Law 97-98; 95 Stat. 1213).
(B) The Agricultural Act of 1949 (7 U.S.C.
1421 et seq.).
(C) Section 9(a) of the Military
Construction Codification Act (7 U.S.C. 1704c).
(D) Section 201 of the Africa: Seeds of
Hope Act of 1998 (7 U.S.C. 1721 note; Public
Law 105-385).
(E) The Bill Emerson Humanitarian Trust Act
(7 U.S.C. 1736f-1 et seq.).
(F) The Food for Progress Act of 1985 (7
U.S.C. 1736o).
(G) Section 3107 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 1736o-
1).
(H) Sections 605B and 606C of the Act of
August 28, 1954 (commonly known as the
``Agricultural Act of 1954'') (7 U.S.C. 1765b,
1766b).
(I) Section 206 of the Agricultural Act of
1956 (7 U.S.C. 1856).
(J) The Agricultural Competitiveness and
Trade Act of 1988 (7 U.S.C. 5201 et seq.).
(K) The Agricultural Trade Act of 1978 (7
U.S.C. 5601 et seq.).
(L) The Export-Import Bank Act of 1945 (12
U.S.C. 635 et seq.).
(M) Section 301 of title 13, United States
Code.
(N) Section 8 of the Endangered Species Act
of 1973 (16 U.S.C. 1537).
(O) Section 604 of the Enterprise for the
Americas Act of 1992 (22 U.S.C. 2077).
(P) Section 5 of the International Health
Research Act of 1960 (22 U.S.C. 2103).
(Q) The Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.).
(R) The Horn of Africa Recovery and Food
Security Act (22 U.S.C. 2151 note; Public Law
102-274).
(S) Section 105 of the Mutual Educational
and Cultural Exchange Act of 1961 (22 U.S.C.
2455).
(T) Section 35 of the Foreign Military
Sales Act (22 U.S.C. 2775).
(U) The Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
(V) Section 1707 of the Cuban Democracy Act
of 1992 (22 U.S.C. 6006).
(W) The Cuban Liberty and Democratic
Solidarity (LIBERTAD) Act of 1996 (22 U.S.C.
6021 et seq.).
(X) Section 902 of the Trade Sanctions
Reform and Export Enhancement Act of 2000 (22
U.S.C. 7201).
(Y) Chapter 553 of title 46, United State
Code.
(Z) Section 4 of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98c).
(AA) The Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101-624; 104
Stat. 3359).
(BB) Section 738 of the Agriculture, Rural
Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2001
(Public Law 106-387; 114 Stat 1549A-34).
(c) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to the
``Agricultural Trade Development and Assistance Act of 1954''
shall be considered to be a reference to the ``Food for Peace
Act''.
SEC. 3002. UNITED STATES POLICY.
Section 2 of the Food for Peace Act (7 U.S.C. 1691) is
amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.
Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b))
is amended by striking ``(b)'' and all that follows through
paragraph (1) and inserting the following:
``(b) Sense of Congress.--It is the sense of Congress
that--
``(1) in negotiations at the Food Aid Convention,
the World Trade Organization, the United Nations Food
and Agriculture Organization, and other appropriate
venues, the President shall--
``(A) seek commitments of higher levels of
food aid by donors in order to meet the
legitimate needs of developing countries;
``(B) ensure, to the maximum extent
practicable, that humanitarian nongovernmental
organizations, recipient country governments,
charitable bodies, and international
organizations shall continue--
``(i) to be eligible to receive
resources based on assessments of need
conducted by those organizations and
entities; and
``(ii) to implement food aid
programs in agreements with donor
countries; and
``(C) ensure, to the maximum extent
practicable, that options for providing food
aid for emergency and nonemergency needs shall
not be subject to limitation, including in-kind
commodities, provision of funds for
agricultural commodity procurement, and
monetization of commodities, on the condition
that the provision of those commodities or
funds--
``(i) is based on assessments of
need and intended to benefit the food
security of, or otherwise assist,
recipients, and
``(ii) is provided in a manner that
avoids disincentives to local
agricultural production and marketing
and with minimal potential for
disruption of commercial markets;
and''.
SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.
(a) Title I of the Food for Peace Act (7 U.S.C. 1701 et
seq.) is amended in the title heading, by striking ``TRADE AND
DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE
AND FOOD SECURITY''.
(b) Section 101 of the Food for Peace Act (7 U.S.C. 1701)
is amended in the section heading, by striking ``trade and
development assistance'' and inserting ``economic assistance
and food security''.
SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.
Section 102 of the Food for Peace Act (7 U.S.C. 1702) is
amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3)
as paragraphs (1) and (2), respectively; and
(2) by striking subsection (c).
SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.
Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c))
is amended--
(1) in the matter preceding paragraph (1), by
inserting ``, through agreements with recipient
governments, private voluntary organizations, and
cooperatives,'' after ``developing country'';
(2) by striking paragraph (1);
(3) in paragraph (2)--
(A) in subparagraph (C), by striking
``and'' at the end;
(B) in subparagraph (D), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(E) the improvement of the trade capacity
of the recipient country.'';
(4) in paragraph (3), by striking ``agricultural
business development and agricultural trade expansion''
and inserting ``development of agricultural businesses
and agricultural trade capacity'';
(5) in paragraph (4), by striking ``, or
otherwise'' and all that follows through ``United
States'';
(6) in paragraph (5), by inserting ``to promote
agricultural products produced in appropriate
developing countries'' after ``trade fairs''; and
(7) by redesignating paragraphs (2) through (9) as
paragraphs (1) through (8), respectively.
SEC. 3007. GENERAL AUTHORITY.
Section 201 of the Food for Peace Act (7 U.S.C. 1721) is
amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) address famine and food crises, and respond
to emergency food needs, arising from man-made and
natural disasters;'';
(2) in paragraph (5)--
(A) by inserting ``food security and
support'' after ``promote''; and
(B) by striking ``; and'' and inserting a
semicolon;
(3) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(4) by adding at the end the following:
``(7) promote economic and nutritional security by
increasing educational, training, and other productive
activities.''.
SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202 of the Food for Peace Act (7 U.S.C. 1722) is
amended--
(1) in subsection (b)(2), by striking ``may not
deny a request for funds'' and inserting ``may not use
as a sole rationale for denying a request for funds'';
(2) in subsection (e)(1)--
(A) in the matter preceding subparagraph
(A), by striking ``not less than 5 percent nor
more than 10 percent'' and inserting ``not less
than 7.5 percent nor more than 13 percent'';
(B) in subparagraph (A), by striking ``;
and'' and inserting a semicolon;
(C) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(D) by adding at the end the following:
``(C) improving and implementing
methodologies for food aid programs, including
needs assessments (upon the request of the
Administrator), monitoring, and evaluation.'';
and
(3) by striking subsection (h) and inserting the
following:
``(h) Food Aid Quality.--
``(1) In general.--The Administrator shall use
funds made available for fiscal year 2009 and
subsequent fiscal years to carry out this title--
``(A) to assess the types and quality of
agricultural commodities and products donated
for food aid;
``(B) to adjust products and formulations
(including the potential introduction of new
fortificants and products) as necessary to
cost-effectively meet nutrient needs of target
populations; and
``(C) to test prototypes.
``(2) Administration.--The Administrator--
``(A) shall carry out this subsection in
consultation with and through independent
entities with proven expertise in food aid
commodity quality enhancements;
``(B) may enter into contracts to obtain
the services of such entities; and
``(C) shall consult with the Food Aid
Consultative Group on how to carry out this
subsection.
``(3) Funding limitation.--Of the funds made
available under section 207(f), for fiscal years 2009
through 2011, not more than $4,500,000 may be used to
carry out this subsection.''.
SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY
ORGANIZATIONS AND COOPERATIVES.
Section 203(b) of the Food for Peace Act (7 U.S.C. 1723(b))
is amended by striking ``1 or more recipient countries'' and
inserting ``in 1 or more recipient countries''.
SEC. 3010. LEVELS OF ASSISTANCE.
Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a))
is amended--
(1) in paragraph (1), by striking ``2002 through
2007'' and inserting ``2008 through 2012''; and
(2) in paragraph (2), by striking ``2002 through
2007'' and inserting ``2008 through 2012''.
SEC. 3011. FOOD AID CONSULTATIVE GROUP.
Section 205 of the Food for Peace Act (7 U.S.C. 1725) is
amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and''
at the end;
(B) in paragraph (6), by striking the
period and inserting ``; and''; and
(C) by inserting at the end the following:
``(7) representatives from the maritime
transportation sector involved in transporting
agricultural commodities overseas for programs under
this Act.''; and
(2) in subsection (f), by striking ``2007'' and
inserting ``2012''.
SEC. 3012. ADMINISTRATION.
Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is
amended--
(1) in subsection (a)(3), by striking ``and the
conditions that must be met for the approval of such
proposal'';
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the
following:
``(d) Timely Provision of Commodities.--The Administrator,
in consultation with the Secretary, shall develop procedures
that ensure expedited processing of commodity call forwards in
order to provide commodities overseas in a timely manner and to
the extent feasible, according to planned delivery
schedules.''; and
(4) by adding at the end the following:
``(f) Program Oversight, Monitoring, and Evaluation.--
``(1) Duties of administrator.--The Administrator,
in consultation with the Secretary, shall establish
systems and carry out activities--
``(A) to determine the need for assistance
provided under this title; and
``(B) to improve, monitor, and evaluate the
effectiveness and efficiency of the assistance
provided under this title to maximize the
impact of the assistance.
``(2) Requirements of systems and activities.--The
systems and activities described in paragraph (1) shall
include--
``(A) program monitors in countries that
receive assistance under this title;
``(B) country and regional food aid impact
evaluations;
``(C) the identification and implementation
of best practices for food aid programs;
``(D) the evaluation of monetization
programs;
``(E) early warning assessments and systems
to help prevent famines; and
``(F) upgraded information technology
systems.
``(3) Implementation report.--Not later than 180
days after the date of enactment of the Food,
Conservation, and Energy Act of 2008, the Administrator
shall submit to the appropriate committees of Congress
a report on efforts undertaken by the Administrator to
conduct oversight of nonemergency programs under this
title.
``(4) Government accountability office report.--Not
later than 270 days after the date of submission of the
report under paragraph (3), the Comptroller General of
the United States shall submit to the appropriate
committees of Congress a report that contains--
``(A) a review of, and comments addressing,
the report described in paragraph (3); and
``(B) recommendations relating to any
additional actions that the Comptroller General
of the United States determines to be necessary
to improve the monitoring and evaluation of
assistance provided under this title.
``(5) Contract authority.--
``(A) In general.--Subject to subparagraphs
(B) and (C), in carrying out administrative and
management activities relating to each activity
carried out by the Administrator under
paragraph (1), the Administrator may enter into
contracts with 1 or more individuals for
personal service to be performed in recipient
countries or neighboring countries.
``(B) Prohibition.--An individual who
enters into a contract with the Administrator
under subparagraph (A) shall not be considered
to be an employee of the Federal Government for
the purpose of any law (including regulations)
administered by the Office of Personnel
Management.
``(C) Personal service.--Subparagraph (A)
does not limit the ability of the Administrator
to enter into a contract with any individual
for personal service under section 202(a).
``(6) Funding.--
``(A) In general.--Subject to section
202(h)(3), in addition to other funds made
available to the Administrator to carry out the
monitoring of emergency food assistance, the
Administrator may implement this subsection
using up to $22,000,000 of the funds made
available under this title for each of fiscal
years 2009 through 2012, except for paragraph
(2)(F), for which only $2,500,000 shall be made
available during fiscal year 2009.
``(B) Limitations.--
``(i) In general.--Subject to
clause (ii), of the funds made
available under subparagraph (A), for
each of fiscal years 2009 through 2012,
not more than $8,000,000 may be used by
the Administrator to carry out
paragraph (2)(E).
``(ii) Condition.--No funds shall
be made available under subparagraph
(A), in accordance with clause (i),
unless not less than $8,000,000 is made
available under chapter 1 of part I of
the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) for such purposes
for such fiscal year.
``(g) Project Reporting.--
``(1) In general.--In submitting project reports to
the Administrator, a private voluntary organization or
cooperative shall provide a copy of the report in such
form as is necessary for the report to be displayed for
public use on the website of the United States Agency
for International Development.
``(2) Confidential information.--An organization or
cooperative described in paragraph (1) may omit any
confidential information from the copy of the report
submitted for public display under that paragraph.''.
SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND DISTRIBUTION OF SHELF-STABLE
PREPACKAGED FOODS.
Section 208(f) of the Food for Peace Act (7 U.S.C.
1726b(f)) is amended--
(1) by striking ``$3,000,000'' and inserting
``$8,000,000''; and
(2) by striking ``2007'' and inserting ``2012''.
SEC. 3014. GENERAL AUTHORITIES AND REQUIREMENTS.
(a) In General.--Section 401 of the Food for Peace Act (7
U.S.C. 1731) is amended--
(1) by striking subsection (a);
(2) by redesignating subsections (b) and (c) as
subsections (a) and (b), respectively; and
(3) in subsection (b) (as so redesignated), by
striking ``(b)(1)'' and inserting ``(a)(1)''.
(b) Conforming Amendments.--
(1) Section 406(a) of the Food for Peace Act (7
U.S.C. 1736(a)) is amended by striking ``(that have
been determined to be available under section
401(a))''.
(2) Subsection (e)(1) of the Food for Progress Act
of 1985 (7 U.S.C. 1736o(e)(1)) is amended by striking
``determined to be available under section 401 of the
Food for Peace Act''.
SEC. 3015. DEFINITIONS.
Section 402 of the Food for Peace Act (7 U.S.C. 1732) is
amended--
(1) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Appropriate committee of congress.--The term
`appropriate committee of Congress' means--
``(A) the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
``(B) the Committee on Agriculture of the
House of Representatives; and
``(C) the Committee on Foreign Affairs of
the House of Representatives.''.
SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.
Section 406(b)(2) of the Food for Peace Act (7 U.S.C.
1736(b)(2)) is amended by inserting ``, including the costs of
carrying out section 415'' before the semicolon.
SEC. 3017. ADMINISTRATIVE PROVISIONS.
Section 407(c) of the Food for Peace Act (7 U.S.C.
1736a(c)) is amended--
(1) in paragraph (4)--
(A) by striking ``Funds made'' and
inserting the following:
``(A) In general.--Funds made'';
(B) in subparagraph (A) (as so
designated)--
(i) by striking ``2007'' and
inserting ``2012''; and
(ii) by striking ``$2,000,000'' and
inserting ``$10,000,000''; and
(C) by adding at the end the following:
``(B) Additional prepositioning sites.--
``(i) Feasibility assessments.--The
Administrator may carry out assessments
for the establishment of not less than
2 sites to determine the feasibility
of, and costs associated with, using
the sites to store and handle
agricultural commodities for
prepositioning in foreign countries.
``(ii) Establishment of sites.--
Based on the results of each assessment
carried out under clause (i), the
Administrator may establish additional
sites for prepositioning in foreign
countries.''; and
(2) by adding at the end the following:
``(5) Nonemergency or multiyear agreements.--Annual
resource requests for ongoing nonemergency or ongoing
multiyear agreements under title II shall be finalized
not later than October 1 of the fiscal year in which
the agricultural commodities will be shipped under the
agreement.''.
SEC. 3018. CONSOLIDATION AND MODIFICATION OF ANNUAL REPORTS REGARDING
AGRICULTURAL TRADE ISSUES.
(a) Annual Reports.--Section 407 of the Food for Peace Act
(7 U.S.C. 1736a) is amended by striking subsection (f) and
inserting the following:
``(f) Annual Reports.--
``(1) Annual report regarding agricultural trade
programs and activities.--
``(A) Annual report.--Not later than April
1 of each fiscal year, the Administrator and
the Secretary shall jointly prepare and submit
to the appropriate committees of Congress a
report regarding each program and activity
carried out under this Act during the prior
fiscal year.
``(B) Contents.--An annual report described
in subparagraph (A) shall include, with respect
to the prior fiscal year--
``(i) 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);
``(ii) a general description of
each project and activity implemented
under this Act (including each activity
funded through the use of local
currencies);
``(iii) a statement describing the
quantity of agricultural commodities
made available to each country pursuant
to--
``(I) section 416(b) of the
Agricultural Act of 1949 (7
U.S.C. 1431(b)); and
``(II) the Food for
Progress Act of 1985 (7 U.S.C.
1736o);
``(iv) 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;
``(v) a description of efforts
undertaken by the Food Aid Consultative
Group under section 205 to achieve an
integrated and effective food
assistance program;
``(vi) 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; and
``(vii) an assessment of the
progress made by the Administrator in
addressing issues relating to quality
with respect to the provision of food
assistance.
``(2) Annual report regarding the provision of
agricultural commodities to foreign countries.--
``(A) Annual report.--Not later than
February 1 of each fiscal year, the
Administrator shall prepare and submit to the
appropriate committees of Congress a report
regarding the administration of food assistance
programs under title II to benefit foreign
countries during the prior fiscal year.
``(B) Contents.--An annual report described
in subparagraph (A) shall include, with respect
to the prior fiscal year--
``(i) a list that contains a
description of each program, country,
and commodity approved for assistance
under section 207; and
``(ii) a statement that contains a
description of the total amount of
funds approved for transportation and
administrative costs under section
207.''.
(b) Conforming Amendment.--Section 207(e) of the Food for
Peace Act (7 U.S.C. 1726a(e)) is amended--
(1) by striking ``Timely Approval.'' and all that
follows through ``The Administrator'' and inserting
``Timely Approval.--The Administrator''; and
(2) by striking paragraph (2).
SEC. 3019. EXPIRATION OF ASSISTANCE.
Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is
amended by striking subsection (a) and inserting the following:
``(a) Authorization of Appropriations.--There are
authorized to be appropriated--
``(1) for fiscal year 2008 and each fiscal year
thereafter, $2,500,000,000 to carry out the emergency
and nonemergency food assistance programs under title
II; and
``(2) such sums as are necessary--
``(A) to carry out the concessional credit
sales program established under title I;
``(B) to carry out the grant program
established under title III; and
``(C) to make payments to the Commodity
Credit Corporation to the extent the Commodity
Credit Corporation is not reimbursed under the
programs under this Act for the actual costs
incurred or to be incurred by the Commodity
Credit Corporation in carrying out such
programs.''.
SEC. 3021. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is
amended by adding at the end the following:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) Funds and commodities.--Of the amounts made
available to carry out emergency and nonemergency food
assistance programs under title II, not less than
$375,000,000 for fiscal year 2009, $400,000,000 for
fiscal year 2010, $425,000,000 for fiscal year 2011,
and $450,000,000 for fiscal year 2012 shall be expended
for nonemergency food assistance programs under title
II.
``(2) Exception.--The President may use less than
the amount specified in paragraph (1) in a fiscal year
for nonemergency food assistance programs under title
II only if--
``(A) the President has made a
determination that there is an urgent need for
additional emergency food assistance;
``(B) the funds and commodities held in the
Bill Emerson Humanitarian Trust have been
exhausted; and
``(C) the President has submitted to
Congress a supplemental appropriations request
for a sum equal to the amount needed to reach
the required spending level for nonemergency
food assistance under paragraph (1) and the
amount exhausted under paragraph (2)(B).
``(3) Notification to congress.--If the President
makes the determination described in paragraph (2)(A),
the President shall submit to Congress written
notification that the determination has been made.''.
SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.
Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is
amended--
(1) by striking ``To the maximum'' and inserting
the following:
``(a) In General.--To the maximum''; and
(2) by adding at the end the following:
``(b) Report Regarding Efforts to Improve Procurement
Planning.--
``(1) Report required.--Not later than 90 days
after the date of enactment of the Food, Conservation,
and Energy Act of 2008, the Administrator and the
Secretary shall submit to each appropriate committee of
Congress a report that contains a description of each
effort taken by the Administrator and the Secretary to
improve planning for food and transportation
procurement (including efforts to eliminate bunching of
food purchases).
``(2) Contents.--A report required under paragraph
(1) should include a description of each effort taken
by the Administrator and the Secretary--
``(A) to improve the coordination of food
purchases made by--
``(i) the United States Agency for
International Development; and
``(ii) the Department of
Agriculture;
``(B) to increase flexibility with respect
to procurement schedules;
``(C) to increase the use of historical
analyses and forecasting; and
``(D) to improve and streamline legal
claims processes for resolving transportation
disputes.''.
SEC. 3023. MICRONUTRIENT FORTIFICATION PROGRAMS.
Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``Not
later than September 30, 2003, the
Administrator, in consultation with the
Secretary'' and inserting ``Not later than
September 30, 2008, the Administrator, in
consultation with the Secretary''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by adding
``and'' after the semicolon at the end;
and
(ii) by striking subparagraphs (B)
and (C) and inserting the following:
``(B) assess and apply technologies and
systems to improve and ensure the quality,
shelf life, bioavailability, and safety of
fortified food aid agricultural commodities,
and products of those agricultural commodities,
using recommendations included in the report
entitled `Micronutrient Compliance Review of
Fortified Public Law 480 Commodities',
published in October 2001, with implementation
by independent entities with proven experience
and expertise in food aid commodity quality
enhancements.'';
(2) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively; and
(3) in subsection (c) (as redesignated by paragraph
(2)), by striking ``2007'' and inserting ``2012''.
SEC. 3024. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.
(a) Minimum Funding.--Section 501(d) of the Food for Peace
Act (7 U.S.C. 1737(d)) is amended in the matter preceding
paragraph (1)--
(1) by striking ``not less than'' and inserting
``not less than the greater of $10,000,000 or''; and
(2) by striking ``2002 through 2007'' and inserting
``2008 through 2012''.
(b) Authorization of Appropriations.--Section 501(e) of the
Food for Peace Act (7 U.S.C. 1737(e)) is amended by striking
paragraph (1) and inserting the following:
``(1) In general.--There are authorized to be
appropriated for each of fiscal years 2008 through 2012
to carry out the programs under this section--
``(A) $10,000,000 for sub-Saharan African
and Caribbean Basin countries; and
``(B) $5,000,000 for other developing or
middle-income countries or emerging markets not
described in subparagraph (A).''.
Subtitle B--Agricultural Trade Act of 1978 and Related Statutes
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Repeal of Supplier Credit Guarantee Program and
Intermediate Export Credit Guarantee Program.--Section 202 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--'' and all
that follows through ``The Commodity'' in
paragraph (1) and inserting ``Guarantees.--The
Commodity''; and
(B) by striking paragraphs (2) and (3);
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively; and
(4) by adding at the end the following:
``(k) Administration.--
``(1) Definition of long term.--In this subsection,
the term `long term' means a period of 10 or more
years.
``(2) Guarantees.--In administering the export
credit guarantees authorized under this section, the
Secretary shall--
``(A) maximize the export sales of
agricultural commodities;
``(B) maximize the export credit guarantees
that are made available and used during the
course of a fiscal year;
``(C) develop an approach to risk
evaluation that facilitates accurate country
risk designations and timely adjustments to the
designations (on an ongoing basis) in response
to material changes in country risk conditions,
with ongoing opportunity for input and
evaluation from the private sector;
``(D) adjust risk-based guarantees as
necessary to ensure program effectiveness and
United States competitiveness; and
``(E) work with industry to ensure, to the
maximum extent practicable, that risk-based
fees associated with the guarantees cover, but
do not exceed, the operating costs and losses
over the long term.''.
(b) Funding Levels.--Section 211 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection
(b) and inserting the following:
``(b) Export Credit Guarantee Programs.--The Commodity
Credit Corporation shall make available for each of fiscal
years 1996 through 2012 credit guarantees under section 202(a)
in an amount equal to but not more than the lesser of--
``(1) $5,500,000,000 in credit guarantees; or
``(2) the sum of--
``(A) the amount of credit guarantees that
the Commodity Credit Corporation can make
available using budget authority of $40,000,000
for each fiscal year for the costs of the
credit guarantees; and
``(B) the amount of credit guarantees that
the Commodity Credit Corporation can make
available using unobligated budget authority
for prior fiscal years.''.
(c) Conforming Amendments.--Section 202 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (b)(4) (as redesignated by
subsection (a)(3)), by striking ``, consistent with the
provisions of subsection (c)'';
(2) in subsection (d) (as redesignated by
subsection (a)(3))--
(A) by striking ``(1)'' and all that
follows through ``The Commodity'' and inserting
``The Commodity''; and
(B) by striking paragraph (2); and
(3) in subsection (g)(2) (as redesignated by
subsection (a)(3)), by striking ``subsections (a) and
(b)'' and inserting ``subsection (a)''.
SEC. 3102. MARKET ACCESS PROGRAM.
(a) Organic Commodities.--Section 203(a) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is amended by
inserting after ``agricultural commodities'' the following:
``(including commodities that are organically produced (as
defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502)))''.
(b) Funding.--Section 211(c)(1)(A) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by
striking ``$200,000,000 for each of fiscal years 2006 and
2007'' and inserting ``$200,000,000 for each of fiscal years
2008 through 2012''.
SEC. 3103. EXPORT ENHANCEMENT PROGRAM.
(a) In General.--Section 301 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5651) is repealed.
(b) Conforming Amendments.--The Agricultural Trade Act of
1978 is amended--
(1) in title III, by striking the title heading and
inserting the following:
``TITLE III--BARRIERS TO EXPORTS'';
(2) by redesignating sections 302 and 303 (7 U.S.C.
5652 and 5653) as sections 301 and 302, respectively;
(3) in section 302 (as redesignated by paragraph
(2)), by striking ``, such as that established under
section 301,'';
(4) in section 401 (7 U.S.C. 5661)--
(A) in subsection (a), by striking
``section 201, 202, or 301'' and inserting
``section 201 or 202''; and
(B) in subsection (b), by striking
``sections 201, 202, and 301'' and inserting
``sections 201 and 202''; and
(5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by
striking ``sections 201, 202, 203, and 301'' and
inserting ``sections 201, 202, and 203''.
SEC. 3104. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) Report to Congress.--Section 702(c) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5722(c)) is amended by striking
``Committee on International Relations'' and inserting
``Committee on Foreign Affairs''.
(b) Funding.--Section 703(a) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5723(a)) is amended by striking ``2002
through 2007'' and inserting ``2008 through 2012''.
SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.
(a) In General.--The Food for Progress Act of 1985 (7
U.S.C. 1736o) is amended by striking ``2007'' each place it
appears and inserting ``2012''.
(b) Designation of Project in Sub-Saharan Africa.--The Food
for Progress Act of 1985 (7 U.S.C. 1736o) is amended in
subsection (f) by adding at the end the following:
``(6) Project in malawi.--
``(A) In general.--In carrying out this
section during fiscal year 2009, the President
shall approve not less than 1 multiyear project
for Malawi--
``(i) to promote sustainable
agriculture; and
``(ii) to increase the number of
women in leadership positions.
``(B) Use of eligible commodities.--Of the
eligible commodities used to carry out this
section during the period in which the project
described in subparagraph (A) is carried out,
the President shall carry out the project using
eligible commodities with a total value of not
less than $3,000,000 during the course of the
project.''.
SEC. 3106. 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 subsections (b), (c)(2)(B), (f)(1), (h),
(i), and (l)(1), by striking ``President'' each place
it appears and inserting ``Secretary'';
(2) in subsection (d), by striking ``The President
shall designate 1 or more Federal agencies'' and
inserting ``The Secretary shall'';
(3) in paragraph (f)(2), by striking ``implementing
agency'' and inserting ``Secretary''; and
(4) in subsection (l)--
(A) by striking paragraph (1) and inserting
the following:
``(1) Use of commodity credit corporation funds.--
Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section
$84,000,000 for fiscal year 2009, to remain available
until expended.'';
(B) in paragraph (2), by striking ``2004
through 2007'' and inserting ``2008 through
2012''; and
(C) in paragraph (3), by striking ``any
Federal agency implementing or assisting'' and
inserting ``the Department of Agriculture or
any other Federal agency assisting''.
Subtitle C--Miscellaneous
SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f-1) is amended--
(1) in subsection (a)--
(A) by striking ``establish a trust stock''
and inserting ``establish and maintain a
trust''; and
(B) by striking ``or any combination of the
commodities, totaling not more than 4,000,000
metric tons'' and inserting ``any combination
of the commodities, or funds'';
(2) in subsection (b)--
(A) in paragraph (1), by striking
subparagraph (D) and inserting the following:
``(D) funds made available--
``(i) under paragraph (2)(B);
``(ii) as a result of an exchange
of any commodity held in the trust for
an equivalent amount of funds from the
market, if the Secretary determines
that such a sale of the commodity on
the market will not unduly disrupt
domestic markets; or
``(iii) to maximize the value of
the trust, in accordance with
subsection (d)(3).''; and
(B) in paragraph (2)(B)--
(i) in clause (i)--
(I) by striking ``2007''
each place it appears and
inserting ``2012'';
(II) by striking ``(c)(2)''
and inserting ``(c)(1)''; and
(III) by striking ``and''
at the end;
(ii) in clause (ii), by striking
the period at the end and inserting ``;
or''; and
(iii) by adding at the end the
following:
``(iii) from funds accrued through
the management of the trust under
subsection (d).'';
(3) in subsection (c)--
(A) by striking paragraphs (1) and (2) and
inserting the following:
``(1) Releases for emergency assistance.--
``(A) Definition of emergency.--
``(i) In general.--In this
paragraph, the term `emergency' means
an urgent situation--
``(I) in which there is
clear evidence that an event or
series of events described in
clause (ii) has occurred--
``(aa) that causes
human suffering; and
``(bb) for which a
government concerned
has not chosen, or has
not the means, to
remedy; or
``(II) created by a
demonstrably abnormal event or
series of events that produces
dislocation in the lives of
residents of a country or
region of a country on an
exceptional scale.
``(ii) Event or series of events.--
An event or series of events referred
to in clause (i) includes 1 or more
of--
``(I) a sudden calamity,
such as an earthquake, flood,
locust infestation, or similar
unforeseen disaster;
``(II) a human-made
emergency resulting in--
``(aa) a
significant influx of
refugees;
``(bb) the internal
displacement of
populations; or
``(cc) the
suffering of otherwise
affected populations;
``(III) food scarcity
conditions caused by slow-onset
events, such as drought, crop
failure, pest infestation, and
disease, that result in an
erosion of the ability of
communities and vulnerable
populations to meet food needs;
and
``(IV) severe food access
or availability conditions
resulting from sudden economic
shocks, market failure, or
economic collapse, that result
in an erosion of the ability of
communities and vulnerable
populations to meet food needs.
``(B) Releases.--
``(i) In general.--Any funds or
commodities held in the trust may be
released to provide food, and cover any
associated costs, under title II of the
Food for Peace Act (7 U.S.C. 1721 et
seq.)--
``(I) to assist in averting
an emergency, including during
the period immediately
preceding the emergency;
``(II) to respond to an
emergency; or
``(III) for recovery and
rehabilitation after an
emergency.
``(ii) Procedure.--A release under
clause (i) shall be carried out in the
same manner, and pursuant to the same
authority as provided in title II of
that Act.
``(C) Insufficiency of other funds.--The
funds and commodities held in the trust shall
be made immediately available on a
determination by the Administrator that funds
available for emergency needs under title II of
that Act (7 U.S.C. 1721 et seq.) for a fiscal
year are insufficient to meet emergency needs
during the fiscal year.
``(D) Waiver relating to minimum tonnage
requirements.--Nothing in this paragraph
requires a waiver by the Administrator of the
Agency for International Development under
section 204(a)(3) of the Food for Peace Act (7
U.S.C. 1724(a)(3)) as a condition for a release
of funds or commodities under subparagraph
(B).''; and
(B) by redesignating paragraphs (3) through
(5) as paragraphs (2) through (4),
respectively;
(4) in subsection (d)--
(A) by redesignating paragraphs (1) through
(3) as subparagraphs (A) through (C),
respectively, and indenting the subparagraphs
appropriately;
(B) by striking the subsection designation
and heading and all that follows through
``provide--'' and inserting the following:
``(d) Management of Trust.--
``(1) In general.--The Secretary shall provide for
the management of eligible commodities and funds held
in the trust in a manner that is consistent with
maximizing the value of the trust, as determined by the
Secretary.
``(2) Eligible commodities.--The Secretary shall
provide--'';
(C) in paragraph (2) (as redesignated by
subparagraph (B))--
(i) in subparagraph (B) (as
redesignated by subparagraph (A)), by
striking ``and'' at the end; and
(ii) in subparagraph (C) (as
redesignated by subparagraph (A)), by
striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(3) Funds.--
``(A) Exchanges.--If any commodity held in
the trust is exchanged for funds under
subsection (b)(1)(D)(ii), the funds shall be
held in the trust until the date on which the
funds are released in the case of an emergency
under subsection (c).
``(B) Investment.--The Secretary may invest
funds held in the trust in any short-term
obligation of the United States or any other
low-risk short-term instrument or security
insured by the Federal Government in which a
regulated insurance company may invest under
the laws of the District of Columbia.''; and
(5) in subsection (h), in each of paragraphs (1)
and (2), by striking ``2007'' each place it appears and
inserting ``2012''.
SEC. 3202. GLOBAL CROP DIVERSITY TRUST.
(a) Contribution.--The Administrator of the United States
Agency for International Development shall contribute funds to
endow the Global Crop Diversity Trust (referred to in this
section as the ``Trust'') to assist in the conservation of
genetic diversity in food crops through the collection and
storage of the germplasm of food crops in a manner that
provides for--
(1) the maintenance and storage of seed
collections;
(2) the documentation and cataloguing of the
genetics and characteristics of conserved seeds to
ensure efficient reference for researchers, plant
breeders, and the public;
(3) building the capacity of seed collection in
developing countries;
(4) making information regarding crop genetic data
publicly available for researchers, plant breeders, and
the public (including through the provision of an
accessible Internet website);
(5) the operation and maintenance of a back-up
facility in which are stored duplicate samples of
seeds, in the case of natural or man-made disasters;
and
(6) oversight designed to ensure international
coordination of those actions and efficient, public
accessibility to that diversity through a cost-
effective system.
(b) United States Contribution Limit.--The aggregate
contributions of funds of the Federal Government provided to
the Trust shall not exceed 25 percent of the total amount of
funds contributed to the Trust from all sources.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $60,000,000 for
the period of fiscal years 2008 through 2012.
SEC. 3203. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
Section 3205 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5680) is amended by striking subsection (d)
and inserting the following:
``(d) Annual Report.--Not later than 180 days after the
date of enactment of the Food, Conservation, and Energy Act of
2008 and annually thereafter, the Secretary shall submit to the
appropriate committees of Congress a report that contains, for
the period covered by the report, a description of each factor
that affects the export of specialty crops, including each
factor relating to any--
``(1) significant sanitary or phytosanitary issue;
or
``(2) trade barrier.
``(e) Funding.--
``(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 amounts.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use
to carry out this section--
``(A) $4,000,000 for fiscal year 2008;
``(B) $7,000,000 for fiscal year 2009;
``(C) $8,000,000 for fiscal year 2010;
``(D) $9,000,000 for fiscal year 2011; and
``(E) $9,000,000 for fiscal year 2012.''.
SEC. 3204. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.
Section 1542 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is
amended--
(1) in subsection (a), by striking ``2007'' and
inserting ``2012'';
(2) in subsection (b)--
(A) in the first sentence, by redesignating
paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively, and indenting appropriately;
(B) by striking ``A portion'' and inserting
the following:
``(1) In general.--A portion'';
(C) in the second sentence, by striking
``The Commodity Credit Corporation'' and
inserting the following:
``(2) Priority.--The Commodity Credit
Corporation''; and
(D) by adding at the end the following:
``(3) Construction waiver.--The Secretary may waive
any applicable requirements relating to the use of
United States goods in the construction of a proposed
facility, if the Secretary determines that--
``(A) goods from the United States are not
available; or
``(B) the use of goods from the United
States is not practicable.
``(4) Term of guarantee.--A facility payment
guarantee under this subsection shall be for a term
that is not more than the lesser of--
``(A) the term of the depreciation schedule
of the facility assisted; or
``(B) 20 years.''; and
(3) in subsection (d)(1)(A)(i) by striking ``2007''
and inserting ``2012''.
SEC. 3205. CONSULTATIVE GROUP TO ELIMINATE THE USE OF CHILD LABOR AND
FORCED LABOR IN IMPORTED AGRICULTURAL PRODUCTS.
(a) Definitions.--In this section:
(1) Child labor.--The term ``child labor'' means
the worst forms of child labor as defined in
International Labor Convention 182, the Convention
Concerning the Prohibition and Immediate Action for the
Elimination of the Worst Forms of Child Labor, done at
Geneva on June 17, 1999.
(2) Consultative group.--The term ``Consultative
Group'' means the Consultative Group to Eliminate the
Use of Child Labor and Forced Labor in Imported
Agricultural Products established under subsection (b).
(3) Forced labor.--The term ``forced labor'' means
all work or service--
(A) that is exacted from any individual
under menace of any penalty for nonperformance
of the work or service, and for which--
(i) the work or service is not
offered voluntarily; or
(ii) the work or service is
performed as a result of coercion, debt
bondage, or involuntary servitude (as
those terms are defined in section 103
of the Trafficking Victims Protection
Act of 2000 (22 U.S.C. 7102)); and
(B) by 1 or more individuals who, at the
time of performing the work or service, were
being subjected to a severe form of trafficking
in persons (as that term is defined in that
section).
(b) Establishment.--There is established a group to be
known as the ``Consultative Group to Eliminate the Use of Child
Labor and Forced Labor in Imported Agricultural Products'' to
develop recommendations relating to guidelines to reduce the
likelihood that agricultural products or commodities imported
into the United States are produced with the use of forced
labor and child labor.
(c) Duties.--
(1) In general.--Not later than 2 years after the
date of enactment of this Act and in accordance with
section 105(d) of the Trafficking Victims Protection
Act of 2000 (22 U.S.C. 7103(d)), as applicable to the
importation of agricultural products made with the use
of child labor or forced labor, the Consultative Group
shall develop, and submit to the Secretary,
recommendations relating to a standard set of practices
for independent, third-party monitoring and
verification for the production, processing, and
distribution of agricultural products or commodities to
reduce the likelihood that agricultural products or
commodities imported into the United States are
produced with the use of forced labor or child labor.
(2) Guidelines.--
(A) In general.--Not later than 1 year
after the date on which the Secretary receives
recommendations under paragraph (1), the
Secretary shall release guidelines for a
voluntary initiative to enable entities to
address issues raised by the Trafficking
Victims Protection Act of 2000 (22 U.S.C. 7101
et seq.).
(B) Requirements.--Guidelines released
under subparagraph (A) shall be published in
the Federal Register and made available for
public comment for a period of 90 days.
(d) Membership.--The Consultative Group shall be composed
of not more than 13 individuals, of whom--
(1) 2 members shall represent the Department of
Agriculture, as determined by the Secretary;
(2) 1 member shall be the Deputy Under Secretary
for International Affairs of the Department of Labor;
(3) 1 member shall represent the Department of
State, as determined by the Secretary of State;
(4) 3 members shall represent private agriculture-
related enterprises, which may include retailers, food
processors, importers, and producers, of whom at least
1 member shall be an importer, food processor, or
retailer who utilizes independent, third-party supply
chain monitoring for forced labor or child labor;
(5) 2 members shall represent institutions of
higher education and research institutions, as
determined appropriate by the Bureau of International
Labor Affairs of the Department of Labor;
(6) 1 member shall represent an organization that
provides independent, third-party certification
services for labor standards for producers or importers
of agricultural commodities or products; and
(7) 3 members shall represent organizations
described in section 501(c)(3) of the Internal Revenue
Code of 1986 that have expertise on the issues of
international child labor and do not possess a conflict
of interest associated with establishment of the
guidelines issued under subsection (c)(2), as
determined by the Bureau of International Labor Affairs
of the Department of Labor, including representatives
from consumer organizations and trade unions, if
appropriate.
(e) Chairperson.--A representative of the Department of
Agriculture appointed under subsection (d)(1), as determined by
the Secretary, shall serve as the chairperson of the
Consultative Group.
(f) Requirements.--Not less than 4 times per year, the
Consultative Group shall meet at the call of the Chairperson,
after reasonable notice to all members, to develop
recommendations described in subsection (c)(1).
(g) Nonapplicability of FACA.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the
Consultative Group.
(h) Annual Reports.--Not later than 1 year after the date
of enactment of this Act, and annually thereafter through
December 31, 2012, the Secretary shall submit to the Committees
on Agriculture and Foreign Affairs of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the activities
and recommendations of the Consultative Group.
(i) Termination of Authority.--The Consultative Group shall
terminate on December 31, 2012.
SEC. 3206. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator''
means the Administrator of the Agency for International
Development.
(2) Appropriate committee of congress.--The term
``appropriate committee of Congress'' means--
(A) the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
(B) the Committee on Agriculture of the
House of Representatives; and
(C) the Committee on Foreign Affairs of the
House of Representatives.
(3) Eligible commodity.--The term ``eligible
commodity'' means an agricultural commodity (or the
product of an agricultural commodity) that--
(A) is produced in, and procured from, a
developing country; and
(B) at a minimum, meets each nutritional,
quality, and labeling standard of the country
that receives the agricultural commodity, as
determined by the Secretary.
(4) Eligible organization.--The term ``eligible
organization'' means an organization that is--
(A) described in section 202(d) of the Food
for Peace Act (7 U.S.C. 1722(d)); and
(B) with respect to nongovernmental
organizations, subject to regulations
promulgated or guidelines issued to carry out
this section, including United States audit
requirements that are applicable to
nongovernmental organizations.
(b) Study; Field-Based Projects.--
(1) Study.--
(A) In general.--Not later than 30 days
after the date of enactment of this Act, the
Secretary shall initiate a study of prior local
and regional procurements for food aid programs
conducted by--
(i) other donor countries;
(ii) private voluntary
organizations; and
(iii) the World Food Program of the
United Nations.
(B) Report.--Not later than 180 days after
the date of enactment of this Act, the
Secretary shall submit to the appropriate
committees of Congress a report containing the
results of the study conducted under
subparagraph (A).
(2) Field-based projects.--
(A) In general.--In accordance with
subparagraph (B), the Secretary shall provide
grants to, or enter into cooperative agreements
with, eligible organizations to carry out
field-based projects that consist of local or
regional procurements of eligible commodities
to respond to food crises and disasters in
accordance with this section.
(B) Consultation with administrator.--In
carrying out the development and implementation
of field-based projects under subparagraph (A),
the Secretary shall consult with the
Administrator.
(c) Procurement.--
(1) In general.--Any eligible commodity that is
procured for a field-based project carried out under
subsection (b)(2) shall be procured through any
approach or methodology that the Secretary considers to
be an effective approach or methodology to provide
adequate information regarding the manner by which to
expedite, to the maximum extent practicable, the
provision of food aid to affected populations without
significantly increasing commodity costs for low-income
consumers who procure commodities sourced from the same
markets at which the eligible commodity is procured.
(2) Requirements.--
(A) Impact on local farmers and
countries.--The Secretary shall ensure that the
local or regional procurement of any eligible
commodity under this section will not have a
disruptive impact on farmers located in, or the
economy of--
(i) the recipient country of the
eligible commodity; or
(ii) any country in the region in
which the eligible commodity may be
procured.
(B) Transshipment.--The Secretary shall, in
accordance with such terms and conditions as
the Secretary considers to be appropriate,
require from each eligible organization
commitments designed to prevent or restrict--
(i) the resale or transshipment of
any eligible commodity procured under
this section to any country other than
the recipient country; and
(ii) the use of the eligible
commodity for any purpose other than
food aid.
(C) World prices.--
(i) In general.--In carrying out
this section, the Secretary shall take
any precaution that the Secretary
considers to be reasonable to ensure
that the procurement of eligible
commodities will not unduly disrupt--
(I) world prices for
agricultural commodities; or
(II) normal patterns of
commercial trade with foreign
countries.
(ii) Procurement price.--The
procurement of any eligible commodity
shall be made at a reasonable market
price with respect to the economy of
the country in which the eligible
commodity is procured, as determined by
the Secretary.
(d) Regulations; Guidelines.--
(1) In general.--In accordance with paragraph (2),
not later than 180 days after the date of completion of
the study under subsection (b)(1), the Secretary shall
promulgate regulations or issue guidelines to carry out
field-based projects under this section.
(2) Requirements.--
(A) Use of study.--In promulgating
regulations or issuing guidelines under
paragraph (1), the Secretary shall take into
consideration the results of the study
described in subsection (b)(1).
(B) Public review and comment.--In
promulgating regulations or issuing guidelines
under paragraph (1), the Secretary shall
provide an opportunity for public review and
comment.
(3) Availability.--The Secretary shall not approve
the procurement of any eligible commodity under this
section until the date on which the Secretary
promulgates regulations or issues guidelines under
paragraph (1).
(e) Field-Based Project Grants or Cooperative Agreements.--
(1) In general.--The Secretary shall award grants
to, or enter into cooperative agreements with, eligible
organizations to carry out field-based projects.
(2) Requirements of eligible organizations.--
(A) Application.--
(i) In general.--To be eligible to
receive a grant from, or enter into a
cooperative agreement with, the
Secretary under this subsection, an
eligible organization shall submit to
the Secretary an application by such
date, in such manner, and containing
such information as the Secretary may
require.
(ii) Other applicable
requirements.--Any other applicable
requirement relating to the submission
of proposals for consideration shall
apply to the submission of an
application required under clause (i),
as determined by the Secretary.
(B) Completion requirement.--To be eligible
to receive a grant from, or enter into a
cooperative agreement with, the Secretary under
this subsection, an eligible organization shall
agree--
(i) to collect by September 30,
2011, data containing the information
required under subsection (f)(1)(B)
relating to the field-based project
funded through the grant; and
(ii) to provide to the Secretary
the data collected under clause (i).
(3) Requirements of secretary.--
(A) Project diversity.--
(i) In general.--Subject to clause
(ii) and subparagraph (B), in selecting
proposals for field-based projects to
fund under this section, the Secretary
shall select a diversity of projects,
including projects located in--
(I) food surplus regions;
(II) food deficit regions
(that are carried out using
regional procurement methods);
and
(III) multiple geographical
regions.
(ii) Priority.--In selecting
proposals for field-based projects
under clause (i), the Secretary shall
ensure that the majority of selected
proposals are for field-based projects
that--
(I) are located in Africa;
and
(II) procure eligible
commodities that are produced
in Africa.
(B) Development assistance.--A portion of
the funds provided under this subsection shall
be made available for field-based projects that
provide development assistance for a period of
not less than 1 year.
(4) Availability.--The Secretary shall not award a
grant to any eligible organization under paragraph (1)
until the date on which the Secretary promulgates
regulations or issues guidelines under subsection
(d)(1).
(f) Independent Evaluations; Report.--
(1) Independent evaluations.--
(A) In general.--Not later than November 1,
2011, the Secretary shall ensure that an
independent third party conducts an independent
evaluation of all field-based projects that--
(i) addresses each factor described
in subparagraph (B); and
(ii) is conducted in accordance
with this section.
(B) Required factors.--The Secretary shall
require the independent third party to
develop--
(i) with respect to each relevant
market in which an eligible commodity
was procured under this section, a
description of--
(I) the prevailing and
historic supply, demand, and
price movements of the market
(including the extent of
competition for procurement
bids);
(II) the impact of the
procurement of the eligible
commodity on producer and
consumer prices in the market;
(III) each government
market interference or other
activity of the donor country
that might have significantly
affected the supply or demand
of the eligible commodity in
the area at which the local or
regional procurement occurred;
(IV) the quantities and
types of eligible commodities
procured in the market;
(V) the time frame for
procurement of each eligible
commodity; and
(VI) the total cost of the
procurement of each eligible
commodity (including storage,
handling, transportation, and
administrative costs);
(ii) an assessment regarding--
(I) whether the
requirements of this section
have been met;
(II) the impact of
different methodologies and
approaches on--
(aa) local and
regional agricultural
producers (including
large and small
agricultural
producers);
(bb) markets;
(cc) low-income
consumers; and
(dd) program
recipients; and
(III) the length of the
period beginning on the date on
which the Secretary initiated
the procurement process and
ending on the date of delivery
of eligible commodities;
(iii) a comparison of different
methodologies used to carry out this
section, with respect to--
(I) the benefits to local
agriculture;
(II) the impact on markets
and consumers;
(III) the period of time
required for procurement and
delivery;
(IV) quality and safety
assurances; and
(V) implementation costs;
and
(iv) to the extent adequate
information is available (including the
results of the report required under
subsection (b)(1)(B)), a comparison of
the different methodologies used by
other donor countries to make local and
regional procurements.
(C) Independent third party access to
records and reports.--The Secretary shall
provide to the independent third party access
to each record and report that the independent
third party determines to be necessary to
complete the independent evaluation.
(D) Public access to records and reports.--
Not later than 180 days after the date
described in paragraph (2), the Secretary shall
provide public access to each record and report
described in subparagraph (C).
(2) Report.--Not later than 4 years after the date
of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report that
contains the analysis and findings of the independent
evaluation conducted under paragraph (1)(A).
(g) Funding.--
(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 amounts.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry
out this section--
(A) $5,000,000 for fiscal year 2009;
(B) $25,000,000 for fiscal year 2010;
(C) $25,000,000 for fiscal year 2011; and
(D) $5,000,000 for fiscal year 2012.
Subtitle D--Softwood Lumber
SEC. 3301. SOFTWOOD LUMBER.
(a) In General.--The Tariff Act of 1930 (19 U.S.C. 1202 et
seq.) is amended by adding at the end the following new title:
``TITLE VIII--SOFTWOOD LUMBER
``SEC. 801. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This title may be cited as the
`Softwood Lumber Act of 2008'.
``(b) Table of Contents.--The table of contents for this
title is as follows:
``TITLE VIII--SOFTWOOD LUMBER
``Sec. 801. Short title; table of contents.
``Sec. 802. Definitions.
``Sec. 803. Establishment of softwood lumber importer declaration
program.
``Sec. 804. Scope of softwood lumber importer declaration program.
``Sec. 805. Export charge determination and publication.
``Sec. 806. Reconciliation.
``Sec. 807. Verification.
``Sec. 808. Penalties.
``Sec. 809. Reports.
``SEC. 802. DEFINITIONS.
``In this title:
``(1) Appropriate congressional committees.--The
term `appropriate congressional committees' means the
Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives.
``(2) Country of export.--The term `country of
export' means the country (including any political
subdivision of the country) from which softwood lumber
or a softwood lumber product is exported before
entering the United States.
``(3) Customs laws of the united states.--The term
`customs laws of the United States' means any law or
regulation enforced or administered by U.S. Customs and
Border Protection.
``(4) Export charges.--The term `export charges'
means any tax, charge, or other fee collected by the
country from which softwood lumber or a softwood lumber
product, described in section 804(a), is exported
pursuant to an international agreement entered into by
that country and the United States.
``(5) Export price.--
``(A) In general.--The term `export price'
means one of the following:
``(i) In the case of softwood
lumber or a softwood lumber product
that has undergone only primary
processing, the value that would be
determined F.O.B. at the facility where
the product underwent the last primary
processing before export.
``(ii)(I) In the case of softwood
lumber or a softwood lumber product
described in subclause (II), the value
that would be determined F.O.B. at the
facility where the lumber or product
underwent the last primary processing.
``(II) Softwood lumber or a
softwood lumber product described in
this subclause is lumber or a product
that underwent the last remanufacturing
before export by a manufacturer who--
``(aa) does not hold tenure
rights provided by the country
of export;
``(bb) did not acquire
standing timber directly from
the country of export; and
``(cc) is not related to
the person who holds tenure
rights or acquired standing
timber directly from the
country of export.
``(iii)(I) In the case of softwood
lumber or a softwood lumber product
described in subclause (II), the value
that would be determined F.O.B. at the
facility where the product underwent
the last processing before export.
``(II) Softwood lumber or a
softwood lumber product described in
this subclause is lumber or a product
that undergoes the last remanufacturing
before export by a manufacturer who--
``(aa) holds tenure rights
provided by the country of
export;
``(bb) acquired standing
timber directly from the
country of export; or
``(cc) is related to a
person who holds tenure rights
or acquired standing timber
directly from the country of
export.
``(B) Related persons.--For purposes of
this paragraph, a person is related to another
person if--
``(i) the person bears a
relationship to such other person
described in section 152(a) of the
Internal Revenue Code of 1986;
``(ii) the person bears a
relationship to such other person
described in section 267(b) of such
Code, except that `5 percent' shall be
substituted for `50 percent' each place
it appears;
``(iii) the person and such other
person are part of a controlled group
of corporations, as that term is
defined in section 1563(a) of such
Code, except that `5 percent' shall be
substituted for `80 percent' each place
it appears;
``(iv) the person is an officer or
director of such other person; or
``(v) the person is the employer of
such other person.
``(C) Tenure rights.--For purposes of this
paragraph, the term `tenure rights' means
rights to harvest timber from public land
granted by the country of export.
``(D) Export price where f.o.b. value
cannot be determined.--
``(i) In general.--In the case of
softwood lumber or a softwood lumber
product described in clause (i), (ii),
or (iii) of subparagraph (A) for which
an F.O.B. value cannot be determined,
the export price shall be the market
price for the identical lumber or
product sold in an arm's-length
transaction in the country of export at
approximately the same time as the
exported lumber or product. The market
price shall be determined in the
following order of preference:
``(I) The market price for
the lumber or a product sold at
substantially the same level of
trade as the exported lumber or
product but in different
quantities.
``(II) The market price for
the lumber or a product sold at
a different level of trade than
the exported lumber or product
but in similar quantities.
``(III) The market price
for the lumber or a product
sold at a different level of
trade than the exported lumber
or product and in different
quantities.
``(ii) Level of trade.--For
purposes of clause (i), `level of
trade' shall be determined in the same
manner as provided under section
351.412(c) of title 19, Code of Federal
Regulations (as in effect on January 1,
2008).
``(6) F.O.B.--The term `F.O.B.' means a value
consisting of all charges payable by a purchaser,
including those charges incurred in the placement of
merchandise on board of a conveyance for shipment, but
does not include the actual shipping charges or any
applicable export charges.
``(7) HTS.--The term `HTS' means the Harmonized
Tariff Schedule of the United States (19 U.S.C. 1202)
(as in effect on January 1, 2008).
``(8) Person.--The term `person' includes any
individual, partnership, corporation, association,
organization, business trust, government entity, or
other entity subject to the jurisdiction of the United
States.
``(9) United states.--The term `United States'
means the customs territory of the United States, as
defined in General Note 2 of the HTS.
``SEC. 803. ESTABLISHMENT OF SOFTWOOD LUMBER IMPORTER DECLARATION
PROGRAM.
``(a) Establishment of Program.--
``(1) In general.--The President shall establish
and maintain an importer declaration program with
respect to the importation of softwood lumber and
softwood lumber products described in section 804(a).
The importer declaration program shall require
importers of softwood lumber and softwood lumber
products described in section 804(a) to provide the
information required under subsection (b) and declare
the information required by subsection (c), and require
that such information accompany the entry summary
documentation.
``(2) Electronic record.--The President shall
establish an electronic record that includes the
importer information required under subsection (b) and
the declarations required under subsection (c).
``(b) Required Information.--The President shall require
the following information to be submitted by any person seeking
to import softwood lumber or softwood lumber products described
in section 804(a):
``(1) The export price for each shipment of
softwood lumber or softwood lumber products.
``(2) The estimated export charge, if any,
applicable to each shipment of softwood lumber or
softwood lumber products as calculated by applying the
percentage determined and published by the Under
Secretary for International Trade of the Department of
Commerce pursuant to section 805 to the export price
provided in subsection (b)(1).
``(c) Importer Declarations.--Pursuant to procedures
prescribed by the President, any person seeking to import
softwood lumber or softwood lumber products described in
section 804(a) shall declare that--
``(1) the person has made appropriate inquiry,
including seeking appropriate documentation from the
exporter and consulting the determinations published by
the Under Secretary for International Trade of the
Department of Commerce pursuant to section 805(b); and
``(2) to the best of the person's knowledge and
belief--
``(A) the export price provided pursuant to
subsection (b)(1) is determined in accordance
with the definition provided in section 802(5);
``(B) the export price provided pursuant to
subsection (b)(1) is consistent with the export
price provided on the export permit, if any,
granted by the country of export; and
``(C) the exporter has paid, or committed
to pay, all export charges due--
``(i) in accordance with the
volume, export price, and export charge
rate or rates, if any, as calculated
under an international agreement
entered into by the country of export
and the United States; and
``(ii) consistent with the export
charge determinations published by the
Under Secretary for International Trade
pursuant to section 805(b).
``SEC. 804. SCOPE OF SOFTWOOD LUMBER IMPORTER DECLARATION PROGRAM.
``(a) Products Included in Program.--The following products
shall be subject to the importer declaration program
established under section 803:
``(1) In general.--All softwood lumber and softwood
lumber products classified under subheading 4407.10.00,
4409.10.10, 4409.10.20, or 4409.10.90 of the HTS,
including the following softwood lumber, flooring, and
siding:
``(A) Coniferous wood, sawn or chipped
lengthwise, sliced or peeled, whether or not
planed, sanded, or finger-jointed, of a
thickness exceeding 6 millimeters.
``(B) Coniferous wood siding (including
strips and friezes for parquet flooring, not
assembled) continuously shaped (tongued,
grooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any
of its edges or faces, whether or not planed,
sanded, or finger-jointed.
``(C) Other coniferous wood (including
strips and friezes for parquet flooring, not
assembled) continuously shaped (tongued,
grooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any
of its edges or faces (other than wood moldings
and wood dowel rods) whether or not planed,
sanded, or finger-jointed.
``(D) Coniferous wood flooring (including
strips and friezes for parquet flooring, not
assembled) continuously shaped (tongued,
grooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any
of its edges or faces, whether or not planed,
sanded, or finger-jointed.
``(E) Coniferous drilled and notched lumber
and angle cut lumber.
``(2) Products continually shaped.--Any product
classified under subheading 4409.10.05 of the HTS that
is continually shaped along its end or side edges.
``(3) Other lumber products.--Except as otherwise
provided in subsection (b) or (c), softwood lumber
products that are stringers, radius-cut box-spring
frame components, fence pickets, truss components,
pallet components, and door and window frame parts
classified under subheading 4418.90.46.95,
4421.90.70.40, or 4421.90.97.40 of the HTS.
``(b) Products Excluded From Program.--The following
products shall be excluded from the importer declaration
program established under section 803:
``(1) Trusses and truss kits, properly classified
under subheading 4418.90 of the HTS.
``(2) I-joist beams.
``(3) Assembled box-spring frames.
``(4) Pallets and pallet kits, properly classified
under subheading 4415.20 of HTS.
``(5) Garage doors.
``(6) Edge-glued wood, properly classified under
subheading 4421.90.97.40 of the HTS.
``(7) Complete door frames.
``(8) Complete window frames.
``(9) Furniture.
``(10) Articles brought into the United States
temporarily and for which an exemption from duty is
claimed under subchapter XIII of chapter 98 of the HTS.
``(11) Household and personal effects.
``(c) Exceptions for Certain Products.--The following
softwood lumber products shall not be subject to the importer
declaration program established under section 803:
``(1) Stringers.--Stringers (pallet components used
for runners), if the stringers--
``(A) have at least 2 notches on the side,
positioned at equal distance from the center,
to properly accommodate forklift blades; and
``(B) are properly classified under
subheading 4421.90.97.40 of the HTS.
``(2) Box-spring frame kits.--
``(A) In general.--Box-spring frame kits,
if--
``(i) the kits contain--
``(I) 2 wooden side rails;
``(II) 2 wooden end (or
top) rails; and
``(III) varying numbers of
wooden slats; and
``(ii) the side rails and the end
rails are radius-cut at both ends.
``(B) Packaging.--Any kit described in
subparagraph (A) shall be individually
packaged, and contain the exact number of
wooden components needed to make the box-spring
frame described on the entry documents, with no
further processing required. None of the
components contained in the package may exceed
1 inch in actual thickness or 83 inches in
length.
``(3) Radius-cut box-spring frame components.--
Radius-cut box-spring frame components, not exceeding 1
inch in actual thickness or 83 inches in length, ready
for assembly without further processing, if radius cuts
are present on both ends of the boards and are
substantial cuts so as to completely round 1 corner.
``(4) Fence pickets.--Fence pickets requiring no
further processing and properly classified under
subheading 4421.90.70 of the HTS, 1 inch or less in
actual thickness, up to 8 inches wide, and 6 feet or
less in length, and having finials or decorative
cuttings that clearly identify them as fence pickets.
In the case of dog-eared fence pickets, the corners of
the boards shall be cut off so as to remove pieces of
wood in the shape of isosceles right angle triangles
with sides measuring \3/4\ of an inch or more.
``(5) United states-origin lumber.--Lumber
originating in the United States that is exported to
another country for minor processing and imported into
the United States if--
``(A) the processing occurring in another
country is limited to kiln drying, planing to
create smooth-to-size board, and sanding; and
``(B) the importer establishes to the
satisfaction of U.S. Customs and Border
Protection upon entry that the lumber
originated in the United States.
``(6) Softwood lumber.--Any softwood lumber or
softwood lumber product that originated in the United
States, if the importer, exporter, foreign processor,
or original United States producer establishes to the
satisfaction of U.S. Customs and Border Protection upon
entry that the softwood lumber entered and documented
as originating in the United States was first produced
in the United States.
``(7) Home packages or kits.--
``(A) In general.--Softwood lumber or
softwood lumber products contained in a single
family home package or kit, regardless of the
classification under the HTS, if the importer
declares that the following requirements have
been met:
``(i) The package or kit
constitutes a full package of the
number of wooden pieces specified in
the plan, design, or blueprint
necessary to produce a home of at least
700 square feet produced to a specified
plan, design, or blueprint.
``(ii) The package or kit
contains--
``(I) all necessary
internal and external doors and
windows, nails, screws, glue,
subfloor, sheathing, beams,
posts, and connectors; and
``(II) if included in the
purchase contract, the decking,
trim, drywall, and roof
shingles specified in the plan,
design, or blueprint.
``(iii) Prior to importation, the
package or kit is sold to a United
States retailer that sells complete
home packages or kits pursuant to a
valid purchase contract referencing the
particular home design, plan, or
blueprint, and the contract is signed
by a customer not affiliated with the
importer.
``(iv) Softwood lumber products
entered as part of the package or kit,
whether in a single entry or multiple
entries on multiple days, are to be
used solely for the construction of the
single family home specified by the
home design, plan, or blueprint
matching the U.S. Customs and Border
Protection import entry.
``(B) Additional documentation required for
home packages and kits.--In the case of each
entry of products described in clauses (i)
through (iv) of subparagraph (A) the following
documentation shall be retained by the importer
and made available to U.S. Customs and Border
Protection upon request:
``(i) A copy of the appropriate
home design, plan, or blueprint
matching the customs entry in the
United States.
``(ii) A purchase contract from a
retailer of home kits or packages
signed by a customer not affiliated
with the importer.
``(iii) A listing of all parts in
the package or kit being entered into
the United States that conforms to the
home design, plan, or blueprint for
which such parts are being imported.
``(iv) If a single contract
involves multiple entries, an
identification of all the items
required to be listed under clause
(iii) that are included in each
individual shipment.
``(d) Products Covered.--For purposes of determining if a
product is covered by the importer declaration program, the
President shall be guided by the article descriptions provided
in this section.
``SEC. 805. EXPORT CHARGE DETERMINATION AND PUBLICATION.
``(a) Determination.--The Under Secretary for International
Trade of the Department of Commerce shall determine, on a
monthly basis, any export charges (expressed as a percentage of
export price) to be collected by a country of export from
exporters of softwood lumber or softwood lumber products
described in section 804(a) in order to ensure compliance with
any international agreement entered into by that country and
the United States.
``(b) Publication.--The Under Secretary for International
Trade shall immediately publish any determination made under
subsection (a) on the website of the International Trade
Administration of the Department of Commerce, and in any other
manner the Under Secretary considers appropriate.
``SEC. 806. RECONCILIATION.
``The Secretary of the Treasury shall conduct
reconciliations to ensure the proper implementation and
operation of international agreements entered into between a
country of export of softwood lumber or softwood lumber
products described in section 804(a) and the United States. The
Secretary of Treasury shall reconcile the following:
``(1) The export price declared by a United States
importer pursuant to section 803(b)(1) with the export
price reported to the United States by the country of
export, if any.
``(2) The export price declared by a United States
importer pursuant to section 803(b)(1) with the revised
export price reported to the United States by the
country of export, if any.
``SEC. 807. VERIFICATION.
``(a) In General.--The Secretary of Treasury shall
periodically verify the declarations made by a United States
importer pursuant to section 803(c), including by determining
whether--
``(1) the export price declared by a United States
importer pursuant to section 803(b)(1) is the same as
the export price provided on the export permit, if any,
issued by the country of export; and
``(2) the estimated export charge declared by a
United States importer pursuant to section 803(b)(2) is
consistent with the determination published by the
Under Secretary for International Trade pursuant to
section 805(b).
``(b) Examination of Books and Records.--
``(1) In general.--Any record relating to the
importer declaration program required under section 803
shall be treated as a record required to be maintained
and produced under title V of this Act.
``(2) Examination of records.--The Secretary of the
Treasury is authorized to take such action, and examine
such records, under section 509 of this Act, as the
Secretary determines necessary to verify the
declarations made pursuant to section 803(c) are true
and accurate.
``SEC. 808. PENALTIES.
``(a) In General.--It shall be unlawful for any person to
import into the United States softwood lumber or softwood
lumber products in knowing violation of this title.
``(b) Civil Penalties.--Any person who commits an unlawful
act as set forth in subsection (a) shall be liable for a civil
penalty not to exceed $10,000 for each knowing violation.
``(c) Other Penalties.--In addition to the penalties
provided for in subsection (b), any violation of this title
that violates any other customs law of the United States shall
be subject to any applicable civil and criminal penalty,
including seizure and forfeiture, that may be imposed under
such custom law or title 18, United States Code, with respect
to the importation of softwood lumber and softwood lumber
products described in section 804(a).
``(d) Factors To Consider in Assessing Penalties.--In
determining the amount of civil penalties to be assessed under
this section, consideration shall be given to any history of
prior violations of this title by the person, the ability of
the person to pay the penalty, the seriousness of the
violation, and such other matters as fairness may require.
``(e) Notice.--No penalty may be assessed under this
section against a person for violating a provision of this
title unless the person is given notice and opportunity to make
statements, both oral and written, with respect to such
violation.
``(f) Exception.--Notwithstanding any other provision of
this title, and without limitation, an importer shall not be
found to have violated subsection 803(c) if--
``(1) the importer made an appropriate inquiry in
accordance with section 803(c)(1) with respect to the
declaration;
``(2) the importer produces records maintained
pursuant to section 807(b) that substantiate the
declaration; and
``(3) there is not substantial evidence indicating
that the importer knew that the fact to which the
importer made the declaration was false.
``SEC. 809. REPORTS.
``(a) Semiannual Reports.--Not later than 180 days after
the effective date of this title, and every 180 days
thereafter, the President shall submit to the appropriate
congressional committees a report--
``(1) describing the reconciliations conducted
under section 806, and the verifications conducted
under section 807;
``(2) identifying the manner in which the United
States importers subject to reconciliations conducted
under section 806 and verifications conducted under
section 807 were chosen;
``(3) identifying any penalties imposed under
section 808;
``(4) identifying any patterns of noncompliance
with this title; and
``(5) identifying any problems or obstacles
encountered in the implementation and enforcement of
this title.
``(b) Subsidies Reports.--Not later than 180 days after the
date of the enactment of this title, and every 180 days
thereafter, the Secretary of Commerce shall provide to the
appropriate congressional committees a report on any subsidies
on softwood lumber or softwood lumber products, including
stumpage subsidies, provided by countries of export.
``(c) GAO Reports.--The Comptroller General of the United
States shall submit the following reports to the appropriate
congressional committees:
``(1) Not later than 18 months after the date of
the enactment of this title, a report on the
effectiveness of the reconciliations conducted under
section 806, and verifications conducted under section
807.
``(2) Not later than 12 months after the date of
the enactment of this title, a report on whether
countries that export softwood lumber or softwood
lumber products to the United States are complying with
any international agreements entered into by those
countries and the United States.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date that is 60 days after the date of
the enactment of this Act.
TITLE IV--NUTRITION
Subtitle A--Food Stamp Program
PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM
SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM.
(a) Short Title.--The first section of the Food Stamp Act
of 1977 (7 U.S.C. 2011 note; Public Law 88-525) is amended by
striking ``Food Stamp Act of 1977'' and inserting ``Food and
Nutrition Act of 2008''.
(b) Program.--The Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.) (as amended by subsection (a)) is amended by
striking ``food stamp program'' each place it appears and
inserting ``supplemental nutrition assistance program''.
SEC. 4002. CONFORMING AMENDMENTS.
(a) In General.--
(1) Section 4 of the Food and Nutrition Act of 2008
(7 U.S.C. 2013) is amended in the section heading by
striking ``food stamp program'' and inserting
``supplemental nutrition assistance program''.
(2) Section 5(h)(2)(A) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2014(h)(2)(A)) is amended by
striking ``Food Stamp Disaster Task Force'' and
inserting ``Disaster Task Force''.
(3) Section 6 of the Food and Nutrition Act of 2008
(7 U.S.C. 2015) is amended--
(A) in subsection (d)(3), by striking ``for
food stamps'';
(B) in subsection (j), in the subsection
heading, by striking ``Food Stamp''; and
(C) in subsection (o)--
(i) in paragraph (2), by striking
``food stamp benefits'' and inserting
``supplemental nutrition assistance
program benefits''; and
(ii) in paragraph (6)--
(I) in subparagraph (A)--
(aa) in clause (i),
by striking ``food
stamps'' and inserting
``supplemental
nutrition assistance
program benefits''; and
(bb) in clause
(ii)--
(AA) in the matter preceding subclause (I),
by striking ``a food stamp recipient'' and
inserting ``a member of a household that
receives supplemental nutrition assistance
program benefits''; and
(BB) by striking ``food stamp benefits''
each place it appears and inserting
``supplemental nutrition assistance program
benefits''; and
(II) in subparagraphs (D)
and (E), by striking ``food
stamp recipients'' each place
it appears and inserting
``members of households that
receive supplemental nutrition
assistance program benefits''.
(4) Section 7 of the Food and Nutrition Act of 2008
(7 U.S.C. 2016) is amended--
(A) in subsection (i)--
(i) in paragraph (3)(B)(ii), by
striking ``food stamp households'' and
inserting ``households receiving
supplemental nutrition assistance
program benefits''; and
(ii) in paragraph (7), by striking
``food stamp issuance'' and inserting
``supplemental nutrition assistance
issuance''; and
(B) in subsection (k)--
(i) in paragraph (2), by striking
``food stamp benefits'' and inserting
``supplemental nutrition assistance
program benefits''; and
(ii) in paragraph (3), by striking
``food stamp retail'' and inserting
``retail''.
(5) Section 9(b)(1) of that Food and Nutrition Act
of 2008 (7 U.S.C. 2018(b)(1)) is amended by striking
``food stamp households'' and inserting ``households
that receive supplemental nutrition assistance program
benefits''.
(6) Section 11 of the Food and Nutrition Act of
2008 (7 U.S.C. 2020) is amended--
(A) in subsection (e)--
(i) by striking ``food stamps''
each place it appears and inserting
``supplemental nutrition assistance
program benefits'';
(ii) by striking ``food stamp
offices'' each place it appears and
inserting ``supplemental nutrition
assistance program offices'';
(iii) by striking ``food stamp
office'' each place it appears and
inserting ``supplemental nutrition
assistance program office''; and
(iv) in paragraph (25)--
(I) in the matter preceding
subparagraph (A), by striking
``Simplified Food Stamp
Program'' and inserting
``Simplified Supplemental
Nutrition Assistance Program'';
and
(II) in subparagraph (A),
by striking ``food stamp
benefits'' and inserting
``supplemental nutrition
assistance program benefits'';
(B) in subsection (k), by striking ``may
issue, upon request by the State agency, food
stamps'' and inserting ``may provide, on
request by the State agency, supplemental
nutrition assistance program benefits'';
(C) in subsection (l), by striking ``food
stamp participation'' and inserting
``supplemental nutrition assistance program
participation'';
(D) in subsections (q) and (r), in the
subsection headings, by striking ``Food
Stamps'' each place it appears and inserting
``Benefits'';
(E) in subsection (s), by striking ``food
stamp benefits'' each place it appears and
inserting ``supplemental nutrition assistance
program benefits''; and
(F) in subsection (t)(1)--
(i) in subparagraph (A), by
striking ``food stamp application'' and
inserting ``supplemental nutrition
assistance program application''; and
(ii) in subparagraph (B), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits''.
(7) Section 14(b) of the Food and Nutrition Act of
2008 (7 U.S.C. 2023(b)) is amended by striking ``food
stamp''.
(8) Section 16 of the Food and Nutrition Act of
2008 (7 U.S.C. 2025) is amended--
(A) in subsection (a)(4), by striking
``food stamp informational activities'' and
inserting ``informational activities relating
to the supplemental nutrition assistance
program'';
(B) in subsection (c)(9)(C), by striking
``food stamp caseload'' and inserting ``the
caseload under the supplemental nutrition
assistance program''; and
(C) in subsection (h)(1)(E)(i), by striking
``food stamp recipients'' and inserting
``members of households receiving supplemental
nutrition assistance program benefits''.
(9) Section 17 of the Food and Nutrition Act of
2008 (7 U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking
``food stamp benefits'' each place it appears
and inserting ``supplemental nutrition
assistance program benefits'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
striking ``food stamp
benefits'' and inserting
``supplemental nutrition
assistance program benefits'';
and
(II) in subparagraph (B)--
(aa) in clause
(ii)(II), by striking
``food stamp
recipients'' and
inserting
``supplemental
nutrition assistance
program recipients'';
(bb) in clause
(iii)(I), by striking
``the State's food
stamp households'' and
inserting ``the number
of households in the
State receiving
supplemental nutrition
assistance program
benefits''; and
(cc) in clause
(iv)(IV)(bb), by
striking ``food stamp
deductions'' and
inserting
``supplemental
nutrition assistance
program deductions'';
(ii) in paragraph (2), by striking
``food stamp benefits'' and inserting
``supplemental nutrition assistance
program benefits''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by
striking ``food stamp
employment'' and inserting
``supplemental nutrition
assistance program
employment'';
(II) in subparagraph (B),
by striking ``food stamp
recipients'' and inserting
``supplemental nutrition
assistance program
recipients'';
(III) in subparagraph (C),
by striking ``food stamps'' and
inserting ``supplemental
nutrition assistance program
benefits''; and
(IV) in subparagraph (D),
by striking ``food stamp
benefits'' and inserting
``supplemental nutrition
assistance program benefits'';
(C) in subsection (c), by striking ``food
stamps'' and inserting ``supplemental nutrition
assistance'';
(D) in subsection (d)--
(i) in paragraph (1)(B), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``food stamp
allotments'' each place it
appears and inserting
``allotments''; and
(II) in subparagraph
(C)(ii), by striking ``food
stamp benefit'' and inserting
``supplemental nutrition
assistance program benefits'';
and
(iii) in paragraph (3)(E), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits'';
(E) in subsections (e) and (f), by striking
``food stamp benefits'' each place it appears
and inserting ``supplemental nutrition
assistance program benefits'';
(F) in subsection (g), in the first
sentence, by striking ``receipt of food stamp''
and inserting ``receipt of supplemental
nutrition assistance program''; and
(G) in subsection (j), by striking ``food
stamp agencies'' and inserting ``supplemental
nutrition assistance program agencies''.
(10) Section 18(a)(3)(A)(ii) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is
amended by striking ``food stamps'' and inserting
``supplemental nutrition assistance program benefits''.
(11) Section 22 of the Food and Nutrition Act of
2008 (7 U.S.C. 2031) is amended--
(A) in the section heading, by striking
``food stamp portion of minnesota family
investment plan'' and inserting ``minnesota
family investment project'';
(B) in subsections (b)(12) and (d)(3), by
striking ``the Food Stamp Act, as amended,''
each place it appears and inserting ``this
Act''; and
(C) in subsection (g)(1), by striking ``the
Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.)'' and inserting ``this Act''.
(12) Section 26 of the Food and Nutrition Act of
2008 (7 U.S.C. 2035) is amended--
(A) in the section heading, by striking
``simplified food stamp program'' and inserting
``simplified supplemental nutrition assistance
program''; and
(B) in subsection (b), by striking
``simplified food stamp program'' and inserting
``simplified supplemental nutrition assistance
program''.
(b) Conforming Cross-References.--
(1) In general.--Each provision of law described in
paragraph (2) is amended (as applicable)--
(A) by striking ``food stamp program'' each
place it appears and inserting ``supplemental
nutrition assistance program'';
(B) by striking ``Food Stamp Act of 1977''
each place it appears and inserting ``Food and
Nutrition Act of 2008'';
(C) by striking ``Food Stamp Act'' each
place it appears and inserting ``Food and
Nutrition Act of 2008'';
(D) by striking ``food stamp'' each place
it appears and inserting ``supplemental
nutrition assistance program benefits'';
(E) by striking ``food stamps'' each place
it appears and inserting ``supplemental
nutrition assistance program benefits'';
(F) in each applicable title, subtitle,
chapter, subchapter, and section heading, by
striking ``food stamp act'' each place it
appears and inserting ``food and nutrition act
of 2008'';
(G) in each applicable subsection and
appropriations heading, by striking ``Food
Stamp Act'' each place it appears and inserting
``Food and Nutrition Act of 2008'';
(H) in each applicable heading other than a
title, subtitle, chapter, subchapter, section,
subsection, or appropriations heading, by
striking ``food stamp act'' each place it
appears and inserting ``food and nutrition act
of 2008'';
(I) in each applicable title, subtitle,
chapter, subchapter, and section heading, by
striking ``food stamp program'' each place it
appears and inserting ``supplemental nutrition
assistance program'';
(J) in each applicable subsection and
appropriations heading, by striking ``Food
Stamp Program'' each place it appears and
inserting ``Supplemental Nutrition Assistance
Program'';
(K) in each applicable heading other than a
title, subtitle, chapter, subchapter, section,
subsection, or appropriations heading, by
striking ``food stamp program'' each place it
appears and inserting ``supplemental nutrition
assistance program'';
(L) in each applicable title, subtitle,
chapter, subchapter, and section heading, by
striking ``food stamps'' each place it appears
and inserting ``supplemental nutrition
assistance program benefits'';
(M) in each applicable subsection and
appropriations heading, by striking ``Food
Stamps'' each place it appears and inserting
``Supplemental Nutrition Assistance Program
Benefits''; and
(N) in each applicable heading other than a
title, subtitle, chapter, subchapter, section,
subsection, or appropriations heading, by
striking ``food stamps'' each place it appears
and inserting ``supplemental nutrition
assistance program benefits''.
(2) Provisions of law.--The provisions of law
referred to in paragraph (1) are the following:
(A) The Hunger Prevention Act of 1988
(Public Law 100-435; 102 Stat. 1645).
(B) The Food Stamp Program Improvements Act
of 1994 (Public Law 103-225; 108 Stat. 106).
(C) Title IV of the Farm Security and Rural
Investment Act of 2002 (Public Law 107-171; 116
Stat. 305).
(D) Section 2 of Public Law 103-205 (7
U.S.C. 2012 note).
(E) Section 807(b) of the Stewart B.
McKinney Homeless Assistance Act (7 U.S.C. 2014
note; Public Law 100-77).
(F) The Electronic Benefit Transfer
Interoperability and Portability Act of 2000
(Public Law 106-171; 114 Stat. 3).
(G) Section 502(b) of the Agricultural
Research, Extension, and Education Reform Act
of 1998 (7 U.S.C. 2025 note; Public Law 105-
185).
(H) The National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3101 et seq.).
(I) The Emergency Food Assistance Act of
1983 (7 U.S.C. 7501 et seq.).
(J) The Immigration and Nationality Act (8
U.S.C. 1101 et seq.).
(K) Section 8119 of the Department of
Defense Appropriations Act, 1999 (10 U.S.C. 113
note; Public Law 105-262).
(L) The Armored Car Industry Reciprocity
Act of 1993 (15 U.S.C. 5901 et seq.).
(M) Title 18, United States Code.
(N) The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
(O) The Internal Revenue Code of 1986.
(P) Section 650 of the Treasury and General
Government Appropriations Act, 2000 (26 U.S.C.
7801 note; Public Law 106-58).
(Q) The Wagner-Peysner Act (29 U.S.C. 49 et
seq.).
(R) The Workforce Investment Act of 1998
(29 U.S.C. 2801 et seq.).
(S) Title 31, United States Code.
(T) Title 37, United States Code.
(U) The Public Health Service Act (42
U.S.C. 201 et seq.).
(V) Titles II through XIX of the Social
Security Act (42 U.S.C. 401 et seq.).
(W) Section 406 of the Family Support Act
of 1988 (Public Law 100-485; 102 Stat. 2400).
(X) Section 232 of the Social Security Act
Amendments of 1994 (42 U.S.C. 1314a).
(Y) The United States Housing Act of 1937
(42 U.S.C. 1437 et seq.).
(Z) The Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.).
(AA) The Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(BB) The Older Americans Act of 1965 (42
U.S.C. 3001 et seq.).
(CC) Section 208 of the Intergovernmental
Personnel Act of 1970 (42 U.S.C. 4728).
(DD) The Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
(EE) The Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621 et seq.).
(FF) Section 658K of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C.
9858i).
(GG) The Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.).
(HH) Public Law 95-348 (92 Stat. 487).
(II) The Agriculture and Food Act of 1981
(Public Law 97-98; 95 Stat. 1213).
(JJ) The Disaster Assistance Act of 1988
(Public Law 100-387; 102 Stat. 924).
(KK) The Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101-624; 104
Stat. 3359).
(LL) The Cranston-Gonzalez National
Affordable Housing Act (Public Law 101-625; 104
Stat. 4079).
(MM) Section 388 of the Persian Gulf
Conflict Supplemental Authorization and
Personnel Benefits Act of 1991 (Public Law 102-
25; 105 Stat. 98).
(NN) The Food, Agriculture, Conservation,
and Trade Act Amendments of 1991 (Public Law
102-237; 105 Stat. 1818).
(OO) The Act of March 26, 1992 (Public Law
102-265; 106 Stat. 90).
(PP) Public Law 105-379 (112 Stat. 3399).
(QQ) Section 101(c) of the Emergency
Supplemental Act, 2000 (Public Law 106-246; 114
Stat. 528).
(c) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to the ``food
stamp program'' established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) shall be considered to be a
reference to the ``supplemental nutrition assistance program''
established under that Act.
PART II--BENEFIT IMPROVEMENTS
SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM INCOME.
Section 5(d) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(d)) is amended--
(1) by striking ``(d) Household'' and inserting
``(d) Exclusions From Income.--Household'';
(2) by striking ``only (1) any'' and inserting
``only--
``(1) any'';
(3) by indenting each of paragraphs (2) through
(18) so as to align with the margin of paragraph (1)
(as amended by paragraph (2));
(4) by striking the comma at the end of each of
paragraphs (1) through (16) and inserting a semicolon;
(5) in paragraph (3)--
(A) by striking ``like (A) awarded'' and
inserting ``like--
``(A) awarded'';
(B) by striking ``thereof, (B) to'' and
inserting ``thereof;
``(B) to''; and
(C) by striking ``program, and (C) to'' and
inserting ``program; and
``(C) to'';
(6) in paragraph (11), by striking ``)), or (B) a''
and inserting ``)); or
``(B) a'';
(7) in paragraph (17), by striking ``, and'' at the
end and inserting a semicolon;
(8) in paragraph (18), by striking the period at
the end and inserting ``; and''; and
(9) by adding at the end the following:
``(19) any additional payment under chapter 5 of
title 37, United States Code, or otherwise designated
by the Secretary to be appropriate for exclusion under
this paragraph, that is received by or from a member of
the United States Armed Forces deployed to a designated
combat zone, if the additional pay--
``(A) is the result of deployment to or
service in a combat zone; and
``(B) was not received immediately prior to
serving in a combat zone.''.
SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME
AMERICANS.
Section 5(e)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(1)) is amended--
(1) in subparagraph (A)(ii), by striking ``not less
than $134'' and all that follows through the end of the
clause and inserting the following: ``not less than--
``(I) for fiscal year 2009,
$144, $246, $203, and $127,
respectively; and
``(II) for fiscal year 2010
and each fiscal year
thereafter, an amount that is
equal to the amount from the
previous fiscal year adjusted
to the nearest lower dollar
increment to reflect changes
for the 12-month period ending
on the preceding June 30 in the
Consumer Price Index for All
Urban Consumers published by
the Bureau of Labor Statistics
of the Department of Labor, for
items other than food.'';
(2) in subparagraph (B)(ii), by striking ``not less
than $269'' and all that follows through the end of the
clause and inserting the following: ``not less than--
``(I) for fiscal year 2009,
$289; and
``(II) for fiscal year 2010
and each fiscal year
thereafter, an amount that is
equal to the amount from the
previous fiscal year adjusted
to the nearest lower dollar
increment to reflect changes
for the 12-month period ending
on the preceding June 30 in the
Consumer Price Index for All
Urban Consumers published by
the Bureau of Labor Statistics
of the Department of Labor, for
items other than food.''; and
(3) by adding at the end the following:
``(C) Requirement.--Each adjustment under
subparagraphs (A)(ii)(II) and (B)(ii)(II) shall
be based on the unrounded amount for the prior
12-month period.''.
SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.
Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(3)(A)) is amended by striking ``, the maximum
allowable level of which shall be $200 per month for each
dependent child under 2 years of age and $175 per month for
each other dependent,''.
SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT ACCOUNTS.
(a) Adjusting Countable Resources for Inflation.--Section
(5)(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g))
is amended--
(1) by striking ``(g)(1) The Secretary'' and
inserting the following:
``(g) Allowable Financial Resources.--
``(1) Total amount.--
``(A) In general.--The Secretary''.
(2) in subparagraph (A) (as so designated by
paragraph (1))--
(A) by inserting ``(as adjusted in
accordance with subparagraph (B))'' after
``$2,000''; and
(B) by inserting ``(as adjusted in
accordance with subparagraph (B))'' after
``$3,000''; and
(3) by adding at the end the following:
``(B) Adjustment for inflation.--
``(i) In general.--Beginning on
October 1, 2008, and each October 1
thereafter, the amounts specified in
subparagraph (A) shall be adjusted and
rounded down to the nearest $250
increment to reflect changes for the
12-month period ending the preceding
June in the Consumer Price Index for
All Urban Consumers published by the
Bureau of Labor Statistics of the
Department of Labor.
``(ii) Requirement.--Each
adjustment under clause (i) shall be
based on the unrounded amount for the
prior 12-month period.''.
(b) Exclusion of Retirement Accounts From Allowable
Financial Resources.--
(1) In general.--Section 5(g)(2)(B)(v) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v))
is amended by striking ``or retirement account
(including an individual account)'' and inserting
``account''.
(2) Mandatory and discretionary exclusions.--
Section 5(g) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(g)) is amended by adding at the end the
following:
``(7) Exclusion of retirement accounts from
allowable financial resources.--
``(A) Mandatory exclusions.--The Secretary
shall exclude from financial resources under
this subsection the value of--
``(i) any funds in a plan,
contract, or account, described in
sections 401(a), 403(a), 403(b), 408,
408A, 457(b), and 501(c)(18) of the
Internal Revenue Code of 1986 and the
value of funds in a Federal Thrift
Savings Plan account as provided in
section 8439 of title 5, United States
Code; and
``(ii) any retirement program or
account included in any successor or
similar provision that may be enacted
and determined to be exempt from tax
under the Internal Revenue Code of
1986.
``(B) Discretionary exclusions.--The
Secretary may exclude from financial resources
under this subsection the value of any other
retirement plans, contracts, or accounts (as
determined by the Secretary).''.
(c) Exclusion of Education Accounts From Allowable
Financial Resources.--Section 5(g) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2014(g)) (as amended by subsection (b))
is amended by adding at the end the following:
``(8) Exclusion of education accounts from
allowable financial resources.--
``(A) Mandatory exclusions.--The Secretary
shall exclude from financial resources under
this subsection the value of any funds in a
qualified tuition program described in section
529 of the Internal Revenue Code of 1986 or in
a Coverdell education savings account under
section 530 of that Code.
``(B) Discretionary exclusions.--The
Secretary may exclude from financial resources
under this subsection the value of any other
education programs, contracts, or accounts (as
determined by the Secretary).''.
SEC. 4105. FACILITATING SIMPLIFIED REPORTING.
Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(c)(1)(A)) is amended--
(1) by striking ``reporting by'' and inserting
``reporting'';
(2) in clause (i), by inserting ``for periods
shorter than 4 months by'' before ``migrant'';
(3) in clause (ii), by inserting ``for periods
shorter than 4 months by'' before ``households''; and
(4) in clause (iii), by inserting ``for periods
shorter than 1 year by'' before ``households''.
SEC. 4106. TRANSITIONAL BENEFITS OPTION.
Section 11(s)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(s)(1)) is amended--
(1) by striking ``benefits to a household''; and
inserting ``benefits--
``(A) to a household'';
(2) by striking the period at the end and inserting
``; or''; and
(3) by adding at the end the following:
``(B) at the option of the State, to a
household with children that ceases to receive
cash assistance under a State-funded public
assistance program.''.
SEC. 4107. INCREASING THE MINIMUM BENEFIT.
Section 8(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2017(a)) is amended by striking ``$10 per month'' and
inserting ``8 percent of the cost of the thrifty food plan for
a household containing 1 member, as determined by the Secretary
under section 3, rounded to the nearest whole dollar
increment''.
SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.
Section 6(d)(4) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(d)(4)) is amended--
(1) in subparagraph (B)--
(A) by redesignating clause (vii) as clause
(viii); and
(B) by inserting after clause (vi) the
following:
``(vii) Programs intended to ensure
job retention by providing job
retention services, if the job
retention services are provided for a
period of not more than 90 days after
an individual who received employment
and training services under this
paragraph gains employment.''; and
(2) in subparagraph (F), by adding at the end the
following:
``(iii) Any individual voluntarily
electing to participate in a program
under this paragraph shall not be
subject to the limitations described in
clauses (i) and (ii).''.
PART III--PROGRAM OPERATIONS
SEC. 4111. NUTRITION EDUCATION.
(a) Authority to Provide Nutrition Education.--Section 4(a)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is
amended in the first sentence by inserting ``and, through an
approved State plan, nutrition education'' after ``an
allotment''.
(b) Implementation.--Section 11 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020) is amended by striking subsection
(f) and inserting the following:
``(f) Nutrition Education.--
``(1) In general.--State agencies may implement a
nutrition education program for individuals eligible
for program benefits that promotes healthy food choices
consistent with the most recent Dietary Guidelines for
Americans published under section 301 of the National
Nutrition Monitoring and Related Research Act of 1990
(7 U.S.C. 5341).
``(2) Delivery of nutrition education.--State
agencies may deliver nutrition education directly to
eligible persons or through agreements with the
National Institute of Food and Agriculture, including
through the expanded food and nutrition education
program under section 3(d) of the Act of May 8, 1914 (7
U.S.C. 343(d)), and other State and community health
and nutrition providers and organizations.
``(3) Nutrition education state plans.--
``(A) In general.--A State agency that
elects to provide nutrition education under
this subsection shall submit a nutrition
education State plan to the Secretary for
approval.
``(B) Requirements.--The plan shall--
``(i) identify the uses of the
funding for local projects; and
``(ii) conform to standards
established by the Secretary through
regulations or guidance.
``(C) Reimbursement.--State costs for
providing nutrition education under this
subsection shall be reimbursed pursuant to
section 16(a).
``(4) Notification.--To the maximum extent
practicable, State agencies shall notify applicants,
participants, and eligible program participants of the
availability of nutrition education under this
subsection.''.
SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.
Section 6(k) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(k)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) by striking ``No member'' and inserting the
following:
``(1) In general.--No member''; and
(3) by adding at the end the following:
``(2) Procedures.--The Secretary shall--
``(A) define the terms `fleeing' and
`actively seeking' for purposes of this
subsection; and
``(B) ensure that State agencies use
consistent procedures established by the
Secretary that disqualify individuals whom law
enforcement authorities are actively seeking
for the purpose of holding criminal proceedings
against the individual.''.
SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.
Section 7(h) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)) is amended by striking paragraph (2) and
inserting the following:
``(2) Requirements.--
``(A) In general.--Any procedure
established under paragraph (1) shall--
``(i) not reduce the allotment of
any household for any period; and
``(ii) ensure that no household
experiences an interval between
issuances of more than 40 days.
``(B) Multiple issuances.--The procedure
may include issuing benefits to a household in
more than 1 issuance during a month only when a
benefit correction is necessary.''.
SEC. 4114. ACCRUAL OF BENEFITS.
Section 7(i) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(i)) is amended by adding at the end the following:
``(12) Recovering electronic benefits.--
``(A) In general.--A State agency shall
establish a procedure for recovering electronic
benefits from the account of a household due to
inactivity.
``(B) Benefit storage.--A State agency may
store recovered electronic benefits off-line in
accordance with subparagraph (D), if the
household has not accessed the account after 6
months.
``(C) Benefit expunging.--A State agency
shall expunge benefits that have not been
accessed by a household after a period of 12
months.
``(D) Notice.--A State agency shall--
``(i) send notice to a household
the benefits of which are stored under
subparagraph (B); and
``(ii) not later than 48 hours
after request by the household, make
the stored benefits available to the
household.''.
SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.
(a) In General.--Section 7 of the Food and Nutrition Act of
2008 (7 U.S.C. 2016) is amended--
(1) by striking the section designation and heading
and all that follows through ``subsection (j)) shall
be'' and inserting the following:
``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.
``(a) In General.--Except as provided in subsection (i),
EBT cards shall be'';
(2) in subsection (b)--
(A) by striking ``(b) Coupons'' and
inserting the following:
``(b) Use.--Benefits''; and
(B) by striking the second proviso;
(3) in subsection (c)--
(A) by striking ``(c) Coupons'' and
inserting the following:
``(c) Design.--
``(1) In general.--EBT cards'';
(B) in the first sentence, by striking
``and define their denomination''; and
(C) by striking the second sentence and
inserting the following:
``(2) Prohibition.--The name of any public official
shall not appear on any EBT card.'';
(4) by striking subsection (d);
(5) in subsection (e)--
(A) by striking ``coupons'' each place it
appears and inserting ``benefits''; and
(B) by striking ``coupon issuers'' each
place it appears and inserting ``benefit
issuers'';
(6) in subsection (f)--
(A) by striking ``coupons'' each place it
appears and inserting ``benefits'';
(B) by striking ``coupon issuer'' and
inserting ``benefit issuers'';
(C) by striking ``including any losses''
and all that follows through ``section
11(e)(20),''; and
(D) by striking ``and allotments'';
(7) by striking subsection (g) and inserting the
following:
``(g) Alternative Benefit Delivery.--
``(1) In general.--If the Secretary determines, in
consultation with the Inspector General of the
Department of Agriculture, that it would improve the
integrity of the supplemental nutrition assistance
program, the Secretary shall require a State agency to
issue or deliver benefits using alternative methods.
``(2) No imposition of costs.--The cost of
documents or systems that may be required by this
subsection may not be imposed upon a retail food store
participating in the supplemental nutrition assistance
program.
``(3) Devaluation and termination of issuance of
paper coupons.--
``(A) Coupon issuance.--Effective on the
date of enactment of the Food, Conservation,
and Energy Act of 2008, no State shall issue
any coupon, stamp, certificate, or
authorization card to a household that receives
supplemental nutrition assistance under this
Act.
``(B) EBT cards.--Effective beginning on
the date that is 1 year after the date of
enactment of the Food, Conservation, and Energy
Act of 2008, only an EBT card issued under
subsection (i) shall be eligible for exchange
at any retail food store.
``(C) De-obligation of coupons.--Coupons
not redeemed during the 1-year period beginning
on the date of enactment of the Food,
Conservation, and Energy Act of 2008 shall--
``(i) no longer be an obligation of
the Federal Government; and
``(ii) not be redeemable.'';
(8) in subsection (h)(1), by striking ``coupons''
and inserting ``benefits'';
(9) in subsection (i), by adding at the end the
following:
``(12) Interchange fees.--No interchange fees shall
apply to electronic benefit transfer transactions under
this subsection.'';
(10) in subsection (j)--
(A) in paragraph (2)(A)(ii), by striking
``printing, shipping, and redeeming coupons''
and inserting ``issuing and redeeming
benefits''; and
(B) in paragraph (5), by striking
``coupon'' and inserting ``benefit'';
(11) in subsection (k)--
(A) by striking ``coupons in the form of''
each place it appears and inserting ``program
benefits in the form of'';
(B) by striking ``a coupon issued in the
form of'' each place it appears and inserting
``program benefits in the form of''; and
(C) in subparagraph (A), by striking
``subsection (i)(11)(A)'' and inserting
``subsection (h)(11)(A)''; and
(12) by redesignating subsections (e) through (k)
as subsections (d) through (j), respectively.
(b) Conforming Amendments.--
(1) Section 3 of the Food and Nutrition Act of 2008
(7 U.S.C. 2012) is amended--
(A) in subsection (a), by striking
``coupons'' and inserting ``benefits'';
(B) by striking subsection (b) and
inserting the following:
``(b) Benefit.--The term `benefit' means the value of
supplemental nutrition assistance provided to a household by
means of--
``(1) an electronic benefit transfer under section
7(i); or
``(2) other means of providing assistance, as
determined by the Secretary.'';
(C) in subsection (c), in the first
sentence, by striking ``authorization cards''
and inserting ``benefits'';
(D) in subsection (d), by striking ``or
access device'' and all that follows through
the end of the subsection and inserting a
period;
(E) in subsection (e)--
(i) by striking ``(e) `Coupon
issuer' means'' and inserting the
following:
``(e) Benefit Issuer.--The term `benefit issuer' means'';
and
(ii) by striking ``coupons'' and
inserting ``benefits'';
(F) in subsection (g)(7), by striking
``subsection (r)'' and inserting ``subsection
(j)'';
(G) in subsection (i)(5)--
(i) in subparagraph (B), by
striking ``subsection (r)'' and
inserting ``subsection (j)''; and
(ii) in subparagraph (D), by
striking ``coupons'' and inserting
``benefits'';
(H) in subsection (j), by striking ``(as
that term is defined in subsection (p))'';
(I) in subsection (k)--
(i) in paragraph (1)(A), by
striking ``subsection (u)(1)'' and
inserting ``subsection (r)(1)'';
(ii) in paragraph (2), by striking
``subsections (g)(3), (4), (5), (7),
(8), and (9) of this section'' and
inserting ``paragraphs (3), (4), (5),
(7), (8), and (9) of subsection (k)'';
and
(iii) in paragraph (3), by striking
``subsection (g)(6) of this section''
and inserting ``subsection (k)(6)'';
(J) in subsection (t), by inserting ``,
including point of sale devices,'' after
``other means of access'';
(K) in subsection (u), by striking ``(as
defined in subsection (g))'';
(L) by adding at the end the following:
``(v) EBT Card.--The term `EBT card' means an electronic
benefit transfer card issued under section 7(i).''; and
(M) by redesignating subsections (a)
through (v) as subsections (b), (d), (f), (g),
(e), (h), (k), (l), (n), (o), (p), (q), (s),
(t), (u), (v), (c), (j), (m), (a), (r), and
(i), respectively, and moving the subsections
so as to appear in alphabetical order.
(2) Section 4(a) of the Food and Nutrition Act of
2008 (7 U.S.C. 2013(a)) is amended--
(A) by striking ``coupons'' each place it
appears and inserting ``benefits''; and
(B) by striking ``Coupons issued'' and
inserting ``benefits issued''.
(3) Section 5 of the Food and Nutrition Act of 2008
(7 U.S.C. 2014) is amended--
(A) in subsection (a), by striking
``section 3(i)(4)'' and inserting ``section
3(n)(4)'';
(B) in subsection (h)(3)(B), in the second
sentence, by striking ``section 7(i)'' and
inserting ``section 7(h)''; and
(C) in subsection (i)(2)(E), by striking
``, as defined in section 3(i) of this Act,''.
(4) Section 6 of the Food and Nutrition Act of 2008
(7 U.S.C. 2015) is amended--
(A) in subsection (b)(1)--
(i) in subparagraph (B), by
striking ``coupons or authorization
cards'' and inserting ``program
benefits''; and
(ii) by striking ``coupons'' each
place it appears and inserting
``benefits''; and
(B) in subsection (d)(4)(L), by striking
``section 11(e)(22)'' and inserting ``section
11(e)(19)''.
(5) Section 8 of the Food and Nutrition Act of 2008
(7 U.S.C. 2017) is amended--
(A) in subsection (b), by striking ``,
whether through coupons, access devices, or
otherwise''; and
(B) in subsections (e)(1) and (f), by
striking ``section 3(i)(5)'' each place it
appears and inserting ``section 3(n)(5)''.
(6) Section 9 of the Food and Nutrition Act of 2008
(7 U.S.C. 2018) is amended--
(A) by striking ``coupons'' each place it
appears and inserting ``benefits'';
(B) in subsection (a)--
(i) in paragraph (1), by striking
``coupon business'' and inserting
``benefit transactions''; and
(ii) by striking paragraph (3) and
inserting the following:
``(3) Authorization periods.--The Secretary shall
establish specific time periods during which
authorization to accept and redeem benefits shall be
valid under the supplemental nutrition assistance
program.''; and
(C) in subsection (g), by striking
``section 3(g)(9)'' and inserting ``section
3(k)(9)''.
(7) Section 10 of the Food and Nutrition Act of
2008 (7 U.S.C. 2019) is amended--
(A) by striking the section designation and
heading and all that follows through
``Regulations'' and inserting the following:
``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.
``Regulations'';
(B) by striking ``section 3(k)(4) of this
Act'' and inserting ``section 3(p)(4)'';
(C) by striking ``section 7(i)'' and
inserting ``section 7(h)''; and
(D) by striking ``coupons'' each place it
appears and inserting ``benefits''.
(8) Section 11 of the Food and Nutrition Act of
2008 (7 U.S.C. 2020) is amended--
(A) in subsection (d)--
(i) by striking ``section 3(n)(1)
of this Act'' each place it appears and
inserting ``section 3(t)(1)''; and
(ii) by striking ``section 3(n)(2)
of this Act'' each place it appears and
inserting ``section 3(t)(2)'';
(B) in subsection (e)--
(i) in paragraph (8)(E), by
striking ``paragraph (16) or (20)(B)''
and inserting ``paragraph (15) or
(18)(B)'';
(ii) by striking paragraphs (15)
and (19);
(iii) by redesignating paragraphs
(16) through (18) and (20) through (25)
as paragraphs (15) through (17) and
(18) through (23), respectively; and
(iv) in paragraph (17) (as so
redesignated), by striking ``(described
in section 3(n)(1) of this Act)'' and
inserting ``described in section
3(t)(1)'';
(C) in subsection (h), by striking ``coupon
or coupons'' and inserting ``benefits'';
(D) by striking ``coupon'' each place it
appears and inserting ``benefit'';
(E) by striking ``coupons'' each place it
appears and inserting ``benefits''; and
(F) in subsection (q), by striking
``section 11(e)(20)(B)'' and inserting
``subsection (e)(18)(B)''.
(9) Section 13 of the Food and Nutrition Act of
2008 (7 U.S.C. 2022) is amended by striking ``coupons''
each place it appears and inserting ``benefits''.
(10) Section 15 of the Food and Nutrition Act of
2008 (7 U.S.C. 2024) is amended--
(A) in subsection (a), by striking
``coupons'' and inserting ``benefits'';
(B) in subsection (b)(1)--
(i) by striking ``coupons,
authorization cards, or access
devices'' each place it appears and
inserting ``benefits'';
(ii) by striking ``coupons or
authorization cards'' and inserting
``benefits''; and
(iii) by striking ``access device''
each place it appears and inserting
``benefit'';
(C) in subsection (c), by striking
``coupons'' each place it appears and inserting
``benefits'';
(D) in subsection (d), by striking
``Coupons'' and inserting ``Benefits'';
(E) by striking subsections (e) and (f);
(F) by redesignating subsections (g) and
(h) as subsections (e) and (f), respectively;
and
(G) in subsection (e) (as so redesignated),
by striking ``coupon, authorization cards or
access devices'' and inserting ``benefits''.
(11) Section 16(a) of the Food and Nutrition Act of
2008 (7 U.S.C. 2025(a)) is amended by striking
``coupons'' each place it appears and inserting
``benefits''.
(12) Section 17 of the Food and Nutrition Act of
2008 (7 U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking
``coupon'' and inserting ``benefit'';
(B) in subsection (b)(1)--
(i) in subparagraph (B)--
(I) in clause (iv)--
(aa) in subclause
(I), inserting ``or
otherwise providing
benefits in a form not
restricted to the
purchase of food''
after ``of cash'';
(bb) in subclause
(III)(aa), by striking
``section 3(i)'' and
inserting ``section
3(n)''; and
(cc) in subclause
(VII), by striking
``section 7(j)'' and
inserting ``section
7(i)''; and
(II) in clause (v)--
(aa) by striking
``countersigned food
coupons or similar'';
and
(bb) by striking
``food coupons'' and
inserting ``EBT
cards''; and
(ii) in subparagraph (C)(i)(I), by
striking ``coupons'' and inserting
``EBT cards'';
(C) in subsection (f), by striking
``section 7(g)(2)'' and inserting ``section
7(f)(2)''; and
(D) in subsection (j), by striking
``coupon'' and inserting ``benefit''.
(13) Section 19(a)(2)(A)(ii) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is
amended by striking ``section 3(o)(4)'' and inserting
``section 3(u)(4)''.
(14) Section 21 of the Food and Nutrition Act of
2008 (7 U.S.C. 2030) is repealed.
(15) Section 22 of the Food and Nutrition Act of
2008 (7 U.S.C. 2031) is amended--
(A) by striking ``food coupons'' each place
it appears and inserting ``benefits'';
(B) by striking ``coupons'' each place it
appears and inserting ``benefits''; and
(C) in subsection (g)(1)(A), by striking
``coupon'' and inserting ``benefits''.
(16) Section 26(f)(3) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2035(f)(3)) is amended--
(A) in subparagraph (A), by striking
``subsections (a) through (g)'' and inserting
``subsections (a) through (f)''; and
(B) in subparagraph (E), by striking
``(16), (18), (20), (24), and (25)'' and
inserting ``(15), (17), (18), (22), and (23)''.
(c) Conforming Cross-References.--
(1) In general.--
(A) Use of terms.--Each provision of law
described in subparagraph (B) is amended (as
applicable)--
(i) by striking ``coupons'' each
place it appears and inserting
``benefits'';
(ii) by striking ``coupon'' each
place it appears and inserting
``benefit'';
(iii) by striking ``food coupons''
each place it appears and inserting
``benefits'';
(iv) in each section heading, by
striking ``food coupons'' each place it
appears and inserting ``benefits'';
(v) by striking ``food stamp
coupon'' each place it appears and
inserting ``benefit''; and
(vi) by striking ``food stamps''
each place it appears and inserting
``benefits''.
(B) Provisions of law.--The provisions of
law referred to in subparagraph (A) are the
following:
(i) Section 2 of Public Law 103-205
(7 U.S.C. 2012 note; 107 Stat. 2418).
(ii) Section 1956(c)(7)(D) of title
18, United States Code.
(iii) Titles II through XIX of the
Social Security Act (42 U.S.C. 401 et
seq.).
(iv) Section 401(b)(3) of the
Social Security Amendments of 1972 (42
U.S.C. 1382e note; Public Law 92-603).
(v) The Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.).
(vi) Section 802(d)(2)(A)(i)(II) of
the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)).
(2) Definition references.--
(A) Section 2 of Public Law 103-205 (7
U.S.C. 2012 note; 107 Stat. 2418) is amended by
striking ``section 3(k)(1)'' and inserting
``section 3(p)(1)''.
(B) Section 205 of the Food Stamp Program
Improvements Act of 1994 (7 U.S.C. 2012 note;
Public Law 103-225) is amended by striking
``section 3(k) of such Act (as amended by
section 201)'' and inserting ``section 3(p) of
that Act''.
(C) Section 115 of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 (21 U.S.C. 862a) is
amended--
(i) by striking ``section 3(h)''
each place it appears and inserting
``section 3(l)''; and
(ii) in subsection (e)(2), by
striking ``section 3(m)'' and inserting
``section 3(s)''.
(D) Section 402(a) of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1612(a))
is amended--
(i) in paragraph (2)(F)(ii), by
striking ``section 3(r)'' and inserting
``section 3(j)''; and
(ii) in paragraph (3)(B), by
striking ``section 3(h)'' and inserting
``section 3(l)''.
(E) Section 3803(c)(2)(C)(vii) of title 31,
United States Code, is amended by striking
``section 3(h)'' and inserting ``section
3(l)''.
(F) Section 303(d)(4) of the Social
Security Act (42 U.S.C. 503(d)(4)) is amended
by striking ``section 3(n)(1)'' and inserting
``section 3(t)(1)''.
(G) Section 404 of the Social Security Act
(42 U.S.C. 604) is amended by striking
``section 3(h)'' each place it appears and
inserting ``section 3(l)''.
(H) Section 531 of the Social Security Act
(42 U.S.C. 654) is amended by striking
``section 3(h)'' each place it appears and
inserting ``section 3(l)''.
(I) Section 802(d)(2)(A)(i)(II) of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8011(d)(2)(A)(i)(II)) is amended
by striking ``(as defined in section 3(e) of
such Act)''.
(d) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to a ``coupon'',
``authorization card'', or other access device provided under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
shall be considered to be a reference to a ``benefit'' provided
under that Act.
SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by striking the section enumerator and heading
and subsection (a) and inserting the following:
``SEC. 11. ADMINISTRATION.
``(a) State Responsibility.--
``(1) In general.--The State agency of each
participating State shall have responsibility for
certifying applicant households and issuing EBT cards.
``(2) Local administration.--The responsibility of
the agency of the State government shall not be
affected by whether the program is operated on a State-
administered or county-administered basis, as provided
under section 3(t)(1).
``(3) Records.--
``(A) In general.--Each State agency shall
keep such records as may be necessary to
determine whether the program is being
conducted in compliance with this Act
(including regulations issued under this Act).
``(B) Inspection and audit.--Records
described in subparagraph (A) shall--
``(i) be available for inspection
and audit at any reasonable time;
``(ii) subject to subsection
(e)(8), be available for review in any
action filed by a household to enforce
any provision of this Act (including
regulations issued under this Act); and
``(iii) be preserved for such
period of not less than 3 years as may
be specified in regulations.
``(4) Review of major changes in program design.--
``(A) In general.--The Secretary shall
develop standards for identifying major changes
in the operations of a State agency,
including--
``(i) large or substantially-
increased numbers of low-income
households that do not live in
reasonable proximity to an office
performing the major functions
described in subsection (e);
``(ii) substantial increases in
reliance on automated systems for the
performance of responsibilities
previously performed by personnel
described in subsection (e)(6)(B);
``(iii) changes that potentially
increase the difficulty of reporting
information under subsection (e) or
section 6(c); and
``(iv) changes that may
disproportionately increase the burdens
on any of the types of households
described in subsection (e)(2)(A).
``(B) Notification.--If a State agency
implements a major change in operations, the
State agency shall--
``(i) notify the Secretary; and
``(ii) collect such information as
the Secretary shall require to identify
and correct any adverse effects on
program integrity or access, including
access by any of the types of
households described in subsection
(e)(2)(A).''.
SEC. 4117. CIVIL RIGHTS COMPLIANCE.
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by striking subsection (c) and inserting the
following:
``(c) Civil Rights Compliance.--
``(1) In general.--In the certification of
applicant households for the supplemental nutrition
assistance program, there shall be no discrimination by
reason of race, sex, religious creed, national origin,
or political affiliation.
``(2) Relation to other laws.--The administration
of the program by a State agency shall be consistent
with the rights of households under the following laws
(including implementing regulations):
``(A) The Age Discrimination Act of 1975
(42 U.S.C. 6101 et seq.).
``(B) Section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 794).
``(C) The Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.).
``(D) Title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.).''.
SEC. 4118. CODIFICATION OF ACCESS RULES.
Section 11(e)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(e)(1)) is amended--
(1) by striking ``shall (A) at'' and inserting
``shall--
``(A) at''; and
(2) by striking ``and (B) use'' and inserting ``and
``(B) comply with regulations of the
Secretary requiring the use of''.
SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.
Section 11(e)(2)(C) of the Food and Nutrition Act of 2008
(7 U.S.C. 2020(e)(2)(C)) is amended--
(1) by striking ``(C) Nothing in this Act'' and
inserting the following:
``(C) Electronic and automated systems.--
``(i) In general.--Nothing in this
Act''; and
(2) by adding at the end the following:
``(ii) State option for telephonic
signature.--A State agency may
establish a system by which an
applicant household may sign an
application through a recorded verbal
assent over the telephone.
``(iii) Requirements.--A system
established under clause (ii) shall--
``(I) record for future
reference the verbal assent of
the household member and the
information to which assent was
given;
``(II) include effective
safeguards against
impersonation, identity theft,
and invasions of privacy;
``(III) not deny or
interfere with the right of the
household to apply in writing;
``(IV) promptly provide to
the household member a written
copy of the completed
application, with instructions
for a simple procedure for
correcting any errors or
omissions;
``(V) comply with paragraph
(1)(B);
``(VI) satisfy all
requirements for a signature on
an application under this Act
and other laws applicable to
the supplemental nutrition
assistance program, with the
date on which the household
member provides verbal assent
considered as the date of
application for all purposes;
and
``(VII) comply with such
other standards as the
Secretary may establish.''.
SEC. 4120. PRIVACY PROTECTIONS.
Section 11(e)(8) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(e)(8)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``limit'' and inserting
``prohibit''; and
(B) by striking ``to persons'' and all that
follows through ``State programs'';
(2) by redesignating subparagraphs (A) through (E)
as subparagraphs (B) through (F), respectively;
(3) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) the safeguards shall permit--
``(i) the disclosure of such
information to persons directly
connected with the administration or
enforcement of the provisions of this
Act, regulations issued pursuant to
this Act, Federal assistance programs,
or federally-assisted State programs;
and
``(ii) the subsequent use of the
information by persons described in
clause (i) only for such administration
or enforcement;''; and
(4) in subparagraph (F) (as so redesignated) by
inserting ``or subsection (u)'' before the semicolon at
the end.
SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.
Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C.
2025) is amended by striking subsection (g) and inserting the
following:
``(g) Cost Sharing for Computerization.--
``(1) In general.--Except as provided in paragraphs
(2) and (3), the Secretary is authorized to pay to each
State agency the amount provided under subsection
(a)(6) for the costs incurred by the State agency in
the planning, design, development, or installation of 1
or more automatic data processing and information
retrieval systems that the Secretary determines--
``(A) would assist in meeting the
requirements of this Act;
``(B) meet such conditions as the Secretary
prescribes;
``(C) are likely to provide more efficient
and effective administration of the
supplemental nutrition assistance program;
``(D) would be compatible with other
systems used in the administration of State
programs, including the program funded under
part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
``(E) would be tested adequately before and
after implementation, including through pilot
projects in limited areas for major systems
changes as determined under rules promulgated
by the Secretary, data from which shall be
thoroughly evaluated before the Secretary
approves the system to be implemented more
broadly; and
``(F) would be operated in accordance with
an adequate plan for--
``(i) continuous updating to
reflect changed policy and
circumstances; and
``(ii) testing the effect of the
system on access for eligible
households and on payment accuracy.
``(2) Limitation.--The Secretary shall not make
payments to a State agency under paragraph (1) to the
extent that the State agency--
``(A) is reimbursed for the costs under any
other Federal program; or
``(B) uses the systems for purposes not
connected with the supplemental nutrition
assistance program.''.
SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.
Section 16(h)(1)(A) of the Food and Nutrition Act of 2008
(7 U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by
striking ``to remain available until expended'' and inserting
``to remain available for 15 months''.
PART IV--PROGRAM INTEGRITY
SEC. 4131. ELIGIBILITY DISQUALIFICATION.
Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C.
2015) is amended by adding at the end the following:
``(p) Disqualification for Obtaining Cash by Destroying
Food and Collecting Deposits.--Subject to any requirements
established by the Secretary, any person who has been found by
a State or Federal court or administrative agency in a hearing
under subsection (b) to have intentionally obtained cash by
purchasing products with supplemental nutrition assistance
program benefits that have containers that require return
deposits, discarding the product, and returning the container
for the deposit amount shall be ineligible for benefits under
this Act for such period of time as the Secretary shall
prescribe by regulation.
``(q) Disqualification for Sale of Food Purchased With
Supplemental Nutrition Assistance Program Benefits.--Subject to
any requirements established by the Secretary, any person who
has been found by a State or Federal court or administrative
agency in a hearing under subsection (b) to have intentionally
sold any food that was purchased using supplemental nutrition
assistance program benefits shall be ineligible for benefits
under this Act for such period of time as the Secretary shall
prescribe by regulation.''.
SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES
AND WHOLESALE FOOD CONCERNS.
Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C.
2021) is amended--
(1) by striking the section designation and heading
and all that follows through the end of subsection (a)
and inserting the following:
``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES
AND WHOLESALE FOOD CONCERNS.
``(a) Disqualification.--
``(1) In general.--An approved retail food store or
wholesale food concern that violates a provision of
this Act or a regulation under this Act may be--
``(A) disqualified for a specified period
of time from further participation in the
supplemental nutrition assistance program;
``(B) assessed a civil penalty of up to
$100,000 for each violation; or
``(C) both.
``(2) Regulations.--Regulations promulgated under
this Act shall provide criteria for the finding of a
violation of, the suspension or disqualification of and
the assessment of a civil penalty against a retail food
store or wholesale food concern on the basis of
evidence that may include facts established through on-
site investigations, inconsistent redemption data, or
evidence obtained through a transaction report under an
electronic benefit transfer system.'';
(2) in subsection (b)--
(A) by striking ``(b) Disqualification''
and inserting the following:
``(b) Period of Disqualification.--Subject to subsection
(c), a disqualification'';
(B) in paragraph (1), by striking ``of no
less than six months nor more than five years''
and inserting ``not to exceed 5 years'';
(C) in paragraph (2), by striking ``of no
less than twelve months nor more than ten
years'' and inserting ``not to exceed 10
years'';
(D) in paragraph (3)(B)--
(i) by inserting ``or a finding of
the unauthorized redemption, use,
transfer, acquisition, alteration, or
possession of EBT cards'' after
``concern'' the first place it appears;
and
(ii) by striking ``civil money
penalties'' and inserting ``civil
penalties''; and
(E) by striking ``civil money penalty''
each place it appears and inserting ``civil
penalty'';
(3) in subsection (c)--
(A) by striking ``(c) The action'' and
inserting the following:
``(c) Civil Penalty and Review of Disqualification and
Penalty Determinations.--
``(1) Civil penalty.--In addition to a
disqualification under this section, the Secretary may
assess a civil penalty in an amount not to exceed
$100,000 for each violation.
``(2) Review.--The action''; and
(B) in paragraph (2) (as designated by
subparagraph (A)), by striking ``civil money
penalty'' and inserting ``civil penalty'';
(4) in subsection (d)--
(A) by striking ``(d)'' and all that
follows through ``. The Secretary shall'' and
inserting the following:
``(d) Conditions of Authorization.--
``(1) In general.--As a condition of authorization
to accept and redeem benefits, the Secretary may
require a retail food store or wholesale food concern
that, pursuant to subsection (a), has been disqualified
for more than 180 days, or has been subjected to a
civil penalty in lieu of a disqualification period of
more than 180 days, to furnish a collateral bond or
irrevocable letter of credit for a period of not more
than 5 years to cover the value of benefits that the
store or concern may in the future accept and redeem in
violation of this Act.
``(2) Collateral.--The Secretary also may require a
retail food store or wholesale food concern that has
been sanctioned for a violation and incurs a subsequent
sanction regardless of the length of the
disqualification period to submit a collateral bond or
irrevocable letter of credit.
``(3) Bond requirements.--The Secretary shall'';
(B) by striking ``If the Secretary finds''
and inserting the following:
``(4) Forfeiture.--If the Secretary finds''; and
(C) by striking ``Such store or concern''
and inserting the following:
``(5) Hearing.--A store or concern described in
paragraph (4)'';
(5) in subsection (e), by striking ``civil money
penalty'' each place it appears and inserting ``civil
penalty''; and
(6) by adding at the end the following:
``(h) Flagrant Violations.--
``(1) In general.--The Secretary, in consultation
with the Inspector General of the Department of
Agriculture, shall establish procedures under which the
processing of program benefit redemptions for a retail
food store or wholesale food concern may be immediately
suspended pending administrative action to disqualify
the retail food store or wholesale food concern.
``(2) Requirements.--Under the procedures described
in paragraph (1), if the Secretary, in consultation
with the Inspector General, determines that a retail
food store or wholesale food concern is engaged in
flagrant violations of this Act (including regulations
promulgated under this Act), unsettled program benefits
that have been redeemed by the retail food store or
wholesale food concern--
``(A) may be suspended; and
``(B)(i) if the program disqualification is
upheld, may be subject to forfeiture pursuant
to section 15(g); or
``(ii) if the program disqualification is
not upheld, shall be released to the retail
food store or wholesale food concern.
``(3) No liability for interest.--The Secretary
shall not be liable for the value of any interest on
funds suspended under this subsection.''.
SEC. 4133. MAJOR SYSTEMS FAILURES.
Section 13(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2022(b)) is amended by adding at the end the following:
``(5) Overissuances caused by systemic state
errors.--
``(A) In general.--If the Secretary
determines that a State agency overissued
benefits to a substantial number of households
in a fiscal year as a result of a major
systemic error by the State agency, as defined
by the Secretary, the Secretary may prohibit
the State agency from collecting these
overissuances from some or all households.
``(B) Procedures.--
``(i) Information reporting by
states.--Every State agency shall
provide to the Secretary all
information requested by the Secretary
concerning the issuance of benefits to
households by the State agency in the
applicable fiscal year.
``(ii) Final determination.--After
reviewing relevant information provided
by a State agency, the Secretary shall
make a final determination--
``(I) whether the State
agency overissued benefits to a
substantial number of
households as a result of a
systemic error in the
applicable fiscal year; and
``(II) as to the amount of
the overissuance in the
applicable fiscal year for
which the State agency is
liable.
``(iii) Establishing a claim.--Upon
determining under clause (ii) that a
State agency has overissued benefits to
households due to a major systemic
error determined under subparagraph
(A), the Secretary shall establish a
claim against the State agency equal to
the value of the overissuance caused by
the systemic error.
``(iv) Administrative and judicial
review.--Administrative and judicial
review, as provided in section 14,
shall apply to the final determinations
by the Secretary under clause (ii).
``(v) Remission to the secretary.--
``(I) Determination not
appealed.--If the determination
of the Secretary under clause
(ii) is not appealed, the State
agency shall, as soon as
practicable, remit to the
Secretary the dollar amount
specified in the claim under
clause (iii).
``(II) Determination
appealed.--If the determination
of the Secretary under clause
(ii) is appealed, upon
completion of administrative
and judicial review under
clause (iv), and a finding of
liability on the part of the
State, the appealing State
agency shall, as soon as
practicable, remit to the
Secretary a dollar amount
subject to the finding made in
the administrative and judicial
review.
``(vi) Alternative method of
collection.--
``(I) In general.--If a
State agency fails to make a
payment under clause (v) within
a reasonable period of time, as
determined by the Secretary,
the Secretary may reduce any
amount due to the State agency
under any other provision of
this Act by the amount due.
``(II) Accrual of
interest.--During the period of
time determined by the
Secretary to be reasonable
under subclause (I), interest
in the amount owed shall not
accrue.
``(vii) Limitation.--Any liability
amount established under section
16(c)(1)(C) shall be reduced by the
amount of the claim established under
this subparagraph.''.
PART V--MISCELLANEOUS
SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN
THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.
Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
2026) is amended by adding at the end the following:
``(k) Pilot Projects to Evaluate Health and Nutrition
Promotion in the Supplemental Nutrition Assistance Program.--
``(1) In general.--The Secretary shall carry out,
under such terms and conditions as the Secretary
considers to be appropriate, pilot projects to develop
and test methods--
``(A) of using the supplemental nutrition
assistance program to improve the dietary and
health status of households eligible for or
participating in the supplemental nutrition
assistance program; and
``(B) to reduce overweight, obesity
(including childhood obesity), and associated
co-morbidities in the United States.
``(2) Grants.--
``(A) In general.--In carrying out this
subsection, the Secretary may enter into
competitively awarded contracts or cooperative
agreements with, or provide grants to, public
or private organizations or agencies (as
defined by the Secretary), for use in
accordance with projects that meet the strategy
goals of this subsection.
``(B) Application.--To be eligible to
receive a contract, cooperative agreement, or
grant under this paragraph, an organization
shall submit to the Secretary an application at
such time, in such manner, and containing such
information as the Secretary may require.
``(C) Selection criteria.--Pilot projects
shall be evaluated against publicly
disseminated criteria that may include--
``(i) identification of a low-
income target audience that corresponds
to individuals living in households
with incomes at or below 185 percent of
the poverty level;
``(ii) incorporation of a
scientifically based strategy that is
designed to improve diet quality
through more healthful food purchases,
preparation, or consumption;
``(iii) a commitment to a pilot
project that allows for a rigorous
outcome evaluation, including data
collection;
``(iv) strategies to improve the
nutritional value of food served during
school hours and during after-school
hours;
``(v) innovative ways to provide
significant improvement to the health
and wellness of children;
``(vi) other criteria, as
determined by the Secretary.
``(D) Use of funds.--Funds provided under
this paragraph shall not be used for any
project that limits the use of benefits under
this Act.
``(3) Projects.--Pilot projects carried out under
paragraph (1) may include projects to determine whether
healthier food purchases by and healthier diets among
households participating in the supplemental nutrition
assistance program result from projects that--
``(A) increase the supplemental nutrition
assistance purchasing power of the
participating households by providing increased
supplemental nutrition assistance program
benefit allotments to the participating
households;
``(B) increase access to farmers markets by
participating households through the electronic
redemption of supplemental nutrition assistance
program benefits at farmers' markets;
``(C) provide incentives to authorized
supplemental nutrition assistance program
retailers to increase the availability of
healthy foods to participating households;
``(D) subject authorized supplemental
nutrition assistance program retailers to
stricter retailer requirements with respect to
carrying and stocking healthful foods;
``(E) provide incentives at the point of
purchase to encourage households participating
in the supplemental nutrition assistance
program to purchase fruits, vegetables, or
other healthful foods; or
``(F) provide to participating households
integrated communication and education
programs, including the provision of funding
for a portion of a school-based nutrition
coordinator to implement a broad nutrition
action plan and parent nutrition education
programs in elementary schools, separately or
in combination with pilot projects carried out
under subparagraphs (A) through (E).
``(4) Evaluation and reporting.--
``(A) Evaluation.--
``(i) Independent evaluation.--
``(I) In general.--The
Secretary shall provide for an
independent evaluation of
projects selected under this
subsection that measures the
impact of the pilot program on
health and nutrition as
described in paragraph (1).
``(II) Requirement.--The
independent evaluation under
subclause (I) shall use
rigorous methodologies,
particularly random assignment
or other methods that are
capable of producing
scientifically valid
information regarding which
activities are effective.
``(ii) Costs.--The Secretary may
use funds provided to carry out this
section to pay costs associated with
monitoring and evaluating each pilot
project.
``(B) Reporting.--Not later than 90 days
after the last day of fiscal year 2009 and each
fiscal year thereafter until the completion of
the last evaluation under subparagraph (A), 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--
``(i) the status of each pilot
project;
``(ii) the results of the
evaluation completed during the
previous fiscal year; and
``(iii) to the maximum extent
practicable--
``(I) the impact of the
pilot project on appropriate
health, nutrition, and
associated behavioral outcomes
among households participating
in the pilot project;
``(II) baseline information
relevant to the stated goals
and desired outcomes of the
pilot project; and
``(III) equivalent
information about similar or
identical measures among
control or comparison groups
that did not participate in the
pilot project.
``(C) Public dissemination.--In addition to
the reporting requirements under subparagraph
(B), evaluation results shall be shared broadly
to inform policy makers, service providers,
other partners, and the public in order to
promote wide use of successful strategies.
``(5) Funding.--
``(A) Authorization of appropriations.--
There are authorized to be appropriated such
sums as are necessary to carry out this section
for each of fiscal years 2008 through 2012.
``(B) Mandatory funding.--Out of any funds
made available under section 18, on October 1,
2008, the Secretary shall make available
$20,000,000 to carry out a project described in
paragraph (3)(E), to remain available until
expended.''.
SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL NUTRITION
ASSISTANCE FOR PUERTO RICO.
(a) In General.--The Secretary shall carry out a study of
the feasibility and effects of including the Commonwealth of
Puerto Rico in the definition of the term ``State'' under
section 3 of the Food and Nutrition Act of 2008 (7 U.S.C.
2012), in lieu of providing block grants under section 19 of
that Act (7 U.S.C. 2028).
(b) Inclusions.--The study shall include--
(1) an assessment of the administrative, financial
management, and other changes that would be necessary
for the Commonwealth to establish a comparable
supplemental nutrition assistance program, including
compliance with appropriate program rules under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.),
such as--
(A) benefit levels under section 3(u) of
that Act (7 U.S.C. 2012(u));
(B) income eligibility standards under
sections 5(c) and 6 of that Act (7 U.S.C.
2014(c), 2015); and
(C) deduction levels under section 5(e) of
that Act (7 U.S.C. 2014(e));
(2) an estimate of the impact on Federal and
Commonwealth benefit and administrative costs;
(3) an assessment of the impact of the program on
low-income Puerto Ricans, as compared to the program
under section 19 of that Act (7 U.S.C. 2028); and
(4) such other matters as the Secretary considers
to be appropriate.
(c) Report.--Not later than 2 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 that describes the results of the study
conducted under this section.
(d) Funding.--
(1) In general.--On October 1, 2008, out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the
Secretary to carry out this section $1,000,000, to
remain available until expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to
carry out this section the funds transferred under
paragraph (1), without further appropriation.
Subtitle B--Food Distribution Programs
PART I--EMERGENCY FOOD ASSISTANCE PROGRAM
SEC. 4201. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by--
(1) by striking ``(a) Purchase of Commodities'' and
all that follows through ``$140,000,000 of'' and
inserting the following:
``(a) Purchase of Commodities.--
``(1) In general.--From amounts made available to
carry out this Act, for each of the fiscal years 2008
through 2012, the Secretary shall purchase a dollar
amount described in paragraph (2) of''; and
(2) by adding at the end the following:
``(2) Amounts.--The Secretary shall use to carry
out paragraph (1)--
``(A) for fiscal year 2008, $190,000,000;
``(B) for fiscal year 2009, $250,000,000;
and
``(C) for each of fiscal years 2010 through
2012, the dollar amount of commodities
specified in subparagraph (B) adjusted by the
percentage by which the thrifty food plan has
been adjusted under section 3(u)(4) between
June 30, 2008, and June 30 of the immediately
preceding fiscal year.''.
(b) State Plans.--Section 202A of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking
subsection (a) and inserting the following:
``(a) Plans.--
``(1) In general.--To receive commodities under
this Act, a State shall submit to the Secretary an
operation and administration plan for the provision of
benefits under this Act.
``(2) Updates.--A State shall submit to the
Secretary for approval any amendment to a plan
submitted under paragraph (1) in any case in which the
State proposes to make a change to the operation or
administration of a program described in the plan.''.
(c) Authorization and Appropriations.--Section 204(a)(1) of
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended in the first sentence--
(1) by striking ``$60,000,000'' and inserting
``$100,000,000''; and
(2) by inserting ``and donated wild game'' before
the period at the end.
SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.
The Emergency Food Assistance Act of 1983 is amended by
inserting after section 208 (7 U.S.C. 7511) the following:
``SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.
``(a) Definition of Eligible Entity.--In this section, the
term `eligible entity' means an emergency feeding organization.
``(b) Program Authorized.--
``(1) In general.--The Secretary shall use funds
made available under subsection (d) to make grants to
eligible entities to pay the costs of an activity
described in subsection (c).
``(2) Rural preference.--The Secretary shall use
not less than 50 percent of the funds described in
paragraph (1) for a fiscal year to make grants to
eligible entities that serve predominantly rural
communities for the purposes of--
``(A) expanding the capacity and
infrastructure of food banks, State-wide food
bank associations, and food bank collaboratives
that operate in rural areas; and
``(B) improving the capacity of the food
banks to procure, receive, store, distribute,
track, and deliver time-sensitive or perishable
food products.
``(c) Use of Funds.--An eligible entity shall use a grant
received under this section for any fiscal year to carry out
activities of the eligible entity, including--
``(1) the development and maintenance of a
computerized system for the tracking of time-sensitive
food products;
``(2) capital, infrastructure, and operating costs
associated with the collection, storage, distribution,
and transportation of time-sensitive and perishable
food products;
``(3) improving the security and diversity of the
emergency food distribution and recovery systems of the
United States through the support of small or mid-size
farms and ranches, fisheries, and aquaculture, and
donations from local food producers and manufacturers
to persons in need;
``(4) providing recovered foods to food banks and
similar nonprofit emergency food providers to reduce
hunger in the United States;
``(5) improving the identification of--
``(A) potential providers of donated foods;
``(B) potential nonprofit emergency food
providers; and
``(C) persons in need of emergency food
assistance in rural areas; and
``(6) constructing, expanding, or repairing a
facility or equipment to support hunger relief agencies
in the community.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000 for
each of fiscal years 2008 through 2012.''.
PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS
SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.
(a) In General.--Section 4 of the Food and Nutrition Act of
2008 (7 U.S.C. 2013) is amended by striking subsection (b) and
inserting the following:
``(b) Food Distribution Program on Indian Reservations.--
``(1) In general.--Distribution of commodities,
with or without the supplemental nutrition assistance
program, shall be made whenever a request for
concurrent or separate food program operations,
respectively, is made by a tribal organization.
``(2) Administration.--
``(A) In general.--Subject to subparagraphs
(B) and (C), in the event of distribution on
all or part of an Indian reservation, the
appropriate agency of the State government in
the area involved shall be responsible for the
distribution.
``(B) Administration by tribal
organization.--If the Secretary determines that
a tribal organization is capable of effectively
and efficiently administering a distribution
described in paragraph (1), then the tribal
organization shall administer the distribution.
``(C) Prohibition.--The Secretary shall not
approve any plan for a distribution described
in paragraph (1) that permits any household on
any Indian reservation to participate
simultaneously in the supplemental nutrition
assistance program and the program established
under this subsection.
``(3) Disqualified participants.--An individual who
is disqualified from participation in the food
distribution program on Indian reservations under this
subsection is not eligible to participate in the
supplemental nutrition assistance program under this
Act for a period of time to be determined by the
Secretary.
``(4) Administrative costs.--The Secretary is
authorized to pay such amounts for administrative costs
and distribution costs on Indian reservations as the
Secretary finds necessary for effective administration
of such distribution by a State agency or tribal
organization.
``(5) Bison meat.--Subject to the availability of
appropriations to carry out this paragraph, the
Secretary may purchase bison meat for recipients of
food distributed under this subsection, including bison
meat from--
``(A) Native American bison producers; and
``(B) producer-owned cooperatives of bison
ranchers.
``(6) Traditional and locally-grown food fund.--
``(A) In general.--Subject to the
availability of appropriations, the Secretary
shall establish a fund for use in purchasing
traditional and locally-grown foods for
recipients of food distributed under this
subsection.
``(B) Native american producers.--Where
practicable, of the food provided under
subparagraph (A), at least 50 percent shall be
produced by Native American farmers, ranchers,
and producers.
``(C) Definition of traditional and locally
grown.--The Secretary shall determine the
definition of the term `traditional and
locally-grown' with respect to food distributed
under this paragraph.
``(D) Survey.--In carrying out this
paragraph, the Secretary shall--
``(i) survey participants of the
food distribution program on Indian
reservations established under this
subsection to determine which
traditional foods are most desired by
those participants; and
``(ii) purchase or offer to
purchase those traditional foods that
may be procured cost-effectively.
``(E) Report.--Not later than 1 year after
the date of enactment of this paragraph, 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 this paragraph during the
preceding calendar year.
``(F) 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 2008
through 2012.''.
(b) FDPIR Food Package.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes--
(1) how the Secretary derives the process for
determining the food package under the food
distribution program on Indian reservations established
under section 4(b) of the Food and Nutrition Act of
2008 (7 U.S.C. 2013(b)) (referred to in this subsection
as the ``food package'');
(2) the extent to which the food package--
(A) addresses the nutritional needs of low-
income Native Americans compared to the
supplemental nutrition assistance program,
particularly for very low-income households;
(B) conforms (or fails to conform) to the
2005 Dietary Guidelines for Americans published
under section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7
U.S.C. 5341);
(C) addresses (or fails to address) the
nutritional and health challenges that are
specific to Native Americans; and
(D) is limited by distribution costs or
challenges in infrastructure; and
(3)(A) any plans of the Secretary to revise and
update the food package to conform with the most recent
Dietary Guidelines for Americans, including any costs
associated with the planned changes; or
(B) if the Secretary does not plan changes to the
food package, the rationale of the Secretary for
retaining the food package.
PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM
SEC. 4221. 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 by
striking subsection (g) and inserting the following:
``(g) Prohibition.--Notwithstanding any other provision of
law (including regulations), the Secretary may not require a
State or local agency to prioritize assistance to a particular
group of individuals that are--
``(1) low-income persons aged 60 and older; or
``(2) women, infants, and children.''.
PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM
SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
Section 4402 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3007) is amended--
(1) in subsection (b)(1), by inserting ``honey,''
after ``vegetables,'';
(2) by striking subsection (c) and inserting the
following:
``(c) Exclusion of Benefits in Determining Eligibility for
Other Programs.--The value of any benefit provided to any
eligible seniors farmers' market nutrition program recipient
under this section shall not be considered to be income or
resources for any purposes under any Federal, State, or local
law.''; and
(3) by adding at the end the following:
``(d) Prohibition on Collection of Sales Tax.--Each State
shall ensure that no State or local tax is collected within the
State on a purchase of food with a benefit distributed under
the seniors farmers' market nutrition program.
``(e) Regulations.--The Secretary may promulgate such
regulations as the Secretary considers to be necessary to carry
out the seniors farmers' market nutrition program.''.
Subtitle C--Child Nutrition and Related Programs
SEC. 4301. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM
BENEFITS FOR FREE SCHOOL MEALS.
(a) In General.--Not later than December 31, 2008 and June
30 of each year thereafter, the Secretary shall submit to the
Committees on Agriculture and Education and Labor of the House
of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that assesses the
effectiveness of each State in enrolling school-aged children
in households receiving program benefits under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (referred to in
this section as ``program benefits'') for free school meals
using direct certification.
(b) Specific Measures.--The assessment of the Secretary of
the performance of each State shall include--
(1) an estimate of the number of school-aged
children, by State, who were members of a household
receiving program benefits at any time in July, August,
or September of the prior year;
(2) an estimate of the number of school-aged
children, by State, who were directly certified as
eligible for free lunches under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.),
based on receipt of program benefits, as of October 1
of the prior year; and
(3) an estimate of the number of school-aged
children, by State, who were members of a household
receiving program benefits at any time in July, August,
or September of the prior year who were not candidates
for direct certification because on October 1 of the
prior year the children attended a school operating
under the special assistance provisions of section
11(a)(1) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1759a(a)(1)) that is not operating
in a base year.
(c) Performance Innovations.--The report of the Secretary
shall describe best practices from States with the best
performance or the most improved performance from the previous
year.
SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.
Section 9(j) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:
``(j) Purchases of Locally Produced Foods.--The Secretary
shall--
``(1) encourage institutions receiving funds under
this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) to purchase unprocessed agricultural
products, both locally grown and locally raised, to the
maximum extent practicable and appropriate;
``(2) advise institutions participating in a
program described in paragraph (1) of the policy
described in that paragraph and paragraph (3) and post
information concerning the policy on the website
maintained by the Secretary; and
``(3) allow institutions receiving funds under this
Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.), including the Department of Defense Fresh
Fruit and Vegetable Program, to use a geographic
preference for the procurement of unprocessed
agricultural products, both locally grown and locally
raised.''.
SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.
Section 18(h) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769(h)) is amended--
(1) in paragraph (1)(C), by inserting ``promotes
healthy food education in the school curriculum and''
before ``incorporates'';
(2) by redesignating paragraph (2) as paragraph
(4); and
(3) by inserting after paragraph (1) the following:
``(2) Administration.--In providing grants under
paragraph (1), the Secretary shall give priority to
projects that can be replicated in schools.
``(3) Pilot program for high-poverty schools.--
``(A) Definitions.--In this paragraph:
``(i) Eligible program.--The term
`eligible program' means--
``(I) a school-based
program with hands-on vegetable
gardening and nutrition
education that is incorporated
into the curriculum for 1 or
more grades at 2 or more
eligible schools; or
``(II) a community-based
summer program with hands-on
vegetable gardening and
nutrition education that is
part of, or coordinated with, a
summer enrichment program at 2
or more eligible schools.
``(ii) Eligible school.--The term
`eligible school' means a public
school, at least 50 percent of the
students of which are eligible for free
or reduced price meals under this Act.
``(B) Establishment.--The Secretary shall
carry out a pilot program under which the
Secretary shall provide to nonprofit
organizations or public entities in not more
than 5 States grants to develop and run,
through eligible programs, community gardens at
eligible schools in the States that would--
``(i) be planted, cared for, and
harvested by students at the eligible
schools; and
``(ii) teach the students
participating in the community gardens
about agriculture production practices
and diet.
``(C) Priority states.--Of the States in
which grantees under this paragraph are
located--
``(i) at least 1 State shall be
among the 15 largest States, as
determined by the Secretary;
``(ii) at least 1 State shall be
among the 16th to 30th largest States,
as determined by the Secretary; and
``(iii) at least 1 State shall be a
State that is not described in clause
(i) or (ii).
``(D) Use of produce.--Produce from a
community garden provided a grant under this
paragraph may be--
``(i) used to supplement food
provided at the eligible school;
``(ii) distributed to students to
bring home to the families of the
students; or
``(iii) donated to a local food
bank or senior center nutrition
program.
``(E) No cost-sharing requirement.--A
nonprofit organization or public entity that
receives a grant under this paragraph shall not
be required to share the cost of carrying out
the activities assisted under this paragraph.
``(F) Evaluation.--A nonprofit organization
or public entity that receives a grant under
this paragraph shall be required to cooperate
in an evaluation in accordance with paragraph
(1)(H).''.
SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.
(a) Program.--
(1) In general.--The Richard B. Russell National
School Lunch Act is amended by inserting after section
18 (42 U.S.C. 1769) the following:
``SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.
``(a) In General.--For the school year beginning July 2008
and each subsequent school year, the Secretary shall provide
grants to States to carry out a program to make free fresh
fruits and vegetables available in elementary schools (referred
to in this section as the `program').
``(b) Program.--A school participating in the program shall
make free fresh fruits and vegetables available to students
throughout the school day (or at such other times as are
considered appropriate by the Secretary) in 1 or more areas
designated by the school.
``(c) Funding to States.--
``(1) Minimum grant.--Except as provided in
subsection (i)(2), the Secretary shall provide to each
of the 50 States and the District of Columbia an annual
grant in an amount equal to 1 percent of the funds made
available for a year to carry out the program.
``(2) Additional funding.--Of the funds remaining
after grants are made under paragraph (1), the
Secretary shall allocate additional funds to each State
that is operating a school lunch program under section
4 based on the proportion that--
``(A) the population of the State; bears to
``(B) the population of the United States.
``(d) Selection of Schools.--
``(1) In general.--Except as provided in paragraph
(2) of this subsection and section 4304(a)(2) of the
Food, Conservation, and Energy Act of 2008, each year,
in selecting schools to participate in the program,
each State shall--
``(A) ensure that each school chosen to
participate in the program is a school--
``(i) in which not less than 50
percent of the students are eligible
for free or reduced price meals under
this Act; and
``(ii) that submits an application
in accordance with subparagraph (D);
``(B) to the maximum extent practicable,
give the highest priority to schools with the
highest proportion of children who are eligible
for free or reduced price meals under this Act;
``(C) ensure that each school selected is
an elementary school (as defined in section
9101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801));
``(D) solicit applications from interested
schools that include--
``(i) information pertaining to the
percentage of students enrolled in the
school submitting the application who
are eligible for free or reduced price
school lunches under this Act;
``(ii) a certification of support
for participation in the program signed
by the school food manager, the school
principal, and the district
superintendent (or equivalent
positions, as determined by the
school);
``(iii) a plan for implementation
of the program, including efforts to
integrate activities carried out under
this section with other efforts to
promote sound health and nutrition,
reduce overweight and obesity, or
promote physical activity; and
``(iv) such other information as
may be requested by the Secretary; and
``(E) encourage applicants to submit a plan
for implementation of the program that includes
a partnership with 1 or more entities that will
provide non-Federal resources (including
entities representing the fruit and vegetable
industry).
``(2) Exception.--Clause (i) of paragraph (1)(A)
shall not apply to a State if all schools that meet the
requirements of that clause have been selected and the
State does not have a sufficient number of additional
schools that meet the requirement of that clause.
``(3) Outreach to low-income schools.--
``(A) In general.--Prior to making
decisions regarding school participation in the
program, a State agency shall inform the
schools within the State with the highest
proportion of free and reduced price meal
eligibility, including Native American schools,
of the eligibility of the schools for the
program with respect to priority granted to
schools with the highest proportion of free and
reduced price eligibility under paragraph
(1)(B).
``(B) Requirement.--In providing
