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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