H. Rept. 112-669 - 112th Congress (2011-2012)
September 13, 2012, As Reported by the Agriculture Committee

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House Report 112-669 - FEDERAL AGRICULTURE REFORM AND RISK MANAGEMENT ACT OF 2012




[House Report 112-669]
[From the U.S. Government Printing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-669

======================================================================
 
       FEDERAL AGRICULTURE REFORM AND RISK MANAGEMENT ACT OF 2012

                                _______
                                

 September 13, 2012.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Lucas, from the Committee on Agriculture, submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 6083]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Agriculture, to whom was referred the bill 
(H.R. 6083) to provide for the reform and continuation of 
agricultural and other programs of the Department of 
Agriculture through fiscal year 2017, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Federal Agriculture 
Reform and Risk Management Act of 2012''.
  (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 of Agriculture.

                          TITLE I--COMMODITIES

                    Subtitle A--Repeals and Reforms

Sec. 1101. Repeal of direct payments.
Sec. 1102. Repeal of counter-cyclical payments.
Sec. 1103. Repeal of average crop revenue election program.
Sec. 1104. Definitions.
Sec. 1105. Base acres.
Sec. 1106. Payment yields.
Sec. 1107. Farm risk management election.
Sec. 1108. Producer agreements.
Sec. 1109. Period of effectiveness.

                      Subtitle B--Marketing Loans

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--Sugar

Sec. 1301. Sugar program.

                           Subtitle D--Dairy

Part I--Dairy Producer Margin Protection and Dairy Market Stabilization 
                                Programs

Sec. 1401. Definitions.
Sec. 1402. Calculation of average feed cost and actual dairy producer 
margins.

          subpart a--dairy producer margin protection program

Sec. 1411. Establishment of dairy producer margin protection program.
Sec. 1412. Participation of dairy producers in margin protection 
program.
Sec. 1413. Production history of participating dairy producers.
Sec. 1414. Basic margin protection.
Sec. 1415. Supplemental margin protection.
Sec. 1416. Effect of failure to pay administrative fees or premiums.

             subpart b--dairy market stabilization program

Sec. 1431. Establishment of dairy market stabilization program.
Sec. 1432. Threshold for implementation and reduction in dairy producer 
payments.
Sec. 1433. Producer milk marketing information.
Sec. 1434. Calculation and collection of reduced dairy producer 
payments.
Sec. 1435. Remitting monies to the Secretary and use of monies.
Sec. 1436. Suspension of reduced payment requirement.
Sec. 1437. Enforcement.
Sec. 1438. Audit requirements.

                subpart c--commodity credit corporation

Sec. 1451. Use of Commodity Credit Corporation.

                   subpart d--initiation and duration

Sec. 1461. Rulemaking.
Sec. 1462. Duration.

  Part II--Repeal or Reauthorization of Other Dairy-related Provisions

Sec. 1481. Repeal of dairy product price support and milk income loss 
contract programs.
Sec. 1482. Repeal of dairy export incentive program.
Sec. 1483. Extension of dairy forward pricing program.
Sec. 1484. Extension of dairy indemnity program.
Sec. 1485. Extension of dairy promotion and research program.
Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission.

                        Part III--Effective Date

Sec. 1491. Effective date.

   Subtitle E--Supplemental Agricultural Disaster Assistance Programs

Sec. 1501. Supplemental agricultural disaster assistance.

                       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. Geographically disadvantaged farmers and ranchers.
Sec. 1606. Personal liability of producers for deficiencies.
Sec. 1607. Prevention of deceased individuals receiving payments under 
farm commodity programs.
Sec. 1608. Technical corrections.
Sec. 1609. Assignment of payments.
Sec. 1610. Tracking of benefits.
Sec. 1611. Signature authority.
Sec. 1612. Implementation.

                         TITLE II--CONSERVATION

                Subtitle A--Conservation Reserve Program

Sec. 2001. Extension and enrollment requirements of conservation 
reserve program.
Sec. 2002. Farmable wetland program.
Sec. 2003. Duties of owners and operators.
Sec. 2004. Duties of the Secretary.
Sec. 2005. Payments.
Sec. 2006. Contract requirements.
Sec. 2007. Conversion of land subject to contract to other conserving 
uses.
Sec. 2008. Effective date.

              Subtitle B--Conservation Stewardship Program

Sec. 2101. Conservation stewardship program.

          Subtitle C--Environmental Quality Incentives Program

Sec. 2201. Purposes.
Sec. 2202. Establishment and administration.
Sec. 2203. Evaluation of applications.
Sec. 2204. Duties of producers.
Sec. 2205. Limitation on payments.
Sec. 2206. Conservation innovation grants and payments.
Sec. 2207. Effective date.

         Subtitle D--Agricultural Conservation Easement Program

Sec. 2301. Agricultural conservation easement program.

         Subtitle E--Regional Conservation Partnership Program

Sec. 2401. Regional conservation partnership program.

                Subtitle F--Other Conservation Programs

Sec. 2501. Conservation of private grazing land.
Sec. 2502. Grassroots source water protection program.
Sec. 2503. Voluntary public access and habitat incentive program.
Sec. 2504. Agriculture conservation experienced services program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Agricultural management assistance program.

                 Subtitle G--Funding and Administration

Sec. 2601. Funding.
Sec. 2602. Technical assistance.
Sec. 2603. Regional equity.
Sec. 2604. Reservation of funds to provide assistance to certain 
farmers or ranchers for conservation access.
Sec. 2605. Annual report on program enrollments and assistance.
Sec. 2606. Review of conservation practice standards.
Sec. 2607. Administrative requirements applicable to all conservation 
programs.
Sec. 2608. Standards for State technical committees.
Sec. 2609. Rulemaking authority.

 Subtitle H--Repeal of Superseded Program Authorities and Transitional 
                    Provisions; Technical Amendments

Sec. 2701. Comprehensive conservation enhancement program.
Sec. 2702. Emergency forestry conservation reserve program.
Sec. 2703. Wetlands reserve program.
Sec. 2704. Farmland protection program and farm viability program.
Sec. 2705. Grassland reserve program.
Sec. 2706. Agricultural water enhancement program.
Sec. 2707. Wildlife habitat incentive program.
Sec. 2708. Great Lakes basin program.
Sec. 2709. Chesapeake Bay watershed program.
Sec. 2710. Cooperative conservation partnership initiative.
Sec. 2711. Environmental easement program.
Sec. 2712. Technical amendments.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

Sec. 3001. General authority.
Sec. 3002. Support for organizations through which assistance is 
provided.
Sec. 3003. Food aid quality.
Sec. 3004. Minimum levels of assistance.
Sec. 3005. Food Aid Consultative Group.
Sec. 3006. Oversight, monitoring, and evaluation.
Sec. 3007. Assistance for stockpiling and rapid transportation, 
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3008. General provisions.
Sec. 3009. Prepositioning of agricultural commodities.
Sec. 3010. Annual report regarding food aid programs and activities.
Sec. 3011. Deadline for agreements to finance sales or to provide other 
assistance.
Sec. 3012. Authorization of appropriations.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

               Subtitle B--Agricultural Trade Act of 1978

Sec. 3101. Funding for export credit guarantee program.
Sec. 3102. Funding for market access program.
Sec. 3103. Foreign market development cooperator program.

               Subtitle C--Other Agricultural Trade Laws

Sec. 3201. Food for Progress Act of 1985.
Sec. 3202. Bill Emerson Humanitarian Trust.
Sec. 3203. Promotion of agricultural exports to emerging markets.
Sec. 3204. McGovern-Dole International Food for Education and Child 
Nutrition Program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global Crop Diversity Trust.
Sec. 3207. Under Secretary of Agriculture for Foreign Agricultural 
Services.

                          TITLE IV--NUTRITION

         Subtitle A--Supplemental Nutrition Assistance Program

Sec. 4001. Retailers.
Sec. 4002. Enhancing services to elderly and disabled supplemental 
nutrition assistance program recipients.
Sec. 4003. Food distribution program on Indian reservations.
Sec. 4004. Updating program eligibility.
Sec. 4005. Exclusion of medical marijuana from excess medical expense 
deduction.
Sec. 4006. Standard utility allowances based on the receipt of energy 
assistance payments.
Sec. 4007. Eligibility disqualifications.
Sec. 4008. Ending supplemental nutrition assistance program benefits 
for lottery or gambling winners.
Sec. 4009. Improving security of food assistance.
Sec. 4010. Demonstration projects on acceptance of benefits of mobile 
transactions.
Sec. 4011. Use of benefits for purchase of community-supported 
agriculture share.
Sec. 4012. Restaurant meals program.
Sec. 4013. State verification option.
Sec. 4014. Repeal of grant program.
Sec. 4015. Data exchange standardization for improved interoperability.
Sec. 4016. Repeal of bonus program.
Sec. 4017. Funding of employment and training programs.
Sec. 4018. Monitoring employment and training program.
Sec. 4019. Cooperation with program research and evaluation.
Sec. 4020. Authorization of appropriations.
Sec. 4021. Limitation on use of block grant to Puerto Rico.
Sec. 4022. Assistance for community food projects.
Sec. 4023. Emergency food assistance.
Sec. 4024. Nutrition education.
Sec. 4025. Retailer trafficking.
Sec. 4026. Technical and conforming amendments.
Sec. 4027. Tolerance level for excluding small errors.
Sec. 4028. Commonwealth of the Northern Mariana Islands pilot program.
Sec. 4029. Annual State report on verification of SNAP participation.

              Subtitle B--Commodity Distribution Programs

Sec. 4101. Commodity distribution program.
Sec. 4102. Commodity supplemental food program.
Sec. 4103. Distribution of surplus commodities to special nutrition 
projects.
Sec. 4104. Processing of commodities.

                       Subtitle C--Miscellaneous

Sec. 4201. Farmers' market nutrition program.
Sec. 4202. Nutrition information and awareness pilot program.
Sec. 4203. Fresh fruit and vegetable program.
Sec. 4204. Additional authority for purchase of fresh fruits, 
vegetables, and other specialty food crops.
Sec. 4205. Encouraging locally and regionally grown and raised food.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Eligibility for farm ownership loans.
Sec. 5002. Conservation loan and loan guarantee program.
Sec. 5003. Down payment loan program.
Sec. 5004. Elimination of mineral rights appraisal requirement.

                      Subtitle B--Operating Loans

Sec. 5101. Eligibility for farm operating loans.
Sec. 5102. Elimination of rural residency requirement for operating 
loans to youth.
Sec. 5103. Authority to waive personal liability for youth loans due to 
circumstances beyond borrower control.
Sec. 5104. Microloans.

                      Subtitle C--Emergency Loans

Sec. 5201. Eligibility for emergency loans.

                 Subtitle D--Administrative Provisions

Sec. 5301. Beginning farmer and rancher individual development accounts 
pilot program.
Sec. 5302. Eligible beginning farmers and ranchers.
Sec. 5303. Loan authorization levels.
Sec. 5304. Priority for participation loans.
Sec. 5305. Loan fund set-asides.
Sec. 5306. Conforming amendment to borrower training provision, 
relating to eligibility changes.

           Subtitle E--State Agricultural Mediation Programs

Sec. 5401. State agricultural mediation programs.

      Subtitle F--Loans to Purchasers of Highly Fractionated Land

Sec. 5501. Loans to purchasers of highly fractionated land.

                      TITLE VI--RURAL DEVELOPMENT

        Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Rural business opportunity grants.
Sec. 6003. Elimination of reservation of community facilities grant 
program funds.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community 
facilities.
Sec. 6006. Emergency and imminent community water assistance grant 
program.
Sec. 6007. 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. 6008. Rural business and industry loan program.
Sec. 6009. Rural cooperative development grants.
Sec. 6010. Locally or regionally produced agricultural food products.
Sec. 6011. Intermediary relending program.
Sec. 6012. Enhancing public/private partnerships to support rural water 
and waste disposal infrastructure.
Sec. 6013. Simplified applications.
Sec. 6014. Reauthorization of State rural development councils.
Sec. 6015. Grants for NOAA weather radio transmitters.
Sec. 6016. Rural microentrepreneur assistance program.
Sec. 6017. Delta Regional Authority.
Sec. 6018. Northern Great Plains Regional Authority.
Sec. 6019. Rural business investment program.

             Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Relending for certain purposes.
Sec. 6102. Fees for certain loan guarantees.
Sec. 6103. Guarantees for bonds and notes issued for electrification or 
telephone purposes.
Sec. 6104. Expansion of 911 access.
Sec. 6105. Access to broadband telecommunications services in rural 
areas.

                       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. Program metrics.
Sec. 6205. Study of rural transportation issues.
Sec. 6206. Agricultural transportation policy.
Sec. 6207. Certain Federal actions not to be considered major for 
purposes of environmental review.

          TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS

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

Sec. 7101. Option to not be included as Hispanic-serving agricultural 
college or university.
Sec. 7102. National Agricultural Research, Extension, Education, and 
Economics Advisory Board.
Sec. 7103. Specialty crop committee.
Sec. 7104. Veterinary services grant program.
Sec. 7105. Grants and fellowships for food and agriculture sciences 
education.
Sec. 7106. Policy research centers.
Sec. 7107. Repeal of human nutrition intervention and health promotion 
research program.
Sec. 7108. Repeal of pilot research program to combine medical and 
agricultural research.
Sec. 7109. Nutrition education program.
Sec. 7110. Continuing animal health and disease research programs.
Sec. 7111. Repeal of appropriations for research on national or 
regional problems.
Sec. 7112. Grants to upgrade agricultural and food sciences facilities 
at 1890 land-grant colleges, including Tuskegee University.
Sec. 7113. Grants to upgrade agriculture and food science facilities 
and equipment at insular area land-grant institutions.
Sec. 7114. Repeal of national research and training virtual centers.
Sec. 7115. Hispanic-serving institutions.
Sec. 7116. Competitive grants for international agricultural science 
and education programs.
Sec. 7117. Repeal of research equipment grants.
Sec. 7118. University research.
Sec. 7119. Extension service.
Sec. 7120. Auditing, reporting, bookkeeping, and administrative 
requirements.
Sec. 7121. Supplemental and alternative crops.
Sec. 7122. Capacity building grants for NLGCA institutions.
Sec. 7123. Aquaculture assistance programs.
Sec. 7124. Rangeland research programs.
Sec. 7125. Special authorization for biosecurity planning and response.
Sec. 7126. Distance education and resident instruction grants program 
for insular area institutions of higher education.
Sec. 7127. Matching funds requirement.

   Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7201. Best utilization of biological applications.
Sec. 7202. Integrated management systems.
Sec. 7203. Sustainable agriculture technology development and transfer 
program.
Sec. 7204. National training program.
Sec. 7205. National Genetics Resources Program.
Sec. 7206. Repeal of National Agricultural Weather Information System.
Sec. 7207. Repeal of rural electronic commerce extension program.
Sec. 7208. Repeal of agricultural genome initiative.
Sec. 7209. High-priority research and extension initiatives.
Sec. 7210. Repeal of nutrient management research and extension 
initiative.
Sec. 7211. Organic agriculture research and extension initiative.
Sec. 7212. Repeal of agricultural bioenergy feedstock and energy 
efficiency research and extension initiative.
Sec. 7213. Farm business management.
Sec. 7214. Regional centers of excellence.
Sec. 7215. Repeal of red meat safety research center.
Sec. 7216. Assistive technology program for farmers with disabilities.
Sec. 7217. National rural information center clearinghouse.

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

Sec. 7301. Relevance and merit of agricultural research, extension, and 
education funded by the Department.
Sec. 7302. Integrated research, education, and extension competitive 
grants program.
Sec. 7303. Repeal of coordinated program of research, extension, and 
education to improve viability of small and medium size dairy, 
livestock, and poultry operations.
Sec. 7304. Repeal of Bovine Johne's disease control program.
Sec. 7305. Grants for youth organizations.
Sec. 7306. Specialty crop research initiative.
Sec. 7307. Food animal residue avoidance database program.
Sec. 7308. Repeal of national swine research center.
Sec. 7309. Office of pest management policy.
Sec. 7310. Repeal of studies of agricultural research, extension, and 
education.

                         Subtitle D--Other Laws

Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-grant Status Act of 1994.
Sec. 7403. Research Facilities Act.
Sec. 7404. Repeal of carbon cycle research.
Sec. 7405. Competitive, Special, and Facilities Research Grant Act.
Sec. 7406. Renewable Resources Extension Act of 1978.
Sec. 7407. National Aquaculture Act of 1980.
Sec. 7408. Repeal of use of remote sensing data.
Sec. 7409. Repeal of reports under Farm Security and Rural Investment 
Act of 2002.
Sec. 7410. Beginning farmer and rancher development program.
Sec. 7411. Inclusion of Northern Mariana Islands as a State under 
McIntire-Stennis Cooperative Forestry Act.

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

                     Part 1--Agricultural Security

Sec. 7501. Agricultural biosecurity communication center.
Sec. 7502. Assistance to build local capacity in agricultural 
biosecurity planning, preparation, and response.
Sec. 7503. Research and development of agricultural countermeasures.
Sec. 7504. Agricultural biosecurity grant program.

                         Part 2--Miscellaneous

Sec. 7511. Enhanced use lease authority pilot program.
Sec. 7512. Grazinglands research laboratory.
Sec. 7513. Budget submission and funding.
Sec. 7514. Repeal of research and education grants for the study of 
antibiotic-resistant bacteria.
Sec. 7515. Repeal of farm and ranch stress assistance network.
Sec. 7516. Repeal of seed distribution.
Sec. 7517. Natural products research program.
Sec. 7518. Sun grant program.
Sec. 7519. Repeal of study and report on food deserts.
Sec. 7520. Repeal of agricultural and rural transportation research and 
education.
Sec. 7521. Conveyance of land comprising Subtropical Horticulture 
Research Station.
Sec. 7522. Concessions, fees, and voluntary services at National 
Arboretum.
Sec. 7523. Cotton Disease Research Report.
Sec. 7524. Miscellaneous technical corrections.

                          TITLE VIII--FORESTRY

            Subtitle A--Repeal of Certain Forestry Programs

Sec. 8001. Forest land enhancement program.
Sec. 8002. Watershed forestry assistance program.
Sec. 8003. Expired cooperative national forest products marketing 
program.
Sec. 8004. Hispanic-serving institution agricultural land national 
resources leadership program.
Sec. 8005. Tribal watershed forestry assistance program.
Sec. 8006. Separate Forest Service decisionmaking and appeals process.

 Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of 
                             1978 Programs

Sec. 8101. Forest Legacy Program.
Sec. 8102. Community forest and open space conservation program.

       Subtitle C--Reauthorization of Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Change in funding source for healthy forests reserve 
program.
Sec. 8204. Stewardship end result contracting project authority.

           Subtitle D--National Forest Critical Area Response

Sec. 8301. Definitions.
Sec. 8302. Designation of critical areas.
Sec. 8303. Application of expedited procedures and activities of the 
Healthy Forests Restoration Act of 2003 to critical areas.
Sec. 8304. Good neighbor authority.

                  Subtitle E--Miscellaneous Provisions

Sec. 8401. Revision of strategic plan for forest inventory and 
analysis.
Sec. 8402. Forest Service participation in ACES Program.

                            TITLE IX--ENERGY

Sec. 9001. Definition of renewable energy system.
Sec. 9002. Biobased markets program.
Sec. 9003. Biorefinery Assistance.
Sec. 9004. Repeal of repowering assistance program and transfer of 
remaining funds.
Sec. 9005. Bioenergy Program for Advanced Biofuels.
Sec. 9006. Biodiesel Fuel Education Program.
Sec. 9007. Rural Energy for America Program.
Sec. 9008. Biomass Research and Development.
Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers.
Sec. 9010. Biomass Crop Assistance Program.
Sec. 9011. Community wood energy program.
Sec. 9012. Repeal of biofuels infrastructure study.
Sec. 9013. Repeal of renewable fertilizer study.

                         TITLE X--HORTICULTURE

Sec. 10001. Specialty crops market news allocation.
Sec. 10002. Repeal of grant program to improve movement of specialty 
crops.
Sec. 10003. Farmers market and local food promotion program.
Sec. 10004. Organic agriculture.
Sec. 10005. Investigations and enforcement of the Organic Foods 
Production Act of 1990.
Sec. 10006. Food safety education initiatives.
Sec. 10007. Specialty crop block grants.
Sec. 10008. Report on specialty crop production by certain farmers.
Sec. 10009. Report on honey.
Sec. 10010. Bulk shipments of apples to Canada.
Sec. 10011. Inclusion of olive oil in import controls under the 
Agricultural Adjustment Act.
Sec. 10012. Petitions to determine organism not a plant pest.
Sec. 10013. Consolidation of plant pest and disease management and 
disaster prevention programs.
Sec. 10014. Authority for regulation of plants.
Sec. 10015. Report to Congress on regulation of biotechnology.
Sec. 10016. Pesticide Registration Improvement.
Sec. 10017. Modification, cancellation, or suspension on basis of a 
biological opinion.
Sec. 10018. Use and discharges of authorized pesticides.
Sec. 10019. Inclusion of Bed Bugs in Definition of Vector Organisms.
Sec. 10020. Effective date.

                        TITLE XI--CROP INSURANCE

Sec. 11001. Information sharing.
Sec. 11002. Publication of information on violations of prohibition on 
premium adjustments.
Sec. 11003. Supplemental coverage option.
Sec. 11004. Premium amounts for catastrophic risk protection.
Sec. 11005. Repeal of performance-based discount.
Sec. 11006. Permanent enterprise unit subsidy.
Sec. 11007. Enterprise units for irrigated and nonirrigated crops.
Sec. 11008. Data collection.
Sec. 11009. Adjustment in actual production history to establish 
insurable yields.
Sec. 11010. Submission and review of policies.
Sec. 11011. Equitable relief for specialty crop policies.
Sec. 11012. Budget limitations on renegotiation of the standard 
reinsurance agreement.
Sec. 11013. Crop production on native sod.
Sec. 11014. Coverage levels by practice.
Sec. 11015. Beginning farmer and rancher provisions.
Sec. 11016. Stacked income protection plan for producers of upland 
cotton.
Sec. 11017. Peanut revenue crop insurance.
Sec. 11018. Authority to correct errors.
Sec. 11019. Implementation.
Sec. 11020. Research and development priorities.
Sec. 11021. Additional research and development contracting 
requirements.
Sec. 11022. Pilot programs.
Sec. 11023. Limitation on expenditures for livestock pilot programs.
Sec. 11024. Noninsured crop assistance program.
Sec. 11025. Technical amendments.

                        TITLE XII--MISCELLANEOUS

                         Subtitle A--Livestock

Sec. 12101. National Sheep Industry Improvement Center.
Sec. 12102. Trichinae certification program.
Sec. 12103. National Aquatic Animal Health Plan.
Sec. 12104. Report on compliance with World Trade Organization decision 
regarding country of origin labeling.
Sec. 12105. Repeal of certain regulations under the Packers and 
Stockyards Act, 1921.
Sec. 12106. Meat and poultry processing report.

   Subtitle B--Socially Disadvantaged Producers and Limited Resource 
                               Producers

Sec. 12201. Outreach and assistance for socially disadvantaged farmers 
and ranchers and veteran farmers and ranchers.
Sec. 12202. Office of Advocacy and Outreach.

               Subtitle C--Other Miscellaneous Provisions

Sec. 12301. Grants to improve supply, stability, safety, and training 
of agricultural labor force.
Sec. 12302. Evaluation required for purposes of prohibition on closure 
or relocation of county offices for the Farm Service Agency.
Sec. 12303. Prohibition on attending an animal fight or causing a minor 
to attend an animal fight.
Sec. 12304. Program benefit eligibility status for participants in high 
plains water study.
Sec. 12305. Office of Tribal Relations.
Sec. 12306. Military Veterans Agricultural Liaison.
Sec. 12307. Acer access and development program.
Sec. 12308. Prohibition against interference by State and local 
governments with production or manufacture of items in other States.
Sec. 12309. Increased protection for agricultural interests in the 
Missouri River basin.

SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE.

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

                          TITLE I--COMMODITIES

                    Subtitle A--Repeals and Reforms

SEC. 1101. REPEAL OF DIRECT PAYMENTS.

  (a) Repeal.--Sections 1103 and 1303 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.
  (b) Continued Application for 2012 Crop Year.--Sections 1103 and 1303 
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 
8753), as in effect on the day before the date of enactment of this 
Act, shall continue to apply through the 2012 crop year with respect to 
all covered commodities (as defined in section 1001 of that Act (7 
U.S.C. 8702)) and peanuts on a farm.

SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS.

  (a) Repeal.--Sections 1104 and 1304 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.
  (b) Continued Application for 2012 Crop Year.--Sections 1104 and 1304 
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 
8754), as in effect on the day before the date of enactment of this 
Act, shall continue to apply through the 2012 crop year with respect to 
all covered commodities (as defined in section 1001 of that Act (7 
U.S.C. 8702)) and peanuts on a farm.

SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION PROGRAM.

  (a) Repeal.--Section 1105 of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 8715) is repealed.
  (b) Continued Application for 2012 Crop Year.--Section 1105 of the 
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715), as in 
effect on the day before the date of enactment of this Act, shall 
continue to apply through the 2012 crop year with respect to all 
covered commodities (as defined in section 1001 of that Act (7 U.S.C. 
8702)) and peanuts on a farm for which the irrevocable election under 
section 1105 of that Act was made before the date of enactment of this 
Act.

SEC. 1104. DEFINITIONS.

  In this subtitle and subtitle B:
          (1) Actual county revenue.--The term ``actual county 
        revenue'', with respect to a covered commodity for a crop year, 
        means the amount determined by the Secretary under section 
        1107(c)(4) to determine whether revenue loss coverage payments 
        are required to be provided for that crop year.
          (2) Base acres.--The term ``base acres'', with respect to a 
        covered commodity and cotton on a farm, means the number of 
        acres established under section 1101 and 1302 of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952) 
        or section 1101 and 1302 of the Food, Conservation, and Energy 
        Act of 2008 (7 U.S.C. 8711, 8752), as in effect on September 
        30, 2012, subject to any adjustment under section 1105 of this 
        Act.
          (3) County revenue loss coverage trigger.--The term ``county 
        revenue loss coverage trigger'', with respect to a covered 
        commodity for a crop year, means the amount determined by the 
        Secretary under section 1107(c)(5) to determine whether revenue 
        loss coverage payments are required to be provided for that 
        crop year.
          (4) Covered commodity.--The term ``covered commodity'' means 
        wheat, oats, and barley (including wheat, oats, and barley used 
        for haying and grazing), corn, grain sorghum, long grain rice, 
        medium grain rice, pulse crops, soybeans, other oilseeds, and 
        peanuts.
          (5) 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 1107(b)(2) to 
        determine whether price loss coverage payments are required to 
        be provided for that crop year.
          (6) 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.
          (7) Farm base acres.--The term ``farm base acres'' means the 
        sum of the base acreage for all covered commodities and cotton 
        on a farm in effect as of September 30, 2012, and subject to 
        any adjustment under section 1105.
          (8) Medium grain rice.--The term ``medium grain rice'' 
        includes short grain rice.
          (9) Midseason price.--The term ``midseason price'' means the 
        applicable national average market price received by producers 
        for the first 5 months of the applicable marketing year, as 
        determined by the Secretary.
          (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.--
                  (A) In general.--Except as provided in subparagraphs 
                (B) through (D), the term ``payment acres'', with 
                respect to the provision of price loss coverage 
                payments and revenue loss coverage payments, means--
                          (i) 85 percent of total acres planted for the 
                        year to each covered commodity on a farm; and
                          (ii) 30 percent of approved total acres 
                        prevented from being planted for the year to 
                        each covered commodity on a farm.
                  (B) Maximum.--The total quantity of payment acres 
                determined under subparagraph (A) shall not exceed the 
                farm base acres.
                  (C) Reduction.--If the sum of all payment acres for a 
                farm exceeds the limits established under subparagraph 
                (B), the Secretary shall reduce the payment acres 
                applicable to each crop proportionately.
                  (D) Exclusion.--The term ``payment acres'' does not 
                include any crop subsequently planted during the same 
                crop year on the same land for which the first crop is 
                eligible for payments under this subtitle, unless the 
                crop was approved for double cropping in the county, as 
                determined by the Secretary.
          (12) Payment yield.--The term ``payment yield'' means the 
        yield established for counter-cyclical payments under section 
        1102 or 1302 of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 7912, 7952), section 1102 of the Food, 
        Conservation, and Energy Act of 2008 (7 U.S.C. 8712), as in 
        effect on September 30, 2012, or under section 1106 of this 
        Act, for a farm for a covered commodity.
          (13) Price loss coverage.--The term ``price loss coverage'' 
        means coverage provided under section 1107(b).
          (14) 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.
          (15) Pulse crop.--The term ``pulse crop'' means dry peas, 
        lentils, small chickpeas, and large chickpeas.
          (16) Reference price.--The term ``reference price'', with 
        respect to a covered commodity for a crop year, means the 
        following:
                  (A) Wheat, $5.50 per bushel.
                  (B) Corn, $3.70 per bushel.
                  (C) Grain sorghum, $3.95 per bushel.
                  (D) Barley, $4.95 per bushel.
                  (E) Oats, $2.40 per bushel.
                  (F) Long grain rice, $14.00 per hundredweight.
                  (G) Medium grain rice, $14.00 per hundredweight.
                  (H) Soybeans, $8.40 per bushel.
                  (I) Other oilseeds, $20.15 per hundredweight.
                  (J) Peanuts $535.00 per ton.
                  (K) Dry peas, $11.00 per hundredweight.
                  (L) Lentils, $19.97 per hundredweight.
                  (M) Small chickpeas, $19.04 per hundredweight.
                  (N) Large chickpeas, $21.54 per hundredweight.
          (17) Revenue loss coverage.--The term ``revenue loss 
        coverage'' means coverage provided under section 1107(c).
          (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
          (19) 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.
          (20) Transitional yield.--The term ``transitional yield'' has 
        the meaning given the term in section 502(b) of the Federal 
        Crop Insurance Act (7 U.S.C. 1502(b)).
          (21) United states.--The term ``United States'', when used in 
        a geographical sense, means all of the States.
          (22) 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.

SEC. 1105. 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 and cotton 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.
                  (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary.
                  (C) The producer has eligible oilseed acreage as the 
                result of the Secretary designating additional 
                oilseeds, which shall be determined in the same manner 
                as eligible oilseed acreage under section 1101(a)(1)(D) 
                of the Food, Conservation, and Energy Act of 2008 (7 
                U.S.C. 8711(a)(1)(D)).
          (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 price loss coverage or 
        revenue loss coverage 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 
        or cotton 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 acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program (or successor programs) under chapter 1 of 
                subtitle D of title XII of the Food Security Act of 
                1985 (16 U.S.C. 3830 et seq.).
                  (B) 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.
                  (C) If the Secretary designates additional oilseeds, 
                any eligible oilseed acreage, which shall be determined 
                in the same manner as eligible oilseed acreage under 
                subsection (a)(1)(C).
          (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 cotton 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.
  (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 or 
                cotton 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 and 
                cotton 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).

SEC. 1106. PAYMENT YIELDS.

  (a) Establishment and Purpose.--For the purpose of making payments 
under this subtitle, the Secretary shall provide for the establishment 
of a yield for each farm for any designated oilseed for which a payment 
yield was not established under section 1102 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8712) in accordance with this section.
  (b) Payment Yields for Designated Oilseeds.--
          (1) Determination of average yield.--In the case of 
        designated oilseeds, the Secretary shall determine the average 
        yield per planted acre for the designated oilseed on a farm for 
        the 1998 through 2001 crop years, excluding any crop year in 
        which the acreage planted to the designated oilseed was zero.
          (2) Adjustment for payment yield.--
                  (A) In general.--The payment yield for a farm for a 
                designated oilseed shall be equal to the product of the 
                following:
                          (i) The average yield for the designated 
                        oilseed determined under paragraph (1).
                          (ii) The ratio resulting from dividing the 
                        national average yield for the designated 
                        oilseed for the 1981 through 1985 crops by the 
                        national average yield for the designated 
                        oilseed 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 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 county average yield.--If the yield per planted 
        acre for a crop of a designated oilseed 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, 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, 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, as determined to be fair 
        and equitable by the Secretary.
  (c) Effect of Lack of Payment Yield.--
          (1) Establishment by secretary.--If no payment yield is 
        otherwise established for a farm for which a covered commodity 
        is planted and eligible to receive price loss coverage 
        payments, the Secretary shall establish an appropriate payment 
        yield for the covered commodity on the farm under paragraph 
        (2).
          (2) Use of similarly situated farms.--Notwithstanding any 
        other provision of law, to establish an appropriate payment 
        yield for a covered commodity on a farm as required by 
        paragraph (1), the Secretary shall take into consideration the 
        farm program payment yields applicable to that covered 
        commodity for similarly situated farms.
  (d) Single Opportunity to Update Yields Used to Determine Price Loss 
Coverage Payments.--
          (1) Election to update.--At the sole discretion of the owner 
        of a farm, the owner of a farm shall have a 1-time opportunity 
        to update the payment yields on a covered commodity-by-covered 
        commodity basis that would otherwise be used in calculating any 
        price loss coverage payment for covered commodities on the 
        farm.
          (2) Time for election.--The election under paragraph (1) 
        shall be made at a time and manner to be in effect for the 2013 
        crop year as determined by the Secretary.
          (3) Method of updating yields.--If the owner of a farm elects 
        to update yields under this subsection, the payment yield for a 
        covered commodity on the farm, for the purpose of calculating 
        price loss coverage payments only, shall be equal to 90 percent 
        of the average of the yield per planted acre for the crop of 
        the covered commodity on the farm for the 2008 through 2012 
        crop years, as determined by the Secretary, excluding any crop 
        year in which the acreage planted to the crop of the covered 
        commodity was zero.
          (4) Use of county average yield.--If the yield per planted 
        acre for a crop of the covered commodity for a farm for any of 
        the 2008 through 2012 crop years was less than 75 percent of 
        the average of the 2008 through 2012 county yield for that 
        commodity, the Secretary shall assign a yield for that crop 
        year equal to 75 percent of the average of the 2008 through 
        2012 county yield for the purposes of determining the average 
        yield under paragraph (3).
          (5) Effect of lack of payment yield.--
                  (A) Establishment by secretary.--For purposes of this 
                subsection, if no payment yield is otherwise 
                established for a covered commodity on a farm, the 
                Secretary shall establish an appropriate updated 
                payment yield for the covered commodity on the farm 
                under subparagraph (B).
                  (B) Use of similarly situated farms.--Notwithstanding 
                any other provision of law, to establish an appropriate 
                updated payment yield for a covered commodity on a farm 
                as required by subparagraph (A), the Secretary shall 
                take into consideration the farm program payment yields 
                applicable to that covered commodity for similarly 
                situated farms, but before the yields for the similarly 
                situated farms are updated as provided in this 
                subsection.

SEC. 1107. FARM RISK MANAGEMENT ELECTION.

  (a) In General.--
          (1) Payments required.--Except as provided in paragraph (2), 
        if the Secretary determines that payments are required under 
        subsection (b)(1) or (c)(2) for a covered commodity, the 
        Secretary shall make payments for that covered commodity 
        available under such subsection to producers on a farm pursuant 
        to the terms and conditions of this section.
          (2) Prohibition on payments; exceptions.--Notwithstanding any 
        other provision of this title, a producer on a farm may not 
        receive price loss coverage payments or revenue loss coverage 
        payments if the sum of the planted acres of covered commodities 
        on the farm is 10 acres or less, as determined by the 
        Secretary, unless the producer is--
                  (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.
  (b) Price Loss Coverage.--
          (1) Payments.--For each of the 2013 through 2017 crop years, 
        the Secretary shall make price loss coverage payments to 
        producers on a farm for a covered commodity if the Secretary 
        determines that--
                  (A) the effective price for the covered commodity for 
                the crop year; is less than
                  (B) the reference price for the covered commodity for 
                the crop year.
          (2) Effective price.--The effective price for a covered 
        commodity for a crop year shall be the higher of--
                  (A) the midseason price; or
                  (B) the national average loan rate for a marketing 
                assistance loan for the covered commodity in effect for 
                crop years 2013 through 2017 under subtitle B.
          (3) Payment rate.--The payment rate shall be equal to the 
        difference between--
                  (A) the reference price for the covered commodity; 
                and
                  (B) the effective price determined under paragraph 
                (2) for the covered commodity.
          (4) Payment amount.--If price loss coverage payments are 
        required to be provided under this subsection for any of the 
        2013 through 2017 crop years for a covered commodity, the 
        amount of the price loss coverage payment to be paid to the 
        producers on a farm for the crop year shall be equal to the 
        product obtained by multiplying--
                  (A) the payment rate for the covered commodity under 
                paragraph (3);
                  (B) the payment yield for the covered commodity; and
                  (C) the payment acres for the covered commodity.
          (5) Time for payments.--If the Secretary determines under 
        this subsection that price loss coverage payments are required 
        to be provided for the covered commodity, the payments shall be 
        made beginning October 1, or as soon as practicable thereafter, 
        after the end of the applicable marketing year for the covered 
        commodity.
          (6) Special rule.--In determining the effective price for 
        barley in paragraph (2), the Secretary shall use the all-barley 
        price.
  (c) Revenue Loss Coverage.--
          (1) Available as an alternative.--As an alternative to 
        receiving price loss coverage payments under subsection (b) for 
        a covered commodity, all of the owners of the farm may make a 
        one-time, irrevocable election on a covered commodity-by-
        covered commodity basis to receive revenue loss coverage 
        payments for each covered commodity in accordance with this 
        subsection. If any of the owners of the farm make different 
        elections on the same covered commodity on the farm, all of the 
        owners of the farm shall be deemed to have not made the 
        election available under this paragraph.
          (2) Payments.--In the case of owners of a farm that make the 
        election described in paragraph (1) for a covered commodity, 
        the Secretary shall make revenue loss coverage payments 
        available under this subsection for each of the 2013 through 
        2017 crop years if the Secretary determines that--
                  (A) the actual county revenue for the crop year for 
                the covered commodity; is less than
                  (B) the county revenue loss coverage trigger for the 
                crop year for the covered commodity.
          (3) Time for payments.--If the Secretary determines under 
        this subsection that revenue loss coverage payments are 
        required to be provided for the covered commodity, payments 
        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) Actual county revenue.--The amount of the actual county 
        revenue for a crop year of a covered commodity shall be equal 
        to the product obtained by multiplying--
                  (A) the actual county yield, as determined by the 
                Secretary, for each planted acre for the crop year for 
                the covered commodity; and
                  (B) the higher of--
                          (i) the midseason price; or
                          (ii) the national average loan rate for a 
                        marketing assistance loan for the covered 
                        commodity in effect for crop years 2013 through 
                        2017 under subtitle B.
          (5) County revenue loss coverage trigger.--
                  (A) In general.--The county revenue loss coverage 
                trigger for a crop year for a covered commodity on a 
                farm shall equal 85 percent of the benchmark county 
                revenue.
                  (B) Benchmark county revenue.--
                          (i) In general.--The benchmark county revenue 
                        shall be the product obtained by multiplying--
                                  (I) subject to clause (ii), the 
                                average historical county yield as 
                                determined by the Secretary for the 
                                most recent 5 crop years, excluding 
                                each of the crop years with the highest 
                                and lowest yields; and
                                  (II) subject to clause (iii), the 
                                average national marketing year average 
                                price for the most recent 5 crop years, 
                                excluding each of the crop years with 
                                the highest and lowest prices.
                          (ii) Yield conditions.--If the historical 
                        county yield in clause (i)(I) for any of the 5 
                        most recent crop years, as determined by the 
                        Secretary, is less than 70 percent of the 
                        transitional yield, as determined by the 
                        Secretary, the amounts used for any of those 
                        years in clause (i)(I) shall be 70 percent of 
                        the transitional yield.
                          (iii) Reference price.--If the national 
                        marketing year average price in clause (i)(II) 
                        for any of the 5 most recent crop years is 
                        lower than the reference price for the covered 
                        commodity, the Secretary shall use the 
                        reference price for any of those years for the 
                        amounts in clause (i)(II).
          (6) Payment rate.--The payment rate shall be equal to the 
        lesser of--
                  (A) the difference between--
                          (i) the county revenue loss coverage trigger 
                        for the covered commodity; and
                          (ii) the actual county revenue for the crop 
                        year for the covered commodity; or
                  (B) 10 percent of the benchmark county revenue for 
                the crop year for the covered commodity.
          (7) Payment amount.--If revenue loss coverage payments under 
        this subsection are required to be provided for any of the 2013 
        through 2017 crop years of a covered commodity, the amount of 
        the revenue loss coverage payment to be provided to the 
        producers on a farm for the crop year shall be equal to the 
        product obtained by multiplying--
                  (A) the payment rate under paragraph (6); and
                  (B) the payment acres of the covered commodity on the 
                farm.
          (8) Duties of the secretary.--In providing revenue loss 
        coverage payments under this subsection, the Secretary--
                  (A) shall ensure that producers on a farm do not 
                reconstitute the farm of the producers to void or 
                change the election made under paragraph (1);
                  (B) to the maximum extent practicable, shall use all 
                available information and analysis, including data 
                mining, to check for anomalies in the provision of 
                revenue loss coverage payments;
                  (C) to the maximum extent practicable, shall 
                calculate a separate county revenue loss coverage 
                trigger for irrigated and nonirrigated covered 
                commodities and a separate actual county revenue for 
                irrigated and nonirrigated covered commodities;
                  (D) shall assign a benchmark county yield for each 
                planted acre for the crop year for the covered 
                commodity on the basis of the yield history of 
                representative farms in the State, region, or crop 
                reporting district, as determined by the Secretary, 
                if--
                          (i) the Secretary cannot establish the 
                        benchmark county yield for each planted acre 
                        for a crop year for a covered commodity in the 
                        county in accordance with paragraph (5); or
                          (ii) the yield determined under paragraph (5) 
                        is an unrepresentative average yield for the 
                        county (as determined by the Secretary); and
                  (E) to the maximum extent practicable, shall ensure 
                that in order to be eligible for a payment under this 
                subsection, the producers on the farm suffered an 
                actual loss on the covered commodity for the crop year 
                for which payment is sought.

SEC. 1108. PRODUCER AGREEMENTS.

  (a) Compliance With Certain Requirements.--
          (1) Requirements.--Before the producers on a farm may receive 
        price loss coverage payments or revenue loss coverage 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.); and
                  (C) to effectively control noxious weeds and 
                otherwise maintain the land in accordance with sound 
                agricultural practices, as determined by the Secretary.
          (2) Compliance.--The Secretary may issue such rules as the 
        Secretary considers necessary to ensure producer compliance 
        with the requirements of paragraph (1).
          (3) Modification.--At the request of the transferee or owner, 
        the Secretary may modify the requirements of this subsection if 
        the modifications are consistent with the objectives of this 
        subsection, as determined by the Secretary.
  (b) Transfer or Change of Interest in Farm.--
          (1) Termination.--
                  (A) In general.--Except as provided in paragraph (2), 
                a transfer of (or change in) the interest of the 
                producers on a farm for which price loss coverage 
                payments or revenue loss coverage payments are provided 
                shall result in the termination of the price loss 
                coverage and revenue loss coverage, 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 price loss 
        coverage payment or revenue loss coverage payment dies, becomes 
        incompetent, or is otherwise unable to receive the payment, the 
        Secretary shall make the payment in accordance with rules 
        issued by the Secretary.
  (c) 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.
  (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 price loss coverage payments and revenue loss coverage payments 
among the producers on a farm on a fair and equitable basis.

SEC. 1109. PERIOD OF EFFECTIVENESS.

  This subtitle shall be effective beginning with the 2013 crop year of 
each covered commodity through the 2017 crop year.

                      Subtitle B--Marketing Loans

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
                    LOAN COMMODITIES.

  (a) Definition of Loan Commodity.--In this subtitle, the term ``loan 
commodity'' means wheat, corn, grain sorghum, barley, oats, upland 
cotton, extra long staple cotton, long grain rice, medium grain rice, 
peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, 
honey, dry peas, lentils, small chickpeas, and large chickpeas.
  (b) Nonrecourse Loans Available.--
          (1) In general.--For each of the 2013 through 2017 crops of 
        each loan commodity, the Secretary shall make available to 
        producers on a farm nonrecourse marketing assistance loans for 
        loan commodities produced on the farm.
          (2) Terms and conditions.--The marketing assistance loans 
        shall be made under terms and conditions that are prescribed by 
        the Secretary and at the loan rate established under section 
        1202 for the loan commodity.
  (c) Eligible Production.--The producers on a farm shall be eligible 
for a marketing assistance loan under subsection (b) for any quantity 
of a loan commodity produced on the farm.
  (d) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (b), 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.
  (e) Special Rules for Peanuts.--
          (1) In general.--This subsection shall apply only to 
        producers of peanuts.
          (2) Options for obtaining loan.--A marketing assistance loan 
        under this section, and loan deficiency payments under section 
        1205, may be obtained at the option of the producers on a farm 
        through--
                  (A) a designated marketing association or marketing 
                cooperative of producers that is approved by the 
                Secretary; or
                  (B) the Farm Service Agency.
          (3) Storage of loan peanuts.--As a condition on the approval 
        by the Secretary of an individual or entity to provide storage 
        for peanuts for which a marketing assistance loan is made under 
        this section, the individual or entity shall agree--
                  (A) to provide the storage on a nondiscriminatory 
                basis; and
                  (B) to comply with such additional requirements as 
                the Secretary considers appropriate to accomplish the 
                purposes of this section and promote fairness in the 
                administration of the benefits of this section.
          (4) Storage, handling, and associated costs.--
                  (A) In general.--To ensure proper storage of peanuts 
                for which a loan is made under this section, the 
                Secretary shall pay handling and other associated costs 
                (other than storage costs) incurred at the time at 
                which the peanuts are placed under loan, as determined 
                by the Secretary.
                  (B) Redemption and forfeiture.--The Secretary shall--
                          (i) require the repayment of handling and 
                        other associated costs paid under subparagraph 
                        (A) for all peanuts pledged as collateral for a 
                        loan that is redeemed under this section; and
                          (ii) pay storage, handling, and other 
                        associated costs for all peanuts pledged as 
                        collateral that are forfeited under this 
                        section.
          (5) Marketing.--A marketing association or cooperative may 
        market peanuts for which a loan is made under this section in 
        any manner that conforms to consumer needs, including the 
        separation of peanuts by type and quality.
          (6) Reimbursable agreements and payment of administrative 
        expenses.--The Secretary may implement any reimbursable 
        agreements or provide for the payment of administrative 
        expenses under this subsection only in a manner that is 
        consistent with those activities in regard to other loan 
        commodities.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

  (a) In General.--For purposes of each of the 2013 through 2017 crop 
years, the loan rate for a marketing assistance loan under section 1201 
for a loan commodity shall be equal to the following:
          (1) In the case of wheat, $2.94 per bushel.
          (2) In the case of corn, $1.95 per bushel.
          (3) In the case of grain sorghum, $1.95 per bushel.
          (4) In the case of barley, $1.95 per bushel.
          (5) In the case of oats, $1.39 per bushel.
          (6) In the case of base quality of upland cotton, for the 
        2013 and each subsequent crop year, the simple average of the 
        adjusted prevailing world price for the 2 immediately preceding 
        marketing years, as determined by the Secretary and announced 
        October 1 preceding the next domestic plantings, but in no case 
        less than $0.47 per pound or more than $0.52 per pound.
          (7) In the case of extra long staple cotton, $0.7977 per 
        pound.
          (8) In the case of long grain rice, $6.50 per hundredweight.
          (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
          (10) In the case of soybeans, $5.00 per bushel.
          (11) In the case of other oilseeds, $10.09 per hundredweight 
        for each of the following kinds of oilseeds:
                  (A) Sunflower seed.
                  (B) Rapeseed.
                  (C) Canola.
                  (D) Safflower.
                  (E) Flaxseed.
                  (F) Mustard seed.
                  (G) Crambe.
                  (H) Sesame seed.
                  (I) Other oilseeds designated by the Secretary.
          (12) In the case of dry peas, $5.40 per hundredweight.
          (13) In the case of lentils, $11.28 per hundredweight.
          (14) In the case of small chickpeas, $7.43 per hundredweight.
          (15) In the case of large chickpeas, $11.28 per 
        hundredweight.
          (16) In the case of graded wool, $1.15 per pound.
          (17) In the case of nongraded wool, $0.40 per pound.
          (18) In the case of mohair, $4.20 per pound.
          (19) In the case of honey, $0.69 per pound.
          (20) In the case of peanuts, $355 per ton.
  (b) Single County Loan Rate for Other Oilseeds.--The Secretary shall 
establish a single loan rate in each county for each kind of other 
oilseeds described in subsection (a)(11).

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, peanuts and confectionery and each 
other kind of sunflower seed (other than oil sunflower seed)) at a rate 
that is the lesser of--
          (1) the loan rate established for the commodity under section 
        1202, plus interest (determined in accordance with section 163 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7283));
          (2) a rate (as determined by the Secretary) that--
                  (A) is calculated based on average market prices for 
                the loan commodity during the preceding 30-day period; 
                and
                  (B) will minimize discrepancies in marketing loan 
                benefits across State boundaries and across county 
                boundaries; or
          (3) a rate that the Secretary may develop using alternative 
        methods for calculating a repayment rate for a loan commodity 
        that the Secretary determines will--
                  (A) minimize potential loan forfeitures;
                  (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                  (C) minimize the cost incurred by the Federal 
                Government in storing the commodity;
                  (D) allow the commodity produced in the United States 
                to be marketed freely and competitively, both 
                domestically and internationally; and
                  (E) minimize discrepancies in marketing loan benefits 
                across State boundaries and across county boundaries.
  (b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium 
Grain Rice.--The Secretary shall permit producers to repay a marketing 
assistance loan under section 1201 for upland cotton, long grain rice, 
and medium grain rice at a rate that is the lesser of--
          (1) the loan rate established for the commodity under section 
        1202, plus interest (determined in accordance with section 163 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7283)); or
          (2) the prevailing world market price for the commodity, as 
        determined and adjusted by the Secretary in accordance with 
        this section.
  (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple cotton shall be at the 
loan rate established for the commodity under section 1202, plus 
interest (determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
  (d) Prevailing World Market Price.--For purposes of this section 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, 2018, if the Secretary determines 
                the adjustment is necessary--
                          (i) to minimize potential loan forfeitures;
                          (ii) to minimize the accumulation of stocks 
                        of upland cotton by the Federal Government;
                          (iii) to ensure that upland cotton produced 
                        in the United States can be marketed freely and 
                        competitively, both domestically and 
                        internationally; and
                          (iv) to ensure an appropriate transition 
                        between current-crop and forward-crop price 
                        quotations, except that the Secretary may use 
                        forward-crop price quotations prior to July 31 
                        of a marketing year only if--
                                  (I) there are insufficient current-
                                crop price quotations; and
                                  (II) the forward-crop price quotation 
                                is the lowest such quotation available.
          (3) Guidelines for additional adjustments.--In making 
        adjustments under this subsection, the Secretary shall 
        establish a mechanism for determining and announcing the 
        adjustments in order to avoid undue disruption in the United 
        States market.
  (f) Repayment Rates for Confectionery and Other Kinds of Sunflower 
Seeds.--The Secretary shall permit the producers on a farm to repay a 
marketing assistance loan under section 1201 for confectionery and each 
other kind of sunflower seed (other than oil sunflower seed) at a rate 
that is the lesser of--
          (1) the loan rate established for the commodity under section 
        1202, plus interest (determined in accordance with section 163 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7283)); or
          (2) the repayment rate established for oil sunflower seed.
  (g) Payment of Cotton Storage Costs.--Effective for each of the 2013 
through 2017 crop years, the Secretary shall make cotton storage 
payments available in the same manner, and at the same rates as the 
Secretary provided storage payments for the 2006 crop of cotton, except 
that the rates shall be reduced by 10 percent.
  (h) Repayment Rate for Peanuts.--The Secretary shall permit producers 
on a farm to repay a marketing assistance loan for peanuts under 
subsection (a) at a rate that is the lesser of--
          (1) the loan rate established for peanuts under subsection 
        (b), plus interest (determined in accordance with section 163 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7283)); or
          (2) a rate that the Secretary determines will--
                  (A) minimize potential loan forfeitures;
                  (B) minimize the accumulation of stocks of peanuts by 
                the Federal Government;
                  (C) minimize the cost incurred by the Federal 
                Government in storing peanuts; and
                  (D) allow peanuts produced in the United States to be 
                marketed freely and competitively, both domestically 
                and internationally.
  (i) Authority to Temporarily Adjust Repayment Rates.--
          (1) Adjustment authority.--In the event of a severe 
        disruption to marketing, transportation, or related 
        infrastructure, the Secretary may modify the repayment rate 
        otherwise applicable under this section for marketing 
        assistance loans under section 1201 for a loan commodity.
          (2) Duration.--Any adjustment made under paragraph (1) in the 
        repayment rate for marketing assistance loans for a loan 
        commodity shall be in effect on a short-term and temporary 
        basis, as determined by the Secretary.

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 2013 
                through 2017 crop years, the Secretary may make loan 
                deficiency payments available under this section to 
                producers on a farm that produce unshorn pelts or hay 
                and silage derived from a loan commodity.
  (b) Computation.--A loan deficiency payment for a loan commodity or 
commodity referred to in subsection (a)(2) shall be equal to the 
product obtained by multiplying--
          (1) the payment rate determined under subsection (c) for the 
        commodity; by
          (2) the quantity of the commodity produced by the eligible 
        producers, excluding any quantity for which the producers 
        obtain a marketing assistance loan under section 1201.
  (c) Payment Rate.--
          (1) In general.--In the case of a loan commodity, the payment 
        rate shall be the amount by which--
                  (A) the loan rate established under section 1202 for 
                the loan commodity; exceeds
                  (B) the rate at which a marketing assistance loan for 
                the loan commodity may be repaid under section 1204.
          (2) Unshorn pelts.--In the case of unshorn pelts, the payment 
        rate shall be the amount by which--
                  (A) the loan rate established under section 1202 for 
                ungraded wool; exceeds
                  (B) the rate at which a marketing assistance loan for 
                ungraded wool may be repaid under section 1204.
          (3) Hay and silage.--In the case of hay or silage derived 
        from a loan commodity, the payment rate shall be the amount by 
        which--
                  (A) the loan rate established under section 1202 for 
                the loan commodity from which the hay or silage is 
                derived; exceeds
                  (B) the rate at which a marketing assistance loan for 
                the loan commodity may be repaid under section 1204.
  (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
  (e) Effective Date for Payment Rate Determination.--The Secretary 
shall determine the amount of the loan deficiency payment to be made 
under this section to the producers on a farm with respect to a 
quantity of a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection (c) as of the 
date the producers request the payment.

SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
                    ACREAGE.

  (a) Eligible Producers.--
          (1) In general.--Effective for the 2013 through 2017 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 2013 
        through 2017 crop years, with respect to a producer on a farm 
        that uses acreage planted to triticale for the grazing of 
        livestock, the Secretary shall make a payment to the producer 
        under this section if the producer enters into an agreement 
        with the Secretary to forgo any other harvesting of triticale 
        on that acreage.
  (b) Payment Amount.--
          (1) In general.--The amount of a payment made under this 
        section to a producer on a farm described in subsection (a)(1) 
        shall be equal to the amount determined by multiplying--
                  (A) the loan deficiency payment rate determined under 
                section 1205(c) in effect, as of the date of the 
                agreement, for the county in which the farm is located; 
                by
                  (B) the payment quantity determined by multiplying--
                          (i) the quantity of the grazed acreage on the 
                        farm with respect to which the producer elects 
                        to forgo harvesting of wheat, barley, or oats; 
                        and
                          (ii)(I) the payment yield in effect for the 
                        calculation of price loss coverage under 
                        subtitle A with respect to that loan commodity 
                        on the farm; or
                          (II) in the case of a farm without a payment 
                        yield for that loan commodity, an appropriate 
                        yield established by the Secretary in a manner 
                        consistent with section 1106(c) of this Act.
          (2) Grazing of triticale acreage.--The amount of a payment 
        made under this section to a producer on a farm described in 
        subsection (a)(2) shall be equal to the amount determined by 
        multiplying--
                  (A) the loan deficiency payment rate determined under 
                section 1205(c) in effect for wheat, as of the date of 
                the agreement, for the county in which the farm is 
                located; by
                  (B) the payment quantity determined by multiplying--
                          (i) the quantity of the grazed acreage on the 
                        farm with respect to which the producer elects 
                        to forgo harvesting of triticale; and
                          (ii)(I) the payment yield in effect for the 
                        calculation of price loss coverage under 
                        subtitle A with respect to wheat on the farm; 
                        or
                          (II) in the case of a farm without a payment 
                        yield for wheat, an appropriate yield 
                        established by the Secretary in a manner 
                        consistent with section 1106(c) of this Act.
  (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 2013 through 2017 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 
                August 1, 2013, and ending on July 31, 2018, 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 the consumption 
        during a 1-week period of cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent 3 months 
        for which official data of the Department of Agriculture are 
        available or, in the absence of sufficient data, as estimated 
        by the Secretary.
          (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) 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 
                        official data of the Department of Agriculture 
                        are available or, in the absence of sufficient 
                        data, as estimated by the Secretary; 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.
                  (B) 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.
                  (C) Supply.--The term ``supply'' means, using the 
                latest official data of the Department of Agriculture--
                          (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.
          (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 official data of the 
                Department of Agriculture are available or, in the 
                absence of sufficient data, 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, make economic adjustment assistance 
        available 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.--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 for the repayment of 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, 2018, the Secretary shall carry out a program--
          (1) to maintain and expand the domestic use of extra long 
        staple cotton produced in the United States;
          (2) to increase exports of extra long staple cotton produced 
        in the United States; and
          (3) to ensure that extra long staple cotton produced in the 
        United States remains competitive in world markets.
  (b) Payments Under Program; Trigger.--Under the program, the 
Secretary shall make payments available under this section whenever--
          (1) for a consecutive 4-week period, the world market price 
        for the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is below the prevailing United 
        States price for a competing growth of extra long staple 
        cotton; and
          (2) the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is less than 134 percent of the 
        loan rate for extra long staple cotton.
  (c) Eligible Recipients.--The Secretary shall make payments available 
under this section to domestic users of extra long staple cotton 
produced in the United States and exporters of extra long staple cotton 
produced in the United States that enter into an agreement with the 
Commodity Credit Corporation to participate in the program under this 
section.
  (d) Payment Amount.--Payments under this section shall be based on 
the amount of the difference in the prices referred to in subsection 
(b)(1) during the fourth week of the consecutive 4-week period 
multiplied by the amount of documented purchases by domestic users and 
sales for export by exporters made in the week following such a 
consecutive 4-week period.

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 2013 through 
        2017 crops of corn and grain sorghum, the Secretary shall make 
        available recourse loans, as determined by the Secretary, to 
        producers on a farm that--
                  (A) normally harvest all or a portion of their crop 
                of corn or grain sorghum in a high moisture state;
                  (B) present--
                          (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, feedlot, feed 
                        mill, distillery, or other similar entity 
                        approved by the Secretary, pursuant to 
                        regulations issued by the Secretary; or
                          (ii) field or other physical measurements of 
                        the standing or stored crop in regions of the 
                        United States, as determined by the Secretary, 
                        that do not have certified commercial scales 
                        from which certified scale tickets may be 
                        obtained within reasonable proximity of harvest 
                        operation;
                  (C) certify that the producers on the farm were the 
                owners of the feed grain at the time of delivery to, 
                and that the quantity to be placed under loan under 
                this subsection was in fact harvested on the farm and 
                delivered to, a feedlot, feed mill, or commercial or 
                on-farm high-moisture storage facility, or to a 
                facility maintained by the users of corn and grain 
                sorghum in a high moisture state; and
                  (D) comply with deadlines established by the 
                Secretary for harvesting the corn or grain sorghum and 
                submit applications for loans under this subsection 
                within deadlines established by the Secretary.
          (3) Eligibility of acquired feed grains.--A loan under this 
        subsection shall be made on a quantity of corn or grain sorghum 
        of the same crop acquired by the producer equivalent to a 
        quantity determined by multiplying--
                  (A) the acreage of the corn or grain sorghum in a 
                high moisture state harvested on the farm of the 
                producer; by
                  (B) the lower of the farm program payment yield used 
                to make payments under subtitle A or the actual yield 
                on a field, as determined by the Secretary, that is 
                similar to the field from which the corn or grain 
                sorghum was obtained.
  (b) Recourse Loans Available for Seed Cotton.--For each of the 2013 
through 2017 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 subtitle C.
  (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) Types of adjustments.--Loan rate adjustments under 
        paragraph (1) may include--
                  (A) 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;
                  (B) 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
                  (C) 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 adjustments to 
        the administration of the loan program for upland cotton, by 
        revoking or revising any adjustment taken under paragraph (2).
  (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--Sugar

SEC. 1301. SUGAR PROGRAM.

  (a) Continuation of Current Program and Loan Rates.--
          (1) Sugarcane.--Section 156(a)(5) of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(5)) is 
        amended by striking ``the 2012 crop year'' and inserting ``each 
        of the 2012 through 2017 crop years''.
          (2) Sugar beets.--Section 156(b)(2) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
        7272(b)(2)) is amended by striking ``2012'' and inserting 
        ``2017''.
          (3) Effective period.--Section 156(i) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
        7272(i)) is amended by striking ``2012'' and inserting 
        ``2017''.
  (b) Flexible Marketing Allotments for Sugar.--
          (1) Sugar estimates.--Section 359b(a)(1) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by 
        striking ``2012'' and inserting ``2017''.
          (2) Effective period.--Section 359l(a) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 
        striking ``2012'' and inserting ``2017''.

                           Subtitle D--Dairy

PART I--DAIRY PRODUCER MARGIN PROTECTION AND DAIRY MARKET STABILIZATION 
                                PROGRAMS

SEC. 1401. DEFINITIONS.

  In this part:
          (1) Actual dairy producer margin.--The term ``actual dairy 
        producer margin'' means the difference between the all-milk 
        price and the average feed cost, as calculated under section 
        1402.
          (2) All-milk price.--The term ``all-milk price'' means the 
        average price received, per hundredweight of milk, by dairy 
        producers for all milk sold to plants and dealers in the United 
        States, as determined by the Secretary.
          (3) Annual production history.--The term ``annual production 
        history'' means the production history determined for a 
        participating dairy producer under section 1413(b) whenever the 
        dairy producer purchases supplemental margin protection.
          (4) Average feed cost.--The term ``average feed cost'' means 
        the average cost of feed used by a dairy operation to produce a 
        hundredweight of milk, determined under section 1402 using the 
        sum of the following:
                  (A) The product determined by multiplying 1.0728 by 
                the price of corn per bushel.
                  (B) The product determined by multiplying 0.00735 by 
                the price of soybean meal per ton.
                  (C) The product determined by multiplying 0.0137 by 
                the price of alfalfa hay per ton.
          (5) Basic production history.--The term ``basic production 
        history'' means the production history determined for a 
        participating dairy producer under section 1413(a) for 
        provision of basic margin protection.
          (6) Consecutive two-month period.--The term ``consecutive 
        two-month period'' refers to the two-month period consisting of 
        the months of January and February, March and April, May and 
        June, July and August, September and October, or November and 
        December, respectively.
          (7) Dairy producer.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``dairy producer'' means an individual or entity 
                that directly or indirectly (as determined by the 
                Secretary)--
                          (i) shares in the risk of producing milk; and
                          (ii) makes contributions (including land, 
                        labor, management, equipment, or capital) to 
                        the dairy 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) Additional ownership structures.--The Secretary 
                shall determine additional ownership structures to be 
                covered by the definition of dairy producer.
          (8) Handler.--
                  (A) In general.--The term ``handler'' means the 
                initial individual or entity making payment to a dairy 
                producer for milk produced in the United States and 
                marketed for commercial use.
                  (B) Producer-handler.--The term includes a 
                ``producer-handler'' when the producer satisfies the 
                definition in subparagraph (A).
          (9) Margin protection program.--The term ``margin protection 
        program'' means the dairy producer margin protection program 
        required by subpart A.
          (10) Participating dairy producer.--The term ``participating 
        dairy producer'' means a dairy producer that--
                  (A) signs up under section 1412 to participate in the 
                margin protection program under subpart A; and
                  (B) as a result, also participates in the 
                stabilization program under subpart B.
          (11) Stabilization program.--The term ``stabilization 
        program'' means the dairy market stabilization program required 
        by subpart B for all participating dairy producers.
          (12) Stabilization program base.--The term ``stabilization 
        program base'', with respect to a participating dairy producer, 
        means the stabilization program base calculated for the 
        producer under section 1431(b).
          (13) United states.--The term ``United States'', in a 
        geographical sense, means the 50 States, the District of 
        Columbia, American Samoa, Guam, the Commonwealth of the 
        Northern Mariana Islands, the Commonwealth of Puerto Rico, the 
        Virgin Islands of the United States, and any other territory or 
        possession of the United States.

SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY PRODUCER 
                    MARGINS.

  (a) Calculation of Average Feed Cost.--The Secretary shall calculate 
the national average feed cost for each month using the following data:
          (1) The price of corn for a month shall be the price received 
        during that month by farmers in the United States for corn, as 
        reported in the monthly Agricultural Prices report by the 
        Secretary.
          (2) The price of soybean meal for a month shall be the 
        central Illinois price for soybean meal, as reported in the 
        Market News-Monthly Soybean Meal Price Report by the Secretary.
          (3) The price of alfalfa hay for a month shall be the price 
        received during that month by farmers in the United States for 
        alfalfa hay, as reported in the monthly Agricultural Prices 
        report by the Secretary.
  (b) Calculation of Actual Dairy Producer Margins.--
          (1) Margin protection program.--For use in the margin 
        protection program under subpart A, the Secretary shall 
        calculate the actual dairy producer margin for each consecutive 
        two-month period by subtracting--
                  (A) the average feed cost for that consecutive two-
                month period, determined in accordance with subsection 
                (a); from
                  (B) the all-milk price for that consecutive two-month 
                period.
          (2) Stabilization program.--For use in the stabilization 
        program under subpart B, the Secretary shall calculate each 
        month the actual dairy producer margin for the preceding month 
        by subtracting--
                  (A) the average feed cost for that preceding month, 
                determined in accordance with subsection (a); from
                  (B) the all-milk price for that preceding month.
          (3) Time for calculations.--The calculations required by 
        paragraphs (1) and (2) shall be made as soon as practicable 
        each month using the full month price of the applicable 
        reference month, but in no case shall the calculation be made 
        later than the last business day of the month.

          Subpart A--Dairy Producer Margin Protection Program

SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCER MARGIN PROTECTION PROGRAM.

  The Secretary shall establish and administer a dairy producer margin 
protection program for the purpose of protecting dairy producer income 
by paying participating dairy producers--
          (1) basic margin protection payments when actual dairy 
        producer margins are less than the threshold levels for such 
        payments; and
          (2) supplemental margin protection payments if purchased by a 
        participating dairy producer.

SEC. 1412. PARTICIPATION OF DAIRY PRODUCERS IN MARGIN PROTECTION 
                    PROGRAM.

  (a) Eligibility.--All dairy producers in the United States are 
eligible to participate in the margin protection program, except that a 
dairy producer must sign up with the Secretary before the producer may 
receive--
          (1) basic margin protection payments under section 1414; and
          (2) if the dairy producer purchases supplemental margin 
        protection under section 1415, supplemental margin protection 
        payments under such section.
  (b) Sign-up Process.--
          (1) In general.--The Secretary shall allow all interested 
        dairy producers to sign up to participate in the margin 
        protection program. The Secretary shall specify the manner and 
        form by which a dairy producer must sign up to participate in 
        the margin protection program.
          (2) Treatment of multi-producer operations.--If a dairy 
        operation consists of more than one dairy producer, all of the 
        dairy producers of the operation shall be treated as a single 
        dairy producer for purposes of--
                  (A) registration to receive basic margin protection 
                and purchase supplemental margin protection;
                  (B) payment of the administrative fee under 
                subsection (e) and producer premiums under section 
                1415; and
                  (C) participation in the stabilization program under 
                subpart B.
          (3) Treatment of producers with multiple dairy operations.--
        If a dairy producer operates two or more dairy operations, each 
        dairy operation of the producer shall require a separate 
        registration to receive basic margin protection and purchase 
        supplemental margin protection. Only those dairy operations so 
        registered shall be subject to the stabilization program.
  (c) Time for Sign up.--
          (1) Existing dairy producers.--During the one-year period 
        beginning on the date of the initiation of the sign-up period 
        for the margin protection program, a dairy producer that is 
        actively engaged in a dairy operation as of such date may sign 
        up with the Secretary--
                  (A) to receive basic margin protection; and
                  (B) if the producer elects, to purchase supplemental 
                margin protection.
          (2) New entrants.--A dairy producer that has no existing 
        interest in a dairy operation as of the date of the initiation 
        of the sign-up period for the margin protection program, but 
        that, after such date, establishes a new dairy operation, may 
        sign up with the Secretary during the one year period beginning 
        on the date on which the dairy operation first markets milk 
        commercially--
                  (A) to receive basic margin protection; and
                  (B) if the producer elects, to purchase supplemental 
                margin protection.
  (d) Retroactivity Provision.--
          (1) Notice of availability of retroactive protection.--Not 
        later than 30 days after the effective date of this subtitle, 
        the Secretary shall publish a notice in the Federal Register to 
        inform dairy producers of the availability of retroactive basic 
        margin protection and retroactive supplemental margin 
        protection, subject to the condition that interested producers 
        must file a notice of intent (in such form and manner as the 
        Secretary specifies in the Federal Register notice)--
                  (A) to participate in the margin protection program 
                and receive basic margin protection; and
                  (B) at the election of the producer under paragraph 
                (3), to also obtain supplemental margin protection.
          (2) Retroactive basic margin protection.--
                  (A) Availability.--If a dairy producer files a notice 
                of intent under paragraph (1) to participate in the 
                margin protection program before the initiation of the 
                sign-up period for the margin protection program and 
                subsequently signs up for the margin protection 
                program, the producer shall receive basic margin 
                protection retroactive to the effective date of this 
                subtitle.
                  (B) Duration.--Retroactive basic margin protection 
                under this paragraph for a dairy producer shall apply 
                from the effective date of this subtitle until the date 
                on which the producer signs up for the margin 
                protection program.
          (3) Retroactive supplemental margin protection.--
                  (A) Availability.--Subject to subparagraphs (B) and 
                (C), if a dairy producer files a notice of intent under 
                paragraph (1) to participate in the margin protection 
                program and obtain supplemental margin protection and 
                subsequently signs up for the margin protection 
                program, the producer shall receive supplemental margin 
                protection, in addition to the basic margin protection 
                under paragraph (2), retroactive to the effective date 
                of this subtitle.
                  (B) Deadline for submission.--A notice of intent to 
                obtain retroactive supplemental margin protection must 
                be filed with the Secretary no later than the earlier 
                of the following:
                          (i) 150 days after the date on which the 
                        Secretary publishes the notice in the Federal 
                        Register required by paragraph (1).
                          (ii) The date on which the Secretary 
                        initiates the sign up period for the margin 
                        protection program.
                  (C) Election of coverage level and percentage of 
                coverage.--To be sufficient to obtain retroactive 
                supplemental margin protection, the notice of intent to 
                participate filed by a dairy producer must specify--
                          (i) a selected coverage level that is higher, 
                        in any increment of $0.50, than the payment 
                        threshold for basic margin protection specified 
                        in section 1414(b), but not to exceed $6.00; 
                        and
                          (ii) the percentage of coverage, subject to 
                        limits imposed in section 1415(c).
                  (D) Duration.--The coverage level and percentage 
                specified in the notice of intent to participate filed 
                by a dairy producer shall apply from the effective date 
                of this subtitle until the later of the following:
                          (i) October 1, 2013.
                          (ii) The date on which the Secretary 
                        initiates the sign-up period for the margin 
                        protection program.
          (4) Notice of intent and obligation to participate in margin 
        protection program.--In no way does filing a notice of intent 
        under this subsection obligate a dairy producer to sign up for 
        the margin protection program once the program rules are final, 
        but if a producer does file a notice of intent and subsequently 
        signs up for the margin protection program, that dairy producer 
        is obligated to pay fees and premiums for any retroactive basic 
        margin protection or retroactive supplemental margin protection 
        selected in the notice of intent.
  (e) Administrative Fee.--
          (1) Administrative fee required.--A dairy producer shall pay 
        an administrative fee under this subsection to sign up to 
        participate in the margin protection program. The participating 
        dairy producer shall pay the administrative fee annually 
        thereafter to continue to participate in the margin protection 
        program.
          (2) Fee amount.--The administrative fee for a participating 
        dairy producer for a calendar year is based on the pounds of 
        milk (in millions) marketed by the dairy producer in the 
        previous calendar year, as follows:


------------------------------------------------------------------------
   Pounds Marketed (in millions)                  Admin. Fee
------------------------------------------------------------------------
                 less than 1                                 $100
                     1 to 10                                 $250
          more than 10 to 40                                 $500
                more than 40                                $1000
------------------------------------------------------------------------


          (3) Deposit of fees.--All administrative fees collected under 
        this subsection shall be credited to the fund or account used 
        to cover the costs incurred to administer the margin protection 
        program and the stabilization program and shall be available to 
        the Secretary, without further appropriation and until 
        expended, for use or transfer as provided in paragraph (4).
          (4) Use of fees.--The Secretary shall use administrative fees 
        collected under this subsection--
                  (A) to cover administrative costs of the margin 
                protection program and stabilization program; and
                  (B) to the extent funds remain available after 
                operation of subparagraphs (A), to cover costs of the 
                Department of Agriculture relating to reporting of 
                dairy market news and to carry out section 273 of the 
                Agricultural Marketing Act of 1946 (7 U.S.C. 1637b).
  (f) Reconstitution.--The Secretary shall prohibit a dairy producer 
from reconstituting a dairy operation for the sole purpose of the dairy 
producer--
          (1) receiving basic margin protection;
          (2) purchasing supplemental margin protection; or
          (3) avoiding participation in the stabilization program.
  (g) Priority Consideration.--A dairy operation that participates in 
the margin protection program shall be eligible to participate in the 
livestock gross margin for dairy program under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) only after operations that are 
not participating in the production margin protection program are 
enrolled.

SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING DAIRY PRODUCERS.

  (a) Production History for Basic Margin Protection.--
          (1) Determination required.--For purposes of providing basic 
        margin protection, the Secretary shall determine the basic 
        production history of the dairy operation of each participating 
        dairy producer in the margin protection program.
          (2) Calculation.--Except as provided in paragraph (3), the 
        basic production history of a participating dairy producer for 
        basic margin protection is equal to the highest annual milk 
        marketings of the dairy producer during any one of the three 
        calendar years immediately preceding the calendar year in which 
        the dairy producer first signed up to participate in the margin 
        protection program.
          (3) Election by new producers.--If a participating dairy 
        producer has been in operation for less than a year, the dairy 
        producer shall elect one of the following methods for the 
        Secretary to determine the basic production history of the 
        dairy producer:
                  (A) The volume of the actual milk marketings for the 
                months the dairy producer has been in operation 
                extrapolated to a yearly amount.
                  (B) An estimate of the actual milk marketings of the 
                dairy producer based on the herd size of the producer 
                relative to the national rolling herd average data 
                published by the Secretary.
          (4) No change in production history for basic margin 
        protection.--Once the basic production history of a 
        participating dairy producer is determined under paragraph (2) 
        or (3), the basic production history shall not be subsequently 
        changed for purposes of determining the amount of any basic 
        margin protection payments for the dairy producer made under 
        section 1414.
  (b) Annual Production History for Supplemental Margin Protection.--
          (1) Determination required.--For purposes of providing 
        supplemental margin protection for a participating dairy 
        producer that purchases supplemental margin protection for a 
        year under section 1415, the Secretary shall determine the 
        annual production history of the dairy operation of the dairy 
        producer under paragraph (2).
          (2) Calculation.--The annual production history of a 
        participating dairy producer for a year is equal to the actual 
        milk marketings of the dairy producer during the preceding 
        calendar year.
          (3) New producers.--Subsection (a)(3) shall apply with 
        respect to determining the annual production history of a 
        participating dairy producer that has been in operation for 
        less than a year.
  (c) Required Information.--A participating dairy producer shall 
provide all information that the Secretary may require in order to 
establish--
          (1) the basic production history of the dairy operation of 
        the dairy producer under subsection (a); and
          (2) the production history of the dairy operation of the 
        dairy producer whenever the producer purchases supplemental 
        margin protection under section 1415.
  (d) Transfer of Production Histories.--
          (1) Transfer by sale or lease.--In promulgating the rules to 
        initiate the margin protection program, the Secretary shall 
        specify the conditions under which and the manner by which the 
        production history of a dairy operation may be transferred by 
        sale or lease.
          (2) Coverage level.--
                  (A) Basic margin protection.--A purchaser or lessee 
                to whom the Secretary transfers a basic production 
                history under this subsection shall not obtain a 
                different level of basic margin protection than the 
                basic margin protection coverage held by the seller or 
                lessor from whom the transfer was obtained.
                  (B) Supplemental margin protection.--A purchaser or 
                lessee to whom the Secretary transfers an annual 
                production history under this subsection shall not 
                obtain a different level of supplemental margin 
                protection coverage than the supplemental margin 
                protection coverage in effect for the seller or lessor 
                from whom the transfer was obtained for the calendar 
                year in which the transfer was made.
  (e) Movement and Transfer of Production History.--
          (1) Movement and transfer authorized.--Subject to paragraph 
        (2), if a dairy producer moves from one location to another 
        location, the dairy producer may maintain the basic production 
        history and annual production history associated with the 
        operation.
          (2) Notification requirement.--A dairy producer shall notify 
        the Secretary of any move of a dairy operation under paragraph 
        (1).
          (3) Subsequent occupation of vacated location.--A party 
        subsequently occupying a dairy operation location vacated as 
        described in paragraph (1) shall have no interest in the basic 
        production history or annual production history previously 
        associated with the operation at such location.

SEC. 1414. BASIC MARGIN PROTECTION.

  (a) Eligibility.--All participating dairy producers are eligible to 
receive basic margin protection under the margin protection program.
  (b) Payment Threshold.--Participating dairy producers shall receive a 
basic margin protection payment whenever the average actual dairy 
producer margin for a consecutive two-month period is less than $4.00 
per hundredweight of milk.
  (c) Basic Margin Protection Payment.--
          (1) Payment required.--The Secretary shall make a basic 
        margin protection payment to each participating dairy producer 
        whenever such a payment is required by subsection (b).
          (2) Amount of payment.--The basic margin protection payment 
        for the dairy operation of a participating dairy producer for a 
        consecutive two-month period shall be determined as follows:
                  (A) The Secretary shall calculate the difference 
                between the average actual dairy producer margin for 
                the consecutive two-month period and $4.00, except 
                that, if the difference is more than $4.00, the 
                Secretary shall use $4.00.
                  (B) The Secretary shall multiply the amount under 
                subparagraph (A) by the lesser of the following:
                          (i) 80 percent of the production history of 
                        the dairy producer, divided by six.
                          (ii) The actual amount of milk marketed by 
                        the dairy operation of the dairy producer 
                        during the consecutive two-month period.

SEC. 1415. SUPPLEMENTAL MARGIN PROTECTION.

  (a) Election of Supplemental Margin Protection.--Supplemental margin 
protection is available only on an annual basis. A participating dairy 
producer may annually purchase supplemental margin protection to 
protect, during the calendar year for which purchased, a higher level 
of the income of a participating dairy producer than the income level 
guaranteed by basic margin protection under section 1414.
  (b) Selection of Payment Threshold.--A participating dairy producer 
purchasing supplemental margin protection for a year shall elect a 
coverage level that is higher, in any increment of $0.50, than the 
payment threshold for basic margin protection specified in section 
1414(b), but not to exceed $8.00.
  (c) Selection of Coverage Percentage.--A participating dairy producer 
purchasing supplemental margin protection for a year shall elect a 
percentage of coverage equal to not more than 90 percent, nor less than 
25 percent, of the annual production history of the dairy operation of 
the participating dairy producer.
  (d) Producer Premiums for Supplemental Margin Protection.--
          (1) Premiums required.--A participating dairy producer that 
        purchases supplemental margin protection shall pay an annual 
        premium equal to the product obtained by multiplying--
                  (A) the percentage selected by the dairy producer 
                under subsection (c);
                  (B) the annual production history of the dairy 
                producer; and
                  (C) the premium per hundredweight of milk, as 
                specified in the applicable table under paragraph (2) 
                or (3).
          (2) Premium per hundredweight for first 4 million pounds of 
        production.--For the first 4,000,000 pounds of milk marketings 
        included in the annual production history of a participating 
        dairy producer, the premium per hundredweight corresponding to 
        each coverage level specified in the following table is as 
        follows:


------------------------------------------------------------------------
           Coverage Level                      Premium per Cwt.
------------------------------------------------------------------------
                       $4.50                                $0.01
                       $5.00                               $0.025
                       $5.50                                $0.04
                       $6.00                               $0.065
                       $6.50                                $0.09
                       $7.00                               $0.434
                       $7.50                               $0.590
                       $8.00                               $0.922
------------------------------------------------------------------------


          (3) Premium per hundredweight for production in excess of 4 
        million pounds.--For milk marketings in excess of 4,000,000 
        pounds included in the annual production history of a 
        participating dairy producer, the premium per hundredweight 
        corresponding to each coverage level is as follows:


------------------------------------------------------------------------
           Coverage Level                      Premium per Cwt.
------------------------------------------------------------------------
                       $4.50                               $0.015
                       $5.00                               $0.036
                       $5.50                               $0.081
                       $6.00                               $0.155
                       $6.50                               $0.230
                       $7.00                               $0.434
                       $7.50                               $0.590
                       $8.00                               $0.922
------------------------------------------------------------------------


          (4) Time for payment.--In promulgating the rules to initiate 
        the margin protection program, the Secretary shall provide more 
        than one method by which a participating dairy producer that 
        purchases supplemental margin protection for a calendar year 
        may pay the premium under this subsection for that year that 
        maximizes producer payment flexibility and program integrity.
  (e) Producer's Premium Obligations.--
          (1) Pro-ration of premium for new producers.--A dairy 
        producer described in section 1412(c)(2) that purchases 
        supplemental margin protection for a calendar year after the 
        start of the calendar year shall pay a pro-rated premium for 
        that calendar year based on the portion of the calendar year 
        for which the producer purchases the coverage.
          (2) Legal obligation.--A participating dairy producer that 
        purchases supplemental margin protection for a calendar year 
        shall be legally obligated to pay the applicable premium for 
        that calendar year, except that, if the dairy producer retires, 
        the producer may request that Secretary cancel the supplemental 
        margin protection if the producer has terminated the dairy 
        operation entirely and certifies under oath that the producer 
        will not be actively engaged in any dairy operation for at 
        least the next seven years.
  (f) Supplemental Payment Threshold.--A participating dairy producer 
with supplemental margin protection shall receive a supplemental margin 
protection payment whenever the average actual dairy producer margin 
for a consecutive two-month period is less than the coverage level 
threshold selected by the dairy producer under subsection (b).
  (g) Supplemental Margin Protection Payments.--
          (1) In general.--The supplemental margin protection payment 
        for a participating dairy producer is in addition to the basic 
        margin protection payment.
          (2) Amount of payment.--The supplemental margin protection 
        payment for the dairy operation of a participating dairy 
        producer shall be determined as follows:
                  (A) The Secretary shall calculate the difference 
                between the coverage level threshold selected by the 
                dairy producer under subsection (b) and the greater 
                of--
                          (i) the average actual dairy producer margin 
                        for the consecutive two-month period; or
                          (ii) $4.00.
                  (B) The amount determined under subparagraph (A) 
                shall be multiplied by the percentage selected by the 
                participating dairy producer under subsection (c) and 
                by the lesser of the following:
                          (i) The annual production history of the 
                        dairy operation of the dairy producer, divided 
                        by six.
                          (ii) The actual amount of milk marketed by 
                        the dairy operation of the dairy producer 
                        during the consecutive two-month period.

SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATIVE FEES OR PREMIUMS.

  (a) Loss of Benefits.--A participating dairy producer that fails to 
pay the required administrative fee under section 1412 or is in arrears 
on premium payments for supplemental margin protection under section 
1415--
          (1) remains legally obligated to pay the administrative fee 
        or premiums, as the case may be; and
          (2) may not receive basic margin protection payments or 
        supplemental margin protection payments until the fees or 
        premiums are fully paid.
  (b) Enforcement.--The Secretary may take such action as necessary to 
collect administrative fees and premium payments for supplemental 
margin protection.

             Subpart B--Dairy Market Stabilization Program

SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION PROGRAM.

  (a) Program Required; Purpose.--The Secretary shall establish and 
administer a dairy market stabilization program applicable to 
participating dairy producers for the purpose of assisting in balancing 
the supply of milk with demand when dairy producers are experiencing 
low or negative operating margins.
  (b) Election of Stabilization Program Base Calculation Method.--
          (1) Election.--When a dairy producer signs up under section 
        1412 to participate in the margin protection program, the dairy 
        producer shall inform the Secretary of the method by which the 
        stabilization program base for the dairy producer for fiscal 
        year 2013 will be calculated under paragraph (3).
          (2) Change in calculation method.--A participating dairy 
        producer may change the stabilization program base calculation 
        method to be used for a calendar year by notifying the 
        Secretary of the change not later than a date determined by the 
        Secretary.
          (3) Calculation methods.--A participating dairy producer may 
        elect either of the following methods for calculation of the 
        stabilization program base for the producer:
                  (A) The volume of the average monthly milk marketings 
                of the dairy producer for the three months immediately 
                preceding the announcement by the Secretary that the 
                stabilization program will become effective.
                  (B) The volume of the monthly milk marketings of the 
                dairy producer for the same month in the preceding year 
                as the month for which the Secretary has announced the 
                stabilization program will become effective.

SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUCTION IN DAIRY PRODUCER 
                    PAYMENTS.

  (a) When Stabilization Program Required.--Except as provided in 
subsection (b), the Secretary shall announce that the stabilization 
program is in effect and order reduced payments for any participating 
dairy producer that exceeds the applicable percentage of the producer's 
stabilization program base whenever--
          (1) the actual dairy producer margin has been $6.00 or less 
        per hundredweight of milk for each of the immediately preceding 
        two months; or
          (2) the actual dairy producer margin has been $4.00 or less 
        per hundredweight of milk for the immediately preceding month.
  (b) Exception.--The Secretary shall not make the announcement under 
subsection (a) to implement the stabilization program or order reduced 
payments if any of the conditions described in section 1436(b) have 
been met during the two months immediately preceding the month in which 
the announcement under subsection (a) would otherwise be made by the 
Secretary in the absence of this exception.
  (c) Effective Date for Implementation of Payment Reductions.--
Reductions in dairy producer payments shall commence beginning on the 
first day of the month immediately following the date of the 
announcement by the Secretary under subsection (a).

SEC. 1433. PRODUCER MILK MARKETING INFORMATION.

  (a) Collection of Milk Marketing Data.--The Secretary shall 
establish, by regulation, a process to collect from participating dairy 
producers and handlers such information that the Secretary considers 
necessary for each month during which the stabilization program is in 
effect.
  (b) Reduce Regulatory Burden.--When implementing the process under 
subsection (a), the Secretary shall minimize the regulatory burden on 
dairy producers and handlers.

SEC. 1434. CALCULATION AND COLLECTION OF REDUCED DAIRY PRODUCER 
                    PAYMENTS.

  (a) Reduced Producer Payments Required.--During any month in which 
payment reductions are in effect under the stabilization program, each 
handler shall reduce payments to each participating dairy producer from 
whom the handler receives milk.
  (b) Reductions Based on Actual Dairy Producer Margin.--
          (1) Reduction requirement 1.--Unless the reduction required 
        by paragraph (2) or (3) applies, when the actual dairy producer 
        margin has been $6.00 or less per hundredweight of milk for two 
        consecutive months, the handler shall make payments to a 
        participating dairy producer for a month based on the greater 
        of the following:
                  (A) 98 percent of the stabilization program base of 
                the dairy producer.
                  (B) 94 percent of the marketings of milk for the 
                month by the producer.
          (2) Reduction requirement 2.--Unless the reduction required 
        by paragraph (3) applies, when the actual dairy producer margin 
        has been $5.00 or less per hundredweight of milk for two 
        consecutive months, the handler shall make payments to a 
        participating dairy producer for a month based on the greater 
        of the following:
                  (A) 97 percent of the stabilization program base of 
                the dairy producer.
                  (B) 93 percent of the marketings of milk for the 
                month by the producer.
          (3) Reduction requirement 3.--When the actual dairy producer 
        margin has been $4.00 or less for any one month, the handler 
        shall make payments to a participating dairy producer for a 
        month based on the greater of the following:
                  (A) 96 percent of the stabilization program base of 
                the dairy producer.
                  (B) 92 percent of the marketings of milk for the 
                month by the producer.
  (c) Continuation of Reductions.--The largest level of payment 
reduction required under paragraph (1), (2), or (3) of subsection (b) 
shall be continued for each month until the Secretary suspends the 
stabilization program and terminates payment reductions in accordance 
with section 1436.
  (d) Payment Reduction Exception.--Notwithstanding any preceding 
subsection of this section, a handler shall make no payment reductions 
for a dairy producer for a month if the producer's milk marketings for 
the month are equal to or less than the percentage of the stabilization 
program base applicable to the producer under paragraph (1), (2), or 
(3) of subsection (b).

SEC. 1435. REMITTING MONIES TO THE SECRETARY AND USE OF MONIES.

  (a) Remitting Monies.--As soon as practicable after the end of each 
month during which payment reductions are in effect under the 
stabilization program, each handler shall remit to the Secretary an 
amount equal to the amount by which payments to participating dairy 
producers are reduced by the handler under section 1434.
  (b) Deposit of Monies.--All monies received under subsection (a) 
shall be available to the Secretary, without further appropriation and 
until expended, for use or transfer as provided in subsection (c).
  (c) Use of Monies.--
          (1) Availability for certain commodity donations.--Within 
        three months of the receipt of monies under subsection (a), the 
        Secretary shall obligate the monies for the purpose of--
                  (A) purchasing dairy products for donation to food 
                banks and other programs that the Secretary determines 
                appropriate; and
                  (B) expanding consumption and building demand for 
                dairy products.
          (2) No duplication of effort.--The Secretary shall ensure 
        that expenditures under paragraph (1) are compatible with, and 
        do not duplicate, programs supported by the dairy research and 
        promotion activities conducted under the Dairy Production 
        Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).
          (3) Accounting.--The Secretary shall keep an accurate account 
        of all monies obligated under paragraph (1).
  (d) Annual Report.--Not later than December 31 of each year that the 
stabilization program is in effect, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that provides an accurate accounting of--
          (1) the monies received by the Secretary during the preceding 
        fiscal year under subsection (a); and
          (2) all expenditures made by the Secretary under subsection 
        (b) during the preceding fiscal year.
  (e) Enforcement.--If a participating dairy producer or handler fails 
to remit or collect the amounts by which payments to participating 
dairy producers are reduced under section 1434, the producer or handler 
responsible for the failure shall be liable to the Secretary for the 
amount that should have been remitted or collected, plus interest. In 
addition to the enforcement authorities available under section 1437, 
the Secretary may enforce this subsection in the courts of the United 
States.

SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.

  (a) Determination of Prices.--For purposes of this section:
          (1) The price in the United States for cheddar cheese and 
        nonfat dry milk shall be determined by the Secretary.
          (2) The world price of cheddar cheese and skim milk powder 
        shall be determined by the Secretary.
  (b) Initial Suspension Thresholds.--The Secretary shall announce that 
the stabilization program shall be suspended whenever the Secretary 
determines that--
          (1) the actual dairy producer margin is greater than $6.00 
        per hundredweight of milk for two consecutive months;
          (2) the dairy producer margin is equal to or less than $6.00 
        (but greater than $5.00) for two consecutive months, and during 
        the same two consecutive months--
                  (A) the price in the United States for cheddar cheese 
                is equal to or greater than the world price of cheddar 
                cheese; or
                  (B) the price in the United States for nonfat dry 
                milk is equal to or greater than the world price of 
                skim milk powder;
          (3) the dairy producer margin is equal to or less than $5.00 
        (but greater than $4.00) for two consecutive months, and during 
        the same two consecutive months--
                  (A) the price in the United States for cheddar cheese 
                is more than 5 percent above the world price of cheddar 
                cheese; or
                  (B) the price in the United States for nonfat dry 
                milk is more than 5 percent above the world price of 
                skim milk powder; or
          (4) the dairy producer margin is equal to or less than $4.00 
        for two consecutive months, and during the same two consecutive 
        months--
                  (A) the price in the United States for cheddar cheese 
                is more than 7 percent above the world price of cheddar 
                cheese; or
                  (B) the price in the United States for nonfat dry 
                milk is more than 7 percent above the world price of 
                skim milk powder.
  (c) Enhanced Suspension Thresholds.--If the stabilization program is 
not suspended pursuant to subsection (b) for six consecutive months or 
more, the stabilization program shall be suspended whenever the 
Secretary determines that--
          (1) the actual dairy producer margin is greater than $6.00 
        per hundredweight of milk for two consecutive months;
          (2) the dairy producer margin is equal to or less than $6.00 
        (but greater than $5.00) for two consecutive months, and during 
        the same two consecutive months--
                  (A) the price in the United States for cheddar cheese 
                is not less than 97 percent of the world price of 
                cheddar cheese; or
                  (B) the price in the United States for non-fat dry 
                milk is not less than 97 percent of the world price of 
                skim milk powder;
          (3) the dairy producer margin is equal to or less than $5.00 
        (but greater than $4.00) for two consecutive months, and during 
        the same two consecutive months--
                  (A) the price in the United States for cheddar cheese 
                is more than 3 percent above the world price of cheddar 
                cheese; or
                  (B) the price in the United States for non fat dry 
                milk is more than 3 percent above the world price of 
                skim milk powder; or
          (4) the dairy producer margin is equal to or less than $4.00 
        for two consecutive months, and during the same two consecutive 
        months--
                  (A) the price in the United States for cheddar cheese 
                is more than 6 percent above the world price of cheddar 
                cheese; or
                  (B) the price in the United States for non fat dry 
                milk is more than 6 percent above the world price of 
                skim milk powder.
  (d) Implementation by Handlers.--Effective on the day after the date 
of the announcement by the Secretary under subsection (b) or (c) of the 
suspension of the stabilization program, the handler shall cease 
reducing payments to participating dairy producers under the 
stabilization program.
  (e) Condition on Resumption of Stabilization Program.--Upon the 
announcement by the Secretary under subsection (b) or (c) that the 
stabilization program has been suspended, the stabilization program may 
not be implemented again until, at the earliest--
          (1) two months have passed, beginning on the first day of the 
        month immediately following the announcement by the Secretary; 
        and
          (2) the conditions of section 1432(a) are again met.

SEC. 1437. ENFORCEMENT.

  (a) Unlawful Act.--It shall be unlawful and a violation of the this 
subpart for any person subject to the stabilization program to 
willfully fail or refuse to provide, or delay the timely reporting of, 
accurate information and remittance of funds to the Secretary in 
accordance with this subpart.
  (b) Order.--After providing notice and opportunity for a hearing to 
an affected person, the Secretary may issue an order against any person 
to cease and desist from continuing any violation of this subpart.
  (c) Appeal.--An order of the Secretary under subsection (b) shall be 
final and conclusive unless an affected person files an appeal of the 
order of the Secretary in United States district court not later than 
30 days after the date of the issuance of the order. A finding of the 
Secretary in the order shall be set aside only if the finding is not 
supported by substantial evidence.
  (d) Noncompliance With Order.--If a person subject to this subpart 
fails to obey an order issued under subsection (b) after the order has 
become final and unappealable, or after the appropriate United States 
district court has entered a final judgment in favor of the Secretary, 
the United States may apply to the appropriate United States district 
court for enforcement of the order. If the court determines that the 
order was lawfully made and duly served and that the person violated 
the order, the court shall enforce the order.

SEC. 1438. AUDIT REQUIREMENTS.

  (a) Audits of Producer and Handler Compliance.--
          (1) Audits authorized.--If determined by the Secretary to be 
        necessary to ensure compliance by participating dairy producers 
        and handlers with the stabilization program, the Secretary may 
        conduct periodic audits of participating dairy producers and 
        handlers.
          (2) Sample of dairy producers.--Any audit conducted under 
        this subsection shall include, at a minimum, investigation of a 
        statistically valid and random sample of participating dairy 
        producers.
  (b) Submission of Results.--The Secretary shall submit the results of 
any audit conducted under subsection (a) to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and include such 
recommendations as the Secretary considers appropriate regarding the 
stabilization program.

                Subpart C--Commodity Credit Corporation

SEC. 1451. USE OF COMMODITY CREDIT CORPORATION.

  The Secretary shall use the funds, facilities, and the authorities of 
the Commodity Credit Corporation to carry out this part.

                   Subpart D--Initiation and Duration

SEC. 1461. RULEMAKING.

  (a) Procedure.--The promulgation of regulations for the initiation of 
the margin protection program and the stabilization program, and for 
administration of such programs, shall be made without regard to--
          (1) chapter 35 of title 44, United States Code (commonly 
        known as the Paperwork Reduction Act);
          (2) 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
          (3) the notice and comment provisions of section 553 of title 
        5, United States Code.
  (b) Congressional Review of Agency Rulemaking.--In carrying out 
subsection (a), the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.

SEC. 1462. DURATION.

  The margin protection program and the stabilization program shall end 
on December 31, 2017.

  PART II--REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS

SEC. 1481. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK INCOME LOSS 
                    CONTRACT PROGRAMS.

  (a) Repeal of Dairy Product Price Support Program.--Section 1501 of 
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is 
repealed.
  (b) Repeal of Milk Income Loss Contract Program.--Section 1506 of the 
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.

SEC. 1482. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.

  (a) Repeal.--Section 153 of the Food Security Act of 1985 (15 U.S.C. 
713a-14) is repealed.
  (b) Conforming Amendments.--Section 902(2) of the Trade Sanctions 
Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is 
amended--
          (1) by striking subparagraph (D); and
          (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (D) and (E), respectively.

SEC. 1483. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.

  Section 1502(e) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8772(e)) is amended--
          (1) in paragraph (1), by striking ``2012'' and inserting 
        ``2017''; and
          (2) in paragraph (2), by striking ``2015'' and inserting 
        ``2020''.

SEC. 1484. EXTENSION OF DAIRY INDEMNITY PROGRAM.

  Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking 
``2012'' and inserting ``2017''.

SEC. 1485. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM.

  Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 
(7 U.S.C. 4504(e)(2)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 1486. REPEAL OF FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

  Section 1509 of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 122 Stat. 1726) is repealed.

                        PART III--EFFECTIVE DATE

SEC. 1491. EFFECTIVE DATE.

  This subtitle and the amendments made by this subtitle shall take 
effect on October 1, 2012.

   Subtitle E--Supplemental Agricultural Disaster Assistance Programs

SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

  (a) Definitions.--In this section:
          (1) Eligible producer on a farm.--
                  (A) In general.--The term ``eligible producer on a 
                farm'' means an individual or entity described in 
                subparagraph (B) that, as determined by the Secretary, 
                assumes the production and market risks associated with 
                the agricultural production of crops or livestock.
                  (B) Description.--An individual or entity referred to 
                in subparagraph (A) is--
                          (i) a citizen of the United States;
                          (ii) a resident alien;
                          (iii) a partnership of citizens of the United 
                        States; or
                          (iv) a corporation, limited liability 
                        corporation, or other farm organizational 
                        structure organized under State law.
          (2) Farm-raised fish.--The term ``farm-raised fish'' means 
        any aquatic species that is propagated and reared in a 
        controlled environment.
          (3) Livestock.--The term ``livestock'' includes--
                  (A) cattle (including dairy cattle);
                  (B) bison;
                  (C) poultry;
                  (D) sheep;
                  (E) swine;
                  (F) horses; and
                  (G) other livestock, as determined by the Secretary.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
  (b) Livestock Indemnity Payments.--
          (1) Payments.--For each of the fiscal years 2012 through 
        2017, the Secretary shall use such sums as are necessary of the 
        funds of the Commodity Credit Corporation to make livestock 
        indemnity payments to eligible producers on farms that have 
        incurred livestock death losses in excess of the normal 
        mortality, as determined by the Secretary, due to--
                  (A) attacks by animals reintroduced into the wild by 
                the Federal Government or protected by Federal law, 
                including wolves and avian predators; or
                  (B) adverse weather, as determined by the Secretary, 
                during the calendar year, including losses due to 
                hurricanes, floods, blizzards, disease, wildfires, 
                extreme heat, and extreme cold.
          (2) Payment rates.--Indemnity payments to an eligible 
        producer on a farm under paragraph (1) shall be made at a rate 
        of 75 percent of the market value of the applicable livestock 
        on the day before the date of death of the livestock, as 
        determined by the Secretary.
          (3) Special rule for payments made due to disease.--The 
        Secretary shall ensure that payments made to an eligible 
        producer under paragraph (1) are not made for the same 
        livestock losses for which compensation is provided pursuant to 
        section 10407(d) of the Animal Health Protection Act (7 U.S.C. 
        8306(d)).
  (c) Livestock Forage Disaster Program.--
          (1) Definitions.--In this subsection:
                  (A) Covered livestock.--
                          (i) In general.--Except as provided in clause 
                        (ii), the term ``covered livestock'' means 
                        livestock of an eligible livestock producer 
                        that, during the 60 days prior to the beginning 
                        date of a qualifying drought or fire condition, 
                        as determined by the Secretary, the eligible 
                        livestock producer--
                                  (I) owned;
                                  (II) leased;
                                  (III) purchased;
                                  (IV) entered into a contract to 
                                purchase;
                                  (V) is a contract grower; or
                                  (VI) sold or otherwise disposed of 
                                due to qualifying drought conditions 
                                during--
                                          (aa) the current production 
                                        year; or
                                          (bb) subject to paragraph 
                                        (3)(B)(ii), 1 or both of the 2 
                                        production years immediately 
                                        preceding the current 
                                        production year.
                          (ii) Exclusion.--The term ``covered 
                        livestock'' does not include livestock that 
                        were or would have been in a feedlot, on the 
                        beginning date of the qualifying drought or 
                        fire condition, as a part of the normal 
                        business operation of the eligible livestock 
                        producer, as determined by the Secretary.
                  (B) Drought monitor.--The term ``drought monitor'' 
                means a system for classifying drought severity 
                according to a range of abnormally dry to exceptional 
                drought, as defined by the Secretary.
                  (C) Eligible livestock producer.--
                          (i) In general.--The term ``eligible 
                        livestock producer'' means an eligible producer 
                        on a farm that--
                                  (I) is an owner, cash or share 
                                lessee, or contract grower of covered 
                                livestock that provides the pastureland 
                                or grazing land, including cash-leased 
                                pastureland or grazing land, for the 
                                livestock;
                                  (II) provides the pastureland or 
                                grazing land for covered livestock, 
                                including cash-leased pastureland or 
                                grazing land that is physically located 
                                in a county affected by drought;
                                  (III) certifies grazing loss; and
                                  (IV) meets all other eligibility 
                                requirements established under this 
                                subsection.
                          (ii) Exclusion.--The term ``eligible 
                        livestock producer'' does not include an owner, 
                        cash or share lessee, or contract grower of 
                        livestock that rents or leases pastureland or 
                        grazing land owned by another person on a rate-
                        of-gain basis.
                  (D) Normal carrying capacity.--The term ``normal 
                carrying capacity'', with respect to each type of 
                grazing land or pastureland in a county, means the 
                normal carrying capacity, as determined under paragraph 
                (3)(D)(i), that would be expected from the grazing land 
                or pastureland for livestock during the normal grazing 
                period, in the absence of a drought or fire that 
                diminishes the production of the grazing land or 
                pastureland.
                  (E) Normal grazing period.--The term ``normal grazing 
                period'', with respect to a county, means the normal 
                grazing period during the calendar year for the county, 
                as determined under paragraph (3)(D)(i).
          (2) Program.--For each of the fiscal years 2012 through 2017, 
        the Secretary shall use such sums as are necessary of the funds 
        of the Commodity Credit Corporation to provide compensation for 
        losses to eligible livestock producers due to grazing losses 
        for covered livestock due to--
                  (A) a drought condition, as described in paragraph 
                (3); or
                  (B) fire, as described in paragraph (4).
          (3) Assistance for losses due to drought conditions.--
                  (A) Eligible losses.--
                          (i) In general.--An eligible livestock 
                        producer may receive assistance under this 
                        subsection only for grazing losses for covered 
                        livestock that occur on land that--
                                  (I) is native or improved pastureland 
                                with permanent vegetative cover; or
                                  (II) is planted to a crop planted 
                                specifically for the purpose of 
                                providing grazing for covered 
                                livestock.
                          (ii) Exclusions.--An eligible livestock 
                        producer may not receive assistance under this 
                        subsection for grazing losses that occur on 
                        land used for haying or grazing under the 
                        conservation reserve program established under 
                        subchapter B of chapter 1 of subtitle D of 
                        title XII of the Food Security Act of 1985 (16 
                        U.S.C. 3831 et seq.).
                  (B) Monthly payment rate.--
                          (i) In general.--Except as provided in clause 
                        (ii), the payment rate for assistance under 
                        this paragraph for 1 month shall, in the case 
                        of drought, be equal to 60 percent of the 
                        lesser of--
                                  (I) the monthly feed cost for all 
                                covered livestock owned or leased by 
                                the eligible livestock producer, as 
                                determined under subparagraph (C); or
                                  (II) the monthly feed cost calculated 
                                by using the normal carrying capacity 
                                of the eligible grazing land of the 
                                eligible livestock producer.
                          (ii) Partial compensation.--In the case of an 
                        eligible livestock producer that sold or 
                        otherwise disposed of covered livestock due to 
                        drought conditions in 1 or both of the 2 
                        production years immediately preceding the 
                        current production year, as determined by the 
                        Secretary, the payment rate shall be 80 percent 
                        of the payment rate otherwise calculated in 
                        accordance with clause (i).
                  (C) Monthly feed cost.--
                          (i) In general.--The monthly feed cost shall 
                        equal the product obtained by multiplying--
                                  (I) 30 days;
                                  (II) a payment quantity that is equal 
                                to the feed grain equivalent, as 
                                determined under clause (ii); and
                                  (III) a payment rate that is equal to 
                                the corn price per pound, as determined 
                                under clause (iii).
                          (ii) Feed grain equivalent.--For purposes of 
                        clause (i)(II), the feed grain equivalent shall 
                        equal--
                                  (I) in the case of an adult beef cow, 
                                15.7 pounds of corn per day; or
                                  (II) in the case of any other type of 
                                weight of livestock, an amount 
                                determined by the Secretary that 
                                represents the average number of pounds 
                                of corn per day necessary to feed the 
                                livestock.
                          (iii) Corn price per pound.--For purposes of 
                        clause (i)(III), the corn price per pound shall 
                        equal the quotient obtained by dividing--
                                  (I) the higher of--
                                          (aa) the national average 
                                        corn price per bushel for the 
                                        12-month period immediately 
                                        preceding March 1 of the year 
                                        for which the disaster 
                                        assistance is calculated; or
                                          (bb) the national average 
                                        corn price per bushel for the 
                                        24-month period immediately 
                                        preceding that March 1; by
                                  (II) 56.
                  (D) Normal grazing period and drought monitor 
                intensity.--
                          (i) Fsa county committee determinations.--
                                  (I) In general.--The Secretary shall 
                                determine the normal carrying capacity 
                                and normal grazing period for each type 
                                of grazing land or pastureland in the 
                                county served by the applicable 
                                committee.
                                  (II) Changes.--No change to the 
                                normal carrying capacity or normal 
                                grazing period established for a county 
                                under subclause (I) shall be made 
                                unless the change is requested by the 
                                appropriate State and county Farm 
                                Service Agency committees.
                          (ii) Drought intensity.--
                                  (I) D2.--An eligible livestock 
                                producer that owns or leases grazing 
                                land or pastureland that is physically 
                                located in a county that is rated by 
                                the U.S. Drought Monitor as having a D2 
                                (severe drought) intensity in any area 
                                of the county for at least 8 
                                consecutive weeks during the normal 
                                grazing period for the county, as 
                                determined by the Secretary, shall be 
                                eligible to receive assistance under 
                                this paragraph in an amount equal to 1 
                                monthly payment using the monthly 
                                payment rate determined under 
                                subparagraph (B).
                                  (II) D3.--An eligible livestock 
                                producer that owns or leases grazing 
                                land or pastureland that is physically 
                                located in a county that is rated by 
                                the U.S. Drought Monitor as having at 
                                least a D3 (extreme drought) intensity 
                                in any area of the county at any time 
                                during the normal grazing period for 
                                the county, as determined by the 
                                Secretary, shall be eligible to receive 
                                assistance under this paragraph--
                                          (aa) in an amount equal to 2 
                                        monthly payments using the 
                                        monthly payment rate determined 
                                        under subparagraph (B); or
                                          (bb) if the county is rated 
                                        as having a D3 (extreme 
                                        drought) intensity in any area 
                                        of the county for at least 4 
                                        weeks during the normal grazing 
                                        period for the county, or is 
                                        rated as having a D4 
                                        (exceptional drought) intensity 
                                        in any area of the county at 
                                        any time during the normal 
                                        grazing period, in an amount 
                                        equal to 3 monthly payments 
                                        using the monthly payment rate 
                                        determined under subparagraph 
                                        (B).
          (4) Assistance for losses due to fire on public managed 
        land.--
                  (A) In general.--An eligible livestock producer may 
                receive assistance under this paragraph only if--
                          (i) the grazing losses occur on rangeland 
                        that is managed by a Federal agency; and
                          (ii) the eligible livestock producer is 
                        prohibited by the Federal agency from grazing 
                        the normal permitted livestock on the managed 
                        rangeland due to a fire.
                  (B) Payment rate.--The payment rate for assistance 
                under this paragraph shall be equal to 50 percent of 
                the monthly feed cost for the total number of livestock 
                covered by the Federal lease of the eligible livestock 
                producer, as determined under paragraph (3)(C).
                  (C) Payment duration.--
                          (i) In general.--Subject to clause (ii), an 
                        eligible livestock producer shall be eligible 
                        to receive assistance under this paragraph for 
                        the period--
                                  (I) beginning on the date on which 
                                the Federal agency excludes the 
                                eligible livestock producer from using 
                                the managed rangeland for grazing; and
                                  (II) ending on the last day of the 
                                Federal lease of the eligible livestock 
                                producer.
                          (ii) Limitation.--An eligible livestock 
                        producer may only receive assistance under this 
                        paragraph for losses that occur on not more 
                        than 180 days per year.
          (5) No duplicative payments.--An eligible livestock producer 
        may elect to receive assistance for grazing or pasture feed 
        losses due to drought conditions under paragraph (3) or fire 
        under paragraph (4), but not both for the same loss, as 
        determined by the Secretary.
  (d) Emergency Assistance for Livestock, Honey Bees, and Farm-raised 
Fish.--
          (1) In general.--For each of the fiscal years 2012 through 
        2017, the Secretary shall use not more than $20,000,000 of the 
        funds of the Commodity Credit Corporation to provide emergency 
        relief to eligible producers of livestock, honey bees, and 
        farm-raised fish to aid in the reduction of losses due to 
        disease (including cattle tick fever), adverse weather, or 
        other conditions, such as blizzards and wildfires, as 
        determined by the Secretary, that are not covered under 
        subsection (b) or (c).
          (2) Use of funds.--Funds made available under this subsection 
        shall be used to reduce losses caused by feed or water 
        shortages, disease, or other factors as determined by the 
        Secretary.
          (3) Availability of funds.--Any funds made available under 
        this subsection shall remain available until expended.
  (e) Tree Assistance Program.--
          (1) Definitions.--In this subsection:
                  (A) Eligible orchardist.--The term ``eligible 
                orchardist'' means a person that produces annual crops 
                from trees for commercial purposes.
                  (B) Natural disaster.--The term ``natural disaster'' 
                means plant disease, insect infestation, drought, fire, 
                freeze, flood, earthquake, lightning, or other 
                occurrence, as determined by the Secretary.
                  (C) Nursery tree grower.--The term ``nursery tree 
                grower'' means a person who produces nursery, 
                ornamental, fruit, nut, or Christmas trees for 
                commercial sale, as determined by the Secretary.
                  (D) Tree.--The term ``tree'' includes a tree, bush, 
                and vine.
          (2) Eligibility.--
                  (A) Loss.--Subject to subparagraph (B), for each of 
                the fiscal years 2012 through 2017, the Secretary shall 
                use such sums as are necessary of the funds of the 
                Commodity Credit Corporation to provide assistance--
                          (i) under paragraph (3) to eligible 
                        orchardists and nursery tree growers that 
                        planted trees for commercial purposes but lost 
                        the trees as a result of a natural disaster, as 
                        determined by the Secretary; and
                          (ii) under paragraph (3)(B) to eligible 
                        orchardists and nursery tree growers that have 
                        a production history for commercial purposes on 
                        planted or existing trees but lost the trees as 
                        a result of a natural disaster, as determined 
                        by the Secretary.
                  (B) Limitation.--An eligible orchardist or nursery 
                tree grower shall qualify for assistance under 
                subparagraph (A) only if the tree mortality of the 
                eligible orchardist or nursery tree grower, as a result 
                of damaging weather or related condition, exceeds 15 
                percent (adjusted for normal mortality).
          (3) Assistance.--Subject to paragraph (4), the assistance 
        provided by the Secretary to eligible orchardists and nursery 
        tree growers for losses described in paragraph (2) shall 
        consist of--
                  (A)(i) reimbursement of 65 percent of the cost of 
                replanting trees lost due to a natural disaster, as 
                determined by the Secretary, in excess of 15 percent 
                mortality (adjusted for normal mortality); or
                  (ii) at the option of the Secretary, sufficient 
                seedlings to reestablish a stand; and
                  (B) reimbursement of 50 percent of the cost of 
                pruning, removal, and other costs incurred by an 
                eligible orchardist or nursery tree grower to salvage 
                existing trees or, in the case of tree mortality, to 
                prepare the land to replant trees as a result of damage 
                or tree mortality due to a natural disaster, as 
                determined by the Secretary, in excess of 15 percent 
                damage or mortality (adjusted for normal tree damage 
                and mortality).
          (4) Limitations on assistance.--
                  (A) Definitions of legal entity and person.--In this 
                paragraph, the terms ``legal entity'' and ``person'' 
                have the meaning given those terms in section 1001(a) 
                of the Food Security Act of 1985 (7 U.S.C. 1308(a)).
                  (B) Amount.--The total amount of payments received, 
                directly or indirectly, by a person or legal entity 
                (excluding a joint venture or general partnership) 
                under this subsection may not exceed $125,000 for any 
                crop year, or an equivalent value in tree seedlings.
                  (C) Acres.--The total quantity of acres planted to 
                trees or tree seedlings for which a person or legal 
                entity shall be entitled to receive payments under this 
                subsection may not exceed 500 acres.
  (f) Payment Limitations.--
          (1) Definitions of legal entity and person.--In this 
        subsection, the terms ``legal entity'' and ``person'' have the 
        meaning given those terms in section 1001(a) of the Food 
        Security Act of 1985 (7 U.S.C. 1308(a).
          (2) Amount.--The total amount of disaster assistance payments 
        received, directly or indirectly, by a person or legal entity 
        (excluding a joint venture or general partnership) under this 
        section (excluding payments received under subsection (e)) may 
        not exceed $125,000 for any crop year.
          (3) Direct attribution.--Subsections (e) and (f) of section 
        1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any 
        successor provisions relating to direct attribution shall apply 
        with respect to assistance provided under this section.

                       Subtitle F--Administration

SEC. 1601. ADMINISTRATION GENERALLY.

  (a) Use of Commodity Credit Corporation.--The Secretary of 
Agriculture shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to carry out this title.
  (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
  (c) Regulations.--
          (1) In general.--Except as otherwise provided in this 
        subsection, not later than 90 days after the date of enactment 
        of this Act, the Secretary and the Commodity Credit 
        Corporation, as appropriate, shall promulgate such regulations 
        as are necessary to implement this title and the amendments 
        made by this title.
          (2) Procedure.--The promulgation of the regulations and 
        administration of this title and the amendments made by this 
        title and sections 11003 and 11016 of this Act shall be made 
        without regard to--
                  (A) the notice and comment provisions of section 553 
                of title 5, United States Code;
                  (B) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act''); 
                and
                  (C) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking.
          (3) Congressional review of agency rulemaking.--In carrying 
        out this subsection, the Secretary shall use the authority 
        provided under section 808 of title 5, United States Code.
  (d) Adjustment Authority Related to Trade Agreements Compliance.--
          (1) Required determination; adjustment.--If the Secretary 
        determines that expenditures under this title that are subject 
        to the total allowable domestic support levels under the 
        Uruguay Round Agreements (as defined in section 2 of the 
        Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed the 
        allowable levels for any applicable reporting period, the 
        Secretary shall, to the maximum extent practicable, make 
        adjustments in the amount of the expenditures during that 
        period to ensure that the expenditures do not exceed the 
        allowable levels.
          (2) Congressional notification.--Before making any adjustment 
        under paragraph (1), the Secretary shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report describing the determination made under that 
        paragraph and the extent of the adjustment to be made.

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 
2013 through 2017 crops of covered commodities (as defined in section 
1104), cotton, and sugar and shall not be applicable to milk during the 
period beginning on the date of enactment of this Act through December 
31, 2017:
          (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 2013 through 
2017 crops of covered commodities (as defined in section 1104), cotton, 
and sugar and shall not be applicable to milk during the period 
beginning on the date of enactment of this Act and through December 31, 
2017:
          (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, 1340), shall not be applicable to 
the crops of wheat planted for harvest in the calendar years 2013 
through 2017.

SEC. 1603. PAYMENT LIMITATIONS.

  (a) In General.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308) is amended by striking subsections (b) and (c) and 
inserting the following:
  ``(b) Limitation on Payments for Covered Commodities (other Than 
Peanuts).--The total amount of payments received, directly or 
indirectly, by a person or legal entity (except a joint venture or 
general partnership) for any crop year under subtitle A of title I of 
the Federal Agriculture Reform and Risk Management Act of 2012 for 1 or 
more covered commodities (other than peanuts) may not exceed $125,000.
  ``(c) Limitation on Payments for Peanuts.--The total amount of 
payments received, directly or indirectly, by a person or legal entity 
(except a joint venture or general partnership) for any crop year under 
subtitle A of title I of the Federal Agriculture Reform and Risk 
Management Act of 2012 for peanuts may not exceed $125,000.''.
  (b) Conforming Amendments.--
          (1) Section 1001(f) of the Food Security Act of 1985 (7 
        U.S.C. 1308(f)) is amended by striking ``or title XII'' each 
        place it appears in paragraphs (5)(A) and (6)(A) and inserting 
        ``, title I of the Federal Agriculture Reform and Risk 
        Management Act of 2012, or title XII''.
          (2) Section 1001C(a) of the Food Security Act of 1985 (7 
        U.S.C. 1308-3(a)) is amended by inserting ``title I of the 
        Federal Agriculture Reform and Risk Management Act of 2012,'' 
        after ``2008,''.
  (c) Application.--The amendments made by this section shall apply 
beginning with the 2013 crop year.

SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

  (a) Limitations and Covered Benefits.--Section 1001D(b) of the Food 
Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
          (1) in the subsection heading, by striking ``Limitations'' 
        and inserting ``Limitations on Commodity and Conservation 
        Programs'';
          (2) by striking paragraphs (1) and (2) and inserting the 
        following new paragraphs:
          ``(1) Limitation.--Notwithstanding any other provision of 
        law, a person or legal entity shall not be eligible to receive 
        any benefit described in paragraph (2) during a crop, fiscal, 
        or program year, as appropriate, if the average adjusted gross 
        income of the person or legal entity exceeds $950,000.
          ``(2) Covered benefits.--Paragraph (1) applies with respect 
        to a payment or benefit under section 1107, subtitle B or E of 
        title I, or title II of the Federal Agriculture Reform and Risk 
        Management Act of 2012, title II of the Farm Security and Rural 
        Investment Act of 2002, title II of the Food, Conservation, and 
        Energy Act of 2008, title XII of the Food Security Act of 1985, 
        section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 
        1524(b)), or section 196 of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7333).''.
  (b) Elimination of Unused Definitions.--Paragraph (1) of section 
1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(a)) is 
amended to read as follows:
          ``(1) Average adjusted gross income.--In this section, 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.''.
  (c) Income Determination.--Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308-3a) is amended--
          (1) by striking subsection (c); and
          (2) by redesignating subsections (d), (e), and (f) as 
        subsections (c), (d), and (e), respectively.
  (d) Conforming Amendments.--Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308-3a) is amended--
          (1) in subsection (a)(2)--
                  (A) by striking ``subparagraph (A) or (B) of''; and
                  (B) by striking ``, the average adjusted gross farm 
                income, and the average adjusted gross nonfarm 
                income'';
          (2) in subsection (a)(3), by striking ``, average adjusted 
        gross farm income, and average adjusted gross nonfarm income'' 
        both places it appears;
          (3) in subsection (c) (as redesignated by subsection (c)(2) 
        of this section)--
                  (A) in paragraph (1), by striking ``, average 
                adjusted gross farm income, and average adjusted gross 
                nonfarm income'' both places it appears; and
                  (B) in paragraph (2), by striking ``paragraphs (1)(C) 
                and (2)(B) of subsection (b)'' and inserting 
                ``subsection (b)(2)''; and
          (4) in subsection (d) (as redesignated by subsection (c)(2) 
        of this section)--
                  (A) by striking ``paragraphs (1)(C) and (2)(B) of 
                subsection (b)'' and inserting ``subsection (b)(2)''; 
                and
                  (B) by striking ``, average adjusted gross farm 
                income, or average adjusted gross nonfarm income''.
  (e) Effective Period.--Subsection (e) of section 1001D of the Food 
Security Act of 1985 (7 U.S.C. 1308-3a), as redesignated by subsection 
(c)(2) of this section, is amended by striking ``2009 through 2012'' 
and inserting ``2013 through 2017''.
  (f) Limitation on Applicability.--Section 1001(d) of the Food 
Security Act of 1985 (7 U.S.C. 1308) is amended by inserting before the 
period at the end the following: ``or title I of the Federal 
Agriculture Reform and Risk Management Act of 2012''.
  (g) Transition.--Section 1001D of the Food Security Act of 1985 (7 
U.S.C. 1308-3a), as in effect on the day before the date of the 
enactment of this Act, shall apply with respect to the 2012 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 so 
in effect on that day).

SEC. 1605. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

  Section 1621(d) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8792(d)) is amended by striking ``2012'' and inserting ``2017''.

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 Food, 
Conservation, and Energy Act of 2008'' each place it appears and 
inserting ``title I of the Food, Conservation, and Energy Act of 2008 
(7 U.S.C. 8702 et seq.), and title I of the Federal Agriculture Reform 
and Risk Management Act of 2012''.

SEC. 1607. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER 
                    FARM COMMODITY PROGRAMS.

  (a) Reconciliation.--At least twice each year, the Secretary shall 
reconcile social security numbers of all individuals who receive 
payments under this title, whether directly or indirectly, with the 
Commissioner of Social Security to determined if the individuals are 
alive.
  (b) Preclusion.--The Secretary shall preclude the issuance of 
payments to, and on behalf of, deceased individuals that were not 
eligible for payments.

SEC. 1608. TECHNICAL CORRECTIONS.

  (a) Missing Punctuation.--Section 359f(c)(1)(B) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding 
a period at the end.
  (b) Erroneous Cross Reference.--
          (1) Amendment.--Section 1603(g) of the Food, Conservation, 
        and Energy Act of 2008 (Public Law 110-246; 122 Stat. 1739) is 
        amended in paragraphs (2) through (6) and the amendments made 
        by those paragraphs by striking ``1703(a)'' each place it 
        appears and inserting ``1603(a)''.
          (2) Effective date.--This subsection and the amendments made 
        by this subsection take effect as if included in the Food, 
        Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
        Stat. 1651).
  (c) Continued Applicability of Appropriations General Provision.--
Section 767 of division A of Public Law 108-7 (7 U.S.C. 7911 note; 117 
Stat. 48) is amended--
          (1) in subsection (a)--
                  (A) by striking ``sections 1101 and 1102 of Public 
                Law 107-171'' and inserting ``subtitle A of title I of 
                the Federal Agriculture Reform and Risk Management Act 
                of 2012''; and
                  (B) by striking ``such section 1102'' and inserting 
                ``such subtitle''; and
          (2) by striking subsection (b) and inserting the following 
        new subsection:
  ``(b) This section, as amended by section 1608(c) of the Federal 
Agriculture Reform and Risk Management Act of 2012, shall take effect 
beginning with the 2013 crop year.''.

SEC. 1609. 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. 1610. 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. 1611. 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. 1612. IMPLEMENTATION.

  (a) Streamlining.--In implementing this title, the Secretary shall, 
to the maximum extent practicable--
          (1) seek to reduce administrative burdens and costs to 
        producers by streamlining and reducing paperwork, forms, and 
        other administrative requirements;
          (2) improve coordination, information sharing, and 
        administrative work with the Risk Management Agency and the 
        Natural Resources Conservation Service; and
          (3) take advantage of new technologies to enhance efficiency 
        and effectiveness of program delivery to producers.
  (b) Maintenance of Base Acres and Payment Yields.--
          (1) In general.--The Secretary shall maintain through 
        September 30, 2017, for each covered commodity and upland 
        cotton, base acres and payment yields on a farm established 
        under--
                  (A)(i) in the case of covered commodities and upland 
                cotton, sections 1101 and 1102 of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 7911, 7912); and
                  (ii) in the case of peanuts, section 1302 of that Act 
                (7 U.S.C. 7952); and
                  (B)(i) in the case of covered commodities and upland 
                cotton, sections 1101 and 1102 of the Food, 
                Conservation, and Energy Act of 2008 (7 U.S.C. 8711, 
                8712); and
                  (ii) in the case of peanuts, section 1302 of that Act 
                (7 U.S.C. 8752).
          (2)  Special rule for long grain and medium grain rice.--
                  (A) In general.--The Secretary shall maintain 
                separate base acres for long grain rice and medium 
                grain rice.
                  (B) Limitation.--In carrying out this paragraph, the 
                Secretary shall use the same total base acres and 
                payment yields established with respect to rice under 
                sections 1108 of the Food, Conservation, and Energy Act 
                of 2008 (7 U.S.C. 8718), as in effect on the day before 
                the date of enactment of this Act, subject to any 
                adjustment under section 1105.
  (c) Implementation.--The Secretary shall make available to the Farm 
Service Agency to carry out this title $100,000,000.

                         TITLE II--CONSERVATION

                Subtitle A--Conservation Reserve Program

SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS OF CONSERVATION 
                    RESERVE PROGRAM.

  (a) Extension.--Section 1231(a) of the Food Security Act of 1985 (16 
U.S.C. 3831(a)) is amended by striking ``2012'' and inserting ``2017''.
  (b) Eligible Land.--Section 1231(b) of the Food Security Act of 1985 
(16 U.S.C. 3831(b)) is amended--
          (1) in paragraph (1)(B), by striking ``the date of enactment 
        of the Food, Conservation, and Energy Act of 2008'' and 
        inserting ``the date of the enactment of the Federal 
        Agriculture Reform and Risk Management Act of 2012'';
          (2) by striking paragraph (2) and redesignating paragraph (3) 
        as paragraph (2);
          (3) by inserting before paragraph (4) the following new 
        paragraph:
          ``(3) grasslands that--
                  ``(A) contain forbs or shrubland (including improved 
                rangeland and pastureland) for which grazing is the 
                predominant use;
                  ``(B) are located in an area historically dominated 
                by grasslands; and
                  ``(C) could provide habitat for animal and plant 
                populations of significant ecological value if the land 
                is retained in its current use or restored to a natural 
                condition;'';
          (4) in paragraph (4)(C), by striking ``filterstrips devoted 
        to trees or shrubs'' and inserting ``filterstrips or riparian 
        buffers devoted to trees, shrubs, or grasses''; and
          (5) by striking paragraph (5) and inserting the following new 
        paragraph:
          ``(5) the portion of land in a field not enrolled in the 
        conservation reserve in a case in which--
                  ``(A) more than 50 percent of the land in the field 
                is enrolled as a buffer or filterstrip, or more than 75 
                percent of the land in the field is enrolled as a 
                conservation practice other than as a buffer or 
                filterstrip; and
                  ``(B) the remainder of the field is--
                          ``(i) infeasible to farm; and
                          ``(ii) enrolled at regular rental rates.''.
  (c) Planting Status of Certain Land.--Section 1231(c) of the Food 
Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking ``if'' 
and all that follows through the period at the end and inserting ``if, 
during the crop year, the land was devoted to a conserving use.''.
  (d) Enrollment.--Subsection (d) of section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended to read as follows:
  ``(d) Enrollment.--
          ``(1) Maximum acreage enrolled.--The Secretary may maintain 
        in the conservation reserve at any one time during--
                  ``(A) fiscal year 2012, no more than 32,000,000 
                acres;
                  ``(B) fiscal year 2013, no more than 29,000,000 
                acres;
                  ``(C) fiscal year 2014, no more than 26,000,000 
                acres;
                  ``(D) fiscal year 2015, no more than 26,000,000 
                acres;
                  ``(E) fiscal year 2016, no more than 25,500,000 
                acres; and
                  ``(F) fiscal year 2017, no more than 25,000,000 
                acres.
          ``(2) Grasslands.--
                  ``(A) Limitation.--For purposes of applying the 
                limitations in paragraph (1), no more than 2,000,000 
                acres of the land described in subsection (b)(3) may be 
                enrolled in the program at any one time during the 2013 
                through 2017 fiscal years.
                  ``(B) Priority.--In enrolling acres under 
                subparagraph (A), the Secretary may give priority to 
                land with expiring conservation reserve program 
                contracts.
                  ``(C) Method of enrollment.--In enrolling acres under 
                subparagraph (A), the Secretary shall make the program 
                available to owners or operators of eligible land on a 
                continuous enrollment basis with one or more ranking 
                periods.''.
  (e) Duration of Contract.--Section 1231(e) of the Food Security Act 
of 1985 (16 U.S.C. 3831(e)) is amended by striking paragraphs (2) and 
(3) and inserting the following new paragraph:
          ``(2) Special rule for certain land.--In the case of land 
        devoted to hardwood trees, shelterbelts, windbreaks, or 
        wildlife corridors under a contract entered into under this 
        subchapter, the owner or operator of the land may, within the 
        limitations prescribed under paragraph (1), specify the 
        duration of the contract.''.
  (f) Conservation Priority Areas.--Section 1231(f) of the Food 
Security Act of 1985 (16 U.S.C. 3831(f)) is amended--
          (1) in paragraph (1), by striking ``watershed areas of the 
        Chesapeake Bay Region, the Great Lakes Region, the Long Island 
        Sound Region, and other'';
          (2) in paragraph (2), by striking ``watersheds.--Watersheds'' 
        and inserting ``areas.--Areas''; and
          (3) in paragraph (3), by striking ``a watershed's 
        designation--'' and all that follows through the period at the 
        end and inserting ``an area's designation if the Secretary 
        finds that the area no longer contains actual and significant 
        adverse water quality or habitat impacts related to 
        agricultural production activities.''.

SEC. 2002. FARMABLE WETLAND PROGRAM.

  (a) Extension.--Section 1231B(a)(1) of the Food Security Act of 1985 
(16 U.S.C. 3831b(a)(1)) is amended--
          (1) by striking ``2012'' and inserting ``2017''; and
          (2) by striking ``a program'' and inserting ``a farmable 
        wetland program''.
  (b) Eligible Acreage.--Section 1231B(b)(1)(B) of the Food Security 
Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking ``flow 
from a row crop agriculture drainage system'' and inserting ``surface 
and subsurface flow from row crop agricultural production''.
  (c) Acreage Limitation.--Section 1231B(c)(1)(B) of the Food Security 
Act of 1985 (16 U.S.C. 3831b(c)(1)(B)) is amended by striking 
``1,000,000'' and inserting ``750,000''.
  (d) Clerical Amendment.--The heading of section 1231B of the Food 
Security Act of 1985 (16 U.S.C. 3831b) is amended to read as follows: 
``farmable wetland program''.

SEC. 2003. DUTIES OF OWNERS AND OPERATORS.

  (a) Limitation on Harvesting, Grazing, or Commercial Use of Forage.--
Section 1232(a)(8) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)(8)) is amended by striking ``except that'' and all that follows 
through the semicolon at the end of the paragraph and inserting 
``except as provided in subsection (b) or (c) of section 1233;''.
  (b) Conservation Plan Requirements.--Subsection (b) of section 1232 
of the Food Security Act of 1985 (16 U.S.C. 3832) is amended to read as 
follows:
  ``(b) Conservation Plans.--The plan referred to in subsection (a)(1) 
shall set forth--
          ``(1) the conservation measures and practices to be carried 
        out by the owner or operator during the term of the contract; 
        and
          ``(2) the commercial use, if any, to be permitted on the land 
        during the term.''.
  (c) Rental Payment Reduction.--Section 1232 of the Food Security Act 
of 1985 (16 U.S.C. 3832) is amended by striking subsection (d).

SEC. 2004. DUTIES OF THE SECRETARY.

  Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is 
amended to read as follows:

``SEC. 1233. DUTIES OF THE SECRETARY.

  ``(a) Cost-share and Rental Payments.--In return for a contract 
entered into by an owner or operator under the conservation reserve 
program, the Secretary shall--
          ``(1) share the cost of carrying out the conservation 
        measures and practices set forth in the contract for which the 
        Secretary determines that cost sharing is appropriate and in 
        the public interest; and
          ``(2) for a period of years not in excess of the term of the 
        contract, pay an annual rental payment in an amount necessary 
        to compensate for--
                  ``(A) the conversion of highly erodible cropland or 
                other eligible lands normally devoted to the production 
                of an agricultural commodity on a farm or ranch to a 
                less intensive use;
                  ``(B) the retirement of any base history that the 
                owner or operator agrees to retire permanently; and
                  ``(C) the development and management of grasslands 
                for multiple natural resource conservation benefits, 
                including to soil, water, air, and wildlife.
  ``(b) Specified Activities Permitted.--The Secretary shall permit 
certain activities or commercial uses of land that is subject to a 
contract under the conservation reserve program in a manner that is 
consistent with a plan approved by the Secretary, as follows:
          ``(1) Harvesting, grazing, or other commercial use of the 
        forage in response to a drought or other emergency created by a 
        natural disaster, without any reduction in the rental rate.
          ``(2) Consistent with the conservation of soil, water 
        quality, and wildlife habitat (including habitat during nesting 
        seasons for birds in the area), and in exchange for a reduction 
        of not less than 25 percent in the annual rental rate for the 
        acres covered by the authorized activity--
                  ``(A) managed harvesting and other commercial use 
                (including the managed harvesting of biomass), except 
                that in permitting 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, such that 
                        the frequency is not more than once every three 
                        years;
                  ``(B) 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 identify the periods during 
                        which routine grazing may be conducted, such 
                        that the frequency is not more than once every 
                        two years, taking into consideration regional 
                        differences such as--
                                  ``(I) climate, soil type, and natural 
                                resources;
                                  ``(II) the number of years that 
                                should be required between routine 
                                grazing activities; and
                                  ``(III) how often during a year in 
                                which routine grazing is permitted that 
                                routine grazing should be allowed to 
                                occur; and
                  ``(C) the installation of wind turbines and 
                associated access, except that in permitting the 
                installation of wind turbines, the Secretary shall 
                determine the number and location of wind turbines that 
                may be installed, taking into account--
                          ``(i) the location, size, and other physical 
                        characteristics of the land;
                          ``(ii) the extent to which the land contains 
                        wildlife and wildlife habitat; and
                          ``(iii) the purposes of the conservation 
                        reserve program under this subchapter.
          ``(3) The intermittent and seasonal use of vegetative buffer 
        practices incidental to agricultural production on lands 
        adjacent to the buffer such that the permitted use does not 
        destroy the permanent vegetative cover.
  ``(c) Authorized Activities on Grasslands.--For eligible land 
described in section 1231(b)(3), the Secretary shall permit the 
following activities:
          ``(1) Common grazing practices, including maintenance and 
        necessary cultural practices, on the land in a manner that is 
        consistent with maintaining the viability of grassland, forb, 
        and shrub species appropriate to that locality.
          ``(2) Haying, mowing, or harvesting for seed production, 
        subject to appropriate restrictions during the nesting season 
        for critical bird species in the area.
          ``(3) Fire presuppression, fire-related rehabilitation, and 
        construction of fire breaks.
          ``(4) Grazing-related activities, such as fencing and 
        livestock watering.
  ``(d) Resource Conserving Use.--
          ``(1) In general.--Beginning on the date that is 1 year 
        before the date of termination of a contract under the program, 
        the Secretary shall allow an owner or operator to make 
        conservation and land improvements that facilitate maintaining 
        protection of enrolled land after expiration of the contract.
          ``(2) Conservation plan.--The Secretary shall require an 
        owner or operator carrying out the activities described in 
        paragraph (1) to develop and implement a conservation plan.
          ``(3) Re-enrollment prohibited.--Land improved under 
        paragraph (1) may not be re-enrolled in the conservation 
        reserve program for 5 years after the date of termination of 
        the contract.''.

SEC. 2005. PAYMENTS.

  (a) Trees, Windbreaks, Shelterbelts, and Wildlife Corridors.--Section 
1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 
3834(b)(3)(A)) is amended--
          (1) in clause (i), by inserting ``and'' after the semicolon;
          (2) by striking clause (ii); and
          (3) by redesignating clause (iii) as clause (ii).
  (b) Annual Rental Payments.--Section 1234(c) of the Food Security Act 
of 1985 (16 U.S.C. 3834(c)) is amended--
          (1) in paragraph (1), by inserting ``or other eligible 
        lands'' after ``highly erodible cropland'' both places it 
        appears; and
          (2) by striking paragraph (2) and inserting the following new 
        paragraph:
          ``(2) Methods of determination.--
                  ``(A) In general.--The amounts payable to owners or 
                operators in the form of rental payments under 
                contracts entered into under this subchapter may be 
                determined through--
                          ``(i) the submission of bids for such 
                        contracts by owners and operators in such 
                        manner as the Secretary may prescribe; or
                          ``(ii) such other means as the Secretary 
                        determines are appropriate.
                  ``(B) Grasslands.--In the case of eligible land 
                described in section 1231(b)(3), the Secretary shall 
                make annual payments in an amount that is not more than 
                75 percent of the grazing value of the land covered by 
                the contract.''.
  (c) Payment Schedule.--Subsection (d) of section 1234 of the Food 
Security Act of 1985 (16 U.S.C. 3834) is amended to read as follows:
  ``(d) Payment Schedule.--
          ``(1) In general.--Except as otherwise provided in this 
        section, payments under this subchapter shall be made in cash 
        in such amount and on such time schedule as is agreed on and 
        specified in the contract.
          ``(2) Advance payment.--Payments under this subchapter may be 
        made in advance of determination of performance.''.
  (d) Payment Limitation.--Section 1234(f) of the Food Security Act of 
1985 (16 U.S.C. 3834(f)) is amended--
          (1) in paragraph (1), by striking ``, including rental 
        payments made in the form of in-kind commodities,'';
          (2) by striking paragraph (3); and
          (3) by redesignating paragraph (4) as paragraph (2).

SEC. 2006. CONTRACT REQUIREMENTS.

  (a) Early Termination by Owner or Operator.--Section 1235(e) of the 
Food Security Act of 1985 (16 U.S.C. 3835(e)) is amended--
          (1) in paragraph (1)(A)--
                  (A) by striking ``The Secretary'' and inserting 
                ``During fiscal year 2013, the Secretary''; and
                  (B) by striking ``before January 1, 1995,'';
          (2) in paragraph (2), by striking subparagraph (C) and 
        inserting the following:
                  ``(C) Land devoted to hardwood trees.
                  ``(D) Wildlife habitat, duck nesting habitat, 
                pollinator habitat, upland bird habitat buffer, 
                wildlife food plots, State acres for wildlife 
                enhancement, shallow water areas for wildlife, and rare 
                and declining habitat.
                  ``(E) Farmable wetland and restored wetland.
                  ``(F) Land that contains diversions, erosion control 
                structures, flood control structures, contour grass 
                strips, living snow fences, salinity reducing 
                vegetation, cross wind trap strips, and sediment 
                retention structures.
                  ``(G) Land located within a federally-designated 
                wellhead protection area.
                  ``(H) Land that is covered by an easement under the 
                conservation reserve program.
                  ``(I) Land located within an average width, according 
                to the applicable Natural Resources Conservation 
                Service field office technical guide, of a perennial 
                stream or permanent water body.''; and
          (3) in paragraph (3), by striking ``60 days after the date on 
        which the owner or operator submits the notice required under 
        paragraph (1)(C)'' and inserting ``upon approval by the 
        Secretary''.
  (b) Transition Option for Certain Farmers or Ranchers.--Section 
1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is 
amended--
          (1) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``Duties'' and all that follows through ``a 
                beginning farmer'' and inserting ``Transition to 
                covered farmer or rancher.--In the case of a contract 
                modification approved in order to facilitate the 
                transfer of land subject to a contract from a retired 
                farmer or rancher to a beginning farmer'';
                  (B) in subparagraph (A)(i), by inserting ``, 
                including preparing to plant an agricultural crop'' 
                after ``improvements'';
                  (C) in subparagraph (D), by striking ``the farmer or 
                rancher'' and inserting ``the covered farmer or 
                rancher''; and
                  (D) in subparagraph (E), by striking ``section 
                1001A(b)(3)(B)'' and inserting ``section 1001''; and
          (2) in paragraph (2), by striking ``requirement of section 
        1231(h)(4)(B)'' and inserting ``option pursuant to section 
        1234(c)(2)(A)(ii)''.
  (c) Final Year Contract.--Section 1235 of the Food Security Act of 
1985 (16 U.S.C. 3835) is amended by adding at the end the following new 
subsections:
  ``(g) Final Year of Contract.--The Secretary shall not consider an 
owner or operator to be in violation of a term or condition of the 
conservation reserve contract if--
          ``(1) during the year prior to expiration of the contract, 
        the land is enrolled in the conservation stewardship program; 
        and
          ``(2) the activity required under the conservation 
        stewardship program pursuant to such enrollment is consistent 
        with this subchapter.
  ``(h) Land Enrolled in Agricultural Conservation Easement Program.--
The Secretary may terminate or modify a contract entered into under 
this subchapter if eligible land that is subject to such contract is 
transferred into the agricultural conservation easement program under 
subtitle H.''.

SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER CONSERVING 
                    USES.

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

SEC. 2008. EFFECTIVE DATE.

  (a) In General.--The amendments made by this subtitle shall take 
effect on October 1, 2012, except the amendment made by section 
2001(d), which shall take effect on the date of the enactment of this 
Act.
  (b) Effect on Existing Contracts.--
          (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this subtitle shall not affect the validity 
        or terms of any contract entered into by the Secretary of 
        Agriculture under subchapter B of chapter 1 of subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et 
        seq.) before October 1, 2012, or any payments required to be 
        made in connection with the contract.
          (2) Updating of existing contracts.--The Secretary shall 
        permit an owner or operator of land subject to a contract 
        entered into under subchapter B of chapter 1 of subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et 
        seq.) before October 1, 2012, to update the contract to reflect 
        the activities and uses of land under contract permitted under 
        the terms and conditions of section 1233(b) of that Act (as 
        amended by section 2004), as determined appropriate by the 
        Secretary.

              Subtitle B--Conservation Stewardship Program

SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM.

  (a) Revision of Current Program.--Subchapter B of chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3838d et seq.) is amended to read as follows:

            ``Subchapter B--Conservation Stewardship Program

``SEC. 1238D. DEFINITIONS.

  ``In this subchapter:
          ``(1) Agricultural operation.--The term `agricultural 
        operation' means all eligible land, whether or not contiguous, 
        that is--
                  ``(A) under the effective control of a producer at 
                the time the producer enters into a contract under the 
                program; and
                  ``(B) operated with equipment, labor, management, and 
                production or cultivation practices that are 
                substantially separate from other agricultural 
                operations, as determined by the Secretary.
          ``(2) Conservation activities.--
                  ``(A) In general.--The term `conservation activities' 
                means conservation systems, practices, or management 
                measures.
                  ``(B) Inclusions.--The term `conservation activities' 
                includes--
                          ``(i) structural measures, vegetative 
                        measures, and land management measures, 
                        including agriculture drainage management 
                        systems, as determined by the Secretary; and
                          ``(ii) planning needed to address a priority 
                        resource concern.
          ``(3) Conservation stewardship plan.--The term `conservation 
        stewardship plan' means a plan that--
                  ``(A) identifies and inventories priority resource 
                concerns;
                  ``(B) establishes benchmark data and conservation 
                objectives;
                  ``(C) describes conservation activities to be 
                implemented, managed, or improved; and
                  ``(D) includes a schedule and evaluation plan for the 
                planning, installation, and management of the new and 
                existing conservation activities.
          ``(4) Eligible land.--
                  ``(A) In general.--The term `eligible land' means--
                          ``(i) private or tribal land on which 
                        agricultural commodities, livestock, or forest-
                        related products are produced; and
                          ``(ii) lands associated with the land 
                        described in clause (i) on which priority 
                        resource concerns could be addressed through a 
                        contract under the program.
                  ``(B) Inclusions.--The term `eligible land' 
                includes--
                          ``(i) cropland;
                          ``(ii) grassland;
                          ``(iii) rangeland;
                          ``(iv) pasture land;
                          ``(v) nonindustrial private forest land; and
                          ``(vi) other agricultural areas (including 
                        cropped woodland, marshes, and agricultural 
                        land used or capable of being used for the 
                        production of livestock), as determined by the 
                        Secretary.
          ``(5) Priority resource concern.--The term `priority resource 
        concern' means a natural resource concern or problem, as 
        determined by the Secretary, that--
                  ``(A) is identified at the national, State, or local 
                level as a priority for a particular area of a State;
                  ``(B) represents a significant concern in a State or 
                region; and
                  ``(C) is likely to be addressed successfully through 
                the implementation of conservation activities under 
                this program.
          ``(6) Program.--The term `program' means the conservation 
        stewardship program established by this subchapter.
          ``(7) Stewardship threshold.--The term `stewardship 
        threshold' means the level of management required, as 
        determined by the Secretary, to conserve and improve the 
        quality and condition of a natural resource.

``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

  ``(a) Establishment and Purpose.--During each of fiscal years 2013 
through 2017, the Secretary shall carry out a conservation stewardship 
program to encourage producers to address priority resource concerns in 
a comprehensive manner--
          ``(1) by undertaking additional conservation activities; and
          ``(2) by improving, maintaining, and managing existing 
        conservation activities.
  ``(b) Exclusions.--
          ``(1) Land enrolled in other conservation programs.--Subject 
        to paragraph (2), the following land (even if covered by the 
        definition of eligible land) is not eligible for enrollment in 
        the program:
                  ``(A) Land enrolled in the conservation reserve 
                program, unless--
                          ``(i) the conservation reserve contract will 
                        expire at the end of the fiscal year in which 
                        the land is to be enrolled in the program; and
                          ``(ii) conservation reserve program payments 
                        for land enrolled in the program cease before 
                        the first program payment is made to the 
                        applicant under this subchapter.
                  ``(B) Land enrolled in a wetland easement through the 
                agricultural conservation easement program.
                  ``(C) Land enrolled in the conservation security 
                program.
          ``(2) Conversion to cropland.--Eligible land used for crop 
        production after October 1, 2012, 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 a contract offer for the agricultural operation that--
          ``(1) demonstrates to the satisfaction of the Secretary that 
        the producer, at the time of the contract offer, meets or 
        exceeds the stewardship threshold for at least 2 priority 
        resource concerns; and
          ``(2) would, at a minimum, meet or exceed the stewardship 
        threshold for at least 1 additional priority resource concern 
        by the end of the stewardship contract by--
                  ``(A) installing and adopting additional conservation 
                activities; and
                  ``(B) improving, maintaining, and managing existing 
                conservation activities across the entire agricultural 
                operation in a manner that increases or extends the 
                conservation benefits in place at the time the contract 
                offer is accepted by the Secretary.
  ``(b) Evaluation of Contract Offers.--
          ``(1) Ranking of applications.--In evaluating contract offers 
        submitted under subsection (a), the Secretary shall rank 
        applications based on--
                  ``(A) the level of conservation treatment on all 
                applicable priority resource concerns at the time of 
                application;
                  ``(B) the degree to which the proposed conservation 
                activities effectively increase conservation 
                performance;
                  ``(C) the number of applicable priority resource 
                concerns proposed to be treated to meet or exceed the 
                stewardship threshold by the end of the contract;
                  ``(D) the extent to which other priority resource 
                concerns will be addressed to meet or exceed the 
                stewardship threshold by the end of the contract 
                period;
                  ``(E) the extent to which the actual and anticipated 
                conservation benefits from the contract are provided at 
                the least cost relative to other similarly beneficial 
                contract offers; and
                  ``(F) the extent to which priority resource concerns 
                will be addressed when transitioning from the 
                conservation reserve program to agricultural 
                production.
          ``(2) Prohibition.--The Secretary may not assign a higher 
        priority to any application because the applicant is willing to 
        accept a lower payment than the applicant would otherwise be 
        eligible to receive.
          ``(3) Additional criteria.--The Secretary may develop and use 
        such additional criteria that the Secretary determines are 
        necessary to ensure that national, State, and local priority 
        resource concerns are effectively addressed.
  ``(c) Entering Into Contracts.--After a determination that a producer 
is eligible for the program under subsection (a), and a determination 
that the contract offer ranks sufficiently high under the evaluation 
criteria under subsection (b), the Secretary shall enter into a 
conservation stewardship contract with the producer to enroll the 
eligible land to be covered by the contract.
  ``(d) Contract Provisions.--
          ``(1) Term.--A conservation stewardship contract shall be for 
        a term of 5 years.
          ``(2) Required provisions.--The conservation stewardship 
        contract of a producer shall--
                  ``(A) state the amount of the payment the Secretary 
                agrees to make to the producer for each year of the 
                conservation stewardship contract under section 
                1238G(d);
                  ``(B) require the producer--
                          ``(i) to implement a conservation stewardship 
                        plan that describes the program purposes to be 
                        achieved through 1 or more conservation 
                        activities;
                          ``(ii) to maintain and supply information as 
                        required by the Secretary to determine 
                        compliance with the conservation stewardship 
                        plan and any other requirements of the program; 
                        and
                          ``(iii) not to conduct any activities on the 
                        agricultural operation that would tend to 
                        defeat the purposes of the program;
                  ``(C) permit all economic uses of the eligible land 
                that--
                          ``(i) maintain the agricultural nature of the 
                        land; and
                          ``(ii) are consistent with the conservation 
                        purposes of the conservation stewardship 
                        contract;
                  ``(D) include a provision to ensure that a producer 
                shall not be considered in violation of the contract 
                for failure to comply with the contract due to 
                circumstances beyond the control of the producer, 
                including a disaster or related condition, as 
                determined by the Secretary;
                  ``(E) include provisions requiring that upon the 
                violation of a term or condition of the contract at any 
                time the producer has control of the land--
                          ``(i) if the Secretary determines that the 
                        violation warrants termination of the 
                        contract--
                                  ``(I) the producer shall forfeit all 
                                rights to receive payments under the 
                                contract; and
                                  ``(II) the producer shall refund all 
                                or a portion of the payments received 
                                by the producer under the contract, 
                                including any interest on the payments, 
                                as determined by the Secretary; or
                          ``(ii) if the Secretary determines that the 
                        violation does not warrant termination of the 
                        contract, the producer shall refund or accept 
                        adjustments to the payments provided to the 
                        producer, as the Secretary determines to be 
                        appropriate;
                  ``(F) include provisions in accordance with 
                paragraphs (3) and (4) of this section; and
                  ``(G) include any additional provisions the Secretary 
                determines are necessary to carry out the program.
          ``(3) Change of interest in land subject to a contract.--
                  ``(A) In general.--At the time of application, a 
                producer shall have control of the eligible land to be 
                enrolled in the program. Except as provided in 
                subparagraph (B), a change in the interest of a 
                producer in eligible land covered by a contract under 
                the program shall result in the termination of the 
                contract with regard to that land.
                  ``(B) Transfer of duties and rights.--Subparagraph 
                (A) shall not apply if--
                          ``(i) within a reasonable period of time (as 
                        determined by the Secretary) after the date of 
                        the change in the interest in eligible 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 for the portion 
                        of the land transferred;
                          ``(ii) the transferee meets the eligibility 
                        requirements of the program; and
                          ``(iii) the Secretary approves the transfer 
                        of all duties and rights under the contract.
          ``(4) Modification and termination of contracts.--
                  ``(A) Voluntary modification or termination.--The 
                Secretary may modify or terminate a contract with a 
                producer if--
                          ``(i) the producer agrees to the modification 
                        or termination; and
                          ``(ii) the Secretary determines that the 
                        modification or termination is in the public 
                        interest.
                  ``(B) Involuntary termination.--The Secretary may 
                terminate a contract if the Secretary determines that 
                the producer violated the contract.
          ``(5) Repayment.--If a contract is terminated, the Secretary 
        may, consistent with the purposes of the program--
                  ``(A) allow the producer to retain payments already 
                received under the contract; or
                  ``(B) require repayment, in whole or in part, of 
                payments received and assess liquidated damages.
  ``(e) Contract Renewal.--At the end of the initial 5-year contract 
period, the Secretary may allow the producer to renew the contract for 
1 additional 5-year period if the producer--
          ``(1) demonstrates compliance with the terms of the initial 
        contract;
          ``(2) agrees to adopt and continue to integrate conservation 
        activities across the entire agricultural operation, as 
        determined by the Secretary; and
          ``(3) agrees, by the end of the contract period--
                  ``(A) to meet the stewardship threshold of at least 
                two additional priority resource concerns on the 
                agricultural operation; or
                  ``(B) to exceed the stewardship threshold of two 
                existing priority resource concerns that are specified 
                by the Secretary in the initial contract.

``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 5 priority resource concerns in 
        a particular watershed or other appropriate region or area 
        within a State; and
          ``(3) establish a science-based stewardship threshold for 
        each priority resource concern identified under paragraph (2).
  ``(b) Allocation to States.--The Secretary shall allocate acres to 
States for enrollment, based--
          ``(1) primarily on each State's proportion of eligible land 
        to the total acreage of eligible land in all States; and
          ``(2) also on consideration of--
                  ``(A) the extent and magnitude of the conservation 
                needs associated with agricultural production in each 
                State;
                  ``(B) the degree to which implementation of the 
                program in the State is, or will be, effective in 
                helping producers address those needs; and
                  ``(C) other considerations to achieve equitable 
                geographic distribution of funds, as determined by the 
                Secretary.
  ``(c) Acreage Enrollment Limitation.--During the period beginning on 
October 1, 2012, and ending on September 30, 2021, the Secretary shall, 
to the maximum extent practicable--
          ``(1) enroll in the program an additional 9,000,000 acres for 
        each fiscal year; and
          ``(2) manage the program to achieve a national average rate 
        of $18 per acre, which shall include the costs of all financial 
        assistance, technical assistance, and any other expenses 
        associated with enrollment or participation in the program.
  ``(d) Conservation Stewardship Payments.--
          ``(1) Availability of payments.--The Secretary shall provide 
        annual payments under the program to compensate the producer 
        for--
                  ``(A) installing and adopting additional conservation 
                activities; and
                  ``(B) improving, maintaining, and managing 
                conservation activities in place at the agricultural 
                operation of the producer at the time the contract 
                offer is accepted by the Secretary.
          ``(2) Payment amount.--The amount of the conservation 
        stewardship annual payment shall be determined by the Secretary 
        and based, to the maximum extent practicable, on the following 
        factors:
                  ``(A) Costs incurred by the producer associated with 
                planning, design, materials, installation, labor, 
                management, maintenance, or training.
                  ``(B) Income forgone by the producer.
                  ``(C) Expected conservation benefits.
                  ``(D) The extent to which priority resource concerns 
                will be addressed through the installation and adoption 
                of conservation activities on the agricultural 
                operation.
                  ``(E) The level of stewardship in place at the time 
                of application and maintained over the term of the 
                contract.
                  ``(F) The degree to which the conservation activities 
                will be integrated across the entire agricultural 
                operation for all applicable priority resource concerns 
                over the term of the contract.
                  ``(G) Such other factors as determined appropriate by 
                the Secretary.
          ``(3) Exclusions.--A payment to a producer under this 
        subsection shall not be provided for--
                  ``(A) the design, construction, or maintenance of 
                animal waste storage or treatment facilities or 
                associated waste transport or transfer devices for 
                animal feeding operations; or
                  ``(B) conservation activities for which there is no 
                cost incurred or income forgone to the producer.
          ``(4) Delivery of payments.--In making payments under this 
        subsection, the Secretary shall, to the extent practicable--
                  ``(A) prorate conservation performance over the term 
                of the contract so as to accommodate, to the extent 
                practicable, producers earning equal annual payments in 
                each fiscal year; and
                  ``(B) make payments as soon as practicable after 
                October 1 of each fiscal year for activities carried 
                out in the previous fiscal year.
  ``(e) Supplemental Payments for Resource-conserving Crop Rotations.--
          ``(1) Availability of payments.--The Secretary shall provide 
        additional payments to producers that, in participating in the 
        program, agree to adopt or improve resource-conserving crop 
        rotations to achieve beneficial crop rotations as appropriate 
        for the eligible land of the producers.
          ``(2) Beneficial crop rotations.--The Secretary shall 
        determine whether a resource-conserving crop rotation is a 
        beneficial crop rotation eligible for additional payments under 
        paragraph (1) based on whether the resource-conserving crop 
        rotation is designed to provide natural resource conservation 
        and production benefits.
          ``(3) Eligibility.--To be eligible to receive a payment 
        described in paragraph (1), a producer shall agree to adopt and 
        maintain 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.
  ``(f) Payment Limitations.--A person or legal entity may not receive, 
directly or indirectly, payments under the program that, in the 
aggregate, exceed $200,000 under all contracts entered into during 
fiscal years 2013 through 2017, excluding funding arrangements with 
Indian tribes, regardless of the number of contracts entered into under 
the program by the person or legal entity.
  ``(g) Specialty Crop and Organic Producers.--The Secretary shall 
ensure that outreach and technical assistance are available, and 
program specifications are appropriate to enable specialty crop and 
organic producers to participate in the program.
  ``(h) Coordination With Organic Certification.--The Secretary shall 
establish a transparent means by which producers may initiate organic 
certification under the Organic Foods Production Act of 1990 (7 U.S.C. 
6501 et seq.) while participating in a contract under the program.
  ``(i) Regulations.--The Secretary shall promulgate regulations that--
          ``(1) prescribe such other rules as the Secretary determines 
        to be necessary to ensure a fair and reasonable application of 
        the limitations established under subsection (f); and
          ``(2) otherwise enable the Secretary to carry out the 
        program.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.
  (c) Effect on Existing Contracts.--
          (1) In general.--The amendment made by this section shall not 
        affect the validity or terms of any contract entered into by 
        the Secretary of Agriculture under subchapter B of chapter 2 of 
        subtitle D of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3838d et seq.) before October 1, 2012, or any payments 
        required to be made in connection with the contract.
          (2) Conservation stewardship program.--Funds made available 
        under section 1241(a)(4) of the Food Security Act of 1985 (16 
        U.S.C. 3841(a)(4)) (as amended by section 2601(a) of this 
        title) may be used to administer and make payments to program 
        participants that enrolled into contracts during any of fiscal 
        years 2009 through 2012.

          Subtitle C--Environmental Quality Incentives Program

SEC. 2201. PURPOSES.

  Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is 
amended--
          (1) in paragraph (3)--
                  (A) in subparagraph (A), by striking ``and'' at the 
                end;
                  (B) by redesignating subparagraph (B) as subparagraph 
                (C) and, in such subparagraph, by inserting ``and'' 
                after the semicolon; and
                  (C) by inserting after subparagraph (A) the following 
                new subparagraph:
                  ``(B) developing and improving wildlife habitat; 
                and'';
          (2) in paragraph (4), by striking ``; and'' and inserting a 
        period; and
          (3) by striking paragraph (5).

SEC. 2202. ESTABLISHMENT AND ADMINISTRATION.

  Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) 
is amended--
          (1) in subsection (a), by striking ``2014'' and inserting 
        ``2017'';
          (2) in subsection (b), by striking paragraph (2) and 
        inserting the following new paragraph:
          ``(2) Term.--A contract under the program shall have a term 
        that does not exceed 10 years.'';
          (3) in subsection (d)(4)--
                  (A) in subparagraph (A), in the matter preceding 
                clause (i), by inserting ``, veteran farmer or rancher 
                (as defined in section 2501(e) of the Food, 
                Agriculture, Conservation, and Trade Act of 1990 (7 
                U.S.C. 2279(e))),'' before ``or a beginning farmer or 
                rancher''; and
                  (B) by striking subparagraph (B) and inserting the 
                following new subparagraph:
                  ``(B) Advance payments.--
                          ``(i) In general.--Not more than 50 percent 
                        of the amount determined under subparagraph (A) 
                        may be provided in advance for the purpose of 
                        purchasing materials or contracting.
                          ``(ii) Return of funds.--If funds provided in 
                        advance are not expended during the 90-day 
                        period beginning on the date of receipt of the 
                        funds, the funds shall be returned within a 
                        reasonable time frame, as determined by the 
                        Secretary.'';
          (4) by striking subsection (f) and inserting the following 
        new subsection:
  ``(f) Allocation of Funding.--
          ``(1) Livestock.--For each of fiscal years 2013 through 2017, 
        at least 60 percent of the funds made available for payments 
        under the program shall be targeted at practices relating to 
        livestock production.
          ``(2) Wildlife habitat.--For each of fiscal years 2013 
        through 2017, 5 percent of the funds made available for 
        payments under the program shall be targeted at practices 
        benefitting wildlife habitat.'';
          (5) in subsection (g)--
                  (A) in the subsection heading, by striking 
                ``Federally Recognized Native American Indian Tribes 
                and Alaska Native Corporations'' and inserting ``Indian 
                Tribes'';
                  (B) by striking ``federally recognized Native 
                American Indian Tribes and Alaska Native Corporations 
                (including their affiliated membership organizations)'' 
                and inserting ``Indian tribes''; and
                  (C) by striking ``or Native Corporation''; and
          (6) by adding at the end the following:
  ``(j) Wildlife Habitat Incentive Practice.--The Secretary shall 
provide payments under the program for conservation practices that 
support the restoration, development, and improvement of wildlife 
habitat on eligible land, including--
          ``(1) upland wildlife habitat;
          ``(2) wetland wildlife habitat;
          ``(3) habitat for threatened and endangered species;
          ``(4) fish habitat;
          ``(5) habitat on pivot corners and other irregular areas of a 
        field; and
          ``(6) other types of wildlife habitat, as determined 
        appropriate by the Secretary.''.

SEC. 2203. EVALUATION OF APPLICATIONS.

  Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
3(b)) is amended--
          (1) in paragraph (1), by striking ``environmental'' and 
        inserting ``conservation''; and
          (2) in paragraph (3), by striking ``purpose of the 
        environmental quality incentives program specified in section 
        1240(1)'' and inserting ``purposes of the program''.

SEC. 2204. DUTIES OF PRODUCERS.

  Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
4(2)) is amended by striking ``farm, ranch, or forest'' and inserting 
``enrolled''.

SEC. 2205. LIMITATION ON PAYMENTS.

  Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended to read as follows:

``SEC. 1240G. LIMITATION ON PAYMENTS.

  ``A person or legal entity may not receive, directly or indirectly, 
cost share or incentive payments under this chapter that, in aggregate, 
exceed $450,000 for all contracts entered into under this chapter by 
the person or legal entity during the period of fiscal years 2013 
through 2017, regardless of the number of contracts entered into under 
this chapter by the person or legal entity.''.

SEC. 2206. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

  Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended--
          (1) in subsection (a)(2)--
                  (A) in subparagraph (C), by striking ``; and'' and 
                inserting a semicolon;
                  (B) in subparagraph (D), by striking the period and 
                inserting a semicolon; and
                  (C) by adding at the end the following new 
                subparagraphs:
                  ``(E) facilitate on-farm conservation research and 
                demonstration activities; and
                  ``(F) facilitate pilot testing of new technologies or 
                innovative conservation practices.''; and
          (2) by striking subsection (b) and inserting the following 
        new subsection:
  ``(b) Reporting.--Not later than December 31, 2013, and every two 
years thereafter, the Secretary shall submit to the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and the Committee on 
Agriculture of the House of Representatives a report on the status of 
projects funded under this section, including--
          ``(1) funding awarded;
          ``(2) project results; and
          ``(3) incorporation of project findings, such as new 
        technology and innovative approaches, into the conservation 
        efforts implemented by the Secretary.''.

SEC. 2207. EFFECTIVE DATE.

  (a) In General.--The amendments made by this subtitle shall take 
effect on October 1, 2012.
  (b) Effect on Existing Contracts.--The amendments made by this 
subtitle shall not affect the validity or terms of any contract entered 
into by the Secretary of Agriculture under chapter 4 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 
before October 1, 2012, or any payments required to be made in 
connection with the contract.

         Subtitle D--Agricultural Conservation Easement Program

SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PROGRAM.

  (a) Establishment.--Title XII of the Food Security Act of 1985 is 
amended by adding at the end the following new subtitle:

        ``Subtitle H--Agricultural Conservation Easement Program

``SEC. 1265. ESTABLISHMENT AND PURPOSES.

  ``(a) Establishment.--The Secretary shall establish an agricultural 
conservation easement program for the conservation of eligible land and 
natural resources through easements or other interests in land.
  ``(b) Purposes.--The purposes of the program are to--
          ``(1) combine the purposes and coordinate the functions of 
        the wetlands reserve program established under section 1237, 
        the grassland reserve program established under section 1238N, 
        and the farmland protection program established under section 
        1238I, as such sections were in effect on September 30, 2012;
          ``(2) restore, protect, and enhance wetlands on eligible 
        land;
          ``(3) protect the agricultural use and related conservation 
        values of eligible land by limiting nonagricultural uses of 
        that land; and
          ``(4) protect grazing uses and related conservation values by 
        restoring and conserving eligible land.

``SEC. 1265A. DEFINITIONS.

  ``In this subtitle:
          ``(1) Agricultural land easement.--The term `agricultural 
        land easement' means an easement or other interest in eligible 
        land that--
                  ``(A) is conveyed for the purpose of protecting 
                natural resources and the agricultural nature of the 
                land; and
                  ``(B) permits the landowner the right to continue 
                agricultural production and related uses subject to an 
                agricultural land easement plan, as approved by the 
                Secretary.
          ``(2) Eligible entity.--The term `eligible entity' means--
                  ``(A) an agency of State or local government or an 
                Indian tribe (including a farmland protection board or 
                land resource council established under State law); or
                  ``(B) an organization that is--
                          ``(i) organized for, and at all times since 
                        the formation of the organization has been 
                        operated principally for, 1 or more of the 
                        conservation purposes specified in clause (i), 
                        (ii), (iii), or (iv) of section 170(h)(4)(A) of 
                        the Internal Revenue Code of 1986;
                          ``(ii) an organization described in section 
                        501(c)(3) of that Code that is exempt from 
                        taxation under section 501(a) of that Code; or
                          ``(iii) described in--
                                  ``(I) paragraph (1) or (2) of section 
                                509(a) of that Code; or
                                  ``(II) section 509(a)(3) of that Code 
                                and is controlled by an organization 
                                described in section 509(a)(2) of that 
                                Code.
          ``(3) Eligible land.--The term `eligible land' means private 
        or tribal land that is--
                  ``(A) in the case of an agricultural land easement, 
                agricultural land, including land on a farm or ranch--
                          ``(i) that is subject to a pending offer for 
                        purchase of an agricultural land easement from 
                        an eligible entity;
                          ``(ii) that--
                                  ``(I) has prime, unique, or other 
                                productive soil;
                                  ``(II) contains historical or 
                                archaeological resources; or
                                  ``(III) the protection of which will 
                                further a State or local policy 
                                consistent with the purposes of the 
                                program; and
                          ``(iii) that is--
                                  ``(I) cropland;
                                  ``(II) rangeland;
                                  ``(III) grassland or land that 
                                contains forbs, or shrubland for which 
                                grazing is the predominate use;
                                  ``(IV) pastureland; or
                                  ``(V) nonindustrial private forest 
                                land that contributes to the economic 
                                viability of an offered parcel or 
                                serves as a buffer to protect such land 
                                from development;
                  ``(B) in the case of a wetland easement, a wetland or 
                related area, including--
                          ``(i) farmed or converted wetlands, together 
                        with adjacent land that is functionally 
                        dependent on that land, if the Secretary 
                        determines it--
                                  ``(I) is likely to be successfully 
                                restored in a cost effective manner; 
                                and
                                  ``(II) will maximize the wildlife 
                                benefits and wetland functions and 
                                values, as determined by the Secretary 
                                in consultation with the Secretary of 
                                the Interior at the local level;
                          ``(ii) cropland or grassland that was used 
                        for agricultural production prior to flooding 
                        from the natural overflow of--
                                  ``(I) a closed basin lake and 
                                adjacent land that is functionally 
                                dependent upon it, if the State or 
                                other entity is willing to provide 50 
                                percent share of the cost of an 
                                easement;
                                  ``(II) a pothole and adjacent land 
                                that is functionally dependent on it;
                          ``(iii) farmed wetlands and adjoining lands 
                        that--
                                  ``(I) are enrolled in the 
                                conservation reserve program;
                                  ``(II) have the highest wetland 
                                functions and values, as determined by 
                                the Secretary; and
                                  ``(III) are likely to return to 
                                production after they leave the 
                                conservation reserve program;
                          ``(iv) riparian areas that link wetlands that 
                        are protected by easements or some other device 
                        that achieves the same purpose as an easement; 
                        or
                          ``(v) other wetlands of an owner that would 
                        not otherwise be eligible, if the Secretary 
                        determines that the inclusion of such wetlands 
                        in a wetland easement would significantly add 
                        to the functional value of the easement; or
                  ``(C) in the case of either an agricultural land 
                easement or wetland easement, other land that is 
                incidental to land described in subparagraph (A) or 
                (B), if the Secretary determines that it is necessary 
                for the efficient administration of the easements under 
                this program.
          ``(4) Program.--The term `program' means the agricultural 
        conservation easement program established by this subtitle.
          ``(5) Wetland easement.--The term `wetland easement' means a 
        reserved interest in eligible land that--
                  ``(A) is defined and delineated in a deed; and
                  ``(B) stipulates--
                          ``(i) the rights, title, and interests in 
                        land conveyed to the Secretary; and
                          ``(ii) the rights, title, and interests in 
                        land that are reserved to the landowner.

``SEC. 1265B. AGRICULTURAL LAND EASEMENTS.

  ``(a) Availability of Assistance.--The Secretary shall facilitate and 
provide funding for--
          ``(1) the purchase by eligible entities of agricultural land 
        easements and other interests in eligible land; and
          ``(2) technical assistance to provide for the conservation of 
        natural resources pursuant to an agricultural land easement 
        plan.
  ``(b) Cost-share Assistance.--
          ``(1) In general.--The Secretary shall protect the 
        agricultural use, including grazing, and related conservation 
        values of eligible land through cost-share assistance to 
        eligible entities for purchasing agricultural land easements.
          ``(2) Scope of assistance available.--
                  ``(A) Federal share.--An agreement described in 
                paragraph (4) shall provide for a Federal share 
                determined by the Secretary of an amount not to exceed 
                50 percent of the fair market value of the agricultural 
                land easement or other interest in land, as determined 
                by the Secretary using--
                          ``(i) the Uniform Standards of Professional 
                        Appraisal Practice;
                          ``(ii) an area-wide market analysis or 
                        survey; or
                          ``(iii) another industry-approved method.
                  ``(B) Non-federal share.--
                          ``(i) In general.--Under the agreement, the 
                        eligible entity shall provide a share that is 
                        at least equivalent to that provided by the 
                        Secretary.
                          ``(ii) Source of contribution.--An eligible 
                        entity may include as part of its share a 
                        charitable donation or qualified conservation 
                        contribution (as defined by section 170(h) of 
                        the Internal Revenue Code of 1986) from the 
                        private landowner if the eligible entity 
                        contributes its own cash resources in an amount 
                        that is at least 50 percent of the amount 
                        contributed by the Secretary.
                  ``(C) Exception.--In the case of grassland of special 
                environmental significance, as determined by the 
                Secretary, the Secretary may provide an amount not to 
                exceed 75 percent of the fair market value of the 
                agricultural land easement.
          ``(3) Evaluation and ranking of applications.--
                  ``(A) Criteria.--The Secretary shall establish 
                evaluation and ranking criteria to maximize the benefit 
                of Federal investment under the program.
                  ``(B) Considerations.--In establishing the criteria, 
                the Secretary shall emphasize support for--
                          ``(i) protecting agricultural uses and 
                        related conservation values of the land; and
                          ``(ii) maximizing the protection of areas 
                        devoted to agricultural use.
                  ``(C) Bidding down.--If the Secretary determines that 
                2 or more applications for cost-share assistance are 
                comparable in achieving the purpose of the program, the 
                Secretary shall not assign a higher priority to any of 
                those applications solely on the basis of lesser cost 
                to the program.
          ``(4) Agreements with eligible entities.--
                  ``(A) In general.--The Secretary shall enter into 
                agreements with eligible entities to stipulate the 
                terms and conditions under which the eligible entity is 
                permitted to use cost-share assistance provided under 
                this section.
                  ``(B) Length of agreements.--An agreement shall be 
                for a term that is--
                          ``(i) in the case of an eligible entity 
                        certified under the process described in 
                        paragraph (5), a minimum of five years; and
                          ``(ii) for all other eligible entities, at 
                        least three, but not more than five years.
                  ``(C) Minimum terms and conditions.--An eligible 
                entity shall be authorized to use its own terms and 
                conditions for agricultural land easements so long as 
                the Secretary determines such terms and conditions--
                          ``(i) are consistent with the purposes of the 
                        program;
                          ``(ii) permit effective enforcement of the 
                        conservation purposes of such easements;
                          ``(iii) include a right of enforcement for 
                        the Secretary, that may be used only if the 
                        terms of the easement are not enforced by the 
                        holder of the easement;
                          ``(iv) subject the land in which an interest 
                        is purchased to an agricultural land easement 
                        plan that--
                                  ``(I) describes the activities which 
                                promote the long-term viability of the 
                                land to meet the purposes for which the 
                                easement was acquired;
                                  ``(II) requires the management of 
                                grasslands according to a grasslands 
                                management plan; and
                                  ``(III) includes a conservation plan, 
                                where appropriate, and requires, at the 
                                option of the Secretary, the conversion 
                                of highly erodible cropland to less 
                                intensive uses; and
                          ``(v) include a limit on the impervious 
                        surfaces to be allowed that is consistent with 
                        the agricultural activities to be conducted.
                  ``(D) Substitution of qualified projects.--An 
                agreement shall allow, upon mutual agreement of the 
                parties, substitution of qualified projects that are 
                identified at the time of the proposed substitution.
                  ``(E) Effect of violation.--If a violation occurs of 
                a term or condition of an agreement under this 
                subsection--
                          ``(i) the Secretary may terminate the 
                        agreement; and
                          ``(ii) the Secretary may require the eligible 
                        entity to refund all or part of any payments 
                        received by the entity under the program, with 
                        interest on the payments as determined 
                        appropriate by the Secretary.
          ``(5) Certification of eligible entities.--
                  ``(A) Certification process.--The Secretary shall 
                establish a process under which the Secretary may--
                          ``(i) directly certify eligible entities that 
                        meet established criteria;
                          ``(ii) enter into long-term agreements with 
                        certified eligible entities; and
                          ``(iii) accept proposals for cost-share 
                        assistance for the purchase of agricultural 
                        land easements throughout the duration of such 
                        agreements.
                  ``(B) Certification criteria.--In order to be 
                certified, an eligible entity shall demonstrate to the 
                Secretary that the entity will maintain, at a minimum, 
                for the duration of the agreement--
                          ``(i) a plan for administering easements that 
                        is consistent with the purpose of this 
                        subtitle;
                          ``(ii) the capacity and resources to monitor 
                        and enforce agricultural land easements; and
                          ``(iii) policies and procedures to ensure--
                                  ``(I) the long-term integrity of 
                                agricultural land easements on eligible 
                                land;
                                  ``(II) timely completion of 
                                acquisitions of such easements; and
                                  ``(III) timely and complete 
                                evaluation and reporting to the 
                                Secretary on the use of funds provided 
                                under the program.
                  ``(C) Review and revision.--
                          ``(i) Review.--The Secretary shall conduct a 
                        review of eligible entities certified under 
                        subparagraph (A) every three years to ensure 
                        that such entities are meeting the criteria 
                        established under subparagraph (B).
                          ``(ii) Revocation.--If the Secretary finds 
                        that the certified eligible entity no longer 
                        meets the criteria established under 
                        subparagraph (B), the Secretary may--
                                  ``(I) allow the certified eligible 
                                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 eligible entity, if after the 
                                specified period of time, the certified 
                                eligible entity does not meet such 
                                criteria.
  ``(c) Method of Enrollment.--The Secretary shall enroll eligible land 
under this section through the use of--
          ``(1) permanent easements; or
          ``(2) easements for the maximum duration allowed under 
        applicable State laws.
  ``(d) Technical Assistance.--The Secretary may provide technical 
assistance, if requested, to assist in--
          ``(1) compliance with the terms and conditions of easements; 
        and
          ``(2) implementation of an agricultural land easement plan.

``SEC. 1265C. WETLAND EASEMENTS.

  ``(a) Availability of Assistance.--The Secretary shall provide 
assistance to owners of eligible land to restore, protect, and enhance 
wetlands through--
          ``(1) wetland easements and related wetland easement plans; 
        and
          ``(2) technical assistance.
  ``(b) Easements.--
          ``(1) Method of enrollment.--The Secretary shall enroll 
        eligible land under this section through the use of--
                  ``(A) 30-year easements;
                  ``(B) permanent easements;
                  ``(C) easements for the maximum duration allowed 
                under applicable State laws; or
                  ``(D) as an option for Indian tribes only, 30-year 
                contracts (which shall be considered to be 30-year 
                easements for the purposes of this subtitle).
          ``(2) Limitations.--
                  ``(A) Ineligible land.--The Secretary may not acquire 
                easements on--
                          ``(i) land established to trees under the 
                        conservation reserve program, except in cases 
                        where the Secretary determines it would further 
                        the purposes of the program; and
                          ``(ii) farmed wetlands or converted wetlands 
                        where the conversion was not commenced prior to 
                        December 23, 1985.
                  ``(B) Changes in ownership.--No wetland easement 
                shall be created on land that has changed ownership 
                during the preceding 24-month period unless--
                          ``(i) the new ownership was acquired by will 
                        or succession as a result of the death of the 
                        previous owner;
                          ``(ii)(I) the ownership change occurred 
                        because of foreclosure on the land; and
                          ``(II) immediately before the foreclosure, 
                        the owner of the land exercises a right of 
                        redemption from the mortgage holder in 
                        accordance with State law; or
                          ``(iii) the Secretary determines that the 
                        land was acquired under circumstances that give 
                        adequate assurances that such land was not 
                        acquired for the purposes of placing it in the 
                        program.
          ``(3) Evaluation and ranking of offers.--
                  ``(A) Criteria.--The Secretary shall establish 
                evaluation and ranking criteria to maximize the benefit 
                of Federal investment under the program.
                  ``(B) Considerations.--When evaluating offers from 
                landowners, the Secretary may consider--
                          ``(i) the conservation benefits of obtaining 
                        a wetland easement, including the potential 
                        environmental benefits if the land was removed 
                        from agricultural production;
                          ``(ii) the cost-effectiveness of each wetland 
                        easement, so as to maximize the environmental 
                        benefits per dollar expended;
                          ``(iii) whether the landowner or another 
                        person is offering to contribute financially to 
                        the cost of the wetland easement to leverage 
                        Federal funds; and
                          ``(iv) such other factors as the Secretary 
                        determines are necessary to carry out the 
                        purposes of the program.
                  ``(C) Priority.--The Secretary shall place priority 
                on acquiring wetland easements based on the value of 
                the wetland easement for protecting and enhancing 
                habitat for migratory birds and other wildlife.
          ``(4) Agreement.--To be eligible to place eligible land into 
        the program through a wetland easement, the owner of such land 
        shall enter into an agreement with the Secretary to--
                  ``(A) grant an easement on such land to the 
                Secretary;
                  ``(B) authorize the implementation of a wetland 
                easement plan developed for the eligible land under 
                subsection (f);
                  ``(C) create and record an appropriate deed 
                restriction in accordance with applicable State law to 
                reflect the easement agreed to;
                  ``(D) provide a written statement of consent to such 
                easement signed by those holding a security interest in 
                the land;
                  ``(E) comply with the terms and conditions of the 
                easement and any related agreements; and
                  ``(F) permanently retire any existing base history 
                for the land on which the easement has been obtained.
          ``(5) Terms and conditions of easement.--
                  ``(A) In general.--A wetland easement shall include 
                terms and conditions that--
                          ``(i) permit--
                                  ``(I) repairs, improvements, and 
                                inspections on the land that are 
                                necessary to maintain existing public 
                                drainage systems; and
                                  ``(II) owners to control public 
                                access on the easement areas while 
                                identifying access routes to be used 
                                for restoration activities and 
                                management and easement monitoring;
                          ``(ii) prohibit--
                                  ``(I) the alteration of wildlife 
                                habitat and other natural features of 
                                such land, unless specifically 
                                authorized by the Secretary;
                                  ``(II) the spraying of such land with 
                                chemicals or the mowing of such land, 
                                except where such spraying or mowing is 
                                authorized by the Secretary or is 
                                necessary--
                                          ``(aa) to comply with Federal 
                                        or State noxious weed control 
                                        laws;
                                          ``(bb) to comply with a 
                                        Federal or State emergency pest 
                                        treatment program; or
                                          ``(cc) to meet habitat needs 
                                        of specific wildlife species;
                                  ``(III) any activities to be carried 
                                out on the owner's or successor's land 
                                that is immediately adjacent to, and 
                                functionally related to, the land that 
                                is subject to the easement if such 
                                activities will alter, degrade, or 
                                otherwise diminish the functional value 
                                of the eligible land; and
                                  ``(IV) the adoption of any other 
                                practice that would tend to defeat the 
                                purposes of the program, as determined 
                                by the Secretary;
                          ``(iii) provide for the efficient and 
                        effective establishment of wildlife functions 
                        and values; and
                          ``(iv) include such additional provisions as 
                        the Secretary determines are desirable to carry 
                        out the program or facilitate the practical 
                        administration thereof.
                  ``(B) Violation.--On the violation of the terms or 
                conditions of a wetland easement, the wetland easement 
                shall remain in force and the Secretary may require the 
                owner to refund all or part of any payments received by 
                the owner under the program, together with interest 
                thereon as determined appropriate by the Secretary.
                  ``(C) Compatible uses.--Land subject to a wetland 
                easement may be used for compatible economic uses, 
                including such activities as hunting and fishing, 
                managed timber harvest, or periodic haying or grazing, 
                if such use is specifically permitted by the wetland 
                easement plan developed for the land under subsection 
                (f) and is consistent with the long-term protection and 
                enhancement of the wetland resources for which the 
                easement was established.
                  ``(D) Reservation of grazing rights.--The Secretary 
                may include in the terms and conditions of a wetland 
                easement a provision under which the owner reserves 
                grazing rights if--
                          ``(i) the Secretary determines that the 
                        reservation and use of the grazing rights--
                                  ``(I) is compatible with the land 
                                subject to the easement;
                                  ``(II) is consistent with the 
                                historical natural uses of the land and 
                                the long-term protection and 
                                enhancement goals for which the 
                                easement was established; and
                                  ``(III) complies with the wetland 
                                easement plan developed for the land 
                                under subsection (f); and
                          ``(ii) the agreement provides for a 
                        commensurate reduction in the easement payment 
                        to account for the grazing value, as determined 
                        by the Secretary.
          ``(6) Compensation.--
                  ``(A) Determination.--
                          ``(i) Permanent easements.--The Secretary 
                        shall pay as compensation for a permanent 
                        wetland easement acquired under the program an 
                        amount necessary to encourage enrollment in the 
                        program, based on the lowest of--
                                  ``(I) the fair market value of the 
                                land, as determined by the Secretary, 
                                using the Uniform Standards of 
                                Professional Appraisal Practice or an 
                                area-wide market analysis or survey;
                                  ``(II) the amount corresponding to a 
                                geographical cap, as determined by the 
                                Secretary in regulations; or
                                  ``(III) the offer made by the 
                                landowner.
                          ``(ii) 30-year easements.--Compensation for a 
                        30-year wetland easement shall be not less than 
                        50 percent, but not more than 75 percent, of 
                        the compensation that would be paid for a 
                        permanent wetland easement.
                  ``(B) Form of payment.--Compensation for a wetland 
                easement shall be provided by the Secretary in the form 
                of a cash payment, in an amount determined under 
                subparagraph (A).
                  ``(C) Payment schedule.--
                          ``(i) Easements valued at $500,000 or less.--
                        For wetland easements valued at $500,000 or 
                        less, the Secretary may provide easement 
                        payments in not more than 10 annual payments.
                          ``(ii) Easements valued at more than 
                        $500,000.--For wetland easements valued at more 
                        than $500,000, the Secretary may provide 
                        easement payments in at least 5, but not more 
                        than 10 annual payments, except that, if the 
                        Secretary determines it would further the 
                        purposes of the program, the Secretary may make 
                        a lump sum payment for such an easement.
  ``(c) Easement Restoration.--
          ``(1) In general.--The Secretary shall provide financial 
        assistance to owners of eligible land to carry out the 
        establishment of conservation measures and practices and 
        protect wetland functions and values, including necessary 
        maintenance activities, as set forth in a wetland easement plan 
        developed for the eligible land under subsection (f).
          ``(2) Payments.--The Secretary shall--
                  ``(A) in the case of a permanent wetland easement, 
                pay an amount that is not less than 75 percent, but not 
                more than 100 percent, of the eligible costs, as 
                determined by the Secretary; and
                  ``(B) in the case of a 30-year wetland easement, pay 
                an amount that is not less than 50 percent, but not 
                more than 75 percent, of the eligible costs, as 
                determined by the Secretary.
  ``(d) Technical Assistance.--
          ``(1) In general.--The Secretary shall assist owners in 
        complying with the terms and conditions of wetland easements.
          ``(2) Contracts or agreements.--The Secretary may enter into 
        1 or more contracts with private entities or agreements with a 
        State, non-governmental organization, or Indian tribe to carry 
        out necessary restoration, enhancement, or maintenance of a 
        wetland easement if the Secretary determines that the contract 
        or agreement will advance the purposes of the program.
  ``(e) Wetland Enhancement Option.--The Secretary may enter into 1 or 
more agreements with a State (including a political subdivision or 
agency of a State), nongovernmental organization, or Indian tribe to 
carry out a special wetland enhancement option that the Secretary 
determines would advance the purposes of program.
  ``(f) Administration.--
          ``(1) Wetland easement plan.--The Secretary shall develop a 
        wetland easement plan for eligible lands subject to a wetland 
        easement, which shall include practices and activities 
        necessary to restore, protect, enhance, and maintain the 
        enrolled lands.
          ``(2) Delegation of easement administration.--The Secretary 
        may delegate--
                  ``(A) any of the easement management, monitoring, and 
                enforcement responsibilities of the Secretary to other 
                Federal or State agencies that have the appropriate 
                authority, expertise, and resources necessary to carry 
                out such delegated responsibilities; and
                  ``(B) any of the easement management responsibilities 
                of the Secretary to other conservation organizations if 
                the Secretary determines the organization has the 
                appropriate expertise and resources.
          ``(3) Payments.--
                  ``(A) Timing of payments.--The Secretary shall 
                provide payment for obligations incurred by the 
                Secretary under this section--
                          ``(i) with respect to any easement 
                        restoration obligation under subsection (c), as 
                        soon as possible after the obligation is 
                        incurred; and
                          ``(ii) with respect to any annual easement 
                        payment obligation incurred by the Secretary, 
                        as soon as possible after October 1 of each 
                        calendar year.
                  ``(B) Payments to others.--If an owner who is 
                entitled to a payment under this section dies, becomes 
                incompetent, is otherwise unable to receive such 
                payment, or is succeeded by another person or entity 
                who renders or completes the required performance, the 
                Secretary shall make such payment, in accordance with 
                regulations prescribed by the Secretary and without 
                regard to any other provision of law, in such manner as 
                the Secretary determines is fair and reasonable in 
                light of all of the circumstances.

``SEC. 1265D. ADMINISTRATION.

  ``(a) Ineligible Land.--The Secretary may not use program funds for 
the purposes of acquiring an easement on--
          ``(1) lands owned by an agency of the United States, other 
        than land held in trust for Indian tribes;
          ``(2) lands owned in fee title by a State, including an 
        agency or a subdivision of a State, or a unit of local 
        government;
          ``(3) land subject to an easement or deed restriction which, 
        as determined by the Secretary, provides similar protection as 
        would be provided by enrollment in the program; or
          ``(4) lands where the purposes of the program would be 
        undermined due to on-site or off-site conditions, such as risk 
        of hazardous substances, proposed or existing rights of way, 
        infrastructure development, or adjacent land uses.
  ``(b) Priority.--In evaluating applications under the program, the 
Secretary may give priority to land that is currently enrolled in the 
conservation reserve program in a contract that is set to expire within 
1 year and--
          ``(1) in the case of an agricultural land easement, is 
        grassland that would benefit from protection under a long-term 
        easement; and
          ``(2) in the case of a wetland easement, is a wetland or 
        related area with the highest functions and value and is likely 
        to return to production after the land leaves the conservation 
        reserve program.
  ``(c) Subordination, Exchange, Modification, and Termination.--
          ``(1) In general.--The Secretary may subordinate, exchange, 
        modify, or terminate any interest in land, or portion of such 
        interest, administered by the Secretary, either directly or on 
        behalf of the Commodity Credit Corporation under the program if 
        the Secretary determines that--
                  ``(A) it is in the Federal Government's interest to 
                subordinate, exchange, modify, or terminate the 
                interest in land;
                  ``(B) the subordination, exchange, modification, or 
                termination action--
                          ``(i) will address a compelling public need 
                        for which there is no practicable alternative; 
                        or
                          ``(ii) such action will further the practical 
                        administration of the program; and
                  ``(C) the subordination, exchange, modification, or 
                termination action will result in comparable 
                conservation value and equivalent or greater economic 
                value to the United States.
          ``(2) Consultation.--The Secretary shall work with the owner, 
        and eligible entity if applicable, to address any 
        subordination, exchange, modification, or termination of the 
        interest, or portion of such interest, in land.
          ``(3) Notice.--At least 90 days before taking any termination 
        action described in paragraph (1), the Secretary shall provide 
        written notice of such action to the Committee on Agriculture 
        of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate.
  ``(d) Land Enrolled in Conservation Reserve Program.--The Secretary 
may terminate or modify a contract entered into under section 1231(a) 
if eligible land that is subject to such contract is transferred into 
the program.
  ``(e) Allocation of Funds for Agricultural Land Easements.--Of the 
funds made available under section 1241 to carry out the program for a 
fiscal year, the Secretary shall, to the extent practicable, use for 
agricultural land easements--
          ``(1) no less than 40 percent in each of fiscal years 2013 
        through 2016; and
          ``(2) no less than 50 percent in fiscal year 2017.''.
  (b) Compliance With Certain Requirements.--Before an eligible entity 
or owner of eligible land may receive assistance under subtitle H of 
title XII of the Food Security Act of 1985, the eligible entity or 
person shall agree, during the crop year for which the assistance is 
provided and in exchange for the assistance--
          (1) to comply with applicable conservation requirements under 
        subtitle B of title XII of that Act (16 U.S.C. 3811 et seq.); 
        and
          (2) to comply with applicable wetland protection requirements 
        under subtitle C of title XII of that Act (16 U.S.C. 3821 et 
        seq.).
  (c) Cross Reference; Calculation.--Section 1244 of the Food Security 
Act of 1985 (16 U.S.C. 3844) is amended--
          (1) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by inserting ``and'' at the end of 
                        subparagraph (A);
                          (ii) by striking ``and'' at the end of 
                        subparagraph (B); and
                          (iii) by striking subparagraph (C);
                  (B) by redesignating paragraph (2) as paragraph (3); 
                and
                  (C) by inserting after paragraph (1) the following 
                new subparagraph:
          ``(2) the agricultural conservation easement program 
        established under subtitle H; and''; and
          (2) in subsection (f)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking 
                        ``programs administered under subchapters B and 
                        C of chapter 1 of subtitle D'' and inserting 
                        ``conservation reserve program established 
                        under subchapter B of chapter 1 of subtitle D 
                        and wetland easements under section 1265C''; 
                        and
                          (ii) in subparagraph (B), by striking ``an 
                        easement acquired under subchapter C of chapter 
                        1 of subtitle D'' and inserting ``a wetland 
                        easement under section 1265C''; and
                  (B) by adding at the end the following new paragraph:
          ``(5) Calculation.--In calculating the percentages described 
        in paragraph (1), the Secretary shall include any acreage that 
        was included in calculations of percentages made under such 
        paragraph, as in effect on September 30, 2012, and that remains 
        enrolled when the calculation is made after that date under 
        paragraph (1).''.
  (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

         Subtitle E--Regional Conservation Partnership Program

SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.

  (a) In General.--Title XII of the Food Security Act of 1985 is 
amended by inserting after subtitle H, as added by section 2301, the 
following new subtitle:

        ``Subtitle I--Regional Conservation Partnership Program

``SEC. 1271. ESTABLISHMENT AND PURPOSES.

  ``(a) Establishment.--The Secretary shall establish a regional 
conservation partnership program to implement eligible activities on 
eligible land through--
          ``(1) partnership agreements with eligible partners; and
          ``(2) contracts with producers.
  ``(b) Purposes.--The purposes of the program are as follows:
          ``(1) To use covered programs to accomplish purposes and 
        functions similar to those of the following programs, as in 
        effect on September 30, 2012:
                  ``(A) The agricultural water enhancement program 
                established under section 1240I.
                  ``(B) The Chesapeake Bay watershed program 
                established under section 1240Q.
                  ``(C) The cooperative conservation partnership 
                initiative established under section 1243.
                  ``(D) The Great Lakes basin program for soil erosion 
                and sediment control established under section 1240P.
          ``(2) To further the conservation, restoration, and 
        sustainable use of soil, water, wildlife, and related natural 
        resources on eligible land on a regional or watershed scale.
          ``(3) To encourage eligible partners to cooperate with 
        producers in--
                  ``(A) meeting or avoiding the need for national, 
                State, and local natural resource regulatory 
                requirements related to production on eligible land; 
                and
                  ``(B) implementing projects that will result in the 
                carrying out of eligible activities that affect 
                multiple agricultural or nonindustrial private forest 
                operations on a local, regional, State, or multi-State 
                basis.

``SEC. 1271A. DEFINITIONS.

  ``In this subtitle:
          ``(1) Covered program.--The term `covered program' means the 
        following:
                  ``(A) The agricultural conservation easement program.
                  ``(B) The environmental quality incentives program.
                  ``(C) The conservation stewardship program.
          ``(2) Eligible activity.--The term `eligible activity' means 
        any of the following conservation activities:
                  ``(A) Water quality or quantity conservation, 
                restoration, or enhancement projects relating to 
                surface water and groundwater resources, including--
                          ``(i) the conversion of irrigated cropland to 
                        the production of less water-intensive 
                        agricultural commodities or dryland farming; or
                          ``(ii) irrigation system improvement and 
                        irrigation efficiency enhancement.
                  ``(B) Drought mitigation.
                  ``(C) Flood prevention.
                  ``(D) Water retention.
                  ``(E) Air quality improvement.
                  ``(F) Habitat conservation, restoration, and 
                enhancement.
                  ``(G) Erosion control and sediment reduction.
                  ``(H) Other related activities that the Secretary 
                determines will help achieve conservation benefits.
          ``(3) Eligible land.--The term `eligible land' means land on 
        which agricultural commodities, livestock, or forest-related 
        products are produced, including--
                  ``(A) cropland;
                  ``(B) grassland;
                  ``(C) rangeland;
                  ``(D) pastureland;
                  ``(E) nonindustrial private forest land; and
                  ``(F) other land incidental to agricultural 
                production (including wetlands and riparian buffers) on 
                which significant natural resource issues could be 
                addressed under the program.
          ``(4) Eligible partner.--The term `eligible partner' means 
        any of the following:
                  ``(A) An agricultural or silvicultural producer 
                association or other group of producers.
                  ``(B) A State or unit of local government.
                  ``(C) An Indian tribe.
                  ``(D) A farmer cooperative.
                  ``(E) A water district, irrigation district, rural 
                water district or association, or other organization 
                with specific water delivery authority to producers on 
                agricultural land.
                  ``(F) An institution of higher education.
                  ``(G) An organization with an established history of 
                working cooperatively with producers on agricultural 
                land, as determined by the Secretary, to address--
                          ``(i) local conservation priorities related 
                        to agricultural production, wildlife habitat 
                        development, or nonindustrial private forest 
                        land management; or
                          ``(ii) critical watershed-scale soil erosion, 
                        water quality, sediment reduction, or other 
                        natural resource issues.
          ``(5) Partnership agreement.--The term `partnership 
        agreement' means an agreement entered into under section 1271B 
        between the Secretary and an eligible partner.
          ``(6) Program.--The term `program' means the regional 
        conservation partnership program established by this subtitle.

``SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS.

  ``(a) Partnership Agreements Authorized.--The Secretary may enter 
into a partnership agreement with an eligible partner to implement a 
project that will assist producers with installing and maintaining an 
eligible activity on eligible land.
  ``(b) Length.--A partnership agreement shall be for a period not to 
exceed 5 years, except that the Secretary may extend the agreement one 
time for up to 12 months when an extension is necessary to meet the 
objectives of the program.
  ``(c) Duties of Partners.--
          ``(1) In general.--Under a partnership agreement, the 
        eligible partner shall--
                  ``(A) define the scope of a project, including--
                          ``(i) the eligible activities to be 
                        implemented;
                          ``(ii) the potential agricultural or 
                        nonindustrial private forest land operations 
                        affected;
                          ``(iii) the local, State, multi-State, or 
                        other geographic area covered; and
                          ``(iv) the planning, outreach, 
                        implementation, and assessment to be conducted;
                  ``(B) conduct outreach to producers for potential 
                participation in the project;
                  ``(C) at the request of a producer, act on behalf of 
                a producer participating in the project in applying for 
                assistance under section 1271C;
                  ``(D) leverage financial or technical assistance 
                provided by the Secretary with additional funds to help 
                achieve the project objectives;
                  ``(E) conduct an assessment of the project's effects; 
                and
                  ``(F) at the conclusion of the project, report to the 
                Secretary on its results and funds leveraged.
          ``(2) Contribution.--An eligible partner shall provide a 
        significant portion of the overall costs of the scope of the 
        project that is the subject of the agreement entered into under 
        subsection (a), as determined by the Secretary.
  ``(d) Applications.--
          ``(1) Competitive process.--The Secretary shall conduct a 
        competitive process to select applications for partnership 
        agreements and may assess and rank applications with similar 
        conservation purposes as a group.
          ``(2) Criteria used.--In carrying out the process described 
        in paragraph (1), the Secretary shall make public the criteria 
        used in evaluating applications.
          ``(3) Content.--An application to the Secretary shall include 
        a description of--
                  ``(A) the scope of the project, as described in 
                subsection (c)(1)(A);
                  ``(B) the plan for monitoring, evaluating, and 
                reporting on progress made towards achieving the 
                project's objectives;
                  ``(C) the program resources requested for the 
                project, including the covered programs to be used and 
                estimated funding needed from the Secretary;
                  ``(D) eligible partners collaborating to achieve 
                project objectives, including their roles, 
                responsibilities, capabilities, and financial 
                contribution; and
                  ``(E) any other elements the Secretary considers 
                necessary to adequately evaluate and competitively 
                select applications for funding under the program.
          ``(4) Priority to certain applications.--The Secretary may 
        give a higher priority to applications that--
                  ``(A) assist producers in meeting or avoiding the 
                need for a natural resource regulatory requirement;
                  ``(B) have a high percentage of eligible producers in 
                the area to be covered by the agreement;
                  ``(C) significantly leverage non-Federal financial 
                and technical resources and coordinate with other 
                local, State, or national efforts;
                  ``(D) deliver high percentages of applied 
                conservation to address conservation priorities or 
                regional, State, or national conservation initiatives;
                  ``(E) provide innovation in conservation methods and 
                delivery, including outcome-based performance measures 
                and methods; or
                  ``(F) meet other factors that are important for 
                achieving the purposes of the program, as determined by 
                the Secretary.

``SEC. 1271C. ASSISTANCE TO PRODUCERS.

  ``(a) In General.--The Secretary shall enter into contracts with 
producers to provide financial and technical assistance to--
          ``(1) producers participating in a project with an eligible 
        partner, as described in section 1271B; or
          ``(2) producers that fit within the scope of a project 
        described in section 1271B or a critical conservation area 
        designated under section 1271F, but who are seeking to 
        implement an eligible activity on eligible land independent of 
        a partner.
  ``(b) Terms and Conditions.--
          ``(1) Consistency with program rules.--Except as provided in 
        paragraph (2), the Secretary shall ensure that the terms and 
        conditions of a contract under this section are consistent with 
        the applicable rules of the covered programs to be used as part 
        of the project, as described in the application under section 
        1271B(d)(3)(C).
          ``(2) Adjustments.--Except with respect to statutory program 
        requirements governing appeals, payment limitations, and 
        conservation compliance, the Secretary may adjust the 
        discretionary program rules of a covered program--
                  ``(A)   to provide a simplified application and 
                evaluation process; and
                  ``(B) to better reflect unique local circumstances 
                and purposes if the Secretary determines such 
                adjustments are necessary to achieve the purposes of 
                the program.
  ``(c) Payments.--
          ``(1) In general.--In accordance with statutory requirements 
        of the covered programs involved, the Secretary may make 
        payments to a producer in an amount determined by the Secretary 
        to be necessary to achieve the purposes of the program.
          ``(2) Payments to producers in states with water quantity 
        concerns.--The Secretary may provide payments to producers 
        participating in a project that addresses water quantity 
        concerns for a period of five years in an amount sufficient to 
        encourage conversion from irrigated farming to dryland farming.
          ``(3) Waiver authority.--To assist in the implementation of 
        the program, the Secretary may waive the applicability of the 
        limitation in section 1001D(b)(2) of this Act for participating 
        producers if the Secretary determines that the waiver is 
        necessary to fulfill the objectives of the program.

``SEC. 1271D. FUNDING.

  ``(a) Availability of Funds.--The Secretary shall use $100,000,000 of 
the funds of the Commodity Credit Corporation for each of fiscal years 
2013 through 2017 to carry out the program.
  ``(b) Duration of Availability.--Funds made available under 
subsection (a) shall remain available until expended.
  ``(c) Additional Funding and Acres.--
          ``(1) In general.--In addition to the funds made available 
        under subsection (a), the Secretary shall reserve 6 percent of 
        the funds and acres made available for a covered program for 
        each of fiscal years 2013 through 2017 in order to ensure 
        additional resources are available to carry out this program.
          ``(2) Unused funds and acres.--Any funds or acres reserved 
        under paragraph (1) for a fiscal year from a covered program 
        that are not obligated under this program by April 1 of that 
        fiscal year shall be returned for use under the covered 
        program.
  ``(d) Allocation of Funding.--Of the funds and acres made available 
for the program under subsections (a) and (c), the Secretary shall 
allocate--
          ``(1) 25 percent of the funds and acres to projects based on 
        a State competitive process administered by the State 
        Conservationist, with the advice of the State technical 
        committee established under subtitle G;
          ``(2) 50 percent of the funds and acres to projects based on 
        a national competitive process to be established by the 
        Secretary; and
          ``(3) 25 percent of the funds and acres to projects for the 
        critical conservation areas designated under section 1271F.
  ``(e) Limitation on Administrative Expenses.--None of the funds made 
available under the program may be used to pay for the administrative 
expenses of eligible partners.

``SEC. 1271E. ADMINISTRATION.

  ``(a) Disclosure.--In addition to the criteria used in evaluating 
applications as described in section 1271B(d)(2), the Secretary shall 
make publicly available information on projects selected through the 
competitive process described in section 1271B(d)(1).
  ``(b) Reporting.--Not later than December 31, 2013, and every two 
years thereafter, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report on the 
status of projects funded under the program, including--
          ``(1) the number and types of eligible partners and producers 
        participating in the partnership agreements selected;
          ``(2) the number of producers receiving assistance; and
          ``(3) total funding committed to projects, including from 
        Federal and non-Federal resources.

``SEC. 1271F. CRITICAL CONSERVATION AREAS.

  ``(a) In General.--In administering funds under section 1271D(d)(3), 
the Secretary shall select applications for partnership agreements and 
producer contracts within critical conservation areas designated under 
this section.
  ``(b) Critical Conservation Area Designations.--
          ``(1) Priority.--In designating critical conservation areas 
        under this section, the Secretary shall give priority to 
        geographical areas based on the degree to which the 
        geographical area--
                  ``(A) includes multiple States with significant 
                agricultural production;
                  ``(B) is covered by an existing regional, State, 
                binational, or multistate agreement or plan that has 
                established objectives, goals, and work plans and is 
                adopted by a Federal, State, or regional authority;
                  ``(C) would benefit from water quality improvement, 
                including through reducing erosion, promoting sediment 
                control, and addressing nutrient management activities 
                affecting large bodies of water of regional, national, 
                or international significance;
                  ``(D) would benefit from water quantity improvement, 
                including improvement relating to--
                          ``(i) groundwater, surface water, aquifer, or 
                        other water sources; or
                          ``(ii) a need to promote water retention and 
                        flood prevention; or
                  ``(E) contains producers that need assistance in 
                meeting or avoiding the need for a natural resource 
                regulatory requirement that could have a negative 
                economic impact on agricultural operations within the 
                area.
          ``(2) Limitation.--The Secretary may not designate more than 
        8 geographical areas as critical conservation areas under this 
        section.
  ``(c) Administration.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall administer any partnership agreement or 
        producer contract under this section in a manner that is 
        consistent with the terms of the program.
          ``(2) Relationship to existing activity.--The Secretary 
        shall, to the maximum extent practicable, ensure that eligible 
        activities carried out in critical conservation areas 
        designated under this section complement and are consistent 
        with other Federal and State programs and water quality and 
        quantity strategies.
          ``(3) Additional authority.--For a critical conservation area 
        described in subsection (b)(1)(D), the Secretary may use 
        authorities under the Watershed Protection and Flood Prevention 
        Act (16 U.S.C. 1001 et seq.), other than section 14 of such Act 
        (16 U.S.C. 1012), to carry out projects for the purposes of 
        this section.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

                Subtitle F--Other Conservation Programs

SEC. 2501. 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 ``2012'' and inserting ``2017''.

SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

  Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb-
2) is amended to read as follows:
  ``(b) Funding.--
          ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $20,000,000 for 
        each of fiscal years 2008 through 2017.
          ``(2) Availability of funds.--In addition to funds made 
        available under paragraph (1), of the funds of the Commodity 
        Credit Corporation, the Secretary shall use $5,000,000, to 
        remain available until expended.''.

SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

  (a) Funding.--Section 1240R(f) of the Food Security Act of 1985 (16 
U.S.C. 3839bb-5(f)) is amended by inserting before the period at the 
end the following: ``and $30,000,000 for the period of fiscal years 
2013 through 2017''.
  (b) Report on Program Effectiveness.--Not later than two years after 
the date of the enactment of this Act, the Secretary of Agriculture 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report evaluating the effectiveness of the 
voluntary public access program established by section 1240R of the 
Food Security Act of 1985 (16 U.S.C. 3839bb-5), including--
          (1) identifying cooperating agencies;
          (2) identifying the number of land holdings and total acres 
        enrolled by each State and tribal government;
          (3) evaluating the extent of improved access on eligible 
        lands, improved wildlife habitat, and related economic 
        benefits; and
          (4) any other relevant information and data relating to the 
        program that would be helpful to such Committees.

SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

  (a) Funding.--Subsection (c) of section 1252 of the Food Security Act 
of 1985 (16 U.S.C. 3851) is amended to read as follows:
  ``(c) Funding.--
          ``(1) In general.--The Secretary may carry out the ACES 
        program using funds made available to carry out each program 
        under this title.
          ``(2) Exclusion.--Funds made available to carry out the 
        conservation reserve program may not be used to carry out the 
        ACES program.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2505. 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--
          (1) in subparagraph (E), by striking ``; and'' and inserting 
        a semicolon;
          (2) in subparagraph (F), by striking the period and inserting 
        a semicolon;
          (3) in subparagraph (G), by striking the period and inserting 
        ``; and''; and
          (4) by adding at the end the following new subparagraph:
                  ``(H) $250,000,000 for fiscal year 2013, to remain 
                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 ``2012'' and inserting ``2017''.

SEC. 2506. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

  (a) Uses.--Section 524(b)(2) of the Federal Crop Insurance Act (7 
U.S.C. 1524(b)(2)) is amended--
          (1) by striking subparagraph (B) and redesignating 
        subparagraphs (C) through (F) as subparagraphs (B) through (E), 
        respectively; and
          (2) in subparagraph (B) (as so redesignated)--
                  (A) in the matter preceding clause (i), by striking 
                ``or resource conservation practices''; and
                  (B) by striking clause (i) and redesignating clauses 
                (ii) through (iv) as clauses (i) through (iii), 
                respectively.
  (b) Commodity Credit Corporation.--
          (1) Funding.--Section 524(b)(4)(B) of the Federal Crop 
        Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended to read as 
        follows:
                  ``(B) Funding.--The Commodity Credit Corporation 
                shall make available to carry out this subsection not 
                less than $10,000,000 for each fiscal year.''.
          (2) Certain uses.--Section 524(b)(4)(C) of the Federal Crop 
        Insurance Act (7 U.S.C. 1524(b)(4)(C)) is amended--
                  (A) in clause (i)--
                          (i) by striking ``50'' and inserting ``30''; 
                        and
                          (ii) by striking ``(A), (B), and (C)'' and 
                        inserting ``(A) and (B)''; and
                  (B) in clause (iii), by striking ``40'' and inserting 
                ``60''.

                 Subtitle G--Funding and Administration

SEC. 2601. FUNDING.

  (a) In General.--Subsection (a) of section 1241 of the Food Security 
Act of 1985 (16 U.S.C. 3841) is amended to read as follows:
  ``(a) Annual Funding.--For each of fiscal years 2013 through 2017, 
the Secretary shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to carry out the following programs under 
this title (including the provision of technical assistance):
          ``(1) The conservation reserve program under subchapter B of 
        chapter 1 of subtitle D, including, to the maximum extent 
        practicable, $25,000,000 for the period of fiscal years 2013 
        through 2017 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.
          ``(2) The agriculture conservation easement program under 
        subtitle H, using, to the maximum extent practicable--
                  ``(A) $450,000,000 in fiscal year 2013;
                  ``(B) $475,000,000 in fiscal year 2014;
                  ``(C) $500,000,000 in fiscal year 2015;
                  ``(D) $525,000,000 in fiscal year 2016; and
                  ``(E) $266,000,000 in fiscal year 2017.
          ``(3) The conservation security program under subchapter A of 
        chapter 2 of subtitle D, using such sums as are necessary to 
        administer contracts entered into before September 30, 2008.
          ``(4) The conservation stewardship program under subchapter B 
        of chapter 2 of subtitle D.
          ``(5) The environmental quality incentives program under 
        chapter 4 of subtitle D, using, to the maximum extent 
        practicable, $1,750,000,000 for each of fiscal years 2013 
        through 2017.''.
  (b) Guaranteed Availability of Funds.--Section 1241 of the Food 
Security Act of 1985 (16 U.S.C. 3841) is amended--
          (1) by redesignating subsections (b) through (h) as 
        subsections (c) through (i); respectively; and
          (2) by inserting after subsection (a) the following new 
        subsection:
  ``(b) Availability of Funds.--Amounts made available by subsection 
(a) shall be used by the Secretary to carry out the programs specified 
in such subsection for fiscal years 2013 through 2017 and shall remain 
available until expended. Amounts made available for the programs 
specified in such subsection during a fiscal year through 
modifications, cancellations, terminations, and other related 
administrative actions and not obligated in that fiscal year shall 
remain available for obligation during subsequent fiscal years, but 
shall reduce the amount of additional funds made available in the 
subsequent fiscal year by an amount equal to the amount remaining 
unobligated.''.
  (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 2602. TECHNICAL ASSISTANCE.

  (a) In General.--Subsection (c) of section 1241 of the Food Security 
Act of 1985 (16 U.S.C. 3841), as redesignated by section 2601(b)(1) of 
this Act, is amended to read as follows:
  ``(c) Technical Assistance.--
          ``(1) Availability of funds.--Commodity Credit Corporation 
        funds made available for a fiscal year for each of the programs 
        specified in subsection (a)--
                  ``(A) shall be available for the provision of 
                technical assistance for the programs for which funds 
                are made available as necessary to implement the 
                programs effectively; and
                  ``(B) shall not be available for the provision of 
                technical assistance for conservation programs 
                specified in subsection (a) other than the program for 
                which the funds were made available.
          ``(2) Report.--Not later than December 31, 2012, the 
        Secretary shall submit (and update as necessary in subsequent 
        years) to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report--
                  ``(A) detailing the amount of technical assistance 
                funds requested and apportioned in each program 
                specified in subsection (a) during the preceding fiscal 
                year; and
                  ``(B) any other data relating to this subsection that 
                would be helpful to such Committees.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2603. REGIONAL EQUITY.

  (a) In General.--Section 1241 of the Food Security Act of 1985 (16 
U.S.C. 3841) is amended by striking subsection (e) (as redesignated by 
section 2601(b)(1) of this Act) and inserting the following:
  ``(e) Regional Equity.--
          ``(1) Equitable distribution.--In determining funding 
        allocations each fiscal year, the Secretary shall, after 
        considering available funding and program demand in each State, 
        provide a distribution of funds for conservation programs under 
        subtitle D (excluding the conservation reserve program under 
        subchapter B of chapter 1), subtitle H (excluding wetland 
        easements under section 1265C), and subtitle I to ensure 
        equitable program participation proportional to historical 
        funding allocations and usage by all States.
          ``(2) Minimum percentage.--In determining the specific 
        funding allocations under paragraph (1), the Secretary shall--
                  ``(A) ensure that during the first quarter of each 
                fiscal year each State has the opportunity to establish 
                that the State can use an aggregate allocation amount 
                of at least 0.6 percent of the funds made available for 
                those conservation programs; and
                  ``(B) for each State that can so establish, provide 
                an aggregate amount of at least 0.6 percent of the 
                funds made available for those conservation 
                programs.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSISTANCE TO CERTAIN 
                    FARMERS OR RANCHERS FOR CONSERVATION ACCESS.

  (a) In General.--Subsection (h) of section 1241 of the Food Security 
Act of 1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is 
amended--
          (1) in paragraph (1) by striking ``2012'' and inserting 
        ``2017''; and
          (2) by adding at the end the following new paragraph:
          ``(4) Preference.--In providing assistance under paragraph 
        (1), the Secretary shall give preference to a veteran farmer or 
        rancher (as defined in section 2501(e) of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        2279(e))) that qualifies under subparagraph (A) or (B) of 
        paragraph (1).''.
  (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE.

  (a) In General.--Subsection (i) (as redesignated by section 
2601(b)(1)) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) is amended--
          (1) in paragraph (1), by striking ``wetlands reserve 
        program'' and inserting ``agricultural conservation easement 
        program'';
          (2) by striking paragraphs (2) and (3) and redesignating 
        paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), 
        respectively; and
          (3) in paragraph (3) (as so redesignated)--
                  (A) by striking ``agricultural water enhancement 
                program'' and inserting ``regional conservation 
                partnership program''; and
                  (B) by striking ``1240I(g)'' and inserting 
                ``1271C(c)(3)''.
  (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 2606. REVIEW OF CONSERVATION PRACTICE STANDARDS.

  Section 1242(h)(1)(A) of the Food Security Act of 1985 (16 U.S.C. 
3842(h)(1)(A)) is amended by striking ``the Food, Conservation, and 
Energy Act of 2008'' and inserting ``the Federal Agriculture Reform and 
Risk Management Act of 2012''.

SEC. 2607. ADMINISTRATIVE REQUIREMENTS APPLICABLE TO ALL CONSERVATION 
                    PROGRAMS.

  (a) In General.--Section 1244 of the Food Security Act of 1985 (16 
U.S.C. 3844) is amended--
          (1) in subsection (a)(2), by adding at the end the following 
        new subparagraph:
                  ``(E) Veteran farmers or ranchers (as defined in 
                section 2501(e) of the Food, Agriculture, Conservation, 
                and Trade Act of 1990 (7 U.S.C. 2279(e))).'';
          (2) in subsection (d), by inserting ``, H, and I'' before the 
        period at the end;
          (3) in subsection (f)--
                  (A) in paragraph (1)(B), by striking ``country'' and 
                inserting ``county''; and
                  (B) in paragraph (3), by striking ``subsection 
                (c)(2)(B) or (f)(4)'' and inserting ``subsection 
                (c)(2)(A)(ii) or (f)(2)''; and
          (4) by adding at the end the following new subsections:
  ``(j) Improved Administrative Efficiency and Effectiveness.--In 
administrating a conservation program under this title, the Secretary 
shall, to the maximum extent practicable--
          ``(1) seek to reduce administrative burdens and costs to 
        producers by streamlining conservation planning and program 
        resources; and
          ``(2) take advantage of new technologies to enhance 
        efficiency and effectiveness.
  ``(k) Relation to Other Payments.--Any payment received by an owner 
or operator under this title, including an easement payment or rental 
payment, shall be in addition to, and not affect, the total amount of 
payments that the owner or operator is otherwise eligible to receive 
under any of the following:
          ``(1) This Act.
          ``(2) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
          ``(3) The Federal Agriculture Reform and Risk Management Act 
        of 2012.
          ``(4) Any law that succeeds a law specified in paragraph (1), 
        (2), or (3).''.
  (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMITTEES.

  Section 1261(b) of the Food Security Act of 1985 (16 U.S.C. 3861(b)) 
is amended by striking ``Not later than 180 days after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, the 
Secretary shall develop'' and inserting ``The Secretary shall review 
and update as necessary''.

SEC. 2609. RULEMAKING AUTHORITY.

  Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is amended by adding at the end the following new 
section:

``SEC. 1246. REGULATIONS.

  ``(a) In General.--The Secretary shall promulgate such regulations as 
are necessary to implement programs under this title, including such 
regulations as the Secretary determines to be necessary to ensure a 
fair and reasonable application of the limitations established under 
section 1244(f).
  ``(b) Rulemaking Procedure.--The promulgation of regulations and 
administration of programs under this title--
          ``(1) shall be carried out without regard to--
                  ``(A) the Statement of Policy of the Secretary 
                effective July 24, 1971 (36 Fed. Reg. 13804), relating 
                to notices of proposed rulemaking and public 
                participation in rulemaking; and
                  ``(B) chapter 35 of title 44, United States Code 
                (commonly known as the Paperwork Reduction Act); and
          ``(2) shall be made as an interim rule effective on 
        publication with an opportunity for notice and comment.
  ``(c) Congressional Review of Agency Rulemaking.--In promulgating 
regulations under this section, the Secretary shall use the authority 
provided under section 808 of title 5, United States Code.''.

 Subtitle H--Repeal of Superseded Program Authorities and Transitional 
                    Provisions; Technical Amendments

SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

  (a) Repeal.--Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
3830) is repealed.
  (b) Conforming Amendment.--The heading of chapter 1 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is 
amended to read as follows: ``CONSERVATION RESERVE''.

SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.

  (a) Repeal.--Section 1231A of the Food Security Act of 1985 (16 
U.S.C. 3831a) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under section 
        1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) before 
        October 1, 2012, or any payments required to be made in 
        connection with the contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the conservation reserve program under subchapter B 
        of chapter 1 of subtitle D of title XII of the Food Security 
        Act of 1985 (16 U.S.C. 3831 et seq.) to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2703. WETLANDS RESERVE PROGRAM.

  (a) Repeal.--Subchapter C of chapter 1 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under subchapter C 
        of chapter 1 of subtitle D of title XII of the Food Security 
        Act of 1985 (16 U.S.C. 3837 et seq.) before October 1, 2012, or 
        any payments required to be made in connection with the 
        contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the agricultural conservation easement program under 
        subtitle H of title XII of the Food Security Act of 1985, as 
        added by section 2301 of this Act, to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY PROGRAM.

  (a) Repeal.--Subchapter C of chapter 2 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is repealed.
  (b) Conforming Amendment.--The heading of chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is 
amended by striking ``AND FARMLAND PROTECTION''.
  (c) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendments made by 
        this section shall not affect the validity or terms of any 
        contract entered into by the Secretary of Agriculture under 
        subchapter C of chapter 2 of subtitle D of title XII of the 
        Food Security Act of 1985 (16 U.S.C. 3838h et seq.) before 
        October 1, 2012, or any payments required to be made in 
        connection with the contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the agricultural conservation easement program under 
        subtitle H of title XII of the Food Security Act of 1985, as 
        added by section 2301 of this Act, to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 2705. GRASSLAND RESERVE PROGRAM.

  (a) Repeal.--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.) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under subchapter D 
        of chapter 2 of subtitle D of title XII of the Food Security 
        Act of 1985 (16 U.S.C. 3838n et seq.) before October 1, 2012, 
        or any payments required to be made in connection with the 
        contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the agricultural conservation easement program under 
        subtitle H of title XII of the Food Security Act of 1985, as 
        added by section 2301 of this Act, to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

  (a) Repeal.--Section 1240I of the Food Security Act of 1985 (16 
U.S.C. 3839aa-9) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under section 
        1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9) 
        before October 1, 2012, or any payments required to be made in 
        connection with the contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the regional conservation partnership program under 
        subtitle I of title XII of the Food Security Act of 1985, as 
        added by section 2401 of this Act, to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.

  (a) Repeal.--Section 1240N of the Food Security Act of 1985 (16 
U.S.C. 3839bb-1) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under section 
        1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb-1) 
        before October 1, 2012, or any payments required to be made in 
        connection with the contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the environmental quality incentives program under 
        chapter 4 of subtitle D of title XII of the Food Security Act 
        of 1985 (16 U.S.C. 3839aa et seq.) to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2708. GREAT LAKES BASIN PROGRAM.

  (a) Repeal.--Section 1240P of the Food Security Act of 1985 (16 
U.S.C. 3839bb-3) is repealed.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.

  (a) Repeal.--Section 1240Q of the Food Security Act of 1985 (16 
U.S.C. 3839bb-4) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under section 
        1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb-4) 
        before October 1, 2012, or any payments required to be made in 
        connection with the contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the regional conservation partnership program under 
        subtitle I of title XII of the Food Security Act of 1985, as 
        added by section 2401 of this Act, to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

  (a) Repeal.--Section 1243 of the Food Security Act of 1985 (16 U.S.C. 
3843) is repealed.
  (b) Transitional Provisions.--
          (1) Effect on existing contracts.--The amendment made by this 
        section shall not affect the validity or terms of any contract 
        entered into by the Secretary of Agriculture under section 1243 
        of the Food Security Act of 1985 (16 U.S.C. 3843) before 
        October 1, 2012, or any payments required to be made in 
        connection with the contract.
          (2) Funding.--The Secretary may use funds made available to 
        carry out the regional conservation partnership program under 
        subtitle I of title XII of the Food Security Act of 1985, as 
        added by section 2401 of this Act, to continue to carry out 
        contracts referred to in paragraph (1) using the provisions of 
        law and regulation applicable to such contracts as they existed 
        on September 30, 2012.
  (c) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM.

  Chapter 3 of subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3839 et seq.) is repealed.

SEC. 2712. TECHNICAL AMENDMENTS.

  (a) Definitions.--Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended in the matter preceding paragraph (1) by 
striking ``E'' and inserting ``I''.
  (b) Program Ineligibility.--Section 1211(a) of the Food Security Act 
of 1985 (16 U.S.C. 3811(a)) is amended by striking ``predominate'' each 
place it appears and inserting ``predominant''.
  (c) Specialty Crop Producers.--Section 1242(i) of the Food Security 
Act of 1985 (16 U.S.C. 3842(i)) is amended in the header by striking 
``Speciality'' and inserting ``Specialty''.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

SEC. 3001. GENERAL AUTHORITY.

  Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--
          (1) in the matter preceding paragraph (1), by inserting ``(to 
        be implemented by the Administrator)'' after ``under this 
        title''; and
          (2) by striking paragraph (7) and the second sentence and 
        inserting the following new paragraph:
          ``(7) build resilience to mitigate and prevent food crises 
        and reduce the future need for emergency aid.''.

SEC. 3002. SUPPORT FOR ORGANIZATIONS THROUGH WHICH ASSISTANCE IS 
                    PROVIDED.

  Section 202(e)(1) of the Food for Peace Act (7 U.S.C. 1722(e)(1)) is 
amended by striking ``13 percent'' and inserting ``11 percent''.

SEC. 3003. FOOD AID QUALITY.

  Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is 
amended--
          (1) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``The Administrator'' and 
                        inserting ``In consultation with the Secretary, 
                        the Administrator''; and
                          (ii) by inserting ``to establish a 
                        mechanism'' after ``this title'';
                  (B) by striking ``and'' at the end of subparagraph 
                (B); and
                  (C) by striking subparagraph (C) and inserting the 
                following new paragraphs:
                  ``(C) to evaluate, as necessary, the use of current 
                and new agricultural commodities and products thereof 
                in different program settings and for particular 
                recipient groups, including the testing of prototypes;
                  ``(D) to establish and implement appropriate 
                protocols for quality assurance of food products 
                procured by the Secretary for food aid programs; and
                  ``(E) to periodically update program guidelines on 
                the recommended use of agricultural commodities and 
                food products in food aid programs to reflect findings 
                from the implementation of this subsection and other 
                relevant information.'';
          (2) in paragraph (2), by striking ``The Administrator'' and 
        inserting ``In consultation with the Secretary, the 
        Administrator''; and
          (3) in paragraph (3), by striking ``fiscal years 2009 through 
        2011, not more than $4,500,000'' and inserting ``fiscal years 
        2013 through 2017, not more than $1,000,000''.

SEC. 3004. MINIMUM 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 ``2012'' and inserting 
        ``2017''; and
          (2) in paragraph (2), by striking ``2012'' and inserting 
        ``2017''.

SEC. 3005. FOOD AID CONSULTATIVE GROUP.

  (a) Membership.--Section 205(b) of the Food for Peace Act (7 U.S.C. 
1725(b)) is amended--
          (1) by striking ``and'' at the end of paragraph (6);
          (2) by redesignating paragraph (7) as paragraph (8); and
          (3) by inserting after paragraph (6) the following new 
        paragraph:
          ``(7) representatives from the United States agricultural 
        processing sector involved in providing agricultural 
        commodities for programs under this Act; and''.
  (b) Consultation.--Section 205(d) of the Food for Peace Act (7 U.S.C. 
1725(d)) is amended--
          (1) by striking the first sentence and inserting the 
        following:
          ``(1) Consultation in advance of issuance of implementation 
        regulations, handbooks, and guidelines.--Not later than 45 days 
        before a proposed regulation, handbook, or guideline 
        implementing this title, or a proposed significant revision to 
        a regulation, handbook, or guideline implementing this title, 
        becomes final, the Administrator shall provide the proposal to 
        the Group for review and comment.''; and
          (2) by adding at the end the following new paragraph:
          ``(2) Consultation regarding food aid quality efforts.--The 
        Administrator shall seek input from and consult with the Group 
        on the implementation of section 202(h).''.
  (c) Reauthorization.--Section 205(f) of the Food for Peace Act (7 
U.S.C. 1725(f)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 3006. OVERSIGHT, MONITORING, AND EVALUATION.

  (a) Regulations and Guidance.--Section 207(c) of the Food for Peace 
Act (7 U.S.C. 1726a(c)) is amended--
          (1) in the subsection heading, by inserting ``and Guidance'' 
        after ``Regulations'';
          (2) in paragraph (1), by adding at the end the following new 
        sentence: ``Not later than 270 days after the date of the 
        enactment of the Federal Agriculture Reform and Risk Management 
        Act of 2012, the Administrator shall issue all regulations and 
        revisions to agency guidance necessary to implement the 
        amendments made to this title by such Act.''; and
          (3) in paragraph (2), by inserting ``and guidance'' after 
        ``develop regulations''.
  (b) Funding.--Section 207(f) of the Food for Peace Act (7 U.S.C. 
1726a(f)) is amended--
          (1) in paragraph (2)--
                  (A) by inserting ``and'' at the end of subparagraph 
                (D);
                  (B) by striking ``; and'' at the end of subparagraph 
                (E) and inserting the period; and
                  (C) by striking subparagraph (F);
          (2) by striking paragraphs (3) and (4); and
          (3) by redesignating paragraphs (5) and (6) as paragraphs (3) 
        and (4), respectively; and
          (4) in paragraph (4) (as so redesignated)--
                  (A) in subparagraph (A), by striking ``, except for 
                paragraph (2)(F), for which only $2,500,000 shall be 
                made available during fiscal year 2009'' and inserting 
                ``and up to $10,000,000 of such funds for each of 
                fiscal years 2013 through 2017''; and
                  (B) in subparagraph (B)(i), by striking ``2012'' and 
                inserting ``2017''.
  (c) Implementation Reports.--Not later than 270 days after the date 
of the enactment of this Act, the Administrator of the Agency for 
International Development shall submit to the Committee on Agriculture, 
Nutrition, and Forestry of the Senate and the Committees on Agriculture 
and Foreign Affairs of the House of Representatives a report 
describing--
          (1) the implementation of section 207(c) of the Food for 
        Peace Act (7 U.S.C. 1726a(c));
          (2) the surveys, studies, monitoring, reporting, and audit 
        requirements for programs conducted under title II of such Act 
        (7 U.S.C. 1721 et seq.) by an eligible organization that is a 
        nongovernmental organization (as such term is defined in 
        section 402 of such Act (7 U.S.C. 1732)); and
          (3) the surveys, studies, monitoring, reporting, and audit 
        requirements for such programs by an eligible organization that 
        is an intergovernmental organization, such as the World Food 
        Program or other multilateral organization.

SEC. 3007. 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 by striking ``2012'' and inserting ``2017''.

SEC. 3008. GENERAL PROVISIONS.

  (a) Impact on Local Farmers and Economy.--Section 403(b) of the Food 
for Peace Act (7 U.S.C. 1733(b)) is amended by adding at the end the 
following new sentence: ``The Secretary or the Administrator, as 
appropriate, shall seek information, as part of the regular proposal 
and submission process, from implementing agencies on the potential 
benefits to the local economy of sales of agricultural commodities 
within the recipient country.''.
  (b) Prevention of Price Disruptions.--Section 403(e) of the Food for 
Peace Act (7 U.S.C. 1733(e)) is amended--
          (1) in paragraph (2), by striking ``reasonable market price'' 
        and inserting ``fair market value''; and
          (2) by adding at the end the following new paragraph:
          ``(3) Coordination on assessments.--The Secretary and the 
        Administrator shall coordinate in assessments to carry out 
        paragraph (1) and in the development of approaches to be used 
        by implementing agencies for determining the fair market value 
        described in paragraph (2).''.
  (c) Report on Use of Funds.--Section 403 of the Food for Peace Act (7 
U.S.C. 1733) is amended by adding at the end the following new 
subsection:
  ``(m) Report on Use of Funds.--Not later than 180 days after the date 
of the enactment of the Federal Agriculture Reform and Risk Management 
Act of 2012, and annually thereafter, the Administrator shall submit to 
Congress a report--
          ``(1) specifying the amount of funds (including funds for 
        administrative costs, indirect cost recovery, and internal 
        transportation, storage and handling, and associated 
        distribution costs) provided to each eligible organization that 
        received assistance under this Act in the previous fiscal year; 
        and
          ``(2) describing how those funds were used by the eligible 
        organization.''.

SEC. 3009. PREPOSITIONING OF AGRICULTURAL COMMODITIES.

  Section 407(c)(4) of the Food for Peace Act (7 U.S.C. 1736a(c)(4)) is 
amended--
          (1) in subparagraph (A)--
                  (A) by striking ``2012'' and inserting ``2017''; and
                  (B) by striking ``for each such fiscal year not more 
                than $10,000,000 of such funds'' and inserting ``for 
                each of fiscal years 2001 through 2012 not more than 
                $10,000,000 of such funds and for each of fiscal years 
                2013 through 2017 not more than $15,000,000 of such 
                funds''; and
          (2) by striking subparagraph (B) and inserting the following 
        new subparagraph:
                  ``(B) Additional prepositioning sites.--The 
                Administrator may establish additional sites for 
                prepositioning in foreign countries or change the 
                location of current sites for prepositioning in foreign 
                countries after conducting, and based on the results 
                of, assessments of need, feasibility, and cost.''.

SEC. 3010. ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND ACTIVITIES.

  Section 407(f)(1) of the Food for Peace Act (7 U.S.C. 1736a(f)(1)) is 
amended--
          (1) in the paragraph heading, by striking ``agricultural 
        trade'' and inserting ``food aid'';
          (2) in subparagraph (B)(ii), by inserting before the 
        semicolon at the end the following: ``and the intended 
        beneficiaries of the project or activity''; and
          (3) in subparagraph (B)(iii)--
                  (A) by striking ``and'' at the end of subclause (I);
                  (B) by inserting ``and'' at the end of subclause 
                (II); and
                  (C) by inserting after subclause (II) the following 
                new subclause:
                                  ``(III) the McGovern-Dole 
                                International Food for Education and 
                                Child Nutrition Program established by 
                                section 3107 of the Farm Security and 
                                Rural Investment Act of 2002 (7 U.S.C. 
                                1736o-1);''.

SEC. 3011. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO PROVIDE OTHER 
                    ASSISTANCE.

  Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended by 
striking ``2012'' and inserting ``2017''.

SEC. 3012. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization of Appropriations.--Section 412(a)(1) of the Food 
for Peace Act (7 U.S.C. 1736f(a)(1)) is amended by striking ``for 
fiscal year 2008 and each fiscal year thereafter, $2,500,000,000'' and 
inserting ``$2,500,000,000 for each of fiscal years 2008 through 2012 
and $2,000,000,000 for each of fiscal years 2013 through 2017''.
  (b) Minimum Level of Nonemergency Food Assistance.--Paragraph (1) of 
section 412(e) of the Food for Peace Act (7 U.S.C. 1736f(e)) is amended 
to read as follows:
          ``(1) Funds and commodities.--For each of fiscal years 2013 
        through 2017, of the amounts made available to carry out 
        emergency and nonemergency food assistance programs under title 
        II, not less than $400,000,000 shall be expended for 
        nonemergency food assistance programs under such title.''.

SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.

  (a) Elimination of Obsolete Reference to Study.--Section 415(a)(2)(B) 
of the Food for Peace Act (7 U.S.C. 1736g-2(a)(2)(B)) is amended by 
striking ``, using recommendations'' and all that follows through 
``quality enhancements''.
  (b) Extension.--Section 415(c) of the Food for Peace Act (7 U.S.C. 
1736g-2(c)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

  Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended--
          (1) in subsection (d), in the matter preceding paragraph (1), 
        by inserting ``, and not less than the greater of $15,000,000 
        or 0.5 percent of the amounts made available for each of fiscal 
        years 2013 through 2017,'' after ``2012''; and
          (2) in subsection (e)(1), by striking ``2012'' and inserting 
        ``2017''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 3101. FUNDING FOR EXPORT CREDIT GUARANTEE PROGRAM.

  Section 211(b) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5641(b)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM.

  Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5641(c)(1)(A)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

  Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5723(a)) is amended by striking ``2012'' and inserting ``2017''.

               Subtitle C--Other Agricultural Trade Laws

SEC. 3201. FOOD FOR PROGRESS ACT OF 1985.

  (a) Extension.--The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
amended--
          (1) in subsection (f)(3), by striking ``2012'' and inserting 
        ``2017'';
          (2) in subsection (g), by striking ``2012'' and inserting 
        ``2017'';
          (3) in subsection (k), by striking ``2012'' and inserting 
        ``2017''; and
          (4) in subsection (l)(1), by striking ``2012'' and inserting 
        ``2017''.
  (b) Repeal of Completed Project.--Subsection (f) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph 
(6).

SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.

  Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended--
          (1) in subsection (b)(2)(B)(i), by striking ``2012'' both 
        places it appears and inserting ``2017''; and
          (2) in subsection (h), by striking ``2012'' both places it 
        appears and inserting ``2017''.

SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

  (a) Direct Credits or Export Credit Guarantees.--Section 1542(a) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 
101-624; 7 U.S.C. 5622 note) is amended by striking ``2012'' and 
inserting ``2017''.
  (b) Development of Agricultural Systems.--Section 1542(d)(1)(A)(i) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 
101-624; 7 U.S.C. 5622 note) is amended by striking ``2012'' and 
inserting ``2017''.

SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
                    NUTRITION PROGRAM.

  (a) Reauthorization.--Section 3107(l)(2) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 1736o-1(l)(2)) is amended by 
striking ``2012'' and inserting ``2017''.
  (b) Technical Correction.--Section 3107(d) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 1736o-1(d)) is amended by 
striking ``to'' in the matter preceding paragraph (1).

SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

  (a) Purpose.--Section 3205(b) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking 
``related barriers to trade'' and inserting ``technical barriers to 
trade''.
  (b) Funding.--Section 3205(e)(2) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended--
          (1) by inserting ``and'' at the end of subparagraph (C); and
          (2) by striking subparagraphs (D) and (E) and inserting the 
        following new subparagraph:
                  ``(D) $9,000,000 for each of fiscal years 2011 
                through 2017.''.

SEC. 3206. GLOBAL CROP DIVERSITY TRUST.

  Section 3202(c) of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 22 U.S.C. 2220a note) is amended by striking 
``section'' and all that follows through the period and inserting the 
following: ``section--
          ``(1) $60,000,000 for the period of fiscal years 2008 through 
        2012; and
          ``(2) $50,000,000 for the period of fiscal years 2013 through 
        2017.''.

SEC. 3207. UNDER SECRETARY OF AGRICULTURE FOR FOREIGN AGRICULTURAL 
                    SERVICES.

  (a) In General.--Subtitle B of the Department of Agriculture 
Reorganization Act of 1994 is amended by inserting after section 225 (7 
U.S.C. 6931) the following new section:

``SEC. 225A. UNDER SECRETARY OF AGRICULTURE FOR FOREIGN AGRICULTURAL 
                    SERVICES.

  ``(a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Foreign 
Agricultural Services.
  ``(b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Foreign Agricultural 
Services under subsection (a), the Under Secretary shall be appointed 
by the President, by and with the advice and consent of the Senate.
  ``(c) Functions of Under Secretary.--
          ``(1) Principal functions.--Upon establishment, the Secretary 
        shall delegate to the Under Secretary of Agriculture for 
        Foreign Agricultural Services those functions under the 
        jurisdiction of the Department that are related to foreign 
        agricultural services.
          ``(2) Additional functions.--The Under Secretary of 
        Agriculture for Foreign Agricultural Services shall perform 
        such other functions as may be required by law or prescribed by 
        the Secretary.
  ``(d) Succession.--Any official who is serving as Under Secretary of 
Agriculture for Farm and Foreign Agricultural Services on the date of 
the enactment of this section and who was appointed by the President, 
by and with the advice and consent of the Senate, shall not be required 
to be reappointed under subsection (b) or section 225(b) to the 
successor position authorized under subsection (a) or section 225(a) if 
the Secretary establishes the position, and the official occupies the 
new position, with 180 days after the date of the enactment of this 
section (or such later date set by the Secretary if litigation delays 
rapid succession).''.
  (b) Conforming Amendments.--Section 225 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6931) is amended--
          (1) by striking ``Under Secretary of Agriculture for Farm and 
        Foreign Agricultural Services'' each place it appears and 
        inserting ``Under Secretary of Agriculture for Farm Services''; 
        AND
          (2) in subsection (c)(1), by striking ``and foreign 
        agricultural''.
  (c) Permanent Authority.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
          (1) in paragraph (6)(C), by striking ``or'' at the end;
          (2) in paragraph (7), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following new paragraph:
          ``(8) the authority of the Secretary to establish in the 
        Department the position of Under Secretary of Agriculture for 
        Foreign Agricultural Services in accordance with section 
        225A;''.

                          TITLE IV--NUTRITION

         Subtitle A--Supplemental Nutrition Assistance Program

SEC. 4001. RETAILERS.

  (a) Definition of Retail Food Store.--Section 3(p)(1)(A) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is amended by 
striking ``at least 2'' and inserting ``at least 3''.
  (b) Alternative Benefit Delivery.--Section 7(f) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
          (1) by striking paragraph (2) and inserting the following:
          ``(2) Imposition of costs.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall require participating 
                retailers (including restaurants participating in a 
                State option restaurant program intended to serve the 
                elderly, disabled, and homeless) to pay 100 percent of 
                the costs of acquiring, and arrange for the 
                implementation of, electronic benefit transfer point-
                of-sale equipment and supplies.
                  ``(B) Exemptions.--The Secretary may exempt from 
                subparagraph (A)--
                          ``(i) farmers' markets, military 
                        commissaries, nonprofit food buying 
                        cooperatives, and establishments, 
                        organizations, programs, or group living 
                        arrangements described in paragraphs (5), (7), 
                        and (8) of section 3(k); and
                          ``(ii) establishments described in paragraphs 
                        (3), (4), and (9) of section 3(k), other than 
                        restaurants participating in a State option 
                        restaurant program.''; and
          (2) by adding at the end the following:
          ``(4) Termination of manual vouchers.--
                  ``(A) In general.--Effective beginning on the 
                effective date of this paragraph, except as provided in 
                subparagraph (B), no State shall issue manual vouchers 
                to a household that receives supplemental nutrition 
                assistance under this Act or allow retailers to accept 
                manual vouchers as payment, unless the Secretary 
                determines that the manual vouchers are necessary, such 
                as in the event of an electronic benefit transfer 
                system failure or a disaster situation.
                  ``(B) Exemptions.--The Secretary may exempt 
                categories of retailers or individual retailers from 
                subparagraph (A) based on criteria established by the 
                Secretary.
          ``(5) Unique identification number required.--In an effort to 
        enhance the antifraud protections of the program, the Secretary 
        shall require all parties providing electronic benefit transfer 
        services to provide for and maintain a unique terminal 
        identification number information through the supplemental 
        nutrition assistance program electronic benefit transfer 
        transaction routing system. In developing the regulations 
        implementing this paragraph, the Secretary shall consider 
        existing commercial practices for other point-of-sale debit 
        transactions. The Secretary shall issue proposed regulations 
        implementing this paragraph not earlier than 2 years after the 
        date of enactment of this paragraph.''.
  (c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by striking 
``is operational--'' and all that follows through ``(ii) in the case of 
other participating stores,'' and inserting ``is operational''.
  (d) Approval of Retail Food Stores and Wholesale Food Concerns.--
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is 
amended--
          (1) in the 2d sentence of subsection (a)(1) by striking ``; 
        and (C)'' and inserting ``; (C) whether the applicant is 
        located in an area with significantly limited access to food; 
        and (D)'';
          (2) in subsection (b) by adding at the end the following:
          ``(3) Retail food stores with significant sales of excluded 
        items.--
                  ``(A) In general.--No retail food store for which at 
                least 45 percent of the total sales of the retail food 
                store is from the sale of excluded items described in 
                section 3(k)(1) may be authorized to accept and redeem 
                benefits unless the Secretary determines that the 
                participation of the retail food store is required for 
                the effective and efficient operation of the 
                supplemental nutrition assistance program.
                  ``(B) Application.--Subparagraph (A) shall be 
                effective--
                          ``(i) in the case of retail food stores 
                        applying to be authorized for the 1st time, 
                        beginning on the date that is 1 year after the 
                        effective date of this paragraph; and
                          ``(ii) in the case of retail food stores 
                        participating in the program on the effective 
                        date of this paragraph, during periodic 
                        reauthorization in accordance with subsection 
                        (a)(2)(A).''; and
          (3) by adding at the end the following:
  ``(g) EBT Service Requirement.--An approved retail food store shall 
provide adequate EBT service as described in section 7(h)(3)(B).''.

SEC. 4002. ENHANCING SERVICES TO ELDERLY AND DISABLED SUPPLEMENTAL 
                    NUTRITION ASSISTANCE PROGRAM RECIPIENTS.

  (a) Enhancing Services to Elderly and Disabled Program Recipients.--
Section 3(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)) 
is amended--
          (1) in paragraph (3) by striking ``and'' at the end,
          (2) in paragraph (4) by striking the period at the end and 
        inserting ``; and'', and
          (3) by inserting after paragraph (4) the following:
          ``(5) a governmental or private nonprofit food purchasing and 
        delivery service that--
                  ``(A) purchases food for, and delivers such food to, 
                individuals who are--
                          ``(i) unable to shop for food; and
                          ``(ii)(I) not less than 60 years of age; or
                          ``(II) physically or mentally handicapped or 
                        otherwise disabled;
                  ``(B) clearly notifies the participating household at 
                the time such household places a food order--
                          ``(i) of any delivery fee associated with the 
                        food purchase and delivery provided to such 
                        household by such service; and
                          ``(ii) that a delivery fee cannot be paid 
                        with benefits provided under supplemental 
                        nutrition assistance program; and
                  ``(C) sells food purchased for such household at the 
                price paid by such service for such food and without 
                any additional cost markup.''.
  (b) Implementation.--
          (1) Issuance of rules.--The Secretary of Agriculture shall 
        issue regulations that--
                  (A) establish criteria to identify a food purchasing 
                and delivery service referred to in section 3(p)(5) of 
                the Food and Nutrition Act of 2008 as amended by this 
                Act, and
                  (B) establish procedures to ensure that such 
                service--
                          (i) does not charge more for a food item than 
                        the price paid by the such service for such 
                        food item,
                          (ii) offers food delivery service at no or 
                        low cost to households under such Act,
                          (iii) ensures that benefits provided under 
                        the supplemental nutrition assistance program 
                        are used only to purchase food, as defined in 
                        section 3 of such Act,
                          (iv) limits the purchase of food, and the 
                        delivery of such food, to households eligible 
                        to receive services described in section 
                        3(p)(5) of such Act as so amended,
                          (v) has established adequate safeguards 
                        against fraudulent activities, including 
                        unauthorized use of electronic benefit cards 
                        issued under such Act, and
                          (vi) such other requirements as the Secretary 
                        deems to be appropriate.
          (2) Limitation.--Before the issuance of rules under paragraph 
        (1) , the Secretary of Agriculture may not approve more than 20 
        food purchasing and delivery services referred to in section 
        3(p)(5) of the Food and Nutrition Act of 2008 as amended by 
        this Act, to participate as retail food stores under the 
        supplemental nutrition assistance program.

SEC. 4003. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

  Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2013(b)(6)(F)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 4004. UPDATING PROGRAM ELIGIBILITY.

  Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended--
          (1) in the 2d sentence of subsection (a) by striking 
        ``households in which each member receives benefits'' and 
        inserting ``households in which each member receives cash 
        assistance'', and
          (2) in subsection (j) by striking ``or who receives benefits 
        under a State program'' and inserting ``or who receives cash 
        assistance under a State program''.

SEC. 4005. EXCLUSION OF MEDICAL MARIJUANA FROM EXCESS MEDICAL EXPENSE 
                    DEDUCTION.

  Section 5(e)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(5)) is amended by adding at the end the following:
                  ``(C) Exclusion of medical marijuana.--The Secretary 
                shall promulgate rules to ensure that medical marijuana 
                is not treated as a medical expense for purposes of 
                this paragraph.''.

SEC. 4006. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY 
                    ASSISTANCE PAYMENTS.

  (a) Standard Utility Allowances in the Supplemental Nutrition 
Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
          (1) in clause (i) by inserting ``, subject to clause (iv)'' 
        after ``Secretary''; and
          (2) in clause (iv)(I) by striking ``the household still 
        incurs'' and all that follows through the end of the subclause 
        and inserting ``the payment received by, or made on behalf of, 
        the household exceeds $10 or a higher amount annually, as 
        determined by the Secretary.''.
  (b) Conforming Amendment.--Section 2605(f)(2)(A) of the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended 
by inserting before the semicolon at the end ``, except that, for 
purposes of the supplemental nutrition assistance program established 
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such 
payments or allowances exceed $10 or a higher amount annually, as 
determined by the Secretary of Agriculture in accordance with section 
5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I))''.
  (c) Effective and Implementation Date.--
          (1) In general.--Except as provided in paragraph (2), this 
        section and the amendments made by this section shall take 
        effect beginning on October 1, 2013, for all certification 
        periods beginning after that date.
          (2) State option to delay implementation for current 
        recipients.--A State may, at the option of the State, implement 
        a policy that eliminates or minimizes the effect of the 
        amendments made by this section for households that receive a 
        standard utility allowance as of the date of enactment of this 
        Act for not more than a 180-day period beginning on the date on 
        which the amendments made by this section would otherwise 
        affect the benefits received by a household.

SEC. 4007. ELIGIBILITY DISQUALIFICATIONS.

  Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 
2015(e)(3)(B)) is amended by striking ``section;'' and inserting the 
following:
                  ``section, subject to the condition that the course 
                or program of study--
                          ``(i) is part of a program of career and 
                        technical education (as defined in section 3 of 
                        the Carl D. Perkins Career and Technical 
                        Education Act of 2006 (20 U.S.C. 2302)) that 
                        may be completed in not more than 4 years at an 
                        institution of higher education (as defined in 
                        section 102 of the Higher Education Act of 1965 
                        (20 U.S.C. 1002)); or
                          ``(ii) is limited to remedial courses, basic 
                        adult education, literacy, or English as a 
                        second language;''.

SEC. 4008. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS 
                    FOR LOTTERY OR GAMBLING WINNERS.

  (a) In General.--Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015) is amended by adding at the end the following:
  ``(r) Ineligibility for Benefits Due to Receipt of Substantial 
Lottery or Gambling Winnings.--
          ``(1) In general.--Any household in which a member receives 
        substantial lottery or gambling winnings, as determined by the 
        Secretary, shall lose eligibility for benefits immediately upon 
        receipt of the winnings.
          ``(2) Duration of ineligibility.--A household described in 
        paragraph (1) shall remain ineligible for participation until 
        the household meets the allowable financial resources and 
        income eligibility requirements under subsections (c), (d), 
        (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
          ``(3) Agreements.--As determined by the Secretary, each State 
        agency, to the maximum extent practicable, shall establish 
        agreements with entities responsible for the regulation or 
        sponsorship of gaming in the State to determine whether 
        individuals participating in the supplemental nutrition 
        assistance program have received substantial lottery or 
        gambling winnings.''.
  (b) Conforming Amendments.--Section 5(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2014(a)) is amended in the 2d sentence by 
striking ``sections 6(b), 6(d)(2), and 6(g)'' and inserting 
``subsections (b), (d)(2), (g), and (r) of section 6''.

SEC. 4009. IMPROVING SECURITY OF FOOD ASSISTANCE.

  Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)(8)) is amended--
          (1) in the heading by striking ``card fee'' and inserting 
        ``of cards'';
          (2) by striking ``A State'' and inserting the following:
                  ``(A) Fees.--A State''; and
          (3) by adding after subparagraph (A) (as so designated by 
        paragraph (2)) the following:
                  ``(B) Purposeful loss of cards.--
                          ``(i) In general.--Subject to terms and 
                        conditions established by the Secretary in 
                        accordance with clause (ii), if a household 
                        makes excessive requests for replacement of the 
                        electronic benefit transfer card of the 
                        household, the Secretary may require a State 
                        agency to decline to issue a replacement card 
                        to the household unless the household, upon 
                        request of the State agency, provides an 
                        explanation for the loss of the card.
                          ``(ii) Requirements.--The terms and 
                        conditions established by the Secretary shall 
                        provide that--
                                  ``(I) the household be given the 
                                opportunity to provide the requested 
                                explanation and meet the requirements 
                                under this paragraph promptly;
                                  ``(II) after an excessive number of 
                                lost cards, the head of the household 
                                shall be required to review program 
                                rights and responsibilities with State 
                                agency personnel authorized to make 
                                determinations under section 5(a); and
                                  ``(III) any action taken, including 
                                actions required under section 6(b)(2), 
                                other than the withholding of the 
                                electronic benefit transfer card until 
                                an explanation described in subclause 
                                (I) is provided, shall be consistent 
                                with the due process protections under 
                                section 6(b) or 11(e)(10), as 
                                appropriate.
                  ``(C) Protecting vulnerable persons.--In implementing 
                this paragraph, a State agency shall act to protect 
                homeless persons, persons with disabilities, victims of 
                crimes, and other vulnerable persons who lose 
                electronic benefit transfer cards but are not 
                intentionally committing fraud.
                  ``(D) Effect on eligibility.--While a State may 
                decline to issue an electronic benefits transfer card 
                until a household satisfies the requirements under this 
                paragraph, nothing in this paragraph shall be 
                considered a denial of, or limitation on, the 
                eligibility for benefits under section 5.''.

SEC. 4010. DEMONSTRATION PROJECTS ON ACCEPTANCE OF BENEFITS OF MOBILE 
                    TRANSACTIONS.

  Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) 
is amended by adding at the end the following:
          ``(14) Demonstration projects on acceptance of benefits of 
        mobile transactions.--
                  ``(A) In general.--The Secretary shall pilot the use 
                of mobile technologies determined by the Secretary to 
                be appropriate to test the feasibility and implications 
                for program integrity, by allowing retail food stores, 
                farmers markets, and other direct producer-to-consumer 
                marketing outlets to accept benefits from recipients of 
                supplemental nutrition assistance through mobile 
                transactions.
                  ``(B) Demonstration projects.--To be eligible to 
                participate in a demonstration project under subsection 
                (a), a retail food store, farmers market, or other 
                direct producer-to-consumer marketing outlet shall 
                submit to the Secretary for approval a plan that 
                includes--
                          ``(i) a description of the technology;
                          ``(ii) the manner by which the retail food 
                        store, farmers market or other direct producer-
                        to-consumer marketing outlet will provide proof 
                        of the transaction to households;
                          ``(iii) the provision of data to the 
                        Secretary, consistent with requirements 
                        established by the Secretary, in a manner that 
                        allows the Secretary to evaluate the impact of 
                        the demonstration on participant access, ease 
                        of use, and program integrity; and
                          ``(iv) such other criteria as the Secretary 
                        may require.
                  ``(C) Date of completion.--The demonstration projects 
                under this paragraph shall be completed and final 
                reports submitted to the Secretary by not later than 
                July 1, 2015.
                  ``(D) Report to congress.--The Secretary shall submit 
                a report to the Committee on Agriculture of the House 
                of Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate that includes a 
                finding, based on the data provided under subparagraph 
                (C) whether or not implementation in all States is in 
                the best interest of the supplemental nutrition 
                assistance program.''.

SEC. 4011. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED 
                    AGRICULTURE SHARE.

  Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) is 
amended in the 1st sentence by inserting ``agricultural producers who 
market agricultural products directly to consumers shall be authorized 
to redeem benefits for the initial cost of the purchase of a community-
supported agriculture share,'' after ``food so purchased,''.

SEC. 4012. RESTAURANT MEALS PROGRAM.

  (a) In General.--Section 11(e) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2020(e)) is amended--
          (1) in paragraph (22) by striking ``and'' at the end;
          (2) in paragraph (23)(C) by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(24) if the State elects to carry out a program to contract 
        with private establishments to offer meals at concessional 
        prices, as described in paragraphs (3), (4), and (9) of section 
        3(k)--
                  ``(A) the plans of the State agency for operating the 
                program, including--
                          ``(i) documentation of a need that eligible 
                        homeless, elderly, and disabled clients are 
                        underserved in a particular geographic area;
                          ``(ii) the manner by which the State agency 
                        will limit participation to only those private 
                        establishments that the State determines 
                        necessary to meet the need identified in clause 
                        (i); and
                          ``(iii) any other conditions the Secretary 
                        may prescribe, such as the level of security 
                        necessary to ensure that only eligible 
                        recipients participate in the program; and
                  ``(B) a report by the State agency to the Secretary 
                annually, the schedule of which shall be established by 
                the Secretary, that includes--
                          ``(i) the number of households and individual 
                        recipients authorized to participate in the 
                        program, including any information on whether 
                        the individual recipient is elderly, disabled, 
                        or homeless; and
                          ``(ii) an assessment of whether the program 
                        is meeting an established need, as documented 
                        under subparagraph (A)(i).''.
  (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is 
amended by adding at the end the following:
  ``(h) Private Establishments.--
          ``(1) In general.--Subject to paragraph (2), no private 
        establishment that contracts with a State agency to offer meals 
        at concessional prices as described in paragraphs (3), (4), and 
        (9) of section 3(k) may be authorized to accept and redeem 
        benefits unless the Secretary determines that the participation 
        of the private establishment is required to meet a documented 
        need in accordance with section 11(e)(24).
          ``(2) Existing contracts.--
                  ``(A) In general.--If, on the day before the 
                effective date of this subsection, a State has entered 
                into a contract with a private establishment described 
                in paragraph (1) and the Secretary has not determined 
                that the participation of the private establishment is 
                necessary to meet a documented need in accordance with 
                section 11(e)(24), the Secretary shall allow the 
                operation of the private establishment to continue 
                without that determination of need for a period not to 
                exceed 180 days from the date on which the Secretary 
                establishes determination criteria, by regulation, 
                under section 11(e)(24).
                  ``(B) Justification.--If the Secretary determines to 
                terminate a contract with a private establishment that 
                is in effect on the effective date of this subsection, 
                the Secretary shall provide justification to the State 
                in which the private establishment is located for that 
                termination.
          ``(3) Report to congress.--Not later than 90 days after 
        September 30, 2013, and 90 days after the last day of each 
        fiscal year thereafter, the Secretary shall report to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate on the effectiveness of a program under this subsection 
        using any information received from States under section 
        11(e)(24) as well as any other information the Secretary may 
        have relating to the manner in which benefits are used.''.
  (c) Conforming Amendments.--Section 3(k) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting ``subject to 
section 9(h)'' after ``concessional prices'' each place it appears.

SEC. 4013. STATE VERIFICATION OPTION.

  Section 11(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(p)) is amended to read as follows:
  ``(p) State Verification Option.--In carrying out the supplemental 
nutrition assistance program, a State agency shall be required to use 
an income and eligibility, or an immigration status, verification 
system established under section 1137 of the Social Security Act (42 
U.S.C. 1320b-7), in accordance with standards set by the Secretary.''.

SEC. 4014. REPEAL OF GRANT PROGRAM.

  Section 11(t) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(t)) is repealed.

SEC. 4015. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

  (a) Data Exchange Standardization.--Section 11 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding at the end 
the following:
  ``(v) Data Exchange Standardization for Improved Interoperability.--
          ``(1) Data exchange standards.--
                  ``(A) Designation.--The Secretary, in consultation 
                with an interagency work group which shall be 
                established by the Office of Management and Budget, and 
                considering State perspectives, shall, by rule, 
                designate a data exchange standard for any category of 
                information required to be reported under this Act.
                  ``(B) Data exchange standards must be nonproprietary 
                and interoperable.--The data exchange standard 
                designated under subparagraph (A) shall, to the extent 
                practicable, be nonproprietary and interoperable.
                  ``(C) Other requirements.--In designating data 
                exchange standards under this subsection, the Secretary 
                shall, to the extent practicable, incorporate--
                          ``(i) interoperable standards developed and 
                        maintained by an international voluntary 
                        consensus standards body, as defined by the 
                        Office of Management and Budget, such as the 
                        International Organization for Standardization;
                          ``(ii) interoperable standards developed and 
                        maintained by intergovernmental partnerships, 
                        such as the National Information Exchange 
                        Model; and
                          ``(iii) interoperable standards developed and 
                        maintained by Federal entities with authority 
                        over contracting and financial assistance, such 
                        as the Federal Acquisition Regulatory Council.
          ``(2) Data exchange standards for reporting.--
                  ``(A) Designation.--The Secretary, in consultation 
                with an interagency work group established by the 
                Office of Management and Budget, and considering State 
                perspectives, shall, by rule, designate data exchange 
                standards to govern the data reporting required under 
                this part.
                  ``(B) Requirements.--The data exchange standards 
                required by subparagraph (A) shall, to the extent 
                practicable--
                          ``(i) incorporate a widely-accepted, 
                        nonproprietary, searchable, computer-readable 
                        format;
                          ``(ii) be consistent with and implement 
                        applicable accounting principles; and
                          ``(iii) be capable of being continually 
                        upgraded as necessary.
                  ``(C) Incorporation of nonproprietary standards.--In 
                designating reporting standards under this subsection, 
                the Secretary shall, to the extent practicable, 
                incorporate existing nonproprietary standards, such as 
                the eXtensible Markup Language.''.
  (b) Effective Dates.--
          (1) Data exchange standards.--The Secretary of Agriculture 
        shall issue a proposed rule under section 11(v)(1) of the Food 
        and Nutrition Act of 2008 within 12 months after the effective 
        date of this section, and shall issue a final rule under such 
        section after public comment, within 24 months after such 
        effective date.
          (2) Data reporting standards.--The reporting standards 
        required under section 11(v)(2) of such Act shall become 
        effective with respect to reports required in the first 
        reporting period, after the effective date of the final rule 
        referred to in paragraph (1) of this subsection, for which the 
        authority for data collection and reporting is established or 
        renewed under the Paperwork Reduction Act.

SEC. 4016. REPEAL OF BONUS PROGRAM.

  Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(d)) is repealed.

SEC. 4017. 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 by striking ``$90,000,000'' and inserting 
``$79,000,000''.

SEC. 4018. MONITORING EMPLOYMENT AND TRAINING PROGRAM.

  (a) Reporting Measures.--Section 16(h)(5) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025(h)(5)) is amended to read:
          ``(5)(A) In general.--The Secretary shall monitor the 
        employment and training programs carried out by State agencies 
        under section 6(d)(4) and assess their effectiveness in--
                  ``(i) preparing members of households participating 
                in the supplemental nutrition assistance program for 
                employment, including the acquisition of basic skills 
                necessary for employment; and
                  ``(ii) increasing the numbers of household members 
                who obtain and retain employment subsequent to their 
                participation in such employment and training programs.
          ``(B) Reporting measures.--The Secretary, in consultation 
        with the Secretary of Labor, shall develop reporting measures 
        that identify improvements in the skills, training education or 
        work experience of members of households participating in the 
        supplemental nutrition assistance program. Measures shall be 
        based on common measures of performance for federal workforce 
        training programs, so long as they reflect the challenges 
        facing the types of members of households participating in the 
        supplemental nutrition assistance program who participate in a 
        specific employment and training component. The Secretary shall 
        require that each State employment and training plan submitted 
        under section 11(3)(19) identify appropriate reporting measures 
        for each of their proposed components that serve at least 100 
        people. Such measures may include:
                  ``(i) the percentage and number of program 
                participants who received employment and training 
                services and are in unsubsidized employment subsequent 
                to the receipt of those services;
                  ``(ii) the percentage and number of program 
                participants who obtain a recognized postsecondary 
                credential, including a registered apprenticeship, or a 
                regular secondary school diploma or its recognized 
                equivalent, while participating in or within 1 year 
                after receiving employment and training services;
                  ``(iii) the percentage and number of program 
                participants who are in an education or training 
                program that is intended to lead to a recognized 
                postsecondary credential, including a registered 
                apprenticeship or on-the-job training program, a 
                regular secondary school diploma or its recognized 
                equivalent, or unsubsidized employment;
                  ``(iv) subject to the terms and conditions set by the 
                Secretary, measures developed by each State agency to 
                assess the skills acquisition of employment and 
                training program participants that reflect the goals of 
                their specific employment and training program 
                components, which may include, but are not limited to--
                          ``(I) the percentage and number of program 
                        participants who are meeting program 
                        requirements in each component of the State's 
                        education and training program; and
                          ``(II) the percentage and number of program 
                        participants who are gaining skills likely to 
                        lead to employment as measured through testing, 
                        quantitative or qualitative assessment or other 
                        method; and
                  ``(v) other indicators as approved by the Secretary.
          ``(C) State report.--Each State agency shall annually prepare 
        and submit to the Secretary a report on the State's employment 
        and training program that includes the numbers of supplemental 
        nutrition assistance program participants who have gained 
        skills, training, work or experience that will increase their 
        ability to obtain regular employment using measures identified 
        in subparagraph (B).
          ``(D) Modifications to the state employment and training 
        plan.--Subject to the terms and conditions established by the 
        Secretary, if the Secretary determines that the state agency's 
        performance with respect to employment and training outcomes is 
        inadequate, the Secretary may require the State agency to make 
        modifications to their employment and training plan to improve 
        such outcomes.
          ``(E) Periodic evaluation.--
                  ``(i) In general.--Subject to terms and conditions 
                established by the Secretary, not later than October 1, 
                2015, and not less frequently than once every 5 years 
                thereafter, the Secretary shall conduct a study to 
                review existing practice and research to identify 
                employment and training program components and 
                practices that--
                          ``(I) effectively assist members of 
                        households participating in the supplemental 
                        nutrition assistance program in gaining skills, 
                        training, work, or experience that will 
                        increase their ability to obtain regular 
                        employment, and
                          ``(II) are best integrated with statewide 
                        workforce development systems.
                  ``(ii) Report to congress.--The Secretary shall 
                submit a report that describes the results of the study 
                under clause (i) to the Committee on Agriculture in the 
                House of Representatives, and the Committee on 
                Agriculture, Nutrition and Forestry in the Senate.''.
  (b) Effective Date.--Notwithstanding section 4(c) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2013(a)), the Secretary shall issue 
interim final regulations implementing the amendment made by subsection 
(a) no later than 18 months after the date of enactment of this Act. 
States shall include such reporting measures in their employment and 
training plans for the 1st fiscal year thereafter that begins no sooner 
than 6 months after the date that such regulations are published.

SEC. 4019. COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.

  Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is 
amended by adding at the end the following:
  ``(l) Cooperation With Program Research and Evaluation.--States, 
State agencies, local agencies, institutions, facilities such as data 
consortiums, and contractors participating in programs authorized under 
this Act shall cooperate with officials and contractors acting on 
behalf of the Secretary in the conduct of evaluations and studies under 
this Act and shall submit information at such time and in such manner 
as the Secretary may require.''.

SEC. 4020. AUTHORIZATION OF APPROPRIATIONS.

  Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(a)(1)) is amended in the 1st sentence by striking ``2012'' and 
inserting ``2017''.

SEC. 4021. LIMITATION ON USE OF BLOCK GRANT TO PUERTO RICO.

  Section 19(a)(2)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2028(a)(2)(B)) is amended by adding at the end the following:
                          ``(iii) Limitation on use of funds.--None of 
                        the funds made available to the Commonwealth of 
                        Puerto Rico under this subparagraph may be used 
                        to provide nutrition assistance in the form of 
                        cash benefits.''.

SEC. 4022. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

  (a) Definition.--Section 25(a)(1)(B)(i) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2034(a)(1)(B)(i)) is amended--
          (1) in subclause (II) by striking ``and'' at the end;
          (2) in subclause (III) by striking ``or'' at the end and 
        inserting ``and''; and
          (3) by adding at the end the following:
                                  ``(IV) to provide incentives for the 
                                consumption of fruits and vegetables 
                                among low-income individuals; or''.
  (b) Additional Funding.--Section 25(b) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2034) is amended by adding at the end the following:
          ``(3) Funding.--
                  ``(A) In general.--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 not less than $10,000,000 for fiscal year 
                2013 and each fiscal year thereafter. Of the amount 
                made available under this subparagraph for each such 
                fiscal year, $5,000,000 shall be available to carry out 
                subsection (a)(1)(B)(I)(IV).
                  ``(B) Receipt and acceptance.--The Secretary shall be 
                entitled to receive, shall accept, and shall use to 
                carry out this section, the funds transferred under 
                subparagraph (A) without further appropriation.
                  ``(C) Maintenance of funding.--The funding provided 
                under subparagraph (A) shall supplement (and not 
                supplant) other Federal funding made available to the 
                Secretary to carry out this section.''.

SEC. 4023. 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--
          (1) in paragraph (1) by striking ``2008 through 2012'' and 
        inserting ``2012 through 2017''; and
          (2) in paragraph (2)--
                  (A) by striking subparagraphs (A) and (B) and 
                inserting the following:
                  ``(A) for fiscal year 2012, $260,250,000;
                  ``(B) for fiscal year 2013 the dollar amount of 
                commodities specified in subparagraph (A) adjusted by 
                the percentage by which the thrifty food plan has been 
                adjusted under section 3(u)(4) between June 30, 2011 
                and June 30, 2012, and subsequently increased by 
                $20,000,000;'';
                  (B) in subparagraph (C)--
                          (i) by striking ``2010 through 2012, the 
                        dollar amount of commodities specified in'' and 
                        inserting ``2014 through 2017, the total amount 
                        of commodities under''; and
                          (ii) by striking ``2008'' and inserting 
                        ``2012''; and
                          (iii) by striking the period at the end and 
                        inserting:``; and''; and
                  (C) by adding at the end the following:
                  ``(D) for fiscal year 2013 the dollar amount of 
                commodities specified in subparagraph (B), and for each 
                of the fiscal years 2014 through 2017 the respective 
                dollar amount of commodities specified in subparagraph 
                (C), increased by $5,000,000.''.
  (b) Emergency Food Program Infrastructure Grants.--Section 209(d) of 
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is 
amended by striking ``2012'' and inserting ``2017''.

SEC. 4024. NUTRITION EDUCATION.

  Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036a(b)) is amended by inserting ``and physical activity'' after 
``healthy food choices''.

SEC. 4025. RETAILER TRAFFICKING.

  The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended 
by adding at the end the following:

``SEC. 29. RETAILER TRAFFICKING.

  ``(a) Purpose.--The purpose of this section is to provide the 
Department of Agriculture with additional resources to prevent 
trafficking in violation of this Act by strengthening recipient and 
retailer program integrity. Additional funds are provided to supplement 
the Department's payment accuracy, and retailer and recipient integrity 
activities.
  ``(b) Funding.--
          ``(1) In general.--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 not less 
        than $5,000,000 for fiscal year 2013 and each fiscal year 
        thereafter.
          ``(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.
          ``(3) Maintenance of funding.--The funding provided under 
        paragraph (1) shall supplement (and not supplant) other Federal 
        funding for programs carried out under this Act.''.

SEC. 4026. TECHNICAL AND CONFORMING AMENDMENTS.

  (a) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) 
is amended--
          (1) in subsection (g) by striking ``coupon,'' the last place 
        it appears and inserting ``coupon'';
          (2) in subsection (k)(7) by striking ``or are'' and inserting 
        ``and'';
          (3) by striking subsection (l);
          (4) by redesignating subsections (m) through (t) as 
        subsections (l) through (s), respectively; and
          (5) by inserting after subsection (s) (as so redesignated) 
        the following:
  ``(t) `Supplemental nutritional assistance program' means the program 
operated pursuant to this Act.''.
  (b) Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2013(a)) is amended by striking ``benefits'' the last place it appears 
and inserting ``Benefits''.
  (c) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) 
is amended--
          (1) in the last sentence of subsection (i)(2)(D) by striking 
        ``section 13(b)(2)'' and inserting ``section 13(b)''; and
          (2) in subsection (k)(4)(A) by striking ``paragraph (2)(H)'' 
        and inserting ``paragraph (2)(G)''.
  (d) 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)(vii) by moving the left margin 2 ems 
        to the left, and
          (2) in subparagraph(F)(iii) by moving the left margin 4 ems 
        to the left.
  (e) Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)) is amended by redesignating the 2d paragraph (12) as paragraph 
(13).
  (f) Section 9(a)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2018(a)) is amended by moving the left margin 2 ems to the left.
  (g) Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) 
is amended--
          (1) in subsection (b)(3)(C) by striking ``civil money 
        penalties'' and inserting ``civil penalties''; and
          (2) in subsection (g)(1) by striking ``(7 U.S.C. 1786)'' and 
        inserting ``(42 U.S.C. 1786)''.
  (h) Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2024(b)(1)) is amended in the 1st sentence by striking ``an benefit'' 
and inserting ``a benefit''.
  (i) Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(a)) is amended in the proviso following paragraph (8) by striking 
``, as amended.''.
  (j) Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(e)) is amended in the 1st sentence by striking ``sections 7(f)'' 
and inserting ``section 7(f)''.
  (k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by striking 
``Food benefits'' and inserting ``Benefits''.
  (l) Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2035(f)(3)(C)) is amended by striking ``subsection'' and 
inserting ``subsections''.
  (m) Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036(a)(1)) is amended by striking ``(Public Law 98-8; 7 U.S.C. 612c 
note)'' and inserting ``(7 U.S.C. 7515)''.
  (n) Section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g) 
is amended in the section heading by striking ``food stamp programs'' 
and inserting ``supplemental nutrition assistance program''.
  (o) Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act 
of 2008 (Public Law 110-246; 122 Stat. 1871) is amended by striking 
``531'' and inserting ``454''.
  (p) Section 3803(c)(2)(C)(vii) of title 31 of the United States Code 
is amended by striking ``section 3(l)'' each place it appears and 
inserting ``section 3(s)''.
  (q) Section 115 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193) is amended--
          (1) in subsection (a)(2) by striking ``section 3(l)'' and 
        inserting ``section 3(s)'';
          (2) in subsection (b)(2) by striking ``section 3(l)'' and 
        inserting ``section 3(s)''; and
          (3) in subsection (e)(2) by striking ``section 3(l)'' and 
        inserting ``section 3(s)''.
  (r) The Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
612c) is amended--
          (1) in section 4(a) by striking ``Food Stamp Act of 1977'' 
        and inserting ``Food and Nutrition Act of 2008''; and
          (2) in section 5--
                  (A) in subsection (i)(1) by striking ``Food Stamp Act 
                of 1977'' and inserting ``Food and Nutrition Act of 
                2008''; and
                  (B) in subsection (l)(2)(B) by striking ``Food Stamp 
                Act of 1977'' and inserting ``Food and Nutrition Act of 
                2008''.
  (s) The Social Security Act (42 U.S.C. 301 et seq.) is amended--
          (1) in the heading of section 453(j)(10) by striking ``food 
        stamp'' and inserting ``supplemental nutrition assistance'';
          (2) in section 1137--
                  (A) in subsection (a)(5)(B) by striking ``food 
                stamp'' and inserting ``supplemental nutrition 
                assistance''; and
                  (B) in subsection (b)(4) by striking ``food stamp 
                program under the Food Stamp Act of 1977'' and 
                inserting ``supplemental nutrition assistance program 
                under the Food and Nutrition Act of 2008''; and
          (3) in the heading of section 1631(n) by striking ``Food 
        Stamp'' and inserting ``Supplemental Nutrition Assistance''.

SEC. 4027. TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS.

  The Secretary shall set the tolerance level for excluding small 
errors for the purposes of section 16(c) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2025(c))--
          (1) for fiscal year 2013 at an amount no greater than $25; 
        and
          (2) for each fiscal year thereafter, the amount specified in 
        paragraph (1) adjusted by the percentage by which the thrifty 
        food plan is adjusted under section 3(u)(4) of such Act between 
        June 30, 2011, and June 30 of the immediately preceding fiscal 
        year.

SEC. 4028. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS PILOT PROGRAM.

  (a) Study.--
          (1) In general.--Prior to establishing the pilot program 
        under subsection (b), the Secretary shall conduct a study to be 
        completed not later than 2 years after the effective date of 
        this section to assess--
                  (A) the capabilities of the Commonwealth of the 
                Northern Mariana Islands to operate the supplemental 
                nutrition assistance program in the same manner in 
                which the program is operated in the States (as defined 
                in section 3 of the Food and Nutrition Act (7 U.S.C. 
                2011 et seq)); and
                  (B) alternative models of the supplemental nutrition 
                assistance program operation and benefit delivery that 
                best meet the nutrition assistance needs of the 
                Commonwealth of the Northern Mariana Islands.
          (2) Scope.--The study conducted under paragraph (1)(A) will 
        assess the capability of the Commonwealth to fulfill the 
        responsibilities of a State agency, including--
                  (A) extending and limiting participation to eligible 
                households, as prescribed by sections 5 and 6 of the 
                Act;
                  (B) issuing benefits through EBT cards, as prescribed 
                by section 7 of the Act;
                  (C) maintaining the integrity of the program, 
                including operation of a quality control system, as 
                prescribed by section 16(c) of the Act;
                  (D) implementing work requirements, including 
                operating an employment and training program, as 
                prescribed by section 6(d) of the Act; and
                  (E) paying a share of administrative costs with non-
                Federal funds, as prescribed by section 16(a) of the 
                Act.
  (b) Establishment.--If the Secretary determines that a pilot program 
is feasible, the Secretary shall establish a pilot program for the 
Commonwealth of the Northern Mariana Islands to operate the 
supplemental nutrition assistance program in the same manner in which 
the program is operated in the States.
  (c) Scope.--The Secretary shall utilize the information obtained from 
the study conducted under subsection (a) to establish the scope of the 
pilot program established under subsection (b).
  (d) Report.--Not later than June 30, 2018, the Secretary shall submit 
to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report on the pilot program carried out under this section, including 
an analysis of the feasibility of operating in the Commonwealth of the 
Northern Mariana Islands the supplemental nutrition assistance program 
as it is operated in the States.
  (e) Funding.--
          (1) Study.--Of the funds made available under section 
        18(a)(1) of the Food and Nutrition Act of 2008, the Secretary 
        may use not more than $1,000,000 in each of fiscal years 2013 
        and 2014 to conduct the study described in subsection (a).
          (2) Pilot program.--Of the funds made available under section 
        18(a)(1) of the Food and Nutrition Act of 2008, for the 
        purposes of establishing and carrying out the pilot program 
        established under subsection (b) of this section, including the 
        Federal costs for providing technical assistance to the 
        Commonwealth, authorizing and monitoring retail food stores, 
        and assessing pilot operations, the Secretary may use not more 
        than--
                  (A) $13,500,000 in fiscal year 2015; and
                  (B) $8,500,000 in each of fiscal years 2016 and 2017.

SEC. 4029. ANNUAL STATE REPORT ON VERIFICATION OF SNAP PARTICIPATION.

  (a) Annual Report.--Not later 1 year after the date specified by the 
Secretary in the 180-period beginning on the date of the enactment of 
this Act, and annually thereafter, each State agency that carries out 
the supplemental nutrition assistance program shall submit to the 
Secretary a report containing sufficient information for the Secretary 
to determine whether the State agency has, for the then most recently 
concluded fiscal year preceding such annual date, verified that 
households to which such State agency provided such assistance in such 
fiscal year--
          (1) did not obtain benefits attributable to a deceased 
        individual; and
          (2) did not include an individual who was simultaneously 
        included in a household receiving such assistance in another 
        State.
  (b) Penalty for Noncompliance.--For any fiscal year for which a State 
agency fails to comply with subsection (a), the Secretary shall reduce 
by 50 percent the amount otherwise payable to such State agency under 
section 16(a) of the Food and Nutrition Act of 2008 with respect to 
such fiscal year.

              Subtitle B--Commodity Distribution Programs

SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.

  Section 4(a) of the Agriculture and Consumer Protection Act of 1973 
(7 U.S.C. 612c note; Public Law 93-86) is amended in the 1st sentence 
by striking ``2012'' and inserting ``2017''.

SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

  Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 
U.S.C. 612c note; Public Law 93-86) is amended--
          (1) in paragraphs (1) and (2)(B) of subsection (a) by 
        striking ``2012'' each place it appears and inserting ``2017'';
          (2) in the 1st sentence of subsection (d)(2) by striking 
        ``2012'' and inserting ``2017'';
          (3) by striking subsection (g) and inserting the following:
  ``(g) Eligibility.--Except as provided in subsection (m), the States 
shall only provide assistance under the commodity supplemental food 
program to low-income individuals aged 60 and older.''; and
          (4) by adding at the end the following:
  ``(m) Phase-out.--Notwithstanding any other provision of law, an 
individual who receives assistance under the commodity supplemental 
food program on the day before the effective date of this subsection 
shall continue to receive that assistance until the date on which the 
individual no longer qualifies for assistance under the eligibility 
criteria for the program in effect on the day before the effective date 
of this subsection.''.

SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
                    PROJECTS.

  Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e(2)(A)) is amended in the 1st sentence by striking ``2012'' 
and inserting ``2017''.

SEC. 4104. PROCESSING OF COMMODITIES.

  (a) Section 17 of the Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note) is amended by--
          (1) striking the heading and inserting ``commodity donations 
        and processing''; and
          (2) adding at the end the following:
  ``(c) Processing.--For any program included in subsection (b), the 
Secretary may, notwithstanding any other provision of State or Federal 
law relating to the procurement of goods and services--
          ``(1) retain title to commodities delivered to a processor, 
        on behalf of a State (including a State distributing agency and 
        a recipient agency), until such time as end products containing 
        such commodities, or similar commodities as approved by the 
        Secretary, are delivered to a State distributing agency or to a 
        recipient agency; and
          ``(2) promulgate regulations to ensure accountability for 
        commodities provided to a processor for processing into end 
        products, and to facilitate processing of commodities into end 
        products for use by recipient agencies. Such regulations may 
        provide that--
                  ``(A) a processor that receives commodities for 
                processing into end products, or provides a service 
                with respect to such commodities or end products, in 
                accordance with its agreement with a State distributing 
                agency or a recipient agency, provide to the Secretary 
                a bond or other means of financial assurance to protect 
                the value of such commodities; and
                  ``(B) in the event a processor fails to deliver to a 
                State distributing agency or a recipient agency an end 
                product in conformance with the processing agreement 
                entered into under this Act, the Secretary take action 
                with respect to the bond or other means of financial 
                assurance pursuant to regulations promulgated under 
                this paragraph and distribute any proceeds obtained by 
                the Secretary to one or more State distributing 
                agencies and recipient agencies as determined 
                appropriate by the Secretary.''.
  (b) Definitions.--Section 18 of the Commodity Distribution Reform Act 
and WIC Amendments of 1987 (7 U.S.C. 612c note) is amended by striking 
paragraphs (1) and (2) and inserting the following:
          ``(1) The term `commodities' means agricultural commodities 
        and their products that are donated by the Secretary for use by 
        recipient agencies.
          ``(2) The term `end product' means a food product that 
        contains processed commodities.''.
  (c) Technical and Conforming Amendments.--Section 3 of the Commodity 
Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; 
Public Law 100-237) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2) by striking subparagraph (B) and 
                inserting the following:
                  ``(B) the program established under section 4(b) of 
                the Food and Nutrition Act of 2008 (7 U.S.C. 
                2013(b));''; and
                  (B) in paragraph (3)(D) by striking ``the Committee 
                on Education and Labor'' and inserting ``the Committee 
                on Education and the Workforce'';
          (2) in subsection (b)(1)(A)(ii) by striking ``section 32 of 
        the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)'' and 
        inserting ``section 32 of the Act of August 24, 1935 (7 U.S.C. 
        612c)'';
          (3) in subsection (e)(1)(D)(iii) by striking subclause (II) 
        and inserting the following:
                                  ``(II) the program established under 
                                section 4(b) of the Food and Nutrition 
                                Act of 2008 (7 U.S.C. 2013(b));''; and
          (4) in subsection (k) by striking ``the Committee on 
        Education and Labor'' and inserting ``the Committee on 
        Education and the Workforce''.

                       Subtitle C--Miscellaneous

SEC. 4201. 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 the section heading by striking ``seniors'';
          (2) by amending subsection (a) to read as follows:
  ``(a) Funding.--
          ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture shall use to carry 
        out and expand the farmers market nutrition program $20,600,000 
        for each of fiscal years 2013 through 2017.
          ``(2) Additional funding.--There is authorized to be 
        appropriated such sums as are necessary to carry out this 
        subsection for each of fiscal years 2013 through 2017.'';
          (3) in subsection (b)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``seniors''; and
                  (B) in paragraph (1) by inserting ``, and low-income 
                families who are determined to be at nutritional risk'' 
                after ``low-income seniors'';
          (4) in subsection (c) by striking ``seniors'';
          (5) in subsection (d) by striking ``seniors'';
          (6) in subsection (e) by striking ``seniors'';
          (7) by redesignating subsections (c), (d), (e), and (f) as 
        subsections (d), (e), (f), and (g), respectively; and
          (8) by inserting after subsection (b) the following:
  ``(c) State Grants and Other Assistance.--The Secretary shall carry 
out the Program through grants and other assistance provided in 
accordance with agreements made with States, for implementation through 
State agencies and local agencies, that include provisions--
          ``(1) for the issuance of coupons or vouchers to 
        participating individuals;
          ``(2) establishing an appropriate annual percentage 
        limitation on the use of funds for administrative costs; and
          ``(3) specifying other terms and conditions as the Secretary 
        deems appropriate to encourage expanding the participation of 
        small scale farmers in Federal nutrition programs.''.

SEC. 4202. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

  Section 4403 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 3171 note; Public Law 107-171) is repealed.

SEC. 4203. FRESH FRUIT AND VEGETABLE PROGRAM.

  Section 19 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769a) is amended--
          (1) in the section heading, by striking ``fresh'';
          (2) in subsection (a), by striking ``fresh'';
          (3) in subsection (b), by striking ``fresh''; and
          (4) in subsection (e), by striking ``fresh''.

SEC. 4204. ADDITIONAL AUTHORITY FOR PURCHASE OF FRESH FRUITS, 
                    VEGETABLES, AND OTHER SPECIALTY FOOD CROPS.

  Section 10603 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 612c-4) is amended--
          (1) in subsection (b), by striking ``2012'' and inserting 
        ``2017'';
          (2) by redesignating subsection (c) as subsection (d); and
          (3) by inserting after subsection (b) the following new 
        subsection:
  ``(c) Pilot Grant Program for Purchase of Fresh Fruits and 
Vegetables.--
          ``(1) In general.--Using amounts made available to carry out 
        subsection (b), the Secretary of Agriculture shall conduct a 
        pilot program under which the Secretary will give not more than 
        five participating States the option of receiving a grant in an 
        amount equal to the value of the commodities that the 
        participating State would otherwise receive under this section 
        for each of fiscal years 2013 through 2017.
          ``(2) Use of grant funds.--A participating State receiving a 
        grant under this subsection may use the grant funds solely to 
        purchase fresh fruits and vegetables for distribution to 
        schools and service institutions in the State that participate 
        in the food service programs under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.) and the 
        Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
          ``(3) Selection of participating states.--The Secretary shall 
        select participating States from applications submitted by the 
        States.
          ``(4) Reporting requirements.--
                  ``(A) School and service institution requirement.--
                Schools and service institutions in a participating 
                State shall keep records of purchases of fresh fruits 
                and vegetables made using the grant funds and report 
                such records to the State.
                  ``(B) State requirement.--Each participating State 
                shall submit to the Secretary a report on the success 
                of the pilot program in the State, including 
                information on--
                          ``(i) the amount and value of each type of 
                        fresh fruit and vegetable purchased by the 
                        State; and
                          ``(ii) the benefit provided by such purchases 
                        in conducting the school food service in the 
                        State, including meeting school meal 
                        requirements.''.

SEC. 4205. ENCOURAGING LOCALLY AND REGIONALLY GROWN AND RAISED FOOD.

  (a) Commodity Purchase Streamlining.--The Secretary may permit each 
school food authority with a low annual commodity entitlement value, as 
determined by the Secretary, to elect to substitute locally and 
regionally grown and raised food for the authority's allotment, in 
whole or in part, of commodity assistance for the school meal programs 
under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 
et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
if--
          (1) the election is requested by the school food authority;
          (2) the Secretary determines that the election will reduce 
        State and Federal administrative costs; and
          (3) the election will provide the school food authority with 
        greater flexibility to purchase locally and regionally grown 
        and raised foods.
  (b) Farm-to-school Demonstration Programs.--
          (1) In general.--The Secretary may establish farm-to-school 
        demonstration programs under which school food authorities, 
        agricultural producers producing for local and regional 
        markets, and other farm-to-school stakeholders will collaborate 
        with the Agriculture Marketing Service to, on a cost neutral 
        basis, source food for the school meal programs under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.) from local farmers and ranchers in lieu of the commodity 
        assistance provided to the school food authorities for the 
        school meal programs.
          (2) Requirements.--
                  (A) In general.--Each demonstration program carried 
                out under this subsection shall--
                          (i) facilitate and increase the purchase of 
                        unprocessed and minimally processed locally and 
                        regionally grown and raised agricultural 
                        products to be served under the school meal 
                        programs;
                          (ii) test methods to improve procurement, 
                        transportation, and meal preparation processes 
                        for the school meal programs;
                          (iii) assess whether administrative costs can 
                        be saved through increased school authority 
                        flexibility to source locally and regionally 
                        produced foods for the school meal programs; 
                        and
                          (iv) undertake rigorous evaluation and share 
                        information about results of the demonstration 
                        program, including cost savings, with the 
                        Secretary, other school food authorities, 
                        agricultural producers producing for the local 
                        and regional market, and the general public.
                  (B) Plans.--In order to be selected to carry out a 
                demonstration program under this subsection, a school 
                food authority shall submit to the Secretary a plan at 
                such time and in such manner as the Secretary may 
                require, and containing information with respect to the 
                requirements described in clauses (i) through (iv) of 
                subparagraph (A).
          (3) Technical assistance.--The Secretary shall provide 
        technical assistance to demonstration program participants to 
        assist such participants to acquire bids from potential vendors 
        in a timely and cost-effective manner.
          (4) Length.--The Secretary shall determine the appropriate 
        length of time for each demonstration program under this 
        subsection.
          (5) Coordination.--The Secretary shall coordinate among 
        relevant agencies of the Department of Agriculture and non-
        governmental organizations with appropriate expertise to 
        facilitate the provision of training and technical assistance 
        necessary to the successful implementation of demonstration 
        programs carried out under this subsection.
          (6) Number.--Subject to the availability of funds to carry 
        out this subsection, the Secretary of Agriculture shall 
        implement at least 10 demonstration programs under this 
        subsection.
          (7) Diversity and balance.--In carrying out demonstration 
        programs under this subsection, the Secretary shall, to the 
        maximum extent practicable, ensure--
                  (A) geographical diversity;
                  (B) at least half of the demonstration programs are 
                completed in collaboration with school food authorities 
                with small annual commodity entitlements, as determined 
                by the Secretary;
                  (C) at least half of the demonstration programs are 
                completed in rural or tribal communities;
                  (D) equitable treatment of school food authorities 
                with a high percentage of students eligible for free or 
                reduced price lunches, as determined by the Secretary; 
                and
                  (E) at least one of the demonstration programs is 
                completed on a military installation as defined in 
                section 2687(e)(1) of title 10, United States Code.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS.

  (a) In General.--Section 302(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922(a)) is amended--
          (1) by striking ``(a) In General.--The'' and inserting the 
        following:
  ``(a) In General.--
          ``(1) Eligibility requirements.--The'';
          (2) in the 1st sentence, by inserting after ``limited 
        liability companies'' the following: ``, and such other legal 
        entities as the Secretary deems appropriate,'';
          (3) in the 2nd sentence, by redesignating clauses (1) through 
        (4) as clauses (A) through (D), respectively;
          (4) in each of the 2nd and 3rd sentences, by striking ``and 
        limited liability companies'' each place it appears and 
        inserting ``limited liability companies, and such other legal 
        entities'';
          (5) in the 3rd sentence, by striking ``(3)'' and ``(4)'' and 
        inserting ``(C)'' and ``(D)'', respectively; and
          (6) by adding at the end the following:
          ``(2) Special deeming rules.--
                  ``(A) Eligibility of certain operating-only 
                entities.--An entity that is or will become only the 
                operator of a family farm is deemed to meet the owner-
                operator requirements of paragraph (1) if the 
                individuals that are the owners of the family farm own 
                more than 50 percent (or such other percentage as the 
                Secretary determines is appropriate) of the entity.
                  ``(B) Eligibility of certain embedded entities.--An 
                entity that is an owner-operator described in paragraph 
                (1), or an operator described in subparagraph (A) of 
                this paragraph that is owned, in whole or in part, by 
                other entities, is deemed to meet the direct ownership 
                requirement imposed under paragraph (1) if at least 75 
                percent of the ownership interests of each embedded 
                entity of such entity is owned directly or indirectly 
                by the individuals that own the family farm.''.
  (b) Direct Farm Ownership Experience Requirement.--Section 302(b)(1) 
of such Act (7 U.S.C. 1922(b)(1)) is amended by inserting ``or has 
other acceptable experience for a period of time, as determined by the 
Secretary,'' after ``3 years''.
  (c) Conforming Amendments.--
          (1) Section 304(c)(2) of such Act (7 U.S.C. 1924(c)(2)) by 
        striking ``paragraphs (1) and (2) of section 302(a)'' and 
        inserting ``clauses (A) and (B) of section 302(a)(1)''.
          (2) Section 310D of such Act (7 U.S.C. 1934) is amended--
                  (A) by inserting after ``partnership'' the following: 
                ``, or such other legal entities as the Secretary deems 
                appropriate,''; and
                  (B) by striking ``or partners'' each place it appears 
                and inserting ``partners, or owners''.

SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

  (a) Eligibility.--Section 304(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1924(c)) is amended by inserting after 
``limited liability companies'' the following: ``, or such other legal 
entities as the Secretary deems appropriate,''.
  (b) Limitation on Loan Guarantee Amount.--Section 304(e) of such Act 
(7 U.S.C. 1924(e)) is amended by striking ``75 percent'' and inserting 
``90 percent''.
  (c) Extension of Program.--Section 304(h) of such Act (7 U.S.C. 
1924(h)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 5003. DOWN PAYMENT LOAN PROGRAM.

  (a) In General.--Section 310E(b)(1)(C) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking 
``$500,000'' and inserting ``$667,000''.
  (b) Technical Correction.--Section 310E(b) of such Act (7 U.S.C. 
1935(b)) is amended by striking the 2nd paragraph (2).

SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL REQUIREMENT.

  Section 307 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1927) is amended by striking subsection (d) and redesignating 
subsection (e) as subsection (d).

                      Subtitle B--Operating Loans

SEC. 5101. ELIGIBILITY FOR FARM OPERATING LOANS.

  Section 311(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941(a)) is amended--
          (1) by striking ``(a) In General.--The'' and inserting the 
        following:
  ``(a) In General.--
          ``(1) Eligibility requirements.--The'';
          (2) in the 1st sentence, by inserting after ``limited 
        liability companies'' the following: ``, and such other legal 
        entities as the Secretary deems appropriate,'';
          (3) in the 2nd sentence, by redesignating clauses (1) through 
        (4) as clauses (A) through (D), respectively;
          (4) in each of the 2nd and 3rd sentences, by striking ``and 
        limited liability companies'' each place it appears and 
        inserting ``limited liability companies, and such other legal 
        entities'';
          (5) in the 3rd sentence, by striking ``(3)'' and ``(4)'' and 
        inserting ``(C)'' and ``(D)'', respectively; and
          (6) by adding at the end the following:
          ``(2) Special deeming rule.--An entity that is an operator 
        described in paragraph (1) that is owned, in whole or in part, 
        by other entities, is deemed to meet the direct ownership 
        requirement imposed under paragraph (1) if at least 75 percent 
        of the ownership interests of each embedded entity of such 
        entity is owned directly or indirectly by the individuals that 
        own the family farm.''.

SEC. 5102. ELIMINATION OF RURAL RESIDENCY REQUIREMENT FOR OPERATING 
                    LOANS TO YOUTH.

  Section 311(b)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1941(b)(1)) is amended by striking ``who are rural 
residents''.

SEC. 5103. AUTHORITY TO WAIVE PERSONAL LIABILITY FOR YOUTH LOANS DUE TO 
                    CIRCUMSTANCES BEYOND BORROWER CONTROL.

  Section 311(b) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941(b)) is amended by adding at the end the following:
  ``(5) The Secretary may, on a case by case basis, waive the personal 
liability of a borrower for a loan made under this subsection if any 
default on the loan was due to circumstances beyond the control of the 
borrower.''.

SEC. 5104. MICROLOANS.

  (a) In General.--Section 313 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1943) is amended by adding at the end the 
following:
  ``(c) Microloans.--
          ``(1) In general.--Subject to paragraph (2), the Secretary 
        may establish a program to make or guarantee microloans.
          ``(2) Limitation.--The Secretary shall not make or guarantee 
        a microloan under this subsection that exceeds $35,000 or that 
        would cause the total principal indebtedness outstanding at any 
        1 time for microloans made under this chapter to any 1 borrower 
        to exceed $70,000.
          ``(3) Applications.--To the maximum extent practicable, the 
        Secretary shall limit the administrative burdens and streamline 
        the application and approval process for microloans under this 
        subsection.
          ``(4) Cooperative lending projects.--
                  ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may contract with community-based and 
                nongovernmental organizations, State entities, or other 
                intermediaries, as the Secretary determines 
                appropriate--
                          ``(i) to make or guarantee a microloan under 
                        this subsection; and
                          ``(ii) to provide business, financial, 
                        marketing, and credit management services to 
                        borrowers.
                  ``(B) Requirements.--Before contracting with an 
                entity described in subparagraph (A), the Secretary--
                          ``(i) shall review and approve--
                                  ``(I) the loan loss reserve fund for 
                                microloans established by the entity; 
                                and
                                  ``(II) the underwriting standards for 
                                microloans of the entity; and
                          ``(ii) establish such other requirements for 
                        contracting with the entity as the Secretary 
                        determines necessary.''.
  (b) Exceptions for Direct Loans.--Section 311(c)(2) of such Act (7 
U.S.C. 1941(c)(2)) is amended to read as follows:
          ``(2) Exceptions.--In this subsection, the term `direct 
        operating loan' shall not include--
                  ``(A) a loan made to a youth under subsection (b); or
                  ``(B) a microloan made to a young beginning farmer or 
                rancher or a military veteran farmer, as defined by the 
                Secretary.''.
  (c) Section 312(a) of such Act (7 U.S.C. 1942(a)) is amended by 
inserting ``(including a microloan, as defined by the Secretary)'' 
after ``A direct loan''.
  (d) Section 316(a)(2) of such Act (7 U.S.C. 1946(a)(2)) is amended by 
inserting ``a microloan to a beginning farmer or rancher or military 
veteran farmer or'' after ``The interest rate on''.

                      Subtitle C--Emergency Loans

SEC. 5201. ELIGIBILITY FOR EMERGENCY LOANS.

  Section 321(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1961(a)) is amended--
          (1) by striking ``owner-operators (in the case of loans for a 
        purpose under subtitle A) or operators (in the case of loans 
        for a purpose under subtitle B)'' each place it appears and 
        inserting ``(in the case of farm ownership loans in accordance 
        with subtitle A) owner-operators or operators, or (in the case 
        of loans for a purpose under subtitle B) operators'';
          (2) by inserting after ``limited liability companies'' the 
        1st place it appears the following: ``, or such other legal 
        entities as the Secretary deems appropriate''; and
          (3) by inserting after ``limited liability companies'' the 
        2nd place it appears the following: ``, or other legal 
        entities'';
          (4) by striking ``and limited liability companies,'' and 
        inserting ``limited liability companies, and such other legal 
        entities'';
          (5) by striking ``ownership and operator'' and inserting 
        ``ownership or operator''; and
          (6) by adding at the end the following: ``An entity that is 
        an owner-operator or operator described in this subsection is 
        deemed to meet the direct ownership requirement imposed under 
        this subsection if at least 75 percent of the ownership 
        interests of each embedded entity of such entity is owned 
        directly or indirectly by the individuals that own the family 
        farm.''.

                 Subtitle D--Administrative Provisions

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

  Section 333B(h) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983b(h)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 5302. ELIGIBLE BEGINNING FARMERS AND RANCHERS.

  (a) Conforming Amendments Relating to Changes in Eligibility Rules.--
Section 343(a)(11) of such Act (7 U.S.C. 1991(a)(11)) is amended--
          (1) by inserting after ``joint operation,'' the 1st place it 
        appears the following: ``or such other legal entity as the 
        Secretary deems appropriate,'';
          (2) by striking ``or joint operators'' each place it appears 
        and inserting ``joint operators, or owners''; and
          (3) by inserting after ``joint operation,'' the 2nd and 3rd 
        place it appears the following: ``or such other legal 
        entity,''.
  (b) Modification of Acreage Ownership Limitation.--Section 
343(a)(11)(F) of such Act (7 U.S.C. 1991(a)(11)(F)) is amended by 
striking ``median acreage'' and inserting ``average acreage''.

SEC. 5303. LOAN AUTHORIZATION LEVELS.

  Section 346(b)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1994(b)(1)) is amended in the matter preceding subparagraph 
(A) by striking ``2012'' and inserting ``2017''.

SEC. 5304. PRIORITY FOR PARTICIPATION LOANS.

  Section 346(b)(2)(A)(i) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(2)(A)(i)) is amended by adding at the 
end the following:
                                  ``(III) Priority.--In order to 
                                maximize the number of borrowers served 
                                under this clause, the Secretary--
                                          ``(aa) shall give priority to 
                                        applicants who apply under the 
                                        down payment loan program under 
                                        section 310E or joint financing 
                                        arrangements under section 
                                        307(a)(3)(D); and
                                          ``(bb) may offer other 
                                        financing options under this 
                                        subtitle to applicants only if 
                                        the Secretary determines that 
                                        down payment or other 
                                        participation loan options are 
                                        not a viable approach for the 
                                        applicants.''.

SEC. 5305. LOAN FUND SET-ASIDES.

  Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended--
          (1) by striking ``2012'' and inserting ``2017''; and
          (2) by striking ``of the total amount''.

SEC. 5306. CONFORMING AMENDMENT TO BORROWER TRAINING PROVISION, 
                    RELATING TO ELIGIBILITY CHANGES.

  Section 359(c)(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2006a(c)(2)) is amended by striking ``section 302(a)(2) or 
311(a)(2)'' and inserting ``section 302(a)(1)(B) or 311(a)(1)(B)''.

           Subtitle E--State Agricultural Mediation Programs

SEC. 5401. STATE AGRICULTURAL MEDIATION PROGRAMS.

  Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106) is 
amended by striking ``2015'' and inserting ``2017''.

      Subtitle F--Loans to Purchasers of Highly Fractionated Land

SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.

  The first section of Public Law 91-229 (25 U.S.C. 488) is amended in 
subsection (b)(1) by striking ``pursuant to section 205(c) of the 
Indian Land Consolidation Act (25 U.S.C. 2204(c))'' and inserting ``or 
to intermediaries in order to establish revolving loan funds for the 
purchase of highly fractionated land''.

                      TITLE VI--RURAL DEVELOPMENT

        Subtitle A--Consolidated Farm and Rural Development Act

SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.

  Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) by striking ``$30,000,000 
for each of fiscal years 2008 through 2012'' and inserting 
``$15,000,000 for each of fiscal years 2013 through 2017''.

SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS.

  Section 306(a)(11)(D) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking ``$15,000,000 for 
each of fiscal years 2008 through 2012'' and inserting ``$15,000,000 
for each of fiscal years 2013 through 2017''.

SEC. 6003. ELIMINATION OF RESERVATION OF COMMUNITY FACILITIES GRANT 
                    PROGRAM FUNDS.

  Section 306(a)(19) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)(19)) is amended by striking subparagraph (C).

SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

  Section 306(a)(22) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)(22)) is amended to read as follows:
          ``(22) Rural water and wastewater circuit rider program.--
                  ``(A) In general.--The Secretary shall continue a 
                national rural water and wastewater circuit rider 
                program that--
                          ``(i) is consistent with the activities and 
                        results of the program conducted before the 
                        date of enactment of this paragraph, as 
                        determined by the Secretary; and
                          ``(ii) receives funding from the Secretary, 
                        acting through the Rural Utilities Service.
                  ``(B) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $20,000,000 for fiscal year 2013 and each 
                fiscal year thereafter.''.

SEC. 6005. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
                    FACILITIES.

  Section 306(a)(25)(C) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(25)(C)) is amended by striking ``$10,000,000 for 
each of fiscal years 2008 through 2012'' and inserting ``$5,000,000 for 
each of fiscal years 2013 through 2017''.

SEC. 6006. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT 
                    PROGRAM.

  Section 306A(i)(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926a(i)(2)) is amended by striking ``$35,000,000 for each of 
fiscal years 2008 through 2012'' and inserting ``$27,000,000 for each 
of fiscal years 2013 through 2017''.

SEC. 6007. 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.

  Section 306E(d) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926e(d)) is amended by striking ``$10,000,000 for each of 
fiscal years 2008 through 2012'' and inserting ``$5,000,000 for each of 
fiscal years 2013 through 2017''.

SEC. 6008. RURAL BUSINESS AND INDUSTRY LOAN PROGRAM.

  (a) Flexibility for the Business and Loan Program.--Section 
310B(a)(2)(A) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932(a)(2)(A)) is amended by inserting ``including working 
capital'' after ``employment''.
  (b) Greater Flexibility for Adequate Collateral Through Accounts 
Receivable.--Section 310B(g)(7) of such Act (7 U.S.C. 1932(g)(7)) is 
amended by adding at the end the following: ``In the discretion of the 
Secretary, if the Secretary determines that the action would not create 
or otherwise contribute to an unreasonable risk of default or loss to 
the Federal Government, the Secretary may take account receivables as 
security for the obligations entered into in connection with loans and 
a borrower may use account receivables as collateral to secure a loan 
made or guaranteed under this subsection.''.
  (c) Regulations.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall promulgate such regulations 
as are necessary to implement the amendments made by this section.

SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS.

  Section 310B(e)(12) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(e)(12)) is amended by striking ``$50,000,000 for 
each of fiscal years 2008 through 2012'' and inserting ``$40,000,000 
for each of fiscal years 2013 through 2017''.

SEC. 6010. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.

  Section 310B(g)(9)(B)(v)(I) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) is amended--
          (1) by striking ``2012'' and inserting ``2017''; and
          (2) by inserting ``and not more than 7 percent'' after ``5 
        percent''.

SEC. 6011. INTERMEDIARY RELENDING PROGRAM.

  (a) In General.--Subtitle A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922-1936a) is amended by adding at the end 
the following:

``SEC. 310H. INTERMEDIARY RELENDING PROGRAM.

  ``(a) In General.--The Secretary shall make loans to the entities, 
for the purposes, and subject to the terms and conditions specified in 
the 1st, 2nd, and last sentences of section 623(a) of the Community 
Economic Development Act of 1981 (42 U.S.C. 9812(a)).
  ``(b) Limitations on Authorization of Appropriations.--For loans 
under subsection (a), there are authorized to be appropriated to the 
Secretary not more than $10,000,000 for each of fiscal years 2013 
through 2017.''.
  (b) Conforming Amendments.--Section 1323(b)(2) of the Food Security 
Act of 1985 (Public Law 99-198; 7 U.S.C. 1932 note) is amended--
          (1) in subparagraph (A), by adding ``and'' at the end;
          (2) in subparagraph (B), by striking ``; and'' and inserting 
        a period; and
          (3) by striking subparagraph (C).

SEC. 6012. ENHANCING PUBLIC/PRIVATE PARTNERSHIPS TO SUPPORT RURAL WATER 
                    AND WASTE DISPOSAL INFRASTRUCTURE.

  Section 333 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983) is amended--
          (1) by striking ``require'';
          (2) in paragraph (1), by inserting ``require'' after ``(1)'';
          (3) in paragraph (2), by inserting ``, require'' after 
        ``314'';
          (4) in paragraph (3), by inserting ``require'' after 
        ``loans,'';
          (5) in paragraph (4)--
                  (A) by inserting ``require'' after ``(4)''; and
                  (B) by striking ``and'' after the semicolon;
          (6) in paragraph (5)--
                  (A) by inserting ``require'' after ``(5)''; and
                  (B) by striking the period at the end and inserting 
                ``; and''; and
          (7) by adding at the end the following:
          ``(6) with respect to water and waste disposal direct and 
        guaranteed loans provided under section 306, encourage, to the 
        maximum extent practicable, private or cooperative lenders to 
        finance rural water and waste disposal facilities by--
                  ``(A) maximizing the use of loan guarantees to 
                finance eligible projects in rural communities where 
                the population exceeds 5,500;
                  ``(B) maximizing the use of direct loans to finance 
                eligible projects in rural communities where the impact 
                on rate payers will be material when compared to 
                financing with a loan guarantee;
                  ``(C) establishing and applying a materiality 
                standard when determining the difference in impact on 
                rate payers between a direct loan and a loan guarantee;
                  ``(D) in the case of projects that require interim 
                financing in excess of $500,000, requiring that such 
                projects initially seek such financing from private or 
                cooperative lenders; and
                  ``(E) determining if an existing direct loan borrower 
                can refinance with a private or cooperative lender, 
                including with a loan guarantee, prior to providing a 
                new direct loan.''.

SEC. 6013. SIMPLIFIED APPLICATIONS.

  (a) In General.--Section 333A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983a) is amended by adding at the end the 
following:
  ``(h) Simplified Application Forms.--Except as provided in subsection 
(g)(2) of this section, the Secretary shall, to the maximum extent 
practicable, develop a simplified application process, including a 
single page application where possible, for grants and relending 
authorized under sections 306, 306C, 306D, 306E, 310B(b), 310B(c), 
310B(e), 310B(f), 310H, 379B, and 379E.''.
  (b) Report to the Congress.--Within 2 years after the date of the 
enactment of this Act, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a written report 
that contains an evaluation of the implementation of the amendment made 
by subsection (a).

SEC. 6014. REAUTHORIZATION OF STATE RURAL DEVELOPMENT COUNCILS.

  Section 378(h) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008m(h)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 6015. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

  Section 379B(d) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008p(d)) is amended to read as follows:
  ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2013 through 2017.''.

SEC. 6016. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

  Section 379E(d)(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008s(d)(2)) is amended by striking ``$40,000,000 for each of 
fiscal years 2009 through 2012'' and inserting ``$20,000,000 for each 
of fiscal years 2013 through 2017''.

SEC. 6017. DELTA REGIONAL AUTHORITY.

  (a) Authorization of Appropriations.--Section 382M(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is 
amended by striking ``$30,000,000 for each of fiscal years 2008 through 
2012'' and inserting ``$12,000,000 for each of fiscal years 2013 
through 2017''.
  (b) Termination of Authority.--Section 382N of such Act (7 U.S.C. 
2009aa-13) is amended by striking ``2012'' and inserting ``2017''.

SEC. 6018. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

  (a) Authorization of Appropriations.--Section 383N(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-12(a)) is 
amended by striking ``$30,000,000 for each of fiscal years 2008 through 
2012'' and inserting ``$2,000,000 for each of fiscal years 2013 through 
2017''.
  (b) Termination of Authority.--Section 383O of such Act (7 U.S.C. 
2009bb-13) is amended by striking ``2012'' and inserting ``2017''.

SEC. 6019. RURAL BUSINESS INVESTMENT PROGRAM.

  Section 384S of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009cc-18) is amended by striking ``$50,000,000 for the period 
of fiscal years 2008 through 2012'' and inserting ``$20,000,000 for 
each of fiscal years 2013 through 2017''.

             Subtitle B--Rural Electrification Act of 1936

SEC. 6101. RELENDING FOR CERTAIN PURPOSES.

  (a) In General.--The Rural Electrification Act of 1936 (7 U.S.C. 901 
et seq.) is amended--
          (1) in section 2(a), by inserting ``(including relending for 
        this purpose as provided in section 4)'' after ``efficiency'';
          (2) in section 4(a), by inserting ``(including relending to 
        ultimate consumers for this purpose by borrowers enumerated in 
        the proviso in this section)'' after ``efficiency''; and
          (3) in section 313(b)(2)(B)--
                  (A) by inserting ``(acting through the Rural 
                Utilities Service)'' after ``Secretary''; and
                  (B) by inserting ``energy efficiency (including 
                relending to ultimate consumers for this purpose),'' 
                after ``promoting''.
  (b) Current Authority.--The authority provided in this section is in 
addition to any other relending authority of the Secretary under the 
Rural Electrification Act of 1936 (7 U.S.C. 901 et. seq.) or any other 
law.
  (c) Administration.--The Secretary (acting through the Rural 
Utilities Service) shall continue to carry out section 313 of the Rural 
Electrification Act of 1936 (7 U.S.C. 940c) in the same manner as on 
the day before enactment of this Act until such time as any regulations 
necessary to carry out the amendments made by this section are fully 
implemented.

SEC. 6102. FEES FOR CERTAIN LOAN GUARANTEES.

  The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is 
amended by inserting after section 4 the following:

``SEC. 5. FEES FOR CERTAIN LOAN GUARANTEES.

  ``(a) In General.--For electrification baseload generation loan 
guarantees, the Secretary shall, at the request of the borrower, charge 
an upfront fee to cover the costs of the loan guarantee.
  ``(b) Fee.--The fee described in subsection (a) for a loan guarantee 
shall be equal to the costs of the loan guarantee (within the meaning 
of section 502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a(5)(C))).
  ``(c) Limitation.--Funds received from a borrower to pay the fee 
described in this section shall not be derived from a loan or other 
debt obligation that is made or guaranteed by the Federal 
Government.''.

SEC. 6103. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
                    TELEPHONE PURPOSES.

  Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C. 
940c-1(f)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 6104. EXPANSION OF 911 ACCESS.

  Section 315(d) of the Rural Electrification Act of 1936 (7 U.S.C. 
940e(d)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 6105. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
                    AREAS.

  Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) 
is amended--
          (1) in subsection (c), by striking paragraph (2) and 
        inserting the following:
          ``(2) Priorities.--In making or guaranteeing loans under 
        paragraph (1), the Secretary shall give--
                  ``(A) the highest priority to applicants that offer 
                to provide broadband service to the greatest proportion 
                of households that, prior to the provision of the 
                broadband service, had no incumbent service provider; 
                and
                  ``(B) priority to applicants that offer in their 
                applications to provide broadband service not 
                predominantly for business service, but where at least 
                25 percent of customers in the proposed service 
                territory are commercial interests.'';
          (2) in subsection (d)--
                  (A) in paragraph (5)--
                          (i) by striking ``and'' at the end of 
                        subparagraph (B);
                          (ii) by striking the period at the end of 
                        subparagraph (C) and inserting a semicolon; and
                          (iii) by adding at the end the following:
                  ``(D) the amount and type of support requested; and
                  ``(E) a list of the census block groups or tracts 
                proposed to be so served.''; and
                  (B) by adding at the end the following:
          ``(8) Additional process.--The Secretary shall establish a 
        process under which an incumbent service provider which, as of 
        the date of the publication of notice under paragraph (5) with 
        respect to an application submitted by the provider, is 
        providing broadband service to a remote rural area, may (but 
        shall not be required to) submit to the Secretary, not less 
        than 15 and not more than 30 days after that date, information 
        regarding the broadband services that the provider offers in 
        the proposed service territory, so that the Secretary may 
        assess whether the application meets the requirements of this 
        section with respect to eligible projects.'';
          (3) in subsection (e), by adding at the end the following:
          ``(3) Requirement.--In considering the technology needs of 
        customers in a proposed service territory, the Secretary shall 
        take into consideration the upgrade or replacement cost for the 
        construction or acquisition of facilities and equipment in the 
        territory.''; and
          (4) in each of subsections (k)(1) and (l), by striking 
        ``2012'' and inserting ``2017''.

                       Subtitle C--Miscellaneous

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

  (a) Authorization of Appropriations.--Section 2335A of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
amended by striking ``$100,000,000 for each of fiscal years 2008 
through 2012'' and inserting ``$65,000,000 for each of fiscal years 
2013 through 2017''.
  (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.

  Section 231(b)(7) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1632a(b)(7)) is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``2008'' and inserting ``2012''; and
                  (B) by striking ``$15,000,000'' and inserting 
                ``$50,000,000''; and
          (2) in subparagraph (B), by striking ``2012'' and inserting 
        ``2017''.

SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

  Section 6402(i) of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1632b(i)) is amended by striking ``$6,000,000 for each of 
fiscal years 2008 through 2012'' and inserting ``$1,000,000 for each of 
fiscal years 2013 through 2017''.

SEC. 6204. PROGRAM METRICS.

  (a) In General.--The Secretary of Agriculture shall collect data 
regarding economic activities created through grants and loans, 
including any technical assistance provided as a component of the grant 
or loan program, and measure the short and long term viability of award 
recipients and any entities to whom those recipients provide assistance 
using award funds under section 231 of the Agricultural Risk Protection 
Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224), section 9007 of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107), 
section 313(b)(2) of the Rural Electrification Act of 1936 (7 U.S.C. 
940c(b)(2)), or section 306(a)(11), 310B(c), 310B(e), 310B(g), 310H, or 
379E, or subtitle E, of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)(11), 1932(c), 1932(e), 1932(g), 2008s, or 2009 
through 2009m).
  (b) Data.--The data collected under subsection (a) shall include 
information collected from recipients both during the award period and 
after the period as determined by the Secretary, but not less than 2 
years after the award period ends.
  (c) Report.--Not later than 4 years after the date of enactment of 
this Act, and every 2 years thereafter, the Secretary shall submit to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that contains the data described in subsection (a). The report 
shall include detailed information regarding--
          (1) actions taken by the Secretary to utilize the data;
          (2) the number of jobs, including self-employment and the 
        value of salaries and wages;
          (3) how the provision of funds from the grant or loan 
        involved affected the local economy;
          (4) any benefit, such as an increase in revenue or customer 
        base; and
          (5) such other information as the Secretary deems 
        appropriate.

SEC. 6205. STUDY OF RURAL TRANSPORTATION ISSUES.

  (a) In General.--The Secretary of Agriculture and the Secretary of 
Transportation shall publish an updated version of the study described 
in section 6206 of the Food, Conservation, and Energy Act of 2008.
  (b) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Agriculture and the Secretary 
of Transportation shall submit to the Congress the updated version of 
the study required by subsection (a).

SEC. 6206. AGRICULTURAL TRANSPORTATION POLICY.

  The Secretary of Agriculture shall participate on behalf of the 
interests of agriculture and rural America in all policy development 
proceedings or other proceedings of the Surface Transportation Board 
that may establish freight rail transportation policy affecting 
agriculture and rural America.

SEC. 6207. CERTAIN FEDERAL ACTIONS NOT TO BE CONSIDERED MAJOR FOR 
                    PURPOSES OF ENVIRONMENTAL REVIEW.

  In the case of a loan, loan guarantee, or grant program in the rural 
development mission area of the Department of Agriculture, an action of 
the Secretary before, on, or after the date of enactment of this Act 
that does not involve the provision by the Department of Agriculture of 
Federal dollars or a Federal loan guarantee, including--
          (1) the approval by the Department of Agriculture of the 
        decision of a borrower to commence a privately funded activity;
          (2) a lien accommodation or subordination;
          (3) a debt settlement or restructuring; or
          (4) the restructuring of a business entity by a borrower,
shall not be considered a major Federal action.

          TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS

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

SEC. 7101. OPTION TO NOT BE INCLUDED AS HISPANIC-SERVING AGRICULTURAL 
                    COLLEGE OR UNIVERSITY.

  Section 1404(10)(A) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103(10)(A)) is amended--
          (1) in the matter preceding clause (i), by striking ``that'';
          (2) in clause (i)--
                  (A) by inserting ``that'' before ``qualify''; and
                  (B) by striking ``and'' at the end;
          (3) in clause (ii)--
                  (A) by inserting ``that'' before ``offer''; and
                  (B) by striking the period at the end and inserting 
                ``; and''; and
          (4) by adding at the end the following new clause:
                          ``(iii) with respect to which the Secretary 
                        has not received a statement of the declaration 
                        of the intent of a college or university to not 
                        be considered a Hispanic-serving agricultural 
                        college or university.''.

SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

  (a) Extension of Termination Date.--Section 1408(h) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3123(h)) is amended by striking ``2012'' and inserting ``2017''.
  (b) Duties of National Agricultural Research, Extension, Education, 
and Economics Advisory Board.--Section 1408(c) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3123(c)) is amended--
          (1) in paragraph (3), by striking ``and'' at the end;
          (2) in paragraph (4)(C), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(5) consult with industry groups on agricultural research, 
        extension, education, and economics, and make recommendations 
        to the Secretary based on that consultation.''.

SEC. 7103. SPECIALTY CROP COMMITTEE.

  Section 1408A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended--
          (1) in paragraph (1), by striking ``Measures'' and inserting 
        ``Programs'';
          (2) by striking paragraph (2);
          (3) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively; and
          (4) in paragraph (2) (as so redesignated)--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``Programs that would'' and inserting 
                ``Research, extension, and teaching programs designed 
                to improve competitiveness in the specialty crop 
                industry, including programs that would'';
                  (B) in subparagraph (D), by inserting ``including 
                improving the quality and taste of processed specialty 
                crops'' before the semicolon; and
                  (C) in subparagraph (G), by inserting ``the remote 
                sensing and the'' before ``mechanization''.

SEC. 7104. VETERINARY SERVICES GRANT PROGRAM.

  The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1415A (7 U.S.C. 
3151a) the following new section:

``SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.

  ``(a) Definitions.--In this section:
          ``(1) Qualified entity.--The term `qualified entity' means--
                  ``(A) a for-profit or nonprofit entity located in the 
                United States that, or an individual who, operates a 
                veterinary clinic providing veterinary services--
                          ``(i) in a rural area, as defined in section 
                        343(a) of the Consolidated Farm and Rural 
                        Development Act (7 U.S.C. 1991(a)); and
                          ``(ii) in a veterinarian shortage situation;
                  ``(B) a State, national, allied, or regional 
                veterinary organization or specialty board recognized 
                by the American Veterinary Medical Association;
                  ``(C) a college or school of veterinary medicine 
                accredited by the American Veterinary Medical 
                Association;
                  ``(D) a university research foundation or veterinary 
                medical foundation;
                  ``(E) a department of veterinary science or 
                department of comparative medicine accredited by the 
                Department of Education;
                  ``(F) a State agricultural experiment station; or
                  ``(G) a State, local, or tribal government agency.
          ``(2) Veterinarian shortage situation.--The term 
        `veterinarian shortage situation' means a veterinarian shortage 
        situation as determined by the Secretary under section 1415A.
  ``(b) Establishment.--
          ``(1) Competitive grants.--The Secretary shall carry out a 
        program to make competitive grants to qualified entities that 
        carry out programs or activities described in paragraph (2) for 
        the purpose of developing, implementing, and sustaining 
        veterinary services.
          ``(2) Eligibility requirements.--A qualified entity shall be 
        eligible to receive a grant described in paragraph (1) if the 
        entity carries out programs or activities that the Secretary 
        determines will--
                  ``(A) substantially relieve veterinarian shortage 
                situations;
                  ``(B) support or facilitate private veterinary 
                practices engaged in public health activities; or
                  ``(C) support or facilitate the practices of 
                veterinarians who are providing or have completed 
                providing services under an agreement entered into with 
                the Secretary under section 1415A(a)(2).
  ``(c) Award Processes and Preferences.--
          ``(1) Application, evaluation, and input processes.--In 
        administering the grant program established under this section, 
        the Secretary shall--
                  ``(A) use an appropriate application and evaluation 
                process, as determined by the Secretary; and
                  ``(B) seek the input of interested persons.
          ``(2) Coordination preference.--In selecting recipients of 
        grants to be used for any of the purposes described in 
        subsection (d)(1), the Secretary shall give a preference to 
        qualified entities that provide documentation of coordination 
        with other qualified entities, with respect to any such 
        purpose.
          ``(3) Consideration of available funds.--In selecting 
        recipients of grants to be used for any of the purposes 
        described in subsection (d), the Secretary shall take into 
        consideration the amount of funds available for grants and the 
        purposes for which the grant funds will be used.
          ``(4) Nature of grants.--A grant awarded under this section 
        shall be considered to be a competitive research, extension, or 
        education grant.
  ``(d) Use of Grants to Relieve Veterinarian Shortage Situations and 
Support Veterinary Services.--
          ``(1) In general.--Except as provided in paragraph (2), a 
        qualified entity may use funds provided by a grant awarded 
        under this section to relieve veterinarian shortage situations 
        and support veterinary services for any of the following 
        purposes:
                  ``(A) To promote recruitment (including for programs 
                in secondary schools), placement, and retention of 
                veterinarians, veterinary technicians, students of 
                veterinary medicine, and students of veterinary 
                technology.
                  ``(B) To allow veterinary students, veterinary 
                interns, externs, fellows, and residents, and 
                veterinary technician students to cover expenses (other 
                than the types of expenses described in section 
                1415A(c)(5)) to attend training programs in food safety 
                or food animal medicine.
                  ``(C) To establish or expand accredited veterinary 
                education programs (including faculty recruitment and 
                retention), veterinary residency and fellowship 
                programs, or veterinary internship and externship 
                programs carried out in coordination with accredited 
                colleges of veterinary medicine.
                  ``(D) To provide continuing education and extension, 
                including veterinary telemedicine and other distance-
                based education, for veterinarians, veterinary 
                technicians, and other health professionals needed to 
                strengthen veterinary programs and enhance food safety.
                  ``(E) To provide technical assistance for the 
                preparation of applications submitted to the Secretary 
                for designation as a veterinarian shortage situation 
                under this section or section 1415A.
          ``(2) Qualified entities operating veterinary clinics.--A 
        qualified entity described in subsection (a)(1)(A) may only use 
        funds provided by a grant awarded under this section to 
        establish or expand veterinary practices, including--
                  ``(A) equipping veterinary offices;
                  ``(B) sharing in the reasonable overhead costs of 
                such veterinary practices, as determined by the 
                Secretary; or
                  ``(C) establishing mobile veterinary facilities in 
                which a portion of the facilities will address 
                education or extension needs.
  ``(e) Special Requirements for Certain Grants.--
          ``(1) Terms of service requirements.--
                  ``(A) In general.--Funds provided through a grant 
                made under this section to a qualified entity described 
                in subsection (a)(1)(A) and used by such entity under 
                subsection (d)(2) shall be subject to an agreement 
                between the Secretary and such entity that includes a 
                required term of service for such entity (including a 
                qualified entity operating as an individual), as 
                prospectively established by the Secretary.
                  ``(B) Considerations.--In establishing a term of 
                service under subparagraph (A), the Secretary shall 
                consider only--
                          ``(i) the amount of the grant awarded; and
                          ``(ii) the specific purpose of the grant.
          ``(2) Breach remedies.--
                  ``(A) In general.--An agreement under paragraph (1) 
                shall provide remedies for any breach of the agreement 
                by the qualified entity referred to in paragraph 
                (1)(A), including repayment or partial repayment of the 
                grant funds, with interest.
                  ``(B) Waiver.--The Secretary may grant a waiver of 
                the repayment obligation for breach of contract if the 
                Secretary determines that such qualified entity 
                demonstrates extreme hardship or extreme need.
                  ``(C) Treatment of amounts recovered.--Funds 
                recovered under this paragraph shall--
                          ``(i) be credited to the account available to 
                        carry out this section; and
                          ``(ii) remain available until expended 
                        without further appropriation.
  ``(f) Prohibition on Use of Grant Funds for Construction.--Except as 
provided in subsection (d)(2), funds made available for grants under 
this section may not be used--
          ``(1) to construct a new building or facility; or
          ``(2) to acquire, expand, remodel, or alter an existing 
        building or facility, including site grading and improvement 
        and architect fees.
  ``(g) Regulations.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall promulgate regulations 
to carry out this section.
  ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
fiscal year 2013 and each fiscal year thereafter, to remain available 
until expended.''.

SEC. 7105. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE SCIENCES 
                    EDUCATION.

  Section 1417(m) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3152(m)) is amended by striking 
``section $60,000,000'' and all that follows and inserting the 
following: ``section--
          ``(1) $60,000,000 for each of fiscal years 1990 through 2012; 
        and
          ``(2) $40,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7106. POLICY RESEARCH CENTERS.

  Section 1419A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
          (1) in the section heading, by inserting ``agricultural and 
        food'' before ``policy'';
          (2) in subsection (a), in the matter preceding paragraph 
        (1)--
                  (A) by striking ``Secretary may'' and inserting 
                ``Secretary shall, acting through the Office of the 
                Chief Economist,'';
                  (B) by striking ``make grants, competitive grants, 
                and special research grants to, and enter into 
                cooperative agreements and other contracting 
                instruments with,'' and inserting ``make competitive 
                grants to or enter into cooperative agreements with''; 
                and
                  (C) by inserting ``with a history of providing 
                unbiased, nonpartisan economic analysis to Congress'' 
                after ``subsection (b)'';
          (3) in subsection (b), by striking ``other research 
        institutions'' and all that follows through ``shall be 
        eligible'' and inserting ``and other public research 
        institutions and organizations shall be eligible'';
          (4) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
          (5) by inserting after subsection (b), the following new 
        subsection:
  ``(c) Preference.--In awarding grants under this section, the 
Secretary shall give a preference to policy research centers that have 
extensive databases, models, and demonstrated experience in providing 
Congress with agricultural market projections, rural development 
analysis, agricultural policy analysis, and baseline projections at the 
farm, multiregional, national, and international levels.''; and
          (6) by striking subsection (e) (as redesignated by paragraph 
        (4)) and inserting the following new subsection:
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
          ``(1) such sums as are necessary for each of fiscal years 
        1996 through 2012; and
          ``(2) $5,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7107. REPEAL OF HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                    RESEARCH PROGRAM.

  Section 1424 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3174) is repealed.

SEC. 7108. REPEAL OF PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                    AGRICULTURAL RESEARCH.

  Section 1424A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3174a) is repealed.

SEC. 7109. NUTRITION EDUCATION PROGRAM.

  Section 1425(f) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3175(f)) is amended by striking 
``2012'' and inserting ``2017''.

SEC. 7110. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

  Section 1433 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by striking the 
section designation and heading and all that follows through subsection 
(a) and inserting the following:

``SEC. 1433. APPROPRIATIONS FOR CONTINUING ANIMAL HEALTH AND DISEASE 
                    RESEARCH PROGRAMS.

  ``(a) Authorization of Appropriations.--
          ``(1) In general.--There are authorized to be appropriated to 
        support continuing animal health and disease research programs 
        at eligible institutions--
                  ``(A) $25,000,000 for each of fiscal years 1991 
                through 2012; and
                  ``(B) $15,000,000 for each of fiscal years 2013 
                through 2017.
          ``(2) Use of funds.--Funds made available under this section 
        shall be used--
                  ``(A) to meet the expenses of conducting animal 
                health and disease research, publishing and 
                disseminating the results of such research, and 
                contributing to the retirement of employees subject to 
                the Act of March 4, 1940 (7 U.S.C. 331);
                  ``(B) for administrative planning and direction; and
                  ``(C) to purchase equipment and supplies necessary 
                for conducting the research described in subparagraph 
                (A).''.

SEC. 7111. REPEAL OF APPROPRIATIONS FOR RESEARCH ON NATIONAL OR 
                    REGIONAL PROBLEMS.

  (a) Repeal.--Section 1434 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196) is repealed.
  (b) Conforming Amendments.--
          (1) Matching funds.--Section 1438 of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3200) is amended in the first sentence by 
        striking ``, exclusive of the funds provided for research on 
        specific national or regional animal health and disease 
        problems under the provisions of section 1434 of this title,''.
          (2) Authorization of appropriations for existing and certain 
        new agricultural research programs.--Section 1463(c) of the 
        National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3311(c)) is amended by striking 
        ``sections 1433 and 1434'' and inserting ``section 1433''.

SEC. 7112. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
                    AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
                    UNIVERSITY.

  Section 1447(b) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking 
``2012'' and inserting ``2017''.

SEC. 7113. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCE FACILITIES 
                    AND EQUIPMENT AT INSULAR AREA LAND-GRANT 
                    INSTITUTIONS.

  (a) Supporting Tropical and Subtropical Agricultural Research.--
          (1) In general.--Section 1447B(a) of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3222b-2(a)) is amended to read as follows:
  ``(a) Purpose.--It is the intent of Congress to assist the land-grant 
colleges and universities in the insular areas in efforts to--
          ``(1) acquire, alter, or repair facilities or relevant 
        equipment necessary for conducting agricultural research; and
          ``(2) support tropical and subtropical agricultural research, 
        including pest and disease research.''.
          (2) Conforming amendment.--Section 1447B of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3222b-2) is amended in the heading--
                  (A) by inserting ``and support tropical and 
                subtropical agricultural research'' after 
                ``equipment''; and
                  (B) by striking ``institutions'' and inserting 
                ``colleges and universities''.
  (b) Extension.--Section 1447B(d) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b-
2(d)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 7114. REPEAL OF NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

  Section 1448 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is repealed.

SEC. 7115. HISPANIC-SERVING INSTITUTIONS.

  Section 1455(c) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by striking 
``2012'' and inserting ``2017''.

SEC. 7116. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
                    AND EDUCATION PROGRAMS.

  Section 1459A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended to read 
as follows:
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
          ``(1) such sums as are necessary for each of fiscal years 
        1999 through 2012; and
          ``(2) $5,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7117. REPEAL OF RESEARCH EQUIPMENT GRANTS.

  Section 1462A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3310a) is repealed.

SEC. 7118. UNIVERSITY RESEARCH.

  Section 1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended in both of 
subsections (a) and (b) by striking ``2012'' and inserting ``2017''.

SEC. 7119. EXTENSION SERVICE.

  Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``2012'' and inserting ``2017''.

SEC. 7120. AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE 
                    REQUIREMENTS.

  Section 1469 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3315) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2), by adding ``and'' at the end;
                  (B) by striking paragraph (3); and
                  (C) by redesignating paragraph (4) as paragraph (3);
          (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
          (3) by inserting after subsection (a) the following new 
        subsection:
  ``(b) Administrative Expenses.--
          ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, the Secretary may 
        retain not more than 4 percent of amounts made available for 
        agricultural research, extension, and teaching assistance 
        programs for the administration of those programs authorized 
        under this Act or any other Act.
          ``(2) Exceptions.--The limitation on administrative expenses 
        under paragraph (1) shall not apply to peer panel expenses 
        under subsection (d) or any other provision of law related to 
        the administration of agricultural research, extension, and 
        teaching assistance programs that contains a limitation on 
        administrative expenses that is less than the limitation under 
        paragraph (1).''.

SEC. 7121. SUPPLEMENTAL AND ALTERNATIVE CROPS.

  (a) Authorization of Appropriations and Termination.--Section 1473D 
of the National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3319d) is amended--
          (1) in subsection (a), by striking ``2012'' and inserting 
        ``2017''; and
          (2) by adding at the end the following new subsection:
  ``(e) There are authorized to be appropriated to carry out this 
section--
          ``(1) such sums as are necessary for fiscal year 2012; and
          ``(2) $1,000,000 for each of fiscal years 2013 through 
        2017.''.
  (b) Competitive Grants.--Section 1473D(c)(1) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3319d(c)(1)) is amended by striking ``use such research funding, 
special or competitive grants, or other means, as the Secretary 
determines,'' and inserting ``make competitive grants''.

SEC. 7122. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

  Section 1473F(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3319i(b)) is amended by 
striking ``2012'' and inserting ``2017''.

SEC. 7123. AQUACULTURE ASSISTANCE PROGRAMS.

  (a) Competitive Grants.--Section 1475(b) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322(b)) 
is amended in the matter preceding paragraph (1), by inserting 
``competitive'' before ``grants''.
  (b) Authorization of Appropriations.--Section 1477 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3324) is amended to read as follows:

``SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated to carry 
out this subtitle--
          ``(1) $7,500,000 for each of fiscal years 1991 through 2012; 
        and
          ``(2) $5,000,000 for each of fiscal years 2013 through 2017.
  ``(b) Prohibition on Use.--Funds made available under this section 
may not be used to acquire or construct a building.''.

SEC. 7124. RANGELAND RESEARCH PROGRAMS.

  Section 1483(a) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking 
``subtitle'' and all that follows and inserting the following: 
``subtitle--
          ``(1) $10,000,000 for each of fiscal years 1991 through 2012; 
        and
          ``(2) $2,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7125. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

  Section 1484(a) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by striking 
``response such sums as are necessary'' and all that follows and 
inserting the following: ``response--
          ``(1) such sums as are necessary for each of fiscal years 
        2002 through 2012; and
          ``(2) $10,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7126. DISTANCE EDUCATION AND RESIDENT INSTRUCTION GRANTS PROGRAM 
                    FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

  (a) Distance Education Grants for Insular Areas.--
          (1) Competitive grants.--Section 1490(a) of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3362(a)) is amended by striking ``or 
        noncompetitive''.
          (2) Authorization of appropriations.--Section 1490(f) of the 
        National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3362(f)) is amended by striking 
        ``section'' and all that follows and inserting the following: 
        ``section--
          ``(1) such sums as are necessary for each of fiscal years 
        2002 through 2012; and
          ``(2) $2,000,000 for each of fiscal years 2013 through 
        2017.''.
  (b) Resident Instruction Grants for Insular Areas.--Section 1491(c) 
of the National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3363(c)) is amended by striking ``such sums as 
are necessary'' and all that follows and inserting the following: ``to 
carry out this section--
          ``(1) such sums as are necessary for each of fiscal years 
        2002 through 2012; and
          ``(2) $2,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7127. MATCHING FUNDS REQUIREMENT.

  (a) In General.--The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
adding at the end the following new subtitle:

                    ``Subtitle P--General Provisions

``SEC. 1492. MATCHING FUNDS REQUIREMENT.

  ``(a) Matching Funds Requirement.--The recipient of a competitive 
grant that is awarded by the Secretary under a covered law and that 
involves applied research or extension that is commodity-specific or 
State-specific shall provide funds, in-kind contributions, or a 
combination of both, from sources other than funds provided through 
such grant in an amount at least equal to the amount of such grant.
  ``(b) Waiver Authority.--The Secretary may waive the matching funds 
requirement under subsection (a) with respect to a competitive grant 
that involves applied research or extension that the National 
Agricultural Research, Extension, Education, and Economics Advisory 
Board has determined is a national priority under section 1408(c).
  ``(c) Definitions.--In this section:
          ``(1) Applied research.--The term `applied research' has the 
        meaning given such term in section 251(f)(1)(B) of the 
        Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6971(f)(1)(B)).
          ``(2) Covered law.--The term `covered law' means each of the 
        following provisions of law:
                  ``(A) This title.
                  ``(B) Title XVI of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 5801 et 
                seq.).
                  ``(C) The Agricultural Research, Extension, and 
                Education Reform Act of 1998 (7 U.S.C. 7601 et seq.).
                  ``(D) Section 7405 of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 3319f).
                  ``(E) Part III of subtitle E of title VII of the 
                Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
                3202 et seq.).
                  ``(F) The Competitive, Special, and Facilities 
                Research Grant Act (7 U.S.C. 450i).''.
  (b) Conforming Amendment.--Paragraph (9) of section 2(b) of the 
Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 
450i(b)) is amended--
          (1) by striking subparagraph (B);
          (2) in the heading, by inserting ``for equipment grants'' 
        after ``funds'';
          (3) by striking ``(A) Equipment grants.--''; and
          (4) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively, and moving the margins of such 
        subparagraphs two ems to the left.
  (c) Application to Amendments.--
          (1) New grants.--Section 1492 of the National Agricultural, 
        Research, Extension, and Teaching Policy Act of 1977, as added 
        by subsection (a), shall apply with respect to grants described 
        in such section awarded after October 1, 2012, unless the 
        provision of a covered law under which such grants are awarded 
        specifically exempts such grants from the matching funds 
        requirement under such section.
          (2) Existing grants.--A matching funds requirement in effect 
        on or before October 1, 2012, under a covered law shall 
        continue to apply to a grant awarded under such provision of 
        law on or before that date.

   Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS.

  Section 1624 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5814) is amended in the first sentence--
          (1) by striking ``$40,000,000 for each fiscal year''; and
          (2) by inserting ``$40,000,000 for each of fiscal years 2012 
        through 2017'' after ``chapter''.

SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS.

  Section 1627(d) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5821(d)) is amended to read as follows:
  ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section through the National Institute 
of Food and Agriculture $20,000,000 for each of fiscal years 2012 
through 2017.''.

SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER 
                    PROGRAM.

  Section 1628(f) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5831(f)) is amended to read as follows:
  ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
          ``(1) such sums as are necessary for fiscal year 2012; and
          ``(2) $5,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7204. NATIONAL TRAINING PROGRAM.

  Section 1629(i) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5832(i)) is amended to read as follows:
  ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the National Training Program $20,000,000 for 
each of fiscal years 2012 through 2017.''.

SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM.

  Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5844(b)) is amended--
          (1) by striking ``such funds as may be necessary''; and
          (2) by striking ``subtitle'' and all that follows and 
        inserting the following: ``subtitle--
          ``(1) such sums as are necessary for each of fiscal years 
        1991 through 2012; and
          ``(2) $1,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7206. REPEAL OF NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

  Subtitle D of title XVI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5851 et seq.) is repealed.

SEC. 7207. REPEAL OF RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

  Section 1670 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5923) is repealed.

SEC. 7208. REPEAL OF AGRICULTURAL GENOME INITIATIVE.

  Section 1671 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5924) is repealed.

SEC. 7209. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

  Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5925) is amended--
          (1) in the first sentence of subsection (a), by striking 
        ``subsections (e) through (i)'' and inserting ``subsections (e) 
        through (g)'';
          (2) in subsection (b)(2), in the first sentence, by striking 
        ``subsections (e) through (i)'' and inserting ``subsections (e) 
        through (g)'';
          (3) in subsection (c)(2)--
                  (A) in subparagraph (A), by striking ``or'' at the 
                end;
                  (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(C) the project involves a pest that has been 
                designated as a pest of public health significance by 
                the Environmental Protection Agency and the Centers for 
                Disease Control and Prevention, as described in section 
                2(nn) of the Federal Insecticide, Fungicide, and 
                Rodenticide Act (7 U.S.C. 136(nn)).'';
          (4) by striking subsections (e), (f), and (i);
          (5) by redesignating subsections (g), (h), and (j) as 
        subsections (e), (f), and (h), respectively;
          (6) in subsection (e) (as redesignated by paragraph (5))--
                  (A) in the heading, by inserting ``, Bed Bugs, and 
                Other Pests'' after ``Termite''; and
                  (B) by inserting ``, bed bugs, and other pests, 
                including pests that the Secretary determines are a 
                risk to public health'' after ``termites'' each place 
                it appears in paragraphs (1), (2)(A), and (3);
          (7) in subsection (f) (as redesignated by paragraph (5))--
                  (A) by striking ``2012'' each place it appears in 
                paragraphs (1)(B), (2)(B), and (3) and inserting 
                ``2017''; and
                  (B) in paragraph (4)--
                          (i) in subparagraph (A), by inserting ``and 
                        honey bee health disorders'' after 
                        ``collapse''; and
                          (ii) in subparagraph (B), by inserting ``, 
                        including best management practices'' after 
                        ``strategies'';
          (8) by inserting after subsection (f) (as redesignated by 
        paragraph (5)), the following new subsection:
  ``(g) Bed Bug Control.--
          ``(1) Authorization and use of grants.--The Secretary, in 
        consultation with a task force appointed under subsection 
        (b)(2), shall award grants under this subsection for purposes 
        of--
                  ``(A) developing more efficacious methods of 
                detecting, preventing, and managing bed bugs; and
                  ``(B) conducting basic and applied bed bug biology 
                research.
          ``(2) Grants.--
                  ``(A) Requests for proposals.--The Secretary shall, 
                not later than 180 days after the date of the enactment 
                of this subsection and in consultation with the task 
                force, publish a request for openly competitive grant 
                proposals for research projects for the purposes 
                described in paragraph (1).
                  ``(B) Award of grants.--Not later than 180 days after 
                the date of such publication, the Secretary shall--
                          ``(i) evaluate the grant proposals referred 
                        to in subparagraph (A) in consultation with the 
                        task force; and
                          ``(ii) award grants to entities that 
                        submitted grant proposals for research projects 
                        the Secretary determines are meritorious for 
                        the purposes described in paragraph (1).
                  ``(C) Notification requirement.--The Secretary shall 
                notify the task force of any award made under 
                subparagraph (B) not later than 30 days after awarding 
                such grant.
          ``(3) Consultation and coordination.--To expedite the 
        approval or registration under section 3, section 18, or 
        section 24 of the Federal Insecticide, Fungicide and 
        Rodenticide Act (7 U.S.C. 136a, 136p, and 136v) of the methods 
        identified or discovered through research projects funded under 
        this subsection, the Secretary shall consult and coordinate 
        with the Administrator of the Environmental Protection Agency 
        regarding--
                  ``(A) the awarding of grants under this subsection; 
                and
                  ``(B) the evaluation of the results of such research 
                projects.''; and
          (9) in subsection (h) (as redesignated by paragraph (5)), by 
        striking ``2012'' and inserting ``2017''.

SEC. 7210. REPEAL OF NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                    INITIATIVE.

  Section 1672A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925a) is repealed.

SEC. 7211. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

  Section 1672B of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925b) is amended--
          (1) by striking subsection (e) and inserting the following 
        new subsection:
  ``(e) Farm Business Management Encouraged.--Following the completion 
of a peer review process for grant proposals received under this 
section, the Secretary shall provide a priority to grant proposals 
found in the review process to be scientifically meritorious using the 
same criteria the Secretary uses to give priority to grants under 
section 1672D(b).''; and
          (2) in subsection (f)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking ``and'' 
                        at the end;
                          (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(C) $16,000,000 for each of fiscal years 2013 
                through 2017.''; and
                  (B) in paragraph (2), by striking ``2012'' and 
                inserting ``2017''.

SEC. 7212. REPEAL OF AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY 
                    EFFICIENCY RESEARCH AND EXTENSION INITIATIVE.

  (a) Repeal.--Section 1672C of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5925e) is repealed.
  (b) Conforming Amendment.--Section 251(f)(1)(D) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971(f)(1)(D)) is 
amended--
          (1) by striking clause (xi); and
          (2) by redesignating clauses (xii) and (xiii) as clauses (xi) 
        and (xii), respectively.

SEC. 7213. FARM BUSINESS MANAGEMENT.

  Section 16f72D(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925f(d)) is amended by striking ``such sums as 
are necessary to carry out this section.'' and inserting the following: 
``to carry out this section--
          ``(1) such sums as are necessary for fiscal year 2012; and
          ``(2) $5,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7214. REGIONAL CENTERS OF EXCELLENCE.

  The Food, Agriculture, Conservation, and Trade Act of 1990 is amended 
by inserting after section 1672D (7 U.S.C. 5925f) the following new 
section:

``SEC. 1673. REGIONAL CENTERS OF EXCELLENCE.

  ``(a) Funding Priorities.--The Secretary shall prioritize regional 
centers of excellence established for specific agricultural commodities 
for the receipt of funding for any competitive research or extension 
program administered by the Secretary.
  ``(b) Composition.--A regional center of excellence is composed of 1 
or more of the eligible entities specified in section 2(b)(7) of the 
Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 
450i(b)(7)).
  ``(c) Criteria for Regional Centers of Excellence.--The criteria for 
consideration to be recognized as a regional center of excellence shall 
include efforts--
          ``(1) to ensure coordination and cost effectiveness by 
        reducing unnecessarily duplicative efforts regarding research, 
        teaching, and extension;
          ``(2) to leverage available resources by using public/private 
        partnerships among agricultural industry groups, institutions 
        of higher education, and the Federal Government;
          ``(3) to implement teaching initiatives to increase awareness 
        and effectively disseminate solutions to target audiences 
        through extension activities;
          ``(4) to increase the economic returns to rural communities 
        by identifying, attracting, and directing funds to high-
        priority agricultural issues; and
          ``(5) to improve teaching capacity and infrastructure at 
        colleges and universities (including land-grant institutions, 
        schools of forestry, schools of veterinary medicine, and NLGCA 
        Institutions).''.

SEC. 7215. REPEAL OF RED MEAT SAFETY RESEARCH CENTER.

  Section 1676 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5929) is repealed.

SEC. 7216. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

  Section 1680(c)(1) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5933(c)(1)) is amended--
          (1) by striking ``is'' and inserting ``are''; and
          (2) by striking ``section'' and all that follows and 
        inserting the following: ``section--
                  ``(A) $6,000,000 for each of fiscal years 1999 
                through 2012; and
                  ``(B) $3,000,000 for each of fiscal years 2013 
                through 2017.''.

SEC. 7217. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

  Section 2381(e) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2012'' and 
inserting ``2017''.

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

SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH, EXTENSION, AND 
                    EDUCATION FUNDED BY THE DEPARTMENT.

  Section 103(a)(2) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is amended--
          (1) in the heading by striking ``Merit review of extension'' 
        and inserting ``Relevance and merit review of research, 
        extension,'';
          (2) in subparagraph (A)--
                  (A) by inserting ``relevance and'' before ``merit''; 
                and
                  (B) by striking ``extension or education'' and 
                inserting ``research, extension, or education''; and
          (3) in subparagraph (B), by inserting ``on a continuous 
        basis'' after ``procedures''.

SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
                    GRANTS PROGRAM.

  Section 406(f) of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking ``2012'' 
and inserting ``2017''.

SEC. 7303. REPEAL OF COORDINATED PROGRAM OF RESEARCH, EXTENSION, AND 
                    EDUCATION TO IMPROVE VIABILITY OF SMALL AND MEDIUM 
                    SIZE DAIRY, LIVESTOCK, AND POULTRY OPERATIONS.

  (a) Repeal.--Section 407 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7627) is repealed.
  (b) Conforming Amendment.--Section 251(f)(1)(D) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971(f)(1)(D)), as 
amended by section 7212(b), is further amended--
          (1) by striking clause (xi) (as redesignated by section 
        7212(b)); and
          (2) by redesignating clause (xii) (as redesignated by section 
        7212(b)) as clause (xi).

SEC. 7304. REPEAL OF BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

  Section 409 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7629) is repealed.

SEC. 7305. GRANTS FOR YOUTH ORGANIZATIONS.

  Section 410(d) of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by striking ``section 
such sums as are necessary'' and all that follows and inserting the 
following: ``section--
          ``(1) such sums as are necessary for each of fiscal years 
        2008 through 2012; and
          ``(2) $3,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7306. SPECIALTY CROP RESEARCH INITIATIVE.

  Section 412 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7632) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by striking ``and genomics'' 
                and inserting ``genomics, and other methods''; and
                  (B) in paragraph (3), by inserting ``handling and 
                processing,'' after ``production efficiency,'';
          (2) by striking subsection (d) and inserting the following 
        new subsection:
  ``(d) Research Projects.--In carrying out this section, the Secretary 
shall award competitive grants on the basis of--
          ``(1) an initial scientific peer review conducted by a panel 
        of subject matter experts from Federal agencies, non-Federal 
        entities, and the specialty crop industry; and
          ``(2) a final funding determination made by the Secretary 
        based on a review and ranking for merit, relevance, and impact 
        conducted by a panel of specialty crop industry representatives 
        for the specific specialty crop.''; and
          (3) in subsection (h)--
                  (A) in paragraph (1)--
                          (i) by striking ``(1) In general.--Of the 
                        funds'' and inserting the following:
          ``(1) Mandatory funding.--
                  ``(A) In general.--Of the funds''; and
                          (ii) by adding at the end the following new 
                        subparagraph:
                  ``(B) Subsequent funding.--Of the funds of the 
                Commodity Credit Corporation, the Secretary shall make 
                available to carry out this section--
                          ``(i) $25,000,000 for fiscal year 2013;
                          ``(ii) $30,000,000 for each of fiscal years 
                        2014 and 2015;
                          ``(iii) $65,000,000 for fiscal year 2016; and
                          ``(iv) $50,000,000 for fiscal year 2017 and 
                        each fiscal year thereafter.''; and
                  (B) in paragraph (2), by striking ``2012'' and 
                inserting ``2017''.

SEC. 7307. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

  Section 604(e) of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by striking ``2012'' 
and inserting ``2017''.

SEC. 7308. REPEAL OF NATIONAL SWINE RESEARCH CENTER.

  Section 612 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (Public Law 105-185; 112 Stat. 605) is repealed.

SEC. 7309. OFFICE OF PEST MANAGEMENT POLICY.

  Section 614(f) of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7653(f)) is amended--
          (1) by striking ``such sums as are necessary''; and
          (2) by striking ``section'' and all that follows and 
        inserting the following: ``section--
          ``(1) such sums as are necessary for each of fiscal years 
        1999 through 2012; and
          ``(2) $3,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7310. REPEAL OF STUDIES OF AGRICULTURAL RESEARCH, EXTENSION, AND 
                    EDUCATION.

  Subtitle C of title VI of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7671 et seq.) is repealed.

                         Subtitle D--Other Laws

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

  Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended--
          (1) by striking ``such sums as are necessary''; and
          (2) by striking ``Act'' and all that follows and inserting 
        the following: ``Act--
          ``(1) such sums as are necessary for each of fiscal years 
        1991 through 2012; and
          ``(2) $2,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

  (a) Definition of 1994 Institutions.--Section 532 of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 
Law 103-382) is amended--
          (1) in paragraph (8), by striking ``Memorial'';
          (2) in paragraph (26), by striking ``Community'';
          (3) by striking paragraphs (5), (10), and (27);
          (4) by redesignating paragraphs (1), (2), (3), (4), (6), (7), 
        (8), (9), (11), (12), (13), (14), (15), (16), (17), (18), (19), 
        (20), (21), (22), (23), (24), (25), (26), (28), (29), (30), 
        (31), (32), (33), and (34) as paragraphs (2), (3), (4), (8), 
        (9), (10), (5), (11), (12), (13), (14), (16), (18), (19), (20), 
        (21), (23), (24), (25), (26), (33), (27), (28), (29), (30), 
        (31), (32), (34), (35), (36), and (15) respectively, and 
        transferring the paragraphs so as to appear in numerical order;
          (5) by inserting before paragraph (2) (as so redesignated), 
        the following new paragraph:
          ``(1) Aaniih Nakoda College.'';
          (6) by inserting after paragraph (5) (as so redesignated), 
        the following new paragraphs:
          ``(6) College of the Muscogee Nation.
          ``(7) Comanche Nation College.'';
          (7) by inserting after paragraph (16) (as so redesignated) 
        the following new paragraph:
          ``(17) Keweenaw Bay Ojibwa Community College.''; and
          (8) by inserting after paragraph (21) (as so redesignated) 
        the following new paragraph:
          ``(22) Navajo Technical College.''.
  (b) Endowment for 1994 Institutions.--Section 533(b) of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 
Law 103-382) is amended in the first sentence by striking ``2012'' and 
inserting ``2017''.
  (c) Institutional Capacity Building Grants.--Section 535 of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
Public Law 103-382) is amended by striking ``2012'' each place it 
appears in subsections (b)(1) and (c) and inserting ``2017''.
  (d) Research Grants.--
          (1) Authorization of appropriations.--Section 536(c) of the 
        Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
        301 note; Public Law 103-382) is amended in the first sentence 
        by striking ``2012'' and inserting ``2017''.
          (2) Research grant requirements.--Section 536(b) of the 
        Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
        301 note; Public Law 103-382) is amended by striking ``with at 
        least 1 other land-grant college or university'' and all that 
        follows and inserting the following: ``with--
          ``(1) the Agricultural Research Service of the Department of 
        Agriculture; or
          ``(2) at least 1--
                  ``(A) other land-grant college or university 
                (exclusive of another 1994 Institution);
                  ``(B) non-land-grant college of agriculture (as 
                defined in section 1404 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103)); or
                  ``(C) cooperating forestry school (as defined in that 
                section).''.

SEC. 7403. RESEARCH FACILITIES ACT.

  Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2012'' and inserting ``2017''.

SEC. 7404. REPEAL OF CARBON CYCLE RESEARCH.

  Section 221 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
6711) is repealed.

SEC. 7405. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.

  (a) Extension.--Section 2(b)(11)(A) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)(11)(A)) is amended in 
the matter preceding clause (i) by striking ``2012'' and inserting 
``2017''.
  (b) Priority Areas.--Section 2(b)(2) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)(2)) is amended--
          (1) in subparagraph (A)--
                  (A) in clause (vi), by striking ``and'' at the end;
                  (B) in clause (vii), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following new clause:
                          ``(viii) plant-based foods that are major 
                        sources of nutrients of concern (as determined 
                        by the Secretary).'';
          (2) in subparagraph (B)--
                  (A) in clause (vii), by striking ``and'' at the end;
                  (B) in clause (viii), by striking the period at the 
                end and inserting a semicolon; and
                  (C) by adding at the end the following new clauses:
                          ``(ix) the research and development of 
                        surveillance methods, vaccines, vaccination 
                        delivery systems, or diagnostic tests for 
                        zoonotic diseases in wildlife reservoirs 
                        presenting a potential concern to public health 
                        or domestic livestock; and
                          ``(x) the identification of animal drug needs 
                        and the generation and dissemination of data 
                        for safe and effective therapeutic applications 
                        of animal drugs for minor species and minor 
                        uses of such drugs in major species.'';
          (3) in subparagraph (C)--
                  (A) in clause (ii), by inserting before the semicolon 
                ``, including the effects of plant-based foods that are 
                major sources of nutrients of concern on diet and 
                health'';
                  (B) in clause (iii), by inserting before the 
                semicolon ``, including plant-based foods that are 
                major sources of nutrients of concern'';
                  (C) in clause (iv), by inserting before the semicolon 
                ``, including postharvest practices conducted with 
                respect to plant-based foods that are major sources of 
                nutrients of concern''; and
                  (D) in clause (v), by inserting before the period ``, 
                including improving the functionality of plant-based 
                foods that are major sources of nutrients of concern'';
          (4) in subparagraph (D)--
                  (A) by redesignating clauses (iv), (v), and (vi) as 
                clauses (v), (vi), and (vii), respectively; and
                  (B) by inserting after clause (iii) the following new 
                clause:
                          ``(iv) the effectiveness of conservation 
                        practices and technologies designed to address 
                        nutrient losses and improve water quality;''; 
                        and
          (5) in subparagraph (F)--
                  (A) in the matter preceding clause (i), by inserting 
                ``economics,'' after ``trade,'';
                  (B) by redesignating clauses (v) and (vi) as clauses 
                (vi) and (vii), respectively; and
                  (C) by inserting after clause (iv) the following new 
                clause:
                          ``(v) the economic costs, benefits, and 
                        viability of producers adopting conservation 
                        practices and technologies designed to improve 
                        water quality;''.
  (c) General Administration.--Section 2(b)(4) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(4)) is 
amended--
          (1) in subparagraph (D), by striking ``and'' at the end;
          (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following new subparagraph:
                  ``(F) establish procedures under which a commodity 
                board established under a commodity promotion law (as 
                such term is defined under section 501(a) of the 
                Federal Agriculture Improvement and Reform Act of 1996 
                (7 U.S.C. 7401(a))) or a State commodity board (or 
                other equivalent State entity) may directly submit to 
                the Secretary proposals for requests for applications 
                to specifically address particular issues related to 
                the priority areas specified in paragraph (2).''.
  (d) Special Considerations.--Section 2(b)(6) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(6)) is 
amended--
          (1) in subparagraph (C), by striking ``and'' at the end;
          (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following new subparagraph:
                  ``(E) to eligible entities to carry out the specific 
                research proposals submitted under procedures 
                established under paragraph (4)(F).''.
  (e) Inter-Regional Research Project Number 4.--Section 2(e) of the 
Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 
450i(e)) is amended--
          (1) in paragraph (1)(A), by striking ``minor use pesticides'' 
        and inserting ``pesticides for minor agricultural use and for 
        use on specialty crops (as defined in section 3 of the 
        Specialty Crop Competitiveness Act of 2004 (7 U.S.C. 1621 
        note)''; and
          (2) in paragraph (4)--
                  (A) in subparagraph (A), by inserting ``and for use 
                on specialty crops'' after ``minor agricultural use'';
                  (B) in subparagraph (B), by striking ``and'' at the 
                end;
                  (C) by redesignating subparagraph (C) as subparagraph 
                (G); and
                  (D) by inserting after subparagraph (B) the following 
                new subparagraphs:
                  ``(C) prioritize potential pest management technology 
                for minor agricultural use and for use on specialty 
                crops;
                  ``(D) conduct research to develop the data necessary 
                to facilitate pesticide registrations, reregistrations, 
                and associated tolerances;
                  ``(E) assist in removing trade barriers caused by 
                residues of pesticides registered for minor 
                agricultural use and for use on domestically grown 
                specialty crops;
                  ``(F) assist in the registration and reregistration 
                of pest management technologies for minor agricultural 
                use and for use on specialty crops; and''.
  (f) Emphasis on Sustainable Agriculture.--Section 2 of the 
Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i) 
is amended by striking subsection (k).

SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

  (a) Authorization of Appropriations.--Section 6 of the Renewable 
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the 
first sentence by striking ``2012'' and inserting ``2017''.
  (b) Termination Date.--Section 8 of the Renewable Resources Extension 
Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is amended by 
striking ``2012'' and inserting ``2017''.

SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980.

  Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) 
is amended by striking ``2012'' each place it appears and inserting 
``2017''.

SEC. 7408. REPEAL OF USE OF REMOTE SENSING DATA.

  Section 892 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 5935) is repealed.

SEC. 7409. REPEAL OF REPORTS UNDER FARM SECURITY AND RURAL INVESTMENT 
                    ACT OF 2002.

  (a) Repeal of Report on Producers and Handlers for Organic 
Products.--Section 7409 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 5925b note; Public Law 107-171) is repealed.
  (b) Repeal of Report on Genetically Modified Pest-protected Plants.--
Section 7410 of the Farm Security and Rural Investment Act of 2002 
(Public Law 107-171; 116 Stat. 462) is repealed.
  (c) Repeal of Study on Nutrient Banking.--Section 7411 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 5925a note; Public 
Law 107-171) is repealed.

SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

  Section 7405 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 3319f) is amended--
          (1) in subsection (c)--
                  (A) in paragraph (1), by striking subparagraphs (A) 
                through (R) and inserting the following new 
                subparagraphs:
                  ``(A) basic livestock, forest management, and crop 
                farming practices;
                  ``(B) innovative farm, ranch, and private, 
                nonindustrial forest land transfer strategies;
                  ``(C) entrepreneurship and business training;
                  ``(D) financial and risk management training 
                (including the acquisition and management of 
                agricultural credit);
                  ``(E) natural resource management and planning;
                  ``(F) diversification and marketing strategies;
                  ``(G) curriculum development;
                  ``(H) mentoring, apprenticeships, and internships;
                  ``(I) resources and referral;
                  ``(J) farm financial benchmarking;
                  ``(K) assisting beginning farmers or ranchers in 
                acquiring land from retiring farmers and ranchers;
                  ``(L) agricultural rehabilitation and vocational 
                training for veterans; and
                  ``(M) other similar subject areas of use to beginning 
                farmers or ranchers.'';
                  (B) in paragraph (7), by striking ``and community-
                based organizations'' and inserting ``, community-based 
                organizations, and school-based agricultural 
                educational organizations'';
                  (C) by striking paragraph (8) and inserting the 
                following new paragraph:
          ``(8) Military veteran beginning farmers and ranchers.--
                  ``(A) In general.--Not less than 5 percent of the 
                funds used to carry out this subsection for a fiscal 
                year shall be used to support programs and services 
                that address the needs of military veteran beginning 
                farmers and ranchers.
                  ``(B) Coordination permitted.--A recipient of a grant 
                under this section using the grant as described in 
                subparagraph (A) may coordinate with a recipient of a 
                grant under section 1680 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 5933) in 
                addressing the needs of military veteran beginning 
                farmers and ranchers with disabilities.''; and
                  (D) by adding at the end the following new paragraph:
          ``(11) Limitation on indirect costs.--A recipient of a grant 
        under this section may not use more than 10 percent of the 
        funds provided by the grant for the indirect costs of carrying 
        out the initiatives described in paragraph (1).'';
          (2) in subsection (h)(1)--
                  (A) in subparagraph (A), by striking ``and'' at the 
                end;
                  (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(C) $10,000,000 for each of fiscal years 2013 
                through 2017, to remain available until expended.''; 
                and
          (3) in subsection (h)(2), by striking ``2012'' and inserting 
        ``2017''.

SEC. 7411. INCLUSION OF NORTHERN MARIANA ISLANDS AS A STATE UNDER 
                    MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

  Section 8 of Public Law 87-788 (commonly known as the McIntire-
Stennis Cooperative Forestry Act; 16 U.S.C. 582a-7) is amended by 
striking ``and Guam'' and inserting ``Guam, and the Commonwealth of the 
Northern Mariana Islands''.

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

                     PART 1--AGRICULTURAL SECURITY

SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

  Section 14112(c) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8912(c)) is amended to read as follows:
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
          ``(1) such sums as are necessary for each of fiscal years 
        2008 through 2012; and
          ``(2) $2,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL 
                    BIOSECURITY PLANNING, PREPARATION, AND RESPONSE.

  Section 14113 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8913) is amended--
          (1) in subsection (a)(2)--
                  (A) by striking ``such sums as may be necessary''; 
                and
                  (B) by striking ``subsection'' and all that follows 
                and inserting the following: ``subsection--
          ``(1) such sums as are necessary for each of fiscal years 
        2008 through 2012; and
          ``(2) $15,000,000 for each of fiscal years 2013 through 
        2017.''; and
          (2) in subsection (b)(2), by striking ``is authorized to be 
        appropriated to carry out this subsection'' and all that 
        follows and inserting the following: ``are authorized to be 
        appropriated to carry out this subsection--
          ``(1) $25,000,000 for each of fiscal years 2008 through 2012; 
        and
          ``(2) $15,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

  Section 14121(b) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8921(b)) is amended by striking ``is authorized to be 
appropriated to carry out this section'' and all that follows and 
inserting the following: ``are authorized to be appropriated to carry 
out this section--
          ``(1) $50,000,000 for each of fiscal years 2008 through 2012; 
        and
          ``(2) $15,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

  Section 14122(e) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8922(e)) is amended--
          (1) by striking ``sums as are necessary''; and
          (2) by striking ``section'' and all that follows and 
        inserting the following: ``section--
          ``(1) such sums as are necessary for each of fiscal years 
        2008 through 2012, to remain available until expended; and
          ``(2) $5,000,000 for each of fiscal years 2013 through 2017, 
        to remain available until expended.''.

                         PART 2--MISCELLANEOUS

SEC. 7511. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

  Section 308 of the Federal Crop Insurance Reform and Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 3125a) is amended--
          (1) in subsection (b)(6)(A), by striking ``5 years'' and 
        inserting ``9 years''; and
          (2) in subsection (d)(2), by striking ``1, 3, and 5 years'' 
        and inserting ``5, 7, and 9 years''.

SEC. 7512. GRAZINGLANDS RESEARCH LABORATORY.

  Section 7502 of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 122 Stat. 2019) is amended by striking ``5-year 
period'' and inserting ``9-year period''.

SEC. 7513. BUDGET SUBMISSION AND FUNDING.

  Section 7506 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 7614c) is amended--
          (1) by striking subsection (a) and inserting the following 
        new subsection:
  ``(a) Definitions.--In this section:
          ``(1) Covered program.--The term `covered program' means--
                  ``(A) each research program carried out by the 
                Agricultural Research Service or the Economic Research 
                Service for which annual appropriations are requested 
                in the annual budget submission of the President; and
                  ``(B) each competitive program carried out by the 
                National Institute of Food and Agriculture for which 
                annual appropriations are requested in the annual 
                budget submission of the President.
          ``(2) Request for awards.--The term `request for awards' 
        means a funding announcement published by the National 
        Institute of Food and Agriculture that provides detailed 
        information on funding opportunities at the Institute, 
        including the purpose, eligibility, restriction, focus areas, 
        evaluation criteria, regulatory information, and instructions 
        on how to apply for such opportunities.''; and
          (2) by adding at the end the following new subsections:
  ``(e) Additional Presidential Budget Submission Requirement.--
          ``(1) In general.--Each year, the President shall submit to 
        Congress, together with the annual budget submission of the 
        President, the information described in paragraph (2) for each 
        funding request for a covered program.
          ``(2) Information described.--The information described in 
        this paragraph includes--
                  ``(A) baseline information, including with respect to 
                each covered program--
                          ``(i) the funding level for the program for 
                        the fiscal year preceding the year the annual 
                        budget submission of the President is 
                        submitted;
                          ``(ii) the funding level requested in the 
                        annual budget submission of the President, 
                        including any increase or decrease in the 
                        funding level; and
                          ``(iii) an explanation justifying any change 
                        from the funding level specified in clause (i) 
                        to the level specified in clause (ii);
                  ``(B) with respect to each covered program that is 
                carried out by the Economic Research Service or the 
                Agricultural Research Service, the location and staff 
                years of the program;
                  ``(C) the proposed funding levels to be allocated to, 
                and the expected publication date, scope, and 
                allocation level for, each request for awards to be 
                published under or associated with--
                          ``(i) each priority area specified in section 
                        2(b)(2) of the Competitive, Special, and 
                        Facilities Research Grant Act (7 U.S.C. 
                        450i(b)(2));
                          ``(ii) each research and extension project 
                        carried out under section 1621(a) of the Food, 
                        Agriculture, Conservation, and Trade Act of 
                        1990 (7 U.S.C. 5811(a));
                          ``(iii) each grant to be awarded under 
                        section 1672B(a) of the Food, Agriculture, 
                        Conservation, and Trade Act of 1990 (7 U.S.C. 
                        5925b(a));
                          ``(iv) each grant awarded under section 
                        412(d) of the Agricultural Research, Extension, 
                        and Education Reform Act of 1998 (7 U.S.C. 
                        7632(d)); and
                          ``(v) each grant awarded under 7405(c)(1) of 
                        the Farm Security and Rural Investment Act of 
                        2002 (7 U.S.C. 3319f(c)(1)); or
                  ``(D) any other information the Secretary determines 
                will increase congressional oversight with respect to 
                covered programs.
          ``(3) Prohibition.--Unless the President submits the 
        information described in paragraph (2)(C) for a fiscal year, 
        the President may not carry out any program during the fiscal 
        year that is authorized under--
                  ``(A) section 2(b) of the Competitive, Special, and 
                Facilities Research Grant Act (7 U.S.C. 450i(b));
                  ``(B) section 1621 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 5811);
                  ``(C) section 1672B of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 5925b);
                  ``(D) section 412 of the Agricultural Research, 
                Extension, and Education Reform Act of 1998 (7 U.S.C. 
                7632); or
                  ``(E) section 7405 of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 3319f).
  ``(f) Report of the Secretary of Agriculture.--Each year on a date 
that is not later than the date on which the President submits the 
annual budget, the Secretary shall submit to Congress a report 
containing a description of the agricultural research, extension, and 
education activities carried out by the Federal Government during the 
fiscal year that immediately precedes the year for which the report is 
submitted, including--
          ``(1) a review of the extent to which those activities--
                  ``(A) are duplicative or overlap within the 
                Department of Agriculture; or
                  ``(B) are similar to activities carried out by--
                          ``(i) other Federal agencies;
                          ``(ii) the States (including the District of 
                        Columbia, the Commonwealth of Puerto Rico and 
                        other territories or possessions of the United 
                        States);
                          ``(iii) institutions of higher education (as 
                        defined in section 101 of the Higher Education 
                        Act of 1965 (20 U.S.C. 1001)); or
                          ``(iv) the private sector; and
          ``(2) for each report submitted under this section on or 
        after January 1, 2013, a 5-year projection of national 
        priorities with respect to agricultural research, extension, 
        and education, taking into account domestic needs.''.

SEC. 7514. REPEAL OF RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF 
                    ANTIBIOTIC-RESISTANT BACTERIA.

  Section 7521 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 3202) is repealed.

SEC. 7515. REPEAL OF FARM AND RANCH STRESS ASSISTANCE NETWORK.

  Section 7522 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 5936) is repealed.

SEC. 7516. REPEAL OF SEED DISTRIBUTION.

  Section 7523 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 415-1) is repealed.

SEC. 7517. NATURAL PRODUCTS RESEARCH PROGRAM.

  Section 7525(e) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 5937(e)) is amended to read as follows:
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $7,000,000 for each of fiscal 
years 2013 through 2017.''.

SEC. 7518. SUN GRANT PROGRAM.

  (a) In General.--Section 7526 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8114) is amended--
          (1) in subsection (a)(4)(B), by striking ``the Department of 
        Energy'' and inserting ``other appropriate Federal agencies (as 
        determined by the Secretary)'';
          (2) in subsection (c)(1)--
                  (A) in subparagraph (B), by striking ``multistate'' 
                and all that follows through the period and inserting 
                ``integrated, multistate research, extension, and 
                education programs on technology development and 
                technology implementation.'';
                  (B) by striking subparagraph (C); and
                  (C) by redesignating subparagraph (D) as subparagraph 
                (C);
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by striking ``in accordance with 
                        paragraph (2)'';
                          (ii) by striking ``gasification'' and 
                        inserting ``bioproducts''; and
                          (iii) by striking ``the Department of 
                        Energy'' and inserting ``other appropriate 
                        Federal agencies'';
                  (B) by striking paragraph (2); and
                  (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
          (4) in subsection (g), by striking ``2012'' and inserting 
        ``2017''.
  (b) Conforming Amendments.--Section 7526(f)(1) of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)(1)) is amended 
by striking ``subsection (c)(1)(D)(i)'' and inserting ``subsection 
(c)(1)(C)(i)''.

SEC. 7519. REPEAL OF STUDY AND REPORT ON FOOD DESERTS.

  Section 7527 of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 122 Stat. 2039) is repealed.

SEC. 7520. REPEAL OF AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND 
                    EDUCATION.

  Section 7529 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 5938) is repealed.

SEC. 7521. CONVEYANCE OF LAND COMPRISING SUBTROPICAL HORTICULTURE 
                    RESEARCH STATION.

  (a) Definitions.--In this section:
          (1) County.--The term ``County'' means Miami-Dade County in 
        the State of Florida.
          (2) Property.--The term ``Property'' means approximately 2 
        acres, more or less, of the federally owned land comprising the 
        Subtropical Horticulture Research Station in the County, 
        which--
                  (A) has been mutually delineated by the Secretary and 
                the authorized representative of the County; and
                  (B) fronts on SW 67th Avenue in Palmetto Bay, 
                Florida.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
  (b) Property Conveyance.--
          (1) In general.--Not later than 120 days after the date on 
        which the County deposits the consideration under paragraph (2) 
        and cost reimbursement provided in this section with the 
        Department of Agriculture, the Secretary shall convey and 
        quitclaim to the County, all rights, title, and interests of 
        the United States in the Property, subject to easements and 
        rights of record and such other reservations, terms, and 
        conditions as the Secretary may prescribe.
          (2) Consideration.--
                  (A) In general.--As consideration for the conveyance 
                of the Property, the County shall pay to the Secretary 
                an amount in cash equal to the market value of the 
                property.
                  (B) Appraisal.--To determine the market value of the 
                Property, the Secretary shall have the Property 
                appraised for the highest and best use of the Property 
                in conformity with the Uniform Appraisal Standards for 
                Federal Land Acquisitions developed by the Interagency 
                Land Acquisition Conference. The approved appraisal 
                shall at all times be the property of the United 
                States.
          (3) Corrections.--With the agreement of the County, the 
        Secretary may make minor corrections or modifications to the 
        legal description of the Property.
          (4) Costs.--
                  (A) Transaction costs.--Except as provided in 
                subparagraph (C), the County shall, at closing for the 
                conveyance of the Property under this section, pay or 
                reimburse the Secretary, as appropriate, for the 
                reasonable transaction and administrative personnel 
                costs associated with the conveyance authorized by this 
                section, including the transaction costs of appraisal, 
                title, hazardous substances examination, and closing 
                costs.
                  (B) Administrative costs.--In addition to transaction 
                costs under subparagraph (A), the County shall pay 
                administrative costs in the liquidated amount of 
                $50,000.
                  (C) Attorneys' fees.--The County and the Secretary 
                shall each bear their own attorneys' fees.
          (5) Survey.--The County shall, at its cost, survey the 
        exterior boundaries of the Subtropical Horticulture Research 
        Station and the Property in accordance with Federal survey 
        standards and to the satisfaction of the Secretary, and shall 
        provide to the Secretary certified originals with signature and 
        raised seal.
          (6) Release.--The County, by a recordable instrument that the 
        Secretary determines is satisfactory, shall release the 
        Department of Agriculture from the instrument dated September 
        8, 2006, titled ``Unity of Title''.
          (7) Security fencing.--On or before closing for the 
        conveyance of the Property under this section, the County 
        shall, at its cost, contract for the construction of a security 
        fence located on the boundary between the Property and the 
        adjacent land administered by the Secretary. The fence shall be 
        of materials and standards approved in advance by the 
        Secretary. The Secretary may approve temporary security 
        structures for use during construction phases of the fence.
          (8) Other terms.--The Secretary and the County may otherwise 
        effect the purpose of this section on such additional terms as 
        are mutually acceptable and which are not inconsistent with the 
        provisions of this section.
  (c) Receipts.--
          (1) In general.--The Secretary shall deposit all funds 
        received from the conveyance authorized under this section, 
        including the market value consideration and the reimbursement 
        for costs, into the Treasury of the United States to be 
        credited to the appropriation for the Agricultural Research 
        Service.
          (2) Use of funds.--Notwithstanding any limitation in 
        applicable appropriation Acts for the Department of Agriculture 
        or the Agricultural Research Service, all funds deposited into 
        the Treasury pursuant to subsection (b) shall be available to 
        the Secretary until expended, without further appropriation, 
        for the operation, upkeep, and maintenance of the Subtropical 
        Horticulture Research Station.

SEC. 7522. CONCESSIONS, FEES, AND VOLUNTARY SERVICES AT NATIONAL 
                    ARBORETUM.

  Section 6 of the Act of March 4, 1927 (20 U.S.C. 196) is amended--
          (1) in subsection (a)(1), by inserting ``or nonprofit 
        organizations that support the purpose of the National 
        Arboretum'' after ``mission of the National Arboretum''; and
          (2) by adding at the end the following new subsection:
  ``(d) Recognition of Donors.--A non-profit organization granted a 
concession under subsection (a)(1) may recognize donors if such 
recognition is approved in advance by the Secretary.''.

SEC. 7523. COTTON DISEASE RESEARCH REPORT.

  Not later than 180 days after the date of the enactment of this Act, 
the Secretary shall submit to Congress a report on the fungus fusarium 
oxysporum f. sp. vasinfectum race 4 (referred to in this section as 
``FOV Race 4'') and the impact of such fungus on cotton, including--
          (1) an overview of the threat FOV Race 4 poses to the cotton 
        industry in the United States;
          (2) the status and progress of Federal research initiatives 
        to detect, contain, or eradicate FOV Race 4, including current 
        FOV Race 4-specific research projects; and
          (3) a comprehensive strategy to combat FOV Race 4 that 
        establishes--
                  (A) detection and identification goals;
                  (B) containment goals;
                  (C) eradication goals; and
                  (D) a plan to partner with the cotton industry in the 
                United States to maximize resources, information 
                sharing, and research responsiveness and effectiveness.

SEC. 7524. MISCELLANEOUS TECHNICAL CORRECTIONS.

  Sections 7408 and 7409 of the Food, Conservation, and Energy Act of 
2008 (Public Law 110-246; 122 Stat. 2013) are both amended by striking 
``Title III of the Department of Agriculture Reorganization Act of 
1994'' and inserting ``Title III of the Federal Crop Insurance Reform 
and Department of Agriculture Reorganization Act of 1994''.

                          TITLE VIII--FORESTRY

            Subtitle A--Repeal of Certain Forestry Programs

SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM.

  (a) Repeal.--Section 4 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103) is repealed.
  (b) Conforming Amendment.--Section 8002 of the Farm Security and 
Rural Investment Act of 2002 (Public Law 107-171; 16 U.S.C. 2103 note) 
is amended by striking subsection (a).
  (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 8002. WATERSHED FORESTRY ASSISTANCE PROGRAM.

  (a) Repeal.--Section 6 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103b) is repealed.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 8003. EXPIRED COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING 
                    PROGRAM.

  Section 18 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2112) is repealed.

SEC. 8004. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL 
                    RESOURCES LEADERSHIP PROGRAM.

  (a) Repeal.--Section 8402 of the Food, Conservation, and Energy Act 
of 2008 (16 U.S.C. 1649a) is repealed.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 8005. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM.

  (a) Repeal.--Section 303 of the Healthy Forests Restoration Act of 
2003 (16 U.S.C. 6542) is repealed.
  (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2012.

SEC. 8006. SEPARATE FOREST SERVICE DECISIONMAKING AND APPEALS PROCESS.

  Section 322 of the Department of the Interior and Related Agencies 
Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 note) is 
repealed. Section 428 of division E of the Consolidated Appropriations 
Act, 2012 (Public Law 112-74; 125 Stat. 1046; 16 U.S.C. 6515 note) 
shall not apply to any project or activity implementing a land and 
resource management plan developed under section 6 of the Forest and 
Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604) 
that is categorically excluded from documentation in an environmental 
assessment or an environmental impact statement under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

 Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of 
                             1978 Programs

SEC. 8101. FOREST LEGACY PROGRAM.

  Subsection (m) of section 7 of the Cooperative Forestry Assistance 
Act of 1978 (16 U.S.C. 2103c) is amended to read as follows:
  ``(m) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated--
          ``(1) such sums as are necessary for fiscal year 2012; and
          ``(2) $55,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 8102. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

  Subsection (g) of section 7A of the Cooperative Forestry Assistance 
Act of 1978 (16 U.S.C. 2103d) is amended to read as follows:
  ``(g) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated--
          ``(1) such sums as are necessary for fiscal year 2012; and
          ``(2) $1,500,000 for each of fiscal years 2013 through 
        2017.''.

       Subtitle C--Reauthorization of Other Forestry-Related Laws

SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.

  Section 2371(d)(2) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking ``2012'' and 
inserting ``2017''.

SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

  Subsection (d) of section 2405 of the Global Climate Change 
Prevention Act of 1990 (7 U.S.C. 6704) is amended to read as follows:
  ``(d) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated--
          ``(1) such sums as are necessary for each of fiscal years 
        1996 through 2012; and
          ``(2) $6,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 8203. CHANGE IN FUNDING SOURCE FOR HEALTHY FORESTS RESERVE 
                    PROGRAM.

  Section 508 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 
6578) is amended--
          (1) in subsection (a), by striking ``In General'' and 
        inserting ``Fiscal Years 2009 Through 2012'';
          (2) by redesignating subsection (b) as subsection (d); and
          (3) by inserting after subsection (a) the following new 
        subsections:
  ``(b) Fiscal Years 2013 Through 2017.--There is authorized to be 
appropriated to the Secretary of Agriculture to carry out this section 
$9,750,000 for each of fiscal years 2013 through 2017.
  ``(c) Additional Source of Funds.--In addition to funds appropriated 
pursuant to the authorization of appropriations in subsection (b) for a 
fiscal year, the Secretary may use such amount of the funds 
appropriated for that fiscal year to carry out the Soil Conservation 
and Domestic Allotment Act (16 U.S.C. 590a et seq.) as the Secretary 
determines necessary to cover the cost of technical assistance, 
management, and enforcement responsibilities for land enrolled in the 
healthy forests reserve program pursuant to subsections (a) and (b) of 
section 504.''.

SEC. 8204. STEWARDSHIP END RESULT CONTRACTING PROJECT AUTHORITY.

  Section 347(a) of the Department of the Interior and Related Agencies 
Appropriations Act, 1999 (as contained in section 101(e) of division A 
of Public Law 105-277; 16 U.S.C. 2104 note) is amended by striking 
``2013'' and inserting ``2017''.

           Subtitle D--National Forest Critical Area Response

SEC. 8301. DEFINITIONS.

  In this title:
          (1) Critical area.--The term ``critical area'' means an area 
        of the National Forest System designated by the Secretary under 
        section 8302
          (2) National forest system.--The term ``National Forest 
        System'' has the meaning given that term in section 11(a) of 
        the Forest and Rangeland Renewable Resources Planning Act of 
        1974 (16 U.S.C. 1609(a)).
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.

SEC. 8302. DESIGNATION OF CRITICAL AREAS.

  (a) Designation Requirements.--The Secretary of Agriculture shall 
designate critical areas within the National Forest System for the 
purposes of addressing--
          (1) deteriorating forest health conditions in existence as of 
        the date of the enactment of this Act due to insect 
        infestation, drought, disease, or storm damage; and
          (2) the future risk of insect infestations or disease 
        outbreaks through preventative treatments.
  (b) Designation Method.--In considering National Forest System land 
for designation as a critical area, the Secretary shall use--
          (1) for purposes of subsection (a)(1), the most recent annual 
        forest health aerial surveys of mortality and defoliation; and
          (2) for purposes of subsection (a)(2), the National Insect 
        and Disease Risk Map.
  (c) Time for Initial Designations.--The first critical areas shall be 
designated by the Secretary not later than 60 days after the date of 
the enactment of this Act.
  (d) Duration of Designation.--The designation of a critical area 
shall expire not later than 10 years after the date of the designation.

SEC. 8303. APPLICATION OF EXPEDITED PROCEDURES AND ACTIVITIES OF THE 
                    HEALTHY FORESTS RESTORATION ACT OF 2003 TO CRITICAL 
                    AREAS.

  (a) Applicability.--Subject to subsections (b) through (e), title I 
of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511 et seq.) 
(including the environmental analysis requirements of section 104 of 
that Act (16 U.S.C. 6514), the special administrative review process 
under section 105 of that Act (16 U.S.C. 6515), and the judicial review 
process under section 106 of that Act (16 U.S.C. 6516)), shall apply to 
all Forest Service projects and activities carried out in a critical 
area.
  (b) Application of Other Law.--Section 322 of Public Law 102-381 (16 
U.S.C. 1612 note; 106 Stat. 1419) shall not apply to projects conducted 
in accordance with this section.
  (c) Required Modifications.--In applying title I of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6511 et seq.) to Forest 
Service projects and activities in a critical area, the Secretary shall 
make the following modifications:
          (1) The authority shall apply to the entire critical area, 
        including land that is outside of a wildland-urban interface 
        area or that does not satisfy any of the other eligibility 
        criteria specified in section 102(a) of that Act (16 U.S.C. 
        6512(a)).
          (2) All projects and activities of the Forest Service, 
        including necessary connected actions (as described in section 
        1508.25(a)(1) of title 40, Code of Federal Regulations (or a 
        successor regulation)), shall be considered to be authorized 
        hazardous fuel reduction projects for purposes of applying the 
        title.
  (d) Smaller Projects.--
          (1) In general.--Except as provided in paragraph (2), a 
        project conducted in a critical area in accordance with this 
        section that comprises less than 10,000 acres shall be--
                  (A) considered an action categorically excluded from 
                the requirements for an environmental assessment or an 
                environmental impact statement under section 1508.4 of 
                title 40, Code of Federal Regulations (or a successor 
                regulation); and
                  (B) exempt from the special administrative review 
                process under section 105 of the Healthy Forests 
                Restoration Act of 2003 (16 U.S.C. 6515).
          (2) Exclusion of certain areas.--Paragraph (1) does not apply 
        to--
                  (A) a component of the National Wilderness 
                Preservation System;
                  (B) any Federal land on which, by Act of Congress or 
                Presidential proclamation, the removal of vegetation is 
                restricted or prohibited;
                  (C) a congressionally designated wilderness study 
                area; or
                  (D) an area in which activities under paragraph (1) 
                would be inconsistent with the applicable land and 
                resource management plan.
  (e) Forest Management Plans.--All projects and activities carried out 
in a critical area pursuant to this subtitle shall be consistent with 
the land and resource management plan established under section 6 of 
the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 
U.S.C. 1604) for the unit of the National Forest System containing the 
critical area.

SEC. 8304. GOOD NEIGHBOR AUTHORITY.

  (a) Definitions.--In this section:
          (1) Eligible state.--The term ``eligible State'' means a 
        State that contains National Forest System land.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
          (3) State forester.--The term ``State forester'' means the 
        head of a State agency with jurisdiction over State forestry 
        programs in an eligible State.
  (b) Cooperative Agreements and Contracts.--
          (1) In general.--The Secretary may enter into a cooperative 
        agreement or contract (including a sole source contract) with a 
        State forester to authorize the State forester to provide the 
        forest, rangeland, and watershed restoration and protection 
        services described in paragraph (2) on National Forest System 
        land in the eligible State.
          (2) Authorized services.--The forest, rangeland, and 
        watershed restoration and protection services referred to in 
        paragraph (1) include the conduct of--
                  (A) activities to treat insect infected trees;
                  (B) activities to reduce hazardous fuels; and
                  (C) any other activities to restore or improve 
                forest, rangeland, and watershed health, including fish 
                and wildlife habitat.
          (3) State as agent.--Except as provided in paragraph (6), a 
        cooperative agreement or contract entered into under paragraph 
        (1) may authorize the State forester to serve as the agent for 
        the Secretary in providing the restoration and protection 
        services authorized under that paragraph.
          (4) Subcontracts.--In accordance with applicable contract 
        procedures for the eligible State, a State forester may enter 
        into subcontracts to provide the restoration and protection 
        services authorized under a cooperative agreement or contract 
        entered into under paragraph (1).
          (5) Timber sales.--Subsections (d) and (g) of section 14 of 
        the National Forest Management Act of 1976 (16 U.S.C. 472a) 
        shall not apply to services performed under a cooperative 
        agreement or contract entered into under paragraph (1).
          (6) Retention of nepa responsibilities.--Any decision 
        required to be made under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.) with respect to any 
        restoration and protection services to be provided under this 
        section by a State forester on National Forest System land 
        shall not be delegated to a State forester or any other officer 
        or employee of the eligible State.
          (7) Applicable law.--The restoration and protection services 
        to be provided under this section shall be carried out on a 
        project-to-project basis under existing authorities of the 
        Forest Service.

                  Subtitle E--Miscellaneous Provisions

SEC. 8401. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY AND 
                    ANALYSIS.

  (a) Revision Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall revise the 
strategic plan for forest inventory and analysis initially prepared 
pursuant to section 3(e) of the Forest and Rangeland Renewable 
Resources Research Act of 1978 (16 U.S.C. 1642(e)) to address the 
requirements imposed by subsection (b).
  (b) Elements of Revised Strategic Plan.--In revising the strategic 
plan, the Secretary of Agriculture shall describe in detail the 
organization, procedures, and funding needed to achieve each of the 
following:
          (1) Complete the transition to a fully annualized forest 
        inventory program and include inventory and analysis of 
        interior Alaska.
          (2) Implement an annualized inventory of trees in urban 
        settings, including the status and trends of trees and forests, 
        and assessments of their ecosystem services, values, health, 
        and risk to pests and diseases.
          (3) Report information on renewable biomass supplies and 
        carbon stocks at the local, State, regional, and national 
        level, including by ownership type.
          (4) Engage State foresters and other users of information 
        from the forest inventory and analysis in reevaluating the list 
        of core data variables collected on forest inventory and 
        analysis plots with an emphasis on demonstrated need.
          (5) Improve the timeliness of the timber product output 
        program and accessibility of the annualized information on that 
        database.
          (6) Foster greater cooperation among the forest inventory and 
        analysis program, research station leaders, and State foresters 
        and other users of information from the forest inventory and 
        analysis.
          (7) Promote availability of and access to non-Federal 
        resources to improve information analysis and information 
        management.
          (8) Collaborate with the Natural Resources Conservation 
        Service, National Aeronautics and Space Administration, 
        National Oceanic and Atmospheric Administration, and United 
        States Geological Survey to integrate remote sensing, spatial 
        analysis techniques, and other new technologies in the forest 
        inventory and analysis program.
          (9) Understand and report on changes in land cover and use.
          (10) Expand existing programs to promote sustainable forest 
        stewardship through increased understanding, in partnership 
        with other Federal agencies, of the over 10 million family 
        forest owners, their demographics, and the barriers to forest 
        stewardship.
          (11) Implement procedures to improve the statistical 
        precision of estimates at the sub-State level.
  (c) Submission of Revised Strategic Plan.--The Secretary of 
Agriculture shall submit the revised strategic plan to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate.

SEC. 8402. FOREST SERVICE PARTICIPATION IN ACES PROGRAM.

  The Secretary of Agriculture, acting through the Chief of the Forest 
Service, may use funds derived from conservation-related programs 
executed on National Forest System lands to utilize the Agriculture 
Conservation Experienced Services Program established pursuant to 
section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) to 
provide technical services for conservation-related programs and 
authorities carried out by the Secretary on National Forest System 
lands.

                            TITLE IX--ENERGY

SEC. 9001. DEFINITION OF RENEWABLE ENERGY SYSTEM.

  Section 9001 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101) is amended by--
          (1) striking paragraph (4) and inserting the following:
          ``(4) Biobased product.--
                  ``(A) In general.--The term `biobased product' means 
                a product determined by the Secretary to be a 
                commercial or industrial product (other than food or 
                feed) that is--
                          ``(i) composed, in whole or in significant 
                        part, of biological products, including 
                        renewable domestic agricultural materials and 
                        forestry materials; or
                          ``(ii) an intermediate ingredient or 
                        feedstock.
                  ``(B) Inclusion.--The term `biobased product', with 
                respect to forestry materials, includes forest products 
                that meet biobased content requirements, 
                notwithstanding the market share the product holds, the 
                age of the product, or whether the market for the 
                product is new or emerging.'';
          (2) redesignating paragraphs (9), (10), (11), (12), (13), and 
        (14) as paragraphs (10), (11), (12), (13), (14), and (16);
          (3) inserting after paragraph (8), the following new 
        paragraph:
          ``(9) Forest product.--
                  ``(A) In general.--The term `forest product' means a 
                product made from materials derived from the practice 
                of forestry or the management of growing timber.
                  ``(B) Inclusions.--The term `forest product' 
                includes--
                          ``(i) pulp, paper, paperboard, pellets, and 
                        wood products; and
                          ``(ii) any recycled products derived from 
                        forest materials.''; and
          (4) inserting after paragraph (14) (as so redesignated), the 
        following new paragraph:
          ``(15) Renewable energy system.--
                  ``(A) In general.--Subject to subparagraph (B), the 
                term `renewable energy system' means a system that--
                          ``(i) produces usable energy from a renewable 
                        energy source; and
                          ``(ii) may include distribution components 
                        necessary to move energy produced by such 
                        system to the initial point of sale.
                  ``(B) Limitation.--A system described in subparagraph 
                (A) may not include a mechanism for dispensing energy 
                at retail.''.

SEC. 9002. BIOBASED MARKETS PROGRAM.

  Section 9002(h) of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8102(h)) is amended--
          (1) in the heading of paragraph (1), by inserting ``for 
        fiscal years 2008 through 2012'' after ``funding'';
          (2) in the heading of paragraph (2), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding''; and
          (3) by adding at the end the following new paragraph:
          ``(3) Fiscal years 2013 through 2017.--There are authorized 
        to be appropriated to carry out this section $2,000,000 for 
        each of fiscal years 2013 through 2017.''.

SEC. 9003. BIOREFINERY ASSISTANCE.

  (a) Program Adjustments.--Section 9003 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8103) is amended--
          (1) in subsection (c), by striking ``to eligible entities'' 
        and all that follows through ``guarantees for loans'' and 
        inserting ``to eligible entities guarantees for loans'';
          (2) by striking subsection (d);
          (3) by redesignating subsections (e), (f), (g), and (h) as 
        subsections (d), (e), (f), and (g), respectively; and
          (4) in subsection (d) (as so redesignated)--
                  (A) by striking ``subsection (c)(2)'' each place it 
                appears and inserting ``subsection (c)''; and
                  (B) in paragraph (2)(C), by striking ``subsection 
                (h)'' and inserting ``subsection (g)''.
  (b) Funding.--Section 9003(g) of the Farm Security and Rural 
Investment Act of 2002, as redesignated by subsection (a)(3), is 
amended--
          (1) in the heading of paragraph (1), by inserting ``for 
        fiscal years 2009 and 2010'' after ``funding'';
          (2) in the heading of paragraph (2), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding''; and
          (3) by adding at the end the following new paragraph:
          ``(3) Fiscal years 2013 through 2017.--There are authorized 
        to be appropriated to carry out this section $75,000,000 for 
        each of fiscal years 2013 through 2017.''.

SEC. 9004. REPEAL OF REPOWERING ASSISTANCE PROGRAM AND TRANSFER OF 
                    REMAINING FUNDS.

  (a) Repeal.--Subject to subsection (b), section 9004 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 8104) is repealed.
  (b) Use of Remaining Funding for Rural Energy for America Program.--
Funds made available pursuant to subsection (d) of such section 9004 
that are unobligated on the day before the date of the enactment of 
this section shall--
          (1) remain available until expended;
          (2) be used by the Secretary of Agriculture to carry out 
        financial assistance for energy efficiency improvements and 
        renewable energy systems under section 9007(a)(2) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 
        8107(a)(2)); and
          (3) be in addition to any other funds made available to carry 
        out that program.

SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

  Section 9005(g) of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8105(c)) is amended--
          (1) in the heading of paragraph (1), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding'';
          (2) in the heading of paragraph (2), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding'';
          (3) by redesignating paragraph (3) as paragraph (4); and
          (4) by inserting after paragraph (2) the following new 
        paragraph:
          ``(3) Fiscal years 2013 through 2017.--There are authorized 
        to be appropriated to carry out this section $50,000,000 for 
        each of fiscal years 2013 through 2017.''.

SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

  Subsection (d) of section 9006 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8106(d)) is amended to read as 
follows:
  ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000 for each of fiscal 
years 2013 through 2017.''.

SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

  (a) Program Adjustments.--
          (1) Repeal of feasibility studies.--Section 9007(c) of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8107(c)) is amended by striking paragraph (3).
          (2) Tiered application process.--Section 9007(c) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8107(c)) is 
        further amended by--
                  (A) redesignating paragraph (2) as paragraph (3); and
                  (B) by inserting after paragraph (1) the following 
                new paragraph:
          ``(2) Tiered application process.--In carrying out this 
        subsection, the Secretary shall establish a three-tiered 
        application, evaluation, and oversight process that varies 
        based on the cost of the proposed project with the process most 
        simplified for projects referred to in subparagraph (A), more 
        comprehensive for projects referred to in subparagraph (B), and 
        most comprehensive for projects referred to in subparagraph 
        (C). The three tiers for such process shall be as follows:
                  ``(A) Tier 1.--Projects for which the cost of the 
                project funded under this subsection is not more than 
                $80,000.
                  ``(B) Tier 2.--Projects for which the cost of the 
                project funded under this subsection is more than 
                $80,000 but less than $200,000.
                  ``(C) Tier 3.--Projects for which the cost of the 
                project funded under this subsection is $200,000 or 
                more.''.
  (b) Funding.--Section 9007(g) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8107(g)) is amended--
          (1) in the heading of paragraph (1), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding'';
          (2) in the heading of paragraph (2), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding'';
          (3) in the heading of paragraph (3), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding''; and
          (4) by adding at the end the following new paragraph:
          ``(4) Fiscal years 2013 through 2017.--There are authorized 
        to be appropriated to carry out this section $45,000,000 for 
        each of fiscal years 2013 through 2017.''.

SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

  Section 9008(h) of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108(h)) is amended--
          (1) in the heading of paragraph (1), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding'';
          (2) in the heading of paragraph (2), by inserting ``for 
        fiscal years 2009 through 2012'' after ``funding''; and
          (3) by adding at the end the following new paragraph:
          ``(3) Fiscal years 2013 through 2017.--There are authorized 
        to be appropriated to carry out this section $20,000,000 for 
        each of fiscal years 2013 through 2017.''.

SEC. 9009. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

  Section 9010(b) of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8110(b)) is amended--
          (1) in paragraph (1)(A), by striking ``2012'' and inserting 
        ``2017''; and
          (2) in paragraph (2)(A), by striking ``2012'' and inserting 
        ``2017''.

SEC. 9010. BIOMASS CROP ASSISTANCE PROGRAM.

  Section 9011 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8111) is amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (6); and
                  (B) by redesignating paragraphs (7) and (8) as 
                paragraphs (6) and (7), respectively;
          (2) in subsection (b)--
                  (A) by striking ``Program to'' and all that follows 
                through ``support the establishment'' and inserting 
                ``Program to support the establishment'';
                  (B) by striking ``; and'' and inserting a period; and
                  (C) by striking paragraph (2);
          (3) in subsection (c)--
                  (A) in paragraph (2)(B)--
                          (i) in clause (viii), by striking ``; and'' 
                        and inserting a semicolon;
                          (ii) by redesignating clause (ix) as clause 
                        (x); and
                          (iii) by inserting after clause (viii) the 
                        following new clause:
                          ``(ix) existing project areas that have 
                        received funding under this section and the 
                        continuation of funding of such project areas 
                        to advance the maturity of such project areas; 
                        and''; and
                  (B) in paragraph (5)(C)(ii)--
                          (i) by striking subclause (III); and
                          (ii) by redesignating subclauses (IV) and (V) 
                        as subclauses (III) and (IV), respectively;
          (4) by striking subsection (d);
          (5) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively; and
          (6) in subsection (e) (as so redesignated)--
                  (A) by striking ``(e) Funding.--Of the funds'' and 
                inserting ``(e) Funding.--
          ``(1) Fiscal years 2008 through 2012.--Of the funds''; and
                  (B) by adding at the end the following new paragraph:
          ``(2) Fiscal years 2013 through 2017.--
                  ``(A) In general.--Subject to subparagraph (B), there 
                are authorized to be appropriated to carry out this 
                section $75,000,000 for each of fiscal years 2013 
                through 2017.
                  ``(B) Multiyear contracts.--For each multiyear 
                contract entered into by the Secretary during a fiscal 
                year under this section, the Secretary shall ensure 
                that sufficient funds are obligated from the 
                appropriation for that fiscal year to fully cover all 
                payments required by the contract for all years of the 
                contract.''.

SEC. 9011. COMMUNITY WOOD ENERGY PROGRAM.

  Section 9013(e) of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8113(e)) is amended by striking ``carry out this section'' 
and all that follows and inserting the following: ``carry out this 
section--
          ``(1) $5,000,000 for each of fiscal years 2009 through 2012; 
        and
          ``(2) $2,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 9012. REPEAL OF BIOFUELS INFRASTRUCTURE STUDY.

  Section 9002 of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 122 Stat. 2095) is repealed.

SEC. 9013. REPEAL OF RENEWABLE FERTILIZER STUDY.

  Section 9003 of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 122 Stat. 2096) is repealed.

                         TITLE X--HORTICULTURE

SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION.

  Section 10107(b) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 1622b(b)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY 
                    CROPS.

  Section 10403 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 1622c) is repealed.

SEC. 10003. FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM.

  Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 
U.S.C. 3005) is amended--
          (1) in the section heading, by inserting ``and local food'' 
        after ``farmers' market'';
          (2) in subsection (a)--
                  (A) by inserting ``and Local Food'' after ``Farmers' 
                Market'';
                  (B) by striking ``farmers' markets and to promote''; 
                and
                  (C) by striking the period and inserting ``and assist 
                in the development of local food business 
                enterprises.'';
          (3) in subsection (b), by striking paragraph (1) and 
        inserting the following new paragraph:
          ``(1) In general.--The purposes of the Program are to 
        increase domestic consumption of, and consumer access to, 
        locally and regionally produced agricultural products by 
        assisting in the development, improvement, and expansion of--
                  ``(A) domestic farmers' markets, roadside stands, 
                community-supported agriculture programs, agritourism 
                activities, and other direct producer-to-consumer 
                market opportunities; and
                  ``(B) local and regional food business enterprises 
                that process, distribute, aggregate, and store locally 
                or regionally produced food products.'';
          (4) in subsection (c)(1)--
                  (A) by inserting ``or other agricultural business 
                entity'' after ``cooperative''; and
                  (B) by inserting ``, including a community supported 
                agriculture network or association'' after 
                ``association'';
          (5) by redesignating subsection (e) as subsection (g);
          (6) by inserting after subsection (d) the following new 
        subsections:
  ``(e) Priority.--In awarding grants under this section, the Secretary 
shall give priority to applications submitted by eligible entities that 
include proposals for projects that--
          ``(1) benefit underserved communities;
          ``(2) develop market opportunities for small and mid-sized 
        farm and ranch operations; and
          ``(3) include a strategic plan to maximize the use of funds 
        to build capacity for local and regional food systems in a 
        community.
  ``(f) Funds Requirements for Eligible Entities.--
          ``(1) Matching funds.--An entity receiving a grant under this 
        section for a project to carry out a purpose described in 
        subsection (b)(1)(B) shall provide matching funds in the form 
        of cash or an in-kind contribution in an amount equal to 25 
        percent of the total cost of such project.
          ``(2) Limitation on use of funds.--An eligible entity may not 
        use a grant or other assistance provided under this section for 
        the purchase, construction, or rehabilitation of a building or 
        structure.''; and
          (7) in subsection (g) (as redesignated by paragraph (5))--
                  (A) in paragraph (1)--
                          (i) in subparagraph (B), by striking ``and'' 
                        at the end;
                          (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(D) $20,000,000 for each of fiscal years 2013 
                through 2017.'';
                  (B) by striking paragraphs (2) and (4);
                  (C) by redesignating paragraph (3) as paragraph (5); 
                and
                  (D) by inserting after paragraph (1) the following 
                new paragraphs:
          ``(2) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this section $10,000,000 for 
        each of fiscal years 2013 through 2017.
          ``(3) Use of funds.--Of the funds made available to carry out 
        this section for a fiscal year, 50 percent of such funds shall 
        be used for the purposes described in subparagraph (A) of 
        subsection (b)(1) and 50 percent of such funds shall be used 
        for the purposes described in subparagraph (B) of such 
        subsection.
          ``(4) Limitation on administrative expenses.--Not more than 5 
        percent of the total amount made available to carry out this 
        section for a fiscal year may be used for administrative 
        expenses.''.

SEC. 10004. ORGANIC AGRICULTURE.

  (a) Organic Production and Market Data Initiatives.--Section 7407(d) 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
5925c(d)) is amended--
          (1) by redesignating paragraph (2) as paragraph (3);
          (2) by inserting after paragraph (1) the following new 
        paragraph:
          ``(2) Mandatory funding.--In addition to funds made available 
        under paragraph (1), of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $5,000,000, to remain available until expended.''; and
          (3) in paragraph (3) (as redesignated by paragraph (1))--
                  (A) by striking ``paragraph (1)'' and inserting 
                ``paragraphs (1) and (2)''; and
                  (B) by striking ``2012'' and inserting ``2017''.
  (b) Modernization and Technology Upgrade for National Organic 
Program.--Section 2122 of the Organic Foods Production Act of 1990 (7 
U.S.C. 6521) is amended by adding at the end the following new 
subsection:
  ``(c) Modernization and Technology Upgrade for National Organic 
Program.--The Secretary shall modernize database and technology systems 
of the national organic program.''.
  (c) Authorization of Appropriations for National Organic Program.--
Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C. 
6522) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (5), by striking ``and'' at the end;
                  (B) by redesignating paragraph (6) as paragraph (7); 
                and
                  (C) by inserting after paragraph (5) the following 
                new paragraph:
          ``(6) $11,000,000 for each of fiscal years 2013 through 2017; 
        and''; and
          (2) by adding at the end the following new subsection:
  ``(c) Modernization and Technology Upgrade for National Organic 
Program.--Of the funds of the Commodity Credit Corporation and in 
addition to any other funds made available to carry out section 
2122(c), the Secretary shall use to carry out such section $5,000,000 
for fiscal year 2013, to remain available until expended.''.
  (d) National Organic Certification Cost-share Program.--Section 10606 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523) 
is repealed.

SEC. 10005. INVESTIGATIONS AND ENFORCEMENT OF THE ORGANIC FOODS 
                    PRODUCTION ACT OF 1990.

  The Organic Foods Production Act of 1990 is amended by inserting 
after section 2122 (7 U.S.C. 6521) the following new section:

``SEC. 2122A. INVESTIGATIONS AND ENFORCEMENT.

  ``(a) Investigation.--
          ``(1) In general.--The Secretary may take such investigative 
        actions as the Secretary considers to be necessary to carry out 
        this title--
                  ``(A) to verify the accuracy of any information 
                reported or made available under this title; and
                  ``(B) to determine, with regard to actions, 
                practices, or information required under this title, 
                whether a person covered by this title has committed a 
                violation of any provision of this title.
          ``(2) Investigative powers.--The Secretary may administer 
        oaths and affirmations, subpoena witnesses, compel attendance 
        of witnesses, take evidence, and require the production of any 
        records required to be maintained under section 2112(d) or 
        2116(c) that are relevant to the investigation.
  ``(b) Unlawful Act.--It shall be unlawful and a violation of this 
title for any person covered by this title--
          ``(1) to refuse to provide information required by the 
        Secretary under this title; or
          ``(2) to violate--
                  ``(A) a suspension or revocation of the organic 
                certification of a producer or handler; or
                  ``(B) a suspension or revocation of the accreditation 
                of a certifying agent.
  ``(c) Enforcement.--
          ``(1) Suspension.--
                  ``(A) In general.--The Secretary may, after notice 
                and opportunity for an expedited administrative 
                hearing, suspend the organic certification of a 
                producer or handler, or accreditation of a certifying 
                agent, if the Secretary has reason to believe that a 
                person producing or handling an agricultural product, 
                or a certifying agent, has violated or is violating any 
                provision of this title. The decision to suspend a 
                certification under this subparagraph by the Secretary 
                may be appealed to a United States district court not 
                later than 30 days after such decision is made and 
                shall not take effect until judicial review of such 
                decision is completed.
                  ``(B) Continuation of suspension through appeal.--If 
                the Secretary determines subsequent to an investigation 
                that a violation of this title by a person covered by 
                this title has occurred, the suspension shall remain in 
                effect until the Secretary issues a revocation of the 
                certification of the person or of the accreditation of 
                the certifying agent, covered by this title, after an 
                expedited administrative appeal under section 2121 has 
                been completed.
          ``(2) Revocation.--After notice and opportunity for an 
        administrative appeal under section 2121, if a violation of 
        this title is determined to have occurred, the Secretary shall 
        revoke the organic certification of the producer or handler, or 
        the accreditation of the certifying agent.
  ``(d) Appeal.--
          ``(1) In general.--A revocation of a certification or an 
        accreditation under subsection (c)(2) shall be final and 
        conclusive unless the affected person files an appeal of the 
        revocation, if the affected person so elects, to a United 
        States district court as provided in section 2121(b) not later 
        than 30 days after the date of the revocation under subsection 
        (c)(2).
          ``(2) Standard.--A revocation of a certification or an 
        accreditation under subsection (c)(2) shall be set aside only 
        if the revocation of such certification or such accreditation 
        is clearly erroneous.
  ``(e) Noncompliance.--
          ``(1) In general.--If a person covered by this title fails to 
        obey a revocation of a certification or an accreditation under 
        subsection (c)(2) after such revocation has become final and 
        conclusive or after the appropriate United States district 
        court has entered a final judgment in favor of the Secretary, 
        the United States may apply to the appropriate United States 
        district court for enforcement of such revocation.
          ``(2) Enforcement.--If the court determines that the 
        revocation was lawfully made and duly served and that the 
        person violated the revocation, the court shall enforce the 
        revocation.
          ``(3) Civil penalty.--If the court finds that the person 
        violated the revocation of a certification or an accreditation 
        under subsection (c)(2), the person shall be subject to one or 
        more of the penalties provided in subsections (a) and (b) of 
        section 2120.''.

SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES.

  Section 10105(c) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 7655a(c)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 10007. SPECIALTY CROP BLOCK GRANTS.

  Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 
U.S.C. 1621 note; Public Law 108-465) is amended--
          (1) in subsection (a)--
                  (A) by striking ``subsection (j)'' and inserting 
                ``subsection (l)''; and
                  (B) by striking ``2012'' and inserting ``2017'';
          (2) by striking subsection (b) and inserting the following 
        new subsection:
  ``(b) Grants Based on Value and Acreage.--Subject to subsection (c), 
for each State whose application for a grant for a fiscal year that is 
accepted by the Secretary under subsection (f), the amount of the grant 
for such fiscal year to the State under this section shall bear the 
same ratio to the total amount made available under subsection (l)(1) 
for such fiscal year as--
          ``(1) the average of the most recent available value of 
        specialty crop production in the State and the acreage of 
        specialty crop production in the State, as demonstrated in the 
        most recent Census of Agriculture data; bears to
          ``(2) the average of the most recent available value of 
        specialty crop production in all States and the acreage of 
        specialty crop production in all States, as demonstrated in the 
        most recent Census of Agriculture data.'';
          (3) by redesignating subsection (j) as subsection (l);
          (4) by inserting after subsection (i) the following new 
        subsections:
  ``(j) Multistate Projects.--Not later than 180 days after the 
effective date of the Federal Agriculture Reform and Risk Management 
Act of 2012, the Secretary of Agriculture shall issue guidance for the 
purpose of making grants to multistate projects under this section for 
projects involving--
          ``(1) food safety;
          ``(2) plant pests and disease;
          ``(3) research;
          ``(4) crop-specific projects addressing common issues; and
          ``(5) any other area that furthers the purposes of this 
        section, as determined by the Secretary.
  ``(k) Administration.--
          ``(1) Department.--The Secretary of Agriculture may not use 
        more than 3 percent of the funds made available to carry out 
        this section for a fiscal year for administrative expenses.
          ``(2) States.--A State receiving a grant under this section 
        may not use more than 8 percent of the funds received under the 
        grant for a fiscal year for administrative expenses.''; and
          (5) in subsection (l) (as redesignated by paragraph (3))--
                  (A) by redesignating paragraphs (1), (2), and (3) as 
                subparagraphs (A), (B), and (C), respectively, and 
                moving such subparagraphs two ems to the right;
                  (B) by striking ``Of the funds'' and inserting the 
                following:
          ``(1) In general.--Of the funds'';
                  (C) in paragraph (1) (as so designated)--
                          (i) in subparagraph (B) (as redesignated by 
                        subparagraph (A)), by striking ``and'' at the 
                        end;
                          (ii) in subparagraph (C) (as redesignated by 
                        subparagraph (A)), by striking the period at 
                        the end and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(D) $70,000,000 for fiscal year 2013 and each 
                fiscal year thereafter.''; and
                  (D) by adding at the end the following new paragraph:
          ``(2) Multistate projects.--Of the funds made available under 
        paragraph (1), the Secretary may use to carry out subsection 
        (j), to remain available until expended--
                  ``(A) $1,000,000 for fiscal year 2013;
                  ``(B) $2,000,000 for fiscal year 2014;
                  ``(C) $3,000,000 for fiscal year 2015;
                  ``(D) $4,000,000 for fiscal year 2016; and
                  ``(E) $5,000,000 for fiscal year 2017.''.

SEC. 10008. REPORT ON SPECIALTY CROP PRODUCTION BY CERTAIN FARMERS.

  (a) Report Required.--The Secretary of Agriculture shall, in 
consultation with interested persons, submit to the Committee on 
Agriculture of the House of Representatives a report on specialty crop 
production by small-holder, women, minority, and socially disadvantaged 
producers (as defined in section 355(e) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(e))) throughout the United States, 
including--
          (1) an assessment of--
                  (A) the number of such producers in the United 
                States;
                  (B) the economic and social challenges such producers 
                have in increasing production capacity and value; and
                  (C) the resources needed to increase or add value to 
                the production of such producers;
          (2) a list of the resources available at the Department of 
        Agriculture to provide assistance to such producers;
          (3) an evaluation of private sector resources and initiatives 
        that could be used to increase production capacity and value 
        for the crops grown by such producers; and
          (4) an evaluation of how geographic differences affect 
        opportunities available to small-holder producers.
  (b) Updates and Completion.--The Secetary shall submit the completed 
report required under subsection (a) not later than one year after the 
date of the enactment of the Federal Agriculture Reform and Risk 
Management Act of 2012. Beginning on such date of enactment, the 
Secretary shall update the Committee on Agriculture of the House of 
Representatives every 90 days on the progress made toward completing 
the report.

SEC. 10009. REPORT ON HONEY.

  (a) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Agriculture, in consultation with persons 
affected by the potential establishment of a Federal standard for the 
identity of honey, shall submit to the Commissioner of Food and Drugs a 
report describing how an appropriate Federal standard for the identity 
of honey would be in the interest of consumers, the honey industry, and 
United States agriculture.
  (b) Considerations.--In preparing the report required under 
subsection (a), the Secretary shall take into consideration the March, 
2006, Standard of Identity citizens petition filed with the Food and 
Drug Administration, including any current industry amendments or 
clarifications necessary to update such petition.

SEC. 10010. BULK SHIPMENTS OF APPLES TO CANADA.

  (a) Bulk Shipment of Apples to Canada.--Section 4 of the Export Apple 
Act (7 U.S.C. 584) is amended--
          (1) by striking ``Apples in'' and inserting ``(a) Apples 
        in''; and
          (2) by adding at the end the following new subsection:
  ``(b) Apples may be shipped to Canada in bulk bins without complying 
with the provisions of this Act.''.
  (b) Definition of Bulk Bin.--Section 9 of the Export Apple Act (7 
U.S.C. 589) is amended by adding at the end the following new 
paragraph:
  ``(5) The term `bulk bin' means a bin that contains a quantity of 
apples weighing more than 100 pounds.''.
  (c) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out the amendments made by this section

SEC. 10011. INCLUSION OF OLIVE OIL IN IMPORT CONTROLS UNDER THE 
                    AGRICULTURAL ADJUSTMENT ACT.

  Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 608e-1(a)) 
is amended by inserting ``olive oil,'' after ``olives (other than 
Spanish-style green olives),''.

SEC. 10012. PETITIONS TO DETERMINE ORGANISM NOT A PLANT PEST.

  (a) Petition to Determine Organism Not a Plant Pest.--The Plant 
Protection Act is amended by inserting after section 411 (7 U.S.C. 
7711) the following new section:

``SEC. 411A. PETITION TO DETERMINE ORGANISM NOT A PLANT PEST.

  ``(a) Petition.--A person may petition the Secretary for a 
determination that an organism that is subject to regulation by the 
Secretary as a plant pest under this Act is not a plant pest for 
purposes of this Act.
  ``(b) Review of Petition.--
          ``(1) Assessment and analysis required.--In reviewing a 
        petition submitted under subsection (a), the Secretary shall 
        conduct the following with respect to an organism that is the 
        subject of the petition:
                  ``(A) Plant pest risk assessment.--An assessment of 
                the likelihood that such organism is a plant pest.
                  ``(B) Environmental analysis.--An analysis of any 
                likely adverse effects of such organism on the soil, 
                water, air quality, non-target organisms, and listed 
                threatened and endangered species and the critical 
                habitat of such species for the environment in which 
                such organism is likely to be grown or otherwise used 
                under the conditions specified in such petition.
          ``(2) Determination.--The Secretary shall issue a 
        determination that an organism is not a plant pest for purposes 
        of this Act if the Secretary determines, based on sound science 
        and the plant pest risk assessment conducted under paragraph 
        (1)(A), that an organism is not likely to be a plant pest.
          ``(3) Review period.--
                  ``(A) Initial review period.--Not later than one year 
                after the date on which the Secretary determines that a 
                petition submitted under subsection (a) is complete, 
                the Secretary shall complete the plant pest risk 
                assessment and the environmental analysis required 
                under paragraph (1) and issue a determination with 
                respect to such petition under paragraph (2).
                  ``(B) Extension.--The Secretary may extend the one-
                year review period referred to in subparagraph (A) for 
                a petition for one additional period of not more than 
                180 days if the Secretary determines that additional 
                review is necessary. The Secretary shall notify the 
                person who submitted the petition, in writing, of the 
                reasons for the extension and an estimate of the time 
                period necessary to complete the review.
          ``(4) Effect of failure to meet time period.--Notwithstanding 
        any other provision of law, if after completing the plant pest 
        risk assessment, but not the environmental analysis, required 
        under paragraph (1), the Secretary finds that there is no 
        reason to believe that an organism is a plant pest and does not 
        grant or deny a petition submitted under subsection (a) with 
        respect to such organism within the time period required under 
        paragraph (3), such organism shall be deemed not to be a plant 
        pest for purposes of this Act.
          ``(5) Effect on pesticide registration.--In the case of an 
        organism containing a plant-incorporated protectant (as defined 
        in section 174.3 of title 40, Code of Federal Regulations, or 
        any successor regulation) with respect to which an application 
        for registration of the plant-incorporated protectant is 
        pending under the Federal Insecticide, Fungicide, and 
        Rodenticide Act (7 U.S.C. 136a et seq.), a determination made 
        under paragraph (2) that an organism is not a plant pest or the 
        deeming that an organism is not a plant pest under paragraph 
        (4) shall not be effective until the registration of the plant-
        incorporated protectant contained in such organism is approved 
        under the Federal Insecticide, Fungicide, and Rodenticide Act 
        (7 U.S.C. 136a et seq.). If such registration is not approved, 
        a determination made under paragraph (2) that an organism is 
        not a plant pest or a deeming that an organism is not a plant 
        pest under paragraph (4) shall not become effective.
          ``(6) Subsequent authority to regulate.--Notwithstanding a 
        determination that an organism is not a plant pest under 
        paragraph (2) or that such organism has been deemed not to be a 
        plant pest under paragraph (4), the Secretary may issue a 
        determination, based on information discovered after the date 
        of such determination or the date on which the organism was so 
        deemed and sound science, that an organism is a plant pest for 
        purposes of this Act.
          ``(7) Public notice.--
                  ``(A) Notice.--The Secretary shall publish notice in 
                the Federal Register of--
                          ``(i) the grant or denial of a petition 
                        submitted under subsection (a) with respect to 
                        an organism; or
                          ``(ii) the deeming that such organism is not 
                        a plant pest under paragraph (4).
                  ``(B) Risk assessments and environmental analysis.--
                The Secretary shall provide to the person who submitted 
                a petition under subsection (a), and make available to 
                the public, the risk assessment and environmental 
                analysis prepared under paragraph (1) with respect to 
                such petition.
  ``(c) Applicability of Environmental Analysis Conducted for Petition 
to Determine Organism Not a Plant Pest.--
          ``(1) Exclusive analysis performed.--Notwithstanding any 
        other provision of law, the environmental analysis required 
        under subsection (b)(1) and as specifically described in such 
        subsection shall be the only analysis or procedure regarding 
        the effects on the environment of an organism that is the 
        subject of a petition submitted under subsection (a) required 
        or authorized by law with respect to reviewing and taking 
        action on such a petition.
          ``(2) Prohibition on use of funds for other analyses.--No 
        funds made available by any Act shall be obligated, expended, 
        or used for any analysis or procedure regarding the effects on 
        the environment of an organism conducted for purposes of this 
        section other than the environmental analysis required under 
        subsection (b)(1).
          ``(3) Prohibition on solicitation of funds for environmental 
        analysis.--The Secretary shall not require or solicit any 
        financial assistance from a person submitting a petition under 
        subsection (a) for any analysis or procedure regarding the 
        effects on the environment of an organism or for any other 
        analysis or procedure not specifically authorized by subsection 
        (b)(1).
  ``(d) Use of Data From Permits for Purposes of Petition for a 
Determination That an Organism Not a Plant Pest.--Notwithstanding any 
other provision of law, the Secretary shall use data collected under a 
permit issued by the Secretary under section 411(a) with respect to an 
organism, among other relevant data, for purposes of the review of a 
petition submitted under subsection (a) with respect to such 
organism.''.
  (b) Authority of Review for and Environmental Analysis Applicable to 
Permits.--Section 411 of the Plant Protection Act (7 U.S.C. 7711) is 
amended--
          (1) by redesignating subsections (c), (d), and (e) as 
        subsections (e), (f), and (g), respectively; and
          (2) by inserting after subsection (b), the following new 
        subsections:
  ``(c) Limitation on Analyses and Procedures for Permits.--
Notwithstanding any other provision of law, the analyses or procedures 
required under the regulations issued by the Secretary under the 
Federal Plant Pest Act and continued in effect in accordance with 
section 438(c) shall be the only analyses or procedures required or 
authorized by law with respect to reviewing and taking action on an 
application for a permit submitted under subsection (a).
  ``(d) Environmental Analysis Applicable to Certain Permits.--
Notwithstanding any other provision of law, in reviewing an application 
for a permit submitted under subsection (a) that is not excluded from 
environmental review under regulations issued by the Secretary in 
effect on the date of the enactment of this subsection (or any 
successor regulations), the Secretary shall conduct an environmental 
analysis described in section 411A(b)(1)(B). Such analysis shall be the 
only environmental analysis or procedure required or authorized by law 
with respect to reviewing and taking action on such an application.''.
  (c) Transitional Provisions.--
          (1) Completeness.--
                  (A) Completeness of petitions.--Notwithstanding any 
                other provision of law, including section 411A of the 
                Plant Protection Act (as added by subsection (a)), if 
                the Secretary of Agriculture determined that a petition 
                submitted before the date of the enactment of this 
                section under section 340.6 of title 7, Code of Federal 
                Regulations, for a determination that an organism is 
                not a plant pest was complete before such date, the 
                Secretary shall consider such petition to be complete 
                and maintain the status such petition had in the 
                process for the review of such petition on such date 
                under section 340.6 of title 7, Code of Federal 
                Regulations.
                  (B) Completeness of applications for permits.--
                Notwithstanding any other provision of law, including 
                subsection (c) of section 411 of the Plant Protection 
                Act (7 U.S.C. 7711) (as amended by subsection (b)), if 
                the Secretary of Agriculture determined that an 
                application for a permit submitted under subsection (a) 
                of such section (7 U.S.C. 7711) before the date of the 
                enactment of this section was complete before such 
                date, the Secretary shall consider such application to 
                be complete and maintain the status such application 
                had in the process for the review of such application 
                on such date under subsection (a) of such section.
          (2) Use of environmental analysis.--
                  (A) Use of environmental analysis for petitions.--
                Notwithstanding any other provision of law, the 
                Secretary of Agriculture shall use any environmental 
                analysis conducted for purposes of a petition submitted 
                under section 340.6 of title 7, Code of Federal 
                Regulations, before the date of the enactment of this 
                section with respect to an organism to the greatest 
                extent possible to complete the environmental analysis 
                conducted under section 411A of the Plant Protection 
                Act (as added by subsection (a)) for purposes of a 
                petition submitted under subsection (a) of such section 
                with respect to such organism.
                  (B) Use of environmental analysis for applications 
                for permits.--Notwithstanding any other provision of 
                law, the Secretary of Agriculture shall use any 
                environmental analysis conducted for purposes of an 
                application for a permit submitted under subsection (a) 
                of section 411 of the Plant Protection Act (7 U.S.C. 
                7711) before the date of the enactment of this section 
                with respect to such organism to the greatest extent 
                possible to complete the environmental analysis 
                conducted under subsection (d) of such section (as 
                amended by subsection (b)) with respect to such 
                organism.
          (3) Special consideration for review of certain petitions.--
                  (A) Pending petitions without a completed plant pest 
                risk assessment.--Notwithstanding section 411A(b)(3) of 
                the Plant Protection Act (as added by subsection (a)), 
                the Secretary of Agriculture shall determine the length 
                of the period for the review of petitions submitted 
                under section 340.6 of title 7, Code of Federal 
                Regulations, before the date of the enactment of this 
                section for which a plant pest risk assessment has not 
                been completed on or before such date of enactment.
                  (B) Pending petitions with a completed plant pest 
                risk assessment.--
                          (i) Deeming of certain petitions.--
                        Notwithstanding any other provision of law, 
                        with respect to each covered petition, if the 
                        Secretary finds that there is no reason to 
                        believe that the organism that is the subject 
                        of such covered petition is a plant pest and 
                        the Secretary does not grant or deny such 
                        covered petition not later than 90 days after 
                        the date of the enactment of this section, such 
                        organism shall be deemed not to be a plant pest 
                        for purposes of the Plant Protection Act (7 
                        U.S.C. 7701 et seq.).
                          (ii) Covered petition defined.--In this 
                        subparagraph, the term ``covered petition'' 
                        means a petition submitted before the date of 
                        the enactment of this section under section 
                        340.6 of title 7, Code of Federal Regulations, 
                        for a determination that an organism is not a 
                        plant pest for which a plant pest risk 
                        assessment and an environmental assessment have 
                        been published and a notice and comment period 
                        on each assessment has been completed as of 
                        such date of enactment.
          (4) Regulations.--Not later than 180 days after the date of 
        the enactment of this section, the Secretary of Agriculture 
        shall issue such regulations as the Secretary considers 
        necessary to carry out the amendments made by this section.

SEC. 10013. CONSOLIDATION OF PLANT PEST AND DISEASE MANAGEMENT AND 
                    DISASTER PREVENTION PROGRAMS.

  (a) Relocation of Legislative Language Relating to National Clean 
Plant Network.--Section 420 of the Plant Protection Act (7 U.S.C. 7721) 
is amended--
          (1) by redesignating subsection (e) as subsection (f); and
          (2) by inserting after subsection (d) the following new 
        subsection:
  ``(e) National Clean Plant Network.--
          ``(1) In general.--The Secretary shall establish a program to 
        be known as the `National Clean Plant Network' (referred to in 
        this subsection as the `Program').
          ``(2) Requirements.--Under the Program, the Secretary shall 
        establish a network of clean plant centers for diagnostic and 
        pathogen elimination services--
                  ``(A) to produce clean propagative plant material; 
                and
                  ``(B) to maintain blocks of pathogen-tested plant 
                material in sites located throughout the United States.
          ``(3) Availability of clean plant source material.--Clean 
        plant source material produced or maintained under the Program 
        may be made available to--
                  ``(A) a State for a certified plant program of the 
                State; and
                  ``(B) private nurseries and producers.
          ``(4) Consultation and collaboration.--In carrying out the 
        Program, the Secretary shall--
                  ``(A) consult with--
                          ``(i) State departments of agriculture; and
                          ``(ii) land-grant colleges and universities 
                        and NLGCA Institutions (as those terms are 
                        defined in section 1404 of the National 
                        Agricultural Research, Extension, and Teaching 
                        Policy Act of 1977 (7 U.S.C. 3103)); and
                  ``(B) to the extent practicable and with input from 
                the appropriate State officials and industry 
                representatives, use existing Federal or State 
                facilities to serve as clean plant centers.''.
  (b) Funding.--Subsection (f) of section 420 of the Plant Protection 
Act (7 U.S.C. 7721) (as so redesignated) is amended--
          (1) in paragraph (3), by striking ``and'' at the end;
          (2) in paragraph (4), by striking ``and each fiscal year 
        thereafter.'' and inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(5) $71,500,000 for fiscal year 2013 and each fiscal year 
        thereafter.''.
  (c) Repeal of Existing Provision.--Section 10202 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is repealed.
  (d) Clarification of Use of Funds for Technical Assistance.--Section 
420 of the Plant Protection Act (7 U.S.C. 7721) (as amended by 
subsection (a)) is amended by adding at the end the following new 
subsection:
  ``(g) Relationship to Other Law.--The use of Commodity Credit 
Corporation funds under this section to provide technical assistance 
shall not be considered an allotment or fund transfer from the 
Commodity Credit Corporation for purposes of the limit on expenditures 
for technical assistance imposed by section 11 of the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714i).''.

SEC. 10014. AUTHORITY FOR REGULATION OF PLANTS.

  (a) Regulation of Plants Under Plant Protection Act.--Subject to 
subsection (b), any living stage of a plant, including any nucleic acid 
or other genetic material as contained in such plant, shall be 
exclusively subject to regulation under statutes under which the 
Secretary of Agriculture is authorized to issue regulations with 
respect to plants, including the Plant Protection Act (7 U.S.C. 7701 et 
seq.).
  (b) Regulation of Certain Pesticidal Substances Under Federal 
Insecticide, Fungicide, and Rodenticide Act.--A pesticidal substance 
contained in a plant shall be subject to regulation as a plant-
incorporated protectant (as defined in section 174.3 of title 40, Code 
of Federal Regulations, or any successor regulation) under the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
  (c) Requirements for Regulation of Certain Pesticidal Substances 
Under Federal Insecticide, Fungicide, and Rodenticide Act.--The 
regulations issued by the Administrator of the Environmental Protection 
Agency with respect to plant-incorporated protectants under the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.), 
including section 3(c)(1)(C) of such Act (7 U.S.C. 136a(c)(1)(C)), 
section 3(c)(2)(A) of such Act (7 U.S.C. 136a(c)(2)(A)), section 7 of 
such Act (7 U.S.C. 136e), section 8 of such Act (7 U.S.C. 136f), 
section 9 of such Act (7 U.S.C. 136g), and section 17 of such Act (7 
U.S.C. 136o), shall--
          (1) be based on sound science;
          (2) use the least burdensome requirements; and
          (3) provide for exemptions from the requirements otherwise 
        applicable to pesticides that are not plant-incorporated 
        protectants.
  (d) Definitions.--In this section:
          (1) Plant.--The term ``plant'' has the meaning given such 
        term in section 403 of the Plant Protection Act (7 U.S.C. 
        7702).
          (2) Pesticidal substance.--The term ``pesticidal substance'' 
        means a substance or a mixture of substances that--
                  (A) is contained in any living stage of a plant 
                that--
                          (i) as of the date of the enactment of this 
                        subsection, is subject to part 340 of title 7, 
                        Code of Federal Regulations; or
                          (ii) has been determined not to be a plant 
                        pest under section 411A(b)(2) or deemed not to 
                        be a plant pest under section 411A(b)(4); and
                  (B) is intended for preventing, destroying, 
                repelling, or mitigating any pest.

SEC. 10015. REPORT TO CONGRESS ON REGULATION OF BIOTECHNOLOGY.

  Not later than one year after the date of the enactment of this 
section, the Secretary, in consultation with the Secretary of Health 
and Human Services and the Administrator of the Environmental 
Protection Agency, shall submit to Congress a report on the measures 
taken and proposed to be taken by the Secretaries and the Administrator 
to provide for balanced and appropriate regulatory oversight of 
agricultural biotechnology products, by--
          (1) reducing regulatory burdens on research conducted by 
        academic institutions, small businesses, and public entities in 
        developing lower-cost plant and animal sources of food, feed, 
        fuel, and fiber developed through biotechnology, with special 
        emphasis on minor use crops, orphan crops, and sources of 
        protein;
          (2) identifying categories of products developed through 
        biotechnology for which a history of safe use has been 
        established and providing with respect to such products reduced 
        data requirements, expedited review periods, exemptions from 
        regulation, and other measures, as appropriate, based on sound 
        science; and
          (3) developing and implementing a cohesive national policy 
        for the low-level presence of agronomic biotechnology material 
        in crops, including grain and other commodity crops, for food, 
        feed, and processing.

SEC. 10016. PESTICIDE REGISTRATION IMPROVEMENT.

  (a) Maintenance Fees.--
          (1) Fees.--Section 4(i) of the Federal Insecticide, 
        Fungicide, and Rodenticide Act (7 U.S.C. 136a-1(i)) is 
        amended--
                  (A) in paragraph (5)--
                          (i) in subparagraph (C), by striking 
                        ``aggregate amount of'' and all that follows 
                        through the end of the subparagraph and 
                        inserting ``aggregate amount of $27,800,000 for 
                        each of fiscal years 2013 through 2017.'';
                          (ii) in subparagraph (D)--
                                  (I) in clause (i), by striking 
                                ``shall be'' and all that follows 
                                through the semicolon and inserting 
                                ``shall be $115,500 for each of fiscal 
                                years 2013 through 2017;''; and
                                  (II) in clause (ii), by striking 
                                ``shall be'' and all that follows 
                                through the period and inserting 
                                ``shall be $184,800 for each of fiscal 
                                years 2013 through 2017.'';
                          (iii) in subparagraph (E)(i)--
                                  (I) in subclause (I), by striking 
                                ``shall be'' and all that follows 
                                through the semicolon and inserting 
                                ``shall be $70,600 for each of fiscal 
                                years 2013 through 2017;''; and
                                  (II) in subclause (II), by striking 
                                ``shall be'' and all that follows 
                                through the period and inserting 
                                ``shall be $122,100 for each of fiscal 
                                years 2013 through 2017.'';
                          (iv) by redesignating subparagraphs (F), (G), 
                        and (H) as subparagraphs (G), (H), and (I), 
                        respectively;
                          (v) by inserting after subparagraph (E), the 
                        following new subparagraph:
                  ``(F) Fee reduction for certain small businesses.--
                          ``(i) Waiver.--Except as provided in clause 
                        (ii), the Administrator shall waive 25 percent 
                        of the fee under this paragraph applicable to 
                        the first registration of any qualified small 
                        business entity under this paragraph.
                          ``(ii) Limitation.--The Administrator shall 
                        not grant a waiver under clause (i) to a 
                        qualified small business entity if the 
                        Administrator determines that the entity has 
                        been formed or manipulated primarily for the 
                        purpose of qualifying for the waiver.
                          ``(iii) Definition.--For purposes of this 
                        subparagraph, the term `qualified small 
                        business entity' means a corporation, 
                        partnership, or unincorporated business that--
                                  ``(I) has 500 or fewer employees;
                                  ``(II) during the 3-year period prior 
                                to the most recent maintenance fee 
                                billing cycle, had an average annual 
                                global gross revenue from all sources 
                                that did not exceed $10,000,000; and
                                  ``(III) holds not more than 5 
                                pesticide registrations under this 
                                paragraph.'';
                          (vi) in subparagraph (G) (as redesignated by 
                        clause (iv)), by striking ``paragraph (3)'' and 
                        inserting ``this paragraph''; and
                          (vii) in subparagraph (I) (as so 
                        redesignated), by striking ``2012'' and 
                        inserting ``2017'';
                  (B) in paragraph (6)--
                          (i) by striking ``2014'' and inserting 
                        ``2019''; and
                          (ii) by striking ``paragraphs (1) through 
                        (5)'' and inserting ``paragraph (5)'';
                  (C) by striking paragraphs (1), (2), (3), (4), and 
                (7); and
                  (D) by redesignating paragraphs (5) and (6) as 
                paragraphs (1) and (2), respectively.
          (2) Extension of prohibition on tolerance fees.--Section 
        408(m)(3) of the Federal Food, Drug, and Cosmetic Act (21 
        U.S.C. 346a(m)(3)) is amended by striking ``September 30, 
        2012'' and inserting ``September 30, 2017''.
          (3) Reregistration and expedited processing fund.--
                  (A) Source and use.--Section 4(k)(2)(A) of the 
                Federal Insecticide, Fungicide, and Rodenticide Act (7 
                U.S.C. 136a-1(k)(2)(A)) is amended--
                          (i) by inserting ``, to enhance the 
                        information systems capabilities to improve the 
                        tracking of pesticide registration decisions,'' 
                        after ``paragraph (3)'' each place it appears; 
                        and
                          (ii) in clause (i)--
                                  (I) by inserting ``offset'' before 
                                ``the costs of reregistration''; and
                                  (II) by striking ``in the same 
                                portion as appropriated funds''.
                  (B) Expedited processing of similar applications.--
                Section 4(k)(3)(A) of the Federal Insecticide, 
                Fungicide, and Rodenticide Act (7 U.S.C. 136a-
                1(k)(3)(A)) is amended--
                          (i) in the matter preceding clause (i), by 
                        striking ``2008 through 2012, between 1/8 and 
                        1/7'' and inserting ``2013 through 2017, 
                        between 1/9 and 1/8''; and
                          (ii) in clause (i), by striking ``new''.
                  (C) Enhancements of information technology systems 
                for improvement in review of pesticide applications.--
                Section 4(k) of the Federal Insecticide, Fungicide, and 
                Rodenticide Act (7 U.S.C. 136a-1(k)) is amended--
                          (i) by redesignating paragraphs (4) and (5) 
                        as paragraphs (5) and (6), respectively;
                          (ii) by inserting after paragraph (3) the 
                        following new paragraph:
          ``(4) Enhancements of information technology systems for 
        improvement in review of pesticide applications.--
                  ``(A) In general.--For each of fiscal years 2013 
                through 2017, the Administrator shall use not more than 
                $800,000 of the amounts made available to the 
                Administrator in the Reregistration and Expedited 
                Processing Fund for the activities described in 
                subparagraph (B).
                  ``(B) Activities.--The Administrator shall use 
                amounts made available from such Fund to improve the 
                information systems capabilities for the Office of 
                Pesticide Programs to enhance tracking of pesticide 
                registration decisions, which shall include--
                          ``(i) the electronic tracking of--
                                  ``(I) registration submissions; and
                                  ``(II) the status of conditional 
                                registrations;
                          ``(ii) enhancing the database for information 
                        regarding endangered species assessments for 
                        registration review;
                          ``(iii) implementing the capability to 
                        electronically review labels submitted with 
                        registration actions; and
                          ``(iv) acquiring and implementing the 
                        capability to electronically assess and 
                        evaluate confidential statements of formula 
                        submitted with registration actions.''; and
                          (iii) in the first sentence of paragraph (6) 
                        (as redesignated by clause (i)), by striking 
                        ``to carry out the goals established under 
                        subsection (l)'' and inserting ``for the 
                        purposes described in paragraphs (2), (3), and 
                        (4) and to carry out the goals established 
                        under subsection (l)''.
  (b) Pesticide Registration Service Fees.--
          (1) Amount of fees.--Section 33(b) of the Federal 
        Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-
        8(b)) is amended--
                  (A) in paragraph (3)--
                          (i) in subparagraph (A), by striking 
                        ``Pesticide Registration Improvement Renewal 
                        Act'' and inserting ``Federal Agriculture 
                        Reform and Risk Management Act of 2012''; and
                          (ii) in subparagraph (B), by striking 
                        ``S10409'' and all that follows through the 
                        period and inserting ``S___ through S___, dated 
                        ___.'';
                  (B) in paragraph (6)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``October 1, 2008'' 
                                and inserting ``October 1, 2013''; and
                                  (II) by striking ``September 30, 
                                2010'' and inserting ``September 30, 
                                2015''; and
                          (ii) in subparagraph (B)--
                                  (I) by striking ``October 1, 2010'' 
                                and inserting ``October 1, 2015''; and
                                  (II) by striking ``September 30, 
                                2010'' and inserting ``September 30, 
                                2015''; and
                  (C) in paragraph (8)(C)(ii)--
                          (i) in subclause (I), by striking ``or'' at 
                        the end;
                          (ii) in subclause (II), by striking the 
                        period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following new 
                        subclause:
                                  ``(III) on the basis that the 
                                Administrator rejected the application 
                                under subsection (f)(4)(B).''.
          (2) Pesticide registration fund.--Section 33(c)(3)(B) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136w-8(c)(3)(B)) is amended--
                  (A) in clause (i), by striking ``2008 through 2012'' 
                and inserting ``2013 through 2017'';
                  (B) in clause (ii), by striking ``grants'' and all 
                that follows through the end of clause (ii) and 
                inserting ``grants, for each of fiscal years 2013 
                through 2017, $500,000.''; and
                  (C) in clause (iii), by striking ``2008 through 
                2012'' and inserting ``2013 through 2017''.
          (3) Assessment of fees.--Section 33(d) of the Federal 
        Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-
        8(d)) is amended--
                  (A) in paragraph (2), by striking ``2002'' each place 
                it appears and inserting ``2012'';
                  (B) by striking paragraph (4); and
                  (C) by redesignating paragraph (5) as paragraph (4).
          (4) Reforms to reduce decision time review periods.--Section 
        33(e) of the Federal Insecticide, Fungicide, and Rodenticide 
        Act (7 U.S.C. 136w-8(e)) is amended by striking ``Pesticide 
        Registration Improvement Act of 2003'' and inserting ``Federal 
        Agriculture Reform and Risk Management Act of 2012''.
          (5) Decision time review periods.--Section 33(f) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136w-8(f)) is amended--
                  (A) in paragraph (1), by striking ``Pesticide 
                Registration Improvement Renewal Act'' and inserting 
                ``Federal Agriculture Reform and Risk Management Act of 
                2012'';
                  (B) in paragraph (2), by striking ``S10409'' and all 
                that follows through the period and inserting ``S__ 
                through S___, dated ___.''; and
                  (C) in paragraph (4)--
                          (i) in subparagraph (A), by inserting ``and 
                        fee'' before the period; and
                          (ii) in subparagraph (B)--
                                  (I) in the heading, by striking 
                                ``Completeness of application'' and 
                                inserting ``Initial content and 
                                preliminary technical screenings'';
                                  (II) in clause (i)--
                                          (aa) by striking ``Not 
                                        later'' and inserting the 
                                        following:
                                  ``(I) Not later''.
                                          (bb) by adding at the end the 
                                        following new subclause:
                                  ``(II) After conducting the initial 
                                content screening described in 
                                subclause (I) and in accordance with 
                                clause (iv), the Administrator shall 
                                conduct a preliminary technical 
                                screening--
                                          ``(aa) not later than 45 days 
                                        after the date on which the 
                                        decision time review period 
                                        begins (for applications with 
                                        decision time review periods of 
                                        not more than 180 days); and
                                          ``(bb) not later than 90 days 
                                        after the date on which the 
                                        decision time review period 
                                        begins (for applications with 
                                        decision time review periods 
                                        greater than 180 days).'';
                                  (III) in clause (ii) by striking 
                                ``under clause (i)'' and all that 
                                follows through the period and 
                                inserting ``at any time before the 
                                Administrator completes the preliminary 
                                technical screening under clause 
                                (i)(II) that the application failed the 
                                initial content or preliminary 
                                technical screening and the applicant 
                                does not correct such failure before 
                                the date that is 10 business days after 
                                the applicant receives a notification 
                                of the failure, the Administrator shall 
                                reject the application. The 
                                Administrator shall make every effort 
                                to provide a written notification of 
                                such rejection during the 10-day period 
                                that begins on the date the 
                                Administrator completes the preliminary 
                                technical screening.'';
                                  (IV) in clause (iii)--
                                          (aa) in the heading, by 
                                        inserting ``initial content'' 
                                        before ``screening'' ;
                                          (bb) in the matter preceding 
                                        subclause (I), by inserting 
                                        ``content'' after ``initial''; 
                                        and
                                          (cc) in subclause (II), by 
                                        striking ``contains'' and 
                                        inserting ``appears to 
                                        contain''; and
                                  (V) by adding at the end the 
                                following new clause:
                          ``(iv) Requirements of preliminary technical 
                        screening.--In conducting a preliminary 
                        technical screening of an application, the 
                        Administrator shall determine if--
                                  ``(I) the application and the data 
                                and information submitted with such 
                                application are accurate and complete; 
                                and
                                  ``(II) the application, data, and 
                                information are consistent with the 
                                proposed labeling and any proposal for 
                                a tolerance or exemption from the 
                                requirement for a tolerance under 
                                section 408 of the Federal Food, Drug, 
                                and Cosmetic Act, and are such that, 
                                subject to full review under the 
                                standards of this Act, could result in 
                                the granting of the application.''.
          (6) Reports.--Section 33(k) of the Federal Insecticide, 
        Fungicide, and Rodenticide Act (7 U.S.C. 136w-8(k)) is 
        amended--
                  (A) in paragraph (1), by striking ``March 1, 2014'' 
                and inserting ``March 1, 2017''; and
                  (B) in paragraph (2)--
                          (i) in subparagraph (A)--
                                  (I) in clause (vi), by striking 
                                ``and'' at the end;
                                  (II) in clause (vii), by inserting 
                                ``and'' at the end; and
                                  (III) by adding at the end the 
                                following new clause:
                          ``(viii) the number of extensions of decision 
                        time review periods agreed to under subsection 
                        (f)(5) along with a description of the reason 
                        that the Administrator was unable to make a 
                        decision within the initial decision time 
                        review period;'';
                          (ii) in subparagraph (E), by striking ``and'' 
                        at the end;
                          (iii) in subparagraph (F), by striking the 
                        period and inserting a semicolon; and
                          (iv) by adding at the end the following new 
                        subparagraphs:
                  ``(G) a review of the progress made toward--
                          ``(i) carrying out section 4(k)(4) and the 
                        amounts from the Reregistration and Expedited 
                        Processing Fund used for the purposes described 
                        in such section;
                          ``(ii) implementing systems for the 
                        electronic tracking of registration submissions 
                        by December 31, 2013;
                          ``(iii) implementing a system for tracking 
                        the status of conditional registrations, 
                        including making non-confidential information 
                        related to such conditional registrations 
                        publicly available by December 31, 2013;
                          ``(iv) implementing enhancements to the 
                        endangered species knowledge database, 
                        including making non-confidential information 
                        related to such database publicly available;
                          ``(v) implementing the capability to 
                        electronically submit and review labels 
                        submitted with registration actions;
                          ``(vi) acquiring and implementing the 
                        capability to electronically assess and 
                        evaluate confidential statements of formula 
                        submitted with registration actions by December 
                        31, 2014; and
                          ``(vii) facilitating public participation in 
                        certain registration actions and the 
                        registration review process by providing 
                        electronic notification to interested parties 
                        of additions to the public docket;
                  ``(H) the number of applications rejected by the 
                Administrator under the initial content and preliminary 
                technical screening conducted under subsection (f)(4);
                  ``(I) a review of the progress made in updating the 
                Pesticide Incident Data System, including progress 
                toward making the information contained in such System 
                available to the public (as the Administrator 
                determines is appropriate); and
                  ``(J) an assessment of the public availability of 
                summary pesticide usage data.''.
          (7) Termination of effectiveness.--Section 33(m) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136w-8(m)) is amended--
                  (A) in paragraph (1), by striking ``2012'' and 
                inserting ``2017''; and
                  (B) in paragraph (2)--
                          (i) in subparagraph (A)--
                                  (I) in the heading, by striking 
                                ``2013'' and inserting ``2018'';
                                  (II) by striking ``2013,'' and 
                                inserting ``2018,''; and
                                  (III) by striking ``September 30, 
                                2012'' and inserting ``September 30, 
                                2017'';
                          (ii) in subparagraph (B)--
                                  (I) in the heading by striking 
                                ``2014'' and inserting ``2019'';
                                  (II) by striking ``2014,'' and 
                                inserting ``2019,''; and
                                  (III) by striking ``September 30, 
                                2012'' and inserting ``September 30, 
                                2017'';
                          (iii) in subparagraph (C)--
                                  (I) in the heading by striking 
                                ``2014'' and inserting ``2019''; and
                                  (II) by striking ``September 30, 
                                2014'' and inserting ``September 30, 
                                2019''; and
                          (iv) in subparagraph (D), by striking 
                        ``2012'' each place it appears and inserting 
                        ``2017''.

SEC. 10017. MODIFICATION, CANCELLATION, OR SUSPENSION ON BASIS OF A 
                    BIOLOGICAL OPINION.

  (a) In General.--Except in the case of a voluntary request from a 
pesticide registrant to amend a registration under section 3 of the 
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a), a 
registration of a pesticide may be modified, canceled, or suspended on 
the basis of the implementation of a Biological Opinion issued by the 
National Marine Fisheries Service or the United States Fish and 
Wildlife Service prior to the date of completion of the study referred 
to in subsection (b), or January 1, 2014, whichever is earlier, only 
if--
          (1) the modification, cancellation, or suspension is 
        undertaken pursuant to section 6 of such Act (7 U.S.C. 136d); 
        and
          (2) the Biological Opinion complies with the recommendations 
        contained in the study referred to in subsection (b).
  (b) National Academy of Sciences Study.--The study commissioned by 
the Administrator of the Environmental Protection Agency on March 10, 
2011, shall include, at a minimum, each of the following:
          (1) A formal, independent, and external peer review, 
        consistent with Office of Management and Budget policies, of 
        each Biological Opinion described in subsection (a).
          (2) Assessment of economic impacts of measures or 
        alternatives recommended in each such Biological Opinion.
          (3) An examination of the specific scientific and procedural 
        questions and issues pertaining to economic feasibility 
        contained in the June 23, 2011 letter sent to the Administrator 
        (and other Federal officials) by the Chairmen of the Committee 
        on Agriculture, the Committee on Natural Resources, and the 
        Subcommittee on Interior, Environment, and Related Agencies of 
        the Committee on Appropriations, of the House of 
        Representatives.

SEC. 10018. USE AND DISCHARGES OF AUTHORIZED PESTICIDES.

  (a) Short Title.--This section may be cited as the ``Reducing 
Regulatory Burdens Act of 2012''.
  (b) Use of Authorized Pesticides.--Section 3(f) of the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a(f)) is 
amended by adding at the end the following:
          ``(5) Use of authorized pesticides.--Except as provided in 
        section 402(s) of the Federal Water Pollution Control Act, the 
        Administrator or a State may not require a permit under such 
        Act for a discharge from a point source into navigable waters 
        of a pesticide authorized for sale, distribution, or use under 
        this Act, or the residue of such a pesticide, resulting from 
        the application of such pesticide.''.
  (c) Discharges of Pesticides.--Section 402 of the Federal Water 
Pollution Control Act (33 U.S.C. 1342) is amended by adding at the end 
the following:
  ``(s) Discharges of Pesticides.--
          ``(1) No permit requirement.--Except as provided in paragraph 
        (2), a permit shall not be required by the Administrator or a 
        State under this Act for a discharge from a point source into 
        navigable waters of a pesticide authorized for sale, 
        distribution, or use under the Federal Insecticide, Fungicide, 
        and Rodenticide Act, or the residue of such a pesticide, 
        resulting from the application of such pesticide.
          ``(2) Exceptions.--Paragraph (1) shall not apply to the 
        following discharges of a pesticide or pesticide residue:
                  ``(A) A discharge resulting from the application of a 
                pesticide in violation of a provision of the Federal 
                Insecticide, Fungicide, and Rodenticide Act that is 
                relevant to protecting water quality, if--
                          ``(i) the discharge would not have occurred 
                        but for the violation; or
                          ``(ii) the amount of pesticide or pesticide 
                        residue in the discharge is greater than would 
                        have occurred without the violation.
                  ``(B) Stormwater discharges subject to regulation 
                under subsection (p).
                  ``(C) The following discharges subject to regulation 
                under this section:
                          ``(i) Manufacturing or industrial effluent.
                          ``(ii) Treatment works effluent.
                          ``(iii) Discharges incidental to the normal 
                        operation of a vessel, including a discharge 
                        resulting from ballasting operations or vessel 
                        biofouling prevention.''.

SEC. 10019. INCLUSION OF BED BUGS IN DEFINITION OF VECTOR ORGANISMS.

  (a) Definition.--Section 2(oo) of the Federal Insecticide, Fungicide, 
and Rodenticide Act (7 U.S.C. 136(oo)) is amended by inserting ``bed 
bugs,'' after ``cockroaches,''.
  (b) Efficacy Data for Exempted Pesticides.--Section 25(b) of the 
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w(b)) 
is amended by adding at the end the following new sentences: 
``Notwithstanding the exemption of a pesticide under this subsection, 
the Administrator shall require the submission of efficacy data (and 
evaluate such data) if the pesticide is labeled for or proposed to be 
labeled for the control of a pest of public health significance. The 
Administrator shall not permit the sale or distribution of any product 
that is marketed, distributed, or sold with a claim that such product 
will control a public health pest if the efficacy data submitted under 
this subsection does not support such claim.''.

SEC. 10020. EFFECTIVE DATE.

  (a) In General.--Except as provided in subsection (b), this title and 
the amendments made by this title take effect on October 1, 2012.
  (b) Exceptions.--The following provisions of this title shall take 
effect on the date of the enactment of this Act:
          (1) Section 10008.
          (2) Section 10009.
          (3) Section 10010.

                        TITLE XI--CROP INSURANCE

SEC. 11001. INFORMATION SHARING.

  Section 502(c) of the Federal Crop Insurance Act (7 U.S.C. 1502(c)) 
is amended by adding at the end the following new paragraph:
          ``(4) Information.--
                  ``(A) Request.--Subject to subparagraph (B), the Farm 
                Service Agency shall, in a timely manner, provide to an 
                agent or an approved insurance provider authorized by 
                the producer any information (including Farm Service 
                Agency Form 578s (or any successor form) or maps (or 
                any corrections to those forms or maps) that may assist 
                the agent or approved insurance provider in insuring 
                the producer under a policy or plan of insurance under 
                this subtitle.
                  ``(B) Privacy.--Except as provided in subparagraph 
                (C), an agent or approved insurance provider that 
                receives the information of a producer pursuant to 
                subparagraph (A) shall treat the information in 
                accordance with paragraph (1).
                  ``(C) Sharing.--Nothing in this section prohibits the 
                sharing of the information of a producer pursuant to 
                subparagraph (A) between the agent and the approved 
                insurance provider of the producer.''.

SEC. 11002. PUBLICATION OF INFORMATION ON VIOLATIONS OF PROHIBITION ON 
                    PREMIUM ADJUSTMENTS.

  Section 508(a)(9) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(9)) is amended by adding at the end the following new 
subparagraph:
                  ``(C) Publication of violations.--
                          ``(i) Publication required.--Subject to 
                        clause (ii), the Corporation shall publish in a 
                        timely manner on the website of the Risk 
                        Management Agency information regarding each 
                        violation of this paragraph, including any 
                        sanctions imposed in response to the violation, 
                        in sufficient detail so that the information 
                        may serve as effective guidance to approved 
                        insurance providers, agents, and producers.
                          ``(ii) Protection of privacy.--In providing 
                        information under clause (i) regarding 
                        violations of this paragraph, the Corporation 
                        shall redact the identity of the persons and 
                        entities committing the violations in order to 
                        protect their privacy.''.

SEC. 11003. SUPPLEMENTAL COVERAGE OPTION.

  (a) Availability of Supplemental Coverage Option.--Paragraph (3) of 
section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is 
amended to read as follows:
          ``(3) Yield and loss basis options.--A producer shall have 
        the option of purchasing additional coverage based on--
                  ``(A)(i) an individual yield and loss basis; or
                  ``(ii) an area yield and loss basis;
                  ``(B) an individual yield and loss basis, 
                supplemented with coverage based on an area yield and 
                loss basis to cover a part of the deductible under the 
                individual yield and loss policy, as described in 
                paragraph (4)(C); or
                  ``(C) a margin basis alone or in combination with the 
                coverages available in subparagraph (A) or (B).''.
  (b) Level of Coverage.--Paragraph (4) of section 508(c) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended to read as 
follows:
          ``(4) Level of coverage.--
                  ``(A) Dollar denomination and percentage of yield.--
                Except as provided in subparagraph (C), the level of 
                coverage--
                          ``(i) shall be dollar denominated; and
                          ``(ii) may be purchased at any level not to 
                        exceed 85 percent of the individual yield or 95 
                        percent of the area yield (as determined by the 
                        Corporation).
                  ``(B) Information.--The Corporation shall provide 
                producers with information on catastrophic risk and 
                additional coverage in terms of dollar coverage (within 
                the allowable limits of coverage provided in this 
                paragraph).
                  ``(C) Supplemental coverage option.--
                          ``(i) In general.--Notwithstanding 
                        subparagraph (A), in the case of the 
                        supplemental coverage option described in 
                        paragraph (3)(B), the Corporation shall offer 
                        producers the opportunity to purchase coverage 
                        in combination with a policy or plan of 
                        insurance offered under this subtitle that 
                        would allow indemnities to be paid to a 
                        producer equal to a part of the deductible 
                        under the policy or plan of insurance--
                                  ``(I) at a county-wide level to the 
                                fullest extent practicable; or
                                  ``(II) in counties that lack 
                                sufficient data, on the basis of such 
                                larger geographical area as the 
                                Corporation determines to provide 
                                sufficient data for purposes of 
                                providing the coverage.
                          ``(ii) Trigger.--Coverage offered under 
                        paragraph (3)(B) and clause (i) shall be 
                        triggered only if the losses in the area exceed 
                        10 percent of normal levels (as determined by 
                        the Corporation).
                          ``(iii) Coverage.--Subject to the trigger 
                        described in clause (ii), coverage offered 
                        under paragraph (3)(B) and clause (i) shall not 
                        exceed the difference between--
                                  ``(I) 90 percent; and
                                  ``(II) the coverage level selected by 
                                the producer for the underlying policy 
                                or plan of insurance.
                          ``(iv) Ineligible crops and acres.--Crops for 
                        which the producer has elected under section 
                        1107(c)(1) of the Federal Agriculture Reform 
                        and Risk Management Act of 2012 to receive 
                        revenue loss coverage and acres that are 
                        enrolled in the stacked income protection plan 
                        under section 508B shall not be eligible for 
                        supplemental coverage under this subparagraph.
                          ``(v) Calculation of premium.--
                        Notwithstanding subsection (d), the premium for 
                        coverage offered under paragraph (3)(B) and 
                        clause (i) shall--
                                  ``(I) be sufficient to cover 
                                anticipated losses and a reasonable 
                                reserve; and
                                  ``(II) include an amount for 
                                operating and administrative expenses 
                                established in accordance with 
                                subsection (k)(4)(F).''.
  (c) Payment of Portion of Premium by Corporation.--Section 508(e)(2) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended by 
adding at the end the following new subparagraph:
                  ``(H) In the case of the supplemental coverage option 
                authorized in subsection (c)(4)(C), the amount shall be 
                equal to the sum of--
                          ``(i) 70 percent of the additional premium 
                        associated with the coverage; and
                          ``(ii) the amount determined under subsection 
                        (c)(4)(C)(vi)(II), subject to subsection 
                        (k)(4)(F), for the coverage to cover operating 
                        and administrative expenses.''.
  (d) Effective Date.--The Federal Crop Insurance Corporation shall 
begin to provide additional coverage based on an individual yield and 
loss basis, supplemented with coverage based on an area yield and loss 
basis, not later than for the 2013 crop year.

SEC. 11004. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION.

  Subparagraph (A) of section 508(d)(2) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(d)(2)) is amended to read as follows:
                  ``(A) In the case of catastrophic risk protection, 
                the amount of the premium established by the 
                Corporation for each crop for which catastrophic risk 
                protection is available shall be reduced by the 
                percentage equal to the difference between the average 
                loss ratio for the crop and 100 percent, plus a 
                reasonable reserve.''.

SEC. 11005. REPEAL OF PERFORMANCE-BASED DISCOUNT.

  (a) Repeal.--Section 508(d) of the Federal Crop Insurance Act (7 
U.S.C. 1508(d)) is amended--
          (1) by striking paragraph (3); and
          (2) by redesignating paragraph (4) as paragraph (3).
  (b) Conforming Amendment.--Section 508(a)(9)(B) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(a)(9)(B)) is amended--
          (1) by inserting ``or'' at the end of clause (i);
          (2) by striking clause (ii); and
          (3) by redesignating clause (iii) as clause (ii).

SEC. 11006. PERMANENT ENTERPRISE UNIT SUBSIDY.

  Subparagraph (A) of section 508(e)(5) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(e)(5)) is amended to read as follows:
                  ``(A) In general.--The Corporation may pay a portion 
                of the premiums for plans or policies of insurance for 
                which the insurable unit is defined on a whole farm or 
                enterprise unit basis that is higher than would 
                otherwise be paid in accordance with paragraph (2).''.

SEC. 11007. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED CROPS.

  Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)(5)) is amended by adding at the end the following new 
subparagraph:
                  ``(D) Nonirrigated crops.--Beginning with the 2013 
                crop year, the Corporation shall make available 
                separate enterprise units for irrigated and 
                nonirrigated acreage of crops in counties.''.

SEC. 11008. DATA COLLECTION.

  Section 508(g)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(g)(2)) is amended by adding at the end the following new 
subparagraph:
                  ``(E) Sources of yield data.--To determine yields 
                under this paragraph, the Corporation--
                          ``(i) shall use county data collected by the 
                        Risk Management Agency or the National 
                        Agricultural Statistics Service, or both; or
                          ``(ii) if sufficient county data is not 
                        available, may use other data considered 
                        appropriate by the Secretary.''.

SEC. 11009. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH 
                    INSURABLE YIELDS.

  Section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 
1508(g)(4)(B)) is amended by striking ``60'' each place it appears and 
inserting ``70''.

SEC. 11010. SUBMISSION AND REVIEW OF POLICIES.

  Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) 
is amended--
          (1) in paragraph (1)--
                  (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and indenting 
                appropriately;
                  (B) by striking ``(1) In general.--In addition'' and 
                inserting the following:
          ``(1) Authority to submit.--
                  ``(A) In general.--In addition''; and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(B) Review and submission by corporation.--The 
                Corporation shall review any policy developed under 
                section 522(c) or any pilot program developed under 
                section 523 and submit the policy or program to the 
                Board under this subsection if the Corporation, at the 
                sole discretion of the Corporation, finds that the 
                policy or program--
                          ``(i) will likely result in a viable and 
                        marketable policy consistent with this 
                        subsection;
                          ``(ii) would provide crop insurance coverage 
                        in a significantly improved form; and
                          ``(iii) adequately protects the interests of 
                        producers.''; and
          (2) in paragraph (3)--
                  (A) by striking ``A policy'' and inserting the 
                following:
                  ``(A) In general.--A policy''; and
                  (B) by adding at the end the following new 
                subparagraph:
                  ``(B) Specified review and approval priorities.--In 
                reviewing policies and other materials submitted to the 
                Board under this subsection for approval, the Board--
                          ``(i) shall make the development and approval 
                        of a revenue policy for peanut producers a 
                        priority so that a revenue policy is available 
                        to peanut producers in time for the 2013 crop 
                        year;
                          ``(ii) shall make the development and 
                        approval of a downed rice policy and margin 
                        coverage policy for rice producers a priority 
                        so that each policy is available to rice 
                        producers in time for the 2013 crop year; and
                          ``(iii) may approve a submission that is made 
                        pursuant to this subsection that would, 
                        beginning with the 2013 crop year, allow 
                        producers that purchase policies in accordance 
                        with subsection (e)(5)(A) to separate 
                        enterprise units by risk rating for acreage of 
                        crops in counties.''.

SEC. 11011. EQUITABLE RELIEF FOR SPECIALTY CROP POLICIES.

  Section 508(k)(8)(E) of the Federal Crop Insurance Act of 1938 (7 
U.S.C. 1508(k)(8)(E)) is amended by adding at the end the following new 
clause:
                          ``(iii) Equitable relief for specialty crop 
                        policies.--
                                  ``(I) In general.--For each of the 
                                2011 through 2015 reinsurance years, in 
                                addition to the total amount of funding 
                                for reimbursement of administrative and 
                                operating costs that is otherwise 
                                required to be made available in each 
                                such reinsurance year pursuant to an 
                                agreement entered into by the 
                                Corporation, the Corporation shall use 
                                $41,000,000 to provide additional 
                                reimbursement with respect to eligible 
                                insurance contracts for any 
                                agricultural commodity that is not 
                                eligible for a benefit under subtitles 
                                A, B or C of title I of the Federal 
                                Agriculture Reform and Risk Management 
                                Act of 2012.
                                  ``(II) Treatment.--Additional 
                                reimbursements made under this clause 
                                shall be included as part of the base 
                                level of administrative and operating 
                                expense reimbursement to which any 
                                limit on compensation to persons 
                                involved in the direct sale and service 
                                of any eligible crop insurance contract 
                                required under an agreement entered 
                                into by the Corporation is applied.
                                  ``(III) Rule of construction.--
                                Nothing in this clause shall be 
                                construed as statutory assent to the 
                                limit described in subclause (II).''.

SEC. 11012. BUDGET LIMITATIONS ON RENEGOTIATION OF THE STANDARD 
                    REINSURANCE AGREEMENT.

  Section 508(k)(8) of the Federal Crop Insurance Act of 1938 (7 U.S.C. 
1508(k)(8)) is amended by adding at the end the following new 
subparagraph:
                  ``(F) Budget.--
                          ``(i) In general.--The Board shall ensure 
                        that any Standard Reinsurance Agreement 
                        negotiated under subparagraph (A)(ii), as 
                        compared to the previous Standard Reinsurance 
                        Agreement--
                                  ``(I) to the maximum extent 
                                practicable, shall be budget neutral; 
                                and
                                  ``(II) in no event, may significantly 
                                depart from budget neutrality.
                          ``(ii) Use of savings.--To the extent that 
                        any budget savings is realized in the 
                        renegotiation of a Standard Reinsurance 
                        Agreement under subparagraph (A)(ii), and the 
                        savings are determined not to be a significant 
                        departure from budget neutrality under clause 
                        (i), the savings shall be used to increase the 
                        obligations of the Corporation under 
                        subsections (e)(2) or (k)(4) or section 523.''.

SEC. 11013. CROP PRODUCTION ON NATIVE SOD.

  (a) Federal Crop Insurance.--Section 508(o) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(o)) is amended--
          (1) in paragraph (1)(B), by inserting ``, or the producer 
        cannot substantiate that the ground has ever been tilled,'' 
        after ``tilled'';
          (2) in paragraph (2)--
                  (A) in the paragraph heading, by striking 
                ``Ineligibility for'' and inserting ``Reduction in''; 
                and
                  (B) in subparagraph (A), by striking ``for benefits 
                under--'' and all that follows through the period at 
                the end and inserting ``for--
                          ``(i) a portion of crop insurance premium 
                        subsidies under this subtitle in accordance 
                        with paragraph (3);
                          ``(ii) benefits under section 196 of the 
                        Federal Agriculture Improvement and Reform Act 
                        of 1996 (7 U.S.C. 7333); and
                          ``(iii) payments described in subsection (b) 
                        or (c) of section 1001 of the Food Security Act 
                        of 1985 (7 U.S.C. 1308).''; and
          (3) by striking paragraph (3) and inserting the following new 
        paragraphs:
          ``(3) Administration.--
                  ``(A) In general.--During the first 4 crop years of 
                planting on native sod acreage by a producer described 
                in paragraph (2)--
                          ``(i) paragraph (2) shall apply to 65 percent 
                        of the transitional yield of the producer; and
                          ``(ii) the crop insurance premium subsidy 
                        provided for the producer under this subtitle 
                        shall be 50 percentage points less than the 
                        premium subsidy that would otherwise apply.
                  ``(B) Yield substitution.--During the period native 
                sod acreage is covered by this subsection, a producer 
                may not substitute yields for the native sod acreage.
          ``(4) Application.--This subsection shall only apply to 
        native sod in the Prairie Pothole National Priority Area.''.
  (b) Noninsured Crop Disaster Assistance.--Section 196(a)(4) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333(a)(4)) is amended--
          (1) in the paragraph heading, by striking ``ineligibility'' 
        and inserting ``benefit reduction'';
          (2) in subparagraph (A)(ii), by inserting ``, or the producer 
        cannot substantiate that the ground has ever been tilled,'' 
        after ``tilled'';
          (3) in subparagraph (B)--
                  (A) in the subparagraph heading, by striking 
                ``Ineligibility'' and inserting ``Reduction in''; and
                  (B) in clause (i), by striking ``for benefits under--
                '' and all that follows through the period at the end 
                and inserting ``for--
                                  ``(I) benefits under this section;
                                  ``(II) a portion of crop insurance 
                                premium subsidies under the Federal 
                                Crop Insurance Act (7 U.S.C. 1501 et 
                                seq.) in accordance with subparagraph 
                                (C); and
                                  ``(III) payments described in 
                                subsection (b) or (c) of section 1001 
                                of the Food Security Act of 1985 (7 
                                U.S.C. 1308).''; and
          (4) by striking subparagraph (C) and inserting the following 
        new subparagraphs:
                  ``(C) Administration.--
                          ``(i) In general.--During the first 4 crop 
                        years of planting on native sod acreage by a 
                        producer described in subparagraph (B)--
                                  ``(I) subparagraph (B) shall apply to 
                                65 percent of the transitional yield of 
                                the producer; and
                                  ``(II) the crop insurance premium 
                                subsidy provided for the producer under 
                                the Federal Crop Insurance Act (7 
                                U.S.C. 1501 et seq.) shall be 50 
                                percentage points less than the premium 
                                subsidy that would otherwise apply.
                          ``(ii) Yield substitution.--During the period 
                        native sod acreage is covered by this 
                        paragraph, a producer may not substitute yields 
                        for the native sod acreage.
                  ``(D) Application.--This paragraph shall only apply 
                to native sod in the Prairie Pothole National Priority 
                Area.''.
  (c) Cropland Report.--
          (1) Baseline.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Agriculture shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that describes the cropland 
        acreage in each applicable county and State, and the change in 
        cropland acreage from the preceding year in each applicable 
        county and State, beginning with calendar year 2000 and 
        including that information for the most recent year for which 
        that information is available.
          (2) Annual updates.--Not later than January 1, 2014, and each 
        January 1 thereafter through January 1, 2017, 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 describes--
                  (A) the cropland acreage in each applicable county 
                and State as of the date of submission of the report; 
                and
                  (B) the change in cropland acreage from the preceding 
                year in each applicable county and State.

SEC. 11014. COVERAGE LEVELS BY PRACTICE.

  Section 508 of the Federal Crop Insurance Act of 1938 (7 U.S.C. 1508) 
is amended by adding at the end the following new subsection:
  ``(p) Coverage Levels by Practice.--Beginning with the 2014 crop 
year, a producer that produces an agricultural commodity on both dry 
land and irrigated land may elect a different coverage level for each 
production practice.''.

SEC. 11015. BEGINNING FARMER AND RANCHER PROVISIONS.

  (a) Definition.--Section 502(b) of the Federal Crop Insurance Act (7 
U.S.C. 1502(b)) is amended--
          (1) by redesignating paragraphs (3) through (9) as paragraphs 
        (4) through (10), respectively; and
          (2) by inserting after paragraph (2) the following:
          ``(3) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' means a farmer or rancher who has not 
        actively operated and managed a farm or ranch with a bona fide 
        insurable interest in a crop or livestock as an owner-operator, 
        landlord, tenant, or sharecropper for more than 5 crop years, 
        as determined by the Secretary.''.
  (b) Premium Adjustments.--Section 508 of the Federal Crop Insurance 
Act (7 U.S.C. 1508) is amended--
          (1) in subsection (b)(5)(E), by inserting ``and beginning 
        farmers or ranchers'' after ``limited resource farmers'';
          (2) in subsection (e), by adding at the end the following new 
        paragraph:
          ``(8) Premium for beginning farmers or ranchers.--
        Notwithstanding any other provision of this subsection 
        regarding payment of a portion of premiums, a beginning farmer 
        or rancher shall receive premium assistance that is 10 
        percentage points greater than premium assistance that would 
        otherwise be available under paragraphs (2) (except for 
        subparagraph (A) of that paragraph), (5), (6), and (7) for the 
        applicable policy, plan of insurance, and coverage level 
        selected by the beginning farmer or rancher.''; and
          (3) in subsection (g)--
                  (A) in paragraph (2)(B)--
                          (i) in clause (i), by striking ``or'' at the 
                        end;
                          (ii) in clause (ii)(III), by striking the 
                        period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following:
                          ``(iii) if the producer is a beginning farmer 
                        or rancher who was previously involved in a 
                        farming or ranching operation, including 
                        involvement in the decisionmaking or physical 
                        involvement in the production of the crop or 
                        livestock on the farm, for any acreage obtained 
                        by the beginning farmer or rancher, a yield 
                        that is the higher of--
                                  ``(I) the actual production history 
                                of the previous producer of the crop or 
                                livestock on the acreage determined 
                                under subparagraph (A); or
                                  ``(II) a yield of the producer, as 
                                determined in clause (i).''; and
                  (B) in paragraph (4)(B)(ii) (as amended by section 
                11009)--
                          (i) by inserting ``(I)'' after ``(ii)'';
                          (ii) by striking the period at the end and 
                        inserting ``; or''; and
                          (iii) by adding at the end the following:
                                          ``(II) in the case of 
                                        beginning farmers or ranchers, 
                                        replace each excluded yield 
                                        with a yield equal to 80 
                                        percent of the applicable 
                                        transitional yield.''.

SEC. 11016. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND 
                    COTTON.

  (a) Availability of Stacked Income Protection Plan for Producers of 
Upland Cotton.--The Federal Crop Insurance Act is amended by inserting 
after section 508A (7 U.S.C. 1508a) the following new section:

``SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND 
                    COTTON.

  ``(a) Availability.--Beginning not later than the 2013 crop of upland 
cotton, the Corporation shall make available to producers of upland 
cotton an additional policy (to be known as the `Stacked Income 
Protection Plan'), which shall provide coverage consistent with the 
Group Risk Income Protection Plan (and the associated Harvest Revenue 
Option Endorsement) offered by the Corporation for the 2011 crop year.
  ``(b) Required Terms.--The Corporation may modify the Stacked Income 
Protection Plan on a program-wide basis, except that the Stacked Income 
Protection Plan shall comply with the following requirements:
          ``(1) Provide coverage for revenue loss of not less than 10 
        percent and not more than 30 percent of expected county 
        revenue, specified in increments of 5 percent. The deductible 
        is the minimum percent of revenue loss at which indemnities are 
        triggered under the plan, not to be less than 10 percent of the 
        expected county revenue.
          ``(2) Be offered to producers of upland cotton in all 
        counties with upland cotton production--
                  ``(A) at a county-wide level to the fullest extent 
                practicable; or
                  ``(B) in counties that lack sufficient data, on the 
                basis of such larger geographical area as the 
                Corporation determines to provide sufficient data for 
                purposes of providing the coverage.
          ``(3) Be purchased in addition to any other individual or 
        area coverage in effect on the producer's acreage or as a 
        stand-alone policy, except that if a producer has an individual 
        or area coverage for the same acreage, the maximum coverage 
        available under the Stacked Income Protection Plan shall not 
        exceed the deductible for the individual or area coverage.
          ``(4) Establish coverage based on--
                  ``(A) an expected price that is the higher of--
                          ``(i) the expected price established under 
                        existing Group Risk Income Protection or area 
                        wide policy offered by the Corporation for the 
                        applicable county (or area) and crop year; or
                          ``(ii) $0.6861 per pound; and
                  ``(B) an expected county yield that is the higher 
                of--
                          ``(i) the expected county yield established 
                        for the existing area-wide plans offered by the 
                        Corporation for the applicable county (or area) 
                        and crop year (or, in geographic areas where 
                        area-wide plans are not offered, an expected 
                        yield determined in a manner consistent with 
                        those of area-wide plans); or
                          ``(ii) the average of the applicable yield 
                        data for the county (or area) for the most 
                        recent 5 years, excluding the highest and 
                        lowest observations, from the Risk Management 
                        Agency or the National Agricultural Statistics 
                        Service (or both) or, if sufficient county data 
                        is not available, such other data considered 
                        appropriate by the Secretary.
          ``(5) Use a multiplier factor to establish maximum protection 
        per acre (referred to as a `protection factor') of not less 
        than the higher of the level established on a program wide 
        basis or 120 percent.
          ``(6) Pay an indemnity based on the amount that the expected 
        county revenue exceeds the actual county revenue, as applied to 
        the individual coverage of the producer. Indemnities under the 
        Stacked Income Protection Plan shall not include or overlap the 
        amount of the deductible selected under paragraph (1).
          ``(7) In all counties for which data are available, establish 
        separate coverage levels for irrigated and non-irrigated 
        practices.
  ``(c) Reinsurance.--When the $0.6861 reference price is equal to or 
greater than the expected price established under the existing Group 
Risk Income Protection or area wide policy offered by the Corporation 
for the applicable county (or area) and crop year or the yield 
established under subsection (b)(4)(B) is used to establish the 
expected county yield, the Corporation shall reinsure at 100 percent 
that portion of the indemnity that is attributable to the difference 
between--
          ``(1) the $0.6861 reference price and the expected price 
        established under the existing Group Risk Income Protection or 
        area wide policy offered by the Corporation for the applicable 
        county (or area) and crop year; and
          ``(2) the yield established under subsection (b)(4)(B).
  ``(d) Premium.--Notwithstanding section 508(d), the premium for the 
Stacked Income Protection Plan shall--
          ``(1) be sufficient to cover anticipated losses and a 
        reasonable reserve; and
          ``(2) include an amount for operating and administrative 
        expenses established in accordance with section 508(k)(4)(F).
  ``(e) Payment of Portion by Corporation.--Subject to section 
508(e)(4), the amount of premium paid by the Corporation for all 
qualifying coverage levels of the Stacked Income Protection Plan shall 
be--
          ``(1) 80 percent of the amount of the premium established 
        under subsection (d) for the coverage level selected; and
          ``(2) the amount determined under subsection (d)(2), subject 
        to section 508(k)(4)(F), for the coverage to cover 
        administrative and operating expenses.
  ``(f) Relation to Other Coverages.--The Stacked Income Protection 
Plan is in addition to all other coverages available to producers of 
upland cotton.''.
  (b) Conforming Amendment.--Section 508(k)(4)(F) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting ``or 
authorized under subsection (c)(4)(C) or section 508B'' after ``of this 
subparagraph''.

SEC. 11017. PEANUT REVENUE CROP INSURANCE.

  The Federal Crop Insurance Act is amended by inserting after section 
508B, as added by the previous section, the following new section:

``SEC. 508C. PEANUT REVENUE CROP INSURANCE.

  ``(a) In General.--Effective beginning with the 2013 crop year, the 
Risk Management Agency and the Corporation shall make available to 
producers of peanuts a revenue crop insurance program for peanuts.
  ``(b) Effective Price.--Subject to subsection (c), for purposes of 
the revenue crop insurance program and the multiperil crop insurance 
program under this Act, the effective price for peanuts shall be equal 
to the Rotterdam price index for peanuts, as adjusted to reflect the 
farmer stock price of peanuts in the United States.
  ``(c) Adjustments.--
          ``(1) In general.--The effective price for peanuts 
        established under subsection (b) may be adjusted by the Risk 
        Management Agency and the Corporation to correct distortions.
          ``(2) Administration.--If an adjustment is made under 
        paragraph (1), the Risk Management Agency and the Corporation 
        shall--
                  ``(A) make the adjustment in an open and transparent 
                manner; and
                  ``(B) 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 reasons for the 
                adjustment.''.

SEC. 11018. AUTHORITY TO CORRECT ERRORS.

  Section 515(c) of the Federal Crop Insurance Act (7 U.S.C. 1515(c)) 
is amended--
          (1) in the first sentence, by striking ``The Secretary'' and 
        inserting the following:
          ``(1) In general.--The Secretary'';
          (2) in the second sentence, by striking ``Beginning with'' 
        and inserting the following:
          ``(2) Frequency.--Beginning with''; and
          (3) by adding at the end the following new paragraph:
          ``(3) Corrections.--
                  ``(A) In general.--In addition to the corrections 
                permitted by the Corporation as of the date of 
                enactment of the Federal Agriculture Reform and Risk 
                Management Act of 2012, the Corporation shall allow an 
                agent or an approved insurance provider, subject to 
                subparagraph (B)--
                          ``(i) within a reasonable amount of time 
                        following the applicable sales closing date, to 
                        correct unintentional errors in information 
                        that is provided by a producer for the purpose 
                        of obtaining coverage under any policy or plan 
                        of insurance made available under this subtitle 
                        to ensure that the eligibility information is 
                        correct;
                          ``(ii) within a reasonable amount of time 
                        following--
                                  ``(I) the acreage reporting date, to 
                                correct unintentional errors in factual 
                                information that is provided by a 
                                producer after the sales closing date 
                                to reconcile the information with the 
                                information reported by the producer to 
                                the Farm Service Agency; or
                                  ``(II) the date of any subsequent 
                                correction of data by the Farm Service 
                                Agency made as a result of the 
                                verification of information; and
                          ``(iii) at any time, to correct unintentional 
                        errors that were made by the Farm Service 
                        Agency or an agent or approved insurance 
                        provider in transmitting the information 
                        provided by the producer to the approved 
                        insurance provider or the Corporation.
                  ``(B) Limitation.--In accordance with the procedures 
                of the Corporation, correction to the information 
                described in clauses (i) and (ii) of subparagraph (A) 
                may only be made if the corrections do not allow the 
                producer--
                          ``(i) to avoid ineligibility requirements for 
                        insurance;
                          ``(ii) to obtain, enhance, or increase an 
                        insurance guarantee or indemnity, or avoid 
                        premium owed, if a cause of loss exists or has 
                        occurred before any correction has been made; 
                        or
                          ``(iii) to avoid an obligation or requirement 
                        under any Federal or State law.
                  ``(C) Exception to late filing sanctions.--Any 
                corrections made pursuant to this paragraph shall not 
                be subject to any late filing sanctions authorized in 
                the reinsurance agreement with the Corporation.''.

SEC. 11019. IMPLEMENTATION.

  Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is 
amended--
          (1) in subsection (j), by striking paragraph (1) and 
        inserting the following new paragraph:
          ``(1) Systems maintenance and upgrades.--
                  ``(A) In general.--The Secretary shall maintain and 
                upgrade the information management systems of the 
                Corporation used in the administration and enforcement 
                of this subtitle.
                  ``(B) Requirement.--
                          ``(i) In general.--In maintaining and 
                        upgrading the systems, the Secretary shall 
                        ensure that new hardware and software are 
                        compatible with the hardware and software used 
                        by other agencies of the Department to maximize 
                        data sharing and promote the purposes of this 
                        section.
                          ``(ii) Acreage report streamlining initiative 
                        project.--As soon as practicable, the Secretary 
                        shall develop and implement an acreage report 
                        streamlining initiative project to allow 
                        producers to report acreage and other 
                        information directly to the Department.''; and
          (2) in subsection (k), by striking paragraph (1) and 
        inserting the following new paragraph:
          ``(1) Information technology.--
                  ``(A) In general.--For purposes of subsection (j)(1), 
                the Corporation may use, from amounts made available 
                from the insurance fund established under section 
                516(c), not more than--
                          ``(i)(I) for fiscal year 2013, $25,000,000; 
                        and
                          ``(II) for each of fiscal years 2014 through 
                        2017, $10,000,000; or
                          ``(ii) if the Acreage Crop Reporting 
                        Streamlining Initiative (ACRSI) project is 
                        substantially completed by September 30, 2014, 
                        not more than $15,000,000 for each of the 
                        fiscal years 2014 through 2017.
                  ``(B) Notification.--The Secretary shall notify the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate of the 
                substantial completion of the Acreage Crop Reporting 
                Streamlining Initiative (ACRSI) project not later than 
                July 1, 2014.''.

SEC. 11020. RESEARCH AND DEVELOPMENT PRIORITIES.

  Section 522(c)(6) of the Federal Crop Insurance Act (7 U.S.C. 
1522(c)(6)) is amended by striking ``a pasture, range, and forage 
program'' and inserting ``policies that increase participation by 
producers of underserved agricultural commodities, including sweet 
sorghum, biomass sorghum, rice, peanuts, and sugarcane''.

SEC. 11021. ADDITIONAL RESEARCH AND DEVELOPMENT CONTRACTING 
                    REQUIREMENTS.

  Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) 
is amended--
          (1) in paragraph (10)--
                  (A) in subparagraph (A), by striking ``the Food, 
                Conservation, and Energy Act of 2008'' and inserting 
                ``the Federal Agriculture Reform and Risk Management 
                Act of 2012'';
                  (B) in subparagraph (B)(iii), by striking ``2009'' 
                and inserting ``2013''; and
                  (C) in subparagraph (C)--
                          (i) in clause (ii), by striking ``2010'' and 
                        inserting ``2013''; and
                          (ii) in clause (iii), by striking ``Food, 
                        Conservation, and Energy Act of 2008'' and 
                        inserting ``the Federal Agriculture Reform and 
                        Risk Management Act of 2012'';
          (2) by redesignating paragraph (17) as paragraph (24); and
          (3) by inserting after paragraph (16), the following new 
        paragraphs:
          ``(17) Margin coverage for catfish.--
                  ``(A) In general.--The Corporation shall offer to 
                enter into a contract with a qualified entity to 
                conduct research and development regarding a policy to 
                insure producers against reduction in the margin 
                between the market value of catfish and selected costs 
                incurred in the production of catfish.
                  ``(B) Eligibility.--Eligibility for the policy 
                described in subparagraph (A) shall be limited to 
                freshwater species of catfish that are propagated and 
                reared in controlled or selected environments.
                  ``(C) Implementation.--The Board shall review the 
                policy described in subparagraph (B) under subsection 
                508(h) and approve the policy if the Board finds that 
                the policy--
                          ``(i) will likely result in a viable and 
                        marketable policy consistent with this 
                        subsection;
                          ``(ii) would provide crop insurance coverage 
                        in a significantly improved form;
                          ``(iii) adequately protects the interests of 
                        producers; and
                          ``(iv) the proposed policy meets other 
                        requirements of this subtitle determined 
                        appropriate by the Board.
          ``(18) Biomass and sweet sorghum energy crop insurance 
        policies.--
                  ``(A) Authority.--The Corporation shall offer to 
                enter into 1 or more contracts with qualified entities 
                to carry out research and development regarding--
                          ``(i) a policy to insure biomass sorghum that 
                        is grown expressly for the purpose of producing 
                        a feedstock for renewable biofuel, renewable 
                        electricity, or biobased products; and
                          ``(ii) a policy to insure sweet sorghum that 
                        is grown for a purpose described in clause (i).
                  ``(B) Research and development.--Research and 
                development with respect to each of the policies 
                required in subparagraph (A) shall evaluate the 
                effectiveness of risk management tools for the 
                production of biomass sorghum or sweet sorghum, 
                including policies and plans of insurance that--
                          ``(i) are based on market prices and yields;
                          ``(ii) to the extent that insufficient data 
                        exist to develop a policy based on market 
                        prices and yields, evaluate the policies and 
                        plans of insurance based on the use of weather 
                        indices, including excessive or inadequate 
                        rainfall, to protect the interest of crop 
                        producers; and
                          ``(iii) provide protection for production or 
                        revenue losses, or both.
          ``(19) Study on swine catastrophic disease program.--
                  ``(A) In general.--The Corporation shall contract 
                with a qualified person to conduct a study to determine 
                the feasibility of insuring swine producers for a 
                catastrophic event.
                  ``(B) Report.--Not later than 1 year after the date 
                of the enactment of this paragraph, the Corporation 
                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 subparagraph (A).
          ``(20) Whole farm diversified risk management insurance 
        plan.--
                  ``(A) In general.--The Corporation shall conduct 
                activities or enter into contracts to carry out 
                research and development to develop a whole farm risk 
                management insurance plan, with a liability limitation 
                of $1,000,000, that allows a diversified crop or 
                livestock producer the option to qualify for an 
                indemnity if actual gross farm revenue is below 85 
                percent of the average gross farm revenue or the 
                expected gross farm revenue that can reasonably be 
                expected of the producer, as determined by the 
                Corporation.
                  ``(B) Eligible producers.--The Corporation shall 
                permit producers (including direct-to-consumer 
                marketers and producers servicing local and regional 
                and farm identity-preserved markets) who produce 
                multiple agricultural commodities, including specialty 
                crops, industrial crops, livestock, and aquaculture 
                products, to participate in the plan in lieu of any 
                other plan under this subtitle.
                  ``(C) Diversification.--The Corporation may provide 
                diversification-based additional coverage payment 
                rates, premium discounts, or other enhanced benefits in 
                recognition of the risk management benefits of crop and 
                livestock diversification strategies for producers that 
                grow multiple crops or that may have income from the 
                production of livestock that uses a crop grown on the 
                farm.
                  ``(D) Market readiness.--The Corporation may include 
                coverage for the value of any packing, packaging, or 
                any other similar on-farm activity the Corporation 
                determines to be the minimum required in order to 
                remove the commodity from the field.
                  ``(E) Report.--Not later than 2 years after the date 
                of enactment of this paragraph, the Corporation 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 and feasibility of the research 
                and development conducted under this paragraph, 
                including an analysis of potential adverse market 
                distortions.
          ``(21) Study of food safety insurance.--
                  ``(A) In general.--The Corporation shall offer to 
                enter into a contract with 1 or more qualified entities 
                to conduct a study to determine whether offering 
                policies that provide coverage for specialty crops from 
                food safety and contamination issues would benefit 
                agricultural producers.
                  ``(B) Subject.--The study described in subparagraph 
                (A) shall evaluate policies and plans of insurance 
                coverage that provide protection for production or 
                revenue impacted by food safety concerns including, at 
                a minimum, government, retail, or national consumer 
                group announcements of a health advisory, removal, or 
                recall related to a contamination concern.
                  ``(C) Report.--Not later than 1 year after the date 
                of enactment of this paragraph, the Corporation 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 
                subparagraph (A).
          ``(22) Study on poultry catastrophic disease program.--
                  ``(A) In general.--The Corporation shall contract 
                with a qualified person to conduct a study to determine 
                the feasibility of insuring poultry producers for a 
                catastrophic event.
                  ``(B) Report.--Not later than 1 year after the date 
                of the enactment of this paragraph, the Corporation 
                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 subparagraph (A).
          ``(23) Poultry business interruption insurance policy.--
                  ``(A) Authority.--The Corporation shall offer to 
                enter into a contract or cooperative agreement with a 
                university or other legal entity to carry out research 
                and development regarding a policy to insure the 
                commercial production of poultry against business 
                interruptions caused by integrator bankruptcy.
                  ``(B) Research and development.--As part of the 
                research and development conducted pursuant to a 
                contract or cooperative agreement entered into under 
                subparagraph (A), the entity shall--
                          ``(i) evaluate the market place for business 
                        interruption insurance that is available to 
                        poultry growers;
                          ``(ii) determine what statutory authority 
                        would be necessary to implement a business 
                        interruption insurance through the Corporation;
                          ``(iii) assess the feasibility of a policy or 
                        plan of insurance offered under this subtitle 
                        to insure against losses due to the bankruptcy 
                        of an business integrator; and
                          ``(iv) analyze the costs to the Federal 
                        Government of a Federal business interruption 
                        insurance program for poultry growers.
                  ``(C) Definitions.--In this paragraph, the terms 
                `poultry' and `poultry grower' have the meanings given 
                those terms in section 2(a) of the Packers and 
                Stockyards Act, 1921 (7 U.S.C. 182(a)).
                  ``(D) Deadline for contract or cooperative 
                agreement.--Not later than six months after the date of 
                the enactment of this paragraph, the Corporation shall 
                enter into the contract or cooperative agreement 
                required by subparagraph (A).
                  ``(E) Deadline for completion of research and 
                development.--Not later than one year after the date of 
                the enactment of this paragraph, the Corporation 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 research and development 
                conducted pursuant to the contract or cooperative 
                agreement entered into under subparagraph (A).''.

SEC. 11022. PILOT PROGRAMS.

  Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)) 
is amended--
          (1) in paragraph (1), by inserting ``, at the sole discretion 
        of the Corporation,'' after ``may''; and
          (2) by striking paragraph (5).

SEC. 11023. LIMITATION ON EXPENDITURES FOR LIVESTOCK PILOT PROGRAMS.

  Section 523(b)(10) of the Federal Crop Insurance Act (7 U.S.C. 
1523(b)(10)) is amended--
          (1) in subparagraph (C), by striking ``fiscal year 2004 and 
        each subsequent fiscal year'' and inserting ``each of fiscal 
        years 2004 through 2012''; and
          (2) by adding at the end the following new subparagraph:
                  ``(D) $50,000,000 for fiscal year 2013 and each 
                subsequent fiscal year.''.

SEC. 11024. NONINSURED CROP ASSISTANCE PROGRAM.

  Section 196 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7333), as amended by section 11013(b)) is further 
amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (1) and inserting the 
                following new paragraph:
          ``(1) In general.--
                  ``(A) Coverages.--In the case of an eligible crop 
                described in paragraph (2), the Secretary of 
                Agriculture shall operate a noninsured crop disaster 
                assistance program to provide coverages based on 
                individual yields (other than for value-loss crops) 
                equivalent to--
                          ``(i) catastrophic risk protection available 
                        under section 508(b) of the Federal Crop 
                        Insurance Act (7 U.S.C. 1508(b)); or
                          ``(ii) additional coverage available under 
                        subsections (c) and (h) of section 508 of that 
                        Act (7 U.S.C. 1508) that does not exceed 65 
                        percent.
                  ``(B) Administration.--The Secretary shall carry out 
                this section through the Farm Service Agency (referred 
                to in this section as the `Agency').''; and
                  (B) in paragraph (2)(A)--
                          (i) in clause (i), by striking ``and'' after 
                        the semicolon at the end;
                          (ii) by redesignating clause (ii) as clause 
                        (iii); and
                          (iii) by inserting after clause (i) the 
                        following new clause:
                                  ``(ii) for which additional coverage 
                                under subsections (c) and (h) of 
                                section 508 of that Act (7 U.S.C. 1508) 
                                is not available; and'';
          (2) in subsection (d), by striking ``The Secretary'' and 
        inserting ``Subject to subsection (l), the Secretary''; and
          (3) by adding at the end the following new subsection:
  ``(l) Payment Equivalent to Additional Coverage.--
          ``(1) In general.--The Secretary shall make available to a 
        producer eligible for noninsured assistance under this section 
        a payment equivalent to an indemnity for additional coverage 
        under subsections (c) and (h) of section 508 of the Federal 
        Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65 
        percent of the established yield for the eligible crop on the 
        farm, computed by multiplying--
                  ``(A) the quantity that is not greater than 65 
                percent of the established yield for the crop, as 
                determined by the Secretary, specified in increments of 
                5 percent;
                  ``(B) 100 percent of the average market price for the 
                crop, as determined by the Secretary; and
                  ``(C) a payment rate for the type of crop, as 
                determined by the Secretary, that reflects--
                          ``(i) in the case of a crop that is produced 
                        with a significant and variable harvesting 
                        expense, the decreasing cost incurred in the 
                        production cycle for the crop that is, as 
                        applicable--
                                  ``(I) harvested;
                                  ``(II) planted but not harvested; or
                                  ``(III) prevented from being planted 
                                because of drought, flood, or other 
                                natural disaster, as determined by the 
                                Secretary; or
                          ``(ii) in the case of a crop that is produced 
                        without a significant and variable harvesting 
                        expense, such rate as shall be determined by 
                        the Secretary.
          ``(2) Premium.--To be eligible to receive a payment under 
        this subsection, a producer shall pay--
                  ``(A) the service fee required by subsection (k); and
                  ``(B) a premium for the applicable crop year that is 
                equal to the product obtained by multiplying--
                          ``(i) the number of acres devoted to the 
                        eligible crop;
                          ``(ii) the established yield for the eligible 
                        crop, as determined by the Secretary under 
                        subsection (e);
                          ``(iii) the coverage level elected by the 
                        producer;
                          ``(iv) the average market price, as 
                        determined by the Secretary; and
                          ``(v) .0525.
          ``(3) Limited resource, beginning, and socially disadvantaged 
        farmers.--The additional coverage made available under this 
        subsection shall be available to limited resource, beginning, 
        and socially disadvantaged producers, as determined by the 
        Secretary, in exchange for a premium that is 50 percent of the 
        premium determined for a producer under paragraph (2).
          ``(4) Premium payment and application deadline.--
                  ``(A) Premium payment.--A producer electing 
                additional coverage under this subsection shall pay the 
                premium amount owed for the additional coverage by 
                September 30 of the crop year for which the additional 
                coverage is purchased.
                  ``(B) Application deadline.--The latest date on which 
                additional coverage under this subsection may be 
                elected shall be the application closing date described 
                in subsection (b)(1).
          ``(5) Effective date.--Additional coverage under this 
        subsection shall be available beginning with the 2014 
        crop.''.workhome100now . com

SEC. 11025. TECHNICAL AMENDMENTS.

  (a) Eligibility for Department Programs.--Section 508(b) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
          (1) by striking paragraph (7); and
          (2) by redesignating paragraphs (8) through (11) as 
        paragraphs (7) through (10), respectively.
  (b) Exclusions to Assistance for Losses Due to Drought Conditions.--
          (1) In general.--Section 531(d)(3)(A) of the Federal Crop 
        Insurance Act (7 U.S.C. 1531(d)(3)(A)) is amended--
                  (A) by striking ``(A) Eligible losses.--'' and all 
                that follows through ``An eligible'' in clause (i) and 
                inserting the following:
                  ``(A) Eligible losses.--An eligible'';
                  (B) by striking clause (ii); and
                  (C) by redesignating subclauses (I) and (II) as 
                clauses (i) and (ii), respectively, and indenting 
                appropriately.
          (2) Conforming amendment.--Section 901(d)(3)(A) of the Trade 
        Act of 1974 (19 U.S.C. 2497(d)(3)(A)) is amended--
                  (A) by striking ``(A) Eligible losses.--'' and all 
                that follows through ``An eligible'' in clause (i) and 
                inserting the following:
                  ``(A) Eligible losses.--An eligible'';
                  (B) by striking clause (ii); and
                  (C) by redesignating subclauses (I) and (II) as 
                clauses (i) and (ii), respectively, and indenting 
                appropriately.

                        TITLE XII--MISCELLANEOUS

                         Subtitle A--Livestock

SEC. 12101. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

  Section 375(e)(6)(C) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008j(e)(6)(C)) is amended by striking ``2012'' and 
inserting ``2017''.

SEC. 12102. TRICHINAE CERTIFICATION PROGRAM.

  Section 10405(d)(1) of the Animal Health Protection Act (7 U.S.C. 
8304(d)(1)) is amended in subparagraphs (A) and (B) by striking 
``2012'' each place it appears and inserting ``2017''.

SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

  Section 11013(d) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8322(d)) is amended by striking ``2012'' and inserting ``2017''.

SEC. 12104. REPORT ON COMPLIANCE WITH WORLD TRADE ORGANIZATION DECISION 
                    REGARDING COUNTRY OF ORIGIN LABELING.

  Not later than 90 days after the date of enactment of this Act, the 
Secretary of Agriculture shall submit to the Committee on Agriculture, 
Nutrition, and Forestry of the Senate and the Committee on Agriculture 
of the House of representatives a report detailing the steps the 
Secretary will take so that the United States is in compliance with the 
decision of the World Trade Organization in United States - Certain 
Country of Origin Labeling (COOL) Requirements (DS384, DS386).

SEC. 12105. REPEAL OF CERTAIN REGULATIONS UNDER THE PACKERS AND 
                    STOCKYARDS ACT, 1921.

  (a) Repeal of Certain Regulation Requirement.--Section 11006 of the 
Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
Stat. 2120) is repealed.
  (b) Repeal of Certain Existing Regulations.--The following provisions 
of title 9, Code of Federal Regulations, are repealed:
          (1) Subsections (n) and (o) of section 201.2.
          (2) Subsection (a) of section 201.3.
          (3) Subsection (a) of section 201.215.
  (c) Prohibition on Enforcement of Certain Regulations or Issuance of 
Similar Regulations.--Notwithstanding any other provision of law, the 
Secretary of Agriculture shall not--
          (1) enforce the provisions of title 9, Code of Federal 
        Regulations, referred to in subsection (b);
          (2) finalize or implement section 201.2(l), 201.2(t), 
        201.2(u), 201.3(c), 201.210, 201.211, 201.213, and 201.214 of 
        title 9, Code of Federal Regulations, as proposed to be added 
        by the rule entitled ``Implementation of Regulations Required 
        Under Title XI of the Food, Conservation and Energy Act of 
        2008; Conduct in Violation of the Act'' (75 Fed. Reg. 35338 
        (June 22, 2010)); or
          (3) issue regulations or adopt a policy similar to the 
        provisions referred to in subsection (b) or in paragraph (2).

SEC. 12106. MEAT AND POULTRY PROCESSING REPORT.

  Not later than one year after the date of the enactment of this Act, 
the Secretary of Agriculture, in consultation with States, processors, 
and producers, shall submit to Congress a report describing--
          (1) additional steps that can be taken to better meet the 
        needs of small and very small meat and poultry producers and 
        processors that are subject to Federal or State inspection; and
          (2) methods to create an electronic submission option for the 
        approval of meat labels and to provide improved public access 
        to information on the label approval process.

   Subtitle B--Socially Disadvantaged Producers and Limited Resource 
                               Producers

SEC. 12201. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
                    AND RANCHERS AND VETERAN FARMERS AND RANCHERS.

  (a) Outreach and Assistance for Socially Disadvantaged Farmers and 
Ranchers and Veteran Farmers and Ranchers.--Section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is 
amended--
          (1) in the section heading, by inserting ``and veteran 
        farmers and ranchers'' after ``ranchers'';
          (2) in subsection (a)--
                  (A) in paragraph (1), by inserting ``and veteran 
                farmers or ranchers'' after ``ranchers'';
                  (B) in paragraph (2)(B)(i), by inserting ``and 
                veteran farmers or ranchers'' after ``ranchers''; and
                  (C) in paragraph (4)--
                          (i) in subparagraph (A)--
                                  (I) in clause (i), by striking 
                                ``and'' at the end;
                                  (II) in clause (ii), by striking the 
                                period at the end and inserting ``; 
                                and''; and
                                  (III) by adding at the end the 
                                following new clause:
                          ``(iii) $10,000,000 for each of fiscal years 
                        2013 through 2017.''; and
                          (ii) by adding at the end the following new 
                        subparagraph:
                  ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this section 
                $20,000,000 for each of fiscal years 2013 through 
                2017.'';
          (3) in subsection (b)(2), by inserting ``or veteran farmers 
        and ranchers'' after ``socially disadvantaged farmers and 
        ranchers'';
          (4) in subsection (c)--
                  (A) in paragraph (1)(A), by inserting ``veteran 
                farmers or ranchers and'' before ``members''; and
                  (B) in paragraph (2)(A), by inserting ``veteran 
                farmers or ranchers and'' before ``members''; and
          (5) in subsection (e)(5)(A)--
                  (A) in clause (i), by inserting ``and veteran farmers 
                or ranchers'' after ``ranchers''; and
                  (B) in clause (ii), by inserting ``and veteran 
                farmers or ranchers'' after ``ranchers''.
  (b) Definition of Veteran Farmer or Rancher.--Section 2501(e) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)) is amended by adding at the end the following new paragraph:
          ``(7) Veteran farmer or rancher.--The term `veteran farmer or 
        rancher' means a farmer or rancher who served in the active 
        military, naval, or air service, and who was discharged or 
        released from the service under conditions other than 
        dishonorable.''.

SEC. 12202. OFFICE OF ADVOCACY AND OUTREACH.

  Paragraph (3) of section 226B(f) of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6934(f)) is amended to read as 
follows:
          ``(3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection--
                  ``(A) such sums as are necessary for each of fiscal 
                years 2009 through 2012; and
                  ``(B) $2,000,000 for each of fiscal years 2013 
                through 2017.''.

               Subtitle C--Other Miscellaneous Provisions

SEC. 12301. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING 
                    OF AGRICULTURAL LABOR FORCE.

  Subsection (d) of section 14204 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 2008q-1) is amended to read as follows:
  ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
          ``(1) such sums as are necessary for each of fiscal years 
        2008 through 2012; and
          ``(2) $10,000,000 for each of fiscal years 2013 through 
        2017.''.

SEC. 12302. EVALUATION REQUIRED FOR PURPOSES OF PROHIBITION ON CLOSURE 
                    OR RELOCATION OF COUNTY OFFICES FOR THE FARM 
                    SERVICE AGENCY.

  (a) Prohibition on Closure or Relocation of Offices With High 
Workload Volume.--Section 14212 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 6932a) is amended by striking subsection (a) and 
inserting the following new subsection:
  ``(a) Prohibition on Closure or Relocation of Offices With High 
Workload Volume.--The Secretary of Agriculture may not close or 
relocate a county or field office of the Farm Service Agency in a State 
if the Secretary determines, after conducting the evaluation required 
under subsection (b)(1)(B), that the office has a high workload volume 
compared with other county offices in the State.''.
  (b) Workload Evaluation.--Section 14212(b)(1) of such Act (7 U.S.C. 
6932a(b)(1)) is amended--
          (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
        and (ii), respectively, and moving the margins of such clauses 
        two ems to the right;
          (2) by striking ``the Farm Service Agency, to the maximum 
        extent practicable'' and inserting ``the Farm Service Agency--
                  ``(A) to the maximum extent practicable'';
          (3) in clause (ii) (as redesignated by paragraph (1))--
                  (A) by inserting ``as of the date of the enactment of 
                this Act'' after ``employees''; and
                  (B) by striking the period at the end and inserting 
                ``; and''; and
          (4) by adding at the end the following new subparagraph:
                  ``(B) conduct and complete an evaluation of all 
                workload assessments for Farm Service Agency county 
                offices that were open and operational as of January 1, 
                2012, during the period that begins on a date that is 
                not later than 180 days after the date of the enactment 
                of the Federal Agriculture Reform and Risk Management 
                Act of 2012 and ends on the date that is 18 months 
                after such date of enactment.''.

SEC. 12303. PROHIBITION ON ATTENDING AN ANIMAL FIGHT OR CAUSING A MINOR 
                    TO ATTEND AN ANIMAL FIGHT.

  Section 26(a)(1) of the Animal Welfare Act (7 U.S.C. 2156(a)(1)) is 
amended by striking the period and inserting ``or to knowingly attend 
or knowingly cause a minor to attend an animal fighting venture.''.

SEC. 12304. PROGRAM BENEFIT ELIGIBILITY STATUS FOR PARTICIPANTS IN HIGH 
                    PLAINS WATER STUDY.

  Section 2901 of the Food, Conservation, and Energy Act of 2008 
(Public Law 110-246; 122 Stat. 1818) is amended by striking ``this Act 
or an amendment made by this Act'' and inserting ``this Act, an 
amendment made by this Act, the Federal Agriculture Reform and Risk 
Management Act of 2012, or an amendment made by the Federal Agriculture 
Reform and Risk Management Act of 2012''.

SEC. 12305. OFFICE OF TRIBAL RELATIONS.

  (a) In General.--Title III of the Department of Agriculture 
Reorganization Act of 1994 is amended by adding after section 308 (7 
U.S.C. 3125a note; Public Law 103-354) the following new section:

``SEC. 309. OFFICE OF TRIBAL RELATIONS.

  ``The Secretary shall establish in the Office of the Secretary an 
Office of Tribal Relations to advise the Secretary on policies related 
to Indian tribes.''.
  (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended by 
inserting after paragraph (8), as added by section 3207, the following 
new paragraph:
          ``(9) the authority of the Secretary to establish in the 
        Office of the Secretary the Office of Tribal Relations in 
        accordance with section 309; and''.

SEC. 12306. MILITARY VETERANS AGRICULTURAL LIAISON.

  (a) In General.--Subtitle A of the Department of Agriculture 
Reorganization Act of 1994 is amended by inserting after section 218 (7 
U.S.C. 6918) the following new section:

``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.

  ``(a) Authorization.--The Secretary shall establish in the Department 
the position of Military Veterans Agricultural Liaison.
  ``(b) Duties.--The Military Veterans Agricultural Liaison shall--
          ``(1) provide information to returning veterans about, and 
        connect returning veterans with, beginning farmer training and 
        agricultural vocational and rehabilitation programs appropriate 
        to the needs and interests of returning veterans, including 
        assisting veterans in using Federal veterans educational 
        benefits for purposes relating to beginning a farming or 
        ranching career;
          ``(2) provide information to veterans concerning the 
        availability of and eligibility requirements for participation 
        in agricultural programs, with particular emphasis on beginning 
        farmer and rancher programs;
          ``(3) serve as a resource for assisting veteran farmers and 
        ranchers, and potential farmers and ranchers, in applying for 
        participation in agricultural programs; and
          ``(4) advocate on behalf of veterans in interactions with 
        employees of the Department.''.
  (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended by 
inserting after paragraph (9), as added by section 12305, the following 
new paragraph:
          ``(10) the authority of the Secretary to establish in the 
        Department the position of Military Veterans Agricultural 
        Liaison in accordance with section 219.''.

SEC. 12307. ACER ACCESS AND DEVELOPMENT PROGRAM.

  (a) Grants Authorized.--The Secretary of Agriculture may make grants 
to States, tribal governments, and research institutions to support the 
efforts of such States, tribal governments, and research institutions 
to promote the domestic maple syrup industry through the following 
activities:
          (1) Promotion of research and education related to maple 
        syrup production.
          (2) Promotion of natural resource sustainability in the maple 
        syrup industry.
          (3) Market promotion for maple syrup and maple-sap products.
          (4) Encouragement of owners and operators of privately-held 
        land containing species of trees in the genus Acer--
                  (A) to initiate or expand maple-sugaring activities 
                on the land; or
                  (B) to voluntarily make the land available, including 
                by lease or other means, for access by the public for 
                maple-sugaring activities.
  (b) Application.--In submitting an application for a grant under this 
section, a State or tribal government shall include--
          (1) a description of the activities to be supported using the 
        grant funds;
          (2) a description of the benefits that the State or tribal 
        government intends to achieve as a result of engaging in such 
        activities; and
          (3) an estimate of the increase in maple-sugaring activities 
        or maple syrup production that the State or tribal government 
        anticipates will occur as a result of engaging in such 
        activities.
  (c) Rule of Construction.--Nothing in this section shall be construed 
so as to preempt a State or tribal government law, including a State or 
tribal government liability law.
  (d) Definition of Maple-sugaring.--In this section, the term ``maple-
sugaring'' means the collection of sap from any species of tree in the 
genus Acer for the purpose of boiling to produce food.
  (e) Regulations.--The Secretary of Agriculture shall promulgate such 
regulations as are necessary to carry out this section.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2013 through 2017.

SEC. 12308. PROHIBITION AGAINST INTERFERENCE BY STATE AND LOCAL 
                    GOVERNMENTS WITH PRODUCTION OR MANUFACTURE OF ITEMS 
                    IN OTHER STATES.

  (a) In General.--The government of a State or locality therein shall 
not impose a standard or condition on the production or manufacture of 
any agricultural product sold or offered for sale in interstate 
commerce if--
          (1) such production or manufacture occurs in another State; 
        and
          (2) the standard or condition is in addition to the standards 
        and conditions applicable to such production or manufacture 
        pursuant to--
                  (A) Federal law; and
                  (B) the laws of the State and locality in which such 
                production or manufacture occurs.
  (b) Agricultural Product Defined.--In this section, the term 
``agricultural product'' has the meaning given such term in section 207 
of the Agricultural Marketing Act of 1946 (7 U.S.C. 1626).

SEC. 12309. INCREASED PROTECTION FOR AGRICULTURAL INTERESTS IN THE 
                    MISSOURI RIVER BASIN.

  (a) Findings.--Congress finds the following:
          (1) Record runoff occurred in the Missouri River basin during 
        2011 as a result of historic rainfall over portions of the 
        upper basin coupled with heavy plains and mountain snowpack.
          (2) Runoff above Sioux City, Iowa, during the 5-month period 
        of March through July totaled an estimated 48,400,000 acre-feet 
        (referred to in this section as ``MAF''). This runoff volume 
        was more than 20 percent greater than the design storm for the 
        Missouri River Mainstem Reservoir System (referred to in this 
        section as ``System''), which was based on the 1881 runoff of 
        40.0 MAF during the same 5-month period.
          (3) During the 2011 runoff season, nearly 61,000,000 acre-
        feet of water entered the Missouri River system, far surpassing 
        the previous record of 49 MAF in runoff that was set during the 
        flood of 1997.
          (4) Given the incredible amount of water entering the 
        reservoir system, the summer months were spent working to 
        evacuate as much water from the reservoir system as possible, 
        ultimately leading to record high water releases from Gavins 
        Point Dam of 160,000 cubic feet per second, a rate that more 
        than doubled the previous release record of 70,000 cubic feet 
        per second set in 1997.
          (5) For nearly 4 months, these extremely high releases from 
        Gavins Point were maintained, resulting in severe and sustained 
        flooding, with much of western Iowa and eastern Nebraska as 
        well as portions of South Dakota, Kansas, and Missouri 
        inundated by a flooding river 3 to 5 feet deep, up to 11 miles 
        wide, and flowing at a rate of 4 to miles per hour.
          (6) Thousands of homes and businesses were damaged or 
        destroyed and hundreds of millions of dollars in damage was 
        done to roads and other public infrastructure.
          (7) In addition to the homes, businesses, and infrastructure 
        impacted by the flooding, hundreds of thousands of acres of 
        cropland were affected.
          (8) The Department of Agriculture has estimated that 400,000 
        to 500,000 acres of some of the most productive crop land in 
        the world was flooded in 2011.
          (9) Local Farm Services Agency representatives have estimated 
        that $82,100,000 was lost in 2011 alone due to damaged or lost 
        crops and unplanted acres.
          (10) Not only did the flooding eliminate the crop, but it is 
        highly unlikely that many farmers will be able to put this land 
        back into production at any point in the near future.
          (11) Producers will have to contend with large piles of sand, 
        silt, and other debris that have been deposited in their 
        fields, meaning the impact of this flood will be felt in the 
        agricultural communities up and down the river for many, many 
        years to come.
          (12) Currently, the amount of storage capacity in the 
        reservoir system that is set aside for flood control is based 
        upon the vacated space required to control the 1881 flood, 
        because prior to the 2011 flood, the 1881 flood was seen as the 
        ``high water mark''.
          (13) Given the historic flooding that took place in 2011, it 
        is clear that that year's flooding now represents a new ``high 
        water mark'', surpassing the flooding of even the 1881 flood.
          (14) It is important that the flood control related functions 
        of the System management be adjusted to reflect the reality of 
        the 2011 flood as the new ``worst case scenario'' for flooding 
        along the Missouri River.
          (15) System management may begin to be adjusted to account 
        for the 2011 flood through a recalculation of the amount of 
        storage space within the System that is allocated to flood 
        control, using the model not of the 1881 flood, but of the 
        greatest flood experienced--the flood of 2011.
          (16) As a result of the flooding in 2011, many States 
        received disaster declarations from the Department of 
        Agriculture to help farmers and producers recover from the 
        damage done by the high water.
          (17) Though helpful, even the assistance provided by the 
        Department of Agriculture will not provide many in the 
        agriculture community with the resources to put their land back 
        into production any time soon.
          (18) Without the protection that will come from a fundamental 
        change in the reservoir System's flood control storage 
        allocations, farmers, producers, and other agricultural 
        interests who may be in a position to restart their operations 
        will find it difficult to justify doing so, given the fact that 
        they will not be protected from similar flooding in the future.
          (19) On behalf of Agribusiness in Hamburg, Iowa, and its 
        neighboring communities, the Secretary of Agriculture should 
        use any authority and all relationships the Secretary has with 
        other Federal agencies to ensure that the area and local 
        agricultural economy are protected from flooding.
  (b) Updated Management of the Missouri River to Protect Agricultural 
Interests.--In order to strengthen the agricultural economy, revitalize 
the rural communities, and conserve the natural resources of the 
Missouri River basin, the Congress directs the Secretary of Agriculture 
to take action to promote immediate increased flood protection for 
farmers, producers, and other agricultural interests in the Missouri 
River basin by working within his jurisdiction to support efforts--
          (1) to recalculate the amount of space within the System that 
        is allocated to flood control storage using the 2011 flood as 
        the model; and
          (2) to increase the River's channel capacity between the 
        reservoirs and below Gavins Point.

                           Brief Explanation


                          Title I--Commodities

    
 Repeals the Direct Payment program beginning with 
the 2013 crop year.
    
 Repeals the Average Crop Revenue Election (ACRE) 
program beginning with the 2013 crop year.
    
 Repeals the Counter-Cyclical Payment (CCP) program 
beginning with the 2013 crop year.
    
 Provides producers with a one-time choice between 
participating in Price Loss Coverage (PLC) or Revenue Loss 
Coverage (RLC). The choice is made on a farm-by-farm and crop-
by-crop basis. Both options utilize the reference prices given 
below.

                            REFERENCE PRICES
------------------------------------------------------------------------
                                                            H.R. 6083 as
        Reference price             Units      Current law     amended
------------------------------------------------------------------------
Wheat.........................           Bu         4.17            5.50
Rice..........................             Cwt     10.50           14.00
Corn..........................           Bu         2.63            3.70
Oats..........................           Bu         1.79            2.40
Barley\1\.....................           Bu         2.63            4.95
Sorghum.......................           Bu         2.63            3.95
Cotton........................           Lb         0.7125        n/a
Peanuts.......................          Ton       495             535
Soybeans......................           Bu         6.00            8.40
Other Oilseeds................             Cwt     12.68           20.15
Dry Peas......................             Cwt      8.32           11.00
Lentils.......................             Cwt     12.81           19.97
Small Chickpeas...............             Cwt     10.36           19.04
Large Chickpeas...............             Cwt     12.81           21.54
------------------------------------------------------------------------

    
 USDA is directed to use the all-barley price for 
making Price Loss Coverage and Revenue Loss Coverage payments 
for barley.
    
 Cotton is ineligible for PLC and RLC and instead 
is offered an area-based crop insurance product to resolve the 
World Trade Organization (WTO) dispute with Brazil.
    
 Reauthorizes nonrecourse loans for loan 
commodities for the 2013 to 2017 crops years at loan rates 
established in current law. Adjustments are made to the cotton 
marketing loan rate to resolve the WTO dispute with Brazil.
    
 Eliminates the separate farm and non-farm adjusted 
gross income limits. Individuals with a 3-year average adjusted 
gross income greater than $950,000 are ineligible for commodity 
and conservation program benefits.
    
 Individuals and entities may only receive up to a 
combined total of $125,000 from both PLC and RLC payments.
    
 Reauthorizes the sugar policy established in 
current law.
    
 Reauthorizes the Livestock Indemnity Program, the 
Livestock Forage Disaster Program, Emergency Assistance for 
Livestock, Honey Bees and Farm-Raised Fish and the Tree 
Assistance Program.
    
 Establishes a voluntary risk management safety net 
for dairy producers; the Dairy Producer Margin Protection and 
Dairy Market Stabilization Programs.
    
 Dairy producers have the option to sign up for 
basic margin protection developed to aid in better risk 
management practices when milk prices and feed prices converge.
    
 Producers signing up for the margin protection 
program would be subject to the Dairy Market Stabilization 
Program.
    
 Among the risk management tools authorized for 
dairy producers is a new program that will provide a basic 
level of protection for up to 80 percent of production history 
when margins fall below $4.00 for a consecutive two month 
period.
    
 Saves $37 million over 10 years, nearly a 10 
percent saving from the current baseline.
    
 Creates one new program: the voluntary risk 
management, which is tied to a market stabilization program.
    
 Reauthorizes 3 programs: (1) Dairy Forward Pricing 
Program; (2) Dairy Indemnity Program; and (3) Dairy Promotion 
and Research Program.
    
 Eliminates 4 programs: (1) Dairy Product Price 
Support Program; (2) Milk Income Loss Contract Program (MILC); 
(3) Dairy Export Incentive Program; and (4) Federal Milk 
Marketing Order Review Commission.

                         Title II--Conservation

    
 Provides farmers, ranchers, foresters and 
landowners with voluntary, incentive-based financial and 
technical assistance for conservation practices.
    
 Consolidates 23 programs into 13, while increasing 
flexibility and program efficiency.
    
 Amends the Conservation Reserve Program to improve 
and focus acres on the most environmentally sensitive lands. 
Enrollment is incrementally scaled back to 25 million acres by 
2017. Flexibility for haying and grazing is included, in 
addition to two million acres reserved for grassland contracts. 
While transitioning acres, expiring contracts are given 
priority consideration for working lands and grasslands 
contracts and Conservation Stewardship Program contracts. The 
Transition Incentives Program (TIP) will continue.
    
 The Conservation Stewardship Program allows for 
producers to adopt new conservation practices while maintaining 
and protecting existing improvements made on natural resources. 
Enrollment is 9 million acres per year.
    
 Reauthorizes and amends the Environmental Quality 
Incentives Program to include functions of the past Wildlife 
Habitat Incentives Program (WHIP), providing similar wildlife 
incentives. Also, EQIP provides cost share incentives to 
producers to meet or avoid the need for national, state, or 
local regulation. The Conservation Innovation Grant (CIG) 
subprogram will continue.
    
 Reauthorizes the Voluntary Public Access and 
Habitat Incentive Program.
    
 Establishes the Regional Conservation Partnership 
Program (RCPP) by the consolidation of four programs, including 
all of their major functions in order to leverage program 
dollars to increase effectiveness. RCPP allows for USDA and 
outside partners to work directly with producers to address 
natural resource concerns. This is a competitive program that 
USDA will select based on the merit of the targeted regions 
application. The Secretary may designate Critical Conservation 
Areas that are under significant regulatory pressure.
    
 Creates the Agricultural Conservation Easement 
Program (ACEP) in order to consolidate all easement programs to 
increase flexibility for the administration. ACEP allows for 
different lands to be enrolled into working grassland or 
farmland aspect or the wetland easement portion to enhance 
water quality and wildlife habitat.

                            Title III--Trade

    
 Amends The Food for Peace Act to emphasize 
building resiliency through development programs.
    
 Reduces the maximum allowable cash assistance for 
administrative costs in food aid from 13 percent to 11 percent.
    
 Directs USDA and USAID to consult on improving 
food aid quality and to work together to deploy new 
formulations, and reauthorizes $1 million from the Food for 
Peace Act for these purposes.
    
 Updates reporting requirements and extends funding 
for monitoring and enforcement of programs.
    
 Amends The Food for Peace Act by reducing the 
authorization for appropriations from $2.5 billion to $2 
billion per year and sets a minimum level of development 
programming at $400 million per year. Directs USDA and USAID to 
collect information on the benefits of monetization in local 
economies.
    
 Amends The Food for Peace Act by increasing 
funding for prepositioning from $10 million to $15 million per 
year. Reauthorizes $8 million for shelf-stable, prepackaged 
foods, and extends authorization for the micronutrient 
fortification program.
    
 Reauthorizes the Market Access Program to provide 
assistance on a cost-share basis, targeting small businesses, 
farmer cooperatives, and non-profit trade organizations.
    
 Extends the Foreign Market Development, Emerging 
Markets, and the GSM-102 programs through 2017.
    
 Reauthorizes the John Ogonowski and Doug Bereuter 
Farmer-to-Farmer program and increases the minimum level of 
funding from $10 million to $15 million per year to provide 
technical assistance for agricultural improvements in 
developing countries.
    
 Extends the Food for Progress Act through 2017 and 
repeals an outdated provision related to a project in Malawi.
    
 Extends Technical Assistance for Specialty Crops 
(TASC) through 2017 and clarifies that technical barriers to 
trade can be addressed through the program.
    
 To assist in the conservation of genetic diversity 
in food crops through the collection and storage of the 
germplasm of food crops the Global Crop Diversity Trust is 
extended through 2017 at a contribution level of $50 million.
    
 Allows for the establishment of an Under Secretary 
of Agriculture for Foreign Agricultural Services, appointed by 
the President with the advice and consent of the Senate, to 
address trade challenges and export opportunities for 
agriculture.

                          Title IV--Nutrition

    
 Saves $16 billion over 10 years from the 
Supplemental Nutrition Assistance Program (SNAP).
    
 Restricts program eligibility to those households 
receiving cash assistance from other low-income programs.
    
 Closes a loophole in SNAP related to the Low 
Income Home Energy Assistance Program (LIHEAP) payments.
    
 Eliminates state performance bonuses.
    
 Cracks down on waste, fraud and abuse by ending 
SNAP benefits for lottery winners, providing more 
accountability in the SNAP Employment and Training program, and 
increasing oversight of SNAP programs for the homeless, 
elderly, and disabled.
    
 Provides the Secretary with more resources to 
prevent trafficking of SNAP benefits.
    
 Requires states to use an immigration status 
verification system to verify an applicant's immigration 
status.
    
 Improves the quality of SNAP-approved retail 
stores.
    
 Seeks to eliminate the advertisement and promotion 
of SNAP.
    
 Increases assistance for food banks by providing 
an additional $25 million per year for The Emergency Food 
Assistance Program (TEFAP).
    
 Increases support for Community Food Projects and 
designates funding for projects that provide incentives for 
low-income individuals to purchase more fruits and vegetables.
    
 Expands the Fresh Fruit and Vegetable Program to 
allow participating elementary schools to purchase fresh, 
frozen, canned and dried produce.
    
 Establishes pilot programs for the purchase of 
more locally grown foods for schools.

                            Title V--Credit

    
 Amends Farm Ownership Loans by including ``other 
legal entities'' to the list of eligible borrowers, and 
provides clarification to Secretary for individuals meeting the 
3-year farming or ranching experience requirement.
    
 Amends Conservation Loan and Loan Guarantee 
Program by raising Loan Guarantee amount from 75 to 90 percent.
    
 Amends Maximum Loan Value for Down Payment Loan 
Program from 45 percent of $500,000 to 45 percent of $667,000.
    
 Repeals mineral rights appraisals requirement for 
real estate loans.
    
 Amends Personal Liability for Youth Loans, on a 
case by case basis, to enable youth to obtain student loans and 
grants for higher education.
    
 Amends Emergency Loans by adding ``or other such 
legal entities as the Secretary deems appropriate'' to the list 
of approved borrowers.
    
 Extends the Beginning Farmer and Rancher 
Individual Development Accounts Pilot Program through 2017.
    
 Amends Direct Farm Operating Loans to grant FSA 
authority to provide young, beginning, veteran and urban 
farmers and ranchers smaller microloans up to $35,000.
    
 Amends Priority for Joint Financing Participation 
Loans and Down Payment Loans within Direct Farm Ownership Loans 
maximizing number of borrowers served for a given level of 
appropriations.
    
 Amends median farm size limitation by replacing 
``median'' with ``average'' allowing more otherwise qualified 
applicants to receive beginning farmer ownership loans.
    
 Extends Secretary's ability to make loans under 
each subtitle through 2017.
    
 Extends Loan Fund Set-Asides through 2017.
    
 Repeals ``rural residents'' requirement allowing 
all youth the opportunity to receive a Youth Operating Loan.
    
 Extends the State Agricultural Mediation Programs 
through 2017, allowing agriculture and USDA-related disputes to 
be resolved.
    
 Amends Loans to Purchasers of Highly Fractionated 
Land to meet the needs of Indian tribes and tribal members.

                      Title VI--Rural Development

    
 Thirteen programs are eliminated and funding 
levels are reduced by more than $1.5 billion over 5 years, a 
50% reduction in authorizations. In addition, $100 million in 
mandatory money is not reauthorized.
    
 Requires the Secretary to track the success of 
investments through grants and loans in order to improve rural 
development programs. Also requires the Secretary to develop 
simplified application forms to reduce administrative burdens 
and to make programs more accessible to small, rural 
communities.
    
 Reauthorizes programs to assist rural communities 
in addressing critical water and wastewater needs through loans 
and grants for municipal and household wells. Provides 
opportunities to enhance the public-private partnerships to 
support Rural Water and Waste Disposal Infrastructure in rural 
communities.
    
 Reauthorizes the Business & Industry Loan 
Guarantee Program with additional changes that allow for small 
rural lenders to more easily participate in local communities 
by improving existing credit structure through the guarantee of 
quality loans that provide community benefits. Funding set 
aside for locally and regionally produced food is capped at 7% 
of the program.
    
 Reauthorizes the Intermediary Relending Program 
and the Rural Microentrepreneur Assistance Program in order to 
assist small businesses to start or expand their operations.
    
 Reauthorizes Value-Added Producer Grants with $50 
million in mandatory funding. These grants benefit producers 
and cooperatives that process agricultural commodities to 
capture increased margins directly by the agricultural 
producer.
    
 Reauthorizes the Broadband Loan Program with 
additional provisions to increase transparency and to ensure 
investments focus on areas without broadband service. Emphasis 
is placed on projects which serve both businesses and homes to 
maximize the economic impact of entire rural areas.
    
 Reauthorizes Community Facilities programs to 
assist communities in developing essential health, safety, and 
educational assets.
    
 Reauthorizes the Delta and Great Plains Regional 
Authorities, and the Rural Business Opportunities Grants 
Program to assist communities and regions in the planning and 
execution of economic development activities.
    
 Amends the Rural Electrification Act to authorize 
loans and grants to promote energy efficiency. Amends fees for 
certain loan guarantees.

          Title VII--Research, Extension, and Related Matters

    
 Intramural research programs are reauthorized to 
be carried out through the Agricultural Research Service, 
Economic Research Service, National Agricultural Statistics 
Service and the Forest Service.
    
 Authority for extramural research grants and 
formula funds programs administered by the National Institute 
of Food and Agriculture are extended.
    
 University research for agricultural activities 
are reauthorized for 1862, 1890 and 1994 Land Grant Colleges 
and Universities.
    
 Competitive grants for Non-Land Grant Colleges of 
Agriculture (NLGCA) institutions are reauthorized in order to 
maintain and expand research and outreach in regards to 
agriculture, renewable resources and production practices.
    
 The National Agricultural Research, Extension, 
Education and Economics Advisory Board is reauthorized while 
enhancing the involvement of other agricultural industry 
interest in the consultation of agricultural priorities.
    
 Agriculture and Food Research Initiative continue 
critical agriculture research by providing competitive grants 
through integrated research and extension activities.
    
 Enhances accountability, transparency and 
consistency of USDA administered research, extension and 
education funding by mandating that the annual Presidential 
Budget Submission include sufficient information for the 
Congress to thoroughly evaluate and approve future spending 
plans. With regard to extramural competitive grant programs, 
USDA will be barred from obligating appropriated funds unless a 
comprehensive spending plan is submitted with the President's 
budget and approved by Congress.
    
 The Veterinary Services Grant Program is 
authorized in order to address the shortage of veterinarians. 
This requires an entity to develop programs to relieve 
shortages, support private practices, and support those 
practices that successfully complete a specific service 
requirement.
    
 The Specialty Crop Research Initiative, Organic 
Research and Extension Initiative, Sustainable Agriculture 
Research and Extension, and the Beginning Farmer and Rancher 
Development Program are reauthorized.

                          Title VIII--Forestry

    
 The forestry title promotes the health and active 
management of America's national, state, and private forests.
    
 Conservation programs such as the Forest Legacy 
Program and the Community Open Space Program, and Healthy 
Forest Reserve Programs are reauthorized.
    
 Contains authority for the Forest Service to 
accelerate its treatment of national forests affected by pine 
bark beetle infestation and natural disasters. This authority 
streamlines the approval process for the Forest Service in 
selecting afflicted areas that need treatment within our 
national forests.
    
 To assist rural economies, the title reauthorizes 
the Office of International Forestry, which is designed to help 
facilitate the development of foreign markets for domestically 
produced wood products and the Rural Revitalization 
Technologies program in order to provide grants and technical 
assistance to forested rural communities.
    
 Promotes forest health by extending the Forest 
Stewardship Contracting program for an additional four years, 
allowing the Forest Service to engage in needed restoration 
work on our national forests.

                            Title IX--Energy

    
 Reauthorizes programs that promote the development 
of advanced biofuels and renewable energy with discretionary 
funding.
    
 Creates a tiered application process for farmers 
and rural businesses applying for smaller grants under the 
Rural Energy for America Program (REAP).
    
 Clarifies Congressional intent of REAP by 
eliminating funding for ethanol blender pumps.
    
 Prioritizes funding of the Biomass Crop Assistance 
Program (BCAP) for the establishment of dedicated energy crops 
by eliminating the collection, harvest, storage, and 
transportation (CHST) payments.
    
 Ensures certain domestic forest products with 
mature markets are eligible under federal procurement 
guidelines for renewable products under the Biobased Markets 
Program.
    
 Provides competitive grants to non-profit entities 
to provide information and outreach on the benefits of 
biodiesel fuel use.
    
 Repeals programs that have outlived their 
usefulness or have never been fully implemented.

                         Title X--Horticulture

    
 Increases funding to $70,000,000 per year for the 
Specialty Crop Block Grant Program, with funding provided for 
multi-state projects.
    
 Provides $20,000,000 per year for the Farmers 
Market and Local Food Promotion Program to improve and expand 
direct producer-to-consumer market opportunities including the 
development of local food system infrastructure.
    
 Combats pest and disease by consolidating two very 
effective programs, the Plant Pest and Disease Management and 
Disaster Prevention Program and the National Clean Plant 
Network. Increases funding for this combined program to 
$71,500,000 per year.
    
 Provides funding for the Organic Production and 
Market Data Initiatives Program and the National Organic 
Program as well as enhances investigation and enforcement 
tools.
    
 Provides regulatory relief by eliminating a costly 
and duplicative permitting requirement for pesticide 
applications.
    
 Imposes a temporary stay on the EPA from acting on 
pesticide registrations based on Biological Opinions from the 
Services not withstanding a peer review.
    
 Reiterates the authority of the Secretary to 
regulate products of biotechnology under the Plant Protection 
Act.
    
 Reauthorizes the registration process for 
pesticide manufacturers.

                        Title XI--Crop Insurance

    
 Requires the Farm Service Agency (FSA) to provide 
an authorized agent or an approved insurance provider (AIP) 
information that may assist in insuring the producer.
    
 Requires Risk Management Agency (RMA) to publish 
violations of the prohibition on rebates to serve as guidance 
to AIPs, agents and producers.
    
 Establishes a supplemental coverage option (SCO) 
to provide producers the option of purchasing area coverage by 
itself or in addition to individual coverage. Producers may 
also purchase margin coverage and do so in addition to 
individual and area coverage.
    
 Continues reduced premiums on enterprise unit 
policies.
    
 Requires enterprise units to be made available by 
practice.
    
 Requires the use of data collected by the RMA, 
National Agricultural Statistics Service (NASS), or both, to 
determine yields. Where sufficient county data is not 
available, authorizes the Secretary to use data from other 
sources.
    
 Adjusts the actual production history used to 
determine insurable yields.
    
 Requires the Federal Crop Insurance Corporation 
(FCIC) to review policies developed under research and 
development contracting authority, or pilot programs, and 
submit to the FCIC Board for review policies that will likely 
result in viable and marketable policies, provide crop 
insurance in a significantly improved form, and adequately 
protect the interests of producers.
    
 Provides equitable relief on specialty crop 
policies that were disproportionately adversely impacted by the 
Standard Reinsurance Agreement (SRA) but clarifies that 
Congress does not provide statutory assent to SRA provisions.
    
 Requires the FCIC Board to ensure that SRA 
renegotiations maintain budget neutrality to the maximum extent 
practicable, and use any savings that may be realized for 
specific crop insurance purposes.
    
 Limits availability on crop insurance to protect 
native sod.
    
 Allows producers to elect different coverage 
levels by practice.
    
 Provides beginning farmers and ranchers with 
additional premium assistance, enhanced T-yields, and the 
ability to use previous producer's APH or an assigned yield.
    
 Requires a stacked income protection plan to be 
made available to upland cotton producers.
    
 Requires a revenue crop insurance policy for 
peanut producers to be made available.
    
 Authorizes AIPs and agents to correct 
unintentional errors to ensure accuracy of all insurance 
information.
    
 Requires the Secretary to maintain and upgrade 
information management systems and to implement an acreage 
report streamlining initiative.
    
 Provides for research and development contracting 
priorities. Makes specialty crops, sweet sorghum, biomass 
sorghum, rice, peanuts and sugarcane a research and development 
priority.
    
 Amends the noninsured crop assistance program 
(NAP) to allow for the purchase of additional NAP coverage with 
respect to crops for which no coverage is available under 
Federal Crop Insurance.

                        Title XII--Miscellaneous

    
 Reauthorizes National Sheep Industry Improvement 
Center.
    
 Reauthorizes Trichinae Certification Program.
    
 Reauthorizes National Aquatic Animal Health Plan.
    
 Authorizes Report on Compliance with World Trade 
Organization Decision Regarding Country of Origin Labeling.
    
 Repeals Certain Regulations Under the Packers and 
Stockyard Act, 1912.
    
 Requires Meat and Poultry Processing Report on 
Better Meeting the Needs of Small Meat and Poultry Growers.
    
 Amends Outreach and Assistance for Socially 
Disadvantaged Farmers and Ranchers and Veteran Farmers and 
Ranchers.
    
 Reauthorizes Office of Advocacy and Outreach.
    
 Authorizes Grants to Improve Supply, Stability, 
Safety, and Training of Agricultural Labor Force.
    
 Requires Evaluation for Purposes of Prohibition on 
Closure or Relocation of County Offices for the Farm Service 
Agency.
    
 Prohibits Attending an Animal Fight or Causing a 
Minor to Attend and Animal Fight.
    
 Reauthorizes Program Benefit Eligibility Status 
for Participants in High Plains Water Study.
    
 Requires an Office of Tribal Relations.
    
 Authorizes Military Veterans Agricultural Liaison.
    
 Authorizes Acer Access and Development Program.
    
 Prohibits Interference by State and Local 
Governments with Production or Manufacture of Items in Other 
States.
    
 Increases Protection for Agricultural Interests in 
the Missouri River Basin.

                            Purpose and Need

    The Federal Agriculture Reform and Risk Management Act 
(FARRM) is the product of nearly three years of deliberations, 
including 46 House hearings and audits, a joint deficit 
reduction proposal developed between leaders of the House and 
Senate Committees on Agriculture, and, ultimately, Committee 
consideration and passage on an overwhelming and bipartisan 
basis. As measured by the length of the Committee's 
consideration and by the depth of its evaluation, having fully 
examined the purpose and effectiveness of each and every 
authority under the jurisdiction of the Committee, FARRM is the 
product of extensive analysis and research.
    Once enacted into law, the Congressional Budget Office 
(CBO) estimates that FARRM will yield taxpayers more than $35 
billion in deficit reduction. FARRM proposes to achieve these 
substantial budget savings through significant reform. FARRM 
repeals or consolidates more than 100 programs, saves $16 
billion from SNAP by curbing abuse, eliminates Direct Payments 
and reforms commodity policy at a savings of more than $14 
billion, saves another $6 billion by consolidating 23 
conservation programs into 12, and brings about long overdue 
regulatory relief for farmers and ranchers. The Committee 
believes that if all committees of Congress and all functions 
of government underwent the review, reform, and reductions that 
this Committee has imposed upon policies under its 
jurisdiction, the United States would be well on its way to a 
smaller government and a balanced budget.

                          Title I--Commodities

    For its share, Title I sustains a 37.5 percent reduction. 
These savings are accomplished through a complete reform of 
U.S. farm policy, repealing all of current policy under Title I 
relative to row crops, except for the marketing loan which is 
maintained with an adjustment to the cotton loan in order to 
address a World Trade Organization (WTO) dispute. In lieu of 
current policy, producers are given a choice between two less 
expensive risk management options under Title I as well as some 
additional tools to manage risk that producers may purchase 
under Federal Crop Insurance.
    Upon FARRM's passage, Title I and Federal Crop Insurance 
will have been cut by more than $30 billion over the past seven 
years, contributing $24 billion to deficit reduction. This 
reduction in funding stands in contrast to the rising costs of 
other functions of the U.S. government. Additionally, foreign 
subsidies and tariffs are trending sharply upward according to 
two independent reports issued during the Committee's 
development of FARRM, which serve as prescient reminders of 
both the appropriateness of and need for U.S. farm policy.
    The resilience and strength of the U.S. farm sector over 
much of the past decade, its contribution to two economic 
recoveries and millions of on and off-farm jobs, and its 
positive contribution to the nation's balance of trade have 
been acknowledged by both proponents and opponents of U.S. farm 
policy, but for purposes of advancing very different 
objectives. Relatively strong crop prices and production 
experienced over the past ten years have been viewed by 
opponents as obviating the need for much or even all of farm 
policy, while proponents have pointed to the current policy's 
evident success in creating a positive business environment at 
low cost to the taxpayer--only a small fraction of 1 percent of 
the federal budget. Ultimately, Mother Nature is weighing in on 
the dispute, imposing a widespread and severe drought that 
currently grips at least 29 states. This serves as a reminder 
of the unique risks farmers and ranchers face that necessitate 
effective U.S. farm policy.
    Robust prices for at least some crops, in part brought on 
by the drought, will undoubtedly serve as a straw man for those 
who might still contend that the significant savings and 
reforms achieved by FARRM are insufficient, that the deficit 
and growing national debt demand even more. Those without the 
benefit of history may find this argument compelling. However, 
the nation's experience with the past three farm bills leads to 
a different conclusion. While the 1996 farm bill was predicated 
on forecasts of high prices that ultimately plunged, resulting 
in billions of dollars in additional costs, the 2002 and 2008 
farm bills were predicated on or at least designed to deal with 
dramatic price declines that ultimately never materialized, 
yielding substantially lower costs to taxpayers. Prudent policy 
and honest budgeting, informed by these experiences, directed 
the Committee to couple the fiscal successes of the previous 
two farm bills with the market-orientation and regulatory 
relief of the 1996 law in order to accomplish significant 
savings and reform.
    It is in the context of these overarching objectives that 
the Committee took into consideration the substantive policy 
priorities of all those impacted by a farm bill, including the 
nation's farmers and ranchers. Relative to the farm safety net, 
despite what seemed at times to be a cacophony of views, 
several key themes constantly emerged.
    The first and most widely shared theme is that Congress 
should do no harm to Federal Crop Insurance. The cuts made in 
the 2008 farm bill, the cuts made unilaterally by the 
Administration just two years later in its renegotiation of the 
Standard Reinsurance Agreement (SRA), and dramatic policy 
changes elsewhere in the administration of crop insurance, 
raised the alarm that 32 years of progress in making crop 
insurance the cornerstone of U.S. farm policy it is today could 
be jeopardized. One of the most significant challenges the 
Committee faced was honoring producer priority to protect crop 
insurance while also satisfying the wishes of some producers 
who wanted a revenue-based program offered under Title I, goals 
which are to some extent at cross purposes due to interaction.
    The second and third themes--producer choice and price 
protection respectively--are also widely held, though there are 
earnest differences as to approach. From hearings held in all 
regions of the country, it was evident that producers were 
uncomfortable with Washington creating a one-size-fits-all 
approach to Title I. It would be a mistake, however, to 
interpret the concern on the part of these producers as being 
interested in a choice simply for the sake of being allowed to 
make one. Even among producer groups and producers who 
expressed a common preference for revenue-based support under 
the commodity title, differences were sufficient to produce two 
alternate options that farmers could choose from under the 
Senate farm bill.
    However, it is price protection that is at the heart of 
producers' interest in choice. For producers of some crops, 
limited variances in yield from year to year greatly diminished 
the value of a farm policy based on revenue because their peril 
was not revenue but rather price. Although frequently 
mischaracterized as a regional divide separating northern and 
southern producers and crops, omission of a price-based 
alternative to revenue-based programs would disenfranchise 
producers of every crop from every region who contended that 
the farm bill's primary purpose is to address long-term price 
declines.
    In regard to cotton policy, the Committee weighed the 
options carefully in light of ongoing efforts to resolve the 
WTO dispute with Brazil. As the report to the 2008 farm bill 
chronicles, very substantial changes have been made to U.S. 
cotton policy to address the WTO complaint, including in the 
2006 budget reconciliation and the 2008 farm bill. These 
reforms to U.S. cotton policy have occurred alongside major 
changes in cotton prices, reductions in U.S. cotton acreage and 
increases in Brazil cotton acreage, as well as increases in 
Brazilian support for its producers since the time the Brazil 
cotton case was initiated. The fundamental change in U.S. 
cotton policy included in the House farm bill eliminates any 
objectionable remnant of that policy.
    In relation to rules of eligibility, as part of overall 
reform efforts, the Committee reluctantly imposes a lower 
adjusted gross income (AGI) means test that is uniform to all 
income sources for the commodity programs in Title I and for 
Title II conservation programs. AGI rules were sharply lowered 
four years ago in the 2008 farm bill and changed again just 
last year as part of the annual appropriations process. 
However, the Committee does maintain reasonable payment 
limitations and rules that allow producers to share the risks 
of farming with family members and do so without confronting 
new obstacles and added layers of bureaucratic red tape.
    Finally, the Committee considered and rejected proposed 
changes to U.S. sugar policy that would have reverted the 
policy to 1985. U.S. sugar policy has operated at zero cost to 
taxpayers and is projected to remain a zero cost policy into 
the future. Under WTO and NAFTA commitments, the United States 
is the biggest importer of sugar in the world and has a totally 
open market with Mexico. However, heavily subsidized and 
protected foreign sugar producing countries distort global 
markets, alternately shorting world supplies and driving up 
prices or glutting world supplies and depressing prices, 
divorced from real market forces. U.S. sugar policy allows 
highly efficient U.S. producers to remain competitive on a 
lopsided global playing field while providing safe, low cost 
sugar to consumers.

Supplemental Agricultural Disaster Assistance Programs

    The Committee reported bill maintains existing disaster 
assistance for livestock producers when their livestock die due 
to severe weather, disease, or other acts of nature. It also 
continues assistance for natural disasters that destroy forage 
used for grazing, honey bees, farm fish, orchard trees, and 
nursery trees. The Livestock Indemnity Program, the Livestock 
Forage Disaster Program, Emergency Assistance for Livestock, 
Honey Bees, and Farm-Raised, and the Tree Assistance Program 
are established and proven programs in the livestock and the 
orchard & nursery tree sectors.
    Rapidly rising input costs, volatile export markets, 
natural disasters, and other unpredictable factors present 
production risks to animal agriculture. The emerging drought in 
the summer of 2012 is an example of an unpredictable event with 
the potential to upset business models and adversely affect 
producers and consumers. Many crops have access to insurance 
products that help them manage this production risk. The 
Committee applauds the efforts of the animal agriculture 
community to explore such products as evidenced by a number of 
reports called for in this legislation, including swine 
catastrophic disease loss, poultry business interruption, and 
poultry catastrophic disease loss insurance.
    Unless and until additional insurance products can be 
developed and adopted by the livestock sector, these programs 
will be a vital tool to help manage production risks and 
protect animal agriculture, and ultimately consumers, from the 
consequences of natural disasters.
    In the case of orchardists and nursery tree growers who 
produce trees, bushes and vines for commercial purposes, the 
Tree Assistance Program helps them replant trees, bushes and 
vines destroyed by natural disasters.

Dairy Margin Protection Program

    The failure of existing dairy programs to address the 
challenges faced by dairy farmers in recent years led the 
Committee to reconsider the best means for managing price 
volatility and producer risk in the dairy sector.
    Current dairy programs focus on price support. While milk 
prices were mostly stable when these supports were first 
enacted, annual fluctuations in farm milk prices are now 
routine, with milk prices regularly moving between lows and 
record or near-record highs over the past decade. In 2009, the 
dairy industry suffered dramatic losses, as dairy prices fell 
sharply from record highs in 2007-2008 at a time when feed 
costs were rising substantially above long-run averages.
    While milk price is an important factor for the financial 
success of dairy producers, another significant factor is the 
cost of dairy feed, which accounts for about three-quarters of 
a dairy farm's operating costs or about one-half of total 
costs.
    In light of these considerations, focus has shifted to a 
safety net that is centered on a ``milk margin.'' The margin is 
the amount available to pay all other costs once the feed bill 
is paid and can be calculated by subtracting a national feed 
cost from the national farm milk price.
    The dairy margin protection program is designed to address 
both catastrophic conditions, which can result in the severe 
loss of equity for dairy farmers, such as those witnessed in 
2009, as well as long periods of low margins, such as those 
experienced in 2002.
    For producers who elect to participate, basic catastrophic 
coverage will be provided at no cost. According to testimony 
from Food and Agricultural Policy Research Institute (FAPRI) to 
the House Agriculture Committee's Subcommittee on Livestock, 
Dairy, and Poultry, ``Although base program coverage comes at 
no cost to producers, the probability of receiving a large 
payment from the base program is small.''
    Participating producers who exercise their option to buy 
supplemental margin protection coverage will be able to access 
a specific level and amount of risk management protection that 
is tailored to their farms' risk management needs. By offering 
a lower premium on supplemental coverage for the first 4 
million pounds of production, the Committee has incentivized 
producers of all sizes to utilize this risk management tool on 
at least a portion of their production.

Dairy Market Stabilization Program

    Voluntary participation in the margin protection program 
requires producers to be subject to the dairy market 
stabilization program. According to testimony from the National 
Milk Producers Federation to the House Agriculture Committee's 
Subcommittee on Livestock, Dairy, and Poultry, ``The purpose of 
the program is to make what occurs naturally in the marketplace 
occur sooner and faster and reducing price volatility. . . . It 
also reduces that cost of the margin program resulting in 
savings compared to current dairy programs. . . . The simple 
fact of the matter is that dairy farmers and the cooperatives 
they own bear the burden of balancing the supply of milk with 
processor demand for that milk.''
    In order to address the concern about the effect a supply 
management program may have on the U.S. dairy industry growing 
export potential, the program incorporates a series of 
qualifiers that would prevent any reduction in domestic supply 
of milk if the U.S. and world prices misaligned.
    According to testimony from FAPRI to the House Agriculture 
Committee's Subcommittee on Livestock, Dairy, and Poultry, when 
the stabilization program operates, it lasts a very short 
period of time because of the world price triggers. FAPRI's 
analysis used a stochastic model to draw 500 alternatives for 
the conditioning variables in determining the dairy baseline, 
which incorporate historical distributions of the conditioning 
factors to make certain any historical correlation in these 
conditioning factors is included. None of the 500 potential 
outcomes show long-term multi-year operation of the program.

Repeal of Dairy Product Price Support Program

    The Dairy Product Price Support Program was created in 1949 
as a means to help provide government support for farm-level 
milk prices through government purchases of dairy products. 
During most of its lifespan, the program targeted a set milk 
price, and later established pricing targets for federal 
purchases of key products, such as cheese, butter, and nonfat 
milk powder, that would help support that milk price. In the 
2008 Farm Bill, the program was altered to support specific 
product price levels.
    Many in the dairy industry have advocated for the repeal of 
this program for several reasons. First, it supports dairy 
farmers all around the world, including America's competitors. 
The current program helps balance world supplies by encouraging 
the periodic global surplus of milk products to be purchased by 
U.S. taxpayers. As a result, dairy farmers in other countries, 
particularly the Oceania region, enjoy as much price protection 
from the program as our own U.S. farmers.
    Secondly, the program has reduced total demand for U.S. 
dairy products by diverting some of the U.S. milk products into 
government warehouses, rather than to commercial buyers. It 
creates a dynamic where it is more difficult for the U.S. to be 
a consistent supplier of many products, since sometimes the 
domestic industry has products to export, and at other times, 
it is easier for the domestic industry to just sell its product 
to the government.
    Thirdly, the program disincentivizes product innovation by 
creating a government market for products that the marketplace 
doesn't want. For example, because the government purchases 
nonfat dry milk, too much of this is produced instead of 
protein-standardized skim milk powder, as well as specialty 
milk proteins, such as milk protein concentrates, which are in 
demand both domestically and internationally.
    Also, USDA only buys products of certain size and packaging 
specifications. Once purchased, nonfat dry milk powder 
returning back to the market from government storage also 
presents challenges, dampening the recovery of prices.
    Finally, the program seeks to achieve price levels that are 
no longer relevant to farmers, as the price support levels have 
been considerably less than the cost of production for many 
years. As demonstrated by the dairy crisis of 2009, this 
program was not an effective safety net.

Repeal of Milk Income Loss Contract Program

    The Milk Income Loss Contract (MILC) program is a price-
based safety net, which is ineffective for today's dairy 
producers.
    Since the inception of MILC, large dairy farm operators 
have expressed concern that the payment limit has negatively 
affected their income. For larger farm operations, their annual 
production is well above the limit, and any in excess of that 
receives no risk protection. Limiting the level of protection 
to a maximum of 2.985 million pounds of milk a year provides a 
safety net for less than 30 percent of the total milk produced 
in the U.S.
    Despite the feed cost adjustor that was added in the 2008 
farm bill, MILC does not adequately offset high feed costs. If 
milk prices are at average levels and feed costs are high, 
farmers can suffer substantial losses and still not receive any 
assistance from MILC. The feed cost adjustment program does not 
go into effect until the standard feed ration reaches $147 per 
ton, and it also only covers about 30 percent of the feed price 
increase above this level.
    The inadequacy of MILC as a safety net was most evident 
through most of 2008, when high feed costs overwhelmed average 
milk prices and put most farmers into a deep hole without the 
help of any MILC payments.

Repeal of Dairy Export Incentive Program

    The Dairy Export Incentive Program (DEIP) has generally 
been used in concert with the dairy price support program. As 
such, it has only been made available in a very limited way 
after the price support program has begun purchasing and 
storing dairy products.
    Instead of expanding world markets for U.S. dairy products 
which requires a long-term commitment to serving those markets, 
the U.S. government has only used DEIP either in response to 
heavy European subsidization of dairy exports or as an 
alternative to storing products under the price support 
program. The program generates a baseline cost without 
providing any consistent, meaningful return to the U.S. dairy 
sector.

Extension of Dairy Forward Pricing Program

    The ability for producers and processors to manage price 
risk is limited under the Federal Milk Marketing Order system. 
By extending the dairy forward pricing program, producers and 
processors will be able to continue to make use of forward 
contracting to manage price risk, without the practice being 
found a violation of the requirements of marketing orders. The 
program is strictly voluntary and will only apply to Classes 
II, III and IV milk.

Extension of Dairy Indemnity Program

    The Dairy Indemnity Program provides payments to dairy 
producers who have been directed by a public regulatory agency 
to remove their milk from the commercial market because it has 
been contaminated by pesticides, toxic substances, and/or 
chemical residues. Because such events can be devastating to 
the financial well-being of producers through no fault of their 
own, the Committee proposes to extend the program's 
authorization through FY 2017.

Extension of Dairy Promotion and Research Program

    The Dairy Production Stabilization Act of 1983 authorized a 
national producer program for dairy product promotion, 
research, and education to increase human consumption of milk 
and dairy products and reduce milk surpluses. Under the 
program, promotion and research is conducted to strengthen the 
dairy industry's position in the marketplace and to maintain 
and expand domestic and foreign markets and uses for fluid milk 
products and dairy products produced in the United States.

Federal Milk Marketing Order Review

    The 2008 farm bill revised the federal milk marketing order 
amendment procedures in order to streamline and expedite the 
amendment process. As there continues to be interest in 
marketing order reform, stakeholders are encouraged to make use 
of this administrative process, which allows for petition of 
the Secretary at any time and a hearing process whereby 
producers and processors can provide input. The House 
Agriculture Committee continues to provide oversight of this 
process and refrain from any legislative changes to the order 
system until stakeholders have exhausted their administrative 
remedies.

                         Title II--Conservation

    The conservation title authorizes cost-share and technical 
assistance for farmers, ranchers, foresters, and landowners 
through voluntary, incentive-based conservation programs. 
Through these programs, producers protect and restore water 
quality and quantity, air quality, wildlife habitat and address 
regulatory requirements while providing a safe, abundant, and 
affordable food supply. The conservation programs have grown in 
size and significance in recent farm bills.
    The Food Security Act of 1985 authorized several 
conservation measures intended to address concerns about the 
impact of agricultural production on soil erosion and wetland 
loss. The 1996 Farm Bill took the groundbreaking step of 
consolidating previously discretionary funded programs into one 
new program funded with mandatory money from the Commodity 
Credit Corporation (CCC). The program created, the 
Environmental Quality Incentives Program (EQIP), is one of the 
most successful and popular programs among farmers and 
ranchers.
    During consideration of the Farm Security and Rural 
Investment Act of 2002, budget circumstances allowed for the 
expansion of conservation programs with the addition of $17.5 
billion to the conservation baseline for the life of the 2002 
Bill and the out-year baseline as well. The Conservation 
Security Program was created.
    Despite budget pressures, the Food, Conservation, and 
Energy Act of 2008 increased conservation spending by nearly 
$4.5 billion during the life of the bill and created new 
targeted conservation programs such as the Chesapeake Bay 
Program, the Cooperative Conservation Partnership Initiative 
(CCPI), and the Conservation Stewardship Program (CSP). 
However, the Wetland Reserve Program (WRP), the Grassland 
Reserve Program (GRP), the Small Watershed Rehabilitation 
Program, and the Voluntary Public Access and Habitat Incentive 
Program remained without adequate baselines given the demand 
and interest in these programs.
    The Committee recognizes that these programs serve as a 
foundation for improved conservation efforts. The Committee's 
priority to assist farmers and ranchers in addressing 
environmental regulations and conservation needs has not 
changed. The Committee reported bill maintains the core 
functions and goals of the conservation title while eliminating 
or combining 23 duplicative and overlapping programs into 13 
programs to allow for streamlined delivery, while also 
providing $6.1 billion in savings below baseline funding.

Conservation Reserve Program (CRP)

    The Committee strongly supports the Conservation Reserve 
Program as one of the main pillars of cost-effective 
conservation available to farmers and ranchers. However, 
through the hearing process, the Committee recognized that 
market pressures are moving land into production. Maximum 
enrollment of CRP is incrementally stepped down to 25 million 
acres allowing enrollment to focus on the most environmentally 
sensitive lands. Additionally, the Committee reported bill 
further addresses this issue by directing the Secretary to 
conduct a onetime early out of land that is not considered 
environmentally sensitive.
    The reported bill directs the Secretary to reserve two 
million acres under CRP for working grassland contracts to 
capture land that was previously eligible under GRP. The 
reported bill further directs USDA to provide landowners with 
added flexibility to better manage their enrolled acres with 
managed activities such as haying and grazing or in the cases 
of drought or other emergencies.
    To ensure that environmental benefits are maintained, the 
reported bill gives expiring CRP acres priority consideration 
for working grassland contracts, and the Conservation 
Stewardship Program, as well as the ability to enter into 
contracts under working land programs before the CRP contract 
expires. Beginning farmers or ranchers will continue to be 
eligible for greater access to productive land with the 
continuation of the Transition Incentives Program (TIP).
    The Committee is concerned that USDA has not been fully 
utilizing CRP technical assistance authorities and funding 
enacted by the 2008 Farm Bill for agency infrastructure, 
including outreach, training, and other technical services. The 
Committee expects USDA to better utilize this authority for 
internal support and to support outreach and partnership with 
non-governmental organizations and other qualified entities to 
ensure that producers and landowners are fully aware of their 
options under the program.
    The Committee directs the Secretary of Agriculture to, 
within one year of enactment, report to Congress on the quality 
of land currently enrolled in CRP based on the land capability 
classification system, the erodibility index, other eligible 
lands criteria, and natural resource benefits. The report 
should include justification for using the prescribed 
environmental benefits index threshold for any acres enrolled 
into the program after enactment. The Secretary shall complete 
such a report five years thereafter and include the same 
information on land quality and decisions to enroll types of 
acres based on the environmental benefits index. If the 
decision is made to use a different environmental benefits 
index threshold or methodology for making decisions to enroll 
program contracts, reasons for the decision should be included 
in the report.
    Additionally the Committee directs the Secretary of 
Agriculture, within two years of enactment, to complete a 
comprehensive economic impact study that specifically evaluates 
the impact the CRP has had on rural communities. The report 
should include the average county rental rates and rental rates 
paid for CRP land.
    While the Committee agreed to an overall reduction in the 
maximum acres that could be enrolled in CRP, this should not 
serve as an indicator of declining or reduced support for CRP. 
The Committee intends for CRP to be implemented at authorized 
levels, and for the program to continue as one of USDA's key 
conservation programs. Because there are widespread concerns 
that CRP rental rates are below prevailing local market levels, 
USDA shall update rental rates annually and use incentive 
payments for continuous CRP practices to make the program 
competitive with other programs and more economically viable 
for producers.

Conservation Stewardship Program (CSP)

    The Conservation Stewardship Program encourages producers 
to adopt new conservation measures while maintaining current 
practices to protect natural resources. The Committee 
encourages the Secretary to place emphasis on adopting new 
practices; with new contracts addressing at least one 
additional priority resource concern and renewing contracts 
that address at least two priority resource concerns.
    The Committee intends for the supplemental payment to 
encourage producers to adopt new, additional beneficial crop 
rotations that provide significant conservation benefits. The 
payments are to be available to producers across the country 
and should not be limited to a particular crop, cropping 
system, or region of the country. In the Southeast, peanuts are 
an example of a crop that responds well to increased rotation 
lengths, which help peanut producers, conserve water, more 
effectively control disease, and reduce inputs to control 
disease and increase productivity. Alfalfa is another important 
rotation crop in many parts of the country and plays a role in 
adding value to a producers' operation as well as providing 
natural resource benefits. The Committee recognizes sorghum's 
very significant contributions to resource conservation as a 
water-conserving crop and expects the Secretary to include 
sorghum in any supplemental payments for resource conserving 
crop rotations made available under the CSP, in addition to 
maximizing sorghum's role in achieving the purposes of the 
Regional Conservation Partnership Program and the Environmental 
Quality Incentives Program.
    The Committee believes conservation programs as implemented 
by USDA should recognize the use of innovative technology such 
as enhanced efficiency fertilizers. Enhanced efficiency 
fertilizers, which reduce nitrate losses to the environment, 
help protect water quality, and reduce greenhouse gas 
emissions, include slow- and controlled-release fertilizers 
(absorbed, coated, occluded or reacted) and stabilized nitrogen 
fertilizers (nitrification inhibitors and nitrogen stabilizers) 
and are recognized by NRCS' 590 National Nutrient Standard and 
by State regulators of fertilizers.

Environmental Quality Incentives Program (EQIP)

    The Environmental Quality Incentives Program provides cost 
share incentives to producers to meet or avoid the need for 
national, state, or local regulation. Under the Committee 
reported bill, EQIP will provide additional incentives for 
wildlife by consolidating the functions of the Wildlife Habitat 
Incentives Program (WHIP) and requiring 5% of the program 
funding to go towards wildlife habitat incentives.
    The Committee addresses the concerns heard in hearings and 
field hearings regarding beginning farmers by maintaining set-
asides for beginning farmers or ranchers and socially 
disadvantaged producers while including a priority for veteran 
farmers. Producers under these set-asides would also be 
eligible to have up to 50% of upfront project costs covered in 
advance.
    The Committee recognizes the broad responsibilities of the 
EQIP program and the great work that it does in promoting 
environmental stewardship among livestock and poultry farmers 
around the country and maintains that 60% of allocation go 
towards these producers. Within six months of enactment, the 
Committee requests from USDA a report on funds spent over the 
duration of the last Farm Bill and on whether NRCS has met its 
statutory obligations. Additionally, the Committee encourages 
NRCS to evaluate its education program and make sure that it is 
providing all potential users within each state an opportunity 
to become educated about the EQIP program and how each farmer 
can incorporate EQIP into their farm stewardship management 
plans. The Committee also requests a comprehensive breakdown of 
practices used and how each state spent its allocated funds to 
also be included in the report.
    The program maintains the Conservation Innovation Grant 
(CIG) subprogram to promote new and innovative conservation 
practices. The reported bill directs the secretary to report to 
the Committee every two years on project funding and results of 
projects authorized under CIG. The Committee intends for 
increased transparency over innovative conservation projects 
and monitoring that these innovative conservation practices are 
later incorporated into common conservation practices.
    The Committee reported bill does not reauthorize the Air 
Quality Initiative; however, the Committee intends for EQIP to 
continue to provide financial assistance to producers operating 
in nonattainment areas to make air quality improvements, 
including reducing emissions from mobile or stationary sources, 
to help them comply with Federal air quality standards and 
associated requirements or regulations.

Agriculture Conservation Easement Program (ACEP)

    The Committee reported bill addresses duplication and 
funding issues identified with FRPP, WRP, and GRP by 
consolidating their functions into one easement program for 
streamlined and flexible administration. ACEP consolidates all 
easement programs into one umbrella program with two legs: (1) 
Agriculture Land Easements (ALE) to protect grasslands or 
farmland from non-agriculture development and (2) Wetlands 
Easements to restore, maintain, and protect wetlands.
    The reported bill establishes that the federal match of ALE 
will not exceed 50% of the eligible land's fair market value. 
However, the Committee recognizes that historically the 
purchase of grasslands easements have occurred with a higher 
federal match. The reported bill gives the Secretary the 
authority to pay up to 75% of the fair market value to address 
the purchase of grassland easements.
    The Committee directs the Secretary, at a national level, 
to reserve 40% of allocations for agriculture land easements 
until 2016 and 50% in 2017. The Committee intends that states 
will have the flexibility to allocate funding as appropriate to 
address the eligible lands in their region.

Regional Conservation Partnership Program (RCPP)

    The Committee understands that a targeted approach to 
conservation practices can achieve a greater conservation 
benefit. The Committee is also cognizant of specific regions of 
the country that are under significant regulatory pressure or 
have serious concerns regarding specific natural resources. The 
Committee reported bill creates the Regional Conservation 
Partnership Program by consolidating four programs into one 
targeted initiative that leverages USDA funding and resources 
by partnering with private organizations to address natural 
resource concerns.
    The Committee eliminates the Agricultural Water Enhancement 
(AWEP) Program, the Chesapeake Bay Watershed Program, the 
Cooperative Conservation Partnership Initiatives (CCPI) 
Program, and the Great Lakes Basin Program. However, the 
functions of each of these programs are still necessary and the 
Committee intends for the Secretary to capture their functions 
in the implementation of the RCPP. Eligible conservation 
practices implemented currently through these programs should 
be continued under the new consolidated program.
    Targeted conservation initiatives will be developed on the 
local level and selected by USDA through a competitive, merit 
based application process. All resource concerns should hold 
equal weighting. The Committee encourages the Secretary to 
distribute funding equitably across the nation and to not 
ignore different natural resource concerns that may be unique 
to each region.
    The Committee strongly encourages the Secretary to only 
choose partners who have a successful history of working with 
agriculture producers.
    Additionally, USDA may designate Critical Conservation 
Areas to target conservation programs in regions under 
significant regulatory pressure. The Committee reported bill 
has set allocation levels for the state and national levels in 
addition to the Critical Conservation areas to help address 
priorities.

Funding and Administration

    Section 2607 of the Committee reported bill combines 
language on improved administrative efficiency and streamlining 
from individual programs and places it here to apply to all 
conservation programs. It expands and clarifies requirements 
for developing a streamlined conservation application process. 
It clarifies that any payment received under this title is in 
addition to and does not affect total payments that an owner or 
operator is otherwise eligible to receive. The Committee 
encourages the Secretary to significantly increase the use of 
computer-based conservation practice planning tools that 
incorporate Light Detection and Ranging elevation data to 
modernize and simplify conservation planning, improve 
efficiency of technical assistance, and improve service to 
private landowners.

                            Title III--Trade


Humanitarian assistance and agricultural development programs

    The United States provides nearly half of all food aid 
provided around the world through emergency humanitarian 
responses and non-emergency, agricultural development programs. 
The Committee reported bill modifies the general authorities in 
Title II of the Food for Peace Act to place a greater emphasis 
on projects which focus on building resiliency in the recipient 
population where food shortfalls and droughts are common.
    The Committee reported bill adjusts the maximum allowable 
level of cash assistance for administrative and programmatic 
costs in Title II of the Food for Peace Act to ensure that 
scarce cash resources are made available only for costs and 
expenses which cannot be readily funded through the 
monetization process in the first period of a new project. The 
Committee expects USAID to closely evaluate its guidance and 
approval process to ensure that direct and indirect program 
costs are clearly defined and to ensure that administrative 
costs in the programs are minimized.
    In May 2011 the Government Accountability Office (GAO) 
completed a report which cites deficiencies in the nutrition 
and quality controls of U.S. food aid commodities. Included in 
this report are recommendations that USAID review food aid 
packaging, track food aid quality throughout the supply chain, 
and ensure that available food aid commodities meet the 
nutritional needs of recipients. The Committee notes that USAID 
has sufficient and specific authority to address the 
recommendations made by GAO, and expects USAID to build strong 
public-private partnerships with food manufacturers and other 
stakeholders to more quickly address the deficiencies 
highlighted in the May 2011 report using currently available 
studies on food aid quality and nutrition. The Committee 
reported bill reauthorizes funding at a lower level for these 
activities to encourage USAID to focus on deploying food aid 
products already developed under this authority.
    The Committee reported bill directs USDA and USAID to 
establish a formal mechanism by which new products will be 
approved through both agencies in a timely manner. In the view 
of the Committee, USDA and USAID are not coordinating 
sufficiently and should quickly modify the interagency process 
to ensure new food aid commodities are made available to 
appropriately target recipient populations. In support of 
efforts to provide appropriate commodities to vulnerable 
populations, authority is extended for shelf-stable, 
prepackaged foods and micronutrient fortification of food aid 
commodities.
    The Committee notes that while USAID places significant 
burdens for success of programs upon implementing partners and 
other stakeholders, feedback from these groups through the Food 
Aid Consultative Group (FACG) is not adequately incorporated 
into program guidelines. The Committee reported bill instructs 
USAID to give sufficient notice of changes to the FACG before 
new guidance is finalized, and requires new guidance to be 
promulgated in a timely manner after any changes to the Food 
for Peace Act.
    Authority is extended for the Famine Early Warning System 
Network to provide advance information to more quickly and 
effectively respond to an emerging crisis. However, the 
Committee is disappointed in efforts by USAID to complete 
implementation of new information technology systems authorized 
in previous legislation. No additional funding is provided for 
new information technology systems, and the Committee fully 
expects USAID to complete development and management of those 
systems without additional Food for Peace resources.
    Funding is continued for additional monitoring and 
evaluation of programs at a level which reflects resources 
available for Food for Peace programs. The Committee reported 
bill also requires that USAID report on the monitoring and 
evaluation activities actually conducted. In 2009 GAO concluded 
that monitoring of programs was inconsistent and that program 
management was not modified to reflect information gained from 
the monitoring and evaluation conducted by or for USAID. 
Through provisions in the Committee reported bill, the 
Committee expects USAID to make significant improvements in 
program guidance based on the monitoring and evaluation 
conducted.
    In June 2011 GAO reported on inefficiencies and adverse 
impacts of monetization. The Committee agrees that both USDA 
and USAID should have consistent policies governing both 
agencies monetization activities. The Committee reported bill 
requires that USAID consider the benefits of monetization when 
considering a proposal under Food for Peace. The Committee 
notes existing requirements for USDA and USAID to approve only 
those sales which will not disrupt the usual marketing and 
processing of commodities in the recipient country, and 
clarifies that commodities should be sold at a fair market 
value.
    Recognizing the necessity of responding quickly to 
humanitarian emergencies, authority is increased for the 
prepositioning of food aid commodities which allows USAID to 
increase the number of prepositioning sites, as appropriate.
    The Committee reported bill reduces the authorized level of 
funding for the Food for Peace Act while extending sufficient 
authority to provide funding above the ten-year average 
appropriation. The Committee recognizes the importance of non-
emergency agricultural development programs to create resilient 
communities in vulnerable populations, and extends minimum 
levels of funding to support development activities.
    The Committee is disappointed that the report on local and 
regional purchase of food aid commodities, which was required 
under previous legislation, was not made available to the 
Committee prior to consideration of the bill as introduced. The 
report was expected to quantify the challenges associated with 
relying on purchases of foreign commodities to address acute 
humanitarian needs. The Committee also recognizes that more 
than $300 million in local purchases of commodities is 
routinely carried out under authorities contained in other 
legislation.
    The Committee reported bill increases authority for the 
John Ogonowski and Doug Bereuter Farmer-to-Farmer Program 
contained in the Food for Peace Act to extend the program which 
mobilizes U.S. volunteers from the agricultural industry, 
universities, and non-profit organizations to assist their 
counterparts in developing and emerging economies.

Trade Programs

    The U.S. agricultural industry is highly dependent on 
exports, with nearly a third of all cash receipts generated 
from international markets. The Committee reported bill ensures 
that U.S. producers are able to capitalize on these 
opportunities by making strategic investments in programs 
designed to address foreign barriers to U.S. exports. Increased 
margins for U.S. farm output translates to greater capital 
flows back to rural America, supporting farms and their rural 
communities.
    The Market Access Program is reauthorized to provide 
assistance on a cost-share basis, targeting small businesses, 
famer cooperatives, and non-profit trade organizations. Private 
contributions are estimated at 60 percent of total annual 
spending on trade promotion and market development, further 
increasing the effectiveness of promotional activities.
    Additional programs which are reauthorized include the 
Foreign Market Development Program which gives preference to 
trade groups which represent an entire industry, Technical 
Assistance for Specialty Crops to address non-tariff trade 
barriers for specialty crop exports, and the Emerging Markets 
Program to promote generic U.S. exports in emerging economies.
    The Committee reported bill also reauthorizes the GSM -102 
program while preserving USDA's authority to manage usage of 
the program to meet certain administrative goals, including the 
ability to adjust tenor and fees associated with guarantees 
made available under the program.
    The Committee recognizes that exports are vitally important 
to the U.S. economy. Given the need to spur economic growth and 
job creation the Committee reported bill amends the Department 
of Agriculture Reorganization Act of 1994 to provide for the 
establishment of an Under Secretary of Agriculture for Foreign 
Agricultural Services. The agricultural sector has been and 
continues to be a major contributor to the nation's overall 
level of exports and is one of only a few sectors of the 
economy that traditionally has had a positive net trade 
balance. However, U.S. agricultural exports face increased 
barriers overseas.
    The Committee reported bill meets the need to address 
tariff and non-tariff trade barriers for U.S. agricultural 
exports by providing a full time, singular focus on trade and 
foreign agricultural programs. The Committee expects this new 
focus to allow more effective coordination and to provide a 
single point of contact for resolving internal and external 
trade and foreign agricultural affairs issues through a high 
level of representation for agricultural trade issues within 
the Executive Branch and with Congress, stakeholders, foreign 
governments and international bodies. The Committee does not 
intend for this provision to create the need for additional 
personnel or appropriations for USDA.

                          Title IV--Nutrition


Supplemental Nutrition Assistance Program (SNAP)

    The Supplemental Nutrition Assistance Program (SNAP), 
formerly known as the food stamp program, has seen 
unprecedented growth over the past ten years and today accounts 
for almost 80 percent of the Committee's mandatory spending. 
Consequently, the Committee agreed to make reforms in SNAP that 
resulted in a reduction of $16 billion over ten years, which is 
a two percent reduction to the program.
    The Committee views these changes as part of its ongoing 
responsibility to ensure that SNAP is of the highest integrity. 
The provisions passed by the Committee will close program 
loopholes; reduce waste, fraud and abuse; and ensure that the 
program continues to serve those who are in need of food 
assistance according to the rule of law. It is the Committee's 
clear intent that families who lawfully qualify for assistance 
under SNAP law are not prevented from receiving their benefits. 
The changes made to SNAP in the 2008 farm bill remain fully 
intact and will continue to benefit SNAP participants.
    The Committee agrees that SNAP provides important support 
for many Americans and these reported provisions further 
protect the program. In order to ensure the integrity of this 
program, the Committee will continue to refine SNAP to better 
target valuable benefits to serve those in need, while making a 
reasonable reduction in the deficit.

Making Common Sense Reforms and Closing Program Loopholes

    The FARRM Act makes common sense reforms to SNAP 
eligibility. Since passage of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996, states have had 
the option of using ``categorical eligibility,'' or automatic 
eligibility, to streamline SNAP administration for those 
receiving benefits from other low-income assistance programs. 
These other programs are Temporary Assistance for Needy 
Families (TANF), Supplemental Security Income (SSI), or other 
state general assistance programs. TANF assistance can be in 
the form of cash or non-cash benefits (i.e. informational 
brochures, or access to an informational 800-number). When 
states implement ``broad-based'' categorical eligibility, they 
may permit households to use the asset and gross income test of 
the alternate assistance program. As of May 2012, 43 
jurisdictions (40 States, the District of Columbia, Guam, and 
the U.S. Virgin Islands) have implemented broad-based 
categorical eligibility. These jurisdictions generally make all 
households with incomes below a state-determined income 
threshold eligible for SNAP.
    The bill would restrict categorical eligibility to only 
those households receiving cash assistance from SSI, TANF, or a 
state-run general assistance program, saving taxpayers $11.5 
billion over ten years. This would disqualify those merely 
receiving a TANF-funded brochure, a referral to an ``800'' 
number telephone hotline, as well as other non-cash assistance. 
It is estimated that 3.9 percent of the 46.2 million people 
currently enrolled in SNAP would be affected by this provision. 
Those who no longer have categorical eligibility status under 
the amended provision would have the opportunity to be reviewed 
for SNAP eligibility independent of their status as a TANF 
beneficiary. And those who receive cash assistance from SSI, 
TANF, or a state-run general assistance program will still be 
categorically eligible for SNAP.
    Next, the FARRM Act closes a loophole in SNAP regarding how 
Low Income Home Energy Assistance Program (LIHEAP) payments 
interact with SNAP benefit calculation. Current law allows low-
income households receiving any amount of LIHEAP assistance, 
even a nominal payment, to automatically qualify for the SNAP 
Standard Utility Allowance (SUA). In the last several years, 
recipients in approximately 16 states and the District of 
Columbia have qualified for the SNAP SUA under this provision.
    Under current law, if a participant received $1 in LIHEAP, 
they can automatically deduct the SUA from their income. 
Therefore, their net income was reduced, and they subsequently 
received a higher amount in SNAP benefits. Under the 
Committee's reported bill, a household must receive a minimum 
LIHEAP payment of $10 per year to qualify for the SUA 
deduction, thus saving the taxpayers $4.5 billion over ten 
years. The revised provision will not affect any household 
receiving traditional LIHEAP assistance or any household that 
can demonstrate an out-of-pocket utility cost.
    The Committee also eliminated state performance bonuses, 
saving $480 million over ten years. States are responsible for 
administering the SNAP program and are legally bound to process 
applications in a timely manner, ensure households receive the 
accurate amount of SNAP benefits, and make certain the program 
is administered in the most effective and efficient manner. In 
this economic climate the Committee believes it is very 
difficult to justify awarding states bonuses for practices that 
should be the daily operating procedure.

Cracking Down on Waste, Fraud and Abuse

    The FARRM Act makes significant strides to crack down on 
waste, fraud and abuse within SNAP. The Committee was concerned 
by press reports of two lottery winners, both receiving more 
than $1 million in winnings, who were also found to have been 
receiving SNAP assistance. The bill includes a provision that 
would put an end to millionaire lottery winners receiving SNAP, 
and will prevent them from receiving any benefits if they do 
not meet SNAP eligibility requirements. The Committee is aware 
that the Secretary must define the terms ``substantial lottery 
or gambling winnings'' in order to carry out this provision. 
The Committee intends for the Secretary to establish a 
reasonable threshold for such winnings that balances the need 
to maintain strong program integrity, the ability of states to 
administer the provision, and the burden on SNAP households.
    Furthermore, the legislation requires that state SNAP 
Employment and Training (E&T) programs be limited to assisting 
only those college students enrolled in specific career and 
technical education courses or basic adult education, remedial, 
and literacy courses. The Committee was alarmed to learn that 
some states were taking great liberty in administering their 
SNAP E&T programs; therefore, the Committee took steps to 
ensure only those college students meeting the specified 
criteria could be served by a state's SNAP E&T program. To 
further improve the accountability of the SNAP E&T program, the 
bill requires states to report on how their programs are 
assisting SNAP participants in gaining skills, training, and 
work, or experience that leads to employment.
    The legislation also reduces fraud at retail stores by 
requiring a more rigorous standard for stores to become 
eligible to process SNAP benefits. Retailers will be required 
to stock more foods like fruits and vegetables, with the 
Committee's expectation that retailers can meet this 
requirement by providing products that are fresh, frozen or 
canned. Retailers will be required to pay 100 percent of the 
costs for acquiring and implementing EBT point-of-sale 
equipment. By including this provision, the Committee is 
targeting fraud within the program, and does not intend for 
credit card companies, banks, or others to impose any 
additional fees in regard to the acceptance of SNAP EBT 
benefits. The bill terminates the use of manual vouchers except 
in such circumstances as a disaster or EBT system failure. 
Manual vouchers can serve as a quick-response in emergency 
situations, and the Committee expects vouchers to be used in 
the event of a disaster when power is unavailable for an 
extended period of time.
    The legislation bans stores from participating in SNAP if 
they have significant sales of prohibited items like alcohol 
and tobacco. The Committee is aware that some stores are 
concerned about remaining eligible for the program under this 
change; however, the Committee provides the Secretary with 
discretion to exempt stores from this provision if the store is 
deemed necessary to serve SNAP recipients. The Committee 
expects the Secretary to ensure participants have a choice of 
stores and that there are sufficient options in underserved 
areas.
    Additionally, the Committee expects the Secretary to work 
with retailers and relevant stakeholders in developing 
regulations to implement a unique terminal identification 
system. Credit card associations are considering implementation 
of this practice across the entire retail industry in the near 
future, and it is imperative that the Secretary work with SNAP-
approved retailers to ensure there are no additional costs or 
burdens that are duplicative or inconsistent with common 
commercial practices.
    Recognizing that issuance of SNAP benefits to all 
participants on the same date within a month creates many 
challenges both for suppliers and retailers, the Committee 
directs the Secretary to begin working with states to stagger 
the monthly issuance of SNAP benefits across an entire month 
for new beneficiaries. To prevent disruption, the Committee 
does not expect states to make immediate changes for current 
beneficiaries nor does the Committee suggest a change in 
current policy to allow for more than once-per-month issuance 
of benefits. The Committee encourages the Secretary to work 
with all stakeholders, particularly those within states that 
are in the process of staggering SNAP benefits, to ensure 
distribution is of the greatest benefit to the economy at the 
least cost.
    The FARRM Act recognizes the need to increase the 
Secretary's oversight of those states and territories choosing 
to operate a Restaurant Meals Program strictly for the purpose 
of serving homeless, elderly and disabled participants. 
Currently, states and territories have the option of running 
this program without seeking approval from the Department, 
which has raised the Committee's concern over proper use and 
implementation of this authority. The bill requires those 
states and territories to submit their request as part of their 
state plan and gain approval from the Department before 
implementing a Restaurant Meals Program. The plan must 
demonstrate a need for such a program along with effective 
control measures. If states and territories are found not 
operating the program in a proper manner or do not provide 
sufficient justification for establishing a program, it is the 
Committee's expectation that the Secretary will suspend or not 
approve such programs.
    The Committee is concerned about the use of funds to 
advertise and promote the use of SNAP through the use of 
national outreach funds. Recent news articles have described 
SNAP advertisements airing on the radio and television as well 
as information on the Department's website encouraging the 
enrollment of participants by suggesting that community 
outreach partners ``throw a great party.'' With historically 
high SNAP enrollments, the Committee directs these outreach 
funds to be used towards The Emergency Food Assistance Program 
(TEFAP).
    The bill also expands upon the bipartisan work begun by the 
Committee on Ways and Means Human Resources Subcommittee to 
allow data both within and across key federal assistance 
programs to operate more efficiently. These standardization 
activities promote transparency, flexibility, and consistency 
so data can be shared across the various information technology 
platforms established by federal and state agencies, increasing 
administrative efficiency and reducing improper payments. This 
provision is not intended to provide additional authority to 
standardize data, but to drive the process to occur across 
multiple federal agencies.
    The bill includes a provision that allows SNAP benefits to 
be used for the purchase of community-supported agriculture 
(CSA) shares. The Committee is aware that the Secretary 
currently permits CSA businesses to participate in SNAP. 
Farmers organized as a CSA can participate in a manner similar 
to farmers' markets; SNAP recipients use SNAP benefits and 
receive eligible food items from the CSA at the time product is 
delivered (i.e. at the point-of-sale). Non-profit CSAs are 
permitted to accept SNAP benefit payment up to 14 days in 
advance of product delivery. The Committee expects that the 
Secretary will administer this provision in accordance with 
current practice and procedures for authorized community-
supported agriculture businesses.

Additional nutrition programs

    Food banks have been successful in effectively utilizing 
federal commodities and securing private sector donations in 
order to feed hungry Americans. However, local food banks have 
been struggling to provide enough food to needy families in the 
current economic climate. Recognizing the challenges food banks 
are facing, the FARRM Act provides an additional $25 million 
per year for The Emergency Food Assistance Program (TEFAP).
    Furthermore, it is the intent of the Committee that the 
Secretary purchase and deliver emergency foods so as to 
maximize the continuity of food product flow to emergency 
feeding organizations throughout the year to better enable them 
to meet the need for assistance in local communities, 
particularly in times of high demand. To meet this objective, 
the Committee strongly encourages the Secretary to review 
potential bonus and surplus removal purchases on a real-time 
basis and adjust the timing of mandatory food purchases and 
deliveries to address periods when bonus and specialty crop 
deliveries are expected to be low. Having a more balanced 
delivery of both mandatory and bonus food purchases will enable 
emergency feeding organizations to better serve those in need. 
The Committee also intends for the Secretary to consider the 
cost of regulatory changes on the operation of emergency 
feeding operations in order to prevent such regulatory changes 
from adversely affecting the services provided by the emergency 
feeding organizations. The Committee encourages the Secretary 
to work with emergency feeding organizations to address these 
concerns.
    The FARRM Act makes changes to the Commodity Supplemental 
Food Program (CSFP) that will transition this program into 
serving only the elderly while allowing the small percentage of 
women and children currently enrolled in the program to 
continue to receive services until they have exceeded the age 
of eligibility. The Committee intends that individuals 
participating in CSFP on the day immediately prior to the 
effective date of this provision shall remain eligible until 
such time as an individual is no longer eligible for the 
program in any age or category. For example, a participating 
infant on effective date may remain in the program as he or she 
ages into subsequent age/categories, if otherwise eligible. 
Women and children will all continue to be served by the 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC), which is more suited to their dietary needs.
    The Committee agreed to increase funding for Community Food 
Projects by an additional $10 million per fiscal year, with 
half of this increased funding being designated to projects 
that help communities provide incentives for low-income 
individuals to purchase fruits and vegetables. The Committee 
recognizes that there has been tremendous growth in the 
purchase of locally grown fruits and vegetables. Rather than 
duplicate programs, the Committee increased funding for an 
existing program that is flexible and has been successful in 
helping communities address the food and nutritional needs of 
its citizens.
    The FARRM Act also removes the word ``fresh'' from the 
Fresh Fruit and Vegetable Program. The purpose of the program 
is to encourage the increased consumption of fruits and 
vegetables in a variety of forms in elementary schools with a 
high number of low-income students. This change will allow 
elementary schools participating in this program to maximize 
their funding by having the option of purchasing fresh, frozen, 
canned, and dried fruits and vegetables. Fruits and vegetables 
in all forms, as emphasized by the 2010 Dietary Guidelines for 
Americans, provide a variety of micronutrients and fiber that 
are important to maintaining overall health. The Committee 
recognizes the challenges schools face in the storage and 
preparation of fresh foods, and to accommodate those needs, the 
bill provides schools with greater flexibility while still 
serving school children with a variety of nutritious produce. 
The Committee expects the Secretary to inform states and 
schools of this change to the program through notification.
    Additionally, the Committee believes that participants in 
all federally funded nutrition assistance programs deserve 
access to a variety of safe and nutritious food. The 2010 
Dietary Guidelines for Americans recognized that Americans' 
consumption of fruits, vegetables, and fiber is below target, 
and all forms of these products increase the intake of 
essential vitamins and nutrients. The Committee encourages the 
Secretary to include all forms of fruits, vegetables and 
beans--canned, fresh, frozen, and dried--in nutrition 
assistance programs, and to educate program participants that 
all forms of these foods can help them meet the Dietary 
Guidelines for Americans.
    The bill includes a pilot program within the Department of 
Defense (DOD) Fresh Fruit and Vegetable Program. This pilot 
would allow up to five states to use their DOD Fresh funding 
allocation to source local produce. The Committee expects 
states that are selected to participate in this pilot to use 
this funding solely for the procurement of local fresh fruits 
and vegetables for school children. The Committee also intends 
for the pilots to be carefully evaluated in order to help 
inform future national policy.

                            Title V--Credit

    The House Agriculture Committee understands that access to 
credit is crucial to America's economy as a whole, but more 
importantly to the health and success of family farms, ranches, 
and the entire agricultural sector. To that end, the FARRM Act 
provides greater flexibility to the Farm Service Agency (FSA) 
in facilitating credit programs.
    Under current law, FSA provides Farm Ownership Loans to 
owners of farms. However, when a family forms a separate entity 
for transition or liability reasons, Farm Ownership Loans are 
no longer available to them. By adding ``other legal entities'' 
to the list of eligible borrowers, the Committee reported bill 
enables FSA to assist qualified operating entities with Farm 
Ownership Loans even when the entity does not own real estate 
or is a member of the operating entity thus providing 
flexibility and greater participation to the program.
    The Committee reported bill provides clarification and 
flexibility to the Secretary to adjust experience requirements 
to avoid excluding those who are qualified, but may not be able 
to meet the current 3-year farming or ranching experience 
requirement, thus enabling more young or beginning farmers and 
ranchers to participate in the program.
    The Committee reported bill increases the Conservation Loan 
guarantee amount from 75 to 90 percent (a percentage similar to 
other loan programs), encouraging a larger participation rate 
for beginning farmers and ranchers, while continuing to protect 
priority for beginning and socially disadvantaged farmers and 
ranchers.
    In an effort to provide greater participation for beginning 
farmers and ranchers and increased flexibility to FSA, the 
Committee reported bill increases the maximum loan value for 
the Down Payment Loan Program from 45 percent of $500,000 to 45 
percent of $667,000.
    Throughout last summer's audit hearings the Committee found 
several areas in which FSA could streamline certain 
administrative mandates. As a result, the Committee repealed 
the Mineral Rights Appraisals requirement for real estate 
loans. Moving forward, this change should reduce costs for both 
the borrower and FSA as third party appraisals could be used in 
some cases instead of FSA having to obtain a new appraisal that 
specifically includes the mineral value.
    Under the current statute, delinquent youth loan borrowers 
are subject to provisions of the Debt Collection Improvement 
Act. This can result in undue hardship, as a youth loan 
recipient could be rendered ineligible for student loans and 
grants, which may prevent them from obtaining higher education. 
The Committee reported bill directs the Secretary, on a case-
by-case basis, to waive the personal liability and cancel any 
remaining debt in situations in which failure was beyond the 
youth's control (i.e. project failure due to disease or natural 
disaster).
    The Committee reported bill directs the Secretary to 
establish a microloan program to better serve young, beginning, 
veteran and urban farmers and ranchers.
    The Committee reported bill directs FSA to prioritize joint 
financing agreements and Down Payment Loans within the Direct 
Farm Ownership Loan program in order to maximize the number of 
borrowers served for a given level of appropriations.
    Under current law, beginning farmer ownership loans are 
limited to applicants who do not own real estate in excess of 
30 percent of the median farm size in the county. In some 
counties however, the median size is so small that an applicant 
cannot qualify if they own any real estate. To that end, the 
Committee reported bill reconciles the median farm size 
limitation by replacing ``median'' with ``average''. In almost 
every county, the average is greater than the median farm size. 
This allows more otherwise qualified applicants to receive 
beginning farmer ownership loans.
    Most FSA loans are available to all agriculture producers, 
no matter if they reside in rural, suburban, or urban areas. 
However, FSA Youth Operating Loans are currently only available 
to youth (ages 10-20) who live in rural areas (areas with 
50,000 or less residents). The Committee reported bill removes 
the ``rural residents'' requirement allowing all youth the 
opportunity to receive a Youth Operating Loan similar to all 
other FSA loans, while continuing to require that youth 
borrowers would need to be under the supervision of an 
organization, such as 4-H, FFA or Boys/Girls Clubs.
    The Committee reported bill makes changes to the loan 
program for purchasers of highly fractionated tribal land to 
ensure that the program meets the needs of tribal members.

                      Title VI--Rural Development

    The Committee reported bill addresses fiscal constraints by 
reducing authorizations for appropriations by more than $1.5 
billion over five years. Based on discussions with 
stakeholders, and in conjunction with the reduced number of 
programs, the Committee expects this action will ensure scarce 
funds are concentrated in the most effective programs.
    In testimony before the House Agriculture Subcommittee on 
Rural Development, Research, Biotechnology and Foreign 
Agriculture, the Government Accountability Office (GAO) 
responded to several critical issues in programs operated by 
USDA. Among these was the impact that funding set-asides have 
on the fragmentation of rural development programs, and the 
overlap or duplication across programs. Additional testimony by 
witnesses representing counties, municipalities, and non-profit 
rural development organizations cited both the confusing number 
of programs and the burden of applying for assistance as a 
major impediment to accessing rural development funding at 
USDA. The Committee agrees with a number of the GAO's 
conclusions and the concerns of municipal organizations. The 
Committee reported bill addresses these concerns by eliminating 
thirteen programs, requiring the Secretary to collect 
information on the success of loans and grants over time, and 
requiring the Secretary to create simplified applications.
    GAO also highlighted a need for measuring the effectiveness 
of rural development programs. Committee passed bill addresses 
this need by requiring the Secretary to collect data regarding 
economic activity created through the loans and grants provided 
to rural communities. The Committee expects these efforts will 
create a harmonized baseline of information for effective use 
by USDA and Congress. It is the intent of the Committee to 
integrate this collected information with program changes and 
rulemaking.
    In testimony reviewing rural development programs in 
advance of formulating the Committee reported bill, 
stakeholders spoke to the importance of regional collaboration 
to create effective outcomes. The Committee recognizes that the 
Secretary can coordinate the efforts of USDA with other Federal 
agencies, and expects the Secretary to ensure rural development 
funds are carefully targeted for the greatest impact possible. 
The Committee reported bill also addresses regional 
collaboration through the reauthorization of the Delta Regional 
Authority, the Northern Great Plains Regional Authority, and 
the State Rural Development Councils.
    Testimony presented to review broadband programs clearly 
indicated a need for transparency through the application 
process for incumbent providers to respond appropriately to 
applications for new funding in their service territory. The 
Committee reported bill addresses this need by authorizing the 
Secretary to establish a process by which incumbent providers 
may submit comments.
    The Committee recognizes the importance of ``Main Street'' 
businesses to rural communities, and that the recent economic 
downturn has reduced the affordability of credit in rural 
areas, putting considerable strain on these small businesses. 
The Committee reported bill addresses this issue through 
changes to the Business & Industry (B&I) Loan Program intended 
to ensure working capital is an eligible use of funds. The 
Committee reported bill also provides flexibility for the 
Secretary to consider accounts receivable for the purposes of 
collateral to allow lenders to help meet the capital needs of 
small businesses in rural areas. The Committee encourages USDA 
to examine additional ways to guarantee lending to small brick-
and-mortar, community-owned businesses, such as an increased 
loan guarantee percentage for smaller loans, a streamlined 
process for making B&I loans of less than $250,000, and making 
operating lines of credit eligible as a program use. 
Additionally, the Committee encourages USDA to better 
coordinate with the Small Business Administration on outreach 
related to the B&I loan guarantee program to rural lenders.
    The Committee recognizes that with over $3 billion in 
pending applications for water and wastewater projects 
throughout rural America, reauthorization of water 
infrastructure programs is a vital component to rural economic 
development. Access to water systems promotes the health of 
rural communities and attracts businesses to invest in 
communities which are well supported by critical 
infrastructure. To address the current backlog, the Committee 
passed bill directs USDA to maximize the use of guarantees 
through private or cooperative lenders for projects in larger 
communities. The Committee expects these provisions to leverage 
available funds to serve more communities than might otherwise 
be served solely through direct loans.

          Title VII--Research, Extension, and Related Matters


Option to determine status

    The Committee recognizes that for institutions with degree 
programs in the agricultural sciences that qualify as a 
Hispanic Serving Institution under the Higher Education Act of 
1965, the subsequent automatic qualification as a Hispanic 
Serving Agricultural College or University then precludes that 
institution from qualification as a Non-Land-Grant College of 
Agriculture. The Committee does not take a position on how an 
institution should be designated, but has provided that 
Hispanic Serving Institutions with degree programs in the 
agricultural sciences may make a one-time choice which 
designation they wish to be considered under for purposes of 
access to program funding eligibility.

National Agricultural Research, Extension, Education, and Economics 
        Advisory Board

    The National Agricultural Research, Education, Extension, 
and Economics Advisory Board (NAREEEAB) was created in 1996. 
The NAREEEAB replaced an existing user's advisory board and 
consolidated the functions of numerous other boards, task 
forces and councils. This advisory board has since served as 
the principal advisory mechanism to the Secretary, Under 
Secretary, agency administrators and the Congress on all 
aspects of the Research, Education and Economics (REE) mission 
area.
    In creating the NAREEEAB, the Congress intended for this 
board to recommend policies, identify short and long term 
national priorities for REE programs, and to evaluate program 
results and effectiveness among other assigned duties. The 
Congress has since added multiple duties and consultative 
functions to the Board's mandate. In doing so, the Committee is 
aware that the work load and learning curve of the volunteer 
members is high. It has become apparent to the Committee that 
it can take several years for new board members to become 
comfortable not only with the diverse subject matter under 
review, but likewise the law and administrative functions they 
are required to evaluate. While the statute defines the length 
of a Board member's individual term, the Congress has never 
included nor intended for board members to be subject to a 
limit on the number of terms they can serve. Unfortunately, the 
Committee has become aware that USDA has instituted an 
arbitrary term limit policy on Board members that inhibits the 
individual members and the overall Board's effectiveness. The 
Committee strongly encourages the Secretary to reverse this 
policy.
    Among the duties of the Board previously assigned was the 
responsibility to review and make recommendations on procedures 
for merit review of competitive grant proposals. The Committee 
has become aware that the USDA initially requested comments of 
the NAREEEAB following enactment of the merit review 
requirement in 1998 but has never revisited the question. The 
Committee is concerned that the USDA has misunderstood the 
legal mandate for merit review and has included clarification 
that for purposes of this review, merit is to be equated with 
the relevancy of the research or extension project to the 
community it is meant to serve. The Committee envisions that 
the process of evaluating a grant application would start with 
scientific peer review, and those applications deemed to be of 
sufficient scientific quality would then be reviewed and 
awarded on the basis of merit and relevancy. The Committee has 
further required that the NAREEEAB consult with industry 
stakeholders in developing their guidance and that the USDA 
consult on an ongoing basis with the NAREEEAB to ensure that 
these reviews are functioning as intended.
    The Committee recognizes the interest in growing 
agricultural commodities in less traditional production areas. 
As such, the Committee encourages the Secretary in consultation 
with the NAREEEAB, in both the intramural research carried out 
by the Agricultural Research Service and in the competitive 
grants programs carried out through AFRI and other authorities, 
to carry out and fund research into the unique situations 
facing producers in urban areas. These unique situations may 
include reclaiming land previously used for industrial purposes 
or neglected residential areas, and addressing needs such as 
the remediation of soils to make them capable of producing 
agricultural commodities for human consumption.

Veterinary services grant program

    Our veterinary workforce is responsible for ensuring that 
the food we eat is safe, but they are facing a critical 
shortage in the public, private, industrial and academic 
sectors, and the problem is growing. Our Nation's large-animal 
vets are truly on the front lines of food safety, public 
health, animal health and national security. The demand for 
large-animal veterinarians is increasing, and lack of these 
specialists in many areas of the country will continue to put 
our agricultural economy and the safety of our food supply at 
risk.
    Since the fall of 2000, the Committee on Agriculture has 
worked on ways of resolving the serious veterinary shortage 
problem confronting many rural communities. With the passage of 
the National Veterinary Medical Service Act in December of 
2003, a program was finally authorized to incentivize large 
animal veterinarians to practice in communities that USDA 
designated as veterinarian shortage areas. With this program in 
place, large animal veterinarians are able to apply on a 
competitive basis for educational loan repayment assistance in 
exchange for their commitment to practice in shortage areas.
    To the extent that the loan program is successful, it's 
important to consider that this was just the first step. While 
this assistance will be very helpful in attracting 
veterinarians to these communities, there remain gaps in 
veterinarian recruitment, attracting and training technical 
support staff, and simply meeting the long-term costs of 
operating veterinarian practices in these communities.
    The Veterinarian Services Investment Act is meant to 
address these secondary needs and is designed to complement the 
loan repayment program to help large animal veterinarians 
become established in these rural communities.
    This bill recognizes and addresses a real problem in rural 
America. This legislation will authorize grants to address 
workforce shortages based on the needs of underserved areas. 
For example, grants could be used to recruit veterinarians and 
veterinary technicians in shortage areas and communities. It 
could add veterinarians expanding and establishing practices in 
high-need areas. It could establish mobile portable clinics and 
televet services and establish education programs, including 
continuing education, distance education, and factor 
recruitment in veterinary science.

Grants and fellowships for food and agriculture sciences education

    The Norman E. Borlaug International Agricultural Science 
and Technology Fellowship Program (Borlaug Fellowship Program) 
helps developing countries strengthen agricultural practices by 
providing scientific training and collaborative research 
opportunities to visiting researchers, policymakers, and 
university faculty. The Borlaug Fellowship Program has provided 
over 500 fellowships for agricultural professional from 64 
developing countries worldwide. Currently, Fellowships can run 
from six to twelve weeks depending on research topic and 
funding availability. The Committee is concerned that the 
length of the fellowships currently offered may be too brief in 
term in some instances to provide real training and research 
opportunities. The Committee understands that a brief short 
term fellowship is an effective method to provide certain 
specific training and research opportunities. However, the 
Committee would urge the Secretary to modify the implementation 
of the program to also provide longer term training and 
collaborative research opportunities to address those instances 
where a long term fellowship would allow greater in depth 
training and research.

Extension research

    The Cooperative Extension System is a nationwide, non-
formal educational network. Each state, territory, and the 
District of Columbia has an office at its land-grant 
universities and a network of local or regional offices which 
are staffed by experts who provide practical, research-based 
education to agricultural producers, small business owners, 
youth, consumers, and others in rural and urban communities. 
The Committee encourages the Secretary to ensure that 
Cooperative Extension is effectively utilized to deliver the 
educational component of USDA programs. The Secretary is also 
encouraged to engage in discussions with other federal 
departments and agencies to consider ways to use the 
Cooperative Extension to deliver education for other federal 
programs as practicable.

Auditing, reporting, bookkeeping, and administrative requirements

    The Committee is concerned about the increasing use of 
assessments, fees, and higher indirect costs rates imposed on 
its university partners by the Agricultural Research Service 
(ARS). These university partners play a major role in achieving 
ARS research priorities and objectives. In a time of scarce 
budgetary resources, ARS must ensure limited research dollars 
are maximized and administrative costs are reduced to the 
fullest extent possible. In recent years, ARS has imposed a 
variety of administrative assessments on its university 
partners, effectively reducing funds intended for important 
research projects. The Committee expects ARS to operate within 
historical administrative cost parameters, namely by imposing a 
administrative cost cap not exceeding four percent. All 
administrative assessments, fees, dues, or charges, of any 
type, must be included within this overall administrative cost 
cap. ARS must administer its programs more efficiently to 
ensure valuable research funds are maximized so it may continue 
to maintain a robust agricultural research enterprise. The 
Committee encourages ARS to continue university research 
partnerships to ensure our nation's premier educational and 
clinical institutions play a major role in achieving ARS and 
congressional research objectives.

Matching funds requirement

    The use of matching funds has proven to be an effective 
tool in leveraging limited Federal resources with commitments 
from those benefitting from agricultural research and 
extension. Unfortunately, the application of these policies by 
the U.S. Department of Agriculture (USDA) has been arbitrary 
and inconsistent.
    Efforts by the Committee to develop a comprehensive policy 
on research and extension matching funds originated during the 
development of the 2008 farm bill. At the time, it was noted 
that as research programs have been authorized or modified, the 
incorporation of matching requirements was done in a subjective 
manner. An effort was initiated during the 2008 farm bill 
conference to harmonize the matching requirements, but due to 
the complexity of the task and time constraints, the effort was 
dropped with the understanding that the Committees and USDA 
would undertake a stakeholder process designed to provide 
recommendations in advance of the 2012 farm bill. Unfortunately 
that process never materialized after the 2008 bill.
    The House Agriculture Committee has maintained an interest 
in engaging stakeholders in a discussion about how to harmonize 
these policies to improve consistency and transparency in their 
application. Several requests have been made for suggestions on 
how best to approach this issue and the consensus seemed to be 
that the Committee should propose a discussion draft. The 
language included in Committee legislation was the result of 
technical assistance received by the USDA and is meant to begin 
this discussion.
    As part of the discussion that has already commenced, it is 
important to highlight what the provision does, as well as what 
it does not do.
    The provision, once implemented would apply to competitive 
grants for extension or applied agricultural research. These 
grants would be subject to a 100 percent match of cash or in-
kind support from any other source, but only if the grant is 
specific to a state or commodity. The Secretary would have the 
authority to waive the matching requirement if the grant is 
deemed to be a national priority using the process established 
for priority setting conducted as part of the statutory mandate 
of the National Agricultural Research, Extension, Education and 
Economics Advisory Board (NAREEEAB). The use of the NAREEEAB in 
this way is not without precedent. Under the Organic Food 
Production Act, the authority of the Secretary to create a 
National List of approved and prohibited substances that shall 
be included in the standards for organic production and 
handling is limited to the advice of the National Organic 
Standards Board.
    Current matching fund policies, such as that under the 
Agricultural and Food Research Initiative impose a requirement 
of a non-Federal match to commodity specific grants that are 
not of national scope, but under a plain reading of the law 
would apply to regional collaborative grants involving multiple 
States.
    It is the intent of the Committee that the match policy 
allow for cash or support from ``any'' other source, including 
other federal funds. However, we are aware that under this 
statutory language such funds would have to be consistent with 
the purpose of both grants. As stated above, this language is 
meant to begin discussions on important issues surrounding a 
universal match policy.
    The Committee is aware of both the difficulty in meeting 
these requirements and the inconsistency in which they are 
applied and has attempted to develop a policy that is 
reasonable, transparent and consistently applied across the 
universe of USDA competitive agricultural research and 
extension grant programs.

Repeal of National Agricultural Weather Information System

    The Committee is aware that advanced weather forecasts 
using Tropospheric Airborne Meteorological Data Reporting 
(TAMDAR) systems have been used by the Federal Aviation 
Administration, the U.S. Weather Service, and the National 
Oceanic and Atmospheric Administration for over seven years. 
The Committee supports advanced forecasting employing TAMDAR in 
that it enhances U.S. and allied meteorological forecasting 
systems, thus providing improved reliability and situational 
awareness, which is particularly useful in agricultural 
forecasts. The Committee therefore encourages continued use of 
this system by the Department of Agriculture.

Regional Centers of Excellence

    With limited resources to invest in critical programs, the 
Committee has considered multiple options by which Federal 
funds can be leveraged to improve overall program 
effectiveness. With the recognition that multiple institutions 
and organizations participate in projects of similar interest, 
the Committee has sought to incentivize the formation of formal 
partnerships and other organizational structures as Regional 
Centers of Excellence. The Committee reported bill directs that 
such centers that meet established criteria be granted priority 
in receipt of competitive research and extension grants.
    The Committee would recommend USDA to promulgate 
regulations implementing section 1673 in accordance with 
appropriate regulatory procedures in order to allow interested 
stakeholders to gain a firm understanding of USDA's 
implementation of the provision.

Specialty Crop Research Initiative

    The Committee is aware of concerns that the required merit 
review process under the Specialty Crop Research Initiative and 
other competitive grants programs is not functioning as 
intended. Congress established the merit review requirement to 
ensure that grant applications that are of sufficient 
scientific quality as determined through a process of peer 
review shall then be evaluated and final awards be made based 
on the merit and relevancy of the grant request with respect to 
the constituency being served. In carrying out the merit and 
relevancy review process under the Specialty Crop Research 
Initiative, the Committee expects that the review and ranking 
for impact to be conducted by a panel of specialty crop 
industry representatives for the specific specialty crop. The 
Committee further encourages the Secretary to prioritize 
competitive grants to address imminent threats which may impact 
the future of specialty crop production in this country.

Competitive, Special, and facilities Research Grant Act

    The Agriculture and Food Research Initiative (AFRI) is the 
premier competitive research and extension grants program 
within the USDA. The AFRI program was established in 2008 as a 
successor program to the National Research Initiative 
Competitive Grants Program and the Initiative for Future 
Agriculture and Food Systems. The statutory priorities for the 
AFRI program are purposefully broad. In developing these 
priorities, the Congress was aware that as science evolves, a 
balance needed to be achieved between the need for flexibility 
to respond to new and emerging threats and opportunities, and 
the need for transparency and accountability in the expenditure 
of taxpayer funds.
    Concerns are periodically raised regarding the annual 
allocations among the various statutory programmatic priorities 
and sub priorities. The Committee was aware of these 
qualitative concerns but lacked quantitative information on 
which to base any policy modifications. As a continuation of 
the programmatic audit carried out by the Committee in 
preparation for developing the FARRM Act, the Committee 
requested USDA provide a listing of recent awards under the 
AFRI program sorted according the corresponding statutory 
priorities and sub priorities. USDA initially responded to the 
Committee that it had no means by which to track grants in 
relationship to the statutory authority upon which they are 
awarded. The Committee ultimately received a partial response 
to the oversight request after a delay of more than 3 months, 
but only days prior to consideration of the FARRM Act. The data 
reveal a dramatic shift in awards funding away from traditional 
areas of production agriculture. For instance, awards for 
research in plant systems dropped from 38.7% of available funds 
in fiscal year 2007, the final full year under of the 
predecessor programs, to 18.4% in 2011. Awards for research in 
animal systems fell from 22.4% to 9.4% over the same time 
period.
    The Committee is concerned that the allocation of research 
and extension awards under the AFRI program is inconsistent 
with our national priorities. This same concern was raised by 
the Appropriations Subcommittee on Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
in their report for the fiscal year 2012 appropriations when 
the subcommittee stated that ``over the past few years, 
numerous reports from Federal agencies and private 
philanthropic and scientific organizations have highlighted the 
need for the United States to invest in agricultural research, 
particularly to ensure productivity growth and to develop and 
refine sound natural resources management practices for U.S. 
farmers and ranchers and others around the world. In light of 
this advice and the nation's serious budget deficit and debt 
problems, the agency should be focusing its research efforts on 
only the highest priority, scientifically merited research. 
While there are many interesting research topics and a 
multitude of issues that could be researched, the Committee 
expects the agency to focus on its core mission of agricultural 
research by setting a very high standard for research funded by 
the agency and requiring a rigorous peer review.''
    The Committee agrees with the concerns raised by the 
Appropriations Subcommittee and has included language related 
to the President's annual budget submission to both improve the 
transparency and the accountability for the funding 
administered by the USDA under AFRI and other competitive 
agricultural research and extension grants programs.
    The Committee recognizes the importance of basic animal 
health research to support the farmed cervidae industry, and as 
such, supports research focusing on the development of viable 
strategies for the prevention, diagnosis, and treatment of 
infectious, parasitic and toxic diseases of farmed deer and the 
mapping of the deer genome.
    The Committee recognizes the growing importance of and need 
for comprehensive and practical scientific and economic 
assessments of agricultural practices and technologies intended 
to improve agriculture's water quality and quantity 
performance. This is particularly the case as states work with 
producers on high priority or high profile water quality 
challenges. Such scientific and economic assessments are needed 
for the major crop producing regions of the country, taking 
into account soils, climate, crops grown, and the technologies 
and agricultural practices in use. The goal of such assessments 
should be to develop information and continue to build on the 
tools already in place. The assessments should continue to 
develop new and innovative approaches to help producers and 
policy makers in states understand what is affordable, 
achievable and sustainable for producers. The assessment can 
then he used to consider how different water quality policy 
choices relate to other important societal objectives involving 
agriculture. The Committee encourages the Secretary to initiate 
a multi-year effort to help the states and USDA continue to 
develop this base of science and knowledge through the funding 
of proposals from qualified institutions capable of supporting 
interdisciplinary teams of researchers and experts to carry out 
such efforts.
    The Committee recognizes the success of the Conservation 
Effects Assessment Project (CEAP) and the cross collaborative 
approach between multiple agencies at USDA, and strongly 
encourages USDA to continue and expand on those efforts. The 
Committee does not intend for this provision to be a 
replacement for or duplication of CEAP, but rather as a source 
of sound, complementary economic and technical information that 
could be used in conjunction with CEAP to create more accurate 
assessments of the effects of prospective conservation measures 
on agricultural land.
    The Committee recognizes that maintaining and enhancing 
wild rice, a uniquely American specialty crop, depends on 
continued use of traditional breeding methods, along with the 
application of new genetic tools to make conventional breeding 
more efficient. Genetic analysis of shattering, disease 
resistance, reduced plant height, and other traits require not 
only development of new genetic markers for wild rice, but also 
new methods for gathering accurate phenotypic information on 
the plants. The use of these improved genetic resources in the 
future depends on their continued availability through reliable 
seed storage methods. Some research has been done on 
maintaining viability of stored seeds, but these need to be 
translated into reliable and useful methods at the local level 
to ensure breeding progress.
    The Committee would hope that the Secretary would consider 
the following research objectives regarding wild rice genetic 
resources: preserving and enhancing wild rice breeding lines 
for testing and release as future varieties; developing 
phenotyping methods and genotypic markers for various traits; 
using genotypic and phenotypic information to identify superior 
genetic resources for breeding and to develop more efficient 
breeding methods; evaluating and maintaining the genetic 
distinctiveness of wild rice breeding lines and populations; 
and developing improved methods for short- and medium-term 
storage of wild rice breeding lines and populations.

Renewable Resources Extension Act of 1978

    The National Association of University Forest Resources 
Programs (NAUFRP), (formerly the National Association of 
Professional Forestry Schools and Colleges) represents 69 of 
our nation's universities and their respective scientists, 
educators and extension specialists. NAUFRP's purpose is to 
advance the health, productivity, and sustainability of 
America's forests by providing university-based natural 
resource education, research, science, extension and 
international programs. The Committee would encourage USDA to 
engage in discussions with NAUFRP to ensure that their 
proposals for ecosystem services, invasive species management, 
and innovative biobased products are appropriately addressed.

Budget submission and funding

    The Committee is aware of the need for the statutory 
priorities for the various agricultural research, education and 
extension programs to be written with sufficient flexibility so 
that the Administrators of the USDA research agencies can 
respond quickly and efficiently to emerging problems and 
opportunities. The Committee is equally cognizant of the need 
for taxpayer funds to be used in a transparent and accountable 
manner.
    Recent changes that have occurred in Congressional 
appropriations procedures have empowered USDA bureaucrats to 
direct spending seemingly without regard to statutory 
priorities. Coupling the extraordinary spending discretion 
granted to the agencies with a lack of transparency relating to 
the priority setting process exposes these critical programs to 
allegations of waste, fraud and abuse.
    As a follow up to a series of programmatic audits conducted 
by the Committee, a request was submitted for the Department to 
provide a listing of grants awarded by the USDA under one 
principal competitive grants program sorted according to the 
statutory priorities for which the funding was appropriated. 
The Department was unable to provide this information for more 
than 3 months due to what was at the time a lack of ability by 
the Department to track program funding according to the 
authorized priorities.
    A review of the data ultimately provided by the Department 
demonstrates a significant reduction in funding provided for 
research related to core production agricultural programs. The 
Committee reported bill does not significantly alter the 
priorities for the various competitive research and extension 
programs. Nor does the Committee draft adopt specific across 
the board set asides. In order to increase the ability of 
Congress to oversee funding allocations, the Committee reported 
bill instead creates a new requirement on the Secretary to 
provide transparency and accountability with regard to the 
research, extension and education budget. It is the intent of 
the Committee that USDA provide increasingly detailed spending 
plans to Congress in advance of the development of annual 
appropriations measures so that the legislature and interested 
constituencies can weigh the merits of these allocations 
against evolving priorities, and as a representative body the 
Congress can approve or disapprove of the proposed allocations.
    Working cooperatively between the branches and fully 
involving interested stakeholders in the priority setting 
process will likely result in better understanding of the need 
and benefits of investment in agricultural research, extension 
and education programs.

Sun Grant program

    The Committee reported bill directs the Secretary to 
utilize and leverage the investment, resources and capacities 
of the current regional Sun Grant Program Centers and Sub-
center to continue their leadership and management of the 
regional Sun Grant competitive grants program.

                          Title VIII--Forestry

    The Committee believes that healthy national, state, and 
private forests should be a high priority for the Department. 
Healthy forests are an important component of helping sustain 
fire-resistant communities and promoting economic health across 
rural America. The Committee reported bill reflects the 
priorities of the Committee by providing the Forest Service the 
tools necessary to improve forest management over the course of 
the bill.

Forest Service decision making process

    The Committee reported bill includes language that 
clarifies that the Forest Service does not need to engage in a 
notice, comment, and appeal process for routine actions. This 
language came as a result of a federal court decision in March 
2012 that the agency must engage in this process for 
noncontroversial actions such as planting trees after wildfire, 
trail maintenance, or one-time events such as races. The 
Committee believes this is a burdensome requirement for the 
Forest Service when no other federal agency is required to 
engage in a similar process. The Committee is also concerned 
that this requirement will have an adverse impact on rural 
economies by virtue of restricting the number of revenue-
generating activities that may occur on National Forest lands.

Stewardship Contracting

    The Committee provided the Forest Service with a four-year 
extension of authority to conduct Stewardship contracting. This 
approach to land management has proved effective nationwide 
since it was first authorized in 1999 and extended in 2003. 
Stewardship contracting allows the Forest Service to conduct 
important forest restoration work by allowing the value of wood 
removed to help offset the cost of needed restoration 
treatments, like forest thinning, introduction of prescribed 
fire, and habitat improvements for a variety of species. It is 
important to note that Stewardship contracting is not intended 
to replace the existing timber sale contract. Where there are 
robust wood markets, the Forest Service can frequently achieve 
its forest restoration and habitat goals simply by offering 
carefully designed timber sales. The Committee asks the Chief 
to work with purchasers of Forest Service timber to address 
concerns they have raised about methods of selecting the 
winning bidders on Stewardship contracts, and to provide 
feedback to losing bidders to help increase their understanding 
of the process to become more effective in the future. The 
Committee asks the Chief to include liability limitations for 
operations fires in all types of Stewardship Contracts and 
Stewardship Agreements. These liability limitations should be 
substantially similar to the protections in existing timber 
sale contracts.

Pine Bark Beetle

    The outbreak of the pine bark beetle afflicting states 
across the nation is a great concern to the Committee. To date, 
an estimated 41 million acres have been affected, creating 
potentially hazardous fuel loads in several western states. The 
Committee reported bill includes provisions to provide the 
Forest Service with increased flexibility to address this issue 
and work with partners to mitigate the potential damage. The 
Committee wishes to clarify that the Secretary has the 
authority to designate critical areas at any point beyond the 
initial 60-day deadline specified in Sec. 8302. In reviewing 
the threat maps for designation of possible critical areas, the 
Secretary has the authority to treat those areas that are not 
immediately threatened by a disease outbreak in order to reduce 
the threat of future outbreak.

Forest Inventory and Analysis

    The Forest Inventory and Analysis (FIA) program is the 
nation's only comprehensive forest inventory system for 
assessing the health and sustainability of the nation's forests 
across all ownerships. FIA provides essential data related to 
forest species composition, forest growth rates, and forest 
health data and is the baseline inventory estimate used in the 
State-wide Assessments and Strategies for Forest Resources. The 
program provides unbiased information that has immediate 
utility to foresters, landowners and many other users by 
serving as the basis for monitoring trends in wildlife habitat, 
wildfire risk, insect and disease threats, predicting spread of 
invasive species and for responding to contemporary forest 
issues such as estimating sustainable woody biomass supplies 
for renewable energy production, forest carbon inventories, and 
determining the timber supply available to support local mills 
and local jobs. The Committee recognizes the critical 
importance of the FIA program and directs the Forest Service to 
place increased emphasis within the agency's Research and 
Development program to implement the strategic plan called for 
in Sec. 8401.

Forest Service Retired Employees

    The Committee is concerned about the increasing number of 
retired Forest Service employees in recent years. Section 8402 
included language to allow the Forest Service to hire retired 
employees under the Agriculture Conservation Experienced 
Services (ACES) program. The Forest Service will continue to 
see a large number of retirements in the comings years. 
Allowing the Forest Service to participate in the ACES program 
allows the agency to retain the institutional knowledge 
acquired through the years by these senior employees.

                            Title IX--Energy

    The Committee continued the efforts of the 2002 and 2008 
Farm Bills in drafting the energy title of the Committee 
reported bill. The Committee recognized rural America's 
important role in contributing to America's energy needs. The 
Committee focus in drafting the energy title was to continue to 
facilitate the establishment of new types of renewable energy 
feedstocks across rural America and to assist agriculture 
producers and rural small business to become more energy 
efficient.
    With the exception of the Flexible Feedstock program, the 
programs under the energy title did not have a budget baseline 
beyond the expiration of the 2008 Farm Bill. Given the 
difficult budgetary decisions already affecting the drafting of 
a new bill, the Committee did not include mandatory funding for 
programs in the energy title. The Committee chose to keep the 
framework for renewable energy in place by reauthorizing 
several programs with discretionary funding and modifications 
to the underlying statutory authority. Despite the lack of 
mandatory funding, the Committee expects to see significant 
progress in the development of advanced biofuel feedstocks over 
the course of the Farm Bill.

BioPreferred Program

    The Biobased Market Program is intended to stimulatethe 
production of new biobasedproducts and to energize 
emergingmarkets for those products. While the focus of the 
program is to promote new products and emerging markets, the 
program shall not create market disadvantages for certain 
biobased products relative to other biobased products. The 
Committee would hope that in its current rulemaking process, 
that mature markets for biobased products, including products 
made from forestry and cotton materials, are not put at a 
competitive disadvantage, particularly in comparison to 
products that may be imported into the United States. The 
Committee has heard concerns from a variety of sources within 
the forest products industry, including lumber producers, about 
their eligibility to participate in this program. And as such, 
the Committee reported bill amends the definition of a biobased 
product in order to clarify that forest products should be 
included in the Biopreferred program.

Rural Energy for America Program

    The Committee reported bill amends the definition of a 
``renewable energy system'' to clarify what is eligible for 
financial assistance under the Renewable Energy for America 
Program (REAP). The Department announced an initiative in 
October 2010 to assist in the installation of 10,000 blender 
pumps over a five year period. The intent of the program has 
been to promote energy efficiency and the production of 
renewable energy, rather than energy delivery. Therefore, 
blender pumps or other mechanisms to dispense fuel on a retail 
level are not a use of the program consistent with this 
purpose.
    The Committee reported bill also streamlines the 
application process for REAP to create a three-tiered 
application process. The Committee believes that due to the 
wide range of projects funded under the program, those 
producers seeking smaller amounts of assistance should not be 
required to submit the same volume of information as those 
seeking larger amounts.

Biomass Crop Assistance Program

    The Biomass Crop Assistance Program was reauthorized with 
modifications. The program as written in the 2008 Farm Bill was 
not implemented in a manner consistent with the Committee's 
vision. Initial estimates of the program projected spending of 
$70 million on the program over the course of the Farm Bill. 
However, approximately $924 million has been spent on the 
program through the end of FY 11. After issuance of the final 
rule in October 2010, the Committee believes the program is now 
being run in a manner consistent with Congressional intent. To 
ensure that the purpose of the program continued to be carried 
out, the Committee removed the authorization of payments for 
the collection, harvesting, storage, and transportation of 
eligible materials to a biomass conversion facility. The 
Committee intends that the purpose should be on the 
establishment of new crops, rather than funding existing crops.

                         Title X--Horticulture


Horticulture

    Specialty crops--fruits, vegetables, tree nuts, and nursery 
plants--account for almost half of the domestic crop value in 
the United States.
    The Committee believes that the specialty crop industry can 
be best served through Federal and State efforts that help 
producers increase their respective competitive positions 
through marketing, promotion, plant pest and disease pressures, 
and research programs. The FARRM Act builds upon the popular 
and successful programs established in the 2008 Farm Bill with 
this notion in mind. Expanding export markets and increasing 
access to locally produced products is a priority in the FARRM 
Act.

Specialty Crop Block Grant Program

    The bill makes several changes to the Specialty Crop Block 
Grant program, which has been successful in enhancing the 
competitiveness of specialty crops by promoting increased 
consumption of fruits, vegetables, and nuts, fostering local 
and regional economic development, and enhancing research on 
specialty crops. The FARRM Act increases funding for the 
Specialty Crop Block Grant program to $70,000,000 for each 
fiscal year. The Committee also adjusts the grant allocation 
formula in a manner that balances the value of specialty crops 
with the number of acres devoted to specialty crop production 
within states. The Committee directs both USDA and the states 
to limit the administrative funds at 3 and 8 percent 
respectively to capitalize on the funds available to growers.
    The Committee recognizes the difficulty in coordinating and 
funding multi-state projects within the block grant program, 
and the Committee expects the USDA to issue guidance and work 
with states in making grants available for such projects. These 
multi-state projects may include food safety, research, plant 
pest and disease, and crop specific projects. These projects 
have the ability to link growers across state lines and promote 
much needed collaborative research. In the Secretary's 
guidance, effective multi-state collaborative research should 
not limit needed equipment and facilities if it is found they 
are essential to research advancements. Furthermore, multi-
state projects may encourage the use of farm financial 
benchmarking, which can be used as a tool to provide financial 
training, management training, risk management training, and 
diversification and marketing strategies for all producers.

Plant Pest and Disease

    To ensure the continued availability of funding for the 
important work of the National Clean Plant Network, the 
Committee has combined this program with the Pest and Disease 
program and increased baseline funding for both. The Committee 
expects that annual funding for the important work of the 
National Clean Plant Network will not be less than the level 
provided in FY2012 and may be provided to the Network without 
regard to the process for distributing funds to address the 
other provisions of Section 420 of the Plant Protection Act.
    The Committee recognizes that Disease Management and 
Disaster Prevention Programs as previously authorized in the 
Food, Conservation, and Energy Act of 2008 includes imminent 
pressing and persistent threats from pests and disease, such as 
Citrus Greening, to agriculture production.
    The Committee recognizes the importance of the Federal 
government, specifically the USDA, developing and maintaining 
the highest technological capability of identifying plant pests 
and invasive species. Further, the Committee believes that the 
advanced technological capabilities acquired through 
development of plant pest and invasive species detection 
technologies should facilitate the development of a 
coordinated, interagency response plan for the federal 
government to effectively mitigate plant pests and invasive 
species. The Committee encourages USDA to take the appropriate 
steps to facilitate information and technology sharing with 
other appropriate agencies of the Federal government involved 
in invasive species management such as Department of the 
Interior, Environmental Protection Agency, U.S. Coast Guard and 
the U.S. Army Corps of Engineers.

Farmers Markets

    The Committee recognizes the growing interest among 
producers and consumers to provide and purchase locally-grown 
agricultural products. The FARRM Act expands the Farmers Market 
Promotion Program to include food system infrastructure and 
increases funding for competitive grants to expand farmers 
markets and other direct-to-consumer market opportunities.

Olive Oil Marketing Order

    The Committee has taken steps to permit the establishment 
of a marketing order for domestically produced olive oil. 
Should this marketing order be established, the Committee 
expects USDA, in conjunction with the U.S. Trade 
Representative's office, to ensure the marketing order is 
implemented in a manner that will not cause undue trade 
disruption.

Honey Standard of Identity

    The Committee is concerned with the Food and Drug 
Administration's denial of the honey industry's 2006 citizen's 
petition calling for a federal standard of identity for honey. 
Consequently, the Committee directs USDA to submit a report to 
the Commissioner of the FDA on the importance of establishing 
such a standard. The Committee recognizes that inconsistent 
standards can cause confusion in the market place and legal 
challenges. The Committee instructs the USDA to take into 
consideration the honey industry's petition filed with the Food 
and Drug Administration.

Organics

    Organic agriculture and its products continue to occupy a 
prominent place in the minds of American consumers. Recent 
surveys show that seventy-eight percent of U.S. families say 
they choose organic food, up from seventy three percent in 
2009. Further, seventy-two percent of survey respondents say 
they are familiar with the USDA organic seal and its meaning.
    Consumer confidence in the integrity of USDA National 
Organic Program (NOP) is fundamental to the continued growth of 
the organic sector. An essential element of strong consumer 
confidence is the ability of the NOP to efficiently administer 
enforcement actions against producers and handlers who violate 
NOP regulations.
    The Federal Agriculture Reform and Risk Management Act 
strengthens the ability of the NOP to bring enforcement actions 
against violators of the NOP regulations by permitting the 
Secretary to administer oaths, affirmations, subpoena witness, 
compel their attendance, take evidence and require the 
production of records during the course of an NOP 
investigation. The Act also ensures due process is afforded to 
organic producers and handlers by affirming the right to 
judicial review of USDA orders suspending organic 
certification.

Importance of Biotechnology

    Since its introduction in the late 1990's Agricultural 
biotechnology has been embraced by American farmers with 94% of 
soybeans, 88% of corn and 90% of cotton grown in the U.S. 
through varieties improved by modern biotechnology.
    Currently, nearly two billion people in our global 
community are malnourished, and the need to sustain a rapidly 
growing global population places an imperative on finding ways 
to meet daily life needs in an environmentally sustainable way. 
According to the U.S. State Department, it will be necessary to 
produce as much food in the next 50 years as was produced 
during the previous 10,000 years combined. Science and 
innovation in agriculture will be required to produce this 
amount of food, feed and fiber in an environmentally 
sustainable way. U.S. consumers must be assured of the 
availability of an adequate, wholesome and economical food 
supply.
    The wide spread adoption of agricultural biotechnology has 
resulted in several environmental improvements. Because of no-
till and reduced-till practices associated with the use of 
biotechnology crops, soil quality and carbon storage has 
improved, on-farm fuel use has declined, and greenhouse gas 
emissions have been reduced. In 2009, the aggregate 
environmental effect of these benefits was equivalent to 
removing of 17.7 billion kg of carbon dioxide from the 
atmosphere or removing 7.8 million cars from the road for one 
year.

Legal Challenges

    The Committee is aware that many industry and academic 
experts agree that frivolous legal challenges have made the 
U.S. regulatory process for agricultural biotechnology products 
an impediment to the timely review and commercialization of 
valuable new products. While administrative reforms have been 
introduced at USDA in an effort to produce decisions better 
able to withstand procedural challenges in federal court, the 
Committee is concerned that expenditure of the limited 
resources available to the USDA should be based on the 
prioritization of risk, not responding to questionable 
procedural claims. The numerous oversight activities carried 
out by the Committee have all led to the conclusion that 
targeted legislation is needed to ensure advances in modern 
agriculture will be available in the future.
    Opponents of technology filing lawsuits once agricultural 
biotechnology products are approved by USDA, claim that the 
Department experts have not conducted proper environmental 
analyses despite the rigorous environmental reviews conducted 
by USDA and the lack of evidence that previously approved crops 
are harmful to health or the environment. Lawsuits dramatically 
slow USDA's review of new products and cost the Department 
millions of dollars each year, slows down the entire process 
and stigmatizes the technology without any scientific basis. 
The delay in regulatory approvals creates uncertainty for 
farmers, researchers and companies.

Implications

    Conducting extensive reviews of products with a history of 
safe use diverts scarce resources from higher priority 
applications. When researchers are prohibited from studying new 
technologies because of costs associated with regulation, it 
reduces farmer choice and threatens discoveries of scientific 
breakthroughs that could help feed a rapidly growing world 
population.
    Other countries recognize the value of efficient 
agricultural biotechnology regulation. Brazil, for example, has 
accelerated its regulatory processes while continuing to 
rigorously evaluate environmental safety concerns. In a six-
year period beginning with 2005, Brazil completed the review of 
28 biotech crops and the USDA completed its review of 15. The 
average time to review a product in Brazil is 27 months 
compared to the average time in the U.S. of 38.4 months (as of 
2010). According to USDA, between 1992 and 1999, USDA, on 
average, took 178 days to complete a review of a biotech crop. 
Currently, that process takes two to five years. The Committee 
has acted to ensure that U.S. farmers and businesses are not at 
a competitive disadvantage when it comes to our foreign trading 
partners. Such a disadvantage makes it more difficult for the 
U.S. to grow a 21st Century bio-economy.

Legislation to Address Current Regulatory Review Process

    The Committee has taken note of the enormous challenges 
confronting the current USDA review process for innovative new 
agricultural products and the serious hardships that prolonged 
litigation has had on growers and others who rely on the review 
to be efficient, transparent and science-based. The FARRM Act 
provisions are intended to address those challenges by 
consolidating the Secretary's review of potential adverse 
environmental effects and potential plant pest risk under one 
statute, the Plant Protection Act, with clearly defined time 
tables.
    The Committee is likewise aware of potential procedural 
challenges brought against the USDA related to the issuance of 
confined field test permits for new and novel traits that meet 
well defined regulatory criteria. The Committee would like to 
reiterate that the purpose of confined field test permits 
authorized by the Secretary is to accumulate the information 
needed to properly assess potential environmental effects and 
plant pest risk at such time as a petition for nonregulated 
status is submitted for review by the Secretary.
    The Committee recognizes that the regulations that would be 
in effect on the date of enactment of this subsection currently 
provide USDA flexibility to forego environmental assessments 
under certain circumstances through the use of categorical 
exclusions. As noted in International Center for Technology 
Assessment v. Johanns (473 F.Supp.2d 9) (D.D.C. 2007), 
generally, APHIS's regulations require environmental assessment 
preparation for field trials (7 C.F.R. Sec. 372.5(b)(5)(i)). 
The regulations also set forth, however, a series of 
``categorically excluded actions'' that do not require the 
preparation of an EA or EIS. These excluded actions include 
``[p]ermitting, or acknowledgment of notifications for, 
confined field releases of genetically engineered organisms and 
products.'' It is the intent of the Committee to preserve that 
flexibility and apply this Act's environmental analysis 
requirements only in the instances where the Department has 
previously determined that an environmental assessment or an 
environmental impact statement had been required. The Secretary 
would be expected to tailor the level of detail in the 
environmental analysis to the scope and complexity of the 
action under review.
    The current environmental review process has proven to be 
very cumbersome. The Secretary must attempt to comply with a 
variety of different statutory requirements and regulatory 
procedures in order to address the likely environmental effects 
of actions taken under the Plant Protection Act. The amendment 
ensures that those environmental effects, including effects on 
threatened and endangered species, will be addressed in a 
consistent, timely manner under a single statutory mandate and 
set of procedures.
    The Committee also presumes that the current regulatory 
definition of ``organism'' would be used as the basis for any 
new rulemaking; however, we intend to give the Secretary 
flexibility in this matter.

Failure To Meet Time Period

    If the Secretary has failed to act on a petition within the 
requisite time period under paragraph (3), the Committee 
expects that, should the environmental analysis required under 
paragraph (1) not be completed on the date the organism is 
deemed not to be a plant pest by operation of law, the analysis 
will be completed within no more than 90 days after such date.

Background on Establishment of PRIA

    The Pesticide Registration Improvement Act (PRIA) is a 
landmark law enacted on January 23, 2004. Congress reauthorized 
PRIA (now known as ``PRIA 2'') for another five years on 
October 9, 2007. The law is intended to provide additional 
resources for the Environmental Protection Agency's (EPA) 
registration activities and more predictable service for 
pesticide registrants.
    PRIA created an entirely new paradigm for EPA to process 
applications for pesticide registrations and other related 
actions, including establishing specific timelines with 
corresponding fee schedules. Under PRIA 1, the Agency's Office 
of Pesticide Programs was required to process applications 
within timeframes specified for each of the 50 categories of 
registration actions. PRIA 1 also established specific fees for 
each of the 50 categories. Under PRIA 2, the number of 
categories increased to 140 and PRIA 3 would establish 189 
categories.
    PRIA legislation retained and increased the product 
maintenance fees that support reregistration and tolerance 
reassessment authorized under the Food Quality Protection Act. 
Pesticide registrants paid $110 million in maintenance fees 
during the authorization of PRIA (which expires in October 
2012) and registrants are scheduled to pay $139 million in 
maintenance fees for the five year period to be covered by the 
proposed ``PRIA 3.''
    PRIA established a prohibition against the collection of 
other registration fees (as distinct from registration service 
fees) authorized under the Federal Insecticide, Fungicide and 
Rodenticide Act (FIFRA). PRIA also suspended the Agency's 
authority to collect tolerance fees which had been authorized 
by the Federal Food, Drug and Cosmetic Act (FFDCA).

Implications of Additional Fees Proposed by Administration

    Since 1989, various White House administrations have sought 
to reinstate old and prohibited fees and the current 
administration is no exception. In Fiscal Year 2013, industry 
registrants have already agreed to revenues ranging from $31 
million to $38 million for maintenance and registration service 
fees. For Fiscal Year 2013, the Office of Management and Budget 
(OMB) has proposed an additional $27 million in maintenance 
fees and an additional $24 million in registration service 
fees.
    If these proposed fees are enacted, the revenue would go to 
the U.S. Treasury where it would be unavailable to EPA's 
Pesticide Program. Moreover, enactment of these fees would 
require amendments to FIFRA and FFDCA, thus undermining the 
letter and intent of PRIA. Congress has repeatedly barred 
collection of increased fees proposed by OMB and rejected White 
House proposals to modify FIFRA and FFDCA accordingly. To enact 
pesticide fee increases beyond those authorized by PRIA would 
jeopardize the many gains in EPA's pesticide registration 
program to the many stakeholders that benefit from EPA's 
scientifically rigorous regulation of this industry.

EPA and USDA Coordination for Decisions on Plant Incorporated 
        Protectants (PIPs)

    Congress has previously directed the Administrator to 
expedite the review of reduced-risk pesticides, FIFRA Section 
3(c)(10), 7 U.S.C. 136a(c)(10). In reauthorizing PRIA, the 
Committee is troubled by apparent inefficiencies in the EPA's 
registration process for two categories of reduced-risk 
pesticides: plant-incorporated protectants, both individual and 
combined trait products, and herbicides used over the top of 
herbicide-tolerant crops, both individually and in combination. 
Both categories of pesticide products involve a parallel, 
albeit independent, review of the relevant plant products by 
the Secretary under the Plant Protection Act and implementing 
regulations.
    The Committee expects that the Administrator and the 
Secretary will coordinate and otherwise conduct their 
respective reviews in such a manner as not to cause any undue 
delay in action being taken on the particular application, 
petition or other request pending before them. Nor should any 
provision of PRIA be used to delay action by the Administrator 
on an application submitted under FIFRA without good cause 
shown.

Provisions Under ``PRIA 3''

    The following provisions are included in the third 
reauthorization of PRIA:
    
 extends the authority of EPA to collect 
maintenance fees until 2017;
    
 extends the prohibition on collection of other 
registration and tolerance fees to 2019 and 2017, respectively;
    
 establishes a small business cap;
    
 allocates funds for EPA to use for the enhancement 
and improvement of IT systems for the registration of 
pesticides and tracking of key information;
    
 amends the percentage of maintenance fees devoted 
to review of inerts and fast track amendments;
    
 increases registration service fees during the 
life of PRIA 3 by 2.5%;
    
 provides that the Administrator shall identify 
reforms in processing that would allow it to improve decision 
times beyond those provided for in the Act; and
    
 cites new schedule of decision review times.

``PRIA 3'' Tables

    The Committee includes in this report an Appendix that 
contains ``PRIA 3'' Tables with the applicable schedules of 
covered pesticide registrations applications and corresponding 
registration service fees and decision time review periods.

Pesticide Biological Opinions

    The Committee has been made aware of the dramatically 
different views on approaches to assessing and managing 
potential risks to fish, wildlife and plant species between the 
Environmental Protection Agency (EPA) and the Fish and Wildlife 
Service and National Marine Fisheries Service (collectively, 
the Services). Consequently, these agencies disagree on 
fundamental legal and science policy matters related to their 
respective obligations under the Endangered Species Act (ESA) 
and the Federal Insecticide, Fungicide and Rodenticide Act 
(FIFRA). These scientific disagreements, along with inability 
to develop a sound and workable process for consultation under 
ESA, threaten public health, agricultural productivity, and 
global competitiveness with no commensurate benefit to 
threatened and endangered species.
    FIFRA requires EPA to evaluate unreasonable risk of harm to 
human health or the environment (including fish, wildlife and 
``non-target'' plants) before granting pesticide registrations 
or amendments to existing pesticide registrations.
    FIFRA requires applicants for pesticide registration 
actions (registrants) to submit to EPA a robust set of 
scientific data to ensure the protection of the environment. 
EPA also considers other available data and has the authority 
to require additional data from pesticide registrants to ensure 
decisions are scientifically sound. EPA's Office of Pesticide 
Programs is uniquely staffed to critically evaluate the 
voluminous available data on the potential pesticide effects.
    ESA provides for an additional level of scrutiny by 
requiring federal agencies, such as EPA, to consult with the 
Services on ``agency actions'' (such as a pesticide 
registration) that could impact threatened or endangered 
species or their critical habitats. As part of the consultation 
process, the Services issue a ``biological opinion'' which may 
recommend additional modifications or restrictions to ``agency 
actions.''
    In the last decade, EPA has been sued to compel 
consultations with the Services for hundreds of products 
throughout the nation, and has agreed to do so. These lawsuits 
are ``procedural'' in nature citing a lack of ``consultation'' 
with the Services and rarely attack EPA's underlying analysis 
of the science-based record. Most importantly, however, such 
lawsuits divert precious government resources from actually 
protecting endangered species. Several of the lawsuits filed 
have resulted in Court-ordered ``interim'' restrictions on the 
use of critical pesticides. In January 2011, an activist group 
filed a suit against EPA involving more than 380 pesticides and 
214 threatened or endangered species. A suit of this magnitude 
could seriously jeopardize agriculture and pest control 
activities in 49 states.
    The EPA has made significant efforts to meet obligations 
under FIFRA and ESA, while the Services have produced 
biological opinions that many observers find grossly flawed, 
ignore pertinent data, and rely on outdated and irrelevant 
studies. Therefore, the five partial consultations conducted 
since 2002 have not been fully implemented. As a result, EPA 
has not found the Service's recommendations sufficiently based 
on sound science to compel registrants to adopt them.
    This inability to resolve fundamental scientific issues at 
the heart of a consultation involving pesticides led EPA 
Administrator Lisa Jackson and the Secretaries of the United 
States Department of Agriculture, Department of Interior and 
Department of Commerce to recently ask the National Research 
Council (NRC) of the National Academy of Sciences (NAS) to 
provide guidance on six key scientific issues. This action, 
however, does not stop the litigation, nor will it impede 
courts from unilaterally imposing unwarranted pesticide 
restrictions. In a joint oversight hearing held on May 4, 2011, 
between the Committee's on Agriculture and Natural Resources, 
it became clear to many of the Committee's respective Members 
that the requested NRC study was incomplete and lacking in the 
scope necessary to critically review existing biological 
opinions in their entirety.

Response for Why Legislation Is Needed

    Committee Members have therefore raised numerous concerns 
with the failure of the NRC study contract to include unbiased 
scientific peer review of the Services' biological opinions as 
well as an analysis of the technological and economic 
feasibility of the proposed ``Reasonable and Prudent Measures'' 
or ``Reasonable and Prudent Alternatives''.
    To ensure the NRC study addresses the concerns raised by 
interested parties during the hearing, the Committee continues 
to strongly assert that the following scientific questions must 
be included in the NRC study to properly examine the numerous 
issues raised by the Services' biological opinions to date. 
Questions that the Committee has asked the agency to include in 
the NRC contract include:
    The NAS recently provided guidance on evaluation of data 
quality for EPA Integrated Risk Information System (IRIS) 
evaluations. What criteria should the EPA and the Services be 
using in evaluating data for acceptability and relative quality 
in regulatory decision-making? How should decisions on data 
acceptability be documented?
    A well defined weight-of-evidence framework would provide 
some structure and transparency to the objective assessment of 
information relied upon for regulatory decision-making. Is 
there a recommended framework for a ``weight-of-evidence'' 
approach for evaluation of all relevant available data and how 
should that framework be applied?
    Were apparent incongruities or inconsistencies in available 
data appropriately addressed and clearly described in the 
Services' biological opinions? Were the implications of the 
inconsistencies considered in describing the uncertainty in the 
assessment?
    Were the rationales used to support jeopardy or adverse 
modification determinations well-grounded in empirical 
observations? Have the Services clearly articulately the 
limitations and uncertainties associated with the effects 
determinations?
    When worst-case assumptions are made, how should they be 
documented to make the level of conservatism apparent, 
consistent with Presidential memoranda?
    Should uncertainty factors be reduced or eliminated as more 
recent empirical data are made available? If so, have the 
Services adopted this principle in their effects determinations 
conducted to date?
    Were the assumptions used to fill data gaps supported by 
empirical data, reasonable and clearly articulated?
    Were the specific assumptions and inferences used to 
support jeopardy and adverse modification determinations 
plausible? That is, did the Services include an assessment of 
the a priori likelihood that critical assumptions and 
inferences would prove true if tested?
    Where in the assessment process should the Services involve 
the expertise of other federal and state Agencies, as well as 
non-federal entities such as growers and other stakeholders, in 
the risk assessment process?
    The problem formulation includes a description of the 
different stressors that are influential on species survival. 
How are considerations of key stressors for endangered and 
threatened species and the relative significance of their known 
or potential impacts incorporated into a jeopardy finding as 
part of the Biological Opinion?
    How should consideration of key stressors inform the 
Reasonable and Prudent Measures (RPMs) or Reasonable and 
Prudent Alternatives (RPAs) suggested at the end of the 
consultation process? For example, if habitat loss is 
identified as the predominant factor impacting a species in 
question, how will measures to lessen impact include 
consideration of mitigation options that increase or improve 
habitat?
    How should the Services consider the human health 
implications of the impact of proposed mitigation measures on 
mosquito population control efforts?
    The Committee is likewise concerned that the scope of work 
of the NRC must cover direct and indirect economic impacts. 
Therefore, it is imperative that any review of these biological 
opinions be comprehensive in nature, and address the following 
issues pertaining to economic feasibility, consistent with 50 
C.F.R. Sec.  402.02 before moving forward with implementation 
of any pending or future biological opinions related to FIFRA 
registered products.
    What factors should the Services consider to make the 
determination that proposals are ``technologically feasible''?
    What factors should the Services consider to make the 
determination that the proposals are ``economically feasible''?
    Can you recommend an appropriate framework for conducting a 
benefit-cost analysis (BCA) for determining and documenting 
economic and technical feasibility?
    In addition to a BCA, a cost-effectiveness analysis (CEA) 
can provide a rigorous way to identify and evaluate options 
that achieve the most effective use of the resources available. 
Can you recommend an appropriate framework for conducting a CEA 
to evaluate a range of possible alternatives under 
consideration?
    For both BCAs and CEAs how should the Services document and 
analyze important uncertainties associated with proposed RPAs? 
Furthermore, to what extent is it recommended that the Services 
provide a sensitivity analysis to reveal whether, and to what 
extent, the results of the analysis are sensitive to plausible 
changes in the main assumptions and inputs?
    To what extent is it recommended that the Services identify 
and consider important ancillary benefits and countervailing 
risks related to proposed RPAs? (For example, potential 
reduction in habitat resulting from changes in land management 
practices in response to proposed restrictions.)
    Taken together, these questions represent a reasonable 
basis on which to achieve scientific consensus. The Committee 
urges the EPA, USDA and Services' to take such action as is 
necessary to amend, supplement or reinitiate the request to the 
NRC to ensure that their work, once completed will be thorough 
and defensible.

The Federal Insecticide, Fungicide, and Rodenticide Act

    The Federal Insecticide, Fungicide, and Rodenticide Act 
(``FIFRA'') is a regulatory statute that governs the sale and 
use of pesticides in the United States through the registration 
and labeling of such products. Its objective is to protect 
human health and the environment from unreasonable adverse 
effects of pesticides, taking into account the costs and 
benefits of various product uses. Pesticides regulated under 
FIFRA include insecticides, herbicides, fungicides, 
rodenticides, and other designated substances. The 
Environmental Protection Agency (``EPA'') reviews scientific 
data submitted by chemical manufacturers on toxicity and 
behavior in the environment to evaluate risks and exposure 
associated with a product's use.
    FIFRA prohibits the sale of any pesticide unless it is 
registered and labeled indicating approved uses and 
restrictions. It is a violation of Federal law to use such a 
chemical in a manner that is inconsistent with the label 
instructions. If a registration is granted, EPA makes a finding 
that the chemical `when used in accordance with widespread and 
commonly recognized practice it will not generally cause 
unreasonable adverse effects on the environment.' (7 U.S.C. 
136a(c)(5)(D)). EPA then specifies the approved uses and 
conditions of use of the pesticide, and this is required to be 
explained on the product label.

The Clean Water Act

    The objective of the Federal Water Pollution Control Act 
(commonly known as the ``Clean Water Act'' or the ``CWA'') is 
to restore and maintain the chemical, physical, and biological 
integrity of the nation's waters. The primary mechanism for 
achieving this objective is the CWA's prohibition on the 
discharge of any pollutant without a National Pollutant 
Discharge Elimination System (``NPDES'') permit. EPA has the 
authority to regulate the discharge of pollutants either 
through general permits or through individual permits. NPDES 
permits specify limits on what pollutants may be discharged 
from point sources and in what amounts. Under the CWA, 47 
states and territories have been authorized to implement NPDES 
permits and enforce permits. EPA manages the Clean Water Act 
program in the remaining states and territories.
    NPDES permits are the basic regulatory tool of the CWA. EPA 
or an authorized state may issue compliance orders, or file 
civil suits against those who violate the terms of a permit. In 
addition, in the absence of Federal or state action, 
individuals may bring a citizen suit in United States district 
court against those who violate the terms of an NPDES permit, 
or against those who discharge without a valid permit.

Litigation

    In over 30 years of administering the CWA, EPA had never 
required an NPDES permit for the application of a pesticide, 
when the pesticide is applied in a manner consistent with FIFRA 
and its regulations. While the CWA contains a provision 
granting citizen suits against those who violate permit 
conditions or those who discharge without an NPDES permit, 
FIFRA has no citizen suit provision. As a result, beginning in 
the late 1990s, a series of citizen lawsuits were filed by 
parties, contending that an NPDES permit is necessary when 
applying a FIFRA-regulated product over, into, or near 
waterbodies. These cases generated several Court of Appeals 
decisions that created confusion and concern among pesticide 
users regarding the applicability of the CWA with regard to 
pesticide use.
    As the litigation continued, concern and confusion grew 
among farmers, forest landowners, and public health officials, 
prompting EPA to issue interim, and later final, interpretive 
guidance in August 2003 and January 2005, and then to undertake 
a rulemaking to clarify and formalize the Agency's 
interpretation of the CWA as it applied to pesticide use. The 
EPA rule was finalized in November 2006 (71 Fed. Reg. 68483 
(Nov. 27, 2006)), and was the culmination of a three year 
participatory rulemaking process that began with the interim 
interpretive statement in 2003 and involved two rounds of 
public comment.
    The 2006 EPA rule codified EPA's long-standing 
interpretation that the application of chemical and biological 
pesticides for their intended purpose and in compliance with 
pesticide label restrictions is not a discharge of a 
``pollutant'' under the CWA, and therefore, that an NPDES 
permit is not required. The rule clearly defined specific 
circumstances in which the use of pesticides in accordance with 
all relevant requirements under FIFRA is not a CWA ``discharge 
of a pollutant,'' explaining in detail the rationale for the 
Agency's interpretation.
    When the rule was finalized, environmental groups, as well 
as farm and pesticide industry groups, filed petitions for 
review of the rule in several Federal Circuit Courts of Appeal. 
The petitions were consolidated in the Sixth Circuit. The Sixth 
Circuit ultimately vacated the rule on January 7, 2009 in 
National Cotton Council v. EPA (553 F.3d 927; hereinafter, 
National Cotton Council), concluding that the final rule was 
not a reasonable interpretation of the CWA's permitting 
requirements. The court rejected EPA's contention that, when 
pesticides are applied over, into, or near waterbodies to 
control pests, they are not considered pollutants as long as 
they comply with FIFRA, and held that NPDES permits are 
required for all pesticide applications that may leave a 
residue in water.
    EPA estimated that the ruling would affect approximately 
365,000 pesticide applicators that perform some 5.6 million 
pesticide applications annually. The court's decision, which 
would apply nationally, was to be effective seven days after 
the deadline for rehearing expired or seven days after a denial 
of any petition for rehearing. Parties had until April 9, 2009 
to seek rehearing.
    On April 9, 2009, the government chose not to seek 
rehearing in the National Cotton Council case. The government 
instead filed a motion to stay issuance of the court's mandate 
for two years to provide EPA time to develop an entirely new 
NPDES permitting process to cover pesticide use. As part of 
this, EPA needed to propose and issue a final NPDES general 
permit for pesticide applications, for states to develop 
permits, and for EPA to provide outreach and education to the 
regulated community. Industry groups filed a petition seeking 
en banc review, asking the full Sixth Circuit to reconsider the 
decision from the three-judge panel.
    On June 8, 2009, the Sixth Circuit granted EPA a two-year 
stay of the court's mandate, in response to their earlier 
request. The Sixth Circuit denied the industry groups' petition 
for rehearing in August 2009. The court-ordered deadline for 
EPA to promulgate a new permitting process for pesticides under 
the Clean Water Act was April 9, 2011. On March 3, 2011, EPA 
filed another request for an extension with the court. On March 
28, 2011, the Sixth Circuit granted an extension through 
October 31, 2011. The Court's extension only temporarily 
postponed the need for an NPDES permit for pesticide use, and 
did not obviate the need for this legislation.
    Two petitions were filed with the U.S. Supreme Court in 
December 2009 by representatives of the agriculture community 
and the pesticide industry, requesting that the U.S. Supreme 
Court review the National Cotton Council case. A number of 
parties, including numerous Members of Congress, filed amicus 
briefs with the U.S. Supreme Court, in support of or opposition 
to the petitions. On February 22, 2010, the U.S. Supreme Court 
denied the petitioners' request without comment.

EPA development of a new permitting process to cover pesticide use

    EPA continued to move ahead and developed a new NPDES 
permitting process to cover pesticide use, and on October 31, 
2011, EPA issued a final NPDES Pesticide General Permit for 
point source discharges from the application of pesticides to 
waters of the United States. The permit covers four pesticide 
uses: (1) mosquito and other flying insect pest control; (2) 
aquatic weed and algae control; (3) aquatic nuisance animal 
control; and (4) forest canopy pest control. It does not cover 
terrestrial applications to control pests on agricultural crops 
or forest floors, and does not cover activities exempt from 
permitting under the CWA (irrigation return flow, agricultural 
stormwater runoff) and discharges that will require coverage 
under an individual permit, such as discharges of pesticides to 
waterbodies that are considered impaired under CWA Sec. 303(d) 
for that discharged pesticide. This general permit provides 
coverage for discharges in the states where EPA is the NPDES 
permitting authority. In the remaining states, the states are 
authorized to develop and issue the NPDES pesticide permits.

Implications

    The Committee has received testimony and other information 
on the implications of the Sixth Circuit's holding in the 
National Cotton Council case, and the new permitting process 
that EPA has had to develop under the CWA as a result of that 
holding, on state and local agencies, mosquito control 
districts, water districts, pesticide applicators, agriculture, 
forest managers, and other stakeholders. On February 16, 2011, 
the Subcommittee on Water Resources and Environment of the 
House Committee on Transportation and Infrastructure held a 
joint hearing with the Nutrition and Horticulture Subcommittee 
of the House Committee on Agriculture to consider means for 
reducing the regulatory burdens posed by the case, National 
Cotton Council v. EPA (6th Cir. 2009), and to consider related 
draft legislation.
    Despite being limited to four categories of pesticide uses, 
EPA's new general permit for covered pesticides stands to be 
the single greatest expansion of the permitting process in the 
history of the NPDES program. EPA has estimated that it can 
expect approximately 5.6 million covered pesticide applications 
per year by approximately 365,000 applicators--virtually 
doubling the number of entities currently subject to NPDES 
permitting. (U.S. EPA, Fact Sheet for 2010 Public Notice of: 
Draft National Pollutant Discharge Elimination System (NPDES) 
Pesticides General Permit (PGP) for Discharges from the 
Application of Pesticides to or over, including near Waters of 
the U.S., at 14, available at http://www.epa.gov/npdes/pubs/
proposedXpgpXfs.pdf.)
    With this unprecedented expansion comes real and tangible 
burdens for EPA and the states that will have to issue the 
permits, those whose livelihoods depend on the use of 
pesticides, and even everyday citizens going about their daily 
lives.
    EPA has said that they will be able to conform the current 
process to meet the Sixth Circuit's mandate. Even so, much of 
the responsibility of developing and issuing general permits 
falls on the states. Forty-five states (and the Virgin Islands) 
are now facing increased financial and administrative burdens 
in order to comply with the new permitting process. In a time 
when too many states are being forced to make difficult 
budgetary cuts, the nation cannot afford to impose more 
financial burdens.
    The expanded permitting process also imposes enormous 
burdens on pesticide users who encompass a wide range of 
individuals from state agencies, city and county 
municipalities, mosquito control districts, water districts, 
pesticide applicators, farmers, ranchers, forest managers, 
scientists and others. The new and duplicative permitting 
process is increasing both the administrative difficulty and 
costs for pesticide applicators to come into compliance with 
the law. Compliance no longer means simply following 
instructions on a pesticide label. Instead, applicators have to 
navigate a complex process of identifying the relevant permit, 
filing with the regulatory authority a valid notice of intent 
to comply with the permit and having a familiarity with all of 
the permit's conditions and restrictions. Along with increased 
administrative burdens comes an increased monetary burden. 
Estimates are that the cost associated with the EPA permit 
scheme to small businesses could be as high as $50,000 per 
business, annually.
    In addition to the costs of coming into compliance, 
pesticide users are subject to an increased risk of litigation 
and exorbitant fines. Applicators not in compliance face fines 
of up to $37,500 per day per violation, not including 
attorney's fees. Given the fact that a large number of 
applicators have never been subject to NPDES and its permitting 
process, even a good faith effort to be in compliance could 
fall short. Moreover, the CWA allows for private actions 
against individuals who may or may not have committed a 
violation. Thus, while EPA may exercise its judgment and 
refrain from prosecuting certain applicators, they remain 
vulnerable to citizen suits. Unless Congress acts, hundreds of 
thousands of farmers, foresters, and public health pesticide 
users will remain under the constant threat of lawsuits, now 
that the Sixth Circuit's April 9, 2011 deadline has passed.
    It is not only pesticide regulators and applicators who are 
being affected by the new permitting requirements. Rather, the 
Sixth Circuit's decision is affecting everyday citizens, who 
rely on the benefits provided by pesticides and their 
responsible application. Pesticide use is an essential part of 
agriculture. Imposing a burdensome and duplicative permitting 
process on our nation's farmers threatens their ability to 
continue to provide the country with a safe and reliable food 
supply. Many family farmers and small applicators lack the 
resources to ensure compliance with a cumbersome and detailed 
permit scheme. Moreover, for those farmers who are able to 
comply, delays that are inherent in permitting schemes are ill-
suited for prompt pest control actions necessary in 
agriculture. Failure to apply a pesticide soon after a pest is 
first detected could result in recurring and greater pest 
damage in subsequent years if a prolific insect were to become 
established in plant hosts. The Secretary of Agriculture, Hon. 
Thomas J. Vilsack, has said that a permitting system under the 
CWA for pesticide use ``is ill-suited to the demands of 
agricultural production.'' (Letter, Hon. Thomas J. Vilsack, 
Secretary of Agriculture, to Hon. Lisa P. Jackson, 
Administrator, U.S. Environmental Protection Agency, Subject: 
The National Cotton Council of America, et al., v. United 
States Environmental Protection Agency (Mar. 6, 2009)).
    Forest landowners also stand to suffer under the new permit 
scheme. EPA's permit scheme stands to result in a reduction in 
the use of forest pest control as a forest management tool, 
resulting in the acceleration of tree mortality and general 
decline in overall forest health. It also is erecting barriers 
for the control of pests, such as Gypsy Moth and Forest Tent 
Caterpillar. This may result in a higher incidence of 
preventable tree kills and defoliated landscapes.
    The Committee also recognizes the importance of the aerial 
application of pest control tools. These tools are useful not 
only to ensure overall food safety and food security, but also 
to promote public health through improved mosquito control 
techniques. The ARS Aerial Application Technology Program 
conducts innovative research making aerial applications more 
efficient, effective, and precise. This program has yielded 
more effective public health control programs, as well as 
increased efficiencies and greater crop production. Research 
for aerial application serves the public interest as a vital 
tool for the future.
    Finally, the Sixth Circuit's holding could have significant 
implications for public health. The National Centers for 
Disease Control officially recognizes the following as a 
partial list of mosquito-borne diseases--Eastern Equine 
Encephalitis, Japanese Encephalitis, La Crosse Encephalitis, 
St. Louis Encephalitis, West Nile Virus, Western Equine 
Encephalitis, Dengue Fever, Malaria, Rift Valley Fever, and 
Yellow Fever. (Centers for Disease Control and Prevention, 
http://www.cdc.gov/ncidod/diseases/listXmosquitoborne.htm.) 
EPA's permit program poses the possibility of critical delays 
in emergency responses to insect and disease outbreaks and 
stands to divert resources from controlling environmental pests 
to litigation and administrative burdens.

Development of legislation in response to the Sixth Circuit decision

    As a result of concerns raised by Federal, state, local, 
and private stakeholders regarding the interrelationship 
between FIFRA and the CWA and the concerns posed by the new and 
duplicative permitting process under the CWA, the House 
Committee on Transportation and Infrastructure and House 
Committee on Agriculture sought technical assistance from EPA 
to draft very narrow legislation targeted only at addressing 
the Sixth Circuit's holding in National Cotton Council and 
return the state of pesticide regulation to the status quo--
before the courts got involved. The Provisions of Section 10017 
are based on the technical assistance that EPA provided to the 
Committees, and is intended to be consistent with EPA's final 
rule from November 2006. The bill amends FIFRA and the CWA to 
eliminate the requirement of an NPDES permit for applications 
of pesticides authorized for sale, distribution, or use under 
FIFRA.

Sulfuryl Fluoride

    On May 1, 2012, EPA published a Federal Register notice 77 
Fed. Reg. 25661 requesting additional comment on several issues 
raised during the agency's January 19, 2011, request for 
comments on the proposed tolerance revocation and stay request 
for the pesticide sulfuryl fluoride. In its latest request, EPA 
asked the public to provide additional information on several 
issues that were raised by commenters on EPA's earlier 
proposal, including certain legal issues regarding the 
implementation of Federal Food, Drug, and Cosmetic Act section 
408 and factual issues regarding the availability of 
alternatives to sulfuryl fluoride and impacts that would result 
if it were no longer available as a fumigant.
    The Committee appreciates the EPA's efforts to come to 
terms with what the Agency admits are ``the unusual 
circumstances'' surrounding the application of certain risk 
assessment policies in a situation where the vast majority of 
exposure results from fluoride sources other than sulfuryl 
fluoride, including naturally occurring sources. The current 
proposal continues however to cast doubt over the use of an 
important pesticide that, with the strong encouragement of the 
EPA, was adopted by the agriculture and food industries. The 
Committee is concerned that the reluctance to use sulfuryl 
fluoride by producers and related businesses during a lengthy 
administrative process may contribute to higher food costs and 
pose considerable challenges to maintaining food safety. For 
that reason, the Committee urges the EPA Administrator to 
withdraw the proposed order until such time as the relevant 
legal and factual issues have been resolved.

                        Title XI--Crop Insurance

    Over the course of the past 20 years, the United States has 
gone from ensuring 83 million acres to 264 million acres, a 218 
percent increase. Over that same period, the value of 
production protected by crop insurance has risen from roughly 
$11.3 billion in 1992 to $113.5 billion in 2011. Vast 
improvements in crop insurance over the past 20 years have 
resulted in growers taking up this tool as the cornerstone of 
their risk management strategy. With crop insurance, farmers 
have ``skin'' in the game, paying in a record $4.5 billion in 
crop insurance premiums in 2011.
    Through several audit, field, and Washington-based hearings 
in preparation for writing the farm bill--along with countless 
meetings with farmers and farm groups--the resounding message 
the Committee heard was that we should do no harm to crop 
insurance.
    The Committee heeded the message of not harming crop 
insurance and has used the opportunity to make several 
improvements, building on the tool that has become the 
cornerstone of the risk management framework for our nation's 
farmers.

Information sharing

    The Committee recognizes that many of the errors discovered 
in the delivery of crop insurance are due to the agent or the 
approved insurance provider not receiving information from the 
Farm Service Agency or not receiving that information in a 
timely manner. The Committee expects the Department of 
Agriculture to ensure that the Farm Service Agency (FSA) shares 
information with agents and approved insurance providers (AIPs) 
in a timely manner to ensure effective coverage for producers 
and to reduce errors.

Publication of information on violations of prohibition on premium 
        adjustments

    The Committee has consistently sought to enjoin rebating 
under federal crop insurance. The Committee remains concerned 
about inadequate enforcement, as well as overly broad 
interpretations of the very limited exceptions that have been 
statutorily granted. The Committee expects the Department to 
enhance enforcement efforts, give the narrowest application to 
the exceptions granted, and to publish violations as required 
by this section in order to provide clear guidance on what is 
permissible under the statute. That being said, finite 
enforcement resources and judgment require the Department to 
focus on activities that are serious and plain violations 
rather than discovering ``rebates'' in long-standing business 
practices that have, heretofore, existed in harmony alongside 
anti-rebating rules without a detrimental effect on crop 
insurance.

Supplemental Coverage Option

    The Committee recognizes that budget conditions have 
greatly limited the resources available under Title I of the 
Farm Bill and that this requires the Department to use 
authorities granted under the Federal Crop Insurance Act to 
help fill at least a part of the void. The Supplemental 
Coverage Option (SCO), which statutorily requires that 
producers be allowed to supplement individual yield or revenue 
policies with area-based yield or revenue policies on the same 
acreage, is an essential part of this effort and, as such, must 
be made available for the 2013 crop year for all producers in 
all counties seeking such coverage.
    The Committee understands that the Department has cited 
limited data as a possible reason to delay availability in 
certain counties and for certain crops. However, the Committee 
observes that this section and section 11008 of this Act 
greatly enhances the Department's capacity to gather and use 
the necessary data for timely implementation for the 2013 crop 
year. The Committee particularly expects that SCO will also be 
implemented for the 2013 crop year for crops that have a 
history of low participation and coverage levels under crop 
insurance, including rice and peanuts in all counties where 
these crops are produced. The Committee encourages the 
Department to work to ensure that price discovery issues do not 
impede availability of SCO to any producer, including producers 
of medium grain rice.
    Finally, the Committee would note that the Federal Crop 
Insurance Act is a broad grant of statutory authority which 
already authorizes SCO even without the express grant now 
provided under this section. The Committee is concerned that 
specific legislation is frequently required to address producer 
needs that could and should be met under the general grant of 
authority and urges the Department to exercise its authority to 
meet producer needs under this general grant rather than wait 
for Congress to require it. This is both in the interest of 
producers and to ensure that the broad, organic statute does 
not become a patchwork of specific requirements.
    The Committee also expects that the Department will approve 
margin coverage in time for the 2013 crop year and specifically 
grants legal authority to offer such coverage under the Act.
    The Committee would note in this instance as well as in the 
case of SCO that such legal authority already exists without 
the express approval of margin coverage under this section. 
Moreover, the Committee is concerned that the Department is 
applying the limitations imposed under the Federal Crop 
Insurance Act, generally, on the development of new policies 
under section 508(h) of the Federal Crop Insurance Act when the 
Act expressly instructs the Department not to do so. Section 
508(h)(2) specifically excuses section 508(h) submissions from 
limitations generally applicable under the statute, yet the 
Department has applied these limitations nevertheless. The 
Committee expects the Department to give meaning to the 
statutory instruction that ``a policy or other material 
submitted to the Board under this subsection may be prepared 
without regard to the limitations contained in this subtitle'' 
without the need for a statutory restatement. Finally, the 
Committee expects that a producer may purchase additional 
coverage, margin coverage, and SCO on the same acreage since 
margin coverage is meant to be a supplement to additional 
coverage.

Repeal of performance-based discount

    The Committee notes that any number of discounts or rebates 
have been tested in previous years and have failed. Amendments 
to the statute made in this Act and previous Acts have largely 
eliminated the authority for discounts and rebates and the 
inequities on produces and increased burdens on delivery that 
these schemes tend to generate. For this reason, the Committee 
expects the Department to avoid the expansion of activities 
operating under any authorities that remain.

Permanent Enterprise Unit Subsidy

    The Committee would observe that the Department has the 
authority to carry out the enhanced premium support of 
Enterprise Units without the express authority the Committee 
now grants in this section. The Committee expects the 
Department to continue to carry out the enhanced premium 
support of Enterprise Units in a manner that makes such an 
election at least as cost-effective to producers as it was 
prior to enactment of this legislation.

Enterprise Units for Irrigated and Non-Irrigated Crops

    The Committee restates that authority already exists to 
achieve this important goal for producers and expects the 
Department to implement this section in time for the 2013 crop 
year as required by this amendment to the statute.

Data collection

    The authority granted under this section is to ensure, 
among other things, that SCO and the Stacked Income Protection 
Plan for Upland Cotton (STAX) are offered in all counties for 
the 2013 crop year.

Adjustment in actual production history to establish insurance yields

    The Committee intends to reduce the double deductible 
producers face due to actual deductibles and those unintended 
deductibles created by artificially low Actual Production 
Histories (APHs). The Committee urges an aggressive effort to 
address this problem through the use of the authorities under 
this section and other authorities, including through a greatly 
expanded use of personal T-Yields and other effective 
approaches.

Submission and approval of pilot programs and other policies

    For the same reason, the Committee elected not to make 
changes to the private submission process established under 
section 508(h) of the Federal Crop Insurance Act in order to 
foster the greatest possible flexibility in the development of 
policies that will effectively serve producers. The Committee 
expects that a revenue policy for peanut producers as well as 
margin coverage and downed rice coverage for rice producers 
will be made available to producers in time for the 2013 crop 
year. The Committee further expects the Department to approve 
the separating of enterprise units by risk rating so that such 
enterprise unit coverage is available in time for the 2013 crop 
year.

Equitable relief for specialty crop producers

    The Committee recognizes that specialty crop contracts were 
especially and unfairly impacted by the Standard Reinsurance 
Agreement (SRA) and provides $41 million for each of the 2011 
through 2015 reinsurance years in order to mitigate the adverse 
impacts. With respect to future reinsurance years to which this 
section applies, the Committee intends that the additional 
amounts provided to approved insurance providers be paid to 
agents at the same time as amounts paid pursuant to the ``soft 
cap'' on administrative and operating expenses.
    The Committee further intends that the disbursements made 
under this section be paid without regard to the conditions 
imposed on the payment of administrative and operating expense 
amounts above the ``soft cap.'' Finally, the Committee expects 
the Department to ensure that amounts made available with 
respect to previous or current reinsurance years are disbursed 
by approved insurance providers to agents in a manner 
consistent with payments made in those years under the ``soft 
cap.''
    The Committee underscores that the provision of this 
equitable relief does not in any way provide statutory assent 
to the administrative imposition of limits on administrative 
and operating expenses or compensation to agents under the SRA.

Budget limitations on renegotiation of the standard reinsurance 
        agreement

    The Committee expects the Department to negotiate budget 
neutral Standard Reinsurance Agreements. To the extent that 
there are any savings from such an agreement, such savings must 
be used to increase premium assistance to producers, enhance 
administrative and operating expense reimbursement to ensure 
effective delivery, or fund pilot programs. The Committee notes 
the extraordinary cuts made in the last SRA, much through 
administratively imposed restrictions on administrative and 
operating expense reimbursement and on agent compensation 
although authority for such restrictions is not to be found in 
statute. While the statute is broad, it expressly states 
administrative and operating expense reimbursement rates, and 
had never before been construed to authorize government 
intervention into private contracts between approved insurance 
providers and agents.
    The Committee recognizes the covenants not to sue over 
these provisions, imposed on approved insurance providers who 
are privy to a contract with the federal government and on 
agents who are not privy to contract, as an acknowledgement by 
the Department of these issues. The Committee expects that the 
Department will consult the committees of jurisdiction more 
closely in future negotiations of the SRA, correct the 
overreaches of the 2011 SRA, and consult with agent 
representatives in such negotiations given the impact the SRA 
now has on agents both in terms of finances and workload. The 
Committee also recognizes that agents are the eyes and ears of 
crop insurance on the ground and encourages the Department to 
involve agents in the promulgation of rules, regulations, and 
policies of crop insurance in order to preempt program 
vulnerabilities before they occur.

Crop production on native sod

    The Committee considered this issue carefully and opted to 
confine the section's reach to the Prairie Pothole National 
Priority Area. The section contains prescriptive requirements 
and also broader authority to effectuate its purpose. The 
Committee expects the Department to exercise any discretion it 
may have in carrying out this section in a manner that is 
balanced and not overly onerous on producers.

Coverage levels by practice

    The Committee expects the Department to allow producers to 
elect different coverage levels by irrigation practice 
beginning with the 2014 crop year as provided for in this 
section. However, the Committee encourages the Department to 
implement this section earlier if practicable.

Beginning farmer and rancher provisions

    The Committee expects the Department to carry out this 
section in a manner that imposes minimal burden on beginning 
farmers and ranchers, producers, approved insurance providers, 
and agents.

Stacked income protection plan for producers of upland cotton (STAX)

    In order to address a World Trade Organization (WTO) 
dispute, U.S. cotton policy is fundamentally altered under the 
provisions of this Act, sharply limiting cotton producer 
support under the commodity title to the marketing loan. The 
Committee expects such coverage to be offered to all cotton 
producers in all counties in time for the 2013 crop year. The 
section would provide the bulwark of risk management for cotton 
producers through crop insurance and so this section's 
implementation in 2013 is essential. Provisions in this section 
and section 11008 enable the Department to implement this 
policy for cotton producers in a timely manner. The Committee 
expects the Corporation to cover the costs of that portion of 
indemnities attributable to the reference price.

Peanut revenue crop insurance

    The Committee expects the peanut revenue policy required 
under this section to be made available in time for the 2013 
crop year. With substantially declining support under the 
commodity title, producers are expected to assume greater 
responsibility in managing price and production risks on the 
farm. In order to achieve this, all producers of all crops in 
all regions need access to risk management tools that they can 
purchase that are cost-effective on their operations.

Authority to correct errors

    The Committee views the sharing of information required 
under section 11001 and the authority to correct errors as key 
components to ensuring that producers have effective coverage 
in place at the time of a loss and to protecting program 
integrity. The Committee expects the Department to implement 
this section in a manner that does not eliminate any 
authorities or practices preexisting the enactment of this Act 
that permit the correction of errors but rather as additive 
authority.
    The Committee relied heavily upon the Department for its 
drafting and policy expertise in crafting this section, the 
spirit of which is intended by the Committee to allow the 
correction of unintentional errors to the maximum extent 
practicable. Neither program nor producer is served if coming 
forward with unintentional errors is punished as it may chill 
attempts at correction while leaving the producer without 
coverage if and when the error is discovered.

Implementation

    The Committee expects the Department to work closely with 
the FSA, the RMA, approved insurance providers, and agent and 
producer representatives in developing any acreage report 
streamlining initiative project to ensure that the best 
interests of the producer are served.

Research and development priorities

    The Committee expects the Department to make the 
development of policies that increase the participation of 
underserved commodities a priority, particularly policies 
serving sweet sorghum, biomass sorghum, rice, peanuts, and 
sugarcane.

Additional research and development contracting requirements

    The Committee expects the Department to develop effective 
margin coverage for catfish producers and further emphasizes 
the need for the development of policies that effectively serve 
energy-dedicated biomass sorghum and sweet sorghum, as is 
required under this Act.

Pilot programs

    The Committee expects this provision to further remove 
unnecessary impediments to the initiation of pilot programs 
designed to test the effectiveness of risk management tools for 
producers.

Noninsured crop assistance program (NAP)

    The Committee is concerned that the improvements to NAP not 
impede the development of crop insurance policies for crops 
served by NAP. The Committee affirms the goal of developing 
effective crop insurance policies for all producers, crops, and 
regions so that producers meaningfully pay for the risk 
management coverage on their operations. Reliance on NAP should 
be a last resort.
    The Committee recognizes the need for NAP to provide 
financial assistance to producers of non-insured crops, such as 
fern fronds, when low yields, loss of inventory, or prevented 
planting occurs due to natural disasters. With respect to NAP 
coverage, the Committee expects the inventory values of fern 
fronds to be counted separately from rooted fern plants.

                        Title XII--Miscellaneous


Mandatory Country of Origin Labeling Report

    On June 29, 2010 the World Trade Organization finalized the 
ruling on Canadian and Mexican challenges to the United States' 
mandatory country of origin law with respect to beef and pork. 
The decision was adverse to elements of mandatory country of 
origin labeling. A question remains as to whether or not the 
issue can be resolved administratively or require changes in 
the statute. The Committee expects that the Secretary will 
report to Congress how the Administration will bring the 
Administration into compliance with this decision. The 
Committee does not intend this provision to presuppose that 
determination.

GIPSA

    The Committee addresses regulations prompted by Section 
11006 of the Food, Conservation, and Energy Act of 2008, which 
were proposed by the U.S. Department of Agriculture on June 22, 
2010 and titled ``Implementation of Regulations Required Under 
Title XI, of the Food, Conservation and Energy Act of 2008''. 
On July 20, 2010, the Livestock, Dairy & Poultry Subcommittee 
of the House Committee on Agriculture conducted a hearing on 
Farm Bill programs under its jurisdiction administered by USDA. 
During the hearing a broad array of concerns were expressed by 
Members of the Committee. Members asserted that the proposed 
rule went far beyond the scope of the Farm Bill, lacked a sound 
economic analysis necessary to judge both the need and utility 
of the proposed rule and may have been the result of a flawed 
rulemaking process.
    On October 1, 2010, 115 Members of the House wrote the 
Secretary of Agriculture requesting a cost benefit analysis 
that has yet to be conducted. On April 6, April 13, and May 4, 
2011 the Livestock, Dairy & Poultry Subcommittee conducted 
hearings on the beef, pork, and poultry sectors respectively. 
During these hearings, representatives from the beef, poultry 
and pork sectors testified about the challenges facing their 
communities, including the proposed GIPSA regulation. On May 
18, 2011, 147 Members wrote the Secretary requesting him to 
withdraw the rule and repropose with an economic analysis.
    The FY 2012 Agriculture Appropriations, H.R. 2112, 
contained Section 721 barring USDA work on major portions of 
proposed rule. The Appropriations Committee-reported 
appropriations for FY 2013, H.R. 5973, contains Section 719, 
barring USDA action on these same components of the proposed 
rule and repealing three items on which the Administration had 
completed rulemaking.
    The Committee asserts that the Packers and Stockyards Act 
has an important role to play in our livestock markets. That 
said, the Committee continues to express its concerns with 
actions taken thus far to implement the 2008 amendments. The 
Committee action seeks to codify language similar to that 
adopted in 2011 with Section 721 of H.R. 2112 as modified by 
Section 719 of H.R. 5973, except that the Committee reported 
bill would prohibit the Secretary from issuing similar 
regulations or adopting similar policies in the future.

Meat and Poultry Processing Report

    The Committee reported bill directs the Secretary to submit 
a report to Congress detailing steps that the Department can 
take to better meet the needs of federally and State inspected 
small and very small meat and poultry slaughter and processing 
plants, and to improve the electronic submission and approval 
process for labels. As it weighs various options to improve 
public access to label approval process information, the 
Committee suggests the Department consider publishing a user-
friendly web page that includes relevant information.
    The Committee intends that in developing the report, the 
Secretary will include input from niche market livestock and 
poultry producers. The report should build upon and update, as 
appropriate, the 2006-2007 FSIS Strategic Implementation Plan 
for Strengthening Small and Very Small Plant Outreach, and 
should focus on assistance that can be offered to meet the 
requirements of the Federal Meat Inspection Act and the Poultry 
Products Inspection Act. In addition, the Committee intends 
that the Secretary will consider the needs of custom and mobile 
slaughter and processing plants in meeting the requirements for 
receiving USDA official marks of inspection.

                           Section-By-Section


Sec. 1. Short Title; Table of Contents

Sec. 2. Definition of Secretary of Agriculture

                          Title I--Commodities


                    SUBTITLE A--REPEALS AND REFORMS

Sec. 1101. Repeal of Direct Payments

    Section 1101 repeals direct payments effective with the 
2013 crop year.

Sec. 1102. Repeal of Counter-Cyclical Payments

    Section 1102 repeals the counter-cyclical payments 
effective with the 2013 crop year.

Sec. 1103. Repeal of Average Crop Revenue Election Program

    Section 1103 repeals the Average Crop Revenue Election 
(ACRE) program effective with the 2013 crop year.

Sec. 1104. Definitions

    Section 1104 contains majority and all common definitions 
for the Title.

Sec. 1105. Base Acres

    Section 1105 continues the Secretary's authority to provide 
for adjustments to base acres for covered commodities and 
cotton when a CRP contract is terminated, acres are released 
from the CRP or when the Secretary designates additional 
oilseeds in the same manner as current law.

Sec. 1106. Payment Yields

    Section 1106(a) continues the Secretary's authority to 
establish payment yields for each farm for any designated 
oilseed that does not have a payment yield.
    Section 1106(b) continues the method of determining the 
payment yield for designated oilseeds in the same manner as 
current law.
    Section 1106(c) authorizes the Secretary to establish a 
payment yield if no payment yield is otherwise established for 
a covered commodity using the program payment yields of 
similarly situated farms.
    Section 1106(d) In time for the 2013 crop year, the owner 
of the farm can update the payment yields of each covered 
commodity once.

Sec. 1107. Farm Risk Management Election

    Section 1107(a) states that producers with more than 10 
planted acres of covered commodities may elect Price Loss 
Coverage or Revenue Loss Coverage.
    Section 1107(b) makes producers eligible for a price loss 
coverage payment for covered commodities for the 2013-2017 crop 
years when the effective price for a covered commodity is less 
than the reference price for the covered commodities. The 
effective price is the higher of the national average market 
price for a covered commodity for the first 5 months of the 
marketing year (the midseason price) and the national average 
marketing loan rate established in subtitle B. The reference 
prices are set in Sec. 1104(16). If a payment is required, the 
payment will be the difference between the reference price and 
the effective price multiplied by the payment yield (defined in 
Sec. 1104(12)) and the payment acres (defined in 
Sec. 1104(11)). The Secretary shall make price loss coverage 
payments on October 1, or as soon as practicable thereafter, 
after the applicable marketing year for the covered commodity.
    Section 1107(c) offers an alternative to price loss 
coverage. A farmer can make a one-time, irrevocable election on 
a crop by crop, farm by farm basis to receive revenue loss 
coverage. Farmers will receive revenue loss coverage payments 
for the 2013-2017 crop years when the actual county revenue for 
a covered commodity in a crop year is less than the county 
revenue loss trigger for the covered commodity.
    The actual farm revenue is the product of multiplying the 
actual county yield for each planted acre of the covered 
commodity and the higher the first 5 months of the marketing 
year (the midseason price) or the national average marketing 
loan rate established in subtitle B. The county revenue loss 
coverage trigger for a covered commodity is 85 percent of the 
benchmark county revenue.
    The benchmark county revenue is the average historical 
county yield of a covered commodity in a county for the most 
recent 5 years, excluding the highest and the lowest, subject 
to the average national marketing year price. In calculating 
the benchmark county revenue the Secretary shall use the higher 
of the historical county yield or 70 percent of the historical 
county transitional yield. For price the Secretary shall use 
the higher of the national marketing year average price or the 
reference price (set in Sec. 1104(16)).
    The payment rate is the difference between the county 
revenue loss coverage trigger for the covered commodity and the 
actual county revenue for the crop year for the covered 
commodity or 10 percent of the benchmark county revenue for the 
crop year for the covered commodity.
    If payments are required the payment amount is the 
determined by multiplying the payment rate and the payment 
acres of the covered commodity on the farm. Payments are to be 
made on October 1 or as soon as practicable thereafter, after 
the applicable marketing year for the covered commodity.

Sec. 1108. Producer Agreements

    Section 1108 states that before a producer of a covered 
commodity can receive a payment under section 1107 he or she 
must comply with sod buster provisions in subtitle B of title 
XII of the '85 act, and the swampbuster provisions of subtitle 
C of the title XII of the '85 act, keep the land in agriculture 
or conserving use, and effectively control noxious weeds.
    If a producer sells or otherwise transfers his farm to 
someone else, the new owner or operator must assume all of the 
compliance obligations or the right to either the price loss 
coverage payment or the revenue loss coverage payment is 
terminated.
    The producer is still required to submit to the Secretary 
acreage reports. Accidental errors in the reports will not 
result in loss of payment.
    The Secretary shall provide adequate safeguards to protect 
the interest of tenants and sharecroppers and for sharing the 
payments among the producers on a farm on a fair and equitable 
basis.

Sec. 1109. Period of Effectiveness

    Section 1109 sets 2013-2017 as the period of effectiveness 
for this subtitle.

                      SUBTITLE B--MARKETING LOANS

Sec. 1201. Availability of Nonrecourse Marketing Assistance Loans for 
        Loan Commodities

    Section 1201 authorizes nonrecourse loans for loan 
commodities for 2013-2017 crop years in the same manner as 
current law. It also includes a requirement that producers 
comply with certain conservation requirements.

Sec. 1202. Loan Rates for Nonrecourse Marketing Assistance Loans

    Section 1202 continues current law establishing loan rates 
for commodities, except for an adjustment to upland cotton, as 
follows for the 2013-2017 crop years:
    Wheat, $2.94 (same as current law)
    Corn, $1.95 (same as current law)
    Grain Sorghum, $1.95 (same as current law)
    Barley, $1.95 (same as current law, though now using the 
all barley price)
    Oats, $1.39 (same as current law)
    Upland Cotton, for the 2013 and each subsequent crop year, 
the simple average of the adjusted prevailing world price for 
the 2 immediately preceding marketing years, but in no case 
less than $0.47 per pound or more than $0.52 per pound.
    Extra long staple cotton, $0.7977 (same as current law)
    Long grain rice, $6.50 (same as current law)
    Medium/short grain rice, $6.50 (same as current law)
    Soybeans, $5.00 (same as current law)
    Other oilseeds, $10.09 (same as current law)
    Dry Peas, $5.40 (same as current law)
    Lentils, $11.28 (same as current law)
    Small Chickpeas, $7.43 (same as current law)
    Large Chickpeas, $11.28 per hundredweight (same as current 
law)
    Peanuts, $355 per ton (same as current law)
    Graded wool, $1.15 (same as current law)
    Non-graded wool, $0.40 (same as current law)
    Honey, $0.69 (same as current law)
    Mohair, $4.20 (same as current law)

Sec. 1203. Term of Loans

    Section 1203 continues the provisions of the current law on 
the terms of loans: 9 months; no extensions.

Sec. 1204. Repayment of Loans

    Section 1204 requires the repayment of marketing assistance 
loans in the same manner as current law.

Sec. 1205. Loan Deficiency Payments

    Section 1205 authorizes loan deficiency payments for 2013-
2017 crop years under same conditions as 2002 Farm Bill.

Sec. 1206. Payments In Lieu of Loan Deficiency Payments for Grazed 
        Acreage

    Section 1206 continues the authorization for payments in 
lieu of LDPs for producers who have grazed acreage for the 
2013-2017 crop years under in the same manner as current law.

Sec. 1207. Special Marketing Loan Provisions for Upland Cotton

    Section 1207 continues the authorization for the President 
to issue special import quota for the 2013-2017 crop year in 
the same manner as current law using only official USDA data.

Sec. 1208. Special Competitive Provisions for Extra Long Staple Cotton

    Section 1208 continues the authorization through July 31, 
2013 of the special competitive provisions for extra long 
staple cotton in the same manner as current law.

Sec. 1209. Availability of Recourse Loans for High Moisture Feed Grains 
        and Seed Cotton

    Section 1209 continues the authorization for recourse loans 
for these crops for the 2013-2017 crop years in same manner as 
current law.

Sec. 1210. Adjustment of Loans

    Section 1210 authorizes the Secretary to adjust loan rates.

                           SUBTITLE C--SUGAR

Sec. 1301. Sugar Program

    Section 1301 reauthorizes the sugar program requiring the 
Secretary to administer the program in the same manner as 
current law.

                           SUBTITLE D--DAIRY

Part I--Dairy Producer Margin Protection and Dairy Market Stabilization 
                                Programs


Sec. 1401. Definitions

    Section 1401 defines the terms used in the Dairy Producer 
Margin Protection and Dairy Market Stabilization Programs, 
including that a ``participating dairy producer'' is a dairy 
producer that registers for the dairy producer margin 
protection program, and, as a result of the registration, also 
participates in the dairy market stabilization program.

Sec. 1402. Calculation of Average Feed Cost and Actual Dairy Producer 
        Margins

    Section 1402 establishes that the average feed cost be 
calculated each month using the price of corn, the price of 
soybean meal in central Illinois, and the price of alfalfa hay, 
as reported by the Secretary.
    For use in the margin protection program, directs the 
Secretary to calculate the actual dairy producer margin for 
each consecutive 2 month period by subtracting the average feed 
cost from the all-milk price for that period.
    For use in the stabilization program, directs the Secretary 
to calculate the actual dairy producer margin for each 
preceding month by subtracting the average feed cost from the 
all-milk price for that period.

          Subpart A--Dairy Producer Margin Protection Program


Sec. 1411. Establishment of Dairy Producer Margin Protection Program

    Section 1411 directs the Secretary to establish a dairy 
producer margin protection program by providing basic margin 
protection payments when margins are less than a $4 threshold 
level, and providing supplemental margin protection up to an $8 
margin if purchased by the producer.

Sec. 1412. Participation of Dairy Producers in Margin Protection 
        Program

    Section 1412 establishes that all dairy producers in the 
United States are eligible to participate in and sign-up for 
the margin protection program to receive basic margin 
protection, and, if the producer so chooses, to purchase 
supplemental margin protection.

Sec. 1413. Production History of Participating Dairy Producers

    Section 1413 establishes the production history of 
producers.

Sec. 1414. Basic Margin Protection

    Section 1414 establishes a basic margin protection program 
under which participating dairy producers receive a basic 
margin protection payment when the average actual dairy 
producer margin falls below $4.00 for a consecutive two-month 
period.

Sec. 1415. Supplemental Margin Protection

    Section 1415 establishes that a dairy producer may purchase 
supplemental margin protection on a yearly basis to protect a 
higher level of income than under the basic margin program.

Sec. 1416. Effect of Failure To Pay Administrative Fees and Premiums

    Section 1416 mandates that a dairy producer, who elects to 
participate in the basic or supplemental margin protection 
programs and fails to pay the required administrative fees or 
premiums, may not receive basic or supplemental margin 
protection payments and remains legally obligated to pay such 
fees or premiums.

             Subpart B--Dairy Market Stabilization Program


Sec. 1431. Establishment of Dairy Market Stabilization Program

    Section 1431 establishes a dairy market stabilization 
program which is triggered when the actual dairy producer 
margin has been $6 or less per hundredweight of milk for the 
immediately preceding 2 months or $4 or less for the 
immediately preceding month. If the stabilization program is 
triggered, the Secretary will order reduced payments for the 
participating producer that exceeds the applicable percentage 
of the producer's stabilization base.

Sec. 1432. Threshold for Implementation and Reduction in Dairy Producer 
        Payments

    Section 1432 requires the Secretary to announce that the 
stabilization program is in effect and payment reductions are 
required.

Sec. 1433. Producer Milk Marketing Information

    Section 1433 requires the Secretary to establish a process 
to collect the necessary information while the stabilization 
program is in effect.

Sec. 1434. Calculation and Collection of Reduced Dairy Producer 
        Payments

    Section 1434 requires handlers to reduce payments to 
participating dairy producers during any month in which payment 
reductions are in effect.

Sec. 1435. Remitting Monies to the Secretary and Use of Monies

    Section 1435 requires handlers to remit to the Secretary an 
amount equal to reduced producer payments.

Sec. 1436. Suspension of Reduced Payment Requirement

    Section 1436 lists the thresholds at which the Secretary 
will suspend the stabilization program.

Sec. 1437. Enforcement

    Section 1437 makes it unlawful for any person subject to 
the stabilization program to not provide or to delay the 
reporting of accurate information and remittance of funds to 
the Secretary.

Sec. 1438. Audit Requirements

    Section 1438 is the audit requirements for the 
stabilization program.

                Subpart C--Commodity Credit Corporation


Sec. 1451. Use of Commodity Credit Corporation

    Section 1451 requires the Secretary to use the funds and 
facilities of the CCC to carry out the program.

                   Subpart D--Initiation and Duration


Sec. 1461. Rulemaking

    Section 1461 exempts the programs from the Administrative 
Procedures Act and the Paperwork Reduction Act.

Sec. 1462. Duration

    Section 1462 terminates the margin protection program and 
the stabilization program on December 31, 2017.

  Part II--Repeal or Reauthorization of Other Dairy-Related Provisions


Sec. 1481. Repeal of Dairy Product Price Support and Milk Income Loss 
        Contract Programs

    Section 1481 repeals the dairy price support and milk 
income loss programs.

Sec. 1482. Repeal of Dairy Export Incentive Program

    Section 1482 repeals the dairy export incentive program.

Sec. 1483. Extension of Dairy Forward Pricing Program

    Section 1483 reauthorizes the dairy forward pricing program 
through 2020.

Sec. 1484. Extension of Dairy Indemnity Program

    Section 1484 reauthorizes the dairy indemnity program 
through 2017.

Sec. 1485. Extension of Dairy Promotion and Research Program

    Section 1485 reauthorizes the dairy promotion and research 
program through 2017.

Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission

    Section 1486 repeals the federal milk marketing order 
review commission.

                        Part III--Effective Date


Sec. 1491. Effective Date

    Section 1491 states this subtitle is effective October 1, 
2012.

   SUBTITLE E--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS

Sec. 1501. Supplemental Agricultural Disaster Assistance

    In general, section 1501 authorizes the continuation of 
certain Supplemental Agricultural Disaster Assistance programs, 
previously codified in subtitle B of the Federal Crop Insurance 
Act, as a standalone provision within the bill.
    Section 1501(a) is the definitions section. The section 
strikes definitions that are no longer relevant to the title.
    Section 1501(b) authorizes the Livestock Indemnity Payments 
(LIP) for fiscal years 2012 through 2017. The subsection 
authorizes the Secretary to use such sums as necessary of the 
funds of the Commodity Credit Corporation to be used to make 
livestock indemnity payments to eligible producers for 
livestock losses in excess of normal mortality due to adverse 
weather or attacks by federally reintroduced animals, such as 
wolves or avian predators. It maintains the 75% of the market 
value rate for indemnity.
    Section 1501(c) authorizes the Livestock Forage Disaster 
Program (ELFP) for fiscal years 2012 through 2017. The 
subsection authorizes the Secretary to use such sums as 
necessary from the Commodity Credit Corporation to provide 
compensation to eligible livestock producers for livestock 
losses due to grazing losses caused by drought or fire. 
Coverage includes native or improved pastureland with permanent 
vegetative cover, or land that has crops that are specifically 
planted for the purpose of grazing livestock. However, an 
eligible livestock producer may not receive assistance for land 
used for haying or grazing under the Conservation Reserve 
Program. The language maintains the payment rate for losses 
caused by drought for 1 month at equal to the lesser of 60 
percent of the lesser of the monthly feed cost for all covered 
livestock owned or leased by the eligible producer, or the 
monthly feed cost calculated by using the normal carrying 
capacity of the eligible grazing land of the eligible livestock 
producer. Fire losses continue to be limited to fires that have 
occurred on federally managed land. The section maintains the 
payment rate for losses due to fire at equal to 50 percent of 
the monthly feed costs for the total number of livestock 
covered by the Federal lease of the eligible livestock 
producer. The language eliminates the minimum risk management 
purchase requirement.
    Section 1501(d) authorizes the Emergency Assistance for 
Livestock, Honey Bees, and Farm-Raised Fish (ELAP) for fiscal 
years 2012 through 2017. The subsection authorizes the 
Secretary to use $20,000,000 of the funds of the Commodity 
Credit Corporation to provide emergency relief for producers to 
aid in the reduction of loss due to disease and adverse 
weather. The language clarifies that that loss due to disease 
includes losses from cattle tick fever. The subsection 
maintains the provision that the funds shall remain available 
until expended.
    Section 1501(e) authorizes the Tree Assistance Program 
(TAP) for fiscal years 2012 through 2017. The Secretary is 
authorized to use such sums as are necessary of the funds of 
the Commodity Credit Corporation to provide assistance to 
orchardists and nursery growers for losses of trees due to 
natural disaster. The language provides a reimbursement rate of 
65% of the cost of replanting trees for losses in excess of 15% 
mortality. The language increases the payment cap under TAP to 
$125,000 per crop year. It further maintains the 500 acre limit 
on total number of acres planted in trees or tree seedlings for 
which a person or legal entity shall be entitled to receive 
payments under this subsection.
    Section 1501(f) includes the payment limitation for the 
entire section. The language increases the payment cap for 
total amount of disaster assistance payments, excluding TAP 
payments, to $125,000 received, either directly or indirectly, 
by a person or legal entity. The language eliminated the AGI 
limitation for payments under this section. It further 
maintains the application of direct attribution provisions to 
this section.

                       SUBTITLE F--ADMINISTRATION

Sec. 1601. Administration Generally

    Section 1601 allows the Secretary to use the funds and 
facilities of the Commodity Credit Corporation to carry out 
this title. It also provides for an expedited implementation of 
this title.
    The Secretary's authority to adjust expenditures under this 
title to ensure the United States remains in compliance with 
our international trade agreements is continued in the same 
manner as current law.

Sec. 1602. Suspension of Permanent Price Support Authority

    Section 1602 continues the suspension of permanent price 
authority in the Agriculture Marketing Adjustment Act of 1938 
and the Agricultural Act of 1949.

Sec. 1603. Payment Limitations

    Section 1603 limits the total amount of payments a person 
or a legal entity can receive under subtitle A to $125,000.

Sec. 1604. Adjusted Gross Income Limitation

    Section 1604 replaces the two income limitation test (farm 
and nonfarm income) with a single $950,000 adjusted gross 
income limitation for commodity and conservation programs.

Sec. 1605. Geographically Disadvantaged Farmers and Ranchers

    Section 1605 continues the geographically disadvantaged 
farmers and ranchers program authorization for reimbursement 
payments through 2017 in the same manner as current law.

Sec. 1606. Personal Liability of Producers for Deficiencies

    Section 1606 extends the personal liability of producers 
for deficiencies through 2017 in the same manner as current 
law.

Sec. 1607. Prevention of Deceased Individuals Receiving Payments Under 
        Farm Commodity Programs

    Section 1607 continues the requirement that the Secretary 
prevent deceased individuals from receiving farm commodity 
program payments by reconciling the social security numbers of 
all individuals who received payments under this title with the 
Commissioner of Social Security in the same manner as current 
law.

Sec. 1608. Technical Corrections

    Section 1608 includes technical corrections.

Sec. 1609. Assignment of Payments

    Section 1609 continues the authority of a producer who 
receives a payment under this title to assign the payment to 
someone else after proper notice to the secretary in the same 
manner as current law.

Sec. 1610. Tracking of Benefits

    Section 1610 reauthorizes the Secretary to track the 
benefits provided to individuals getting payments under titles 
I and II in the same manner as current law.

Sec. 1611. Signature Authority

    Section 1611 continues the signature authority of a 
producer in the same manner as current law.

Sec. 1612. Implementation

    Section 1612 requires the Secretary to maintain records on 
base acres and the records for the separate base acres for long 
grain and medium grain rice through 2017. The Secretary shall 
make available to the Farm Service Agency to carry out this 
title $100,000,000.

                         Title II--Conservation


                SUBTITLE A--CONSERVATION RESERVE PROGRAM

Sec. 2001. Extension and Enrollment Requirements of Conservation 
        Reserve Program

    Section 2001(a) extends the Conservation Reserve Program 
(CRP) through fiscal year 2017.
    Section 2001(b) amends the definition of eligible land by 
updating the date for cropping history under highly erodible 
lands; by removing marginal pasture land converted to wetland 
or established as wildlife habitat prior to 1999; by adding 
grasslands as eligible lands; by including filterstrips and 
riparian buffers devoted to trees, shrubs, and grasses as 
cropland that would otherwise be ineligible; and by amending 
the requirement for buffers and filterstrips associated with 
the remainder of a field enrolled in CRP.
    Section 2001(c) amends the requirement for certain lands to 
be considered planted to an agricultural commodity for the 
purposes of determining eligibility to land that was devoted to 
a conserving use during the crop year; and eliminates the 
inclusion of land enrolled in the water bank program.
    Section 2001(d) reduces the acreage cap for fiscal years 
2013-2017:
          FY2012--32,000,000 acres
          FY2013--29,000,000 acres
          FY2014--26,000,000 acres
          FY2015--26,000,000 acres
          FY2016--25,500,000 acres
          FY2017--25,000,000 acres
    It further adds a provision for enrollment of 2,000,000 
acres of grasslands and authorizes the Secretary to give 
priority to expiring CRP contracts to be enrolled under the 
grasslands cap.
    Section 2001(e) eliminates the five-year extension option 
for hardwood trees as well as the additional one-year extension 
for contracts which expired during the 2002 calendar year. 
Owners and operators of land with hardwoods, windbreaks, or 
wildlife corridors may specify the duration of the contract 
within the 10-15 year limitation.
    Section 2001(f) eliminates the specified conservation 
priority area watersheds and leaves the ability to designate a 
priority area--including non-watershed areas--to the discretion 
of the Secretary. It further eliminates the ability for a State 
agency to apply for withdrawal from a designation.

Sec. 2002. Farmable Wetland Program

    Section 2002 extends the Farmable Wetlands Program through 
fiscal year 2017, decreases the program cap from 1,000,000 to 
750,000 acres and makes several changes that are clarifying in 
nature. The program has been further amended so it is no longer 
a pilot program.

Sec. 2003. Duties of Owners and Operators

    Section 2003(a) amends the limitation on harvesting, 
grazing and commercial use of forage by moving it from the 
section establishing the duties of owners and operators to the 
section enumerating the duties of the secretary.
    Section 2003(b) amends the conservation plan requirements 
by eliminating the option for the plan to provide for permanent 
retirement of existing base history.
    Section 2003(c) eliminates the umbrella rental rate 
reduction for certain authorized uses of the land. Similar 
rental rate language appears in the section enumerating the 
duties of the Secretary.

Sec. 2004. Duties of the Secretary

    Section 2004 requires the Secretary to allow for certain 
harvesting, grazing and commercial use of forage in exchange 
for a reduction in the rental rate at not less than 25 percent, 
except for in the case of drought or other emergency created by 
natural disaster, where the activity may occur without any 
reduction in the rental rate. The section provides for the 
incidental use of buffers adjacent to agricultural lands. The 
section adds a new subsection (c) that requires the Secretary 
to permit certain haying and grazing practices on grasslands 
specifically. It adds provisions for individuals with expiring 
contracts to initiate conservation and land improvement 
practices in the final year of the contract with a commensurate 
reduction in rental value. Re-enrollment of these lands is 
prohibited for at least five years.

Sec. 2005. Payments

    Section 2005(a) is a technical conforming amendment in 
response to the elimination of section 1235A.
    Section 2005(b) adds ``other eligible land'' to the annual 
rental payment language. Subsection (b) further adds the 
determination for payments to owners or operators of grasslands 
at 75 percent of the grazing value of the land under contract.
    Section 2005(c) amends the payment schedule section to 
eliminate in-kind commodity payments through Commodity Credit 
Corporation stocks.
    Section 2005(d) is a technical conforming amendment in 
response to the elimination of in-kind commodity payments.

Sec. 2006. Contract Requirements

    Section 2006(a) allows for a one-time early termination 
option for an owner or operator if the contract has been in 
effect for five years. The section further specifies what 
environmentally sensitive land is exempted from the early 
termination.
    Section 2006(b) makes adjustments to the transition options 
language regarding the transfer of land from a retired farmer 
or rancher to a beginning farmer or rancher.
    Section 2006(c) allows for an owner or operator to enroll 
into the Conservation Stewardship Program in the last year of 
the owner or operator conservation reserve contract.

Sec. 2007. Conversion of Land Subject to Contract to Other Conserving 
        Uses

    Section 2007 repeals Section 1235A of the Food Security Act 
of 1985, Conservation of Land Subject to Contract to other 
Conserving Uses which is no longer applicable for contracts in 
place prior to November 28, 1990.

              SUBTITLE B--CONSERVATION STEWARDSHIP PROGRAM

Sec. 2101. Conservation Stewardship Program

    Section 2101 revises the Conservation Stewardship Program.
    Definitions: The section includes a definition of 
``agricultural operation'', strikes the definition of 
``conservation measurement tool'' to conform with other 
amendments, redefines ``priority resource concern'', and it 
revises the definition of ``eligible land''.
    Establishment and purposes: The section authorizes the 
program through 2017. It limits the excluded land by allowing 
for CRP land to be enrolled in the final year of the contract. 
The section increases emphasis on new conservation. It also 
eliminates the requirement that not more than 10 percent of the 
acres enrolled be non-industrial private forest land. The 
section allows enrollment of lands that are under agricultural 
land easements option of the ACE Program.
    Stewardship contracting: The section requires participants, 
at the time of the contract offer, to be meeting the 
stewardship threshold of at least two priority resource 
concerns with at least one additional priority resource concern 
by the end of the contract. It establishes a priority 
consideration for land with expiring CRP contracts. The section 
also eliminates the conservation measurement tool. It adds the 
requirement for the producer, in order to renew a contract for 
an additional year, to meet the stewardship threshold of at 
least two additional priority resource concerns or exceed the 
threshold of at least two existing priority resource concerns 
by then end of the contract period. It eliminates the on-farm 
research and demonstration, or pilot testing provisions.
    Duties of the Secretary: The section replaces the 
conservation measurement tool with a science-based stewardship 
threshold. It includes an acreage enrollment limitation of 
9,000,000 acres for each fiscal year and a national average 
rate of $18 per acre, which shall include costs of assistance.

          SUBTITLE C--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

Sec. 2201. Purposes

    Section 2201 adds ``developing and improving wildlife'' to 
the purposes section.

Sec. 2202. Establishment and Administration

    Section 2202 extends EQIP though fiscal year 2017.
    Section 2223 amends the term of an EQIP contract to a 
period not to exceed 10 years, eliminating the minimum 
requirement. The increased payments to certain producers 
section is amended to include veteran farmers or ranchers. The 
section increases the amount allowed for an advanced payment to 
50 percent and includes a new requirement that funds provided 
in advance but not expended during the required 90-day period 
be returned. It maintains the 60 percent allocation for 
livestock production and creates a new 5 percent allocation for 
practices benefiting wildlife habitat. The section adds a new 
subsection in order to include wildlife habitat restoration, 
improvement, and development activities under EQIP.

Sec. 2203. Evaluation of Applications

    Section 2203 amends the evaluation of application process 
section for the purpose of a conforming amendment.

Sec. 2204. Duties of Producers

    Section 2204 is a technical amendment to the duties of 
producers section.

Sec. 2205. Limitation on Payments

    Section 2205 establishes the payment limitation at $450,000 
and eliminates the waiver authority.

Sec. 2206. Conservation Innovation Grants and Payments

    Section 2206 adds a reporting requirement to CIG projects.

         SUBTITLE D--AGRICULTURAL CONSERVATION EASEMENT PROGRAM

Sec. 2301. Agricultural Conservation Easement Program

    Section 2301 establishes a new Agricultural Conservation 
Easement (ACE) Program consolidating the Wetland Reserve 
Program, the Grassland Reserve Program, and the Farmland 
Protection Program. The purposes of the program include 
restoring, protecting, and enhancing wetlands; protecting the 
agricultural use and conservation values on agricultural lands; 
and protecting grazing uses and related conservation values on 
agricultural lands. The program has two distinct branches under 
the umbrella easement program--agricultural land easements and 
wetland easements.
    The program includes definitions for ``agricultural land 
easement'', ``wetland easement'', ``eligible entity'', and 
``eligible land''.
    Under the Agricultural Land Easements, the Secretary 
facilitates and provides funds to eligible entities to purchase 
conservation easements in agricultural land and grasslands. The 
easements shall be permanent easements, or easements for the 
maximum duration allowed under applicable State law. The scope 
of the federal share shall not exceed 50 percent of the fair 
market value of the land using the USPAP, an area-wide market 
analysis survey, or another industry approved method. There is 
an exemption for grasslands of special environmental 
significance, by which the Secretary may provide up to 75 
percent of the fair market value.
    The Agricultural Land Easement Program establishes a 
process under which an eligible entity may be certified by the 
Secretary, though non-certified entities may still participate. 
Agreements between the Secretary and an eligible entity shall 
be at least three, but no more than five years unless the 
eligible entity is certified, in which case the term shall be a 
minimum of five years.
    Under the Wetlands Easements, the Secretary enrolls 
wetlands through the use of 30-year easements; permanent 
easements; easements for the maximum duration allowed under 
State law; or for Indian tribes only, 30-year contracts. The 
Secretary shall not acquire easements on land that has been 
established to trees in CRP, or farmed wetlands or converted 
wetlands where the conversion was not commenced prior to 
December 23, 1985. The program establishes a priority based on 
the value of the wetland easement for protecting and enhancing 
habitat for migratory birds and other wildlife.
    Compensation for permanent easements shall be in an amount 
necessary to encourage enrollment in the program based on the 
lowest of the fair market value, the amount corresponding to a 
geographical cap, or the offer made by the landowner. In the 
case of a 30-year wetland easement, compensation shall be not 
less than 50 percent, but not more than 75 percent, of the 
compensation that would be paid for a permanent wetland 
easement.
    The Wetlands Easement Program further authorizes the 
Secretary to provide financial assistance to owners to carry 
out the establishment of conservation measures and practices to 
protect wetland functions and values including maintenance. In 
the case of restoration on permanent wetland easements, the 
Secretary shall pay at least 70 percent, but not more than 100 
percent, of the costs. In the case of a 30-year wetland 
easement, the Secretary shall pay at least 50 percent, but not 
more than 75 percent of the costs. The entire ACE Program 
includes a priority for certain lands currently enrolled in CRP 
with a contract set to expire within 1 year.
    Of the funds made available under the program, at least 40 
percent are reserved for agricultural land easements for fiscal 
years 2013 through 2016 and at least 50 percent for 
agricultural land easements in fiscal year 2017.

         SUBTITLE E--REGIONAL CONSERVATION PARTNERSHIP PROGRAM

Sec. 2401. Regional Conservation Partnership Program

    Section 2401 establishes a Regional Conservation 
Partnership Program by combining program purposes of the 
Agricultural Water Enhancement Program (AWEP), the Chesapeake 
Bay Watershed Program, the Cooperative Conservation Partnership 
Initiatives Program (CCPI), and the Great Lakes Basin Program. 
The new Regional Program works through the existing programs--
Agricultural Conservation Easement Program (ACEP), 
Environmental Quality Incentives Program (EQIP), and the 
Conservation Stewardship Program (CSP)--in order to further 
conservation, restoration and sustainable use of soil, water, 
air, wildlife and related natural resources on a regional or 
watershed scale while encouraging eligible partners to 
cooperate with producers in meeting or avoiding the need for 
natural resource regulatory requirements related to 
agricultural production and implement projects that will affect 
operations on a local, regional, State, or multi-State basis.
    The program includes definitions for ``covered programs'', 
``eligible activities'', ``eligible land'' and ``eligible 
partner''.
    Under the program, the Secretary may enter into short term 
contracts with eligible partners, who are selected through a 
competitive process. A partnership agreement may not exceed 
five years, but may be extended one time for up to 12 months if 
necessary to meet the objectives of the program. Through the 
contracts, partners will assist producers with installing and 
maintaining conservation activities through existing programs. 
An eligible partner shall provide a significant portion of the 
overall costs of the scope of the project. The program includes 
several priorities for applications, including the ability to 
assist producers in meeting or avoiding regulatory 
requirements.
    The Secretary may also enter into contracts directly with 
producers who are in an established project area. The Secretary 
shall make payments directly to the producer in an amount 
determined by the Secretary to be necessary to achieve the 
purposes of the program. The language includes a waiver from 
the adjusted gross income requirement.
    The program includes a section for critical conservation 
areas under which the Secretary can administer the program as 
well as very limited flood prevention and erosion control 
projects. When implementing projects under the critical 
conservation areas, the Secretary may use additional 
authorities under the Watershed Protection and Flood Prevention 
Act.
    The funding for the program consists of mandatory funds out 
of the Commodity Credit Corporation of $100,000,000 for each 
fiscal year, as well as a 6 percent reservation of funds out of 
the conservation programs mentioned above. Out of all of the 
funds, 25 percent is allocated to the State conservationist, 50 
percent is allocated to the Secretary on a national competitive 
basis, and 25 percent is allocated for the critical 
conservation areas.

                SUBTITLE F--OTHER CONSERVATION PROGRAMS

Sec. 2501. Conservation of Private Grazing Land

    Section 2501 extends Conservation of Private Grazing Land 
through fiscal year 2017.

Sec. 2502. Grassroots Source Water Protection Program

    Section 2502 extends the Grassroots Water Protection 
Program. It further makes available $5,000,000 in mandatory 
money to remain available until expended.

Sec. 2503. Voluntary Public Access and Habitat Incentive Program

    Section 2503 extends the Voluntary Public Access program 
through fiscal year 2017, reduces its mandatory funding level 
to $30,000,000 and requires a report on program effectiveness.

Sec. 2504. Agriculture Conservation Experienced Services Program

    Section 2504 provides funding for ACES through the funds 
made available to carry out each program under the title, 
excluding CRP.

Sec. 2505. Small Watershed Rehabilitation Program

    Section 2505 reauthorizes the appropriations of the Small 
Watershed Rehabilitation Program at current appropriated levels 
through fiscal year 2017 and further authorizes $250,000,000 in 
mandatory money for the Small Watershed Rehabilitation Program 
for fiscal year 2013, to remain available until expended.

Sec. 2506. Agricultural Management Assistance Program

    Section 2506 amends the Agricultural Management Assistance 
Program, within the Federal Crop Insurance Act, by eliminating 
the practice of planting trees for windbreaks or for improving 
water quality and mitigation of risk through resource 
conservation practices as uses for financial assistance under 
the program. The section further eliminates the exception of 
$15,000,000 in mandatory funding through each fiscal year while 
maintaining the base $10,000,000 in funding. The section amends 
the percentages for the distribution of funds decreasing the 
funds through Natural Resources Conservation Services to 30 
percent, maintaining the funds for organic certification cost 
share through Agricultural Marketing Service at 10 percent, and 
increasing the funds through the Risk Management Agency to 60 
percent.

                 SUBTITLE G--FUNDING AND ADMINISTRATION

Sec. 2601. Funding

    Section 2601(a) extends and amends the funding section for 
conservation programs provided by the Commodity Credit 
Corporation funds.
    Funding levels:
    CRP TIP--$25,000,000 set aside in the period of fiscal 
years 2013-2017.
    ACE--
          $450,000,000 in FY13;
          $475,000,000 in FY14;
           $500,000,000 in FY15;
           $525,000,000 in FY16; and
           $266,000,000 in FY17.
    EQIP--$1,750,000,000 in each of fiscal years 2013-2017.
    Section 2601(b) makes the funding covered by this section 
no year funds.

Sec. 2602. Technical Assistance

    Section 2602 amends the funding section of the 1985 Act to 
include an amended technical assistance subsection and also 
requires a report to Congress on technical assistance.

Sec. 2603. Regional Equity

    Section 2603 amends Regional Equity by striking the 
$15,000,000 target for regional equity allocations and replaces 
it with 0.6 percent of the funds made available for 
conservation programs in order to allow allocations to 
synchronize with annual program appropriations.

Sec. 2604. Reservation of Funds to Provide Assistance to Certain 
        Farmers or Ranchers for Conservation Access

    Section 2604 extends the 5 percent reservation of funds for 
both socially disadvantaged and beginning farmers and ranchers 
through fiscal year 2017. The language adds a priority within 
the reservation of funds for producers who are veterans.

Sec. 2605. Annual Report on Program Enrollments and Assistance

    Section 2605 makes technical amendments to the annual 
reporting requirement on program enrollments and assistance.

Sec. 2606. Administrative Requirements Applicable to All Conservation 
        Programs

    Section 2606 adds a new subsection to the administrative 
requirements for conservation programs that requires the 
Secretary, to the maximum extent practicable, to seek to reduce 
administrative burdens and costs by streamlining and taking 
advantage of new technologies to enhance efficiency and 
effectiveness. The section clarifies that any payment received 
under the title is in addition to, and does not affect, the 
total amount of payments an owner or operator is otherwise 
eligible to receive.

Sec. 2607. Standards for State Technical Committees

    Section 2607 makes a technical change to the standards for 
state technical committees.

Sec. 2608. Rulemaking Authority

    Section 2608 requires the Secretary to promulgate 
regulations, gives the Secretary rulemaking authority in 
regards to conservation programs, and provides for the 
operation of the programs under interim rules.

 SUBTITLE H--REPEAL OF SUPERSEDED PROGRAM AUTHORITIES AND TRANSITIONAL 
                               PROVISIONS

Sec. 2701. Comprehensive Conservation Enhancement Program

    Section 2701 repeals the Comprehensive Conservation 
Enhancement Program.

Sec. 2702. Emergency Forestry Conservation Reserve Program

    Section 2702 repeals the Emergency Forestry Conservation 
Reserve Program, but provides for the continuation of existing 
contracts until the contract's expiration.

Sec. 2703. Wetlands Reserve Program

    Section 2703 repeals the Wetlands Reserve Program, but 
provides for the continuation of existing contracts until the 
contract's expiration.

Sec. 2704. Farmland Protection Program and Farm Viability Program

    Section 2704 repeals the Farmland Protection Program, but 
provides for the continuation of existing contracts until the 
contract's expiration.

Sec. 2705. Grasslands Reserve Program

    Section 2705 repeals the Grassland Reserve Program, but 
provides for the continuation of existing contracts until the 
contract's expiration.

Sec. 2706. Agricultural Water Enhancement Program

    Section 2706 repeals t