S 2228
110th CONGRESS
1st Session
S. 2228
To extend and improve agricultural programs, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
October 24, 2007
Mr. LUGAR (for himself, Mr. LAUTENBERG, Mr. MENENDEZ, Mr. CARDIN, Mr.
WHITEHOUSE, Mr. REED, Mr. HATCH, and Ms. COLLINS) introduced the following
bill; which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
A BILL
To extend and improve agricultural programs, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Farm, Ranch, Equity,
Stewardship, and Health Act of 2007'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--RISK MANAGEMENT
Subtitle A--Federal Crop Insurance Program
Sec. 1001. Controlling crop insurance program costs.
Sec. 1002. Supplemental deductible coverage.
Sec. 1003. Revenue-based safety net.
Sec. 1004. Whole farm insurance.
Sec. 1005. Crop insurance education assistance.
Sec. 1006. Agricultural management assistance program.
Subtitle B--Risk Management Accounts
Sec. 1102. Risk management account contracts.
Sec. 1103. Treatment of risk management account accounts on transfer.
Sec. 1104. Administration.
Sec. 1105. Commodity programs.
TITLE II--CONSERVATION
Subtitle A--Conservation Reserve
Sec. 2001. Conservation reserve program.
Subtitle B--Wetlands Reserve Program
Sec. 2101. Wetlands reserve program.
Subtitle C--Conservation Security Program
Sec. 2201. Conservation security program.
Subtitle D--Environmental Quality Incentives Program
Sec. 2301. Environmental quality incentives program.
Subtitle E--Grassland Reserve Program
Sec. 2401. Grassland reserve program.
Subtitle F--Cooperative Conservation Partnership Initiative
Sec. 2501. Cooperative conservation partnership initiative.
Sec. 2502. Minimum base allocation to States in funding of certain
Department of Agriculture conservation programs.
Subtitle G--Other Conservation Programs
Sec. 2601. Pilot program for comprehensive conservation planning.
Sec. 2602. Pilot program for nutrient reduction and sediment control
in the Chesapeake Bay watershed.
Subtitle H--Funding and Administration
Sec. 2701. Funding and administration.
Sec. 2702. Conservation application process.
Sec. 2703. Exclusion of payments under Department of Agriculture conservation
programs from adjusted gross income limitation.
TITLE III--SPECIALTY CROPS
Subtitle A--Marketing
Sec. 3001. Grants to States to enhance competitiveness of specialty
crops.
Sec. 3002. Fruit and vegetable nutrition promotion program.
Sec. 3003. Farmers' market promotion program.
Sec. 3004. National organic certification and transition cost share
program.
Subtitle B--Trade
Sec. 3101. Technical assistance for specialty crops.
Subtitle C--Nutrition
Sec. 3201. Expansion of fresh fruit and vegetable program.
Sec. 3202. Authorization level for farm-to-cafeteria activities.
Sec. 3203. WIC farmers' market nutrition program.
Sec. 3204. Seniors farmers' market nutrition program.
Sec. 3205. Use of `Dietary Guidelines for Americans' in special nutrition
programs and school lunch programs.
Sec. 3206. Food stamp fruit and vegetable electronic benefit transfer
pilot project.
Sec. 3207. Purchases of locally produced foods.
Sec. 3208. Assistance for community food projects.
Sec. 3209. Increased purchases of fruits and vegetables.
Subtitle D--Research
Sec. 3301. National specialty crops development initiative grant program.
Sec. 3302. Organic agriculture research and extension initiative.
Sec. 3303. National Aquaculture Act of 1980.
Sec. 3304. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Subtitle E--Invasive Pest Research and Disease Response
Sec. 3401. Threat identification and mitigation program.
Sec. 3402. Clean plant network.
Sec. 3403. Office of Pest Management Policy.
Sec. 3404. Food safety initiatives.
Subtitle F--Miscellaneous
Sec. 3501. Transportation infrastructure cost reduction grant program.
Sec. 3502. Census of specialty crops.
TITLE IV--TRADE
Sec. 4001. McGovern-Dole International Food for Education and Child
Nutrition Program.
TITLE V--NUTRITION
Subtitle A--Food Stamp Program
Sec. 5001. Exclusion of combat-related military pay from countable
income.
Sec. 5002. Ending benefit erosion.
Sec. 5003. Supporting working families with child care expenses.
Sec. 5004. Retirement and education savings exclusion.
Sec. 5005. Food stamp eligibility for unemployed adults.
Sec. 5006. Availability of commodities for the emergency food assistance
program.
Subtitle B--Food Service Industry Job Training for Low-Income Adults
Sec. 5103. Food employment empowerment and development program.
Sec. 5104. Hunger-free communities.
Subtitle C--Other Programs
Sec. 5201. Summer food service program for children.
Sec. 5202. Joint nutrition monitoring and related research activities.
TITLE VI--RURAL DEVELOPMENT
Sec. 6001. Rural collaborative investment program.
TITLE VII--FORESTRY
Subtitle A--Cooperative Forestry Assistance Act of 1978
Sec. 7001. Community forest land program.
Subtitle B--Healthy Forests Restoration Act of 2003
Sec. 7101. Healthy forests reserve program.
TITLE VIII--ENERGY
Sec. 8001. Federal procurement of biobased products.
Sec. 8002. Biorefinery development grants.
Sec. 8003. Rural energy innovation program.
Sec. 8004. Rural Energy for America Program.
Sec. 8005. Biomass research and development.
TITLE IX--USE OF SAVINGS FOR DEFICIT REDUCTION
Sec. 9001. Sense of Congress regarding use of savings for deficit
reduction.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term `Secretary' means the Secretary of Agriculture.
TITLE I--RISK MANAGEMENT
Subtitle A--Federal Crop Insurance Program
SEC. 1001. CONTROLLING CROP INSURANCE PROGRAM COSTS.
(a) Administrative Fee for Catastrophic Risk Protection- Section 508(b)(5)
of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended by
striking subparagraph (A) and inserting the following:
`(i) IN GENERAL- Except as provided in clause (ii), each producer
shall pay an administrative fee for catastrophic risk protection
in an amount that is, as determined by the Corporation, equal
to 25 percent of the premium amount for catastrophic risk protection
established under subsection (d)(2)(A) per crop per county.
`(ii) MAXIMUM AMOUNT- The total amount of administrative fees
for catastrophic risk protection payable by a producer under clause
(i) shall not exceed $5,000 for all crops in all counties.'.
(b) Share of Risk- Section 508(k)(3) of the Federal Crop Insurance Act
(7 U.S.C. 1508(k)(3)) is amended by striking paragraph (3) and inserting
the following:
`(3) SHARE OF RISK- The reinsurance agreements of the Corporation
with a reinsured company shall require the reinsured company to provide
to the Corporation 30 percent of the cumulative underwriting gain
or loss of the reinsured company.'.
(c) Reimbursement Rate- Section 508(k)(4)(A) of the Federal Crop Insurance
Act (7 U.S.C. 1508(k)(4)(A)) is amended by striking clause (ii) and
inserting the following:
`(ii) for each of the 2008 and subsequent reinsurance years, 15
percent of the premium used to define loss ratio.'.
SEC. 1002. SUPPLEMENTAL DEDUCTIBLE COVERAGE.
(a) In General- Section 508(c)(4) of the Federal Crop Insurance Act
(7 U.S.C. 1508(c)(4) is amended--
(1) by striking `The level of coverage' and inserting the following:
`(A) BASIC COVERAGE- The level of coverage'; and
(2) by adding at the end the following:
`(B) SUPPLEMENTAL COVERAGE-
`(i) IN GENERAL- Notwithstanding paragraph (3) and subparagraph
(A), the Corporation may offer supplemental coverage, based on
an area yield and loss basis, to cover that portion of a crop
loss not covered under the individual yield and loss basis plan
of insurance of a producer, including any revenue plan of insurance
with coverage based in part on individual yield and loss.
`(ii) LIMITATION- The sum of the indemnity paid to the producer
under the individual yield and loss plan of insurance and the
supplemental coverage may not exceed 100 percent of the loss incurred
by the producer for the crop.'
`(iii) ADMINISTRATIVE AND OPERATING EXPENSE REIMBURSEMENT- Notwithstanding
subsection (k)(4), the reimbursement rate for approved insurance
providers for the supplemental coverage shall equal 6 percent
of the premium used to define the loss ratio.
`(iv) DIRECT COVERAGE- If the Corporation determines that it is
in the best interests of producers, the Corporation may offer
supplemental coverage as a Corporation endorsement to existing
plans and policies of crop insurance authorized under this title.
`(v) PAYMENT OF PORTION OF PREMIUM BY CORPORATION- Notwithstanding
subsection (e), the amount of the premium to be paid by the Corporation
for supplemental coverage offered pursuant to this subparagraph
shall be determined by the Corporation, but may not exceed the
sum of--
`(I) 50 percent of the amount of premium established under subsection
(d)(2)(C)(i); and
`(II) the amount determined under subsection (d)(2)(C)(ii) for
the coverage level selected to cover operating and administrative
expenses.'.
(b) Conforming Amendments- Section 508(d)(2) of the Federal Crop Insurance
Act (7 U.S.C. 1508(d)(2)) is amended--
(1) by striking `additional coverage' the first place it appears and
inserting `additional and supplemental coverages'; and
(2) by adding at the end the following:
`(C) SUPPLEMENTAL COVERAGE- In the case of supplemental coverage
offered under subsection (c)(4)(B), the amount of the premium shall--
`(i) be sufficient to cover anticipated losses and a reasonable
reserve; and
`(ii) include an amount for operating and administrative expenses,
as determined by the Corporation on an industry-wide basis as
a percentage of the amount of the premium used to define loss
ratio.'.
SEC. 1003. REVENUE-BASED SAFETY NET.
(a) Establishment- Section 508(c) of the Federal Crop Insurance Act
(7 U.S.C. 1508(c)) is amended by adding at the end the following:
`(11) GROUP RISK INCOME PROTECTION AND GROUP RISK PROTECTION- The
Corporation shall offer, at no cost to a producer, revenue and yield
coverage plans that allow producers in a county to qualify for an
indemnity if the actual revenue or yield per acre in the county in
which the producer is located is below 85 percent of the average revenue
or yield per acre for the county, for--
`(A) a producer with an average adjusted gross income (as defined
in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(a)))
of less than $250,000; and
`(B) each agricultural commodity for which a futures price is available,
to the extent the coverage is actuarially sound.'.
(b) Premiums- 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:
`(H) In the case of a group risk income protection and group risk
protection offered under subsection (c)(11) beginning in fiscal
year 2009, and the whole farm insurance plan offered under subsection
(c)(12) beginning in fiscal year 2010, the entire amount of the
premium for the plan shall be paid by the Corporation.'.
SEC. 1004. WHOLE FARM INSURANCE.
(a) Establishment- Section 508(c) of the Federal Crop Insurance Act
(7 U.S.C. 1508(c)) (as amended by section 1003(a)) is amended by adding
at the end the following:
`(12) WHOLE FARM INSURANCE PLAN- The Corporation shall offer, at no
cost to a producer described in paragraph (11), a whole farm insurance
plan that allows the producer to qualify for an indemnity if actual
gross farm revenue is below 80 percent of the average gross farm revenue
of the producer.'.
(b) Adjusted Gross Revenue Insurance Pilot Program- Section 523(e) of
the Federal Crop Insurance Act (7 U.S.C. 1523(e)) is amended--
(1) in paragraph (1), by striking `2004' and inserting `2014';
(2) in paragraph (2), by striking subparagraph (A) and inserting the
following:
`(A) IN GENERAL- In addition to counties otherwise included in the
pilot program, the Corporation shall include in the pilot program
for each of the 2010 through 2014 reinsurance years all States and
counties that meet the criteria for selection (pending required
rating), as determined by the Corporation.'; and
(3) by adding at the end the following:
`(3) ELIGIBLE PRODUCERS- The Corporation shall permit the producer
of any type of agricultural commodity (including a producer of specialty
crops, floricultural, ornamental nursery, and Christmas tree crops,
turfgrass sod, seed crops, aquacultural products (including ornamental
fish), sea grass and sea oats, and industrial crops) to participate
in a pilot program established under this subsection.'.
(c) Prevention of Duplication- Section 508(c) of the Federal Crop Insurance
Act (7 U.S.C. 1508(c)) (as amended by subsection (a)) is amended by
adding at the end the following:
`(13) PREVENTION OF DUPLICATION- The Administrator of the Risk Management
Agency and Administrator of the Farm Service Agency shall cooperate
to ensure, to the maximum extent practicable, that producers on a
farm are not compensated through the revenue counter-cyclical payment
program and under this title for the same loss, including by reducing
crop insurance indemnity payments by the amount of the revenue counter-cyclical
payments.'.
SEC. 1005. CROP INSURANCE EDUCATION ASSISTANCE.
(a) Partnerships for Risk Management Education- Section 524(a)(3) of
the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)) is amended--
(1) in subparagraph (B), by striking `A grant' and inserting `Subject
to subparagraph (E), a grant'; and
(2) by adding at the end the following:
`(E) ALLOCATION TO STATES- The Secretary shall allocate funds made
available to carry out this subsection for each fiscal year in a
manner that ensures that grants are provided to eligible entities
in States based on the ratio that the value of agricultural production
of each State bears to the total value of agricultural production
in all States, as determined by the Secretary.'.
(b) Funding- Section 524(a)(4) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)(4)) is amended by striking subparagraph (B) and inserting
the following:
`(B) for the partnerships for risk management education program
established under paragraph (3)--
`(i) $20,000,000 for fiscal year 2008, of which not less than
$15,000,000 shall be used to provide educational assistance with
respect to whole farm and adjusted gross revenue insurance plans;
`(ii) $15,000,000 for fiscal year 2009, of which not less than
$10,000,000 shall be used to provide educational assistance described
in clause (i);
`(iii) $10,000,000 for fiscal year 2010, of which not less than
$5,000,000 shall be used to provide educational assistance described
in clause (i); and
`(iv) $5,000,000 for fiscal year 2011 and each fiscal year thereafter.'.
SEC. 1006. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.
Section 524(b)(4)(B)) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B))
is amended--
(1) in clause (ii), by striking `fiscal years 2003 through 2007' and
inserting `fiscal years 2008 through 2014'; and
(A) by striking `fiscal years 2004 through 2007' and inserting `fiscal
years 2008 through 2014';
(B) in subclause (I), by striking `$14,000,000' and inserting `$9,500,000';
and
(C) in subclause (III), by striking `$5,000,000' and inserting `$9,500,000'.
Subtitle B--Risk Management Accounts
SEC. 1101. DEFINITIONS.
(1) ADJUSTED GROSS REVENUE- The term `adjusted gross revenue', with
respect to a farm of an operator or producer, means the adjusted gross
income of the farm, as determined by the Secretary, from the sale
or transfer of eligible commodities of the farm, as calculated--
(A) taking into consideration the gross receipts (including insurance
indemnities) from each sale;
(B) including all farm payments received by the operator or producer
from any Federal, State, or local government agency relating to
the eligible commodities;
(C) by deducting the cost or basis of any eligible livestock or
other item purchased for resale, such as feeder livestock, by the
farm;
(D) excluding any revenue that does not arise from the sale of eligible
commodities of the farm, such as revenue associated with the packaging,
merchandising, marketing, or reprocessing beyond what is typically
carried out by a producer of the eligible commodity, as determined
by the Secretary; and
(E) using such adjustments, additions, and additional documentation
as the Secretary determines to be appropriate, as presented on--
(i) a schedule F form of the Federal income tax returns of the
operator or producer; or
(ii) a comparable tax form relating to the farm, as approved by
the Secretary.
(2) APPLICABLE YEAR- The term `applicable year' means a fiscal year
covered by a risk management account contract.
(3) AVERAGE ADJUSTED GROSS REVENUE- The term `average adjusted gross
revenue' means--
(A) the rolling average of the adjusted gross revenue of an operator
or producer for each of the 5 preceding taxable years; or
(B) in the case of a beginning farmer or rancher, or another agricultural
operation that does not have adjusted gross revenue for each of
the 5 preceding taxable years, the estimated income of the operation
for the applicable year, as determined by the Secretary.
(4) ELIGIBLE COMMODITY- The term `eligible commodity' means any annual
or perennial crop raised or produced by an operator or producer.
(A) IN GENERAL- The term `farm' means any parcel of land used for
the raising or production of an eligible commodity that is considered
to be a separate operation, as determined by the Secretary.
(B) INCLUSIONS- The term `farm' includes--
(i) any parcel of land and related agricultural production facilities
on which an operator or producer has more than de minimis operational
control; and
(ii) any parcel of land subject to more than de minimis common
ownership, as determined by the Secretary, unless the common owners
of the parcel--
(I) except with respect to a conservation condition established
in an applicable rental agreement, do not have operational control
regarding any portion of the parcel; and
(II) do not share in the proceeds of the parcel, other than
cash rent.
(C) EXCLUSION- The term `farm' does not include a parcel that is
not a portion of a farm subject to a risk management account contract.
(D) APPLICABILITY OF CFR- Except as otherwise provided in this subtitle
or by the Secretary, by regulation, part 718 of title 7, Code of
Federal Regulations (or successor regulations), shall apply to the
definition, constitution, and reconstitution of a farm for purposes
of this paragraph.
(6) OPERATOR- The term `operator' means a producer who controls an
agricultural operation on a farm, as determined by the Secretary.
(7) PRODUCER- The term `producer' means a person that, as determined
by the Secretary, for an applicable year--
(A) shares in the risk of producing, or provides a material contribution
in producing, an eligible commodity;
(B) has a substantial beneficial interest in the farm on which the
eligible commodity is produced;
(C)(i) for each of the 5 preceding taxable years, has filed--
(I) a schedule F form of the Federal income tax return relating
to the eligible commodity; or
(II) a comparable tax form related to the eligible commodity,
as approved by the Secretary; or
(ii) is a beginning farmer or rancher, or another producer that
does not have adjusted gross revenue for each of the 5 preceding
taxable years, as determined by the Secretary; and
(D)(i) during the 5 preceding taxable years, has earned at least
$10,000 in average adjusted gross revenue;
(ii) is a limited resource farmer or rancher, as determined by the
Secretary; or
(iii) in the case of a beginning farmer or rancher, or another producer
that does not have adjusted gross revenue for each of the 5 preceding
taxable years, has at least $10,000 in estimated income from all
farms for the applicable year, as determined by the Secretary.
(8) RISK MANAGEMENT ACCOUNT- The term `risk management account' means
a farm income stabilization assistance account maintained at a qualified
financial institution in accordance with such terms as the Secretary
may establish.
SEC. 1102. RISK MANAGEMENT ACCOUNT CONTRACTS.
(a) Establishment of Program- The Secretary shall establish and carry
out a program under which the Secretary shall offer to enter into contracts
with eligible operators and producers in accordance with this section--
(1) to provide to the operators and producers a reserve to assist
in the stabilization of farm income during low-revenue years;
(2) to assist operators and producers to invest in value-added farms;
and
(3) to recognize high levels of environmental stewardship.
(1) IN GENERAL- Any operator that has participated in a commodity
program under title I of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7901 et seq.), and that otherwise meets each eligibility
requirement under this subtitle, shall be eligible to enter into a
risk management account contract for agricultural production during
each of fiscal years 2008 through 2014.
(2) OTHER PRODUCERS- A producer that is not an operator described
in paragraph (1) shall be eligible to enter into a risk management
account contract for agricultural production during each of fiscal
years 2008 through 2014.
(A) IN GENERAL- No farm or portion of a farm shall be subject to
more than 1 risk management account contract during any fiscal year.
(B) MULTIPLE RISK MANAGEMENT ACCOUNT CONTRACTS-
(i) IN GENERAL- Except as provided in clause (ii), no operator
or producer shall participate or have a beneficial interest in
more than 1 risk management account contract during any fiscal
year.
(ii) EXCEPTION- Notwithstanding clause (i), an operator that is
eligible to receive a transition payment during a fiscal year,
and that participates or has a beneficial interest in a risk management
account contract during that fiscal year, may enter into an additional
risk management account contract during the fiscal year if--
(I) the additional risk management account contract is entered
into solely for the purpose of receiving the transition payment;
and
(II) the operator is not otherwise eligible to participate or
have a beneficial interest in the additional risk management
account contract.
(c) Risk Management Accounts-
(1) IN GENERAL- Each risk management account contract entered into
under this section shall establish, in the name of the farm of the
operator or producer, as applicable, in an appropriate financial institution
and subject to such investment rules and other procedures as the Secretary,
on approval of the Secretary of the Treasury, determines to be necessary
to provide reasonable assurance of the viability and stability of
the account, a risk management account, to consist of--
(A) such amounts as are transferred to the risk management account
by the Secretary during an applicable year in accordance with paragraph
(2) (including the amendments made by that paragraph); and
(B) such amounts as are voluntarily contributed by the operator
or producer during the applicable year in accordance with paragraph
(6).
(2) TRANSFERS- Section 1103 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7913) is amended by adding at the end the following:
`(e) Risk Management Accounts- Of the total amount of direct payments
made to producers, payments in excess of $10,000 for a crop year shall
be deposited into risk management accounts established under section
1102 of the Farm, Ranch, Equity, Stewardship, and Health Act of 2007.'.
(3) OPERATOR AND PRODUCER CONTRIBUTIONS- During any applicable year,
an operator or producer may voluntarily contribute to the risk management
account of the operator or producer.
(A) IN GENERAL- An operator or producer may withdraw amounts in
the risk management account of the operator or producer only--
(i) for an applicable year during which the adjusted gross revenue
of the operator or producer is equal to less than 95 percent of
the average adjusted gross revenue of the operator or producer,
in an amount that is equal to the lesser of--
(I) the difference between--
(aa) the average adjusted gross revenue of the operator or
producer; and
(bb) the adjusted gross revenue of the operator or producer;
and
(II) the amount of coverage that could be purchased under an
adjusted gross revenue product available to the operator or
producer through the Federal crop insurance program;
(ii) for investment in a value-added agricultural operation that
contributes to the agricultural economy, as determined by the
Secretary, and is not farmland or equipment used to produce raw
agricultural products, an amount equal to the product obtained
by multiplying--
(I) the total amount in the risk management account of the operator
or producer on September 30 of the preceding applicable year;
and
(iii) as the Secretary determines to be necessary to protect the
solvency of a farm of the operator or producer; or
(iv) to purchase revenue insurance or crop insurance.
(B) TRANSFER TO IRA ACCOUNT- In any calendar year, an individual
operator or producer aged 65 years or older who is the holder of
a risk management account in existence for at least 5 years may
elect to rollover not more than 15 percent of the balance of the
risk management account into an individual retirement account pursuant
to section 408 of the Internal Revenue Code of 1986.
(A) ATTRIBUTION REQUIREMENT- The Secretary shall ensure that each
payment transferred to a risk management account under this subsection
is attributed to an individual operator or producer that is a party
to the applicable risk management account contract.
(B) NO INDIVIDUAL BENEFIT-
(i) IN GENERAL- The Secretary shall ensure that no individual
operator or producer receives a direct benefit from more than
1 risk management account.
(ii) PROPORTIONAL REDUCTION- The Secretary shall reduce the amount
of a standard payment under this subsection in an amount equal
to the proportion that--
(I) the amount of each direct or indirect benefit received by
the applicable individual operator or producer under the applicable
risk management account contract; bears to
(II) the amount of any direct or indirect benefit received by
the individual operator or producer under any other risk management
account contract under which a standard payment is transferred
to a risk management account.
(6) CONSERVATION COMPLIANCE- Each operator, and each holder of a beneficial
interest in a farm subject to a risk management account contract,
shall comply with--
(A) applicable highly erodible land conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C.
3811 et seq.); and
(B) applicable wetland conservation requirements under subtitle
C of title XII of that Act (16 U.S.C. 3821 et seq.).
(7) REGULATIONS- The Secretary shall promulgate such regulations as
the Secretary determines to be necessary to carry out this subsection.
SEC. 1103. TREATMENT OF RISK MANAGEMENT ACCOUNT ACCOUNTS ON TRANSFER.
(a) In General- In transferring, by sale or other means, any interest
in a farm subject to a risk management account, an operator or producer
may elect--
(1) to transfer the risk management account to another farm in which
the operator or producer--
(A) has a controlling ownership interest; or
(B) not later than 2 years after the date of the transfer, will
acquire a controlling ownership interest;
(2) to transfer the risk management account to the purchaser of the
interest in the farm, if the purchaser is not already a holder of
a risk management account; or
(3)(A) if the operator or producer is an individual, to rollover amounts
in the risk management account into an individual retirement account
of the operator or producer pursuant to section 408 of the Internal
Revenue Code of 1986; or
(B) if the operator or producer is not an individual, to transfer
amounts in the risk management account into an account of any individual
who has a substantial beneficial interest in the farm (including a
substantial beneficiary of a trust that holds at least a 50 percent
ownership interest in the farm).
(b) Transfer or Acquisition of Land or Portion of Operation- The Secretary
shall promulgate such regulations as the Secretary determines to be
appropriate to require reformulation, reaffirmation, or abandonment
of a risk management account contract--
(1) on transfer of all or part of a farm under this section; or
(2) on any other major change to the farm, as determined by the Secretary.
SEC. 1104. ADMINISTRATION.
(a) Implementation- The Secretary shall carry out this subtitle through
the Farm Service Agency.
(b) Compliance- The Secretary shall conduct random audits of operators
and producers subject to risk management account contracts under this
subtitle as the Secretary determines to be necessary to ensure compliance
with the risk management account contracts.
(c) Violations- If the Secretary determines that an operator or producer
is in violation of the terms of an applicable risk management account
contract--
(1) the operator or producer shall refund to the Secretary an amount
equal to the amount transferred by the Secretary under section 1103(e)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7913(e))
to the affected risk management account during the applicable year
in which the violation occurred; and
(2) for a serious or deliberate violation, as determined by the Secretary--
(A) the risk management account contract shall be terminated; and
(B) amounts remaining in each applicable risk management account
as the result of a transfer by the Secretary under section 1103(e)
of that Act shall be refunded to the Secretary.
(d) Regulations- The Secretary shall promulgate such regulations as
the Secretary determines to be necessary to carry out this subtitle.
(e) Adjusted Gross Income Limitation- The adjusted gross income limitation
under section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a)
shall apply to participation in the farm income stabilization assistance
program under this subtitle.
(f) Commodity Credit Corporation- The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit Corporation to carry
out this subtitle.
SEC. 1105. COMMODITY PROGRAMS.
(a) Repeals- Subtitles A through C of title I of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.) (other than sections
1001, 1101, 1102, 1103, 1104, and 1106) are repealed.
(b) Base Acres and Payment Acres- Section 1101 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911) is amended--
(1) in subsections (a)(1) and (e)(2), by striking `and counter-cyclical
payments' each place it appears; and
(2) by adding at the end the following:
`(i) Production of Fruits or Vegetables for Processing-
`(1) IN GENERAL- Subject to paragraphs (2) and (3), the producers
on a farm, with the consent of the owner of and any other producers
on the farm, may reduce the base acres for a covered commodity for
the farm if the reduced acres are used for the planting and production
of fruits or vegetables for processing.
`(2) REVERSION TO BASE ACRES FOR COVERED COMMODITY- Any reduced acres
on a farm devoted to the planting and production of fruits or vegetables
during a crop year under paragraph (1) shall be included in base acres
for the covered commodity for the subsequent crop year, unless the
producers on the farm make the election described in paragraph (1)
for the subsequent crop year.
`(3) RECALCULATION OF BASE ACRES-
`(A) IN GENERAL- Subject to subparagraph (B), if the Secretary recalculates
base acres for a farm, the planting and production of fruits or
vegetables for processing under paragraph (1) shall be considered
to be the same as the planting, prevented planting, or production
of the covered commodity.
`(B) AUTHORITY- Nothing in this subsection provides authority for
the Secretary to recalculate base acres for a farm.'.
(c) Payment Yields- Section 1102 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7912) is amended--
(1) in subsection (a), by striking `and counter-cyclical payments';
(2) in subsection (b), by striking `2007' and inserting `2014';
(3) in subsection (c), by striking `, but before' and all that follows
through `subsection (e)'; and
(4) by striking subsection (e).
(d) Sugar- Section 156(j) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272(j)) is amended by striking `2007'
and inserting `2014'.
(e) Recourse Loan Program- Subtitle F of title I of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7991 et seq.) is amended
by adding at the end the following:
`SEC. 1619. RECOURSE LOAN PROGRAM.
`For each of the 2008 through 2014 crop years, the Secretary shall establish
a recourse loan program for each loan commodity at a rate of interest
to be determined by the Secretary.'.
(1) SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY- Section 1602
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7992)
is amended by striking `2007' each place it appears and inserting
`2014'.
(2) ADJUSTED GROSS INCOME LIMITATION- Section 1001D(e) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(e)) is amended by striking
`2007' and inserting `2014'.
(g) Availability of Counter-Cyclical Payments- Section 1104 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7914) is amended--
(1) by striking `2007' each place it appears (other than paragraphs
(3)(B) and (4)(B) of subsection (f)) and inserting `2008'; and
(A) in paragraph (3)(B)--
(i) in the subparagraph heading, by striking `2007 CROP YEAR'
and inserting `2007 AND 2008 CROP YEARS'; and
(ii) by striking `the 2007 crop year' and inserting `each of the
2007 and 2008 crop years'; and
(B) in paragraph (4)(B)--
(i) in the subparagraph heading, by striking `2007 CROP YEAR'
and inserting `2007 AND 2008 CROP YEARS'; and
(ii) by striking `the 2007 crop year' each place it appears and
inserting `each of the 2007 and 2008 crop years'.
(h) Availability of Direct Payments- Section 1103 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7913) is amended--
(1) in subsection (a), by striking `For each of the 2002 through 2007'
and inserting `For each of the 2008 through 2014'; and
(2) in subsection (c), by adding at the end the following:
`(4)(A) In each of crop years 2008 through 2011, 25 percent.
`(B) In each of crop years 2012 and 2013, 20 percent.
`(C) In crop year 2014, 0 percent.'.
TITLE II--CONSERVATION
Subtitle A--Conservation Reserve
SEC. 2001. CONSERVATION RESERVE PROGRAM.
(a) In General- Section 1231(a) of the Food Security Act of 1985 (16
U.S.C. 3831(a)) is amended by striking `2007' and inserting `2014'.
(b) Maximum Enrollment- Section 1231(d) of the Food Security Act of
1985 (16 U.S.C. 3831(d)) is amended--
(1) by striking `The Secretary' and inserting the following:
`(1) IN GENERAL- The Secretary';
(2) in paragraph (1) (as designated by paragraph (1)), by striking
`2007' and inserting `2014'; and
(3) by adding at the end the following:
`(2) ENROLLMENT GOALS- For the period beginning on the date of enactment
of this paragraph and ending on December 31, 2014, the Secretary shall
establish a goal to enroll not less than 7,000,000 acres of eligible
land through the continuous enrollment program and the conservation
reserve enhancement program.'.
(c) Pilot Program for Enrollment of Wetland and Buffer Acreage in Conservation
Reserve- Section 1231(h)(1)(A) of the Food Security Act of 1985 (16
U.S.C. 3831(h)(1)(A)) is amended by striking `2007' and inserting `2014'.
Subtitle B--Wetlands Reserve Program
SEC. 2101. WETLANDS RESERVE PROGRAM.
(a) In General- Section 1237(c) of the Food Security Act of 1985 (16
U.S.C. 3837(c)) is amended by striking `2007' and inserting `2014'.
(b) Maximum Enrollment- Section 1237(b)(1) of the Food Security Act
of 1985 (16 U.S.C. 3837(b)(1)) is amended by striking `2,275,000 acres'
and inserting `3,605,000 acres'.
(c) Wetland Easement Conservation Plan- Section 1237A(b)(3) of the Food
Security Act of 1985(16 U.S.C. 3837a(b)(3)) is amended by inserting
before the semicolon at the end the following: `and activities necessary
to maintain hydrologic, habitat, and other functional values of the
wetlands'.
(d) Cost-Share and Management Assistance- Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended--
(1) in subsection (a)(1), by inserting `including necessary hydrologic
and habitat maintenance activities,' after `values,'; and
(2) in subsection (b), by adding at the end the following:
`(4) MANAGEMENT COSTS- The Secretary may make payments to owners in
an amount of up to the full actual cost of undertaking any ongoing
or periodic management activities necessary to maintain the functional
values of wetland enrolled in the wetlands reserve program.'.
Subtitle C--Conservation Security Program
SEC. 2201. CONSERVATION SECURITY PROGRAM.
(a) In General- Section 1238A(a) of the Food Security Act of 1985 (16
U.S.C. 3838a(a)) is amended by striking `2011' and inserting `2012'.
(b) Technical Assistance- Section 1238C(g) of the Food Security Act
of 1985 (16 U.S.C. 3838c(g)) is amended by striking `2007' and inserting
`2012'.
Subtitle D--Environmental Quality Incentives Program
SEC. 2301. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
(a) Purposes- Section 1240 of the Food Security Act of 1985 (16 U.S.C.
3839aa) is amended--
(1) in paragraph (2), by inserting `, conserving energy,' after `resources';
and
(2) in paragraph (3), by inserting `and conserve energy,' after `wildlife'.
(b) Extension- Section 1240B(a)(1) of the Food Security Act of 1985
(16 U.S.C. 3839aa-2(a)(1)) is amended by striking `2010' and inserting
`2014'.
(c) Bidding Down- Section 1240B of the Food Security Act of 1985 (16
U.S.C. 3839aa-2) is amended by striking subsection (c) and inserting
the following:
`(1) IN GENERAL- The Secretary shall not assign a higher priority
to any application because the applicant is willing to accept a lower
cost-share or incentive payment than the applicant would otherwise
be entitled to receive.
`(2) COST-EFFECTIVENESS- Nothing in this subsection relieves the Secretary
of the obligation, when evaluating applications for cost-share payments
and incentive payments--
`(A) to evaluate the cost-effectiveness of the proposed conservation
practices, systems, and approaches described in the applications;
and
`(B) to prioritize the most cost-effective applications in accordance
with section 1240C(1).'.
(d) Cost-Share Payment Exception- Section 1240B(d)(2) of the Food Security
Act of 1985 (16 U.S.C. 3839aa-2(d)(2)) is amended by striking subparagraph
(A) and inserting the following:
`(A) LIMITED RESOURCE AND BEGINNING FARMERS-
`(i) IN GENERAL- Subject to clause (ii), the Secretary may increase
the amount provided to a producer under paragraph (1) to not more
than 90 percent if the producer is a limited resource or beginning
farmer or rancher, as determined by the Secretary.
`(ii) LIMITATION- A cost-share payment under this paragraph shall
not be less than 115 percent of the amount of the payment that
the Secretary may determine under paragraph (1).'.
(e) Allocation of Funding- Section 1240B(g) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-2(g)) is amended by striking `2007' and inserting
`2014'.
(f) Evaluation of Applications for Cost-Share Payments and Incentive
Payments- Section 1240C of the Food Security Act of 1985 (16 U.S.C.
3839aa-3) is amended to read as follows:
`SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST-SHARE PAYMENTS AND
INCENTIVE PAYMENTS.
`In evaluating applications for cost-share payments and incentive payments,
the Secretary shall--
`(1) prioritize applications based on the overall level of cost-effectiveness
of the applications to ensure, to the maximum extent practicable,
that the proposed conservation practices, systems, and approaches
are the most efficient means of achieving the anticipated environmental
benefits of the project;
`(2) prioritize applications based on how effectively and comprehensively
the projects address the 1 or more designated resource concerns;
`(3) reward higher levels of environmental performance, such as advanced
levels of management within land management practices;
`(4) develop criteria for evaluating applications that will ensure
that national, State, and local conservation priorities are effectively
addressed; and
`(5) prioritize applications that will improve environmental performance
on existing operations.'.
(g) Conservation Innovation Grants-
(1) IN GENERAL- Section 1240H of the Food Security Act of 1985 (16
U.S.C. 3839aa-8) is amended by striking subsection (a) and inserting
the following:
`(a) In General- The Secretary may pay the cost of competitive grants
that leverage Federal investment in environmental enhancement and protection
through the program by stimulating the development of innovative technologies
and transferring those technologies to agricultural and nonindustrial
private forest land in production.'.
(2) USE- Section 1240H(b) of the Food Security Act of 1985 (16 U.S.C.
3839aa-8(b)) is amended by striking paragraph (2) and inserting the
following:
`(2)(A) implement innovative conservation technologies, such as market
systems for pollution reduction and practices for the storing of carbon
in the soil; and
`(B) provide a mechanism for transferring those technologies to agricultural
and nonindustrial private forest land in production; and'.
(h) Ground and Surface Water Conservation- Section 1240I(c)(1)(C) of
the Food Security Act of 1985 (16 U.S.C. 3839aa-9(c)(1)(C)) is amended
by striking `2007' and inserting `2014'.
(i) Performance Incentives for States- Chapter 4 of subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) is amended
by adding at the end the following:
`SEC. 1240J. PERFORMANCE INCENTIVES FOR STATES.
`(a) High Level of Performance Bonus- For each of fiscal years 2008
through 2014, 10 percent of the funds made available to carry out this
chapter shall be reserved by the Secretary for bonus allocations to
States that demonstrate a high level of performance in implementing
the environmental quality incentives program, as determined by the Secretary
in accordance with subsection (b).
`(b) Special Considerations- In evaluating State performance under subsection
(a), the Secretary shall reward States that--
`(1) consistently meet the requirements of section 1240C in evaluating
offers and payments;
`(2) dedicate a portion of the annual environmental quality incentives
program allocation of the States to multiproducer cooperative efforts
to address specific resource concerns;
`(3) collaborate with other Federal and State agencies, local governments,
educational institutions, and for-profit and nonprofit organizations
to monitor and evaluate the environmental outcomes associated with
implementation of the environmental quality incentives program;
`(4) demonstrate effective and efficient program delivery, including
the provision of adequate technical assistance to all program participants
through--
`(A) appropriate staffing; and
`(B) cooperation with other Federal, State, tribal, and local agencies,
for-profit and nonprofit organizations, and individuals with demonstrated
expertise in the planning and implementation of conservation practices,
systems, and approaches;
`(5) support and encourage innovative approaches to addressing resource
concerns;
`(6) effectively leverage Federal funding with local and State matching
funds; and
`(7) demonstrate effective outreach and innovative approaches to reaching
and serving beginning farmers and ranchers, limited-resource producers,
and operators with lower rates of historical participation in Federal
farm and conservation programs.'.
Subtitle E--Grassland Reserve Program
SEC. 2401. GRASSLAND RESERVE PROGRAM.
Section 1238N(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3838N(b)(1))
is amended by striking `2,000,000 acres' and inserting `3,340,000 acres'.
Subtitle F--Cooperative Conservation Partnership Initiative
SEC. 2501. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) In General- Subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following:
`CHAPTER 6--COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE
`SEC. 1240S. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
`(a) Definitions- In this section:
`(1) ELIGIBLE CONSERVATION PROGRAM- The term `eligible conservation
program' means--
`(A) the continuous signup portion of the conservation reserve program
established under subchapter B of chapter 1;
`(B) a special conservation reserve enhancement program described
in section 1234(f)(4);
`(C) the environmental quality incentives program established under
chapter 4, including the ground and surface water conservation program
under section 1240I;
`(D) the farmland protection program established under subchapter
B of chapter 2;
`(E) the grassland reserve program established under subchapter
C of chapter 2;
`(F) the wetlands reserve program established under subchapter C
of chapter 1; and
`(G) the wildlife habitat incentive program established under section
1240N.
`(2) ELIGIBLE ENTITY- The term `eligible entity' means--
`(A) a State, including an agency of a State;
`(B) a political subdivision of a State, including a State-sponsored
conservation district;
`(C) an Indian tribe; and
`(D) a nongovernmental organization or association, including--
`(i) a producer association;
`(ii) a farmer cooperative;
`(iii) an extension association; and
`(iv) a conservation organization with a history of working cooperatively
with producers to effectively address resource concerns related
to agricultural production, as determined by the Secretary.
`(b) Grants and Agreements-
`(1) IN GENERAL- The Secretary shall make grants and enter into agreements
with eligible entities to preferentially enroll producers in 1 or
more of eligible conservation programs to carry out special projects
and initiatives through which multiple producers and other interested
persons cooperate to address specific resources of concern relating
to agricultural production on a local, State, or regional scale.
`(2) TERM- Grants and agreements described in paragraph (1) shall
have a term of--
`(A) not less than 2 years; and
`(B) not more than 5 years.
`(1) COMPETITIVE PROCESS- The Secretary shall establish a competitive
process for considering applications for grants or agreements under
this section consistent with the evaluation criteria described in
subsection (d).
`(2) PROGRAM ALLOCATION- An application for a grant or agreement under
this section shall include--
`(A) specification of the amount of funding or quantity of acres,
or both, of 1 or more eligible conservation programs proposed to
be allocated to carry out the special project or initiative; and
`(B) a schedule for use of funding or acres over the life of the
proposed project or initiative.
`(d) Evaluation Criteria- In evaluating applications for grants or agreements
under this section, the Secretary shall consider the extent to which--
`(1) preferential enrollment in the eligible conservation program
specified in the application will effectively address the environmental
objectives established for the special project or initiative; and
`(2) the special project or initiative covered by the application--
`(A) enjoys broad local and regional support from producers and
other interested persons, including governmental and nongovernmental
organizations with appropriate expertise on the issues the project
or initiative seeks to address;
`(B) includes clear environmental objectives and a high likelihood
of success;
`(C) includes a well-defined project or initiative plan that identifies
sensitive areas requiring treatment and prioritizes conservation
systems, practices, and activities needed to achieve environmental
objectives;
`(D) promises adequate and coordinated participation to achieve
the objectives of the project or initiative;
`(E) coordinates integration of Federal, State, and local efforts
to make the best use of available resources and maximize cost-effective
investments;
`(F) leverages financial and technical resources from sources other
than the conservation programs authorized by this subtitle, including
financial and technical resources provided by Federal and State
agencies, local governments, nongovernmental organizations and associations,
and other private sector entities;
`(G) describes how all necessary technical assistance will be provided
to each producer participating in the project or initiative, including
cost estimates for technical assistance and whether such assistance
will be provided by technical service providers;
`(H) describes how the administrative costs of the project or initiative
will be minimized;
`(I) addresses 1 or more local, State, regional, or national environmental
priorities, with particular emphasis on any priority for which there
is an existing State or federally-approved plan in place for addressing
that priority;
`(J) includes a plan to evaluate progress and measure results; and
`(K) clearly demonstrates that enrollment of producers in eligible
conservation programs will be consistent with the purposes and policies
of each eligible conservation program, as established in law (including
rules, regulations, and program guidance promulgated by implementing
agencies).
`(e) Priorities- To the maximum extent practicable, consistent with
subsections (c) and (d), the Secretary shall ensure that, for each fiscal
year, grants are awarded and agreements are entered into under this
section to support projects and initiatives that collectively address
the resource concerns facing producers, ranchers, and small private
forest landowners, specifically including projects and initiatives that
are designed--
`(1) to achieve improvements in water quality in watersheds impacted
by agriculture, particularly by increasing the participation of producers
in implementing best management practices in a watershed or developing
environmentally and economically viable alternative uses for manure
and litter;
`(2) to achieve improvements in air quality in a geographical area
in which agricultural operations impact air quality, especially an
area that, as determined by the Administrator of the Environmental
Protection Agency, is a nonattainment area with respect to any of
the national primary and secondary ambient air quality standards promulgated
by the Administrator under section 109 of the Clean Air Act (42 U.S.C.
7409);
`(3) to conserve water for environmental purposes, such as enhanced
stream flows or aquifer recharge in regions, States, or local areas
in which water quantity is a concern;
`(4) to assist in the recovery of Federal or State-listed endangered
species or species of special concern or to further the goals and
objectives of the comprehensive wildlife conservation plan of a State
through the cooperative efforts of multiple producers;
`(5) to control invasive species on rangeland or other agricultural
land through the cooperative efforts of multiple producers in a geographical
area;
`(6) to address 1 or more specific resources of concern on private,
non-industrial forest land;
`(7) to reduce losses of pesticides to the environment by engaging
multiple producers in a geographic area in adoption of integrated
pest management practices and approaches; and
`(8) to keep in production farms and ranches facing development pressures
in agricultural use.
`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary
shall not require more than 25 percent of the cost of a project or
initiative supported under a grant or agreement entered into under
this section to be derived from non-Federal sources.
`(2) EXCEPTION- The Secretary may give greater priority to projects
or initiatives that offer to provide a higher percentage of the cost
of the project or initiative from non-Federal sources.
`(3) IN-KIND CONTRIBUTIONS- If the Secretary establishes a cost-share
requirement for a project or initiative, the Secretary shall allow
the use of in-kind contributions to fulfill that requirement.
`(1) IN GENERAL- Of the funds made available for each fiscal year
to carry out the eligible conservation programs, to provide funding
for grants and agreements entered into under this section, the Secretary
shall reserve--
`(A) 5 percent for fiscal year 2008;
`(B) 10 percent for fiscal year 2009;
`(C) 15 percent for fiscal year 2010; and
`(D) 20 percent for each of fiscal years 2011 through 2014.
`(2) ALLOCATION TO STATES- Using the method of allocation for States
under each eligible conservation program, the Secretary shall allocate
to States 75 percent of the funds reserved under paragraph (1) for
each fiscal year to allow State Conservationists of the Natural Resources
Conservation Service, with the advice of State technical committees,
to select projects and initiatives for funding under this section
at the State level.'.
(b) Conforming Amendment- Section 1243 of the Food Security Act of 1985
(16 U.S.C. 3843) is amended by striking subsection (f).
SEC. 2502. MINIMUM BASE ALLOCATION TO STATES IN FUNDING OF CERTAIN
DEPARTMENT OF AGRICULTURE CONSERVATION PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended
by striking subsection (d) and inserting the following:
`(d) Minimum Base Allocation to States for Certain Conservation Programs-
`(1) IN GENERAL- In allocating funds to States to implement the conservation
programs under subtitle D (excluding the conservation reserve program
under subchapter B of chapter 1, the wetlands reserve program under
subchapter C of chapter 1, the conservation security program under
subchapter A of chapter 2, and the grassland reserve program under
subchapter C of chapter 2), the Secretary shall ensure that each State
receives, at a minimum, $18,000,000 for each of fiscal years 2007
through 2014.
`(2) EXCEPTION- The Secretary shall ensure that any funds made available
under chapter 6 of subtitle D to carry out a project in or adjacent
to a State are over and above the minimum base allocation in paragraph
(1).'.
Subtitle G--Other Conservation Programs
SEC. 2601. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.
Chapter 5 of subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3839bb et seq.) is amended by adding at the end the following:
`SEC. 1240Q. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.
`(a) Pilot Program Required- The Secretary shall establish a pilot program
to evaluate the feasibility of assisting producers, before a producer
applies for assistance under any conservation program under this subtitle
D, by making a comprehensive assessment of the resource concerns, needs,
and alternative solutions for the entire operation of the producer,
as determined by the Secretary, following the procedures in the conservation
planning manual of the Natural Resources Conservation Service.
`(b) Locations- The pilot program shall be undertaken in the following
locations:
`(1) The Chesapeake Bay watershed.
`(2) The Great Lakes Basin.
`(3) The Connecticut River watershed.
`(4) The Highlands Region, as defined in section 3 of the Highlands
Conservation Act (Public Law 108-421; 118 Stat. 2375).
`(5) The Upper Mississippi River Basin.
`(c) Provision of Assistance-
`(1) IN GENERAL- The assistance to producers shall be provided--
`(A) by the Secretary directly or through third-party providers
certified by the Secretary; and
`(B) without charge to the producer.
`(2) RESULTS- The results of the comprehensive conservation planning
shall be provided to the producer to enable informed choices on the
type of financial assistance available through conservation programs
administered by the Secretary that would most effectively address
the resource needs of the operation of the producer consistent with
the environmental goals for the area in which the operation is located.
`(d) Assessment and Report- During the second and fifth years of the
pilot program, the Secretary shall--
`(1) conduct an assessment of the effectiveness of the pilot program
established under this section; and
`(2) publish a report, to be available to the public, of the results
of the assessment.
`(1) IN GENERAL- There is authorized to be appropriated to carry out
this section $40,000,000 for each of fiscal years 2008 through 2014.
`(2) ALLOCATION- The Secretary shall, to the maximum extent practicable,
equally allocate the amount of funds made available under paragraph
(1) for each fiscal year between each of the 5 pilot program locations
established under subsection (b).'.
SEC. 2602. PILOT PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT CONTROL
IN THE CHESAPEAKE BAY WATERSHED.
Chapter 5 of subtitle D of title XII of the Food Security Act of 1985
(as amended by section 2601) is amended by inserting after section 1240Q
the following:
`SEC. 1240R. PILOT PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT CONTROL
IN THE CHESAPEAKE BAY WATERSHED.
`(a) Definitions- In this section:
`(1) CHESAPEAKE BAY WATERSHED- The term `Chesapeake Bay watershed'
means the tributaries, backwaters, and side channels that drain into
the Chesapeake Bay, including associated watersheds.
`(2) CHESAPEAKE 2000 AGREEMENT- The term `Chesapeake 2000 agreement'
means the voluntary comprehensive restoration agreement signed in
June 2000 by the members of the Chesapeake Executive Council.
`(b) Restoration Enhancement and Preservation Projects-
`(1) IN GENERAL- The Secretary shall use funds made available under
this section to pay the Federal share of carrying out agricultural
restoration enhancement and preservation projects for the Chesapeake
Bay watershed.
`(2) ADMINISTRATION- The Secretary shall carry out the projects--
`(A) in cooperation with appropriate Federal and State agencies;
and
`(B) in a manner consistent with the tributary strategies developed
pursuant to the Chesapeake 2000 agreement.
`(c) Water Quality- In carrying out projects and activities under this
section, the Secretary shall take into account the protection of water
quality by considering applicable State water quality standards.
`(d) Coordination- The Secretary shall integrate and coordinate projects
and activities carried out under this section with other Federal and
State programs, projects, and activities.
`(1) FEDERAL SHARE- The Federal share of the cost of carrying out
any individual project under this section shall not exceed $5,000,000.
`(2) NON-FEDERAL SHARE- Subject to paragraph (1), the non-Federal
share of the cost of projects and activities carried out under this
section shall be not less than 25 percent.
`(3) NON-FEDERAL RESPONSIBILITIES- The operation, maintenance, rehabilitation,
and replacement of projects carried out under this section shall be
a non-Federal responsibility.
`(1) IN GENERAL- Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out projects under this section $50,000,000
for each of fiscal years 2008 through 2012.
`(2) ADDITIONAL FUNDING- Funds made available under this section shall
be in addition to any other funds that are provided under this title.'.
Subtitle H--Funding and Administration
SEC. 2701. FUNDING AND ADMINISTRATION.
(a) In General- Section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended in the matter preceding paragraph (1) by
striking `2007' and inserting `2014'.
(b) Conservation Security Program- Section 1241(a)(3) of the Food Security
Act of 1985 (16 U.S.C. 3841(a)(3)) is amended--
(1) in subparagraph (A), by striking `$1,954,000,000' and inserting
`$2,194,000,000'; and
(2) in subparagraph (B) by striking `$5,650,000,000' and inserting
`$6,050,000,000'.
(c) Farm and Ranchland Protection Program- Section 1241(a) of the Food
Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph
(4) and inserting the following:
`(4) The farm and ranchland protection program under subchapter B
of chapter 2, using, to the maximum extent practicable--
`(A) $125,000,000 in fiscal year 2008;
`(B) $150,000,000 in fiscal year 2009;
`(C) $200,000,000 in fiscal year 2010;
`(D) $240,000,000 in fiscal year 2011; and
`(E) $280,000,000 in each of fiscal years 2012 through 2014.'.
(d) Grassland Reserve Program- Section 1241(a)(5) of the Food Security
Act of 1986 (16 U.S.C. 3841(a)(5)) is amended by striking `2007' and
inserting `2014'.
(e) Environmental Quality Incentives Program- Section 1241(a) of the
Food Security Act of 1986 (16 U.S.C. 3841(a)) is amended by striking
paragraph (6) and inserting the following:
`(6) The environmental quality incentives program under chapter 4,
using, to the maximum extent practicable--
`(A) $1,250,000,000 in fiscal year 2008;
`(B) $1,600,000,000 in fiscal year 2009;
`(C) $1,700,000,000 in fiscal year 2010;
`(D) $1,800,000,000 in fiscal year 2011; and
`(E) $2,000,000,000 in each of fiscal years 2012 through 2014.'.
(f) Wildlife Habitat Incentives Program- Section 1241(a) of the Food
Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph
(7) and inserting the following:
`(7) The wildlife habitat incentives program under section 1240N,
using, to the maximum extent practicable--
`(A) $85,000,000 in fiscal year 2008;
`(B) $100,000,000 in fiscal year 2009;
`(C) $140,000,000 in fiscal year 2010; and
`(D) $150,000,000 in each of fiscal years 2011 through 2014.'.
SEC. 2702. CONSERVATION APPLICATION PROCESS.
Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended
by adding at the end the following:
`(c) Conservation Application Process-
`(1) INITIAL APPLICATION-
`(A) IN GENERAL- Not later than 1 year after the date of enactment
of this subsection, the Secretary shall establish a single, simplified
application for eligible entities to use in initially requesting
assistance under any conservation program administered by the Natural
Resources Conservation Service (referred to in this subsection as
the `initial application').
