H.R. 3552 — Sustainable Agricultural Adjustment Act of 1989

 
HR 3552 IH
101st CONGRESS
1st Session
 H. R. 3552
To amend the Agricultural Act of 1949 to foster and encourage a sustainable
agricultural system in the United States.
IN THE HOUSE OF REPRESENTATIVES
October 31, 1989
Mr. JONTZ (for himself, Mr. BROWN of California, Mr. JOHNSON of South
Dakota, Mr. NAGLE, Mr. EVANS, Mr. HAMILTON, Mr. DURBIN, Mr. MCCLOSKEY,
Mr. DEFAZIO, Mr. ATKINS, Ms. SCHNEIDER, Ms. SLAUGHTER of New York, Mr. TOWNS,
and Mr. BRYANT) introduced the following bill; which was referred to the
Committee on Agriculture
A BILL
To amend the Agricultural Act of 1949 to foster and encourage a sustainable
agricultural system in the United States.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Sustainable Agricultural Adjustment Act
  of 1989'.
TITLE I--GENERAL PROVISIONS
SEC. 101. PURPOSE.
  The purpose of the program established by this Act is to promote the social,
  economic, and environmental sustainability of the American agricultural
  system by--
  (1) reducing existing program barriers to the adoption of alternative
  sustainable agricultural production systems;
  (2) providing widespread educational opportunities and appropriate
  technical and financial assistance to producers seeking to adopt sustainable
  agricultural production systems;
  (3) developing the capacity to integrate existing programs in soil, water,
  and energy conservation, best management practices, biological control,
  integrated pest management, and farm health and safety in order to promote
  integrated, whole-farm, multiyear, resource management strategies; and
  (4) evaluating current agricultural and agriculture-related policies and
  programs for their impact on sustainable agriculture.
SEC. 102. SUSTAINABLE AGRICULTURE REPORTS.
  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--
  (1) not later than 270 days after the date of enactment of this Act,
  a report describing the technical guides required under section 401(a);
  (2) not later than April 1, 1990, and each April 1 thereafter, a report
  describing the progress of the program established under title II,
  including--
  (A) a summary and analysis of participation rates and the implementation
  and impact of farm management plans described in section 202, analyzed by
  geographical region, farm type, farm size, and other relevant subdivisions;
  and
  (B) a description of administration and certification procedures undertaken
  to carry out such program; and
  (3) not later than 1 year after the date of enactment of this Act, a report--
  (A) assessing how existing agricultural programs and policies foster
  or inhibit the adoption of sustainable agriculture production systems,
  including the impact on sustainable agriculture of--
  (i) commodity program rules;
  (ii) Federal tax laws;
  (iii) Federal crop insurance;
  (iv) Federal and cooperative farm credit programs;
  (v) trade policies and export and import programs of the United States;
  (vi) conservation policies and programs;
  (vii) marketing orders and grading standards;
  (viii) meat grading and labeling policies;
  (ix) new agricultural production technological developments; and
  (x) such other areas as the Secretary considers appropriate;
  (B) containing detailed recommendations for policy and program changes and
  options in each of these areas to encourage the adoption of sustainable
  agriculture production systems; and
  (C) including such other information as the Secretary considers appropriate.
TITLE II--FARM PROGRAM FLEXIBILITY OPTION
SEC. 201. ESTABLISHMENT.
  The Secretary of Agriculture (hereinafter in this title referred to as the
  `Secretary') shall, by rule, establish a program designed to assist producers
  of agricultural commodities in adopting sustainable agricultural production
  systems through the use of integrated, site-specific farm management plans
  to enable producers to meet the following objectives:
  (1) Enhance economic resiliency, productivity, and profitability.
  (2) Optimize the use of on-farm resources and reduce the use of nonrenewable
  natural resources and purchased production inputs.
  (3) Increase retention of farm receipts in the form of return to operator
  for labor and management.
  (4) Minimize the use of agricultural chemicals.
  (5) Conserve soil, water, energy, and natural resources.
  (6) Protect human health and animal welfare.
  (7) Improve soil fertility and tilth.
  (8) Prevent air, surface water, and ground water degradation.
  (9) Promote agricultural diversification and genetic and species diversity.
  (10) Produce abundant safe, wholesome food.
SEC. 202. INTEGRATED FARM MANAGEMENT PLANS.
  (a) DEFINITIONS- For purposes of sections 101A(c)(1)(H), 103A(c)(1)(H),
  105C(c)(1)(J), 107D(c)(1)(L) of the Agricultural Act of 1949:
  (1) The term `resource-conserving crop' means legumes, legume-grass
  mixtures, legume-small grain mixtures, and legume-grass-small grain
  mixtures. Small grains shall not include malting barley or wheat,
  except for wheat interplanted with other small grain crops for nonhuman
  consumption. Legume means forage legumes (such as alfalfa or clover) or
  any legume grown for use as a forage or green manure, but not including
  any bean crop from which the seeds are harvested. Grass includes perennial
  grasses commonly used for haying or grazing.
  (2) The term `resource-conserving crop rotation' means a crop rotation which
  includes a resource-conserving crop which reduces erosion and agricultural
  chemical use.
  (b) ELIGIBILITY- To be eligible to participate in the program established
  by this title, a producer must--
  (1) submit to the Secretary (or his delegate) an integrated farm management
  plan, which is subsequently approved by the Secretary (or his delegate); and
  (2) comply with the terms of the integrated farm management plan approved
  by the Secretary.
  (c) REQUIREMENTS OF THE PLANS- Each integrated farm management plan approved
  by the Secretary (or his delegate) shall--
  (1) set forth a 5-year schedule to develop sustainable agricultural
  production systems on the farm subject to the plan;
  (2) describe the farming operations and practices to be implemented during
  the 5-year period;
  (3) describe how the farming operations and practices (by utilizing
  a combination of crops and crop-plant varieties, rotation practices,
  tillage systems, soil conserving and soil building practices, nutrient
  management strategies, biological control and integrated pest management
  strategies, and water and energy conservation measures) could reasonably
  be expected to result, by the end of the 5-year period, in nondegradation
  of farmland soils, reductions in the use of fertilizers and pesticides to
  low levels, protection of water supplies from depletion and contamination,
  and significant reductions in the use of non-renewable natural resources
  and purchased production inputs; and
  (4) contain such other terms as the Secretary may, by rule, require.
  (d) ADMINISTRATION AND CERTIFICATION-
  (1) ADMINISTRATION- The program established by this title shall be
  administered by the Secretary, in consultation with the Agricultural
  Stabilization and Conservation Service, the Agricultural Soil Conservation
  Service, and the Agricultural Extension Service. These entities shall
  provide technical assistance to producers formulating integrated farm
  management plans. Such plans may draw upon the technical guides described
  in section 401 and may also include other practices appropriate to the
  particular circumstances of the producer and the purposes of this Act. In
  administering the program, the Secretary shall provide sufficient flexibility
  for producers to adjust or modify their integrated farm management plans
  consistent with the purposes of the program.
  (2) CERTIFICATION- The Agricultural Soil Conservation Service shall certify
  compliance by producers with the terms and conditions of the integrated
  farm management plans.
  (3) HAYING RESTRICTION- The Secretary may, if he determines that
  implementation of this title will result in severely depressed hay prices in
  particular geographic areas, limit the amount of hay that can be harvested
  from these acres. Such limits may include restrictions on the number of times
  hay can be harvested from such acres per year, the timing of harvesting,
  or the number of years such land can remain in the same hay stand, or a
  prohibition on hay harvesting from acres on which a small grain was not
  originally interplanted with the hay crop and harvested for grain.
SEC. 204. CHANGES IN EXISTING LAW TO BENEFIT PARTICIPANTS IN THE PROGRAM.
  (a) PROGRAM PAYMENT YIELD CALCULATION- Section 506 of the Agricultural
  Act of 1949 (7 U.S.C. 1466) is amended by inserting at the end thereof
  the following new subsection:
  `(e) Notwithstanding any other provision of law, farm program payment yields
  may not be reduced as a result of participation in the program established
  by title II of the Sustainable Agricultural Adjustment Act of 1989.'.
  (b) ADJUSTMENTS IN PRODUCTION ADJUSTMENT REQUIREMENTS-
  (1) WHEAT- Section 107(D)(f) of the Agricultural Act of 1949 (7
  U.S.C. 1445b-3(f)) is amended by adding at the end thereof the following
  new paragraph:
  `(9)(A) Notwithstanding any other provision of law, with respect to
  producers participating in the program under title II of the Sustainable
  Agricultural Adjustment Act of 1989, the Secretary shall make fair and
  equitable adjustments in acreage limitation and set-aside requirements
  applicable to such producers to give consideration to crop rotations, soil
  and water conservation practices, and other appropriate factors resulting
  from the implementation of integrated farm management plans under such title.
  `(B) If the Secretary determines that the reduction in program crop
  production and total crop production on a participating farm referred to
  in subparagraph (A) will equal or exceed any reduction in crop production
  that occurs on such farm as a result of acreage limitation or set-aside
  requirements in the absence of participation in the program referred to
  in subparagraph (A), the Secretary shall waive such acreage limitation or
  set-aside requirements for such farm.'.
  (2) FEED GRAINS- Section 105(C)(f) of such Act (7 U.S.C. 1444e(f)) is
  amended by adding at the end thereof the following new paragraph:
  `(9)(A) Notwithstanding any other provision of law, with respect to
  producers participating in the program under title II of the Sustainable
  Agricultural Adjustment Act of 1989, the Secretary shall make fair and
  equitable adjustments in acreage limitation and set-aside requirements
  applicable to such producers to give consideration to crop rotations, soil
  and water conservation practices, and other appropriate factors resulting
  from the implementation of integrated farm management plans under such title.
  `(B) If the Secretary determines that the reduction in program crop
  production and total crop production on a participating farm referred to
  in subparagraph (A) will equal or exceed any reduction in crop production
  that occurs on such farm as a result of acreage limitation or set-aside
  requirements in the absence of participation in the program referred to
  in subparagraph (A), the Secretary shall waive such acreage limitation or
  set-aside requirements for such farm.'.
  (3) UPLAND COTTON- Section 103A(f) of such Act (7 U.S.C. 1444-1(f)) is
  amended by adding at the end thereof the following new paragraph:
  `(8)(A) Notwithstanding any other provision of law, with respect to
  producers participating in the program under title II of the Sustainable
  Agricultural Adjustment Act of 1989, the Secretary shall make fair and
  equitable adjustments in acreage limitation and set-aside requirements
  applicable to such producers to give consideration to crop rotations, soil
  and water conservation practices, and other appropriate factors resulting
  from the implementation of integrated farm management plans under such title.
  `(B) If the Secretary determines that the reduction in program crop
  production and total crop production on a participating farm referred to
  in subparagraph (A) will equal or exceed any reduction in crop production
  that occurs on such farm as a result of acreage limitation or set-aside
  requirements in the absence of participation in the program referred to
  in subparagraph (A), the Secretary shall waive such acreage limitation or
  set-aside requirements for such farm.'.
  (4) RICE- Section 101A(f) (7 U.S.C. 14441-(f)) is amended by adding at
  the end thereof the following new paragraph:
  `(8)(A) Notwithstanding any other provision of law, with respect to
  producers participating in the program under title II of the Sustainable
  Agricultural Adjustment Act of 1989, the Secretary shall make fair and
  equitable adjustments in acreage limitation and set-aside requirements
  applicable to such producers to give consideration to crop rotations, soil
  and water conservation practices, and other appropriate factors resulting
  from the implementation of integrated farm management plans under such title.
  `(B) If the Secretary determines that the reduction in program crop
  production and total crop production on a participating farm referred to
  in subparagraph (A) will equal or exceed any reduction in crop production
  that occurs on such farm as a result of acreage limitation or set-aside
  requirements in the absence of participation in the program referred to
  in subparagraph (A), the Secretary shall waive such acreage limitation or
  set-aside requirements for such farm.'.
  (c) BASE AND PAYMENT PROTECTION-
  (1) WHEAT- Section 107D(c)(1) of the Agricultural Act of 1949 (7
  U.S.C. 1445b-3(c)(1)) is amended by adding at the end thereof the following
  new subparagraph:
  `(L) Notwithstanding any other provision of this Act, with respect to
  producers on farms who are participating in the program under title II of
  the Sustainable Agricultural Adjustment Act of 1989, in the calculation of
  payments to be made to such producers, that portion of the base acreage
  of a producer that is devoted to a resource-conserving crop as part of
  a resource-conserving crop rotation shall be considered as part of the
  individual farm program acreage for the crop. The Secretary, only for the
  purpose of establishing base acreage under this subparagraph, shall make fair
  and equitable adjustments in the crop acreage base of participating producers
  who have small crop acreage bases relative to the county average base because
  of historical use of crop rotation practices designed to reduce erosion,
  enhance soil fertility, and reduce dependence on agricultural chemicals.'.
  (2) FEED GRAINS- Section 105C(c)(1) of such Act (7 U.S.C. 1444e(c)(1))
  is amended by adding at the end thereof the following new subparagraph:
  `(J) Notwithstanding any other provision of this Act, with respect to
  producers on farms who are participating in the program under title II of
  the Sustainable Agricultural Adjustment Act of 1989, in the calculation of
  payments to be made to such producers, that portion of the base acreage
  of a producer that is devoted to a resource-conserving crop as part of
  a resource-conserving crop rotation shall be considered as part of the
  individual farm program acreage for the crop. The Secretary, only for the
  purpose of establishing base acreage under this subparagraph, shall make fair
  and equitable adjustments in the crop acreage base of participating producers
  who have small crop acreage bases relative to the county average base because
  of historical use of crop rotation practices designed to reduce erosion,
  enhance soil fertility, and reduce dependence on agricultural chemicals.'.
  (3) UPLAND COTTON- Section 103A(c)(1) of such Act (7 U.S.C. 1444-1(c)(1))
  is amended by adding at the end thereof the following new subparagraph:
  `(H) Notwithstanding any other provision of this Act, with respect to
  producers on farms who are participating in the program under title II of
  the Sustainable Agricultural Adjustment Act of 1989, in the calculation of
  payments to be made to such producers, that portion of the base acreage
  of a producer that is devoted to a resource-conserving crop as part of
  a resource-conserving crop rotation shall be considered as part of the
  individual farm program acreage for the crop. The Secretary, only for the
  purpose of establishing base acreage under this subparagraph, shall make fair
  and equitable adjustments in the crop acreage base of participating producers
  who have small crop acreage bases relative to the county average base because
  of historical use of crop rotation practices designed to reduce erosion,
  enhance soil fertility, and reduce dependence on agricultural chemicals.'.
  (4) RICE- Section 101A(c)(1) of such Act (7 U.S.C. 1441-1(c)(1)) is amended
  by adding at the end thereof the following new subparagraph:
  `(H) Notwithstanding any other provision of this Act, with respect to
  producers on farms who are participating in the program under title II of
  the Sustainable Agricultural Adjustment Act of 1989, in the calculation of
  payments to be made to such producers, that portion of the base acreage
  of a producer that is devoted to a resource-conserving crop as part of
  a resource-conserving crop rotation shall be considered as part of the
  individual farm program acreage for the crop. The Secretary, only for the
  purpose of establishing base acreage under this subparagraph, shall make fair
  and equitable adjustments in the crop acreage base of participating producers
  who have small crop acreage bases relative to the county average base because
  of historical use of crop rotation practices designed to reduce erosion,
  enhance soil fertility, and reduce dependence on agricultural chemicals.'.
  (d) CROSS-COMPLIANCE EXEMPTION-
  (1) WHEAT- Section 107D(n)(2) of the Agricultural Act of 1949 is amended by
  adding at the end thereof the following: `, unless such planting is approved
  as part of integrated farm management plan in the case of producers on a
  farm who are participating in the program under title II of the Sustainable
  Agricultural Adjustment Act of 1989'.
  (2) FEED GRAINS- Section 105D(n)(2) of such Act is amended by adding at the
  end thereof the following: `, unless such planting is approved as part of
  integrated farm management plan in the case of producers on a farm who are
  participating in the program under title II of the Sustainable Agricultural
  Adjustment Act of 1989'.
  (3) UPLAND COTTON- Section 103A(n)(2) of such Act is amended by adding
  at the end thereof the following: `, unless such planting is approved as
  part of integrated farm management plan in the case of producers on a farm
  who are participating in the program under title II of the Sustainable
  Agricultural Adjustment Act of 1989'.
  (4) RICE- Section 101A(n)(2) of such Act is amended by adding at the end
  thereof the following: `, unless such planting is approved as part of
  integrated farm management plan in the case of producers on a farm who are
  participating in the program under title II of the Sustainable Agricultural
  Adjustment Act of 1989'.
TITLE III--SUSTAINABLE AGRICULTURE RESEARCH AND EXTENSION PROGRAM
SEC. 301. ESTABLISHMENT OF PROGRAM.
  (a) ESTABLISHMENT- There is established within the Extension Service a
  Sustainable Agriculture Extension Program.
  (b) STATE EXTENSION SUSTAINABLE AGRICULTURE COORDINATOR- To implement
  this title within each State, the head of the Sustainable Agriculture
  Extension Program shall designate a Sustainable Agriculture Extension
  Coordinator within each State. The coordinators shall report to the head
  of the Sustainable Agriculture Extension Program. The coordinators shall
  be responsible for developing and implementing a statewide sustainable
  agriculture outreach and information delivery program.
  (c) REGIONAL SPECIALISTS- To assist county agents and farmers implement
  this title, the head of the Sustainable Agriculture Extension Program
  shall designate regional sustainable agriculture specialists within
  each State. The specialists shall report to the State coordinator. The
  specialists shall be responsible for developing and coordinating local
  dissemination of sustainable agriculture information in a manner that is
  useful to farmers in the region.
SEC. 302. PURPOSE.
  The purpose of the Sustainable Agriculture Extension Program is to provide
  information, analysis, training, education, and technical assistance
  to farmers attempting to design and implement sustainable agricultural
  systems, including farmers participating in the program authorized by title
  II. Extension activities should be directed to information, analysis,
  training, education, and technical assistance concerning technologies,
  methods, and systems that can be used effectively by small and moderate-sized
  family farms.
SEC. 303. DUTIES.
  Among its duties, the Sustainable Agriculture Extension Program, in
  conjunction with the research and education program established by subtitle
  C of title XIV of the Food Security Act of 1985, shall--
  (1) collect, evaluate, and disseminate existing information on sustainable
  agriculture;
  (2) research, revise, update, and re-issue, as appropriate, bulletins and
  other publications in the extension service archives concerning sustainable
  agricultural practices, methods, and systems;
  (3) validate, demonstrate, and disseminate information on sustainable crop
  and livestock systems;
  (4) encourage and cooperate in on-farm participatory research and validation
  activities through integrated efforts by extension agents, farmers, and
  sustainable agriculture organizations;
  (5) assist in developing farmer-to-farmer information exchange networks
  to enable farmers making transitions to more sustainable farming systems
  to share ideas and draw on each other's experiences;
  (6) help coordinate and publicize a regular series of sustainable agriculture
  farm tours and field days within each State;
  (7) plan for extension programming, including extensive farmer input and
  feedback, in the design of new and ongoing research endeavors related to
  sustainable agriculture;
  (8) provide technical assistance to individual farmers in the design
  and implementation of farm management plans and strategies for making a
  transition to more sustainable agricultural systems;
  (9) consult and work closely with SCS and ASCS in carrying out the
  information, technical assistance and other functions under the programs
  established by title II of this Act; and
  (10) develop, coordinate, and direct special education and outreach programs
  in areas highly susceptible to groundwater contamination, linking sustainable
  agriculture information with water quality improvement information.
  (11) develop information sources relating to crop diversification,
  alternative crops, on-farm food or commodity processing, and on-farm
  energy generation;
  (12) disseminate information and conclusions resulting from any research
  project conducted under the program established by subtitle C of title
  XIV of the Food Security Act of 1985.
TITLE IV--TECHNICAL AND FINANCIAL ASSISTANCE
Subtitle A--Technical Assistance and Training
SEC. 401. TECHNICAL GUIDES.
  (a) IN GENERAL--
  (1) DEVELOPMENT- The Secretary of Agriculture (hereinafter in this title
  referred to as the `Secretary'), in conjunction with the panels established
  under section 1466 of the Food Security Act of 1985 (7 U.S.C. 4706),
  shall develop, expand, and revise the Soil Conservation Service field
  office technical guides to incorporate the full range of sustainable
  agricultural practices in order to promote integrated, whole farm resource
  base management.
  (2) INFORMATION- The guides required under paragraph (1) shall include
  detailed information on selection of crops and crop-plant varieties,
  rotation practices, tillage systems, nutrient management, soil fertility
  and productivity, pest management, livestock management, soil, water,
  and energy conservation, and other practices useful in carrying out this Act.
  (3) STANDARDS AND INSTRUCTIONS- Such guides shall provide standards
  and practical instructions, based on existing scientific and technical
  knowledge, to ensure nondegradation of farmland soils, reductions in
  the use of fertilizers and pesticides to low levels, protection of water
  supplies from depletion and contamination, and significant reductions in
  the use of non-renewable natural resources and purchased production inputs.
  (b) GRANT PROGRAM-
  (1) ESTABLISHMENT- Not later than 60 days after the date of enactment of
  this Act, in consultation with the regional panels established under section
  1466 of the Food Security Act of 1985 (7 U.S.C. 4706), the Secretary shall
  establish a grant program to assist in the development of the expanded
  technical guides described in subsection (a).
  (2) GRANTS- The Secretary may provide grants for the development or revision
  of portions of such guides to persons who are eligible to conduct research
  projects under subtitle C of title XIV of the Food Security Act of 1985
  (7 U.S.C. 4701 et seq.).
  (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  such sums as may be necessary to carry out this section.
SEC. 402. TRAINING PROGRAM.
  The Secretary, acting through the Extension Service and the Soil Conservation
  Service, shall establish an in-service training program for the staffs of
  both agencies in sustainable agriculture practices, including training in
  the use of decision support systems to help farmers develop effective and
  competitive integrated farm management strategies.
SEC. 403. TECHNICAL ASSISTANCE.
  The Secretary, working through the Extension Service and the Soil
  Conservation Service, shall provide and widely publicize the availability of
  technical assistance in the preparation of integrated farm management plans
  based on the technical guides and utilizing the decision support system.
Subtitle B--Financial Assistance
SEC. 411. ACP ELIGIBILITY.
  (a) COST-SHARING AGREEMENTS- To carry out this Act, the Secretary
  is authorized to enter into agreements of not to exceed 10 years with
  producers on farms for 50 percent cost-sharing assistance to implement
  integrated farm management plans.
  (b) ADDITIONAL SPECIFICATIONS- (1) Producers shall be eligible for assistance
  under subsection (a) for the costs of establishing short-term stands of
  soil-building legumes and legume-grass mixtures on harvested or reduced
  acres when applying a resource-conserving crop rotation, except when planted
  on acres on which payments are received under section 204(c). Legumes means
  forage legumes, such as alfalfa and clover, and any legume grown for use as
  a forage or green manure and does not include any bean crop from which seeds
  are harvested. Grasses includes perennial grasses commonly used for haying
  and grazing. Short-term stands of soil building legumes and legume-grass
  mixtures includes those maintained for at least one full growing season,
  but not more than 2 years. Resource-conserving crop rotations are those
  that reduce erosion and agricultural chemical use.
  (2) Producers shall not be ineligible under this section solely because
  they plant on land eroding at rates less than the tolerable rate.
  (3) Assistance may be denied under this section if the local Soil
  Conservation Service office determines that due to the presence of soil
  nitrates planting of the legume will result in excessive leaching of
  nitrates into groundwater.
  (4) Herbicide purchases and applications shall be ineligible for assistance
  under this section.
  (c) ADMINISTRATION- The cost-sharing assistance program authorized by
  this section shall be administered by the Agricultural Stabilization and
  Conservation Service in consultation with the Soil Conservation Service
  and the local conservation districts.
SEC. 412. FmHA PROGRAMS.
  (a) REVISION OF SOIL AND WATER LOAN PROGRAM- Section 304(a) of the
  Consolidated Farm and Rural Development Act (7 U.S.C. 1924(a)) is amended
  to read as follows:
  `(a)(1) Loans may also be made or insured under this subtitle to any
  farmowners or tenants for the purpose of soil and water conservation and
  protection for--
  `(A) the installation of conservation structures, including terraces, sod
  waterways, water impoundment reservoirs built for erosion or pollution
  control purposes, permanently vegetated stream borders, windbreaks,
  shelterbelts, and living snow fences;
  `(B) a forest cover for sustained yield timber management, erosion control,
  or shelterbelt purposes;
  `(C) an establishment or improvement of permanent pasture;
  `(D) pollution control and energy-saving measures;
  `(E) costs of complying with section 1211 of the Food Security Act of 1985
  (16 U.S.C. 3811);
  `(F) costs of complying with title II of the Sustainable Agricultural
  Adjustment Act of 1989;
  `(G) the establishment of outdoor recreational enterprises that are part
  of a conservation easement agreement; and
  `(H) other purposes consistent with soil and water conservation plans or
  integrated farm management plans.
  `(2) In making or insuring loans under paragraph (1), the Secretary shall
  give priority to--
  `(A) participants in the program established by subtitle D of title II of
  the Sustainable Agricultural Act of 1989; and
  `(B) producers who use the loan to build conservation structures to comply
  with section 1211 of the Food Security Act of 1985.'.
  (b) LIMITED RESOURCE LOANS- Subsection 310D of such Act (7 U.S.C. 1934)
  is amended by inserting after `section 303(a) of this title' the following:
  `or in subparagraphs (A) through (H) of section 304(a)(1)'.
  (c) LIMITATION ON THE AMOUNT OF LOAN- Section 305 of such Act (7 U.S.C. 1925)
  is amended--
  (1) by inserting `(a)' after the section designation; and
  (2) by adding at the end thereof the following new subsection:
  `(b) The Secretary shall make or insure no loan under section 304 that
  exceeds the smaller of (1) the value of the farm or other security, or
  (2) $50,000.'.
  (d) OPERATING LOAN PURPOSES- Section 312(a) of the Consolidated Farm and
  Rural Development Act (7 U.S.C. 1942(a)) is amended--
  (1) in paragraph (1), by inserting after `operation' the following:
  `(including converting to and maintaining sustainable agricultural production
  systems, as described by the technical guides established under section
  401 of the Sustainable Agricultural Act of 1989)'; and
  (2) in paragraph (4), by inserting after `conservation' the following:
  `(including the costs of complying with section 1211 of the Food Security
  Act of 1985 (16 U.S.C. 3811))'.
Sustainable Agricultural Adjustment Act of 1989

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