[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1673 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1673
To provide for the continuation of agricultural programs through fiscal
year 2011.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 9, 2001
Mrs. Lincoln (for herself, Mr. Hutchinson, Mr. Helms, Mr. Miller, Ms.
Landrieu, and Mr. Breaux) introduced the following bill; which was read
twice and referred to the Committee on Agriculture, Nutrition, and
Forestry
_______________________________________________________________________
A BILL
To provide for the continuation of agricultural programs through fiscal
year 2011.
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 Security Act
of 2001''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--COMMODITY PROGRAMS
Sec. 100. Definitions.
Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments
Sec. 101. Payments to eligible producers.
Sec. 102. Establishment of payment yield.
Sec. 103. Establishment of base acres and payment acres for a farm.
Sec. 104. Availability of fixed, decoupled payments.
Sec. 105. Availability of counter-cyclical payments.
Sec. 106. Producer agreement required as condition on provision of
fixed, decoupled payments and counter-
cyclical payments.
Sec. 107. Planting flexibility.
Sec. 108. Relation to remaining payment authority under production
flexibility contracts.
Sec. 109. Payment limitations.
Sec. 110. Period of effectiveness.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 121. Availability of nonrecourse marketing assistance loans for
covered commodities.
Sec. 122. Loan rates for nonrecourse marketing assistance loans.
Sec. 123. Term of loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency payments.
Sec. 126. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 127. Special marketing loan provisions for upland cotton.
Sec. 128. Special competitive provisions for extra long staple cotton.
Sec. 129. Availability of recourse loans for high moisture feed grains
and seed cotton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for
wool and mohair.
Sec. 131. Availability of nonrecourse marketing assistance loans for
honey.
Sec. 132. Producer retention of erroneously paid loan deficiency
payments and marketing loan gains.
Subtitle C--Other Commodities
Chapter 1--Dairy
Sec. 141. Milk price support program.
Sec. 142. Repeal of recourse loan program for processors.
Sec. 143. Extension of dairy export incentive and dairy indemnity
programs.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product mandatory reporting.
Sec. 146. Study of national dairy policy.
Chapter 2--Sugar
Sec. 151. Sugar program.
Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938
regarding sugar.
Sec. 153. Storage facility loans.
Chapter 3--Peanuts
Sec. 161. Definitions.
Sec. 162. Establishment of payment yield, peanut acres, and payment
acres for a farm.
Sec. 163. Availability of fixed, decoupled payments for peanuts.
Sec. 164. Availability of counter-cyclical payments for peanuts.
Sec. 165. Producer agreement required as condition on provision of
fixed, decoupled payments and counter-
cyclical payments.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance loans and loan deficiency payments for
peanuts.
Sec. 168. Quality improvement.
Sec. 169. Payment limitations.
Sec. 170. Termination of marketing quota programs for peanuts and
compensation to peanut quota holders for
loss of quota asset value.
Subtitle D--Administration
Sec. 181. Administration generally.
Sec. 182. Extension of suspension of permanent price support authority.
Sec. 183. Limitations.
Sec. 184. Adjustments of loans.
Sec. 185. Personal liability of producers for deficiencies.
Sec. 186. Extension of existing administrative authority regarding
loans.
Sec. 187. Assignment of payments.
Sec. 188. Report on effect of certain farm program payments on economic
viability of producers and farming
infrastructure.
TITLE II--CONSERVATION
Subtitle A--Environmental Conservation Acreage Reserve Program
Sec. 201. General provisions.
Subtitle B--Conservation Reserve Program
Sec. 211. Reauthorization.
Sec. 212. Enrollment.
Sec. 213. Duties of owners and operators.
Sec. 214. Reference to conservation reserve payments.
Sec. 215. Expansion of pilot program to all States.
Subtitle C--Wetlands Reserve Program
Sec. 221. Enrollment.
Sec. 222. Easements and agreements.
Sec. 223. Duties of the Secretary.
Sec. 224. Changes in ownership; agreement modification; termination.
Subtitle D--Environmental Quality Incentives Program
Sec. 231. Purposes.
Sec. 232. Definitions.
Sec. 233. Establishment and administration.
Sec. 234. Evaluation of offers and payments.
Sec. 235. Environmental Quality Incentives Program plan.
Sec. 236. Duties of the Secretary.
Sec. 237. Limitation on payments.
Sec. 238. Ground and surface water conservation.
Subtitle E--Funding and Administration
Sec. 241. Reauthorization.
Sec. 242. Funding.
Sec. 243. Allocation for livestock production.
Sec. 244. Administration and technical assistance.
Subtitle F--Other Programs
Sec. 251. Private grazing land and conservation assistance.
Sec. 252. Wildlife Habitat Incentives Program.
Sec. 253. Farmland Protection Program.
Sec. 254. Resource Conservation and Development Program.
Sec. 255. Grassland Reserve Program.
Sec. 256. Farmland Stewardship Program.
Sec. 257. Small Watershed Rehabilitation Program.
Sec. 258. Provision of assistance for Repaupo Creek Tide Gate and Dike
Restoration Project, New Jersey.
Sec. 259. Grassroots source water protection program.
Subtitle G--Repeals
Sec. 261. Provisions of the Food Security Act of 1985.
Sec. 262. National Natural Resources Conservation Foundation Act.
TITLE III--TRADE
Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Surplus commodities for developing or friendly countries.
Sec. 304. Export Enhancement Program.
Sec. 305. Foreign Market Development Cooperator Program.
Sec. 306. Export Credit Guarantee Program.
Sec. 307. Food for Peace (Public Law 480).
Sec. 308. Emerging markets.
Sec. 309. Bill Emerson Humanitarian Trust.
Sec. 310. Technical assistance for specialty crops.
Sec. 311. Farmers to Africa and the Caribbean Basin.
Sec. 312. George McGovern-Robert Dole International Food for Education
and Child Nutrition Program.
Sec. 313. Study on fee for services.
Sec. 314. National export strategy report.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 401. Simplified definition of income.
Sec. 402. Standard deduction.
Sec. 403. Transitional food stamps for families moving from welfare.
Sec. 404. Quality control systems.
Sec. 405. Simplified application and eligibility determination systems.
Sec. 406. Authorization of appropriations.
Subtitle B--Commodity Distribution
Sec. 441. Distribution of surplus commodities to special nutrition
projects.
Sec. 442. Commodity supplemental food program.
Sec. 443. Emergency food assistance.
Subtitle C--Miscellaneous Provisions
Sec. 461. Hunger fellowship program.
Sec. 462. General effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 501. Direct loans.
Sec. 502. Financing of bridge loans.
Sec. 503. Limitations on amount of farm ownership loans.
Sec. 504. Joint financing arrangements.
Sec. 505. Guarantee percentage for beginning farmers and ranchers.
Sec. 506. Guarantee of loans made under State beginning farmer or
rancher programs.
Sec. 507. Down payment loan program.
Sec. 508. Beginning farmer and rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 511. Direct loans.
Sec. 512. Amount of guarantee of loans for tribal farm operations;
waiver of limitations for tribal farm
operations and other farm operations.
Subtitle C--Administrative Provisions
Sec. 521. Eligibility of limited liability companies for farm ownership
loans, farm operating loans, and emergency
loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority to enter into contracts; private
collection agencies.
Sec. 524. Interest rate options for loans in servicing.
Sec. 525. Annual review of borrowers.
Sec. 526. Simplified loan applications.
Sec. 527. Inventory property.
Sec. 528. Definitions.
Sec. 529. Loan authorization levels.
Sec. 530. Interest rate reduction program.
Sec. 531. Options for satisfaction of obligation to pay recapture
amount for shared appreciation agreements.
Sec. 532. Waiver of borrower training certification requirement.
Sec. 533. Annual review of borrowers.
Subtitle D--Farm Credit
Sec. 541. Repeal of burdensome approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation premiums.
Sec. 544. Board of Directors of the Federal Agricultural Mortgage
Corporation.
Subtitle E--General Provisions
Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effect of amendments.
Sec. 554. Effective date.
TITLE VI--RURAL DEVELOPMENT
Sec. 601. Funding for rural local television broadcast signal loan
guarantees.
Sec. 602. Expanded eligibility for value-added agricultural product
market development grants.
Sec. 603. Agriculture innovation center demonstration program.
Sec. 604. Funding of community water assistance grant program.
Sec. 605. Loan guarantees for the financing of the purchase of
renewable energy systems.
Sec. 606. Loans and loan guarantees for renewable energy systems.
Sec. 607. Rural business opportunity grants.
Sec. 608. Grants for water systems for rural and native villages in
Alaska.
Sec. 609. Rural cooperative development grants.
Sec. 610. National reserve account of Rural Development Trust Fund.
Sec. 611. Rural venture capital demonstration program.
Sec. 612. Increase in limit on certain loans for rural development.
Sec. 613. Pilot program for development and implementation of strategic
regional development plans.
Sec. 614. Grants to nonprofit organizations to finance the
construction, refurbishing, and servicing
of individually-owned household water well
systems in rural areas for individuals with
low or moderate incomes.
Sec. 615. National Rural Development Partnership.
Sec. 616. Eligibility of rural empowerment zones, rural enterprise
communities, and champion communities for
direct and guaranteed loans for essential
community facilities.
Sec. 617. Grants to train farm workers in new technologies and to train
farm workers in specialized skills
necessary for higher value crops.
Sec. 618. Loan guarantees for the purchase of stock in a farmer
cooperative seeking to modernize or expand.
Sec. 619. Intangible assets and subordinated unsecured debt required to
be considered in determining eligibility of
farmer-owned cooperative for business and
industry guaranteed loan.
Sec. 620. Ban on limiting eligibility of farmer cooperative for
business and industry loan guarantee based
on population of area in which cooperative
is located; refinancing.
Sec. 621. Rural water and waste facility grants.
Sec. 622. Rural water circuit rider program.
Sec. 623. Rural water grassroots source water protection program.
Sec. 624. Delta regional authority.
Sec. 625. Predevelopment and small capitalization loan fund.
Sec. 626. Rural economic development loan and grant program.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--Extensions
Sec. 700. Market expansion research.
Sec. 701. National Rural Information Center Clearinghouse.
Sec. 702. Grants and fellowships for food and agricultural sciences
education.
Sec. 703. Policy research centers.
Sec. 704. Human nutrition intervention and health promotion research
program.
Sec. 705. Pilot research program to combine medical and agricultural
research.
Sec. 706. Nutrition education program.
Sec. 707. Continuing animal health and disease research programs.
Sec. 708. Appropriations for research on national or regional problems.
Sec. 709. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including
Tuskegee University.
Sec. 710. National research and training centennial centers at 1890
land-grant institutions.
Sec. 711. Hispanic-serving institutions.
Sec. 712. Competitive grants for international agricultural science and
education programs.
Sec. 713. University research.
Sec. 714. Extension service.
Sec. 715. Supplemental and alternative crops.
Sec. 716. Aquaculture research facilities.
Sec. 717. Rangeland research.
Sec. 718. National genetics resources program.
Sec. 719. High-priority research and extension initiatives.
Sec. 720. Nutrient management research and extension initiative.
Sec. 721. Agricultural telecommunications program.
Sec. 722. Alternative agricultural research and commercialization
revolving fund.
Sec. 723. Assistive technology program for farmers with disabilities.
Sec. 724. Partnerships for high-value agricultural product quality
research.
Sec. 725. Biobased products.
Sec. 726. Integrated research, education, and extension competitive
grants program.
Sec. 727. Institutional capacity building grants.
Sec. 728. 1994 Institution research grants.
Sec. 729. Endowment for 1994 Institutions.
Sec. 730. Precision agriculture.
Sec. 731. Thomas Jefferson initiative for crop diversification.
Sec. 732. Support for research regarding diseases of wheat, triticale,
and barley caused by Fusarium Graminearum
or by Tilletia Indica.
Sec. 733. Office of Pest Management Policy.
Sec. 734. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from
agricultural commodities and forest
products.
Sec. 736. Biomass research and development.
Sec. 737. Agricultural experiment stations research facilities.
Sec. 738. Competitive, special, and facilities research grants national
research initiative.
Sec. 739. Federal agricultural research facilities authorization of
appropriations.
Sec. 740. Cotton classification services.
Sec. 740A. Critical agricultural materials research.
Sec. 740B. Private nonindustrial hardwood research program.
Subtitle B--Modifications
Sec. 741. Equity in Educational Land-Grant Status Act of 1994.
Sec. 742. National Agricultural Research, Extension, and Teaching
Policy Act of 1977.
Sec. 743. Agricultural Research, Extension, and Education Reform Act of
1998.
Sec. 744. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 745. National Agricultural Research, Extension, and Teaching
Policy Act of 1977.
Sec. 746. Biomass research and development.
Sec. 747. Biotechnology risk assessment research.
Sec. 748. Competitive, special, and facilities research grants.
Sec. 749. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 749A. Matching funds requirement for research and extension
activities for the United States
territories.
Sec. 750. Initiative for future agriculture and food systems.
Sec. 751. Carbon cycle research.
Sec. 752. Definition of food and agricultural sciences.
Sec. 753. Federal extension service.
Sec. 754. Policy research centers.
Subtitle C--Related Matters
Sec. 761. Resident instruction at land-grant colleges in United States
territories.
Sec. 762. Declaration of extraordinary emergency and resulting
authorities.
Sec. 763. Agricultural biotechnology research and development for the
developing world.
Subtitle D--Repeal of Certain Activities and Authorities
Sec. 771. Food Safety Research Information Office and National
Conference.
Sec. 772. Reimbursement of expenses under Sheep Promotion, Research,
and Information Act of 1994.
Sec. 773. National genetic resources program.
Sec. 774. National Advisory Board on Agricultural Weather.
Sec. 775. Agricultural information exchange with Ireland.
Sec. 776. Pesticide resistance study.
Sec. 777. Expansion of education study.
Sec. 778. Support for advisory board.
Sec. 779. Task force on 10-year strategic plan for agricultural
research facilities.
Subtitle E--Agriculture Facility Protection
Sec. 790. Additional protections for animal or agricultural
enterprises, research facilities, and other
entities.
TITLE VIII--FORESTRY INITIATIVES
Sec. 801. Repeal of forestry incentives program and Stewardship
Incentive Program.
Sec. 802. Establishment of Forest Land Enhancement Program.
Sec. 803. Renewable resources extension activities.
Sec. 804. Enhanced community fire protection.
Sec. 805. International forestry program.
Sec. 806. Wildfire prevention and hazardous fuel purchase program.
Sec. 807. McIntire-Stennis cooperative forestry research program.
TITLE IX--MISCELLANEOUS PROVISIONS
Subtitle A--Tree Assistance Program
Sec. 901. Eligibility.
Sec. 902. Assistance.
Sec. 903. Limitation on assistance.
Sec. 904. Definitions.
Subtitle B--Other Matters
Sec. 921. Bioenergy program.
Sec. 922. Availability of section 32 funds.
Sec. 923. Seniors farmers' market nutrition program.
Sec. 924. Department of Agriculture authorities regarding caneberries.
Sec. 925. National Appeals Division.
Sec. 926. Outreach and assistance for socially disadvantaged farmers
and ranchers.
Sec. 927. Equal treatment of potatoes and sweet potatoes.
Sec. 928. Reference to sea grass and sea oats as crops covered by
noninsured crop disaster assistance
program.
Sec. 929. Operation of Graduate School of Department of Agriculture.
Sec. 930. Assistance for livestock producers.
Sec. 931. Compliance with Buy American Act and sense of Congress
regarding purchase of American-made
equipment, products, and services using
funds provided under this Act.
Sec. 932. Report regarding genetically engineered foods.
Sec. 933. Market name for pangasius fish species.
Sec. 934. Program of public education regarding use of biotechnology in
producing food for human consumption.
Sec. 935. GAO study.
Sec. 936. Interagency Task Force on Agricultural Competition.
Sec. 937. Authorization for additional staff and funding for the Grain
Inspection, Packers and Stockyards
Administration.
Sec. 938. Enforcement of the humane methods of Slaughter Act of 1958.
Sec. 939. Penalties and foreign commerce provisions of the Animal
Welfare Act.
Sec. 940. Improve administration of Animal and Plant Health Inspection
Service.
Sec. 941. Renewable energy resources.
Sec. 942. Use of amounts provided for fixed, decoupled payments to
provide necessary funds for rural
development programs.
Sec. 943. Unlawful stockyard practices involving nonambulatory
livestock.
Sec. 944. Annual report on imports of beef and pork.
TITLE I--COMMODITY PROGRAMS
SEC. 100. DEFINITIONS.
In this title (other than chapter 3 of subtitle C):
(1) Agricultural act of 1949.--The term ``Agricultural Act
of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.), as in effect prior to the suspensions under section 171
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7301).
(2) Base acres.--The term ``base acres'', with respect to a
covered commodity on a farm, means the number of acres
established under section 103 with respect to the commodity
upon the election made by the producers on the farm under
subsection (a) of such section.
(3) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers under section 105.
(4) Covered commodity.--The term ``covered commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
rice, soybeans, and other oilseeds.
(5) Effective price.--The term ``effective price'', with
respect to a covered commodity for a crop year, means the price
calculated by the Secretary under section 105 to determine
whether counter-cyclical payments are required to be made for
that crop year.
(6) Eligible producer.--The term ``eligible producer''
means a producer described in section 101(a).
(7) Fixed, decoupled payment.--The term ``fixed, decoupled
payment'' means a payment made to producers under section 104.
(8) Other oilseed.--The term ``other oilseed'' means a crop
of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, or, if designated by the Secretary, another
oilseed.
(9) Payment acres.--The term ``payment acres'' means 85
percent of the base acres of a covered commodity on a farm, as
established under section 103, upon which fixed, decoupled
payments and counter-cyclical payments are to be made.
(10) Payment yield.--The term ``payment yield'' means the
yield established under section 102 for a farm for a covered
commodity.
(11) Producer.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper who shares in the
risk of producing a crop and who is entitled to share in the
crop available for marketing from the farm, or would have
shared had the crop been produced. In determining whether a
grower of hybrid seed is a producer, the Secretary shall not
take into consideration the existence of a hybrid seed contract
and shall ensure that program requirements do not adversely
affect the ability of the grower to receive a payment under
this title.
(12) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(13) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(14) Target price.--The term ``target price'' means the
price per bushel (or other appropriate unit in the case of
upland cotton, rice, and other oilseeds) of a covered commodity
used to determine the payment rate for counter-cyclical
payments.
(15) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments
SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.
(a) Payments Required.--Beginning with the 2002 crop of covered
commodities, the Secretary shall make fixed decoupled payments and
counter-cyclical payments under this subtitle--
(1) to producers on a farm that were parties to a
production flexibility contract under section 111 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7211) for fiscal year 2002; and
(2) to other producers on farms in the United States as
described in section 103(a).
(b) Tenants and Sharecroppers.--In carrying out this title, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(c) Sharing of Payments.--The Secretary shall provide for the
sharing of fixed, decoupled payments and counter-cyclical payments
among the eligible producers on a farm on a fair and equitable basis.
SEC. 102. ESTABLISHMENT OF PAYMENT YIELD.
(a) Establishment and Purpose.--For the purpose of making fixed
decoupled payments and counter-cyclical payments under this subtitle,
the Secretary shall provide for the establishment of a payment yield
for each farm for each covered commodity in accordance with this
section.
(b) Use of Farm Program Payment Yield.--Except as otherwise
provided in this section, the payment yield for each of the 2002
through 2011 crops of a covered commodity for a farm shall be the farm
program payment yield in effect for the 2002 crop of the covered
commodity under section 505 of the Agricultural Act of 1949 (7 U.S.C.
1465).
(c) Farms Without Farm Program Payment Yield.--In the case of a
farm for which a farm program payment yield is unavailable for a
covered commodity (other than soybeans or other oilseeds), the
Secretary shall establish an appropriate payment yield for the covered
commodity on the farm taking in consideration the farm program payment
yields applicable to the commodity under subsection (b) for similar
farms in the area.
(d) Payment Yields for Oilseeds.--
(1) Determination of average yield.--In the case of
soybeans and each other oilseed, the Secretary shall determine
the average yield for the oilseed on a farm for the 1998
through 2001 crop years, excluding any crop year in which the
acreage planted to the oilseed was zero. If, for any of these
four crop years in which the oilseed was planted, the farm
would have satisfied the eligibility criteria established to
carry out section 1102 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 1999 (Public Law 105-277; 7 U.S.C. 1421
note), the Secretary shall assign a yield for that year equal
to 65 percent of the county yield.
(2) Adjustment for payment yield.--The payment yield for a
farm for an oilseed shall be equal to the product of the
following:
(A) The average yield for the oilseed determined
under paragraph (1).
(B) The ratio resulting from dividing the national
average yield for the oilseed for the 1981 through 1985
crops by the national average yield for the oilseed for
the 1998 through 2001 crops.
SEC. 103. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A FARM.
(a) Election by Producers of Base Acre Calculation Method.--For the
purpose of making fixed decoupled payments and counter-cyclical
payments with respect to a farm, the Secretary shall give producers on
the farm an opportunity to elect one of the following as the method by
which the base acres of all covered commodities on the farm are to be
determined:
(1) The four-year average of acreage actually planted on
the farm to a covered commodity for harvest, grazing, haying,
silage, or other similar purposes during crop years 1998, 1999,
2000, and 2001 and any acreage on the farm that the producers
were prevented from planting during such crop years to the
covered commodity because of drought, flood, or other natural
disaster, or other condition beyond the control of the
producer, as determined by the Secretary.
(2) The sum of contract acreage (as defined in section 102
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7202)) used by the Secretary to calculate the fiscal
year 2002 payment that, subject to section 109, would be made
under section 114 of such Act (7 U.S.C. 7214) for the covered
commodity on the farm and the four-year average determined
under paragraph (1) for soybeans and each other oilseed
produced on the farm.
(b) Single Election; Time for Election.--The opportunity to make
the election described in subsection (a) shall be available to
producers on a farm only once. The producers shall notify the Secretary
of the election made by the producers under such subsection not later
than 180 days after the date of the enactment of this Act.
(c) Effect of Failure To Make Election.--If the producers on a farm
fail to make the election under subsection (a), or fail to timely
notify the Secretary of the selected option as required by subsection
(b), the producers shall be deemed to have made the election described
in subsection (a)(2) to determine base acres for all covered
commodities on the farm.
(d) Application of Election to All Covered Commodities.--The
election made under subsection (a) or deemed to be made under
subsection (c) with respect to a farm shall apply to all of the covered
commodities on the farm. Producers may not make the election described
in subsection (a)(1) for one covered commodity and the election
described in subsection (a)(2) for other covered commodities on the
farm.
(e) Treatment of Conservation Reserve Contract Acreage.--
(1) In general.--In the case of producers on a farm that
make the election described in subsection (a)(2), the Secretary
shall provide for an adjustment in the base acres for the farm
whenever either of the following circumstances occur:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary.
(2) Special payment rules.--For the fiscal year and crop
year in which a base acre adjustment under paragraph (1) is
first made, the producers on the farm shall elect to receive
either fixed decoupled payments and counter-cyclical payments
with respect to the acreage added to the farm under this
subsection or a prorated payment under the conservation reserve
contract, but not both.
(f) Payment Acres.--The payment acres for a covered commodity on a
farm shall be equal to 85 percent of the base acres for the commodity.
(g) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2),
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the quantity of base acres for one or more covered
commodities for the farm or peanut acres for the farm as
necessary so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual cropland
acreage of the farm. The Secretary shall give the producers on
the farm the opportunity to select the base acres or peanut
acres against which the reduction will be made.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any peanut acres for the farm under chapter 3
of subtitle C.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve
program under chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(3) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
SEC. 104. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS.
(a) Payment Required.--For each of the 2002 through 2011 crop years
of each covered commodity, the Secretary shall make fixed, decoupled
payments to eligible producers.
(b) Payment Rate.--The payment rates used to make fixed, decoupled
payments with respect to covered commodities for a crop year are as
follows:
(1) Wheat, $0.53 per bushel.
(2) Corn, $0.30 per bushel.
(3) Grain sorghum, $0.36 per bushel.
(4) Barley, $0.25 per bushel.
(5) Oats, $0.025 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.42 per bushel.
(9) Other oilseeds, $0.0074 per pound.
(c) Payment Amount.--The amount of the fixed, decoupled payment to
be paid to the eligible producers on a farm for a covered commodity for
a crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(d) Time for Payment.--
(1) General rule.--Fixed, decoupled payments shall be paid
not later than September 30 of each of fiscal years 2002
through 2011. In the case of the 2002 crop, payments may begin
to be made on or after December 1, 2001.
(2) Advance payments.--At the option of an eligible
producer, 50 percent of the fixed, decoupled payment for a
fiscal year shall be paid on a date selected by the producer.
The selected date shall be on or after December 1 of that
fiscal year, and the producer may change the selected date for
a subsequent fiscal year by providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer that
receives an advance fixed, decoupled payment for a fiscal year
ceases to be an eligible producer before the date the fixed,
decoupled payment would otherwise have been made by the
Secretary under paragraph (1), the producer shall be
responsible for repaying the Secretary the full amount of the
advance payment.
SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) Payment Required.--The Secretary shall make counter-cyclical
payments with respect to a covered commodity whenever the Secretary
determines that the effective price for the commodity is less than the
target price for the commodity.
(b) Effective Price.--For purposes of subsection (a), the effective
price for a covered commodity is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price received by
producers during the 12-month marketing year for the
commodity, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for the covered commodity in effect for
the same period under subtitle B.
(2) The payment rate in effect for the covered commodity
under section 104 for the purpose of making fixed, decoupled
payments with respect to the commodity.
(c) Target Price.--For purposes of subsection (a), the target
prices for covered commodities are as follows:
(1) Wheat, $4.04 per bushel.
(2) Corn, $2.78 per bushel.
(3) Grain sorghum, $2.64 per bushel.
(4) Barley, $2.39 per bushel.
(5) Oats, $1.47 per bushel.
(6) Upland cotton, $0.736 per pound.
(7) Rice, $10.82 per hundredweight.
(8) Soybeans, $5.86 per bushel.
(9) Other oilseeds, $0.1036 per pound.
(d) Payment Rate.--The payment rate used to make counter-cyclical
payments with respect to a covered commodity for a crop year shall be
equal to the difference between--
(1) the target price for the commodity; and
(2) the effective price determined under subsection (b) for
the commodity.
(e) Payment Amount.--The amount of the counter-cyclical payment to
be paid to the eligible producers on a farm for a covered commodity for
a crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(f) Time for Payments.--
(1) General rule.--The Secretary shall make counter-
cyclical payments under this section for a crop of a covered
commodity as soon as possible after determining under
subsection (a) that such payments are required for that crop
year.
(2) Partial payment.--The Secretary may permit, and, if so
permitted, an eligible producer may elect to receive, up to 40
percent of the projected counter-cyclical payment, as
determined by the Secretary, to be made under this section for
a crop of a covered commodity upon completion of the first six
months of the marketing year for that crop. The producer shall
repay to the Secretary the amount, if any, by which the partial
payment exceeds the actual counter-cyclical payment to be made
for that marketing year.
(g) Special Rule for Currently Undesignated Oilseed.--If the
Secretary uses the authority under section 100(8) to designate another
oilseed as an oilseed for which counter-cyclical payments may be made,
the Secretary may modify the target price specified in subsection
(c)(9) that would otherwise apply to that oilseed as the Secretary
considers appropriate.
(h) Special Rule for Barley Used Only for Feed Purposes.--For
purposes of calculating the effective price for barley under subsection
(b), the Secretary shall use the loan rate in effect for barley under
section 122(b)(3), except, in the case of producers who received the
higher loan rate provided under such section for barley used only for
feed purposes, the Secretary shall use that higher loan rate.
SEC. 106. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF
FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive fixed, decoupled payments or counter-cyclical payments
with respect to the farm, the producers shall agree, in
exchange for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of the Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 107; and
(D) to use the land on the farm, in an amount equal
to the base acres, for an agricultural or conserving
use, and not for a nonagricultural commercial or
industrial use, as determined by the Secretary.
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(b) Effect of Foreclosure.--A producer may not be required to make
repayments to the Secretary of fixed, decoupled payments and counter-
cyclical payments if the farm has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate to provide fair
and equitable treatment. This subsection shall not void the
responsibilities of the producer under subsection (a) if the producer
continues or resumes operation, or control, of the farm. On the
resumption of operation or control over the farm by the producer, the
requirements of subsection (a) in effect on the date of the foreclosure
shall apply.
(c) Transfer or Change of Interest in Farm.--
(1) Termination.--Except as provided in paragraph (4), a
transfer of (or change in) the interest of a producer in base
acres for which fixed, decoupled payments or counter-cyclical
payments are made shall result in the termination of the
payments with respect to the base acres, unless the transferee
or owner of the acreage agrees to assume all obligations under
subsection (a). The termination shall be effective on the date
of the transfer or change.
(2) Transfer of payment base.--There is no restriction on
the transfer of a farm's base acres or payment yield as part of
a change in the producers on the farm.
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of subsection
(a) if the modifications are consistent with the objectives of
such subsection, as determined by the Secretary.
(4) Exception.--If a producer entitled to a fixed,
decoupled payment or counter-cyclical payment dies, becomes
incompetent, or is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with
regulations prescribed by the Secretary.
(d) Acreage Reports.--
(1) In general.--As a condition on the receipt of any
benefits under this subtitle or subtitle B, the Secretary shall
require producers to submit to the Secretary acreage reports.
(2) Conforming Amendment.--Section 15 of the Agricultural
Marketing Act (12 U.S.C. 1141j) is amended by striking
subsection (d).
(e) Review.--A determination of the Secretary under this section
shall be considered to be an adverse decision for purposes of the
availability of administrative review of the determination.
SEC. 107. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on base acres on a farm.
(b) Limitations and Exceptions Regarding Certain Commodities.--
(1) Limitations.--The planting of the following
agricultural commodities shall be prohibited on base acres:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
(C) Wild rice.
(2) Exceptions.--Paragraph (1) shall not limit the planting
of an agricultural commodity specified in such paragraph--
(A) in any region in which there is a history of
double-cropping of covered commodities with
agricultural commodities specified in paragraph (1), as
determined by the Secretary, in which case the double-
cropping shall be permitted;
(B) on a farm that the Secretary determines has a
history of planting agricultural commodities specified
in paragraph (1) on base acres, except that fixed,
decoupled payments and counter-cyclical payments shall
be reduced by an acre for each acre planted to such an
agricultural commodity; or
(C) by a producer who the Secretary determines has
an established planting history of a specific
agricultural commodity specified in paragraph (1),
except that--
(i) the quantity planted may not exceed the
producer's average annual planting history of
such agricultural commodity in the 1991 through
1995 crop years (excluding any crop year in
which no plantings were made), as determined by
the Secretary; and
(ii) fixed, decoupled payments and counter-
cyclical payments shall be reduced by an acre
for each acre planted to such agricultural
commodity.
SEC. 108. RELATION TO REMAINING PAYMENT AUTHORITY UNDER PRODUCTION
FLEXIBILITY CONTRACTS.
(a) Termination of Superseded Payment Authority.--Notwithstanding
section 113(a)(7) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7213(a)(7)) or any other provision of law, the
Secretary shall not make payments for fiscal year 2002 after the date
of the enactment of this Act under production flexibility contracts
entered into under section 111 of such Act (7 U.S.C. 7211).
(b) Contract Payments Made Before Enactment.--If, on or before the
date of the enactment of this Act, a producer receives all or any
portion of the payment authorized for fiscal year 2002 under a
production flexibility contract, the Secretary shall reduce the amount
of the fixed, decoupled payment otherwise due the producer for that
same fiscal year by the amount of the fiscal year 2002 payment
previously received by the producer.
SEC. 109. PAYMENT LIMITATIONS.
Sections 1001 through 1001C of the Food Security Act of 1985 (7
U.S.C. 1308 through 1308-3) shall apply to fixed, decoupled payments
and counter-cyclical payments.
SEC. 110. PERIOD OF EFFECTIVENESS.
This subtitle shall be effective beginning with the 2002 crop year
of each covered commodity through the 2011 crop year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
SEC. 121. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
COVERED COMMODITIES.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2002 through 2011 crops
of each covered commodity, the Secretary shall make available
to producers on a farm nonrecourse marketing assistance loans
for covered commodities produced on the farm. The loans shall
be made under terms and conditions that are prescribed by the
Secretary and at the loan rate established under section 122
for the covered commodity.
(2) Inclusion of extra long staple cotton.--In this
subtitle, the term ``covered commodity'' includes extra long
staple cotton.
(b) Eligible Production.--Any production of a covered commodity on
a farm shall be eligible for a marketing assistance loan under
subsection (a).
(c) Treatment of Certain Commingled Commodities.--In carrying out
this subtitle, the Secretary shall make loans to a producer that is
otherwise eligible to obtain a marketing assistance loan, but for the
fact the covered commodity owned by the producer is commingled with
covered commodities of other producers in facilities unlicensed for the
storage of agricultural commodities by the Secretary or a State
licensing authority, if the producer obtaining the loan agrees to
immediately redeem the loan collateral in accordance with section 166
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7286).
(d) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under
subsection (a), the producer shall comply with applicable conservation
requirements under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821
et seq.) during the term of the loan.
(e) Definition of Extra Long Staple Cotton.--In this subtitle, the
term ``extra long staple cotton'' means cotton that--
(1) is produced from pure strain varieties of the
Barbadense species or any hybrid thereof, or other similar
types of extra long staple cotton, designated by the Secretary,
having characteristics needed for various end uses for which
United States upland cotton is not suitable and grown in
irrigated cotton-growing regions of the United States
designated by the Secretary or other areas designated by the
Secretary as suitable for the production of the varieties or
types; and
(2) is ginned on a roller-type gin or, if authorized by the
Secretary, ginned on another type gin for experimental
purposes.
(f) Termination of Superseded Loan Authority.--Notwithstanding
section 131 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7231), nonrecourse marketing assistance loans shall not
be made for the 2002 crop of covered commodities under subtitle C of
title I of such Act.
SEC. 122. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
(a) Wheat.--
(1) Loan rate.--Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 121 for wheat shall
be--
(A) not less than 85 percent of the simple average
price received by producers of wheat, as determined by
the Secretary, during the marketing years for the
immediately preceding five crops of wheat, excluding
the year in which the average price was the highest and
the year in which the average price was the lowest in
the period; but
(B) not more than $2.58 per bushel.
(2) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of wheat to total use for the marketing year will be--
(A) equal to or greater than 30 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 10
percent in any year;
(B) less than 30 percent but not less than 15
percent, the Secretary may reduce the loan rate for
wheat for the corresponding crop by an amount not to
exceed 5 percent in any year; or
(C) less than 15 percent, the Secretary may not
reduce the loan rate for wheat for the corresponding
crop.
(b) Feed Grains.--
(1) Loan rate for corn and grain sorghum.--Subject to
paragraph (2), the loan rate for a marketing assistance loan
under section 121 for corn and grain sorghum shall be--
(A) not less than 85 percent of the simple average
price received by producers of corn or grain sorghum,
respectively, as determined by the Secretary, during
the marketing years for the immediately preceding five
crops of the covered commodity, excluding the year in
which the average price was the highest and the year in
which the average price was the lowest in the period;
but
(B) not more than $1.89 per bushel.
(2) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of corn or grain sorghum to total use for the marketing
year will be--
(A) equal to or greater than 25 percent, the
Secretary may reduce the loan rate for the covered
commodity for the corresponding crop by an amount not
to exceed 10 percent in any year;
(B) less than 25 percent but not less than 12.5
percent, the Secretary may reduce the loan rate for the
covered commodity for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(C) less than 12.5 percent, the Secretary may not
reduce the loan rate for the covered commodity for the
corresponding crop.
(3) Other feed grains.--The loan rate for a marketing
assistance loan under section 121 for barley and oats shall
be--
(A) established at such level as the Secretary
determines is fair and reasonable in relation to the
rate that loans are made available for corn, taking
into consideration the feeding value of the commodity
in relation to corn; but
(B) not more than--
(i) $1.65 per bushel for barley, except not
more than $1.70 per bushel for barley used only
for feed purposes, as determined by the
Secretary; and
(ii) $1.21 per bushel for oats.
(c) Upland Cotton.--
(1) Loan rate.--Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 121 for upland cotton
shall be established by the Secretary at such loan rate, per
pound, as will reflect for the base quality of upland cotton,
as determined by the Secretary, at average locations in the
United States a rate that is not less than the smaller of--
(A) 85 percent of the average price (weighted by
market and month) of the base quality of cotton as
quoted in the designated United States spot markets
during 3 years of the 5-year period ending July 31 of
the year preceding the year in which the crop is
planted, excluding the year in which the average price
was the highest and the year in which the average price
was the lowest in the period; or
(B) 90 percent of the average, for the 15-week
period beginning July 1 of the year preceding the year
in which the crop is planted, of the five lowest-priced
growths of the growths quoted for Middling 1\3/32\-inch
cotton C.I.F. Northern Europe (adjusted downward by the
average difference during the period April 15 through
October 15 of the year preceding the year in which the
crop is planted between the average Northern European
price quotation of such quality of cotton and the
market quotations in the designated United States spot
markets for the base quality of upland cotton), as
determined by the Secretary.
(2) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound
or more than $0.5192 per pound.
(d) Extra Long Staple Cotton.--The loan rate for a marketing
assistance loan under section 121 for extra long staple cotton shall be
$0.7965 per pound.
(e) Rice.--The loan rate for a marketing assistance loan under
section 121 for rice shall be $6.50 per hundredweight.
(f) Oilseeds.--
(1) Soybeans.--The loan rate for a marketing assistance
loan under section 121 for soybeans shall be--
(A) not less than 85 percent of the simple average
price received by producers of soybeans, as determined
by the Secretary, during the marketing years for the
immediately preceding five crops of soybeans, excluding
the year in which the average price was the highest and
the year in which the average price was the lowest in
the period; but
(B) not more than $4.92 per bushel.
(2) Other oilseeds.--The loan rate for a marketing
assistance loan under section 121 for other oilseeds shall be--
(A) not less than 85 percent of the simple average
price received by producers of the other oilseed, as
determined by the Secretary, during the marketing years
for the immediately preceding five crops of the other
oilseed, excluding the year in which the average price
was the highest and the year in which the average price
was the lowest in the period; but
(B) not more than $0.087 per pound.
SEC. 123. TERM OF LOANS.
(a) Term of Loan.--In the case of each covered commodity (other
than upland cotton or extra long staple cotton), a marketing assistance
loan under section 121 shall have a term of nine months beginning on
the first day of the first month after the month in which the loan is
made.
(b) Special Rule for Cotton.--A marketing assistance loan for
upland cotton or extra long staple cotton shall have a term of 10
months beginning on the first day of the month in which the loan is
made.
(c) Extensions Prohibited.--The Secretary may not extend the term
of a marketing assistance loan for any covered commodity.
SEC. 124. REPAYMENT OF LOANS.
(a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The
Secretary shall permit a producer to repay a marketing assistance loan
under section 121 for wheat, corn, grain sorghum, barley, oats, and
oilseeds at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 122, plus interest (as determined by the Secretary); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity; and
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
(b) Repayment Rates for Upland Cotton and Rice.--The Secretary
shall permit producers to repay a marketing assistance loan under
section 121 for upland cotton and rice at a rate that is the lesser
of--
(1) the loan rate established for the commodity under
section 122, plus interest (as determined by the Secretary); or
(2) the prevailing world market price for the commodity
(adjusted to United States quality and location), as determined
by the Secretary.
(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 122, plus
interest (as determined by the Secretary).
(d) Prevailing World Market Price.--For purposes of this section
and section 127, the Secretary shall prescribe by regulation--
(1) a formula to determine the prevailing world market
price for each covered commodity, adjusted to United States
quality and location; and
(2) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each covered
commodity.
(e) Adjustment of Prevailing World Market Price for Upland
Cotton.--
(1) In general.--During the period beginning on the date of
the enactment of this Act and ending July 31, 2012, the
prevailing world market price for upland cotton (adjusted to
United States quality and location) established under
subsection (d) shall be further adjusted if--
(A) the adjusted prevailing world market price is
less than 115 percent of the loan rate for upland
cotton established under section 122, as determined by
the Secretary; and
(B) the Friday through Thursday average price
quotation for the lowest-priced United States growth as
quoted for Middling (M) 1\3/32\-inch cotton delivered
C.I.F. Northern Europe is greater than the Friday
through Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for Middling (M)
1\3/32\-inch cotton, delivered C.I.F. Northern Europe
(referred to in this section as the ``Northern Europe
price'').
(2) Further adjustment.--Except as provided in paragraph
(3), the adjusted prevailing world market price for upland
cotton shall be further adjusted on the basis of some or all of
the following data, as available:
(A) The United States share of world exports.
(B) The current level of cotton export sales and
cotton export shipments.
(C) Other data determined by the Secretary to be
relevant in establishing an accurate prevailing world
market price for upland cotton (adjusted to United
States quality and location).
(3) Limitation on further adjustment.--The adjustment under
paragraph (2) may not exceed the difference between--
(A) the Friday through Thursday average price for
the lowest-priced United States growth as quoted for
Middling 1\3/32\-inch cotton delivered C.I.F. Northern
Europe; and
(B) the Northern Europe price.
(f) Time for Fixing Repayment Rate.--In the case of a producer that
marketed or otherwise lost beneficial interest in a covered commodity
before repaying the marketing assistance loan made under section 121
with respect to the commodity, the Secretary shall permit the producer
to repay the loan at the lowest repayment rate that was in effect for
that covered commodity under this section as of the date that the
producer lost beneficial interest, as determined by the Secretary.
SEC. 125. LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--Except as provided
in subsection (d), the Secretary may make loan deficiency payments
available to producers who, although eligible to obtain a marketing
assistance loan under section 121 with respect to a covered commodity,
agree to forgo obtaining the loan for the commodity in return for
payments under this section.
(b) Computation.--A loan deficiency payment under this section
shall be computed by multiplying--
(1) the loan payment rate determined under subsection (c)
for the covered commodity; by
(2) the quantity of the covered commodity produced by the
eligible producers, excluding any quantity for which the
producers obtain a loan under section 121.
(c) Loan Payment Rate.--For purposes of this section, the loan
payment rate shall be the amount by which--
(1) the loan rate established under section 122 for the
covered commodity; exceeds
(2) the rate at which a loan for the commodity may be
repaid under section 124.
(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
(e) Time for Payment.--The Secretary shall make a payment under
this section to a producer with respect to a quantity of a covered
commodity as of the earlier of the following:
(1) The date on which the producer marketed or otherwise
lost beneficial interest in the commodity, as determined by the
Secretary.
(2) The date the producer requests the payment.
(f) Continuation of Special LDP Rule for 2001 Crop Year.--Section
135(a)(2) of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7235(a)(2)) is amended by striking ``2000 crop year'' and
inserting ``2000 and 2001 crop years''.
SEC. 126. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
(a) Eligible Producers.--Effective for the 2002 through 2011 crop
years, in the case of a producer that would be eligible for a loan
deficiency payment under section 125 for wheat, barley, or oats, but
that elects to use acreage planted to the wheat, barley, or oats for
the grazing of livestock, the Secretary shall make a payment to the
producer under this section if the producer enters into an agreement
with the Secretary to forgo any other harvesting of the wheat, barley,
or oats on that acreage.
(b) Payment Amount.--The amount of a payment made to a producer on
a farm under this section shall be equal to the amount determined by
multiplying--
(1) the loan deficiency payment rate determined under
section 125(c) in effect, as of the date of the agreement, for
the county in which the farm is located; by
(2) the payment quantity determined by multiplying--
(A) the quantity of the grazed acreage on the farm
with respect to which the producer elects to forgo
harvesting of wheat, barley, or oats; and
(B) the payment yield for that covered commodity on
the farm.
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 125.
(2) Availability.--The Secretary shall establish an
availability period for the payment authorized by this section
that is consistent with the availability period for wheat,
barley, and oats established by the Secretary for marketing
assistance loans authorized by this subtitle.
(d) Prohibition on Crop Insurance or Noninsured Crop Assistance.--A
2002 through 2011 crop of wheat, barley, or oats planted on acreage
that a producer elects, in the agreement required by subsection (a), to
use for the grazing of livestock in lieu of any other harvesting of the
crop shall not be eligible for insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance
under section 196 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333).
SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.
(a) Cotton User Marketing Certificates.--
(1) Issuance.--During the period beginning on the date of
the enactment of this Act and ending July 31, 2012, the
Secretary shall issue marketing certificates or cash payments,
at the option of the recipient, to domestic users and exporters
for documented purchases by domestic users and sales for export
by exporters made in the week following a consecutive four-week
period in which--
(A) the Friday through Thursday average price
quotation for the lowest-priced United States growth,
as quoted for Middling (M) 1\3/32\-inch cotton,
delivered C.I.F. Northern Europe exceeds the Northern
Europe price; and
(B) the prevailing world market price for upland
cotton (adjusted to United States quality and location)
does not exceed 134 percent of the loan rate for upland
cotton established under section 122.
(2) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference in the prices during the fourth week
of the consecutive four-week period multiplied by the quantity
of upland cotton included in the documented sales.
(3) Administration of marketing certificates.--
(A) Redemption, marketing, or exchange.--The
Secretary shall establish procedures for redeeming
marketing certificates for cash or marketing or
exchange of the certificates for agricultural
commodities owned by the Commodity Credit Corporation
or pledged to the Commodity Credit Corporation as
collateral for a loan in such manner, and at such price
levels, as the Secretary determines will best
effectuate the purposes of cotton user marketing
certificates, including enhancing the competitiveness
and marketability of United States cotton. Any price
restrictions that would otherwise apply to the
disposition of agricultural commodities by the
Commodity Credit Corporation shall not apply to the
redemption of certificates under this subsection.
(B) Designation of commodities and products.--To
the extent practicable, the Secretary shall permit
owners of certificates to designate the commodities and
products, including storage sites, the owners would
prefer to receive in exchange for certificates.
(C) Transfers.--Marketing certificates issued to
domestic users and exporters of upland cotton may be
transferred to other persons in accordance with
regulations issued by the Secretary.
(b) Special Import Quota.--
(1) Establishment.--
(A) In general.--The President shall carry out an
import quota program during the period beginning on the
date of the enactment of this Act and ending July 31,
2012, as provided in this subsection.
(B) Program requirements.--Except as provided in
subparagraph (C), whenever the Secretary determines and
announces that for any consecutive four-week period,
the Friday through Thursday average price quotation for
the lowest-priced United States growth, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe,
adjusted for the value of any certificate issued under subsection (a),
exceeds the Northern Europe price there shall immediately be in effect
a special import quota.
(C) Tight domestic supply.--During any month for
which the Secretary estimates the season-ending United
States upland cotton stocks-to-use ratio, as determined
under subparagraph (D), to be below 16 percent, the
Secretary, in making the determination under
subparagraph (B), shall not adjust the Friday through
Thursday average price quotation for the lowest-priced
United States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern Europe, for
the value of any certificates issued under subsection
(a).
(D) Season-ending united states stocks-to-use
ratio.--For the purposes of making estimates under
subparagraph (C), the Secretary shall, on a monthly
basis, estimate and report the season-ending United
States upland cotton stocks-to-use ratio, excluding
projected raw cotton imports but including the quantity
of raw cotton that has been imported into the United
States during the marketing year.
(2) Quantity.--The quota shall be equal to one week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent three
months for which data are available.
(3) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under paragraph (1) and entered into
the United States not later than 180 days after the date.
(4) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
paragraph (1), except that a special quota period may not be
established under this subsection if a quota period has been
established under subsection (c).
(5) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(6) Definition.--In this subsection, the term ``special
import quota'' means a quantity of imports that is not subject
to the over-quota tariff rate of a tariff-rate quota.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special
import quota established under this subsection may not exceed
the equivalent of five week's consumption of upland cotton by
domestic mills at the seasonally adjusted average rate of the
three months immediately preceding the first special import
quota established in any marketing year.
(c) Limited Global Import Quota for Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent of
the average price of such quality of cotton in the markets for
the preceding 36 months, notwithstanding any other provision of
law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent three months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to increase
the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means,
using the latest official data of the Bureau of
the Census, the Department of Agriculture, and
the Department of the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current
crop; and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill
consumption during the most recent
three months for which data are
available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding six marketing years;
or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The
term ``limited global import quota'' means a
quantity of imports that is not subject to the
over-quota tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is
established under this subsection, cotton may be
entered under the quota during the 90-day period
beginning on the date the quota is established by the
Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(b).
SEC. 128. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other provision
of law, during the period beginning on the date of the enactment of
this Act and ending on July 31, 2012, the Secretary shall carry out a
program to maintain and expand the domestic use of extra long staple
cotton produced in the United States, to increase exports of extra long
staple cotton produced in the United States, and to ensure that extra
long staple cotton produced in the United States remains competitive in
world markets.
(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive four-week period, the world market
price for the lowest priced competing growth of extra long
staple cotton (adjusted to United States quality and location
and for other factors affecting the competitiveness of such
cotton), as determined by the Secretary, is below the
prevailing United States price for a competing growth of extra
long staple cotton; and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States who enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive four-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive four-week period.
(e) Form of Payment.--Payments under this section shall be made
through the issuance of cash or marketing certificates, at the option
of eligible recipients of the payments.
SEC. 129. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS
AND SEED COTTON AND OTHER FIBERS.
(a) High Moisture Feed Grains.--
(1) Recourse loans available.--For each of the 2002 through
2011 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the Secretary, to
producers on a farm who--
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an
inspected, certified commercial scale,
including a licensed warehouse, feedlot, feed
mill, distillery, or other similar entity
approved by the Secretary, pursuant to
regulations issued by the Secretary; or
(ii) field or other physical measurements
of the standing or stored crop in regions of
the United States, as determined by the
Secretary, that do not have certified
commercial scales from which certified scale
tickets may be obtained within reasonable
proximity of harvest operation;
(C) certify that they were the owners of the feed
grain at the time of delivery to, and that the quantity
to be placed under loan under this subsection was in
fact harvested on the farm and delivered to, a feedlot,
feed mill, or commercial or on-farm high-moisture
storage facility, or to a facility maintained by the
users of corn and grain sorghum in a high moisture
state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(2) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm;
by
(B) the lower of the farm program payment yield or
the actual yield on a field, as determined by the
Secretary, that is similar to the field from which the
corn or grain sorghum was obtained.
(3) High moisture state defined.--In this subsection, the
term ``high moisture state'' means corn or grain sorghum having
a moisture content in excess of Commodity Credit Corporation
standards for marketing assistance loans made by the Secretary
under section 121.
(b) Recourse Loans Available for Seed Cotton.--For each of the 2002
through 2011 crops of upland cotton and extra long staple cotton, the
Secretary shall make available recourse seed cotton loans, as
determined by the Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (as determined by the Secretary).
(d) Termination of Superseded Loan Authority.--Notwithstanding
section 137 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7237), recourse loans shall not be made for the 2002
crop of corn, grain sorghum, and seed cotton under such section.
SEC. 130. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
WOOL AND MOHAIR.
(a) Nonrecourse Loans Available.--During the 2002 through 2011
marketing years for wool and mohair, the Secretary shall make available
to producers on a farm nonrecourse marketing assistance loans for wool
and mohair produced on the farm during that marketing year.
(b) Loan Rate.--The loan rate for a loan under subsection (a) shall
be not more than--
(1) $1.00 per pound for graded wool;
(2) $0.40 per pound for nongraded wool; and
(3) $4.20 per pound for mohair.
(c) Term of Loan.--A loan under subsection (a) shall have a term of
1 year beginning on the first day of the first month after the month in
which the loan is made.
(d) Repayment Rates.--The Secretary shall permit a producer to
repay a marketing assistance loan under subsection (a) for wool or
mohair at a rate that is the lesser of--
(1) the loan rate established for the commodity under
subsection (b), plus interest (as determined by the Secretary);
or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity; and
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to producers that, although eligible to
obtain a marketing assistance loan under this section, agree
to forgo obtaining the loan in return for payments under this
subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate in effect under paragraph
(3) for the commodity; by
(B) the quantity of the commodity produced by the
eligible producers, excluding any quantity for which
the producers obtain a loan under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate for wool or mohair shall be the amount by
which--
(A) the loan rate in effect for the commodity under
subsection (b); exceeds
(B) the rate at which a loan for the commodity may
be repaid under subsection (d).
(4) Time for payment.--The Secretary shall make a payment
under this subsection to a producer with respect to a quantity
of a wool or mohair as of the earlier of the following:
(A) The date on which the producer marketed or
otherwise lost beneficial interest in the wool or
mohair, as determined by the Secretary.
(B) The date the producer requests the payment.
(f) Limitations.--The marketing assistance loan gains and loan
deficiency payments that a person may receive for wool and mohair under
this section shall be subject to a separate payment limitation, but in
the same dollar amount, as the payment limitation that applies to
marketing assistance loans and loan deficiency payments received by
producers of other agricultural commodities in the same marketing year.
SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
HONEY.
(a) Nonrecourse Loans Available.--During the 2002 through 2011 crop
years for honey, the Secretary shall make available to producers on a
farm nonrecourse marketing assistance loans for honey produced on the
farm during that crop year.
(b) Loan Rate.--The loan rate for a marketing assistance loan for
honey under subsection (a) shall be equal to $0.60 cents per pound.
(c) Term of Loan.--A marketing assistance loan under subsection (a)
shall have a term of 1 year beginning on the first day of the first
month after the month in which the loan is made.
(d) Repayment Rates.--The Secretary shall permit a producer to
repay a marketing assistance loan for honey under subsection (a) at a
rate that is the lesser of--
(1) the loan rate for honey, plus interest (as determined
by the Secretary); or
(2) the prevailing domestic market price for honey, as
determined by the Secretary.
(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to any producer of honey that, although
eligible to obtain a marketing assistance loan under subsection
(a), agrees to forgo obtaining the loan in return for a payment
under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be determined by multiplying--
(A) the loan payment rate determined under
paragraph (3); by
(B) the quantity of honey that the producer is
eligible to place under loan, but for which the
producer forgoes obtaining the loan in return for a
payment under this subsection.
(3) Loan payment rate.--For the purposes of this
subsection, the loan payment rate shall be the amount by
which--
(A) the loan rate established under subsection (b);
exceeds
(B) the rate at which a loan may be repaid under
subsection (d).
(4) Time for payment.--The Secretary shall make a payment
under this subsection to a producer with respect to a quantity
of a honey as of the earlier of the following:
(A) The date on which the producer marketed or
otherwise lost beneficial interest in the honey, as
determined by the Secretary.
(B) The date the producer requests the payment.
(f) Limitations.--The marketing assistance loan gains and loan
deficiency payments that a person may receive for a crop of honey under
this section shall be subject to a separate payment limitation, but in
the same dollar amount, as the payment limitation that applies to
marketing assistance loans and loan deficiency payments received by
producers of other agricultural commodities in the same crop year.
(g) Prevention of Forfeitures.--The Secretary shall carry out this
section in such a manner as to minimize forfeitures of honey marketing
assistance loans.
SEC. 132. PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN DEFICIENCY
PAYMENTS AND MARKETING LOAN GAINS.
Notwithstanding any other provision of law, the Secretary of
Agriculture and the Commodity Credit Corporation shall not require
producers in Erie County, Pennsylvania, to repay loan deficiency
payments and marketing loan gains erroneously paid or determined to
have been earned by the Commodity Credit Corporation for certain 1998
and 1999 crops under subtitle C of title I of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7231 et seq.). In the case
of a producer who has already made the repayment on or before the date
of the enactment of this Act, the Commodity Credit Corporation shall
reimburse the producer for the full amount of the repayment.
Subtitle C--Other Commodities
CHAPTER 1--DAIRY
SEC. 141. MILK PRICE SUPPORT PROGRAM.
(a) Support Activities.--During the period beginning on January 1,
2002, and ending on December 31, 2011, the Secretary of Agriculture
shall support the price of milk produced in the 48 contiguous States
through the purchase of cheese, butter, and nonfat dry milk produced
from the milk.
(b) Rate.--During the period specified in subsection (a), the price
of milk shall be supported at a rate equal to $9.90 per hundredweight
for milk containing 3.67 percent butterfat.
(c) Purchase Prices.--The support purchase prices under this
section for each of the products of milk (butter, cheese, and nonfat
dry milk) announced by the Secretary shall be the same for all of that
product sold by persons offering to sell the product to the Secretary.
The purchase prices shall be sufficient to enable plants of average
efficiency to pay producers, on average, a price that is not less than
the rate of price support for milk in effect under subsection (b).
(d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
(1) Allocation of purchase prices.--The Secretary may
allocate the rate of price support between the purchase prices
for nonfat dry milk and butter in a manner that will result in
the lowest level of expenditures by the Commodity Credit
Corporation or achieve such other objectives as the Secretary
considers appropriate. Not later than 10 days after making or
changing an allocation, the Secretary shall notify the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate of the allocation. Section 553 of title 5, United States
Code, shall not apply with respect to the implementation of
this section.
(2) Timing of purchase price adjustments.--The Secretary
may make any such adjustments in the purchase prices for nonfat
dry milk and butter the Secretary considers to be necessary not
more than twice in each calendar year.
(e) Commodity Credit Corporation.--The Secretary shall carry out
the program authorized by this section through the Commodity Credit
Corporation.
SEC. 142. REPEAL OF RECOURSE LOAN PROGRAM FOR PROCESSORS.
Section 142 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7252) is repealed.
SEC. 143. EXTENSION OF DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY
PROGRAMS.
(a) Dairy Export Incentive Program.--Section 153(a) of the Food
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking
``2002'' and inserting ``2011''.
(b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7
U.S.C. 450l) is amended by striking ``1995'' and inserting ``2011''.
SEC. 144. FLUID MILK PROMOTION.
(a) Definition of Fluid Milk Product.--Section 1999C of the Fluid
Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking
paragraph (3) and inserting the following new paragraph:
``(3) Fluid milk product.--The term `fluid milk product'
has the meaning given such term--
``(A) in section 1000.15 of title 7, Code of
Federal Regulations, subject to such amendments as may
be made from time to time; or
``(B) in any successor regulation providing a
definition of such term that is promulgated pursuant to
the Agricultural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937.''.
(b) Definition of Fluid Milk Processor.--Section 1999C(4) of the
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by
striking ``500,000'' and inserting ``3,000,000''.
(c) Elimination of Order Termination Date.--Section 1999O of the
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--
(1) by striking subsection (a); and
(2) by redesignating subsections (b) and (c) as subsections
(a) and (b), respectively.
SEC. 145. DAIRY PRODUCT MANDATORY REPORTING.
Section 273(b)(1)(B) of the Agricultural Marketing Act of 1946 (7
U.S.C. 1637b(b)(1)(B)) is amended--
(1) by inserting ``and substantially identical products
designated by the Secretary'' after ``dairy products'' the
first place it appears; and
(2) by inserting ``and such substantially identical
products'' after ``dairy products'' the second place it
appears.
SEC. 146. STUDY OF NATIONAL DAIRY POLICY.
(a) Study Required.--Not later than April 30, 2002, the Secretary
of Agriculture shall submit to Congress a comprehensive economic
evaluation of the potential direct and indirect effects of the various
elements of the national dairy policy, including an examination of the
effect of the national dairy policy on--
(1) farm price stability, farm profitability and viability,
and local rural economies in the United States;
(2) child, senior, and low-income nutrition programs,
including impacts on schools and institutions participating in
the programs, on program recipients, and other factors; and
(3) the wholesale and retail cost of fluid milk, dairy
farms, and milk utilization.
(b) National Dairy Policy Defined.--In this section, the term
``national dairy policy'' means the dairy policy of the United States
as evidenced by the following policies and programs:
(1) Federal Milk Marketing Orders.
(2) Interstate dairy compacts (including proposed compacts
described in H.R. 1827 and S. 1157, as introduced in the 107th
Congress).
(3) Over-order premiums and State pricing programs.
(4) Direct payments to milk producers.
(5) Federal milk price support program.
(6) Export programs regarding milk and dairy products, such
as the Dairy Export Incentive Program.
CHAPTER 2--SUGAR
SEC. 151. SUGAR PROGRAM.
(a) Continuation of Program.--Subsection (i) of section 156 of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7251)
is amended--
(1) by striking ``(other than subsection (f))''; and
(2) by striking ``2002 crops'' and inserting ``2011
crops''.
(b) Termination of Marketing Assessment and Forfeiture Penalty.--
Effective as of October 1, 2001, subsections (f) and (g) of such
section are repealed.
(c) Loan Rate Adjustments.--Subsection (c) of such section is
amended--
(1) by striking ``Reduction in Loan Rates'' and inserting
``Loan Rate Adjustments''; and
(2) in paragraph (1)--
(A) by striking ``Reduction required'' and
inserting ``Possible reduction''; and
(B) by striking ``shall'' and inserting ``may''.
(d) Notification.--Subsection (e) of such section is amended by
adding at the end the following new paragraph:
``(3) Prevention of onerous notification requirements.--The
Secretary may not impose or enforce any prenotification or
similar administrative requirement that has the effect of
preventing a processor from choosing to forfeit the loan
collateral upon the maturity of the loan.''.
(e) In Process Sugar.--Such section is further amended by inserting
after subsection (e) the following new subsection (f):
``(f) Loans for In-Process Sugar.--
``(1) Availability; rate.--The Secretary shall make
nonrecourse loans available to processors of domestically grown
sugarcane and sugar beets for in-process sugars and syrups
derived from such crops. The loan rate shall be equal to 80
percent of the loan rate applicable to raw cane sugar or
refined beet sugar, depending on the source material for the
in-process sugars and syrups.
``(2) Further processing upon forfeiture.--As a condition
on the forfeiture of in-process sugars and syrups serving as
collateral for a loan under paragraph (1), the processor shall,
within such reasonable time period as the Secretary may
prescribe and at no cost to the Commodity Credit Corporation,
convert the in-process sugars and syrups into raw cane sugar or
refined beet sugar of acceptable grade and quality for sugars
eligible for loans under subsection (a) or (b). Once the in-
process sugars and syrups are fully processed into raw cane
sugar or refined beet sugar, the processor shall transfer the
sugar to the Corporation, which shall make a payment to the
processor in an amount equal to the difference between the loan
rate for raw cane sugar or refined beet sugar, whichever
applies, and the loan rate the processor received under
paragraph (1).
``(3) Loan conversion.--If the processor does not forfeit
the collateral as described in paragraph (2), but instead
further processes the in-process sugars and syrups into raw
cane sugar or refined beet sugar and repays the loan on the in-
process sugars and syrups, the processor may then obtain a loan under
subsection (a) or (b) on the raw cane sugar or refined beet sugar, as
appropriate.
``(4) Definition.--In this subsection the term `in-process
sugars and syrups' does not include raw sugar, liquid sugar,
invert sugar, invert syrup, or other finished products that are
otherwise eligible for loans under subsection (a) or (b).''.
(f) Administration of Program.--Such section is further amended by
adding at the end the following new subsection:
``(j) Avoiding Forfeitures; Corporation Inventory Disposition.--
``(1) No cost.--To the maximum extent practicable, the
Secretary shall operate the sugar program established under
this section at no cost to the Federal Government by avoiding
the forfeiture of sugar to the Commodity Credit Corporation.
``(2) Inventory disposition.--In support of the objective
specified in paragraph (1), the Commodity Credit Corporation
may accept bids for commodities in the inventory of the
Corporation from (or otherwise make available such commodities,
on appropriate terms and conditions, to) processors of
sugarcane and processors of sugar beets (when the processors
are acting in conjunction with the producers of the sugarcane
or sugar beets processed by such processors) in return for the
reduction of production of raw cane sugar or refined beet
sugar, as appropriate. The authority provided under this
paragraph is in addition to any authority of the Corporation
under any other law.''.
(g) Information Reporting.--Subsection (h) of such section is
amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(4) and (5), respectively;
(2) by inserting after paragraph (1) the following new
paragraphs:
``(2) Duty of producers to report.--
``(A) Proportionate share states.--The Secretary
shall require a producer of sugarcane located in a
State (other than Puerto Rico) in which there are in
excess of 250 sugarcane producers to report, in the
manner prescribed by the Secretary, the producer's
sugarcane yields and acres planted to sugarcane.
``(B) Other states.--The Secretary may require
producers of sugarcane or sugar beets not covered by
paragraph (1) to report, in the manner prescribed by
the Secretary, each producer's sugarcane or sugar beet
yields and acres planted to sugarcane or sugar beets,
respectively.
``(3) Duty of importers to report.--The Secretary shall
require an importer of sugars, syrups or molasses to be used
for human consumption or to be used for the extraction of sugar
for human consumption, except such sugars, syrups, or molasses
that are within the quantities of tariff-rate quotas that are
at the lower rate of duties, to report, in the manner
prescribed by the Secretary, the quantities of such products
imported and the sugar content or equivalent of such
products.''; and
(3) in paragraph (5), as so redesignated, by striking
``paragraph (1)'' and inserting ``this subsection''.
(h) Interest Rate.--Section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended by adding
at the end the following new sentence: ``For purposes of this section,
raw cane sugar, refined beet sugar, and in process sugar eligible for a
loan under section 156 shall not be considered an agricultural
commodity.''.
SEC. 152. REAUTHORIZE PROVISIONS OF AGRICULTURAL ADJUSTMENT ACT OF 1938
REGARDING SUGAR.
(a) Information Reporting.--Section 359a of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359aa) is repealed.
(b) Estimates.--Section 359b of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359bb) is amended:
(1) in the section heading--
(A) by inserting ``flexible'' before ``marketing'';
and
(B) by striking ``and crystalline fructose'';
(2) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``Before'' and inserting
``Not later than August 1 before'';
(ii) by striking ``1992 through 1998'' and
inserting ``2002 through 2011'';
(iii) in subparagraph (A), by striking
``(other than sugar'' and all that follows
through ``stocks'';
(iv) by redesignating subparagraphs (B) and
(C) as subparagraphs (C) and (E), respectively;
(v) by inserting after subparagraph (A) the
following:
``(B) the quantity of sugar that would provide for
reasonable carryover stocks;'';
(vi) in subparagraph (C), as so
redesignated--
(I) by striking ``or'' and all that
follows through ``beets''; and
(II) by striking the ``and''
following the semicolon;
(vii) by inserting after subparagraph (C),
as so redesignated, the following:
``(D) the quantity of sugar that will be available
from the domestic processing of sugarcane and sugar
beets; and''; and
(viii) in subparagraph (E), as so
redesignated--
(I) by striking ``quantity of
sugar'' and inserting ``quantity of
sugars, syrups, and molasses'';
(II) by inserting ``human'' after
``imported for'' the first place it
appears;
(III) by inserting after
``consumption'' the first place it
appears the following: ``or to be used
for the extraction of sugar for human consumption'';
(IV) by striking ``year'' and
inserting ``year, whether such articles
are under a tariff-rate quota or are in
excess or outside of a tariff rate
quota''; and
(V) by striking ``(other than
sugar'' and all that follows through
``carry-in stocks'';
(B) by redesignating paragraph (2) as paragraph
(3);
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) Exclusion.--The estimates in this section shall not
include sugar imported for the production of polyhydric alcohol
or to be refined and re-exported in refined form or in sugar
containing products.'';
(D) in paragraph (3), as so redesignated--
(i) by striking ``Quarterly reestimates''
and inserting ``Reestimates''; and
(ii) by inserting ``as necessary, but''
after ``a fiscal year'';
(3) in subsection (b)--
(A) by striking paragraph (1) and inserting the
following new paragraph:
``(1) In general.--By the beginning of each fiscal year,
the Secretary shall establish for that fiscal year appropriate
allotments under section 359c for the marketing by processors
of sugar processed from sugar beets and from domestically-
produced sugarcane at a level that the Secretary estimates will
result in no forfeitures of sugar to the Commodity Credit
Corporation under the loan program for sugar.''; and
(B) in paragraph (2), by striking ``or crystalline
fructose'';
(4) by striking subsection (c);
(5) by redesignating subsection (d) as subsection (c); and
(6) in subsection (c), as so redesignated--
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(C) in paragraph (2), as so redesignated--
(i) by striking ``or manufacturer'' and all
that follows through ``(2)''; and
(ii) by striking ``or crystalline
fructose''.
(c) Establishment.--Section 359c of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359cc) is amended--
(1) in the section heading by inserting ``flexible'' after
``of'';
(2) in subsection (a), by inserting ``flexible'' after
``establish'';
(3) in subsection (b)--
(A) in paragraph (1)(A), by striking ``1,250,000''
and inserting ``1,532,000''; and
(B) in paragraph (2), by striking ``to the maximum
extent practicable'';
(4) by striking subsection (c) and inserting the following
new subsection:
``(c) Marketing Allotment for Sugar Derived From Sugar Beets and
Marketing Allotment for Sugar Derived From Sugarcane.--The overall
allotment quantity for the fiscal year shall be allotted among--
``(1) sugar derived from sugar beets by establishing a
marketing allotment for a fiscal year at a quantity equal to
the product of multiplying the overall allotment quantity for
the fiscal year by the percentage of 54.35; and
``(2) sugar derived from sugarcane by establishing a
marketing allotment for a fiscal year at a quantity equal to
the product of multiplying the overall allotment quantity for
the fiscal year by the percentage of 45.65.'';
(5) by amending subsection (d) to read as follows:
``(d) Filling Cane Sugar and Beet Sugar Allotments.--Each marketing
allotment for cane sugar established under this section may only be
filled with sugar processed from domestically grown sugarcane, and each
marketing allotment for beet sugar established under this section may
only be filled with sugar domestically processed from sugar beets.'';
(6) by striking subsection (e);
(7) by redesignating subsection (f) as subsection (e);
(8) in subsection (e), as so redesignated--
(A) by inserting ``(1) In general.--'' before ``The
allotment for sugar'' and indenting such paragraph
appropriately;
(B) in such paragraph (1)--
(i) by striking ``the 5'' and inserting
``the'';
(ii) by inserting after ``sugarcane is
produced,'' the following: ``after a hearing,
if requested by the affected sugar cane
processors and growers, and on such notice as
the Secretary by regulation may prescribe,'';
(iii) by striking ``on the basis of past
marketings'' and all that follows through
``allotments'', and inserting ``as provided in
this subsection and section
359d(a)(2)(A)(iv)''; and
(C) by inserting after paragraph (1) the following
new paragraphs:
``(2) Offshore allotment.--
``(A) Collectively.--Prior to the allotment of
sugar derived from sugarcane to any other State,
325,000 short tons, raw value shall be allotted to the
offshore States.
``(B) Individually.--The collective offshore State
allotment provided for under subparagraph (A) shall be
further allotted among the offshore States in which
sugarcane is produced, after a hearing if requested by
the affected sugar cane processors and growers, and on
such notice as the Secretary by regulation may
prescribe, in a fair and equitable manner on the basis
of--
``(i) past marketings of sugar, based on
the average of the 2 highest years of
production of raw cane sugar from the 1996
through 2000 crops;
``(ii) the ability of processors to market
the sugar covered under the allotments for the
crop year; and
``(iii) past processings of sugar from
sugarcane based on the 3 year average of the
crop years 1998 through 2000.
``(3) Mainland allotment.--The allotment for sugar derived
from sugarcane, less the amount provided for under paragraph
(2), shall be allotted among the mainland States in the United
States in which sugarcane is produced, after a hearing if
requested by the affected sugar cane processors and growers,
and on such notice as the Secretary by regulation may
prescribe, in a fair and equitable manner on the basis of--
``(A) past marketings of sugar, based on the
average of the 2 highest years of production of raw
cane sugar from the 1996 through 2000 crops;
``(B) the ability of processors to market the sugar
covered under the allotments for the crop year; and
``(C) past processings of sugar from sugarcane,
based on the 3 crop years with the greatest processings
(in the mainland States collectively) during the 1991
through 2000 crop years.'';
(9) by inserting after subsection (e), as so redesignated,
the following new subsection (f):
``(f) Filling Cane Sugar Allotments.--Except as otherwise provided
in section 359e, a State cane sugar allotment established under
subsection (e) for a fiscal year may be filled only with sugar
processed from sugarcane grown in the State covered by the
allotment.'';
(10) in subsection (g)--
(A) in paragraph (1), by striking ``359b(a)(2)--''
and all that follows through the comma at the end of
subparagraph (C) and inserting ``359b(a)(3), adjust
upward or downward marketing allotments in a fair and
equitable manner'';
(B) in paragraph (2) by striking ``359f(b)'' and
inserting ``359f(c)''; and
(C) in paragraph (3)--
(i) by striking ``Reductions'' and
inserting ``Carry-over of reductions'';
(ii) by inserting after ``this subsection,
if'' the following: ``at the time of the
reduction'';
(iii) by striking ``price support'' and
inserting ``nonrecourse'';
(iv) by striking ``206'' and all that
follows through ``the allotment'' and inserting
``156 of the Agricultural Market Transition Act
(7 U.S.C. 7272),''; and
(v) by striking ``, if any,''; and
(11) by amending subsection (h) to read as follows:
``(h) Suspension of Allotments.--Whenever the Secretary estimates,
or reestimates, under section 359b(a), or has reason to believe that
imports of sugars, syrups or molasses for human consumption or to be
used for the extraction of sugar for human consumption, whether under a
tariff-rate quota or in excess or outside of a tariff-rate quota, will
exceed 1.532 million short tons, raw value equivalent, and that such
imports would lead to a reduction of the overall allotment quantity,
the Secretary shall suspend the marketing allotments until such time as
such imports have been restricted, eliminated, or otherwise reduced to
or below the level of 1.532 million tons.''.
(d) Allocation.--Section 359d of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359dd) is amended--
(1) in subsection (a)(2)(A)--
(A) by inserting ``(i) In general.--'' before ``The
Secretary shall'' and indenting such clause
appropriately;
(B) in clause (i), as so designated--
(i) by striking ``interested parties'' and
inserting ``the affected sugar cane processors
and growers'';
(ii) by striking ``by taking'' and all that
follows through ``allotment allocated.'' and
inserting ``with this subparagraph.''; and
(iii) by inserting at the end the following
new sentence: ``Each such allocation shall be
subject to adjustment under section 359c(g).'';
(C) by inserting after clause (i) the following new
clauses:
``(ii) Multiple processor states.--Except
as provided in clause (iii), the Secretary
shall allocate the allotment for cane sugar
among multiple cane sugar processors in a
single State based upon--
``(I) past marketings of sugar,
based on the average of the 2 highest
years of production of raw cane sugar
from among the 1996 through 2000 crops;
``(II) the ability of processors to
market sugar covered by that portion of
the allotment allocated for the crop
year;
``(III) past processings of sugar
from sugarcane, based on the average of
the 3 highest years from among crop
years 1996 through 2000; and
``(IV) however, only with respect
to allotments under subclauses (I),
(II), and (III) attributable to the
former operations of the Talisman
processing facility, shall be allocated
among processors in the State
coincident with the provisions of the
agreements of March 25 and March 26,
1999, between the affected processors
and the Department of the Interior.
``(iii) Proportionate share states.--In the
case of States subject to section 359f(c), the
Secretary shall allocate the allotment for cane
sugar among multiple cane sugar processors in a
single state based upon--
``(I) past marketings of sugar,
based on the average of the two highest
years of production of raw cane sugar
from among the 1997 through 2001 crop
years;
``(II) the ability of processors to
market sugar covered by that portion of
the allotments allocated for the crop
year; and
``(III) past processings of sugar
from sugarcane, based on the average of
the two highest crop years from the
five crop years 1997 through 2001.
``(iv) New entrants.--Notwithstanding
clauses (ii) and (iii), the Secretary, on
application of any processor that begins
processing sugarcane on or after the date of
enactment of this clause, and after a hearing
if requested by the affected sugarcane
processors and growers, and on such notice as
the Secretary by regulation may prescribe, may
provide such processor with an allocation which
provides a fair, efficient and equitable
distribution of the allocations from the
allotment for the State in which the processor
is located and, in the case of proportionate
share States, shall establish proportionate
shares in an amount sufficient to produce the
sugarcane required to satisfy such allocations.
However, the allotment for a new processor
under this clause shall not exceed 50,000 short
tons, raw value.
``(v) Transfer of ownership.--Except as
otherwise provided in section 359f(c)(8), in
the event that a sugarcane processor is sold or
otherwise transferred to another owner, or
closed as part of an affiliated corporate group
processing consolidation, the Secretary shall
transfer the allotment allocation for the
processor to the purchaser, new owner, or successor in interest, as
applicable, of the processor.''; and
(2) in subsection (a)(2)(B)--
(A) by striking ``interested parties'' and
inserting ``the affected sugar beet processors and
growers''; and
(B) by striking ``processing capacity'' and all
that follows through ``allotment allocated'' and
inserting the following: ``the marketings of sugar
processed from sugar beets of any or all of the 1996
through 2000 crops, and such other factors as the
Secretary may deem appropriate after consultation with
the affected sugar beet processors and growers.
However, in the case of any processor which has started
processing sugar beets after January 1, 1996, the
Secretary shall provide such processor with an
allocation which provides a fair, efficient and
equitable distribution of the allocations''.
(e) Reassignment.--Section 359e(b) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B) by striking the ``and''
after the semicolon;
(B) by redesignating subparagraph (C) as
subparagraph (D);
(C) by inserting after subparagraph (B) the
following new subparagraph:
``(C) if after the reassignments, the deficit
cannot be completely eliminated, the Secretary shall
reassign the estimated quantity of the deficit to the
sale of any inventories of sugar held by the Commodity
Credit Corporation; and''; and
(D) in subparagraph (D), as so redesignated, by
inserting ``and sales'' after ``reassignments''; and
(2) in paragraph (2)--
(A) in subparagraph (A) by striking the ``and''
after the semicolon;
(B) in subparagraph (B), by striking ``reassign the
remainder to imports.'' and inserting ``use the
estimated quantity of the deficit for the sale of any
inventories of sugar held by the Commodity Credit
Corporation; and''; and
(C) by inserting after subparagraph (B) the
following new subparagraph:
``(C) if after such reassignments and sales, the
deficit cannot be completely eliminated, the Secretary
shall reassign the remainder to imports.''.
(f) Producer Provisions.--Section 359f of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
(1) in subsection (a)--
(A) by striking ``processor's allocation'' in the
second sentence and inserting ``allocation to the
processor''; and
(B) by inserting after ``request of either party''
the following: ``, and such arbitration should be
completed within 45 days, but not more than 60 days, of
the request'';
(2) by redesignating subsection (b) as subsection (c);
(3) by inserting after subsection (a) the following new
subsection:
``(b) Sugar Beet Processing Facility Closures.-- In the event that
a sugar beet processing facility is closed and the sugar beet growers
who previously delivered beets to such facility desire to deliver their
beets to another processing company:
``(1) Such growers may petition the Secretary to modify
existing allocations to accommodate such a transition; and
``(2) The Secretary may increase the allocation to the
processing company to which the growers desire to deliver their
sugar beets, and which the processing company agrees to accept,
not to exceed its processing capacity, to accommodate the
change in deliveries.
``(3) Such increased allocation shall be deducted from the
allocation to the company that owned the processing facility
that has been closed and the remaining allocation will be
unaffected.
``(4) The Secretary's determination on the issues raised by
the petition shall be made within 60 days of the filing of the
petition.'';
(4) in subsection (c), as so redesignated--
(A) in paragraph (3)(A), by striking ``the
preceding five years'' and inserting ``the two highest
years from among the years 1999, 2000, and 2001'';
(B) in paragraph (4)(A), by striking ``each'' and
all that follows through ``in effect'' and inserting
``the two highest of the three (3) crop years 1999,
2000, and 2001''; and
(C) by inserting after paragraph (7) the following
new paragraph:
``(8) Processing facility closures.--In the event that a
sugarcane processing facility subject to this subsection is
closed and the sugarcane growers who previously delivered
sugarcane to such facility desire to deliver their sugarcane to
another processing company--
``(A) such growers may petition the Secretary to
modify existing allocations to accommodate such a
transition;
``(B) the Secretary may increase the allocation to
the processing company to which the growers desire to
deliver the sugarcane, and which the processing company
agrees to accept, not to exceed its processing
capacity, to accommodate the change in deliveries;
``(C) such increased allocation shall be deducted
from the allocation to the company that owned the
processing facility that has been closed and the
remaining allocation will be unaffected; and
``(D) the Secretary's determination on the issues
raised by the petition shall be made within 60 days of
the filing of the petition.''.
(g) Conforming Amendments.--(1) The heading of part VII of subtitle
B of Title III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
359aa et seq.) is amended to read as follows:
``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR''.
(2) Section 359g of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359gg) is amended--
(A) by striking ``359f'' each place it appears and
inserting ``359f(c)'';
(B) in subsection (b), by striking ``3 consecutive'' and
inserting ``5 consecutive''; and
(C) in subsection (c), by inserting ``or adjusted'' after
``share established''.
(3) Section 359j(c) of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359jj) is amended--
(A) by amending the subsection heading to read as follows:
``Definitions.--'';
(B) by striking ``Notwithstanding'' and inserting the
following:
``(1) United states and state.--Notwithstanding''; and
(C) by inserting after such paragraph (1) the following new
paragraph:
``(2) Offshore states.--For purposes of this part, the term
`offshore States' means the sugarcane producing States located
outside of the continental United States.''.
(h) Lifting of Suspension.--Section 171(a)(1)(E) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)(E))
is amended by inserting before the period at the end the following: ``,
but only with respect to sugar marketings through fiscal year 2002''.
SEC. 153. STORAGE FACILITY LOANS.
(a) Storage Facility Loan Program.--Notwithstanding any other
provision of law and as soon as practicable after the date of the
enactment of this section, the Commodity Credit Corporation shall amend
part 1436 of title 7, Code of Federal Regulations, to establish a sugar
storage facility loan program to provide financing for processors of
domestically-produced sugarcane and sugar beets to build or upgrade
storage and handling facilities for raw sugars and refined sugars.
(b) Eligible Processors.--Storage facility loans shall be made
available to any processor of domestically produced sugarcane or sugar
beets that has a satisfactory credit history, determines a need for
increased storage capacity (taking into account the effects of
marketing allotments), and demonstrates an ability to repay the loan.
(c) Term of Loans.--Storage facility loans shall be for a minimum
of seven years, and shall be in such amounts and on such terms and
conditions (including down payment, security requirements, and eligible
equipment) as are normal, customary, and appropriate for the size and
commercial nature of the borrower.
(d) Administration.--The sugar storage facility loan program shall
be administered using the services, facilities, funds, and authorities
of the Commodity Credit Corporation.
CHAPTER 3--PEANUTS
SEC. 161. DEFINITIONS.
In this chapter:
(1) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to peanut producers under
section 164.
(2) Effective price.--The term ``effective price'' means
the price calculated by the Secretary under section 164 for
peanuts to determine whether counter-cyclical payments are
required to be made under such section for a crop year.
(3) Historic peanut producer.--The term ``historic peanut
producer'' means a peanut producer on a farm in the United
States that produced or attempted to produce peanuts during any
or all of crop years 1998, 1999, 2000, and 2001.
(4) Fixed, decoupled payment.--The term ``fixed, decoupled
payment'' means a payment made to peanut producers under
section 163.
(5) Payment acres.--The term ``payment acres'' means 85
percent of the peanut acres on a farm, as established under
section 162, upon which fixed, decoupled payments and counter-
cyclical payments are to be made.
(6) Peanut acres.--The term ``peanut acres'' means the
number of acres assigned to a particular farm by historic
peanut producers pursuant to section 162(b).
(7) Payment yield.--The term ``payment yield'' means the
yield assigned to a particular farm by historic peanut
producers pursuant to section 162(b).
(8) Peanut producer.--The term ``peanut producer'' means an
owner, operator, landlord, tenant, or sharecropper who shares
in the risk of producing a crop of peanuts in the United States
and who is entitled to share in the crop available for
marketing from the farm, or would have shared had the crop been
produced.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(10) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(11) Target price.--The term ``target price'' means the
price per ton of peanuts used to determine the payment rate for
counter-cyclical payments.
(12) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 162. ESTABLISHMENT OF PAYMENT YIELD, PEANUT ACRES, AND PAYMENT
ACRES FOR A FARM.
(a) Establishment of Payment Yield and Payment Acres.--
(1) Determination of average yield.--The Secretary shall
determine, for each historic peanut producer, the average yield
for peanuts on each farm on which the historic peanut producer
produced peanuts for the 1998 through 2001 crop years,
excluding any crop year in which the producer did not produce
peanuts. If, for any of these four crop years in which peanuts
were planted on a farm by the producer, the farm would have satisfied
the eligibility criteria established to carry out section 1102 of the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public
Law 105-277), the Secretary shall assign a yield for the producer for
that year equal to 65 percent of the county yield, as determined by the
Secretary.
(2) Determination of acreage average.--
(A) In general.--Except as provided in subparagraph
(B), the Secretary shall determine, for each historic
peanut producer, the four-year average of acreage
actually planted in peanuts by the historic peanut
producer for harvest on one or more farms during crop
years 1998, 1999, 2000, and 2001 and any acreage that
the producer was prevented from planting to peanuts
during such crop years because of drought, flood, or
other natural disaster, or other condition beyond the
control of the producer, as determined by the
Secretary. If more than one historic peanut producer
shared in the risk of producing the crop on the farm,
the historic peanut producers shall receive their
proportional share of the number of acres planted (or
prevented from being planted) to peanuts for harvest on
the farm based on the sharing arrangement that was in
effect among the producers for the crop.
(B) Selection by producer.--If a county in which a
historic peanut producer described in subparagraph (A)
is located is declared a disaster area during 1 or more
of the 4 crop years described in that subparagraph, for
purposes of determining the 4-year average acreage for
the historic peanut producer, the historic peanut
producer may elect to substitute, for not more than 1
of the crop years during which a disaster is declared--
(i) the State average of acreage actually
planted in peanuts; for
(ii) the average of acreage for the
historic peanut producer determined by the
Secretary under subparagraph (A).
(3) Time for determinations; considerations.--The Secretary
shall make the determinations required by this subsection not
later than 90 days after the date of the enactment of this Act.
In making such determinations, the Secretary shall take into
account changes in the number and identity of persons sharing
in the risk of producing a peanut crop since the 1998 crop
year, including providing a method for the assignment of
average acres and average yield to a farm when the historic
peanut producer is no longer living or an entity composed of
historic peanut producers has been dissolved.
(b) Assignment of Payment Yield and Peanut Acres to Farms.--
(1) Assignment by historic peanut producers.--The Secretary
shall give each historic peanut producer an opportunity to
assign the average peanut yield and average acreage determined
under subsection (a) for the producer to cropland on a farm.
(2) Payment yield.--The average of all of the yields
assigned by historic peanut producers to a farm shall be deemed
to be the payment yield for that farm for the purpose of making
fixed decoupled payments and counter-cyclical payments under
this chapter.
(3) Peanut acres.--Subject to subsection (e), the total
number of acres assigned by historic peanut producers to a farm
shall be deemed to be the peanut acres for a farm for the
purpose of making fixed decoupled payments and counter-cyclical
payments under this chapter.
(c) Time for Assignment.--The opportunity to make the assignments
described in subsection (b) shall be available to historic peanut
producers only once. The historic peanut producers shall notify the
Secretary of the assignments made by such producers under such
subsections not later than 180 days after the date of the enactment of
this Act.
(d) Payment Acres.--The payment acres for peanuts on a farm shall
be equal to 85 percent of the peanut acres assigned to the farm.
(e) Prevention of Excess Peanut Acres.--
(1) Required reduction.--If the sum of the peanut acres for
a farm, together with the acreage described in paragraph (2),
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the quantity of peanut acres for the farm or base
acres for one or more covered commodities for the farm as
necessary so that the sum of the peanut acres and acreage
described in paragraph (2) does not exceed the actual cropland
acreage of the farm. The Secretary shall give the peanut
producers on the farm the opportunity to select the peanut
acres or base acres against which the reduction will be made.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm under subtitle A.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve
program under chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(3) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
SEC. 163. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS FOR PEANUTS.
(a) Payment Required.--For each of the 2002 through 2011 crop
years, the Secretary shall make fixed, decoupled payments to peanut
producers on a farm.
(b) Payment Rate.--The payment rate used to make fixed, decoupled
payments with respect to peanuts for a crop year shall be equal to
$0.018 per pound.
(c) Payment Amount.--The amount of the fixed, decoupled payment to
be paid to the peanut producers on a farm for a covered commodity for a
crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(d) Time for Payment.--
(1) General rule.--Fixed, decoupled payments shall be paid
not later than September 30 of each of fiscal years 2002
through 2011. In the case of the 2002 crop, payments may begin
to be made on or after December 1, 2001.
(2) Advance payments.--At the option of a peanut producer,
50 percent of the fixed, decoupled payment for a fiscal year
shall be paid on a date selected by the peanut producer. The
selected date shall be on or after December 1 of that fiscal
year, and the peanut producer may change the selected date for
a subsequent fiscal year by providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a peanut producer
that receives an advance fixed, decoupled payment for a fiscal
year ceases to be a peanut producer before the date the fixed,
decoupled payment would otherwise have been made by the
Secretary under paragraph (1), the peanut producer shall be
responsible for repaying the Secretary the full amount of the
advance payment.
SEC. 164. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.
(a) Payment Required.--During the 2002 through 2011 crop years for
peanuts, the Secretary shall make counter-cyclical payments with
respect to peanuts whenever the Secretary determines that the effective
price for peanuts is less than the target price.
(b) Effective Price.--For purposes of subsection (a), the effective
price for peanuts is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price received by
peanut producers during the 12-month marketing year for
peanuts, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for peanuts in effect for the same
period under this chapter.
(2) The payment rate in effect under section 163 for the
purpose of making fixed, decoupled payments.
(c) Target Price.--For purposes of subsection (a), the target price
for peanuts shall be equal to $520 per ton.
(d) Payment Rate.--The payment rate used to make counter-cyclical
payments for a crop year shall be equal to the difference between--
(1) the target price; and
(2) the effective price determined under subsection (b).
(e) Payment Amount.--The amount of the counter-cyclical payment to
be paid to the peanut producers on a farm for a crop year shall be
equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(f) Time for Payments.--
(1) General rule.--The Secretary shall make counter-
cyclical payments under this section for a peanut crop as soon
as possible after determining under subsection (a) that such
payments are required for that crop year.
(2) Partial payment.--The Secretary may permit, and, if so
permitted, a peanut producer may elect to receive, up to 40
percent of the projected counter-cyclical payment, as
determined by the Secretary, to be made under this section for
a peanut crop upon completion of the first six months of the
marketing year for that crop. The peanut producer shall repay
to the Secretary the amount, if any, by which the partial
payment exceeds the actual counter-cyclical payment to be made
for that crop.
SEC. 165. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF
FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the peanut producers on a farm
may receive fixed, decoupled payments or counter-cyclical
payments with respect to the farm, the peanut producers shall
agree, in exchange for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of the Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 166; and
(D) to use the land on the farm, in an amount equal
to the peanut acres, for an agricultural or conserving
use, and not for a nonagricultural commercial or
industrial use, as determined by the Secretary.
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure peanut producer
compliance with the requirements of paragraph (1).
(b) Effect of Foreclosure.--A peanut producer may not be required
to make repayments to the Secretary of fixed, decoupled payments and
counter-cyclical payments if the farm has been foreclosed on and the
Secretary determines that forgiving the repayments is appropriate to
provide fair and equitable treatment. This subsection shall not void
the responsibilities of the peanut producer under subsection (a) if the
peanut producer continues or resumes operation, or control, of the
farm. On the resumption of operation or control over the farm by the
producer, the requirements of subsection (a) in effect on the date of
the foreclosure shall apply.
(c) Transfer or Change of Interest in Farm.--
(1) Termination.--Except as provided in paragraph (4), a
transfer of (or change in) the interest of a peanut producer in
peanut acres for which fixed, decoupled payments or counter-
cyclical payments are made shall result in the termination of
the payments with respect to the peanut acres, unless the
transferee or owner of the acreage agrees to assume all
obligations under subsection (a). The termination shall be
effective on the date of the transfer or change.
(2) Transfer of payment base.--There is no restriction on
the transfer of a farm's peanut acres or payment yield as part
of a change in the peanut producers on the farm.
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of subsection
(a) if the modifications are consistent with the objectives of
such subsection, as determined by the Secretary.
(4) Exception.--If a peanut producer entitled to a fixed,
decoupled payment or counter-cyclical payment dies, becomes
incompetent, or is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with regulations
prescribed by the Secretary.
(d) Acreage Reports.--As a condition on the receipt of any benefits
under this chapter, the Secretary shall require peanut producers to
submit to the Secretary acreage reports.
(e) Tenants and Sharecroppers.--In carrying out this chapter, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(f) Sharing of Payments.--The Secretary shall provide for the
sharing of fixed, decoupled payments and counter-cyclical payments
among the peanut producers on a farm on a fair and equitable basis.
SEC. 166. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on peanut acres on a farm.
(b) Limitations and Exceptions Regarding Certain Commodities.--
(1) Limitations.--The planting of the following
agricultural commodities shall be prohibited on peanut acres:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
(C) Wild rice.
(2) Exceptions.--Paragraph (1) shall not limit the planting
of an agricultural commodity specified in such paragraph--
(A) in any region in which there is a history of
double-cropping of peanuts with agricultural
commodities specified in paragraph (1), as determined
by the Secretary, in which case the double-cropping
shall be permitted;
(B) on a farm that the Secretary determines has a
history of planting agricultural commodities specified
in paragraph (1) on peanut acres, except that fixed,
decoupled payments and counter-cyclical payments shall
be reduced by an acre for each acre planted to such an
agricultural commodity; or
(C) by a peanut producer who the Secretary
determines has an established planting history of a
specific agricultural commodity specified in paragraph
(1), except that--
(i) the quantity planted may not exceed the
peanut producer's average annual planting
history of such agricultural commodity in the
1991 through 1995 crop years (excluding any
crop year in which no plantings were made), as
determined by the Secretary; and
(ii) fixed, decoupled payments and counter-
cyclical payments shall be reduced by an acre
for each acre planted to such agricultural
commodity.
SEC. 167. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR
PEANUTS.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2002 through 2011 crops
of peanuts, the Secretary shall make available to peanut
producers on a farm nonrecourse marketing assistance loans for
peanuts produced on the farm. The loans shall be made under
terms and conditions that are prescribed by the Secretary and
at the loan rate established under subsection (b).
(2) Eligible production.--Any production of peanuts on a
farm shall be eligible for a marketing assistance loan under
this subsection.
(3) Treatment of certain commingled commodities.--In
carrying out this subsection, the Secretary shall make loans to
a peanut producer that is otherwise eligible to obtain a
marketing assistance loan, but for the fact the peanuts owned
by the peanut producer are commingled with other peanuts in
facilities unlicensed for the storage of agricultural
commodities by the Secretary or a State licensing authority, if
the peanut producer obtaining the loan agrees to immediately
redeem the loan collateral in accordance with section 166 of
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7286).
(4) Options for obtaining loan.--A marketing assistance
loan under this subsection, and loan deficiency payments under
subsection (e), may be obtained at the option of the peanut
producer through--
(A) a designated marketing association of peanut
producers that is approved by the Secretary;
(B) the Farm Service Agency; or
(C) a loan servicing agent approved by the
Secretary.
(b) Loan Rate.--The loan rate for a marketing assistance loan under
for peanuts subsection (a) shall be equal to $400 per ton.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for peanuts
under subsection (a) shall have a term of nine months beginning
on the first day of the first month after the month in which
the loan is made.
(2) Extensions prohibited.--The Secretary may not extend
the term of a marketing assistance loan under subsection (a).
(d) Repayment Rate.--The Secretary shall permit peanut producers to
repay a marketing assistance loan for peanuts under subsection (a) at a
rate that is the lesser of--
(1) the loan rate established for the commodity under
subsection (b), plus interest (as determined by the Secretary);
or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of peanuts
by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing peanuts; and
(D) allow peanuts produced in the United States to
be marketed freely and competitively, both domestically
and internationally.
(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to peanut producers who, although eligible
to obtain a marketing assistance loan for peanuts under
subsection (a), agree to forgo obtaining the loan for the
peanuts in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under
paragraph (3) for peanuts; by
(B) the quantity of the peanuts produced by the
peanut producers, excluding any quantity for which the
producers obtain a loan under subsection (a).
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b);
exceeds
(B) the rate at which a loan may be repaid under
subsection (d).
(4) Time for payment.--The Secretary shall make a payment
under this subsection to a peanut producer with respect to a
quantity of peanuts as of the earlier of the following:
(A) The date on which the peanut producer marketed
or otherwise lost beneficial interest in the peanuts,
as determined by the Secretary.
(B) The date the peanut producer requests the
payment.
(f) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under
subsection (a), the peanut producer shall comply with applicable
conservation requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland
protection requirements under subtitle C of title XII of the Act (16
U.S.C. 3821 et seq.) during the term of the loan.
(g) Reimbursable Agreements and Payment of Expenses.--To the extent
practicable, the Secretary shall implement any reimbursable agreements
or provide for the payment of expenses under this chapter in a manner
that is consistent with such activities in regard to other commodities.
(h) Termination of Superseded Price Support Authority.--
(1) Repeal.--Section 155 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7271) is repealed.
(2) Conforming amendments.--The Agricultural Act of 1949 (7
U.S.C. 1441 et seq.) is amended--
(A) in section 101(b) (7 U.S.C. 1441(b)), by
striking ``and peanuts''; and
(B) in section 408(c) (7 U.S.C. 1428(c)), by
striking ``peanuts,''.
SEC. 168. QUALITY IMPROVEMENT.
(a) Official Inspection.--
(1) Mandatory inspection.--All peanuts placed under a
marketing assistance loan under section 167 shall be officially
inspected and graded by Federal or State inspectors.
(2) Optional inspection.--Peanuts not placed under a
marketing assistance loan may be graded at the option of the
peanut producer.
(b) Termination of Peanut Administrative Committee.--The Peanut
Administrative Committee established under Marketing Agreement No.
1436, which regulates the quality of domestically produced peanuts
under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted
with amendments by the Agricultural Marketing Agreement Act of 1937, is
terminated.
(c) Establishment of Peanut Standards Board.--The Secretary shall
establish a Peanut Standards Board for the purpose of assisting in the
establishment of quality standards with respect to peanuts. The
authority of the Board is limited to assisting in the establishment of
quality standards for peanuts. The members of the Board should fairly
reflect all regions and segments of the peanut industry.
(d) Effective Date.--This section shall take effect with the 2002
crop of peanuts.
SEC. 169. PAYMENT LIMITATIONS.
For purposes of sections 1001 through 1001C of the Food Security
Act of 1985 (7 U.S.C. 1308 through 1308-3), separate payment
limitations shall apply to peanuts with respect to--
(1) fixed, decoupled payments;
(2) counter-cyclical payments, and
(3) limitations on marketing loan gains and loan deficiency
payments.
SEC. 170. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS AND
COMPENSATION TO PEANUT QUOTA HOLDERS FOR LOSS OF QUOTA
ASSET VALUE.
(a) Repeal of Marketing Quota.--
(1) Repeal.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a),
relating to peanuts, is repealed.
(2) Treatment of 2001 crop.--Part VI of subtitle B of title
III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-
1359a), as in effect on the day before the date of the
enactment of this Act, shall continue to apply with respect to
the 2001 crop of peanuts notwithstanding the amendment made by
paragraph (1).
(b) Compensation Contract Required.--The Secretary shall offer to
enter into a contract with eligible peanut quota holders for the
purpose of providing compensation for the lost value of the quota on
account of the repeal of the marketing quota program for peanuts under
subsection (a). Under the contracts, the Secretary shall make payments
to eligible peanut quota holders during fiscal years 2002 through 2006.
(c) Time for Payment.--The payments required under the contracts
shall be provided in five equal installments not later than September
30 of each of fiscal years 2002 through 2006.
(d) Payment Amount.--The amount of the payment for a fiscal year to
a peanut quota holder under a contract shall be equal to the product
obtained by multiplying--
(1) $0.12 per pound; by
(2) the actual farm poundage quota (excluding seed and
experimental peanuts) established for the peanut quota holder's
farm under section 358-1(b) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1358-1(b)) for the 2001 marketing year.
(e) Assignment of Payments.--The provisions of section 8(g) of the
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)),
relating to assignment of payments, shall apply to the payments made to
peanut quota holders under the contracts. The peanut quota holder
making the assignment, or the assignee, shall provide the Secretary
with notice, in such manner as the Secretary may require, of any
assignment made under this subsection.
(f) Peanut Quota Holder Defined.--In this section, the term
``peanut quota holder'' means a person or enterprise that owns a farm
that--
(1) was eligible, immediately before the date of the
enactment of this Act, to have a peanut quota established upon
it;
(2) if there are not quotas currently established, would be
eligible to have a quota established upon it for the succeeding
crop year, in the absence of the amendment made by subsection
(a); or
(3) is otherwise a farm that was eligible for such a quota
at the time the general quota establishment authority was
repealed.
The Secretary shall apply this definition without regard to temporary
leases or transfers or quotas for seed or experimental purposes.
Subtitle D--Administration
SEC. 181. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--The Secretary shall carry
out this title through the Commodity Credit Corporation.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(c) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary and the Commodity Credit
Corporation, as appropriate, shall issue such regulations as are
necessary to implement this title. The issuance of the regulations
shall be made without regard to--
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804) relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly
know as the ``Paperwork Reduction Act'').
(d) Protection of Producers.--The protection afforded producers
that elect the option to accelerate the receipt of any payment under a
production flexibility contract payable under the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7212 note) shall also
apply to the advance payment of fixed, decoupled payments and counter-
cyclical payments.
(e) Adjustment Authority Related to Uruguay Round Compliance.--If
the Secretary determines that expenditures under subtitles A, B, and C
that are subject to the total allowable domestic support levels under
the Uruguay Round Agreements (as defined in section 2(7) of the Uruguay
Round Agreements Act (19 U.S.C. 3501(7))), as in effect on the date of
the enactment of this Act, will exceed such allowable levels for any
applicable reporting period, the Secretary may make adjustments in the
amount of such expenditures during that period to ensure that such
expenditures do not exceed, but in no case are less than, such
allowable levels.
SEC. 182. EXTENSION OF SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--Section 171(a)(1) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7301(a)(1)) is amended by striking ``2002'' both places it appears and
inserting ``2011''.
(b) Agricultural Act of 1949.--Section 171(b)(1) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(b)(1)) is
amended by striking ``2002'' both places it appears and inserting
``2011''.
(c) Suspension of Certain Quota Provisions.--Section 171(c) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7301(c)) is amended by striking ``2002'' and inserting ``2011''.
SEC. 183. LIMITATIONS.
(a) Limitation on Amounts Received.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended--
(1) in paragraph (1)--
(A) by striking ``payments under production
flexibility contracts'' and inserting ``fixed,
decoupled payments'';
(B) by striking ``contract payments made under the
Agricultural Market Transition Act to a person under 1
or more production flexibility contracts'' and
inserting ``fixed, decoupled payments made to a
person''; and
(C) by striking ``4'' and inserting ``5'';
(2) in paragraphs (2) and (3)--
(A) by striking ``payments specified'' and all that
follows through ``and oilseeds'' and inserting
``following payments that a person shall be entitled to
receive'';
(B) by striking ``75'' and inserting ``150'';
(C) by striking the period at the end of paragraph
(2) and all that follows through ``the following'' in
paragraph (3);
(D) by striking ``section 131'' and all that
follows through ``section 132'' and inserting ``section
121 of the Farm Security Act of 2001 for a crop of any
covered commodity at a lower level than the original
loan rate established for the commodity under section
122''; and
(E) by striking ``section 135'' and inserting
``section 125''; and
(3) by inserting after paragraph (2) the following new
paragraph (3):
``(3) Limitation on counter-cyclical payments.--The total
amount of counter-cyclical payments that a person may receive
during any crop year shall not exceed the amount specified in
paragraph (2), as in effect on the day before the date of the
enactment of the Farm Security Act of 2001.''.
(b) Definitions.--Paragraph (4) of section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended to read as follows:
``(4) Definitions.--In this title, the terms `covered
commodity', `counter-cyclical payment', and `fixed, decoupled
payment' have the meaning given those terms in section 100 of
the Farm Security Act of 2001.''.
(c) Transition.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308), as in effect on the day before the date of the enactment
of this Act, shall continue to apply with respect to fiscal year 2001
and the 2001 crop of any covered commodity.
SEC. 184. ADJUSTMENTS OF LOANS.
Section 162(b) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7282(b)) is amended by striking ``this title''
and inserting ``this title and title I of the Farm Security Act of
2001''.
SEC. 185. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7284) is amended by striking ``this title'' each
places it appears and inserting ``this title and title I of the Farm
Security Act of 2001''.
SEC. 186. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING
LOANS.
Section 166 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7286) is amended--
(1) in subsection (a)--
(A) by striking ``In General.--'' and inserting
``Specific Payments.--''; and
(B) by striking ``subtitle C'' and inserting
``subtitle C of this title and title I of the Farm
Security Act of 2001''; and
(2) in subsection (c)(1)--
(A) by striking ``producer'' the first two places
it appears and inserting ``person''; and
(B) by striking ``to producers under subtitle C''
and inserting ``by the Commodity Credit Corporation''.
SEC. 187. ASSIGNMENT OF PAYMENTS.
The provisions of section 8(g) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of
payments, shall apply to payments made under the authority of this Act.
The producer making the assignment, or the assignee, shall provide the
Secretary with notice, in such manner as the Secretary may require, of
any assignment made under this section.
SEC. 188. REPORT ON EFFECT OF CERTAIN FARM PROGRAM PAYMENTS ON ECONOMIC
VIABILITY OF PRODUCERS AND FARMING INFRASTRUCTURE.
(a) Review Required.--The Secretary of Agriculture shall conduct a
review of the effects that payments under production flexibility
contracts and market loss assistance payments have had, and that fixed,
decoupled payments and counter-cyclical payments are likely to have, on
the economic viability of producers and the farming infrastructure,
particularly in areas where climate, soil types, and other agronomic
conditions severely limit the covered crops that producers can choose
to successfully and profitably produce.
(b) Case Study Related to Rice Production.--The review shall
include a case study of the effects that the payments described in
subsection (a), and the forecast effects of increasing these or other
decoupled payments, are likely to have on rice producers (including
tenant rice producers), the rice milling industry, and the economies of
rice farming areas in Texas, where harvested rice acreage has fallen
from 320,000 acres in 1995 to only 211,000 acres in 2001.
(c) Report and Recommendations.--Not later than 90 days after the
date of the enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report describing the information collected for the review and the case
study and any findings made on the basis of such information. The
report shall include recommendations for minimizing the adverse effects
on producers, with a special focus on producers who are tenants, on the
agricultural economies in farming areas generally, on those particular
areas described in subsection (a), and on the area that is the subject
of the case study in subsection (b).
TITLE II--CONSERVATION
Subtitle A--Environmental Conservation Acreage Reserve Program
SEC. 201. GENERAL PROVISIONS.
Title XII of the Food Security Act of 1985 is amended--
(1) in section 1230(a), by striking ``1996 through 2002''
and inserting ``2002 through 2011'';
(2) by striking subsection (c) of section 1230; and
(3) in section 1230A (16 U.S.C. 3830a), by striking
``chapter'' each place it appears and inserting ``title''.
Subtitle B--Conservation Reserve Program
SEC. 211. REAUTHORIZATION.
(a) In General.--Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended in each of subsections (a) and (d) by striking
``2002'' and inserting ``2011''.
(b) Scope of Program.--Section 1231(a) of such Act (16 U.S.C.
3831(a)) is amended by striking ``and water'' and inserting ``, water,
and wildlife''.
SEC. 212. ENROLLMENT.
(a) Eligibility.--Section 1231(b) of the Food Security Act of 1985
(16 U.S.C. 3831(b)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) marginal pasturelands to be devoted to natural
vegetation in or near riparian areas or for similar water
quality purposes, including marginal pasturelands converted to
wetlands or established as wildlife habitat;'';
(2) in paragraph (4)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) if the Secretary determines that--
``(i) the lands contribute to the
degradation of soil, water, or air quality, or
would pose an on-site or off-site environmental
threat to soil, water, or air quality if
permitted to remain in agricultural production;
and
``(ii) soil, water, and air quality
objectives with respect to the land cannot be
achieved under the environmental quality
incentives program established under chapter
4;'';
(B) by striking ``or'' at the end of subparagraph
(C);
(C) by striking the period at the end of
subparagraph (D) and inserting ``; or''; and
(D) by adding at the end the following:
``(E) if the Secretary determines that enrollment
of such lands would contribute to conservation of
ground or surface water.''; and
(3) by adding after and below the end the following flush
sentence:
``Notwithstanding the preceding sentence (but subject to subsection
(c)), the Secretary may not include in the program established under
this subchapter any land that has not been in production for at least 4
years, unless the land is in the program as of the effective date of
this sentence.''.
(b) Increase in Maximum Enrollment.--Section 1231(d) of such Act
(16 U.S.C. 3831(d)) is amended by striking ``36,400,000'' and inserting
``39,200,000''.
(c) Eligibility on Contract Expiration.--Section 1231(f) of such
Act (16 U.S.C. 3831(f)) is amended to read as follows:
``(f) Eligibility on Contract Expiration.--On the expiration of a
contract entered into under this subchapter, the land subject to the
contract shall be eligible to be considered for re-enrollment in the
conservation reserve.''.
(d) Balance of Natural Resource Purposes.--
(1) In general.--Section 1231 of such Act (16 U.S.C. 3831)
is amended by adding at the end the following:
``(i) Balance of Natural Resource Purposes.--In determining the
acceptability of contract offers under this subchapter, the Secretary
shall ensure an equitable balance among the conservation purposes of
soil erosion, water quality and wildlife habitat.''.
(2) Regulations.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Agriculture shall
issue final regulations implementing section 1231(i) of the
Food Security Act of 1985, as added by paragraph (1) of this
subsection.
SEC. 213. DUTIES OF OWNERS AND OPERATORS.
Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is
amended--
(1) in subsection (a)--
(A) in paragraph (3), by inserting ``as described
in section 1232(a)(7) or for other purposes'' before
``as permitted'';
(B) in paragraph (4), by inserting ``where
practicable, or maintain existing cover'' before ``on
such land''; and
(C) in paragraph (7), by striking ``Secretary--''
and all that follows and inserting ``Secretary may
permit, consistent with the conservation of soil, water
quality, and wildlife habitat--
``(A) managed grazing and limited haying, in which
case the Secretary shall reduce the conservation
reserve payment otherwise payable under the contract by
an amount commensurate with the economic value of the
activity;
``(B) wind turbines for the provision of wind
energy, whether or not commercial in nature; and
``(C) land subject to the contract to be harvested
for recovery of biomass used in energy production, in
which case the Secretary shall reduce the conservation
reserve payment otherwise payable under the contract by
an amount commensurate with the economic value of such
activity;''; and
(2) by striking subsections (c) and (d) and redesignating
subsection (e) as subsection (c).
SEC. 214. REFERENCE TO CONSERVATION RESERVE PAYMENTS.
Subchapter B of chapter 1 of subtitle D of title XII of such Act
(16 U.S.C. 3831-3836) is amended--
(1) by striking ``rental payment'' each place it appears
and inserting ``conservation reserve payment'';
(2) by striking ``rental payments'' each place it appears
and inserting ``conservation reserve payments''; and
(3) in the paragraph heading for section 1235(e)(4), by
striking ``rental payment'' and inserting ``conservation
reserve payment''.
SEC. 215. EXPANSION OF PILOT PROGRAM TO ALL STATES.
Section 1231(h) of the Food Security Act of 1985 (16 U.S.C.
3831(h)) is amended--
(1) in paragraph (1), by striking ``and 2002'' and all that
follows through ``South Dakota'' and inserting ``through 2011
calendar years, the Secretary shall carry out a program in each
State'';
(2) in paragraph (3)(C), by striking ``--'' and all that
follows and inserting ``not more than 150,000 acres in any 1
State.''; and
(3) by striking paragraph (2) and redesignating paragraphs
(3) through (5) as paragraphs (2) through (4), respectively.
Subtitle C--Wetlands Reserve Program
SEC. 221. ENROLLMENT.
(a) Maximum.--Section 1237(b) of the Food Security Act of 1985 (16
U.S.C. 3837(b)) is amended by striking paragraph (1) and inserting the
following:
``(1) Annual enrollment.--In addition to any acres enrolled
in the wetlands reserve program as of the end of a calendar
year, the Secretary may in the succeeding calendar year enroll
in the program a number of additional acres equal to--
``(A) if the succeeding calendar year is calendar
year 2002, 150,000; or
``(B) if the succeeding calendar year is a calendar
year after calendar year 2002--
``(i) 150,000; plus
``(ii) the amount (if any) by which
150,000, multiplied by the number of calendar
years in the period that begins with calendar
year 2002 and ends with the calendar year
preceding such succeeding calendar year,
exceeds the total number of acres added to the
reserve during the period.''.
(b) Methods.--Section 1237 of such Act (16 U.S.C. 3837(b)(2)) is
amended--
(1) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Methods of enrollment.--The Secretary shall enroll
acreage into the wetlands reserve program through the use of
easements, restoration cost share agreements, or both.''; and
(2) by striking subsection (g).
(c) Extension.--Section 1237(c) of such Act (16 U.S.C. 3837(c)) is
amended by striking ``2002'' and inserting ``2011''.
SEC. 222. EASEMENTS AND AGREEMENTS.
Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is
amended--
(1) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) prohibits the alteration of wildlife habitat and
other natural features of such land, unless specifically
permitted by the plan;'';
(2) in subsection (e), by striking paragraph (2) and
inserting the following:
``(2) shall be consistent with applicable State law.'';
(3) by striking subsection (h).
SEC. 223. DUTIES OF THE SECRETARY.
Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is
amended by striking subsection (d).
SEC. 224. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.
Section 1237E(a)(2) of the Food Security Act of 1985 (16 U.S.C.
3837e(a)(2)) is amended to read as follows:
``(2) the ownership change occurred due to foreclosure on
the land and the owner of the land immediately before the
foreclosure exercises a right of redemption from the mortgage
holder in accordance with State law; or''.
Subtitle D--Environmental Quality Incentives Program
SEC. 231. PURPOSES.
Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is
amended--
(1) by striking ``to--'' and all that follows through
``provides--'' and inserting ``to provide--'';
(2) by striking ``that face the most serious threats to''
and inserting ``to address environmental needs and provide
benefits to air,'';
(3) by redesignating the subparagraphs (A) through (D) that
follow the matter amended by paragraph (2) of this section as
paragraphs (1) through (4), respectively;
(4) by moving each of such redesignated provisions 2 ems to
the left; and
(5) by striking ``farmers and ranchers'' each place it
appears and inserting ``producers''.
SEC. 232. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1)
is amended--
(1) in paragraph (1)--
(A) by inserting ``non-industrial private forest
land,'' before ``and other land''; and
(B) by striking ``poses a serious threat'' and all
that follows and inserting ``provides increased
environmental benefits to air, soil, water, or related
resources.''; and
(2) in paragraph (4), by inserting ``, including non-
industrial private forestry'' before the period.
SEC. 233. ESTABLISHMENT AND ADMINISTRATION.
(a) Reauthorization.--Section 1240B(a)(1) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2002'' and
inserting ``2011''.
(b) Term of Contracts.--Section 1240B(b)(2) of such Act (16 U.S.C.
3839aa-2(b)(2)) is amended by striking ``not less than 5, nor more than
10, years'' and inserting ``not less than 1 year, nor more than 10
years''.
(c) Structural Practices.--Section 1240B(c)(1)(B) of such Act (16
U.S.C. 3839aa-2(c)(1)(B)) is amended to read as follows:
``(B) achieving the purposes established under this
subtitle.''.
(d) Elimination of Certain Limitations on Eligibility for Cost-
Share Payments.--Section 1240B(e)(1) of such Act (16 U.S.C. 3839aa-
2(e)(1)) is amended--
(1) by striking subparagraph (B) and redesignating
subparagraph (C) as subparagraph (B); and
(2) in subparagraph (B) (as so redesignated), by striking
``or 3''.
(e) Incentive Payments.--Section 1240B of such Act (16 U.S.C.
3839aa-2) is amended--
(1) in subsection (e)--
(A) in the subsection heading, by striking ``,
Incentive Payments,''; and
(B) by striking paragraph (2); and
(2) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively, and inserting after subsection (e)
the following:
``(f) Conservation Incentive Payments.--
``(1) In general.--The Secretary may make incentive
payments in an amount and at a rate determined by the Secretary
to be necessary to encourage a producer to perform multiple
land management practices and to promote the enhancement of
soil, water, wildlife habitat, air, and related resources.
``(2) Special rule.--In determining the amount and rate of
incentive payments, the Secretary may accord great weight to
those practices that include residue, nutrient, pest, invasive
species, and air quality management.''.
SEC. 234. EVALUATION OF OFFERS AND PAYMENTS.
Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3)
is amended by striking paragraphs (1) through (3) and inserting the
following:
``(1) aid producers in complying with this title and
Federal and State environmental laws, and encourage
environmental enhancement and conservation;
``(2) maximize the beneficial usage of animal manure and
other similar soil amendments which improve soil health, tilth,
and water-holding capacity; and
``(3) encourage the utilization of sustainable grazing
systems, such as year-round, rotational, or managed grazing.''.
SEC. 235. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C.
3839aa-5(a)) is amended by striking ``that incorporates such
conservation practices'' and all that follows and inserting ``that
provides or will continue to provide increased environmental benefits
to air, soil, water, or related resources.''.
SEC. 236. DUTIES OF THE SECRETARY.
Section 1240F(3) of the Food Security Act of 1985 (16 U.S.C.
3839aa-6(3)) is amended to read as follows:
``(3) providing technical assistance or cost-share payments
for developing and implementing 1 or more structural practices
or 1 or more land management practices, as appropriate;''.
SEC. 237. LIMITATION ON PAYMENTS.
Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7)
is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``$10,000'' and
inserting ``$50,000''; and
(B) in paragraph (2), by striking ``$50,000'' and
inserting ``$200,000'';
(2) in subsection (b)(2), by striking ``the maximization of
environmental benefits per dollar expended and''; and
(3) by striking subsection (c).
SEC. 238. GROUND AND SURFACE WATER CONSERVATION.
Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
is amended to read as follows:
``SEC. 1240H. GROUND AND SURFACE WATER CONSERVATION.
``(a) Support for Conservation Measures.--The Secretary shall
provide cost-share payments and low-interest loans to encourage ground
and surface water conservation, including irrigation system
improvement, and provide incentive payments for capping wells, reducing
use of water for irrigation, and switching from irrigation to dryland
farming.
``(b) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall make available the following amounts to carry out
this section:
``(1) $30,000,000 for fiscal year 2002.
``(2) $45,000,000 for fiscal year 2003.
``(3) $60,000,000 for each of fiscal years 2004 through
2011.''.
Subtitle E--Funding and Administration
SEC. 241. REAUTHORIZATION.
Section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)) is amended by striking ``2002'' and inserting ``2011''.
SEC. 242. FUNDING.
Section 1241(b)(1) of the Food Security Act of 1985 (16 U.S.C.
3841(b)(1)) is amended--
(1) by striking ``$130,000,000'' and all that follows
through ``2002, for'' and inserting ``the following amounts for
purposes of'';
(2) by striking ``subtitle D.'' and inserting ``subtitle
D:''; and
(3) by adding at the end the following:
``(A) $200,000,000 for fiscal year 2001.
``(B) $1,025,000,000 for each of fiscal years 2002
and 2003.
``(C) $1,200,000,000 for each of fiscal years 2004,
2005, and 2006.
``(D) $1,400,000,000 for each of fiscal years 2007,
2008, and 2009.
``(E) $1,500,000,000 for each of fiscal years 2010
and 2011.''.
SEC. 243. ALLOCATION FOR LIVESTOCK PRODUCTION.
Section 1241(b)(2) of the Food Security Act of 1985 (16 U.S.C.
3841(b)(2)) is amended by striking ``2002'' and inserting ``2011''.
SEC. 244. ADMINISTRATION AND TECHNICAL ASSISTANCE.
(a) Broadening of Exception to Acreage Limitation.--Section
1243(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(2)) is
amended by striking ``that--'' and all that follows and inserting
``that the action would not adversely affect the local economy of the
county.''.
(b) Rules Governing Provision of Technical Assistance.--Section
1243(d) of such Act (16 U.S.C. 3843(d)) is amended to read as follows:
``(d) Rules Governing Provision of Technical Assistance.--
``(1) In general.--The Secretary shall provide technical
assistance under this title to a producer eligible for such
assistance, by providing the assistance directly or, at the
option of the producer, through an approved third party if
available.
``(2) Reevaluation.--The Secretary shall reevaluate the
provision of, and the amount of, technical assistance made
available under subchapters B and C of chapter 1 and chapter 4
of subtitle D.
``(3) Certification of third-party providers.--
``(A) In general.--Not later than 6 months after
the date of the enactment of this subsection, the
Secretary of Agriculture shall, by regulation,
establish a system for approving persons to provide
technical assistance pursuant to chapter 4 of subtitle
D. For purposes of this paragraph, a person shall be
considered approved if they have a memorandum of
understanding regarding the provision of technical
assistance in place with the Secretary.
``(B) Expertise required.--In prescribing such
regulations, the Secretary shall ensure that persons
with expertise in the technical aspects of conservation
planning, watershed planning, environmental
engineering, including commercial entities, nonprofit
entities, State or local governments or agencies, and
other Federal agencies, are eligible to become approved
providers of such technical assistance.''.
(c) Duty of Secretary.--
(1) In general.--Section 1770(d) of such Act (7 U.S.C.
2276(d)) is amended--
(A) by striking ``or'' at the end of paragraph (9);
(B) by striking the period at the end of paragraph
(11) and inserting ``; or''; and
(C) by adding at the end the following:
``(12) title XII of this Act.''.
(2) Conforming amendments.--Section 1770(e) of such Act (7
U.S.C. 2276(e)) is amended--
(A) by striking the subsection heading and
inserting ``Exceptions''; and
(B) by inserting ``, or as necessary to carry out a
program under title XII of this Act as determined by
the Secretary'' before the period.
Subtitle F--Other Programs
SEC. 251. PRIVATE GRAZING LAND CONSERVATION ASSISTANCE.
Section 386(d)(1) of the Federal Agriculture Improvement and Reform
Act of 1996 (16 U.S.C. 2005b(d)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (G);
(2) by striking the period at the end of subparagraph (H)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(I) encouraging the utilization of sustainable
grazing systems, such as year-round, rotational, or
managed grazing.''.
SEC. 252. WILDLIFE HABITAT INCENTIVES PROGRAM.
Subsection (c) of section 387 of the Federal Agriculture
Improvement and Reform Act of 1996 (16 U.S.C. 3836a) is amended to read
as follows:
``(c) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall make available $25,000,000 for each
of fiscal years 2002 through 2011 to carry out this section.''.
SEC. 253. FARMLAND PROTECTION PROGRAM.
(a) Removal of Acreage Limitation; Expansion of Purposes.--
Subsection (a) of section 388 of the Federal Agriculture Improvement
and Reform Act of 1996 (16 U.S.C. 3830 note) is amended--
(1) by striking ``not less than 170,000, nor more than
340,000 acres of''; and
(2) by inserting ``, or agricultural land that contains
historic or archaeological resources,'' after ``other
productive soil''.
(b) Funding.--Subsection (c) of such section is amended to read as
follows:
``(c) Funding.--The Secretary shall use not more than $25,000,000
of the funds of the Commodity Credit Corporation in each of fiscal
years 2002 through 2011 to carry out this section.''.
(c) Eligible Entities.--Such section is further amended--
(1) in subsection (a), by striking ``a State or local
government'' and inserting ``an eligible entity''; and
(2) by adding at the end the following:
``(d) Definition of Eligible Entity.--In this section, the term
`eligible entity' means--
``(1) any agency of any State or local government, or
federally recognized Indian tribe, including farmland
protection boards and land resource councils established under
State law; and
``(2) any organization that--
``(A) is organized for, and at all times since the
formation of the organization has been operated
principally for, one or more of the conservation
purposes specified in clause (i), (ii), or (iii) of
section 170(h)(4)(A) of the Internal Revenue Code of
1986;
``(B) is an organization described in section
501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code;
``(C) is described in section 509(a)(2) of that
Code; or
``(D) is described in section 509(a)(3) of that
Code and is controlled by an organization described in
section 509(a)(2) of that Code.''.
SEC. 254. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
(a) Purpose.--Section 1528 of the Agriculture and Food Act of 1981
(16 U.S.C. 3451) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1528. It is the purpose'' and inserting the
following:
``SEC. 1528. STATEMENT OF PURPOSE.
``It is the purpose''; and
(2) by inserting ``through designated RC&D councils''
before ``in rural areas''.
(b) Definitions.--Section 1529 of such Act (16 U.S.C. 3452) is
amended--
(1) by striking the section heading and all that follows
through ``Sec. 1529. As used in this subtitle--'' and inserting
the following:
``SEC. 1529. DEFINITIONS.
``In this title:'';
(2) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
inserting ``RC&D council'' before ``area plan'';
(B) in subparagraph (B), by striking ``through
control of nonpoint sources of pollution'';
(C) in subparagraph (C)--
(i) by striking ``natural resources based''
and inserting ``resource-based'';
(ii) by striking ``development of
aquaculture,'';
(iii) by striking ``and satisfaction'' and
inserting ``satisfaction''; and
(iv) by inserting ``, food security,
economic development, and education'' before
the semicolon; and
(D) in subparagraph (D), by striking ``other'' the
1st place it appears and inserting ``land management'';
(3) in paragraph (3), by striking ``any State, local unit
of government, or local nonprofit organization'' and inserting
``the designated RC&D council'';
(4) by striking paragraphs (4) through (6) and inserting
the following:
``(4)(A) The term `financial assistance' means the
Secretary may--
``(i) provide funds directly to RC&D councils or
associations of RC&D councils through grants,
cooperative agreements, and interagency agreements that
directly implement RC&D area plans; and
``(ii) may join with other federal agencies through
interagency agreements and other arrangements as needed
to carry out the program's purpose.
``(B) Funds may be used for such things as--
``(i) technical assistance;
``(ii) financial assistance in the form of grants
for planning, analysis and feasibility studies, and
business plans;
``(iii) training and education; and
``(iv) all costs associated with making such
services available to RC&D councils or RC&D
associations.
``(5) The term `RC&D council' means the responsible
leadership of the RC&D area. RC&D councils and associations are
non-profit entities whose members are volunteers and include
local civic and elected officials. Affiliations of RC&D
councils are formed in states and regions.'';
(5) in paragraph (8), by inserting ``and federally
recognized Indian tribes'' before the period;
(6) in paragraph (9), by striking ``works of improvement''
and inserting ``projects'';
(7) by redesignating paragraphs (7) through (9) as
paragraphs (6) through (8), respectively; and
(8) by striking paragraph (10) and inserting the following:
``(9) The term `project' means any action taken by a
designated RC&D council that achieves any of the elements
identified under paragraph (1).''.
(c) Establishment and Scope.--Section 1530 of such Act (16 U.S.C.
3453) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1530. The Secretary'' and inserting the
following:
``SEC. 1530. ESTABLISHMENT AND SCOPE.
``The Secretary''; and
(2) by striking ``the technical and financial assistance
necessary to permit such States, local units of government, and
local nonprofit organizations'' and inserting ``through
designated RC&D councils the technical and financial assistance
necessary to permit such RC&D Councils''.
(d) Selection of Designated Areas.--Section 1531 of such Act (16
U.S.C. 3454) is amended by striking the section heading and all that
follows through ``Sec. 1531. The Secretary'' and inserting the
following:
``SEC. 1531. SELECTION OF DESIGNATED AREAS.
``The Secretary''.
(e) Authority of Secretary.--Section 1532 of such Act (16 U.S.C.
3455) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1532. In carrying'' and inserting the following:
``SEC. 1532. AUTHORITY OF SECRETARY.
``In carrying'';
(2) in each of paragraphs (1) and (3)--
(A) by striking ``State, local unit of government,
or local nonprofit organization'' and inserting ``RC&D
council''; and
(B) by inserting ``RC&D council'' before ``area
plan'';
(3) in paragraph (2), by inserting ``RC&D council'' before
``area plans''; and
(4) in paragraph (4), by striking ``States, local units of
government, and local nonprofit organizations'' and inserting
``RC&D councils or affiliations of RC&D councils''.
(f) Technical and Financial Assistance.--Section 1533 of such Act
(16 U.S.C. 3456) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1533. (a) Technical'' and inserting the
following:
``SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.
``(a) Technical'';
(2) in subsection (a)--
(A) by striking ``State, local unit of government,
or local nonprofit organization to assist in carrying
out works of improvement specified in an'' and
inserting ``RC&D councils or affiliations of RC&D
councils to assist in carrying out a project specified
in a RC&D council'';
(B) in paragraph (1)--
(i) by striking ``State, local unit of
government, or local nonprofit organization''
and inserting ``RC&D council or affiliate'';
and
(ii) by striking ``works of improvement''
each place it appears and inserting
``project'';
(C) in paragraph (2)--
(i) by striking ``works of improvement''
and inserting ``project''; and
(ii) by striking ``State, local unit of
government, or local nonprofit organization''
and inserting ``RC&D council'';
(D) in paragraph (3), by striking ``works of
improvement'' and all that follows and inserting
``project concerned is necessary to accomplish and RC&D
council area plan objective;'';
(E) in paragraph (4), by striking ``the works of
improvement provided for in the'' and inserting ``the
project provided for in the RC&D council'';
(F) in paragraph (5), by inserting ``federally
recognized Indian tribe'' before ``or local'' each
place it appears; and
(G) in paragraph (6), by inserting ``RC&D council''
before ``area plan'';
(3) in subsection (b), by striking ``work of improvement''
and inserting ``project''; and
(4) in subsection (c), by striking ``any State, local unit
of government, or local nonprofit organization to carry out
any'' and inserting ``RC&D council to carry out any RC&D
council''.
(g) Resource Conservation and Development Policy Board.--Section
1534 of such Act (16 U.S.C. 3457) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1534. (a) The Secretary'' and inserting the
following:
``SEC. 1534. RESOURCE CONSERVATION AND DEVELOPMENT POLICY BOARD.
``(a) The Secretary''; and
(2) in subsection (b), by striking ``seven''.
(h) Program Evaluation.--Section 1535 of such Act (16 U.S.C. 3458)
is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1535. The Secretary'' and inserting the
following:
``SEC. 1535. PROGRAM EVALUATION.
``The Secretary'';
(2) by inserting ``with assistance from RC&D councils''
before ``provided'';
(3) by inserting ``federally recognized Indian tribes,''
before ``local units''; and
(4) by striking ``1986'' and inserting ``2007''.
(i) Limitation on Assistance.--Section 1536 of such Act (16 U.S.C.
3458) is amended by striking the section heading and all that follows
through ``Sec. 1536. The program'' and inserting the following:
``SEC. 1536. LIMITATION ON ASSISTANCE.
``The program''.
(j) Supplemental Authority of the Secretary.--Section 1537 of such
Act (16 U.S.C. 3460) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1537. The authority'' and inserting the
following:
``SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.
``The authority''; and
(2) by striking ``States, local units of government, and
local nonprofit organizations'' and inserting ``RC&D
councils''.
(i) Authorization of Appropriations.--Section 1538 of such Act (16
U.S.C. 3461) is amended--
(1) by striking the section heading and all that follows
through ``Sec. 1538. There are'' and inserting the following:
``SEC. 1538. AUTHORIZATION OF APPROPRIATIONS.
``There are''; and
(2) by striking ``for each of the fiscal years 1996 through
2002''.
SEC. 255. GRASSLAND RESERVE PROGRAM.
(a) In General.--Chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830-3837f) is amended by adding at the
end the following:
``Subchapter D--Grassland Reserve Program
``SEC. 1238. GRASSLAND RESERVE PROGRAM.
``(a) Establishment.--The Secretary, acting through the Natural
Resource Conservation Service, shall establish a grassland reserve
program (referred to in this subchapter as `the program') to assist
owners in restoring and protecting eligible land described in
subsection (c).
``(b) Enrollment Conditions.--
``(1) In general.--The Secretary shall enroll in the
program, from willing owners, not less than--
``(A) 100 contiguous acres of land west of the 90th
meridian; or
``(B) 50 contiguous acres of land east of the 90th
meridian.
``(2) Maximum enrollment.--The total number of acres
enrolled in the program shall not exceed 1,000,000 acres.
``(3) Methods of enrollment.--The Secretary shall enroll
land in the program through--
``(A) permanent easements or 30-year easements;
``(B) in a State that imposes a maximum duration
for such an easement, an easement for the maximum
duration allowed under State law; or
``(C) a 30-year rental agreement.
``(c) Eligible Land.--Land shall be eligible to be enrolled in the
program if the Secretary determines that the land is--
``(1) natural grassland or shrubland;
``(2) land that--
``(A) is located in an area that has been
historically dominated by natural grassland or
shrubland; and
``(B) has potential to serve as habitat for animal
or plant populations of significant ecological value if
the land is restored to natural grassland or shrubland;
or
``(3) land that is incidental to land described in
paragraph (1) or (2), if the incidental land is determined by
the Secretary to be necessary for the efficient administration
of the easement.
``SEC. 1238A. EASEMENTS AND AGREEMENTS.
``(a) In General.--To be eligible to enroll land in the program,
the owner of the land shall enter into an agreement with the
Secretary--
``(1) to grant an easement that runs with the land to the
Secretary;
``(2) to create and record an appropriate deed restriction
in accordance with applicable State law to reflect the
easement;
``(3) to provide a written statement of consent to the
easement signed by persons holding a security interest or any
vested interest in the land;
``(4) to provide proof of unencumbered title to the
underlying fee interest in the land that is the subject of the
easement; and
``(5) to comply with the terms of the easement and
restoration agreement.
``(b) Terms of Easement.--An easement under subsection (a) shall--
``(1) permit--
``(A) grazing on the land in a manner that is
consistent with maintaining the viability of natural
grass and shrub species indigenous to that locality;
``(B) haying (including haying for seed production)
or mowing, except during the nesting season for birds
in the area that are in significant decline, as
determined by the Natural Resources Conservation
Service State conservationist, or are protected Federal
or State law; and
``(C) fire rehabilitation, construction of fire
breaks, and fences (including placement of the posts
necessary for fences);
``(2) prohibit--
``(A) the production of row crops, fruit trees,
vineyards, or any other agricultural commodity that
requires breaking the soil surface; and
``(B) except as permitted under paragraph (1)(C),
the conduct of any other activities that would disturb
the surface of the land covered by the easement,
including--
``(i) plowing; and
``(ii) disking; and
``(3) include such additional provisions as the Secretary
determines are appropriate to carry out this subchapter or to
facilitate the administration of this subchapter.
``(c) Evaluation and Ranking of Easement Applications.--
``(1) In general.--The Secretary, in conjunction with State
technical committees, shall establish criteria to evaluate and
rank applications for easements under this subchapter.
``(2) Criteria.--In establishing the criteria, the
Secretary shall emphasize support for grazing operations, plant
and animal biodiversity, and grassland and shrubland under the
greatest threat of conversion.
``(d) Restoration Agreements.--
``(1) In general.--The Secretary shall prescribe the terms
by which grassland and shrubland subject to an easement under
an agreement entered into under the program shall be restored.
``(2) Requirements.--The restoration agreement shall
describe the respective duties of the owner and the Secretary
(including paying the Federal share of the cost of restoration
and the provision of technical assistance).
``(e) Violations.--
``(1) In general.--On the violation of the terms or
conditions of an easement or restoration agreement entered into
under this section--
``(A) the easement shall remain in force; and
``(B) the Secretary may require the owner to refund
all or part of any payments received by the owner under
this subchapter, with interest on the payments as
determined appropriate by the Secretary.
``(2) Periodic inspections.--
``(A) In general.--After providing notice to the
owner, the Secretary shall conduct periodic inspections
of land subject to easements under this subchapter to
ensure that the terms of the easement and restoration
agreement are being met.
``(B) Limitation.--The Secretary may not prohibit
the owner, or a representative of the owner, from being
present during a periodic inspection.
``SEC. 1238B. DUTIES OF SECRETARY.
``(a) In General.--In return for the granting of an easement by an
owner under this subchapter, the Secretary shall, in accordance with
this section--
``(1) make easement payments;
``(2) pay the Federal share of the cost of restoration; and
``(3) provide technical assistance to the owner.
``(b) Payment Schedule.--
``(1) Easement payments.--
``(A) Amount.--In return for the granting of an
easement by an owner under this subchapter, the
Secretary shall make easement payments to the owner in
an amount equal to--
``(i) in the case of a permanent easement,
the fair market value of the land less the
grazing value of the land encumbered by the
easement; and
``(ii) in the case of a 30-year easement or
an easement for the maximum duration allowed
under applicable State law, 30 percent of the
fair market value of the land less the grazing
value of the land for the period during which
the land is encumbered by the easement.
``(B) Schedule.--Easement payments may be provided
in not less than 1 payment nor more than 10 annual
payments of equal or unequal amount, as agreed to by
the Secretary and the owner.
``(2) Rental agreement payments.--
``(A) Amount.--If an owner enters into a 30-year
rental agreement authorized under section
1238(b)(3)(C), the Secretary shall make 30 annual
rental payments to the owner in an amount that equals, to the maximum
extent practicable, the 30-year easement payment amount under paragraph
(1)(A)(ii).
``(B) Assessment.--Not less than once every 5 years
throughout the 30-year rental period, the Secretary
shall assess whether the value of the rental payments
under subparagraph (A) equals, to the maximum extent
practicable, the 30-year easement payments as of the
date of the assessment.
``(C) Adjustment.--If on completion of the
assessment under subparagraph (B), the Secretary
determines that the rental payments do not equal, to
the maximum extent practicable, the value of payments
under a 30-year easement, the Secretary shall adjust
the amount of the remaining payments to equal, to the
maximum extent practicable, the value of a 30-year
easement over the entire 30-year rental period.
``(c) Federal Share of Cost of Restoration.--The Secretary shall
make payments to the owner of not more than 75 percent of the cost of
carrying out measures and practices necessary to restore grassland and
shrubland functions and values.
``(d) Technical Assistance.--
``(1) In general.--The Secretary shall provide owners with
technical assistance to execute easement documents and restore
the grassland and shrubland.
``(2) Reimbursement by commodity credit corporation.--The
Commodity Credit Corporation shall reimburse the Secretary,
acting through the Natural Resources Conservation Service, for
not more than 10 percent of the cost of acquisition of the
easement and the Federal share of the cost of restoration
obligated for that fiscal year.
``(e) Payments to Others.--If an owner that is entitled to a
payment under this subchapter dies, becomes incompetent, is otherwise
unable to receive the payment, or is succeeded by another person who
renders or completes the required performance, the Secretary shall make
the payment, in accordance with regulations promulgated by the
Secretary and without regard to any other provision of law, in such
manner as the Secretary determines is fair and reasonable in light of
all the circumstances.
``(f) Other Payments.--Easement payments received by an owner under
this subchapter shall be in addition to, and not affect, the total
amount of payments that the owner is otherwise eligible to receive
under other Federal laws.
``SEC. 1238C. ADMINISTRATION.
``(a) Delegation to Private Organizations.--
``(1) In general.--The Secretary shall permit a private
conservation or land trust organization or a State agency to
hold and enforce an easement under this subchapter, in lieu of
the Secretary, if--
``(A) the Secretary determines that granting such
permission is likely to promote grassland and shrubland
protection; and
``(B) the owner authorizes the private conservation
or land trust or a State agency to hold and enforce the
easement.
``(2) Application.--An organization that desires to hold an
easement under this subchapter shall apply to the Secretary for
approval.
``(3) Approval by secretary.--The Secretary shall approve
an organization under this subchapter that is constituted for
conservation or ranching purposes and is competent to
administer grassland and shrubland easements.
``(4) Reassignment.--If an organization holding an easement
on land under this subchapter terminates--
``(A) the owner of the land shall reassign the
easement to another organization described in paragraph
(1) or to the Secretary; and
``(B) the owner and the new organization shall
notify the Secretary in writing that a reassignment for
termination has been made.
``(b) Regulations.--Not later than 180 days after the date of
enactment of this subchapter, the Secretary shall issue such
regulations as are necessary to carry out this subchapter.''.
(b) Funding.--Section 1241(a)(2) of the Food Security Act of 1985
(16 U.S.C. 3841(a)(2)) is amended by striking ``subchapter C'' and
inserting ``subchapters C and D''.
SEC. 256. FARMLAND STEWARDSHIP PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830-3839bb) is amended by inserting after chapter 1 (and the matter
added by section 255 of this Act) the following:
``CHAPTER 2--FARMLAND STEWARDSHIP PROGRAM
``SEC. 1238. DEFINITIONS.
``In this chapter:
``(1) Agreement.--The term `agreement' means a service
contract authorized by this chapter.
``(2) Biofuel.--
``(A) In general.--The term `biofuel' means an
energy source derived from living organisms.
``(B) Inclusions.--The term `biofuel' includes--
``(i) plant residue that is harvested,
dried, and burned, or further processed into a
solid, liquid, or gaseous fuel;
``(ii) agricultural waste (such as cereal
straw, seed hulls, corn stalks and cobs);
``(iii) native shrubs and herbaceous plants
(such as some varieties of willows and prairie
switchgrass); and
``(iv) animal waste (including methane gas
that is produced as a byproduct of animal
waste).
``(3) Bioproduct.--The term `bioproduct' means a product
that is manufactured or produced--
``(A) by using plant material and plant byproduct
(such as glucose, starch, and protein); and
``(B) to replace a petroleum-based product,
additive, or activator used in the production of a
solvent, paint, adhesive, chemical, or other product (such as tires or
Styrofoam cups).
``(4) Carbon sequestration.--The term `carbon
sequestration' means the process of providing plant cover to
avoid contributing to the greenhouse effect by--
``(A) removing carbon dioxide from the air; and
``(B) developing a `carbon sink' to retain that
carbon dioxide.
``(5) Contracting agency.--The term `contracting agency'
means a local conservation district, resource conservation and
development council, extension service office, state-chartered
stewardship entity, nonprofit organization, local office of the
Department, or other participating government agency that is
authorized by the Secretary to enter into farmland stewardship
agreements on behalf of the Secretary.
``(6) Eligible agricultural land.--The term `eligible
agricultural land' means private land that is in primarily
native or natural condition, or that is classified by the
Secretary as cropland, pastureland, grazing land, timberland,
or another similar type of land, that--
``(A) contains wildlife habitat, wetland, or other
natural resources; or
``(B) provides 1 or more benefits to the public,
such as--
``(i) conservation of soil, water, and
related resources;
``(ii) water quality protection or
improvement;
``(iii) control of invasive and exotic
species;
``(iv) wetland restoration, development,
and protection;
``(v) wildlife habitat development and
protection;
``(vi) survival and recovery of listed
species or candidate species;
``(vii) preservation of open spaces or
prime, unique, or other productive farm land;
``(viii) increased participation in Federal
agricultural or forestry programs in an area or
region that has traditional under-
representation in those programs;
``(ix) provision of a structure for
interstate cooperation to address ecosystem
challenges that affect an area involving 1 or
more States;
``(x) improvements in the ecological
integrity of the area, region or corridor;
``(xi) carbon sequestration;
``(xii) phytoremediation;
``(xiii) improvements in the economic
viability of agriculture;
``(xiv) production of biofuels and
bioproducts;
``(xv) establishment of experimental or
innovative crops;
``(xvi) use of existing crops or crop
byproducts in experimental or innovative ways;
``(xvii) installation of equipment to
produce materials that may be used for biofuels
or other bioproducts;
``(xviii) maintenance of experimental or
innovative crops until the earlier of the date
on which--
``(I) a viable market is
established for those crops; or
``(II) an agreement terminates; and
``(xix) other similar conservation purposes
identified by the Secretary.
``(7) Germplasm.--The term `germplasm' means the genetic
material of a germ cell of any life form that is important for
food or agricultural production.
``(8) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(9) Program.--The term `program' means the farmland
stewardship program established by this chapter.
``(10) Pytoremediation.--The term `pytoremediation' means
the use of green living plant material (including plants that
may be harvested and used to produce biofuel or other
bioproduces) to remove contaminants from water and soil.
``(11) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting--
``(A) through the Natural Resources Conservation
Service; and
``(B) in cooperation with any applicable
agricultural or other agencies of a State.
``(12) Service contract.--The term `service contract' means
a legally binding agreement between 2 parties under which--
``(A) 1 party agrees to render 1 or more services
in accordance with the terms of the contract; and
``(B) the second party agrees to pay the first
party for the each service rendered.
``SEC. 1238A. ESTABLISHMENT AND PURPOSE OF PROGRAM.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish within the
Department a program to be known as the `farmland stewardship
program'.
``(2) Purpose.--The purpose of the program shall be to
modify and more effectively target conservation programs
administered by the Secretary to the specific conservation
needs of, and opportunities presented by, individual parcels of
eligible agricultural land.
``(b) Relation to Other Conservation Programs.--Under the program,
the Secretary may implement, alone or in combination, the features of--
``(1) any conservation program administered by the
Secretary; or
``(2) any conservation program administered by another
Federal agency or a State or local government, if
implementation by the Secretary--
``(A) is feasible; and
``(B) is carried out with the consent of the
applicable administering agency or government.
``(3) Conservation enhancement programs.--
``(A) In general.--States, local governments,
Indian tribes, or any combination of those entities may
submit, and the Secretary may approve, a conservation
enhancement program that integrates 1 or more Federal
agriculture and forestry conservation programs and 1 or
more State, local, or private efforts to address, in
critical areas and corridors, in a manner that enhances
the conservation benefits of the individual programs
and modifies programs to more effectively address State
and local needs--
``(i) water quality;
``(ii) wildlife;
``(iii) farm preservation; and
``(iv) any other conservation need.
``(B) Requirement.--
``(i) In general.--A conservation
enhancement program submitted under
subparagraph (A) shall be designed to provide
benefits greater than benefits that, by reason
of any factor described in clause (ii), would
be provided through the individual application
of a conservation program administered by the
Secretary.
``(ii) Factors.--Factors referred to in
clause (i) include--
``(I) conservation commitments of
greater duration;
``(II) more intensive conservation
benefits;
``(III) integrated treatment of
special natural resource problems (such
as preservation and enhancement of
natural resource corridors); and
``(IV) improved economic viability
for agriculture.
``(C) Approval.--
``(i) Definition of resources.--In this
subparagraph, the term `resources' means, with
respect to any conservation program
administered by the Secretary--
``(I) acreage enrolled under the
conservation program; and
``(II) funding made available to
the Secretary to carry out the
conservation program with respect to
acreage described in subclause (I).
``(ii) Determination.--If the Secretary
determines that a plan submitted under
subparagraph (A) meets the requirements of
subparagraph (B), the Secretary, in accordance
with an agreement, may use not more than 20
percent of the resources of any conservation
program administered by the Secretary to
implement the plan.
``(D) CRP acreage.--Acreage enrolled under an
approved conservation reserve enhancement program shall
be considered acreage of conservation reserve program
that is committed to conservation reserve enhancement
program.
``(c) Funding.--
``(1) In general.--The program and agreements shall be
funded by the Secretary using--
``(A) the funding authorities of the conservation
programs that are implemented through the use of
Farmland Stewardship Agreements for the conservation
purposes listed in Sec. 1238(4)(A) and (B)(i through
x);
``(B) technical assistance in accordance with Sec.
1243(d); and
``(C) such other funds as are appropriated to carry
out the Farmland Stewardship Program.
``(2) Cost sharing.--It shall be a requirement of the
Farmland Stewardship Program that the majority of the funds to
carry out the Program must come from existing conservation
programs, which may be Federal, State, regional, local, or
private, that are combined into and made a part of an
agreement, with the balance made up from matching funding
contributions made by State, regional, or local agencies and
divisions of government or from private funding sources. Funds
from existing programs may be used only to carry out the
purposes and intents of those programs to the degree that those
programs are made a part of a Farmland Stewardship Agreement.
Funding for other purposes or intents must come from the funds
provided under paragraphs (1)(B) and (1)(C) of subsection (c)
or from the matching funding contributions made by State,
regional, or local agencies and divisions of government or from
private funding sources.
``(d) Personnel Costs.--The Secretary shall use the Natural
Resources Conservation Service to carry out the Farmland Stewardship
Program in cooperation with the state department of agriculture or
other designated agency within the state. The role of the Natural
Resources Conservation Services shall be limited to federal oversight
of the program. The Natural Resources Conservation Service shall
perform its normal functions with respect to the conservation programs
that it administers. However, it shall play no role in the assembly of
programs administered by other federal agencies into Farmland
Stewardship Agreements.
``(e) State Level Administration.--The state departments of
agriculture shall have primary responsibility for operating the
Farmland Stewardship Program. A state department of agriculture may
choose to operate the program on its own, may collaborate with another
local, state or federal agency, conservation district or tribe in
operating the program, or may delegate responsibility to another state
agency, such as the state department of natural resources or the state
conservation district agency. The state department of agriculture or
designated state agency shall consult with the agencies with management
authority and responsibility for the resources affected on properties
on which Farmland Stewardship Agreements are negotiated and assembled.
``(1) A state department of agriculture shall submit an
application to the Secretary requesting designation as the
`designated state agency' to operate the Farmland Stewardship
Program. If the state department of agriculture chooses to
delegate responsibility to another state agency, the department
of agriculture shall ask the governor to designate another
agency for this purpose and that agency shall submit
application to the Secretary.
``(2) The Secretary shall approve the request for
designation as the `designated state agency' if the agency
demonstrates that it has the capability to implement the
Farmland Stewardship Program and attests that it shall conform
with the confidentiality requirements in Sec. 1238B(g). Upon
approval of the request, the Secretary shall enter into a
memorandum of understanding with the designated state agency
specifying the state's responsibilities in carrying out the
program and the amount of technical assistance funds that shall
be provided to the state on an annual basis to operate the
program, in accordance with paragraphs (1)(C), (1)(E) and
(1)(F) of subsection (g).
``(f) Annual Reports.--The designated state agency shall annually
submit to the Secretary and make publicly available a report that
describes--
``(1) The progress achieved, the funds expended, the
purposes for which funds were expended and monitoring and
evaluating results obtained by local contracting agencies, and
``(2) The plans and objectives of the State for future
activities under the program.
``(g) Technical Assistance.--
``(1) Of the funds used from other programs and of funds
made available to carry out the Farmland Stewardship Program
for a fiscal year, the Secretary shall reserve not more than
twenty-five percent for the provision of technical assistance
under the Program. Of the funds made available--
``(A) not more than 1.5% shall be reserved for
administration, coordination and oversight through the
Natural Resources Conservation Service headquarters
office;
``(B) not more than 1.5% shall be reserved for the
Farmland Stewardship Council to carry out its duties in
cooperation with the State Technical Committees, as
provided under section 1238E;
``(C) not more than 2.0% shall be reserved for
administration and coordination through the designated
state agency in the state where the property is
located;
``(D) not more than 1.0% shall be reserved for
administration and coordination through the Natural
Resources Conservation Service state office, in the
state where property is located;
``(E) not more than 1.0% shall be reserved for
administration and coordination through the state
conservation district agency, unless such agency is the
designated state agency for administering this program,
in which case these funds shall be added to the funds
in the next paragraph; and
``(F) not less than 18% shall be reserved for local
technical assistance, carried out through a designated
`contracting agency' and subcontractors chosen by and
working with the contracting agency for preparing and
executing agreements and monitoring, evaluating and
administering agreements for their full term.
``(2) An owner or operator who is receiving a benefit under
this chapter shall be eligible to receive technical assistance
in accordance with section 1243(d) to assist the owner or
operator in carrying out a contract entered into under this
chapter.
``(h) Ensuring Availability of Funds.--All amounts required for
preparing, executing, carrying out, monitoring, evaluating and
administering an agreement for its entire term shall be made available
by the Federal, State, and local agencies and private sector entities
involved in funding the agreement upon execution of the agreement.
``SEC. 1238B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.
``(a) Agreements Authorized.--The Secretary shall carry out the
Farmland Stewardship Program by entering into service contracts as
determined by the Secretary, to be known as farmland stewardship
agreements, with the owners or operators of eligible agricultural land
to maintain and protect the natural and agricultural resources on the
land.
``(b) Legal Basis.--An agreement shall operate in all respects as a
service contract and, as such, provides the Secretary with the
opportunity to hire the owner or operator of eligible agricultural land
as a vendor to perform one or more specific services for an equitable
fee for each service rendered. Any agency participating in the Farmland
Stewardship Program that has the authority to enter into service
contracts and to expend public funds under such contracts may enter
into or participate in the funding of an agreement.
``(c) Basic Purposes.--An agreement with the owner or operator of
eligible agricultural land shall be used--
``(1) to negotiate a mutually agreeable set of guidelines,
practices, and procedures under which conservation practices
will be provided by the owner or operator to protect, maintain,
and, where possible, improve, the natural resources on the land
covered by the agreement in return for annual payments to the
owner or operator;
``(2) to enable an owner or operator to participate in one
or more of the conservation programs offered through agencies
at all levels of government and the private sector and, where
possible and feasible, comply with permit requirements and
regulations, through a one-stop, one-application process.
``(3) to implement a conservation program or series of
programs where there is no such program or to implement
conservation management activities where there is no such activity;
``(4) to expand or maintain conservation practices and
resource management activities to a property where it is not
possible at the present time to negotiate or reach agreement on
a public purchase of a fee-simple or less-than-fee interest in
the property for conservation purposes; and
``(5) to negotiate and develop agreements with private
owners and operators to expand or maintain their participation
in conservation activities and programs; to enable them to
install or maintain best management practices (BMPs) and other
recommended practices to improve the compatibility of
agriculture, horticulture, silviculture, aquaculture and equine
activities with the environment; and improve compliance with
public health, safety and environmental regulations.
``(d) Modification of Other Conservation Program Elements.--If
most, but not all, of the limitations, conditions, policies and
requirements of a conservation program that is implemented in whole, or
in part, through the Farmland Stewardship Program are met with respect
to a parcel of eligible agricultural land, and the purposes to be
achieved by the agreement to be entered into for such land are
consistent with the purposes of the conservation program, then the
Secretary may waive any remaining limitations, conditions, policies or
requirements of the conservation program that would otherwise prohibit
or limit the agreement. The Secretary may also grant requests to--
``(1) establish different or automatic enrollment criteria
than otherwise established by regulation or policy;
``(2) establish different compensation rates to the extent
the parties to the agreement consider justified;
``(3) establish different conservation practice criteria if
doing so will achieve greater conservation benefits;
``(4) provide more streamlined and integrated paperwork
requirements;
``(5) provide for the transfer of conservation program
funds to states with flexible incentives accounts; and
``(6) provide funds for an adaptive management process to
monitor the effectiveness of the Program for wildlife, the
protection of natural resources, economic effectiveness and
sustaining the agricultural economy.
``(7) For a waiver or exception to be considered, a
contracting agency or the designated state agency must--
``(A) Submit a request for a waiver to the
Secretary or Administrator who has responsibility for
the program for which a waiver or exception is being
requested. Requests for waivers or exceptions in
programs administered by the United States Department
of Agriculture shall be submitted to the Secretary of
Agriculture, while requests for waivers or exceptions
in programs administered by the United States
Department of Interior shall be submitted to the
Secretary of Interior and requests for waivers or
exceptions in programs administered by the United
States Environmental Protection Agency shall be
submitted to the Administrator of that Agency, and so
forth.
``(B) The request shall--
``(i) explain why the property qualifies
for participation in the program;
``(ii) explain why it is necessary or
desirable to make an exception to or waive one
or more program limitations, conditions,
policies or requirements;
``(iii) if possible, suggest alternative
methods or approaches to satisfying these
limitations, conditions, policies or
requirements that are appropriate for the
property in question;
``(iv) request that the Secretary or
Administrator grant the exception or waiver,
based on the documentation submitted.
``(C) The Secretary or Administrator may request
additional documentation, or may suggest alternative
methods of overcoming program limitations or obstacles
on the property in question, prior to deciding whether
or not to grant a request for an exception or waiver.
``(D) Waivers and exceptions may be granted by a
Secretary or Administrator to allow additional
flexibility in tailoring conservation programs to the
specific needs, opportunities and challenges offered by
individual parcels of land, and to remove
administrative and regulatory obstacles that previously
may have limited the use of these programs on eligible
agricultural land, or would prevent these programs from
being combined together through a Farmland Stewardship
Agreement. Waivers and exceptions may be granted only
if the purposes to be achieved by the program after the
waiver or exception is granted remain consistent with
the purposes for which the program was established.
``(E) The Secretaries and Administrators who
receive requests for waivers or exceptions under this
chapter shall respond to these requests within sixty
(60) days of receipt. Decisions on whether to grant a
request shall be rendered within one hundred eighty
(180) days of receipt.
``(e) Provisional Contracts.--Provisional contracts shall be used
to provide payments to private landowners or operators, and to the
organization or agency that will oversee the agreement, while baseline
data is gathered, documents are prepared and the formal agreement is
being negotiated. Provisional contracts shall pay for all technical
services required to establish an agreement. Provisional contracts may
be used to establish a Farmland Stewardship Agreement, or any other
type of conservation program, permit or agreement on private land.
Provisional contracts shall be used during a two-year planning period,
which may be extended for up to two additional periods of six months
each by mutual agreement between the Secretary, the contracting agency
and the owner or operator.
``(f) Payments.--Payments to owners and operators shall be made as
provided in the programs that are combined as part of a Farmland
Stewardship Agreement. At the election of the owner or operator,
payments may be collected and combined together by the designated state
agency and issued to the owner or operator in equal annual payments
over the term of the agreement. Payments for other services rendered by
the owner or operator shall be made as follows--
``(1) In general.--Programs that contain term or permanent
easements may be combined into a Farmland Stewardship
Agreement. Except for portions of a property affected by
easements, Farmland Stewardship Agreements shall provide no
interest in property and shall be solely contracts for specific
services. The fees paid shall be based on the services
provided. Compensation shall include--
``(A) Annual base payment.--All owners or operators
enrolled in a Farmland Stewardship Agreement shall
receive an annual base payment, at a rate to be
determined by the Secretary. The annual base payment
shall be considered by the Secretary to be satisfied if
the owner or operator receives annual payments from
another conservation program that has been incorporated
into the Farmland Stewardship Agreement. In addition,
owners and operators shall receive--
``(B) Direct fees for services.--These fees shall
be based on the cost of providing each service. These
fees may be set by adopting private sector market
prices for the performance of similar services or by
competitive bidding. Or, alternatively--
``(C) Annual per-acre stewardship fees.--These fees
shall be based on the services provided, or the
quantity of benefits provided, with higher fees for
greater benefits that can be quantified. Such values
shall be determined and set by the Secretary. Or,
alternatively--
``(D) Other incentives.--Other forms of
compensation acceptable to an owner or operator also
may be considered. These other forms of compensation
may include federal, state or local tax waivers,
credits, reductions or exclusions; priority processing
of permits from state and local agencies; consolidation
of permits from state and local agencies into a single
operating plan; extended-duration permits from state
and local agencies; enhanced eligibility and priority
listing for participation in cost-share programs, loan
programs, conservation programs and permanent
conservation easement or public purchase programs; and
priority access to technical assistance services
provided by federal and, where possible, local,
regional and state agencies.
``(g) Confidentiality of Data.--All information or data provided
to, obtained by or developed by the Secretary, or any contractor to the
Secretary or the designated state agency, for the purpose of providing
technical or financial assistance to owners or operators in connection
with the United States Department of Agriculture's conservation
programs, or in connection with the Farmland Stewardship Program, shall
be--
``(1) Kept confidential by all officers and employees of
the Department and the designated state agency;
``(2) Not released, disclosed, made public or in any manner
communicated to any agency, state or person outside the
Department and the designated state agency; and
``(3) Not subject to any other law that would require the
information or data to be released, disclosed, made public or
in any way communicated to any agency, state or person outside
the Department and designated state agency.
``(4) Any information or data related to an individual farm
owner or operator may be reported only in an anonymous,
aggregated form as currently provided under the Department's
National Agricultural Statistic Services.
``(h) State and Local Conservation Priorities.--To the maximum
extent practicable, agreements shall address the conservation
priorities established by the State and locality in which the eligible
agricultural land are located. The Secretary may adopt for this purpose
a pre-existing state or regional conservation plan or strategy that
maps economically and ecologically important land, including a plan
developed pursuant to planning requirements under Title VIII of the
2001 Interior Appropriations Act and Title IX of the 2001 Commerce,
Justice, State Appropriations Act.
``(i) Watershed Enhancement.--To the extent practicable, the
Secretary shall encourage the development of Farmland Stewardship
Program applications on a watershed basis.
``SEC. 1238C. PARTNERSHIP APPROACH TO PROGRAM.
``(a) Authority of Secretary Exercised Through Partnerships.--The
Secretary may administer agreements under the Farmland Stewardship
Program in partnership with other Federal, State, and local agencies
whose programs are incorporated into the Program under section 1238A,
and in partnership with state departments of agriculture or other
designated state agencies.
``(b) Designation and Use of Contracting Agencies.--Subject to
subsection (c), the Secretary may authorize a local conservation
district, resource conservation and development council, extension
service office, state-chartered stewardship entity, nonprofit
organization, local office of the Department of Agriculture, or other
participating government agency to enter into and administer agreements
under the Program as a contracting agency on behalf of the Secretary.
``(c) Conditions of Designation.--The Secretary may designate an
eligible district or office as a contracting agency under subsection
(b) only if the district or office--
``(1) submits a written request for such designation to the
Secretary;
``(2) affirms that it is willing to follow all guidelines
for executing and administering an agreement, as promulgated by
the Secretary;
``(3) demonstrates to the satisfaction of the Secretary
that it has established working relationships with owners and
operators of eligible agricultural land, and based on the
history of these working relationships, demonstrates that it
has the ability to work with owners and operators of eligible
agricultural land in a cooperative manner;
``(4) affirms its responsibility for preparing all
documentation for the agreement, negotiating its terms with an
owner or operator, monitoring compliance, making annual reports
to the Secretary, and administering the agreement throughout
its full term; and
``(5) demonstrates to the satisfaction of the Secretary
that it has or will have the necessary staff resources and
expertise to carry out its responsibilities under paragraphs
(3) and (4).
``(d) Delegation of Responsibility.--The Secretary may delegate
responsibility for reviewing and approving applications from local
contracting agencies to the state department of agriculture or other
designated state agency in the state in which the property is located,
provided that the designated agency follows the criteria for reviewing
and approving applications as established by the Secretary and consults
with the agencies with management authority and responsibility for the
resources affected on properties on which Farmland Stewardship
Agreements are negotiated and assembled.
``SEC. 1238D. PARTICIPATION OF OWNERS AND OPERATORS OF ELIGIBLE
AGRICULTURAL LAND.
``(a) Application and Approval Process.--To participate in the
Farmland Stewardship Program, an owner or operator of eligible
agricultural land shall--
``(1) submit to the Secretary an application indicating
interest in the Program and describing the owner's or
operator's property, its resources, and their ecological and
agricultural values;
``(2) submit to the Secretary the purpose and objectives of
the proposed agreement and a list of services to be provided,
or a management plan to be implemented, or both, under the
proposed agreement;
``(3) if the application and list are accepted by the
Secretary, enter into an agreement that details the purpose and
objectives of the agreement and the services to be provided, or
management plan to be implemented, or both, and requires
compliance with the other terms of the agreement.
``(b) Application on Behalf of an Owner or Operator.--A designated
contracting agency may submit the application required by subsection
(a) on behalf of an owner or operator if the contracting agency has
secured the consent of the owner or operator to enter into an
agreement.
``(c) Delegation of Responsibility.--The Secretary may delegate
responsibility for reviewing and approving applications from or on
behalf of an owner or operator to the state department of agriculture
or other designated agency in the state in which the property is
located, provided that the designated agency follows the criteria for
reviewing and approving applications as established by the Secretary
and consults with the agencies with management authority and
responsibility for the resources affected on properties on which
Farmland Stewardship Agreements are negotiated and assembled.
``SEC. 1238E. CREATION OF A FARMLAND STEWARDSHIP COUNCIL REGARDING
PROGRAM.
``(a) Appointment.--The Secretary shall appoint an advisory
committee to assist the Secretary in carrying out the Farmland
Stewardship Program.
``(b) In General.--The Committee shall be known as the Farmland
Stewardship Council and shall operate on the federal level in the same
manner, with the same roles and responsibilities and the same
membership requirements as provided in the policies and guidelines
governing State Technical Committees in Subpart B of Part 501 of the
United States Department of Agriculture's directives to the Natural
Resources Conservation Service regarding Conservation Program Delivery.
``(c) Duties.--The Farmland Stewardship Council shall cooperate in
all respects with the State Technical Committees and Resource Advisory
Committees in each state. In addition to the roles and responsibilities
set forth for these committees, the Farmland Stewardship Council shall
assist the Secretary in--
``(1) drafting such regulations as are necessary to carry
out the Program;
``(2) developing the documents necessary for executing
farmland stewardship agreements;
``(3) developing procedures and guidelines to facilitate
partnerships with other levels of government and nonprofit
organizations and assist contracting agencies in gathering data
and negotiating agreements;
``(4) designing criteria to consider applications submitted
under sections 1238C and 1238D;
``(5) providing assistance and training to designated state
agencies, project partners and contracting agencies;
``(6) assisting designated state agencies, project partners
and contracting agencies in combining together other
conservation programs into agreements;
``(7) tailoring the agreements to each individual property;
``(8) developing agreements that are highly flexible and
can be used to respond to and fit in with the conservation
needs and opportunities on any property in the United States;
``(9) developing a methodology for determining a fair
market price in each state for each service rendered by a
private owner or operator under a Farmland Stewardship
Agreement;
``(10) developing guidelines for administering the Farmland
Stewardship Program on a national basis that respond to the
conservation needs and opportunities in each state and in each
rural community in which Farmland Stewardship Agreements may be
implemented;
``(11) monitoring progress under the agreements; and
``(12) reviewing and recommending possible modifications,
additions, adaptations, improvements, enhancements, or other
changes to the Program to improve the way in which the program
operates.
``(d) Membership.--The Farmland Stewardship Council shall have the
same membership requirements as the State Technical Committees, except
that C
``(1) All participating members must have offices located
in the Washington, D.C. metropolitan area;
``(2) The list of members representing `Federal Agencies
and Other Groups Required by Law' shall be expanded to include
all federal agencies whose programs might be included in
Farmland Stewardship Program;
``(3) State agency representation shall be provided by the
organizations located in the Washington, D.C. metropolitan area
representing state agencies and shall include individuals from
organizations representing wetland managers, environmental
councils, fish and wildlife agencies, counties, resource and
conservation development councils, state conservation agencies,
state departments of agriculture, state foresters, and
governors; and
``(4) Private Interest Membership shall be comprised of 21
members representing the principal agricultural commodity
groups, farm organizations, national forestry associations,
woodland owners, conservation districts, rural stewardship
organizations, and up to a maximum of six (6) conservation and
environment organizations, including organizations with an
emphasis on wildlife, rangeland management and soil and water
conservation.
``(5) The Secretary shall appoint one of the Private
Interest Members to serve as chair. The Private Interest
Members shall appoint another member to serve as co-chair.
``(6) The Secretary shall follow equal opportunity
practices in making appointments to the Farmland Stewardship
Council. To ensure that recommendations of the Council take
into account the needs of the diverse groups served by the
United States Department of Agriculture, membership will
include, to the extent practicable, individuals with
demonstrated ability to represent minorities, women, and
persons with disabilities.
``(e) Personnel Costs.--The technical assistance funds designated
in Sec. 1238A(g)(1)(B) may be used to provide staff positions and
support for the Farmland Stewardship Council to--
``(1) carry out its duties as provided in subsection (c);
``(2) ensure communication and coordination with all
federal agencies, state organizations and Private Interest
Members on the council, and the constituencies represented by
these agencies, organizations and members;
``(3) ensure communication and coordination with the State
Technical Committees and Resource Advisory Committees in each
state;
``(4) solicit input from agricultural producers and owners
and operators of private forestry operations and woodland
through the organizations represented on the council and other
organizations, as necessary; and
``(5) take into consideration the needs and interests of
producers of different agricultural commodities and forest
products in different regions of the nation.
``(6) Representatives of federal agencies and state
organizations shall serve without additional compensation,
except for reimbursement of travel expenses and per diem costs
which are incurred as a result of their Council
responsibilities and service.
``(7) Payments may be made to the organizations serving as
Private Interest Members for the purposes of providing staff
and support to carry out paragraphs (1) through (5). The
amounts and duration of these payments and the number of staff
positions to be created within Private Interest Member
organizations to carry out these duties shall be determined by
the Secretary.
``(f) Reports.--The Farmland Stewardship Council shall annually
submit to the Secretary and make publicly available a report that
describes--
``(1) The progress achieved, the funds expended, the
purposes for which funds were expended and results obtained by
the council; and
``(2) The plans and objectives for future activities.
``(g) Termination.--The Farmland Stewardship Council shall remain
in force for as long as the Secretary administers the Farmland
Stewardship Program, except that the council will terminate in 2011
unless renewed by Congress in the next Farm Bill.
``SEC. 1238F. STATE BLOCK GRANT PROGRAM.
``(a) In General.--The Secretary of Agriculture may provide
agricultural stewardship block grants on an annual basis to state
departments of agriculture as a means of providing assistance and
support, cost-share payments, incentive payments, technical assistance
or education to agricultural producers and owners and operators of
agriculture, silviculture, aquaculture, horticulture or equine
operations for environmental enhancements, best management practices,
or air and water quality improvements addressing resource concerns.
Under the block grant program, states shall have maximum flexibility
to--
``(1) Address threats to soil, air, water and related
natural resources including grazing land, wetland and wildlife
habitats;
``(2) Comply with state and federal environmental laws;
``(3) Make beneficial, cost-effective changes to cropping
systems; grazing management; nutrient, pest, or irrigation
management; land uses; or other measures needed to conserve and
improve soil, water, and related natural resources; and
``(4) Implement other practices or obtain other services to
benefit the public through Farmland Stewardship Agreements.
``(b) Program Application.--A state department of agriculture, in
collaboration with other state and local agencies, conservation
districts, tribes, partners or organizations, may submit an application
to the Secretary requesting approval for an agricultural stewardship
block grant program. The Secretary shall approve the grant request if
the program proposed by the state maintains or improves the state's
natural resources, and the state has the capability to implement the
agricultural stewardship program. Upon approval of a stewardship
program submitted by a state department of agriculture, the Secretary
shall--
``(1) Allocate funds to the state for administration of the
program, and
``(2) Enter into a memorandum of understanding with the
state department of agriculture specifying the state's
responsibilities in carrying out the program and the amount of
the block grant that shall be provided to the state on an
annual basis.
``(c) Participation.--A state department of agriculture may choose
to operate the block grant program, may collaborate with another local,
state or federal agency, conservation district or tribe in operating
the program, or may delegate responsibility for the program to another
local, state or federal agency, such as the state office of the United
States Department of Agriculture, Natural Resources Conservation
Service, or the state conservation district agency.
``(d) Coordination.--A state department of agriculture may
establish an agricultural stewardship planning committee, or other
advisory body, or expand the authority of an existing body, to design,
develop and implement the state's agricultural stewardship block grant
program. Such planning committee or advisory committee shall cooperate
fully with the Farmland Stewardship Council established in Sec. 1238E
and the State Technical Committee and Resource Advisory Committee in
the state.
``(e) Delivery.--The state department of agriculture, or other
designated agency, shall administer the stewardship block grants
through existing delivery systems, infrastructure or processes,
including contracts, cooperative agreements, and grants with local,
state and federal agencies that address resource concerns and were
prioritized and developed in cooperation with locally-led advisory
groups.
``(f) Strategic Plans.--The state department of agriculture may
collaborate with a local advisory or planning committee to develop a
state strategic plan for the enhancement and protection of land, air,
water and wildlife through resource planning. The state strategic plan
shall be submitted to the Secretary annually in a report on the
implementation of projects, activities, and other measures under the
block grant program. In general, state strategic plans shall include--
``(1) A description of goals and objectives, including
outcome-related goals for designated program activities;
``(2) A description of how the goals and objectives are to
be achieved, including a description of the operational
processes, skills and technologies, and the human capital,
information and other resources required to meet the goals and
objectives;
``(3) A description of performance indicators to be used in
measuring or assessing the relevant output service levels and
outcomes of the program activities; and
``(4) A description of the program evaluation to be used in
comparing actual results with established goals and objectives.
``(g) Annual Reports.--The state department of agriculture shall
annually submit to the Secretary and make publicly available a report
that describes--
``(1) The progress achieved, the funds expended, the
purposes for which funds were expended and monitoring results
obtained by the agricultural stewardship planning committee or
local advisory group, where applicable; and
``(2) The plans and objectives of the State for future
activities under the program.
``(h) Coordination With Federal Agencies.--To the maximum extent
possible, the Secretary shall coordinate with other federal departments
and agencies to acknowledge and ensure that the block grant program is
consistent with and is meeting the needs and desired public benefits of
other federal programs on a state-by-state basis.
``(i) Payments.--The agricultural stewardship program may be used
as a means of providing compensation to owners and operators for
implementing on-farm practices that enhance environmental goals. The
type of financial assistance may be in the form of cost-share payments,
incentive payments or Farmland Stewardship Agreements, as determined by
guidelines established by the state department of agriculture and the
agricultural stewardship planning committee.
``(j) Program Expenditures.--States shall have flexibility to
target resources where needed, including the ability to allocate
dollars between payments to owners and operators or technical
assistance based upon needs and priorities.
``(k) Method of Payment.--A state department of agriculture may
collaborate with the agricultural stewardship planning committee or
other local advisory group to determine payment levels and methods for
individual program activities and projects, including any conditions,
limitations or restrictions. Payments may be made--
``(1) To compensate for a verifiable or measurable loss;
``(2) Under a binding agreement providing for payments to
carry out specific activities, measures, practices or services
prioritized by the state department of agriculture, the
agricultural stewardship planning committee or a local advisory
board; or
``(3) To fund portions of projects and measures to
complement other federal programs, including the Conservation
Reserve Program, the Environmental Quality Incentives Program,
the Wetlands Reserve Program, the Forestry Incentives Program,
the Farmland Protection Program, and the Wildlife Habitat
Incentives Program.''.
SEC. 257. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14(h) of the Watershed Protection and Flood Prevention Act
(16 U.S.C. 1012(h)) is amended--
(1) by adding ``and'' at the end of paragraph (1); and
(2) by striking all that follows paragraph (1) and
inserting the following:
``(2) $15,000,000 for fiscal year 2002 and each succeeding
fiscal year.''.
SEC. 258. PROVISION OF ASSISTANCE FOR REPAUPO CREEK TIDE GATE AND DIKE
RESTORATION PROJECT, NEW JERSEY.
Notwithstanding section 403 of the Agricultural Credit Act of 1978
(16 U.S.C. 2203), the Secretary of Agriculture, acting through the
Natural Resources Conservation Service, shall provide assistance for
planning and implementation of the Repaupo Creek Tide Gate and Dike
Restoration Project in the State of New Jersey.
SEC. 259. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
Section 1256 of the Food Security Act of 1985 (16 U.S.C. 2101 note)
is amended to read as follows:
``SEC. 1256. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
``(a) In General.--The Secretary shall establish a national
grassroots water protection program to more effectively use onsite
technical assistance capabilities of each State rural water association
that, as of the date of enactment of the Farm Security Act of 2001,
operates a wellhead or groundwater protection program in the State.
``(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each fiscal
year.''.
Subtitle G--Repeals
SEC. 261. PROVISIONS OF THE FOOD SECURITY ACT OF 1985.
(a) Wetlands Mitigation Banking Program.--Section 1222 of the Food
Security Act of 1985 (16 U.S.C. 3822) is amended by striking subsection
(k).
(b) Conservation Reserve Program.--
(1) Repeals.--(A) Section 1234(f) of such Act (16 U.S.C.
3834(f)) is amended by striking paragraph (3) and by
redesignating paragraph (4) as paragraph (3).
(B) Section 1236 of such Act (16 U.S.C. 3836) is repealed.
(2) Conforming amendments.--(A) Section 1232(a)(5) of such
Act (16 U.S.C. 3832(a)(5)) is amended by striking ``in addition
to the remedies provided under section 1236(d),''.
(B) Section 1234(d)(4) of such Act (16 U.S.C. 3834(d)(4))
is amended by striking ``subsection (f)(4)'' and inserting
``subsection (f)(3)''.
(c) Wetlands Reserve Program.--Section 1237D(c) of such Act (16
U.S.C. 3837d(c)) is amended by striking paragraph (3).
(d) Environmental Easement Program.--
(1) Repeal.--Chapter 3 of subtitle D of title XII of such
Act (16 U.S.C. 3839-3839d) is repealed.
(2) Conforming amendment.--Section 1243(b)(3) of such Act
(16 U.S.C. 3843(b)(3)) is amended by striking ``or 3''.
(e) Conservation Farm Option.--Chapter 5 of subtitle D of title XII
of such Act (16 U.S.C. 3839bb) is repealed.
SEC. 262. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION ACT.
Subtitle F of title III of the Federal Agriculture Improvement and
Reform Act of 1996 (16 U.S.C. 5801-5809) is repealed.
TITLE III--TRADE
SEC. 301. MARKET ACCESS PROGRAM.
Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C.
5641(c)(1)) is amended--
(1) by striking ``and not more'' and inserting ``not
more'';
(2) by inserting ``and not more than $180,000,000 for each
of fiscal years 2002 through 2011,'' after ``2002,''; and
(3) by striking ``2002'' and inserting ``2001''.
SEC. 302. FOOD FOR PROGRESS.
(a) In General.--Subsections (f)(3), (g), (k), and (l)(1) of
section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) are each
amended by striking ``2002'' and inserting ``2011''.
(b) Increase in Funding.--Section 1110(l)(1) of the Food Security
Act of 1985 (7 U.S.C. 1736o(l)(1)) is amended--
(1) by striking ``2002'' and inserting ``2011''; and
(2) by striking ``$10,000,000'' and inserting
``$15,000,000.
(c) Exclusion From Limitation.--Section 1110(e)(2) of the Food
Security Act of 1985 (7 U.S.C. 1736o(e)(2)) is amended by inserting ``,
and subsection (g) does not apply to such commodities furnished on a
grant basis or on credit terms under title I of the Agricultural Trade
Development Act of 1954'' before the final period.
(d) Transportation Costs.--Section 1110(f)(3) of the Food Security
Act of 1985 (7 U.S.C. 1736o(f)(3)) is amended by striking
``$30,000,000'' and inserting ``$100,000,000''.
(e) Amounts of Commodities.--Section 1110(g) of the Food Security
Act of 1985 (7 U.S.C. 1736o(g)) is amended by striking ``500,000'' and
inserting ``1,000,000''.
(f) Multiyear Basis.--Section 1110(j) of the Food Security Act of
1985 (7 U.S.C. 1736o(j)) is amended--
(1) by striking ``may'' and inserting ``is encouraged'';
and
(2) by inserting ``to'' before ``approve''.
(g) Monetization.--Section 1110(l)(3) of the Food Security Act of
1985 (7 U.S.C. 1736o(l)(3)) is amended by striking ``local currencies''
and inserting ``proceeds''.
(h) New Provisions.--Section 1110 of the Food Security Act of 1985
(7 U.S.C. 1736o) is amended by adding at the end the following:
``(p) The Secretary is encouraged to finalize program agreements
and resource requests for programs under this section before the
beginning of the relevant fiscal year. By November 1 of the relevant
fiscal year, the Secretary shall provide to the Committee on
Agriculture and the Committee on International Relations of the House
of Representatives, and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a list of approved programs, countries, and
commodities, and the total amounts of funds approved for transportation
and administrative costs, under this section.''.
SEC. 303. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY COUNTRIES.
(a) Use of Currencies.--Section 416(b)(7)(D) of the Agricultural
Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
(1) in clauses (i) and (iii), by striking ``foreign
currency'' each place it appears;
(2) in clause (ii)--
(A) by striking ``Foreign currencies'' and
inserting ``Proceeds''; and
(B) by striking ``foreign currency''; and
(3) in clause (iv)--
(A) by striking ``Foreign currency proceeds'' and
inserting ``Proceeds'';
(B) by striking ``country of origin'' the second
place it appears and all that follows through ``as
necessary to expedite'' and inserting ``country of
origin as necessary to expedite'';
(C) by striking ``; or'' and inserting a period;
and
(D) by striking subclause (II).
(b) Implementation of Agreements.--Section 416(b)(8)(A) of the
Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)(A)) is amended--
(1) by inserting ``(i)'' after ``(A)''; and
(2) by adding at the end the following new clauses:
``(ii) The Secretary shall publish in the Federal Register, not
later than October 31 of each fiscal year, an estimate of the
commodities that shall be available under this section for that fiscal
year.
``(iii) The Secretary is encouraged to finalize program agreements
under this section not later than December 31 of each fiscal year.''.
SEC. 304. EXPORT ENHANCEMENT PROGRAM.
Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 (7
U.S.C. 5651(e)(1)(G)) is amended by inserting ``and for each fiscal
year thereafter through fiscal year 2011'' after ``2002''.
SEC. 305. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) In General.--Section 703 of the Agricultural Trade Act of 1978
(7 U.S.C. 5723) is amended--
(1) by inserting ``(a) Prior Years.--'' before ``There'';
(2) by striking ``2002'' and inserting ``2001''; and
(3) by adding at the end the following new subsection:
``(b) Fiscal 2002 and Later.--For each of fiscal years 2002 through
2011 there are authorized to be appropriated such sums as may be
necessary to carry out this title, and, in addition to any sums so
appropriated, the Secretary shall use $37,000,000 of the funds of, or
an equal value of the commodities of, the Commodity Credit Corporation
to carry out this title.''.
(b) Value Added Products.--
(1) In general.--Section 702(a) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5721 et seq.) is amended by inserting ``,
with a significant emphasis on the importance of the export of
value-added United States agricultural products into emerging
markets'' after ``products''.
(2) Report to congress.--Section 702 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5722) is amended by adding at the
end the following:
``(c) Report to Congress.--
``(1) In general.--The Secretary shall report annually to
appropriate congressional committees the amount of funding
provided, types of programs funded, the value added products
that have been targeted, and the foreign markets for those
products that have been developed.
``(2) Definition.--In this subsection, the term
`appropriate congressional committees' means--
``(A) the Committee on Agriculture and the
Committee on International Relations of the House of
Representatives; and
``(B) the Committee on Agriculture, Nutrition, and
Forestry and the Committee on Foreign Relations of the
Senate.''.
SEC. 306. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Reauthorization.--Section 211(b)(1) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking ``2002'' and
inserting ``2011''.
(b) Processed and High Value Products.--Section 202(k)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by
striking ``, 2001, and 2002'' and inserting ``through 2011''.
SEC. 307. FOOD FOR PEACE (PUBLIC LAW 480).
The Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1691 et seq.) is amended--
(1) in section 2 (7 U.S.C. 1691), by striking paragraph (2)
and inserting the following:
``(2) promote broad-based, equitable, and sustainable
development, including agricultural development as well as
conflict prevention;'';
(2) in section 202(e)(1) (7 U.S.C. 1722(e)(1)), by striking
``not less than $10,000,000, and not more than $28,000,000''
and inserting ``not less than 5 percent and not more than 10
percent of such funds'';
(3) in section 203(a) (7 U.S.C. 1723(a)), by striking ``the
recipient country, or in a country'' and inserting ``one or
more recipient countries, or one or more countries'';
(4) in section 203(c) (7 U.S.C. 1723(c))--
(A) by striking ``foreign currency''; and
(B) by striking ``the recipient country, or in a
country'' and inserting ``one or more recipient
countries, or one or more countries'';
(5) in section 203(d) (7 U.S.C. 1723(d))--
(A) by striking ``Foreign currencies'' and
inserting ``Proceeds'';
(B) in paragraph (2)--
(i) by striking ``income generating'' and
inserting ``income-generating''; and
(ii) by striking ``the recipient country or
within a country'' and inserting ``one or more
recipient countries, or one or more
countries''; and
(C) in paragraph (3), by inserting a comma after
``invested'' and ``used'';
(6) in section 204(a) (7 U.S.C. 1724(a))--
(A) by striking ``1996 through 2002'' and inserting
``2002 through 2011''; and
(B) by striking ``2,025,000'' and inserting
``2,250,000'';
(7) in section 205(f) (7 U.S.C. 1725(f)), by striking
``2002'' and inserting ``2011'';
(8) by striking section 206 (7 U.S.C. 1726);
(9) in section 207(a) (7 U.S.C. 1726a(a))--
(A) by redesignating paragraph (2) as paragraph
(3); and
(B) by striking paragraph (1) and inserting the
following:
``(1) Recipient countries.--A proposal to enter into a non-
emergency food assistance agreement under this title shall
identify the recipient country or countries subject to the
agreement.
``(2) Time for decision.--Not later than 120 days after
receipt by the Administrator of a proposal submitted by an
eligible organization under this title, the Administrator shall
make a decision concerning such proposal.'';
(10) in section 208(f), by striking ``2002'' and inserting
``2011'';
(11) in section 403 (7 U.S.C. 1733), by inserting after
subsection (k) the following:
``(l) Sales Procedures.--Subsections (b) and (h) shall apply to
sales of commodities to generate proceeds for titles II and III of this
Act, section 416(b) of the Agricultural Act of 1949, and section 1110
of the Food and Security Act of 1985. Such sales transactions may be in
United States dollars and other currencies.
``(m) Regulations and Guidance.--As soon as practicable after the
date of enactment of this subsection, the Administrator of the Agency
for International Development and the Secretary shall jointly modify
regulations and guidance of the Administrator and Secretary relating to
private voluntary organizations and cooperatives to--
``(1) reflect performance-based standards;
``(2) eliminate micromanagement; and
``(3) recognize institutional capabilities and best
practices.'';
(12) in section 407(c)(4), by striking ``2001 and 2002''
and inserting ``2001 through 2011'';
(13) in section 407(c)(1) (7 U.S.C. 1736a(c)(1))--
(A) by striking ``The Administrator'' and inserting
``(A) The Administrator''; and
(B) by adding at the end the following:
``(B) In the case of commodities made available for
nonemergency assistance under title II for least developed
countries that meet the poverty and other eligibility criteria
established by the International Bank for Reconstruction and
Development for financing under the International Development
Association, the Administrator may pay the transportation costs
incurred in moving the commodities from designated points of
entry or ports of entry abroad to storage and distribution
sites and associated storage and distribution costs.''.
(14) in section 408, by striking ``2002'' and inserting
``2011''; and
(15) in section 501(c), by striking ``2002'' and inserting
``2011''.
SEC. 308. EMERGING MARKETS.
Section 1542 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5622 note) is amended--
(1) in subsections (a) and (d)(1)(A)(i), by striking
``2002'' and inserting ``2011''; and
(2) in subsection (d)(1)(H), by striking ``$10,000,000 in
any fiscal year'' and inserting ``$13,000,000 for each of
fiscal years 2002 through 2011''.
SEC. 309. BILL EMERSON HUMANITARIAN TRUST.
Subsections (b)(2)(B)(i), (h)(1), and (h)(2) of section 302 of the
Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) are each amended
by striking ``2002'' and inserting ``2011''.
SEC. 310. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) Establishment.--The Secretary of Agriculture shall establish an
export assistance program (referred to in this section as the
``program'') to address unique barriers that prohibit or threaten the
export of United States specialty crops.
(b) Purpose.--The program shall provide direct assistance through
public and private sector projects and technical assistance to remove,
resolve, or mitigate sanitary and phytosanitary and related barriers to
trade.
(c) Priority.--The program shall address time sensitive and
strategic market access projects based on--
(1) trade effect on market retention, market access, and
market expansion; and
(2) trade impact.
(d) Funding.--The Secretary shall make available $3,000,000 for
each of fiscal years 2002 through 2011 of the funds of, or an equal
value of commodities owned by, the Commodity Credit Corporation.
SEC. 311. FARMERS FOR AFRICA AND CARIBBEAN BASIN PROGRAM.
(a) Findings.--Congress finds the following:
(1) Many African farmers and farmers in Caribbean Basin
countries use antiquated techniques to produce their crops,
which result in poor crop quality and low crop yields.
(2) Many of these farmers are losing business to farmers in
European and Asian countries who use advanced planting and
production techniques and are supplying agricultural produce to
restaurants, resorts, tourists, grocery stores, and other
consumers in Africa and Caribbean Basin countries.
(3) A need exists for the training of African farmers and
farmers in Caribbean Basin countries and other developing
countries in farming techniques that are appropriate for the
majority of eligible farmers in African or Caribbean countries,
including standard growing practices, insecticide and
sanitation procedures, and other farming methods that
will produce increased yields of more nutritious and healthful crops.
(4) African-American and other American farmers, as well as
banking and insurance professionals, are a ready source of
agribusiness expertise that would be invaluable for African
farmers and farmers in Caribbean Basin countries.
(5) A United States commitment is appropriate to support
the development of a comprehensive agricultural skills training
program for these farmers that focuses on--
(A) improving knowledge of insecticide and
sanitation procedures to prevent crop destruction;
(B) teaching modern farming techniques, including
the identification and development of standard growing
practices and the establishment of systems for
recordkeeping, that would facilitate a continual
analysis of crop production;
(C) the use and maintenance of farming equipment
that is appropriate for the majority of eligible
farmers in African or Caribbean Basin countries;
(D) expansion of small farming operations into
agribusiness enterprises through the development and
use of village banking systems and the use of
agricultural risk insurance pilot products, resulting
in increased access to credit for these farmers; and
(E) marketing crop yields to prospective purchasers
(businesses and individuals) for local needs and
export.
(6) The participation of African-American and other
American farmers and American agricultural farming specialists
in such a training program promises the added benefit of
improving access to African and Caribbean Basin markets for
American farmers and United States farm equipment and products
and business linkages for United States insurance providers
offering technical assistance on, among other things,
agricultural risk insurance products.
(7) Existing programs that promote the exchange of
agricultural knowledge and expertise through the exchange of
American and foreign farmers have been effective in promoting
improved agricultural techniques and food security, and, thus,
the extension of additional resources to such farmer-to- farmer
exchanges is warranted.
(b) Definitions.--In this section:
(1) Agricultural farming specialist.--The term
``agricultural farming specialist'' means an individual trained
to transfer information and technical support relating to
agribusiness, food security, the mitigation and alleviation of
hunger, the mitigation of agricultural and farm risk,
maximization of crop yields, agricultural trade, and other
needs specific to a geographical location as determined by the
President.
(2) Caribbean basin country.--The term ``Caribbean Basin
country'' means a country eligible for designation as a
beneficiary country under section 212 of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702).
(3) Eligible farmer.--The term ``eligible farmer'' means an
individual owning or working on farm land (as defined by a
particular country's laws relating to property) in the sub-
Saharan region of the continent of Africa, in a Caribbean Basin
country, or in any other developing country in which the
President determines there is a need for farming expertise or
for information or technical support described in paragraph
(1).
(4) Program.--The term ``Program'' means the Farmers for
Africa and Caribbean Basin Program established under this
section.
(c) Establishment of Program.--The President shall establish a
grant program, to be known as the ``Farmers for Africa and Caribbean
Basin Program'', to assist eligible organizations in carrying out
bilateral exchange programs whereby African-American and other American
farmers and American agricultural farming specialists share technical
knowledge with eligible farmers regarding--
(1) maximization of crop yields;
(2) use of agricultural risk insurance as financial tools
and a means of risk management (as allowed by Annex II of the
World Trade Organization rules);
(3) expansion of trade in agricultural products;
(4) enhancement of local food security;
(5) the mitigation and alleviation of hunger;
(6) marketing agricultural products in local, regional, and
international markets; and
(7) other ways to improve farming in countries in which
there are eligible farmers.
(d) Eligible Grantees.--The President may make a grant under the
Program to--
(1) a college or university, including a historically black
college or university, or a foundation maintained by a college
or university; and
(2) a private organization or corporation, including
grassroots organizations, with an established and demonstrated
capacity to carry out such a bilateral exchange program.
(e) Terms of Program.--(1) It is the goal of the Program that at
least 1,000 farmers participate in the training program by December 31,
2005, of which 80 percent of the total number of participating farmers
will be African farmers or farmers in Caribbean Basin countries and 20
percent of the total number of participating farmers will be American
farmers.
(2) Training under the Program will be provided to eligible farmers
in groups to ensure that information is shared and passed on to other
eligible farmers. Eligible farmers will be trained to be specialists in
their home communities and will be encouraged not to retain enhanced
farming technology for their own personal enrichment.
(3) Through partnerships with American businesses, the Program will
utilize the commercial industrial capability of businesses dealing in
agriculture to train eligible farmers on farming equipment that is
appropriate for the majority of eligible farmers in African or
Caribbean Basin countries and to introduce eligible farmers to the use
of insurance as a risk management tool.
(f) Selection of Participants.--(1) The selection of eligible
farmers, as well as African-American and other American farmers and
agricultural farming specialists, to participate in the Program shall
be made by grant recipients using an application process approved by
the President.
(2) Participating farmers must have sufficient farm or agribusiness
experience and have obtained certain targets regarding the productivity
of their farm or agribusiness.
(g) Grant Period.--The President may make grants under the Program
during a period of 5 years beginning on October 1 of the first fiscal
year for which funds are made available to carry out the Program.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $25,000,000 for each of fiscal
years 2002 through 2011.
SEC. 312. GEORGE MCGOVERN-ROBERT DOLE INTERNATIONAL FOOD FOR EDUCATION
AND CHILD NUTRITION PROGRAM.
(a) In General.--The President may, subject to subsection (j),
direct the procurement of commodities and the provision of financial
and technical assistance to carry out--
(1) preschool and school feeding programs in foreign
countries to improve food security, reduce the incidence of
hunger, and improve literacy and primary education,
particularly with respect to girls; and
(2) maternal, infant, and child nutrition programs for
pregnant women, nursing mothers, infants, and children who are
5 years of age or younger.
(b) Eligible Commodities and Cost Items.--Notwithstanding any other
provision of law--
(1) any agricultural commodity is eligible for distribution
under this section;
(2) as necessary to achieve the purposes of this section--
(A) funds may be used to pay the transportation
costs incurred in moving commodities (including
prepositioned commodities) provided under this section
from the designated points of entry or ports of entry
of one or more recipient countries to storage and
distribution sites in these countries, and associated
storage and distribution costs;
(B) funds may be used to pay the costs of
activities conducted in the recipient countries by a
nonprofit voluntary organization, cooperative, or
intergovernmental agency or organization that would
enhance the effectiveness of the activities implemented
by such entities under this section; and
(C) funds may be provided to meet the allowable
administrative expenses of private voluntary
organizations, cooperatives, or intergovernmental
organizations which are implementing activities under
this section; and
(3) for the purposes of this section, the term
``agricultural commodities'' includes any agricultural
commodity, or the products thereof, produced in the United
States.
(c) General Authorities.--The President shall designate one or more
Federal agencies to--
(1) implement the program established under this section;
(2) ensure that the program established under this section
is consistent with the foreign policy and development
assistance objectives of the United States; and
(3) consider, in determining whether a country should
receive assistance under this section, whether the government
of the country is taking concrete steps to improve the
preschool and school systems in its country.
(d) Eligible Recipients.--Assistance may be provided under this
section to private voluntary organizations, cooperatives,
intergovernmental organizations, governments and their agencies, and
other organizations.
(e) Procedures.--
(1) In general.--In carrying out subsection (a) the
President shall assure that procedures are established that--
(A) provide for the submission of proposals by
eligible recipients, each of which may include one or
more recipient countries, for commodities and other
assistance under this section;
(B) provide for eligible commodities and assistance
on a multi-year basis;
(C) ensure eligible recipients demonstrate the
organizational capacity and the ability to develop,
implement, monitor, report on, and provide
accountability for activities conducted under this
section;
(D) provide for the expedited development, review,
and approval of proposals submitted in accordance with
this section;
(E) ensure monitoring and reporting by eligible
recipients on the use of commodities and other
assistance provided under this section; and
(F) allow for the sale or barter of commodities by
eligible recipients to acquire funds to implement
activities that improve the food security of women and
children or otherwise enhance the effectiveness of
programs and activities authorized under this section.
(2) Priorities for program funding.--In carrying out
paragraph (1) with respect to criteria for determining the use
of commodities and other assistance provided for programs and
activities authorized under this section, the implementing
agency may consider the ability of eligible recipients to--
(A) identify and assess the needs of beneficiaries,
especially malnourished or undernourished mothers and
their children who are 5 years of age or younger, and
school-age children who are malnourished,
undernourished, or do not regularly attend school;
(B)(i) in the case of preschool and school-age
children, target low-income areas where children's
enrollment and attendance in school is low or girls'
enrollment and participation in preschool or school is
low, and incorporate developmental objectives for
improving literacy and primary education, particularly
with respect to girls; and
(ii) in the case of programs to benefit mothers and
children who are 5 years of age or younger, coordinate
supplementary feeding and nutrition programs with
existing or newly-established maternal, infant, and
children programs that provide health-needs
interventions, and which may include maternal,
prenatal, and postnatal and newborn care;
(C) involve indigenous institutions as well as
local communities and governments in the development
and implementation to foster local capacity building
and leadership; and
(D) carry out multiyear programs that foster local
self-sufficiency and ensure the longevity of recipient
country programs.
(f) Use of Food and Nutrition Service.--The Food and Nutrition
Service of the Department of Agriculture may provide technical advice
on the establishment of programs under subsection (a)(1) and on their
implementation in the field in recipient countries.
(g) Multilateral Involvement.--The President is urged to engage
existing international food aid coordinating mechanisms to ensure
multilateral commitments to, and participation in, programs like those
supported under this section. The President shall report annually to
the Committee on International Relations and the Committee on
Agriculture of the United States House of Representatives and the
Committee on Foreign Relations and the Committee on Agriculture,
Nutrition, and Forestry of the United States Senate on the commitments
and activities of governments, including the United States government,
in the global effort to reduce child hunger and increase school
attendance.
(h) Private Sector Involvement.--The President is urged to
encourage the support and active involvement of the private sector,
foundations, and other individuals and organizations in programs
assisted under this section.
(i) Requirement To Safeguard Local Production and Usual
Marketing.--The requirement of section 403(a) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1733(a) and 1733(h))
applies with respect to the availability of commodities under this
section.
(j) Funding.--
(1) In general.--There are authorized to be appropriated
such sums as may be necessary to carry out this section for
each of fiscal years 2002 through 2011. Nothing in this section
shall be interpreted to preclude the use of authorities in
effect before the date of the enactment of this Act to carry
out the ongoing Global Food for Education Initiative.
(2) Administrative expenses.--Funds made available to carry
out the purposes of this section may be used to pay the
administrative expenses of any agency of the Federal Government
implementing or assisting in the implementation of this
section.
SEC. 313. STUDY ON FEE FOR SERVICES.
(a) Study.--Not later than 1 year after the date of the enactment
of this Act, the Secretary shall provide a report to the designated
congressional committees on the feasibility of instituting a program
which would charge and retain a fee to cover the costs for providing
persons with commercial services performed abroad on matters within the
authority of the Department of Agriculture administered through the
Foreign Agriculture Service or any successor agency.
(b) Definition.--In this section, the term ``designated
congressional committees'' means the Committee on Agriculture and the
Committee on International Relations of the House of Representatives
and the Committee on Agriculture, Nutrition and Forestry of the Senate.
SEC. 314. NATIONAL EXPORT STRATEGY REPORT.
(a) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary of Agriculture shall provide to the
designated congressional committees a report on the policies and
programs that the Department of Agriculture has undertaken to implement
the National Export Strategy Report. The report shall contain a
description of the effective coordination of these policies and
programs through all other appropriate Federal agencies participating
in the Trade Promotion Coordinating Committee and the steps the
Department of Agriculture is taking to reduce the level of
protectionism in agricultural trade, to foster market growth, and to
improve the commercial potential of markets in both developed and
developing countries for United States agricultural commodities.
(b) Definition.--In this section, the term ``designated
congressional committees'' means the Committee on Agriculture and the
Committee on International Relations of the House of Representatives
and the Committee on Agriculture, Nutrition and Forestry of the Senate.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
SEC. 401. SIMPLIFIED DEFINITION OF INCOME.
Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is
amended--
(1) in paragraph (3)--
(A) by striking ``and (C)'' and inserting ``(C)'';
and
(B) by inserting after ``premiums,'' the following:
``and (D) to the extent that any other educational loans on which
payment is deferred, grants, scholarships, fellowships, veterans'
educational benefits, and the like, are required to be excluded under
title XIX of the Social Security Act, the state agency may exclude it
under this subsection,'';
(2) by striking ``and (15)'' and inserting ``(15)'';
(3) by inserting before the period at the end the
following:
``, (16) any state complementary assistance program payments that are
excluded pursuant to subsections (a) and (b) of section 1931 of title
XIX of the Social Security Act, and (17) at the option of the State
agency, any types of income that the State agency does not consider
when determining eligibility for cash assistance under a program funded
under part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) or medical assistance under section 1931 of the Social Security
Act (42 U.S.C. 1396u-1), except that this paragraph shall not authorize
a State agency to exclude earned income, payments under title I, II,
IV, X, XIV, or XVI of the Social Security Act, or such other types of
income whose consideration the Secretary determines essential to
equitable determinations of eligibility and benefit levels except to
the extent that those types of income may be excluded under other
paragraphs of this subsection''.
SEC. 402. STANDARD DEDUCTION.
Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1))
is amended--
(1) by striking ``of $134, $229, $189, $269, and $118'' and
inserting ``equal to 9.7 percent of the eligibility limit
established under section 5(c)(1) for fiscal year 2002 but not
more than 9.7 percent of the eligibility limit established
under section 5(c)(1) for a household of six for fiscal year
2002 nor less than $134, $229, $189, $269, and $118''; and
(2) by inserting before the period at the end the
following:
``, except that the standard deduction for Guam shall be
determined with reference to 2 times the eligibility limits
under section 5(c)(1) for fiscal year 2002 for the 48
contiguous states and the District of Columbia''.
SEC. 403. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM WELFARE.
(a) In General.--Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended by adding at the end the following:
``(s) Transitional Benefits Option.--
``(1) In general.--A State may provide transitional food
stamp benefits to a household that is no longer eligible to
receive cash assistance under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.).
``(2) Transitional benefits period.--Under paragraph (1), a
household may continue to receive food stamp benefits for a
period of not more than 6 months after the date on which cash
assistance is terminated.
``(3) Amount.--During the transitional benefits period
under paragraph (2), a household shall receive an amount equal
to the allotment received in the month immediately preceding
the date on which cash assistance is terminated. A household
receiving benefits under this subsection may apply for
recertification at any time during the transitional benefit
period. If a household reapplies, its allotment shall be
determined without regard to this subsection for all subsequent
months.
``(4) Determination of future eligibility.--In the final
month of the transitional benefits period under paragraph (2),
the State agency may--
``(A) require a household to cooperate in a
redetermination of eligibility to receive an
authorization card; and
``(B) renew eligibility for a new certification
period for the household without regard to whether the
previous certification period has expired.
``(5) Limitation.--A household sanctioned under section 6,
or for a failure to perform an action required by Federal,
State, or local law relating to such cash assistance program,
shall not be eligible for transitional benefits under this
subsection.''.
(b) Conforming Amendments.--(1) Section 3(c) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(c)) is amended by adding at the end the
following: ``The limits in this section may be extended until the end
of any transitional benefit period established under section 11(s).''.
(2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c))
is amended by striking ``No household'' and inserting ``Except in a
case in which a household is receiving transitional benefits during the
transitional benefits period under section 11(s), no household''.
SEC. 404. QUALITY CONTROL SYSTEMS.
(a) Targeted Quality Control System.--Section 16(c) of the Food
Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--
(1) in paragraph (1)(C)--
(A) in the matter preceding clause (i), by
inserting ``the Secretary determines that a 95 percent
statistical probability exists that for the 3d
consecutive year'' after ``year in which''; and
(B) in clause (i)(II)(aa)(bbb) by striking ``the
national performance measure for the fiscal year'' and
inserting ``10 percent'';
(2) in the 1st sentence of paragraph (4)--
(A) by striking ``or claim'' and inserting
``claim''; and
(B) by inserting ``or performance under the
measures established under paragraph (10),'' after
``for payment error,'';
(3) in paragraph (5), by inserting ``to comply with
paragraph (10) and'' before ``to establish'';
(4) in the 1st sentence of paragraph (6), by inserting
``one percentage point more than'' after ``measure that shall
be''; and
(5) by inserting at the end the following:
``(10)(A) In addition to the measures established under paragraph
(1), the Secretary shall measure the performance of State agencies in
each of the following regards--
``(i) compliance with the deadlines established under
paragraphs (3) and (9) of section 11(e); and
``(ii) the percentage of negative eligibility decisions
that are made correctly.
``(B) For each fiscal year, the Secretary shall make excellence
bonus payments of $1,000,000 each to the 5 States with the highest
combined performance in the 2 measures in subparagraph (A) and to the 5
States whose combined performance under the 2 measures in subparagraph
(A) most improved in such fiscal year.
``(C) For any fiscal year in which the Secretary determines that a
95 percent statistical probability exists that a State agency's
performance with respect to any of the 2 performance measures
established in subparagraph (A) is substantially worse than a level the
Secretary deems reasonable, other than for good cause shown, the
Secretary shall investigate that State agency's administration of the
food stamp program. If this investigation determines that the State's
administration has been deficient, the Secretary shall require the
State agency to take prompt corrective action.''.
(b) Implementation.--The amendment made by subsection (a)(5) shall
apply to all fiscal years beginning on or after October 1, 2001, and
ending before October 1, 2007. All other amendments made by this
section shall apply to all fiscal years beginning on or after October
1, 1999.
SEC. 405. SIMPLIFIED APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended
by inserting at the end the following:
``(l) Simplification of Systems.--The Secretary shall expend up to
$9,500,000 million in each fiscal year to pay 100 percent of the costs
of State agencies to develop and implement simple application and
eligibility determination systems.''.
SEC. 406. AUTHORIZATION OF APPROPRIATIONS.
(a) Employment and Training Programs.--Section 16(h)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
(1) in subparagraph (A)(vii) by striking ``fiscal year
2002'' and inserting ``each of the fiscal years 2003 through
2011''; and
(2) in subparagraph (B) by striking ``2002'' and inserting
``2011''.
(b) Cost Allocation.--Section 16(k)(3) of the Food Stamp Act of
1977 (7 U.S.C. 2025(k)(3)) is amended--
(1) in subparagraph (A) by striking ``2002'' and inserting
``2011''; and
(2) in subparagraph (B)(ii) by striking ``2002'' and
inserting ``2011''.
(c) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by
striking ``2002'' and inserting ``2011''.
(d) Outreach Demonstration Projects.--Section 17(i)(1)(A) of the
Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is amended by striking
``1992 through 2002'' and inserting ``2003 through 2011''.
(e) Authorization of Appropriations.--Section 18(a)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ``1996
through 2002'' and inserting ``2003 through 2011''.
(f) Puerto Rico.--Section 19(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2028(a)(1)) is amended--
(1) in subparagraph (A)--
(A) in clause (ii) by striking ``and'' at the end;
(B) in clause (iii) by adding ``and'' at the end;
and
(C) by inserting after clause (iii) the following:
``(iv) for each of fiscal years 2003 through 2011, the
amount equal to the amount required to be paid under this
subparagraph for the preceding fiscal year, as adjusted by the
percentage by which the thrifty food plan is adjusted under
section 3(o)(4) for the current fiscal year for which the
amount is determined under this clause;''; and
(2) in subparagraph (B)--
(A) by inserting ``(i)'' after ``(B)''; and
(B) by adding at the end the following:
``(ii) Notwithstanding subparagraph (A) and clause (i), the
Commonwealth may spend up to $6,000,000 of the amount required under
subparagraph (A) to be paid for fiscal year 2002 to pay 100 percent of
the cost to upgrade and modernize the electronic data processing system
used to provide such food assistance and to implement systems to
simplify the determination of eligibility to receive such
assistance.''.
(g) Territory of American Samoa.--Section 24 of the Food Stamp Act
of 1977 (7 U.S.C. 2033) is amended--
(1) by striking ``Effective October 1, 1995, from'' and
inserting ``From''; and
(2) by striking ``$5,300,000 for each of fiscal years 1996
through 2002'' and inserting ``$5,750,000 for fiscal year 2002
and $5,800,000 for each of fiscal years 2003 though 2011''.
(h) Assistance for Community Food Projects.--Section 25(b)(2) of
the Food Stamp Act of 1977 (7 U.S.C. 2034(b)(2)) is amended--
(1) in subparagraph (A) by striking ``and'' at the end;
(2) in subparagraph (B)--
(A) by striking ``2002'' and inserting ``2001'';
and
(B) by striking the period at the end and inserting
``; and''; and
(3) by inserting after subparagraph (B) the following:
``(C) $7,500,000 for each of the fiscal years 2002
through 2011.''.
(i) Availability of Commodities for the Emergency Food Assistance
Program.--Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 2036) is
amended--
(1) in subsection (a)--
(A) by striking ``1997 through 2002'' and inserting
``2002 through 2011''; and
(B) by striking ``$100,000,000'' and inserting
``$140,000,000''; and
(2) by adding at the end the following:
``(c) Use of Funds for Related Costs.--For each of the fiscal years
2002 through 2011, the Secretary shall use $10,000,000 of the funds
made available under subsection (a) to pay for the direct and indirect
costs of the States related to the processing, storing, transporting,
and distributing to eligible recipient agencies of commodities
purchased by the Secretary under such subsection and commodities
secured from other sources, including commodities secured by gleaning
(as defined in section 111 of the Hunger Prevention Act of 1988 (7
U.S.C. 612c note)).''.
(j) Special Effective Date.--The amendments made by subsections
(g), (h), and (i) shall take effect on October 1, 2001.
Subtitle B--Commodity Distribution
SEC. 441. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION
PROJECTS.
Section 1114(a) of the Agriculture and Food Act of 1981 (7 U.S.C.
1431e) is amended by striking ``2002'' and inserting ``2011''.
SEC. 442. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
The Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
note) is amended--
(1) in section 4(a) by striking ``1991 through 2002'' and
inserting ``2003 through 2011''; and
(2) in subsections (a)(2) and (d)(2) of section 5 by
striking ``1991 through 2002'' and inserting ``2003 through
2011''.
SEC. 443. EMERGENCY FOOD ASSISTANCE.
The 1st sentence of section 204(a)(1) of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended--
(1) by striking ``1991 through 2002'' and inserting ``2003
through 2011'';
(2) by striking ``administrative''; and
(3) by inserting ``storage,'' after ``processing,''.
Subtitle C--Miscellaneous Provisions
SEC. 461. HUNGER FELLOWSHIP PROGRAM.
(a) Short Title; Findings.--
(1) Short title.--This section may be cited as the
``Congressional Hunger Fellows Act of 2001''.
(2) Findings.--The Congress finds as follows:
(A) There is a critical need for compassionate
individuals who are committed to assisting people who
suffer from hunger as well as a need for such
individuals to initiate and administer solutions to the
hunger problem.
(B) Bill Emerson, the distinguished late
Representative from the 8th District of Missouri,
demonstrated his commitment to solving the problem of
hunger in a bipartisan manner, his commitment to public
service, and his great affection for the institution
and the ideals of the United States Congress.
(C) George T. (Mickey) Leland, the distinguished
late Representative from the 18th District of Texas,
demonstrated his compassion for those in need, his high
regard for public service, and his lively exercise of
political talents.
(D) The special concern that Mr. Emerson and Mr.
Leland demonstrated during their lives for the hungry
and poor was an inspiration for others to work toward
the goals of equality and justice for all.
(E) These two outstanding leaders maintained a
special bond of friendship regardless of political
affiliation and worked together to encourage future
leaders to recognize and provide service to others, and
therefore it is especially appropriate to honor the
memory of Mr. Emerson and Mr. Leland by creating a
fellowship program to develop and train the future
leaders of the United States to pursue careers in
humanitarian service.
(b) Establishment.--There is established as an independent entity
of the legislative branch of the United States Government the
Congressional Hunger Fellows Program (hereinafter in this section
referred to as the ``Program'').
(c) Board of Trustees.--
(1) In general.--The Program shall be subject to the
supervision and direction of a Board of Trustees.
(2) Members of the board of trustees.--
(A) Appointment.--The Board shall be composed of 6
voting members appointed under clause (i) and one
nonvoting ex officio member designated in clause (ii)
as follows:
(i) Voting members.--(I) The Speaker of the
House of Representatives shall appoint two
members.
(II) The minority leader of the House of
Representatives shall appoint one member.
(III) The majority leader of the Senate
shall appoint two members.
(IV) The minority leader of the Senate
shall appoint one member.
(ii) Nonvoting member.--The Executive
Director of the program shall serve as a
nonvoting ex officio member of the Board.
(B) Terms.--Members of the Board shall serve a term
of 4 years.
(C) Vacancy.--
(i) Authority of board.--A vacancy in the
membership of the Board does not affect the
power of the remaining members to carry out
this section.
(ii) Appointment of successors.--A vacancy
in the membership of the Board shall be filled
in the same manner in which the original
appointment was made.
(iii) Incomplete term.--If a member of the
Board does not serve the full term applicable
to the member, the individual appointed to fill
the resulting vacancy shall be appointed for
the remainder of the term of the predecessor of
the individual.
(D) Chairperson.--As the first order of business of
the first meeting of the Board, the members shall elect
a Chairperson.
(E) Compensation.--
(i) In general.--Subject to clause (ii),
members of the Board may not receive
compensation for service on the Board.
(ii) Travel.--Members of the Board may be
reimbursed for travel, subsistence, and other
necessary expenses incurred in carrying out the
duties of the program.
(3) Duties.--
(A) Bylaws.--
(i) Establishment.--The Board shall
establish such bylaws and other regulations as
may be appropriate to enable the Board to carry
out this section, including the duties
described in this paragraph.
(ii) Contents.--Such bylaws and other
regulations shall include provisions--
(I) for appropriate fiscal control,
funds accountability, and operating
principles;
(II) to prevent any conflict of
interest, or the appearance of any
conflict of interest, in the
procurement and employment actions
taken by the Board or by any officer or
employee of the Board and in the
selection and placement of individuals
in the fellowships developed under the
program;
(III) for the resolution of a tie
vote of the members of the Board; and
(IV) for authorization of travel
for members of the Board.
(iii) Transmittal to congress.--Not later
than 90 days after the date of the first
meeting of the Board, the Chairperson of the
Board shall transmit to the appropriate
congressional committees a copy of such bylaws.
(B) Budget.--For each fiscal year the program is in
operation, the Board shall determine a budget for the
program for that fiscal year. All spending by the
program shall be pursuant to such budget unless a
change is approved by the Board.
(C) Process for selection and placement of
fellows.--The Board shall review and approve the
process established by the Executive Director for the
selection and placement of individuals in the
fellowships developed under the program.
(D) Allocation of funds to fellowships.--The Board
of Trustees shall determine the priority of the
programs to be carried out under this section and the
amount of funds to be allocated for the Emerson and
Leland fellowships.
(d) Purposes; Authority of Program.--
(1) Purposes.--The purposes of the program are--
(A) to encourage future leaders of the United
States to pursue careers in humanitarian service, to
recognize the needs of people who are hungry and poor,
and to provide assistance and compassion for those in
need;
(B) to increase awareness of the importance of
public service; and
(C) to provide training and development
opportunities for such leaders through placement in
programs operated by appropriate organizations or
entities.
(2) Authority.--The program is authorized to develop such
fellowships to carry out the purposes of this section,
including the fellowships described in paragraph (3).
(3) Fellowships.--
(A) In general.--The program shall establish and
carry out the Bill Emerson Hunger Fellowship and the
Mickey Leland Hunger Fellowship.
(B) Curriculum.--
(i) In general.--The fellowships
established under subparagraph (A) shall
provide experience and training to develop the
skills and understanding necessary to improve
the humanitarian conditions and the lives of
individuals who suffer from hunger, including--
(I) training in direct service to
the hungry in conjunction with
community-based organizations through a
program of field placement; and
(II) experience in policy
development through placement in a
governmental entity or nonprofit
organization.
(ii) Focus of bill emerson hunger
fellowship.--The Bill Emerson Hunger Fellowship
shall address hunger and other humanitarian
needs in the United States.
(iii) Focus of mickey leland hunger
fellowship.--The Mickey Leland Hunger
Fellowship shall address international hunger
and other humanitarian needs.
(iv) Workplan.--To carry out clause (i) and
to assist in the evaluation of the fellowships
under paragraph (4), the program shall, for
each fellow, approve a work plan that
identifies the target objectives for the fellow
in the fellowship, including specific duties
and responsibilities related to those
objectives.
(C) Period of fellowship.--
(i) Emerson fellow.--A Bill Emerson Hunger
Fellowship awarded under this paragraph shall
be for no more than 1 year.
(ii) Leland fellow.--A Mickey Leland Hunger
Fellowship awarded under this paragraph shall
be for no more than 2 years. Not less than 1
year of the fellowship shall be dedicated to
fulfilling the requirement of subparagraph
(B)(i)(I).
(D) Selection of fellows.--
(i) In general.--A fellowship shall be
awarded pursuant to a nationwide competition
established by the program.
(ii) Qualification.--A successful applicant
shall be an individual who has demonstrated--
(I) an intent to pursue a career in
humanitarian service and outstanding
potential for such a career;
(II) a commitment to social change;
(III) leadership potential or
actual leadership experience;
(IV) diverse life experience;
(V) proficient writing and speaking
skills;
(VI) an ability to live in poor or
diverse communities; and
(VII) such other attributes as
determined to be appropriate by the
Board.
(iii) Amount of award.--
(I) In general.--Each individual
awarded a fellowship under this
paragraph shall receive a living
allowance and, subject to subclause
(II), an end-of-service award as
determined by the program.
(II) Requirement for successful
completion of fellowship.--Each
individual awarded a fellowship under
this paragraph shall be entitled to
receive an end-of-service award at an
appropriate rate for each month of
satisfactory service as determined by
the Executive Director.
(iv) Recognition of fellowship award.--
(I) Emerson fellow.--An individual
awarded a fellowship from the Bill
Emerson Hunger Fellowship shall be
known as an ``Emerson Fellow''.
(II) Leland fellow.--An individual
awarded a fellowship from the Mickey
Leland Hunger Fellowship shall be known
as a ``Leland Fellow''.
(4) Evaluation.--The program shall conduct periodic
evaluations of the Bill Emerson and Mickey Leland Hunger
Fellowships. Such evaluations shall include the following:
(A) An assessment of the successful completion of
the work plan of the fellow.
(B) An assessment of the impact of the fellowship
on the fellows.
(C) An assessment of the accomplishment of the
purposes of the program.
(D) An assessment of the impact of the fellow on
the community.
(e) Trust Fund.--
(1) Establishment.--There is established the Congressional
Hunger Fellows Trust Fund (hereinafter in this section referred
to as the ``Fund'') in the Treasury of the United States,
consisting of amounts appropriated to the Fund under subsection
(i), amounts credited to it under paragraph (3), and amounts
received under subsection (g)(3)(A).
(2) Investment of funds.--The Secretary of the Treasury
shall invest the full amount of the Fund. Each investment shall
be made in an interest bearing obligation of the United States
or an obligation guaranteed as to principal and interest by the
United States that, as determined by the Secretary in
consultation with the Board, has a maturity suitable for the
Fund.
(3) Return on investment.--Except as provided in subsection
(f)(2), the Secretary of the Treasury shall credit to the Fund
the interest on, and the proceeds from the sale or redemption
of, obligations held in the Fund.
(f) Expenditures; Audits.--
(1) In general.--The Secretary of the Treasury shall
transfer to the program from the amounts described in
subsection (e)(3) and subsection (g)(3)(A) such sums as the
Board determines are necessary to enable the program to carry
out the provisions of this section.
(2) Limitation.--The Secretary may not transfer to the
program the amounts appropriated to the Fund under subsection
(i).
(3) Use of funds.--Funds transferred to the program under
paragraph (1) shall be used for the following purposes:
(A) Stipends for fellows.--To provide for a living
allowance for the fellows.
(B) Travel of fellows.--To defray the costs of
transportation of the fellows to the fellowship
placement sites.
(C) Insurance.--To defray the costs of appropriate
insurance of the fellows, the program, and the Board.
(D) Training of fellows.--To defray the costs of
preservice and midservice education and training of
fellows.
(E) Support staff.--Staff described in subsection
(g).
(F) Awards.--End-of-service awards under subsection
(d)(3)(D)(iii)(II).
(G) Additional approved uses.--For such other
purposes that the Board determines appropriate to carry
out the program.
(4) Audit by gao.--
(A) In general.--The Comptroller General of the
United States shall conduct an annual audit of the
accounts of the program.
(B) Books.--The program shall make available to the
Comptroller General all books, accounts, financial
records, reports, files, and all other papers, things,
or property belonging to or in use by the program and
necessary to facilitate such audit.
(C) Report to congress.--The Comptroller General
shall submit a copy of the results of each such audit
to the appropriate congressional committees.
(g) Staff; Powers of Program.--
(1) Executive director.--
(A) In general.--The Board shall appoint an
Executive Director of the program who shall administer
the program. The Executive Director shall carry out
such other functions consistent with the provisions of
this section as the Board shall prescribe.
(B) Restriction.--The Executive Director may not
serve as Chairperson of the Board.
(C) Compensation.--The Executive Director shall be
paid at a rate not to exceed the rate of basic pay
payable for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(2) Staff.--
(A) In general.--With the approval of a majority of
the Board, the Executive Director may appoint and fix
the pay of additional personnel as the Executive
Director considers necessary and appropriate to carry
out the functions of the provisions of this section.
(B) Compensation.--An individual appointed under
subparagraph (A) shall be paid at a rate not to exceed
the rate of basic pay payable for level GS-15 of the
General Schedule.
(3) Powers.--In order to carry out the provisions of this
section, the program may perform the following functions:
(A) Gifts.--The program may solicit, accept, use,
and dispose of gifts, bequests, or devises of services
or property, both real and personal, for the purpose of
aiding or facilitating the work of the program. Gifts,
bequests, or devises of money and proceeds from sales
of other property received as gifts, bequests, or
devises shall be deposited in the Fund and shall be
available for disbursement upon order of the Board.
(B) Experts and consultants.--The program may
procure temporary and intermittent services under
section 3109 of title 5, United States Code, but at
rates for individuals not to exceed the daily
equivalent of the maximum annual rate of basic pay
payable for GS-15 of the General Schedule.
(C) Contract authority.--The program may contract,
with the approval of a majority of the members of the
Board, with and compensate Government and private
agencies or persons without regard to section 3709 of
the Revised Statutes (41 U.S.C. 5).
(D) Other necessary expenditures.--The program
shall make such other expenditures which the program
considers necessary to carry out the provisions of this
section, but excluding project development.
(h) Report.--Not later than December 31 of each year, the Board
shall submit to the appropriate congressional committees a report on
the activities of the program carried out during the previous fiscal
year, and shall include the following:
(1) An analysis of the evaluations conducted under
subsection (d)(4) (relating to evaluations of the Emerson and
Leland fellowships and accomplishment of the program purposes)
during that fiscal year.
(2) A statement of the total amount of funds attributable
to gifts received by the program in that fiscal year (as
authorized under subsection (g)(3)(A)), and the total amount of
such funds that were expended to carry out the program that
fiscal year.
(i) Authorization of Appropriations.--There are authorized to be
appropriated $18,000,000 to carry out the provisions of this section.
(j) Definition.--In this section, the term ``appropriate
congressional committees'' means--
(1) the Committee on Agriculture and the Committee on
International Relations of the House of Representatives; and
(2) the Committee on Agriculture, Nutrition and Forestry
and the Committee on Foreign Relations of the Senate.
SEC. 462. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this title, the amendments made by
this title shall take effect on October 1, 2002.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 501. DIRECT LOANS.
Section 302(b)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1922(b)(1)) is amended by striking ``operated'' and
inserting ``participated in the business operations of''.
SEC. 502. FINANCING OF BRIDGE LOANS.
Section 303(a)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1923(a)(1)) is amended--
(1) in subparagraph (C), by striking ``or'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(E) refinancing, during a fiscal year, a short-
term, temporary bridge loan made by a commercial or
cooperative lender to a beginning farmer or rancher for
the acquisition of land for a farm or ranch, if--
``(i) the Secretary approved an application
for a direct farm ownership loan to the
beginning farmer or rancher for acquisition of
the land; and
``(ii) funds for direct farm ownership
loans under section 346(b) were not available
at the time at which the application was
approved.''.
SEC. 503. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.
Section 305 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1925) is amended by striking subsection (a) and inserting the
following:
``(a) In General.--The Secretary shall not make or insure a loan
under section 302, 303, 304, 310D, or 310E that would cause the unpaid
indebtedness under those sections of any 1 borrower to exceed the
lesser of--
``(1) the value of the farm or other security; or
``(2)(A) in the case of a loan made by the Secretary--
``(i) to a beginning farmer or rancher, $250,000,
as adjusted (beginning with fiscal year 2003) by the
inflation percentage applicable to the fiscal year in
which the loan is made; or
``(ii) to a borrower other than a beginning farmer
or rancher, $200,000; or
``(B) in the case of a loan guaranteed by the Secretary,
$700,000, as--
``(i) adjusted (beginning with fiscal year 2000) by
the inflation percentage applicable to the fiscal year
in which the loan is guaranteed; and
``(ii) reduced by the amount of any unpaid
indebtedness of the borrower on loans under subtitle B
that are guaranteed by the Secretary.''.
SEC. 504. JOINT FINANCING ARRANGEMENTS.
Section 307(a)(3)(D) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927(a)(3)(D)) is amended--
(1) by striking ``If'' and inserting the following:
``(i) In general.--Subject to clause (ii),
if''; and
(2) by adding at the end the following:
``(ii) Beginning farmers and ranchers.--The
interest rate charged a beginning farmer or
rancher for a loan described in clause (i)
shall be 50 basis points less than the rate
charged farmers and ranchers that are not
beginning farmers or ranchers.''.
SEC. 505. GUARANTEE PERCENTAGE FOR BEGINNING FARMERS AND RANCHERS.
Section 309(h)(6) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1929(h)(6)) is amended by striking ``guaranteed up'' and
all that follows through ``more than'' and inserting ``guaranteed at 95
percent.--The Secretary shall guarantee''.
SEC. 506. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR
RANCHER PROGRAMS.
Section 309 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1929) is amended by adding at the end the following:
``(j) Guarantee of Loans Made Under State Beginning Farmer or
Rancher Programs.--The Secretary may guarantee under this title a loan
made under a State beginning farmer or rancher program, including a
loan financed by the net proceeds of a qualified small issue
agricultural bond for land or property described in section
144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.''.
SEC. 507. DOWN PAYMENT LOAN PROGRAM.
Section 310E of the Consolidated Farm and Rural Development Act (7
U.S.C. 1935) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``30 percent''
and inserting ``40 percent''; and
(B) in paragraph (3), by striking ``10 years'' and
inserting ``20 years''; and
(2) in subsection (c)(3)(B), by striking ``10-year'' and
inserting ``20-year''.
SEC. 508. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.
(a) In General.--Subtitle A of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end
the following:
``SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.
``(a) In General.--Not later than October 1, 2002, the Secretary
shall carry out a pilot program in not fewer than 10 geographically
dispersed States, as determined by the Secretary, to guarantee up to 5
loans per State in each of fiscal years 2003 through 2006 made by a
private seller of a farm or ranch to a qualified beginning farmer or
rancher on a contract land sale basis, if the loan meets applicable
underwriting criteria and a commercial lending institution agrees to
serve as escrow agent.
``(b) Date of Commencement of Program.--The Secretary shall
commence the pilot program on making a determination that guarantees of
contract land sales present a risk that is comparable with the risk
presented in the case of guarantees to commercial lenders.''.
(b) Regulations.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary of Agriculture shall
promulgate such regulations as are necessary to implement the
amendment made by subsection (a).
(2) Procedure.--The promulgation of the regulations and
administration of the amendment made by subsection (a) shall be
made without regard to--
(A) the notice and comment provisions of section
553 of title 5, United States Code;
(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking; and
(C) chapter 35 of title 44, United States Code
(commonly known as the ``Paperwork Reduction Act'').
(3) Congressional review of agency rulemaking.--In carrying
out the amendment made by subsection (a), the Secretary shall
use the authority provided under section 808 of title 5, United
States Code.
Subtitle B--Operating Loans
SEC. 511. DIRECT LOANS.
Section 311(c)(1)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1941(c)(1)(A)) is amended by striking ``who has not'' and
all that follows through ``5 years''.
SEC. 512. AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL FARM OPERATIONS;
WAIVER OF LIMITATIONS FOR TRIBAL OPERATIONS AND OTHER
OPERATIONS.
(a) Amount of Guarantee of Loans for Tribal Operations.--Section
309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1929(h)) is amended--
(1) in paragraph (4), by striking ``paragraphs (5) and
(6)'' and inserting ``paragraphs (5), (6), and (7)''; and
(2) by adding at the end the following:
``(7) Amount of guarantee of loans for tribal operations.--
In the case of an operating loan made to a Native American
farmer or rancher whose farm or ranch is within an Indian
reservation (as defined in section 335(e)(1)(A)(ii)), the
Secretary shall guarantee 95 percent of the loan.''.
(b) Waiver of Limitations.--Section 311(c) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1941(c)) is amended--
(1) in paragraph (1), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)''; and
(2) by adding at the end the following:
``(4) Waivers.--
``(A) Tribal farm and ranch operations.--The
Secretary shall waive the limitation under paragraph
(1)(C) for a direct loan made under this subtitle to a
Native American farmer or rancher whose farm or ranch
is within an Indian reservation (as defined in section
335(e)(1)(A)(ii)) if the Secretary determines that
commercial credit is not generally available for such
farm or ranch operations.
``(B) Other farm and ranch operations.--On a case-
by-case determination not subject to administrative
appeal, the Secretary may grant a borrower a waiver, 1
time only for a period of 2 years, of the limitation
under paragraph (1)(C) for a direct operating loan if
the borrower demonstrates to the satisfaction of the
Secretary that--
``(i) the borrower has a viable farm or
ranch operation;
``(ii) the borrower applied for commercial
credit from at least 2 commercial lenders;
``(iii) the borrower was unable to obtain a
commercial loan (including a loan guaranteed by
the Secretary); and
``(iv) the borrower successfully has
completed, or will complete within 1 year,
borrower training under section 359 (from which
requirement the Secretary shall not grant a
waiver under section 359(f)).''.
Subtitle C--Administrative Provisions
SEC. 521. ELIGIBILITY OF LIMITED LIABILITY COMPANIES FOR FARM OWNERSHIP
LOANS, FARM OPERATING LOANS, AND EMERGENCY LOANS.
(a) In General.--Sections 302(a), 311(a), and 321(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a), 1941(a),
1961(a)) are amended by striking ``and joint operations'' each place it
appears and inserting ``joint operations, and limited liability
companies''.
(b) Conforming Amendment.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended by striking
``or joint operations'' each place it appears and inserting ``joint
operations, or limited liability companies''.
SEC. 522. DEBT SETTLEMENT.
Section 331(b)(4) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981(b)(4)) is amended by striking ``carried out--'' and
all that follows through ``(B) after'' and inserting ``carried out
after''.
SEC. 523. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE
COLLECTION AGENCIES.
(a) In General.--Section 331 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1981) is amended by striking subsections (d)
and (e).
(b) Application.--The amendment made by subsection (a) shall not
apply to a contract entered into before the effective date of this Act.
SEC. 524. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.
Section 331B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981b) is amended--
(1) by striking ``lower of (1) the'' and inserting the
following: ``lowest of--
``(1) the''; and
(2) by striking ``original loan or (2) the'' and inserting
the following: ``original loan;
``(2) the rate being charged by the Secretary for loans,
other than guaranteed loans, of the same type at the time at
which the borrower applies for a deferral, consolidation,
rescheduling, or reamortization; or
``(3) the''.
SEC. 525. ANNUAL REVIEW OF BORROWERS.
Section 333 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983) is amended by striking paragraph (2) and inserting the
following:
``(2) except with respect to a loan under section 306,
310B, or 314--
``(A) an annual review of the credit history and
business operation of the borrower; and
``(B) an annual review of the continued eligibility
of the borrower for the loan;''.
SEC. 526. SIMPLIFIED LOAN APPLICATIONS.
Section 333A(g)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1983a(g)(1)) is amended by striking ``of loans the
principal amount of which is $50,000 or less'' and inserting ``of
farmer program loans the principal amount of which is $100,000 or
less''.
SEC. 527. INVENTORY PROPERTY.
Section 335(c) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1985(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) in clause (i), by striking ``75 days''
and inserting ``135 days''; and
(ii) by adding at the end the following:
``(iv) Combining and dividing of
property.--To the maximum extent practicable,
the Secretary shall maximize the opportunity
for beginning farmers and ranchers to purchase
real property acquired by the Secretary under
this title by combining or dividing inventory
parcels of the property in such manner as the
Secretary determines to be appropriate.''; and
(B) in subparagraph (C)--
(i) by striking ``75 days'' and inserting
``135 days''; and
(ii) by striking ``75-day period'' and
inserting ``135-day period'';
(2) by striking paragraph (2) and inserting the following:
``(2) Previous lease.--In the case of real property
acquired before April 4, 1996, that the Secretary leased before
April 4, 1996, not later than 60 days after the lease expires,
the Secretary shall offer to sell the property in accordance
with paragraph (1).''; and
(3) in paragraph (3)--
(A) in subparagraph (A), by striking ``subparagraph
(B)'' and inserting ``subparagraphs (B) and (C)''; and
(B) by adding at the end the following:
``(C) Offer to sell or grant for farmland
preservation.--For the purpose of farmland
preservation, the Secretary shall--
``(i) in consultation with the State
Conservationist of each State in which
inventory property is located, identify each
parcel of inventory property in the State that
should be preserved for agricultural use; and
``(ii) offer to sell or grant an easement,
restriction, development right, or similar
legal right to each parcel identified under
clause (i) to a State, a political subdivision
of a State, or a private nonprofit organization
separately from the underlying fee or other
rights to the property owned by the United
States.''.
SEC. 528. DEFINITIONS.
(a) Qualified Beginning Farmer or Rancher.--Section 343(a)(11)(F)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(11)(F)) is amended by striking ``25 percent'' and inserting
``30 percent''.
(b) Debt Forgiveness.--Section 343(a)(12) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1991(a)(12)) is amended by striking
subparagraph (B) and inserting the following:
``(B) Exceptions.--The term `debt forgiveness' does
not include--
``(i) consolidation, rescheduling,
reamortization, or deferral of a loan; or
``(ii) any write-down provided as part of a
resolution of a discrimination complaint
against the Secretary.''.
SEC. 529. LOAN AUTHORIZATION LEVELS.
Section 346 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1994) is amended--
(1) in subsection (b)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--The Secretary may make or guarantee
loans under subtitles A and B from the Agricultural Credit
Insurance Fund provided for in section 309 for not more than
$3,750,000,000 for each of fiscal years 2002 through 2006, of
which, for each fiscal year--
``(A) $750,000,000 shall be for direct loans, of
which--
``(i) $200,000,000 shall be for farm
ownership loans under subtitle A; and
``(ii) $550,000,000 shall be for operating
loans under subtitle B; and
``(B) $3,000,000,000 shall be for guaranteed loans,
of which--
``(i) $1,000,000,000 shall be for
guarantees of farm ownership loans under
subtitle A; and
``(ii) $2,000,000,000 shall be for
guarantees of operating loans under subtitle
B.''; and
(B) in paragraph (2)(A)(ii), by striking ``farmers
and ranchers'' and all that follows and inserting
``farmers and ranchers 35 percent for each of fiscal
years 2002 through 2006.''; and
(2) in subsection (c), by striking the last sentence.
SEC. 530. INTEREST RATE REDUCTION PROGRAM.
Section 351 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1999) is amended--
(1) in subsection (a)--
(A) by striking ``Program.--'' and all that follows
through ``The Secretary'' and inserting ``Program.--The
Secretary''; and
(B) by striking paragraph (2);
(2) by striking subsection (c) and inserting the following:
``(c) Amount of Interest Rate Reduction.--
``(1) In general.--In return for a contract entered into by
a lender under subsection (b) for the reduction of the interest
rate paid on a loan, the Secretary shall make payments to the
lender in an amount equal to not more than 100 percent of the
cost of reducing the annual rate of interest payable on the
loan, except that such payments shall not exceed the cost of
reducing the rate by more than--
``(A) in the case of a borrower other than a
beginning farmer or rancher, 3 percent; and
``(B) in the case of a beginning farmer or rancher,
4 percent.
``(2) Beginning farmers and ranchers.--The percentage
reduction of the interest rate for which payments are
authorized to be made for a beginning farmer or rancher under
paragraph (1) shall be 1 percent more than the percentage
reduction for farmers and ranchers that are not beginning
farmers or ranchers.''; and
(3) in subsection (e), by striking paragraph (2) and
inserting the following:
``(2) Maximum amount of funds.--
``(A) In general.--The total amount of funds used
by the Secretary to carry out this section for a fiscal
year shall not exceed $750,000,000.
``(B) Beginning farmers and ranchers.--
``(i) In general.--The Secretary shall
reserve not less than 25 percent of the funds
used by the Secretary under subparagraph (A) to
make payments for guaranteed loans made to
beginning farmers and ranchers.
``(ii) Duration of reservation of funds.--
Funds reserved for beginning farmers or
ranchers under clause (i) for a fiscal year
shall be reserved only until April 1 of the
fiscal year.''.
SEC. 531. OPTIONS FOR SATISFACTION OF OBLIGATION TO PAY RECAPTURE
AMOUNT FOR SHARED APPRECIATION AGREEMENTS.
(a) In General.--Section 353(e)(7) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2001(e)(7)) is amended--
(1) in subparagraph (C), by redesignating clauses (i) and
(ii) as subclauses (I) and (II), respectively, and adjusting
the margins appropriately;
(2) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and adjusting the
margins appropriately;
(3) by striking the paragraph heading and inserting the
following:
``(7) Options for satisfaction of obligation to pay
recapture amount.--
``(A) In general.--As an alternative to repaying
the full recapture amount at the end of the term of the
agreement (as determined by the Secretary in accordance
with this section), a borrower may satisfy the
obligation to pay the amount of recapture by--
``(i) financing the recapture payment in
accordance with subparagraph (B); or
``(ii) granting the Secretary an
agricultural use protection and conservation
easement on the property subject to the shared
appreciation agreement in accordance with
subparagraph (C).
``(B) Financing of recapture payment.--''; and
(4) by adding at the end the following:
``(C) Agricultural use protection and conservation
easement.--
``(i) In general.--Subject to clause (iii),
the Secretary shall accept an agricultural use
protection and conservation easement from the
borrower for all of the real security property
subject to the shared appreciation agreement in
lieu of payment of the recapture amount.
``(ii) Term.--The term of an easement
accepted by the Secretary under this
subparagraph shall be 25 years.
``(iii) Conditions.--The easement shall
require that the property subject to the
easement shall continue to be used or conserved
for agricultural and conservation uses in
accordance with sound farming and conservation
practices, as determined by the Secretary.
``(iv) Replacement of method of satisfying
obligation.--A borrower that has begun
financing of a recapture payment under
subparagraph (B) may replace that financing
with an agricultural use protection and
conservation easement under this
subparagraph.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply to a shared appreciation agreement that--
(1) matures on or after the date of enactment of this Act;
or
(2) matured before the date of enactment of this Act, if--
(A) the recapture amount was reamortized under
section 353(e)(7) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2001(e)(7)) (as in effect on
the day before the date of enactment of this Act); or
(B)(i) the recapture amount had not been paid
before the date of enactment of this Act because of
circumstances beyond the control of the borrower; and
(ii) the borrower acted in good faith (as
determined by the Secretary) in attempting to repay the
recapture amount.
SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION REQUIREMENT.
Section 359 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2006a) is amended by striking subsection (f) and inserting the
following:
``(f) Waivers.--
``(1) In general.--The Secretary may waive the requirements
of this section for an individual borrower if the Secretary
determines that the borrower demonstrates adequate knowledge in
areas described in this section.
``(2) Criteria.--The Secretary shall establish criteria
providing for the application of paragraph (1) consistently in
all counties nationwide.''.
SEC. 533. ANNUAL REVIEW OF BORROWERS.
Section 360(d)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2006b(d)(1)) is amended by striking ``biannual'' and
inserting ``annual''.
Subtitle D--Farm Credit
SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.
(a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm Credit
Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
(1) by striking clause (iii); and
(2) by redesignating clause (iv) as clause (iii).
(b) Other System Banks; Associations.--Section 4.18A of the Farm
Credit Act of 1971 (12 U.S.C. 2206a) is amended--
(1) in subsection (a)(1), by striking ``3.11(11)(B)(iv)''
and inserting ``3.11(11)(B)(iii)''; and
(2) by striking subsection (c).
SEC. 542. BANKS FOR COOPERATIVES.
Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 2128(b))
is amended--
(1) in paragraphs (1) and (2)(A)(i), by striking ``farm
supplies'' each place it appears and inserting ``agricultural
supplies''; and
(2) by adding at the end the following:
``(4) Definition of agricultural supply.--In this
subsection, the term `agricultural supply' includes--
``(A) a farm supply; and
``(B)(i) agriculture-related processing equipment;
``(ii) agriculture-related machinery; and
``(iii) other capital-related goods related to the
storage or handling of agricultural commodities or
products.''.
SEC. 543. INSURANCE CORPORATION PREMIUMS.
(a) Reduction in Premiums for GSE-Guaranteed Loans.--
(1) In general.--Section 5.55 of the Farm Credit Act of
1971 (12 U.S.C. 2277a-4) is amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
striking ``government-guaranteed loans
provided for in subparagraph (C)'' and
inserting ``loans provided for in
subparagraphs (C) and (D)'';
(II) in subparagraph (B), by
striking ``and'' at the end;
(III) in subparagraph (C), by
striking the period at the end and
inserting ``; and''; and
(IV) by adding at the end the
following:
``(D) the annual average principal outstanding for
such year on the guaranteed portions of Government
Sponsored Enterprise-guaranteed loans made by the bank
that are in accrual status, multiplied by a factor, not
to exceed 0.0015, determined by the Corporation at the
sole discretion of the Corporation.''; and
(ii) by adding at the end the following:
``(4) Definition of government sponsored enterprise-
guaranteed loan.--In this section and sections 1.12(b) and
5.56(a), the term `Government Sponsored Enterprise-guaranteed
loan' means a loan or credit, or portion of a loan or credit,
that is guaranteed by an entity that is chartered by Congress
to serve a public purpose and the debt obligations of which are
not explicitly guaranteed by the United States, including the
Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation, the Federal Home Loan Bank System, and
the Federal Agricultural Mortgage Corporation, but not
including any other institution of the Farm Credit System.'';
and
(B) in subsection (e)(4)(B), by striking
``government-guaranteed loans described in subsection
(a)(1)(C)'' and inserting ``loans described in
subparagraph (C) or (D) of subsection (a)(1)''.
(2) Conforming amendments.--
(A) Section 1.12(b) of the Farm Credit Act of 1971
(12 U.S.C. 2020(b)) is amended--
(i) in paragraph (1), by inserting ``and
Government Sponsored Enterprise-guaranteed
loans (as defined in section 5.55(a)(4))
provided for in paragraph (4)'' after
``government-guaranteed loans (as defined in
section 5.55(a)(3)) provided for in paragraph
(3)'';
(ii) in paragraph (2), by striking ``and''
at the end;
(iii) in paragraph (3), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(4) the annual average principal outstanding for such
year on the guaranteed portions of Government Sponsored
Enterprise-guaranteed loans (as so defined) made by the
association, or by the other financing institution and funded
by or discounted with the Farm Credit Bank, that are in accrual
status, multiplied by the factor, not to exceed 0.0015,
determined by the Corporation for the purpose of setting the
premium for such guaranteed portions of loans under section
5.55(a)(1)(D).''.
(B) Section 5.56(a) of the Farm Credit Act of 1971
(12 U.S.C. 2277a-5(a)) is amended--
(i) in paragraph (1), by inserting ``and
Government Sponsored Enterprise-guaranteed
loans (as defined in section 5.55(a)(4))''
after ``government-guaranteed loans'';
(ii) by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively;
and
(iii) by inserting after paragraph (3) the
following:
``(4) the annual average principal outstanding on the
guaranteed portions of Government Sponsored Enterprise-
guaranteed loans (as defined in section 5.55(a)(4)) that are in
accrual status;''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date on which Farm Credit System Insurance Corporation
premiums are due from insured Farm Credit System banks under section
5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) for calendar
year 2001.
SEC. 544. BOARD OF DIRECTORS OF THE FEDERAL AGRICULTURAL MORTGAGE
CORPORATION.
Section 8.2(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
2(b)) is amended--
(1) in paragraph (2)--
(A) by striking ``15'' and inserting ``17'';
(B) in subparagraph (A), by striking ``common
stock'' and all that follows and inserting ``Class A
voting common stock;'';
(C) in subparagraph (B), by striking ``common
stock'' and all that follows and inserting ``Class B
voting common stock;'';
(D) by redesignating subparagraph (C) as
subparagraph (D); and
(E) by inserting after subparagraph (B) the
following:
``(C) 2 members shall be elected by holders of
Class A voting common stock and Class B voting common
stock, 1 of whom shall be the chief executive officer
of the Corporation and 1 of whom shall be another
executive officer of the Corporation; and'';
(2) in paragraph (3), by striking ``(2)(C)'' and inserting
``(2)(D)'';
(3) in paragraph (4)--
(A) in subparagraph (A), by striking ``(A) or (B)''
and inserting ``(A), (B), or (C)''; and
(B) in subparagraph (B), by striking ``(2)(C)'' and
inserting ``(2)(D)'';
(4) in paragraph (5)(A)--
(A) by inserting ``executive officers of the
Corporation or'' after ``from among persons who are'';
and
(B) by striking ``such a representative'' and
inserting ``such an executive officer or
representative'';
(5) in paragraph (6)(B), by striking ``(A) and (B)'' and
inserting ``(A), (B), and (C)'';
(6) in paragraph (7), by striking ``8 members'' and
inserting ``Nine members'';
(7) in paragraph (8)--
(A) in the paragraph heading, by inserting ``or
executive officers of the corporation'' after
``employees''; and
(B) by inserting ``or executive officers of the
Corporation'' after ``United States''; and
(8) by striking paragraph (9) and inserting the following:
``(9) Chairperson.--
``(A) Election.--The permanent board shall annually
elect a chairperson from among the members of the
permanent board.
``(B) Term.--The term of the chairperson shall
coincide with the term served by elected members of the
permanent board under paragraph (6)(B).''.
Subtitle E--General Provisions
SEC. 551. INAPPLICABILITY OF FINALITY RULE.
Section 281(a)(1) of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 7001(a)(1)) is amended--
(1) by striking ``This subsection'' and inserting the
following:
``(A) In general.--Except as provided in
subparagraph (B), this subsection''; and
(2) by adding at the end the following:
``(B) Agricultural credit decisions.--This
subsection shall not apply with respect to an
agricultural credit decision made by such a State,
county, or area committee, or employee of such a
committee, under the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.).''.
SEC. 552. TECHNICAL AMENDMENTS.
(a) Section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)) is amended by striking ``Disaster Relief and
Emergency Assistance Act'' each place it appears and inserting ``Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.)''.
(b) Section 336(b) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1986(b)) is amended in the second sentence by striking
``provided for in section 332 of this title''.
(c) Section 359(c)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking
``established pursuant to section 332,''.
(d) Section 360(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2006b(a)) is amended by striking ``established pursuant
to section 332''.
SEC. 553. EFFECT OF AMENDMENTS.
(a) In General.--Except as otherwise specifically provided in this
title and notwithstanding any other provision of law, this title and
the amendments made by this title shall not affect the authority of the
Secretary of Agriculture to carry out a farm credit program for any of
the 1996 through 2001 fiscal years under a provision of law in effect
immediately before the enactment of this Act.
(b) Liability.--A provision of this title or an amendment made by
this title shall not affect the liability of any person under any
provision of law as in effect immediately before the enactment of this
Act.
SEC. 554. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b) and section
543(b), this title and the amendments made by this title take effect on
October 1, 2001.
(b) Board of Directors of the Federal Agricultural Mortgage
Corporation.--The amendments made by section 544 take effect on the
date of enactment of this Act.
TITLE VI--RURAL DEVELOPMENT
SEC. 601. FUNDING FOR RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN
GUARANTEES.
Section 1011(a) of the Launching Our Communities' Access to Local
Television Act of 2000 (title X of H.R. 5548, as enacted by section
1(a)(2) of Public Law 106-553) is amended by adding at the end the
following: ``In addition, a total of $200,000,000 of the funds of the
Commodity Credit Corporation shall be available during fiscal years
2002 through 2006, without fiscal year limitation, for loan guarantees
under this title.''.
SEC. 602. EXPANDED ELIGIBILITY FOR VALUE-ADDED AGRICULTURAL PRODUCT
MARKET DEVELOPMENT GRANTS.
Section 231(a) of the Agricultural Risk Protection Act of 2000 (7
U.S.C. 1621 note) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Establishment and purposes.--In each of fiscal years
2002 through 2011, the Secretary shall use $50,000,000 of the
funds of the Commodity Credit Corporation to award competitive
grants--
``(A) to eligible independent producers (as
determined by the Secretary) of value-added
agricultural commodities and products of agricultural
commodities to assist an eligible producer--
``(i) to develop a business plan for viable
marketing opportunities for a value-added
agricultural commodity or product of an
agricultural commodity; or
``(ii) to develop strategies for the
ventures that are intended to create marketing
opportunities for the producers; and
``(B) to public bodies, institutions of higher
learning, and trade associations to assist such
entities--
``(i) to develop a business plan for viable
marketing opportunities in emerging markets for
a value-added agricultural commodity or product
of an agricultural commodity; or
``(ii) to develop strategies for the
ventures that are intended to create marketing
opportunities in emerging markets for the
producers.'';
(2) by striking ``producer'' each place it appears
thereafter and inserting ``grantee''; and
(3) in the heading for paragraph (3), by striking
``Producer'' and inserting ``Grantee''.
SEC. 603. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.
(a) Purposes.--The purposes of this section are to carry out a
demonstration program under which agricultural producers are provided--
(1) technical assistance, including engineering services,
applied research, scale production, and similar services to
enable the producers to establish businesses for further
processing of agricultural products;
(2) marketing, market development, and business planning;
and
(3) overall organizational, outreach, and development
assistance to increase the viability, growth, and
sustainability of value-added agricultural businesses.
(b) Nature of Program.--The Secretary of Agriculture (in this
section referred to as the ``Secretary'') shall--
(1) make grants to eligible applicants for the purposes of
enabling the applicants to obtain the assistance described in
subsection (a); and
(2) provide assistance to eligible applicants through the
research and technical services of the Department of
Agriculture.
(c) Eligibility Requirements.--
(1) In general.--An applicant shall be eligible for a grant
and assistance described in subsection (b) to establish an
Agriculture Innovation Center if--
(A) the applicant--
(i) has provided services similar to those
described in subsection (a); or
(ii) shows the capability of providing the
services;
(B) the application of the applicant for the grant
and assistance sets forth a plan, in accordance with
regulations which shall be prescribed by the Secretary,
outlining support of the applicant in the agricultural
community, the technical and other expertise of the
applicant, and the goals of the applicant for
increasing and improving the ability of local producers
to develop markets and processes for value-added
agricultural products;
(C) the applicant demonstrates that resources (in
cash or in kind) of definite value are available, or
have been committed to be made available, to the
applicant, to increase and improve the ability of local
producers to develop markets and processes for value-
added agricultural products; and
(D) the applicant meets the requirement of
paragraph (2).
(2) Board of directors.--The requirement of this paragraph
is that the applicant shall have a board of directors comprised
of representatives of the following groups:
(A) The 2 general agricultural organizations with
the greatest number of members in the State in which
the applicant is located.
(B) The Department of Agriculture or similar State
organization or department, for the State.
(C) Organizations representing the 4 highest
grossing commodities produced in the State, according
to annual gross cash sales.
(d) Grants and Assistance.--
(1) In general.--Subject to subsection (g), the Secretary
shall make annual grants to eligible applicants under this
section, each of which grants shall not exceed the lesser of--
(A) $1,000,000; or
(B) twice the dollar value of the resources (in
cash or in kind) that the applicant has demonstrated
are available, or have been committed to be made
available, to the applicant in accordance with
subsection (c)(1)(C).
(2) Initial limitation.--In the first year of the
demonstration program under this section, the Secretary shall
make grants under this section, on a competitive basis, to not
more than 5 eligible applicants.
(3) Expansion of demonstration program.--In the second year
of the demonstration program under this section, the Secretary
may make grants under this section to not more than 10 eligible
applicants, in addition to any entities to which grants are
made under paragraph (2) for such year.
(4) State limitation.--In the first 3 years of the
demonstration program under this section, the Secretary shall
not make an Agricultural Innovation Center Demonstration
Program grant under this section to more than 1 entity in a
single State.
(e) Use of Funds.--An entity to which a grant is made under this
section may use the grant only for the following purposes, but only to
the extent that the use is not described in section 231(d) of the
Agricultural Risk Protection Act of 2000:
(1) Applied research.
(2) Consulting services.
(3) Hiring of employees, at the discretion of the board of
directors of the entity.
(4) The making of matching grants, each of which shall be
not more than $5,000, to agricultural producers, so long as the
aggregate amount of all such matching grants shall be not more
than $50,000.
(5) Legal services.
(f) Rule of Interpretation.--This section shall not be construed to
prevent a recipient of a grant under this section from collaborating
with any other institution with respect to activities conducted using
the grant.
(g) Availability of Funds.--Of the amount made available under
section 231(a)(1) of the Agricultural Risk Protection Act of 2000
(Public Law 106-224; 7 U.S.C. 1621 note), the Secretary shall use to
carry out this section--
(1) not less than $5,000,000 for fiscal year 2002; and
(2) not less than $10,000,000 for each of the fiscal years
2003 and 2004.
(h) Report on Best Practices.--
(1) Effects on the agricultural sector.--The Secretary
shall utilize $300,000 per year of the funds made available
pursuant to this section to support research at any university
into the effects of value-added projects on agricultural
producers and the commodity markets. The research should
systematically examine possible effects on demand for
agricultural commodities, market prices, farm income, and
Federal outlays on commodity programs using linked, long-term,
global projections of the agricultural sector.
(2) Department of agriculture.--Not later than 3 years
after the first 10 grants are made under this section, the
Secretary shall prepare and submit to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and to the
Committee on Agriculture of the House of Representatives a
written report on the effectiveness of the demonstration
program conducted under this section at improving the
production of value-added agricultural products and on the
effects of the program on the economic viability of the
producers, which shall include the best practices and
innovations found at each of the Agriculture Innovation Centers
established under the demonstration program under this section,
and detail the number and type of agricultural projects
assisted, and the type of assistance provided, under this
section.
SEC. 604. FUNDING OF COMMUNITY WATER ASSISTANCE GRANT PROGRAM.
(a) Funding.--In each of fiscal years 2002 through 2011, the
Secretary of Agriculture shall use $30,000,000 of the funds of the
Commodity Credit Corporation to carry out section 306A of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1926a).
(b) Extension of Program.--Section 306A(i) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1926a(i)) is amended by striking
``2002'' and inserting ``2011''.
(c) Miscellaneous Amendments.--Section 306A of such Act (7 U.S.C.
1926a) is amended--
(1) in the heading by striking ``emergency'';
(2) in subsection (a)(1)--
(A) by striking ``after'' and inserting ``when'';
and
(B) by inserting ``is imminent'' after
``communities''; and
(3) in subsection (c), by striking ``shall--'' and all that
follows and inserting ``shall be a public or private nonprofit
entity.''.
SEC. 605. LOAN GUARANTEES FOR THE FINANCING OF THE PURCHASE OF
RENEWABLE ENERGY SYSTEMS.
Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904)
is amended--
(1) by inserting ``(a)'' before ``The Secretary''; and
(2) by adding after and below the end the following:
``(b) Loan Guarantees for the Financing of the Purchase of
Renewable Energy Systems.--The Secretary may provide a loan guarantee,
on such terms and conditions as the Secretary deems appropriate, for
the purpose of financing the purchase of a renewable energy system,
including a wind energy system and anaerobic digestors for the purpose
of energy generation, by any person or individual who is a farmer, a
rancher, or an owner of a small business (as defined by the Secretary)
that is located in a rural area (as defined by the Secretary). In
providing guarantees under this subsection, the Secretary shall give
priority to loans used primarily for power generation on a farm, ranch,
or small business (as so defined).''.
SEC. 606. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY SYSTEMS.
Section 310B(a)(3) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(a)(3)) is amended by inserting ``and other renewable
energy systems including wind energy systems and anaerobic digestors
for the purpose of energy generation'' after ``solar energy systems''.
SEC. 607. RURAL BUSINESS OPPORTUNITY GRANTS.
Section 306(a)(11)(D) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 608. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN
ALASKA.
Section 306D(d)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926d(d)(1)) is amended by striking ``and 2002'' and
inserting ``through 2011''.
SEC. 609. RURAL COOPERATIVE DEVELOPMENT GRANTS.
Section 310B(e)(9) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(e)(9)) is amended by striking ``2002'' and inserting
``2011''.
SEC. 610. NATIONAL RESERVE ACCOUNT OF RURAL DEVELOPMENT TRUST FUND.
Section 381E(e)(3)(F) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009d(e)(3)(F)) is amended by striking
``fiscal year 2002'' and inserting ``each of the fiscal years 2002
through 2011''.
SEC. 611. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.
Section 381O(b)(3) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009n(b)(3)) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 612. INCREASE IN LIMIT ON CERTAIN LOANS FOR RURAL DEVELOPMENT.
Section 310B(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1932(a)) is amended by striking ``$25,000,000'' and inserting
``$100,000,000''.
SEC. 613. PILOT PROGRAM FOR DEVELOPMENT AND IMPLEMENTATION OF STRATEGIC
REGIONAL DEVELOPMENT PLANS.
(a) Development.--
(1) Selection of states.--The Secretary of Agriculture (in
this section referred to as the ``Secretary'') shall, on a
competitive basis, select States in which to implement
strategic regional development plans developed under this
subsection.
(2) Grants.--
(A) Authority.--
(i) In general.--From the funds made
available to carry out this subsection, the
Secretary shall make a matching grant to 1 or
more entities in each State selected under
subsection (a), to develop a strategic regional
development plan that provides for rural
economic development in a region in the State
in which the entity is located.
(ii) Priority.--In making grants under this
subsection, the Secretary shall give priority
to entities that represent a regional coalition
of community-based planning, development,
governmental, and business organizations.
(B) Terms of match.--In order for an entity to be
eligible for a matching grant under this subsection,
the entity shall make a commitment to the Secretary to
provide funds for the development of a strategic
regional development plan of the kind referred to in
subparagraph (A) in an amount that is not less than the
amount of the matching grant.
(C) Limitation.--The Secretary shall not make a
grant under this subsection in an amount that exceeds
$150,000.
(3) Funding.--
(A) In general.--The Secretary shall use $2,000,000
of the funds of the Commodity Credit Corporation, plus
\2/13\ of the amounts made available by section 943 of
the Farm Security Act of 2001 for grants under this
section, in each of fiscal years 2002 through 2011 to
carry out this subsection.
(B) Availability.--Funds made available pursuant to
subparagraph (A) shall remain available without fiscal
year limitation.
(b) Strategic Planning Implementation.--
(1) The Secretary shall use the authorities provided in the
provisions of law specified in section 793(c)(1)(A)(ii) of the
Federal Agriculture Improvement and Reform Act of 1996 to
implement the strategic regional development plans developed
pursuant to subsection (a) of this section.
(2) Funding.--
(A) In general.--The Secretary shall use
$13,000,000 of the funds of the Commodity Credit
Corporation, plus \11/13\ of the amounts made available
by section 943 of the Farm Security Act of 2001 for
grants under this section, in each of fiscal years 2002
through 2011 to carry out this subsection.
(B) Availability.--Funds made available pursuant to
subparagraph (A) shall remain available without fiscal
year limitation.
(c) Use of Funds.--The amounts made available under subsections (a)
and (b) may be used as the Secretary deems appropriate to carry out any
provision of this section.
SEC. 614. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
CONSTRUCTION, REFURBISHING, AND SERVICING OF
INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL
AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.
(a) In General.--Subtitle A of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1922-1949) is amended by inserting after
section 306D the following:
``SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
CONSTRUCTION, REFURBISHING, AND SERVICING OF
INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL
AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.
``(a) Definition of Eligible Individual.--In this section, the term
`eligible individual' means an individual who is a member of a
household, the combined income of whose members for the most recent 12-
month period for which the information is available, is not more than
100 percent of the median nonmetropolitan household income for the
State or territory in which the individual resides, according to the
most recent decennial census of the United States.
``(b) Grants.--The Secretary may make grants to private nonprofit
organizations for the purpose of assisting eligible individuals in
obtaining financing for the construction, refurbishing, and servicing
of individual household water well systems in rural areas that are
owned (or to be owned) by the eligible individuals.
``(c) Use of Funds.--A grant made under this section may be--
``(1) used, or invested to provide income to be used, to
carry out subsection (b); and
``(2) used to pay administrative expenses associated with
providing the assistance described in subsection (b).
``(d) Priority in Awarding Grants.--In awarding grants under this
section, the Secretary shall give priority to an applicant that has
substantial expertise and experience in promoting the safe and
productive use of individually-owned household water well systems and
ground water.''.
(b) Effective Date.--The amendment made by this section takes
effect on October 1, 2001.
SEC. 615. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Subtitle E of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009-2009n) is amended by adding at the end the following:
``SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
``(a) Rural Area Defined.--In this section, the term `rural area'
means such areas as the Secretary may determine.
``(b) Establishment.--There is established a National Rural
Development Partnership (in this section referred to as the
`Partnership'), which shall be composed of--
``(1) the National Rural Development Coordinating Committee
established in accordance with subsection (c); and
``(2) State rural development councils established in
accordance with subsection (d).
``(c) National Rural Development Coordinating Committee.--
``(1) Composition.--The National Rural Development
Coordinating Committee (in this section referred to as the
`Coordinating Committee') may be composed of--
``(A) representatives of all Federal departments
and agencies with policies and programs that affect or
benefit rural areas;
``(B) representatives of national associations of
State, regional, local, and tribal governments and
intergovernmental and multi-jurisdictional agencies and
organizations;
``(C) national public interest groups; and
``(D) other national nonprofit organizations that
elect to participate in the activities of the
Coordinating Committee.
``(2) Functions.--The Coordinating Committee may--
``(A) provide support for the work of the State
rural development councils established in accordance
with subsection (d); and
``(B) develop and facilitate strategies to reduce
or eliminate conflicting or duplicative administrative
and regulatory impediments confronting rural areas.
``(d) State Rural Development Councils.--
``(1) Composition.--A State rural development council may--
``(A) be composed of representatives of Federal,
State, local, and tribal governments, and nonprofit
organizations, the private sector, and other entities
committed to rural advancement; and
``(B) have a nonpartisan and nondiscriminatory
membership that is broad and representative of the
economic, social, and political diversity of the State.
``(2) Functions.--A State rural development council may--
``(A) facilitate collaboration among Federal,
State, local, and tribal governments and the private
and non-profit sectors in the planning and
implementation of programs and policies that affect the
rural areas of the State, and to do so in such a way
that provides the greatest degree of flexibility and
innovation in responding to the unique needs of the
State and the rural areas; and
``(B) in conjunction with the Coordinating
Committee, develop and facilitate strategies to reduce
or eliminate conflicting or duplicative administrative
and regulatory impediments confronting the rural areas
of the State.
``(e) Administration of the Partnership.--The Secretary may provide
for any additional support staff to the Partnership as the Secretary
determines to be necessary to carry out the duties of the Partnership.
``(f) Termination.--The authority provided by this section shall
terminate on the date that is 5 years after the date of the enactment
of this section.''.
SEC. 616. ELIGIBILITY OF RURAL EMPOWERMENT ZONES, RURAL ENTERPRISE
COMMUNITIES, AND CHAMPION COMMUNITIES FOR DIRECT AND
GUARANTEED LOANS FOR ESSENTIAL COMMUNITY FACILITIES.
Section 306(a)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(1)) is amended by inserting after the 1st
sentence the following: ``The Secretary may also make or insure loans
to communities that have been designated as rural empowerment zones or
rural enterprise communities pursuant to part I of subchapter U of
chapter 1 of the Internal Revenue Code of 1986, as rural enterprise
communities pursuant to section 766 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1999, or as champion communities (as determined by
the Secretary), to provide for the installation or improvement of
essential community facilities including necessary related equipment,
and to furnish financial assistance or other aid in planning projects
for such purposes.''.
SEC. 617. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN
FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR HIGHER
VALUE CROPS.
(a) In General.--The Secretary of Agriculture may make a grant to a
nonprofit organization with the capacity to train farm workers, or to a
consortium of non-profit organizations, agribusinesses, State and local
governments, agricultural labor organizations, and community-based
organizations with that capacity.
(b) Use of Funds.--An entity to which a grant is made under this
section shall use the grant to train farm workers to use new
technologies and develop specialized skills for agricultural
development.
(c) Limitations on Authorization of Appropriations.--For grants
under this section, there are authorized to be appropriated to the
Secretary of Agriculture not more than $10,000,000 for each of fiscal
years 2002 through 2011.
SEC. 618. LOAN GUARANTEES FOR THE PURCHASE OF STOCK IN A FARMER
COOPERATIVE SEEKING TO MODERNIZE OR EXPAND.
Section 310B(g)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(g)(2)) is amended by striking ``start-up'' and all
that follows and inserting ``capital stock of a farmer cooperative
established for an agricultural purpose.''.
SEC. 619. INTANGIBLE ASSETS AND SUBORDINATED UNSECURED DEBT REQUIRED TO
BE CONSIDERED IN DETERMINING ELIGIBILITY OF FARMER-OWNED
COOPERATIVE FOR BUSINESS AND INDUSTRY GUARANTEED LOAN.
Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) is amended by adding at the end the following:
``(h) Intangible Assets and Subordinated Unsecured Debt Required To
Be Considered in Determining Eligibility of Farmer-Owned Cooperative
for Business and Industry Guaranteed Loan.--In determining whether a
cooperative organization owned by farmers is eligible for a guaranteed
loan under subsection (a)(1), the Secretary may consider the value of
the intangible assets and subordinated unsecured debt of the
cooperative organization.''.
SEC. 620. BAN ON LIMITING ELIGIBILITY OF FARMER COOPERATIVE FOR
BUSINESS AND INDUSTRY LOAN GUARANTEE BASED ON POPULATION
OF AREA IN WHICH COOPERATIVE IS LOCATED; REFINANCING.
Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) is further amended by adding at the end of the following:
``(i) Special Rules Applicable to Farmer Cooperatives Under the
Business and Industry Loan Program.--In determining whether a
cooperative organization owned by farmers is eligible for a guaranteed
loan under subsection (a)(1), the Secretary shall not apply any lending
restriction based on population to the area in which the cooperative
organization is located.
``(j) Refinancing.--A cooperative organization owned by farmers
that is eligible to receive a business or industry guaranteed loan
under subsection (a) shall be eligible to refinance an existing loan
with the same lender or a new lender if--
``(1) the original loan--
``(A) is current and performing; and
``(B) is not in default; and
``(2) the cooperative organization has adequate security or
collateral (including tangible and intangible assets).''.
SEC. 621. RURAL WATER AND WASTE FACILITY GRANTS.
Section 306(a)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(2)) is amended by striking ``aggregating not to
exceed $590,000,000 in any fiscal year''.
SEC. 622. RURAL WATER CIRCUIT RIDER PROGRAM.
(a) Establishment.--The Secretary of Agriculture shall establish a
national rural water and wastewater circuit rider grant program that
shall be modeled after the National Rural Water Association Rural Water
Circuit Rider Program that receives funding from the Rural Utilities
Service.
(b) Limitations on Authorization of Appropriations.--To carry out
subsection (a), there are authorized to be appropriated to the
Secretary of Agriculture $15,000,000 for each fiscal year.
SEC. 623. RURAL WATER GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
(a) Establishment.--The Secretary of Agriculture shall establish a
national grassroots source water protection program that will utilize
the on-site technical assistance capabilities of State rural water
associations that are operating wellhead or ground water protection
programs in each State.
(b) Limitations on Authorization of Appropriations.--To carry out
subsection (a), there are authorized to be appropriated to the
Secretary of Agriculture $5,000,000 for each fiscal year.
SEC. 624. DELTA REGIONAL AUTHORITY.
Section 382N of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009aa-13) is amended by striking ``2002'' and inserting
``2011''.
SEC. 625. PREDEVELOPMENT AND SMALL CAPITALIZATION LOAN FUND.
The Secretary of Agriculture may make grants to private, nonprofit,
multi-State rural community assistance programs to capitalize revolving
funds for the purpose of financing eligible projects of predevelopment,
repair, and improvement costs of existing water and wastewater systems.
Financing provided using funds appropriated to carry out this program
may not exceed $300,000.
SEC. 626. RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM.
The Secretary of Agriculture may use an additional source of
funding for economic development programs administered by the
Department of Agriculture through guaranteeing fees on guarantees of
bonds and notes issued by cooperative lenders for electricity and
telecommunications purposes.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--Extensions
SEC. 700. MARKET EXPANSION RESEARCH.
Section 1436(b)(3)(C) of the Food Security Act of 1985 (7 U.S.C.
1632(b)(3)(C)) is amended by striking ``1990'' and inserting ``2011''.
SEC. 701. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 702. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
EDUCATION.
Section 1417(l) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3152(l)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 703. POLICY RESEARCH CENTERS.
Section 1419A(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 704. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
PROGRAM.
Section 1424(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 705. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL
RESEARCH.
Section 1424A(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 706. NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is
amended by striking ``2002'' and inserting ``2011''.
SEC. 707. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.
Section 1433(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 708. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.
Section 1434(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 709. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
UNIVERSITY.
Section 1447(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 710. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS AT 1890
LAND-GRANT INSTITUTIONS.
Sections 1448(a)(1) and (f) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c(a)(1) and
(f)) are amended by striking ``2002'' each place it appears and
inserting ``2011''.
SEC. 711. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 712. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND
EDUCATION PROGRAMS.
Section 1459A(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 713. UNIVERSITY RESEARCH.
Subsections (a) and (b) of section 1463 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3311(a) and (b)) are amended by striking ``2002'' each place it
appears and inserting ``2011''.
SEC. 714. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
``2002'' and inserting ``2011''.
SEC. 715. SUPPLEMENTAL AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 716. AGRICULTURE RESEARCH FACILITIES.
The first sentence of section 1477 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is
amended by striking ``2002'' and inserting ``2011''.
SEC. 717. RANGELAND RESEARCH.
Section 1483(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 718. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 719. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 720. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.
Section 1672A(g) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925a(g)) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 721. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
(a) Authorization of Appropriations.--Section 1664(g)(1) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5908(g)(1)) is amended by striking ``2002'' and inserting ``2011''.
(b) Capitalization.--Section 1664(g)(2) of such Act (7 U.S.C.
5908(g)(2)) is amended by striking ``2002'' and inserting ``2011''.
SEC. 723. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2002''
and inserting ``2011''.
SEC. 724. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY
RESEARCH.
Section 402(g) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 725. BIOBASED PRODUCTS.
(a) Pilot Project.--Section 404(e)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is
amended by striking ``2001'' and inserting ``2011''.
(b) Authorization of Appropriations.--Section 404(h) of such Act (7
U.S.C. 7624(h)) is amended by striking ``2002'' and inserting ``2011''.
SEC. 726. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
GRANTS PROGRAM.
Section 406(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(e)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 727. INSTITUTIONAL CAPACITY BUILDING GRANTS.
(a) Generally.--Section 535(b)(1) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by
striking ``2000'' and inserting ``2011''.
(b) Authorization of Appropriations.--Section 535(c) of such Act is
amended by striking ``2000'' and inserting ``2011''.
SEC. 728. 1994 INSTITUTION RESEARCH GRANTS.
Section 536(c) of the Equity in Educational Land-Grant Status Act
of 1994 (7 U.S.C. 301 note) is amended by striking ``2002'' and
inserting ``2011''.
SEC. 729. ENDOWMENT FOR 1994 INSTITUTIONS.
The first sentence of section 533(b) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by
striking ``$4,600,000'' and all that follows through the period and
inserting ``such sums as are necessary to carry out this section for
each of fiscal years 1996 through 2011.''.
SEC. 730. PRECISION AGRICULTURE.
Section 403(i) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 731. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.
Section 405(h) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 732. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE,
AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA
INDICA.
Section 408(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 733. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 734. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
Section 1408(h) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 735. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS
AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES
AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 736. BIOMASS RESEARCH AND DEVELOPMENT.
Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
7624 note) is amended--
(1) in section 307(f), by striking ``2005'' and inserting
``2011''; and
(2) in section 310, by striking ``2005'' and inserting
``2011''.
SEC. 737. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.
Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
amended by striking ``2002'' and inserting ``2011''.
SEC. 738. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS NATIONAL
RESEARCH INITIATIVE.
Section 2(b)(10) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)(10)) is amended by striking
``2002'' and inserting ``2011''.
SEC. 739. FEDERAL AGRICULTURAL RESEARCH FACILITIES AUTHORIZATION OF
APPROPRIATIONS.
Section 1431 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
1556) is amended by striking ``2002'' and inserting ``2011''.
SEC. 740. COTTON CLASSIFICATION SERVICES.
The first sentence of section 3a of the Act of March 3, 1927
(commonly known as the ``Cotton Statistics and Estimates Act''; 7
U.S.C. 473a) is amended by striking ``2002'' and inserting ``2011''.
SEC. 740A. CRITICAL AGRICULTURAL MATERIALS RESEARCH.
Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking ``2002'' and inserting ``2011''.
SEC. 740B. PRIVATE NONINDUSTRIAL HARDWOOD RESEARCH PROGRAM.
(a) In General.--The Secretary shall establish a program to provide
competitive grants to producers to be used for basic hardwood research
projects directed at--
(1) improving timber management techniques;
(2) increasing timber production;
(3) expanding genetic research; and
(4) addressing invasive and endangered species.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2002 through 2011.
Subtitle B--Modifications
SEC. 741. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) Authorization of Appropriations.--Section 534(a)(1)(A) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note)
is amended by striking ``$50,000'' and inserting ``$100,000''.
(b) Withdrawals and Expenditures.--Section 533(c)(4)(A) of such Act
is amended by striking ``section 390(3)'' and all that follows through
``1998)'' and inserting ``section 2(a)(7) of the Tribally Controlled
College or University Assistance Act of 1978)''.
(c) Accreditation.--Section 533(a)(3) of such Act is amended by
striking ``under sections 534 and 535'' and inserting ``under sections
534, 535, and 536''.
(d) 1994 Institutions.--Section 532 of such Act is amended by
striking paragraphs (1) through (30) and inserting the following:
``(1) Bay Mills Community College.
``(2) Blackfeet Community College.
``(3) Cankdeska Cikana Community College.
``(4) College of Menominee Nation.
``(5) Crownpoint Institute of Technology.
``(6) D-Q University.
``(7) Dine College.
``(8) Dull Knife Memorial College.
``(9) Fond du Lac Tribal and Community College.
``(10) Fort Belknap College.
``(11) Fort Berthold Community College.
``(12) Fort Peck Community College.
``(13) Haskell Indian Nations University.
``(14) Institute of American Indian and Alaska Native
Culture and Arts Development.
``(15) Lac Courte Oreilles Ojibwa Community College.
``(16) Leech Lake Tribal College.
``(17) Little Big Horn College.
``(18) Little Priest Tribal College.
``(19) Nebraska Indian Community College.
``(20) Northwest Indian College.
``(21) Oglala Lakota College.
``(22) Salish Kootenai College.
``(23) Sinte Gleska University.
``(24) Sisseton Wahpeton Community College.
``(25) Si Tanka/Huron University.
``(26) Sitting Bull College.
``(27) Southwestern Indian Polytechnic Institute.
``(28) Stone Child College.
``(29) Turtle Mountain Community College.
``(30) United Tribes Technical College.''.
SEC. 742. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
POLICY ACT OF 1977.
Section 1404(4) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103(4)) is amended--
(1) by striking the period at the end of subparagraph (E)
and inserting ``, or''; and
(2) by adding at the end the following: ``(F) is one of the
1994 Institutions (as defined in section 532 of the Equity in
Educational Land-Grant Status Act of 1994).''.
SEC. 743. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT OF
1998.
(a) Priority Mission Areas.--Section 401(c)(2) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7621(c)(2)) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(G) alternative fuels and renewable energy
sources.''.
(b) Precision Agriculture.--Section 403 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7623)
is amended--
(1) in subsection (a)(5)(F), by inserting ``(including
improved use of energy inputs)'' after ``farm production
efficiencies''; and
(2) in subsection (d)--
(A) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the following
new paragraph:
``(4) Improve on farm energy use efficiencies.''.
(c) Thomas Jefferson Initiative for Crop Diversification.--Section
405(a) of the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7625(a)) is amended by striking ``and marketing''
and inserting ``, marketing, and efficient use''.
(d) Coordinated Program of Research, Extension, and Education To
Improve Viability of Small- and Medium-Size Dairy, Livestock, and
Poultry Operations.--Section 407(b)(3) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(b)(3)) is
amended by inserting ``(including improved use of energy inputs)''
after ``poultry systems that increase efficiencies''.
(e) Support for Research Regarding Diseases of Wheat, Triticale,
and Barley Caused by Fusarium Graminearum or By Tilletia Indica.--
(1) Research grant authorized.--Section 408(a) of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7628(a)) is amended to read as follows:
``(a) Research Grant Authorized.--The Secretary of Agriculture may
make grants to consortia of land-grant colleges and universities to
enhance the ability of the consortia to carry out multi-State research
projects aimed at understanding and combating diseases of wheat,
triticale, and barley caused by Fusarium graminearum and related fungi
(referred to in this section as `wheat scab') or by Tilletia indica and
related fungi (referred to in this section as `Karnal bunt').''.
(2) Research components.--Section 408(b) of such Act (7
U.S.C. 7628(b)) is amended--
(A) in paragraph (1), by inserting ``or of Karnal
bunt,'' after ``epidemiology of wheat scab'';
(B) in paragraph (1), by inserting ``, triticale,''
after ``occurring in wheat'';
(C) in paragraph (2), by inserting ``or Karnal
bunt'' after ``wheat scab'';
(D) in paragraph (3)(A), by striking ``and barley
for the presence of'' and inserting ``, triticale, and
barley for the presence of Karnal bunt or of'';
(E) in paragraph (3)(B), by striking ``and barley
infected with wheat scab'' and inserting ``, triticale,
and barley infected with wheat scab or with Karnal
bunt'';
(F) in paragraph (3)(C), by inserting ``wheat
scab'' after ``to render'';
(G) in paragraph (4), by striking ``and barley to
wheat scab'' and inserting ``, triticale, and barley to
wheat scab and to Karnal bunt''; and
(H) in paragraph (5)--
(i) by inserting ``and Karnal bunt'' after
``wheat scab''; and
(ii) by inserting ``, triticale,'' after
``resistant wheat''.
(3) Communications networks.--Section 408(c) of such Act (7
U.S.C. 7628(c)) is amended by inserting ``or Karnal bunt''
after ``wheat scab''.
(4) Technical amendments.--(A) The section heading for
section 408 of such Act is amended by striking ``and barley
caused by fusarium graminearum'' and inserting ``, triticale,
and barley caused by fusarium graminearum or by tilletia
indica''.
(B) The table of sections for such Act is amended by
striking ``and barley caused by fusarium graminearum'' in the
item relating to section 408 and inserting ``, triticale, and
barley caused by Fusarium graminearum or by Tilletia indica''.
(f) Program To Control Johne's Disease.--Title IV of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7621 et seq.) is amended by adding at the end the following new
section:
``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
``(a) Establishment.--The Secretary of Agriculture, in coordination
with State veterinarians and other appropriate State animal health
professionals, may establish a program to conduct research, testing,
and evaluation of programs for the control and management of Johne's
disease in livestock.
``(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section for each of fiscal years 2003 through 2011.''.
SEC. 744. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990.
(a) Agricultural Genome Initiative.--Section 1671(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924(b)) is
amended--
(1) in paragraph (3), by inserting ``pathogens and'' before
``diseases causing economic hardship'';
(2) in paragraph (6), by striking ``and'' at the end;
(3) by redesignating paragraph (7) as paragraph (8); and
(4) by inserting after paragraph (6) the following new
paragraph:
``(7) reducing the economic impact of plant pathogens on
commercially important crop plants; and''.
(b) High-Priority Research and Extension Initiatives.--Section
1672(e) of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 5925) is amended by adding at the end the following new
paragraphs:
``(25) Research to protect the united states food supply
and agriculture from bioterrorism.--Research grants may be made
under this section for the purpose of developing technologies,
which support the capability to deal with the threat of
agricultural bioterrorism.
``(26) Wind erosion research and extension.--Research and
extension grants may be made under this section for the purpose
of validating wind erosion models.
``(27) Crop loss research and extension.--Research and
extension grants may be made under this section for the purpose
of validating crop loss models.
``(28) Land use management research and extension.--
Research and extension grants may be made under this section
for the purposes of evaluating the environmental benefits of
land use management tools such as those provided in the
Farmland Protection Program.
``(29) Water and air quality research and extension.--
Research and extension grants may be made under this section
for the purpose of better understanding agricultural impacts to
air and water quality and means to address them.
``(30) Revenue and insurance tools research and
extension.--Research and extension grants may be made under
this section for the purposes of better understanding the
impact of revenue and insurance tools on farm income.
``(31) Agrotourism research and extension.--Research and
extension grants may be made under this section for the purpose
of better understanding the economic, environmental, and food
systems impacts on agrotourism.
``(32) Harvesting productivity for fruits and vegetables.--
Research and extension grants may be made under this section
for the purpose of improving harvesting productivity for fruits
and vegetables (including citrus), including the development of
mechanical harvesting technologies and effective, economical,
and safe abscission compounds.
``(33) Nitrogen-fixation by plants.--Research and extension
grants may be made under this section for the purpose of
enhancing the nitrogen-fixing ability and efficiency of
legumes, developing new varieties of legumes that fix nitrogen
more efficiently, and developing new varieties of other
commercially important crops that potentially are able to fix
nitrogen.
``(34) Agricultural marketing.--Extension grants may be
made under this section for the purpose of providing education
materials, information, and outreach programs regarding
commodity and livestock marketing strategies for agricultural
producers and for cooperatives and other marketers of any
agricultural commodity, including livestock.
``(35) Environment and private lands research and
extension.--Research and extension grants may be made under
this section for the purpose of researching the use of computer
models to aid in assessment of best management practices on a
watershed basis, working with government, industry, and private
landowners to help craft industry-led solutions to identified
environmental issues, researching and monitoring water, air, or
soil environmental quality to aid in the development of new
approaches to local environmental concerns, and working with
local, State, and federal officials to help craft effective
environmental solutions that respect private property rights
and agricultural production realities.
``(36) Livestock disease research and extension.--Research
and extension grants may be made under this section for the
purpose of identifying possible livestock disease threats,
educating the public regarding livestock disease threats,
training persons to deal with such threats, and conducting
related research.
``(37) Plant gene expression.--Research and development
grants may be made under this section for the purpose of plant
gene expression research to accelerate the application of basic
plant genomic science to the development and testing of new
varieties of enhanced food crops, crops that can be used as
renewable energy sources, and other alternative uses of
agricultural crops.''.
SEC. 745. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
POLICY ACT OF 1977.
(a) National Agricultural Research, Extension, Education, and
Economic Advisory Board.--Section 1408 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is
amended--
(1) in subsection (b)(3)--
(A) by redesignating subparagraphs (R) through (DD)
as subparagraphs (S) through (EE), respectively; and
(B) by inserting after subparagraph (Q) the
following new subparagraph:
``(R) 1 member representing a nonland grant college
or university with a historic commitment to research in
the food and agricultural sciences.'';
(2) in subsection (c)(1), by striking ``and land-grant
colleges and universities'' and inserting ``, land-grant
colleges and universities, and the Committee on Agriculture of
the House of Representatives, the Committee on Agriculture,
Nutrition, and Forestry of the Senate, the Subcommittee on
Agriculture, Rural Development, Food and Drug Administration
and Related Agencies of the Committee on Appropriations of the
House of Representatives, and the Subcommittee on Agriculture,
Rural Development and Related Agencies of the Committee on
Appropriations of the Senate'';
(3) in subsection (d)(1), inserting ``consult with any
appropriate agencies of the Department of Agriculture and''
after ``the Advisory Board shall''; and
(4) in subsection (b)(1), by striking ``30 members'' and
inserting ``31 members''.
(b) Grants for Research on Production and Marketing of Alcohols and
Industrial Hydrocarbons From Agricultural Commodities and Forest
Products.--Section 1419 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is amended--
(1) in subsection (a)(2), by inserting ``and animal fats
and oils'' after ``industrial oilseed crops''; and
(2) in subsection (a)(4), by inserting ``or triglycerides''
after ``other industrial hydrocarbons''.
(c) FAS Overseas Intern Program.--Section 1458(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3291(a)) is amended--
(1) by striking ``and'' at the end of paragraph (8);
(2) by striking the period at the end of paragraph (9) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(10) establish a program, to be coordinated by the
Cooperative State Research, Education, and Extension Service
and the Foreign Agricultural Service, to place interns from
United States colleges and universities at Foreign Agricultural
Service field offices overseas.''.
SEC. 746. BIOMASS RESEARCH AND DEVELOPMENT.
Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
7624 note) is amended--
(1) in section 302(3), by inserting ``or biodiesel'' after
``such as ethanol'';
(2) in section 303(3), by inserting ``animal byproducts,''
after ``fibers,''; and
(3) in section 306(b)(1)--
(A) by redesignating subparagraphs (E) through (J)
as subparagraphs (F) through (K), respectively; and
(B) by inserting after subparagraph (D) the
following new subparagraph:
``(E) an individual affiliated with a livestock
trade association;''.
SEC. 747. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.
Section 1668 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5921) is amended to read as follows:
``SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.
``(a) Purpose.--It is the purpose of this section--
``(1) to authorize and support environmental assessment
research to help identify and analyze environmental effects of
biotechnology; and
``(2) to authorize research to help regulators develop
long-term policies concerning the introduction of such
technology.
``(b) Grant Program.--The Secretary of Agriculture shall establish
a grant program within the Cooperative State Research, Education, and
Extension Service and the Agricultural Research Service to provide the
necessary funding for environmental assessment research concerning the
introduction of genetically engineered plants and animals into the
environment.
``(c) Types of Research.--Types of research for which grants may be
made under this section shall include the following:
``(1) Research designed to identify and develop appropriate
management practices to minimize physical and biological risks
associated with genetically engineered animals and plants once
they are introduced into the environment.
``(2) Research designed to develop methods to monitor the
dispersal of genetically engineered animals and plants.
``(3) Research designed to further existing knowledge with
respect to the characteristics, rates and methods of gene
transfer that may occur between genetically engineered plants
and animals and related wild and agricultural organisms.
``(4) Environmental assessment research designed to provide
analysis, which compares the relative impacts of plants and
animals modified through genetic engineering to other types of
production systems.
``(5) Other areas of research designed to further the
purposes of this section.
``(d) Eligibility Requirements.--Grants under this section shall
be--
``(1) made on the basis of the quality of the proposed
research project; and
``(2) available to any public or private research or
educational institution or organization.
``(e) Consultation.--In considering specific areas of research for
funding under this section, the Secretary of Agriculture shall consult
with the Administrator of the Animal and Plant Health Inspection
Service and the National Agricultural Research, Extension, Education,
and Economics Advisory Board.
``(f) Program Coordination.--The Secretary of Agriculture shall
coordinate research funded under this section with the Office of
Research and Development of the Environmental Protection Agency in
order to avoid duplication of research activities.
``(g) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
such sums as necessary to carry out this section.
``(2) Withholdings from biotechnology outlays.--The
Secretary of Agriculture shall withhold from outlays of the
Department of Agriculture for research on biotechnology, as
defined and determined by the Secretary, at least 3 percent of
such amount for the purpose of making grants under this section
for research on biotechnology risk assessment. Except that,
funding from this authorization should be collected and applied
to the maximum extent practicable to risk assessment research
on all categories identified as biotechnology by the
Secretary.''.
SEC. 748. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.
Section 2(a) of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(a)) is amended by adding at the end the
following new paragraph:
``(3) Determination of high priority research.--Research
priorities shall be determined by the Secretary on an annual
basis, taking into account input as gathered by the Secretary
through the National Agricultural Research, Extension,
Education, and Economics Advisory Board.''.
SEC. 749. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
ACTIVITIES OF 1890 INSTITUTIONS.
Section 1449 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended--
(1) by amending subsection (c) to read as follows:
``(c) Matching Formula.--For each of fiscal years 2003 through
2011, the State shall provide matching funds from non-Federal sources.
Such matching funds shall be for an amount equal to not less than 60
percent of the formula funds to be distributed to the eligible
institution, and shall increase by 10 percent each fiscal year
thereafter until fiscal year 2007.''; and
(2) by amending subsection (d) to read as follows:
``(d) Waiver Authority.--Notwithstanding subsection (f), the
Secretary may waive the matching funds requirement under subsection (c)
above the 50 percent level for fiscal years 2003 through 2011 for an
eligible institution of a State if the Secretary determines that the
State will be unlikely to satisfy the matching requirement.''.
SEC. 749A. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
ACTIVITIES FOR THE UNITED STATES TERRITORIES.
(a) Research Matching Requirement.--Section 3(d)(4) of the Hatch
Act of 1887 (7 U.S.C. 361c(d)(4)) is amended by striking ``the same
matching funds'' and all that follows through the end of the sentence
and inserting ``matching funds requirements from non-Federal sources
for fiscal years 2003 through 2011 in an amount equal to not less than
50 percent of the formula funds to be distributed to the Territory. The
Secretary may waive the matching funds requirements for a Territory for
any of the fiscal years 2003 through 2011 if the Secretary determines
that the Territory will be unlikely to satisfy the matching funds
requirement for that fiscal year.''.
(b) Extension Matching Requirement.--Section 3(e)(4) of the Smith-
Lever Act (7 U.S.C. 343(e)(4)) is amended by striking ``the same
matching funds'' and all that follows through the end of the sentence
and inserting ``matching funds requirements from non-Federal sources
for fiscal years 2003 through 2011 in an amount equal to not less than
50 percent of the formula funds to be distributed to the Territory. The
Secretary may waive the matching funds requirements for a Territory for
any of the fiscal years 2003 through 2011 if the Secretary determines
that the Territory will be unlikely to satisfy the matching funds
requirement for that fiscal year.''.
SEC. 750. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.
(a) Funding.--Section 401(b)(1) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) is
amended to read as follows:
``(1) In general.--
``(A) Total amount to be transferred.--On October
1, 2003, and each October 1 thereafter through
September 30, 2011, the Secretary of Agriculture shall
deposit funds of the Commodity Credit Corporation into
the Account. The total amount of Commodity Credit
Corporation funds deposited into the Account under this
subparagraph shall equal $1,160,000,000.
``(B) Equal amounts.--To the maximum extent
practicable, the amounts deposited into the Account
pursuant to subparagraph (A) shall be deposited in
equal amounts for each fiscal year.
``(C) Availability of funds.--Amounts deposited
into the Account pursuant to subparagraph (A) shall
remain available until expended.''.
(b) Availability of Funds.--Section 401(f)(6) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7621(f)(6)) is amended to read as follows:
``(6) Availability of funds.--Funds made available under
this section to the Secretary prior to October 1, 2003, for
grants under this section shall be available to the Secretary
for a 2-year period.''.
SEC. 751. CARBON CYCLE RESEARCH.
Section 221 of the Agricultural Risk Protection Act of 2000 (Public
Law 106-224; 114 Stat. 407) is amended--
(1) in subsection (a), by striking ``Of the amount'' and
all that follows through ``to provide'' and inserting ``To the
extent funds are made available for this purpose, the Secretary
shall provide'';
(2) in subsection (d), by striking ``under subsection (a)''
and inserting ``for this section''; and
(3) by adding at the end the following new subsection:
``(e) Authorization of Appropriations.--There are authorized to be
appropriated for fiscal years 2002 through 2011 such sums as may be
necessary to carry out this section.''.
SEC. 752. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.
Section 2(3) of the Research Facilities Act (7 U.S.C. 390(2)(3)) is
amended to read as follows:
``(3) Food and agricultural sciences.--The term `food and
agricultural sciences' has the meaning given that term in
section 1404(8) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(8)).''.
SEC. 753. FEDERAL EXTENSION SERVICE.
Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) is
amended by striking ``$5,000,000'' and inserting ``such sums as are
necessary''.
SEC. 754. POLICY RESEARCH CENTERS.
Section 1419A(c)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155(c)(3)) is
amended by striking ``collect and analyze data'' and inserting
``collect, analyze, and disseminate data''.
Subtitle C--Related Matters
SEC. 761. RESIDENT INSTRUCTION AT LAND-GRANT COLLEGES IN UNITED STATES
TERRITORIES.
(a) Purpose.--It is the purpose of this section to promote and
strengthen higher education in the food and agricultural sciences at
agricultural and mechanical colleges located in the Commonwealth of
Puerto Rico, the Virgin Islands of the United States, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated
States of Micronesia, the Republic of the Marshall Islands, or the
Republic of Palau (hereinafter referred to in this section as
``eligible institutions'') by formulating and administering programs to
enhance teaching programs in agriculture, natural resources, forestry,
veterinary medicine, home economics, and disciplines closely allied to
the food and agriculture production and delivery system.
(b) Grants.--The Secretary of Agriculture shall make competitive
grants to those eligible institutions having a demonstrable capacity to
carry out the teaching of food and agricultural sciences.
(c) Use of Grant Funds.--Grants made under subsection (b) shall be
used to--
(1) strengthen institutional educational capacities,
including libraries, curriculum, faculty, scientific
instrumentation, instruction delivery systems, and student
recruitment and retention, in order to respond to identified
State, regional, national, or international education needs in
the food and agricultural sciences;
(2) attract and support undergraduate and graduate students
in order to educate them in identified areas of national need
to the food and agriculture sciences;
(3) facilitate cooperative initiatives between two or more
eligible institutions or between eligible institutions and
units of State Government, organizational in the private
sector, to maximize the development and use of resources such
as faculty, facilities, and equipment to improve food and
agricultural sciences teaching programs; and
(4) conduct undergraduate scholarship programs to assist in
meeting national needs for training food and agricultural
scientists.
(d) Grant Requirements.--
(1) The Secretary of Agriculture shall ensure that each
eligible institution, prior to receiving grant funds under
subsection (b), shall have a significant demonstrable
commitment to higher education programs in the food and
agricultural sciences and to each specific subject area for
which grant funds under this subsection are to be used.
(2) The Secretary of Agriculture may require that any grant
awarded under this section contain provisions that require
funds to be targeted to meet the needs identified in section
1402 of the National Agriculture Research, Extension, and
Teaching Policy Act of 1977.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary for each of the fiscal years
2002 through 2011 to carry out this section.
SEC. 762. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING
AUTHORITIES.
(a) Review of Payment of Compensation.--Section 415(e) of the Plant
Protection Act (7 U.S.C. 7715(e)) is amended by inserting before the
final period the following: ``or review by any officer of the
Government other than the Secretary or the designee of the Secretary''.
(b) Review of Certain Decisions.--
(1) Plant protection act.--Section 442 of the Plant
Protection Act (7 U.S.C. 7772) is amended by adding at the end
following new subsection:
``(f) Secretarial Discretion.--The action of any officer, employee,
or agent of the Secretary in carrying out this section, including
determining the amount of and making any payment authorized to be made
under this section, shall not be subject to review by any officer of
the Government other than the Secretary or the designee of the
Secretary.''.
(2) Other plant and animal pest and disease laws.--Section
11 of the Act of May 29, 1884 (21 U.S.C. 114a; commonly known
as the ``Animal Industry Act'') and the first section of the
Act of September 25, 1981 (7 U.S.C. 147b), are each amended by
adding at the end the following new sentence: ``The action of
any officer, employee, or agent of the Secretary in carrying
out this section, including determining the amount of and
making any payment authorized to be made under this section,
shall not be subject to review by any officer of the Government
other than the Secretary or the designee of the Secretary.''.
(c) Methyl Bromide.--The Plant Protection Act (7 U.S.C. 7701 et
seq.) is amended by inserting after section 418 the following new
section:
``SEC. 419. METHYL BROMIDE.
``(a) In General.--The Secretary, upon request of State, local, or
tribal authorities, shall determine whether methyl bromide treatments
or applications required by State, local, or tribal authorities to
prevent the introduction, establishment, or spread of plant pests
(including diseases) or noxious weeds should be authorized as an
official control or official requirement.
``(b) Administration.--
``(1) Timeline for determination.--The Secretary shall make
the determination required by subsection (a) not later than 90
days after receiving the request for such a determination.
``(2) Regulations.--The promulgation of regulations for and
the administration of this section shall be made without regard
to--
``(A) the notice and comment provisions of section
553 of title 5, United States Code;
``(B) the Statement of Policy of the Secretary of
Agriculture, effective July 24, 1971 (36 Fed. Reg.
13804; relating to notices of proposed rulemaking and
public participation in rulemaking); and
``(C) chapter 35 of title 44, United States Code
(commonly known as the `Paperwork Reduction Act').
``(c) Registry.--Not later than 180 days after the date of the
enactment of this section, the Secretary shall publish, and thereafter
maintain, a registry of State, local, and tribal requirements
authorized by the Secretary under this section.''.
SEC. 763. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR THE
DEVELOPING WORLD.
(a) Grant Program.--The Secretary of Agriculture shall establish a
program to award grants to entities described in subsection (b) for the
development of agricultural biotechnology with respect to the
developing world. The Secretary shall administer and oversee the
program through the Foreign Agricultural Service of the Department of
Agriculture.
(b) Partnerships.--(1) In order to be eligible to receive a grant
under this section, the grantee must be a participating institution of
higher education, a nonprofit organization, or consortium of for profit
institutions with in-country agricultural research institutions.
(2) A participating institution of higher education shall be an
historically black or land-grant college or university, an Hispanic
serving institution, or a tribal college or university that has
agriculture or the biosciences in its curricula.
(c) Competitive Award.--Grants shall be awarded under this section
on a merit-reviewed competitive basis.
(d) Use of Funds.--The activities for which the grant funds may be
expended include the following:
(1) Enhancing the nutritional content of agricultural
products that can be grown in the developing world to address
malnutrition through biotechnology.
(2) Increasing the yield and safety of agricultural
products that can be grown in the developing world through
biotechnology.
(3) Increasing through biotechnology the yield of
agricultural products that can be grown in the developing world
that are drought and stress-resistant.
(4) Extending the growing range of crops that can be grown
in the developing world through biotechnology.
(5) Enhancing the shelf-life of fruits and vegetables grown
in the developing world through biotechnology.
(6) Developing environmentally sustainable agricultural
products through biotechnology.
(7) Developing vaccines to immunize against life-
threatening illnesses and other medications that can be
administered by consuming genetically engineered agricultural
products.
(e) Funding Source.--Of the funds deposited in the Treasury account
known as the Initiative for Future Agriculture and Food Systems on
October 1, 2003, and each October 1 thereafter through October 1, 2007,
the Secretary of Agriculture shall use $5,000,000 during each of fiscal
years 2004 through 2008 to carry out this section.
Subtitle D--Repeal of Certain Activities and Authorities
SEC. 771. FOOD SAFETY RESEARCH INFORMATION OFFICE AND NATIONAL
CONFERENCE.
(a) Repeal.--Subsections (b) and (c) of section 615 of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7654(b) and (c)) are repealed.
(b) Conforming Amendments.--
(1) Generally.--Section 615 of such Act is amended--
(A) in the section heading, by striking ``and
national conference'';
(B) by striking ``(a) Food Safety Research
Information Office.--'';
(C) by redesignating paragraphs (1), (2), and (3)
as subsections (a), (b), and (c), respectively, and
moving the margins 2 ems to the left;
(D) in subsection (b) (as so redesignated), by
redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively, and moving the margins 2 ems
to the left; and
(E) in subsection (c) (as so redesignated), by
striking ``this subsection'' and inserting ``this
section''.
(2) Table of sections.--The table of sections for such Act
is amended by striking ``and National Conference'' in the item
relating to section 615.
SEC. 772. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, RESEARCH,
AND INFORMATION ACT OF 1994.
Section 617 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (Public Law 105-185; 112 Stat. 607) is repealed.
SEC. 773. NATIONAL GENETIC RESOURCES PROGRAM.
Section 1634 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5843) is repealed.
SEC. 774. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.
(a) Repeal.--Section 1639 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5853) is repealed.
(b) Conforming Amendment.--Section 1640(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5854(b)) is
amended by striking ``take into'' and all that follows through
``Weather and''.
SEC. 775. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.
Section 1420 of the National Agricultural Research, Extension and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
1551) is repealed.
SEC. 776. PESTICIDE RESISTANCE STUDY.
Section 1437 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
1558) is repealed.
SEC. 777. EXPANSION OF EDUCATION STUDY.
Section 1438 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
1559) is repealed.
SEC. 778. SUPPORT FOR ADVISORY BOARD.
(a) Repeal.--Section 1412 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is repealed.
(b) Conforming Amendment.--Section 1413(c) of such Act (7 U.S.C.
3128(c)) is amended by striking ``section 1412 of this title and''.
SEC. 779. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL
RESEARCH FACILITIES.
(a) Repeal.--Section 4 of the Research Facilities Act (7 U.S.C.
390b) is repealed.
(b) Conforming Amendment.--Section 2 of such Act (7 U.S.C. 390) is
amended by striking paragraph (5).
Subtitle E--Agriculture Facility Protection
SEC. 790. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL
ENTERPRISES, RESEARCH FACILITIES, AND OTHER ENTITIES.
(a) Definitions.--The Research Facilities Act (7 U.S.C. 390 et
seq.) is amended--
(1) by redesignating section 6 as section 7; and
(2) by inserting after section 5 the following new section:
``SEC. 6. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL
ENTERPRISES, RESEARCH FACILITIES, AND OTHER ENTITIES
AGAINST DISRUPTION.
``(a) Definitions.--For the purposes of this section, the following
definitions apply:
``(1) Animal or agricultural enterprise.--The term `animal
or agricultural enterprise' means any of the following:
``(A) A commercial, governmental, or academic
enterprise that uses animals, plants, or other
biological materials for food or fiber production,
breeding, processing, research, or testing.
``(B) A zoo, aquarium, circus, rodeo, or other
entity that exhibits or uses animals, plants, or other
biological materials for educational or entertainment
purposes.
``(C) A fair or similar event intended to advance
agricultural arts and sciences.
``(D) A facility managed or occupied by an
association, federation, foundation, council, or other
group or entity of food or fiber producers, processors,
or agricultural or biomedical researchers intended to
advance agricultural or biomedical arts and sciences.
``(2) Economic damage.--The term `economic damage' means
the replacement of the following:
``(A) The cost of lost or damaged property
(including all real and personal property) of an animal
or agricultural enterprise.
``(B) The cost of repeating an interrupted or
invalidated experiment.
``(C) The loss of revenue (including costs related
to business recovery) directly related to the
disruption of an animal or agricultural enterprise.
``(D) The cost of the tuition and expenses of any
student to complete an academic program that was
disrupted, or to complete a replacement program, when
the tuition and expenses are incurred as a result of
the damage or loss of the property of an animal or
agricultural enterprise.
``(3) Property of an animal or agricultural enterprise.--
The term `property of an animal or agricultural enterprise'
means real and personal property of or used by any of the
following:
``(A) An animal or agricultural enterprise.
``(B) An employee of an animal or agricultural
enterprise.
``(C) A student attending an academic animal or
agricultural enterprise.
``(4) Disruption.--The term `disruption' does not include
any lawful disruption that results from lawful public,
governmental, or animal or agricultural enterprise employee
reaction to the disclosure of information about an animal or
agricultural enterprise.
``(b) Violation.--A person may not recklessly, knowingly, or
intentionally cause, or contribute to, the disruption of the
functioning of an animal or agricultural enterprise by damaging or
causing the loss of any property of the animal or agricultural
enterprise that results in economic damage, as determined by the
Secretary.
``(c) Assessment of Civil Penalty.--
``(1) In general.--The Secretary may impose on any person
that the Secretary determines violates subsection (b) a civil
penalty in an amount determined under paragraphs (2) and (3).
The civil penalty may be assessed only on the record after an
opportunity for a hearing.
``(2) Recovery of department costs.--The civil penalty
assessed by the Secretary against a person for a violation of
subsection (b) shall be not less than the total cost incurred
by the Secretary for investigation of the violation, conducting
any hearing regarding the violation, and assessing the civil
penalty.
``(3) Recovery of economic damage.--In addition to the
amount determined under paragraph (2), the amount of the civil
penalty shall include an amount not less than the total cost
(or, in the case of knowing or intentional disruption, not less
than 150 percent of the total cost) of the economic damage
incurred by the animal or agricultural enterprise, any employee
of the animal or agricultural enterprise, or any student
attending an academic animal or agricultural enterprise as a
result of the damage or loss of the property of an animal or
agricultural enterprise.
``(d) Identification.--The Secretary shall identify for each civil
penalty assessed under subsection (c), the portion of the amount of the
civil penalty that represents the recovery of Department costs and the
portion that represents the recovery of economic losses.
``(e) Other Factors in Determining Penalty.-- In determining the
amount of a civil penalty under subsection (c), the Secretary shall
consider the following:
``(1) The nature, circumstance, extent, and gravity of the
violation or violations.
``(2) The ability of the injured animal or agricultural
enterprise to continue to operate, costs incurred by the animal
or agricultural enterprise to recover lost business, and the
effect of the violation on earnings of employees of the animal
or agricultural enterprise.
``(3) The interruptions experienced by students attending
an academic animal or agricultural enterprise.
``(4) Whether the violator has previously violated
subsection (a).
``(5) The violator's degree of culpability.
``(f) Fund to Assist Victims of Disruption.--
``(1) Fund established.--There is established in the
Treasury a fund which shall consist of that portion of each
civil penalty collected under subsection (c) that represents
the recovery of economic damages.
``(2) Use of amounts in fund.--The Secretary of Agriculture
shall use amounts in the fund to compensate animal or
agricultural enterprises, employees of an animal or
agricultural enterprise, and student attending an academic
animal or agricultural enterprise for economic losses incurred
as a result of the disruption of the functioning of an animal
or agricultural enterprise in violation of subsection (b).''.
TITLE VIII--FORESTRY INITIATIVES
SEC. 801. REPEAL OF FORESTRY INCENTIVES PROGRAM AND STEWARDSHIP
INCENTIVE PROGRAM.
The Cooperative Forestry Assistance Act of 1978 is amended by
striking section 4 (16 U.S.C. 2103) and section 6 (16 U.S.C. 2103b).
SEC. 802. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.
(a) Findings.--Congress finds the following:
(1) There is a growing dependence on private nonindustrial
forest lands to supply the necessary market commodities and
nonmarket values, such as habitat for fish and wildlife,
aesthetics, outdoor recreation opportunities, and other forest
resources, required by a growing population.
(2) There is a strong demand for expanded assistance
programs for owners of nonindustrial private forest land since
the majority of the wood supply of the United States comes from
nonindustrial private forest land.
(3) The soil, carbon stores, water and air quality of the
United States can be maintained and improved through good
stewardship of nonindustrial private forest lands.
(4) The products and services resulting from stewardship of
nonindustrial private forest lands provide income and
employment that contribute to the economic health and diversity
of rural communities.
(5) Wildfires threaten human lives, property, forests, and
other resources, and Federal and State cooperation in forest
fire prevention and control has proven effective and valuable,
in that properly managed forest stands are less susceptible to
catastrophic fire, as dramatized by the catastrophic fire
seasons of 1998 and 2000.
(6) Owners of private nonindustrial forest lands are being
faced with increased pressure to convert their forestland to
development and other uses.
(7) Complex, long-rotation forest investments, including
sustainable hardwood management, are often the most difficult
commitment for small, nonindustrial private forest landowners
and, thus, should receive equal consideration under cost-share
programs.
(8) The investment of one Federal dollar in State and
private forestry programs is estimated to leverage $9 on
average from State, local, and private sources.
(b) Purpose.--It is the purpose of this section to strengthen the
commitment of the Department of Agriculture to sustainable forestry and
to establish a coordinated and cooperative Federal, State, and local
sustainable forest program for the establishment, management,
maintenance, enhancement, and restoration of forests on nonindustrial
private forest lands in the United States.
(c) Forest Land Enhancement Program.--The Cooperative Forestry
Assistance Act of 1978 is amended by inserting after section 3 (16
U.S.C. 2102) the following new section 4:
``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.
``(a) Establishment.--
``(1) Establishment; purpose.--The Secretary shall
establish a Forest Land Enhancement Program (in this section
referred to as the `Program') for the purpose of providing
financial, technical, educational, and related assistance to
State foresters to encourage the long-term sustainability of
nonindustrial private forest lands in the United States by
assisting the owners of such lands in more actively managing
their forest and related resources by utilizing existing State,
Federal, and private sector resource management expertise,
financial assistance, and educational programs.
``(2) Administration.--The Secretary shall carry out the
Program within, and administer the Program through, the Natural
Resources Conservation Service.
``(3) Coordination.--The Secretary shall implement the
Program in coordination with State foresters.
``(b) Program Objectives.--In implementing the Program, the
Secretary shall target resources to achieve the following objectives:
``(1) Investment in practices to establish, restore,
protect, manage, maintain, and enhance the health and
productivity of the nonindustrial private forest lands in the
United States for timber, habitat for flora and fauna, water
quality, and wetlands.
``(2) Ensuring that afforestation, reforestation,
improvement of poorly stocked stands, timber stand improvement,
practices necessary to improve seedling growth and survival,
and growth enhancement practices occur where needed to enhance
and sustain the long-term productivity of timber and nontimber
forest resources to help meet future public demand for all
forest resources and provide environmental benefits.
``(3) Reduce the risks and help restore, recover, and
mitigate the damage to forests caused by fire, insects,
invasive species, disease, and damaging weather.
``(4) Increase and enhance carbon sequestration
opportunities.
``(5) Enhance implementation of agroforestry practices.
``(6) Maintain and enhance the forest landbase and leverage
State and local financial and technical assistance to owners
that promote the same conservation and environmental values.
``(c) Eligibility.--
``(1) In general.--An owner of nonindustrial private forest
land is eligible for cost-sharing assistance under the Program
if the owner--
``(A) agrees to develop and implement an individual
stewardship, forest, or stand management plan
addressing site specific activities and practices in
cooperation with, and approved by, the State forester,
state official, or private sector program in
consultation with the State forester;
``(B) agrees to implement approved activities in
accordance with the plan for a period of not less than
10 years, unless the State forester approves a
modification to such plan; and
``(C) meets the acreage restrictions as determined
by the State forester in conjunction with the State
Forest Stewardship Coordinating Committee established
under section 19.
``(2) State priorities.--The Secretary, in consultation
with the State forester and the State Forest Stewardship
Coordinating Committee may develop State priorities for cost
sharing under the Program that will promote forest management
objectives in that State.
``(3) Development of plan.--An owner shall be eligible for
cost-share assistance for the development of the individual
stewardship, forest, or stand management plan required by
paragraph (1).
``(d) Approved Activities.--
``(1) Development.--The Secretary, in consultation with the
State forester and the State Forest Stewardship Coordinating
Committee, shall develop a list of approved forest activities
and practices that will be eligible for cost-share assistance
under the Program within each State.
``(2) Type of activities.--In developing a list of approved
activities and practices under paragraph (1), the Secretary
shall attempt to achieve the establishment, restoration,
management, maintenance, and enhancement of forests and trees
for the following:
``(A) The sustainable growth and management of
forests for timber production.
``(B) The restoration, use, and enhancement of
forest wetlands and riparian areas.
``(C) The protection of water quality and
watersheds through the application of State-developed
forestry best management practices.
``(D) Energy conservation and carbon sequestration
purposes.
``(E) Habitat for flora and fauna.
``(F) The control, detection, and monitoring of
invasive species on forestlands as well as preventing
the spread and providing for the restoration of lands
affected by invasive species.
``(G) Hazardous fuels reduction and other
management activities that reduce the risks and help
restore, recover, and mitigate the damage to forests
caused by fire.
``(H) The development of forest or stand management
plans.
``(I) Other activities approved by the Secretary,
in coordination with the State forester and the State
Forest Stewardship Coordinating Committee.
``(e) Cooperation.--In implementing the Program, the Secretary
shall cooperate with other Federal, State, and local natural resource
management agencies, institutions of higher education, and the private
sector.
``(f) Reimbursement of Eligible Activities.--
``(1) In general.--The Secretary shall share the cost of
implementing the approved activities that the Secretary
determines are appropriate, in the case of an owner that has
entered into an agreement to place nonindustrial private forest
lands of the owner in the Program.
``(2) Rate.--The Secretary shall determine the appropriate
reimbursement rate for cost-share payments under paragraph (1)
and the schedule for making such payments.
``(3) Maximum.--The Secretary shall not make cost-share
payments under this subsection to an owner in an amount in
excess of 75 percent of the total cost, or a lower percentage
as determined by the State forester, to such owner for
implementing the practices under an approved plan. The maximum
payments to any one owner shall be determined by the Secretary.
``(4) Consultation.--The Secretary shall make
determinations under this subsection in consultation with the
State forester.
``(g) Recapture.--
``(1) In general.--The Secretary shall establish and
implement a mechanism to recapture payments made to an owner in
the event that the owner fails to implement any approved
activity specified in the individual stewardship, forest, or
stand management plan for which such owner received cost-share
payments.
``(2) Additional remedy.--The remedy provided in paragraph
(1) is in addition to any other remedy available to the
Secretary.
``(h) Distribution.--The Secretary shall distribute funds available
for cost sharing under the Program among the States only after giving
appropriate consideration to--
``(1) the total acreage of nonindustrial private forest
land in each State;
``(2) the potential productivity of such land;
``(3) the number of owners eligible for cost sharing in
each State;
``(4) the opportunities to enhance non-timber resources on
such forest lands;
``(5) the anticipated demand for timber and nontimber
resources in each State;
``(6) the need to improve forest health to minimize the
damaging effects of catastrophic fire, insects, disease, or
weather; and
``(7) the need and demand for agroforestry practices in
each State.
``(i) Definitions.--In this section:
``(1) Nonindustrial private forest lands.--The term
`nonindustrial private forest lands' means rural lands, as
determined by the Secretary, that--
``(A) have existing tree cover or are suitable for
growing trees; and
``(B) are owned or controlled by any nonindustrial
private individual, group, association, corporation,
Indian tribe, or other private legal entity (other than
a nonprofit private legal entity) so long as the
individual, group, association, corporation, tribe, or
entity has definitive decision-making authority over
the lands, including through long-term leases and other
land tenure systems, for a period of time long enough
to ensure compliance with the Program.
``(2) Owner.--The term `owner' includes a private
individual, group, association, corporation, Indian tribe, or
other private legal entity (other than a nonprofit private
legal entity) that has definitive decision-making authority
over nonindustrial private forest lands through a long-term
lease or other land tenure systems.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(4) State forester.--The term `State forester' means the
director or other head of a State Forestry Agency or equivalent
State official.
``(j) Availability of Funds.--The Secretary shall use $200,000,000
of funds of the Commodity Credit Corporation to carry out the Program
during the period beginning on October 1, 2001, and ending on September
30, 2011.''.
(d) Conforming Amendment.--Section 246(b)(2) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(2)) is amended
by striking ``forestry incentive program'' and inserting ``Forest Land
Enhancement Program''.
SEC. 803. RENEWABLE RESOURCES EXTENSION ACTIVITIES.
(a) Extension and Authorization Increase.--Section 6 of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is amended--
(1) by striking ``$15,000,000'' and inserting
``$30,000,000''; and
(2) by striking ``2002'' and inserting ``2011''.
(b) Sustainable Forestry Outreach Initiative.--The Renewable
Resources Extension Act of 1978 is amended by inserting after section
5A (16 U.S.C. 1674a) the following new section:
``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.
``The Secretary shall establish a program to be known as the
`Sustainable Forestry Outreach Initiative' for the purpose of educating
landowners regarding the following:
``(1) The value and benefits of practicing sustainable
forestry.
``(2) The importance of professional forestry advice in
achieving their sustainable forestry objectives.
``(3) The variety of public and private sector resources
available to assist them in planning for and practicing
sustainable forestry.''.
SEC. 804. ENHANCED COMMUNITY FIRE PROTECTION.
(a) Findings.--Congress finds the following:
(1) The severity and intensity of wildland fires has
increased dramatically over the past few decades as a result of
past fire and land management policies.
(2) The record 2000 fire season is a prime example of what
can be expected if action is not taken.
(3) These wildfires threaten not only the nation's forested
resources, but the thousands of communities intermingled with
the wildlands in the wildland-urban interface.
(4) The National Fire Plan developed in response to the
2000 fire season is the proper, coordinated, and most effective
means to address this wildfire issue.
(5) Whereas adequate authorities exist to tackle the
wildfire issues at the landscape level on Federal lands, there
is limited authority to take action on most private lands where
the largest threat to life and property lies.
(6) There is a significant Federal interest in enhancing
community protection from wildfire.
(b) Enhanced Protection.--The Cooperative Forestry Assistance Act
of 1978 is amended by inserting after section 10 (16 U.S.C. 2106) the
following new section:
``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.
``(a) Cooperative Management Related to Wildfire Threats.--The
Secretary may cooperate with State foresters and equivalent State
officials in the management of lands in the United States for the
following purposes:
``(1) Aid in wildfire prevention and control.
``(2) Protect communities from wildfire threats.
``(3) Enhance the growth and maintenance of trees and
forests that promote overall forest health.
``(4) Ensure the continued production of all forest
resources, including timber, outdoor recreation opportunities,
wildlife habitat, and clean water, through conservation of
forest cover on watersheds, shelterbelts, and windbreaks.
``(b) Community and Private Land Fire Assistance Program.--
``(1) Establishment; purpose.--The Secretary shall
establish a Community and Private Land Fire Assistance program
(in this section referred to as the `Program')--
``(A) to focus the Federal role in promoting
optimal firefighting efficiency at the Federal, State,
and local levels;
``(B) to augment Federal projects that establish
landscape level protection from wildfires;
``(C) to expand outreach and education programs to
homeowners and communities about fire prevention; and
``(D) to establish defensible space around private
landowners homes and property against wildfires.
``(2) Administration and implementation.--The Program shall
be administered by the Forest Service and implemented through
the State forester or equivalent State official.
``(3) Components.--In coordination with existing
authorities under this Act, the Secretary may undertake on both
Federal and non-Federal lands--
``(A) fuel hazard mitigation and prevention;
``(B) invasive species management;
``(C) multi-resource wildfire planning;
``(D) community protection planning;
``(E) community and landowner education
enterprises, including the program known as FIREWISE;
``(F) market development and expansion;
``(G) improved wood utilization;
``(H) special restoration projects.
``(4) Considerations.--The Secretary shall use local
contract personnel wherever possible to carry out projects
under the Program.
``(c) Authorization of Appropriations.--There are hereby authorized
to be appropriated to the Secretary $35,000,000 for each of fiscal
years 2002 through 2011, and such sums as may be necessary thereafter,
to carry out this section.''.
SEC. 805. INTERNATIONAL FORESTRY PROGRAM.
Section 2405(d) of the Global Climate Change Prevention Act of 1990
(title XXIV of Public Law 101-624; 7 U.S.C. 6704(d)) is amended by
striking ``2002'' and inserting ``2011''.
SEC. 806. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE PROGRAM.
(a) Findings.--Congress finds that--
(1) the damage caused by wildfire disasters has been
equivalent in magnitude to the damage resulting from the
Northridge earthquake, Hurricane Andrew, and the recent
flooding of the Mississippi River and the Red River;
(2) more than 20,000 communities in the United States are
at risk from wildfire and approximately 11,000 of those
communities are located near Federal land;
(3) the accumulation of heavy forest fuel loads continues
to increase as a result of disease, insect infestations, and
drought, further increasing the risk of fire each year;
(4) modification of forest fuel load conditions through the
removal of hazardous fuels would--
(A) minimize catastrophic damage from wildfires;
(B) reduce the need for emergency funding to
respond to wildfires; and
(C) protect lives, communities, watersheds, and
wildlife habitat;
(5) the hazardous fuels removed from forest land represent
an abundant renewable resource, as well as a significant supply
of biomass for biomass-to-energy facilities;
(6) the United States should invest in technologies that
promote economic and entrepreneurial opportunities in
processing forest products removed through hazardous fuel
reduction activities; and
(7) the United States should--
(A) develop and expand markets for traditionally
underused wood and other biomass as a value-added
outlet for excessive forest fuels; and
(B) commit resources to support planning,
assessments, and project reviews to ensure that
hazardous fuels management is accomplished
expeditiously and in an environmentally sound manner.
(b) Definitions.--In this section:
(1) Biomass-to-energy facility.--The term ``biomass-to-
energy facility'' means a facility that uses biomass as a raw
material to produce electric energy, useful heat, or a
transportation fuel.
(2) Eligible community.--The term ``eligible community''
means--
(A) any town, township, municipality, or other
similar unit of local government (as determined by the
Secretary), or any area represented by a nonprofit
corporation or institution organized under Federal or
State law to promote broad-based economic development,
that--
(i) has a population of not more than
10,000 individuals;
(ii) is located within a county in which at
least 15 percent of the total primary and
secondary labor and proprietor income is
derived from forestry, wood products, and
forest-related industries, such as recreation,
forage production, and tourism; and
(iii) is located near forest land, the
condition of which land the Secretary
determines poses a substantial present or
potential hazard to the safety of--
(I) a forest ecosystem;
(II) wildlife; or
(III) in the case of a wildfire,
human, community, or firefighter
safety, in a year in which drought
conditions are present; and
(B) any county that is not contained within a
metropolitan statistical area that meets the conditions
described in clauses (ii) and (iii) of subparagraph
(A).
(3) Forest biomass.--The term ``forest biomass'' means fuel
and biomass accumulation from precommercial thinnings, slash,
and brush on forest land of the United States.
(4) Hazardous fuel.--
(A) In general.--The term ``hazardous fuel'' means
any excessive accumulation of organic material on
public and private forest land (especially land in an
urban-wildland interface area or in an area that is
located near an eligible community and designated as
condition class 2 under the report of the Forest
Service entitled `Protecting People and Sustainable
Resources in Fire-Adapted Ecosystems', dated October
13, 2000, or that is designated as condition class 3
under that report) that the Secretary determines poses
a substantial present or potential hazard to the safety
of--
(i) a forest ecosystem;
(ii) wildlife; or
(iii) in the case of wildfire, human,
community, or firefighter safety, in a year in
which drought conditions are present.
(B) Exclusion.--The term ``hazardous fuel'' does
not include forest biomass.
(5) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(6) Secretary.--The term ``Secretary'' means--
(A) the Secretary of Agriculture (or a designee),
with respect to National Forest System land and private
land in the United States; and
(B) the Secretary of the Interior (or a designee)
with respect to Federal land under the jurisdiction of
the Secretary of the Interior or an Indian tribe.
(c) Hazardous Fuel Grant Program.--
(1) Grants.--
(A) In general.--Subject to the availability of
appropriations, the Secretary may make grants to
persons that operate biomass-to-energy facilities to
offset the costs incurred by those persons in
purchasing hazardous fuels derived from public and
private forest land adjacent to eligible communities.
(B) Selection criteria.--The Secretary shall select
recipients for grants under subparagraph (A) based on--
(i) planned purchases by the recipients of
hazardous fuels, as demonstrated by the
recipient through the submission to the
Secretary of such assurances as the Secretary
may require; and
(ii) the level of anticipated benefits of
those purchases in reducing the risk of
wildfires.
(2) Grant amounts.--
(A) In general.--A grant under this subsection
shall--
(i) be based on--
(I) the distance required to
transport hazardous fuels to a biomass-
to-energy facility; and
(II) the cost of removal of
hazardous fuels; and
(ii) be in an amount that is at least equal
to the product obtained by multiplying--
(I) the number of tons of hazardous
fuels delivered to a grant recipient;
by
(II) an amount that is at least $5
but not more than $10 per ton of
hazardous fuels, as determined by the
Secretary taking into consideration the
factors described in clause (i).
(B) Limitation on individual grants.--
(i) In general.--Except as provided in
clause (ii), a grant under subparagraph (A)
shall not exceed $1,500,000 for any biomass-to-
energy facility for any year.
(ii) Small biomass-to-energy facilities.--A
biomass-to-energy facility that has an annual
production of 5 megawatts or less shall not be
subject to the limitation under clause (i).
(3) Monitoring of grant recipient activities.--
(A) In general.--As a condition of receipt of a
grant under this subsection, a grant recipient shall
keep such records as the Secretary may require,
including records that--
(i) completely and accurately disclose the
use of grant funds; and
(ii) describe all transactions involved in
the purchase of hazardous fuels derived from
forest land.
(B) Access.--On notice by the Secretary, the
operator of a biomass-to-energy facility that purchases
hazardous fuels, or uses hazardous fuels purchased,
with funds from a grant under this subsection shall
provide the Secretary with--
(i) reasonable access to the biomass-to-
facility; and
(ii) an opportunity to examine the
inventory and records of the biomass-to-energy
facility.
(4) Monitoring of effect of treatments.--The Secretary
shall monitor Federal land from which hazardous fuels are
removed and sold to a biomass-to-energy facility under this
subsection to determine and document the reduction in fire
hazards on that land.
(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $50,000,000 for
each fiscal year.
(d) Long-Term Forest Stewardship Contracts for Hazardous Fuels
Removal.--
(1) Annual assessment of treatment acreage.--
(A) In general.--Subject to the availability of
appropriations, not later than March 1 of each of
fiscal years 2002 through 2006, the Secretary shall
submit to Congress an assessment of the number of acres
of Federal forest land recommended to be treated during
the subsequent fiscal year using stewardship end result
contracts authorized by paragraph (3).
(B) Components.--The assessment shall--
(i) be based on the treatment schedules
contained in the report entitled `Protecting
People and Sustaining Resources in Fire-Adapted
Ecosystems', dated October 13, 2000 and
incorporated into the National Fire Plan;
(ii) identify the acreage by condition
class, type of treatment, and treatment year to
achieve the restoration goals outlined in the
report within 10-, 15-, and 20-year time
periods;
(iii) give priority to condition class 3
areas (as described in subsection (a)(4)(A)),
include modifications in the restoration goals
based on the effects of--
(I) fire;
(II) hazardous fuel treatments
under the National Fire Plan; or
(III) updates in data;
(iv) provide information relating to the
type of material and estimated quantities and
range of sizes of material that shall be
included in the treatments;
(v) describe the land allocation categories
in which the contract authorities shall be
used; and
(vi) give priority to areas described in
subsection (a)(4)(A).
(2) Funding recommendation.--The Secretary shall include in
the annual assessment under paragraph (1) a request for funds
sufficient to implement the recommendations contained in the
assessment using stewardship end result contracts described in
paragraph (3) in any case in which the Secretary determines
that the objectives of the National Fire Plan would best be
accomplished through forest stewardship end result contracting.
(3) Stewardship end result contracting.--
(A) In general.--Subject to the availability of
appropriations, the Secretary may enter into
stewardship end result contracts to implement the
National Fire Plan on National Forest System land based
on the stewardship treatment schedules provided in the
annual assessments conducted under paragraph (1).
(B) Period of contracts.--The contracting goals and
authorities described in subsections (b) through (g) of
section 347 of the Department of the Interior and
Related Agencies Appropriations Act, 1999 (commonly
known as the `Stewardship End Result Contracting
Demonstration Project') (16 U.S.C. 2104 note; Public
Law 105-277), shall apply to contracts entered into
under this paragraph, except that the period of each
such contract shall be 10 years.
(C) Status report.--Beginning with the assessment
required under paragraph (1) for fiscal year 2003, the
Secretary shall include in the annual assessment under
paragraph (1) a status report of the stewardship end
result contracts entered into under this paragraph.
(4) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
subsection.
(e) Termination of Authority.--The authority provided under this
section shall terminate on September 30, 2006.
SEC. 807. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.
It is the sense of Congress to reaffirm the importance of Public
Law 87-88 (16 U.S.C. 582a et seq.), commonly known as the McIntire-
Stennis Cooperative Forestry Act.
TITLE IX--MISCELLANEOUS PROVISIONS
Subtitle A--Tree Assistance Program
SEC. 901. ELIGIBILITY.
(a) Loss.--Subject to the limitation in subsection (b), the
Secretary of Agriculture shall provide assistance, as specified in
section 902, to eligible orchardists that planted trees for commercial
purposes but lost such trees as a result of a natural disaster, as
determined by the Secretary.
(b) Limitation.--An eligible orchardist shall qualify for
assistance under subsection (a) only if such orchardist's tree
mortality, as a result of the natural disaster, exceeds 15 percent
(adjusted for normal mortality).
SEC. 902. ASSISTANCE.
The assistance provided by the Secretary of Agriculture to eligible
orchardists for losses described in section 901 shall consist of
either--
(1) reimbursement of 75 percent of the cost of replanting
trees lost due to a natural disaster, as determined by the
Secretary, in excess of 15 percent mortality (adjusted for
normal mortality); or
(2) at the discretion of the Secretary, sufficient
seedlings to reestablish the stand.
SEC. 903. LIMITATION ON ASSISTANCE.
(a) Limitation.--The total amount of payments that a person shall
be entitled to receive under this subtitle may not exceed $50,000, or
an equivalent value in tree seedlings.
(b) Regulations.--The Secretary of Agriculture shall issue
regulations--
(1) defining the term ``person'' for the purposes of this
subtitle, which shall conform, to the extent practicable, to
the regulations defining the term ``person'' issued under
section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308)
and the Disaster Assistance Act of 1988 (7 U.S.C. 1421 note);
and
(2) prescribing such rules as the Secretary determines
necessary to ensure a fair and reasonable application of the
limitation established under this section.
SEC. 904. DEFINITIONS.
In this subtitle:
(1) Eligible orchardist.--The term ``eligible orchardist''
means a person who produces annual crops from trees for
commercial purposes and owns 500 acres or less of such trees.
(2) Natural disaster.--The term ``natural disaster''
includes plant disease, insect infestation, drought, fire,
freeze, flood, earthquake, and other occurrences, as determined
by the Secretary.
(3) Tree.--The term ``tree'' includes trees, bushes, and
vines.
Subtitle B--Other Matters
SEC. 921. BIOENERGY PROGRAM.
Notwithstanding any limitations in the Commodity Credit Corporation
Charter Act (15 U.S.C. 714 et seq.) or part 1424 of title 7, Code of
Federal Regulations, the Commodity Credit Corporation shall designate
animal fats, agricultural byproducts, and oils as eligible agricultural
commodities for use in the Bioenergy Program to promote industrial
consumption of agricultural commodities for the production of ethanol
and biodiesel fuels.
SEC. 922. AVAILABILITY OF SECTION 32 FUNDS.
The 2d undesignated paragraph of section 32 of the Act of August
24, 1935 (Public Law 320; 49 Stat. 774; 7 U.S.C. 612c), is amended by
striking ``$300,000,000'' and inserting ``$500,000,000''.
SEC. 923. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
(a) Establishment.--For each of the fiscal years 2002 through 2011,
the Secretary of Agriculture shall use $15,000,000 of the funds
available to the Commodity Credit Corporation to carry out and expand a
seniors farmers' market nutrition program.
(b) Program Purposes.-- The purposes of the seniors farmers' market
nutrition program are--
(1) to provide resources in the form of fresh, nutritious,
unprepared, locally grown fruits, vegetables, and herbs from
farmers' markets, roadside stands and community supported
agriculture programs to low-income seniors;
(2) to increase the domestic consumption of agricultural
commodities by expanding or aiding in the expansion of domestic
farmers' markets, roadside stands, and community supported
agriculture programs; and
(3) to develop or aid in the development of new and
additional farmers' markets, roadside stands, and community
supported agriculture programs.
(c) Regulations.--The Secretary may issue such regulations as the
Secretary considers necessary to carry out the seniors farmers' market
nutrition program.
SEC. 924. DEPARTMENT OF AGRICULTURE AUTHORITIES REGARDING CANEBERRIES.
(a) Authority for Marketing Order and Research and Promotion
Order.--Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Agreement Act
of 1937, is amended--
(1) in subsection (2)--
(A) in paragraph (A), by inserting ``caneberries
(including raspberries, blackberries, and
logenberries),'' after ``other than pears, olives,
grapefruit,''; and
(B) in the second sentence, by inserting
``caneberries (including raspberries, blackberries, and
logenberries),'' after ``effective as to cherries,
apples,''; and
(2) in subsection (6)(I), by inserting ``caneberries
(including raspberries, blackberries, and logenberries)'' after
``tomatoes,''.
(b) Authority With Respect to Imports.--Section 8e(a) of such Act
(7 U.S.C. 608e-1(a)) is amended by inserting ``caneberries (including
raspberries, blackberries, and logenberries),'' after ``pistachios,''.
SEC. 925. NATIONAL APPEALS DIVISION.
Section 278 of the Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 6998) is amended by adding at the end the following new
subsection:
``(f) Finality of Certain Appeal Decisions.--If an appellant
prevails at the regional level in an administrative appeal of a
decision by the Division, the agency may not pursue an administrative
appeal of that decision to the national level.''.
SEC. 926. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS.
Subsection (a) of section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended to read
as follows:
``(a) Outreach and Assistance.--
``(1) In general.--The Secretary of Agriculture (in this
section referred to as the `Secretary') shall provide outreach
and technical assistance programs specifically to encourage and
assist socially disadvantaged farmers and ranchers to own and
operate farms and ranches and to participate equitably in the
full range of agricultural programs. This assistance, which
should enhance coordination and make more effective the
outreach, technical assistance, and education efforts
authorized in specific agriculture programs, shall include
information and assistance on commodity, conservation, credit,
rural, and business development programs, application and
bidding procedures, farm and risk management, marketing, and
other essential information to participate in agricultural and
other programs of the Department.
``(2) Grants and contracts.--The Secretary may make grants
and enter into contracts and other agreements in the
furtherance of this section with the following entities:
``(A) Any community-based organization, network, or
coalition of community-based organizations that--
``(i) has demonstrated experience in
providing agricultural education or other
agriculturally related services to socially
disadvantaged farmers and ranchers;
``(ii) provides documentary evidence of its
past experience of working with socially
disadvantaged farmers and ranchers during the 2
years preceding its application for assistance
under this section; and
``(iii) does not engage in activities
prohibited under section 501(c)(3) of the
Internal Revenue Code of 1986.
``(B) 1890 Land-Grant Colleges, including Tuskegee
Institute, Indian tribal community colleges and Alaska
native cooperative colleges, Hispanic serving post-
secondary educational institutions, and other post-
secondary educational institutions with demonstrated
experience in providing agriculture education or other
agriculturally related services to socially
disadvantaged family farmers and ranchers in their
region.
``(C) Federally recognized tribes and national
tribal organizations with demonstrated experience in
providing agriculture education or other agriculturally
related services to socially disadvantaged family
farmers and ranchers in their region.
``(3) Funding.--There are authorized to be appropriated
$25,000,000 for each fiscal year to make grants and enter into
contracts and other agreements with the entities described in
paragraph (2) and to otherwise carry out the purposes of this
subsection.''.
SEC. 927. EQUAL TREATMENT OF POTATOES AND SWEET POTATOES.
Section 508(a)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)(2)) is amended by striking ``and potatoes'' and inserting ``,
potatoes, and sweet potatoes''.
SEC. 928. REFERENCE TO SEA GRASS AND SEA OATS AS CROPS COVERED BY
NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
Section 196(a)(2)(B) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by inserting
``sea grass and sea oats,'' after ``fish),''.
SEC. 929. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE.
(a) Competition.--Section 921 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is amended--
(1) in subsection (c)--
(A) by striking ``Under'' and inserting the
following:
``(1) Educational, training, and professional development
activities.--Under''; and
(B) by adding at the end the following new
paragraph:
``(2) Competition.--The Graduate School may not enter into
a contract or agreement with a Federal agency to provide
services or conduct activities described in paragraph (1)
unless, before the awarding of the contract or agreement, the
contract or agreement was subject to competition that was open
to individuals and entities of the private sector.''; and
(2) in subsection (i), by striking ``The'' and inserting
``Subject to subsection (c)(2), the''.
(b) Audits of Records.--Such section is further amended by adding
at the end the following new subsection:
``(k) Audits of Records.--The financial records of the Graduate
School relating to contracts and agreements for services or activities
described in subsection (c)(1) shall be made available to the
Comptroller General for purposes of conducting an audit.''.
(c) Conforming Repeal.--Section 1669 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5922) is repealed.
SEC. 930. ASSISTANCE FOR LIVESTOCK PRODUCERS.
(a) Availability of Assistance.--In such amounts as are provided in
advance in appropriation Acts, the Secretary may provide assistance to
dairy and other livestock producers to cover economic losses incurred
by such producers in connection with the production of livestock.
(b) Types of Assistance.--The assistance provided to livestock
producers may be in the form of--
(1) indemnity payments to livestock producers who incur
livestock mortality losses;
(2) livestock feed assistance to livestock producers
affected by shortages of feed;
(3) compensation for sudden increases in production costs;
and
(4) such other assistance, and for such other economic
losses, as the Secretary considers appropriate.
(c) Limitations.--Notwithstanding section 181(a), the Secretary may
not use the funds of the Commodity Credit Corporation to provide
assistance under this section.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.
SEC. 931. COMPLIANCE WITH BUY AMERICAN ACT AND SENSE OF CONGRESS
REGARDING PURCHASE OF AMERICAN-MADE EQUIPMENT, PRODUCTS,
AND SERVICES USING FUNDS PROVIDED UNDER THIS ACT.
(a) Compliance With Buy American Act.--No funds made available
under this Act, whether directly using funds of the Commodity Credit
Corporation or pursuant to an authorization of appropriations contained
in this Act, may be provided to a producer or other person or entity
unless the producer, person, or entity agrees to comply with the Buy
American Act (41 U.S.C. 10a-10c) in the expenditure of the funds.
(b) Sense of Congress.--In the case of any equipment, products, or
services that may be authorized to be purchased using funds provided
under this Act, it is the sense of Congress that producers and other
recipients of such funds should, in expending the funds, purchase only
American-made equipment, products, and services.
(c) Notice to Recipients of Funds.--In providing payments or other
assistance under this Act, the Secretary of Agriculture shall provide
to each recipient of the funds a notice describing the requirements of
subsection (a) and the statement made in subsection (b) by Congress.
SEC. 932. REPORT REGARDING GENETICALLY ENGINEERED FOODS.
(a) In General.--Not later than 1 year after funds are made
available to carry out this section, the Secretary of Agriculture,
acting through the National Academy of Sciences, shall complete and
transmit to Congress a report that includes recommendations for the
following:
(1) Data and tests.--The type of data and tests that are
needed to sufficiently assess and evaluate human health risks
from the consumption of genetically engineered foods.
(2) Monitoring system.--The type of Federal monitoring
system that should be created to assess any future human health
consequences from long-term consumption of genetically
engineered foods.
(3) Regulations.--A Federal regulatory structure to approve
genetically engineered foods that are safe for human
consumption.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Agriculture $500,000 to carry out this
section.
SEC. 933. MARKET NAME FOR PANGASIUS FISH SPECIES.
The term ``catfish'' may not be considered to be a common or usual
name (or part thereof) for the fish Pangasius bocourti, or for any
other fish not classified within the family Ictalariidae, for purposes
of section 403 of the Federal Food, Drug, and Cosmetic Act, including
with respect to the importation of such fish pursuant to section 801 of
such Act.
SEC. 934. PROGRAM OF PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN
PRODUCING FOOD FOR HUMAN CONSUMPTION.
(a) Public Information Campaign.--Not later than 1 year after the
date of the enactment of this Act, the Secretary of Agriculture shall
develop and implement a program to communicate with the public
regarding the use of biotechnology in producing food for human
consumption. The information provided under the program shall include
the following:
(1) Science-based evidence on the safety of foods produced
with biotechnology.
(2) Scientific data on the human outcomes of the use of
biotechnology to produce food for human consumption.
(b) Authorization of Appropriations.--For each of fiscal years 2002
through 2011 there are authorized to be appropriated such sums as may
be necessary to carry out this section.
SEC. 935. GAO STUDY.
(a) In General.--The Comptroller General shall conduct a study and
make findings and recommendations with respect to determining how
producer income would be affected by updating yield bases, including--
(1) whether crop yields have increased over the past 20
years for both program crops and oilseeds;
(2) whether program payments would be disbursed differently
in this Act if yield bases were updated;
(3) what impact this Act's target prices with updated yield
bases would have on producer income; and
(4) what impact lower target prices with updated yield
bases would have on producer income compared to this Act.
(b) Report.--The Comptroller General shall submit a report to
Congress on the study, findings, and recommendations required by
subsection (a), not later than 6 months after the date of the enactment
of this Act.
SEC. 936. INTERAGENCY TASK FORCE ON AGRICULTURAL COMPETITION.
(a) Appointment.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Agriculture shall establish an
Interagency Task Force on Agricultural Competition (in this section
referred to as the ``Task Force'') and, after consultation with the
Attorney General, shall appoint as members of the Task Force such nine
employees of the Department of Agriculture and the Department of
Justice as the Secretary considers to be appropriate. The Secretary
shall designate one member of the Task Force to serve as chairperson of
the Task Force.
(b) Hearings.--The Task Force shall conduct hearings to review the
lessening of competition among purchasers of livestock, poultry, and
unprocessed agricultural commodities in the United States and shall
include in such hearings review of the following matters:
(1) The enforcement of particular Federal laws relating to
competition.
(2) The concentration and vertical integration of the
business operations of such purchasers.
(3) Discrimination and transparency in prices paid by such
purchasers to producers of livestock, poultry, and unprocessed
agricultural commodities in the United States.
(4) The economic protection and bargaining rights of
producers who raise livestock and poultry under contracts.
(5) Marketing innovations and alternatives available to
producers of livestock, poultry, and unprocessed agricultural
commodities in the United States.
(c) Report.--Not later than 1 year after the last member of the
Task Force is appointed, the Task Force shall submit, to the Committee
on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report containing
the findings and recommendations of the Task Force for appropriate
administrative and legislative action.
SEC. 937. AUTHORIZATION FOR ADDITIONAL STAFF AND FUNDING FOR THE GRAIN
INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION.
There are authorized to be appropriated such sums as are necessary
to enhance the capability of the Grain Inspection, Packers and
Stockyards Administration to monitor, investigate, and pursue the
competitive implications of structural changes in the meat packing
industry. Sums are specifically earmarked to hire litigating attorneys
to allow the Grain Inspection, Packers and Stockyards Administration to
more comprehensively and effectively pursue its enforcement activities.
SEC. 938. ENFORCEMENT OF THE HUMANE METHODS OF SLAUGHTER ACT OF 1958.
(a) Findings.--Congress finds as follows:
(1) Public demand for passage of Public Law 85-765 (7
U.S.C. 1901 et seq.; commonly known as the ``Humane Methods of
Slaughter Act of 1958'') was so great that when President
Eisenhower was asked at a press conference if he would sign the
bill, he replied, ``If I went by mail, I'd think no one was
interested in anything but humane slaughter''.
(2) The Humane Methods of Slaughter Act of 1958 requires
that animals be rendered insensible to pain when they are
slaughtered.
(3) Scientific evidence indicates that treating animals
humanely results in tangible economic benefits.
(4) The United States Animal Health Association passed a
resolution at a meeting in October 1998 to encourage strong
enforcement of the Humane Methods of Slaughter Act of 1958 and
reiterated support for the resolution at a meeting in 2000.
(5) The Secretary of Agriculture is responsible for fully
enforcing the Act, including monitoring compliance by the
slaughtering industry.
(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Agriculture should fully enforce Public Law 85-765 (7
U.S.C. 1901 et seq.; commonly known as the ``Humane Methods of
Slaughter Act of 1958'') by ensuring that humane methods in the
slaughter of livestock--
(1) prevent needless suffering;
(2) result in safer and better working conditions for
persons engaged in the slaughtering industry;
(3) bring about improvement of products and economies in
slaughtering operations; and
(4) produce other benefits for producers, processors, and
consumers that tend to expedite an orderly flow of livestock
and livestock products in interstate and foreign commerce.
(c) Policy of the United States.--It is the policy of the United
States that the slaughtering of livestock and the handling of livestock
in connection with slaughter shall be carried out only by humane
methods, as provided by Public Law 85-765 (7 U.S.C. 1901 et seq.;
commonly known as the ``Humane Methods of Slaughter Act of 1958'').
SEC. 939. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL
WELFARE ACT.
(a) Penalties and Foreign Commerce Provisions of the Animal Welfare
Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is amended--
(1) in subsection (e)--
(A) by inserting ``Penalties.--'' after ``(e)'';
(B) by striking ``$5,000'' and inserting
``$15,000''; and
(C) by striking ``1 year'' and inserting ``2
years''; and
(2) in subsection (g)(2)(B), by inserting at the end before
the semicolon the following: ``or from any State into any
foreign country''.
(b) Effective Date.--The amendments made by this section take
effect 30 days after the date of the enactment of this Act.
SEC. 940. IMPROVE ADMINISTRATION OF ANIMAL AND PLANT HEALTH INSPECTION
SERVICE.
(a) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Administrator of the
Service.
(2) Service.--The term ``Service'' means the Animal and
Plant Health Inspection Service of the Department of
Agriculture.
(b) Exemption.--Notwithstanding any other provision of law, any
migratory bird management carried out by the Secretary shall be exempt
from the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) (including regulations).
(c) Permits; Management.--An agent, officer, or employee of the
Service that carries out any activity relating to migratory bird
management may, under the Migratory Bird Treaty Act (16 U.S.C. 703 et
seq.)--
(1) issue a depredation permit to a stakeholder or
cooperator of the Service; and
(2) manage and take migratory birds.
SEC. 941. RENEWABLE ENERGY RESOURCES.
(a) Environmental Quality Incentives Program.--Section 1240 of the
Food Security Act of 1985 (16 U.S.C. 3839aa), as amended by section 231
of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4); and
(3) by adding at the end the following:
``(5) assistance to farmers and ranchers for the assessment
and development of their on-farm renewable resources, including
biomass for the production of power and fuels, wind, and
solar.''.
(b) Cooperative State Research, Education, and Extension Service.--
The Secretary of Agriculture, through the Cooperative State Research,
Education, and Extension Service and, to the extent practicable, in
collaboration with the Natural Resources Conservation Service, regional
biomass programs under the Department of Energy, and other appropriate
entities, may provide education and technical assistance to farmers and
ranchers for the development and marketing of renewable energy
resources, including biomass for the production of power and fuels,
wind, solar, and geothermal.
SEC. 942. USE OF AMOUNTS PROVIDED FOR FIXED, DECOUPLED PAYMENTS TO
PROVIDE NECESSARY FUNDS FOR RURAL DEVELOPMENT PROGRAMS.
Notwithstanding section 104 of this Act, in each of fiscal years
2002 through 2011, the Secretary of Agriculture shall--
(1) reduce the total amount payable under section 104 of
this Act, on a pro rata basis, so that the total amount of such
reductions equals $100,000,000; and
(2) expend--
(A) $45,000,000 for grants under 306A of the
Consolidated Farm and Rural Development Act (relating
to the community water assistance grant program);
(B) $45,000,000 for grants under 613 of this Act
(relating to the pilot program for development and
implementation of strategic regional development
plans); and
(C) $10,000,000 for grants under section 231(a)(1)
of the Agricultural Risk Protection Act of 2000
(relating to value-added agricultural product market
development grants).
SEC. 943. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY
LIVESTOCK.
Title III of the Packers and Stockyards Act, 1921, (7 U.S.C. 201 et
seq.) is amended by adding at the end the following:
``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY
LIVESTOCK.
``(a) Definitions.--In this section:
``(1) Humanely euthanize.--The term `humanely euthanize'
means to kill an animal by mechanical, chemical, or other means
that immediately render the animal unconscious, with this state
remaining until the animal's death.
``(2) Nonambulatory livestock.--The term `nonambulatory
livestock' means any livestock that is unable to stand and walk
unassisted.
``(b) Unlawful Practices.--
``(1) In general.--Except as provided in paragraph (2), it
shall be unlawful for any stockyard owner, market agency, or
dealer to buy, sell, give, receive, transfer, market, hold, or
drag any nonambulatory livestock unless the nonambulatory
livestock has been humanely euthanized.
``(2) Exceptions.--
``(A) Non-gipsa farms.--Paragraph (1) shall not
apply to any farm the animal care practices of which
are not subject to the authority of the Grain
Inspection, Packers, and Stockyards Administration.
``(B) Veterinary care.--Paragraph (1) shall not
apply in a case in which nonambulatory livestock
receive veterinary care intended to render the
livestock ambulatory.
``(c) Application of Prohibition.--Subsection (b) shall apply
beginning one year after the date of the enactment of the Farm Security
Act of 2001. By the end of such period, the Secretary shall promulgate
regulations to carry out this section.''.
SEC. 944. ANNUAL REPORT ON IMPORTS OF BEEF AND PORK.
The Secretary shall submit to the Congress an annual report on the
amount of beef and pork that is imported into the United States each
calendar year.
<all>
Introduced in Senate
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
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