Agriculture Reform, Food, and Jobs Act of 2013 - Title I: Commodity Programs - Subtitle A: Repeals and Reforms - Repeals, but continues for crop year 2013, direct payments, countercyclical payments, and the average crop revenue election program (ACRE).
Makes adverse market payments available for the 2014-2018 crop years to producers on farms where the actual price for a covered commodity is less than the reference price for such commodity.
Establishes the agriculture risk coverage program for crop years 2014-2018 to make payments to producers for each planted crop when actual farm or county-wide crop revenue is below the agriculture risk coverage guarantee.
Requires producers to make a one-time choice between individual or county coverage.
Subtitle B: Marketing Assistance Loans and Loan Deficiency Payments - Authorizes: (1) nonrecourse marketing assistance loans, (2) loan deficiency payments, (3) payments in lieu of loan deficiency payments for grazed acreage, (4) programs for upland cotton and extra long staple cotton, (5) assistance for peanuts, and (6) recourse loans for high moisture feed grains and seed cotton.
Subtitle C: Sugar - Makes nonrecourse loans to processors of domestically grown sugarcane and domestically grown sugar beets through crop year 2018.
Makes sugarcane and sugar beet quantity estimates through crop year 2018 for: (1) human consumption, (2) carryover stocks, (3) carry-in stocks, (4) domestic processing, and (5) imports. programs for sugar and sugar beets.
Subtitle D: Dairy - Establishes a dairy production margin protection program under which participating dairy operations are paid: (1) basic production margin protection program payments when production margins are less than threshold levels, and (2) supplemental production margin protection program payments if purchased by a participating dairy operation.
Establishes a dairy market stabilization program to assist in balancing the supply of milk with demand when participating dairy operations are experiencing low or negative operating margins.
Provides for a transition period under which the dairy production margin protection program and the milk income loss program shall both be in existence and producers may participate in either program.
Terminates the production margin protection and stabilization programs on December 31, 2018.
Repeals: (1) the dairy products price support program, (2) the milk income loss contract program, and (3) the dairy export incentive program.
Extends: (1) the dairy indemnity program, (2) the dairy forward pricing program, and (3) the dairy promotion and research program.
Subtitle E: Supplemental Agricultural Disaster Assistance Programs - Provides livestock indemnity payments through FY2018 to eligible producers on farms that have incurred excess livestock death losses due to: (1) attacks by animals reintroduced into the wild by the federal government or protected by federal law, or (2) adverse weather.
Establishes the livestock forage disaster program to provide one source for livestock forage disaster assistance for weather-related forage losses by combining specified other livestock forage assistance programs and functions.
Provides compensation through FY2018 to eligible livestock producers for forage losses caused by: (1) drought, (2) fire on federally managed land, or (3) weather-related conditions other than drought or fire.
Provides emergency assistance through FY2018 to eligible producers of livestock, honey bees, and farm-raised fish to aid in the reduction of losses due to disease or adverse weather.
Provides assistance through FY2018 to eligible orchardists and nursery tree growers that: (1) planted trees for commercial purposes but lost the trees as a result of a natural disaster, or (2) have a production history for commercial purposes on planted or existing trees but lost the trees as a result of a natural disaster.
Subtitle F: Administration - Directs the Secretary of Agriculture (USDA) to use Commodity Credit Corporation (CCC) funds, facilities, and authorities to carry out this title.
Suspends permanent price support authority under the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949 for covered commodities, cotton, and sugar through crop year 2018, and for milk through December 31, 2018.
Revises payment limitation requirements.
Prohibits a person or legal entity from receiving specified agricultural benefits during a crop, fiscal, or program year if the average adjusted gross income of such person or entity exceeds $750,000. Requires a study to determine the effects of such limitation on the crop insurance program.
Extends specified direct reimbursement payments for geographically disadvantaged farmers and ranchers through FY2018.
Directs the Secretary to preclude the issuance of agricultural payments to, and on behalf of, deceased individuals that were not eligible for payments.
Authorizes the Secretary to track the benefits provided to individuals and entities under titles I and II of this Act.
Title II: Conservation - Subtitle A: Conservation Reserve Program - Extends the conservation reserve program (CRP) and the farmable wetland program through FY2018.
Sets forth maximum CRP acreage enrollments for FY2014- FY2018.
Subtitle B: Conservation Stewardship Program - Revises, and extends through FY2018, the conservation stewardship program. Limits aggregate payments to a person or entity to $200,000 during FY2014-FY2018.Subtitle C: Environmental Quality Incentives Program - Extends the environmental quality incentives program through FY2018.
Requires that 60% of FY2014-FY2018 program funds be used for livestock production practices, and that 5% of such funds be used for wildlife habitat practices.
Provides payments for wildlife habitat development.
Applies program limitations to the period FY2014-FY2018.
Subtitle D: Agricultural Conservation Easement Program - Establishes the agricultural conservation easement program for the conservation of eligible land and natural resources through easements or other interests in land. (Combines the purposes and coordinates the functions of the wetlands reserve program, the grassland reserve program, and the farmland protection program.)
Sets forth agricultural land and wetland easement requirements.
Subtitle E: Regional Conservation Partnership Program - Establishes a regional conservation partnership program to: (1) accomplish purposes similar to the agricultural water enhancement program, the Chesapeake Bay watershed program, the cooperative conservation partnership initiative, and the Great Lakes basin program; (2) further the conservation use of natural resources on a regional or watershed scale; and (3) encourage partners to cooperate with producers in meeting or avoiding the need for regulatory requirements related to production on eligible land and implementing projects that affect multiple agricultural or nonindustrial private forest operations on a local, state, or regional basis.
Authorizes the Secretary to enter into a partnership agreement for up to 5 years, with a one-time extension for up to 12 months.
Provides program funding for FY2014-FY2018.
Subtitle F: Other Conservation Programs - Authorizes appropriations through FY2018 for: (1) the conservation of private grazing land program, (2) the grass roots source water protection program, (3) the voluntary public access and habitat incentive program, and (4) the small watershed rehabilitation program.
Establishes a terminal lakes assistance program (in lieu of the desert lakes program) for the purchase of eligible land impacted by flooded or terminal lakes and their associated watershed or riparian resources.
Subtitle G: Funding and Administration - Authorizes the use of CCC funds through FY2018 for: (1) the conservation reserve program, including specified amounts for thinning activities and transferring contract land from retiring owners and operators to beginning and socially disadvantaged farmers and ranchers; (2) the agricultural conservation easement program; (3) the conservation security program; (4) the conservation stewardship program; and (5) the environmental quality incentives program.
Subtitle H: Repeal of Superseded Program Authorities and Transitional Provisions; Technical Amendments - Repeals: (1) the conservation enhancement program, (2) the emergency forestry conservation reserve program, (3) the wetlands reserve program, (4) the farmland protection program, (5) the grassland reserve program, (6) the agricultural water enhancement program, (7) the wildlife habitat incentive program, (8) the Great Lakes Basin program, (9) the Chesapeake Bay watershed program, (10) the cooperative conservation partnership initiative, and (11) the environmental easement program.
Title III: Trade - Subtitle A: Food for Peace Act - Extends specified programs and authorizations of appropriations under the Food for Peace Act through FY2018.
Prohibits assistance to the Democratic People's Republic of Korea (North Korea).
Subtitle B: Agricultural Trade Act of 1978 - Extends through FY2018: (1) export credit guarantee programs, (2) the market access program, and (3) the foreign market cooperator program.
Subtitle C: Other Agricultural Trade Laws - Extends through FY2018: (1) the food for progress program, (2) the Bill Emerson Humanitarian Trust, (3) the McGovern-Dole international food for education and child nutrition program, (4) technical assistance for specialty crops, (5) the Global Crop Diversity Trust, and (6) local and regional food aid procurement projects.
Establishes the Donald Payne Horn of Africa food resilience program. Authorizes FY2014-FY2018 appropriations.
Directs the Secretary to plan for establishment of a position of Under Secretary of Agriculture for Foreign Agricultural Services.
Title IV: Nutrition - Subtitle A: Supplemental Nutrition Assistance Program - Extends the supplemental nutrition assistance program (SNAP, formerly known as the food stamp program) through FY2018.
Revises, establishes, or extends program requirements, including those regarding: (1) utility allowances, (2) participant eligibility, (3) lottery or gambling winner ineligibility, (4) retail food stores, (5) food assistance security, (6) restaurant meals, (7) performance bonus payments, (8) employment and training programs, (9) community food projects, (10) nutrition education, (11) disqualification of certain felons, (12) the food distribution program on Indian reservations, (13) commodity purchases for emergency food assistance, (14) prevention of recipient and retail food store trafficking, and (15) access to grocery delivery for homebound seniors and individuals with disabilities.
Subtitle B: Commodity Distribution Programs - Extends through FY2018: (1) the commodity distribution program, (2) the commodity supplemental food program, and (3) the distribution of surplus commodities to special nutrition projects program.
Amends the Commodity Distribution Reform Act and WIC Amendments of 1987 with regard to the processing of commodities.
Subtitle C: Miscellaneous - Extends funding through FY2018 for: (1) the senior farmers' market nutrition program, and (2) the purchase of fresh fruits and vegetables for distribution to schools and service institutions.
Repeals the nutrition information and awareness pilot program.
Revises and provides funding through FY2018 for the hunger-free communities program.
Establishes the healthy food financing initiative.
Requires the Secretary to buy eligible pulse crops (dry beans, dry peas, lentils, and chickpeas) and related products for the school breakfast and lunch programs.
Requires up to five demonstration projects to facilitate the purchase by school food authorities of unprocessed and minimally processed locally grown and locally raised agricultural products.
Establishes: (1) in the office of the Under Secretary for Food, Nutrition, and Consumer Services a multiagency task force to provide coordination and direction for commodity programs; and (2) a Food and Agriculture Service Learning Program to increase knowledge of agriculture and improve the nutritional health of children.
Title V: Credit - Subtitle A: Farmer Loans, Servicing, and Other Assistance Under the Consolidated Farm and Rural Development Act - Restructures agricultural credit program requirements under the Consolidated Farm and Rural Development Act.
Allows: (1) additional legal entities to qualify for farm ownership loans, and (2) other acceptable experiences to qualify for the three-year farming eligibility requirement for direct loans.
Authorizes appropriations through FY2018 for the conservation loan and loan guarantee program.
Increases maximum down payment loan program amounts.
Title VI: Rural Development -- Subtitle A: Reorganization of the Consolidated Farm and Rural Development Act -- Amends the Consolidated Farm and Rural Development Act to reauthorize through FY2018 the water, waste disposal and wastewater facility grant and loan program, with a funding priority for rural communities with populations of under 5,500.
Reauthorizes the Community Facilities Loan and Grant Program. Directs the Secretary make up to 3% of funds provided through the Program available to applicants for technical assistance to help smaller communities in the development of their loan and grant applications.
Reauthorizes the Rural Water and Wastewater Circuit Rider Program, the Rural Business Development Program, and general loan and grant authorities for rural development.
Subtitle B: Rural Electrification -- Amends the Rural Electrification Act of 1926 to reauthorize through FY2018 guarantees for bonds and notes issued for electrification or telephone purposes as well as expansion of 911 access.
Authorizes the Secretary to begin providing combinations of grants and loans for the expansion of broadband service.
Subtitle C: Miscellaneous - Reauthorizes through FY 2018 the distance learning and telemedicine program supporting equipment and infrastructure improvements that enhance telecommunications capabilities at educational and medical facilities.
Authorizes the Secretary to issue zero-interest loans under a Rural Energy Savings Program to any electric cooperative or coordinated group of electric cooperatives for the purpose of lending the funds to their customers to make energy saving retrofit and structural improvements.
Title VII: Research, Extension, and Related Matters - Subtitle A: National Agricultural Research, Extension, and Teaching Policy Act of 1977 - Reauthorizes through FY 2018 the National Agricultural Research, Extension, and Teaching Policy Act of 1977 and specified grant programs under it.
Directs the Secretary to carry out a competitive veterinary services grant program.
Subtitle B: Food, Agriculture, Conservation, and Trade Act of 1990 - Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to reauthorize through FY2018 specified programs, systems, and initiatives, including: (1) the Sustainable Agriculture Technology Development and Transfer Program, (2) the National Training Program, (3) the National Genetics Resources Program, (4) the National Agricultural Weather Information System, (5) the Agricultural Genome Initiative, (6) various specified high-priority research and extension initiatives, (7) the Organic Agriculture Research and Extension Initiative, (8) the Assistive Technology Program for Farmers with Disabilities, and (9) the National Rural Information Center Clearinghouse.
Directs the Secretary to carry out: (1) a Pulse Health Initiative, (2) a forestry and forestry products research and extension initiative, and (3) a farm animal integrated research initiative.
Authorizes the Secretary to prioritize regional centers of excellence established for specific agricultural commodities.
Subtitle C: Agricultural Research, Extension, and Education Reform Act of 1998 - Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to reauthorize through FY2018: (1) the Food Animal Residue Avoidance Database Program, and (2) the Office of Pest Management Policy.
Funds the Specialty Crop Research Initiative though FY2018.
Establishes four Regional Integrated Pest Management Centers, which shall be located in the north central, northeastern, southern, and western regions of the United States.
Subtitle D: Other Laws - Reauthorizes through FY2018 the Critical Agricultural Materials Act, the Equity in Educational Land-Grant Status Act of 1994, the Research Facilities Act, the Competitive, Special, and Facilities Research Grant Act, the Renewable Resources Extension Act of 1978, and the National Aquaculture Act of 1980.
Reauthorizes also through FY2018 the Enhanced Use Lease Authority Pilot Program under the Department of Agriculture Reorganization Act of 1994.
Amends the Farm Security and Rural Investment Act of 2002 to require: (1) a set-aside of funds for beginning farmers and ranchers who are veterans, and (2) competitive grants to states to establish and improve farm safety programs.
Subtitle E: Food, Conservation, and Energy Act of 2008 - Amends the Food, Conservation, and Energy Act of 2008 to reauthorize through FY2018: (1) the Agricultural Biosecurity Communication Center; (2) assistance to build local capacity in agricultural biosecurity planning, preparation, and response; (3) research and development of agricultural countermeasures; and (4) the agricultural biosecurity grant program.
Continues through FY2018 the Grazinglands Research Laboratory at El Reno, Oklahoma.
Reauthorizes through FY2018 the Natural Products Research Program and the Sun Grant Program.
Directs the Secretary to establish a nonprofit Foundation for Food and Agriculture Research.
Title VIII: Forestry - Subtitle A: Repeal of Certain Forestry Programs - Repeals: (1) the forest land enhancement program under the Cooperative Forestry Assistance Act of 1978, (2) the Hispanic-serving institution agricultural land national resources leadership program under the Food, Conservation, and Energy Act of 2008, and (3) the tribal watershed forestry assistance program under the Healthy Forests Restoration Act of 2003.
Subtitle B: Reauthorization of Cooperative Forestry Assistance Act of 1978 - Amends the Cooperative Forestry Assistance Act of 1978 to reauthorize through FY2018 the requirement for a state forester to make a state-wide assessment of forest resource conditions and a long-term state-wide forest resource strategy.
Subtitle C: Reauthorization of Other Forestry-Related Laws - Amends specified Acts to reauthorize through FY20018 the forestry rural revitalization program, the Office of International Forestry, and the healthy forests reserve program.
Amends the Healthy Forests Restoration Act of 2003 to direct the Secretary, if requested by a state governor, to designate as part of an insect and disease treatment program one or more subwatersheds (sixth-level hydrologic units) in at least one national forest in each state experiencing an insect or disease epidemic.
Authorizes the Chief of the Forest Service and the Director of the Bureau of Land Management (BLM) to enter into stewardship contracting projects with private persons or other public or private entities to perform services to achieve land management goals for the national forests and the public lands that meet local and rural community needs.
Subtitle D: Miscellaneous Provisions - Amends the McIntire-Stennis Cooperative Forestry Act to waive the matching funds requirement for eligible 1890 Institutions if the allocation is below $200,000.
Directs the Secretary to revise the strategic plan for forest inventory and analysis initially prepared under the Forest and Rangeland Renewable Resources Research Act of 1978 to meet specified requirements.
Authorizes the Secretary, for any state seeking reimbursement for amounts expended for resources and services provided to another state for the management and suppression of a wildfire, to accept the reimbursement amounts from the other state and pay them to the state seeking reimbursement.
Title IX: Energy - Extends through FY2018: (1) the biobased marketing program, (2) biorefinery, renewable chemical, and biobased product manufacturing assistance, (3) the bioenergy program for advanced biofuels, (4) the biodiesel fuel education program, (5) the rural energy for America program, (6) biomass research and development, (7) the feedstock flexibility program for bioenergy producers, (8) the biomass crop assistance program, and (9) the community wood energy program.
Repeals the forest biomass for energy program under the Farm Security and Rural Investment Act of 2002 and the renewable fertilizer study under the Food, Conservation, and Energy Act of 2008.
Title X: Horticulture - Extends through FY2018: (1) the specialty crop market news program, (2) the farmers market and local food promotion program, (3) organic production and market initiatives, (4) food safety education initiatives, and (5) specialty crop block grants.
Repeals the specialty crop movement-to-market program.
Directs the Secretary to study the production and marketing of locally or regionally produced agricultural food products, and evaluate the effectiveness of programs designed to expand or facilitate local food systems.
Establishes the National Clean Plant Network.
Exempts the bulk bin shipment of apples to Canada from specified Apple Export Act inspection requirements.
Revises requirements for exemption of certified organic products from promotion order assessments.
Title XI: Crop Insurance - Amends the Federal Crop Insurance Act to direct the Federal Crop Insurance Corporation (FCIC) to offer crop producers the opportunity to purchase coverage in combination with an individual buy up policy or plan of insurance that would allow the payment of indemnities to a producer equal to part of the deductible under the policy or plan, if sufficient area data is available (Supplemental Coverage Option, based on area yield and loss, individual yield or loss, or a combination of both). Allows a producer also to purchase additional coverage on a margin basis alone or in combination with individual yield or loss or area yield or loss.
Makes permanent the pilot program under which FCIC pays a portion of the premiums for insurance plans or policies for which the insurable unit is defined as a whole farm or enterprise unit.
Makes separate enterprise units available for irrigated and non-irrigated acreages of crops beginning with crop year 2014.
Revises the adjustment in actual production history used to establish insurable yields.
Requires FCIC to review any policy or pilot program to carry out research and development for new crop insurance policies and submit such policy or program to the Board of Directors, if the policy or program will likely result in a marketable policy and improved coverage.
Specifies conditions for the FCIC Board to determine, in its sole discretion, when reviewing a policy, plan of insurance, or other submitted material for approval for reinsurance.
Directs the Board to ensure that any Standard Reinsurance Agreement is budget neutral.
Requires the FCIC to establish procedures to allow insured producers up to 120 days to settle claims involving corn determined to have low test weight.
Requires FCIC, beginning not later than the 2014 upland cotton crop, to make available to producers of maximum eligible acres of upland cotton an additional policy (the Stacked Income Protection Plan).
Requires FCIC and the Risk Management Agency, beginning with the 2014 crop, to make available a revenue crop insurance program for peanuts based on a price equal to the Rotterdam price index for peanuts, as adjusted to reflect the farmer stock price of peanuts in the United States.
Directs the Secretary to: (1) maintain and upgrade FCIC information management systems used in the administration and enforcement of this title, and (2) implement an acreage reporting streamlining initiative to permit producers to report acreage and other information directly to USDA.
Directs the FCIC to carry out research and development to develop a whole farm risk management insurance plan, with a liability limitation of $1.5 million, that allows a diversified crop or livestock producer the option to qualify for an indemnity in specified circumstances.
Requires the FCIC to offer to: (1) contract with qualified entities to study whether offering policies that cover specialty crops from food safety and contamination issues would benefit agricultural producers, and (2) contract with a qualified person to study the feasibility of insuring swine producers for a catastrophic event.
Requires FCIC to contract for: (1) research and development regarding a policy to insure producers of catfish against reduction in the margin between market value and selected production costs; (2) a study to determine the feasibility of insuring commercial poultry production against business disruptions caused by integrator bankruptcy, and a separate study to determine the feasibility of insuring poultry producers for a catastrophic event; (3) a study to determine the best method of insuring seafood harvesters; (4) research and development regarding policies to insure biomass and sweet sorghum grown to produce feedstocks for renewable biofuel, renewable electricity, or biobased products; and (5) research and development regarding a policy to insure alfalfa.
Requires the FCIC to offer producers of organic crops price elections for all organic crops produced in compliance with USDA standards under the Organic Foods Production Act of 1990 that reflect the actual retail or wholesale prices, as appropriate, received by producers for organic crops.
Authorizes the FCIC, at its sole discretion, to conduct a pilot program to provide financial assistance for producers of underserved crops and livestock (including specialty crops) to purchase an index-based weather insurance product from a private insurance company.
Defines "beginning farmer or rancher" as a farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than five crop years. Requires a beginning farmer or rancher to receive crop insurance premium assistance 10 percentage points greater than otherwise available premium assistance.
Directs the Secretary to: (1) provide organic certification cost share assistance; (2) support risk management education and community outreach partnerships; and (3) make agricultural management assistance grants to producers in states with a low level of federal crop insurance participation and availability, as well as to producers underserved by the federal crop insurance program.
Revises requirements related to crop production on native sod.
Directs the Secretary to improve the existing Internet website through which agricultural producers in any state may identify crop insurance options.
Directs the Comptroller General (GAO) to study fraudulent crop insurance claims and benefits provided under them.
Title XII: Miscellaneous - Subtitle A: Socially Disadvantages Producers and Limited Resource Producers - Authorizes appropriations through FY2018 for outreach and assistance for socially disadvantaged or veteran farmers and ranchers, as well as for the USDA Office of Advocacy and Outreach.
Directs the Secretary to award a competitive grant to an eligible 1890 Institution to establish a Socially Disadvantaged Farmers and Ranchers Policy Research Center.
Subtitle B: Livestock - Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to establish: (1) the wildlife reservoir zoonotic disease initiative, and (2) a program to improve the U.S. sheep industry.
Authorizes appropriations through FY2018 for: (1) the national aquatic animal health plan, and (2) the trichinae certification program.
Authorizes a feral swine eradication pilot program.
Directs the Secretary to offer to enter into contracts, grants, cooperative agreements, or other legal instruments with eligible diagnostic animal health laboratories to: (1) enhance the Secretary's capability to respond in a timely manner to emerging or existing bioterrorist threats to animal health; (2) provide the capacity and capability, among other things, for standardized test procedures, equipment, laboratory biosafety and biosecurity levels, quality management system requirements, and interconnected electronic reporting and transmission of data; and (3) coordinate the development, implementation, and enhancement of national veterinary diagnostic laboratory capabilities.
Requires the Secretary to ensure that the USDA continues to administer the avian influenza surveillance program in commercial poultry through the National Poultry Improvement Program.
Subtitle C: Other Miscellaneous Provisions - Amends the Department of Agriculture Reorganization Act of 1994 to establish the position in the USDA of Military Veterans Agricultural Liaison.
Amends the Food, Conservation, and Energy Act of 2008 to authorize appropriations through FY2018 for grants to improve agricultural labor force supply, stability, safety, and training.
Revises requirements for the noninsured crop disaster assistance program to provide coverages based on individual yields (other than for value-loss crops) equivalent to: (1) catastrophic risk protection (as under current law), or (2) certain additional coverage not exceeding 65%.
Makes crops grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or biobased products eligible for noninsured crop disaster assistance.
Directs the Secretary to establish in the Office of the Secretary an Office of Tribal Relations.
Authorizes the Secretary to make grants to states and tribal governments to support their efforts to promote the domestic maple syrup industry.
Amends the Animal Welfare Act to prohibit, and subject to criminal penalties, attending or causing a minor to attend an animal fight.
Establishes the Pima Cotton Trust Fund, the Agriculture Wool Apparel Manufacturers Trust Fund, and the Citrus Disease Research and Development Trust Fund.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2498 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2498
To reauthorize agricultural programs through 2018.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2013
Mr. Loebsack (for himself, Mr. Braley of Iowa, and Mrs. Bustos)
introduced the following bill; which was referred to the Committee on
Agriculture
_______________________________________________________________________
A BILL
To reauthorize agricultural programs through 2018.
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) In General.--This Act may be cited as the ``Agriculture Reform,
Food, and Jobs Act of 2013''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--COMMODITY PROGRAMS
Subtitle A--Repeals and Reforms
Sec. 1101. Repeal of direct payments.
Sec. 1102. Repeal of counter-cyclical payments.
Sec. 1103. Repeal of average crop revenue election program.
Sec. 1104. Definitions.
Sec. 1105. Base acres.
Sec. 1106. Payment yields.
Sec. 1107. Availability of adverse market payments.
Sec. 1108. Agriculture risk coverage.
Sec. 1109. Producer agreement required as condition of provision of
payments.
Sec. 1110. Period of effectiveness.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Economic adjustment assistance to users of upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Sec. 1210. Adjustments of loans.
Subtitle C--Sugar
Sec. 1301. Sugar program.
Subtitle D--Dairy
Part I--Dairy Production Margin Protection and Dairy Market
Stabilization Programs
Sec. 1401. Definitions.
Sec. 1402. Calculation of average feed cost and actual dairy production
margins.
subpart a--dairy production margin protection program
Sec. 1411. Establishment of dairy production margin protection program.
Sec. 1412. Participation of dairy operations in production margin
protection program.
Sec. 1413. Production history of participating dairy operations.
Sec. 1414. Basic production margin protection.
Sec. 1415. Supplemental production margin protection.
Sec. 1416. Effect of failure to pay administration fees or premiums.
subpart b--dairy market stabilization program
Sec. 1431. Establishment of dairy market stabilization program.
Sec. 1432. Threshold for implementation and reduction in dairy
payments.
Sec. 1433. Milk marketings information.
Sec. 1434. Calculation and collection of reduced dairy operation
payments.
Sec. 1435. Remitting funds to the Secretary and use of funds.
Sec. 1436. Suspension of reduced payment requirement.
Sec. 1437. Enforcement.
Sec. 1438. Audit requirements.
Sec. 1439. Study; report.
subpart c--administration
Sec. 1451. Duration.
Sec. 1452. Administration and enforcement.
Part II--Dairy Market Transparency
Sec. 1461. Dairy product mandatory reporting.
Sec. 1462. Federal milk marketing order program pre-hearing procedure
for Class III pricing.
Part III--Repeal or Reauthorization of Other Dairy-Related Provisions
Sec. 1471. Repeal of dairy product price support and milk income loss
contract programs.
Sec. 1472. Repeal of dairy export incentive program.
Sec. 1473. Extension of dairy forward pricing program.
Sec. 1474. Extension of dairy indemnity program.
Sec. 1475. Extension of dairy promotion and research program.
Sec. 1476. Extension of Federal Milk Marketing Order Review Commission.
Part IV--Federal Milk Marketing Order Reform
Sec. 1481. Federal milk marketing orders.
Part V--Effective Date
Sec. 1491. Effective date.
Subtitle E--Supplemental Agricultural Disaster Assistance Programs
Sec. 1501. Supplemental agricultural disaster assistance programs.
Subtitle F--Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Payments limited to active farmers.
Sec. 1605. Adjusted gross income limitation.
Sec. 1606. Geographically disadvantaged farmers and ranchers.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Prevention of deceased individuals receiving payments under
farm commodity programs.
Sec. 1609. Appeals.
Sec. 1610. Technical corrections.
Sec. 1611. Assignment of payments.
Sec. 1612. Tracking of benefits.
Sec. 1613. Signature authority.
Sec. 1614. Implementation.
TITLE II--CONSERVATION
Subtitle A--Conservation Reserve Program
Sec. 2001. Extension and enrollment requirements of conservation
reserve program.
Sec. 2002. Farmable wetland program.
Sec. 2003. Duties of owners and operators.
Sec. 2004. Duties of the Secretary.
Sec. 2005. Payments.
Sec. 2006. Contract requirements.
Sec. 2007. Conversion of land subject to contract to other conserving
uses.
Sec. 2008. Effective date.
Subtitle B--Conservation Stewardship Program
Sec. 2101. Conservation stewardship program.
Subtitle C--Environmental Quality Incentives Program
Sec. 2201. Purposes.
Sec. 2202. Definitions.
Sec. 2203. Establishment and administration.
Sec. 2204. Evaluation of applications.
Sec. 2205. Duties of producers.
Sec. 2206. Limitation on payments.
Sec. 2207. Conservation innovation grants and payments.
Sec. 2208. Effective date.
Subtitle D--Agricultural Conservation Easement Program
Sec. 2301. Agricultural Conservation Easement Program.
Subtitle E--Regional Conservation Partnership Program
Sec. 2401. Regional Conservation Partnership Program.
Subtitle F--Other Conservation Programs
Sec. 2501. Conservation of private grazing land.
Sec. 2502. Grassroots source water protection program.
Sec. 2503. Voluntary public access and habitat incentive program.
Sec. 2504. Agriculture conservation experienced services program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Emergency watershed protection program.
Sec. 2507. Terminal lakes assistance.
Sec. 2508. Study of potential improvements to the wetland mitigation
process.
Sec. 2509. Soil and water resource conservation.
Subtitle G--Funding and Administration
Sec. 2601. Funding.
Sec. 2602. Technical assistance.
Sec. 2603. Regional equity.
Sec. 2604. Reservation of funds to provide assistance to certain
farmers or ranchers for conservation
access.
Sec. 2605. Annual report on program enrollments and assistance.
Sec. 2606. Administrative requirements for conservation programs.
Sec. 2607. Rulemaking authority.
Sec. 2608. Standards for State technical committees.
Sec. 2609. Highly erodible land and wetland conservation for crop
insurance.
Sec. 2610. Adjusted gross income limitation for conservation programs.
Subtitle H--Repeal of Superseded Program Authorities and Transitional
Provisions
Sec. 2701. Comprehensive conservation enhancement program.
Sec. 2702. Emergency forestry conservation reserve program.
Sec. 2703. Wetlands reserve program.
Sec. 2704. Farmland protection program and farm viability program.
Sec. 2705. Grassland reserve program.
Sec. 2706. Agricultural water enhancement program.
Sec. 2707. Wildlife habitat incentive program.
Sec. 2708. Great Lakes basin program.
Sec. 2709. Chesapeake Bay watershed program.
Sec. 2710. Cooperative conservation partnership initiative.
Sec. 2711. Environmental easement program.
Sec. 2712. Technical amendments.
TITLE III--TRADE
Subtitle A--Food for Peace Act
Sec. 3001. Set-aside for support for organizations through which
nonemergency assistance is provided.
Sec. 3002. Food aid quality.
Sec. 3003. Minimum levels of assistance.
Sec. 3004. Reauthorization of Food Aid Consultative Group.
Sec. 3005. Oversight, monitoring, and evaluation of Food for Peace Act
programs.
Sec. 3006. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable
prepackaged foods.
Sec. 3007. Limitation on total volume of commodities monetized.
Sec. 3008. Flexibility.
Sec. 3009. Procurement, transportation, testing, and storage of
agricultural commodities for prepositioning
in the United States and foreign countries.
Sec. 3010. Deadline for agreements to finance sales or to provide other
assistance.
Sec. 3011. Minimum level of nonemergency food assistance.
Sec. 3012. Coordination of foreign assistance programs report.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Sec. 3015. Prohibition on assistance for North Korea.
Subtitle B--Agricultural Trade Act of 1978
Sec. 3101. Export credit guarantee programs.
Sec. 3102. Funding for market access program.
Sec. 3103. Foreign market development cooperator program.
Subtitle C--Other Agricultural Trade Laws
Sec. 3201. Food for Progress Act of 1985.
Sec. 3202. Bill Emerson Humanitarian Trust.
Sec. 3203. Promotion of agricultural exports to emerging markets.
Sec. 3204. McGovern-Dole International Food for Education and Child
Nutrition Program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global Crop Diversity Trust.
Sec. 3207. Local and regional food aid procurement projects.
Sec. 3208. Donald Payne Horn of Africa food resilience program.
Sec. 3209. Under Secretary of Agriculture for Trade and Foreign
Agricultural Affairs.
TITLE IV--NUTRITION
Subtitle A--Supplemental Nutrition Assistance Program
Sec. 4001. Access to Grocery Delivery for Homebound Seniors and
Individuals with Disabilities eligible for
supplemental nutrition assistance benefits.
Sec. 4002. Food distribution program on Indian reservations.
Sec. 4003. Standard utility allowances based on the receipt of energy
assistance payments.
Sec. 4004. Eligibility disqualifications.
Sec. 4005. Ending supplemental nutrition assistance program benefits
for lottery or gambling winners.
Sec. 4006. Retail food stores.
Sec. 4007. Improving security of food assistance.
Sec. 4008. Technology modernization for retail food stores.
Sec. 4009. Use of benefits for purchase of community-supported
agriculture share.
Sec. 4010. Restaurant meals program.
Sec. 4011. Quality control standards.
Sec. 4012. Performance bonus payments.
Sec. 4013. Funding of employment and training programs.
Sec. 4014. Authorization of appropriations.
Sec. 4015 Assistance for community food projects.
Sec. 4016. Emergency food assistance.
Sec. 4017. Nutrition education.
Sec. 4018. Retail food store and recipient trafficking.
Sec. 4019. Technical and conforming amendments.
Sec. 4020. Eligibility disqualifications for certain convicted felons.
Subtitle B--Commodity Distribution Programs
Sec. 4101. Commodity distribution program.
Sec. 4102. Commodity supplemental food program.
Sec. 4103. Distribution of surplus commodities to special nutrition
projects.
Sec. 4104. Processing of commodities.
Subtitle C--Miscellaneous
Sec. 4201. Purchase of fresh fruits and vegetables for distribution to
schools and service institutions.
Sec. 4202. Seniors farmers' market nutrition program.
Sec. 4203. Nutrition information and awareness pilot program.
Sec. 4204. Hunger-free communities.
Sec. 4205. Healthy Food Financing Initiative.
Sec. 4206. Pulse crop products.
Sec. 4207. Dietary Guidelines for Americans.
Sec. 4208. Purchases of locally produced foods.
Sec. 4209. Multiagency task force.
Sec. 4210. Food and Agriculture Service Learning Program.
TITLE V--CREDIT
Subtitle A--Farmer Loans, Servicing, and Other Assistance Under the
Consolidated Farm and Rural Development Act
Sec. 5001. Farmer loans, servicing, and other assistance under the
Consolidated Farm and Rural Development
Act.
Subtitle B--Miscellaneous
Sec. 5101. State agricultural mediation programs.
Sec. 5102. Loans to purchasers of highly fractionated land.
Sec. 5103. Removal of duplicative appraisals.
Sec. 5104. Compensation disclosure by Farm Credit System institutions.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Reorganization of the Consolidated Farm and Rural
Development Act
Sec. 6001. Reorganization of the Consolidated Farm and Rural
Development Act.
Sec. 6002. Conforming amendments.
Subtitle B--Rural Electrification
Sec. 6101. Definition of rural area.
Sec. 6102. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6103. Expansion of 911 access.
Sec. 6104. Access to broadband telecommunications services in rural
areas.
Subtitle C--Miscellaneous
Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Definition of rural area for purposes of the Housing Act of
1949.
Sec. 6203. Rural energy savings program.
Sec. 6204. Funding of pending rural development loan and grant
applications.
Sec. 6205. Study of rural transportation issues.
Sec. 6206. Agricultural transportation policy.
Sec. 6207. Value-added agricultural market development program grants.
TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7101. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7102. Specialty crop committee.
Sec. 7103. Veterinary services grant program.
Sec. 7104. Grants and fellowships for food and agriculture sciences
education.
Sec. 7105. Agricultural and food policy research centers.
Sec. 7106. Education grants to Alaska Native serving institutions and
Native Hawaiian serving institutions.
Sec. 7107. Nutrition education program.
Sec. 7108. Continuing animal health and disease research programs.
Sec. 7109. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including
Tuskegee University.
Sec. 7110. Grants to upgrade agricultural and food sciences facilities
and equipment at insular area land-grant
institutions.
Sec. 7111. Hispanic-serving institutions.
Sec. 7112. Competitive grants for international agricultural science
and education programs.
Sec. 7113. University research.
Sec. 7114. Extension service.
Sec. 7115. Supplemental and alternative crops.
Sec. 7116. Capacity building grants for NLGCA institutions.
Sec. 7117. Aquaculture assistance programs.
Sec. 7118. Rangeland research programs.
Sec. 7119. Special authorization for biosecurity planning and response.
Sec. 7120. Distance education and resident instruction grants program
for insular area institutions of higher
education.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7201. Best utilization of biological applications.
Sec. 7202. Integrated management systems.
Sec. 7203. Sustainable agriculture technology development and transfer
program.
Sec. 7204. National Training Program.
Sec. 7205. National Genetics Resources Program.
Sec. 7206. National Agricultural Weather Information System.
Sec. 7207. Agricultural Genome Initiative.
Sec. 7208. High-priority research and extension initiatives.
Sec. 7209. Organic agriculture research and extension initiative.
Sec. 7210. Farm business management.
Sec. 7211. Regional centers of excellence.
Sec. 7212. Assistive technology program for farmers with disabilities.
Sec. 7213. National rural information center clearinghouse.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7301. Relevance and merit of agricultural research, extension, and
education funded by the Department.
Sec. 7302. Integrated research, education, and extension competitive
grants program.
Sec. 7303. Support for research regarding diseases of wheat, triticale,
and barley caused by Fusarium graminearum
or by Tilletia indica.
Sec. 7304. Grants for youth organizations.
Sec. 7305. Specialty crop research initiative.
Sec. 7306. Food animal residue avoidance database program.
Sec. 7307. Office of pest management policy.
Sec. 7308. Authorization of regional integrated pest management
centers.
Subtitle D--Other Laws
Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Research Facilities Act.
Sec. 7404. Competitive, Special, and Facilities Research Grant Act.
Sec. 7405. Enhanced use lease authority pilot program under Department
of Agriculture Reorganization Act of 1994.
Sec. 7406. Renewable Resources Extension Act of 1978.
Sec. 7407. National Aquaculture Act of 1980.
Sec. 7408. Beginning farmer and rancher development program under Farm
Security and Rural Investment Act of 2002.
Subtitle E--Food, Conservation, and Energy Act of 2008
Part I--Agricultural Security
Sec. 7501. Agricultural biosecurity communication center.
Sec. 7502. Assistance to build local capacity in agricultural
biosecurity planning, preparation, and
response.
Sec. 7503. Research and development of agricultural countermeasures.
Sec. 7504. Agricultural biosecurity grant program.
Part II--Miscellaneous
Sec. 7511. Grazinglands research laboratory.
Sec. 7512. Budget submission and funding.
Sec. 7513. Natural products research program.
Sec. 7514. Sun grant program.
Subtitle F--Miscellaneous
Sec. 7601. Foundation for Food and Agriculture Research.
Sec. 7602. Agricultural and food law research, legal tools, and
information.
TITLE VIII--FORESTRY
Subtitle A--Repeal of Certain Forestry Programs
Sec. 8001. Forest land enhancement program.
Sec. 8002. Hispanic-serving institution agricultural land national
resources leadership program.
Sec. 8003. Tribal watershed forestry assistance program.
Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
1978 Programs
Sec. 8101. State-wide assessment and strategies for forest resources.
Subtitle C--Reauthorization of Other Forestry-Related Laws
Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Insect and disease infestation.
Sec. 8204. Stewardship end result contracting projects.
Sec. 8205. Healthy forests reserve program.
Subtitle D--Miscellaneous Provisions
Sec. 8301. McIntire-Stennis Cooperative Forestry Act.
Sec. 8302. Revision of strategic plan for forest inventory and
analysis.
Sec. 8303. Reimbursement of fire funds.
TITLE IX--ENERGY
Sec. 9001. Definitions.
Sec. 9002. Biobased markets program.
Sec. 9003. Biorefinery, renewable chemical, and biobased product
manufacturing assistance.
Sec. 9004. Bioenergy program for advanced biofuels.
Sec. 9005. Biodiesel fuel education program.
Sec. 9006. Rural Energy for America Program.
Sec. 9007. Biomass research and development.
Sec. 9008. Feedstock flexibility program for bioenergy producers.
Sec. 9009. Biomass Crop Assistance Program.
Sec. 9010. Repeal of forest biomass for energy.
Sec. 9011. Community wood energy program.
Sec. 9012. Repeal of renewable fertilizer study.
TITLE X--HORTICULTURE
Sec. 10001. Specialty crops market news allocation.
Sec. 10002. Repeal of grant program to improve movement of specialty
crops.
Sec. 10003. Farmers market and local food promotion program.
Sec. 10004. Study on local food production and program evaluation.
Sec. 10005. Organic agriculture.
Sec. 10006. Food safety education initiatives.
Sec. 10007. Coordinated plant management program.
Sec. 10008. Specialty crop block grants.
Sec. 10009. Recordkeeping, investigations, and enforcement.
Sec. 10010. Report on honey.
Sec. 10011. Removal of AMS inspection authority over apples in bulk
bins.
Sec. 10012. Organic product promotion orders.
Sec. 10013. Effective date.
TITLE XI--CROP INSURANCE
Sec. 11001. Supplemental coverage option.
Sec. 11002. Crop margin coverage option.
Sec. 11003. Premium amounts for catastrophic risk protection.
Sec. 11004. Permanent enterprise unit.
Sec. 11005. Enterprise units for irrigated and nonirrigated crops.
Sec. 11006. Data collection.
Sec. 11007. Adjustment in actual production history to establish
insurable yields.
Sec. 11008. Submission and review of policies.
Sec. 11009. Board review and approval.
Sec. 11010. Consultation.
Sec. 11011. Budget limitations on renegotiation of the Standard
Reinsurance Agreement.
Sec. 11012. Test weight for corn.
Sec. 11013. Stacked Income Protection Plan for producers of upland
cotton.
Sec. 11014. Peanut revenue crop insurance.
Sec. 11015. Authority to correct errors.
Sec. 11016. Implementation.
Sec. 11017. Crop insurance fraud.
Sec. 11018. Approval of costs for research and development.
Sec. 11019. Whole farm risk management insurance.
Sec. 11020. Study of food safety insurance.
Sec. 11021. Crop insurance for livestock.
Sec. 11022. Margin coverage for catfish.
Sec. 11023. Poultry business disruption insurance policy.
Sec. 11024. Study of crop insurance for seafood harvesters.
Sec. 11025. Biomass and sweet sorghum energy crop insurance policies.
Sec. 11026. Alfalfa crop insurance policy.
Sec. 11027. Crop insurance for organic crops.
Sec. 11028. Research and development.
Sec. 11029. Pilot programs.
Sec. 11030. Index-based weather insurance pilot program.
Sec. 11031. Enhancing producer self-help through farm financial
benchmarking.
Sec. 11032. Beginning farmer and rancher provisions.
Sec. 11033. Limitation on premium subsidy based on average adjusted
gross income.
Sec. 11034. Agricultural management assistance, risk management
education, and organic certification cost
share assistance.
Sec. 11035. Crop production on native sod.
Sec. 11036. Technical amendments.
Sec. 11037. Greater accessibility for crop insurance.
Sec. 11038. GAO crop insurance fraud report.
TITLE XII--MISCELLANEOUS
Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers
Sec. 12001. Outreach and assistance for socially disadvantaged farmers
and ranchers and veteran farmers and
ranchers.
Sec. 12002. Socially disadvantaged farmers and ranchers policy research
center.
Sec. 12003. Office of Advocacy and Outreach.
Subtitle B--Livestock
Sec. 12101. Wildlife reservoir zoonotic disease initiative.
Sec. 12102. Trichinae certification program.
Sec. 12103. National Aquatic Animal Health Plan.
Sec. 12104. Sheep production and marketing grant program.
Sec. 12105. Feral swine eradication pilot program.
Sec. 12106. National animal health laboratory network.
Sec. 12107. National poultry improvement plan (NPIP).
Subtitle C--Other Miscellaneous Provisions
Sec. 12201. Military Veterans Agricultural Liaison.
Sec. 12202. Information gathering.
Sec. 12203. Grants to improve supply, stability, safety, and training
of agricultural labor force.
Sec. 12204. Noninsured crop assistance program.
Sec. 12205. Bioenergy coverage in noninsured crop assistance program.
Sec. 12206. Regional economic and infrastructure development.
Sec. 12207. Office of Tribal Relations.
Sec. 12208. Acer access and development program.
Sec. 12209. Prohibition on attending an animal fight or causing a minor
to attend an animal fight; enforcement of
animal fighting provisions.
Sec. 12210. Pima cotton trust fund.
Sec. 12211. Agriculture wool apparel manufacturers trust fund.
Sec. 12212. Citrus disease research and development trust fund.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
TITLE I--COMMODITY PROGRAMS
Subtitle A--Repeals and Reforms
SEC. 1101. REPEAL OF DIRECT PAYMENTS.
(a) Repeal.--Sections 1103 and 1303 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.
(b) Continued Application for 2013 Crop Year.--Sections 1103 and
1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713,
8753), as in effect on the day before the date of enactment of this
Act, shall continue to apply through the 2013 crop year with respect to
all covered commodities (as defined in section 1001 of that Act (7
U.S.C. 8702)) (except pulse crops) and peanuts on a farm.
SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS.
(a) Repeal.--Sections 1104 and 1304 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.
(b) Continued Application for 2013 Crop Year.--Sections 1104 and
1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714,
8754), as in effect on the day before the date of enactment of this
Act, shall continue to apply through the 2013 crop year with respect to
all covered commodities (as defined in section 1001 of that Act (7
U.S.C. 8702)) and peanuts on a farm.
SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION PROGRAM.
(a) Repeal.--Section 1105 of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8715) is repealed.
(b) Continued Application for 2013 Crop Year.--Section 1105 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715), as in
effect on the day before the date of enactment of this Act, shall
continue to apply through the 2013 crop year with respect to all
covered commodities (as defined in section 1001 of that Act (7 U.S.C.
8702)) and peanuts on a farm for which the irrevocable election under
section 1105 of that Act is made before the date of enactment of this
Act.
SEC. 1104. DEFINITIONS.
In this subtitle, subtitle B, and subtitle F:
(1) Actual crop revenue.--The term ``actual crop revenue'',
with respect to a covered commodity for a crop year, means the
amount determined by the Secretary under section 1108(c)(3).
(2) Adverse market payment.--The term ``adverse market
payment'' means a payment made to producers on a farm under
section 1107.
(3) Agriculture risk coverage guarantee.--The term
``agriculture risk coverage guarantee'', with respect to a
covered commodity for a crop year, means the amount determined
by the Secretary under section 1108(c)(4).
(4) Agriculture risk coverage payment.--The term
``agriculture risk coverage payment'' means a payment under
section 1108(c).
(5) Average individual yield.--The term ``average
individual yield'' means the yield reported by a producer for
purposes of subtitle A of the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.), to the maximum extent practicable.
(6) Base acres.--The term ``base acres'', with respect to a
covered commodity on a farm, means the number of acres
established under section 1101 or 1302 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7911, 7952) as in effect
on the date of enactment of this Act, subject to any adjustment
under section 1105 of this Act.
(7) County coverage.--For the purposes of agriculture risk
coverage under section 1108, the term ``county coverage'' means
coverage determined using the total quantity of all acreage in
a county of the covered commodity that is planted or prevented
from being planted for harvest by a producer with the yield
determined by the average county yield described in subsection
(c) of that section.
(8) Covered commodity.--
(A) In general.--The term ``covered commodity''
means wheat, corn, grain sorghum, barley, oats, long
grain rice, medium grain rice, pulse crops, soybeans,
other oilseeds, and peanuts.
(B) Popcorn.--The Secretary--
(i) shall study the feasibility of
including popcorn as a covered commodity by
2014; and
(ii) if the Secretary determines it to be
feasible, shall designate popcorn as a covered
commodity.
(9) Eligible acres.--
(A) In general.--Except as provided in
subparagraphs (B) through (D), the term ``eligible
acres'' means all acres planted or prevented from being
planted to all covered commodities on a farm in any
crop year.
(B) Maximum.--Except as provided in subparagraph
(C), the total quantity of eligible acres on a farm
determined under subparagraph (A) shall not exceed the
average total acres planted or prevented from being
planted to covered commodities and upland cotton on the
farm for the 2009 through 2012 crop years, as
determined by the Secretary.
(C) Adjustment.--The Secretary shall provide for an
adjustment, as appropriate, in the eligible acres for
covered commodities for a farm if any of the following
circumstances occurs:
(i) If a conservation reserve contract for
a farm in a county entered into under section
1231 of the Food Security Act of 1985 (16
U.S.C. 3831) expires or is voluntarily
terminated or cropland is released from
coverage under a conservation reserve contract,
the Secretary shall provide for an adjustment,
as appropriate, in the eligible acres for the
farm to a total quantity that is the higher
of--
(I) the total base acreage for the
farm, less any upland cotton base
acreage, that was suspended during the
conservation reserve contract; or
(II) the product obtained by
multiplying--
(aa) the average proportion
that--
(AA) the total
number of acres planted
to covered commodities
and upland cotton in
the county for crop
years 2009 through
2012; bears to
(BB) the total
number of all acres of
covered commodities,
grassland, and upland
cotton acres in the
county for the same
crop years; by
(bb) the total acres for
which coverage has expired,
voluntarily terminated, or been
released under the conservation
reserve contract.
(ii) The producer has eligible oilseed
acreage as the result of the Secretary
designating additional oilseeds, which shall be
determined in the same manner as eligible
oilseed acreage under section 1101(a)(1)(D) of
the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8711(a)(1)(D)).
(iii) The producer has any acreage not
cropped during the 2009 through 2012 crop
years, but placed into an established rotation
practice for the purposes of enriching land or
conserving moisture for subsequent crop years,
including summer fallow, as determined by the
Secretary.
(D) Exclusion.--The term ``eligible acres'' does
not include any crop subsequently planted during the
same crop year on the same land for which the first
crop is eligible for payments under this subtitle,
unless the crop was planted in an area approved for
double cropping, as determined by the Secretary.
(10) Extra long staple cotton.--The term ``extra long
staple cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or
other similar types of extra long staple cotton,
designated by the Secretary, having characteristics
needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated
cotton-growing regions of the United States designated
by the Secretary or other areas designated by the
Secretary as suitable for the production of the
varieties or types; and
(B) is ginned on a roller-type gin or, if
authorized by the Secretary, ginned on another type gin
for experimental purposes.
(11) Individual coverage.--For purposes of agriculture risk
coverage under section 1108, the term ``individual coverage''
means coverage determined using the total quantity of all
acreage in a county of the covered commodity that is planted or
prevented from being planted for harvest by a producer with the
yield determined by the average individual yield of the
producer described in subsection (c) of that section.
(12) Medium grain rice.--The term ``medium grain rice''
includes short grain rice.
(13) Other oilseed.--The term ``other oilseed'' means a
crop of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, or any oilseed designated by
the Secretary.
(14) Payment acres.--The term ``payment acres'' means, in
the case of adverse market payments, 85 percent of the base
acres for a covered commodity on a farm on which adverse market
payments are made.
(15) Payment yield.--The term ``payment yield'' means the
yield established for adverse market payments under section
1102 or 1302 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7912, 7952) as in effect on the date of
enactment of this Act, or under section 1106 of this Act, for a
farm for a covered commodity.
(16) Producer.--
(A) In general.--The term ``producer'' means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop and is entitled
to share in the crop available for marketing from the
farm, or would have shared had the crop been produced.
(B) Hybrid seed.--In determining whether a grower
of hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the
existence of a hybrid seed contract; and
(ii) ensure that program requirements do
not adversely affect the ability of the grower
to receive a payment under this title.
(17) Pulse crop.--The term ``pulse crop'' means dry peas,
lentils, small chickpeas, and large chickpeas.
(18) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(19) Reference price.--The term ``reference price'' means
the price per bushel, pound, or hundredweight (or other
appropriate unit) of a covered commodity used to determine the
payment rate for adverse market payments.
(20) Transitional yield.--The term ``transitional yield''
has the meaning given the term in section 502(b) of the Federal
Crop Insurance Act (7 U.S.C. 1502(b)).
(21) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
(22) United states premium factor.--The term ``United
States Premium Factor'' means the percentage by which the
difference in the United States loan schedule premiums for
Strict Middling (SM) 1\1/8\-inch upland cotton and for Middling
(M) 1\3/32\-inch upland cotton exceeds the difference in the
applicable premiums for comparable international qualities.
SEC. 1105. BASE ACRES.
(a) Adjustment of Base Acres.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for covered
commodities for a farm whenever any of the following
circumstances occurs:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated, or was terminated or expired
during the period beginning on October 1, 2012, and
ending on the date of enactment of this Act.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary, or was
released during the period beginning on October 1,
2012, and ending on the date of enactment of this Act.
(C) The producer has eligible pulse crop acreage,
which shall be determined in the same manner as
eligible oilseed acreage under section 1101(a)(2) of
the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7911(a)(2)).
(D) The producer has eligible oilseed acreage as
the result of the Secretary designating additional
oilseeds, which shall be determined in the same manner
as eligible oilseed acreage under section 1101(a)(2) of
the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7911(a)(2)).
(2) Special conservation reserve acreage payment rules.--
For the crop year in which a base acres adjustment under
subparagraph (A) or (B) of paragraph (1) is first made, the
producer on the farm shall elect to receive either adverse
market 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.
(3) Optional adjustment.--
(A) Election.--
(i) In general.--For the purpose of making
adverse market payments, the Secretary shall
give a producer on a farm a 1-time opportunity
to adjust the peanut base acres on the farm.
(ii) Notice.--As soon as practicable after
the date of enactment of this Act, the
Secretary shall provide notice of the election
described in clause (i) to producers on farms
with peanut base acres, including--
(I) the manner in which the
election is to be transmitted to the
Secretary;
(II) a deadline for transmission;
and
(III) notification that the
election is a 1-time opportunity.
(iii) Effect of failure to make election.--
If the producer on a farm fails to notify the
Secretary of an election by the deadline
described in clause (ii), the producer shall be
considered to have not elected to update the
peanut base acres on the farm.
(B) Calculation.--
(i) In general.--If the producer on a farm
makes the election described in subparagraph
(A), the base acres for peanuts on the farm
established pursuant to section 1302 of the
Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7952) shall be equal to the average
acreage planted on the farm to peanuts for
harvest or similar purposes for the 2009
through 2012 crop years, as determined by the
Secretary.
(ii) Inclusions.--In making the calculation
described in clause (i), the Secretary shall
include--
(I) any acreage on the farm that
the producer was prevented from
planting to peanuts during the 2009
through 2012 crop years because of
drought, flood, or other natural
disaster, or other condition beyond the
control of the producer;
(II) any crop year in which peanuts
were not planted on the farm; and
(III) any adjustment, as
appropriate, whenever either of the
following occurs:
(aa) 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
peanut base acres on the farm
expires or is voluntarily
terminated.
(bb) Peanut cropland is
released from coverage under a
conservation reserve contract
by the Secretary.
(C) Limit.--
(i) In general.--If the producer on a farm
makes the election described in subparagraph
(A), the Secretary shall ensure that the
adjustment does not result in a net increase in
the total base acres for the farm (including
the upland cotton base acres described in
subsection (e)).
(ii) Reduction required.--If the adjustment
in base acres made pursuant to an election
described in subparagraph (A) results in a net
increase in the total base acres of all covered
commodities and upland cotton on the farm, the
Secretary shall reduce the base acres on the
farm for all covered commodities (other than
peanuts) and upland cotton proportionately, as
determined by the Secretary.
(b) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2),
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the base acres for 1 or more covered commodities
for the farm so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual cropland
acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any acreage on the farm enrolled in the
conservation reserve program or agricultural
conservation easement program under subchapter B of
chapter 1 of subtitle D and subtitle H, respectively,
of title XII of the Food Security Act of 1985 (16
U.S.C. 3831 et seq.).
(B) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are
made in exchange for not producing an agricultural
commodity on the acreage.
(C) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(D) If the Secretary designates additional
oilseeds, any eligible oilseed acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the
producer on the farm the opportunity to select the base acres
for a covered commodity for the farm against which the
reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
(c) Reduction in Base Acres.--
(1) Reduction at option of producer.--
(A) In general.--The producer on a farm may reduce,
at any time, the base acres for any covered commodity
for the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a
manner prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall
proportionately reduce base acres on a farm for covered
commodities for land that has been subdivided and
developed for multiple residential units or other
nonfarming uses if the size of the tracts and the
density of the subdivision is such that the land is
unlikely to return to the previous agricultural use,
unless the producers on the farm demonstrate that the
land--
(i) remains devoted to commercial
agricultural production; or
(ii) is likely to be returned to the
previous agricultural use.
(B) Requirement.--The Secretary shall establish
procedures to identify land described in subparagraph
(A).
(3) Review and report.--Each year, to ensure, to the
maximum extent practicable, that payments are received only by
producers, the Secretary shall submit to Congress a report that
describes the results of the actions taken under paragraph (2).
(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive adverse market
payments if the sum of the base acres of the farm is 10 acres
or less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned or operated by--
(A) a socially disadvantaged farmer (as defined in
section 3002 of the Consolidated Farm and Rural
Development Act); or
(B) a limited resource farmer or rancher, as
defined by the Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about farm profiles, utilization of land,
and crop production; and
(B) perform an evaluation on the supply and price
of fruits and vegetables based on the effects of
suspension of base acres under this section.
(e) Treatment of Farms With Upland Cotton Base Acres.--The
Secretary shall maintain a record of farms with upland cotton base
acres in effect on the day before the date of enactment of this Act.
SEC. 1106. PAYMENT YIELDS.
(a) Designated Oilseed or Eligible Pulse Crop.--
(1) Adjustment.--For the purpose of making adverse market
payments under this subtitle, the Secretary shall provide for
the establishment of a yield for each farm for any designated
oilseed or eligible pulse crop for which a payment yield was
not established under section 1102 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with
this section.
(2) Payment yields for designated oilseeds and eligible
pulse crops.--
(A) Determination of average yield.--In the case of
designated oilseeds and eligible pulse crops, the
Secretary shall determine the average yield per planted
acre for the designated oilseed or pulse crop on a farm
for the 1998 through 2001 crop years, excluding any
crop year in which the acreage planted to the
designated oilseed or pulse crop was zero.
(B) Adjustment for payment yield.--
(i) In general.--The payment yield for a
farm for a designated oilseed or eligible pulse
crop shall be equal to the product of the
following:
(I) The average yield for the
designated oilseed or pulse crop
determined under subparagraph (A).
(II) The ratio resulting from
dividing the national average yield for
the designated oilseed or pulse crop
for the 1981 through 1985 crops by the
national average yield for the
designated oilseed or pulse crop for
the 1998 through 2001 crops.
(ii) No national average yield information
available.--To the extent that national average
yield information for a designated oilseed or
pulse crop is not available, the Secretary
shall use such information as the Secretary
determines to be fair and equitable to
establish a national average yield under this
section.
(C) Use of partial county average yield.--If the
yield per planted acre for a crop of a designated
oilseed or pulse crop for a farm for any of the 1998
through 2001 crop years was less than 75 percent of the
county yield for that designated oilseed or pulse crop,
the Secretary shall assign a yield for that crop year
equal to 75 percent of the county yield for the purpose
of determining the average under subparagraph (A).
(D) No historic yield data available.--In the case
of establishing yields for designated oilseeds and
eligible pulse crops, if historic yield data is not
available, the Secretary shall use the ratio for dry
peas calculated under subparagraph (B)(i)(II) in
determining the yields for designated oilseeds and
eligible pulse crops, as determined to be fair and
equitable by the Secretary.
(b) Rice.--
(1) Adjustment.--For the purpose of making adverse market
payments under this subtitle, the Secretary shall give a
producer on a farm a 1-time opportunity to adjust the payment
yield for base acres of rice on the farm that was established
under section 1102 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7912).
(2) Election.--
(A) Notice.--As soon as practicable after the date
of enactment of this Act, the Secretary shall provide
notice of the election described in paragraph (1) to
producers on farms with rice base acres, including--
(i) the manner in which the election is to
be transmitted to the Secretary;
(ii) a deadline for transmission; and
(iii) notification that the election is a
1-time opportunity.
(B) Effect of failure to make election.--If the
producer on a farm fails to notify the Secretary of an
election by the deadline described in subparagraph (A),
the producer shall be considered to have not elected to
update the payment yields for base acres of rice on the
farm.
(3) Calculation.--
(A) In general.--If the producer on a farm makes
the election described in paragraph (2), the Secretary
shall adjust the payment yields for the base acres of
rice using an average yield described in subparagraph
(B) and adjustment described in subparagraph (C).
(B) Determination of average yield.--Subject to
subparagraph (D), the Secretary shall determine the
average yield per planted acre for the rice on the farm
for the 2009 through 2012 crop years, excluding any
crop year in which the acreage planted to rice was
zero.
(C) Determination of adjustment.--The Secretary
shall adjust the payment yield for the base acres of
rice on the farm that was established under section
1102 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7912) in accordance with the following:
(i) In a case in which less than 50 percent
of the rice base acres on the farm were planted
to rice, on average, during the 2009 through
2012 crop years, the adjustment shall be equal
to the sum obtained by adding to the payment
yield--
(I) the product obtained by
multiplying--
(aa) the difference between
the average yield and the
payment yield; by
(bb) the percent of rice
planted on the base acres of
rice on the farm, on average.
(ii) In a case in which more than 50
percent of the rice base acres on the farm were
planted to rice, on average, during the 2009
through 2012 crop years, the payment yield
shall be equal to the product obtained by
multiplying--
(I) the average yield; by
(II) 90 percent.
(D) Use of partial county average yield.--If the
yield per planted acre for a crop of rice for a farm
for any of the 2009 through 2012 crop years was less
than 75 percent of the county yield for that rice crop,
the Secretary shall assign a yield for that crop year
equal to 75 percent of the county yield for purposes of
determining the average under subparagraph (B).
(c) Peanuts.--
(1) Adjustment.--If the producer on a farm elects to adjust
the peanut base acres for the farm pursuant to section 1105,
the Secretary shall adjust the payment yields for the base
acres of peanuts for purposes of making adverse market
payments.
(2) Calculation.--Notwithstanding the payment yields
established under section 1102 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7912), the payment yield for
the base acres of peanuts adjusted pursuant to section 1105
shall be the average yield per planted acre for such base acres
for the 2009 through 2012 crop years, excluding any crop year
in which the acreage planted to peanuts was zero.
(3) Use of partial county average yield.--If the yield per
planted acre for a crop of peanuts for a farm for any of the
2009 through 2012 crop years was less than 75 percent of the
county yield for that peanut crop, the Secretary shall assign a
yield for that crop year equal to 75 percent of the county
yield for purposes of determining the average under paragraph
(2).
SEC. 1107. AVAILABILITY OF ADVERSE MARKET PAYMENTS.
(a) Payment Required.--For each of the 2014 through 2018 crop years
for each covered commodity, the Secretary shall make adverse market
payments to producers on farms for which payment yields and base acres
are established with respect to the covered commodity if the Secretary
determines that the actual price for the covered commodity is less than
the reference price for the covered commodity.
(b) Actual Price.--
(1) Covered commodities other than rice.--Except as
provided in paragraph (2), for purposes of subsection (a), the
actual price for a covered commodity is equal to the higher of
the following:
(A) The national average market price received by
producers during the 12-month marketing year for the
covered 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 applicable period under subtitle B.
(2) Rice.--In the case of long grain rice and medium grain
rice, for purposes of subsection (a), the actual price for each
type or class of rice is equal to the higher of the following:
(A) The national average market price received by
producers during the 12-month marketing year for the
type or class of rice, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for the type or class of rice in effect
for the applicable period under subtitle B.
(c) Reference Price.--The reference price for a covered commodity
shall be determined as follows:
(1) In general.--Subject to paragraph (2), the reference
price for a covered commodity shall be the product obtained by
multiplying--
(A) 55 percent; by
(B) the average national marketing year average
price for the most recent 5 crop years, excluding each
of the crop years with the highest and lowest prices.
(2) Alternative price for rice and peanuts.--In the case of
long and medium grain rice and peanuts, the reference price
shall be--
(A) in the case of long and medium grain rice,
$13.30 per hundredweight; and
(B) in the case of peanuts, $523.77 per ton.
(d) Payment Rate.--The payment rate used to make adverse market
payments with respect to a covered commodity for a crop year shall be
equal to the amount that--
(1) the reference price under subsection (c) for the
covered commodity; exceeds
(2) the actual price determined under subsection (b) for
the covered commodity.
(e) Payment Amount.--If adverse market payments are required to be
paid under this section for any of the 2014 through 2018 crop years of
a covered commodity, the amount of the adverse market payment to be
paid to the producers on a farm for that crop year shall be equal to
the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(f) Duties of the Secretary.--ln carrying out the calculations in
subsections (b) and (c), the Secretary shall differentiate by type or
class the national average price of--
(1) sunflower seeds;
(2) barley, using malting barley values; and
(3) wheat.
(g) Time for Payments.--If the Secretary determines under
subsection (a) that adverse market payments are required to be made
under this section for the crop of a covered commodity, beginning
October 1, or as soon as practicable thereafter, after the end of the
applicable marketing year for the covered commodity, the Secretary
shall make the adverse market payments for the crop.
SEC. 1108. AGRICULTURE RISK COVERAGE.
(a) Payments Required.--If the Secretary determines that payments
are required under subsection (c), the Secretary shall make payments
for each covered commodity available to producers in accordance with
this section.
(b) Coverage Election.--
(1) In general.--For the period of crop years 2014 through
2018, the producers shall make a 1-time, irrevocable election
to receive--
(A) individual coverage under this section, as
determined by the Secretary; or
(B) in the case of a county with sufficient data
(as determined by the Secretary), county coverage under
this section.
(2) Effect of election.--The election made under paragraph
(1) shall be binding on the producers making the election,
regardless of covered commodities planted, and applicable to
all acres under the operational control of the producers, in a
manner that--
(A) acres brought under the operational control of
the producers after the election are included; and
(B) acres no longer under the operational control
of the producers after the election are no longer
subject to the election of the producers but become
subject to the election of the subsequent producers.
(3) Duties of the secretary.--The Secretary shall ensure
that producers are precluded from taking any action, including
reconstitution, transfer, or other similar action, that would
have the effect of altering or reversing the election made
under paragraph (1).
(c) Agriculture Risk Coverage.--
(1) Payments.--The Secretary shall make agriculture risk
coverage payments available under this subsection for each of
the 2014 through 2018 crop years if the Secretary determines
that--
(A) the actual crop revenue for the crop year for
the covered commodity; is less than
(B) the agriculture risk coverage guarantee for the
crop year for the covered commodity.
(2) Time for payments.--If the Secretary determines under
this subsection that agriculture risk coverage payments are
required to be made for the covered commodity, beginning
October 1, or as soon as practicable thereafter, after the end
of the applicable marketing year for the covered commodity, the
Secretary shall make the agriculture risk coverage payments.
(3) Actual crop revenue.--The amount of the actual crop
revenue for a crop year of a covered commodity shall be equal
to the product obtained by multiplying--
(A)(i) in the case of individual coverage, the
actual average individual yield for the covered
commodity, as determined by the Secretary; or
(ii) in the case of county coverage, the actual
average yield for the county for the covered commodity,
as determined by the Secretary; and
(B) the higher of--
(i) the national average market price
received by producers during the 12-month
marketing year for the covered commodity, as
determined by the Secretary; or
(ii) if applicable, the reference price for
the covered commodity under section 1107.
(4) Agriculture risk coverage guarantee.--
(A) In general.--The agriculture risk coverage
guarantee for a crop year for a covered commodity shall
equal 88 percent of the benchmark revenue.
(B) Benchmark revenue.--
(i) In general.--The benchmark revenue
shall be the product obtained by multiplying--
(I)(aa) in the case of individual
coverage, subject to clause (ii), the
average individual yield, as determined
by the Secretary, for the most recent 5
crop years, excluding each of the crop
years with the highest and lowest
yields; or
(bb) in the case of county
coverage, the average county yield, as
determined by the Secretary, for the
most recent 5 crop years, excluding
each of the crop years with the highest
and lowest yields; and
(II) the average national marketing
year average price for the most recent
5 crop years, excluding each of the
crop years with the highest and lowest
prices.
(ii) Use of transitional yields.--If the
yield determined under clause (i)(I)(aa)--
(I) for the 2013 crop year or any
prior crop year, is less than 60
percent of the applicable transitional
yield, the Secretary shall use 60
percent of the applicable transitional
yield for that crop year; and
(II) for the 2014 crop year and any
subsequent crop year, is less than 65
percent of the applicable transitional
yield, the Secretary shall use 65
percent of the applicable transitional
yield for that crop year.
(5) Payment rate.--The payment rate for each covered
commodity shall be equal to the lesser of--
(A) the amount that--
(i) the agriculture risk coverage guarantee
for the covered commodity; exceeds
(ii) the actual crop revenue for the crop
year of the covered commodity; or
(B) 10 percent of the benchmark revenue for the
crop year of the covered commodity.
(6) Payment amount.--If agriculture risk coverage payments
under this subsection are required to be paid for any of the
2014 through 2018 crop years of a covered commodity, the amount
of the agriculture risk coverage payment for the crop year
shall be equal to the product obtained by multiplying--
(A) the payment rate under paragraph (5); and
(B)(i) in the case of individual coverage the sum
of--
(I) 65 percent of the planted eligible
acres of the covered commodity; and
(II) 45 percent of the eligible acres that
were prevented from being planted to the
covered commodity; or
(ii) in the case of county coverage--
(I) 80 percent of the planted eligible
acres of the covered commodity; and
(II) 45 percent of the eligible acres that
were prevented from being planted to the
covered commodity.
(7) Duties of the secretary.--In carrying out the program
under this subsection, the Secretary shall--
(A) to the maximum extent practicable, use all
available information and analysis to check for
anomalies in the determination of payments under the
program;
(B) to the maximum extent practicable, calculate a
separate actual crop revenue and agriculture risk
coverage guarantee for irrigated and nonirrigated
covered commodities;
(C) differentiate by type or class the national
average price of--
(i) sunflower seeds;
(ii) barley, using malting barley values;
and
(iii) wheat; and
(D) assign a yield for each acre planted or
prevented from being planted for the crop year for the
covered commodity on the basis of the yield history of
representative farms in the State, region, or crop
reporting district, as determined by the Secretary, if
the Secretary cannot establish the yield as determined
under paragraph (3)(A)(ii) or (4)(B)(i) or if the yield
determined under paragraph (3)(A)(ii) or (4) is an
unrepresentative average yield for the covered
commodity as determined by the Secretary.
SEC. 1109. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF
PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive agriculture risk coverage payments or adverse market
payments, the producers shall agree, during the crop year for
which the payments are made and in exchange for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.);
(C) to use the land on the farm for an agricultural
or conserving use in a quantity equal to the
attributable eligible acres of the farm, and not for a
nonagricultural commercial, industrial, or residential
use, as determined by the Secretary; and
(D) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to
in subparagraph (C).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph
(2), a transfer of (or change in) the interest of the
producers on a farm for which agriculture risk coverage
payments or adverse market payments are made shall
result in the termination of the payments, unless the
transferee or owner of the acreage agrees to assume all
obligations under subsection (a).
(B) Effective date.--The termination shall take
effect on the date determined by the Secretary.
(2) Exception.--If a producer entitled to an agriculture
risk coverage payment or adverse market payment dies, becomes
incompetent, or is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with rules
issued by the Secretary.
(c) Reports.--
(1) Acreage reports.--As a condition on the receipt of any
benefits under this subtitle or subtitle B, the Secretary shall
require producers on a farm to submit to the Secretary annual
acreage reports with respect to all cropland on the farm.
(2) Production reports.--As a condition on the receipt of
any benefits under section 1108, the Secretary shall require
producers on a farm to submit to the Secretary annual
production reports with respect to all covered commodities
produced on the farm.
(3) Penalties.--No penalty with respect to benefits under
this subtitle or subtitle B shall be assessed against the
producers on a farm for an inaccurate acreage or production
report unless the producers on the farm knowingly and willfully
falsified the acreage or production report.
(4) Data reporting.--To the maximum extent practicable, the
Secretary shall use data reported by the producer pursuant to
requirements under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) to meet the obligations described in paragraphs
(1) and (2), without additional submissions to the Department.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the
sharing of adverse market payments and agriculture risk coverage
payments among the producers on a farm on a fair and equitable basis.
SEC. 1110. PERIOD OF EFFECTIVENESS.
Sections 1104 through 1109 shall be effective beginning with the
2014 crop year of each covered commodity through the 2018 crop year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
LOAN COMMODITIES.
(a) Definition of Loan Commodity.--In this subtitle, the term
``loan commodity'' means wheat, corn, grain sorghum, barley, oats,
upland cotton, extra long staple cotton, long grain rice, medium grain
rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool,
mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.
(b) Nonrecourse Loans Available.--
(1) In general.--For each of the 2014 through 2018 crops of
each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans for
loan commodities produced on the farm.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed by
the Secretary and at the loan rate established under section
1202 for the loan commodity.
(c) Eligible Production.--The producers on a farm shall be eligible
for a marketing assistance loan under subsection (b) for any quantity
of a loan commodity produced on the farm.
(d) Compliance With Conservation and Wetlands Requirements.--
(1) Requirements.--Before the producers on a farm may
receive a marketing assistance loan or any other payment or
benefit under this subtitle, the producers shall agree, for the
crop year for which the payments are made and in exchange for
the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.);
(C) to use the land on the farm for an agricultural
or conserving use in a quantity equal to the
attributable eligible acres of the farm, and not for a
nonagricultural commercial, industrial, or residential
use, as determined by the Secretary; and
(D) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to
in subparagraph (C).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with paragraph (1).
(3) Modification.--At the request of a transferee or owner,
the Secretary may modify the requirements of this subsection if
the modifications are consistent with the purposes of this
subsection, as determined by the Secretary.
(e) Special Rules for Peanuts.--
(1) In general.--This subsection shall apply only to
producers of peanuts.
(2) Options for obtaining loan.--A marketing assistance
loan under this section, and loan deficiency payments under
section 1205, may be obtained at the option of the producers on
a farm through--
(A) a designated marketing association or marketing
cooperative of producers that is approved by the
Secretary; or
(B) the Farm Service Agency.
(3) Storage of loan peanuts.--As a condition on the
approval by the Secretary of an individual or entity to provide
storage for peanuts for which a marketing assistance loan is
made under this section, the individual or entity shall agree--
(A) to provide the storage on a nondiscriminatory
basis; and
(B) to comply with such additional requirements as
the Secretary considers appropriate to accomplish the
purposes of this section and promote fairness in the
administration of the benefits of this section.
(4) Storage, handling, and associated costs.--
(A) In general.--To ensure proper storage of
peanuts for which a loan is made under this section,
the Secretary shall pay handling and other associated
costs (other than storage costs) incurred at the time
at which the peanuts are placed under loan, as
determined by the Secretary.
(B) Redemption and forfeiture.--The Secretary
shall--
(i) require the repayment of handling and
other associated costs paid under subparagraph
(A) for all peanuts pledged as collateral for a
loan that is redeemed under this section; and
(ii) pay storage, handling, and other
associated costs for all peanuts pledged as
collateral that are forfeited under this
section.
(5) Marketing.--A marketing association or cooperative may
market peanuts for which a loan is made under this section in
any manner that conforms to consumer needs, including the
separation of peanuts by type and quality.
(6) Reimbursable agreements and payment of administrative
expenses.--The Secretary may implement any reimbursable
agreements or provide for the payment of administrative
expenses under this subsection only in a manner that is
consistent with those activities in regard to other loan
commodities.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
(a) In General.--For purposes of each of the 2014 through 2018 crop
years, the loan rate for a marketing assistance loan under section 1201
for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton, for the
2014 and each subsequent crop year, the simple average of the
adjusted prevailing world price for the 2 immediately preceding
marketing years, as determined by the Secretary and announced
October 1 preceding the next domestic plantings, but in no case
less than $0.45 per pound or more than $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per
hundredweight for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(20) In the case of peanuts, $355 per ton.
(b) Single County Loan Rate for Other Oilseeds.--The Secretary
shall establish a single loan rate in each county for each kind of
other oilseeds described in subsection (a)(11).
SEC. 1203. TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity, a marketing
assistance loan under section 1201 shall have a term of 9 months
beginning on the first day of the first month after the month in which
the loan is made.
(b) Extensions Prohibited.--The Secretary may not extend the term
of a marketing assistance loan for any loan commodity.
SEC. 1204. REPAYMENT OF LOANS.
(a) General Rule.--The Secretary shall permit the producers on a
farm to repay a marketing assistance loan under section 1201 for a loan
commodity (other than upland cotton, long grain rice, medium grain
rice, extra long staple cotton, peanuts and confectionery and each
other kind of sunflower seed (other than oil sunflower seed)) at a rate
that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283));
(2) a rate (as determined by the Secretary) that--
(A) is calculated based on average market prices
for the loan commodity during the preceding 30-day
period; and
(B) will minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries; or
(3) a rate that the Secretary may develop using alternative
methods for calculating a repayment rate for a loan commodity
that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity;
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally; and
(E) minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries.
(b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
Grain Rice.--The Secretary shall permit producers to repay a marketing
assistance loan under section 1201 for upland cotton, long grain rice,
and medium grain rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with
this section.
(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market Price.--For purposes of this section,
the Secretary shall prescribe by regulation--
(1) a formula to determine the prevailing world market
price for each of upland cotton, long grain rice, and medium
grain rice; and
(2) a mechanism by which the Secretary shall announce
periodically those prevailing world market prices.
(e) Adjustment of Prevailing World Market Price for Upland Cotton,
Long Grain Rice, and Medium Grain Rice.--
(1) Rice.--The prevailing world market price for long grain
rice and medium grain rice determined under subsection (d)
shall be adjusted to United States quality and location.
(2) Cotton.--The prevailing world market price for upland
cotton determined under subsection (d)--
(A) shall be adjusted to United States quality and
location, with the adjustment to include--
(i) a reduction equal to any United States
Premium Factor for upland cotton of a quality
higher than Middling (M) 1\3/32\-inch; and
(ii) the average costs to market the
commodity, including average transportation
costs, as determined by the Secretary; and
(B) may be further adjusted, during the period
beginning on the date of enactment of this Act and
ending on July 31, 2019, if the Secretary determines
the adjustment is necessary--
(i) to minimize potential loan forfeitures;
(ii) to minimize the accumulation of stocks
of upland cotton by the Federal Government;
(iii) to ensure that upland cotton produced
in the United States can be marketed freely and
competitively, both domestically and
internationally; and
(iv) to ensure an appropriate transition
between current-crop and forward-crop price
quotations, except that the Secretary may use
forward-crop price quotations prior to July 31
of a marketing year only if--
(I) there are insufficient current-
crop price quotations; and
(II) the forward-crop price
quotation is the lowest such quotation
available.
(3) Guidelines for additional adjustments.--In making
adjustments under this subsection, the Secretary shall
establish a mechanism for determining and announcing the
adjustments in order to avoid undue disruption in the United
States market.
(f) Repayment Rates for Confectionery and Other Kinds of Sunflower
Seeds.--The Secretary shall permit the producers on a farm to repay a
marketing assistance loan under section 1201 for confectionery and each
other kind of sunflower seed (other than oil sunflower seed) at a rate
that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.
(g) Payment of Cotton Storage Costs.--Effective for each of the
2014 through 2018 crop years, the Secretary shall make cotton storage
payments available in the same manner, and at the same rates as the
Secretary provided storage payments for the 2006 crop of cotton, except
that the rates shall be reduced by 20 percent.
(h) Repayment Rate for Peanuts.--The Secretary shall permit
producers on a farm to repay a marketing assistance loan for peanuts
under subsection (a) at a rate that is the lesser of--
(1) the loan rate established for peanuts under subsection
(b), plus interest (determined in accordance with section 163
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7283)); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of peanuts
by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing peanuts; and
(D) allow peanuts produced in the United States to
be marketed freely and competitively, both domestically
and internationally.
(i) Authority To Temporarily Adjust Repayment Rates.--
(1) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this section for marketing
assistance loans under section 1201 for a loan commodity.
(2) Duration.--Any adjustment made under paragraph (1) in
the repayment rate for marketing assistance loans for a loan
commodity shall be in effect on a short-term and temporary
basis, as determined by the Secretary.
SEC. 1205. LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection (d), the
Secretary may make loan deficiency payments available to
producers on a farm that, although eligible to obtain a
marketing assistance loan under section 1201 with respect to a
loan commodity, agree to forgo obtaining the loan for the
commodity in return for loan deficiency payments under this
section.
(2) Unshorn pelts, hay, and silage.--
(A) Marketing assistance loans.--Subject to
subparagraph (B), nongraded wool in the form of unshorn
pelts and hay and silage derived from a loan commodity
are not eligible for a marketing assistance loan under
section 1201.
(B) Loan deficiency payment.--Effective for the
2014 through 2018 crop years, the Secretary may make
loan deficiency payments available under this section
to producers on a farm that produce unshorn pelts or
hay and silage derived from a loan commodity.
(b) Computation.--A loan deficiency payment for a loan commodity or
commodity referred to in subsection (a)(2) shall be equal to the
product obtained by multiplying--
(1) the payment rate determined under subsection (c) for
the commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers
obtain a marketing assistance loan under section 1201.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202
for the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section
1204.
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202
for ungraded wool; exceeds
(B) the rate at which a marketing assistance loan
for ungraded wool may be repaid under section 1204.
(3) Hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount by
which--
(A) the loan rate established under section 1202
for the loan commodity from which the hay or silage is
derived; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section
1204.
(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The Secretary
shall determine the amount of the loan deficiency payment to be made
under this section to the producers on a farm with respect to a
quantity of a loan commodity or commodity referred to in subsection
(a)(2) using the payment rate in effect under subsection (c) as of the
date the producers request the payment.
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
(a) Eligible Producers.--
(1) In general.--Effective for the 2014 through 2018 crop
years, in the case of a producer that would be eligible for a
loan deficiency payment under section 1205 for wheat, barley,
or oats, but that elects to use acreage planted to the wheat,
barley, or oats for the grazing of livestock, the Secretary
shall make a payment to the producer under this section if the
producer enters into an agreement with the Secretary to forgo
any other harvesting of the wheat, barley, or oats on that
acreage.
(2) Grazing of triticale acreage.--Effective for the 2014
through 2018 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement
with the Secretary to forgo any other harvesting of triticale
on that acreage.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection (a)(1)
shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by
multiplying--
(i) the quantity of the grazed acreage on
the farm with respect to which the producer
elects to forgo harvesting of wheat, barley, or
oats; and
(ii)(I) the yield in effect for the
calculation of agriculture risk coverage
payments under subtitle A with respect to that
loan commodity on the farm; or
(II) in the case of a farm without a
payment yield for that loan commodity, an
appropriate yield established by the Secretary.
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect for wheat, as of the
date of the agreement, for the county in which the farm
is located; by
(B) the payment quantity determined by
multiplying--
(i) the quantity of the grazed acreage on
the farm with respect to which the producer
elects to forgo harvesting of triticale; and
(ii)(I) the yield in effect for the
calculation of agriculture risk coverage
payments under subtitle A with respect to wheat
on the farm; or
(II) in the case of a farm without a
payment yield for wheat, an appropriate yield
established by the Secretary in a manner
consistent with section 1102 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8712).
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 1205.
(2) Availability.--
(A) In general.--The Secretary shall establish an
availability period for the payments authorized by this
section.
(B) Certain commodities.--In the case of wheat,
barley, and oats, the availability period shall be
consistent with the availability period for the
commodity established by the Secretary for marketing
assistance loans authorized by this subtitle.
(d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
Assistance.--A 2014 through 2018 crop of wheat, barley, oats, or
triticale planted on acreage that a producer elects, in the agreement
required by subsection (a), to use for the grazing of livestock in lieu
of any other harvesting of the crop shall not be eligible for an
indemnity under a policy or plan of insurance authorized under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop
assistance under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. ECONOMIC ADJUSTMENT ASSISTANCE TO USERS OF UPLAND COTTON.
(a) In General.--Subject to subsection (b), the Secretary shall, on
a monthly basis, make economic adjustment assistance available to
domestic users of upland cotton in the form of payments for all
documented use of that upland cotton during the previous monthly period
regardless of the origin of the upland cotton.
(b) Value of Assistance.--Effective beginning on August 1, 2012,
the value of the assistance provided under subsection (a) shall be 3
cents per pound.
(c) Allowable Purposes.--Economic adjustment assistance under this
section shall be made available only to domestic users of upland cotton
that certify that the assistance shall be used only to acquire,
construct, install, modernize, develop, convert, or expand land, plant,
buildings, equipment, facilities, or machinery.
(d) Review or Audit.--The Secretary may conduct such review or
audit of the records of a domestic user under this subsection as the
Secretary determines necessary to carry out this subsection.
(e) Improper Use of Assistance.--If the Secretary determines, after
a review or audit of the records of the domestic user, that economic
adjustment assistance under this subsection was not used for the
purposes specified in subsection (c), the domestic user shall be--
(1) liable for the repayment of the assistance to the
Secretary, plus interest, as determined by the Secretary; and
(2) ineligible to receive assistance under this subsection
for a period of 1 year following the determination of the
Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other provision
of law, during the period beginning on the date of enactment of this
Act through July 31, 2019, the Secretary shall carry out a program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.
(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United
States price for a competing growth of extra long staple
cotton; and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States that enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS
AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Definition of high moisture state.--In this subsection,
the term ``high moisture state'' means corn or grain sorghum
having a moisture content in excess of Commodity Credit
Corporation standards for marketing assistance loans made by
the Secretary under section 1201.
(2) Recourse loans available.--For each of the 2014 through
2018 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the Secretary, to
producers on a farm that--
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an
inspected, certified commercial scale,
including a licensed warehouse, feedlot, feed
mill, distillery, or other similar entity
approved by the Secretary, pursuant to
regulations issued by the Secretary; or
(ii) field or other physical measurements
of the standing or stored crop in regions of
the United States, as determined by the
Secretary, that do not have certified
commercial scales from which certified scale
tickets may be obtained within reasonable
proximity of harvest operation;
(C) certify that the producers on the farm were the
owners of the feed grain at the time of delivery to,
and that the quantity to be placed under loan under
this subsection was in fact harvested on the farm and
delivered to, a feedlot, feed mill, or commercial or
on-farm high-moisture storage facility, or to a
facility maintained by the users of corn and grain
sorghum in a high moisture state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(3) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the farm of the
producer; by
(B) the lower of the actual average yield used to
make payments under subtitle A or the actual yield on a
field, as determined by the Secretary, that is similar
to the field from which the corn or grain sorghum was
obtained.
(b) Recourse Loans Available for Seed Cotton.--For each of the 2014
through 2018 crops of upland cotton and extra long staple cotton, the
Secretary shall make available recourse seed cotton loans, as
determined by the Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (determined in accordance with section 163 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283)).
SEC. 1210. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--Subject to subsection (e), the Secretary
may make appropriate adjustments in the loan rates for any loan
commodity (other than cotton) for differences in grade, type, quality,
location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection (a)
shall, to the maximum extent practicable, be made in such a manner that
the average loan level for the commodity will, on the basis of the
anticipated incidence of the factors, be equal to the level of support
determined in accordance with this subtitle and subtitles C through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan rates for
a crop for producers in individual counties in a manner that
results in the lowest loan rate being 95 percent of the
national average loan rate, if those loan rates do not result
in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate for
any year.
(d) Adjustment in Loan Rate for Cotton.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan rate for cotton for differences in
quality factors.
(2) Revisions to quality adjustments for upland cotton.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
implement revisions in the administration of the
marketing assistance loan program for upland cotton to
more accurately and efficiently reflect market values
for upland cotton.
(B) Mandatory revisions.--Revisions under
subparagraph (A) shall include--
(i) the elimination of warehouse location
differentials;
(ii) the establishment of differentials for
the various quality factors and staple lengths
of cotton based on a 3-year, weighted moving
average of the weighted designated spot market
regions, as determined by regional production;
(iii) the elimination of any artificial
split in the premium or discount between upland
cotton with a 32 or 33 staple length due to
micronaire; and
(iv) a mechanism to ensure that no premium
or discount is established that exceeds the
premium or discount associated with a leaf
grade that is 1 better than the applicable
color grade.
(C) Discretionary revisions.--Revisions under
subparagraph (A) may include--
(i) the use of non-spot market price data,
in addition to spot market price data, that
would enhance the accuracy of the price
information used in determining quality
adjustments under this subsection;
(ii) adjustments in the premiums or
discounts associated with upland cotton with a
staple length of 33 or above due to micronaire
with the goal of eliminating any unnecessary
artificial splits in the calculations of the
premiums or discounts; and
(iii) such other adjustments as the
Secretary determines appropriate, after
consultations conducted in accordance with
paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--In making adjustments to
the loan rate for cotton (including any review of the
adjustments) as provided in this subsection, the
Secretary shall consult with representatives of the
United States cotton industry.
(B) Inapplicability of federal advisory committee
act.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to consultations under this
subsection.
(4) Review of adjustments.--The Secretary may review the
operation of the upland cotton quality adjustments implemented
pursuant to this subsection and may make further revisions to
the administration of the loan program for upland cotton, by--
(A) revoking or revising any actions taken under
paragraph (2)(B); or
(B) revoking or revising any actions taken or
authorized to be taken under paragraph (2)(C).
(e) Rice.--The Secretary shall not make adjustments in the loan
rates for long grain rice and medium grain rice, except for differences
in grade and quality (including milling yields).
Subtitle C--Sugar
SEC. 1301. SUGAR PROGRAM.
(a) Continuation of Current Program and Loan Rates.--
(1) Sugarcane.--Section 156(a)(5) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(a)(5)) is amended by striking ``the 2012 crop year'' and
inserting ``each of the 2014 through 2018 crop years''.
(2) Sugar beets.--Section 156(b)(2) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(b)(2)) is amended by striking ``2012'' and inserting
``2018''.
(3) Effective period.--Section 156(i) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(i)) is amended by striking ``2012'' and inserting
``2018''.
(b) Flexible Marketing Allotments for Sugar.--
(1) Sugar estimates.--Section 359b(a)(1) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is
amended by striking ``2012'' and inserting ``2018''.
(2) Effective period.--Section 359l(a) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by
striking ``2012'' and inserting ``2018''.
Subtitle D--Dairy
PART I--DAIRY PRODUCTION MARGIN PROTECTION AND DAIRY MARKET
STABILIZATION PROGRAMS
SEC. 1401. DEFINITIONS.
In this part:
(1) Actual dairy production margin.--The term ``actual
dairy production margin'' means the difference between the all-
milk price and the average feed cost, as calculated under
section 1402.
(2) All-milk price.--The term ``all-milk price'' means the
average price received, per hundredweight of milk, by dairy
operations for all milk sold to plants and dealers in the
United States, as determined by the Secretary.
(3) Annual production history.--The term ``annual
production history'' means the production history determined
for a participating dairy operation under section 1413(b)
whenever the participating dairy operation purchases
supplemental production margin protection.
(4) Average feed cost.--The term ``average feed cost''
means the average cost of feed used by a dairy operation to
produce a hundredweight of milk, determined under section 1402
using the sum of the following:
(A) The product determined by multiplying 1.0728 by
the price of corn per bushel.
(B) The product determined by multiplying 0.00735
by the price of soybean meal per ton.
(C) The product determined by multiplying 0.0137 by
the price of alfalfa hay per ton.
(5) Basic production history.--The term ``basic production
history'' means the production history determined for a
participating dairy operation under section 1413(a) for
provision of basic production margin protection.
(6) Consecutive 2-month period.--The term ``consecutive 2-
month period'' refers to the 2-month period consisting of the
months of January and February, March and April, May and June,
July and August, September and October, or November and
December, respectively.
(7) Dairy operation.--
(A) In general.--The term ``dairy operation''
means, as determined by the Secretary, 1 or more dairy
producers that produce and market milk as a single
dairy operation in which each dairy producer--
(i) shares in the pooling of resources and
a common ownership structure;
(ii) is at risk in the production of milk
on the dairy operation; and
(iii) contributes land, labor, management,
equipment, or capital to the dairy operation.
(B) Additional ownership structures.--The Secretary
shall determine additional ownership structures to be
covered by the definition of dairy operation.
(8) Handler.--
(A) In general.--The term ``handler'' means the
initial individual or entity making payment to a dairy
operation for milk produced in the United States and
marketed for commercial use.
(B) Producer-handler.--The term includes a
``producer-handler'' when the producer satisfies the
definition in subparagraph (A).
(9) Participating dairy operation.--The term
``participating dairy operation'' means a dairy operation
that--
(A) signs up under section 1412 to participate in
the production margin protection program under subpart
A; and
(B) as a result, also participates in the
stabilization program under subpart B.
(10) Production margin protection program.--The term
``production margin protection program'' means the dairy
production margin protection program required by subpart A.
(11) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(12) Stabilization program.--The term ``stabilization
program'' means the dairy market stabilization program required
by subpart B for all participating dairy operations.
(13) Stabilization program base.--The term ``stabilization
program base'', with respect to a participating dairy
operation, means the stabilization program base calculated for
the participating dairy operation under section 1431(b).
(14) United states.--The term ``United States'', in a
geographical sense, means the 50 States, the District of
Columbia, American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico, the
Virgin Islands of the United States, and any other territory or
possession of the United States.
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY PRODUCTION
MARGINS.
(a) Calculation of Average Feed Cost.--The Secretary shall
calculate the national average feed cost for each month using the
following data:
(1) The price of corn for a month shall be the price
received during that month by farmers in the United States for
corn, as reported in the monthly Agricultural Prices report by
the Secretary.
(2) The price of soybean meal for a month shall be the
central Illinois price for soybean meal, as reported in the
Market News-Monthly Soybean Meal Price Report by the Secretary.
(3) The price of alfalfa hay for a month shall be the price
received during that month by farmers in the United States for
alfalfa hay, as reported in the monthly Agricultural Prices
report by the Secretary.
(b) Calculation of Actual Dairy Production Margins.--
(1) Production margin protection program.--For use in the
production margin protection program under subpart A, the
Secretary shall calculate the actual dairy production margin
for each consecutive 2-month period by subtracting--
(A) the average feed cost for that consecutive 2-
month period, determined in accordance with subsection
(a); from
(B) the all-milk price for that consecutive 2-month
period.
(2) Stabilization program.--For use in the stabilization
program under subpart B, the Secretary shall calculate each
month the actual dairy production margin for the preceding
month by subtracting--
(A) the average feed cost for that preceding month,
determined in accordance with subsection (a); from
(B) the all-milk price for that preceding month.
(3) Time for calculations.--The calculations required by
paragraphs (1) and (2) shall be made as soon as practicable
using the full month price of the applicable reference month.
Subpart A--Dairy Production Margin Protection Program
SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MARGIN PROTECTION PROGRAM.
Effective not later than 120 days after the effective date of this
subtitle, the Secretary shall establish and administer a dairy
production margin protection program under which participating dairy
operations are paid--
(1) basic production margin protection program payments
under section 1414 when actual dairy production margins are
less than the threshold levels for such payments; and
(2) supplemental production margin protection program
payments under section 1415 if purchased by a participating
dairy operation.
SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRODUCTION MARGIN
PROTECTION PROGRAM.
(a) Eligibility.--All dairy operations in the United States shall
be eligible to participate in the production margin protection program,
except that a participating dairy operation shall be required to
register with the Secretary before the participating dairy operation
may receive--
(1) basic production margin protection program payments
under section 1414; and
(2) if the participating dairy operation purchases
supplemental production margin protection under section 1415,
supplemental production margin protection program payments
under such section.
(b) Registration Process.--
(1) In general.--The Secretary shall specify the manner and
form by which a participating dairy operation may register to
participate in the production margin protection program.
(2) Treatment of multiproducer dairy operations.--If a
participating dairy operation is operated by more than 1 dairy
producer, all of the dairy producers of the participating dairy
operation shall be treated as a single dairy operation for
purposes of--
(A) registration to receive basic production margin
protection and election to purchase supplemental
production margin protection;
(B) payment of the participation fee under
subsection (d) and producer premiums under section
1415; and
(C) participation in the stabilization program
under subtitle B.
(3) Treatment of producers with multiple dairy
operations.--If a dairy producer operates 2 or more dairy
operations, each dairy operation of the producer shall
separately register to receive basic production margin
protection and purchase supplemental production margin
protection and only those dairy operations so registered shall
be covered by the stabilization program.
(c) Time for Registration.--
(1) Existing dairy operations.--During the 15-month period
beginning on the date of the initiation of the registration
period for the production margin protection program, a dairy
operation that is actively engaged as of such date may register
with the Secretary--
(A) to receive basic production margin protection;
and
(B) if the dairy operation elects, to purchase
supplemental production margin protection.
(2) New entrants.--A dairy producer that has no existing
interest in a dairy operation as of the date of the initiation
of the registration period for the production margin protection
program, but that, after such date, establishes a new dairy
operation, may register with the Secretary during the 1-year
period beginning on the date on which the dairy operation first
markets milk commercially--
(A) to receive basic production margin protection;
and
(B) if the dairy operation elects, to purchase
supplemental production margin protection.
(d) Transition From MILC to Production Margin Protection.--
(1) Definition of transition period.--In this subsection,
the term ``transition period'' means the period during which
the milk income loss program established under section 1506 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773)
and the production margin protection program under this
subtitle are both in existence.
(2) Notice of availability.--Not later than 30 days after
the date of enactment of this Act, the Secretary shall publish
a notice in the Federal Register to inform dairy operations of
the availability of basic production margin protection and
supplemental production margin protection, including the terms
of the protection and information about the option of dairy
operations during the transition period to make an election
described in paragraph (3).
(3) Election.--Except as provided in paragraph (4), a dairy
operation may elect to participate in either the milk income
loss program established under section 1506 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773) or the
production margin protection program under this subtitle for
the duration of the transition period.
(4) Transfer to production margin protection.--A dairy
operation that elects to participate in the milk income loss
program established under section 1506 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773) during the
transition period may, at any time, make a permanent transfer
to the production margin protection program.
(e) Administration Fee.--
(1) Administration fee required.--Except as provided in
paragraph (5), a participating dairy operation shall--
(A) pay an administration fee under this subsection
to register to participate in the production margin
protection program; and
(B) pay the administration fee annually thereafter
to continue to participate in the production margin
protection program.
(2) Fee amount.--The administration fee for a participating
dairy operation for a calendar year shall be based on the
pounds of milk (in millions) marketed by the participating
dairy operation in the previous calendar year, as follows:
------------------------------------------------------------------------
Pounds Marketed (in millions) Administration Fee
------------------------------------------------------------------------
less than 1 $100
1 to 5 $250
more than 5 to 10 $350
more than 10 to 40 $1,000
more than 40 $2,500.
------------------------------------------------------------------------
(3) Deposit of fees.--All administration fees collected
under this subsection shall be credited to the fund or account
used to cover the costs incurred to administer the production
margin protection program and the stabilization program and
shall be available to the Secretary, without further
appropriation and until expended, for use or transfer as
provided in paragraph (4).
(4) Use of fees.--The Secretary shall use administration
fees collected under this subsection--
(A) to cover administrative costs of the production
margin protection program and stabilization program;
and
(B) to cover costs of the Department of Agriculture
relating to reporting of dairy market news, carrying
out the amendments made by section 1476, and carrying
out section 273 of the Agricultural Marketing Act of
1946 (7 U.S.C. 1637b), to the extent funds remain
available after operation of subparagraph (A).
(5) Waiver.--The Secretary shall waive or reduce the
administration fee required under paragraph (1) in the case of
a limited-resource dairy operation, as defined by the
Secretary.
(f) Limitation.--A dairy operation may only participate in the
production margin protection program or the livestock gross margin for
dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.), but not both.
SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERATIONS.
(a) Production History for Basic Production Margin Protection.--
(1) Determination required.--For purposes of providing
basic production margin protection, the Secretary shall
determine the basic production history of a participating dairy
operation.
(2) Calculation.--Except as provided in paragraph (3), the
basic production history of a participating dairy operation for
basic production margin protection is equal to the highest
annual milk marketings of the participating dairy operation
during any 1 of the 3 calendar years immediately preceding the
calendar year in which the participating dairy operation first
signed up to participate in the production margin protection
program.
(3) Election by new dairy operations.--In the case of a
participating dairy operation that has been in operation for
less than a year, the participating dairy operation shall elect
1 of the following methods for the Secretary to determine the
basic production history of the participating dairy operation:
(A) The volume of the actual milk marketings for
the months the participating dairy operation has been
in operation extrapolated to a yearly amount.
(B) An estimate of the actual milk marketings of
the participating dairy operation based on the herd
size of the participating dairy operation relative to
the national rolling herd average data published by the
Secretary.
(4) No change in production history for basic production
margin protection.--Once the basic production history of a
participating dairy operation is determined under paragraph (2)
or (3), the basic production history shall not be subsequently
changed for purposes of determining the amount of any basic
production margin protection payments for the participating
dairy operation made under section 1414.
(b) Annual Production History for Supplemental Production Margin
Protection.--
(1) Determination required.--For purposes of providing
supplemental production margin protection for a participating
dairy operation that purchases supplemental production margin
protection for a year under section 1415, the Secretary shall
determine the annual production history of the participating
dairy operation under paragraph (2).
(2) Calculation.--The annual production history of a
participating dairy operation for a year is equal to the actual
milk marketings of the participating dairy operation during the
preceding calendar year.
(3) New dairy operations.--Subsection (a)(3) shall apply
with respect to determining the annual production history of a
participating dairy operation that has been in operation for
less than a year.
(c) Required Information.--A participating dairy operation shall
provide all information that the Secretary may require in order to
establish--
(1) the basic production history of the participating dairy
operation under subsection (a); and
(2) the production history of the participating dairy
operation whenever the participating dairy operation purchases
supplemental production margin protection under section 1415.
(d) Transfer of Production Histories.--
(1) Transfer by sale or lease.--In promulgating the rules
to initiate the production margin protection program, the
Secretary shall specify the conditions under which and the
manner by which the production history of a participating dairy
operation may be transferred by sale or lease.
(2) Coverage level.--
(A) Basic production margin protection.--A
purchaser or lessee to whom the Secretary transfers a
basic production history under this subsection shall
not obtain a different level of basic production margin
protection than the basic production margin protection
coverage held by the seller or lessor from whom the
transfer was obtained.
(B) Supplemental production margin protection.--A
purchaser or lessee to whom the Secretary transfers an
annual production history under this subsection shall
not obtain a different level of supplemental production
margin protection coverage than the supplemental
production margin protection coverage in effect for the
seller or lessor from whom the transfer was obtained
for the calendar year in which the transfer was made.
(e) Movement and Transfer of Production History.--
(1) Movement and transfer authorized.--Subject to paragraph
(2), if a participating dairy operation moves from 1 location
to another location, the participating dairy operation may
transfer the basic production history and annual production
history associated with the participating dairy operation.
(2) Notification requirement.--A participating dairy
operation shall notify the Secretary of any move of a
participating dairy operation under paragraph (1).
(3) Subsequent occupation of vacated location.--A party
subsequently occupying a participating dairy operation location
vacated as described in paragraph (1) shall have no interest in
the basic production history or annual production history
previously associated with the participating dairy operation at
such location.
SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION.
(a) Payment Threshold.--The Secretary shall make a payment to
participating dairy operations in accordance with subsection (b)
whenever the average actual dairy production margin for a consecutive
2-month period is less than $4.00 per hundredweight of milk.
(b) Basic Production Margin Protection Payment.--The basic
production margin protection payment for a participating dairy
operation for a consecutive 2-month period shall be equal to the
product obtained by multiplying--
(1) the difference between the average actual dairy
production margin for the consecutive 2-month period and $4.00,
except that, if the difference is more than $4.00, the
Secretary shall use $4.00; by
(2) the lesser of--
(A) 80 percent of the production history of the
participating dairy operation, divided by 6; or
(B) the actual quantity of milk marketed by the
participating dairy operation during the consecutive 2-
month period.
SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTECTION.
(a) Election of Supplemental Production Margin Protection.--A
participating dairy operation may annually purchase supplemental
production margin protection to protect, during the calendar year for
which purchased, a higher level of the income of a participating dairy
operation than the income level guaranteed by basic production margin
protection under section 1414.
(b) Selection of Payment Threshold.--A participating dairy
operation purchasing supplemental production margin protection for a
year shall elect a coverage level that is higher, in any increment of
$0.50, than the payment threshold for basic production margin
protection specified in section 1414(a), but not to exceed $8.00.
(c) Coverage Percentage.--A participating dairy operation
purchasing supplemental production margin protection for a year shall
elect a percentage of coverage equal to not more than 90 percent, nor
less than 25 percent, of the annual production history of the
participating dairy operation.
(d) Premiums for Supplemental Production Margin Protection.--
(1) Premiums required.--A participating dairy operation
that purchases supplemental production margin protection shall
pay an annual premium equal to the product obtained by
multiplying--
(A) the coverage percentage elected by the
participating dairy operation under subsection (c);
(B) the annual production history of the
participating dairy operation; and
(C) the premium per hundredweight of milk, as
specified in the applicable table under paragraph (2)
or (3).
(2) Premium per hundredweight for first 4 million pounds of
production.--For the first 4,000,000 pounds of milk marketings
included in the annual production history of a participating
dairy operation, the premium per hundredweight corresponding to
each coverage level specified in the following table is as
follows:
------------------------------------------------------------------------
Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.50 $0.01
$5.00 $0.02
$5.50 $0.035
$6.00 $0.045
$6.50 $0.09
$7.00 $0.40
$7.50 $0.60
$8.00 $0.95.
------------------------------------------------------------------------
(3) Premium per hundredweight for production in excess of 4
million pounds.--For milk marketings in excess of 4,000,000
pounds included in the annual production history of a
participating dairy operation, the premium per hundredweight
corresponding to each coverage level is as follows:
------------------------------------------------------------------------
Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.50 $0.02
$5.00 $0.04
$5.50 $0.10
$6.00 $0.15
$6.50 $0.29
$7.00 $0.62
$7.50 $0.83
$8.00 $1.06.
------------------------------------------------------------------------
(4) Time for payment.--In promulgating the rules to
initiate the production margin protection program, the
Secretary shall provide more than 1 method by which a
participating dairy operation that purchases supplemental
production margin protection for a calendar year may pay the
premium under this subsection for that year in any manner that
maximizes participating dairy operation payment flexibility and
program integrity.
(e) Premium Obligations.--
(1) Pro-ration of premium for new dairy operations.--A
participating dairy operation described in section 1412(c)(2)
that purchases supplemental production margin protection for a
calendar year after the start of the calendar year shall pay a
pro-rated premium for that calendar year based on the portion
of the calendar year for which the participating dairy
operation purchases the coverage.
(2) Legal obligation.--A participating dairy operation that
purchases supplemental production margin protection for a
calendar year shall be legally obligated to pay the applicable
premium for that calendar year, except that the Secretary may
waive that obligation, under terms and conditions determined by
the Secretary, for 1 or more producers in any participating
dairy operation in the case of death, retirement, permanent
dissolution of a participating dairy operation, or other
circumstances as the Secretary considers appropriate to ensure
the integrity of the program.
(f) Supplemental Payment Threshold.--A participating dairy
operation with supplemental production margin protection shall receive
a supplemental production margin protection payment whenever the
average actual dairy production margin for a consecutive 2-month period
is less than the coverage level threshold selected by the participating
dairy operation under subsection (b).
(g) Supplemental Production Margin Protection Payments.--
(1) In general.--The supplemental production margin
protection payment for a participating dairy operation is in
addition to the basic production margin protection payment.
(2) Amount of payment.--The supplemental production margin
protection payment for the participating dairy operation shall
be determined as follows:
(A) The Secretary shall calculate the difference
between the coverage level threshold selected by the
participating dairy operation under subsection (b) and
the greater of--
(i) the average actual dairy production
margin for the consecutive 2-month period; or
(ii) $4.00.
(B) The amount determined under subparagraph (A)
shall be multiplied by the percentage selected by the
participating dairy operation under subsection (c) and
by the lesser of the following:
(i) The annual production history of the
participating dairy operation, divided by 6.
(ii) The actual amount of milk marketed by
the participating dairy operation during the
consecutive 2-month period.
SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION FEES OR PREMIUMS.
(a) Loss of Benefits.--A participating dairy operation that fails
to pay the required administration fee under section 1412 or is in
arrears on premium payments for supplemental production margin
protection under section 1415--
(1) remains legally obligated to pay the administration fee
or premiums, as the case may be; and
(2) may not receive basic production margin protection
payments or supplemental production margin protection payments
until the fees or premiums are fully paid.
(b) Enforcement.--The Secretary may take such action as necessary
to collect administration fees and premium payments for supplemental
production margin protection.
Subpart B--Dairy Market Stabilization Program
SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION PROGRAM.
(a) Program Required; Purpose.--Effective not later than 120 days
after the effective date of this subtitle, the Secretary shall
establish and administer a dairy market stabilization program
applicable to participating dairy operations for the purpose of
assisting in balancing the supply of milk with demand when
participating dairy operations are experiencing low or negative
operating margins.
(b) Election of Stabilization Program Base Calculation Method.--
(1) Election.--When a dairy operation signs up under
section 1412 to participate in the production margin protection
program, the dairy operation shall inform the Secretary of the
method by which the stabilization program base for the
participating dairy operation will be calculated under
paragraph (3).
(2) Change in calculation method.--A participating dairy
operation may change the stabilization program base calculation
method to be used for a calendar year by notifying the
Secretary of the change not later than a date determined by the
Secretary.
(3) Calculation methods.--A participating dairy operation
may elect either of the following methods for calculation of
the stabilization program base for the participating dairy
operation:
(A) The volume of the average monthly milk
marketings of the participating dairy operation for the
3 months immediately preceding the announcement by the
Secretary that the stabilization program will become
effective.
(B) The volume of the monthly milk marketings of
the participating dairy operation for the same month in
the preceding year as the month for which the Secretary
has announced the stabilization program will become
effective.
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUCTION IN DAIRY
PAYMENTS.
(a) When Stabilization Program Required.--Except as provided in
subsection (b), the Secretary shall announce that the stabilization
program is in effect and order reduced payments by handlers to
participating dairy operations that exceed the applicable percentage of
the participating dairy operation's stabilization program base
whenever--
(1) the actual dairy production margin has been $6.00 or
less per hundredweight of milk for each of the immediately
preceding 2 months; or
(2) the actual dairy production margin has been $4.00 or
less per hundredweight of milk for the immediately preceding
month.
(b) Exception.--If any of the conditions described in section
1436(b) have been met during the 2-month period immediately preceding
the month in which the announcement under subsection (a) would
otherwise be made by the Secretary in the absence of this exception,
the Secretary shall--
(1) suspend the stabilization program;
(2) refrain from making the announcement under subsection
(a) to implement order the stabilization payment; or
(3) order reduced payments.
(c) Effective Date for Implementation of Payment Reductions.--
Reductions in dairy payments shall commence beginning on the first day
of the month immediately following the date of the announcement by the
Secretary under subsection (a).
SEC. 1433. MILK MARKETINGS INFORMATION.
(a) Collection of Milk Marketing Data.--The Secretary shall
establish, by regulation, a process to collect from participating dairy
operations and handlers such information that the Secretary considers
necessary for each month during which the stabilization program is in
effect.
(b) Reduce Regulatory Burden.--When implementing the process under
subsection (a), the Secretary shall minimize the regulatory burden on
participating dairy operations and handlers.
SEC. 1434. CALCULATION AND COLLECTION OF REDUCED DAIRY OPERATION
PAYMENTS.
(a) Reduced Participating Dairy Operation Payments Required.--
During any month in which payment reductions are in effect under the
stabilization program, each handler shall reduce payments to each
participating dairy operation from whom the handler receives milk.
(b) Reductions Based on Actual Dairy Production Margin.--
(1) Reduction requirement 1.--If the Secretary determines
that the average actual dairy production margin has been less
than $6.00 but greater than $5.00 per hundredweight of milk for
2 consecutive months, the handler shall make payments to a
participating dairy operation for a month based on the greater
of the following:
(A) 98 percent of the stabilization program base of
the participating dairy operation.
(B) 94 percent of the marketings of milk for the
month by the participating dairy operation.
(2) Reduction requirement 2.--If the Secretary determines
that the average actual dairy production margin has been less
than $5.00 but greater than $4.00 for 2 consecutive months, the
handler shall make payments to a participating dairy operation
for a month based on the greater of the following:
(A) 97 percent of the stabilization program base of
the participating dairy operation.
(B) 93 percent of the marketings of milk for the
month by the participating dairy operation.
(3) Reduction requirement 3.--If the Secretary determines
that the average actual dairy production margin has been $4.00
or less for any 1 month, the handler shall make payments to a
participating dairy operation for a month based on the greater
of the following:
(A) 96 percent of the stabilization program base of
the participating dairy operation.
(B) 92 percent of the marketings of milk for the
month by the participating dairy operation.
(c) Continuation of Reductions.--The largest level of payment
reduction required under paragraph (1), (2), or (3) of subsection (b)
shall be continued for each month until the Secretary suspends the
stabilization program and terminates payment reductions in accordance
with section 1436.
(d) Payment Reduction Exception.--Notwithstanding any preceding
subsection of this section, a handler shall make no payment reductions
for a participating dairy operation for a month if the participating
dairy operation's milk marketings for the month are equal to or less
than the percentage of the stabilization program base applicable to the
participating dairy operation under paragraph (1), (2), or (3) of
subsection (b).
SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE OF FUNDS.
(a) Remitting Funds.--As soon as practicable after the end of each
month during which payment reductions are in effect under the
stabilization program, each handler shall remit to the Secretary an
amount equal to the amount by which payments to participating dairy
operations are reduced by the handler under section 1434.
(b) Deposit of Remitted Funds.--All funds received under subsection
(a) shall be available to the Secretary, without further appropriation
and until expended, for use or transfer as provided in subsection (c).
(c) Use of Funds.--
(1) Availability for certain commodity donations.--Not
later than 90 days after the funds described in subsection (a)
are due as determined by the Secretary, the Secretary shall
obligate the funds for the purpose of--
(A) purchasing dairy products for donation to food
banks and other programs that the Secretary determines
appropriate; and
(B) expanding consumption and building demand for
dairy products.
(2) No duplication of effort.--The Secretary shall ensure
that expenditures under paragraph (1) are compatible with, and
do not duplicate, programs supported by the dairy research and
promotion activities conducted under the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).
(3) Accounting.--The Secretary shall keep an accurate
account of all funds expended under paragraph (1).
(d) Annual Report.--Not later than December 31 of each year that
the stabilization program is in effect, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report that provides an accurate accounting of--
(1) the funds received by the Secretary during the
preceding fiscal year under subsection (a);
(2) all expenditures made by the Secretary under subsection
(b) during the preceding fiscal year; and
(3) the impact of the stabilization program on dairy
markets.
(e) Enforcement.--If a participating dairy operation or handler
fails to remit or collect the amounts by which payments to
participating dairy operations are reduced under section 1434, the
participating dairy operation or handler responsible for the failure
shall be liable to the Secretary for the amount that should have been
remitted or collected, plus interest. In addition to the enforcement
authorities available under section 1437, the Secretary may enforce
this subsection in the courts of the United States.
SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.
(a) Determination of Prices.--For purposes of this section:
(1) The price in the United States for cheddar cheese and
nonfat dry milk shall be determined by the Secretary.
(2) The world price of cheddar cheese and skim milk powder
shall be determined by the Secretary.
(b) Suspension Thresholds.--The stabilization program shall be
suspended or the Secretary shall refrain from making the announcement
under section 1432(a) if the Secretary determines that--
(1) the actual dairy production margin is greater than
$6.00 per hundredweight of milk for 2 consecutive months;
(2) the actual dairy production margin is equal to or less
than $6.00 (but greater than $5.00) for 2 consecutive months,
and during the same 2 consecutive months--
(A) the price in the United States for cheddar
cheese is equal to or greater than the world price of
cheddar cheese; or
(B) the price in the United States for nonfat dry
milk is equal to or greater than the world price of
skim milk powder;
(3) the actual dairy production margin is equal to or less
than $5.00 (but greater than $4.00) for 2 consecutive months,
and during the same 2 consecutive months--
(A) the price in the United States for cheddar
cheese is more than 5 percent above the world price of
cheddar cheese; or
(B) the price in the United States for nonfat dry
milk is more than 5 percent above the world price of
skim milk powder; or
(4) the actual dairy production margin is equal to or less
than $4.00 for 2 consecutive months, and during the same 2
consecutive months--
(A) the price in the United States for cheddar
cheese is more than 7 percent above the world price of
cheddar cheese; or
(B) the price in the United States for nonfat dry
milk is more than 7 percent above the world price of
skim milk powder.
(c) Implementation by Handlers.--Effective on the day after the
date of the announcement by the Secretary under subsection (b) of the
suspension of the stabilization program, the handler shall cease
reducing payments to participating dairy operations under the
stabilization program.
(d) Condition on Resumption of Stabilization Program.--Upon the
announcement by the Secretary under subsection (b) that the
stabilization program has been suspended, the stabilization program may
not be implemented again until, at the earliest--
(1) 2 months have passed, beginning on the first day of the
month immediately following the announcement by the Secretary;
and
(2) the conditions of section 1432(a) are again met.
SEC. 1437. ENFORCEMENT.
(a) Unlawful Act.--It shall be unlawful and a violation of the this
subpart for any person subject to the stabilization program to
willfully fail or refuse to provide, or delay the timely reporting of,
accurate information and remittance of funds to the Secretary in
accordance with this subpart.
(b) Order.--After providing notice and opportunity for a hearing to
an affected person, the Secretary may issue an order against any person
to cease and desist from continuing any violation of this subpart.
(c) Appeal.--An order of the Secretary under subsection (b) shall
be final and conclusive unless an affected person files an appeal of
the order of the Secretary in United States district court not later
than 30 days after the date of the issuance of the order. A finding of
the Secretary in the order shall be set aside only if the finding is
not supported by substantial evidence.
(d) Noncompliance With Order.--If a person subject to this subpart
fails to obey an order issued under subsection (b) after the order has
become final and unappealable, or after the appropriate United States
district court has entered a final judgment in favor of the Secretary,
the United States may apply to the appropriate United States district
court for enforcement of the order. If the court determines that the
order was lawfully made and duly served and that the person violated
the order, the court shall enforce the order.
SEC. 1438. AUDIT REQUIREMENTS.
(a) Audits of Dairy Operation and Handler Compliance.--
(1) Audits authorized.--If determined by the Secretary to
be necessary to ensure compliance by participating dairy
operations and handlers with the stabilization program, the
Secretary may conduct periodic audits of participating dairy
operations and handlers.
(2) Sample of dairy operations.--Any audit conducted under
this subsection shall include, at a minimum, investigation of a
statistically valid and random sample of participating dairy
operations.
(b) Submission of Results.--The Secretary shall submit the results
of any audit conducted under subsection (a) to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate and include such
recommendations as the Secretary considers appropriate regarding the
stabilization program.
SEC. 1439. STUDY; REPORT.
(a) In General.--The Secretary shall direct the Office of the Chief
Economist to conduct a study of the impacts of the program established
under section 1431(a).
(b) Considerations.--The study conducted under subsection (a) shall
consider--
(1) the economic impact of the program throughout the dairy
product value chain, including the impact on producers,
processors, domestic customers, export customers, actual market
growth and potential market growth, farms of different sizes,
and different regions and States; and
(2) the impact of the program on the competitiveness of the
United States dairy industry in international markets.
(c) Report.--Not later than December 1, 2017, the Office of the
Chief Economist shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the results of the
study conducted under subsection (a).
Subpart C--Administration
SEC. 1451. DURATION.
The production margin protection program and the stabilization
program shall end on December 31, 2018.
SEC. 1452. ADMINISTRATION AND ENFORCEMENT.
(a) In General.--The Secretary shall promulgate regulations to
address administrative and enforcement issues involved in carrying out
the production margin protection, supplemental production margin
protection, and market stabilization programs.
(b) Reconstitution and Eligibility Issues.--
(1) Reconstitution.--Using authorities under section
1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C.
1308(f), 1308-2), the Secretary shall promulgate regulations to
prohibit a dairy producer from reconstituting a dairy operation
for the sole purpose of the dairy producer--
(A) receiving basic margin protection;
(B) purchasing supplemental margin protection; or
(C) avoiding participation in the market
stabilization program.
(2) Eligibility issues.--Using authorities under section
1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C.
1308(f), 1308-2), the Secretary shall promulgate regulations--
(A) to prohibit a scheme or device;
(B) to provide for equitable relief; and
(C) to provide for other issues affecting
eligibility and liability issues.
(3) Administrative appeals.--Using authorities under
section 1001(h) of the Food Security Act of 1985 (7 U.S.C.
1308(h)) and subtitle H of the Department of Agriculture
Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary shall
promulgate regulations to provide for administrative appeals of
decisions of the Secretary that are adverse to participants of
the programs described in subsection (a).
PART II--DAIRY MARKET TRANSPARENCY
SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING.
(a) Definitions.--Section 272(1)(A) of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by inserting ``, or any
other products that may significantly aid price discovery in the dairy
markets, as determined by the Secretary'' after ``of 1937''.
(b) Mandatory Reporting for Dairy Products.--Section 273(b) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) In general.--In establishing the program, the
Secretary shall only--
``(A)(i) subject to the conditions described in
paragraph (2), require each manufacturer to report to
the Secretary, more frequently than once per month,
information concerning the price, quantity, and
moisture content of dairy products sold by the
manufacturer and any other product characteristics that
may significantly aid price discovery in the dairy
markets, as determined by the Secretary; and
``(ii) modify the format used to provide the
information on the day before the date of enactment of
this subtitle to ensure that the information can be
readily understood by market participants; and
``(B) require each manufacturer and other person
storing dairy products (including dairy products in
cold storage) to report to the Secretary, more
frequently than once per month, information on the
quantity of dairy products stored.''; and
(2) in paragraph (2), by inserting ``or those that may
significantly aid price discovery in the dairy markets'' after
``Federal milk marketing order'' each place it appears in
subparagraphs (A), (B), and (C).
SEC. 1462. FEDERAL MILK MARKETING ORDER PROGRAM PRE-HEARING PROCEDURE
FOR CLASS III PRICING.
(a) In General.--The Secretary shall use the pre-hearing procedure
described in this section to consider alternative formulas for Class
III milk product pricing under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937.
(b) Requests for Proposals.--
(1) In general.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall issue a request for
the submission by interested persons of preliminary proposals
for replacement of the Class III milk product pricing formula.
(2) Preliminary proposals.--Preliminary proposals submitted
under paragraph (1)--
(A) may include competitive pay price formulas; and
(B) shall provide sufficient detail in concept to
serve as the basis for the convening by the Secretary
of a public information session for review and
discussion in accordance with section 900.24 of title
7, Code of Federal Regulations (as in effect on the
date of enactment of this Act), but need not conform
with the other procedural requirements of part 900 of
title 7, Code of Federal Regulations (as in effect on
the date of enactment of this Act).
(c) Pre-Hearing Information Session Review.--
(1) In general.--Not later than 180 days after the date on
which the Secretary issues a request under subsection (b)(1),
the Secretary shall convene a public information session in
accordance with section 900.24 of title 7, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(2) Requirements.--The Secretary shall review all
preliminary proposals submitted under this section that are of
sufficient conceptual detail to allow for the review described
in paragraph (b)(2)(B).
(d) Hearing Determination.--
(1) In general.--Not later than 90 days after the conduct
of the public information session under subsection (c), the
Secretary shall determine whether to conduct a formal hearing
in accordance with part 900 of title 7, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(2) Hearing to be conducted.--If the Secretary determines
under paragraph (1) to conduct a formal hearing, the Secretary
shall issue notice and conduct the hearing in accordance with
part 900 of title 7, Code of Federal Regulations (as in effect
on the date of enactment of this Act).
(3) Hearing not to be conducted.--If the Secretary
determines under paragraph (1) not to conduct a formal hearing,
not later than 90 days after that determination, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition and
Forestry of the Senate a written report that explains the basis
for the decision.
(e) Proceeding With a Hearing at Any Time.--Consistent with the
purposes of this section, the Secretary may dispense with the pre-
hearing requirements of this section and initiate at any time a formal
hearing under part 900 of title 7, Code of Federal Regulations (as in
effect on the date of enactment of this Act).
PART III--REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS
SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK INCOME LOSS
CONTRACT PROGRAMS.
(a) Repeal of Dairy Product Price Support Program.--Section 1501 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is
repealed.
(b) Repeal of Milk Income Loss Contract Program.--
(1) Payments under milk income loss contract program.--
Section 1506(c)(3) of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8773(c)(3)) is amended--
(A) in subparagraph (A), by inserting ``and'' after
the semicolon;
(B) in subparagraph (B), by striking ``August 31,
2013, 45 percent; and'' and inserting ``June 30, 2014,
45 percent.''; and
(C) by striking subparagraph (C).
(2) Extension.--Section 1506(h)(1) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is
amended by striking ``September 30, 2013'' and inserting ``June
30, 2014''.
(3) Repeal.--Effective July 1, 2014, section 1506 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is
repealed.
SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.
(a) Repeal.--Section 153 of the Food Security Act of 1985 (15
U.S.C. 713a-14) is repealed.
(b) Conforming Amendments.--Section 902(2) of the Trade Sanctions
Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is
amended--
(1) by striking subparagraph (D); and
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively.
SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.
Section 1502(e) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8772(e)) is amended--
(1) in paragraph (1), by striking ``2012'' and inserting
``2018''; and
(2) in paragraph (2), by striking ``2015'' and inserting
``2021''.
SEC. 1474. EXTENSION OF DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 1475. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM.
Section 113(e)(2) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(e)(2)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
Section 1509(a) of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 122 Stat. 1726) is amended by inserting ``or other
funds'' after ``Subject to the availability of appropriations''.
PART IV--FEDERAL MILK MARKETING ORDER REFORM
SEC. 1481. FEDERAL MILK MARKETING ORDERS.
(a) Amendments.--The Secretary shall provide an analysis on the
effects of amending each Federal milk marketing order issued under
section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Agreement Act
of 1937 (in this part referred to as a ``milk marketing order''), as
required by this section.
(b) Use of End-Product Price Formulas.--In carrying out subsection
(a), the Secretary shall--
(1) consider replacing the use of end-product price
formulas with other pricing alternatives; and
(2) 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 findings of
the Secretary on the impact of the action considered under
paragraph (1).
PART V--EFFECTIVE DATE
SEC. 1491. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, this subtitle and
the amendments made by this subtitle take effect on October 1, 2013.
Subtitle E--Supplemental Agricultural Disaster Assistance Programs
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS.
(a) Definitions.--In this section:
(1) Eligible producer on a farm.--
(A) In general.--The term ``eligible producer on a
farm'' means an individual or entity described in
subparagraph (B) that, as determined by the Secretary,
assumes the production and market risks associated with
the agricultural production of crops or livestock.
(B) Description.--An individual or entity referred
to in subparagraph (A) is--
(i) a citizen of the United States;
(ii) a resident alien;
(iii) a partnership of citizens of the
United States; or
(iv) a corporation, limited liability
corporation, or other farm organizational
structure organized under State law.
(2) Farm.--
(A) In general.--The term ``farm'' means, in
relation to an eligible producer on a farm, the total
of all crop acreage in all counties that is planted or
intended to be planted for harvest, for sale, or on-
farm livestock feeding (including native grassland
intended for haying) by the eligible producer.
(B) Aquaculture.--In the case of aquaculture, the
term ``farm'' means, in relation to an eligible
producer on a farm, all fish being produced in all
counties that are intended to be harvested for sale by
the eligible producer.
(C) Honey.--In the case of honey, the term ``farm''
means, in relation to an eligible producer on a farm,
all bees and beehives in all counties that are intended
to be harvested for a honey crop for sale by the
eligible producer.
(3) Farm-raised fish.--The term ``farm-raised fish'' means
any aquatic species that is propagated and reared in a
controlled environment.
(4) Livestock.--The term ``livestock'' includes--
(A) cattle (including dairy cattle);
(B) bison;
(C) poultry;
(D) sheep;
(E) swine;
(F) horses; and
(G) other livestock, as determined by the
Secretary.
(b) Livestock Indemnity Payments.--
(1) Payments.--For each of fiscal years 2012 through 2018,
the Secretary shall use such sums as are necessary of the funds
of the Commodity Credit Corporation to make livestock indemnity
payments to eligible producers on farms that have incurred
livestock death losses in excess of the normal mortality, as
determined by the Secretary, due to--
(A) attacks by animals reintroduced into the wild
by the Federal Government or protected by Federal law,
including wolves; or
(B) adverse weather, as determined by the
Secretary, during the calendar year, including losses
due to hurricanes, floods, blizzards, disease,
wildfires, extreme heat, and extreme cold.
(2) Payment rates.--Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at a rate
of 65 percent of the market value of the applicable livestock
on the day before the date of death of the livestock, as
determined by the Secretary.
(3) Special rule for payments made due to disease.--The
Secretary shall ensure that payments made to an eligible
producer under paragraph (1) are not made for the same
livestock losses for which compensation is provided pursuant to
section 10407(d) of the Animal Health Protection Act (7 U.S.C.
8306(d)).
(c) Livestock Forage Disaster Program.--
(1) Establishment.--There is established a livestock forage
disaster program to provide 1 source for livestock forage
disaster assistance for weather-related forage losses, as
determined by the Secretary, by combining--
(A) the livestock forage assistance functions of--
(i) the noninsured crop disaster assistance
program established by section 196 of the
Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333); and
(ii) the emergency assistance for
livestock, honey bees, and farm-raised fish
program under section 531(e) of the Federal
Crop Insurance Act (7 U.S.C. 1531(e)) (as in
existence on the day before the date of
enactment of this Act); and
(B) the livestock forage disaster program under
section 531(d) of the Federal Crop Insurance Act (7
U.S.C. 1531(d)) (as in existence on the day before the
date of enactment of this Act).
(2) Definitions.--In this subsection:
(A) Covered livestock.--
(i) In general.--Except as provided in
clause (ii), the term ``covered livestock''
means livestock of an eligible livestock
producer that, during the 60 days prior to the
beginning date of an eligible forage loss, as
determined by the Secretary, the eligible
livestock producer--
(I) owned;
(II) leased;
(III) purchased;
(IV) entered into a contract to
purchase;
(V) was a contract grower; or
(VI) sold or otherwise disposed of
due to an eligible forage loss during--
(aa) the current production
year; or
(bb) subject to paragraph
(4)(B)(ii), 1 or both of the 2
production years immediately
preceding the current
production year.
(ii) Exclusion.--The term ``covered
livestock'' does not include livestock that
were or would have been in a feedlot, on the
beginning date of the eligible forage loss, as
a part of the normal business operation of the
eligible livestock producer, as determined by
the Secretary.
(B) Drought monitor.--The term ``drought monitor''
means a system for classifying drought severity
according to a range of abnormally dry to exceptional
drought, as defined by the Secretary.
(C) Eligible forage loss.--The term ``eligible
forage loss'' means 1 or more forage losses that occur
due to weather-related conditions, including drought,
flood, blizzard, hail, excessive moisture, hurricane,
and fire, occurring during the normal grazing period,
as determined by the Secretary, if the forage--
(i) is grown on land that is native or
improved pastureland with permanent vegetative
cover; or
(ii) is a crop planted specifically for the
purpose of providing grazing for covered
livestock of an eligible livestock producer.
(D) Eligible livestock producer.--
(i) In general.--The term ``eligible
livestock producer'' means an eligible producer
on a farm that--
(I) is an owner, cash or share
lessee, or contract grower of covered
livestock that provides the pastureland
or grazing land, including cash-leased
pastureland or grazing land, for the
covered livestock;
(II) provides the pastureland or
grazing land for covered livestock,
including cash-leased pastureland or
grazing land that is physically located
in a county affected by an eligible
forage loss;
(III) certifies the eligible forage
loss; and
(IV) meets all other eligibility
requirements established under this
subsection.
(ii) Exclusion.--The term ``eligible
livestock producer'' does not include an owner,
cash or share lessee, or contract grower of
livestock that rents or leases pastureland or
grazing land owned by another person on a rate-
of-gain basis.
(E) Normal carrying capacity.--The term ``normal
carrying capacity'', with respect to each type of
grazing land or pastureland in a county, means the
normal carrying capacity, as determined under paragraph
(4)(D)(i), that would be expected from the grazing land
or pastureland for livestock during the normal grazing
period, in the absence of an eligible forage loss that
diminishes the production of the grazing land or
pastureland.
(F) Normal grazing period.--The term ``normal
grazing period'', with respect to a county, means the
normal grazing period during the calendar year for the
county, as determined under paragraph (4)(D)(i).
(3) Program.--For each of fiscal years 2012 through 2018,
the Secretary shall use such sums as are necessary of the funds
of the Commodity Credit Corporation to provide compensation
under paragraphs (4) through (6), as determined by the
Secretary for eligible forage losses affecting covered
livestock of eligible livestock producers.
(4) Assistance for eligible forage losses due to drought
conditions.--
(A) Eligible forage losses.--
(i) In general.--An eligible livestock
producer of covered livestock may receive
assistance under this paragraph for eligible
forage losses that occur due to drought on land
that--
(I) is native or improved
pastureland with permanent vegetative
cover; or
(II) is planted to a crop planted
specifically for the purpose of
providing grazing for covered
livestock.
(ii) Exclusions.--An eligible livestock
producer may not receive assistance under this
paragraph for eligible forage losses that occur
on land used for haying or grazing under the
conservation reserve program established under
subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16
U.S.C. 3831 et seq.), unless the land is
grassland eligible for the conservation reserve
program under section 1231(d)(2) of the Food
Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as
amended by section 2001).
(B) Monthly payment rate.--
(i) In general.--Except as provided in
clause (ii), the payment rate for assistance
for 1 month under this paragraph shall, in the
case of drought, be equal to 50 percent of the
lesser of--
(I) the monthly feed cost for all
covered livestock owned or leased by
the eligible livestock producer, as
determined under subparagraph (C); or
(II) the monthly feed cost
calculated by using the normal carrying
capacity of the eligible grazing land
of the eligible livestock producer.
(ii) Partial compensation.--In the case of
an eligible livestock producer that sold or
otherwise disposed of covered livestock due to
drought conditions in 1 or both of the 2
production years immediately preceding the
current production year, as determined by the
Secretary, the payment rate shall be 80 percent
of the payment rate otherwise calculated in
accordance with clause (i).
(C) Monthly feed cost.--
(i) In general.--The monthly feed cost
shall equal the product obtained by
multiplying--
(I) 30 days;
(II) a payment quantity that is
equal to the feed grain equivalent, as
determined under clause (ii); and
(III) a payment rate that is equal
to the corn price per pound, as
determined under clause (iii).
(ii) Feed grain equivalent.--For purposes
of clause (i)(II), the feed grain equivalent
shall equal--
(I) in the case of an adult beef
cow, 15.7 pounds of corn per day; or
(II) in the case of any other type
of weight of livestock, an amount
determined by the Secretary that
represents the average number of pounds
of corn per day necessary to feed the
livestock.
(iii) Corn price per pound.--For purposes
of clause (i)(III), the corn price per pound
shall equal the quotient obtained by dividing--
(I) the lesser of--
(aa) the national average
corn price per bushel for the
12-month period immediately
preceding March 1 of the year
for which the disaster
assistance is calculated; or
(bb) the average national
marketing year average corn
price per bushel for the most
recent 5 crop years, excluding
each of the crop years with the
highest and lowest prices; by
(II) 56.
(D) Normal grazing period and drought monitor
intensity.--
(i) FSA county committee determinations.--
(I) In general.--The Secretary
shall determine the normal carrying
capacity and normal grazing period for
each type of grazing land or
pastureland in the county served by the
applicable Farm Service Agency
committee, except that the normal
grazing period shall not exceed 240
days.
(II) Changes.--No change to the
normal carrying capacity or normal
grazing period established for a county
under subclause (I) shall be made
unless the change is requested by the
appropriate State and county Farm
Service Agency committees.
(ii) Drought intensity.--
(I) D2.--An eligible livestock
producer that owns or leases grazing
land or pastureland that is physically
located in a county that is rated by
the U.S. Drought Monitor as having a D2
(severe drought) intensity in any area
of the county for at least 8
consecutive weeks during the normal
grazing period for the county, as
determined by the Secretary, shall be
eligible to receive assistance under
this paragraph in an amount equal to 1
monthly payment using the monthly
payment rate determined under
subparagraph (B).
(II) D3.--An eligible livestock
producer that owns or leases grazing
land or pastureland that is physically
located in a county that is rated by
the U.S. Drought Monitor as having at
least a D3 (extreme drought) intensity
in any area of the county at any time
during the normal grazing period for
the county, as determined by the
Secretary, shall be eligible to receive
assistance under this paragraph--
(aa) in an amount equal to
2 monthly payments using the
monthly payment rate determined
under subparagraph (B); or
(bb) if the county is rated
as having a D3 (extreme
drought) intensity in any area
of the county for at least 4
weeks during the normal grazing
period for the county, or is
rated as having a D4
(exceptional drought) intensity
in any area of the county at
any time during the normal
grazing period, in an amount
equal to 3 monthly payments
using the monthly payment rate
determined under subparagraph
(B).
(iii) Annual payment based on drought
conditions determined by means other than the
u.s. drought monitor.--
(I) In general.--An eligible
livestock producer that owns grazing
land or pastureland that is physically
located in a county that has
experienced on average, over the
preceding calendar year, precipitation
levels that are 50 percent or more
below normal levels, according to
sufficient documentation as determined
by the Secretary, may be eligible,
subject to a determination by the
Secretary, to receive assistance under
this paragraph in an amount equal to
not more than 1 monthly payment using
the monthly payment rate under
subparagraph (B).
(II) No duplicate payment.--A
producer may not receive a payment
under both clause (ii) and this clause.
(5) Assistance for losses due to fire on public managed
land.--
(A) In general.--An eligible livestock producer may
receive assistance under this paragraph only if--
(i) the eligible forage losses occur on
rangeland that is managed by a Federal agency;
and
(ii) the eligible livestock producer is
prohibited by the Federal agency from grazing
the normal permitted livestock on the managed
rangeland due to a fire.
(B) Payment rate.--The payment rate for assistance
under this paragraph shall be equal to 50 percent of
the monthly feed cost for the total number of livestock
covered by the Federal lease of the eligible livestock
producer, as determined under paragraph (4)(C).
(C) Payment duration.--
(i) In general.--Subject to clause (ii), an
eligible livestock producer shall be eligible
to receive assistance under this paragraph for
the period--
(I) beginning on the date on which
the Federal agency excludes the
eligible livestock producer from using
the managed rangeland for grazing; and
(II) ending on the last day of the
Federal lease of the eligible livestock
producer.
(ii) Limitation.--An eligible livestock
producer may only receive assistance under this
paragraph for losses that occur on not more
than 180 days per year.
(6) Assistance for eligible forage losses due to other than
drought or fire.--
(A) Eligible forage losses.--
(i) In general.--Subject to subparagraph
(B), an eligible livestock producer of covered
livestock may receive assistance under this
paragraph for eligible forage losses that occur
due to weather-related conditions other than
drought or fire on land that--
(I) is native or improved
pastureland with permanent vegetative
cover; or
(II) is planted to a crop planted
specifically for the purpose of
providing grazing for covered
livestock.
(ii) Exclusions.--An eligible livestock
producer may not receive assistance under this
paragraph for eligible forage losses that occur
on land used for haying or grazing under the
conservation reserve program established under
subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16
U.S.C. 3831 et seq.), unless the land is
grassland eligible for the conservation reserve
program under section 1231(d)(2) of the Food
Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as
amended by section 2001).
(B) Payments for eligible forage losses.--
(i) In general.--The Secretary shall
provide assistance under this paragraph to an
eligible livestock producer for eligible forage
losses that occur due to weather-related
conditions other than--
(I) drought under paragraph (4);
and
(II) fire on public managed land
under paragraph (5).
(ii) Terms and conditions.--The Secretary
shall establish terms and conditions for
assistance under this paragraph that are
consistent with the terms and conditions for
assistance under this subsection.
(7) No duplicative payments.--An eligible livestock
producer may elect to receive assistance for eligible forage
losses under either paragraph (4), (5), or (6), if applicable,
but may not receive assistance under more than 1 of those
paragraphs for the same loss, as determined by the Secretary.
(8) Determinations by secretary.--A determination made by
the Secretary under this subsection shall be final and
conclusive.
(d) Emergency Assistance for Livestock, Honey Bees, and Farm-raised
Fish.--
(1) In general.--For each of fiscal years 2012 through
2018, the Secretary shall use not more than $15,000,000 of the
funds of the Commodity Credit Corporation to provide emergency
relief to eligible producers of livestock, honey bees, and
farm-raised fish to aid in the reduction of losses due to
disease, adverse weather, or other conditions, such as
blizzards and wildfires, as determined by the Secretary, that
are not covered under subsection (b) or (c).
(2) Use of funds.--Funds made available under this
subsection shall be used to reduce losses caused by feed or
water shortages, disease, or other factors as determined by the
Secretary.
(3) Availability of funds.--Any funds made available under
this subsection shall remain available until expended.
(e) Tree Assistance Program.--
(1) Definitions.--In this subsection:
(A) Eligible orchardist.--The term ``eligible
orchardist'' means a person that produces annual crops
from trees for commercial purposes.
(B) Natural disaster.--The term ``natural
disaster'' means plant disease, insect infestation,
drought, fire, freeze, flood, earthquake, lightning, or
other occurrence, as determined by the Secretary.
(C) Nursery tree grower.--The term ``nursery tree
grower'' means a person who produces nursery,
ornamental, fruit, nut, or Christmas trees for
commercial sale, as determined by the Secretary.
(D) Tree.--The term ``tree'' includes a tree, bush,
and vine.
(2) Eligibility.--
(A) Loss.--Subject to subparagraph (B), for each of
fiscal years 2012 through 2018, the Secretary shall use
such sums as are necessary of the funds of the
Commodity Credit Corporation to provide assistance--
(i) under paragraph (3) to eligible
orchardists and nursery tree growers that
planted trees for commercial purposes but lost
the trees as a result of a natural disaster, as
determined by the Secretary; and
(ii) under paragraph (3)(B) to eligible
orchardists and nursery tree growers that have
a production history for commercial purposes on
planted or existing trees but lost the trees as
a result of a natural disaster, as determined
by the Secretary.
(B) Limitation.--An eligible orchardist or nursery
tree grower shall qualify for assistance under
subparagraph (A) only if the tree mortality of the
eligible orchardist or nursery tree grower, as a result
of damaging weather or related condition, exceeds 15
percent (adjusted for normal mortality).
(3) Assistance.--Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall
consist of--
(A)(i) reimbursement of 65 percent of the cost of
replanting trees lost due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
mortality (adjusted for normal mortality); or
(ii) at the option of the Secretary, sufficient
seedlings to reestablish a stand; and
(B) reimbursement of 50 percent of the cost of
pruning, removal, and other costs incurred by an
eligible orchardist or nursery tree grower to salvage
existing trees or, in the case of tree mortality, to
prepare the land to replant trees as a result of damage
or tree mortality due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
damage or mortality (adjusted for normal tree damage
and mortality).
(4) Limitations on assistance.--
(A) Definitions of legal entity and person.--In
this paragraph, the terms ``legal entity'' and
``person'' have the meaning given those terms in
section 1001(a) of the Food Security Act of 1985 (7
U.S.C. 1308(a)).
(B) Amount.--The total amount of payments received,
directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership)
under this subsection may not exceed $100,000 for any
crop year, or an equivalent value in tree seedlings.
(C) Acres.--The total quantity of acres planted to
trees or tree seedlings for which a person or legal
entity shall be entitled to receive payments under this
subsection may not exceed 500 acres.
(f) Payments.--
(1) Payment limitations.--
(A) Definitions of legal entity and person.--In
this subsection, the terms ``legal entity'' and
``person'' have the meanings given those terms in
section 1001(a) of the Food Security Act of 1985 (7
U.S.C. 1308(a)).
(B) Amount.--The total amount of disaster
assistance payments received, directly or indirectly,
by a person or legal entity (excluding a joint venture
or general partnership) under this section (excluding
payments received under subsection (e)) may not exceed
$100,000 for any crop year.
(C) Direct attribution.--Subsections (d) and (e) of
section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) or any successor provisions relating to direct
attribution shall apply with respect to assistance
provided under this section.
(2) Payment delivery.--The Secretary shall make payments
under this section after October 1, 2013, for losses incurred
in the 2012 and 2013 fiscal years, and as soon as practicable
for losses incurred in any year thereafter.
Subtitle F--Administration
SEC. 1601. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this title.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Except as otherwise provided in this
subsection, not later than 90 days after the date of enactment
of this Act, the Secretary and the Commodity Credit
Corporation, as appropriate, shall promulgate such regulations
as are necessary to implement this title and the amendments
made by this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title and the amendments made by this
title and sections 11001 and 11012 shall be made without regard
to--
(A) the notice and comment provisions of section
553 of title 5, United States Code;
(B) chapter 35 of title 44, United States Code
(commonly known as the ``Paperwork Reduction Act'');
and
(C) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(d) Adjustment Authority Related to Trade Agreements Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under this title that are subject
to the total allowable domestic support levels under the
Uruguay Round Agreements (as defined in section 2 of the
Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed the
allowable levels for any applicable reporting period, the
Secretary shall, to the maximum extent practicable, make
adjustments in the amount of the expenditures during that
period to ensure that the expenditures do not exceed the
allowable levels.
(2) Congressional notification.--Before making any
adjustment under paragraph (1), the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report describing the determination made under
that paragraph and the extent of the adjustment to be made.
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The following provisions
of the Agricultural Adjustment Act of 1938 shall not be applicable to
the 2014 through 2018 crops of covered commodities (as defined in
section 1104), cotton, and sugar and shall not be applicable to milk
during the period beginning on the date of enactment of this Act
through December 31, 2018:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) In the case of upland cotton, section 377 (7 U.S.C.
1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of the
Agricultural Act of 1949 shall not be applicable to the 2014 through
2018 crops of covered commodities (as defined in section 1104), cotton,
and sugar and shall not be applicable to milk during the period
beginning on the date of enactment of this Act and through December 31,
2018:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) Suspension of Certain Quota Provisions.--The joint resolution
entitled ``A joint resolution relating to corn and wheat marketing
quotas under the Agricultural Adjustment Act of 1938, as amended'',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
to the crops of wheat planted for harvest in the calendar years 2014
through 2018.
SEC. 1603. PAYMENT LIMITATIONS.
(a) In General.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking subsections (b) and (c) and
inserting the following:
``(b) Limitation on Payments for Peanuts and Other Covered
Commodities.--The total amount of payments received, directly or
indirectly, by a person or legal entity (except a joint venture or
general partnership) for any crop year under subtitle A of title I of
the Agriculture Reform, Food, and Jobs Act of 2013 for--
``(1) peanuts may not exceed $50,000; and
``(2) 1 or more other covered commodities may not exceed
$50,000.''.
(b) Limitation on Marketing Loan Gains and Loan Deficiency Payments
for Peanuts and Other Loan Commodities.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsection
(d) and inserting the following:
``(d) Limitation on Marketing Loan Gains and Loan Deficiency
Payments for Peanuts and Other Loan Commodities.--The total amount of
marketing loan gains and loan deficiency payments received, directly or
indirectly, by a person or legal entity (except a joint venture or
general partnership) for any crop year under subtitle B of the
Agriculture Reform, Food, and Jobs Act of 2013 (or a successor
provision) for--
``(1) peanuts may not exceed $75,000; and
``(2) 1 or more other loan commodities may not exceed
$75,000.''.
(c) Conforming Amendments.--
(1) Section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) is amended--
(A) in subsection (a)(1), by striking ``section
1001 of the Food, Conservation, and Energy Act of
2008'' and inserting ``section 1104 of the Agriculture
Reform, Food, and Jobs Act of 2013'';
(B) in subsection (e)--
(i) in paragraph (1), by striking
``subsections (b) and (c) and a program
described in paragraphs (1)(C)'' and inserting
``subsection (b) and a program described in
paragraph (1)(B)''; and
(ii) in paragraph (3)(B), by striking
``subsections (b) and (c)'' each place it
appears and inserting ``subsection (b)'';
(C) in subsection (f)--
(i) by striking ``or title XII'' each place
it appears in paragraphs (5)(A) and (6)(A) and
inserting ``, title I of the Agriculture
Reform, Food, and Jobs Act of 2013, or title
XII'';
(ii) in paragraph (2), by striking
``Subsections (b) and (c)'' and inserting
``Subsection (b)'';
(iii) in paragraph (4)(B), by striking
``subsection (b) or (c)'' and inserting
``subsection (b)'';
(iv) in paragraph (5)--
(I) in subparagraph (A), by
striking ``subsection (d)'' and
inserting ``subsection (c)''; and
(II) in subparagraph (B), by
striking ``subsection (b), (c), or
(d)'' and inserting ``subsection (b) or
(c)''; and
(v) in paragraph (6)--
(I) in subparagraph (A), by
striking ``subsection (d), except as
provided in subsection (g)'' and
inserting ``subsection (c), except as
provided in subsection (f)''; and
(II) in subparagraph (B), by
striking ``subsections (b), (c), and
(d)'' and inserting ``subsections (b)
and (c)'';
(D) in subsection (g)--
(i) in paragraph (1)--
(I) by striking ``subsection
(f)(6)(A)'' and inserting ``subsection
(e)(6)(A)'' and
(II) by striking ``subsection (b)
or (c)'' and inserting ``subsection
(b)''; and
(ii) in paragraph (2)(A), by striking
``subsections (b) and (c)'' and inserting
``subsection (b)''; and
(E) by redesignating subsections (d) through (h) as
subsections (c) through (g), respectively.
(2) Section 1001A of the Food Security Act of 1985 (7
U.S.C. 1308-1) is amended--
(A) in subsection (a), by striking ``subsections
(b) and (c)'' and inserting ``subsection (b)''; and
(B) in subsection (b)(1), by striking ``subsection
(b) or (c)'' and inserting ``subsection (b)''.
(3) Section 1001B(a) of the Food Security Act of 1985 (7
U.S.C. 1308-2(a)) is amended in the matter preceding paragraph
(1) by striking ``subsections (b) and (c)'' and inserting
``subsection (b)''.
(4) Section 1001C(a) of the Food Security Act of 1985 (7
U.S.C. 1308-3(a)) is amended by inserting ``title I of the
Agriculture Reform, Food, and Jobs Act of 2013,'' after
``2008,''.
(d) Application.--The amendments made by this section shall apply
beginning with the 2014 crop year.
SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS.
Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1) is
amended--
(1) in subsection (b)(2)--
(A) by striking ``or active personal management''
each place it appears in subparagraphs (A)(i)(II) and
(B)(ii); and
(B) in subparagraph (C), by striking ``, as applied
to the legal entity, are met by the legal entity, the
partners or members making a significant contribution
of personal labor or active personal management'' and
inserting ``are met by partners or members making a
significant contribution of personal labor, those
partners or members''; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) the landowner share-rents the land at a rate
that is usual and customary;'';
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the share of the payments received by the
landowner is commensurate with the share of the crop or
income received as rent.'';
(B) in paragraph (2)(A), by striking ``active
personal management or'';
(C) in paragraph (5)--
(i) by striking ``(5)'' and all that
follows through ``(A) In general.--A person''
and inserting the following:
``(5) Custom farming services.--A person'';
(ii) by inserting ``under usual and
customary terms'' after ``services''; and
(iii) by striking subparagraph (B); and
(D) by adding at the end the following:
``(7) Farm managers.--A person who otherwise meets the
requirements of this subsection other than (b)(2)(A)(i)(II)
shall be considered to be actively engaged in farming, as
determined by the Secretary, with respect to the farming
operation, including a farming operation that is a sole
proprietorship, a legal entity such as a joint venture or
general partnership, or a legal entity such as a corporation or
limited partnership, if the person--
``(A) makes a significant contribution of
management to the farming operation necessary for the
farming operation, taking into account--
``(i) the size and complexity of the
farming operation; and
``(ii) the management requirements normally
and customarily required by similar farming
operations;
``(B) is the only person in the farming operation
qualifying as actively engaged in farming;
``(C) does not use the management contribution
under this paragraph to qualify as actively engaged in
more than 1 farming operation; and
``(D) manages a farm operation that does not
substantially share equipment, labor, or management
with persons or legal entities that with the person
collectively receive, directly or indirectly, an amount
equal to more than the applicable limits under section
1001(b).''.
SEC. 1605. ADJUSTED GROSS INCOME LIMITATION.
(a) In General.--Section 1001D(b)) of the Food Security Act of 1985
(7 U.S.C. 1308-3a(b)) is amended by striking paragraph (1) and
inserting the following:
``(1) Commodity programs.--
``(A) Limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive any benefit described in
subparagraph (B) during a crop, fiscal or program year,
as appropriate, if the average adjusted gross income
(or comparable measure over the 3 taxable years
preceding the most immediately preceding complete
taxable year, as determined by the Secretary) of the
person or legal entity exceeds $750,000.
``(B) Covered benefits.--Subparagraph (A) applies
with respect to the following:
``(i) A payment under section 1107 or 1108
of the Agriculture Reform, Food, and Jobs Act
of 2013.
``(ii) A marketing loan gain or loan
deficiency payment under subtitle B of title I
of the Agriculture Reform, Food, and Jobs Act
of 2013.
``(iii) A payment under subtitle E of the
Agriculture Reform, Food, and Jobs Act of 2013.
``(iv) A payment under section 196 of the
Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333).''.
(b) Application.--The amendments made by this section shall apply
beginning with the 2014 crop year.
SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
Section 1621(d) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8792(d)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7284) is amended by striking ``and title I of the
Food, Conservation, and Energy Act of 2008'' each place it appears and
inserting ``title I of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8702 et seq.), and title I of the Agriculture Reform, Food,
and Jobs Act of 2013''.
SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER
FARM COMMODITY PROGRAMS.
(a) Reconciliation.--At least twice each year, the Secretary shall
reconcile social security numbers of all individuals who receive
payments under this title, whether directly or indirectly, with the
Commissioner of Social Security to determine if the individuals are
alive.
(b) Preclusion.--The Secretary shall preclude the issuance of
payments to, and on behalf of, deceased individuals that were not
eligible for payments.
SEC. 1609. APPEALS.
(a) Direction, Control, and Support.--Section 272 of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 6992) is amended by
striking subsection (c) and inserting the following:
``(c) Direction, Control, and Support.--
``(1) Direction and control.--
``(A) In general.--Except as provided in paragraph
(2), the Director shall be free from the direction and
control of any person other than the Secretary or the
Deputy Secretary of Agriculture.
``(B) Administrative support.--The Division shall
not receive administrative support (except on a
reimbursable basis) from any agency other than the
Office of the Secretary.
``(C) Prohibition on delegation.--The Secretary may
not delegate to any other officer or employee of the
Department, other than the Deputy Secretary of
Agriculture or the Director, the authority of the
Secretary with respect to the Division.
``(2) Exception.--The Assistant Secretary for
Administration is authorized to investigate, enforce, and
implement the provisions in law, Executive order, or
regulations that relate in general to competitive and excepted
service positions and employment within the Division, including
the position of Director, and such authority may be further
delegated to subordinate officials.''.
(b) Conforming Amendment.--Section 296(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(1) in the matter preceding paragraph (1) by striking
``affect--'' and inserting ``affect:'';
(2) by striking ``the authority'' each place it appears in
paragraphs (1) through (7) and inserting ``The authority'';
(3) by striking the semicolon at the end of each of
paragraphs (1) through (5) and inserting a period;
(4) in paragraph (6)(C), by striking ``; or'' at the end
and inserting a period; and
(5) by adding at the end the following:
``(8) The authority of the Secretary to carry out
amendments made by the Agriculture Reform, Food, and Jobs Act
of 2013.''.
SEC. 1610. TECHNICAL CORRECTIONS.
(a) Section 359f(c)(1)(B) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a period at the
end.
(b)(1) Section 1603(g) of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 1739) is amended in paragraphs (2)
through (6) and the amendments made by those paragraphs by striking
``1703(a)'' each place it appears and inserting ``1603(a)''.
(2) This subsection and the amendments made by this subsection take
effect as if included in the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 122 Stat. 1651).
SEC. 1611. ASSIGNMENT OF PAYMENTS.
(a) In General.--The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating
to assignment of payments, shall apply to payments made under this
title.
(b) Notice.--The producer making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as the
Secretary may require, of any assignment made under this section.
SEC. 1612. TRACKING OF BENEFITS.
As soon as practicable after the date of enactment of this Act, the
Secretary may track the benefits provided, directly or indirectly, to
individuals and entities under titles I and II and the amendments made
by those titles.
SEC. 1613. SIGNATURE AUTHORITY.
(a) In General.--In carrying out this title and title II and
amendments made by those titles, if the Secretary approves a document,
the Secretary shall not subsequently determine the document is
inadequate or invalid because of the lack of authority of any person
signing the document on behalf of the applicant or any other
individual, entity, general partnership, or joint venture, or the
documents relied upon were determined inadequate or invalid, unless the
person signing the program document knowingly and willfully falsified
the evidence of signature authority or a signature.
(b) Affirmation.--
(1) In general.--Nothing in this section prohibits the
Secretary from asking a proper party to affirm any document
that otherwise would be considered approved under subsection
(a).
(2) No retroactive effect.--A denial of benefits based on a
lack of affirmation under paragraph (1) shall not be
retroactive with respect to third-party producers who were not
the subject of the erroneous representation of authority, if
the third-party producers--
(A) relied on the prior approval by the Secretary
of the documents in good faith; and
(B) substantively complied with all program
requirements.
SEC. 1614. IMPLEMENTATION.
(a) Streamlining.--In implementing this title, the Secretary shall,
to the maximum extent practicable--
(1) seek to reduce administrative burdens and costs to
producers by streamlining and reducing paperwork, forms, and
other administrative requirements;
(2) improve coordination, information sharing, and
administrative work with the Risk Management Agency and the
Natural Resources Conservation Service; and
(3) take advantage of new technologies to enhance
efficiency and effectiveness of program delivery to producers.
(b) Implementation.--On October 1, 2013, the Secretary shall make
available to the Farm Service Agency to carry out this title
$97,000,000.
TITLE II--CONSERVATION
Subtitle A--Conservation Reserve Program
SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS OF CONSERVATION
RESERVE PROGRAM.
(a) Extension.--Section 1231(a) of the Food Security Act of 1985
(16 U.S.C. 3831(a)) is amended by striking ``2012'' and inserting
``2018''.
(b) Eligible Land.--Section 1231(b) of the Food Security Act of
1985 (16 U.S.C. 3831(b)) is amended--
(1) in paragraph (1)(B), by striking ``the date of
enactment of the Food, Conservation, and Energy Act of 2008''
and inserting ``the date of enactment of the Agriculture
Reform, Food, and Jobs Act of 2013'';
(2) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (2);
(3) by inserting before paragraph (4) the following:
``(3) grassland that--
``(A) contains forbs or shrubland (including
improved rangeland and pastureland) for which grazing
is the predominant use;
``(B) is located in an area historically dominated
by grassland; and
``(C) could provide habitat for animal and plant
populations of significant ecological value if the land
is retained in its current use or restored to a natural
condition;'';
(4) in paragraph (4)(C), by striking ``filterstrips devoted
to trees or shrubs'' and inserting ``filterstrips and riparian
buffers devoted to trees, shrubs, or grasses''; and
(5) by striking paragraph (5) and inserting the following:
``(5) the portion of land in a field not enrolled in the
conservation reserve in a case in which--
``(A) more than 50 percent of the land in the field
is enrolled as a buffer or filterstrip or more than 75
percent of the land in the field is enrolled in a
practice other than as a buffer or filterstrip; and
``(B) the remainder of the field is--
``(i) infeasible to farm; and
``(ii) enrolled at regular rental rates.''.
(c) Planting Status of Certain Land.--Section 1231(c) of the Food
Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking ``if''
and all that follows through the period at the end and inserting ``if,
during the crop year, the land was devoted to a conserving use.''.
(d) Enrollment.--Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended by striking subsection (d) and inserting the
following:
``(d) Enrollment.--
``(1) Maximum acreage enrolled.--The Secretary may maintain
in the conservation reserve at any 1 time during--
``(A) fiscal year 2014, no more than 30,000,000
acres;
``(B) fiscal year 2015, no more than 27,500,000
acres;
``(C) fiscal year 2016, no more than 26,500,000
acres;
``(D) fiscal year 2017, no more than 25,500,000
acres; and
``(E) fiscal year 2018, no more than 25,000,000
acres.
``(2) Grassland.--
``(A) Limitation.--For purposes of applying the
limitations in paragraph (1), no more than 1,500,000
acres of the land described in subsection (b)(3) may be
enrolled in the program at any 1 time during the 2014
through 2018 fiscal years.
``(B) Priority.--In enrolling acres under
subparagraph (A), the Secretary may give priority to
land with expiring conservation reserve program
contracts.
``(C) Method of enrollment.--In enrolling acres
under subparagraph (A), the Secretary shall make the
program available to owners or operators of eligible
land at least once during each fiscal year.''.
(e) Duration of Contract.--Section 1231(e) of the Food Security Act
of 1985 (16 U.S.C. 3831(e)) is amended by striking paragraphs (2) and
(3) and inserting the following:
``(2) Special rule for certain land.--In the case of land
devoted to hardwood trees, shelterbelts, windbreaks, or
wildlife corridors under a contract entered into under this
subchapter, the owner or operator of the land may, within the
limitations prescribed under this section, specify the duration
of the contract.''.
(f) Conservation Priority Areas.--Section 1231(f) of the Food
Security Act of 1985 (16 U.S.C. 3831(f)) is amended--
(1) in paragraph (1), by striking ``watershed areas of the
Chesapeake Bay Region, the Great Lakes Region, the Long Island
Sound Region, and other'';
(2) in paragraph (2), by striking ``watersheds.--
Watersheds'' and inserting ``areas.--Areas''; and
(3) in paragraph (3), by striking ``a watershed's
designation--'' and all that follows through the period at the
end and inserting ``an area's designation if the Secretary
finds that the area no longer contains actual and significant
adverse water quality or habitat impacts related to
agricultural production activities.''.
SEC. 2002. FARMABLE WETLAND PROGRAM.
(a) Extension.--Section 1231B(a)(1) of the Food Security Act of
1985 (16 U.S.C. 3831b(a)(1)) is amended--
(1) by striking ``2012'' and inserting ``2018''; and
(2) by striking ``a program'' and inserting ``a farmable
wetland program''.
(b) Eligible Acreage.--Section 1231B(b)(1)(B) of the Food Security
Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking ``flow
from a row crop agriculture drainage system'' and inserting ``surface
and subsurface flow from row crop agricultural production''.
(c) Clerical Amendments.--Section 1231B of the Food Security Act of
1985 (16 U.S.C. 3831b) is amended--
(1) by striking the heading and inserting the following:
``SEC. 1231B. FARMABLE WETLAND PROGRAM.'';
and
(2) in subsection (f)(2), by striking ``section
1234(c)(2)(B)'' and inserting ``section 1234(c)(2)(A)(ii)''.
SEC. 2003. DUTIES OF OWNERS AND OPERATORS.
(a) Limitation on Harvesting, Grazing or Commercial Use of
Forage.--Section 1232(a)(8) of the Food Security Act of 1985 (16 U.S.C.
3832(a)(8)) is amended by striking ``except that'' and all that follows
through the semicolon at the end of the paragraph and inserting
``except as provided in section 1233(b);''.
(b) Conservation Plan Requirements.--Section 1232 of the Food
Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection
(b) and inserting the following:
``(b) Conservation Plans.--The plan referred to in subsection
(a)(1) shall set forth--
``(1) the conservation measures and practices to be carried
out by the owner or operator during the term of the contract;
and
``(2) the commercial use, if any, to be permitted on the
land during the term.''.
(c) Rental Payment Reduction.--Section 1232 of the Food Security
Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (d).
SEC. 2004. DUTIES OF THE SECRETARY.
Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is
amended to read as follows:
``SEC. 1233. DUTIES OF THE SECRETARY.
``(a) Cost-Share and Rental Payments.--In return for a contract
entered into by an owner or operator, the Secretary shall--
``(1) share the cost of carrying out the conservation
measures and practices set forth in the contract for which the
Secretary determines that cost sharing is appropriate and in
the public interest; and
``(2) for a period of years not in excess of the term of
the contract, pay an annual rental payment in an amount
necessary to compensate for--
``(A) the conversion of highly erodible cropland or
other eligible land normally devoted to the production
of an agricultural commodity on a farm or ranch to a
less intensive use;
``(B) the retirement of any cropland base and
allotment history that the owner or operator agrees to
retire permanently; and
``(C) the development and management of grassland
for multiple natural resource conservation benefits,
including soil, water, air, and wildlife.
``(b) Specified Activities Permitted.--The Secretary shall permit
certain activities or commercial uses of land that is subject to the
contract if those activities or uses are consistent with a plan
approved by the Secretary and include--
``(1) harvesting, grazing, or other commercial use of the
forage in response to drought, flooding, or other emergency
without any reduction in the rental rate;
``(2) grazing by livestock of a beginning farmer or rancher
without any reduction in the rental rate, if the grazing is--
``(A) consistent with the conservation of soil,
water quality, and wildlife habitat (including habitat
during the primary nesting season for critical birds in
the area); and
``(B) described in subparagraph (B) or (C) of
paragraph (3);
``(3) consistent with the conservation of soil, water
quality, and wildlife habitat (including habitat during the
primary nesting season for critical birds in the area) and in
exchange for a reduction of not less than 25 percent in the
annual rental rate for the acres covered by the authorized
activity--
``(A) managed harvesting and other commercial use
(including the managed harvesting of biomass), except
that in permitting those activities the Secretary, in
coordination with the State technical committee--
``(i) shall develop appropriate vegetation
management requirements; and
``(ii) shall identify periods during which
the activities may be conducted, such that the
frequency is at least once every 5 years but
not more than once every 3 years;
``(B) prescribed grazing for the control of
invasive species, which may be conducted annually;
``(C) routine grazing, except that in permitting
routine grazing, the Secretary, in coordination with
the State technical committee--
``(i) shall develop appropriate vegetation
management requirements and stocking rates for
the land that are suitable for continued
routine grazing; and
``(ii) shall identify the periods during
which routine grazing may be conducted, such
that the frequency is not more than once every
2 years, taking into consideration regional
differences such as--
``(I) climate, soil type, and
natural resources;
``(II) the number of years that
should be required between routine
grazing activities; and
``(III) how often during a year in
which routine grazing is permitted that
routine grazing should be allowed to
occur; and
``(D) the installation of wind turbines and
associated access, except that in permitting the
installation of wind turbines, the Secretary shall
determine the number and location of wind turbines that
may be installed, taking into account--
``(i) the location, size, and other
physical characteristics of the land;
``(ii) the extent to which the land
contains threatened or endangered wildlife and
wildlife habitat; and
``(iii) the purposes of the conservation
reserve program under this subchapter; and
``(4) the intermittent and seasonal use of vegetative
buffer practices incidental to agricultural production on land
adjacent to the buffer such that the permitted use does not
destroy the permanent vegetative cover.
``(c) Authorized Activities on Grassland.--Notwithstanding section
1232(a)(8), for eligible land described in section 1231(b)(3), the
Secretary shall permit the following activities:
``(1) Common grazing practices, including maintenance and
necessary cultural practices, on the land in a manner that is
consistent with maintaining the viability of grassland, forb,
and shrub species appropriate to that locality.
``(2) Haying, mowing, or harvesting for seed production,
subject to appropriate restrictions during the primary nesting
season for critical birds in the area.
``(3) Fire presuppression, rehabilitation, and construction
of fire breaks.
``(4) Grazing-related activities, such as fencing and
livestock watering.
``(d) Resource Conserving Use.--
``(1) In general.--Beginning on the date that is 1 year
before the date of termination of a contract under the program,
the Secretary shall allow an owner or operator to make
conservation and land improvements that facilitate maintaining
protection of highly erodible land after expiration of the
contract.
``(2) Conservation plan.--The Secretary shall require an
owner or operator carrying out the activities described in
paragraph (1) to develop and implement a conservation plan.
``(3) Reenrollment prohibited.--Land altered under
paragraph (1) may not be reenrolled in the conservation reserve
program for 5 years.
``(4) Payment.--The Secretary shall provide an annual
payment that is reduced in an amount commensurate with any
income or other compensation received as a result of the
activities carried out under paragraph (1).''.
SEC. 2005. PAYMENTS.
(a) Trees, Windbreaks, Shelterbelts, and Wildlife Corridors.--
Section 1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C.
3834(b)(3)(A)) is amended--
(1) in clause (i), by inserting ``and'' after the
semicolon;
(2) by striking clause (ii); and
(3) by redesignating clause (iii) as clause (ii).
(b) Incentives.--Section 1234(b)(3)(B) of the Food Security Act of
1985 (16 U.S.C. 3834(b)(3)(B)) is amended--
(1) in clause (i), by inserting ``, practices to improve
the condition of resources on the land,'' after ``operator)'';
and
(2) by adding at the end the following:
``(iii) Incentives.--In making rental
payments to an owner or operator of land
described in subparagraph (A), the Secretary
may provide incentive payments sufficient to
encourage proper thinning and practices to
improve the condition of resources on the
land.''.
(c) Annual Rental Payments.--Section 1234(c) of the Food Security
Act of 1985 (16 U.S.C. 3834(c)) is amended--
(1) in paragraph (1), by inserting ``and other eligible
land'' after ``highly erodible cropland'' both places it
appears;
(2) by striking paragraph (2) and inserting the following:
``(2) Methods of determination.--
``(A) In general.--The amounts payable to owners or
operators in the form of rental payments under
contracts entered into under this subchapter may be
determined through--
``(i) the submission of bids for such
contracts by owners and operators in such
manner as the Secretary may prescribe; or
``(ii) such other means as the Secretary
determines are appropriate.
``(B) Grassland.--In the case of eligible land
described in section 1231(b)(3), the Secretary shall
make annual payments in an amount that is not more than
75 percent of the grazing value of the land covered by
the contract.''; and
(3) in paragraph (5)(A)--
(A) by striking ``The Secretary'' and inserting the
following:
``(i) Survey.--The Secretary''; and
(B) by adding at the end the following:
``(ii) Use.--The Secretary may use the
survey of dryland cash rental rates described
in clause (i) as a factor in determining rental
rates under this section as the Secretary
determines appropriate.''.
(d) Payment Schedule.--Section 1234 of the Food Security Act of
1985 (16 U.S.C. 3834) is amended by striking subsection (d) and
inserting the following:
``(d) Payment Schedule.--
``(1) In general.--Except as otherwise provided in this
section, payments under this subchapter shall be made in cash
in such amount and on such time schedule as is agreed on and
specified in the contract.
``(2) Source.--Payments under this subchapter shall be made
using the funds of the Commodity Credit Corporation.
``(3) Advance payment.--Payments under this subchapter may
be made in advance of determination of performance.''.
(e) Payment Limitation.--Section 1234(f) of the Food Security Act
of 1985 (16 U.S.C. 3834(f)) is amended--
(1) in paragraph (1), by striking ``, including rental
payments made in the form of in-kind commodities,'';
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (2).
SEC. 2006. CONTRACT REQUIREMENTS.
Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is
amended--
(1) in subsection (f)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``Duties'' and all that
follows through ``a beginning farmer or rancher
or'' and inserting ``Transition to covered
farmer or rancher.--In the case of a contract
modification approved in order to facilitate
the transfer of land subject to a contract from
a retired farmer or rancher to a beginning
farmer or rancher, a veteran farmer or rancher
(as defined in section 2501(e) of the Food,
Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 2279(e))), or a'';
(ii) in subparagraph (D), by striking ``the
farmer or rancher'' and inserting ``the covered
farmer or rancher''; and
(iii) in subparagraph (E), by striking
``section 1001A(b)(3)(B)'' and inserting
``section 1001''; and
(B) in paragraph (2), by striking ``requirement of
section 1231(h)(4)(B)'' and inserting ``option provided
under section 1234(c)(2)(A)(ii)''; and
(2) by adding at the end the following:
``(g) Final Year of Contract.--The Secretary shall not consider an
owner or operator to be in violation of a term or condition of a
conservation reserve contract if--
``(1) during the year prior to expiration of the contract,
the land is enrolled in the conservation stewardship program;
and
``(2) the activity required under the conservation
stewardship program pursuant to the enrollment is consistent
with this subchapter.
``(h) Land Enrolled in Agricultural Conservation Easement
Program.--The Secretary may terminate or modify a contract entered into
under this subchapter if eligible land that is subject to such contract
is transferred into the agricultural conservation easement program
under subtitle H.''.
SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER CONSERVING
USES.
Section 1235A of the Food Security Act of 1985 (16 U.S.C. 3835a) is
repealed.
SEC. 2008. EFFECTIVE DATE.
(a) In General.--The amendments made by this subtitle shall take
effect on October 1, 2013, except, the amendment made by section
2001(d), which shall take effect on the date of enactment of this Act.
(b) Effect on Existing Contracts.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this subtitle shall not affect the validity
or terms of any contract entered into by the Secretary of
Agriculture under subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) before October 1, 2013, or any payments required to be
made in connection with the contract.
(2) Updating of existing contracts.--The Secretary shall
permit an owner or operator with a contract entered into under
subchapter B of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before
October 1, 2013, to update the contract to reflect the
activities and uses of land under contract permitted under the
terms and conditions of paragraphs (1) and (2) of section
1233(b) of that Act (as amended by section 2004).
Subtitle B--Conservation Stewardship Program
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM.
(a) Revision of Current Program.--Subchapter B of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3838d et seq.) is amended to read as follows:
``Subchapter B--Conservation Stewardship Program
``SEC. 1238D. DEFINITIONS.
``In this subchapter:
``(1) Agricultural operation.--The term `agricultural
operation' means all eligible land, whether or not contiguous,
that is--
``(A) under the effective control of a producer at
the time the producer enters into a contract under the
program; and
``(B) operated with equipment, labor, management,
and production or cultivation practices that are
substantially separate from other agricultural
operations, as determined by the Secretary.
``(2) Conservation activities.--
``(A) In general.--The term `conservation
activities' means conservation systems, practices, or
management measures.
``(B) Inclusions.--The term `conservation
activities' includes--
``(i) structural measures, vegetative
measures, and land management measures,
including agriculture drainage management
systems, as determined by the Secretary; and
``(ii) planning needed to address a
priority resource concern.
``(3) Conservation stewardship plan.--The term
`conservation stewardship plan' means a plan that--
``(A) identifies and inventories priority resource
concerns;
``(B) establishes benchmark data and conservation
objectives;
``(C) describes conservation activities to be
implemented, managed, or improved; and
``(D) includes a schedule and evaluation plan for
the planning, installation, and management of the new
and existing conservation activities.
``(4) Eligible land.--
``(A) In general.--The term `eligible land' means--
``(i) private and tribal land on which
agricultural commodities, livestock, or forest-
related products are produced; and
``(ii) land associated with the land
described in clause (i) on which priority
resource concerns could be addressed through a
contract under the program.
``(B) Inclusions.--The term `eligible land'
includes--
``(i) cropland;
``(ii) grassland;
``(iii) rangeland;
``(iv) pastureland;
``(v) nonindustrial private forest land;
and
``(vi) other agricultural land (including
cropped woodland, marshes, and agricultural
land used for the production of livestock), as
determined by the Secretary.
``(5) Priority resource concern.--The term `priority
resource concern' means a natural resource concern or problem,
as determined by the Secretary, that--
``(A) is identified at the national, State or local
level, as a priority for a particular area of the
State;
``(B) represents a significant concern in a State
or region; and
``(C) is likely to be addressed successfully
through the implementation of conservation activities
under this program.
``(6) Program.--The term `program' means the conservation
stewardship program established by this subchapter.
``(7) Stewardship threshold.--The term `stewardship
threshold' means the level of management required, as
determined by the Secretary, to conserve and improve the
quality and condition of a natural resource.
``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.
``(a) Establishment and Purpose.--During each of fiscal years 2014
through 2018, the Secretary shall carry out a conservation stewardship
program to encourage producers to address priority resource concerns
and improve and conserve the quality and condition of natural resources
in a comprehensive manner--
``(1) by undertaking additional conservation activities;
and
``(2) by improving, maintaining, and managing existing
conservation activities.
``(b) Exclusions.--
``(1) Land enrolled in other conservation programs.--
Subject to paragraph (2), the following land (even if covered
by the definition of eligible land) is not eligible for
enrollment in the program:
``(A) Land enrolled in the conservation reserve
program, unless--
``(i) the conservation reserve contract
will expire at the end of the fiscal year in
which the land is to be enrolled in the
program; and
``(ii) conservation reserve program
payments for land enrolled in the program cease
prior to the date on which the first program
payment is made to the applicant under this
subchapter.
``(B) Land enrolled in the agricultural
conservation easement program in a wetland reserve
easement.
``(C) Land enrolled in the conservation security
program.
``(2) Conversion to cropland.--Eligible land used for crop
production after October 1, 2013, that had not been planted,
considered to be planted, or devoted to crop production for at
least 4 of the 6 years preceding that date shall not be the
basis for any payment under the program, unless the land does
not meet the requirement because--
``(A) the land had previously been enrolled in the
conservation reserve program;
``(B) the land has been maintained using long-term
crop rotation practices, as determined by the
Secretary; or
``(C) the land is incidental land needed for
efficient operation of the farm or ranch, as determined
by the Secretary.
``SEC. 1238F. STEWARDSHIP CONTRACTS.
``(a) Submission of Contract Offers.--To be eligible to participate
in the conservation stewardship program, a producer shall submit a
contract offer for the agricultural operation that--
``(1) demonstrates to the satisfaction of the Secretary
that the producer, at the time of the contract offer, is
meeting the stewardship threshold for at least 2 priority
resource concerns; and
``(2) would, at a minimum, meet or exceed the stewardship
threshold for at least 1 additional priority resource concern
by the end of the stewardship contract by--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing existing
conservation activities on the agricultural operation
in a manner that increases or extends the conservation
benefits in place at the time the contract offer is
accepted by the Secretary.
``(b) Evaluation of Contract Offers.--
``(1) Ranking of applications.--In evaluating contract
offers the Secretary shall rank applications based on--
``(A) the level of conservation treatment on all
applicable priority resource concerns at the time of
application;
``(B) the degree to which the proposed conservation
activities effectively increase conservation
performance;
``(C) the number of applicable priority resource
concerns proposed to be treated to meet or exceed the
stewardship threshold by the end of the contract;
``(D) the extent to which other priority resource
concerns will be addressed to meet or exceed the
stewardship threshold by the end of the contract
period;
``(E) the extent to which the actual and
anticipated conservation benefits from the contract are
provided at the least cost relative to other similarly
beneficial contract offers; and
``(F) the extent to which priority resource
concerns will be addressed when transitioning from the
conservation reserve program to agricultural
production.
``(2) Prohibition.--The Secretary may not assign a higher
priority to any application because the applicant is willing to
accept a lower payment than the applicant would otherwise be
eligible to receive.
``(3) Additional criteria.--The Secretary may develop and
use such additional criteria that the Secretary determines are
necessary to ensure that national, State, and local priority
resource concerns are effectively addressed.
``(c) Entering Into Contracts.--After a determination that a
producer is eligible for the program under subsection (a), and a
determination that the contract offer ranks sufficiently high under the
evaluation criteria under subsection (b), the Secretary shall enter
into a conservation stewardship contract with the producer to enroll
the eligible land to be covered by the contract.
``(d) Contract Provisions.--
``(1) Term.--A conservation stewardship contract shall be
for a term of 5 years.
``(2) Required provisions.--The conservation stewardship
contract of a producer shall--
``(A) state the amount of the payment the Secretary
agrees to make to the producer for each year of the
conservation stewardship contract under section
1238G(d);
``(B) require the producer--
``(i) to implement a conservation
stewardship plan that describes the program
purposes to be achieved through 1 or more
conservation activities;
``(ii) to maintain and supply information
as required by the Secretary to determine
compliance with the conservation stewardship
plan and any other requirements of the program;
and
``(iii) not to conduct any activities on
the agricultural operation that would tend to
defeat the purposes of the program;
``(C) permit all economic uses of the eligible land
that--
``(i) maintain the agricultural nature of
the land; and
``(ii) are consistent with the conservation
purposes of the conservation stewardship
contract;
``(D) include a provision to ensure that a producer
shall not be considered in violation of the contract
for failure to comply with the contract due to
circumstances beyond the control of the producer,
including a disaster or related condition, as
determined by the Secretary;
``(E) include provisions where upon the violation
of a term or condition of the contract at any time the
producer has control of the land--
``(i) if the Secretary determines that the
violation warrants termination of the
contract--
``(I) to forfeit all rights to
receive payments under the contract;
and
``(II) to refund all or a portion
of the payments received by the
producer under the contract, including
any interest on the payments, as
determined by the Secretary; or
``(ii) if the Secretary determines that the
violation does not warrant termination of the
contract, to refund or accept adjustments to
the payments provided to the producer, as the
Secretary determines to be appropriate;
``(F) include provisions in accordance with
paragraphs (3) and (4) of this section; and
``(G) include any additional provisions the
Secretary determines are necessary to carry out the
program.
``(3) Change of interest in land subject to a contract.--
``(A) In general.--At the time of application, a
producer shall have control of the eligible land to be
enrolled in the program. Except as provided in
subparagraph (B), a change in the interest of a
producer in eligible land covered by a contract under
the program shall result in the termination of the
contract with regard to that land.
``(B) Transfer of duties and rights.--Subparagraph
(A) shall not apply if--
``(i) within a reasonable period of time
(as determined by the Secretary) after the date
of the change in the interest in all or a
portion of the land covered by a contract under
the program, the transferee of the land
provides written notice to the Secretary that
duties and rights under the contract have been
transferred to, and assumed by, the transferee
for the portion of the land transferred;
``(ii) the transferee meets the eligibility
requirements of the program; and
``(iii) the Secretary approves the transfer
of all duties and rights under the contract.
``(4) Modification and termination of contracts.--
``(A) Voluntary modification or termination.--The
Secretary may modify or terminate a contract with a
producer if--
``(i) the producer agrees to the
modification or termination; and
``(ii) the Secretary determines that the
modification or termination is in the public
interest.
``(B) Involuntary termination.--The Secretary may
terminate a contract if the Secretary determines that
the producer violated the contract.
``(5) Repayment.--If a contract is terminated, the
Secretary may, consistent with the purposes of the program--
``(A) allow the producer to retain payments already
received under the contract; or
``(B) require repayment, in whole or in part, of
payments received and assess liquidated damages.
``(e) Contract Renewal.--At the end of the initial 5-year contract
period, the Secretary may allow the producer to renew the contract for
1 additional 5-year period if the producer--
``(1) demonstrates compliance with the terms of the
existing contract;
``(2) agrees to adopt and continue to integrate
conservation activities across the entire agricultural
operation as determined by the Secretary; and
``(3) agrees, at a minimum, to meet or exceed the
stewardship threshold for at least 2 additional priority
resource concerns on the agricultural operation by the end of
the contract period.
``SEC. 1238G. DUTIES OF THE SECRETARY.
``(a) In General.--To achieve the conservation goals of a contract
under the conservation stewardship program, the Secretary shall--
``(1) make the program available to eligible producers on a
continuous enrollment basis with 1 or more ranking periods, 1
of which shall occur in the first quarter of each fiscal year;
``(2) identify not less than 5 priority resource concerns
in a particular watershed or other appropriate region or area
within a State; and
``(3) establish a science-based stewardship threshold for
each priority resource concern identified under paragraph (2).
``(b) Allocation to States.--The Secretary shall allocate acres to
States for enrollment, based--
``(1) primarily on each State's proportion of eligible land
to the total acreage of eligible land in all States; and
``(2) also on consideration of--
``(A) the extent and magnitude of the conservation
needs associated with agricultural production in each
State;
``(B) the degree to which implementation of the
program in the State is, or will be, effective in
helping producers address those needs; and
``(C) other considerations to achieve equitable
geographic distribution of funds, as determined by the
Secretary.
``(c) Acreage Enrollment Limitation.--During the period beginning
on October 1, 2013, and ending on September 30, 2022, the Secretary
shall, to the maximum extent practicable--
``(1) enroll in the program an additional 10,348,000 acres
for each fiscal year; and
``(2) manage the program to achieve a national average rate
of $18 per acre, which shall include the costs of all financial
assistance, technical assistance, and any other expenses
associated with enrollment or participation in the program.
``(d) Conservation Stewardship Payments.--
``(1) Availability of payments.--The Secretary shall
provide annual payments under the program to compensate the
producer for--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing
conservation activities in place at the operation of
the producer at the time the contract offer is accepted
by the Secretary.
``(2) Payment amount.--The amount of the conservation
stewardship annual payment shall be determined by the Secretary
and based, to the maximum extent practicable, on the following
factors:
``(A) Costs incurred by the producer associated
with planning, design, materials, installation, labor,
management, maintenance, or training.
``(B) Income forgone by the producer.
``(C) Expected conservation benefits.
``(D) The extent to which priority resource
concerns will be addressed through the installation and
adoption of conservation activities on the agricultural
operation.
``(E) The level of stewardship in place at the time
of application and maintained over the term of the
contract.
``(F) The degree to which the conservation
activities will be integrated across the entire
agricultural operation for all applicable priority
resource concerns over the term of the contract.
``(G) Such other factors as determined by the
Secretary.
``(3) Exclusions.--A payment to a producer under this
subsection shall not be provided for--
``(A) the design, construction, or maintenance of
animal waste storage or treatment facilities or
associated waste transport or transfer devices for
animal feeding operations; or
``(B) conservation activities for which there is no
cost incurred or income forgone to the producer.
``(4) Delivery of payments.--In making stewardship
payments, the Secretary shall, to the extent practicable--
``(A) prorate conservation performance over the
term of the contract so as to accommodate, to the
extent practicable, producers earning equal annual
stewardship payments in each fiscal year; and
``(B) make stewardship payments as soon as
practicable after October 1 of each fiscal year for
activities carried out in the previous fiscal year.
``(e) Supplemental Payments for Resource-Conserving Crop
Rotations.--
``(1) Availability of payments.--The Secretary shall
provide additional payments to producers that, in participating
in the program, agree to adopt resource-conserving crop
rotations to achieve beneficial crop rotations as appropriate
for the eligible land of the producers.
``(2) Beneficial crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is a
beneficial crop rotation eligible for additional payments under
paragraph (1), based on whether the resource-conserving crop
rotation is designed to provide natural resource conservation
and production benefits.
``(3) Eligibility.--To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt and
maintain the resource-conserving crop rotations for the term of
the contract.
``(4) Resource-conserving crop rotation.--In this
subsection, the term `resource-conserving crop rotation' means
a crop rotation that--
``(A) includes at least 1 resource conserving crop
(as defined by the Secretary);
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces depletion of
soil moisture or otherwise reduces the need for
irrigation.
``(f) Payment Limitations.--A person or legal entity may not
receive, directly or indirectly, payments under the program that, in
the aggregate, exceed $200,000 under all contracts entered into during
fiscal years 2014 through 2018, excluding funding arrangements with
Indian tribes, regardless of the number of contracts entered into under
the program by the person or legal entity.
``(g) Specialty Crop and Organic Producers.--The Secretary shall
ensure that outreach and technical assistance are available, and
program specifications are appropriate to enable specialty crop and
organic producers to participate in the program.
``(h) Coordination With Organic Certification.--The Secretary shall
establish a transparent means by which producers may initiate organic
certification under the Organic Foods Production Act of 1990 (7 U.S.C.
6501 et seq.) while participating in a contract under the program.
``(i) Regulations.--The Secretary shall promulgate regulations
that--
``(1) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and reasonable
application of the limitations established under subsection
(f); and
``(2) otherwise enable the Secretary to carry out the
program.''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
(c) Effect on Existing Contracts.--
(1) In general.--The amendment made by this section shall
not affect the validity or terms of any contract entered into
by the Secretary of Agriculture under subchapter B of chapter 2
of subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838d et seq.) before October 1, 2013, or any payments
required to be made in connection with the contract.
(2) Conservation stewardship program.--Funds made available
under section 1241(a)(4) of the Food Security Act of 1985 (16
U.S.C. 3841(a)(4)) (as amended by section 2601(a)) may be used
to administer and make payments to program participants
enrolled into contracts during any of fiscal years 2009 through
2013.
Subtitle C--Environmental Quality Incentives Program
SEC. 2201. PURPOSES.
Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is
amended--
(1) in paragraph (3)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) by redesignating subparagraph (B) as
subparagraph (C) and, in such subparagraph, by
inserting ``and'' after the semicolon; and
(C) by inserting after subparagraph (A) the
following:
``(B) develop and improve wildlife habitat; and'';
(2) in paragraph (4), by striking ``; and'' and inserting a
period; and
(3) by striking paragraph (5).
SEC. 2202. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1)
is amended--
(1) by striking paragraph (2) and redesignating paragraphs
(3) through (6) as paragraphs (2) through (5), respectively;
and
(2) in paragraph (2) (as so redesignated), by inserting
``established under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.)'' after ``national organic program''.
SEC. 2203. ESTABLISHMENT AND ADMINISTRATION.
Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2)
is amended--
(1) in subsection (a), by striking ``2014'' and inserting
``2018'';
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Term.--A contract under the program shall have a term
that does not exceed 10 years.'';
(3) in subsection (d)--
(A) in paragraph (3), by striking subparagraphs (A)
through (G) and inserting the following:
``(A) soil health;
``(B) water quality and quantity improvement;
``(C) nutrient management;
``(D) pest management;
``(E) air quality improvement;
``(F) wildlife habitat development, including
pollinator habitat;
``(G) invasive species management; or
``(H) other resource issues of regional or national
significance, as determined by the Secretary.''; and
(B) in paragraph (4)--
(i) in subparagraph (A) in the matter
preceding clause (i), by inserting ``, veteran
farmer or rancher (as defined in section
2501(e) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(e))),''
before ``or a beginning farmer or rancher'';
and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Advance payments.--
``(i) In general.--Not more than 30 percent
of the amount determined under subparagraph (A)
may be provided in advance for the purpose of
purchasing materials or contracting.
``(ii) Return of funds.--If funds provided
in advance are not expended during the 90-day
period beginning on the date of receipt of the
funds, the funds shall be returned within a
reasonable time frame, as determined by the
Secretary.'';
(4) by striking subsection (f) and inserting the following:
``(f) Allocation of Funding.--
``(1) Livestock.--For each of fiscal years 2014 through
2018, at least 60 percent of the funds made available for
payments under the program shall be targeted at practices
relating to livestock production.
``(2) Wildlife habitat.--For each of fiscal years 2014
through 2018, at least 5 percent of the funds made available
for payments under the program shall be targeted at practices
benefitting wildlife habitat under subsection (g).''; and
(5) by striking subsection (g) and inserting the following:
``(g) Wildlife Habitat Incentive Program.--
``(1) In general.--The Secretary shall provide payments
under the environmental quality incentives program for
conservation practices that support the restoration,
development, and improvement of wildlife habitat on eligible
land, including--
``(A) upland wildlife habitat;
``(B) wetland wildlife habitat;
``(C) habitat for threatened and endangered
species;
``(D) fish habitat;
``(E) habitat on pivot corners and other irregular
areas of a field; and
``(F) other types of wildlife habitat, as
determined by the Secretary.
``(2) State technical committee.--In determining the
practices eligible for payment under paragraph (1) and targeted
for funding under subsection (f), the Secretary shall, at a
minimum, consult with the relevant State technical committee
once a year.
``(3) Waiver.--Notwithstanding any other provision of this
chapter, the Secretary may make payments to a State or local
unit of government to enroll land that is riparian to, or
submerged under, a water body or wetland if the Secretary
determines that the inclusion of the land would support the
restoration, development, and improvement of wildlife
habitat.''.
SEC. 2204. EVALUATION OF APPLICATIONS.
Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C.
3839aa-3(b)) is amended--
(1) in paragraph (1), by striking ``environmental'' and
inserting ``conservation''; and
(2) in paragraph (3), by striking ``purpose of the
environmental quality incentives program specified in section
1240(1)'' and inserting ``purposes of the program''.
SEC. 2205. DUTIES OF PRODUCERS.
Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C.
3839aa-4(2)) is amended by striking ``farm, ranch, or forest'' and
inserting ``enrolled''.
SEC. 2206. 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) by striking ``by the person or entity during
any six-year period,'' and inserting ``during fiscal
years 2014 through 2018''; and
(B) by striking ``federally recognized'' and all
that follows through the period and inserting ``Indian
tribes under section 1244(l).''; and
(2) in subsection (b)(2), by striking ``any six-year
period'' and inserting ``fiscal years 2014 through 2018''.
SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
is amended--
(1) in subsection (b)(2), by striking ``2012'' and
inserting ``2018''; and
(2) by adding at the end the following:
``(c) Reporting.--Not later than December 31, 2014, and every 2
years thereafter, the Secretary shall submit to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the Committee on
Agriculture of the House of Representatives a report on the status of
projects funded under this section, including--
``(1) funding awarded;
``(2) project results; and
``(3) incorporation of project findings, such as new
technology and innovative approaches, into the conservation
efforts implemented by the Secretary.''.
SEC. 2208. EFFECTIVE DATE.
(a) In General.--The amendments made by this subtitle shall take
effect on October 1, 2013.
(b) Effect on Existing Contracts.--The amendments made by this
title shall not affect the validity or terms of any contract entered
into by the Secretary of Agriculture under chapter 4 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.)
before October 1, 2013, or any payments required to be made in
connection with the contract.
Subtitle D--Agricultural Conservation Easement Program
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PROGRAM.
(a) Establishment.--Title XII of the Food Security Act of 1985 is
amended by adding at the end the following:
``Subtitle H--Agricultural Conservation Easement Program
``SEC. 1265. ESTABLISHMENT AND PURPOSES.
``(a) Establishment.--The Secretary shall establish an Agricultural
Conservation Easement Program for the conservation of eligible land and
natural resources through easements or other interests in land.
``(b) Purposes.--The purposes of the program are to--
``(1) combine the purposes and coordinate the functions of
the wetlands reserve program established under section 1237,
the grassland reserve program established under section 1238N,
and the farmland protection program established under section
1238I;
``(2) restore, protect, and enhance wetland on eligible
land;
``(3) protect the agricultural use, viability, and related
conservation values of eligible land by limiting
nonagricultural uses of that land; and
``(4) protect grazing uses and related conservation values
by restoring and conserving eligible land.
``SEC. 1265A. DEFINITIONS.
``In this subtitle:
``(1) Agricultural land easement.--The term `agricultural
land easement' means an easement or other interest in eligible
land that--
``(A) is conveyed for the purposes of protecting
natural resources and the agricultural nature of the
land, and of promoting agricultural viability for
future generations; and
``(B) permits the landowner the right to continue
agricultural production and related uses subject to an
agricultural land easement plan.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an agency of State or local government or an
Indian tribe (including farmland protection board or
land resource council established under State law); or
``(B) an organization that is--
``(i) organized for, and at all times since
the formation of the organization has been
operated principally for, 1 or more of the
conservation purposes specified in clause (i),
(ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(ii) an organization described in section
501(c)(3) of that Code that is exempt from
taxation under section 501(a) of that Code; or
``(iii) described in--
``(I) paragraph (1) or (2) of
section 509(a) of that Code; or
``(II) section 509(a)(3) of that
Code and is controlled by an
organization described in section
509(a)(2) of that Code.
``(3) Eligible land.--The term `eligible land' means
private or tribal land that is--
``(A) in the case of an agricultural land easement,
agricultural land, including land on a farm or ranch--
``(i) that is subject to a pending offer
for purchase from an eligible entity;
``(ii) that--
``(I) has prime, unique, or other
productive soil;
``(II) contains historical or
archaeological resources; or
``(III) the protection of which
could, consistent with the purposes of
the program--
``(aa) further a State or
local policy; or
``(bb) conserve grassland
or agricultural landscapes of
significant ecological value;
and
``(iii) that is--
``(I) cropland;
``(II) rangeland;
``(III) grassland or land that
contains forbs, or shrubland for which
grazing is the predominant use;
``(IV) pastureland; or
``(V) nonindustrial private forest
land that contributes to the economic
viability of an offered parcel or
serves as a buffer to protect such land
from development;
``(B) in the case of a wetland reserve easement, a
wetland or related area, including--
``(i) farmed or converted wetland, together
with the adjacent land that is functionally
dependent on that land if the Secretary
determines it--
``(I) is likely to be successfully
restored in a cost effective manner;
and
``(II) will maximize the wildlife
benefits and wetland functions and
values as determined by the Secretary
in consultation with the Secretary of
the Interior at the local level;
``(ii) cropland or grassland that was used
for agricultural production prior to flooding
from the natural overflow of a closed basin
lake or pothole, as determined by the
Secretary, together (where practicable) with
the adjacent land that is functionally
dependent on the cropland or grassland;
``(iii) farmed wetland and adjoining land
that--
``(I) is enrolled in the
conservation reserve program;
``(II) has the highest wetland
functions and values; and
``(III) is likely to return to
production after the land leaves the
conservation reserve program;
``(iv) riparian areas that link wetland
that is protected by easements or some other
device that achieves the same purpose as an
easement; or
``(v) other wetland of an owner that would
not otherwise be eligible if the Secretary
determines that the inclusion of such wetland
in such easement would significantly add to the
functional value of the easement; and
``(C) in the case of both an agricultural land
easement or wetland reserve easement, other land that
is incidental to eligible land if the Secretary
determines that it is necessary for the efficient
administration of the easements under this program.
``(4) Program.--The term `program' means the Agricultural
Conservation Easement Program established by this subtitle.
``(5) Wetland reserve easement.--The term `wetland reserve
easement' means a reserved interest in eligible land that--
``(A) is defined and delineated in a deed; and
``(B) stipulates--
``(i) the rights, title, and interests in
land conveyed to the Secretary; and
``(ii) the rights, title, and interests in
land that are reserved to the landowner.
``SEC. 1265B. AGRICULTURAL LAND EASEMENTS.
``(a) Availability of Assistance.--The Secretary shall facilitate
and provide funding for--
``(1) the purchase by eligible entities of agricultural
land easements and other interests in eligible land; and
``(2) technical assistance to provide for the conservation
of natural resources pursuant to an agricultural land easement
plan.
``(b) Cost-Share Assistance.--
``(1) In general.--The Secretary shall provide cost-share
assistance to eligible entities for purchasing agricultural
land easements to protect the agricultural use, including
grazing, and related conservation values of eligible land.
``(2) Scope of assistance available.--
``(A) Federal share.--Subject to subparagraph (C),
an agreement described in paragraph (4) shall provide
for a Federal share determined by the Secretary of an
amount not to exceed 50 percent of the fair market
value of the agricultural land easement or other
interest in land, as determined by the Secretary
using--
``(i) the Uniform Standards of Professional
Appraisal Practices;
``(ii) an area-wide market analysis or
survey; or
``(iii) another industry approved method.
``(B) Non-federal share.--
``(i) In general.--Subject to subparagraph
(C), under the agreement, the eligible entity
shall provide a share that is at least
equivalent to that provided by the Secretary.
``(ii) Source of contribution.--An eligible
entity may include as part of its share a
charitable donation or qualified conservation
contribution (as defined by section 170(h) of
the Internal Revenue Code of 1986) from the
private landowner if the eligible entity
contributes its own cash resources in an amount
that is at least 50 percent of the amount
contributed by the Secretary.
``(C) Waiver authority.--
``(i) Grassland.--In the case of grassland
of special environmental significance, as
determined by the Secretary, the Secretary may
provide up to 75 percent of the fair market
value of the agricultural land easement.
``(ii) Cash contribution.--For purposes of
subparagraph (B)(ii), the Secretary may waive
any portion of the eligible entity cash
contribution requirement for projects of
special significance, subject to an increase in
the private landowner donation that is equal to
the amount of the waiver, if the donation is
voluntary.
``(3) Evaluation and ranking of applications.--
``(A) Criteria.--The Secretary shall establish
evaluation and ranking criteria to maximize the benefit
of Federal investment under the program.
``(B) Considerations.--In establishing the
criteria, the Secretary shall emphasize support for--
``(i) protecting agricultural uses and
related conservation values of the land; and
``(ii) maximizing the protection of areas
devoted to agricultural use.
``(C) Bidding down.--If the Secretary determines
that 2 or more applications for cost-share assistance
are comparable in achieving the purpose of the program,
the Secretary shall not assign a higher priority to any
of those applications solely on the basis of lesser
cost to the program.
``(4) Agreements with eligible entities.--
``(A) In general.--The Secretary shall enter into
agreements with eligible entities to stipulate the
terms and conditions under which the eligible entity is
permitted to use cost-share assistance provided under
this section.
``(B) Length of agreements.--An agreement shall be
for a term that is--
``(i) in the case of an eligible entity
certified under the process described in
paragraph (5), a minimum of 5 years; and
``(ii) for all other eligible entities, at
least 3, but not more than 5 years.
``(C) Minimum terms and conditions.--An eligible
entity shall be authorized to use its own terms and
conditions for agricultural land easements so long as
the Secretary determines such terms and conditions--
``(i) are consistent with the purposes of
the program;
``(ii) are permanent or for the maximum
duration allowed under applicable State law;
``(iii) permit effective enforcement of the
conservation purposes of such easements,
including appropriate restrictions depending on
the purposes for which the easement is
acquired;
``(iv) include a right of enforcement for
the Secretary if terms of the easement are not
enforced by the holder of the easement;
``(v) subject the land in which an interest
is purchased to an agricultural land easement
plan that--
``(I) describes the activities
which promote the long-term viability
of the land to meet the purposes for
which the easement was acquired;
``(II) requires the management of
grassland according to a grassland
management plan; and
``(III) includes a conservation
plan, where appropriate, and requires,
at the option of the Secretary, the
conversion of highly erodible cropland
to less intensive uses; and
``(vi) include a limit on the impervious
surfaces to be allowed that is consistent with
the agricultural activities to be conducted.
``(D) Substitution of qualified projects.--An
agreement shall allow, upon mutual agreement of the
parties, substitution of qualified projects that are
identified at the time of the proposed substitution.
``(E) Effect of violation.--If a violation occurs
of a term or condition of an agreement under this
subsection--
``(i) the agreement may be terminated; and
``(ii) the Secretary may require the
eligible entity to refund all or part of any
payments received by the entity under the
program, with interest on the payments as
determined appropriate by the Secretary.
``(5) Certification of eligible entities.--
``(A) Certification process.--The Secretary shall
establish a process under which the Secretary may--
``(i) directly certify eligible entities
that meet established criteria;
``(ii) enter into long-term agreements with
certified eligible entities; and
``(iii) accept proposals for cost-share
assistance for the purchase of agricultural
land easements throughout the duration of such
agreements.
``(B) Certification criteria.--In order to be
certified, an eligible entity shall demonstrate to the
Secretary that the entity will maintain, at a minimum,
for the duration of the agreement--
``(i) a plan for administering easements
that is consistent with the purposes of the
program described in paragraphs (3) and (4) of
section 1265(b);
``(ii) the capacity and resources to
monitor and enforce agricultural land
easements; and
``(iii) policies and procedures to ensure--
``(I) the long-term integrity of
agricultural land easements on eligible
land;
``(II) timely completion of
acquisitions of easements; and
``(III) timely and complete
evaluation and reporting to the
Secretary on the use of funds provided
under the program.
``(C) Review and revision.--
``(i) Review.--The Secretary shall conduct
a review of eligible entities certified under
subparagraph (A) every 3 years to ensure that
such entities are meeting the criteria
established under subparagraph (B).
``(ii) Revocation.--If the Secretary finds
that the certified entity no longer meets the
criteria established under subparagraph (B),
the Secretary may--
``(I) allow the certified entity a
specified period of time, at a minimum
180 days, in which to take such actions
as may be necessary to meet the
criteria; and
``(II) revoke the certification of
the entity, if after the specified
period of time, the certified entity
does not meet such criteria.
``(c) Technical Assistance.--The Secretary may provide technical
assistance, if requested, to assist in--
``(1) compliance with the terms and conditions of
easements; and
``(2) implementation of an agricultural land easement plan.
``SEC. 1265C. WETLAND RESERVE EASEMENTS.
``(a) Availability of Assistance.--The Secretary shall provide
assistance to owners of eligible land to restore, protect, and enhance
wetland through--
``(1) easements and related wetland reserve easement plans;
and
``(2) technical assistance.
``(b) Easements.--
``(1) Method of enrollment.--The Secretary shall enroll
eligible land through the use of--
``(A) 30-year easements;
``(B) permanent easements;
``(C) easements for the maximum duration allowed
under applicable State laws; or
``(D) as an option for Indian tribes only, 30-year
contracts.
``(2) Limitations.--
``(A) Ineligible land.--The Secretary may not
acquire easements on--
``(i) land established to trees under the
conservation reserve program, except in cases
where the Secretary determines it would further
the purposes of the program; and
``(ii) farmed wetland or converted wetland
where the conversion was not commenced prior to
December 23, 1985.
``(B) Changes in ownership.--No easement shall be
created on land that has changed ownership during the
preceding 12-month period unless--
``(i) the new ownership was acquired by
will or succession as a result of the death of
the previous owner;
``(ii)(I) the ownership change occurred
because of foreclosure on the land; and
``(II) immediately before the foreclosure,
the owner of the land exercises a right of
redemption from the mortgage holder in
accordance with State law; or
``(iii) the Secretary determines that the
land was acquired under circumstances that give
adequate assurances that such land was not
acquired for the purposes of placing it in the
program.
``(3) Evaluation and ranking of offers.--
``(A) Criteria.--The Secretary shall establish
evaluation and ranking criteria to maximize the benefit
of Federal investment under the program.
``(B) Considerations.--When evaluating offers from
landowners, the Secretary may consider--
``(i) the conservation benefits of
obtaining an easement or 30-year contract,
including the potential environmental benefits
if the land was removed from agricultural
production;
``(ii) the cost-effectiveness of each
easement or 30-year contract, so as to maximize
the environmental benefits per dollar expended;
``(iii) whether the landowner or another
person is offering to contribute financially to
the cost of the easement or 30-year contract to
leverage Federal funds; and
``(iv) such other factors as the Secretary
determines are necessary to carry out the
purposes of the program.
``(C) Priority.--The Secretary shall place priority
on acquiring easements based on the value of the
easement for protecting and enhancing habitat for
migratory birds and other wildlife.
``(4) Agreement.--To be eligible to place eligible land
into the program through a wetland reserve easement, the owner
of such land shall enter into an agreement with the Secretary
to--
``(A) grant an easement on such land to the
Secretary;
``(B) authorize the implementation of a wetland
reserve easement plan;
``(C) create and record an appropriate deed
restriction in accordance with applicable State law to
reflect the easement agreed to;
``(D) provide a written statement of consent to
such easement signed by those holding a security
interest in the land;
``(E) comply with the terms and conditions of the
easement and any related agreements; and
``(F) permanently retire any existing cropland base
and allotment history for the land on which the
easement has been obtained.
``(5) Terms and conditions of easement.--
``(A) In general.--A wetland reserve easement shall
include terms and conditions that--
``(i) permit--
``(I) repairs, improvements, and
inspections on the land that are
necessary to maintain existing public
drainage systems; and
``(II) owners to control public
access on the easement areas while
identifying access routes to be used
for restoration activities and
management and easement monitoring;
``(ii) prohibit--
``(I) the alteration of wildlife
habitat and other natural features of
such land, unless specifically
authorized by the Secretary;
``(II) the spraying of such land
with chemicals or the mowing of such
land, except where such spraying or
mowing is authorized by the Secretary
or is necessary--
``(aa) to comply with
Federal or State noxious weed
control laws;
``(bb) to comply with a
Federal or State emergency pest
treatment program; or
``(cc) to meet habitat
needs of specific wildlife
species;
``(III) any activities to be
carried out on the owner's or
successor's land that is immediately
adjacent to, and functionally related
to, the land that is subject to the
easement if such activities will alter,
degrade, or otherwise diminish the
functional value of the eligible land;
and
``(IV) the adoption of any other
practice that would tend to defeat the
purposes of the program, as determined
by the Secretary;
``(iii) provide for the efficient and
effective establishment of wetland functions
and values; and
``(iv) include such additional provisions
as the Secretary determines are desirable to
carry out the program or facilitate the
practical administration thereof.
``(B) Violation.--On the violation of the terms or
conditions of the easement, the easement shall remain
in force and the Secretary may require the owner to
refund all or part of any payments received by the
owner under the program, together with interest thereon
as determined appropriate by the Secretary.
``(C) Compatible uses.--Land subject to a wetland
reserve easement may be used for compatible economic
uses, including such activities as hunting and fishing,
managed timber harvest, or periodic haying or grazing,
if such use is specifically permitted by the wetland
reserve easement plan and is consistent with the long-
term protection and enhancement of the wetland
resources for which the easement was established.
``(D) Reservation of grazing rights.--The Secretary
may include in the terms and conditions of an easement
a provision under which the owner reserves grazing
rights if--
``(i) the Secretary determines that the
reservation and use of the grazing rights--
``(I) is compatible with the land
subject to the easement;
``(II) is consistent with the
historical natural uses of the land and
long-term protection and enhancement
goals for which the easement was
established; and
``(III) complies with the wetland
reserve easement plan; and
``(ii) the agreement provides for a
commensurate reduction in the easement payment
to account for the grazing value, as determined
by the Secretary.
``(E) Application.--The relevant provisions of this
paragraph shall also apply to a 30-year contract.
``(6) Compensation.--
``(A) Determination.--
``(i) In general.--The Secretary shall pay
as compensation for a permanent easement
acquired an amount necessary to encourage
enrollment in the program based on the lowest
of--
``(I) the fair market value of the
land, as determined by the Secretary,
using the Uniform Standards of
Professional Appraisal Practices or an
area-wide market analysis or survey;
``(II) the amount corresponding to
a geographical cap, as determined by
the Secretary in regulations; or
``(III) the offer made by the
landowner.
``(ii) Other.--Compensation for a 30-year
contract or 30-year easement shall be not less
than 50 percent, but not more than 75 percent,
of the compensation that would be paid for a
permanent easement.
``(B) Form of payment.--Compensation shall be
provided by the Secretary in the form of a cash
payment, in an amount determined under subparagraph
(A).
``(C) Payment schedule.--
``(i) Easements valued at less than
$500,000.--For easements valued at $500,000 or
less, the Secretary may provide easement
payments in not more than 10 annual payments.
``(ii) Easements valued at more than
$500,000.--For easements valued at more than
$500,000, the Secretary may provide easement
payments in at least 5, but not more than 10
annual payments, except that, if the Secretary
determines it would further the purposes of the
program, the Secretary may make a lump sum
payment for such an easement.
``(c) Easement Restoration.--
``(1) In general.--The Secretary shall provide financial
assistance to carry out the establishment of conservation
measures and practices and protect wetland functions and
values, including necessary maintenance activities, as set
forth in a wetland reserve easement plan.
``(2) Payments.--The Secretary shall--
``(A) in the case of a permanent easement, pay an
amount that is not less than 75 percent, but not more
than 100 percent, of the eligible costs; and
``(B) in the case of a 30-year contract or 30-year
easement, pay an amount that is not less than 50
percent, but not more than 75 percent, of the eligible
costs.
``(d) Technical Assistance.--
``(1) In general.--The Secretary shall assist owners in
complying with the terms and conditions of easements and 30-
year contracts.
``(2) Contracts or agreements.--The Secretary may enter
into 1 or more contracts with private entities or agreements
with a State, non-governmental organization, or Indian tribe to
carry out necessary restoration, enhancement or maintenance of
an easement if the Secretary determines that the contract or
agreement will advance the purposes of the program.
``(e) Wetland Enhancement Option.--The Secretary may enter into 1
or more agreements with a State (including a political subdivision or
agency of a State), nongovernmental organization, or Indian tribe to
carry out a special wetland enhancement option that the Secretary
determines would advance the purposes of the program.
``(f) Administration.--
``(1) Wetland reserve easement plan.--The Secretary shall
develop a wetland reserve easement plan for eligible land
subject to a wetland reserve easement, which will include the
practices and activities necessary to restore, protect,
enhance, and maintain the enrolled land.
``(2) Delegation of easement administration.--
``(A) In general.--The Secretary may delegate any
of the easement management, monitoring, and enforcement
responsibilities of the Secretary to other Federal or
State agencies that have the appropriate authority,
expertise and resources necessary to carry out such
delegated responsibilities or to other conservation
organizations if the Secretary determines the
organization has similar expertise and resources.
``(B) Limitation.--The Secretary shall not delegate
any of the monitoring or enforcement responsibilities
under the program to conservation organizations.
``(3) Payments.--
``(A) Timing of payments.--The Secretary shall
provide payment for obligations incurred by the
Secretary under this section--
``(i) with respect to any easement
restoration obligation as soon as possible
after the obligation is incurred; and
``(ii) with respect to any annual easement
payment obligation incurred by the Secretary as
soon as possible after October 1 of each
calendar year.
``(B) Payments to others.--If an owner who is
entitled to a payment dies, becomes incompetent, is
otherwise unable to receive such payment, or is
succeeded by another person or entity who renders or
completes the required performance, the Secretary shall
make such payment, in accordance with regulations
prescribed by the Secretary and without regard to any
other provision of law, in such manner as the Secretary
determines is fair and reasonable in light of all of
the circumstances.
``SEC. 1265D. ADMINISTRATION.
``(a) Ineligible Land.--The Secretary may not acquire an easement
under the program on--
``(1) land owned by an agency of the United States, other
than land held in trust for Indian tribes;
``(2) land owned in fee title by a State, including an
agency or a subdivision of a State, or a unit of local
government;
``(3) land subject to an easement or deed restriction
which, as determined by the Secretary, provides similar
protection as would be provided by enrollment in the program;
and
``(4) land where the purposes of the program would be
undermined due to on-site or off-site conditions, such as risk
of hazardous substances, proposed or existing rights of way,
infrastructure development, or adjacent land uses.
``(b) Priority.--In evaluating applications under the program, the
Secretary may give priority to land that is currently enrolled in the
conservation reserve program in a contract that is set to expire within
1 year and--
``(1) in the case of an agricultural land easement, is
grassland that would benefit from protection under a long-term
easement; and
``(2) in the case of a wetland reserve easement, is a
wetland or related area with the highest functions and values
and is likely to return to production after the land leaves the
conservation reserve program.
``(c) Subordination, Exchange, Modification, and Termination.--
``(1) In general.--The Secretary may subordinate, exchange,
terminate, or modify any interest in land, or portion of such
interest, administered by the Secretary, either directly or on
behalf of the Commodity Credit Corporation under the program
when the Secretary determines that--
``(A) it is in the Federal Government's interest to
subordinate, exchange, modify or terminate the interest
in land;
``(B) the subordination, exchange, modification, or
termination action--
``(i) will address a compelling public need
for which there is no practicable alternative,
or
``(ii) such action will further the
practical administration of the program; and
``(C) the subordination, exchange, modification, or
termination action will result in comparable
conservation value and equivalent or greater economic
value to the United States.
``(2) Consultation.--The Secretary shall work with the
current owner, and eligible entity if applicable, to address
any subordination, exchange, termination, or modification of
the interest, or portion of such interest in land.
``(3) Notice.--At least 90 days before taking any
termination action described in paragraph (1), the Secretary
shall provide written notice of such action to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate.
``(d) Land Enrolled in Other Programs.--
``(1) Conservation reserve program.--The Secretary may
terminate or modify an existing contract entered into under
section 1231(a) if eligible land that is subject to such
contract is transferred into the program.
``(2) Other.--Land enrolled in the wetlands reserve
program, grassland reserve program, or farmland protection
program shall be considered enrolled in this program.''.
(b) Compliance With Certain Requirements.--Before an eligible
entity or owner of eligible land may receive assistance under subtitle
H of title XII of the Food Security Act of 1985, the eligible entity or
person shall agree, during the crop year for which the assistance is
provided and in exchange for the assistance--
(1) to comply with applicable conservation requirements
under subtitle B of title XII of that Act (16 U.S.C. 3811 et
seq.); and
(2) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.).
(c) Cross-Reference.--Section 1244 of the Food Security Act of 1985
(16 U.S.C. 3844) is amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``and'' at the end of
subparagraph (A);
(ii) by striking ``and'' at the end of
subparagraph (B); and
(iii) by striking subparagraph (C);
(B) by redesignating paragraph (2) as paragraph
(3); and
(C) by inserting after paragraph (1) the following:
``(2) the Agricultural Conservation Easement Program
established under subtitle H; and''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``programs administered under subchapters B and
C of chapter 1 of subtitle D'' and inserting
``conservation reserve program established
under subchapter B of chapter 1 of subtitle D
and the Agricultural Conservation Easement
Program under subtitle H using wetland reserve
easements under section 1265C''; and
(ii) in subparagraph (B), by striking
``subchapter C of chapter 1 of subtitle D'' and
inserting ``the Agricultural Conservation
Easement Program under subtitle H using wetland
reserve easements under section 1265C''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) Exclusions.--
``(A) Shelterbelts and windbreaks.--The limitations
established under paragraph (1) shall not apply to
cropland that is subject to an easement under
subchapter C of chapter 1 that is used for the
establishment of shelterbelts and windbreaks.
``(B) Wet and saturated soils.--For the purposes of
enrolling land in a wetland reserve easement under
subtitle H, the limitations established under paragraph
(1) shall not apply to cropland designated by the
Secretary with subclass w in the land capability
classes IV through VIII because of severe use
limitations due to soil saturation or inundation.''.
(d) Effective Date.--The amendments made by this section shall take
effect on October 1, 2013.
Subtitle E--Regional Conservation Partnership Program
SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.
(a) In General.--Title XII of the Food Security Act of 1985 is
amended by inserting after subtitle H (as added by section 2301) the
following:
``Subtitle I--Regional Conservation Partnership Program
``SEC. 1271. ESTABLISHMENT AND PURPOSES.
``(a) Establishment.--The Secretary shall establish a Regional
Conservation Partnership Program to implement eligible activities
through--
``(1) partnership agreements with eligible partners; and
``(2) contracts with producers.
``(b) Purposes.--The purposes of the program are--
``(1) to combine the purposes and coordinate the functions
of--
``(A) the agricultural water enhancement program
established under section 1240I;
``(B) the Chesapeake Bay watershed program
established under section 1240Q;
``(C) the cooperative conservation partnership
initiative established under section 1243; and
``(D) the Great Lakes basin program for soil
erosion and sediment control established under section
1240P;
``(2) to further the conservation, restoration, and
sustainable use of soil, water, wildlife, and related natural
resources on a regional or watershed scale; and
``(3) to encourage partners to cooperate with producers
in--
``(A) meeting or avoiding the need for national,
State, and local natural resource regulatory
requirements related to production; and
``(B) implementing projects that will result in the
installation and maintenance of eligible activities
that affect multiple agricultural or nonindustrial
private forest operations on a local, regional, State,
or multi-State basis.
``SEC. 1271A. DEFINITIONS.
``In this subtitle:
``(1) Covered programs.--The term `covered programs'
means--
``(A) the agricultural conservation easement
program;
``(B) the environmental quality incentives program;
``(C) the conservation stewardship program; and
``(D) the healthy forests reserve program
established under section 501 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6571).
``(2) Eligible activity.--The term `eligible activity'
means any of the following conservation activities when
delivered through a covered program:
``(A) Water quality restoration or enhancement
projects, including nutrient management and sediment
reduction.
``(B) Water quantity conservation, restoration, or
enhancement projects relating to surface water and
groundwater resources, including--
``(i) the conversion of irrigated cropland
to the production of less water-intensive
agricultural commodities or dryland farming;
and
``(ii) irrigation system improvement and
irrigation efficiency enhancement.
``(C) Drought mitigation.
``(D) Flood prevention.
``(E) Water retention.
``(F) Habitat conservation, restoration, and
enhancement.
``(G) Erosion control.
``(H) Forest restoration, including recovery of
threatened and endangered species, improvement of
biodiversity, and enhancement of carbon sequestration.
``(I) Other related activities that the Secretary
determines will help achieve conservation benefits.
``(3) Eligible partner.--The term `eligible partner' means
any of the following:
``(A) An agricultural or silvicultural producer
association or other group of producers.
``(B) A State or unit of local government.
``(C) An Indian tribe.
``(D) A farmer cooperative.
``(E) An institution of higher education.
``(F) A municipal water or wastewater treatment
entity.
``(G) An organization or other nongovernmental
entity with an established history of working
cooperatively with producers on agricultural land, as
determined by the Secretary, to address--
``(i) local conservation priorities related
to agricultural production, wildlife habitat
development, and nonindustrial private forest
land management; or
``(ii) critical watershed-scale soil
erosion, water quality, sediment reduction, or
other natural resource concerns.
``(4) Partnership agreement.--The term `partnership
agreement' means an agreement between the Secretary and an
eligible partner.
``(5) Program.--The term `program' means the Regional
Conservation Partnership Program established by this subtitle.
``SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS.
``(a) Partnership Agreements Authorized.--The Secretary may enter
into a partnership agreement with an eligible partner to implement a
project that will assist producers with installing and maintaining an
eligible activity.
``(b) Length.--A partnership agreement shall be for a period not to
exceed 5 years, except that the Secretary may extend the agreement 1
time for up to 12 months when an extension is necessary to meet the
objectives of the program.
``(c) Duties of Partners.--
``(1) In general.--Under a partnership agreement, the
eligible partner shall--
``(A) define the scope of a project, including--
``(i) the eligible activities to be
implemented;
``(ii) the potential agricultural or
nonindustrial private forest operations
affected;
``(iii) the local, State, multi-State or
other geographic area covered; and
``(iv) the planning, outreach,
implementation and assessment to be conducted;
``(B) conduct outreach and education to producers
for potential participation in the project;
``(C) at the request of a producer, act on behalf
of a producer participating in the project in applying
for assistance under section 1271C;
``(D) leverage financial or technical assistance
provided by the Secretary with additional funds to help
achieve the project objectives;
``(E) conduct an assessment of the project's
effects; and
``(F) at the conclusion of the project, report to
the Secretary on its results and funds leveraged.
``(2) Contribution.--A partner shall provide a significant
portion of the overall costs of the scope of the project as
determined by the Secretary.
``(d) Applications.--
``(1) Competitive process.--The Secretary shall conduct a
competitive process to select applications for partnership
agreements and may assess and rank applications with similar
conservation purposes as a group.
``(2) Criteria used.--In carrying out the process described
in paragraph (1), the Secretary shall make public the criteria
used in evaluating applications.
``(3) Content.--An application to the Secretary shall
include a description of--
``(A) the scope of the project as described in
subsection (c)(1)(A);
``(B) the plan for monitoring, evaluating, and
reporting on progress made towards achieving the
project's objectives;
``(C) the program resources requested for the
project, including the covered programs to be used and
estimated funding needed from the Secretary;
``(D) the partners collaborating to achieve project
objectives, including their roles, responsibilities,
capabilities, and financial contribution; and
``(E) any other elements the Secretary considers
necessary to adequately evaluate and competitively
select applications for funding under the program.
``(4) Application selection.--
``(A) Priority to certain applications.--The
Secretary shall give a higher priority to applications
that--
``(i) assist producers in meeting or
avoiding the need for a natural resource
regulatory requirement;
``(ii) significantly leverage non-Federal
financial and technical resources and
coordinate with other local, State, regional,
or national efforts;
``(iii) deliver high percentages of applied
conservation to address conservation priorities
or local, State, regional, or national
conservation initiatives;
``(iv) provide innovation in conservation
methods and delivery, including outcome-based
performance measures and methods; or
``(v) provide innovation in the improvement
and delivery of water quality or quantity,
including outcome-based performance measures
and methods.
``(B) Other applications.--The Secretary may give
priority to applications that--
``(i) have a high percentage of producers
in the area to be covered by the agreement; or
``(ii) meet other factors that are
important for achieving the purposes of the
program, as determined by the Secretary.
``SEC. 1271C. ASSISTANCE TO PRODUCERS.
``(a) In General.--The Secretary shall enter into contracts to
provide financial and technical assistance to--
``(1) producers participating in a project with an eligible
partner as described in section 1271B; or
``(2) producers that fit within the scope of a project
described in section 1271B or a critical conservation area
designated pursuant to section 1271F, but who are seeking to
implement an eligible activity independent of a partner.
``(b) Terms and Conditions.--
``(1) Consistency with program rules.--
``(A) In general.--Except as provided in paragraph
(2) and subparagraph (B), the Secretary shall ensure
that the terms and conditions of a contract under this
section are consistent with the applicable rules of the
covered programs to be used as part of the partnership
agreement, as described in the application under
section 1271B(d)(3)(C).
``(B) Adjustments.--
``(i) In general.--The Secretary may adjust
rules of a covered program, including--
``(I) operational guidance and
requirements for a covered program at
the discretion of the Secretary so as
to provide a simplified application and
evaluation process; and
``(II) nonstatutory, regulatory
rules or provisions to better reflect
unique local circumstances and purposes
if the Secretary determines such
adjustments are necessary to achieve
the purposes of the covered program.
``(ii) Limitation.--The Secretary shall not
adjust the application of statutory
requirements for a covered program, including
requirements governing appeals, payment limits,
and conservation compliance.
``(iii) Irrigation.--In States where
irrigation has not been used significantly for
agricultural purposes, as determined by the
Secretary, the Secretary shall not limit
eligibility under section 1271B or this section
on the basis of prior irrigation history.
``(2) Alternative funding arrangements.--
``(A) In general.--Notwithstanding paragraph
(1)(A), for the purposes of providing assistance for
land described in subsection (a) and section 1271F, the
Secretary may enter into alternative funding
arrangements with a multistate water resource agency or
authority if--
``(i) the Secretary determines that the
goals and objectives of the program will be met
by the alternative funding arrangements;
``(ii) the agency or authority certifies
that the limitations established under this
section on agreements with individual producers
will not be exceeded; and
``(iii) all participating producers meet
applicable payment eligibility provisions.
``(B) Conditions.--As a condition on receipt of
funding under subparagraph (A), the multistate water
resource agency or authority shall agree--
``(i) to submit an annual independent audit
to the Secretary that describes the use of
funds under this paragraph;
``(ii) to provide any data necessary for
the Secretary to issue a report on the use of
funds under this paragraph; and
``(iii) not to use any of the funds
provided pursuant to subparagraph (A) for
administration or provide for administrative
costs through contracts with another entity.
``(C) Limitation.--The Secretary may enter into at
least 10 but not more than 20 alternative funding
arrangements under this paragraph.
``(c) Payments.--
``(1) In general.--In accordance with statutory
requirements of the covered programs involved, the Secretary
may make payments to a producer in an amount determined by the
Secretary to be necessary to achieve the purposes of the
program.
``(2) Payments to certain producers.--The Secretary may
provide payments for a period of 5 years--
``(A) to producers participating in a project that
addresses water quantity concerns and in an amount
sufficient to encourage conversion from irrigated to
dryland farming; and
``(B) to producers participating in a project that
addresses water quality concerns and in an amount
sufficient to encourage adoption of conservation
practices and systems that improve nutrient management.
``(3) Waiver authority.--To assist in the implementation of
the program, the Secretary may waive the applicability of the
limitation in section 1001D(b)(2) of this Act for participating
producers if the Secretary determines that the waiver is
necessary to fulfill the objectives of the program.
``SEC. 1271D. FUNDING.
``(a) Availability of Funds.--The Secretary shall use $110,000,000
of the funds of the Commodity Credit Corporation for each of fiscal
years 2014 through 2018 to carry out the program established under this
subtitle.
``(b) Duration of Availability.--Funds made available under
subsection (a) shall remain available until expended.
``(c) Additional Funding and Acres.--
``(1) In general.--In addition to the funds made available
under subsection (a), the Secretary shall reserve 8 percent of
the funds and acres made available for a covered program for
each of fiscal years 2014 through 2018 in order to ensure
additional resources are available to carry out this program.
``(2) Unused funds and acres.--Any funds or acres reserved
under paragraph (1) for a fiscal year from a covered program
that are not obligated under this program by April 1 of that
fiscal year shall be returned for use under the covered
program.
``(d) Allocation of Funding.--Of the funds and acres made available
for the program under subsections (a) and (c), the Secretary shall
allocate--
``(1) 25 percent of the funds and acres to projects based
on a State competitive process administered by the State
conservationist, with the advice of the State technical
committee;
``(2) 40 percent of the funds and acres to projects based
on a national competitive process to be established by the
Secretary; and
``(3) 35 percent of the funds and acres to projects for the
critical conservation areas designated in section 1271F.
``(e) Limitation on Administrative Expenses.--None of the funds
made available under the program may be used to pay for the
administrative expenses of partners.
``SEC. 1271E. ADMINISTRATION.
``(a) Disclosure.--In addition to the criteria used in evaluating
applications as described in section 1271B(d)(2), the Secretary shall
make publicly available information on projects selected through the
competitive process described in section 1271B(d)(1).
``(b) Reporting.--Not later than December 31, 2014, and for every 2
years thereafter, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report on the
status of projects funded under the program, including--
``(1) the number and types of partners and producers
participating in the partnership agreements selected;
``(2) the number of producers receiving assistance;
``(3) total funding committed to projects, including
Federal and non-Federal resources; and
``(4) a description of how the funds under section
1271C(b)(3) are being administered, including--
``(A) any oversight mechanisms that the Secretary
has implemented;
``(B) the process through which the Secretary is
resolving appeals by program participants; and
``(C) the means by which the Secretary is tracking
adherence to any applicable provisions for payment
eligibility.
``SEC. 1271F. CRITICAL CONSERVATION AREAS.
``(a) In General.--When administering the funding described in
section 1271D(d)(3), the Secretary shall select applications for
partnership agreements and producer contracts within designated
critical conservation areas.
``(b) Critical Conservation Area Designations.--
``(1) In general.--The Secretary shall designate up to 6
geographical areas as critical conservation areas based on the
degree to which an area--
``(A) includes multiple States with significant
agricultural production;
``(B) is covered by an existing regional, State,
binational, or multistate agreement or plan that has
established objectives, goals and work plans and is
adopted by a Federal, State, or regional authority;
``(C) has water quality concerns, including
concerns for reducing erosion, promoting sediment
control, and addressing nutrient management activities
affecting large bodies of water of regional, national,
or international significance;
``(D) has water quantity concerns, including--
``(i) concerns for groundwater, surface
water, aquifer, or other water sources; or
``(ii) a need to promote water retention
and flood prevention;
``(E) is vital habitat for migrating wildlife; or
``(F) is subject to regulatory requirements that
could reduce the economic scope of agricultural
operations within the area.
``(2) Expiration.--Critical conservation area designations
under this section shall expire after 5 years, subject to
redesignation, except that the Secretary may withdraw
designation from an area if the Secretary finds the area no
longer meets the conditions described in paragraph (1).
``(c) Administration.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall administer any partnership agreement or
producer contract under this section in a manner that is
consistent with the terms of the program.
``(2) Relationship to existing activity.--The Secretary
shall, to the maximum extent practicable, ensure that eligible
activities carried out in critical conservation areas
designated under this section complement and are consistent
with other Federal and State programs and water quality and
quantity strategies.''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
Subtitle F--Other Conservation Programs
SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND.
Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C.
3839bb(e)) is amended inserting ``and $30,000,000 for each of fiscal
years 2014 through 2018'' before the period at the end.
SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C.
3839bb-2(b)) is amended by inserting ``and $15,000,000 for each of
fiscal years 2014 through 2018'' before the period at the end.
SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
(a) Funding.--Section 1240R(f)(1) of the Food Security Act of 1985
(16 U.S.C. 3839bb-5(f)(1)) is amended--
(1) in the heading, by striking ``Fiscal years 2009 through
2012'' and inserting ``Mandatory funding''; and
(2) by inserting ``and $40,000,000 for the period of fiscal
years 2014 through 2018'' before the period at the end.
(b) Report on Program Effectiveness.--Not later than 2 years after
the date of enactment of this Act, the Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report evaluating the effectiveness of the voluntary public access
and habitat incentive program established by section 1240R of the Food
Security Act of 1985 (16 U.S.C. 3839bb-5), including--
(1) identifying cooperating agencies;
(2) identifying the number of land holdings and total acres
enrolled by State;
(3) evaluating the extent of improved access on eligible
land, improved wildlife habitat, and related economic benefits;
and
(4) any other relevant information and data relating to the
program that would be helpful to such Committees.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
(a) Funding.--Section 1252 of the Food Security Act of 1985 (16
U.S.C. 3851) is amended by striking subsection (c) and inserting the
following:
``(c) Funding.--
``(1) In general.--The Secretary may carry out the ACES
program using funds made available to carry out each program
under this title.
``(2) Exclusion.--Funds made available to carry out the
conservation reserve program may not be used to carry out the
ACES program.''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14(h)(2)(E) of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 2506. EMERGENCY WATERSHED PROTECTION PROGRAM.
Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
is amended--
(1) by striking ``Sec. 402.--The Secretary'' and inserting
the following:
``SEC. 402. EMERGENCY MEASURES.
``(a) In General.--The Secretary''; and
(2) by adding at the end the following:
``(b) Floodplain Easements.--
``(1) Modification and termination.--The Secretary may
modify or terminate a floodplain easement administered by the
Secretary under this section if--
``(A) the current owner agrees to the modification
or termination; and
``(B) the Secretary determines that the
modification or termination--
``(i) will address a compelling public need
for which there is no practicable alternative;
and
``(ii) is in the public interest.
``(2) Consideration.--
``(A) Termination.--As consideration for
termination of an easement and associated agreements
under paragraph (1), the Secretary shall enter into
compensatory arrangements as determined to be
appropriate by the Secretary.
``(B) Modification.--In the case of a modification
under paragraph (1)--
``(i) as a condition of the modification,
the current owner shall enter into a
compensatory arrangement (as determined to be
appropriate by the Secretary) to incur the
costs of modification; and
``(ii) the Secretary shall ensure that--
``(I) the modification will not
adversely affect the floodplain
functions and values for which the
easement was acquired;
``(II) any adverse impacts will be
mitigated by enrollment and restoration
of other land that provides greater
floodplain functions and values at no
additional cost to the Federal
Government; and
``(III) the modification will
result in equal or greater
environmental and economic values to
the United States.''.
SEC. 2507. TERMINAL LAKES ASSISTANCE.
Section 2507 of the Food, Security, and Rural Investment Act of
2002 (43 U.S.C. 2211 note; Public Law 107-171) is amended to read as
follows:
``SEC. 2507. TERMINAL LAKES ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Eligible land.--The term `eligible land' means
privately owned agricultural land (including land in which a
State has a property interest as a result of state water law)--
``(A) that a landowner voluntarily agrees to sell
to a State; and
``(B) which--
``(i)(I) is ineligible for enrollment as a
wetland reserve easement established under the
Agricultural Conservation Easement Program
under subtitle H of the Food Security Act of
1985;
``(II) is flooded to--
``(aa) an average depth of at least
6.5 feet; or
``(bb) a level below which the
State determines the management of the
water level is beyond the control of
the State or landowner; or
``(III) is inaccessible for agricultural
use due to the flooding of adjoining property
(such as islands of agricultural land created
by flooding);
``(ii) is located within a watershed with
water rights available for lease or purchase;
and
``(iii) has been used during at least 5 of
the immediately preceding 30 years--
``(I) to produce crops or hay; or
``(II) as livestock pasture or
grazing.
``(2) Program.--The term `program' means the voluntary land
purchase program established under this section.
``(3) Terminal lake.--The term `terminal lake' means a lake
and its associated riparian and watershed resources that is--
``(A) considered flooded because there is no
natural outlet for water accumulating in the lake or
the associated riparian area such that the watershed
and surrounding land is consistently flooded; or
``(B) considered terminal because it has no natural
outlet and is at risk due to a history of consistent
Federal assistance to address critical resource
conditions, including insufficient water available to
meet the needs of the lake, general uses, and water
rights.
``(b) Assistance.--The Secretary shall--
``(1) provide grants under subsection (c) for the purchase
of eligible land impacted by a terminal lake described in
subsection (a)(3)(A); and
``(2) provide funds to the Secretary of the Interior
pursuant to subsection (e)(2) with assistance in accordance
with subsection (d) for terminal lakes described in subsection
(a)(3)(B).
``(c) Land Purchase Grants.--
``(1) In general.--Using funds provided under subsection
(e)(1), the Secretary shall make available land purchase grants
to States for the purchase of eligible land in accordance with
this subsection.
``(2) Implementation.--
``(A) Amount.--A land purchase grant shall be in an
amount not to exceed the lesser of--
``(i) 50 percent of the total purchase
price per acre of the eligible land; or
``(ii)(I) in the case of eligible land that
was used to produce crops or hay, $400 per
acre; and
``(II) in the case of eligible land that
was pasture or grazing land, $200 per acre.
``(B) Determination of purchase price.--A State
purchasing eligible land with a land purchase grant
shall ensure, to the maximum extent practicable, that
the purchase price of such land reflects the value, if
any, of other encumbrances on the eligible land to be
purchased, including easements and mineral rights.
``(C) Cost-share required.--To be eligible to
receive a land purchase grant, a State shall provide
matching non-Federal funds in an amount equal to 50
percent of the amount described in subparagraph (A),
including additional non-Federal funds.
``(D) Conditions.--To receive a land purchase
grant, a State shall agree--
``(i) to ensure that any eligible land
purchased is--
``(I) conveyed in fee simple to the
State; and
``(II) free from mortgages or other
liens at the time title is transferred;
``(ii) to maintain ownership of the
eligible land in perpetuity;
``(iii) to pay (from funds other than grant
dollars awarded) any costs associated with the
purchase of eligible land under this section,
including surveys and legal fees; and
``(iv) to keep eligible land in a
conserving use, as defined by the Secretary.
``(E) Loss of federal benefits.--Eligible land
purchased with a grant under this section shall lose
eligibility for any benefits under other Federal
programs, including--
``(i) benefits under title XII of the Food
Security Act of 1985 (16 U.S.C. 3801 et seq.);
``(ii) benefits under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.); and
``(iii) covered benefits described in
section 1001D(b) of the Food Security Act of
1985 (7 U.S.C. 1308-3a).
``(F) Prohibition.--Any Federal rights or benefits
associated with eligible land prior to purchase by a
State may not be transferred to any other land or
person in anticipation of or as a result of such
purchase.
``(d) Water Assistance.--
``(1) In general.--The Secretary of the Interior, acting
through the Commissioner of Reclamation, may use the funds
described in subsection (e)(2) to administer and provide
financial assistance to carry out this subsection to provide
water and assistance to a terminal lake described in subsection
(a)(3)(B) through willing sellers or willing participants
only--
``(A) to lease water;
``(B) to purchase land, water appurtenant to the
land, and related interests; and
``(C) to carry out research, support and
conservation activities for associated fish, wildlife,
plant, and habitat resources.
``(2) Exclusions.--The Secretary of the Interior may not
use this subsection to deliver assistance to the Great Salt
Lake in Utah, lakes that are considered dry lakes, or other
lakes that do not meet the purposes of this section, as
determined by the Secretary of the Interior.
``(3) Transitional provision.--
``(A) In general.--Notwithstanding any other
provision of this section, any funds made available
before the date of enactment of the Agriculture Reform,
Food, and Jobs Act of 2013 under a provision of law
described in subparagraph (B) shall remain available
using the provisions of law (including regulations) in
effect on the day before the date of enactment of that
Act.
``(B) Described laws.--The provisions of law
described in this section are--
``(i) section 2507 of the Farm Security and
Rural Investment Act of 2002 (43 U.S.C. 2211
note; Public Law 107-171) (as in effect on the
day before the date of enactment of the
Agriculture Reform, Food, and Jobs Act of
2013);
``(ii) section 207 of the Energy and Water
Development Appropriations Act, 2003 (Public
Law 108-7; 117 Stat. 146);
``(iii) section 208 of the Energy and Water
Development Appropriations Act, 2006 (Public
Law 109-103; 119 Stat. 2268, 123 Stat. 2856);
and
``(iv) section 208 of the Energy and Water
Development and Related Agencies Appropriations
Act, 2010 (Public Law 111-85; 123 Stat. 2858,
123 Stat. 2967, 125 Stat. 867).
``(e) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out subsection (c)
$25,000,000, to remain available until expended.
``(2) Commodity credit corporation.--As soon as practicable
after the date of enactment of the Agriculture Reform, Food,
and Jobs Act of 2013, the Secretary shall transfer to the
Bureau of Reclamation Water and Related Resources Account
$150,000,000 from the funds of the Commodity Credit Corporation
to carry out subsection (d), to remain available until
expended.''.
SEC. 2508. STUDY OF POTENTIAL IMPROVEMENTS TO THE WETLAND MITIGATION
PROCESS.
(a) In General.--Not later than 180 after the date of enactment of
this Act, the Secretary shall carry out a study--
(1) to evaluate the use of wetland mitigation procedures
under this title and the amendments made by this title;
(2) to determine the impact to wildlife habitat of relaxing
the acre-for-acre requirement for wetland mitigation plans that
result in new wetland that possesses a function and value
greater than the wetland that is replaced; and
(3) to provide legislative recommendations for how wetland
mitigation procedures could be improved to better enable
agricultural producers to use wetland mitigation in a manner
that--
(A) benefits wildlife habitat; and
(B) allows producers greater access to the wetland
mitigation process.
(b) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall--
(1) submit to Congress a report that contains--
(A) the findings of the study; and
(B) any legislative recommendations under
subsection (a)(3); and
(2) publish the findings of the study on a public website
and in the Federal Register.
SEC. 2509. SOIL AND WATER RESOURCE CONSERVATION.
(a) Congressional Policy and Declaration of Purpose.--Section 4 of
the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2003)
is amended--
(1) in subsection (b), by inserting ``and tribal'' after
``State'' each place it appears; and
(2) in subsection (c)(2), by inserting ``, tribal,'' after
``State''.
(b) Continuing Appraisal of Soil, Water, and Related Resources.--
Section 5 of the Soil and Water Resources Conservation Act of 1977 (16
U.S.C. 2004) is amended--
(1) in subsection (a)(4), by striking ``and State'' and
inserting ``, State, and tribal'';
(2) in subsection (b), by inserting ``, tribal'' after
``State'' each place it appears; and
(3) in subsection (c)--
(A) by striking ``State soil'' and inserting
``State and tribal soil''; and
(B) by striking ``local'' and inserting ``local,
tribal,''.
(c) Soil and Water Conservation Program.--Section 6(a) of the Soil
and Water Resources Conservation Act of 1977 (16 U.S.C. 2005(a)) is
amended--
(1) by inserting ``, tribal'' after ``State'' each place it
appears; and
(2) by inserting ``, tribal,'' after ``private''.
(d) Utilization of Available Information and Data.--Section 9 of
the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2008)
is amended by inserting ``, tribal'' after ``State''.
Subtitle G--Funding and Administration
SEC. 2601. FUNDING.
(a) In General.--Section 1241 of the Food Security Act of 1985 (16
U.S.C. 3841) is amended by striking subsection (a) and inserting the
following:
``(a) Annual Funding.--For each of fiscal years 2014 through 2018,
the Secretary shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out the following programs under
this title (including the provision of technical assistance):
``(1) The conservation reserve program under subchapter B
of chapter 1 of subtitle D, including, to the maximum extent
practicable--
``(A) $10,000,000 for the period of fiscal years
2014 through 2018 to provide payments under paragraph
(3) of section 1234(b) in connection with thinning
activities conducted on land described in subparagraph
(B)(iii) of that paragraph; and
``(B) $50,000,000 for the period of fiscal years
2014 through 2018 to carry out section 1235(f) to
facilitate the transfer of land subject to contracts
from retired or retiring owners and operators to
beginning farmers or ranchers and socially
disadvantaged farmers or ranchers.
``(2) The Agricultural Conservation Easement Program under
subtitle H using to the maximum extent practicable--
``(A) $450,000,000 for fiscal year 2014;
``(B) $475,000,000 for fiscal year 2015;
``(C) $500,000,000 for fiscal year 2016;
``(D) $525,000,000 for fiscal year 2017; and
``(E) $250,000,000 for fiscal year 2018.
``(3) The conservation security program under subchapter A
of chapter 2 of subtitle D, using such sums as are necessary to
administer contracts entered into before September 30, 2008.
``(4) The conservation stewardship program under subchapter
B of chapter 2 of subtitle D.
``(5) The environmental quality incentives program under
chapter 4 of subtitle D, using, to the maximum extent
practicable--
``(A) $1,500,000,000 for fiscal year 2014;
``(B) $1,600,000,000 for fiscal year 2015; and
``(C) $1,650,000,000 for each of fiscal years 2016
through 2018.''.
(b) Guaranteed Availability of Funds.--Section 1241 of the Food
Security Act of 1985 (16 U.S.C. 3841) is amended--
(1) by redesignating subsections (b) through (h) as
subsections (c) through (i), respectively;
(2) by inserting after subsection (a) the following:
``(b) Availability of Funds.--Amounts made available by subsection
(a) shall be used by the Secretary to carry out the programs specified
in such subsection for fiscal years 2014 through 2018 and shall remain
available until expended. Amounts made available for the programs
specified in such subsection during a fiscal year through
modifications, cancellations, terminations, and other related
administrative actions and not obligated in that fiscal year shall
remain available for obligation during subsequent fiscal years, but
shall reduce the amount of additional funds made available in the
subsequent fiscal year by an amount equal to the amount remaining
unobligated.''; and
(3) in subsection (d) (as redesignated by paragraph (1)),
by striking ``subsection (b)'' and inserting ``subsection
(c)''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2013.
SEC. 2602. TECHNICAL ASSISTANCE.
Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by striking subsection (c) (as redesignated by section
2601(b)(1)) and inserting the following:
``(c) Technical Assistance.--
``(1) Availability.--Commodity Credit Corporation funds
made available for a fiscal year for each of the programs
specified in subsection (a)--
``(A) shall be available for the provision of
technical assistance for the programs for which funds
are made available as necessary to implement the
programs effectively;
``(B) except for technical assistance for the
conservation reserve program under subchapter B of
chapter 1 of subtitle D, shall be apportioned for the
provision of technical assistance in the amount
determined by the Secretary, at the sole discretion of
the Secretary; and
``(C) shall not be available for the provision of
technical assistance for conservation programs
specified in subsection (a) other than the program for
which the funds were made available.
``(2) Priority.--
``(A) In general.--In the delivery of technical
assistance under the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590a et seq.), the Secretary
shall give priority to producers who request technical
assistance from the Secretary in order to comply for
the first time with the requirements of subtitle B and
subtitle C of this title as a result of the amendments
made by section 2609 of the Agriculture Reform, Food,
and Jobs Act of 2013.
``(B) Report.--Not later than 270 days after the
date of enactment of the Agriculture Reform, Food, and
Jobs Act of 2013, the Secretary shall submit to the
Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
regarding the extent to which the conservation
compliance requirements contained in the amendments
made by section 2609 of the Agriculture Reform, Food,
and Jobs Act of 2013 apply to and impact specialty crop
growers, including national analysis and surveys to
determine the extent of specialty crop acreage includes
highly erodible land and wetlands.
``(3) Report.--Not later than December 31, 2013, the
Secretary shall submit (and update as necessary in subsequent
years) to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report--
``(A) detailing the amount of technical assistance
funds requested and apportioned in each program
specified in subsection (a) during the preceding fiscal
year; and
``(B) any other data relating to this provision
that would be helpful to such Committees.
``(4) Compliance report.--Not later than November 1 of each
year, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that includes--
``(A) a description of the extent to which the
requests for highly erodible land conservation and
wetland compliance determinations are being addressed
in a timely manner;
``(B) the total number of requests completed in the
previous fiscal year;
``(C) the incomplete determinations on record; and
``(D) the number of requests that are still
outstanding more than 1 year since the date on which
the requests were received from the producer.''.
SEC. 2603. REGIONAL EQUITY.
Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by striking subsection (e) (as redesignated by section
2601(b)(1)) and inserting the following:
``(e) Regional Equity.--
``(1) Equitable distribution.--When determining funding
allocations each fiscal year, the Secretary shall, after
considering available funding and program demand in each State,
provide a distribution of funds for conservation programs under
subtitle D (excluding the conservation reserve program under
subchapter B of chapter 1), subtitle H, and subtitle I to
ensure equitable program participation proportional to
historical funding allocations and usage by all States.
``(2) Minimum percentage.--In determining the specific
funding allocations under paragraph (1), the Secretary shall--
``(A) ensure that during the first quarter of each
fiscal year each State has the opportunity to establish
that the State can use an aggregate allocation amount
of at least 0.6 percent of the funds made available for
those conservation programs; and
``(B) for each State that can so establish, provide
an aggregate amount of at least 0.6 percent of the
funds made available for those conservation
programs.''.
SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSISTANCE TO CERTAIN
FARMERS OR RANCHERS FOR CONSERVATION ACCESS.
Subsection (h) of section 1241 of the Food Security Act of 1985 (16
U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended--
(1) in paragraph (1) by striking ``2012'' and inserting
``2018''; and
(2) by adding at the end the following:
``(4) Preference.--In providing assistance under paragraph
(1), the Secretary shall give preference to a veteran farmer or
rancher (as defined in section 2501(e) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e))) that qualifies under subparagraph (A) or (B) of
paragraph (1).''.
SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE.
Subsection (i) of section 1241 of the Food Security Act of 1985 (16
U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended--
(1) in paragraph (1), by striking ``wetlands reserve
program'' and inserting ``agricultural conservation easement
program'';
(2) by striking paragraphs (2) and (3) and redesignating
paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4),
respectively;
(3) in paragraph (3) (as so redesignated)--
(A) by striking ``agricultural water enhancement
program'' and inserting ``regional conservation
partnership program''; and
(B) by striking ``section 1240I(g)'' and inserting
``section 1271C(c)(3)''; and
(4) by adding at the end the following:
``(5) Payments made under the conservation stewardship
program.
``(6) Waivers granted by the Secretary under section
1265B(b)(2)(C).''.
SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.
Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is
amended--
(1) in subsection (a)(2), by adding at the end the
following:
``(E) Veteran farmers or ranchers (as defined in
section 2501(e) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(e))).'';
(2) in subsection (d), by inserting ``, H, and I'' before
the period at the end;
(3) in subsection (f)--
(A) in paragraph (1)(B), by striking ``country''
and inserting ``county'';
(B) in paragraph (3), by striking ``subsection
(c)(2)(B) or (f)(4)'' and inserting ``subsection
(c)(2)(A)(ii) or (f)(2)''; and
(4) in subsection (h)(2), by inserting ``including, to the
extent practicable, practices that maximize benefits for honey
bees'' after ``pollinators''; and
(5) by adding at the end the following:
``(j) Improved Administrative Efficiency and Effectiveness.--In
administrating a conservation program under this title, the Secretary
shall, to the maximum extent practicable--
``(1) seek to reduce administrative burdens and costs to
producers by streamlining conservation planning and program
resources; and
``(2) take advantage of new technologies to enhance
efficiency and effectiveness.
``(k) Relation to Other Payments.--Any payment received by an owner
or operator under this title, including an easement payment or rental
payment, shall be in addition to, and not affect, the total amount of
payments that the owner or operator is otherwise eligible to receive
under any of the following:
``(1) This Act.
``(2) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
``(3) The Agriculture Reform, Food, and Jobs Act of 2013.
``(4) Any law that succeeds a law specified in paragraph
(1), (2), or (3).
``(l) Funding for Indian Tribes.--In carrying out the conservation
stewardship program under subchapter B of chapter 2 of subtitle D and
the environmental quality incentives program under chapter 4 of
subtitle D, the Secretary may enter into alternative funding
arrangements with Indian tribes if the Secretary determines that the
goals and objectives of the programs will be met by such arrangements,
and that statutory limitations regarding contracts with individual
producers will not be exceeded by any Tribal member.''.
SEC. 2607. RULEMAKING AUTHORITY.
Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C.
3841 et seq.) is amended by adding at the end the following:
``SEC. 1246. REGULATIONS.
``(a) In General.--The Secretary shall promulgate such regulations
as are necessary to implement programs under this title, including such
regulations as the Secretary determines to be necessary to ensure a
fair and reasonable application of the limitations established under
section 1244(f).
``(b) Rulemaking Procedure.--The promulgation of regulations and
administration of programs under this title--
``(1) shall be carried out without regard to--
``(A) the Statement of Policy of the Secretary
effective July 24, 1971 (36 Fed. Reg. 13804), relating
to notices of proposed rulemaking and public
participation in rulemaking; and
``(B) chapter 35 of title 44, United States Code
(commonly known as the Paperwork Reduction Act); and
``(2) shall be made as an interim rule effective on
publication with an opportunity for notice and comment.
``(c) Congressional Review of Agency Rulemaking.--In promulgating
regulations under this section, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.''.
SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMITTEES.
Section 1261(b) of the Food Security Act of 1985 (16 U.S.C.
3861(b)) is amended by striking ``Not later than 180 days after the
date of enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall develop'' and inserting ``The Secretary shall
review and update as necessary''.
SEC. 2609. HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION FOR CROP
INSURANCE.
(a) Highly Erodible Land Program Ineligibility.--
(1) In general.--Section 1211(a)(1) of the Food Security
Act of 1985 (16 U.S.C. 3811(a)(1)) is amended--
(A) in subparagraph (C), by striking ``or'' at the
end;
(B) in subparagraph (D), by adding ``or'' at the
end; and
(C) by adding at the end the following:
``(E) any portion of premium paid by the Federal
Crop Insurance Corporation for a plan or policy of
insurance under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.), on the condition that if a person
is determined to have committed a violation under this
subsection during a crop year, ineligibility under this
subparagraph shall--
``(i) only apply to reinsurance years
subsequent to the date of final determination
of a violation, including all administrative
appeals; and
``(ii) not apply to the existing
reinsurance year or any reinsurance year prior
to the date of final determination.''.
(2) Exemptions.--Section 1212(a)(2) of the Food Security
Act of 1985 (16 U.S.C. 3812(a)(2)) is amended--
(A) in the first sentence, by striking ``(2) If,''
and inserting the following:
``(2) Eligibility based on compliance with conservation
plan.--
``(A) In general.--If,'';
(B) in the second sentence, by striking ``In
carrying'' and inserting the following:
``(B) Minimization of documentation.--In
carrying''; and
(C) by adding at the end the following:
``(C) Crop insurance.--Notwithstanding section
1211(a)--
``(i) in the case of a person that is
subject to section 1211 for the first time
after May 1, 2013, due to the amendment made by
section 2609(a) of the Agriculture Reform,
Food, and Jobs Act of 2013, any person who
produces an agricultural commodity on the land
that is the basis of the payments described in
section 1211(a)(1)(E) shall have 5 reinsurance
years after the date on which such payments
become subject to section 1211 to develop and
comply with an approved conservation plan so as
to maintain eligibility for such payments; and
``(ii) in the case of a person that the
Secretary determines would have been in
violation of section 1211(a) if the person had
continued participation in the programs
requiring compliance at any time after the date
of enactment of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8701 et seq.) and
is currently in violation of section 1211(a),
the person shall have 2 reinsurance years after
the date on which the payments described in
section 1211(a)(1)(E) become subject to section
1211 to develop and comply with an approved
conservation plan, as determined by the
Secretary, so as to maintain eligibility for
such payments.''.
(b) Wetland Conservation Program Ineligibility.--Section 1221 of
the Food Security Act of 1985 (16 U.S.C. 3821) is amended--
(1) in subsection (b), by adding at the end the following:
``(4) Crop insurance.--
``(A) In general.--Except as provided in this
paragraph, a person subject to a final determination,
including all administrative appeals, of a violation of
subsection (c) shall have 1 reinsurance year to
initiate a conservation plan to remedy the violation,
as determined by the Secretary, before becoming
ineligible under that subsection in the following
reinsurance year to receive any payment of any portion
of premium paid by the Federal Crop Insurance
Corporation for a plan or policy of insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
``(B) Applicability.--In the case of a person that
is subject to this subsection or subsection (d) for the
first time due to the amendment made by section 2609(b)
of the Agriculture Reform, Food, and Jobs Act of 2013,
the person shall have 2 reinsurance years after the
date of final determination, including all
administrative appeals, to take such steps as the
Secretary determines appropriate to remedy or mitigate
the violation in accordance with subsection (c).
``(C) Good faith.--If the Secretary determines that
a person subject to a final determination, including
all administrative appeals, of a violation of
subsection (c) acted in good faith and without intent
to violate this section as described in section
1222(h), the Secretary shall give the person 1
reinsurance year to begin mitigation, restoration, or
such other steps as are determined necessary by the
Secretary.
``(D) Tenant relief.--
``(i) In general.--If a tenant is
determined to be ineligible for payments and
other benefits under this section, the
Secretary may limit the ineligibility only to
the farm that is the basis for the
ineligibility determination if the tenant has
established, to the satisfaction of the
Secretary that--
``(I) the tenant has made a good
faith effort to meet the requirements
of this section, including enlisting
the assistance of the Secretary to
obtain a reasonable conservation plan
for restoration or mitigation for the
farm;
``(II) the landlord on the farm
refuses to comply with the plan on the
farm; and
``(III) the Secretary determines
that the lack of compliance is not a
part of a scheme or device to avoid the
compliance.
``(ii) Report.--The Secretary shall provide
an annual report to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate concerning the
ineligibility determinations limited during the
previous 12-month period under this
subparagraph.
``(E) Certification.--
``(i) In general.--Beginning with the first
full reinsurance year immediately following the
date of enactment of this paragraph, all
persons seeking eligibility for the payment of
a portion of the premium paid by the Federal
Crop Insurance Corporation for a plan or policy
of insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) shall provide
certification of compliance with this section
as determined by the Secretary.
``(ii) Timely evaluation.--The Secretary
shall evaluate the certification in a timely
manner and--
``(I) a person who has properly
complied with certification shall be
held harmless with regard to
eligibility during the period of
evaluation; and
``(II) if the Secretary fails to
evaluate the certification in a timely
manner and the person is subsequently
found to be in violation of subsection
(c), ineligibility shall not apply to
the person for that violation.
``(iii) Equitable contribution.--
``(I) In general.--If a person
fails to notify the Secretary as
required and is subsequently found in
violation of subsection (c), the
Secretary shall determine the amount of
an equitable contribution to
conservation in accordance with section
1241(f) by the person for the
violation.
``(II) Limitation.--The
contribution shall not exceed the total
of the portion of premium paid by the
Federal Crop Insurance Corporation for
a plan or policy of insurance for all
years the person is determined to have
been in violation subsequent to the
date on which certification was first
required under this subparagraph.'';
(2) by redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(3) by inserting after subsection (b) the following:
``(c) Ineligibility for Crop Insurance Premium Assistance.--
``(1) In general.--If a person is determined to have
committed a violation under subsection (a) or (d) during a crop
year, the person shall be ineligible to receive any payment of
any portion of premium paid by the Federal Crop Insurance
Corporation for a plan or policy of insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.).
``(2) Applicability.--Ineligibility under this subsection
shall--
``(A) only apply to reinsurance years subsequent to
the date of final determination of a violation,
including all administrative appeals; and
``(B) not apply to--
``(i) the existing reinsurance year; or
``(ii) any reinsurance year prior to the
date of final determination.
``(3) Date of conversion.--Notwithstanding subsection (d),
ineligibility for crop insurance premium assistance shall apply
as follows:
``(A) In the case of wetland that the Secretary
determines was converted after the date of enactment of
the Food, Conservation and Energy Act of 2008 (7 U.S.C.
8701 et seq.) but on or before May 1, 2013, and
continues to be in violation, the person shall have 2
reinsurance years after the date on which this
subsection applies, to begin the mitigation process, as
determined by the Secretary.
``(B) In the case of wetland that the Secretary
determines was converted after May 1, 2013--
``(i) subject to clause (ii), the person
shall be ineligible to receive crop insurance
premium subsidies in subsequent reinsurance
years unless section 1222(b) applies; and
``(ii) for any violation that the Secretary
determines impacts less than 5 acres of the
entire farm, the person may pay a contribution
in accordance with section 1241(f) in an amount
equal to 150 percent of the cost of mitigation,
as determined by the Secretary, for wetland
restoration in lieu of ineligibility to receive
crop insurance premium assistance.
``(C) In the case of a wetland that the Secretary
determines was converted prior to the date of enactment
of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8701 et seq.), ineligibility under this
subsection shall not apply.
``(D) In the case of an agricultural commodity for
which an individual policy or plan of insurance is
available for the first time to the person after the
date of enactment of the Agriculture Reform, Food, and
Jobs Act of 2013--
``(i) ineligibility shall apply only to
conversions that take place after the date on
which the policy or plan of insurance first
becomes available to the person; and
``(ii) the person shall take such steps as
the Secretary determines appropriate to
mitigate any prior conversion in a timely
manner but not to exceed 2 calendar years.
``(4) Certification.--
``(A) In general.--In enforcing eligibility under
this subsection, the Secretary shall use existing
processes and procedures for certifying compliance.
``(B) Responsibility.--The Secretary, acting
through the agencies of the Department of Agriculture,
shall be solely responsible for determining whether a
producer is eligible to receive crop insurance premium
subsidies in accordance with this subsection.
``(C) Limitation.--The Secretary shall ensure that
no agent, approved insurance provider, or employee or
contractor of an agency or approved insurance provider,
bears responsibility or liability for the eligibility
of an insured producer under this subsection, other
than in cases of misrepresentation, fraud, or scheme
and devise.''.
SEC. 2610. ADJUSTED GROSS INCOME LIMITATION FOR CONSERVATION PROGRAMS.
Section 1001D(b)(2)(A) of the Food Security Act of 1985 (7 U.S.C.
1308-3a(b)(2)(A)) is amended--
(1) by striking ``Limits.--'' and all that follows through
``clause (ii),'' and inserting ``Limits.--Notwithstanding any
other provision of law,''; and
(2) by striking clause (ii).
Subtitle H--Repeal of Superseded Program Authorities and Transitional
Provisions
SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
repealed.
SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.
(a) Repeal.--Section 1231A of the Food Security Act of 1985 (16
U.S.C. 3831a) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts.--The amendment made by
this section shall not affect the validity or terms of any
contract entered into by the Secretary of Agriculture under
section 1231A of the Food Security Act of 1985 (16 U.S.C.
3831a) before October 1, 2013, or any payments required to be
made in connection with the contract.
(2) Funding.--The Secretary may use funds made available to
carry out the conservation reserve program under subchapter B
of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.) to continue to carry out
contracts referred to in paragraph (1) using the provisions of
law and regulation applicable to such contracts as in existence
on September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2703. WETLANDS RESERVE PROGRAM.
(a) Repeal.--Subchapter C of chapter 1 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts and easements.--The
amendment made by this section shall not affect the validity or
terms of any contract or easement entered into by the Secretary
of Agriculture under subchapter C of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et
seq.) before October 1, 2013, or any payments required to be
made in connection with the contract or easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of subchapter C of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C.
3837 et seq.), any funds made available from the
Commodity Credit Corporation to carry out the wetlands
reserve program under that subchapter for fiscal years
2009 through 2013 shall be made available to carry out
contracts or easements referred to in paragraph (1)
that were entered into prior to October 1, 2013
(including the provision of technical assistance),
provided that no such contract or easement is modified
so as to increase the amount of the payment received.
(B) Other.--The Secretary may use funds made
available to carry out the agricultural conservation
easement program under subtitle H of title XII of the
Food Security Act of 1985, as added by section 2301, to
continue to carry out contracts and easements referred
to in paragraph (1) using the provisions of law and
regulation applicable to such contracts and easements
as in existence on September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY PROGRAM.
(a) Repeal.--Subchapter C of chapter 2 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing agreements and easements.--The
amendment made by this section shall not affect the validity or
terms of any agreement or easement entered into by the
Secretary of Agriculture under subchapter C of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838h et seq.) before October 1, 2013, or any payments
required to be made in connection with the agreement or
easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of subchapter C of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C.
3838h et seq.), any funds made available from the
Commodity Credit Corporation to carry out the farmland
protection program under that subchapter for fiscal
years 2009 through 2013 shall be made available to
carry out agreements and easements referred to in
paragraph (1) that were entered into prior to October
1, 2013 (including the provision of technical
assistance).
(B) Other.--On exhaustion of funds made available
under subparagraph (A), the Secretary may use funds
made available to carry out the agricultural
conservation easement program under subtitle H of title
XII of the Food Security Act of 1985, as added by
section 2301, to continue to carry out agreements and
easements referred to in paragraph (1) using the
provisions of law and regulation applicable to such
agreements and easement as in existence on September
30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2705. GRASSLAND RESERVE PROGRAM.
(a) Repeal.--Subchapter D of chapter 2 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts, agreements, and
easements.--The amendment made by this section shall not affect
the validity or terms of any contract, agreement, or easement
entered into by the Secretary of Agriculture under subchapter D
of chapter 2 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3838n et seq.) before October 1, 2013,
or any payments required to be made in connection with the
contract, agreement, or easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of subchapter D of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C.
3838n et seq.), any funds made available from the
Commodity Credit Corporation to carry out the grassland
reserve program under that subchapter for fiscal years
2009 through 2013 shall be made available to carry out
contracts, agreements, or easements referred to in
paragraph (1) that were entered into prior to October
1, 2013 (including the provision of technical
assistance), provided that no such contract, agreement,
or easement is modified so as to increase the amount of
the payment received.
(B) Other.--The Secretary may use funds made
available to carry out the agricultural conservation
easement program under subtitle H of title XII of the
Food Security Act of 1985, as added by section 2301, to
continue to carry out contracts, agreements, and
easements referred to in paragraph (1) using the
provisions of law and regulation applicable to such
contracts, agreements, and easements as in existence on
September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
(a) Repeal.--Section 1240I of the Food Security Act of 1985 (16
U.S.C. 3839aa-9) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts and agreements.--The
amendment made by this section shall not affect the validity or
terms of any contract or agreement entered into by the
Secretary of Agriculture under section 1240I of the Food
Security Act of 1985 (16 U.S.C. 3839aa-9) before October 1,
2013, or any payments required to be made in connection with
the contract or agreement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of section 1240I of the Food Security Act of
1985 (16 U.S.C. 3839aa-9), any funds made available
from the Commodity Credit Corporation to carry out the
agricultural water enhancement program under that
section for fiscal years 2009 through 2013 shall be
made available to carry out contracts and agreements
referred to in paragraph (1) that were entered into
prior to October 1, 2013 (including the provision of
technical assistance).
(B) Other.--On exhaustion of funds made available
under subparagraph (A), the Secretary may use funds
made available to carry out the regional conservation
partnerships program under subtitle I of title XII of
the Food Security Act of 1985, as added by section
2401, to continue to carry out contracts and agreements
referred to in paragraph (1) using the provisions of
law and regulation applicable to such contracts and
agreements as in existence on September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) Repeal.--Section 1240N of the Food Security Act of 1985 (16
U.S.C. 3839bb-1) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts.--The amendment made by
this section shall not affect the validity or terms of any
contract entered into by the Secretary of Agriculture under
section 1240N of the Food Security Act of 1985 (16 U.S.C.
3839bb-1) before October 1, 2013, or any payments required to
be made in connection with the contract.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of section 1240N of the Food Security Act of
1985 (16 U.S.C. 3839bb-1), any funds made available
from the Commodity Credit Corporation to carry out the
wildlife habitat incentive program under that section
for fiscal years 2009 through 2013 shall be made
available to carry out contracts referred to in
paragraph (1) which were entered into prior to October
1, 2013 (including the provision of technical
assistance).
(B) Other.--On exhaustion of funds made available
under subparagraph (A), the Secretary may use funds
made available to carry out the environmental quality
incentives program under chapter 4 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C.
3839aa et seq.) to continue to carry out contracts
referred to in paragraph (1) using the provisions of
law and regulation applicable to such contracts as in
existence on September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2708. GREAT LAKES BASIN PROGRAM.
(a) Repeal.--Section 1240P of the Food Security Act of 1985 (16
U.S.C. 3839bb-3) is repealed.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.
(a) Repeal.--Section 1240Q of the Food Security Act of 1985 (16
U.S.C. 3839bb-4) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts, agreements, and
easements.--The amendment made by this section shall not affect
the validity or terms of any contract, agreement, or easement
entered into by the Secretary of Agriculture under section
1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb-4)
before October 1, 2013, or any payments required to be made in
connection with the contract, agreement, or easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of section 1240Q of the Food Security Act of
1985 (16 U.S.C. 3839bb-4), any funds made available
from the Commodity Credit Corporation to carry out the
Chesapeake Bay watershed program under that section for
fiscal years 2009 through 2013 shall be made available
to carry out contracts, agreements, and easements
referred to in paragraph (1) that were entered into
prior to October 1, 2013 (including the provision of
technical assistance).
(B) Other.--The Secretary may use funds made
available to carry out the regional conservation
partnerships program under subtitle I of title XII of
the Food Security Act of 1985, as added by section
2401, to continue to carry out contracts, agreements,
and easements referred to in paragraph (1) using the
provisions of law and regulation applicable to such
contracts, agreements, and easements as in existence on
September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) Repeal.--Section 1243 of the Food Security Act of 1985 (16
U.S.C. 3843) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts and agreements.--The
amendment made by this section shall not affect the validity or
terms of any contract or agreement entered into by the
Secretary of Agriculture under section 1243 of the Food
Security Act of 1985 (16 U.S.C. 3843) before October 1, 2013,
or any payments required to be made in connection with the
contract or agreement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the
repeal of section 1243 of the Food Security Act of 1985
(16 U.S.C. 3843), any funds made available from the
Commodity Credit Corporation to carry out the
cooperative conservation partnership initiative under
that section for fiscal years 2009 through 2013 shall
be made available to carry out contracts and agreements
referred to in paragraph (1) that were entered into
prior to October 1, 2013 (including the provision of
technical assistance).
(B) Other.--On exhaustion of funds made available
under subparagraph (A), the Secretary may use funds
made available to carry out the regional conservation
partnerships program under subtitle I of title XII of
the Food Security Act of 1985, as added by section
2401, to continue to carry out contracts and agreements
referred to in paragraph (1) using the provisions of
law and regulation applicable to such contracts and
agreements as in existence on September 30, 2013.
(c) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM.
Chapter 3 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3839 et seq.) is repealed.
SEC. 2712. TECHNICAL AMENDMENTS.
(a) Section 1201(a) of the Food Security Act of 1985 (16 U.S.C.
3801(a)) is amended in the matter preceding paragraph (1) by striking
``E'' and inserting ``I''.
(b) Section 1211(a) of the Food Security Act of 1985 (16 U.S.C.
3811(a)) is amended by striking ``predominate'' each place it appears
and inserting ``predominant''.
(c) Section 1242(i) of the Food Security Act of 1985 (16 U.S.C.
3842(i)) is amended in the subsection heading by striking
``Speciality'' and inserting ``Specialty''.
TITLE III--TRADE
Subtitle A--Food for Peace Act
SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS THROUGH WHICH
NONEMERGENCY ASSISTANCE IS PROVIDED.
Effective October 1, 2013, section 202(e)(1) of the Food for Peace
Act (7 U.S.C. 1722(e)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``13 percent'' and inserting ``15 percent''; and
(2) in subparagraph (A), by striking ``new'' and inserting
``and enhancing''.
SEC. 3002. FOOD AID QUALITY.
Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--The Administrator shall use funds made
available for fiscal year 2014 and subsequent fiscal years to
carry out this title--
``(A) to assess the types and quality of
agricultural commodities and products donated for food
aid;
``(B) to adjust products and formulations,
including potential introduction of new fortificants
and products, as necessary to cost-effectively meet
nutrient needs of target populations;
``(C) to test prototypes;
``(D) to adopt new specifications or improve
existing specifications for micronutrient fortified
food aid products, based on the latest developments in
food and nutrition science, and in coordination with
other international partners;
``(E) to develop new program guidance to facilitate
improved matching of products to purposes having
nutritional intent, in coordination with other
international partners;
``(F) to develop improved guidance for implementing
partners on how to address nutritional deficiencies
that emerge among recipients for whom food assistance
is the sole source of diet in emergency programs that
extend beyond 1 year, in coordination with other
international partners; and
``(G) to evaluate, in appropriate settings and as
necessary, the performance and cost-effectiveness of
new or modified specialized food products and program
approaches designed to meet the nutritional needs of
the most vulnerable groups, such as pregnant and
lactating mothers, and children under the age of 5.'';
and
(2) in paragraph (3), by striking ``2011'' and inserting
``2018''.
SEC. 3003. MINIMUM LEVELS OF ASSISTANCE.
Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is
amended--
(1) in paragraph (1), by striking ``2012'' and inserting
``2018''; and
(2) in paragraph (2), by striking ``2012'' and inserting
``2018''.
SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULTATIVE GROUP.
Section 205(f) of the Food for Peace Act (7 U.S.C. 1725(f)) is
amended by striking ``2012'' and inserting ``2018''.
SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF FOOD FOR PEACE ACT
PROGRAMS.
Section 207(f) of the Food for Peace Act (7 U.S.C. 1726a(f)) is
amended--
(1) by striking paragraph (4) and redesignating paragraphs
(5) and (6) as paragraphs (4) and (5), respectively; and
(2) in subparagraph (A) of paragraph (5) (as so
redesignated)--
(A) by striking ``2012'' and inserting ``2018'';
and
(B) by striking ``during fiscal year 2009'' and
inserting ``during the period of fiscal years 2014
through 2018''.
SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED
FOODS.
Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is
amended by striking ``2012'' and inserting ``2018''.
SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMODITIES MONETIZED.
Section 403 of the Food for Peace Act (7 U.S.C. 1733) is amended by
adding at the end the following:
``(m) Limitation on Monetization of Commodities.--
``(1) Limitation.--
``(A) In general.--Unless the Administrator grants
a waiver under paragraph (2), no commodity may be made
available under this Act unless the rate of return for
the commodity (as determined under subparagraph (B)) is
at least 70 percent.
``(B) Rate of return.--For purposes of subparagraph
(A), the rate of return shall be equal to the
proportion that--
``(i) the proceeds the implementing
partners generate through monetization; bears
to
``(ii) the cost to the Federal Government
to procure and ship the commodities to a
recipient country for monetization.
``(2) Waiver authority.--The Administrator may waive the
application of the limitation in paragraph (1) with regard to a
commodity for a recipient country if the Administrator
determines that it is necessary to achieve the purposes of this
Act in the recipient country.
``(3) Report.--Not later than 90 days after a waiver is
granted under paragraph (2), the Administrator shall prepare,
publish in the Federal Register, and submit to the Committees
on Foreign Affairs, Agriculture, and Appropriations of the
House of Representatives, and the Committees on Appropriations,
Foreign Relations, and Agriculture, Nutrition, and Forestry of
the Senate a report that--
``(A) contains the reasons for granting the waiver
and the actual rate of return for the commodity; and
``(B) includes for the commodity the costs of
bagging or further processing, ocean transportation,
inland transportation in the recipient country, storage
costs, and any other information that the Administrator
determines to be necessary.''.
SEC. 3008. FLEXIBILITY.
Section 406 of the Food for Peace Act (7 U.S.C. 1736) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Flexibility.--Notwithstanding any other provision of law and
as necessary to achieve the purposes of this Act, funds available under
this Act may be used to pay the costs of up to 20 percent of activities
conducted in recipient countries by nonprofit voluntary organizations,
cooperatives, or intergovernmental agencies or organizations.''.
SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, AND STORAGE OF
AGRICULTURAL COMMODITIES FOR PREPOSITIONING IN THE UNITED
STATES AND FOREIGN COUNTRIES.
Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is amended--
(1) in subparagraph (c)(4)(A)--
(A) by striking ``2012'' and inserting ``2018'';
and
(B) by striking ``for each such fiscal year not
more than $10,000,000 of such funds'' and inserting
``for each of fiscal years 2001 through 2012 not more
than $10,000,000 of such funds and for each of fiscal
years 2014 through 2018 not more than $15,000,000 of
such funds''; and
(2) by adding at the end the following:
``(g) Funding for Testing of Food Aid Shipments.--Funds made
available for agricultural products acquired under this Act and section
3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
1736o-1) may be used to pay for the testing of those agricultural
products.''.
SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO PROVIDE OTHER
ASSISTANCE.
Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended
by striking ``2012'' and inserting ``2018''.
SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended
by striking subsection (e) and inserting the following:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) In general.--Subject to paragraph (2), of the amounts
made available to carry out emergency and nonemergency food
assistance programs under title II, not less than 20 nor more
than 30 percent for each of fiscal years 2014 through 2018
shall be expended for nonemergency food assistance programs
under title II.
``(2) Minimum level.--The amount made available to carry
out nonemergency food assistance programs under title II shall
not be less than $275,000,000 for any fiscal year.''.
SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS REPORT.
Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is amended--
(1) by striking ``(a) In General.--To the maximum'' and
inserting ``To the maximum''; and
(2) by striking subsection (b).
SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.
(a) Elimination of Obsolete Reference to Study.--Section
415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g-2(a)(2)(B)) is
amended by striking ``, using recommendations'' and all that follows
through ``quality enhancements''.
(b) Extension.--Section 415(c) of the Food for Peace Act (7 U.S.C.
1736g-2(c)) is amended by striking ``2012'' and inserting ``2018''.
SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.
Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended--
(1) in subsection (d)--
(A) by striking ``0.5 percent'' and inserting ``0.6
percent''; and
(B) by striking ``2012'' and inserting ``2018'';
and
(2) in subsection (e)(1), by striking ``2012'' and
inserting ``2018''.
SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH KOREA.
(a) In General.--No amounts may be obligated or expended to provide
assistance under title II of the Food for Peace Act (7 U.S.C. 1721 et
seq.) to the Democratic People's Republic of Korea.
(b) National Interest Waiver.--The President may waive subsection
(a) if the President determines and certifies to the Committees on
Agriculture, Nutrition, and Forestry and Foreign Relations of the
Senate and the Committees on Agriculture and Foreign Affairs of the
House of Representatives that the waiver is in the national interest of
the United States.
Subtitle B--Agricultural Trade Act of 1978
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS.
Section 211 of the Agricultural Trade Act of 1978 (7 U.S.C. 5641)
is amended by striking subsection (b) and inserting the following:
``(b) Export Credit Guarantee Programs.--The Commodity Credit
Corporation shall make available for each of fiscal years 2014 through
2018 credit guarantees under section 202(a) in an amount equal to not
more than $4,500,000,000 in credit guarantees.''.
SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM.
Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7
U.S.C. 5641(c)(1)(A)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
5723(a)) is amended by striking ``2012'' and inserting ``2018''.
Subtitle C--Other Agricultural Trade Laws
SEC. 3201. FOOD FOR PROGRESS ACT OF 1985.
(a) Extension.--The Food for Progress Act of 1985 (7 U.S.C. 1736o)
is amended--
(1) in subsection (f)(3), by striking ``2012'' and
inserting ``2018'';
(2) in subsection (g), by striking ``2012'' and inserting
``2018'';
(3) in subsection (k), by striking ``2012'' and inserting
``2018''; and
(4) in subsection (l)(1), by striking ``2012'' and
inserting ``2018''.
(b) Repeal of Completed Project.--Subsection (f) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph
(6).
(c) Flexibility.--The Food for Progress Act of 1985 (7 U.S.C.
1736o) is amended in subsection (l) by adding at the end the following:
``(5) Flexibility.--Notwithstanding any other provision of
law and as necessary to achieve the purposes of this Act, funds
available under this Act may be used to pay the costs of up to
20 percent of activities conducted in recipient countries by
nonprofit voluntary organizations, cooperatives, or
intergovernmental agencies or organizations.''.
(d) Limitation on Total Volume of Commodities Monetized.--The Food
for Progress Act of 1985 (7 U.S.C. 1736o) is amended by adding at the
end the following:
``(p) Limitation on Monetization of Commodities.--
``(1) Limitation.--
``(A) In general.--Unless the Secretary grants a
waiver under paragraph (2), no eligible commodity may
be made available under this section unless the rate of
return for the eligible commodity (as determined under
subparagraph (B)) is at least 70 percent.
``(B) Rate of return.--For purposes of subparagraph
(A), the rate of return shall be equal to the
proportion that--
``(i) the proceeds the implementing
partners generate through monetization; bears
to
``(ii) the cost to the Federal Government
to procure and ship the eligible commodities to
a recipient country for monetization.
``(2) Waiver authority.--The Secretary may waive the
application of the limitation in paragraph (1) with regard to
an eligible commodity for a recipient country if the Secretary
determines that it is necessary to achieve the purposes of this
Act in the recipient country.
``(3) Report.--Not later than 90 days after a waiver is
granted under paragraph (2), the Secretary shall prepare,
publish in the Federal Register, and submit to the Committees
on Foreign Affairs, Agriculture, and Appropriations of the
House of Representatives, and the Committees on Appropriations,
Foreign Relations, and Agriculture, Nutrition, and Forestry of
the Senate a report that--
``(A) contains the reasons for granting the waiver
and the actual rate of return for the eligible
commodity; and
``(B) includes for the commodity the costs of
bagging or further processing, ocean transportation,
inland transportation in the recipient country, storage
costs, and any other information that the Secretary
determines to be necessary.''.
SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1) is amended--
(1) in subsection (b)(2)(B)(i), by striking ``2012'' both
places it appears and inserting ``2018''; and
(2) in subsection (h), by striking ``2012'' both places it
appears and inserting ``2018''.
SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.
(a) Direct Credits or Export Credit Guarantees.--Section 1542(a) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law
101-624; 7 U.S.C. 5622 note) is amended by striking ``2012'' and
inserting ``2018''.
(b) Development of Agricultural Systems.--Section 1542(d)(1)(A)(i)
of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public
Law 101-624; 7 U.S.C. 5622 note) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
NUTRITION PROGRAM.
(a) Reauthorization.--Section 3107(l)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 1736o-1(l)(2)) is amended by
striking ``2012'' and inserting ``2018''.
(b) Technical Correction.--Section 3107(d) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 1736o-1(d)) is amended by
striking ``to'' in the matter preceding paragraph (1).
SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) Purpose.--Section 3205(b) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking
``related barriers to trade'' and inserting ``technical barriers to
trade''.
(b) Funding.--Section 3205(e)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended--
(1) by inserting ``and'' at the end of subparagraph (C);
and
(2) by striking subparagraphs (D) and (E) and inserting the
following new subparagraph:
``(D) $9,000,000 for each of fiscal years 2011
through 2018.''.
SEC. 3206. GLOBAL CROP DIVERSITY TRUST.
Section 3202(c) of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 22 U.S.C. 2220a note) is amended by striking
``2008 through 2012'' and inserting ``2014 through 2018''.
SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.
Section 3206 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 1726c) is amended--
(1) in subsection (b)--
(A) by striking ``(b) Study; Field-Based
Projects.--'' and all that follows through ``(2) Field-
based projects.--'' and inserting the following:
``(b) Field-Based Projects.--'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and indenting
appropriately;
(C) in paragraph (1) (as so redesignated), by
striking ``subparagraph (B)'' and inserting ``paragraph
(2)''; and
(D) in paragraph (2) (as so redesignated), by
striking ``subparagraph (A)'' and inserting ``paragraph
(1)'';
(2) in subsection (c)(1), by striking ``subsection (b)(2)''
and inserting ``subsection (b)'';
(3) by striking subsections (d), (f), and (g);
(4) by redesignating subsection (e) as subsection (d);
(5) in subsection (d) (as so redesignated)--
(A) in paragraph (2)--
(i) by striking subparagraph (B); and
(ii) in subparagraph (A)--
(I) by striking ``(A)
Application.--'' and all that follows
through ``To be eligible'' in clause
(i) and inserting the following:
``(A) In general.--To be eligible'';
(II) by redesignating clause (ii)
as subparagraph (B) and indenting
appropriately; and
(III) in subparagraph (B) (as so
redesignated), by striking ``clause
(i)'' and inserting ``subparagraph
(A)''; and
(B) by striking paragraph (4); and
(6) by adding at the end the following:
``(e) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $60,000,000 for
each of fiscal years 2014 through 2018.
``(2) Preference.--In carrying out this section, the
Secretary may give a preference to eligible organizations that
have, or are working toward, projects under the McGovern-Dole
International Food for Education and Child Nutrition Program
established under section 3107 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736o-1).
``(3) Reporting.--Each year, the Secretary shall submit to
the appropriate committees of Congress a report that describes
the use of funds under this section, including--
``(A) the impact of procurements and projects on--
``(i) local and regional agricultural
producers; and
``(ii) markets and consumers, including
low-income consumers; and
``(B) implementation time frames and costs.''.
SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESILIENCE PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Agency for International Development.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
(B) the Committee on Agriculture of the House of
Representatives;
(C) the Committee on Foreign Relations of the
Senate; and
(D) the Committee on Foreign Affairs of the House
of Representatives.
(3) Eligible organization.--The term ``eligible
organization'' means an organization that is--
(A) a private voluntary organization or cooperative
that is, to the extent practicable, registered with the
Administrator; or
(B) an intergovernmental organization, such as the
World Food Program.
(4) Horn of africa.--The term ``Horn of Africa'' means the
countries of--
(A) Ethiopia;
(B) Somalia;
(C) Kenya;
(D) Djibouti;
(E) Eritrea;
(F) South Sudan;
(G) Uganda; and
(H) such other countries as the Administrator
determines to be appropriate after providing
notification to the appropriate committees of Congress.
(5) Resilience.--The term ``resilience'' means--
(A) the capacity to mitigate the negative impacts
of crises (including natural disasters, conflicts, and
economic shocks) in order to reduce loss of life and
depletion of productive assets;
(B) the capacity to respond effectively to crises,
ensuring basic needs are met in a way that is
integrated with long-term development efforts; and
(C) the capacity to recover and rebuild after
crises so that future shocks can be absorbed with less
need for ongoing external assistance.
(b) Purpose.--The purpose of this section is to establish a pilot
program to effectively integrate all United States-funded emergency and
long-term development activities that aim to improve food security in
the Horn of Africa, building resilience so as--
(1) to reduce the impacts of future crises;
(2) to enhance local capacity for emergency response;
(3) to enhance sustainability of long-term development
programs targeting poor and vulnerable households; and
(4) to reduce the need for repeated costly emergency
operations.
(c) Study.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Administrator shall initiate a study
of prior programs to support resilience in the Horn of Africa
conducted by--
(A) other donor countries;
(B) private voluntary organizations;
(C) the World Food Program of the United Nations;
and
(D) multilateral institutions, including the World
Bank.
(2) Requirements.--The study shall--
(A) include all programs implemented through the
Agency for International Development, the Department of
Agriculture, the Department of the Treasury, the
Millennium Challenge Corporation, the Peace Corps, and
other relevant Federal agencies;
(B) evaluate how well the programs described in
subparagraph (A) work together to complement each other
and leverage impacts across programs;
(C) include recommendations for how full
integration of efforts can be achieved; and
(D) evaluate the degree to which country-led
development plans support programs that increase
resilience, including review of the investments by each
country in nutrition and safety nets.
(3) Report.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall submit to the
appropriate committees of Congress a report containing the
results of the study.
(d) Field-Based Project Grants or Cooperative Agreements.--
(1) In general.--The Administrator shall--
(A) provide grants to, or enter into cooperative
agreements with, eligible organizations to carry out
field-based projects that build resilience in the Horn
of Africa in accordance with this section; and
(B) develop a project approval process to ensure
full integration of efforts.
(2) Requirements of eligible organizations.--
(A) Application.--To be eligible to receive a grant
from, or enter into a cooperative agreement with, the
Administrator under this subsection, an eligible
organization shall submit to the Administrator an
application by such date, in such manner, and
containing such information as the Administrator may
require.
(B) Completion requirement.--To be eligible to
receive a grant from, or enter into a cooperative
agreement with, the Administrator under this
subsection, an eligible organization shall agree--
(i) to collect, not later than September
30, 2016, data containing the information
required under subsection (f)(2) relating to
the field-based project funded through the
grant or cooperative agreement; and
(ii) to provide to the Administrator the
data collected under clause (i).
(3) Requirements of administrator.--
(A) Project diversity.--
(i) In general.--Subject to clause (ii) and
subparagraph (B), in selecting proposals for
field-based projects to fund under this
section, the Administrator shall select a
diversity of projects, including projects
located in--
(I) areas most prone to repeated
crises;
(II) areas with effective existing
resilience programs that can be scaled;
and
(III) areas in all countries of the
Horn of Africa.
(ii) Priority.--In selecting proposals for
field-based projects under clause (i), the
Administrator shall ensure that the selected
proposals are for field-based projects that--
(I) effectively integrate emergency
and long-term development programs to
improve sustainability;
(II) demonstrate the potential to
reduce the need for future emergency
assistance; and
(III) build targeted productive
safety nets, in coordination with host
country governments, through food for
work, cash for work, and other proven
program methodologies.
(B) Availability.--The Administrator shall not
award a grant or cooperative agreement or approve a
field-based project under this subsection until the
date on which the Administrator promulgates regulations
or issues guidelines under subsection (e).
(e) Regulations; Guidelines.--
(1) In general.--Not later than 180 days after the date of
completion of the study under subsection (c), the Administrator
shall promulgate regulations or issue guidelines to carry out
field-based projects under this section.
(2) Requirements.--In promulgating regulations or issuing
guidelines under paragraph (1), the Administrator shall--
(A) take into consideration the results of the
study described in subsection (c); and
(B) provide an opportunity for public review and
comment.
(f) Report.--
(1) In general.--Not later than November 1, 2016, the
Administrator shall submit to the appropriate committees of
Congress a report that--
(A) addresses each factor described in paragraph
(2); and
(B) is conducted in accordance with this section.
(2) Required factors.--The report shall include baseline
and end-of-project data that measures--
(A) the prevalence of moderate and severe hunger so
as to provide an accurate accounting of project impact
on household access to and consumption of food during
every month of the year prior to data collection;
(B) household ownership of and access to productive
assets, including at a minimum land, livestock, homes,
equipment, and other materials assets needed for income
generation;
(C) household incomes, including informal sources
of employment; and
(D) the productive assets of women using the
Women's Empowerment in Agriculture Index.
(3) Public access to records and reports.--Not later than
90 days after the date on which the report is submitted under
paragraph (1), the Administrator shall provide public access to
the report.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2014 through 2018.
SEC. 3209. UNDER SECRETARY OF AGRICULTURE FOR TRADE AND FOREIGN
AGRICULTURAL AFFAIRS.
(a) Definition of Agriculture Committees and Subcommittees.--In
this section, the term ``agriculture committees and subcommittees''
means--
(1) the Committee on Agriculture of the House of
Representatives;
(2) the Committee on Agriculture, Nutrition, and Forestry
of the Senate; and
(3) the subcommittees on agriculture, rural development,
food and drug administration, and related agencies of the
Committees on Appropriations of the House of Representatives
and the Senate.
(b) Proposal.--
(1) In general.--The Secretary, in consultation with the
agriculture committees and subcommittees, shall propose a
reorganization of international trade functions for imports and
exports of the Department of Agriculture.
(2) Considerations.--In producing the proposal under this
section, the Secretary shall--
(A) in recognition of the importance of
agricultural exports to the farm economy and the
economy as a whole, include a plan for the
establishment of an Under Secretary of Agriculture for
Trade and Foreign Agricultural Affairs;
(B) take into consideration how the Under Secretary
described in subparagraph (A) would serve as a
multiagency coordinator of sanitary and phytosanitary
issues and nontariff trade barriers in agriculture with
respect to imports and exports of agricultural
products; and
(C) take into consideration all implications of a
reorganization described in paragraph (1) on domestic
programs and operations of the Department of
Agriculture.
(3) Report.--Not later than 180 days after the date of
enactment of this Act and before the reorganization described
in paragraph (1) can take effect, the Secretary shall submit to
the agriculture committees and subcommittees a report that--
(A) includes the results of the proposal under this
section; and
(B) provides a notice of the reorganization plan.
(4) Implementation.--Not later than 1 year after the date
of the submission of the report under paragraph (3), the
Secretary shall implement a reorganization of international
trade functions for imports and exports of the Department of
Agriculture, including the establishment of an Under Secretary
of Agriculture for Trade and Foreign Agricultural Affairs.
(c) Confirmation Required.--The position of Under Secretary of
Agriculture for Trade and Foreign Agricultural Affairs established
under subsection (b)(2)(A) shall be appointed by the President, by and
with the advice and consent of the Senate.
TITLE IV--NUTRITION
Subtitle A--Supplemental Nutrition Assistance Program
SEC. 4001. ACCESS TO GROCERY DELIVERY FOR HOMEBOUND SENIORS AND
INDIVIDUALS WITH DISABILITIES ELIGIBLE FOR SUPPLEMENTAL
NUTRITION ASSISTANCE BENEFITS.
(a) In General.--Section 3(p) of the Food and Nutrition Act of 2008
(7 U.S.C. 2012(p)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after paragraph (4) the following:
``(5) a public or private nonprofit food purchasing and
delivery service that--
``(A) purchases food for, and delivers the food to,
individuals who are--
``(i) unable to shop for food; and
``(ii)(I) not less than 60 years of age; or
``(II) individuals with disabilities;
``(B) clearly notifies the participating household
at the time the household places a food order--
``(i) of any delivery fee associated with
the food purchase and delivery provided to the
household by the service; and
``(ii) that a delivery fee cannot be paid
with benefits provided under the supplemental
nutrition assistance program; and
``(C) sells food purchased for the household at the
price paid by the service for the food without any
additional cost markup.''.
(b) Issuance of Regulations.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall issue regulations that--
(1) establish criteria to identify a food purchasing and
delivery service described in section 3(p)(5) of the Food and
Nutrition Act of 2008 (as added by subsection (a)(3)); and
(2) establish procedures to ensure that the service--
(A) does not charge more for a food item than the
price paid by the service for the food item;
(B) offers food delivery service at no or low cost
to households under that Act;
(C) ensures that benefits provided under the
supplemental nutrition assistance program are used only
to purchase food, as defined in section 3 of that Act
(7 U.S.C. 2012);
(D) limits the purchase of food, and the delivery
of the food, to households eligible to receive services
described in section 3(p)(5) of that Act (as added by
subsection (a)(3));
(E) has established adequate safeguards against
fraudulent activities, including unauthorized use of
electronic benefit cards issued under that Act; and
(F) such other requirements as the Secretary
considers appropriate.
(c) Limitation.--Before the issuance of regulations under
subsection (b), the Secretary may not approve more than 20 food
purchasing and delivery services described in section 3(p)(5) of the
Food and Nutrition Act of 2008 (as added by subsection (a)(3)) to
participate as retail food stores under the supplemental nutrition
assistance program.
(d) Effective Date.--This section and the amendments made by this
section take effect on the date that is 30 days after the date of the
enactment of this Act.
SEC. 4002. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.
(a) In General.--Section 4(b)(6)(F) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended by striking ``2012'' and
inserting ``2018''.
(b) Feasibility Study for Indian Tribes.--Section 17 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2026) is amended by inserting at
the end the following:
``(l) Feasibility Study for Indian Tribes.--
``(1) In general.--The Secretary shall conduct a study to
determine the feasibility of a tribal demonstration project for
tribes, in lieu of State agencies or other administrating
entities, to administer Federal food assistance programs,
services, functions, and activities (or portions thereof).
``(2) Considerations.--In conducting the study, the
Secretary shall consider--
``(A) the probable effects on specific programs and
program beneficiaries of such a demonstration project;
``(B) statutory, regulatory, or other impediments
to implementation of such a demonstration project;
``(C) strategies for implementing such a
demonstration project;
``(D) probable costs or savings associated with
such a demonstration project;
``(E) methods to assure quality and accountability
in such a demonstration project; and
``(F) such other issues that may be determined by
the Secretary or developed through consultation
pursuant to paragraph (4).
``(3) Report.--Not later than 18 months after the date of
the enactment of this subsection, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that contains--
``(A) the results of the study under this
subsection;
``(B) a list of programs, services, functions, and
activities (or portions thereof) within each agency
that would be feasible to include in a tribal
demonstration project;
``(C) a list of programs, services, functions, and
activities (or portions thereof) included in the list
described in subparagraph (B) that could be included in
a tribal demonstration project without amending
existing law or without waiving regulations that the
Secretary may not waive; and
``(D) a list of legislative actions required in
order to include those programs, services, functions,
and activities (or portions thereof) included in the
list described in subparagraph (B) but not included in
the list described in subparagraph (C) in a tribal
demonstration project.
``(4) Consultation with indian tribes.--
``(A) In general.--Prior to consultation, the
Secretary shall consult with Indian tribes to determine
a protocol for consultation.
``(B) Requirements.--The protocol shall require, at
a minimum, that--
``(i) the government-to-government
relationship with Indian tribes forms the basis
for the consultation process;
``(ii) the Indian tribes and the Secretary
jointly conduct the consultations required by
this paragraph; and
``(iii) the consultation process allows for
separate and direct recommendations from the
Indian tribes and other entities referenced in
this subsection.''.
(c) Traditional and Locally Grown Food.--Section 4(b)(6) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)) is amended--
(1) by redesignating subparagraph (F) as subparagraph (G);
and
(2) by inserting after subparagraph (E) the following:
``(F) Traditional and locally grown food.--A tribe
that is authorized to administer the distribution
described in paragraph (1) shall have the option to use
5 percent of the program funding of the tribe to
promote local purchase of traditional and locally grown
food to be used in the food package of the tribe by
purchasing traditional and locally grown foods from
local Native American farmers, ranchers, and
producers.''.
SEC. 4003. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY
ASSISTANCE PAYMENTS.
(a) Standard Utility Allowances in the Supplemental Nutrition
Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
(1) in clause (i), by inserting ``, subject to clause
(iv)'' after ``Secretary''; and
(2) in clause (iv), by striking subclause (I) and inserting
the following:
``(I) In general.--Subject to
subclause (II), if a State agency
elects to use a standard utility
allowance that reflects heating and
cooling costs, the standard utility
allowance shall be made available to
households that have received a
payment, or on behalf of which a
payment has been made, under the Low-
Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) or other
similar energy assistance program, if
in the current month or during the
immediately preceding 12 months, the
household either has received a
payment, or a payment has been made on
behalf of the household, that is
greater than $10 annually, as
determined by the Secretary.''.
(b) Conforming Amendment.--Section 2605(f)(2)(A) of the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended
by inserting before the semicolon at the end ``, except that, for
purposes of the supplemental nutrition assistance program established
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such
payments or allowances were greater than $10 annually, consistent with
section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)),
as determined by the Secretary of Agriculture.''.
(c) Effective and Implementation Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect beginning on October 1, 2013, for all certification
periods beginning after that date.
(2) State option to delay implementation for current
recipients.--A State may, at the option of the State, implement
a policy that eliminates or minimizes the effect of the
amendments made by this section for households that receive a
standard utility allowance as of the date of enactment of this
Act for not more than a 180-day period beginning on the date on
which the amendments made by this section would otherwise
affect the benefits received by a household.
SEC. 4004. ELIGIBILITY DISQUALIFICATIONS.
Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C.
2015(e)(3)(B)) is amended by striking ``section'' and inserting the
following: ``section, subject to the condition that the course or
program of study--
``(i) is part of a program of career and
technical education (as defined in section 3 of
the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302)) that
may be completed in not more than 4 years at an
institution of higher education (as defined in
section 102 of the Higher Education Act of 1965
(20 U.S.C. 1002)); or
``(ii) is limited to remedial courses,
basic adult education, literacy, or English as
a second language;''.
SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS
FOR LOTTERY OR GAMBLING WINNERS.
(a) In General.--Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended by adding at the end the following:
``(r) Ineligibility for Benefits Due to Receipt of Substantial
Lottery or Gambling Winnings.--
``(1) In general.--Any household in which a member receives
substantial lottery or gambling winnings, as determined by the
Secretary, shall lose eligibility for benefits immediately upon
receipt of the winnings.
``(2) Duration of ineligibility.--A household described in
paragraph (1) shall remain ineligible for participation until
the household meets the allowable financial resources and
income eligibility requirements under subsections (c), (d),
(e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
``(3) Agreements.--As determined by the Secretary, each
State agency, to the maximum extent practicable, shall
establish agreements with entities responsible for the
regulation or sponsorship of gaming in the State to determine
whether individuals participating in the supplemental nutrition
assistance program have received substantial lottery or
gambling winnings.''.
(b) Conforming Amendments.--Section 5(a) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2014(a)) is amended in the second sentence by
striking ``sections 6(b), 6(d)(2), and 6(g)'' and inserting
``subsections (b), (d)(2), (g), and (r) of section 6''.
SEC. 4006. RETAIL FOOD STORES.
(a) Definition of Retail Food Store.--Subsection (o)(1)(A) of
section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) (as
redesignated by section 4018(a)(4)) is amended by striking ``at least
2'' and inserting ``at least 3''.
(b) Alternative Benefit Delivery.--Section 7(f) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Imposition of costs.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall require
participating retail food stores (including restaurants
participating in a State option restaurant program
intended to serve the elderly, disabled, and homeless)
to pay 100 percent of the costs of acquiring, and
arrange for the implementation of, electronic benefit
transfer point-of-sale equipment and supplies,
including related services.
``(B) Exemptions.--The Secretary may exempt from
subparagraph (A)--
``(i) farmers' markets and other direct-to-
consumer markets, military commissaries,
nonprofit food buying cooperatives, and
establishments, organizations, programs, or
group living arrangements described in
paragraphs (5), (7), and (8) of section 3(k);
and
``(ii) establishments described in
paragraphs (3), (4), and (9) of section 3(k),
other than restaurants participating in a State
option restaurant program.
``(C) Interchange fees.--Nothing in this paragraph
permits the charging of fees relating to the redemption
of supplemental nutrition assistance program benefits,
in accordance with subsection (h)(13).''; and
(2) by adding at the end the following:
``(4) Termination of manual vouchers.--
``(A) In general.--Effective beginning on the date
of enactment of this paragraph, except as provided in
subparagraph (B), no State shall issue manual vouchers
to a household that receives supplemental nutrition
assistance under this Act or allow retail food stores
to accept manual vouchers as payment, unless the
Secretary determines that the manual vouchers are
necessary, such as in the event of an electronic
benefit transfer system failure or a disaster
situation.
``(B) Exemptions.--The Secretary may exempt
categories of retail food stores or individual retail
food stores from subparagraph (A) based on criteria
established by the Secretary.
``(5) Unique identification number required.--
``(A) In general.--To enhance the anti-fraud
protections of the program, the Secretary shall require
all parties providing electronic benefit transfer
services to provide for and maintain unique terminal
identification number information through the
supplemental nutrition assistance program electronic
benefit transfer transaction routing system.
``(B) Regulations.--
``(i) In general.--Not earlier than 2 years
after the date of enactment of this paragraph,
the Secretary shall issue proposed regulations
to carry out this paragraph.
``(ii) Commercial practices.--In issuing
regulations to carry out this paragraph, the
Secretary shall consider existing commercial
practices for other point-of-sale debit
transactions.''.
(c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by
striking ``is operational--'' and all that follows through ``(ii) in
the case of other participating stores,'' and inserting ``is
operational''.
(d) Approval of Retail Food Stores and Wholesale Food Concerns.--
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is
amended--
(1) in the second sentence of subsection (a)(1)--
(A) in subparagraph (A), by inserting ``, including
the depth of stock, variety of staple food items, and
the sale of excepted items described in 3(k)(1)'' after
``applicant''; and
(B) by striking ``; and (C)'' and inserting ``; (C)
whether the applicant is located in an area with
significantly limited access to food; and (D)''; and
(2) by adding at the end the following:
``(g) EBT Service Requirement.--An approved retail food store shall
provide adequate EBT service as described in section 7(h)(3)(B).''.
SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE.
Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C.
2016(h)(8)) is amended--
(1) by striking the paragraph heading and inserting
``Replacement of cards.--'';
(2) by striking ``A State'' and inserting the following:
``(A) Fees.--A State''; and
(3) by adding after subparagraph (A) (as so designated by
paragraph (2)) the following:
``(B) Purposeful loss of cards.--
``(i) In general.--Subject to terms and
conditions established by the Secretary in
accordance with clause (ii), if a household
makes excessive requests for replacement of the
electronic benefit transfer card of the
household, the Secretary may require a State
agency to decline to issue a replacement card
to the household unless the household, upon
request of the State agency, provides an
explanation for the loss of the card.
``(ii) Requirements.--The terms and
conditions established by the Secretary shall
provide that--
``(I) the household be given the
opportunity to provide the requested
explanation and meet the requirements
under this paragraph promptly;
``(II) after an excessive number of
lost cards, the head of the household
shall be required to review program
rights and responsibilities with State
agency personnel authorized to make
determinations under section 5(a); and
``(III) any action taken, including
actions required under section 6(b)(2),
other than the withholding of the
electronic benefit transfer card until
an explanation described in subclause
(I) is provided, shall be consistent
with the due process protections under
section 6(b) or 11(e)(10), as
appropriate.
``(C) Protecting vulnerable persons.--In
implementing this paragraph, a State agency shall act
to protect homeless persons, persons with disabilities,
victims of crimes, and other vulnerable persons who
lose electronic benefit transfer cards but are not
intentionally committing fraud.
``(D) Effect on eligibility.--While a State may
decline to issue an electronic benefits transfer card
until a household satisfies the requirements under this
paragraph, nothing in this paragraph shall be
considered a denial of, or limitation on, the
eligibility for benefits under section 5.''.
SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.
(a) Mobile Technologies.--Section 7(h) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2016(h)) (as amended by section 4018(e)) is
amended by adding at the end the following:
``(14) Mobile technologies.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall approve retail food stores to redeem
benefits through electronic means other than wired
point of sale devices for electronic benefit transfer
transactions, if the retail food stores--
``(i) establish recipient protections
regarding privacy, ease of use, access, and
support similar to the protections provided for
transactions made in retail food stores;
``(ii) bear the costs of obtaining,
installing, and maintaining mobile
technologies, including mechanisms needed to
process EBT cards and transaction fees;
``(iii) demonstrate the foods purchased
with benefits issued under this section through
mobile technologies are purchased at a price
not higher than the price of the same food
purchased by other methods used by the retail
food store, as determined by the Secretary;
``(iv) provide adequate documentation for
each authorized transaction, as determined by
the Secretary; and
``(v) meet other criteria as established by
the Secretary.
``(B) Demonstration project on acceptance of
benefits of mobile transactions.--
``(i) In general.--Before authorizing
implementation of subparagraph (A) in all
States, the Secretary shall pilot the use of
mobile technologies determined by the Secretary
to be appropriate to test the feasibility and
implications for program integrity, by allowing
retail food stores to accept benefits from
recipients of supplemental nutrition assistance
through mobile transactions.
``(ii) Demonstration projects.--To be
eligible to participate in a demonstration
project under clause (i), a retail food store
shall submit to the Secretary for approval a
plan that includes--
``(I) a description of the
technology;
``(II) the manner by which the
retail food store will provide proof of
the transaction to households;
``(III) the provision of data to
the Secretary, consistent with
requirements established by the
Secretary, in a manner that allows the
Secretary to evaluate the impact of the
demonstration on participant access,
ease of use, and program integrity; and
``(IV) such other criteria as the
Secretary may require.
``(iii) Date of completion.--The
demonstration projects under this subparagraph
shall be completed and final reports submitted
to the Secretary by not later than July 1,
2015.
``(C) Report to congress.--The Secretary shall--
``(i) by not later than January 1, 2016,
authorize implementation of subparagraph (A) in
all States, unless the Secretary makes a
finding, based on the data provided under
subparagraph (B), that implementation in all
States is not in the best interest of the
supplemental nutrition assistance program; and
``(ii) if the determination made in clause
(i) is not to implement subparagraph (A) in all
States, submit a report to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate that includes the basis
of the finding.''.
(b) Acceptance of Benefits Through On-Line Transactions.--
(1) In general.--Section 7 of the Food and Nutrition Act of
2008 (7 U.S.C. 2016) is amended by adding at the end the
following:
``(k) Option To Accept Program Benefits Through On-Line
Transactions.--
``(1) In general.--Subject to paragraph (4), the Secretary
shall approve retail food stores to accept benefits from
recipients of supplemental nutrition assistance through on-line
transactions.
``(2) Requirements to accept benefits.--A retail food store
seeking to accept benefits from recipients of supplemental
nutrition assistance through on-line transactions shall--
``(A) establish recipient protections regarding
privacy, ease of use, access, and support similar to
the protections provided for transactions made in
retail food stores;
``(B) ensure benefits are not used to pay delivery,
ordering, convenience, or other fees or charges;
``(C) clearly notify participating households at
the time a food order is placed--
``(i) of any delivery, ordering,
convenience, or other fee or charge associated
with the food purchase; and
``(ii) that any such fee cannot be paid
with benefits provided under this Act;
``(D) ensure the security of on-line transactions
by using the most effective technology available that
the Secretary considers appropriate and cost-effective
and that is comparable to the security of transactions
at retail food stores; and
``(E) meet other criteria as established by the
Secretary.
``(3) State agency action.--Each State agency shall ensure
that recipients of supplemental nutrition assistance can use
benefits on-line as described in this subsection as
appropriate.
``(4) Demonstration project on acceptance of benefits
through on-line transactions.--
``(A) In general.--Before the Secretary authorizes
implementation of paragraph (1) in all States, the
Secretary shall carry out a number of demonstration
projects as determined by the Secretary to test the
feasibility of allowing retail food stores to accept
benefits through on-line transactions.
``(B) Demonstration projects.--To be eligible to
participate in a demonstration project under
subparagraph (A), a retail food store shall submit to
the Secretary for approval a plan that includes--
``(i) a method of ensuring that benefits
may be used to purchase only eligible items
under this Act;
``(ii) a description of the method of
educating participant households about the
availability and operation of on-line
purchasing;
``(iii) adequate testing of the on-line
purchasing option prior to implementation;
``(iv) the provision of data as requested
by the Secretary for purposes of analyzing the
impact of the project on participant access,
ease of use, and program integrity;
``(v) reports on progress, challenges, and
results, as determined by the Secretary; and
``(vi) such other criteria, including
security criteria, as established by the
Secretary.
``(C) Date of completion.--The demonstration
projects under this paragraph shall be completed and
final reports submitted to the Secretary by not later
than July 1, 2015.
``(5) Report to congress.--The Secretary shall--
``(A) by not later than January 1, 2016, authorize
implementation of paragraph (1) in all States, unless
the Secretary makes a finding, based on the data
provided under paragraph (4), that implementation in
all States is not in the best interest of the
supplemental nutrition assistance program; and
``(B) if the determination made in subparagraph (A)
is not to implement in all States, submit a report to
the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate that includes the
basis of the finding.''.
(2) Conforming amendments.--
(A) Section 7(b) of the Food and Nutrition Act of
2008 (7 U.S.C. 2016(b)) is amended by striking
``purchase food in retail food stores'' and inserting
``purchase food from retail food stores''.
(B) Section 10 of the Food and Nutrition Act of
2008 (7 U.S.C. 2019) is amended in the first sentence
by inserting ``retail food stores authorized to accept
and redeem benefits through on-line transactions shall
be authorized to accept benefits prior to the delivery
of food if the delivery occurs within a reasonable time
of the purchase, as determined by the Secretary,''
after ``food so purchased,''.
(c) Savings Clause.--Nothing in this section or an amendment made
by this section alter any requirements of the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) unless specifically authorized in this
section or an amendment made by this section.
SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED
AGRICULTURE SHARE.
Subsection (o)(4) of section 3 of the Food and Nutrition Act of
2008 (7 U.S.C. 2012) (as redesignated by section 4018(a)(4)) is amended
by inserting ``, or agricultural producers who market agricultural
products directly to consumers'' after ``such food''.
SEC. 4010. RESTAURANT MEALS PROGRAM.
(a) In General.--Section 11(e) of the Food and Nutrition Act of
2008 (7 U.S.C. 2020(e)) is amended--
(1) in paragraph (22), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(3) by adding at the end the following:
``(24) if the State elects to carry out a program to
contract with private establishments to offer meals at
concessional prices, as described in paragraphs 3, 4, and 9 of
section 3(k)--
``(A) the plans of the State agency for operating
the program, including--
``(i) documentation of a need that eligible
homeless, elderly, and disabled clients are
underserved in a particular geographic area;
``(ii) the manner by which the State agency
will limit participation to only those private
establishments that the State determines
necessary to meet the need identified in clause
(i); and
``(iii) any other conditions the Secretary
may prescribe, such as the level of security
necessary to ensure that only eligible
recipients participate in the program; and
``(B) a report by the State agency to the Secretary
annually, the schedule of which shall be established by
the Secretary, that includes--
``(i) the number of households and
individual recipients authorized to participate
in the program, including any information on
whether the individual recipient is elderly,
disabled, or homeless; and
``(ii) an assessment of whether the program
is meeting an established need, as documented
under subparagraph (A)(i).''.
(b) Approval of Retail Food Stores and Wholesale Food Concerns.--
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) (as
amended by section 4005(d)(3)) is amended by adding at the end the
following:
``(h) Private Establishments.--
``(1) In general.--Subject to paragraph (2), no private
establishment that contracts with a State agency to offer meals
at concessional prices as described in paragraphs 3, 4, and 9
of section 3(k) may be authorized to accept and redeem benefits
unless the Secretary determines that the participation of the
private establishment is required to meet a documented need in
accordance with section 11(e)(24).
``(2) Existing contracts.--
``(A) In general.--If, on the day before the date
of enactment of this subsection, a State has entered
into a contract with a private establishment described
in paragraph (1) and the Secretary has not determined
that the participation of the private establishment is
necessary to meet a documented need in accordance with
section 11(e)(24), the Secretary shall allow the
operation of the private establishment to continue
without that determination of need for a period not to
exceed 180 days from the date on which the Secretary
establishes determination criteria, by regulation,
under section 11(e)(24).
``(B) Justification.--If the Secretary makes a
determination to terminate a contract with a private
establishment that is in effect on the date of
enactment of this subsection, the Secretary shall
provide justification to the State in which the private
establishment is located for that termination.
``(3) Report to congress.--Not later than 90 days after
September 30, 2013, and 90 days after the last day of each
fiscal year thereafter, the Secretary shall report to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate on the effectiveness of a program under this subsection
using any information received from States under section
11(e)(24) as well as any other information the Secretary may
have relating to the manner in which benefits are used.''.
(c) Conforming Amendments.--Section 3(k) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting ``subject to
section 9(h)'' after ``concessional prices'' each place it appears.
SEC. 4011. QUALITY CONTROL STANDARDS.
(a) In General.--Section 16(c)(1)(D)(i) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is amended by striking
subclause (I).
(b) Conforming Amendments.--
(1) Section 13(a)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2022(a)(1)) is amended in the first sentence by
striking ``section 16(c)(1)(D)(i)(III)'' and inserting
``section 16(c)(1)(D)(i)(II)''.
(2) Section 16(c)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2025(c)(1)) is amended--
(A) in subparagraph (D)(i)--
(i) by redesignating subclauses (II)
through (IV) as subclauses (I) through (III),
respectively; and
(ii) in subclause (III) (as so
redesignated), by striking ``through (III)''
and inserting ``and (II)'';
(B) in subparagraph (E)(i), by striking
``(D)(i)(III)'' and inserting ``(D)(i)(II)''; and
(C) in subparagraph (F), by striking ``(D)(i)(II)''
each place it appears and inserting ``(D)(i)(I)''.
SEC. 4012. PERFORMANCE BONUS PAYMENTS.
Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(d)) is amended by adding at the end the following:
``(5) Use of performance bonus payments.--A State agency
may use a performance bonus payment received under this
subsection only to carry out the program established under this
Act, including investments in--
``(A) technology;
``(B) improvements in administration and
distribution; and
``(C) actions to prevent fraud, waste, and
abuse.''.
SEC. 4013. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.
Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)(1)(A)) is amended by striking ``section 18(a)(1), $90,000,000''
and all that follows through the end of the subparagraph and inserting
``section 18(a)(1)--
``(i) for each of fiscal years 2014 through
2017, $90,000,000; and
``(ii) for fiscal year 2018 and each fiscal
year thereafter, $80,000,000.''.
SEC. 4014. AUTHORIZATION OF APPROPRIATIONS.
Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2027(a)(1)) is amended in the first sentence by striking ``2012'' and
inserting ``2018''.
SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)(B)--
(i) in clause (i)--
(I) in subclause (I), by inserting
after ``individuals'' the following:
``through food distribution, community
outreach to assist in participation in
Federally assisted nutrition programs,
or improving access to food as part of
a comprehensive service;''; and
(II) in subclause (III), by
inserting ``food access,'' after
``food,''; and
(ii) in clause (ii), by striking subclause
(I) and inserting the following:
``(I) equipment necessary for the
efficient operation of a project;'';
and
(B) by striking paragraph (2) and inserting the
following:
``(2) Hunger-free communities goal.--The term `hunger-free
communities goal' means any of the 14 goals described in House
Concurrent Resolution 302, 102nd Congress, agreed to October 5,
1992.'';
(2) in subsection (c)--
(A) in the matter preceding paragraph (1), by
inserting ``public food program service provider or a''
before ``private'';
(B) in paragraph (1)--
(i) in subparagraph (A), by striking ``or''
after the semicolon at the end;
(ii) in subparagraph (B), by inserting
``or'' after the semicolon at the end; and
(iii) by adding at the end the following:
``(C) efforts to reduce food insecurity in the
community, including food distribution, improving
access to services, or coordinating services and
programs;'';
(C) in paragraph (2), by striking ``and'' after the
semicolon at the end;
(D) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(E) by adding at the end the following:
``(4) collaborate with 1 or more local partner
organizations to achieve at least 1 hunger-free communities
goal.'';
(3) in subsection (d)--
(A) in paragraph (3), by striking ``or'' after the
semicolon at the end;
(B) in paragraph (4), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following:
``(5) develop new resources and strategies to help reduce
food insecurity in the community and prevent food insecurity in
the future by--
``(A) developing creative food resources;
``(B) coordinating food services with park and
recreation programs and other community-based outlets
to reduce barriers to access; or
``(C) creating nutrition education programs for at-
risk populations to enhance food-purchasing and food-
preparation skills and to heighten awareness of the
connection between diet and health.'';
(4) in subsection (f)(2), by striking ``3 years'' and
inserting ``5 years''; and
(5) by striking subsections (h) and (i) and inserting the
following:
``(h) Reports to Congress.--Not later than September 30, 2014, and
each year thereafter, the Secretary shall submit to Congress a report
that describes each grant made under this section, including--
``(1) a description of any activity funded;
``(2) the degree of success of each activity funded in
achieving hunger-free community goals; and
``(3) the degree of success in improving the long-term
capacity of a community to address food and agriculture
problems related to hunger or access to healthy food.''.
SEC. 4016. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
(1) in paragraph (1), by striking ``2008 through 2012'' and
inserting ``2014 through 2018'';
(2) by striking paragraph (2) and inserting the following:
``(2) Amounts.--The Secretary shall use to carry out
paragraph (1)--
``(A) for fiscal year 2013, $265,750,000; and
``(B) for each subsequent fiscal year, the dollar
amount of commodities specified in subparagraph (A)
adjusted by the percentage by which the thrifty food
plan has been adjusted under section 3(u)(4) between
June 30, 2013, and June 30 of the immediately preceding
fiscal year, and subsequently increased by--
``(i) for fiscal year 2014, $22,000,000;
``(ii) for fiscal year 2015, $18,000,000;
``(iii) for fiscal year 2016, $10,000,000;
and
``(iv) for fiscal year 2017, $4,000,000.'';
and
(3) by adding at the end the following:
``(3) Funds availability.--For purposes of the funds
described in this subsection, the Secretary shall--
``(A) make the funds available for 2 fiscal years;
and
``(B) allow States to carry over unexpended
balances to the next fiscal year pursuant to such terms
and conditions as are determined by the Secretary.''.
(b) Emergency Food Program Infrastructure Grants.--Section 209(d)
of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is
amended by striking ``2012'' and inserting ``2018''.
SEC. 4017. NUTRITION EDUCATION.
Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
2036a(b)) is amended by inserting ``and physical activity'' after
``healthy food choices''.
SEC. 4018. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is
amended by adding at the end the following:
``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
``(a) Purpose.--The purpose of this section is to provide the
Department of Agriculture with additional resources to prevent
trafficking in violation of this Act by strengthening recipient and
retail food store program integrity.
``(b) Use of Funds.--
``(1) In general.--Additional funds are provided under this
section to supplement the retail food store and recipient
integrity activities of the Department.
``(2) Information technologies.--The Secretary shall use an
appropriate amount of the funds provided under this section to
employ information technologies known as data mining and data
warehousing and other available information technologies to
administer the supplemental nutrition assistance program and
enforce regulations promulgated under section 4(c).
``(c) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $12,000,000 for
each of fiscal years 2014 through 2018.
``(2) Mandatory funding.--
``(A) In general.--Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out
this section not less than $5,000,000 for fiscal year
2014, to remain available until expended.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this section the funds transferred under
subparagraph (A), without further appropriation.
``(C) Maintenance of funding.--The funding provided
under subparagraph (A) shall supplement (and not
supplant) other Federal funding for programs carried
out under this Act.''.
SEC. 4019. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)
is amended--
(1) in subsection (g), by striking ``coupon,'' and
inserting ``coupon'';
(2) in subsection (k)(7), by striking ``or are'' and
inserting ``and'';
(3) by striking subsection (l);
(4) by redesignating subsections (m) through (t) as
subsections (l) through (s), respectively; and
(5) by inserting after subsection (s) (as so redesignated)
the following:
``(t) `Supplemental nutrition assistance program' means the program
operated pursuant to this Act.''.
(b) Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2013(a)) is amended in the last sentence by striking ``benefits'' and
inserting ``Benefits''.
(c) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014)
is amended--
(1) in the last sentence of subsection (i)(2)(D), by
striking ``section 13(b)(2)'' and inserting ``section 13(b)'';
and
(2) in subsection (k)(4)(A), by striking ``paragraph
(2)(H)'' and inserting ``paragraph (2)(G)''.
(d) Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(d)(4)) is amended in subparagraphs (B)(vii) and (F)(iii) by
indenting both clauses appropriately.
(e) Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
2016(h)) is amended by redesignating the second paragraph (12)
(relating to interchange fees) as paragraph (13).
(f) Section 9(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2018(a)) is amended by indenting paragraph (3) appropriately.
(g) Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C.
2021) is amended--
(1) in subsection (b)(3)(C), by striking ``civil money
penalties'' and inserting ``civil penalties''; and
(2) in subsection (g)(1), by striking ``(7 U.S.C. 1786)''
and inserting ``(42 U.S.C. 1786)''.
(h) Section 15(b)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2024(b)(1)) is amended in the first sentence by striking ``an
benefit'' and inserting ``a benefit''.
(i) Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(a)) is amended in the proviso following paragraph (8) by striking
``as amended.''.
(j) Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C.
2027(e)) is amended in the first sentence by striking ``sections 7(f)''
and inserting ``section 7(f)''.
(k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008
(7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by
striking ``Food benefits'' and inserting ``Benefits''.
(l) Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7
U.S.C. 2035(f)(3)(C)) is amended by striking ``subsection'' and
inserting ``subsections''.
(m) Section 27(a)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036(a)(1)) is amended by striking ``(Public Law 98-8; 7 U.S.C.
612c note)'' and inserting ``(7 U.S.C. 7515)''.
(n) Section 509 of the Older Americans Act of 1965 (42 U.S.C.
3056g) is amended in the section heading by striking ``food stamp
programs'' and inserting ``supplemental nutrition assistance
programs''.
(o) Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act
of 2008 (Public Law 110-246; 122 Stat. 1871) is amended by striking
``531'' and inserting ``454''.
SEC. 4020. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN CONVICTED FELONS.
Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) (as
amended by section 4004) is amended by adding at the end the following:
``(s) Disqualification for Certain Convicted Felons.--
``(1) In general.--An individual shall not be eligible for
benefits under this Act if the individual is convicted of--
``(A) aggravated sexual abuse under section 2241 of
title 18, United States Code;
``(B) murder under section 1111 of title 18, United
States Code;
``(C) an offense under chapter 110 of title 18,
United States Code;
``(D) a Federal or State offense involving sexual
assault, as defined in 40002(a) of the Violence Against
Women Act of 1994 (42 U.S.C. 13925(a)); or
``(E) an offense under State law determined by the
Attorney General to be substantially similar to an
offense described in subparagraph (A), (B), or (C).
``(2) Effects on assistance and benefits for others.--The
amount of benefits otherwise required to be provided to an
eligible household under this Act shall be determined by
considering the individual to whom paragraph (1) applies not to
be a member of such household, except that the income and
resources of the individual shall be considered to be income
and resources of the household.
``(3) Enforcement.--Each State shall require each
individual applying for benefits under this Act, during the
application process, to state, in writing, whether the
individual, or any member of the household of the individual,
has been convicted of a crime described in paragraph (1).''.
Subtitle B--Commodity Distribution Programs
SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.
Section 4(a) of the Agriculture and Consumer Protection Act of 1973
(7 U.S.C. 612c note; Public Law 93-86) is amended in the first sentence
by striking ``2012'' and inserting ``2018''.
SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
Section 5 of the Agriculture and Consumer Protection Act of 1973 (7
U.S.C. 612c note; Public Law 93-86) is amended--
(1) in paragraphs (1) and (2)(B) of subsection (a), by
striking ``2012'' each place it appears and inserting ``2018'';
(2) in the first sentence of subsection (d)(2), by striking
``2012'' and inserting ``2018'';
(3) by striking subsection (g) and inserting the following:
``(g) Eligibility.--Except as provided in subsection (m), the
States shall only provide assistance under the commodity supplemental
food program to low-income persons aged 60 and older.''; and
(4) by adding at the end the following:
``(m) Phase-Out.--Notwithstanding any other provision of law, an
individual who receives assistance under the commodity supplemental
food program on the day before the date of enactment of this subsection
shall continue to receive that assistance until the date on which the
individual is no longer eligible for assistance under the eligibility
requirements for the program in effect on the day before the date of
enactment of this subsection.''.
SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION
PROJECTS.
Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7
U.S.C. 1431e(2)(A)) is amended in the first sentence by striking
``2012'' and inserting ``2018''.
SEC. 4104. PROCESSING OF COMMODITIES.
(a) In General.--Section 17 of the Commodity Distribution Reform
Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237)
is amended--
(1) in the section heading, by inserting ``and processing''
after ``donations''; and
(2) by adding at the end the following:
``(c) Processing.--
``(1) In general.--For any program included under
subsection (b), the Secretary may, notwithstanding any other
provision of Federal or State law relating to the procurement
of goods and services--
``(A) retain title to commodities delivered to a
processor, on behalf of a State (including a State
distributing agency and a recipient agency), until such
time as end products containing the commodities, or
similar commodities as approved by the Secretary, are
delivered to a State distributing agency or to a
recipient agency; and
``(B) promulgate regulations to ensure
accountability for commodities provided to a processor
for processing into end products, and to facilitate
processing of commodities into end products for use by
recipient agencies.
``(2) Regulations.--The regulations described in paragraph
(1)(B) may provide that--
``(A) a processor that receives commodities for
processing into end products, or provides a service
with respect to the commodities or end products, in
accordance with the agreement of the processor with a
State distributing agency or a recipient agency,
provide to the Secretary a bond or other means of
financial assurance to protect the value of the
commodities; and
``(B) in the event a processor fails to deliver to
a State distributing agency or a recipient agency an
end product in conformance with the processing
agreement entered into under this Act, the Secretary--
``(i) take action with respect to the bond
or other means of financial assurance pursuant
to regulations promulgated under this
subsection; and
``(ii) distribute any proceeds obtained by
the Secretary to 1 or more State distributing
agencies and recipient agencies, as determined
appropriate by the Secretary.''.
(b) Definitions.--Section 18 of the Commodity Distribution Reform
Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237)
is amended by striking paragraphs (1) and (2) and inserting the
following:
``(1) Commodities.--The term `commodities' means
agricultural commodities and their products that are donated by
the Secretary for use by recipient agencies.
``(2) End product.--The term `end product' means a food
product that contains processed commodities.''.
(c) Technical and Conforming Amendments.--Section 3 of the
Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C.
612c note; Public Law 100-237) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking subparagraph (B)
and inserting the following:
``(B) the program established under section 4(b) of
the Food and Nutrition Act of 2008 (7 U.S.C.
2013(b));''; and
(B) in paragraph (3)(D), by striking ``the
Committee on Education and Labor'' and inserting ``the
Committee on Education and the Workforce'';
(2) in subsection (b)(1)(A)(ii), by striking ``section 32
of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)'' and
inserting ``section 32 of the Act of August 24, 1935 (7 U.S.C.
612c)'';
(3) in subsection (e)(1)(D)(iii), by striking subclause
(II) and inserting the following:
``(II) the program established
under section 4(b) of the Food and
Nutrition Act of 2008 (7 U.S.C.
2013(b));''; and
(4) in subsection (k), by striking ``the Committee on
Education and Labor'' and inserting ``the Committee on
Education and the Workforce''.
Subtitle C--Miscellaneous
SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO
SCHOOLS AND SERVICE INSTITUTIONS.
Section 10603(b) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 612c-4(b)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 4202. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
Section 4402(a) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 3007(a)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 4203. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.
Section 4403 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 3171 note; Public Law 107-171) is repealed.
SEC. 4204. HUNGER-FREE COMMUNITIES.
Section 4405 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 7517) is amended to read as follows:
``SEC. 4405. HUNGER-FREE COMMUNITIES.
``(a) In General.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a nonprofit organization (including an
emergency feeding organization);
``(B) an agricultural cooperative;
``(C) a producer network or association;
``(D) a community health organization;
``(E) a public benefit corporation;
``(F) an economic development corporation;
``(G) a farmers' market;
``(H) a community-supported agriculture program;
``(I) a buying club;
``(J) a retail food store participating in the
supplemental nutrition assistance program;
``(K) a State, local, or tribal agency; and
``(L) any other entity the Secretary designates.
``(2) Emergency feeding organization.--The term `emergency
feeding organization' has the meaning given the term in section
201A of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501).
``(3) Supplemental nutrition assistance program.--The term
`supplemental nutrition assistance program' means the
supplemental nutrition assistance program established under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(b) Hunger-Free Communities Incentive Grants.--
``(1) Authorization.--
``(A) In general.--In each of the years specified
in subsection (c), the Secretary shall make grants to
eligible entities in accordance with paragraph (2).
``(B) Federal share.--The Federal share of the cost
of carrying out an activity under this subsection shall
not exceed 50 percent of the total cost of the
activity.
``(C) Non-federal share.--
``(i) In general.--The non-Federal share of
the cost of an activity under this subsection
may be provided--
``(I) in cash or in-kind
contributions as determined by the
Secretary, including facilities,
equipment, or services; and
``(II) by a State or local
government or a private source.
``(ii) Limitation.--In the case of a for-
profit entity, the non-Federal share described
in clause (i) shall not include services of an
employee, including salaries paid or expenses
covered by the employer.
``(2) Criteria.--
``(A) In general.--For purposes of this subsection,
an eligible entity is a governmental agency or
nonprofit organization that--
``(i) meets the application criteria set
forth by the Secretary; and
``(ii) proposes a project that, at a
minimum--
``(I) has the support of the State
agency;
``(II) would increase the purchase
of fruits and vegetables by low-income
consumers participating in the
supplemental nutrition assistance
program by providing incentives at the
point of purchase;
``(III) agrees to participate in
the evaluation described in paragraph
(4);
``(IV) ensures that the same terms
and conditions apply to purchases made
by individuals with benefits issued
under this Act and incentives provided
for in this subsection as apply to
purchases made by individuals who are
not members of households receiving
benefits, such as provided for in
section 278.2(b) of title 7, Code of
Federal Regulations (or a successor
regulation); and
``(V) includes effective and
efficient technologies for benefit
redemption systems that may be
replicated in other for States and
communities.
``(B) Priority.--In awarding grants under this
section, the Secretary shall give priority to projects
that--
``(i) maximize the share of funds used for
direct incentives to participants;
``(ii) use direct-to-consumer sales
marketing;
``(iii) demonstrate a track record of
designing and implementing successful nutrition
incentive programs that connect low-income
consumers and agricultural producers;
``(iv) provide locally or regionally
produced fruits and vegetables;
``(v) are located in underserved
communities; or
``(vi) address other criteria as
established by the Secretary.
``(3) Applicability.--
``(A) In general.--The value of any benefit
provided to a participant in any activity funded under
this subsection shall not be considered income or
resources for any purpose under any Federal, State, or
local law.
``(B) Prohibition on collection of sales taxes.--
Each State shall ensure that no State or local tax is
collected on a purchase of food under this subsection.
``(C) No limitation on benefits.--A grant made
available under this subsection shall not be used to
carry out any project that limits the use of benefits
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011
et seq.) or any other Federal nutrition law.
``(D) Household allotment.--Assistance provided
under this subsection to households receiving benefits
under the supplemental nutrition assistance program
shall not--
``(i) be considered part of the
supplemental nutrition assistance program
benefits of the household; or
``(ii) be used in the collection or
disposition of claims under section 13 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2022).
``(4) Evaluation.--
``(A) Independent evaluation.--The Secretary shall
provide for an independent evaluation of projects
selected under this subsection that measures the impact
of each project on--
``(i) improving the nutrition and health
status of participating households receiving
incentives under this subsection; and
``(ii) increasing fruit and vegetable
purchases in participating households.
``(B) Requirement.--The independent evaluation
under subparagraph (A) shall use rigorous methodologies
capable of producing scientifically valid information
regarding the effectiveness of a project.
``(C) Costs.--The Secretary may use funds not to
exceed 10 percent of the funding provided to carry out
this section to pay costs associated with
administering, monitoring, and evaluating each project.
``(c) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out subsection (b) $5,000,000 for
each of fiscal years 2014 through 2018.
``(2) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out
subsection (b)--
``(A) $15,000,000 for fiscal year 2014;
``(B) $20,000,000 for each of fiscal years 2015
through 2017; and
``(C) $25,000,000 for fiscal year 2018.''.
SEC. 4205. HEALTHY FOOD FINANCING INITIATIVE.
Subtitle D of title II of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is amended by adding
at the end the following:
``SEC. 242. HEALTHY FOOD FINANCING INITIATIVE.
``(a) Purpose.--The purpose of this section is to enhance the
authorities of the Secretary to support efforts to provide access to
healthy food by establishing an initiative to improve access to healthy
foods in underserved areas, to create and preserve quality jobs, and to
revitalize low-income communities by providing loans and grants to
eligible fresh, healthy food retailers to overcome the higher costs and
initial barriers to entry in underserved areas.
``(b) Definitions.--In this section:
``(1) Community development financial institution.--The
term `community development financial institution' has the
meaning given the term in section 103 of the Community
Development Banking and Financial Institutions Act of 1994 (12
U.S.C. 4702).
``(2) Initiative.--The term `Initiative' means the Healthy
Food Financing Initiative established under subsection (c)(1).
``(3) National fund manager.--The term `national fund
manager' means a community development financial institution
that is--
``(A) in existence on the date of enactment of this
section; and
``(B) certified by the Community Development
Financial Institution Fund of the Department of the
Treasury to manage the Initiative for purposes of--
``(i) raising private capital;
``(ii) providing financial and technical
assistance to partnerships; and
``(iii) funding eligible projects to
attract fresh, healthy food retailers to
underserved areas, in accordance with this
section.
``(4) Partnership.--The term `partnership' means a
regional, State, or local public-private partnership that--
``(A) is organized to improve access to fresh,
healthy foods;
``(B) provides financial and technical assistance
to eligible projects; and
``(C) meets such other criteria as the Secretary
may establish.
``(5) Perishable food.--The term `perishable food' means a
staple food that is fresh, refrigerated, or frozen.
``(6) Quality job.--The term `quality job' means a job that
provides wages and other benefits comparable to, or better
than, similar positions in existing businesses of similar size
in similar local economies.
``(7) Staple food.--
``(A) In general.--The term `staple food' means
food that is a basic dietary item.
``(B) Inclusions.--The term `staple food'
includes--
``(i) bread;
``(ii) flour;
``(iii) fruits;
``(iv) vegetables; and
``(v) meat.
``(c) Initiative.--
``(1) Establishment.--The Secretary shall establish an
initiative to achieve the purpose described in subsection (a)
in accordance with this subsection.
``(2) Implementation.--
``(A) In general.--
``(i) In general.--In carrying out the
Initiative, the Secretary shall provide funding
to entities with eligible projects, as
described in subparagraph (B), subject to the
priorities described in subparagraph (C).
``(ii) Use of funds.--Funds provided to an
entity pursuant to clause (i) shall be used--
``(I) to create revolving loan
pools of capital or other products to
provide loans to finance eligible
projects or partnerships;
``(II) to provide grants for
eligible projects or partnerships;
``(III) to provide technical
assistance to funded projects and
entities seeking Initiative funding;
and
``(IV) to cover administrative
expenses of the national fund manager
in an amount not to exceed 10 percent
of the Federal funds provided.
``(B) Eligible projects.--Subject to the approval
of the Secretary, the national fund manager shall
establish eligibility criteria for projects under the
Initiative, which shall include the existence or
planned execution of agreements--
``(i) to expand or preserve the
availability of staple foods in underserved
areas with moderate- and low-income populations
by maintaining or increasing the number of
retail outlets that offer an assortment of
perishable food and staple food items, as
determined by the Secretary, in those areas;
and
``(ii) to accept benefits under the
supplemental nutrition assistance program
established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.).
``(C) Priorities.--In carrying out the Initiative,
priority shall be given to projects that--
``(i) are located in severely distressed
low-income communities, as defined by the
Community Development Financial Institutions
Fund of the Department of the Treasury; and
``(ii) include 1 or more of the following
characteristics:
``(I) The project will create or
retain quality jobs for low-income
residents in the community.
``(II) The project supports
regional food systems and locally grown
foods, to the maximum extent
practicable.
``(III) In areas served by public
transit, the project is accessible by
public transit.
``(IV) The project involves women-
or minority-owned businesses.
``(V) The project receives funding
from other sources, including other
Federal agencies.
``(VI) The project otherwise
advances the purpose of this section,
as determined by the Secretary.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $125,000,000,
to remain available until expended.''.
SEC. 4206. PULSE CROP PRODUCTS.
(a) Purpose.--The purpose of this section is to encourage greater
awareness and interest in the number and variety of pulse crop products
available to schoolchildren, as recommended by the most recent Dietary
Guidelines for Americans published under section 301 of the National
Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341).
(b) Definitions.--In this section:
(1) Eligible pulse crop.--The term ``eligible pulse crop''
means dry beans, dry peas, lentils, and chickpeas.
(2) Pulse crop product.--The term ``pulse crop product''
means a food product derived in whole or in part from an
eligible pulse crop.
(c) Purchase of Pulse Crops and Pulse Crop Products.--In addition
to the commodities delivered under section 6 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1755), the Secretary shall
purchase eligible pulse crops and pulse crop products for use in--
(1) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
and
(2) the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(d) Evaluation.--Not later than September 30, 2016, the Secretary
shall conduct an evaluation of the activities conducted under
subsection (c), including--
(1) an evaluation of whether children participating in the
school lunch and breakfast programs described in subsection (c)
increased overall consumption of eligible pulse crops as a
result of the activities;
(2) an evaluation of which eligible pulse crops and pulse
crop products are most acceptable for use in the school lunch
and breakfast programs;
(3) any recommendations of the Secretary regarding the
integration of the use of pulse crop products in carrying out
the school lunch and breakfast programs;
(4) an evaluation of any change in the nutrient composition
in the school lunch and breakfast programs due to the
activities; and
(5) an evaluation of any other outcomes determined to be
appropriate by the Secretary.
(e) Report.--As soon as practicable after the completion of the
evaluation under subsection (d), the Secretary shall submit to the
Committee on Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Education and the Workforce of the House of Representative
a report describing the results of the evaluation.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000, to remain available
until expended.
SEC. 4207. DIETARY GUIDELINES FOR AMERICANS.
Section 301(a) of the National Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341(a)) is amended by adding at the end
the following:
``(3) Pregnant women and young children.--Not later than
the 2020 report and in each report thereafter, the Secretaries
shall include national nutritional and dietary information and
guidelines for pregnant women and children from birth until the
age of 2.''.
SEC. 4208. PURCHASES OF LOCALLY PRODUCED FOODS.
Section 9(j) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(j)) is amended--
(1) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and indenting the
subparagraphs appropriately;
(2) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(3) in paragraph (1) (as so redesignated)--
(A) in subparagraph (B)--
(i) by striking ``paragraph (1) of the
policy described in that paragraph and
paragraph (3)'' and inserting ``subparagraph
(A) of the policy described in that
subparagraph and subparagraph (C)''; and
(ii) by striking ``and'' at the end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) not later than 1 year after the date of
enactment of this subparagraph, in accordance with
paragraphs (2) and (3), conduct not fewer than 5
demonstration projects through school food authorities
receiving funds under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.) to facilitate the
purchase of unprocessed and minimally processed locally
grown and locally raised agricultural products.''; and
(4) by adding at the end the following:
``(2) Selection.--In conducting demonstration projects
under paragraph (1)(D), the Secretary shall ensure that at
least 1 project is located in a State in each of--
``(A) the Pacific Northwest Region;
``(B) the Northeast Region;
``(C) the Western Region;
``(D) the Midwest Region; and
``(E) the Southern Region.
``(3) Priority.--In selecting States for participation in
the demonstration projects under paragraph (2), the Secretary
shall prioritize applications based on--
``(A) the quantity and variety of growers of local
fruits and vegetables in the State;
``(B) the demonstrated commitment of the State to
farm-to-school efforts, as evidenced by prior efforts
to increase and promote farm-to- school programs in the
State; and
``(C) whether the State contains a sufficient
quantity of school districts of varying population
sizes and geographical locations.''.
SEC. 4209. MULTIAGENCY TASK FORCE.
Subtitle D of title II of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended by
section 4205) is amended by adding at the end the following:
``SEC. 243. MULTIAGENCY TASK FORCE.
``(a) In General.--The Secretary shall establish, in the office of
the Under Secretary for Food, Nutrition, and Consumer Services, a
multiagency task force for the purpose of providing coordination and
direction for commodity programs.
``(b) Composition.--The Task Force shall be composed of at least 4
members, including--
``(1) a representative from the Food Distribution Division
of the Food and Nutrition Service, who shall--
``(A) be appointed by the Under Secretary for Food,
Nutrition, and Consumer Services; and
``(B) serve as Chairperson of the Task Force;
``(2) at least 1 representative from the Agricultural
Marketing Service, who shall be appointed by the Under
Secretary for Marketing and Regulatory Programs;
``(3) at least 1 representative from the Farm Services
Agency, who shall be appointed by the Under Secretary for Farm
and Foreign Agricultural Services; and
``(4) at least 1 representative from the Food Safety and
Inspection Service, who shall be appointed by the Under
Secretary for Food Safety.
``(c) Duties.--
``(1) In general.--The Task Force shall be responsible for
evaluation and monitoring of the commodity programs to ensure
that the commodity programs meet the mission of the
Department--
``(A) to support the United States farm sector; and
``(B) to contribute to the health and well-being of
individuals in the United States through the
distribution of domestic agricultural products through
commodity programs.
``(2) Specific duties.--In carrying out paragraph (1), the
Task Force shall--
``(A) review and make recommendations regarding the
specifications used for the procurement of food
commodities;
``(B) review and make recommendations regarding the
efficient and effective distribution of food
commodities; and
``(C) review and make recommendations regarding the
degree to which the quantity, quality, and
specifications of procured food commodities align the
needs of producers and the preferences of recipient
agencies.
``(d) Reports.--Not later than 1 year after the date of enactment
of this section, and annually thereafter, the Secretary shall submit to
Congress a report that describes, for the period covered by the
report--
``(1) the findings and recommendations of the Task Force;
and
``(2) policies implemented for the improvement of commodity
procurement programs.''.
SEC. 4210. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.
Subtitle D of title II of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended by
section 4209) is amended by adding at the end the following:
``SEC. 244. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.
``(a) Definitions.--In this section:
``(1) Approved national service position.--The term
`approved national service position' has the meaning given the
term in section 101 of the National and Community Service Act
of 1990 (42 U.S.C. 12511)).
``(2) Elementary school.--The term `elementary school' has
the meaning given the term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
``(3) Program.--The term `Program' means the Food and
Agriculture Service Learning Program established under
subsection (b).
``(4) Secondary school.--The term `secondary school' has
the meaning given the term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
``(b) Establishment.--The Secretary shall establish a Food and
Agriculture Service Learning Program to increase knowledge of
agriculture and improve the nutritional health of children.
``(c) Purposes.--The purposes of the Program are--
``(1) to increase capacity for food, garden, and nutrition
education within host organizations or entities and school
cafeterias and in the classroom;
``(2) to complement and build on the efforts of the farm to
school programs implemented under section 18(g) of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1769(g));
``(3) to complement efforts by the Department and school
food authorities to implement school meal programs under
section 4(b)(3) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1753(b)(3));
``(4) to carry out activities that advance the nutritional
health of children and nutrition education in elementary
schools and secondary schools;
``(5) to build on activities carried out by the Food and
Nutrition Service and the Corporation for National and
Community Service by providing funds to establish new approved
national service positions for a national service program; and
``(6) to further expand the impact of the efforts described
in paragraphs (1) through (5) through coordination with the
National Institute of Food and Agriculture.
``(d) Eligibility.--In carrying out the Program, the Secretary may
make awards to an organization or other entity that, as determined by
the Secretary--
``(1) has a proven track record in carrying out the
activities described in subsection (c);
``(2) is designated as a national service organization by
the Corporation for National and Community Service under
subtitle C of title I of the National and Community Service Act
of 1990 (42 U.S.C. 12571 et seq.);
``(3) works in underserved rural and urban communities;
``(4) teaches and engages children in experiential learning
about agriculture, gardening, nutrition, cooking, and where
food comes from; and
``(5) facilitates a connection between elementary schools
and secondary schools and agricultural producers in the local
and regional area.
``(e) Accountability.--
``(1) In general.--The Secretary may require an
organization or other entity receiving an award under
subsection (d), or another qualified entity, to collect and
report any data on the activities carried out under the
Program, as determined by the Secretary.
``(2) Evaluation.--The Secretary shall--
``(A) conduct regular evaluation of the activities
carried out under the Program; and
``(B) submit to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
report that includes a description of the results of an
evaluation conducted under subparagraph (A).
``(f) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000, to
remain available until expended.
``(2) Use of certain funds.--Of the funds made available to
carry out this section for a fiscal year, 20 percent shall be
made available to the National Institute of Food and
Agriculture to offset costs associated with hosting, training,
and overseeing individuals in approved national service
positions under the Program.
``(3) Maintenance of effort.--Funds made available under
paragraph (1) shall be used only to supplement, not to
supplant, the amount of Federal funding otherwise expended for
nutrition, research, and extension programs of the
Department.''.
TITLE V--CREDIT
Subtitle A--Farmer Loans, Servicing, and Other Assistance Under the
Consolidated Farm and Rural Development Act
SEC. 5001. FARMER LOANS, SERVICING, AND OTHER ASSISTANCE UNDER THE
CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.
The Consolidated Farm and Rural Development Act (as amended by
section 6001) is amended by inserting after section 3002 the following:
``Subtitle A--Farmer Loans, Servicing, and Other Assistance
``CHAPTER 1--FARM OWNERSHIP LOANS
``SEC. 3101. FARM OWNERSHIP LOANS.
``(a) In General.--The Secretary may make or guarantee a farm
ownership loan under this chapter to an eligible farmer for a farm in
the United States.
``(b) Eligibility.--A farmer shall be eligible under subsection (a)
only--
``(1) if the farmer, or, in the case of an entity, 1 or
more individuals holding a majority interest in the entity--
``(A) is a citizen of the United States; and
``(B) in the case of a direct loan, has training or
farming experience that the Secretary determines is
sufficient to ensure a reasonable prospect of success
in the farming operation proposed by the farmer;
``(2)(A) in the case of a farmer that is an individual, if
the farmer is or proposes to become an owner and operator of a
farm that is not larger than a family farm; or
``(B) in the case of a lessee-operator of a farm located in
the State of Hawaii, if the Secretary determines that--
``(i) the farm is not larger than a family farm;
``(ii) the farm cannot be acquired in fee simple by
the lessee-operator;
``(iii) adequate security is provided for the loan
with respect to the farm for which the lessee-operator
applies under this chapter; and
``(iv) there is a reasonable probability of
accomplishing the objectives and repayment of the loan;
``(3) in the case of a farmer that is a cooperative,
corporation, partnership, trust, limited liability company,
joint operation, or such other legal entity as the Secretary
determines to be appropriate, with respect to the entity and
each farm in which the entity has an ownership or operator
interest--
``(A) if--
``(i) a majority interest is held by
individuals who are related by blood or
marriage, as defined by the Secretary;
``(ii) at least 1 of the individuals is or
will be the operator of the farm; and
``(iii) the farm is not larger than a
family farm;
``(B) if--
``(i) all of the individuals who are or
propose to become owners or operators of a farm
are related by blood or marriage;
``(ii) all of the individuals are or
propose to become operators of the farm; and
``(iii) each of the interests of the
individuals separately constitutes not larger
than a family farm even if the ownership
interests of the individuals collectively
constitute larger than a family farm; or
``(C) if--
``(i) the entire interest is not held by
individuals who are related by blood or
marriage, as defined by the Secretary;
``(ii) all of the individuals are or
propose to become farm operators; and
``(iii) the farm is not larger than a
family farm;
``(4) in the case of an entity that is, or will become
within a reasonable period of time, as determined by the
Secretary, only the operator of a family farm, if the 1 or more
individuals who are the owners of the family farm own--
``(A) a percentage of the family farm that exceeds
50 percent; or
``(B) such other percentage as the Secretary
determines to be appropriate;
``(5) in the case of an operator described in paragraph (3)
that is owned, in whole or in part, by 1 or more other
entities, if each of the individuals that have a direct or
indirect ownership interest in such other entities also have a
direct ownership interest in the entity; and
``(6) if the farmer (or in the case of a farmer that is an
entity, the 1 or more individuals that hold a majority interest
in the entity) is unable to obtain credit elsewhere.
``(c) Direct Loans.--
``(1) In general.--Subject to paragraph (2), the Secretary
may make a direct loan under this chapter only to a farmer who
has participated in business operations of a farm for not less
than 3 years (or has other acceptable experience for a period
of time determined by the Secretary) and--
``(A) is a qualified beginning farmer;
``(B) has not received a previous direct farm
ownership loan made under this chapter; or
``(C) has not received a direct farm ownership loan
under this chapter more than 10 years before the date
on which the new loan would be made.
``(2) Youth loans.--The operation of an enterprise by a
youth under section 3201(d) shall not be considered the
operation of a farm for purposes of paragraph (1).
``SEC. 3102. PURPOSES OF LOANS.
``(a) Allowed Purposes.--
``(1) Direct loans.--A farmer may use a direct loan made
under this chapter only--
``(A) to acquire or enlarge a farm;
``(B) to make capital improvements to a farm;
``(C) to pay loan closing costs related to
acquiring, enlarging, or improving a farm;
``(D) to pay for activities to promote soil and
water conservation and protection described in section
3103 on a farm; or
``(E) to refinance a temporary bridge loan made by
a commercial or cooperative lender to a farmer for the
acquisition of land for a farm, if--
``(i) the Secretary approved an application
for a direct farm ownership loan to the farmer
for acquisition of the land; and
``(ii) funds for direct farm ownership
loans under section 3201(a) were not available
at the time at which the application was
approved.
``(2) Guaranteed loans.--A farmer may use a loan guaranteed
under this chapter only--
``(A) to acquire or enlarge a farm;
``(B) to make capital improvements to a farm;
``(C) to pay loan closing costs related to
acquiring, enlarging, or improving a farm;
``(D) to pay for activities to promote soil and
water conservation and protection described in section
3103 on a farm; or
``(E) to refinance indebtedness.
``(b) Preferences.--In making or guaranteeing a loan under this
chapter for purchase of a farm, the Secretary shall give preference to
a person who--
``(1) has a dependent family;
``(2) to the extent practicable, is able to make an initial
down payment on the farm; or
``(3) is an owner of livestock or farm equipment that is
necessary to successfully carry out farming operations.
``(c) Hazard Insurance Requirement.--The Secretary may not make a
loan to a farmer under this chapter unless the farmer has, or agrees to
obtain, hazard insurance on any real property to be acquired or
improved with the loan.
``SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
``(a) In General.--The Secretary may make or guarantee qualified
conservation loans to eligible borrowers under this section.
``(b) Definitions.--In this section:
``(1) Conservation plan.--The term `conservation plan'
means a plan, approved by the Secretary, that, for a farming
operation, identifies the conservation activities that will be
addressed with loan funds provided under this section,
including--
``(A) the installation of conservation structures
to address soil, water, and related resources;
``(B) the establishment of forest cover for
sustained yield timber management, erosion control, or
shelter belt purposes;
``(C) the installation of water conservation
measures;
``(D) the installation of waste management systems;
``(E) the establishment or improvement of permanent
pasture;
``(F) compliance with section 1212 of the Food
Security Act of 1985 (16 U.S.C. 3812); and
``(G) other purposes consistent with the plan,
including the adoption of any other emerging or
existing conservation practices, techniques, or
technologies approved by the Secretary.
``(2) Qualified conservation loan.--The term `qualified
conservation loan' means a loan, the proceeds of which are used
to cover the costs to the borrower of carrying out a qualified
conservation project.
``(3) Qualified conservation project.--The term `qualified
conservation project' means conservation measures that address
provisions of a conservation plan of the eligible borrower.
``(c) Eligibility.--
``(1) In general.--The Secretary may make or guarantee
loans to farmers.
``(2) Requirements.--To be eligible for a loan under this
section, applicants shall meet the citizenship and training and
experience requirements of section 3101(b).
``(d) Priority.--In making or guaranteeing loans under this
section, the Secretary shall give priority to--
``(1) qualified beginning farmers and socially
disadvantaged farmers;
``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems; and
``(3) producers who use the loans to build conservation
structures or establish conservation practices to comply with
section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812).
``(e) Limitations Applicable to Loan Guarantees.--The portion of a
loan that the Secretary may guarantee under this section shall not
exceed 75 percent of the principal amount of the loan.
``(f) Administrative Provisions.--The Secretary shall ensure, to
the maximum extent practicable, that loans made or guaranteed under
this section are distributed across diverse geographic regions.
``(g) Credit Eligibility.--The provisions of paragraphs (1) and (3)
of section 3406(a) shall not apply to loans made or guaranteed under
this section.
``(h) Authorization of Appropriations.--For each of fiscal years
2013 through 2018, there are authorized to be appropriated to the
Secretary such sums as are necessary to carry out this section.
``SEC. 3104. LOAN MAXIMUMS.
``(a) Maximum.--
``(1) In general.--The Secretary shall make or guarantee no
loan under sections 3101, 3102, 3103, 3106, and 3107 that would
cause the unpaid indebtedness under those sections of any 1
borrower to exceed the lesser of--
``(A) the value of the farm or other security, or
``(B)(i) in the case of a loan made by the
Secretary, $300,000; or
``(ii) in the case of a loan guaranteed by the
Secretary, $700,000 (as modified under paragraph (2)).
``(2) Modification.--The amount specified in paragraph
(1)(B)(ii) shall be--
``(A) increased, beginning with fiscal year 2000,
by the inflation percentage applicable to the fiscal
year in which the loan is guaranteed; and
``(B) reduced by the amount of any unpaid
indebtedness of the borrower on loans under chapter 2
that are guaranteed by the Secretary.
``(b) Determination of Value.--In determining the value of the
farm, the Secretary shall consider appraisals made by competent
appraisers under rules established by the Secretary.
``(c) Inflation Percentage.--For purposes of this section, the
inflation percentage applicable to a fiscal year is the percentage (if
any) by which--
``(1) the average of the Prices Paid By Farmers Index (as
compiled by the National Agricultural Statistics Service of the
Department) for the 12-month period ending on August 31 of the
immediately preceding fiscal year; exceeds
``(2) the average of that index (as so defined) for the 12-
month period ending on August 31, 1996.
``SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWNERSHIP LOANS.
``(a) Period for Repayment.--The period for repayment of a loan
under this chapter shall not exceed 40 years.
``(b) Interest Rates.--
``(1) In general.--Except as otherwise provided in this
title, the interest rate on a loan under this chapter shall be
determined by the Secretary at a rate--
``(A) not to exceed the sum obtained by adding--
``(i) the current average market yield on
outstanding marketable obligations of the
United States with remaining periods to
maturity comparable to the average maturity of
the loan; and
``(ii) an amount not to exceed 1 percent,
as determined by the Secretary; and
``(B) adjusted to the nearest \1/8\ of 1 percent.
``(2) Low-income farm ownership loans.--Except as provided
in paragraph (3), the interest rate on a loan (other than a
guaranteed loan) under section 3106 shall be determined by the
Secretary at a rate that is--
``(A) not greater than the sum obtained by adding--
``(i) an amount that does not exceed \1/2\
of the current average market yield on
outstanding marketable obligations of the
United States with maturities of 5 years; and
``(ii) an amount not to exceed 1 percent
per year, as the Secretary determines is
appropriate; and
``(B) not less than 5 percent per year.
``(3) Joint financing arrangement.--If a direct farm
ownership loan is made under this chapter as part of a joint
financing arrangement and the amount of the direct farm
ownership loan does not exceed 50 percent of the total
principal amount financed under the arrangement, the interest
rate on the direct farm ownership loan shall be at least 4
percent annually.
``(4) Guaranteed loans.--The interest rate on a loan made
under this chapter as a guaranteed loan shall be such rate as
may be agreed on by the borrower and the lender, but not in
excess of any rate determined by the Secretary.
``(c) Payment of Charges.--A borrower of a loan made or guaranteed
under this chapter shall pay such fees and other charges as the
Secretary may require, and prepay to the Secretary such taxes and
insurance as the Secretary may require, on such terms and conditions as
the Secretary may prescribe.
``(d) Security.--
``(1) In general.--The Secretary shall take as security for
an obligation entered into in connection with a loan, a
mortgage on a farm with respect to which the loan is made or
such other security as the Secretary may require.
``(2) Liens to united states.--An instrument for security
under paragraph (1) may constitute a lien running to the United
States notwithstanding the fact that the note for the security
may be held by a lender other than the United States.
``(3) Multiple loans.--A borrower may use the same
collateral to secure 2 or more loans made or guaranteed under
this chapter, except that the outstanding amount of the loans
may not exceed the total value of the collateral.
``(e) Mineral Rights as Collateral.--
``(1) In general.--In the case of a farm ownership loan
made after December 23, 1985, unless appraised values of the
rights to oil, gas, or other minerals are specifically included
as part of the appraised value of collateral securing the loan,
the rights to oil, gas, or other minerals located under the
property shall not be considered part of the collateral
securing the loan.
``(2) Compensatory payments.--Nothing in this subsection
prevents the inclusion of, as part of the collateral securing
the loan, any payment or other compensation the borrower may
receive for damages to the surface of the collateral real
estate resulting from the exploration for or recovery of
minerals.
``(f) Additional Collateral.--The Secretary may not--
``(1) require any borrower to provide additional collateral
to secure a farmer program loan made or guaranteed under this
subtitle, if the borrower is current in the payment of
principal and interest on the loan; or
``(2) bring any action to foreclose, or otherwise
liquidate, the loan as a result of the failure of a borrower to
provide additional collateral to secure the loan, if the
borrower was current in the payment of principal and interest
on the loan at the time the additional collateral was
requested.
``SEC. 3106. LIMITED-RESOURCE LOANS.
``(a) In General.--The Secretary may make or guarantee a limited-
resource loan for any of the purposes specified in sections 3102(a) or
3103(a) to a farmer in the United States who--
``(1) in the case of an entity, all members, stockholders,
or partners are eligible under section 3101(b);
``(2) has a low income; and
``(3) demonstrates a need to maximize the income of the
farmer from farming operations.
``(b) Installments.--A loan made or guaranteed under this section
shall be repayable in such installments as the Secretary determines
will provide for reduced payments during the initial repayment period
of the loan and larger payments during the remainder of the repayment
period of the loan.
``(c) Interest Rates.--Except as provided in section 3105(b)(3) and
in section 3204(b)(3), the interest rate on loans (other than
guaranteed loans) under this section shall not be--
``(1) greater than the sum obtained by adding--
``(A) an amount that does not exceed \1/2\ of the
current average market yield on outstanding marketable
obligations of the United States with maturities of 5
years; and
``(B) an amount not exceeding 1 percent per year,
as the Secretary determines is appropriate; or
``(2) less than 5 percent per year.
``SEC. 3107. DOWNPAYMENT LOAN PROGRAM.
``(a) In General.--
``(1) Establishment.--Notwithstanding any other provision
of this chapter, the Secretary shall establish, under the farm
ownership loan program established under this chapter, a
program under which loans shall be made under this section to a
qualified beginning farmer or a socially disadvantaged farmer
for a downpayment on a farm ownership loan.
``(2) Coordination.--The Secretary shall be the primary
coordinator of credit supervision for the downpayment loan
program established under this section, in consultation with a
commercial or cooperative lender and, if applicable, a
contracting credit counseling service selected under section
3420(c).
``(b) Loan Terms.--
``(1) Principal.--Each loan made under this section shall
be in an amount that does not exceed 45 percent of the lesser
of--
``(A) the purchase price of the farm to be
acquired;
``(B) the appraised value of the farm to be
acquired; or
``(C) $667,000.
``(2) Interest rate.--The interest rate on any loan made by
the Secretary under this section shall be a rate equal to the
greater of--
``(A) the difference between--
``(i) 4 percent; and
``(ii) the interest rate for farm ownership
loans under this chapter; or
``(B) 1.5 percent.
``(3) Duration.--Each loan under this section shall be made
for a period of 20 years or less, at the option of the
borrower.
``(4) Repayment.--Each borrower of a loan under this
section shall repay the loan to the Secretary in equal annual
installments.
``(5) Nature of retained security interest.--The Secretary
shall retain an interest in each farm acquired with a loan made
under this section that shall--
``(A) be secured by the farm;
``(B) be junior only to such interests in the farm
as may be conveyed at the time of acquisition to the
person (including a lender) from whom the borrower
obtained a loan used to acquire the farm; and
``(C) require the borrower to obtain the permission
of the Secretary before the borrower may grant an
additional security interest in the farm.
``(c) Limitations.--
``(1) Borrowers required to make minimum down payment.--The
Secretary shall not make a loan under this section to any
borrower with respect to a farm if the contribution of the
borrower to the down payment on the farm will be less than 5
percent of the purchase price of the farm.
``(2) Prohibited types of financing.--The Secretary shall
not make a loan under this section with respect to a farm if
the farm is to be acquired with other financing that contains
any of the following conditions:
``(A) The financing is to be amortized over a
period of less than 30 years.
``(B) A balloon payment will be due on the
financing during the 20-year period beginning on the
date on which the loan is to be made by the Secretary.
``(d) Administration.--In carrying out this section, the Secretary
shall, to the maximum extent practicable--
``(1) facilitate the transfer of farms from retiring
farmers to persons eligible for insured loans under this
subtitle;
``(2) make efforts to widely publicize the availability of
loans under this section among--
``(A) potentially eligible recipients of the loans;
``(B) retiring farmers; and
``(C) applicants for farm ownership loans under
this chapter;
``(3) encourage retiring farmers to assist in the sale of
their farms to qualified beginning farmers and socially
disadvantaged farmers providing seller financing;
``(4) coordinate the loan program established by this
section with State programs that provide farm ownership or
operating loans for beginning farmers or socially disadvantaged
farmers; and
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
arrangements as the preferred choice for direct real estate
loans made by any lender to a qualified beginning farmer or
socially disadvantaged farmer.
``SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVANTAGED FARMER
CONTRACT LAND SALES PROGRAM.
``(a) In General.--The Secretary shall, in accordance with this
section, guarantee a loan made by a private seller of a farm to a
qualified beginning farmer or socially disadvantaged farmer on a
contract land sales basis.
``(b) Eligibility.--To be eligible for a loan guarantee under
subsection (a)--
``(1) the qualified beginning farmer or socially
disadvantaged farmer shall--
``(A) on the date the contract land sale that is
subject of the loan is complete, own and operate the
farm that is the subject of the contract land sale;
``(B) have a credit history that--
``(i) includes a record of satisfactory
debt repayment, as determined by the Secretary;
and
``(ii) is acceptable to the Secretary; and
``(C) demonstrate to the Secretary that the farmer
is unable to obtain sufficient credit without a
guarantee to finance any actual need of the farmer at a
reasonable rate or term; and
``(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary.
``(c) Limitations.--The Secretary shall not provide a loan
guarantee under subsection (a) if--
``(1) the contribution of the qualified beginning farmer or
socially disadvantaged farmer to the down payment for the farm
that is the subject of the contract land sale would be less
than 5 percent of the purchase price of the farm; or
``(2) the purchase price or the appraisal value of the farm
that is the subject of the contract land sale is greater than
$500,000.
``(d) Period of Guarantee.--A loan guarantee under this section
shall be in effect for the 10-year period beginning on the date on
which the guarantee is provided.
``(e) Guarantee Plan.--
``(1) Selection of plan.--A private seller of a farm who
makes a loan guaranteed by the Secretary under subsection (a)
may select--
``(A) a prompt payment guarantee plan, which shall
cover--
``(i) 3 amortized annual installments; or
``(ii) an amount equal to 3 annual
installments (including an amount equal to the
total cost of any tax and insurance incurred
during the period covered by the annual
installments); or
``(B) a standard guarantee plan, which shall cover
an amount equal to 90 percent of the outstanding
principal of the loan.
``(2) Eligibility for standard guarantee plan.--To be
eligible for a standard guarantee plan referred to in paragraph
(1)(B), a private seller shall--
``(A) secure a commercial lending institution or
similar entity, as determined by the Secretary, to
serve as an escrow agent; or
``(B) in cooperation with the farmer, use an
appropriate alternate arrangement, as determined by the
Secretary.
``CHAPTER 2--OPERATING LOANS
``SEC. 3201. OPERATING LOANS.
``(a) In General.--The Secretary may make or guarantee an operating
loan under this chapter to an eligible farmer in the United States.
``(b) Eligibility.--A farmer shall be eligible under subsection (a)
only--
``(1) if the farmer, or an individual holding a majority
interest in the farmer--
``(A) is a citizen of the United States; and
``(B) has training or farming experience that the
Secretary determines is sufficient to ensure a
reasonable prospect of success in the farming operation
proposed by the farmer;
``(2) in the case of a farmer that is an individual, if the
farmer is or proposes to become an operator of a farm that is
not larger than a family farm;
``(3) in the case of a farmer that is a cooperative,
corporation, partnership, trust, limited liability company,
joint operation, or such other legal entity as the Secretary
determines to be appropriate, with respect to the entity and
each farm in which the entity has an ownership or operator
interest--
``(A) if--
``(i) a majority interest is held by
individuals who are related by blood or
marriage, as defined by the Secretary;
``(ii) at least 1 of the individuals is or
will be the operator of the farm; and
``(iii) the farm is not larger than a
family farm;
``(B) if--
``(i) all of the individuals who are or
propose to become owners or operators of a farm
are related by blood or marriage;
``(ii) all of the individuals are or
propose to become operators of the farm; and
``(iii) each of the interests of the
individuals separately constitutes not larger
than a family farm even if the ownership
interests of the individuals collectively
constitute larger than a family farm; or
``(C) if--
``(i) the entire interest is not held by
individuals who are related by blood or
marriage, as defined by the Secretary;
``(ii) all of the individuals are or
propose to become farm operators; and
``(iii) the farm is not larger than a
family farm;
``(4) in the case of an operator described in paragraph (3)
that is owned, in whole or in part by 1 or more other entities,
if not less than 75 percent of the ownership interests of each
other entity is owned directly or indirectly by 1 or more
individuals who own the family farm; and
``(5) if the farmer (or in the case of a farmer that is an
entity, the 1 or more individuals that hold a majority interest
in the entity) is unable to obtain credit elsewhere.
``(c) Direct Loans.--
``(1) In general.--The Secretary may make a direct loan
under this chapter only to a farmer who--
``(A) is a qualified beginning farmer;
``(B) has not received a previous direct operating
loan made under this chapter; or
``(C) has not received a direct operating loan made
under this chapter for a total of 10 years, plus any
year the farmer or rancher did not receive a direct
operating loan after the year in which the borrower
initially received a direct operating loan under this
chapter, as determined by the Secretary.
``(2) Youth loans.--In this subsection, the term `direct
operating loan' shall not include a loan made to a youth under
subsection (d).
``(3) Waivers.--
``(A) Farm operations on tribal land.--The
Secretary shall waive the limitation under paragraph
(1)(C) for a direct loan made under this chapter to a
farmer whose farm land is subject to the jurisdiction
of an Indian tribe and whose loan is secured by 1 or
more security instruments that are subject to the
jurisdiction of an Indian tribe if the Secretary
determines that commercial credit is not generally
available for such farm operations.
``(B) Other farm 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
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 3419 (from
which requirement the Secretary shall not grant
a waiver under section 3419(f)).
``(d) Youth Loans.--
``(1) In general.--Notwithstanding subsection (b), except
for citizenship and credit requirements, a loan may be made
under this chapter to a youth who is a rural resident to enable
the youth to operate an enterprise in connection with the
participation in a youth organization, as determined by the
Secretary.
``(2) Full personal liability.--A youth receiving a loan
under this subsection who executes a promissory note for the
loan shall incur full personal liability for the indebtedness
evidenced by the note, in accordance with the terms of the
note, free of any disability of minority.
``(3) Cosigner.--The Secretary may accept the personal
liability of a cosigner of a promissory note for a loan under
this subsection, in addition to the personal liability of the
youth borrower.
``(4) Youth enterprises not farming.--The operation of an
enterprise by a youth under this subsection shall not be
considered the operation of a farm under this subtitle.
``(5) Relation to other loan programs.--Notwithstanding any
other provision of law, if a borrower becomes delinquent with
respect to a youth loan made under this subsection, the
borrower shall not become ineligible, as a result of the
delinquency, to receive loans and loan guarantees from the
Federal government to pay for education expenses of the
borrower.
``(e) Pilot Loan Program To Support Healthy Foods for the Hungry.--
``(1) Definition of gleaner.--In this subsection, the term
`gleaner' means an entity that--
``(A) collects edible, surplus food that would be
thrown away and distributes the food to agencies or
nonprofit organizations that feed the hungry; or
``(B) harvests for free distribution to the needy,
or for donation to agencies or nonprofit organizations
for ultimate distribution to the needy, an agricultural
crop that has been donated by the owner of the crop.
``(2) Program.--Not later than 180 days after the date of
enactment of this subsection, the Secretary shall establish,
within the operating loan program established under this
chapter, a pilot program under which the Secretary makes loans
available to eligible entities to assist the entities in
providing food to the hungry.
``(3) Eligibility.--In addition to any other person
eligible under the terms and conditions of the operating loan
program established under this chapter, gleaners shall be
eligible to receive loans under this subsection.
``(4) Loan amount.--
``(A) In general.--Each loan issued under the
program shall be in an amount of not less than $500 and
not more than $5,000.
``(B) Redistribution.--If the eligible recipients
in a State do not use the full allocation of loans that
are available to eligible recipients in the State under
this subsection, the Secretary may use any unused
amounts to make loans available to eligible entities in
other States in accordance with this subsection.
``(5) Loan processing.--
``(A) In general.--The Secretary shall process any
loan application submitted under the program not later
than 30 days after the date on which the application
was submitted.
``(B) Expediting applications.--The Secretary shall
take any measure the Secretary determines necessary to
expedite any application submitted under the program.
``(6) Paperwork reduction.--The Secretary shall take
measures to reduce any paperwork requirements for loans under
the program.
``(7) Program integrity.--The Secretary shall take such
actions as are necessary to ensure the integrity of the program
established under this subsection.
``(8) Maximum amount.--Of funds that are made available to
carry out this chapter, the Secretary shall use to carry out
this subsection a total amount of not more than $500,000.
``(9) Report.--Not later than 180 days after the maximum
amount of funds are used to carry out this subsection under
paragraph (8), the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that describes the results of the pilot program and the
feasibility of expanding the program.
``SEC. 3202. PURPOSES OF LOANS.
``(a) Direct Loans.--A direct loan may be made under this chapter
only--
``(1) to pay the costs incident to reorganizing a farm for
more profitable operation;
``(2) to purchase livestock, poultry, or farm equipment;
``(3) to purchase feed, seed, fertilizer, insecticide, or
farm supplies, or to meet other essential farm operating
expenses, including cash rent;
``(4) to finance land or water development, use, or
conservation;
``(5) to pay loan closing costs;
``(6) to assist a farmer in changing the equipment,
facilities, or methods of operation of a farm to comply with a
standard promulgated under section 6 of the Occupational Safety
and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by
a State under a plan approved under section 18 of that Act (29
U.S.C. 667), if the Secretary determines that without
assistance under this paragraph the farmer is likely to suffer
substantial economic injury in complying with the standard;
``(7) to train a limited-resource borrower receiving a loan
under section 3106 in maintaining records of farming
operations;
``(8) to train a borrower under section 3419;
``(9) to refinance the indebtedness of a borrower, if the
borrower--
``(A) has refinanced a loan under this chapter not
more than 4 times previously; and
``(B)(i) is a direct loan borrower under this
subtitle at the time of the refinancing and has
suffered a qualifying loss because of a natural or
major disaster or emergency; or
``(ii) is refinancing a debt obtained from a
creditor other than the Secretary;
``(10) to provide other farm or home needs, including
family subsistence; or
``(11) to assist a farmer in the production of a locally or
regionally produced agricultural food product (as defined in
section 3601(e)(11)(A)), including to qualified producers
engaged in direct-to-consumer marketing, direct-to-institution
marketing, or direct-to-store marketing, business, or
activities that produce a value-added agricultural product (as
defined in section 231(a) of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 1632a(a))).
``(b) Guaranteed Loans.--A loan may be guaranteed under this
chapter only--
``(1) to pay the costs incident to reorganizing a farm for
more profitable operation;
``(2) to purchase livestock, poultry, or farm equipment;
``(3) to purchase feed, seed, fertilizer, insecticide, or
farm supplies, or to meet other essential farm operating
expenses, including cash rent;
``(4) to finance land or water development, use, or
conservation;
``(5) to refinance indebtedness;
``(6) to pay loan closing costs;
``(7) to assist a farmer in changing the equipment,
facilities, or methods of operation of a farm to comply with a
standard promulgated under section 6 of the Occupational Safety
and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by
a State under a plan approved under section 18 of that Act (29
U.S.C. 667), if the Secretary determines that without
assistance under this paragraph the farmer is likely to suffer
substantial economic injury due to compliance with the
standard;
``(8) to train a borrower under section 3419; or
``(9) to provide other farm or home needs, including family
subsistence.
``(c) Hazard Insurance Requirement.--The Secretary may not make a
loan to a farmer under this chapter unless the farmer has, or agrees to
obtain, hazard insurance on the property to be acquired with the loan.
``(d) Private Reserve.--
``(1) In general.--Notwithstanding any other provision of
this title, the Secretary may reserve a portion of any loan
made under this chapter to be placed in an unsupervised bank
account that may be used at the discretion of the borrower for
the basic family needs of the borrower and the immediate family
of the borrower.
``(2) Limit on size of the reserve.--The size of the
reserve shall not exceed the lesser of--
``(A) 10 percent of the loan;
``(B) $5,000; or
``(C) the amount needed to provide for the basic
family needs of the borrower and the immediate family
of the borrower for 3 calendar months.
``(e) Loans to Local and Regional Food Producers.--
``(1) Training.--The Secretary shall ensure that loan
officers processing loans under subsection (a)(11) receive
appropriate training to serve borrowers and potential borrowers
engaged in local and regional food production.
``(2) Valuation.--
``(A) In general.--The Secretary shall develop ways
to determine unit prices (or other appropriate forms of
valuation) for crops and other agricultural products,
the end use of which is intended to be in locally or
regionally produced agricultural food products, to
facilitate lending to local and regional food
producers.
``(B) Price history.--The Secretary shall implement
a mechanism for local and regional food producers to
establish price history for the crops and other
agricultural products produced by local and regional
food producers.
``(3) Outreach.--The Secretary shall develop and implement
an outreach strategy to engage and provide loan services to
local and regional food producers.
``SEC. 3203. RESTRICTIONS ON LOANS.
``(a) Requirements.--
``(1) In general.--The Secretary may not make or guarantee
a loan under this chapter--
``(A) that would cause the total principal
indebtedness outstanding at any 1 time for loans made
under this chapter to any 1 borrower to exceed--
``(i)(I) in the case of a loan made by the
Secretary, $300,000; or
``(II) in the case of a loan guaranteed by
the Secretary, $700,000 (as modified under
paragraph (2)); or
``(B) for the purchasing or leasing of land other
than for cash rent, or for carrying on a land leasing
or land purchasing program.
``(2) Modification.--The amount specified in paragraph
(1)(A)(ii) shall be--
``(A) increased, beginning with fiscal year 2000,
by the inflation percentage applicable to the fiscal
year in which the loan is guaranteed; and
``(B) reduced by the unpaid indebtedness of the
borrower on loans under sections specified in section
3104 that are guaranteed by the Secretary.
``(b) Inflation Percentage.--For purposes of this section, the
inflation percentage applicable to a fiscal year is the percentage (if
any) by which--
``(1) the average of the Prices Paid By Farmers Index (as
compiled by the National Agricultural Statistics Service of the
Department) for the 12-month period ending on August 31 of the
immediately preceding fiscal year; exceeds
``(2) the average of that index (as so defined) for the 12-
month period ending on August 31, 1996.
``SEC. 3204. TERMS OF LOANS.
``(a) Personal Liability.--A borrower of a loan made under this
chapter shall secure the loan with the full personal liability of the
borrower and such other security as the Secretary may prescribe.
``(b) Interest Rates.--
``(1) Maximum rate.--
``(A) In general.--Except as provided in paragraphs
(2) and (3), the interest rate on a loan made under
this chapter (other than a guaranteed loan) shall be
determined by the Secretary at a rate not to exceed the
sum obtained by adding--
``(i) the current average market yield on
outstanding marketable obligations of the
United States with remaining periods to
maturity comparable to the average maturity of
the loan; and
``(ii) an additional charge not to exceed 1
percent, as determined by the Secretary.
``(B) Adjustment.--The sum obtained under
subparagraph (A) shall be adjusted to the nearest \1/8\
of 1 percent.
``(2) Guaranteed loan.--The interest rate on a guaranteed
loan made under this chapter shall be such rate as may be
agreed on by the borrower and the lender, but may not exceed
any rate prescribed by the Secretary.
``(3) Low-income loan.--The interest rate on a direct loan
made under this chapter to a low-income, limited-resource
borrower shall be determined by the Secretary at a rate that is
not--
``(A) greater than the sum obtained by adding--
``(i) an amount that does not exceed \1/2\
of the current average market yield on
outstanding marketable obligations of the
United States with a maturity of 5 years; and
``(ii) an amount not to exceed 1 percent
per year, as the Secretary determines is
appropriate; or
``(B) less than 5 percent per year.
``(c) Period for Repayment.--The period for repayment of a loan
made under this chapter may not exceed 7 years.
``(d) Line-of-Credit Loans.--
``(1) In general.--A loan made or guaranteed by the
Secretary under this chapter may be in the form of a line-of-
credit loan.
``(2) Term.--A line-of-credit loan under paragraph (1)
shall terminate not later than 5 years after the date that the
loan is made or guaranteed.
``(3) Eligibility.--For purposes of determining eligibility
for an operating loan under this chapter, each year during
which a farmer takes an advance or draws on a line-of-credit
loan the farmer shall be considered as having received an
operating loan for 1 year.
``(4) Termination of delinquent loans.--If a borrower does
not pay an installment on a line-of-credit loan on schedule,
the borrower may not take an advance or draw on the line-of-
credit, unless the Secretary determines that--
``(A) the failure of the borrower to pay on
schedule was due to unusual conditions that the
borrower could not control; and
``(B) the borrower will reduce the line-of-credit
balance to the scheduled level at the end of--
``(i) the production cycle; or
``(ii) the marketing of the agricultural
products of the borrower.
``(5) Agricultural commodities.--A line-of-credit loan may
be used to finance the production or marketing of an
agricultural commodity that is eligible for a price support
program of the Department.
``CHAPTER 3--EMERGENCY LOANS
``SEC. 3301. EMERGENCY LOANS.
``(a) In General.--The Secretary shall make or guarantee an
emergency loan under this chapter to an eligible farmer (including a
commercial fisherman) only to the extent and in such amounts as
provided in advance in appropriation Acts.
``(b) Eligibility.--An established farmer shall be eligible under
subsection (a) only--
``(1) if the farmer or an individual holding a majority
interest in the farmer--
``(A) is a citizen of the United States; and
``(B) has experience and resources that the
Secretary determines are sufficient to ensure a
reasonable prospect of success in the farming operation
proposed by the farmer;
``(2) in the case of a farmer that is an individual, if the
farmer is--
``(A) in the case of a loan for a purpose under
chapter 1, an owner, operator, or lessee-operator
described in section 3101(b)(2); and
``(B) in the case of a loan for a purpose under
chapter 2, an operator of a farm that is not larger
than a family farm;
``(3) in the case of a farmer that is a cooperative,
corporation, partnership, trust, limited liability company,
joint operation, or such other legal entity as the Secretary
determines to be appropriate, with respect to the entity and
each farm in which the entity has an ownership or operator
interest--
``(A) if--
``(i) a majority interest is held by
individuals who are related by blood or
marriage, as defined by the Secretary;
``(ii) at least 1 of the individuals is or
will be the operator of the farm; and
``(iii) the farm is not larger than a
family farm;
``(B) if--
``(i) all of the individuals who are or
propose to become owners or operators of a farm
are related by blood or marriage;
``(ii) all of the individuals are or
propose to become operators of the farm; and
``(iii) each of the interests of the
individuals separately constitutes not larger
than a family farm even if the ownership
interests of the individuals collectively
constitute larger than a family farm; or
``(C) if--
``(i) the entire interest is not held by
individuals who are related by blood or
marriage, as defined by the Secretary;
``(ii) all of the individuals are or
propose to become farm operators; and
``(iii) the farm is not larger than a
family farm;
``(4) if the entity is owned, in whole or in part, by 1 or
more other entities and each individual who is an owner of the
family farm involved has a direct or indirect ownership
interest in each of the other entities;
``(5) if the farmer (or in the case of a farmer that is an
entity, the 1 or more individuals that hold a majority interest
in the entity) is unable to obtain credit elsewhere; and
``(6)(A) if the Secretary finds that the operations of the
farmer have been substantially affected by--
``(i) a natural or major disaster or emergency
designated by the President under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.); or
``(ii) a quarantine imposed by the Secretary under
the Plant Protection Act (7 U.S.C. 7701 et seq.) or the
Animal Health Protection Act (7 U.S.C. 8301 et seq.);
or
``(B) if the farmer conducts farming operations in a county
or a county contiguous to a county in which the Secretary has
found that farming operations have been substantially affected
by a natural or major disaster or emergency.
``(c) Time for Accepting an Application.--The Secretary shall
accept an application for a loan under this chapter from a farmer at
any time during the 8-month period beginning on the date that--
``(1) the Secretary determines that farming operations of
the farmer have been substantially affected by--
``(A) a quarantine imposed by the Secretary under
the Plant Protection Act (7 U.S.C. 7701 et seq.) or the
Animal Health Protection Act (7 U.S.C. 8301 et seq.);
or
``(B) a natural disaster; or
``(2) the President makes a major disaster or emergency
designation with respect to the affected county of the farmer
referred to in subsection (b)(5)(B).
``(d) Hazard Insurance Requirement.--The Secretary may not make a
loan to a farmer under this chapter to cover a property loss unless the
farmer had hazard insurance that insured the property at the time of
the loss.
``(e) Family Farm.--The Secretary shall conduct the loan program
under this chapter in a manner that will foster and encourage the
family farm system of agriculture, consistent with the reaffirmation of
policy and declaration of the intent of Congress contained in section
102(a) of the Food and Agriculture Act of 1977 (7 U.S.C. 2266(a)).
``SEC. 3302. PURPOSES OF LOANS.
``Subject to the limitations on the amounts of loans provided in
section 3303(a), a loan may be made or guaranteed under this chapter
for--
``(1) any purpose authorized for a loan under chapter 1 or
2; and
``(2) crop or livestock purposes that are--
``(A) necessitated by a quarantine, natural
disaster, major disaster, or emergency; and
``(B) considered desirable by the farmer.
``SEC. 3303. TERMS OF LOANS.
``(a) Maximum Amount of Loan.--The Secretary may not make or
guarantee a loan under this chapter to a borrower who has suffered a
loss in an amount that--
``(1) exceeds the actual loss caused by a disaster; or
``(2) would cause the total indebtedness of the borrower
under this chapter to exceed $500,000.
``(b) Interest Rates.--Any portion of a loan under this chapter up
to the amount of the actual loss suffered by a farmer caused by a
disaster shall be at a rate prescribed by the Secretary, but not in
excess of 8 percent per annum.
``(c) Interest Subsidies for Guaranteed Loans.--In the case of a
guaranteed loan under this chapter, the Secretary may pay an interest
subsidy to the lender for any portion of the loan up to the amount of
the actual loss suffered by a farmer caused by a disaster.
``(d) Time for Repayment.--
``(1) In general.--Subject to paragraph (2), a loan under
this chapter shall be repayable at such times as the Secretary
may determine, considering the purpose of the loan and the
nature and effect of the disaster, but not later than the
maximum repayment period allowed for a loan for a similar
purpose under chapters 1 and 2.
``(2) Extended repayment period.--The Secretary may, if the
loan is for a purpose described in chapter 2 and the Secretary
determines that the need of the loan applicant justifies the
longer repayment period, make the loan repayable at the end of
a period of more than 7 years, but not more than 20 years.
``(e) Security for Loan.--
``(1) In general.--A borrower of a loan made under this
chapter shall secure the loan with the full personal liability
of the borrower and such other security as the Secretary may
prescribe.
``(2) Adequate security.--Subject to paragraph (3), the
Secretary may not make or guarantee a loan under this chapter
unless the security for the loan is adequate to ensure
repayment of the loan.
``(3) Inadequate security due to disaster.--If adequate
security for a loan under this chapter is not available because
of a disaster, the Secretary shall accept as security any
collateral that is available if the Secretary is confident that
the collateral and the repayment ability of the farmer are
adequate security for the loan.
``(4) Valuation of farm assets.--If a farm asset (including
land, livestock, or equipment) is used as collateral to secure
a loan applied for under this chapter and the governor of the
State in which the farm is located requests assistance under
this chapter or the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.) for the
portion of the State in which the asset is located, the
Secretary shall establish the value of the asset as of the day
before the occurrence of the natural or major disaster or
emergency.
``(f) Review of Loan.--
``(1) In general.--In the case of a loan made, but not
guaranteed, under section 3301, the Secretary shall review the
loan 3 years after the loan is made, and every 2 years
thereafter for the term of the loan.
``(2) Termination of federal assistance.--If, based on a
review under paragraph (1), the Secretary determines that the
borrower is able to obtain a loan from a non-Federal source at
reasonable rates and terms, the borrower shall, on request by
the Secretary, apply for, and accept, a non-Federal loan in a
sufficient amount to repay the Secretary.
``SEC. 3304. PRODUCTION LOSSES.
``(a) In General.--The Secretary shall make or guarantee a loan
under this chapter to an eligible farmer for production losses if a
single enterprise that constitutes a basic part of the farming
operation of the farmer has sustained at least a 30 percent loss in
normal per acre or per animal production, or such lesser percentage as
the Secretary may determine, as a result of a disaster.
``(b) Basis for Percentage.--A percentage loss under subsection (a)
shall be based on the average monthly price in effect for the previous
crop or calendar year, as appropriate.
``(c) Amount of Loan.--A loan under subsection (a) shall be in an
amount that is equal to 80 percent, or such greater percentage as the
Secretary may determine, of the total calculated actual production loss
sustained by the farmer.
``CHAPTER 4--GENERAL FARMER LOAN PROVISIONS
``SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND.
``The fund established pursuant to section 11(a) of the Bankhead-
Jones Farm Tenant Act (60 Stat. 1075, chapter 964) shall be known as
the Agricultural Credit Insurance Fund (referred to in this section as
the `Fund', unless the context otherwise requires) for the discharge of
the obligations of the Secretary under agreements insuring loans under
this subtitle and loans and mortgages insured under prior authority.
``SEC. 3402. GUARANTEED FARMER LOANS.
``(a) In General.--The Secretary may provide financial assistance
to a borrower for a purpose provided in this subtitle by guaranteeing a
loan made by any Federal or State chartered bank, savings and loan
association, cooperative lending agency, or other legally organized
lending agency.
``(b) Interest Rate.--The interest rate payable by a borrower on
the portion of a guaranteed loan that is sold by a lender to the
secondary market under this subtitle may be lower than the interest
rate charged on the portion retained by the lender, but shall not
exceed the average interest rate charged by the lender on loans made to
farm borrowers.
``(c) Fees.--In the case of a loan guarantee on a loan made by a
commercial or cooperative lender related to a loan made by the
Secretary under section 3107--
``(1) the Secretary shall not charge a fee to any person
(including a lender); and
``(2) a lender may charge a loan origination and servicing
fee in an amount not to exceed 1 percent of the amount of the
loan.
``(d) Maximum Guarantee of 90 Percent.--Except as provided in
subsections (e) and (f), a loan guarantee under this subtitle shall be
for not more than 90 percent of the principal and interest due on the
loan.
``(e) Refinanced Loans Guaranteed at 95 Percent.--The Secretary
shall guarantee 95 percent of--
``(1) in the case of a loan that solely refinances a direct
loan made under this subtitle, the principal and interest due
on the loan on the date of the refinancing; or
``(2) in the case of a loan that is used for multiple
purposes, the portion of the loan that refinances the principal
and interest due on a direct loan made under this subtitle that
is outstanding on the date the loan is guaranteed.
``(f) Beginning Farmer Loans Guaranteed up to 95 Percent.--The
Secretary may guarantee not more than 95 percent of--
``(1) a farm ownership loan for acquiring a farm to a
borrower who is participating in the downpayment loan program
under section 3107; or
``(2) an operating loan to a borrower who is participating
in the downpayment loan program under section 3107 that is made
during the period that the borrower has a direct loan
outstanding under chapter 1 for acquiring a farm.
``(g) Guarantee of Loans Made Under State Beginning Farmer
Programs.--The Secretary may guarantee under this subtitle a loan made
under a State beginning farmer 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.
``(h) Partial Liquidations.--If a partial liquidation of a
delinquent loan is performed (with the prior consent of the Secretary)
as part of loan servicing by a guaranteed lender under this subtitle,
the Secretary shall not require full liquidation of the loan for the
lender to be eligible to receive payment on losses.
``SEC. 3403. PROVISION OF INFORMATION TO BORROWERS.
``(a) Approval Notification.--The Secretary shall approve or
disapprove an application for a loan or loan guarantee made under this
subtitle, and notify the applicant of such action, not later than 60
days after the date on which the Secretary has received a complete
application for the loan or loan guarantee.
``(b) List of Lenders.--The Secretary shall make available to any
farmer, on request, a list of lenders in the area that participate in
guaranteed farmer program loan programs established under this
subtitle, and other lenders in the area that express a desire to
participate in the programs and that request inclusion on the list.
``(c) Other Information.--
``(1) In general.--On the request of a borrower, the
Secretary shall make available to the borrower--
``(A) a copy of each document signed by the
borrower;
``(B) a copy of each appraisal performed with
respect to the loan; and
``(C) any document that the Secretary is required
to provide to the borrower under any law in effect on
the date of the request.
``(2) Rule of construction.--Paragraph (1) shall not
supersede any duty imposed on the Secretary by a law in effect
on January 5, 1988, unless the duty directly conflicts with a
duty under paragraph (1).
``SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS.
``(a) Requirement.--The Secretary shall provide notice by certified
mail to each borrower who is at least 90 days past due on the payment
of principal or interest on a loan made under this subtitle.
``(b) Contents.--The notice required under subsection (a) shall--
``(1) include a summary of all primary loan service
programs, homestead retention programs, debt settlement
programs, and appeal procedures, including the eligibility
criteria, and terms and conditions of the programs and
procedures;
``(2) include a summary of the manner in which the borrower
may apply, and be considered, for all such programs, except
that the Secretary shall not require the borrower to select
among the programs or waive any right to be considered for any
program carried out by the Secretary;
``(3) advise the borrower regarding all filing requirements
and any deadlines that must be met for requesting loan
servicing;
``(4) provide any relevant forms, including applicable
response forms;
``(5) advise the borrower that a copy of regulations is
available on request; and
``(6) be designed to be readable and understandable by the
borrower.
``(c) Contained in Regulations.--All notices required by this
section shall be contained in the regulations issued to carry out this
subtitle.
``(d) Timing.--The notice described in subsection (b) shall be
provided--
``(1) at the time an application is made for participation
in a loan service program;
``(2) on written request of the borrower; and
``(3) before the earliest of the date of--
``(A) initiating any liquidation;
``(B) requesting the conveyance of security
property;
``(C) accelerating the loan;
``(D) repossessing property;
``(E) foreclosing on property; or
``(F) taking any other collection action.
``(e) Consideration of Borrowers for Loan Service Programs.--
``(1) In general.--The Secretary shall consider a farmer
program loan borrower for all loan service programs if, not
later than 60 days after receipt of the notice described in
subsection (b), the borrower requests the consideration in
writing.
``(2) Priority.--In considering a borrower for a loan
service program, the Secretary shall place the highest priority
on the preservation of the farming operations of the borrower.
``SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDELINES.
``(a) In General.--The Secretary shall ensure that appropriate
procedures, including, to the extent practicable, onsite inspections,
or use of county or State yield averages, are used in calculating
future yields for an applicant for a loan, when an accurate projection
cannot be made because the past production history of the farmer has
been affected by a natural or major disaster or emergency.
``(b) Calculation of Yields.--
``(1) In general.--For the purpose of averaging the past
yields of the farm of a farmer over a period of crop years to
calculate the future yield of the farm under this subtitle, the
Secretary shall permit the farmer to exclude the crop year with
the lowest actual or county average yield for the farm from the
calculation, if the farmer was affected by a natural or major
disaster or emergency during at least 2 of the crop years
during the period.
``(2) Affected by a natural or major disaster or
emergency.--A farmer was affected by a natural or major
disaster or emergency under paragraph (1) if the Secretary
finds that the farming operations of the farmer have been
substantially affected by a natural or major disaster or
emergency, including a farmer who has a qualifying loss but is
not located in a designated or declared disaster area.
``(3) Application of subsection.--This subsection shall
apply to any action taken by the Secretary that involves--
``(A) a loan under chapter 1 or 2; and
``(B) the yield of a farm of a farmer, including
making a loan or loan guarantee, servicing a loan, or
making a credit sale.
``SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON LOANS.
``(a) Applicant Requirements.--In connection with a loan made or
guaranteed under this subtitle, the Secretary shall require--
``(1) the applicant--
``(A) to certify in writing that, and the Secretary
shall determine whether, the applicant is unable to
obtain credit elsewhere; and
``(B) to furnish an appropriate written financial
statement;
``(2) except for a guaranteed loan, an agreement by the
borrower that if at any time it appears to the Secretary that
the borrower may be able to obtain a loan from a production
credit association, a Federal land bank, or other responsible
cooperative or private credit source (or, in the case of a
borrower under section 3106, the borrower may be able to obtain
a loan under section 3101), at reasonable rates and terms for
loans for similar purposes and periods of time, the borrower
will, on request by the Secretary, apply for and accept the
loan in a sufficient amount to repay the Secretary or the
insured lender, or both, and to pay for any stock necessary to
be purchased in a cooperative lending agency in connection with
the loan;
``(3) such provision for supervision of the operations of
the borrower as the Secretary shall consider necessary to
achieve the objectives of the loan and protect the interests of
the United States; and
``(4) the application of a person who is a veteran for a
loan under chapter 1 or 2 to be given preference over a similar
application from a person who is not a veteran if the
applications are on file in a county or area office at the same
time.
``(b) Agency Processing Requirements.--
``(1) Notifications.--
``(A) Incomplete application notification.--If an
application for a loan or loan guarantee under this
subtitle (other than an operating loan or loan
guarantee) is incomplete, the Secretary shall inform
the applicant of the reasons the application is
incomplete not later than 20 days after the date on
which the Secretary has received the application.
``(B) Operating loans.--
``(i) Additional information needed.--Not
later than 10 calendar days after the Secretary
receives an application for an operating loan
or loan guarantee, the Secretary shall notify
the applicant of any information required
before a decision may be made on the
application.
``(ii) Information not received.--If, not
later than 20 calendar days after the date a
request is made pursuant to clause (i) with
respect to an application, the Secretary has
not received the information requested, the
Secretary shall notify the applicant and the
district office of the Farm Service Agency, in
writing, of the outstanding information.
``(C) Request information.--
``(i) In general.--On receipt of an
application, the Secretary shall request from
other parties such information as may be needed
in connection with the application.
``(ii) Information from an agency of the
department.--Not later than 15 calendar days
after the date on which an agency of the
Department receives a request for information
made pursuant to subparagraph (A), the agency
shall provide the Secretary with the requested
information.
``(2) Report of pending applications.--
``(A) In general.--A county office shall notify the
district office of the Farm Service Agency of each
application for an operating loan or loan guarantee
that is pending more than 45 days after receipt, and
the reasons for which the application is pending.
``(B) Action on pending applications.--A district
office that receives a notice provided under
subparagraph (A) with respect to an application shall
immediately take steps to ensure that final action is
taken on the application not later than 15 days after
the date of the receipt of the notice.
``(C) Pending application report.--The district
office shall report to the State office of the Farm
Service Agency on each application for an operating
loan or loan guarantee that is pending more than 45
days after receipt, and the reasons for which the
application is pending.
``(D) Report to congress.--Each month, the
Secretary shall notify the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, on
a State-by-State basis, as to each application for an
operating loan or loan guarantee on which final action
had not been taken within 60 calendar days after
receipt by the Secretary, and the reasons for which
final action had not been taken.
``(3) Disapprovals.--
``(A) In general.--If an application for a loan or
loan guarantee under this subtitle is disapproved by
the Secretary, the Secretary shall state the reasons
for the disapproval in the notice required under
paragraph (1).
``(B) Disapproval due to lack of funds.--
``(i) In general.--Notwithstanding
paragraph (1), each application for a loan or
loan guarantee under section 3601(e), or for a
loan under section 3501(a) or 3502(a), that is
to be disapproved by the Secretary solely
because the Secretary lacks the funds necessary
to make the loan or guarantee shall not be
disapproved but shall be placed in pending
status.
``(ii) Reconsideration.--The Secretary
shall retain each pending application and
reconsider the application beginning on the
date that sufficient funds become available.
``(iii) Notification.--Not later than 60
days after funds become available regarding
each pending application, the Secretary shall
notify the applicant of the approval or
disapproval of funding for the application.
``(4) Approvals on appeal.--If an application for a loan or
loan guarantee under this subtitle is disapproved by the
Secretary, but that action is subsequently reversed or revised
as the result of an appeal within the Department or to the
courts of the United States and the application is returned to
the Secretary for further consideration, the Secretary shall
act on the application and provide the applicant with notice of
the action not later than 15 days after the date of return of
the application to the Secretary.
``(5) Provision of proceeds.--
``(A) In general.--Except as provided in
subparagraph (B), if an application for a guaranteed
loan under this subtitle is approved by the Secretary,
the Secretary shall provide the loan proceeds to the
applicant not later than 15 days (or such longer period
as the applicant may approve) after the application for
the loan is approved by the Secretary.
``(B) Lack of funds.--If the Secretary is unable to
provide the loan proceeds to the applicant during the
15-day period described in subparagraph (A) because
sufficient funds are not available to the Secretary for
that purpose, the Secretary shall provide the loan
proceeds to the applicant as soon as practicable (but
in no event later than 15 days unless the applicant
agrees to a longer period) after sufficient funds for
that purpose become available to the Secretary.
``SEC. 3407. GRADUATION OF BORROWERS.
``(a) Graduation of Seasoned Direct Loan Borrowers to the Loan
Guarantee Program.--
``(1) Review of loans.--
``(A) In general.--The Secretary, or a contracting
third party, shall annually review under section 3420
the loans of each seasoned direct loan borrower.
``(B) Assistance.--If, based on the review, it is
determined that a borrower would be able to obtain a
loan, guaranteed by the Secretary, from a commercial or
cooperative lender at reasonable rates and terms for
loans for similar purposes and periods of time, the
Secretary shall assist the borrower in applying for the
commercial or cooperative loan.
``(2) Prospectus.--
``(A) In general.--In accordance with section 3422,
the Secretary shall prepare a prospectus on each
seasoned direct loan borrower determined eligible to
obtain a guaranteed loan.
``(B) Requirements.--The prospectus shall contain a
description of the amounts of the loan guarantee and
interest assistance that the Secretary will provide to
the seasoned direct loan borrower to enable the
seasoned direct loan borrower to carry out a
financially viable farming plan if a guaranteed loan is
made.
``(3) Verification.--
``(A) In general.--The Secretary shall provide a
prospectus of a seasoned direct loan borrower to each
approved lender whose lending area includes the
location of the seasoned direct loan borrower.
``(B) Notification.--The Secretary shall notify
each borrower of a loan that a prospectus has been
provided to a lender under subparagraph (A).
``(C) Credit extended.--If the Secretary receives
an offer from an approved lender to extend credit to
the seasoned direct loan borrower under terms and
conditions contained in the prospectus, the seasoned
direct loan borrower shall not be eligible for a loan
from the Secretary under chapter 1 or 2, except as
otherwise provided in this section.
``(4) Insufficient assistance or offers.--If the Secretary
is unable to provide loan guarantees and, if necessary,
interest assistance to the seasoned direct loan borrower under
this section in amounts sufficient to enable the seasoned
direct loan borrower to borrow from commercial sources the
amount required to carry out a financially viable farming plan,
or if the Secretary does not receive an offer from an approved
lender to extend credit to a seasoned direct loan borrower
under the terms and conditions contained in the prospectus, the
Secretary shall make a loan to the seasoned direct loan
borrower under chapter 1 or 2, whichever is applicable.
``(5) Interest rate reductions.--To the extent necessary
for the borrower to obtain a loan, guaranteed by the Secretary,
from a commercial or cooperative lender, the Secretary shall
provide interest rate reductions as provided for under section
3413.
``(b) Transition to Private Commercial or Other Sources of
Credit.--
``(1) In general.--In making an operating or ownership
loan, the Secretary shall establish a plan and promulgate
regulations (including performance criteria) that promote the
goal of transitioning borrowers to private commercial credit
and other sources of credit in the shortest period of time
practicable.
``(2) Coordination.--In carrying out this section, the
Secretary shall integrate and coordinate the transition policy
described in subsection (a) with--
``(A) the borrower training program established by
section 3419;
``(B) the loan assessment process established by
section 3420;
``(C) the supervised credit requirement established
by section 3421;
``(D) the market placement program established by
section 3422; and
``(E) other appropriate programs and authorities,
as determined by the Secretary.
``(c) Graduation of Borrowers With Operating Loans or Guarantees to
Private Commercial Credit.--The Secretary shall establish a plan, in
coordination with activities under sections 3419 through 3422, to
encourage each borrower with an outstanding loan under this chapter, or
with respect to whom there is an outstanding guarantee under this
chapter, to graduate to private commercial or other sources of credit.
``SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING.
``In carrying out this subtitle, the Secretary may--
``(1) provide voluntary debt adjustment assistance
between--
``(A) farmers; and
``(B) the creditors of the farmers;
``(2) cooperate with State, territorial, and local agencies
and committees engaged in the debt adjustment; and
``(3) give credit counseling.
``SEC. 3409. SECURITY SERVICING.
``(a) Sale of Property.--
``(1) In general.--Subject to this subsection and
subsection (e)(1), the Secretary shall offer to sell real
property that is acquired by the Secretary under this subtitle
using the following order and method of sale:
``(A) Advertisement.--Not later than 15 days after
acquiring real property, the Secretary shall publicly
advertise the property for sale.
``(B) Qualified beginning farmer.--
``(i) In general.--Not later than 135 days
after acquiring real property, the Secretary
shall offer to sell the property to a qualified
beginning farmer or a socially disadvantaged
farmer at current market value based on a
current appraisal.
``(ii) Random selection.--If more than 1
qualified beginning farmer or socially
disadvantaged farmer offers to purchase the
property, the Secretary shall select between
the qualified applicants on a random basis.
``(iii) Appeal of random selection.--A
random selection or denial by the Secretary of
a qualified beginning farmer or a socially
disadvantaged farmer for farm inventory
property under this subparagraph shall be final
and not administratively appealable.
``(C) Public sale.--If no acceptable offer is
received from a qualified beginning farmer or a
socially disadvantaged farmer under subparagraph (B)
not later than 135 days after acquiring the real
property, the Secretary shall, not later than 30 days
after the 135-day period, sell the property after
public notice at a public sale, and, if no acceptable
bid is received, by negotiated sale, at the best price
obtainable.
``(2) Interest.--
``(A) In general.--Subject to subparagraph (B), any
conveyance of real property under this subsection shall
include all of the interest of the United States in the
property, including mineral rights.
``(B) Conservation.--The Secretary may for
conservation purposes grant or sell an easement,
restriction, development right, or similar legal right
to real property 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.
``(3) Other law.--Subtitle I of title 40, United States
Code, and title III of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 251 et seq.) shall not apply to
any exercise of authority under this subtitle.
``(4) Lease of property.--
``(A) In general.--Subject to subparagraph (B), the
Secretary may not lease any real property acquired
under this subtitle.
``(B) Exception.--
``(i) Qualified beginning farmer or
socially disadvantaged farmer.--The Secretary
may lease or contract to sell to a qualified
beginning farmer or a socially disadvantaged
farmer a farm acquired by the Secretary under
this subtitle if the qualified beginning farmer
qualifies for a credit sale or direct farm
ownership loan under chapter 1 but credit sale
authority for loans or direct farm ownership
loan funds, respectively, are not available.
``(ii) Term.--The term of a lease or
contract to sell to a qualified beginning
farmer or a socially disadvantaged farmer under
clause (i) shall be until the earlier of--
``(I) the date that is 18 months
after the date of the lease or sale; or
``(II) the date that direct farm
ownership loan funds or credit sale
authority for loans becomes available
to the qualified beginning farmer or
socially disadvantaged farmer.
``(iii) Income-producing capability.--In
determining the rental rate on real property
leased under this subparagraph, the Secretary
shall consider the income-producing capability
of the property during the term that the
property is leased.
``(5) Expedited determination.--
``(A) In general.--On the request of an applicant,
not later than 30 days after denial of the application,
the appropriate State director shall provide an
expedited review and determination of whether the
applicant is a qualified beginning farmer or a socially
disadvantaged farmer for the purpose of acquiring farm
inventory property.
``(B) Appeal.--The determination of a State
Director under subparagraph (A) shall be final and not
administratively appealable.
``(C) Effects of determinations.--
``(i) In general.--The Secretary shall
maintain statistical data on the number and
results of determinations made under
subparagraph (A) and the effect of the
determinations on--
``(I) selling farm inventory
property to qualified beginning farmers
or socially disadvantaged farmers; and
``(II) disposing of real property
in inventory.
``(ii) Notification.--The Secretary shall
notify the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate if the Secretary determines that the
review process under subparagraph (A) is
adversely affecting the selling of farm
inventory property to qualified beginning
farmers or socially disadvantaged farmers or
the disposing of real property in inventory.
``(b) Road and Utility Easements and Condemnations.--In the case of
any real property administered under this subtitle, the Secretary may
grant or sell easements or rights-of-way for roads, utilities, and
other appurtenances that are not inconsistent with the public interest.
``(c) Sale or Lease of Farmland.--
``(1) Disposition of real property on indian
reservations.--
``(A) Definition of indian reservation.--In this
paragraph, the term `Indian reservation' means--
``(i) all land located within the limits of
any Indian reservation under the jurisdiction
of the United States, notwithstanding the
issuance of any patent, and, including any
right-of-way running through the reservation;
``(ii) trust or restricted land located
within the boundaries of a former reservation
of an Indian tribe in the State of Oklahoma; or
``(iii) all Indian allotments the Indian
titles to which have not been extinguished if
the allotments are subject to the jurisdiction
of an Indian tribe.
``(B) Disposition.--Except as provided in paragraph
(3), the Secretary shall dispose of or administer the
property as provided in this paragraph when--
``(i) the Secretary acquires property under
this subtitle that is located within an Indian
reservation; and
``(ii) the borrower-owner is the Indian
tribe that has jurisdiction over the
reservation in which the real property is
located or the borrower-owner is a member of
the Indian tribe;
``(C) Priority.--Not later than 90 days after
acquiring the property, the Secretary shall afford an
opportunity to purchase or lease the real property in
accordance with the order of priority established under
subparagraph (D) to the Indian tribe having
jurisdiction over the Indian reservation within which
the real property is located or, if no order of
priority is established by the Indian tribe under
subparagraph (D), in the following order:
``(i) An Indian member of the Indian tribe
that has jurisdiction over the reservation
within which the real property is located.
``(ii) An Indian corporate entity.
``(iii) The Indian tribe.
``(D) Revision of priority and restriction of
eligibility.--The governing body of any Indian tribe
having jurisdiction over an Indian reservation may
revise the order of priority provided in subparagraph
(C) under which land located within the reservation
shall be offered for purchase or lease by the Secretary
under subparagraph (C) and may restrict the eligibility
for the purchase or lease to--
``(i) persons who are members of the Indian
tribe;
``(ii) Indian corporate entities that are
authorized by the Indian tribe to lease or
purchase land within the boundaries of the
reservation; or
``(iii) the Indian tribe itself.
``(E) Transfer of property to secretary of the
interior.--
``(i) In general.--If real property
described in subparagraph (B) is not purchased
or leased under subparagraph (C) and the Indian
tribe having jurisdiction over the reservation
within which the real property is located is
unable to purchase or lease the real property,
the Secretary shall transfer the real property
to the Secretary of the Interior who shall
administer the real property as if the real
property were held in trust by the United
States for the benefit of the Indian tribe.
``(ii) Use of rental income.--From the
rental income derived from the lease of the
transferred real property, and all other income
generated from the transferred real property,
the Secretary of the Interior shall pay the
State, county, municipal, or other local taxes
to which the transferred real property was
subject at the time of acquisition by the
Secretary, until the earlier of--
``(I) the expiration of the 4-year
period beginning on the date on which
the real property is so transferred; or
``(II) such time as the land is
transferred into trust pursuant to
subparagraph (H).
``(F) Responsibilities of secretaries.--If any real
property is transferred to the Secretary of the
Interior under subparagraph (E)--
``(i) the Secretary of Agriculture shall
have no further responsibility under this
subtitle for--
``(I) collection of any amounts
with regard to the farm program loan
that had been secured by the real
property;
``(II) any lien arising out of the
loan transaction; or
``(III) repayment of any amount
with regard to the loan transaction or
lien to the Treasury of the United
States; and
``(ii) the Secretary of the Interior shall
succeed to all right, title, and interest of
the Secretary of Agriculture in the real estate
arising from the farm program loan transaction,
including the obligation to remit to the
Treasury of the United States, in repayment of
the original loan, the amounts provided in
subparagraph (G).
``(G) Use of income.--After the payment of any
taxes that are required to be paid under subparagraph
(E)(ii), all remaining rental income derived from the
lease of the real property transferred to the Secretary
of the Interior under subparagraph (E)(i), and all
other income generated from the real property
transferred to the Secretary of the Interior under that
subparagraph, shall be deposited as miscellaneous
receipts in the Treasury of the United States until the
amount deposited is equal to the lesser of--
``(i) the amount of the outstanding lien of
the United States against the real property, as
of the date the real property was acquired by
the Secretary;
``(ii) the fair market value of the real
property, as of the date of the transfer to the
Secretary of the Interior; or
``(iii) the capitalized value of the real
property, as of the date of the transfer to the
Secretary of the Interior.
``(H) Holding of title in trust.--If the total
amount that is required to be deposited under
subparagraph (G) with respect to any real property has
been deposited into the Treasury of the United States,
title to the real property shall be held in trust by
the United States for the benefit of the Indian tribe
having jurisdiction over the Indian reservation within
which the real property is located.
``(I) Payment of remaining lien or fair market
value of property.--
``(i) In general.--Notwithstanding any
other subparagraph of this paragraph, the
Indian tribe having jurisdiction over the
Indian reservation within which the real
property described in subparagraph (B) is
located may, at any time after the real
property has been transferred to the Secretary
of the Interior under subparagraph (E), offer
to pay the remaining amount on the lien or the
fair market value of the real property,
whichever is less.
``(ii) Effect of payment.--On payment of
the amount, title to the real property shall be
held by the United States in trust for the
tribe and the trust or restricted land that has
been acquired by the Secretary under
foreclosure or voluntary transfer under a loan
made or insured under this subtitle and
transferred to an Indian person, entity, or
tribe under this paragraph shall be considered
to have never lost trust or restricted status.
``(J) Applicability.--
``(i) In general.--This paragraph shall
apply to all land in the land inventory
established under this subtitle (as of November
28, 1990) that was (immediately prior to the
date) owned by an Indian borrower-owner
described in subparagraph (B) and that is
situated within an Indian reservation,
regardless of the date of foreclosure or
acquisition by the Secretary.
``(ii) Opportunity to purchase or lease.--
The Secretary shall afford an opportunity to an
Indian person, entity, or tribe to purchase or
lease the real property as provided in
subparagraph (C).
``(iii) Transfer.--If the right is not
exercised or no expression of intent to
exercise the right is received within 180 days
after November 28, 1990, the Secretary shall
transfer the real property to the Secretary of
the Interior as provided in subparagraph (E).
``(2) Additional rights.--The rights provided in this
subsection shall be in addition to any right of first refusal
under the law of the State in which the property is located.
``(3) Disposition of real property on indian reservations
after procedures exhausted.--
``(A) In general.--The Secretary shall dispose of
or administer real property described in paragraph
(1)(B) only as provided in paragraph (1), as modified
by this paragraph, if--
``(i) the real property described in
paragraph (1)(B) is located within an Indian
reservation;
``(ii) the borrower-owner is an Indian
tribe that has jurisdiction over the
reservation in which the real property is
located or the borrower-owner is a member of an
Indian tribe;
``(iii) the borrower-owner has obtained a
loan made or guaranteed under this subtitle;
and
``(iv) the borrower-owner and the Secretary
have exhausted all of the procedures provided
for in this subtitle to permit a borrower-owner
to retain title to the real property, so that
it is necessary for the borrower-owner to
relinquish title.
``(B) Notice of right to convey property.--The
Secretary shall provide the borrower-owner of real
property that is described in subparagraph (A) with
written notice of--
``(i) the right of the borrower-owner to
voluntarily convey the real property to the
Secretary; and
``(ii) the fact that real property so
conveyed will be placed in the inventory of the
Secretary.
``(C) Notice of rights and protections.--The
Secretary shall provide the borrower-owner of the real
property with written notice of the rights and
protections provided under this subtitle to the
borrower-owner, and the Indian tribe that has
jurisdiction over the reservation in which the real
property is located, from foreclosure or liquidation of
the real property, including written notice--
``(i) of paragraph (1), this paragraph, and
subsection (e)(3);
``(ii) if the borrower-owner does not
voluntarily convey the real property to the
Secretary, that--
``(I) the Secretary may foreclose
on the property;
``(II) in the event of foreclosure,
the property will be offered for sale;
``(III) the Secretary shall offer a
bid for the property that is equal to
the fair market value of the property
or the outstanding principal and
interest of the loan, whichever is
higher;
``(IV) the property may be
purchased by another party; and
``(V) if the property is purchased
by another party, the property will not
be placed in the inventory of the
Secretary and the borrower-owner will
forfeit the rights and protections
provided under this subtitle; and
``(iii) of the opportunity of the borrower-
owner to consult with the Indian tribe that has
jurisdiction over the reservation in which the
real property is located or counsel to
determine if State or tribal law provides
rights and protections that are more beneficial
than the rights and protections provided the
borrower-owner under this subtitle.
``(D) Acceptance of voluntary conveyance.--
``(i) In general.--Except as provided in
clause (ii), the Secretary shall accept the
voluntary conveyance of real property described
in subparagraph (A).
``(ii) Hazardous substances.--If a
hazardous substance (as defined in section
101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601(14))) is located on the
property and the Secretary takes remedial
action to protect human health or the
environment if the property is taken into
inventory, the Secretary shall accept the
voluntary conveyance of the property only if
the Secretary determines that the conveyance is
in the best interests of the Federal
Government.
``(E) Foreclosure procedures.--
``(i) Notice to borrower.--If an Indian
borrower-owner does not voluntarily convey to
the Secretary real property described in
subparagraph (A), not less than 30 days before
a foreclosure sale of the property, the
Secretary shall provide the Indian borrower-
owner with the option of--
``(I) requiring the Secretary to
assign the loan and security
instruments to the Secretary of the
Interior, if the Secretary of the
Interior agrees to an assignment
releasing the Secretary of Agriculture
from all further responsibility for
collection of any amounts with regard
to the loan secured by the real
property; or
``(II) requiring the Secretary to
assign the loan and security
instruments to the tribe having
jurisdiction over the reservation in
which the real property is located, if
the tribe agrees to assume the loan
under the terms specified in clause
(iii).
``(ii) Notice to tribe.--If an Indian
borrower-owner does not voluntarily convey to
the Secretary real property described in
subparagraph (A), not less than 30 days before
a foreclosure sale of the property, the
Secretary shall provide written notice to the
Indian tribe that has jurisdiction over the
reservation in which the real property is
located of--
``(I) the sale;
``(II) the fair market value of the
property; and
``(III) the requirements of this
paragraph.
``(iii) Assumed loans.--If an Indian tribe
assumes a loan under clause (i)--
``(I) the Secretary shall not
foreclose the loan because of any
default that occurred prior to the date
of the assumption;
``(II) the loan shall be for the
lesser of the outstanding principal and
interest of the loan or the fair market
value of the property; and
``(III) the loan shall be treated
as though the loan was made under
Public Law 91-229 (25 U.S.C. 488 et
seq.).
``(F) Amount of bid by secretary.--
``(i) In general.--Except as provided in
clause (ii), at a foreclosure sale of real
property described in subparagraph (A), the
Secretary shall offer a bid for the property
that is equal to the higher of--
``(I) the fair market value of the
property; or
``(II) the outstanding principal
and interest on the loan.
``(ii) Hazardous substances.--If a
hazardous substance (as defined in section
101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601(14))) is located on the
property and the Secretary takes remedial
action to protect human health or the
environment if the property is taken into
inventory, clause (i) shall apply only if the
Secretary determines that bidding is in the
best interests of the Federal Government.
``(4) Detrimental effect on value of area farmland.--The
Secretary shall not offer for sale or sell any farmland
referred to in paragraphs (1) through (3) if placing the
farmland on the market will have a detrimental effect on the
value of farmland in the area.
``(5) Installment sales and multiple operators.--
``(A) In general.--The Secretary may sell farmland
administered under this subtitle through an installment
sale or similar device that contains such terms as the
Secretary considers necessary to protect the investment
of the Federal Government in the land.
``(B) Sale of contract.--The Secretary may
subsequently sell any contract entered into to carry
out subparagraph (A).
``(6) Highly erodible land.--In the case of farmland
administered under this subtitle that is highly erodible land
(as defined in section 1201 of the Food Security Act of 1985
(16 U.S.C. 3801)), the Secretary may require the use of
specified conservation practices on the land as a condition of
the sale or lease of the land.
``(7) No effect on acreage allotments, marketing quotas, or
acreage bases.--Notwithstanding any other law, compliance by
the Secretary with this subsection shall not cause any acreage
allotment, marketing quota, or acreage base assigned to the
property to lapse, terminate, be reduced, or otherwise be
adversely affected.
``(8) No preemption of state law.--If a conflict exists
between any provision of this subsection and any provision of
the law of any State providing a right of first refusal to the
owner of farmland or the operator of a farm before the sale or
lease of land to any other person, the provision of State law
shall prevail.
``(d) Release of Normal Income Security.--
``(1) Definition of normal income security.--In this
subsection:
``(A) In general.--Except as provided in
subparagraph (B), the term `normal income security'
means all security not considered basic security,
including crops, livestock, poultry products, Farm
Service Agency payments and Commodity Credit
Corporation payments, and other property covered by
Farm Service Agency liens that is sold in conjunction
with the operation of a farm or other business.
``(B) Exceptions.--The term `normal income
security' does not include any equipment (including
fixtures in States that have adopted the Uniform
Commercial Code), or foundation herd or flock, that
is--
``(i) the basis of the farming or other
operation; and
``(ii) the basic security for a farmer
program loan.
``(2) General release.--The Secretary shall release from
the normal income security provided for a loan an amount
sufficient to pay for the essential household and farm
operating expenses of the borrower, until such time as the
Secretary accelerates the loan.
``(3) Notice of reporting requirements and rights.--If a
borrower is required to plan for or to report as to how
proceeds from the sale of collateral property will be used, the
Secretary shall notify the borrower of--
``(A) the requirement; and
``(B) the right to the release of funds under this
subsection and the means by which a request for the
funds may be made.
``(e) Easements on Inventoried Property.--
``(1) In general.--Subject to paragraph (2), in the
disposal of real property under this section, the Secretary
shall establish perpetual wetland conservation easements to
protect and restore wetland or converted wetland that exists on
inventoried property.
``(2) Limitation.--The Secretary shall not establish a
wetland conservation easement on an inventoried property that--
``(A) was cropland on the date the property entered
the inventory of the Secretary; or
``(B) was used for farming at any time during the
period--
``(i) beginning on the date that is 5 years
before the property entered the inventory of
the Secretary; and
``(ii) ending on the date on which the
property entered the inventory of the
Secretary.
``(3) Notification.--The Secretary shall provide prior
written notification to a borrower considering homestead
retention that a wetland conservation easement may be placed on
land for which the borrower is negotiating a lease option.
``(4) Appraised value.--The appraised value of the farm
shall reflect the value of the land due to the placement of
wetland conservation easements.
``SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES.
``(a) Contracts on Loan Security Properties.--Subject to subsection
(b), the Secretary may enter into a contract related to real property
for conservation, recreation, or wildlife purposes.
``(b) Limitations.--The Secretary may enter into a contract under
subsection (a) if--
``(1) the property is wetland, upland, or highly erodible
land;
``(2) the property is determined by the Secretary to be
suitable for the purpose involved; and
``(3)(A) the property secures a loan made under a law
administered and held by the Secretary; and
``(B) the contract would better enable a qualified borrower
to repay the loan in a timely manner, as determined by the
Secretary.
``(c) Terms and Conditions.--The terms and conditions specified in
a contract under subsection (a) shall--
``(1) specify the purposes for which the real property may
be used;
``(2) identify any conservation measure to be taken, and
any recreational and wildlife use to be allowed, with respect
to the real property; and
``(3) require the owner to permit the Secretary, and any
person or governmental entity designated by the Secretary, to
have access to the real property for the purpose of monitoring
compliance with the contract.
``(d) Reduction or Forgiveness of Debt.--
``(1) In general.--Subject to this section, the Secretary
may reduce or forgive the outstanding debt of a borrower--
``(A) in the case of a borrower to whom the
Secretary has made an outstanding loan under a law
administered by the Secretary, by canceling that part
of the aggregate amount of the outstanding loan that
bears the same ratio to the aggregate amount as--
``(i) the number of acres of the real
property of the borrower that are subject to
the contract; bears to
``(ii) the aggregate number of acres
securing the loan; or
``(B) in any other case, by treating as prepaid
that part of the principal amount of a new loan to the
borrower issued and held by the Secretary under a law
administered by the Secretary that bears the same ratio
to the principal amount as--
``(i) the number of acres of the real
property of the borrower that are subject to
the contract; bears to
``(ii) the aggregate number of acres
securing the new loan.
``(2) Maximum canceled amount.--The amount canceled or
treated as prepaid under paragraph (1) shall not exceed--
``(A) in the case of a delinquent loan, the greater
of--
``(i) the value of the land on which the
contract is entered into; or
``(ii) the difference between--
``(I) the amount of the outstanding
loan secured by the land; and
``(II) the value of the land; or
``(B) in the case of a nondelinquent loan, 33
percent of the amount of the loan secured by the land.
``(e) Consultation With Fish and Wildlife Service.--If the
Secretary uses the authority provided by this section, the Secretary
shall consult with the Director of the Fish and Wildlife Service for
the purposes of--
``(1) selecting real property in which the Secretary may
enter into a contract under this section;
``(2) formulating the terms and conditions of the contract;
and
``(3) enforcing the contract.
``(f) Enforcement.--The Secretary, and any person or governmental
entity (including an agency of the Federal Government) designated by
the Secretary, may enforce a contract entered into by the Secretary
under this section.
``SEC. 3411. DEBT RESTRUCTURING AND LOAN SERVICING.
``(a) In General.--The Secretary shall modify a delinquent farmer
program loan made under this subtitle, or purchased from the lender or
the Federal Deposit Insurance Corporation under section 3902, to the
maximum extent practicable--
``(1) to avoid a loss to the Secretary on the loan, with
priority consideration being placed on writing-down the loan
principal and interest (subject to subsections (d) and (e)),
and debt set-aside (subject to subsection (e)), to facilitate
keeping the borrower on the farm, or otherwise through the use
of primary loan service programs under this section; and
``(2) to ensure that a borrower is able to continue farming
operations.
``(b) Eligibility.--To be eligible to obtain assistance under
subsection (a)--
``(1) the delinquency shall be due to a circumstance beyond
the control of the borrower, as defined in regulations issued
by the Secretary, except that the regulations shall require
that, if the value of the assets calculated under subsection
(c)(2)(A)(ii) that may be realized through liquidation or other
methods would produce enough income to make the delinquent loan
current, the borrower shall not be eligible for assistance
under subsection (a);
``(2) the borrower shall have acted in good faith with the
Secretary in connection with the loan as defined in regulations
issued by the Secretary;
``(3) the borrower shall present a preliminary plan to the
Secretary that contains reasonable assumptions that demonstrate
that the borrower will be able--
``(A) to meet the necessary family living and farm
operating expenses of the borrower; and
``(B) to service all debts of the borrower,
including restructured loans; and
``(4) the loan, if restructured, shall result in a net
recovery to the Federal Government, during the term of the loan
as restructured, that would be more than or equal to the net
recovery to the Federal Government from an involuntary
liquidation or foreclosure on the property securing the loan.
``(c) Restructuring Determinations.--
``(1) Determination of net recovery.--In determining the
net recovery from the involuntary liquidation of a loan under
this section, the Secretary shall calculate--
``(A) the recovery value of the collateral securing
the loan, in accordance with paragraph (2); and
``(B) the value of the restructured loan, in
accordance with paragraph (3).
``(2) Recovery value.--For the purpose of paragraph (1),
the recovery value of the collateral securing the loan shall be
based on the difference between--
``(A)(i) the amount of the current appraised value
of the interests of the borrower in the property
securing the loan; and
``(ii) the value of the interests of the borrower
in all other assets that are--
``(I) not essential for necessary family
living expenses;
``(II) not essential to the operation of
the farm; and
``(III) not exempt from judgment creditors
or in a bankruptcy action under Federal or
State law;
``(B) the estimated administrative, attorney, and
other expenses associated with the liquidation and
disposition of the loan and collateral, including--
``(i) the payment of prior liens;
``(ii) taxes and assessments, depreciation,
management costs, the yearly percentage
decrease or increase in the value of the
property, and lost interest income, each
calculated for the average holding period for
the type of property involved;
``(iii) resale expenses, such as repairs,
commissions, and advertising; and
``(iv) other administrative and attorney
costs; and
``(C) the value, as determined by the Secretary, of
any property not included in subparagraph (A)(i) if the
property is specified in any security agreement with
respect to the loan and the Secretary determines that
the value of the property should be included for
purposes of this section.
``(3) Value of the restructured loan.--
``(A) In general.--For the purpose of paragraph
(1), the value of the restructured loan shall be based
on the present value of payments that the borrower
would make to the Federal Government if the terms of
the loan were modified under any combination of primary
loan service programs to ensure that the borrower is
able to meet the obligations and continue farming
operations.
``(B) Present value.--For the purpose of
calculating the present value referred to in
subparagraph (A), the Secretary shall use a discount
rate of not more than the current rate at the time of
the calculation of 90-day Treasury bills.
``(C) Cash flow margin.--For the purpose of
assessing under subparagraph (A) the ability of a
borrower to meet debt obligations and continue farming
operations, the Secretary shall assume that the
borrower needs up to 110 percent of the amount
indicated for payment of farm operating expenses, debt
service obligations, and family living expenses.
``(4) Notification.--Not later than 90 days after receipt
of a written request for restructuring from the borrower, the
Secretary shall--
``(A) make the calculations specified in paragraphs
(2) and (3);
``(B) notify the borrower in writing of the results
of the calculations; and
``(C) provide documentation for the calculations.
``(5) Restructuring of loans.--
``(A) In general.--If the value of a restructured
loan is greater than or equal to the recovery value of
the collateral securing the loan, not later than 45
days after notifying the borrower under paragraph (4),
the Secretary shall offer to restructure the loan
obligations of the borrower under this subtitle through
primary loan service programs that would enable the
borrower to meet the obligations (as modified) under
the loan and to continue the farming operations of the
borrower.
``(B) Restructuring.--If the borrower accepts an
offer under subparagraph (A), not later than 45 days
after receipt of notice of acceptance, the Secretary
shall restructure the loan accordingly.
``(6) Termination of loan obligations.--The obligations of
a borrower to the Secretary under a loan shall terminate if--
``(A) the borrower satisfies the requirements of
paragraphs (1) and (2) of subsection (b);
``(B) the value of the restructured loan is less
than the recovery value; and
``(C) not later than 90 days after receipt of the
notification described in paragraph (4)(B), the
borrower pays (or obtains third-party financing to pay)
the Secretary an amount equal to the current market
value.
``(7) Negotiation of appraisal.--
``(A) In general.--In making a determination
concerning restructuring under this subsection, the
Secretary, at the request of the borrower, shall enter
into negotiations with the borrower concerning
appraisals required under this subsection.
``(B) Independent appraisal.--
``(i) In general.--If the borrower, based
on a separate current appraisal, objects to the
decision of the Secretary regarding an
appraisal, the borrower and the Secretary shall
mutually agree, to the extent practicable, on
an independent appraiser who shall conduct
another appraisal of the property of the
borrower.
``(ii) Value of final appraisal.--The
average of the 2 appraisals under clause (i)
that are closest in value shall become the
final appraisal under this paragraph.
``(iii) Cost of appraisal.--The borrower
and the Secretary shall each pay \1/2\ of the
cost of any independent appraisal.
``(d) Principal and Interest Write-Down.--
``(1) In general.--
``(A) Priority consideration.--In selecting the
restructuring alternatives to be used in the case of a
borrower who has requested restructuring under this
section, the Secretary shall give priority
consideration to the use of a principal and interest
write-down if other creditors of the borrower (other
than any creditor who is fully collateralized)
representing a substantial portion of the total debt of
the borrower held by the creditors of the borrower,
agree to participate in the development of the
restructuring plan or agree to participate in a State
mediation program.
``(B) Failure of creditors to agree.--Failure of
creditors to agree to participate in the restructuring
plan or mediation program shall not preclude the use of
a principal and interest write-down by the Secretary if
the Secretary determines that restructuring results in
the least cost to the Secretary.
``(2) Participation of creditors.--Before eliminating the
option to use debt write-down in the case of a borrower, the
Secretary shall make a reasonable effort to contact the
creditors of the borrower, either directly or through the
borrower, and encourage the creditors to participate with the
Secretary in the development of a restructuring plan for the
borrower.
``(e) Shared Appreciation Arrangements.--
``(1) In general.--As a condition of restructuring a loan
in accordance with this section, the borrower of the loan may
be required to enter into a shared appreciation arrangement
that requires the repayment of amounts written off or set
aside.
``(2) Terms.--A shared appreciation agreement shall--
``(A) have a term not to exceed 10 years; and
``(B) provide for recapture based on the difference
between the appraised values of the real security
property at the time of restructuring and at the time
of recapture.
``(3) Percentage of recapture.--The amount of the
appreciation to be recaptured by the Secretary shall be--
``(A) 75 percent of the appreciation in the value
of the real security property if the recapture occurs
not later than 4 years after the date of restructuring;
and
``(B) 50 percent if the recapture occurs during the
remainder of the term of the agreement.
``(4) Time of recapture.--Recapture shall take place on the
date that is the earliest of--
``(A) the end of the term of the agreement;
``(B) the conveyance of the real security property;
``(C) the repayment of the loans; or
``(D) the cessation of farming operations by the
borrower.
``(5) Transfer of title.--Transfer of title to the spouse
of a borrower on the death of the borrower shall not be treated
as a conveyance for the purpose of paragraph (4).
``(6) Notice of recapture.--Not later than 12 months before
the end of the term of a shared appreciation arrangement, the
Secretary shall notify the borrower involved of the provisions
of the arrangement.
``(7) Financing of recapture payment.--
``(A) In general.--The Secretary may amortize a
recapture payment owed to the Secretary under this
subsection.
``(B) Term.--The term of an amortization under this
paragraph may not exceed 25 years.
``(C) Interest rate.--The interest rate applicable
to an amortization under this paragraph may not exceed
the rate applicable to a loan to reacquire homestead
property less 100 basis points.
``(D) Reamortization.--
``(i) In general.--The Secretary may modify
the amortization of a recapture payment
referred to in subparagraph (A) of this
paragraph on which a payment has become
delinquent if--
``(I) the default is due to
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.
``(ii) Limitations.--
``(I) Term of reamortization.--The
term of a reamortization under this
subparagraph may not exceed 25 years
from the date of the original
amortization agreement.
``(II) No reduction or principal or
unpaid interest due.--A reamortization
of a recapture payment under this
subparagraph may not provide for
reducing the outstanding principal or
unpaid interest due on the recapture
payment.
``(f) Interest Rates.--Any loan for farm ownership purposes, farm
operating purposes, or disaster emergency purposes, that is deferred,
consolidated, rescheduled, or reamortized shall, notwithstanding any
other provision of this subtitle, bear interest on the balance of the
original loan and for the term of the original loan at a rate that is
the lowest of--
``(1) the rate of interest on the 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 rate being charged by the Secretary for loans,
other than guaranteed loans, of the same type at the time of
the deferral, consolidation, rescheduling, or reamortization.
``(g) Period and Effect.--
``(1) Period.--The Secretary may consolidate or reschedule
outstanding loans for payment over a period not to exceed 7
years (or, in the case of loans for farm operating purposes, 15
years) from the date of the consolidation or rescheduling.
``(2) Effect.--The amount of unpaid principal and interest
of the prior loans so consolidated or rescheduled shall not
create a new charge against any loan levels authorized by law.
``(h) Prerequisites to Foreclosure or Liquidation.--No foreclosure
or other similar action shall be taken to liquidate any loan determined
to be ineligible for restructuring by the Secretary under this
section--
``(1) until the borrower has been given the opportunity to
appeal the decision; and
``(2) if the borrower appeals, the appeals process has been
completed, and a determination has been made that the loan is
ineligible for restructuring.
``(i) Notice of Ineligibility for Restructuring.--
``(1) In general.--A notice of ineligibility for
restructuring shall be sent to the borrower by registered or
certified mail not later than 15 days after a determination of
ineligibility.
``(2) Contents.--The notice required under paragraph (1)
shall contain--
``(A) the determination and the reasons for the
determination;
``(B) the computations used to make the
determination, including the calculation of the
recovery value of the collateral securing the loan; and
``(C) a statement of the right of the borrower to
appeal the decision to the appeals division, and to
appear before a hearing officer.
``(j) Independent Appraisals.--
``(1) In general.--An appeal may include a request by the
borrower for an independent appraisal of any property securing
the loan.
``(2) Process for appraisal.--On a request under paragraph
(1), the Secretary shall present the borrower with a list of 3
appraisers approved by the county supervisor, from which the
borrower shall select an appraiser to conduct the appraisal.
``(3) Cost.--The cost of an appraisal under this subsection
shall be paid by the borrower.
``(4) Result.--The result of an appraisal under this
subsection shall be considered in any final determination
concerning the loan.
``(5) Copy.--A copy of any appraisal under this subsection
shall be provided to the borrower.
``(k) Only 1 Write-Down or Net Recovery Buy-Out Per Borrower for a
Loan Made After January 6, 1988.--
``(1) In general.--The Secretary may provide for each
borrower not more than 1 write-down or net recovery buy-out
under this section with respect to all loans made to the
borrower after January 6, 1988.
``(2) Special rule.--For purposes of paragraph (1), the
Secretary shall treat any loan made on or before January 6,
1988, with respect to which a restructuring, write-down, or net
recovery buy-out is provided under this section after January
6, 1988, as a loan made after January 6, 1988.
``(l) Liquidation of Assets.--The Secretary may not use the
authority provided by this section to reduce or terminate any portion
of the debt of the borrower that the borrower could pay through the
liquidation of assets (or through the payment of the loan value of the
assets, if the loan value is greater than the liquidation value)
described in subsection (c)(2)(A)(ii).
``(m) Lifetime Limitation on Debt Forgiveness Per Borrower.--The
Secretary may provide each borrower not more than $300,000 in debt
forgiveness under this section.
``SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM CERTAIN
AGRICULTURAL LOAN OBLIGATIONS.
``(a) Definition of Mobilized Military Reservist.--In this section,
the term `mobilized military reservist' means an individual who--
``(1) is on active duty under section 688, 12301(a),
12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of title
10, United States Code, or any other provision of law during a
war or during a national emergency declared by the President or
Congress, regardless of the location at which the active duty
service is performed; or
``(2) in the case of a member of the National Guard, is on
full-time National Guard duty (as defined in section 101(d)(5)
of title 10, United States Code) under a call to active service
authorized by the President or the Secretary of Defense for a
period of more than 30 consecutive days under section 502(f) of
title 32, United States Code, for purposes of responding to a
national emergency declared by the President and supported by
Federal funds.
``(b) Forgiveness of Interest Payments Due While Borrower Is a
Mobilized Military Reservist.--Any requirement that a borrower of a
direct loan made under this subtitle make any interest payment on the
loan that would otherwise be required to be made while the borrower is
a mobilized military reservist is rescinded.
``(c) Deferral of Principal Payments Due While or After Borrower Is
a Mobilized Military Reservist.--The due date of any payment of
principal on a direct loan made to a borrower under this subtitle that
would otherwise be required to be made while or after the borrower is a
mobilized military reservist is deferred for a period equal in length
to the period for which the borrower is a mobilized military reservist.
``(d) Nonaccrual of Interest.--Interest on a direct loan made to a
borrower described in this section shall not accrue during the period
the borrower is a mobilized military reservist.
``(e) Borrower Not Considered To Be Delinquent or Receiving Debt
Forgiveness.--Notwithstanding section 3425 or any other provision of
this title, a borrower who receives assistance under this section shall
not, as a result of the assistance, be considered to be delinquent or
receiving debt forgiveness for purposes of receiving a direct or
guaranteed loan under this subtitle.
``SEC. 3413. INTEREST RATE REDUCTION PROGRAM.
``(a) Establishment of Program.--The Secretary shall establish and
carry out in accordance with this section an interest rate reduction
program for any loan guaranteed under this subtitle.
``(b) Entering Into Contracts.--The Secretary shall enter into a
contract with, and make payments to, an institution to reduce, during
the term of the contract, the interest rate paid by the borrower on the
guaranteed loan if--
``(1) the borrower--
``(A) is unable to obtain credit elsewhere;
``(B) is unable to make payments on the loan in a
timely manner; and
``(C) during the 24-month period beginning on the
date on which the contract is entered into, has a total
estimated cash income, including all farm and nonfarm
income, that will equal or exceed the total estimated
cash expenses, including all farm and nonfarm expenses,
to be incurred by the borrower during the period; and
``(2) during the term of the contract, the lender reduces
the annual rate of interest payable on the loan by a minimum
percentage specified in the contract.
``(c) Payments.--
``(1) In general.--Subject to paragraph (2), 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.
``(2) Limitation.--Payments under paragraph (1) may not
exceed the cost of reducing the rate by more than 400 basis
points.
``(d) Term.--The term of a contract entered into under this section
to reduce the interest rate on a guaranteed loan may not exceed the
outstanding term of the loan.
``(e) Condition on Foreclosure.--Notwithstanding any other law, any
contract of guarantee on a farm loan entered into under this subtitle
shall contain a condition that the lender of the loan may not initiate
a foreclosure action on the loan until 60 days after a determination is
made with respect to the eligibility of the borrower to participate in
the program established under this section.
``SEC. 3414. HOMESTEAD PROPERTY.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Small Business Administration.
``(2) Borrower-owner.--The term `borrower-owner' means--
``(A) a borrower-owner of a loan made or guaranteed
by the Secretary or the Administrator who meets the
eligibility requirements of subsection (c)(1); or
``(B) in a case in which an owner of homestead
property pledged the property to secure the loan and
the owner is different than the borrower, the owner.
``(3) Farm program loan.--The term `farm program loan'
means a loan made by the Administrator under the Small Business
Act (15 U.S.C. 631 et seq.) for any of the purposes authorized
for loans under chapter 1 or 2.
``(4) Homestead property.--The term `homestead property'
means--
``(A) the principal residence and adjoining
property possessed and occupied by a borrower-owner,
including a reasonable number of farm outbuildings
located on the adjoining land that are useful to any
occupant of the homestead; and
``(B) not more than 10 acres of adjoining land that
is used to maintain the family of the borrower-owner.
``(b) Retention of Homestead Property.--
``(1) In general.--The Secretary or the Administrator
shall, on application by a borrower-owner who meets the
eligibility requirements of subsection (c)(1), permit the
borrower-owner to retain possession and occupancy of homestead
property under the terms set forth, and until the action
described in this section has been completed, if--
``(A) the Secretary forecloses or takes into
inventory property securing a loan made under this
subtitle;
``(B) the Administrator forecloses or takes into
inventory property securing a farm program loan made
under the Small Business Act (15 U.S.C. 631 et seq.);
or
``(C) the borrower-owner of a loan made by the
Secretary or the Administrator files a petition in
bankruptcy that results in the conveyance of the
homestead property to the Secretary or the
Administrator, or agrees to voluntarily liquidate or
convey the property in whole or in part.
``(2) Period of occupancy.--Subject to subsection (c), the
Secretary or the Administrator shall not grant a period of
occupancy of less than 3 nor more than 5 years.
``(c) Eligibility.--
``(1) In general.--To be eligible to occupy homestead
property, a borrower-owner of a loan made by the Secretary or
the Administrator shall--
``(A) apply for the occupancy not later than 30
days after the property is acquired by the Secretary or
Administrator;
``(B) have received from farming operations gross
farm income that is reasonably commensurate with--
``(i) the size and location of the farming
unit of the borrower-owner; and
``(ii) local agricultural conditions
(including natural and economic conditions),
during at least 2 calendar years of the 6-year
period preceding the calendar year in which the
application is made;
``(C) have received from farming operations at
least 60 percent of the gross annual income of the
borrower-owner and any spouse of the borrower-owner
during at least 2 calendar years of the 6-year period
described in subparagraph (B);
``(D) have continuously occupied the homestead
property during the 6-year period described in
subparagraph (B), except that the requirement of this
subparagraph may be waived if a borrower-owner, due to
circumstances beyond the control of the borrower-owner,
had to leave the homestead property for a period of
time not to exceed 12 months during the 6-year period;
``(E) during the period of occupancy of the
homestead property, pay a reasonable sum as rent for
the property to the Secretary or the Administrator in
an amount substantially equivalent to rents charged for
similar residential properties in the area in which the
homestead property is located;
``(F) during the period of the occupancy of the
homestead property, maintain the property in good
condition; and
``(G) meet such other reasonable and necessary
terms and conditions as the Secretary may require.
``(2) Definition of farming operations.--In subparagraphs
(B) and (C) of paragraph (1), the term `farming operations'
includes rent paid by a lessee of agricultural land during a
period in which the borrower-owner, due to circumstances beyond
the control of the borrower-owner, is unable to actively farm
the land.
``(3) Termination of rights.--
``(A) In general.--For purposes of paragraph
(1)(E), the failure of the borrower-owner to make a
timely rental payment shall constitute cause for the
termination of all rights of the borrower-owner to
possession and occupancy of the homestead property
under this section.
``(B) Procedure for termination.--In effecting a
termination under subparagraph (A), the Secretary
shall--
``(i) afford the borrower-owner or lessee
the notice and hearing procedural rights
described in subtitle H of the Department of
Agriculture Reorganization Act of 1994 (7
U.S.C. 6991 et seq.); and
``(ii) comply with any applicable State and
local law governing eviction of a person from
residential property.
``(4) Rights of borrower-owner.--
``(A) Period of occupancy.--Subject to subsection
(b)(2), the period of occupancy allowed the borrower-
owner of homestead property under this section shall be
the period requested in writing by the borrower-owner.
``(B) Right to reacquire.--
``(i) In general.--During the period the
borrower-owner occupies the homestead property,
the borrower-owner shall have a right to
reacquire the homestead property on such terms
and conditions as the Secretary shall
determine.
``(ii) Socially disadvantaged borrower-
owner.--During the period of occupancy of a
borrower-owner who is a socially disadvantaged
farmer, the borrower-owner or a member of the
immediate family of the borrower-owner shall
have a right of first refusal to reacquire the
homestead property on such terms and conditions
as the Secretary shall determine.
``(iii) Independent appraisal.--The
Secretary may not demand a payment for the
homestead property that is in excess of the
current market value of the homestead property
as established by an independent appraisal.
``(iv) Conduct of appraisal.--An
independent appraisal under clause (iii) shall
be conducted by an appraiser selected by the
borrower-owner, or, in the case of a borrower-
owner who is a socially disadvantaged farmer,
the immediate family member of the borrower-
owner, from a list of 3 appraisers approved by
the county supervisor.
``(5) Transfer of rights.--
``(A) In general.--Except as provided in
subparagraph (B), no right of a borrower-owner under
this section, and no agreement entered into between the
borrower-owner and the Secretary for occupancy of the
homestead property, shall be transferable or assignable
by the borrower-owner or by operation of law.
``(B) Death or incompetency.--In the case of death
or incompetency of the borrower-owner, the right and
agreement shall be transferable to a spouse of the
borrower-owner if the spouse agrees to comply with any
terms and conditions of the right or agreement.
``(6) Notification.--Not later than the date of acquisition
of the property securing a loan made under this subtitle, the
Secretary shall notify the borrower-owner of the property of
the availability of homestead protection rights under this
section.
``(d) End of Period of Occupancy.--
``(1) In general.--At the end of the period of occupancy
allowed a borrower-owner under subsection (c), the Secretary or
the Administrator shall grant to the borrower-owner a right of
first refusal to reacquire the homestead property on such terms
and conditions (which may include payment of principal in
installments) as the Secretary or the Administrator shall
determine.
``(2) Terms and conditions.--The terms and conditions
granted under paragraph (1) may not be less favorable than
those offered by the Secretary or Administrator or intended by
the Secretary or Administrator to be offered to any other
buyer.
``(e) Maximum Payment of Principal.--
``(1) In general.--At the time a reacquisition agreement is
entered into, the Secretary or the Administrator may not demand
a total payment of principal that is in excess of the value of
the homestead property.
``(2) Determination of value.--To the maximum extent
practicable, the value of the homestead property shall be
determined by an independent appraisal made during the 180-day
period beginning on the date of receipt of the application of
the borrower-owner to retain possession and occupancy of the
homestead property.
``(f) Title Not Needed To Enter Into Contracts.--The Secretary may
enter into a contract authorized by this section before the Secretary
acquires title to the homestead property that is the subject of the
contract.
``(g) State Law Prevails.--In the event of a conflict between this
section and a provision of State law relating to the right of a
borrower-owner to designate for separate sale or redeem part or all of
the real property securing a loan foreclosed on by a lender to the
borrower-owner, the provision of State law shall prevail.
``SEC. 3415. TRANSFER OF INVENTORY LAND.
``(a) In General.--Subject to subsection (b), the Secretary may
transfer to a Federal or State agency, for conservation purposes, any
real property, or interest in real property, administered by the
Secretary under this subtitle--
``(1) with respect to which the rights of all prior owners
and operators have expired;
``(2) that is eligible to be disposed of in accordance with
section 3409; and
``(3) that--
``(A) has marginal value for agricultural
production;
``(B) is environmentally sensitive; or
``(C) has special management importance.
``(b) Conditions.--The Secretary may not transfer any property or
interest in property under subsection (a) unless--
``(1) at least 2 public notices are given of the transfer;
``(2) if requested, at least 1 public meeting is held prior
to the transfer; and
``(3) the Governor and at least 1 elected county official
of the State and county in which the property is located are
consulted prior to the transfer.
``SEC. 3416. TARGET PARTICIPATION RATES.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish annual
target participation rates, on a county-wide basis, that shall
ensure that members of socially disadvantaged groups shall--
``(A) receive loans made or guaranteed under
chapter 1; and
``(B) have the opportunity to purchase or lease
farmland acquired by the Secretary under this subtitle.
``(2) Group population.--Except as provided in paragraph
(3), in establishing the target rates, the Secretary shall take
into consideration--
``(A) the portion of the population of the county
made up of the socially disadvantaged groups; and
``(B) the availability of inventory farmland in the
county.
``(3) Gender.--In the case of gender, target participation
rates shall take into consideration the number of current and
potential socially disadvantaged farmers in a State in
proportion to the total number of farmers in the State.
``(b) Reservation and Allocation.--
``(1) Reservation.--To the maximum extent practicable, the
Secretary shall reserve sufficient loan funds made available
under chapter 1 for use by members of socially disadvantaged
groups identified under target participation rates established
under subsection (a).
``(2) Allocation.--The Secretary shall allocate the loans
on the basis of the proportion of members of socially
disadvantaged groups in a county and the availability of
inventory farmland, with the greatest amount of loan funds
being distributed in the county with the greatest proportion of
socially disadvantaged group members and the greatest quantity
of available inventory farmland.
``(3) Indian reservations.--In distributing loan funds in
counties within the boundaries of an Indian reservation, the
Secretary shall allocate the funds on a reservation-wide basis.
``(c) Operating Loans.--
``(1) Establishment.--
``(A) In general.--The Secretary shall establish
annual target participation rates that shall ensure
that socially disadvantaged farmers receive loans made
or guaranteed under chapter 2.
``(B) Considerations.--In establishing the target
rates, the Secretary shall consider the number of
socially disadvantaged farmers in a State in proportion
to the total number of farmers in the State.
``(2) Reservation and allocation.--
``(A) In general.--To the maximum extent
practicable, the Secretary shall reserve and allocate
the proportion of the loan funds of each State made
available under chapter 2 that is equal to the target
participation rate of the State for use by the socially
disadvantaged farmers in the State.
``(B) Distribution.--To the maximum extent
practicable, the Secretary shall distribute the total
loan funds reserved under subparagraph (A) on a county-
by-county basis according to the number of socially
disadvantaged farmers in the county.
``(C) Reallocation of unused funds.--Any funds
reserved and allocated under this paragraph but not
used within a State shall, to the extent necessary to
satisfy pending applications under this subtitle, be
available for use by socially disadvantaged farmers in
other States, as determined by the Secretary, and any
remaining funds shall be reallocated within the State.
``(d) Report.--The Secretary shall prepare and submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report that describes the annual target participation rates and the
success in meeting the rates.
``(e) Implementation Consistent With Supreme Court Holding.--Not
later than 180 days after April 4, 1996, the Secretary shall ensure
that the implementation of this section is consistent with the holding
of the Supreme Court in Adarand Constructors, Inc. v. Federico Pena,
Secretary of Transportation, 115 S. Ct. 2097 (1995).
``SEC. 3417. COMPROMISE OR ADJUSTMENT OF DEBTS OR CLAIMS BY GUARANTEED
LENDER.
``(a) Loss by Lender.--If the lender of a guaranteed farmer program
loan takes any action described in section 3903(a)(4) with respect to
the loan and the Secretary approves the action, for purposes of the
guarantee, the lender shall be treated as having sustained a loss equal
to the amount by which--
``(1) the outstanding balance of the loan immediately
before the action; exceeds
``(2) the outstanding balance of the loan immediately after
the action.
``(b) Net Present Value of Loan.--The Secretary shall approve the
taking of an action described in section 3903(a)(4) by the lender of a
guaranteed farmer program loan with respect to the loan if the action
reduces the net present value of the loan to an amount equal to not
less than the greater of--
``(1) the greatest net present value of a loan the borrower
could reasonably be expected to repay; and
``(2) the difference between--
``(A) the greatest amount that the lender of the
loan could reasonably expect to recover from the
borrower through bankruptcy, or liquidation of the
property securing the loan; and
``(B) all reasonable and necessary costs and
expenses that the lender of the loan could reasonably
expect to incur to preserve or dispose of the property
(including all associated legal and property management
costs) in the course of such a bankruptcy or
liquidation.
``(c) No Limitation on Authority.--This section shall not limit the
authority of the Secretary to enter into a shared appreciation
arrangement with a borrower under section 3411(e).
``SEC. 3418. WAIVER OF MEDIATION RIGHTS BY BORROWERS.
``The Secretary may not make or guarantee any farmer program loan
to a farm borrower on the condition that the borrower waive any right
under the mediation program of any State.
``SEC. 3419. BORROWER TRAINING.
``(a) In General.--The Secretary shall contract to provide
educational training to all borrowers of direct loans made under this
subtitle in financial and farm management concepts associated with
commercial farming.
``(b) Contract.--
``(1) In general.--The Secretary may contract with a State
or private provider of farm management and credit counseling
services (including a community college, the extension service
of a State, a State department of agriculture, or a nonprofit
organization) to carry out this section.
``(2) Consultation.--The Secretary may consult with the
chief executive officer of a State concerning the identity of
the contracting organization and the process for contracting.
``(c) Eligibility for Loans.--
``(1) In general.--Subject to paragraph (2), to be eligible
to obtain a direct loan under this subtitle, a borrower shall
be required to obtain management assistance under this section,
appropriate to the management ability of the borrower during
the determination of eligibility for the loan.
``(2) Loan conditions.--The need of a borrower who
satisfies the criteria set out in section 3101(b)(1)(B) or
3201(b)(1)(B) for management assistance under this section
shall not be cause for denial of eligibility of the borrower
for a direct loan under this subtitle.
``(d) Guidelines and Curriculum.--The Secretary shall issue
regulations establishing guidelines and curriculum for the borrower
training program established under this section.
``(e) Payment.--A borrower--
``(1) shall pay for training received under this section;
and
``(2) may use funds from operating loans made under chapter
2 to pay for the training.
``(f) Waivers.--
``(1) In general.--The Secretary may waive the requirements
of this section for an individual borrower on a determination
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. 3420. LOAN ASSESSMENTS.
``(a) In General.--After an applicant is determined to be eligible
for assistance under this subtitle, the Secretary shall evaluate, in
accordance with regulations issued by the Secretary, the farming plan
and financial situation of each qualified farmer applicant.
``(b) Determinations.--In evaluating the farming plan and financial
situation of an applicant under this section, the Secretary shall
determine--
``(1) the amount that the applicant needs to borrow to
carry out the proposed farming plan;
``(2) the rate of interest that the applicant would need to
be able to cover expenses and build an adequate equity base;
``(3) the goals of the proposed farming plan of the
applicant;
``(4) the financial viability of the plan and any changes
that are necessary to make the plan viable; and
``(5) whether assistance is necessary under this subtitle
and, if so, the amount of the assistance.
``(c) Contract.--The Secretary may contract with a third party
(including an entity that is eligible to provide borrower training
under section 3419(b)) to conduct a loan assessment under this section.
``(d) Review of Loans.--
``(1) In general.--Loan assessments conducted under this
section shall include annual review of direct loans, and
periodic review (as determined necessary by the Secretary) of
guaranteed loans, made under this subtitle to assess the
progress of a borrower in meeting the goals for the farm
operation.
``(2) Contracts.--The Secretary may contract with an entity
that is eligible to provide borrower training under section
3419(b) to conduct a loan review under paragraph (1).
``(3) Problem assessments.--If a borrower is delinquent in
payments on a direct or guaranteed loan made under this
subtitle, the Secretary or the contracting entity shall
determine the cause of, and action necessary to correct, the
delinquency.
``(e) Guidelines.--The Secretary shall issue regulations providing
guidelines for loan assessments conducted under this section.
``SEC. 3421. SUPERVISED CREDIT.
``The Secretary shall provide adequate training to employees of the
Farm Service Agency on credit analysis and financial and farm
management--
``(1) to better acquaint the employees with what
constitutes adequate financial data on which to base a direct
or guaranteed loan approval decision; and
``(2) to ensure proper supervision of farmer program loans.
``SEC. 3422. MARKET PLACEMENT.
``The Secretary shall establish a market placement program for a
qualified beginning farmer and any other borrower of farmer program
loans that the Secretary believes has a reasonable chance of qualifying
for commercial credit with a guarantee provided under this subtitle.
``SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF BORROWER.
``The Secretary shall classify, by gender, records of applicants
for loans and loan guarantees under this subtitle.
``SEC. 3424. CROP INSURANCE REQUIREMENT.
``(a) In General.--As a condition of obtaining any benefit
(including a direct loan, loan guarantee, or payment) described in
subsection (b), a borrower shall be required to obtain at least
catastrophic risk protection insurance coverage under section 508 of
the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop
year for which the benefit is sought, if the coverage is offered by the
Federal Crop Insurance Corporation.
``(b) Applicable Benefits.--Subsection (a) shall apply to--
``(1) a farm ownership loan under section 3102;
``(2) an operating loan under section 3202; and
``(3) an emergency loan under section 3301.
``SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS.
``(a) Delinquent Borrowers Prohibited From Obtaining Direct
Operating Loans.--The Secretary may not make a direct operating loan
under chapter 2 to a borrower who is delinquent on any loan made or
guaranteed under this subtitle.
``(b) Loans Prohibited for Borrowers That Have Received Debt
Forgiveness.--
``(1) Prohibitions.--Except as provided in paragraph (2)--
``(A) the Secretary may not make a loan under this
subtitle to a borrower that has received debt
forgiveness on a loan made or guaranteed under this
subtitle; and
``(B) the Secretary may not guarantee a loan under
this subtitle to a borrower that has received--
``(i) debt forgiveness after April 4, 1996,
on a loan made or guaranteed under this
subtitle; or
``(ii) received debt forgiveness on more
than 3 occasions on or before April 4, 1996.
``(2) Exceptions.--
``(A) In general.--The Secretary may make a direct
or guaranteed farm operating loan for paying annual
farm operating expenses of a borrower who--
``(i) was restructured with a write-down
under section 3411;
``(ii) is current on payments under a
confirmed reorganization plan under chapters
11, 12, or 13 of title 11 of the United States
Code; or
``(iii) received debt forgiveness on not
more than 1 occasion resulting directly and
primarily from a major disaster or emergency
designated by the President on or after April
4, 1996, under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.).
``(B) Emergency loans.--The Secretary may make an
emergency loan under section 3301 to a borrower that--
``(i) on or before April 4, 1996, received
not more than 1 debt forgiveness on a loan made
or guaranteed under this subtitle; and
``(ii) after April 4, 1996, has not
received debt forgiveness on a loan made or
guaranteed under this subtitle.
``(c) No More Than 1 Debt Forgiveness for a Borrower on a Direct
Loan.--The Secretary may not provide to a borrower debt forgiveness on
a direct loan made under this subtitle if the borrower has received
debt forgiveness on another direct loan made under this subtitle.
``SEC. 3426. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER
COMPLIANCE.
``The Secretary shall develop and use a consolidated short form for
farmer program loan borrowers to use in certifying compliance with any
applicable provision of law (including a regulation) that serves as an
eligibility prerequisite for a loan made under this subtitle.
``SEC. 3427. UNDERWRITING FORMS AND STANDARDS.
``In the administration of this subtitle, the Secretary shall, to
the extent practicable, use underwriting forms, standards, practices,
and terminology similar to the forms, standards, practices, and
terminology used by lenders in the private sector.
``SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT
PROGRAM.
``(a) Definitions.--In this section:
``(1) Demonstration program.--The term `demonstration
program' means a demonstration program carried out by a
qualified entity under the pilot program established in
subsection (b)(1).
``(2) Eligible participant.--The term `eligible
participant' means a qualified beginning farmer that--
``(A) lacks significant financial resources or
assets; and
``(B) has an income that is less than--
``(i) 80 percent of the median income of
the State in which the farmer resides; or
``(ii) 200 percent of the most recent
annual Federal Poverty Income Guidelines
published by the Department of Health and Human
Services for the State.
``(3) Individual development account.--The term `individual
development account' means a savings account described in
subsection (b)(4)(A).
``(4) Qualified entity.--
``(A) In general.--The term `qualified entity'
means--
``(i) 1 or more organizations--
``(I) described in section
501(c)(3) of the Internal Revenue Code
of 1986; and
``(II) exempt from taxation under
section 501(a) of such Code; or
``(ii) a State, local, or tribal government
submitting an application jointly with an
organization described in clause (i).
``(B) No prohibition on collaboration.--An
organization described in subparagraph (A)(i) may
collaborate with a financial institution or for-profit
community development corporation to carry out the
purposes of this section.
``(b) Pilot Program.--
``(1) In general.--The Secretary shall establish a pilot
program to be known as the `New Farmer Individual Development
Accounts Pilot Program' under which the Secretary shall work
through qualified entities to establish demonstration
programs--
``(A) of at least 5 years in duration; and
``(B) in at least 15 States.
``(2) Coordination.--The Secretary shall operate the pilot
program through and in coordination with the farmer program
loans of the Farm Service Agency.
``(3) Reserve funds.--
``(A) In general.--A qualified entity carrying out
a demonstration program under this section shall
establish a reserve fund consisting of a non-Federal
match of 50 percent of the total amount of the grant
awarded to the demonstration program under this
section.
``(B) Federal funds.--After the qualified entity
has deposited the non-Federal matching funds described
in subparagraph (A) in the reserve fund, the Secretary
shall provide the total amount of the grant awarded
under this section to the demonstration program for
deposit in the reserve fund.
``(C) Use of funds.--Of the funds deposited under
subparagraph (B) in the reserve fund established for a
demonstration program, the qualified entity carrying
out the demonstration program--
``(i) may use up to 10 percent for
administrative expenses; and
``(ii) shall use the remainder in making
matching awards described in paragraph
(4)(B)(ii)(I).
``(D) Interest.--Any interest earned on amounts in
a reserve fund established under subparagraph (A) may
be used by the qualified entity as additional matching
funds for, or to administer, the demonstration program.
``(E) Guidance.--The Secretary shall issue guidance
regarding the investment requirements of reserve funds
established under this paragraph.
``(F) Reversion.--On the date on which all funds
remaining in any individual development account
established by a qualified entity have reverted under
paragraph (5)(B)(ii) to the reserve fund established by
the qualified entity, there shall revert to the
Treasury of the United States a percentage of the
amount (if any) in the reserve fund equal to--
``(i) the amount of Federal funds deposited
in the reserve fund under subparagraph (B) that
were not used for administrative expenses;
divided by
``(ii) the total amount of funds deposited
in the reserve fund.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a
grant under this section shall establish and administer
individual development accounts for eligible
participants.
``(B) Contract requirements.--To be eligible to
receive funds under this section from a qualified
entity, an eligible participant shall enter into a
contract with only 1 qualified entity under which--
``(i) the eligible participant agrees--
``(I) to deposit a certain amount
of funds of the eligible participant in
a personal savings account, as
prescribed by the contractual agreement
between the eligible participant and
the qualified entity;
``(II) to use the funds described
in subclause (I) only for 1 or more
eligible expenditures described in
paragraph (5)(A); and
``(III) to complete financial
training; and
``(ii) the qualified entity agrees--
``(I) to deposit, not later than 1
month after an amount is deposited
pursuant to clause (i)(I), at least a
100-percent, and up to a 200-percent,
match of that amount into the
individual development account
established for the eligible
participant; and
``(II) with uses of funds proposed
by the eligible participant.
``(C) Limitation.--
``(i) In general.--A qualified entity
administering a demonstration program under
this section may provide not more than $6,000
for each fiscal year in matching funds to the
individual development account established by
the qualified entity for an eligible
participant.
``(ii) Treatment of amount.--An amount
provided under clause (i) shall not be
considered to be a gift or loan for mortgage
purposes.
``(5) Eligible expenditures.--
``(A) In general.--An eligible expenditure
described in this subparagraph is an expenditure--
``(i) to purchase farmland or make a down
payment on an accepted purchase offer for
farmland;
``(ii) to make mortgage payments on
farmland purchased pursuant to clause (i), for
up to 180 days after the date of the purchase;
``(iii) to purchase breeding stock, fruit
or nut trees, or trees to harvest for timber;
and
``(iv) for other similar expenditures, as
determined by the Secretary.
``(B) Timing.--
``(i) In general.--An eligible participant
may make an eligible expenditure at any time
during the 2-year period beginning on the date
on which the last matching funds are provided
under paragraph (4)(B)(ii)(I) to the individual
development account established for the
eligible participant.
``(ii) Unexpended funds.--At the end of the
period described in clause (i), any funds
remaining in an individual development account
established for an eligible participant shall
revert to the reserve fund of the demonstration
program under which the account was
established.
``(c) Applications.--
``(1) In general.--A qualified entity that seeks to carry
out a demonstration program under this section may submit to
the Secretary an application at such time, in such form, and
containing such information as the Secretary may prescribe.
``(2) Criteria.--In considering whether to approve an
application to carry out a demonstration program under this
section, the Secretary shall assess--
``(A) the degree to which the demonstration program
described in the application is likely to aid eligible
participants in successfully pursuing new farming
opportunities;
``(B) the experience and ability of the qualified
entity to responsibly administer the demonstration
program;
``(C) the experience and ability of the qualified
entity in recruiting, educating, and assisting eligible
participants to increase economic independence and
pursue or advance farming opportunities;
``(D) the aggregate amount of direct funds from
non-Federal public sector and private sources that are
formally committed to the demonstration program as
matching contributions;
``(E) the adequacy of the plan of the qualified
entity to provide information relevant to an evaluation
of the demonstration program; and
``(F) such other factors as the Secretary considers
to be appropriate.
``(3) Preferences.--In considering an application to
conduct a demonstration program under this section, the
Secretary shall give preference to an application from a
qualified entity that demonstrates--
``(A) a track record of serving clients targeted by
the program, including, as appropriate, socially
disadvantaged farmers; and
``(B) expertise in dealing with financial
management aspects of farming.
``(4) Approval.--Not later than 1 year after the date of
enactment of this section, in accordance with this section, the
Secretary shall, on a competitive basis, approve such
applications to conduct demonstration programs as the Secretary
considers appropriate.
``(5) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the Secretary
shall authorize the applicant to carry out the project for a
period of 5 years, plus an additional 2 years to make eligible
expenditures in accordance with subsection (b)(5)(B).
``(d) Grant Authority.--
``(1) In general.--The Secretary shall make a grant to a
qualified entity authorized to carry out a demonstration
program under this section.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $250,000.
``(3) Timing of grant payments.--The Secretary shall pay
the amounts awarded under a grant made under this section--
``(A) on the awarding of the grant; or
``(B) pursuant to such payment plan as the
qualified entity may specify.
``(e) Reports.--
``(1) Annual progress reports.--
``(A) In general.--Not later than 60 days after the
end of the calendar year in which the Secretary
authorizes a qualified entity to carry out a
demonstration program under this section, and annually
thereafter until the conclusion of the demonstration
program, the qualified entity shall prepare an annual
report that includes, for the period covered by the
report--
``(i) an evaluation of the progress of the
demonstration program;
``(ii) information about the demonstration
program, including the eligible participants
and the individual development accounts that
have been established; and
``(iii) such other information as the
Secretary may require.
``(B) Submission of reports.--A qualified entity
shall submit each report required under subparagraph
(A) to the Secretary.
``(2) Reports by the secretary.--Not later than 1 year
after the date on which all demonstration programs under this
section are concluded, the Secretary shall submit to Congress a
final report that describes the results and findings of all
reports and evaluations carried out under this section.
``(f) Annual Review.--The Secretary may conduct an annual review of
the financial records of a qualified entity--
``(1) to assess the financial soundness of the qualified
entity; and
``(2) to determine the use of grant funds made available to
the qualified entity under this section.
``(g) Regulations.--In carrying out this section, the Secretary may
promulgate regulations to ensure that the program includes provisions
for--
``(1) the termination of demonstration programs;
``(2) control of the reserve funds in the case of such a
termination;
``(3) transfer of demonstration programs to other qualified
entities; and
``(4) remissions from a reserve fund to the Secretary in a
case in which a demonstration program is terminated without
transfer to a new qualified entity.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2013 through 2018.
``SEC. 3429. FARMER LOAN PILOT PROJECTS.
``(a) In General.--The Secretary may conduct pilot projects of
limited scope and duration that are consistent with this subtitle to
evaluate processes and techniques that may improve the efficiency and
effectiveness of the programs carried out under this subtitle.
``(b) Notification.--The Secretary shall--
``(1) not less than 60 days before the date on which the
Secretary initiates a pilot project under subsection (a),
submit notice of the proposed pilot project to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate; and
``(2) consider any recommendations or feedback provided to
the Secretary in response to the notice provided under
paragraph (1).
``SEC. 3430. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.
``(a) In General.--Except as provided in subsections (b) and (c),
the Secretary may not approve a loan under this subtitle to drain,
dredge, fill, level, or otherwise manipulate a wetland (as defined in
section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a))),
or to engage in any activity that results in impairing or reducing the
flow, circulation, or reach of water.
``(b) Prior Activity.--Subsection (a) does not apply in the case
of--
``(1) an activity related to the maintenance of a
previously converted wetland; or
``(2) an activity that had already commenced before
November 28, 1990.
``(c) Exception.--This section shall not apply to a loan made or
guaranteed under this subtitle for a utility line.
``SEC. 3431. AUTHORIZATION OF APPROPRIATIONS AND ALLOCATION OF FUNDS.
``(a) Authorization for Loans.--
``(1) In general.--The Secretary may make or guarantee
loans under chapters 1 and 2 from the Agricultural Credit
Insurance Fund for not more than $4,226,000,000 for each of
fiscal years 2013 through 2018, of which, for each fiscal
year--
``(A) $1,200,000,000 shall be for direct loans, of
which--
``(i) $350,000,000 shall be for farm
ownership loans; and
``(ii) $850,000,000 shall be for operating
loans; and
``(B) $3,026,000,000 shall be for guaranteed loans,
of which--
``(i) $1,000,000,000 shall be for
guarantees of farm ownership loans; and
``(ii) $2,026,000,000 shall be for
guarantees of operating loans.
``(2) Beginning farmers.--
``(A) Direct loans.--
``(i) Farm ownership loans.--
``(I) In general.--Of the amounts
made available under paragraph (1) for
direct farm ownership loans, the
Secretary shall reserve an amount that
is not less than 75 percent of the
total amount for qualified beginning
farmers.
``(II) Down payment loans; joint
financing arrangements.--Of the amounts
reserved for a fiscal year under
subclause (I), the Secretary shall
reserve an amount not less than \2/3\
of the amount for the down payment loan
program under section 3107 and joint
financing arrangements under section
3105 until April 1 of the fiscal year.
``(ii) Operating loans.--Of the amounts
made available under paragraph (1) for direct
operating loans, the Secretary shall reserve
for qualified beginning farmers for each of
fiscal years 2013 through 2018, an amount that
is not less than 50 percent of the total
amount.
``(iii) Funds reserved until september 1.--
Except as provided in clause (i)(II), funds
reserved for qualified beginning farmers under
this subparagraph for a fiscal year shall be
reserved only until September 1 of the fiscal
year.
``(B) Guaranteed loans.--
``(i) Farm ownership loans.--Of the amounts
made available under paragraph (1) for
guarantees of farm ownership loans, the
Secretary shall reserve an amount that is not
less than 40 percent of the total amount for
qualified beginning farmers.
``(ii) Operating loans.--Of the amounts
made available under paragraph (1) for
guarantees of operating loans, the Secretary
shall reserve 40 percent for qualified
beginning farmers.
``(iii) Funds reserved until april 1.--
Funds reserved for qualified beginning farmers
under this subparagraph for a fiscal year shall
be reserved only until April 1 of the fiscal
year.
``(C) Reserved funds for all qualified beginning
farmers.--If a qualified beginning farmer meets the
eligibility criteria for receiving a direct or
guaranteed loan under section 3101, 3107, or 3201, the
Secretary shall make or guarantee the loan if
sufficient funds reserved under this paragraph are
available to make or guarantee the loan.
``(3) Transfer for down payment loans.--
``(A) In general.--Subject to subparagraph (B)--
``(i) beginning on August 1 of each fiscal
year, the Secretary shall use available
unsubsidized guaranteed farm operating loan
funds to provide direct farm ownership loans
approved by the Secretary to qualified
beginning farmers under the down payment loan
program established under section 3107, if
sufficient direct farm ownership loan funds are
not otherwise available; and
``(ii) beginning on September 1 of each
fiscal year, the Secretary shall use available
unsubsidized guaranteed farm operating loan
funds to provide direct farm ownership loans
approved by the Secretary to qualified
beginning farmers, if sufficient direct farm
ownership loan funds are not otherwise
available.
``(B) Limitation.--The Secretary shall limit the
transfer of funds under subparagraph (A) so that all
guaranteed farm operating loans that have been
approved, or will be approved, by the Secretary during
the fiscal year will be made to the extent of available
amounts.
``(4) Transfer for credit sales of farm inventory
property.--
``(A) In general.--Subject to subparagraphs (B) and
(C), beginning on September 1 of each fiscal year, the
Secretary may use available funds made available under
chapter 3 for the fiscal year to fund the credit sale
of farm real estate in the inventory of the Secretary.
``(B) Supplemental appropriations.--The transfer
authority provided under subparagraph (A) shall not
apply to any funds made available to the Secretary for
any fiscal year under an Act making supplemental
appropriations.
``(C) Limitation.--The Secretary shall limit the
transfer of funds under subparagraph (A) so that all
emergency disaster loans that have been approved, or
will be approved, by the Secretary during the fiscal
year will be made to the extent of available amounts.
``(5) Availability of funds.--Funds made available to carry
out this subtitle shall remain available until expended.
``(b) Cost Projections.--
``(1) In general.--The Secretary shall develop long-term
cost projections for loan program authorizations required under
subsection (a).
``(2) Analysis.--Each projection under paragraph (1) shall
include analyses of--
``(A) the long-term costs of the lending levels
that the Secretary requests to be authorized under
subsection (a); and
``(B) the long-term costs for increases in lending
levels beyond those requested to be authorized, based
on increments of $10,000,000 or such other levels as
the Secretary considers appropriate.
``(3) Submission to congress.--The Secretary shall submit
to the Committees on Agriculture and Appropriations of the
House of Representatives and the Committees on Agriculture,
Nutrition, and Forestry and Appropriations of the Senate
reports containing the long-term cost projections for the 3-
year period beginning with fiscal year 1983 and each 3-year
period thereafter at the time the requests for authorizations
for those periods are submitted to Congress.
``(c) Low-Income, Limited-Resource Borrowers.--
``(1) Reserve.--Notwithstanding any other provision of law,
not less than 25 percent of the loans for farm ownership
purposes for each fiscal year under this subtitle shall be for
low-income, limited-resource borrowers.
``(2) Notification.--The Secretary shall provide
notification to farm borrowers under this subtitle in the
normal course of loan making and loan servicing operations, of
the provisions of this subtitle relating to low-income,
limited-resource borrowers and the procedures by which persons
may apply for loans under the low-income, limited-resource
borrower program.''.
Subtitle B--Miscellaneous
SEC. 5101. STATE AGRICULTURAL MEDIATION PROGRAMS.
Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106)
is amended by striking ``2015'' and inserting ``2018''.
SEC. 5102. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.
(a) In General.--The first sentence of Public Law 91-229 (25 U.S.C.
488) is amended--
(1) in subsection (a), in the first sentence, by striking
``loans from'' and all that follows through ``1929)'' and
inserting ``direct loans in a manner consistent with direct
loans pursuant to chapter 4 of subtitle A of the Consolidated
Farm and Rural Development Act'';
(2) in subsection (b)(1)--
(A) by striking ``pursuant to section 205(c) of the
Indian Land Consolidation Act (25 U.S.C. 2204(c))'';
and
(B) by inserting ``or to intermediaries in order to
establish revolving loan funds for the purchase of
highly fractionated land under that section'' before
the period at the end; and
(3) by adding at the end the following:
``(c) Consultation Required.--In determining regulations and
procedures to define eligible purchasers of highly fractionated land
under this section, the Secretary of Agriculture shall consult with the
Secretary of the Interior.''.
SEC. 5103. REMOVAL OF DUPLICATIVE APPRAISALS.
Notwithstanding any other law (including regulations), in making
loans under the first section of Public Law 91-229 (25 U.S.C. 488),
borrowers who are Indian tribes, members of Indian tribes, or tribal
corporations shall only be required to obtain 1 appraisal under an
appraisal standard recognized as of the date of enactment of this Act
by the Secretary or the Secretary of the Interior.
SEC. 5104. COMPENSATION DISCLOSURE BY FARM CREDIT SYSTEM INSTITUTIONS.
(a) Findings.--Congress finds that--
(1) the reasonable disclosure to stockholders by Farm
Credit System institutions regarding the compensation of Farm
Credit System institution senior officers is beneficial to
stockholders' understanding of the operation of their
institutions;
(2) transparency regarding compensation practices
reinforces the cooperative nature of Farm Credit System
institutions;
(3) the unique cooperative structure of the Farm Credit
System should be considered when promulgating rules;
(4) the participation of stockholders in the election of
the boards of directors of Farm Credit System institutions
provides stockholders the opportunity to participate in the
management of their institutions;
(5) as representatives of stockholders, the boards of
directors of Farm Credit System institutions importantly
establish and oversee the compensation practices of Farm Credit
System institutions to ensure the safe and sound operation of
those institutions; and
(6) any regulation should strengthen and not hinder the
ability of Farm Credit System boards of directors to oversee
compensation practices.
(b) Implementation.--Not later than 60 days after the date of
enactment of this Act, the Farm Credit Administration shall review its
rules to reflect Congressional intent that a primary responsibility of
the boards of directors of Farm Credit System institutions, as elected
representatives of their stockholders, is to oversee compensation
practices.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Reorganization of the Consolidated Farm and Rural
Development Act
SEC. 6001. REORGANIZATION OF THE CONSOLIDATED FARM AND RURAL
DEVELOPMENT ACT.
Title III of the Agricultural Act of 1961 (7 U.S.C. 1921 et seq.)
is amended to read as follows:
``TITLE III--AGRICULTURAL CREDIT
``SEC. 3001. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This title may be cited as the `Consolidated
Farm and Rural Development Act'.
``(b) Table of Contents.--The table of contents of this title is as
follows:
``TITLE III--AGRICULTURAL CREDIT
``Sec. 3001. Short title; table of contents.
``Sec. 3002. Definitions.
``Subtitle A--Farmer Loans, Servicing, and Other Assistance
``Chapter 1--Farm Ownership Loans
``Sec. 3101. Farm ownership loans.
``Sec. 3102. Purposes of loans.
``Sec. 3103. Conservation loan and loan guarantee program.
``Sec. 3104. Loan maximums.
``Sec. 3105. Repayment requirements for farm ownership loans.
``Sec. 3106. Limited-resource loans.
``Sec. 3107. Downpayment loan program.
``Sec. 3108. Beginning farmer and socially disadvantaged farmer
contract land sales program.
``Chapter 2--Operating Loans
``Sec. 3201. Operating loans.
``Sec. 3202. Purposes of loans.
``Sec. 3203. Restrictions on loans.
``Sec. 3204. Terms of loans.
``Chapter 3--Emergency Loans
``Sec. 3301. Emergency loans.
``Sec. 3302. Purposes of loans.
``Sec. 3303. Terms of loans.
``Sec. 3304. Production losses.
``Chapter 4--General Farmer Loan Provisions
``Sec. 3401. Agricultural Credit Insurance Fund.
``Sec. 3402. Guaranteed farmer loans.
``Sec. 3403. Provision of information to borrowers.
``Sec. 3404. Notice of loan service programs.
``Sec. 3405. Planting and production history guidelines.
``Sec. 3406. Special conditions and limitations on loans.
``Sec. 3407. Graduation of borrowers.
``Sec. 3408. Debt adjustment and credit counseling.
``Sec. 3409. Security servicing.
``Sec. 3410. Contracts on loan security properties.
``Sec. 3411. Debt restructuring and loan servicing.
``Sec. 3412. Relief for mobilized military reservists from certain
agricultural loan obligations.
``Sec. 3413. Interest rate reduction program.
``Sec. 3414. Homestead property.
``Sec. 3415. Transfer of inventory land.
``Sec. 3416. Target participation rates.
``Sec. 3417. Compromise or adjustment of debts or claims by guaranteed
lender.
``Sec. 3418. Waiver of mediation rights by borrowers.
``Sec. 3419. Borrower training.
``Sec. 3420. Loan assessments.
``Sec. 3421. Supervised credit.
``Sec. 3422. Market placement.
``Sec. 3423. Recordkeeping of loans by gender of borrower.
``Sec. 3424. Crop insurance requirement.
``Sec. 3425. Loan and loan servicing limitations.
``Sec. 3426. Short form certification of farm program borrower
compliance.
``Sec. 3427. Underwriting forms and standards.
``Sec. 3428. Beginning farmer individual development accounts pilot
program.
``Sec. 3429. Farmer loan pilot projects.
``Sec. 3430. Prohibition on use of loans for certain purposes.
``Sec. 3431. Authorization of appropriations and allocation of funds.
``Subtitle B--Rural Development
``Chapter 1--Rural Community Programs
``Sec. 3501. Water and waste disposal loans, loan guarantees, and
grants.
``Sec. 3502. Community facilities loans, loan guarantees, and grants.
``Sec. 3503. Health care services.
``Chapter 2--Rural Business and Cooperative Development
``Sec. 3601. Business programs.
``Sec. 3602. Rural Business Investment Program.
``Chapter 3--General Rural Development Provisions
``Sec. 3701. General provisions for loans and grants.
``Sec. 3702. Strategic economic and community development.
``Sec. 3703. Guaranteed rural development loans.
``Sec. 3704. Rural Development Insurance Fund.
``Sec. 3705. Rural economic area partnership zones.
``Sec. 3706. Streamlining applications and improving accessibility of
rural development programs.
``Sec. 3707. State Rural Development Partnership.
``Chapter 4--Delta Regional Authority
``Sec. 3801. Definitions.
``Sec. 3802. Delta Regional Authority.
``Sec. 3803. Economic and community development grants.
``Sec. 3804. Supplements to Federal grant programs.
``Sec. 3805. Local development districts; certification and
administrative expenses.
``Sec. 3806. Distressed counties and areas and nondistressed counties.
``Sec. 3807. Development planning process.
``Sec. 3808. Program development criteria.
``Sec. 3809. Approval of development plans and projects.
``Sec. 3810. Consent of States.
``Sec. 3811. Records.
``Sec. 3812. Annual report.
``Sec. 3813. Authorization of appropriations.
``Sec. 3814. Termination of authority.
``Chapter 5--Northern Great Plains Regional Authority
``Sec. 3821. Definitions.
``Sec. 3822. Northern Great Plains Regional Authority.
``Sec. 3823. Interstate cooperation for economic opportunity and
efficiency.
``Sec. 3824. Economic and community development grants.
``Sec. 3825. Supplements to Federal grant programs.
``Sec. 3826. Multistate and local development districts and
organizations and Northern Great Plains
Inc.
``Sec. 3827. Distressed counties and areas and nondistressed counties.
``Sec. 3828. Development planning process.
``Sec. 3829. Program development criteria.
``Sec. 3830. Approval of development plans and projects.
``Sec. 3831. Consent of States.
``Sec. 3832. Records.
``Sec. 3833. Annual report.
``Sec. 3834. Authorization of appropriations.
``Sec. 3835. Termination of authority.
``Subtitle C--General Provisions
``Sec. 3901. Full faith and credit.
``Sec. 3902. Purchase and sale of guaranteed portions of loans.
``Sec. 3903. Administration.
``Sec. 3904. Loan moratorium and policy on foreclosures.
``Sec. 3905. Oil and gas royalty payments on loans.
``Sec. 3906. Taxation.
``Sec. 3907. Conflicts of interest.
``Sec. 3908. Loan summary statements.
``Sec. 3909. Certified lenders program.
``Sec. 3910. Loans to resident aliens.
``Sec. 3911. Expedited clearing of title to inventory property.
``Sec. 3912. Transfer of land to Secretary.
``Sec. 3913. Competitive sourcing limitations.
``Sec. 3914. Regulations.
``SEC. 3002. DEFINITIONS.
``In this title (unless the context otherwise requires):
``(1) Able to obtain credit elsewhere.--The term `able to
obtain credit elsewhere' means able to obtain a loan from a
production credit association, a Federal land bank, or other
responsible cooperative or private credit source (or, in the
case of a borrower under section 3106, the borrower may be able
to obtain a loan under section 3101) at reasonable rates and
terms, taking into consideration prevailing private and
cooperative rates and terms in the community in or near which
the applicant resides for loans for similar purposes and
periods of time.
``(2) Agricultural credit insurance fund.--The term
`Agricultural Credit Insurance Fund' means the fund established
under section 3401.
``(3) Approved lender.--The term `approved lender' means--
``(A) a lender approved prior to October 28, 1992,
by the Secretary under the approved lender program
established by exhibit A to subpart B of part 1980 of
title 7, Code of Federal Regulations (as in effect on
January 1, 1991); or
``(B) a lender certified under section 3909.
``(4) Aquaculture.--The term `aquaculture' means the
culture or husbandry of aquatic animals or plants by private
industry for commercial purposes, including the culture and
growing of fish by private industry for the purpose of creating
or augmenting publicly owned and regulated stocks of fish.
``(5) Beginning farmer.--The term `beginning farmer' has
the meaning given the term by the Secretary.
``(6) Borrower.--
``(A) In general.--Except as provided in
subparagraph (B), the term `borrower' means an
individual or entity who has an outstanding obligation
to the Secretary under any loan made or guaranteed
under this title, without regard to whether the loan
has been accelerated.
``(B) Exclusions.--The term `borrower' does not
include an individual or entity all of whose loans and
accounts have been foreclosed on or liquidated,
voluntarily or otherwise.
``(7) County committee.--The term `county committee' means
the appropriate county committee established under section
8(b)(5) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)(5)).
``(8) Debt forgiveness.--
``(A) In general.--Except as provided in
subparagraph (B), the term `debt forgiveness' means
reducing or terminating a loan made or guaranteed under
this title, in a manner that results in a loss to the
Secretary, through--
``(i) writing down or writing off a loan
under section 3411;
``(ii) compromising, adjusting, reducing,
or charging-off a debt or claim under section
3903;
``(iii) paying a loss on a guaranteed loan
under this title; or
``(iv) discharging a debt as a result of
bankruptcy.
``(B) Loan restructuring.--The term `debt
forgiveness' does not include consolidation,
rescheduling, reamortization, or deferral.
``(9) Department.--The term `Department' means the
Department of Agriculture.
``(10) Direct loan.--The term `direct loan' means a loan
made by the Secretary from appropriated funds.
``(11) Entity.--The term `entity' means a corporation, farm
cooperative, partnership, joint operation, governmental entity,
or other legal organization, as determined by the Secretary.
``(12) Farm.--The term `farm' means an operation involved
in--
``(A) the production of an agricultural commodity;
``(B) ranching; or
``(C) aquaculture, in a controlled environment.
``(13) Farmer.--The term `farmer' means an individual or
entity engaged primarily and directly in--
``(A) the production of an agricultural commodity;
``(B) ranching; or
``(C) aquaculture, in a controlled environment.
``(14) Farmer program loan.--The term `farmer program loan'
means--
``(A) a farm ownership loan under section 3101;
``(B) a conservation loan under section 3103;
``(C) an operating loan under section 3201;
``(D) an emergency loan under section 3301;
``(E) an economic emergency loan under section 202
of the Emergency Agricultural Credit Adjustment Act of
1978 (7 U.S.C. prec. 1961 note; Public Law 95-334);
``(F) a loan for a farm service building under
section 502 of the Housing Act of 1949 (42 U.S.C.
1472);
``(G) an economic opportunity loan under section
602 of the Economic Opportunity Act of 1964 (Public Law
88-452; 42 U.S.C. 2942 note) (as it existed before the
amendment made by section 683(a) of the Omnibus Budget
Reconciliation Act of 1981 (Public Law 97-35; 95 Stat.
519));
``(H) a softwood timber loan under section 608 of
the Agricultural Programs Adjustment Act of 1984 (7
U.S.C. 1981 note; Public Law 98-258); or
``(I) any other loan described in section
343(a)(10) of this title (as it existed before the
amendment made by section 2 of the Agriculture Reform,
Food, and Jobs Act of 2013) that is outstanding on the
date of enactment of that Act.
``(15) Farm service agency.--The term `Farm Service Agency'
means the offices of the Farm Service Agency to which the
Secretary delegates responsibility to carry out this title.
``(16) Governmental entity.--The term `governmental entity'
means any agency of a State or a unit of local government of a
State, or subdivision thereof.
``(17) Guarantee.--The term `guarantee' means guaranteeing
the payment of a loan originated, held, and serviced by a
private financial agency, or lender, approved by the Secretary.
``(18) Highly erodible land.--The term `highly erodible
land' has the meaning given the term in section 1201(a) of the
Food Security Act of 1985 (16 U.S.C. 3801(a)).
``(19) Homestead retention.--The term `homestead retention'
means homestead retention as authorized under section 3414.
``(20) Indian tribe.--The term `Indian tribe' means a
Federal or State-recognized Indian tribe or other federally
recognized Indian tribal group (including a Tribal College or
University, as defined in section 316(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059c(b)).
``(21) Loan service program.--The term `loan service
program' means, with respect to a farmer program loan borrower,
a primary loan service program or a homestead retention
program.
``(22) Natural or major disaster or emergency.--The term
`natural or major disaster or emergency' means--
``(A) a disaster due to nonmanmade causes declared
by the Secretary; or
``(B) a major disaster or emergency designated by
the President under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
``(23) Primary loan service program.--The term `primary
loan service program' means, with respect to a farmer program
loan--
``(A) loan consolidation, rescheduling, or
reamortization;
``(B) interest rate reduction, including the use of
the limited resource program;
``(C) loan restructuring, including deferral, set
aside, or writing down of the principal or accumulated
interest charges, or both, of the loan; or
``(D) any combination of actions described in
subparagraphs (A), (B), and (C).
``(24) Prime farmland.--The term `prime farmland' means
prime farmland and unique farmland (as defined in subsections
(a) and (b) of section 657.5 of title 7, Code of Federal
Regulations (1980)).
``(25) Project.--For purposes of section 3501, the term
`project' includes a facility providing central service or a
facility serving an individual property, or both.
``(26) Qualified beginning farmer.--The term `qualified
beginning farmer' means an applicant, regardless of whether the
applicant is participating in a program under section 3107,
who--
``(A) is eligible for assistance under subtitle A;
``(B) has not operated a farm, or has operated a
farm for not more than 10 years;
``(C) in the case of a cooperative, corporation,
partnership, or joint operation, has members,
stockholders, partners, or joint operators who are all
related to each other by blood or marriage;
``(D) in the case of a farmer who is the owner and
operator of a farm--
``(i) in the case of a loan made to an
individual, individually or with the immediate
family of the applicant--
``(I) materially and substantially
participates in the operation of the
farm; and
``(II) provides substantial day-to-
day labor and management of the farm,
consistent with the practices in the
State or county in which the farm is
located; or
``(ii)(I) in the case of a loan made to a
cooperative, corporation, partnership, or joint
operation, has members, stockholders, partners,
or joint operators who materially and
substantially participate in the operation of
the farm; and
``(II) in the case of a loan made to a
corporation, has stockholders who all qualify
individually as beginning farmers;
``(E) in the case of an applicant seeking to become
an owner and operator of a farm--
``(i) in the case of a loan made to an
individual, individually or with the immediate
family of the applicant, will--
``(I) materially and substantially
participate in the operation of the
farm; and
``(II) provide substantial day-to-
day labor and management of the farm,
consistent with the practices in the
State or county in which the farm is
located; or
``(ii)(I) in the case of a loan made to a
cooperative, corporation, partnership, or joint
operation, will have members, stockholders,
partners, or joint operators who will
materially and substantially participate in the
operation of the farm; and
``(II) in the case of a loan made to a
corporation, has stockholders who will all
qualify individually as beginning farmers;
``(F) agrees to participate in such loan
assessment, borrower training, and financial management
programs as the Secretary may require;
``(G)(i) does not own farm land; or
``(ii) directly or through interests in family farm
corporations, owns farm land, the aggregate acreage of
which does not exceed 30 percent of the average acreage
of the farms, as the case may be, in the county in
which the farm operations of the applicant are located,
as reported in the most recent census of agriculture
taken in accordance with the Census of Agriculture Act
of 1997 (7 U.S.C. 2204g et seq.), except that this
subparagraph shall not apply to a loan made or
guaranteed under chapter 2 of subtitle A; and
``(H) demonstrates that the available resources of
the applicant and any spouse of the applicant are not
sufficient to enable the applicant to farm on a viable
scale.
``(27) Recreational purpose.--For purposes of section 3410,
the term `recreational purpose' has the meaning provided by the
Secretary, but shall include hunting.
``(28) Rural and rural area.--
``(A) In general.--Subject to any determination
made under subparagraph (B), the terms `rural' and
`rural area' mean any area other than--
``(i) a city or town that has a population
of greater than 50,000 inhabitants; and
``(ii) any urbanized area contiguous and
adjacent to a city or town described in clause
(i).
``(B) Determination of areas rural in character.--
``(i) In general.--If part of an area
described in subparagraph (A)(ii) was eligible
under the definitions of the terms `rural' and
`rural area' in section 343 (as in effect on
the day before the date of enactment of the
Agriculture Reform, Food, and Jobs Act of 2013)
for community facility, water and waste
disposal, and broadband programs, that area
shall remain eligible unless the Secretary,
acting through the Under Secretary for Rural
Development (referred to in this subparagraph
as the `Under Secretary'), determines the area
is no longer rural, based on the criteria
described in clause (iii).
``(ii) Other areas.--On petition of a unit
of local government in an urbanized area
described in subparagraph (A)(ii), or on the
initiative of the Under Secretary, the Under
Secretary may determine that part of an area is
rural, based on the criteria described in
clause (iii).
``(iii) Criteria.--In making a
determination under clause (i), the Under
Secretary shall consider--
``(I) population density;
``(II) economic conditions,
favoring a rural determination for
areas facing--
``(aa) chronic unemployment
in excess of statewide
averages;
``(bb) sudden loss of
employment from natural
disaster or the loss of a
significant employer in the
area; or
``(cc) chronic poverty
demonstrated at the census
block or county level compared
to statewide median household
income; and
``(III) commuting patterns,
favoring a rural determination for
areas that can demonstrate higher
proportions of the population living
and working in the area.
``(iv) Administration.--In carrying out
this subparagraph, the Under Secretary shall--
``(I) not delegate the authority to
carry out this subparagraph;
``(II) not make a determination
under clause (i) until the date that is
3 years after the date of enactment of
the Agriculture Reform, Food, and Jobs
Act of 2013;
``(III) consult with the applicable
rural development State or regional
director of the Department and the
Governor of the respective State;
``(IV) provide an opportunity to
appeal to the Under Secretary a
determination made under this
subparagraph;
``(V) release to the public notice
of a petition filed or initiative of
the Under Secretary under this
subparagraph not later than 30 days
after receipt of the petition or the
commencement of the initiative, as
appropriate;
``(VI) make a determination under
this subparagraph not less than 15
days, and not more than 60 days, after
the release of the notice under
subclause (V); and
``(VII) submit to the Committee on
Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate an annual report on actions
taken to carry out this subparagraph.
``(v) Hawaii and puerto rico.--
Notwithstanding any other provision of this
subsection, within the areas of the County of
Honolulu, Hawaii, and the Commonwealth of
Puerto Rico, the Under Secretary may designate
any part of the areas as a rural area if the
Under Secretary determines that the part is not
urban in character, other than any area
included in the Honolulu Census Designated
Place or the San Juan Census Designated Place.
``(C) Exclusions.--Notwithstanding any other
provision of this paragraph, in determining which
census blocks in an urbanized area are not in a rural
area (as defined in this paragraph), the Secretary
shall exclude any cluster of census blocks that would
otherwise be considered not in a rural area only
because the cluster is adjacent to not more than 2
census blocks that are otherwise considered not in a
rural area under this paragraph.
``(29) Seasoned direct loan borrower.--The term `seasoned
direct loan borrower' means a borrower who could reasonably be
expected to qualify for commercial credit using criteria
determined by the Secretary.
``(30) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(31) Socially disadvantaged farmer.--The term `socially
disadvantaged farmer' means a farmer who is a member of a
socially disadvantaged group.
``(32) Socially disadvantaged group.--The term `socially
disadvantaged group' means a group whose members have been
subjected to racial, ethnic, or gender prejudice because of the
identity of the members as members of a group without regard to
the individual qualities of the members.
``(33) Solar energy.--The term `solar energy' means energy
derived from sources (other than fossil fuels) and technologies
included in the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5901 et seq.).
``(34) State.--The term `State' means--
``(A) in this title (other than subtitle A), each
of the 50 States, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia,
and the Republic of Palau; and
``(B) in subtitle A, each of the 50 States, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern
Mariana Islands, and, to the extent the Secretary
determines it to be feasible and appropriate, the
Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
``(35) State beginning farmer program.--The term `State
beginning farmer program' means any program that is--
``(A) carried out by, or under contract with, a
State; and
``(B) designed to assist qualified beginning
farmers in obtaining the financial assistance necessary
to enter agriculture and establish viable farming
operations.
``(36) Veteran.--The term `veteran' has the meaning given
the term in section 101 of title 38, United States Code.
``(37) Wetland.--The term `wetland' has the meaning given
the term in section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)).
``(38) Wildlife.--The term `wildlife' means fish or
wildlife (as defined in section 2(a) of the Lacey Act
Amendments of 1981 (16 U.S.C. 3371(a))).
``Subtitle B--Rural Development
``CHAPTER 1--RURAL COMMUNITY PROGRAMS
``SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN GUARANTEES, AND
GRANTS.
``(a) In General.--The Secretary may make grants and loans and
issue loan guarantees (including a guarantee of a loan financed by the
net proceeds of a bond described in section 142(a) of the Internal
Revenue Code of 1986) to eligible entities described in subsection (b)
for projects in rural areas that primarily serve rural residents to
provide for--
``(1) the development, storage, treatment, purification, or
distribution of water or the collection, treatment, or disposal
of waste; and
``(2) financial assistance and other aid in the planning of
projects for purposes described in paragraph (1).
``(b) Eligible Entities.--Entities eligible for assistance
described in subsection (a) are--
``(1) associations (including corporations not operated for
profit);
``(2) Indian tribes;
``(3) public and quasi-public agencies; and
``(4) in the case of a project to attach an individual
property in a rural area to a water system to alleviate a
health risk, an individual.
``(c) Loan and Loan Guarantee Requirements.--In connection with
loans made or guaranteed under this section, the Secretary shall
require the applicant--
``(1) to certify in writing, and the Secretary shall
determine, that the applicant is unable to obtain credit
elsewhere to finance the actual needs of the applicant at
reasonable rates and terms, taking into consideration
prevailing private and cooperative rates and terms in the
community in or near which the applicant resides for loans for
similar purposes and periods of time; and
``(2) to furnish an appropriate written financial
statement.
``(d) Grant Amounts.--
``(1) Maximum.--Except as otherwise provided in this
subsection, the amount of any grant made under this section
shall not exceed 75 percent of the development cost of the
project for which the grant is provided.
``(2) Grant rate.--The Secretary shall establish the grant
rate for each project in conformity with regulations issued by
the Secretary that shall provide for a graduated scale of grant
rates that establish higher rates for projects in communities
that have--
``(A) lower community population;
``(B) higher rates of outmigration; and
``(C) lower income levels.
``(3) Local share requirements.--Grants made under this
section may be used to pay the local share requirements of
another Federal grant-in-aid program to the extent permitted
under the law providing for the grant-in-aid program.
``(e) Special Grants.--
``(1) Revolving funds for financing water and wastewater
projects.--
``(A) In general.--The Secretary may make grants to
qualified, nonprofit entities in rural areas to
capitalize revolving funds for the purpose of providing
financing to eligible entities for--
``(i) predevelopment costs associated with
proposed water and wastewater projects or with
existing water and wastewater systems; and
``(ii) short-term costs incurred for
replacement equipment, small-scale extension
services, or other small capital projects that
are not part of the regular operations and
maintenance activities of existing water and
wastewater systems.
``(B) Maximum amount of financing.--The amount of
financing made to an eligible entity under this
paragraph shall not exceed--
``(i) $100,000 for costs described in
subparagraph (A)(i); and
``(ii) $100,000 for costs described in
subparagraph (A)(ii).
``(C) Term.--The term of financing provided to an
eligible entity under this paragraph shall not exceed
10 years.
``(D) Administration.--The Secretary shall limit
the amount of grant funds that may be used by a grant
recipient for administrative costs incurred under this
paragraph.
``(E) Annual report.--A nonprofit entity receiving
a grant under this paragraph shall submit to the
Secretary an annual report that describes the number
and size of communities served and the type of
financing provided.
``(F) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $30,000,000 for each of fiscal years 2014
through 2018.
``(2) Emergency and imminent community water assistance
program.--
``(A) In general.--The Secretary shall provide
grants in accordance with this paragraph to assist the
residents of rural areas and small communities to
secure adequate quantities of safe water--
``(i) after a significant decline in the
quantity or quality of water available from the
water supplies of the rural areas and small
communities, or when such a decline is
imminent; or
``(ii) when repairs, partial replacement,
or significant maintenance efforts on
established water systems would remedy--
``(I) an acute or imminent shortage
of quality water; or
``(II) a significant or imminent
decline in the quantity or quality of
water that is available.
``(B) Priority.--In carrying out subparagraph (A),
the Secretary shall--
``(i) give priority to projects described
in subparagraph (A)(i); and
``(ii) provide at least 70 percent of all
grants under this paragraph to those projects.
``(C) Eligibility.--To be eligible to obtain a
grant under this paragraph, an applicant shall--
``(i) be a public or private nonprofit
entity; and
``(ii) in the case of a grant made under
subparagraph (A)(i), demonstrate to the
Secretary that the decline referred to in that
subparagraph occurred, or will occur, not later
than 2 years after the date on which the
application was filed for the grant.
``(D) Uses.--
``(i) In general.--Grants made under this
paragraph may be used--
``(I) for waterline extensions from
existing systems, laying of new
waterlines, repairs, significant
maintenance, digging of new wells,
equipment replacement, and hook and tap
fees;
``(II) for any other appropriate
purpose associated with developing
sources of, treating, storing, or
distributing water;
``(III) to assist communities in
complying with the requirements of the
Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.) or the Safe
Drinking Water Act (42 U.S.C. 300f et
seq.); and
``(IV) to provide potable water to
communities through other means.
``(ii) Joint proposals.--
``(I) In general.--Subject to the
restrictions in subparagraph (E),
nothing in this paragraph precludes
rural communities from submitting joint
proposals for emergency water
assistance.
``(II) Consideration of
restrictions.--The restrictions in
subparagraph (E) shall be considered in
the aggregate, depending on the number
of communities involved.
``(E) Restrictions.--
``(i) Maximum income.--No grant provided
under this paragraph shall be used to assist
any rural area or community that has a median
household income in excess of the State
nonmetropolitan median household income
according to the most recent decennial census
of the United States.
``(ii) Set-aside for smaller communities.--
Not less than 50 percent of the funds allocated
under this paragraph shall be allocated to
rural communities with populations that do not
exceed 3,000 inhabitants.
``(F) Maximum grants.--Grants made under this
paragraph may not exceed--
``(i) in the case of each grant made under
subparagraph (A)(i), $500,000; and
``(ii) in the case of each grant made under
subparagraph (A)(ii), $150,000.
``(G) Full funding.--Subject to subparagraph (F),
grants under this paragraph shall be made in an amount
equal to 100 percent of the costs of the projects
conducted under this paragraph.
``(H) Application.--
``(i) Nationally competitive application
process.--
``(I) In general.--The Secretary
shall develop a nationally competitive
application process to award grants
under this paragraph.
``(II) Requirements.--The process
shall include criteria for evaluating
applications, including population,
median household income, and the
severity of the decline, or imminent
decline, in the quantity or quality of
water.
``(ii) Timing of review of applications.--
``(I) Simplified application.--The
application process developed by the
Secretary under clause (i) shall
include a simplified application form
that will permit expedited
consideration of an application for a
grant filed under this paragraph.
``(II) Priority review.--In
processing applications for any water
or waste grant or loan authorized under
this section, the Secretary shall
afford priority processing to an
application for a grant under this
paragraph to the extent funds will be
available for an award on the
application at the conclusion of
priority processing.
``(III) Timing.--The Secretary
shall, to the maximum extent
practicable, review and act on an
application under this paragraph not
later than 60 days after the date on
which the application is submitted to
the Secretary.
``(I) Funding.--
``(i) Reservation.--
``(I) In general.--For each fiscal
year, not less than 3 nor more than 5
percent of the total amount made
available to carry out this section for
the fiscal year shall be reserved for
grants under this paragraph.
``(II) Release.--Funds reserved
under subclause (I) for a fiscal year
shall be reserved only until July 1 of
the fiscal year.
``(ii) Authorization of appropriations.--In
addition to funds made available under clause
(i), there is authorized to be appropriated to
carry out this paragraph $35,000,000 for each
of fiscal years 2014 through 2018.
``(3) Water and waste facility loans and grants to
alleviate health risks.--
``(A) Definition of cooperative.--In this
paragraph, the term `cooperative' means a cooperative
formed specifically for the purpose of the
installation, expansion, improvement, or operation of
water supply or waste disposal facilities or systems.
``(B) Loans and grants to persons other than
individuals.--
``(i) In general.--The Secretary shall make
or guarantee loans and make grants to provide
for the conservation, development, use, and
control of water (including the extension or
improvement of existing water supply systems)
and the installation or improvement of drainage
or waste disposal facilities and essential
community facilities, including necessary
related equipment, training, and technical
assistance to--
``(I) rural water supply
corporations, cooperatives, or similar
entities;
``(II) Indian tribes on Federal or
State reservations and other federally
recognized Indian tribes;
``(III) rural or native villages in
the State of Alaska;
``(IV) native tribal health
consortiums;
``(V) public agencies; and
``(VI) Native Hawaiian Home Lands.
``(ii) Eligible projects.--Loans and grants
described in clause (i) shall be available only
to provide the described water and waste
facilities and services to communities whose
residents face significant health risks, as
determined by the Secretary, due to the fact
that a significant proportion of the residents
of the community do not have access to, or are
not served by, adequate affordable--
``(I) water supply systems; or
``(II) waste disposal facilities.
``(iii) Matching requirements.--For
entities described under subclauses (III),
(IV), or (V) of clause (i) to be eligible to
receive a grant for water supply systems or
waste disposal facilities, the State in which
the project will occur shall provide 25 percent
in matching funds from non-Federal sources.
``(iv) Certain areas targeted.--
``(I) In general.--Loans and grants
under clause (i) shall be made only if
the loan or grant funds will be used
primarily to provide water or waste
services, or both, to residents of a
county or census area--
``(aa) the per capita
income of the residents of
which is not more than 70
percent of the national average
per capita income, as
determined by the Department of
Commerce; and
``(bb) the unemployment
rate of the residents of which
is not less than 125 percent of
the national average
unemployment rate, as
determined by the Bureau of
Labor Statistics.
``(II) Exceptions.--Notwithstanding
subclause (I), loans and grants under
clause (i) may also be made if the loan
or grant funds will be used primarily
to provide water or waste services, or
both, to residents of--
``(aa) a rural area that
was recognized as a colonia as
of October 1, 1989; or
``(bb) an area described
under subclause (II), (III), or
(VI) of clause (i).
``(C) Loans and grants to individuals.--
``(i) In general.--The Secretary shall make
or guarantee loans and make grants to
individuals who reside in a community described
in subparagraph (B)(i) for the purpose of
extending water supply and waste disposal
systems, connecting the systems to the
residences of the individuals, or installing
plumbing and fixtures within the residences of
the individuals to facilitate the use of the
water supply and waste disposal systems.
``(ii) Interest.--Loans described in clause
(i) shall be at a rate of interest no greater
than the Federal Financing Bank rate on loans
of a similar term at the time the loans are
made.
``(iii) Amortization.--The repayment of
loans described in clause (i) shall be
amortized over the expected life of the water
supply or waste disposal system to which the
residence of the borrower will be connected.
``(iv) Manner in which loans and grants are
to be made.--Loans and grants to individuals
under clause (i) shall be made--
``(I) directly to the individuals
by the Secretary; or
``(II) to the individuals through
the rural water supply corporation,
cooperative, or similar entity, or
public agency, providing the water
supply or waste disposal services,
pursuant to regulations issued by the
Secretary.
``(D) Preference.--The Secretary shall give
preference in the awarding of loans and grants under
subparagraphs (B) and (C) to entities described in
clause (i) of subparagraph (B) that propose to provide
water supply or waste disposal services to the
residents of Indian reservations, rural or native
villages in the State of Alaska, Native Hawaiian Home
Lands, and those rural subdivisions commonly referred
to as colonias, that are characterized by substandard
housing, inadequate roads and drainage, and a lack of
adequate water or waste facilities.
``(E) Relationship to other authority.--
Notwithstanding any other provision of law, the head of
any Federal agency may enter into interagency
agreements with Federal, State, tribal, and other
entities to share resources, including transferring and
accepting funds, equipment, or other supplies, to carry
out the activities described in this paragraph.
``(F) Authorization of appropriations.--There are
authorized to be appropriated--
``(i) for grants under this paragraph,
$60,000,000 for each fiscal year;
``(ii) for loans under this paragraph,
$60,000,000 for each fiscal year; and
``(iii) in addition to grants provided
under clause (i), for grants under this section
to benefit Indian tribes, $20,000,000 for each
fiscal year.
``(4) Solid waste management grants.--
``(A) In general.--The Secretary may make grants to
nonprofit organizations for the provision of regional
technical assistance to local and regional governments
and related agencies for the purpose of reducing or
eliminating pollution of water resources and improving
the planning and management of solid waste disposal
facilities in rural areas.
``(B) Technical assistance grant amounts.--Grants
made under this paragraph for the provision of
technical assistance shall be made for 100 percent of
the cost of the technical assistance.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $10,000,000 for each of fiscal years 2014
through 2018.
``(5) Rural water and wastewater technical assistance and
training programs.--
``(A) Grants to nonprofits.--
``(i) In general.--The Secretary may make
grants to nonprofit organizations to enable the
organizations to provide to associations that
provide water and wastewater services in rural
areas technical assistance and training--
``(I) to identify, and evaluate
alternative solutions to, problems
relating to the obtaining, storage,
treatment, purification, or
distribution of water or the
collection, treatment, or disposal of
waste in rural areas;
``(II) to prepare applications to
receive financial assistance for any
purpose specified in subsection (a)(1)
from any public or private source; and
``(III) to improve the operation
and maintenance practices at any
existing works for the storage,
treatment, purification, or
distribution of water or the
collection, treatment, or disposal of
waste in rural areas.
``(ii) Selection priority.--In selecting
recipients of grants to be made under clause
(i), the Secretary shall give priority to
nonprofit organizations that have experience in
providing the technical assistance and training
described in clause (i) to associations serving
rural areas in which--
``(I) residents have low income;
and
``(II) water supply systems or
waste facilities are unhealthful.
``(iii) Funding.--
``(I) In general.--Except as
provided in subclause (II), not less
than 1 nor more than 3 percent of any
funds made available to carry out water
and waste disposal projects described
in subsection (a) for any fiscal year
shall be reserved for grants under this
paragraph.
``(II) Exception.--The minimum
amount specified in subclause (I) shall
not apply if the aggregate amount of
grant funds requested by applications
that qualify for grants received by the
Secretary from eligible nonprofit
organizations for the fiscal year
totals less than 1 percent of those
funds.
``(B) Rural water and wastewater circuit rider
program.--
``(i) In general.--The Secretary shall
continue a national rural water and wastewater
circuit rider program that--
``(I) is consistent with the
activities and results of the program
conducted before January 1, 2012, as
determined by the Secretary; and
``(II) received funding from the
Secretary, acting through the
Administrator of the Rural Utilities
Service.
``(ii) Authorization of appropriations.--
There is authorized to be appropriated to carry
out this subparagraph $25,000,000 for fiscal
year 2014 and each fiscal year thereafter.
``(6) SEARCH program.--
``(A) In general.--The Secretary may establish a
Special Evaluation Assistance for Rural Communities and
Households (SEARCH) program to make predevelopment
planning grants for feasibility studies, design
assistance, and technical assistance, to financially
distressed communities in rural areas with populations
of 2,500 or fewer inhabitants for water and waste
disposal projects described in this section.
``(B) Terms.--
``(i) Documentation.--With respect to
grants made under this paragraph, the Secretary
shall require the lowest quantity of
documentation practicable.
``(ii) Matching.--Notwithstanding any other
provision of this section, the Secretary may
fund up to 100 percent of the eligible costs of
grants provided under this paragraph, as
determined by the Secretary.
``(iii) Funding.--The Secretary may use not
more than 4 percent of the total amount of
funds made available for a fiscal year for
water, waste disposal, and essential community
facility activities under this chapter to carry
out this paragraph.
``(C) Relationship to other authority.--
``(i) In general.--The funds and
authorities provided under this paragraph are
in addition to any other funds or authorities
the Secretary may have to carry out activities
described in this section.
``(ii) Authorized activities.--The
Secretary may furnish financial assistance or
other aid in planning projects for the purposes
described in subparagraph (A).
``(f) Priority.--In making grants and loans, and guaranteeing
loans, for water, wastewater, and waste disposal projects under this
section, the Secretary shall give priority consideration to projects
that serve rural communities that, as determined by the Secretary--
``(1) have a population of less than 5,500 permanent
residents;
``(2) have a community water, wastewater, or waste disposal
system that--
``(A) is experiencing--
``(i) an unanticipated reduction in the
quality of water, the quantity of water, or the
ability to deliver water; or
``(ii) some other deterioration in the
supply of water to the community;
``(B) is not adequate to meet the needs of the
community; and
``(C) requires immediate corrective action;
``(3) are experiencing outmigration;
``(4) have a high percentage of low-income residents; or
``(5) are isolated from other significant population
centers.
``(g) Curtailment or Limitation of Service Prohibited.--The service
provided or made available through any such association shall not be
curtailed or limited by inclusion of the area served by such
association within the boundaries of any municipal corporation or other
public body, or by the granting of any private franchise for similar
service within such area during the term of such loan; nor shall the
happening of any such event be the basis of requiring such association
to secure any franchise, license, or permit as a condition to
continuing to serve the area served by the association at the time of
the occurrence of such event.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.
``SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARANTEES, AND GRANTS.
``(a) In General.--The Secretary may make grants and loans and
issue loan guarantees (including a guarantee of a loan financed by the
net proceeds of a bond described in section 142(a) of the Internal
Revenue Code of 1986) to eligible entities described in subsection (b)
for projects in rural areas that primarily serve rural residents to
provide for--
``(1) essential community facilities, including--
``(A) necessary equipment;
``(B) recreational developments; and
``(2) financial assistance and other assistance in the
planning of projects for purposes described in this section.
``(b) Eligible Entities.--Entities eligible for assistance
described in subsection (a) are--
``(1) associations (including corporations not operated for
profit);
``(2) Indian tribes (including groups of individuals
described in paragraph (4) of section 815 of the Native
American Programs Act of 1974 (42 U.S.C. 2992c)); and
``(3) public and quasi-public agencies.
``(c) Loan and Loan Guarantee Requirements.--
``(1) In general.--In connection with loans made or
guaranteed under this section, the Secretary shall require the
applicant--
``(A) to certify in writing, and the Secretary
shall determine, that the applicant is unable to obtain
credit elsewhere to finance the actual needs of the
applicant; and
``(B) to furnish an appropriate written financial
statement.
``(2) Debt restructuring and loan servicing for community
facility loans.--The Secretary shall establish and implement a
program that is similar to the program established under
section 3411, except that the debt restructuring and loan
servicing procedures shall apply to delinquent community
facility program loans to a hospital or health care facility
under subsection (a).
``(d) Grant Amounts.--
``(1) Maximum.--Except as otherwise provided in this
subsection, the amount of any grant made under this section
shall not exceed 75 percent of the development cost of the
project for which the grant is provided.
``(2) Grant rate.--The Secretary shall establish the grant
rate for each project in conformity with regulations issued by
the Secretary that shall provide for a graduated scale of grant
rates that establish higher rates for projects in communities
that have--
``(A) low community population;
``(B) high rates of outmigration; and
``(C) low-income levels.
``(3) Local share requirements.--Grants made under this
section may be used to pay the local share requirements of
another Federal grant-in-aid program to the extent permitted
under the law providing for the grant-in-aid program.
``(e) Priority.--In making grants and loans, and guaranteeing loans
under this section, the Secretary shall give priority consideration to
projects that serve rural communities that--
``(1) have a population of less than 20,000 permanent
residents;
``(2) are experiencing outmigration;
``(3) have a high percentage of low-income residents; or
``(4) are isolated from other significant population
centers.
``(f) Tribal Colleges and Universities.--
``(1) In general.--The Secretary may make grants to an
entity that is a Tribal College or University (as defined in
section 316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b))) to provide the Federal share of the cost of
developing specific Tribal College or University essential
community facilities in rural areas.
``(2) Federal share.--The Secretary shall establish the
maximum percentage of the cost of the project that may be
covered by a grant under this subsection, except that the
Secretary may not require non-Federal financial support in an
amount that is greater than 5 percent of the total cost of the
project.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2014 through 2018.
``(g) Technical Assistance for Community Facilities Projects.--
``(1) In general.--Subject to paragraph (2), the Secretary
may use funds made available for community facilities programs
authorized under this section to provide technical assistance
to applicants and participants for community facilities
programs.
``(2) Funding.--The Secretary may use not more than 3
percent of the amount of funds made available to participants
for a fiscal year for a community facilities program to provide
technical assistance described in paragraph (1).
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.
``SEC. 3503. HEALTH CARE SERVICES.
``(a) Purpose.--The purpose of this section is to address the
continued unmet health needs in the Delta region through cooperation
among health care professionals, institutions of higher education,
research institutions, and other individuals and entities in the
region.
``(b) Definition of Eligible Entity.--In this section, the term
`eligible entity' means a consortium of regional institutions of higher
education, academic health and research institutes, and economic
development entities located in the Delta region that have experience
in addressing the health care issues in the region.
``(c) Grants.--To carry out the purpose described in subsection
(a), the Secretary may award a grant to an eligible entity for--
``(1) the development of--
``(A) health care services;
``(B) health education programs; and
``(C) health care job training programs; and
``(2) the development and expansion of public health-
related facilities in the Delta region to address longstanding
and unmet health needs of the region.
``(d) Use.--As a condition of the receipt of the grant, the
eligible entity shall use the grant to fund projects and activities
described in subsection (c), based on input solicited from local
governments, public health care providers, and other entities in the
Delta region.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $3,000,000 for
each of fiscal years 2014 through 2018.
``CHAPTER 2--RURAL BUSINESS AND COOPERATIVE DEVELOPMENT
``SEC. 3601. BUSINESS PROGRAMS.
``(a) Rural Business Development Grants.--
``(1) In general.--The Secretary may make grants under this
subsection to eligible entities described in paragraph (2) in
rural areas that primarily serve rural areas for purposes
described in paragraph (3).
``(2) Eligible entities.--The Secretary may make grants
under this subsection to--
``(A) governmental entities;
``(B) Indian tribes; and
``(C) nonprofit entities.
``(3) Eligible purposes for grants.--Eligible entities that
receive grants under this subsection may use the grant funds
for--
``(A) business opportunity projects that--
``(i) identify and analyze business
opportunities;
``(ii) identify, train, and provide
technical assistance to existing or prospective
rural entrepreneurs and managers;
``(iii) assist in the establishment of new
rural businesses and the maintenance of
existing businesses, including through business
support centers;
``(iv) conduct regional, community, and
local economic development planning and
coordination, and leadership development; and
``(v) establish centers for training,
technology, and trade that will provide
training to rural businesses in the use of
interactive communications technologies to
develop international trade opportunities and
markets; and
``(B) projects that support the development of
business enterprises that finance or facilitate--
``(i) the development of small and emerging
private business enterprise;
``(ii) the establishment, expansion, and
operation of rural distance learning networks;
``(iii) the development of rural learning
programs that provide educational instruction
or job training instruction related to
potential employment or job advancement to
adult students; and
``(iv) the provision of technical
assistance and training to rural communities
for the purpose of improving passenger
transportation services or facilities.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $65,000,000 for each of fiscal years 2014 through
2018, to remain available until expended.
``(b) Value-Added Agricultural Producer Grants.--
``(1) Definitions.--In this subsection:
``(A) Mid-tier value chain.--The term `mid-tier
value chain' means a local and regional supply network
that links independent producers with businesses and
cooperatives that market value-added agricultural
products in a manner that--
``(i) targets and strengthens the
profitability and competitiveness of small- and
medium-sized farms that are structured as
family farms; and
``(ii) obtains agreement from an eligible
agricultural producer group, farmer
cooperative, or majority-controlled producer-
based business venture that is engaged in the
value chain on a marketing strategy.
``(B) Producer.--The term `producer' means a
farmer.
``(C) Value-added agricultural product.--The term
`value-added agricultural product' means any
agricultural commodity or product--
``(i) that--
``(I) has undergone a change in
physical state;
``(II) was produced in a manner
that enhances the value of the
agricultural commodity or product, as
demonstrated through a business plan
that shows the enhanced value, as
determined by the Secretary;
``(III) is physically segregated in
a manner that results in the
enhancement of the value of the
agricultural commodity or product;
``(IV) is a source of farm-based
renewable energy, including E-85 fuel;
or
``(V) is aggregated and marketed as
a locally produced agricultural food
product; and
``(ii) for which, as a result of the change
in physical state or the manner in which the
agricultural commodity or product was produced,
marketed, or segregated--
``(I) the customer base for the
agricultural commodity or product is
expanded; and
``(II) a greater portion of the
revenue derived from the marketing,
processing, or physical segregation of
the agricultural commodity or product
is available to the producer of the
commodity or product.
``(2) Grants.--
``(A) In general.--The Secretary may make grants
under this subsection to--
``(i) independent producers of value-added
agricultural products; and
``(ii) an agricultural producer group,
farmer cooperative, or majority-controlled
producer-based business venture, as determined
by the Secretary.
``(B) Grants to a producer.--A grantee under
subparagraph (A)(i) shall use the grant--
``(i) to develop a business plan or perform
a feasibility study to establish a viable
marketing opportunity (including through mid-
tier value chains) for value-added agricultural
products; or
``(ii) to provide capital to establish
alliances or business ventures that allow the
producer to better compete in domestic or
international markets.
``(C) Grants to an agricultural producer group,
cooperative or producer-based business venture.--A
grantee under subparagraph (A)(ii) shall use the
grant--
``(i) to develop a business plan for viable
marketing opportunities in emerging markets for
a value-added agricultural product; or
``(ii) to develop strategies that are
intended to create marketing opportunities in
emerging markets for the value-added
agricultural product.
``(D) Award selection.--
``(i) Priority.--In awarding grants under
this subsection, the Secretary shall give
priority to projects--
``(I) that contribute to increasing
opportunities for operators of small-
and medium-sized farms that are
structured as family farms; or
``(II) at least \1/4\ of the
recipients of which are beginning
farmers or socially disadvantaged
farmers.
``(ii) Ranking.--In evaluating and ranking
proposals under this subsection, the Secretary
shall provide substantial weight to the
priorities described in clause (i).
``(E) Amount of grant.--
``(i) In general.--The total amount
provided to a grant recipient under this
subsection shall not exceed $500,000.
``(ii) Majority-controlled, producer-based
business ventures.--The total amount of all
grants provided to majority-controlled,
producer-based business ventures under this
subsection for a fiscal year shall not exceed
10 percent of the amount of funds used to make
all grants for the fiscal year under this
subsection.
``(F) Term.--The term of a grant under this
paragraph shall not exceed 3 years.
``(G) Simplified application.--The Secretary shall
offer a simplified application form and process for
project proposals requesting less than $50,000 under
this subsection.
``(3) Funding.--
``(A) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $40,000,000 for each of fiscal years 2014
through 2018.
``(B) Reservation of funds for projects to benefit
beginning farmers, socially disadvantaged farmers, and
mid-tier value chains.--
``(i) In general.--The Secretary shall
reserve 10 percent of the amounts made
available for each fiscal year under this
subsection to fund projects that benefit
beginning farmers or socially disadvantaged
farmers.
``(ii) Mid-tier value chains.--The
Secretary shall reserve 10 percent of the
amounts made available for each fiscal year
under this subsection to fund applications of
eligible entities described in paragraph (2)
that propose to develop mid-tier value chains.
``(iii) Unobligated amounts.--Any amounts
in the reserves for a fiscal year established
under clauses (i) and (ii) that are not
obligated by June 30 of the fiscal year shall
be available to the Secretary to make grants
under this subsection to eligible entities in
any State, as determined by the Secretary.
``(C) Mandatory funding.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use
to carry out this subsection $12,500,000 for each of
fiscal years 2014 through 2018, to remain available
until expended.
``(c) Rural Cooperative Development Grants.--
``(1) Definitions.--In this subsection:
``(A) Nonprofit institution.--The term `nonprofit
institution' means any organization or institution,
including an accredited institution of higher
education, no part of the net earnings of which inures,
or may lawfully inure, to the benefit of any private
shareholder or individual.
``(B) United states.--The term `United States'
means--
``(i) the several States; and
``(ii) the District of Columbia.
``(2) Grants.--The Secretary shall make grants under this
subsection to nonprofit institutions for the purpose of
enabling the nonprofit institutions to establish and operate
centers for rural cooperative development.
``(3) Goals.--The goals of a center funded under this
subsection shall be to facilitate the creation of jobs in rural
areas through the development of new rural cooperatives, value-
added processing, and rural businesses.
``(4) Application.--
``(A) In general.--Any nonprofit institution
seeking a grant under paragraph (2) shall submit to the
Secretary an application containing a plan for the
establishment and operation by the institution of 1 or
more centers for cooperative development.
``(B) Requirements.--The Secretary may approve an
application if the plan contains the following:
``(i) A provision that substantiates that
the center will effectively serve rural areas
in the United States.
``(ii) A provision that the primary
objective of the center will be to improve the
economic condition of rural areas through
cooperative development.
``(iii) A description of the activities
that the center will carry out to accomplish
the objective, which may include programs--
``(I) for applied research and
feasibility studies that may be useful
to individuals, cooperatives, small
businesses, and other similar entities
in rural areas served by the center;
``(II) for the collection,
interpretation, and dissemination of
information that may be useful to
individuals, cooperatives, small
businesses, and other similar entities
in rural areas served by the center;
``(III) providing training and
instruction for individuals,
cooperatives, small businesses, and
other similar entities in rural areas
served by the center;
``(IV) providing loans and grants
to individuals, cooperatives, small
businesses, and other similar entities
in rural areas served by the center;
``(V) providing technical
assistance, research services, and
advisory services to individuals,
cooperatives, small businesses, and
other similar entities in rural areas
served by the center; and
``(VI) providing for the
coordination of services and sharing of
information by the center.
``(iv) A description of the contributions
that the activities are likely to make to the
improvement of the economic conditions of the
rural areas for which the center will provide
services.
``(v) Provisions that the center, in
carrying out the activities, will seek, if
appropriate, the advice, participation,
expertise, and assistance of representatives of
business, industry, educational institutions,
the Federal Government, and State and local
governments.
``(vi) Provisions that the center will take
all practicable steps to develop continuing
sources of financial support for the center,
particularly from sources in the private
sector.
``(vii) Provisions for--
``(I) monitoring and evaluating the
activities by the nonprofit institution
operating the center; and
``(II) accounting for funds
received by the institution under this
section.
``(5) Awarding grants.--
``(A) In general.--Grants made under paragraph (2)
shall be made on a competitive basis.
``(B) Preference.--In making grants under paragraph
(2), the Secretary shall give preference to grant
applications providing for the establishment of centers
for rural cooperative development that--
``(i) demonstrate a proven track record in
carrying out activities to promote and assist
the development of cooperatively and mutually
owned businesses;
``(ii) demonstrate previous expertise in
providing technical assistance in rural areas
to promote and assist the development of
cooperatively and mutually owned businesses;
``(iii) demonstrate the ability to assist
in the retention of businesses, facilitate the
establishment of cooperatives and new
cooperative approaches, and generate employment
opportunities that will improve the economic
conditions of rural areas;
``(iv) commit to providing technical
assistance and other services to underserved
and economically distressed areas in rural
areas of the United States;
``(v) demonstrate a commitment to--
``(I) networking with and sharing
the results of the efforts of the
center with other cooperative
development centers and other
organizations involved in rural
economic development efforts; and
``(II) developing multiorganization
and multistate approaches to addressing
the economic development and
cooperative needs of rural areas; and
``(vi) commit to providing a 25 percent
matching contribution with private funds and
in-kind contributions, except that the
Secretary shall not require non-Federal
financial support in an amount that is greater
than 5 percent in the case of a 1994
institution (as defined in section 532 of the
Equity in Educational Land-Grant Status Act of
1994 (7 U.S.C. 301 note; Public Law 103-382)).
``(6) Grant period.--
``(A) In general.--A grant awarded to a center that
has received no prior funding under this subsection
shall be made for a period of 1 year.
``(B) Multiyear grants.--If the Secretary
determines it to be in the best interest of the
program, the Secretary shall award grants for a period
of more than 1 year, but not more than 3 years, to a
center that has successfully met the requirements of
paragraph (5)(B), as determined by the Secretary.
``(7) Authority to extend grant period.--The Secretary may
extend for 1 additional 12-month period the period during which
a grantee may use a grant made under this subsection.
``(8) Technical assistance to prevent excessive
unemployment or underemployment.--
``(A) In general.--In carrying out this subsection,
the Secretary may provide technical assistance to
alleviate or prevent conditions of excessive
unemployment, underemployment, outmigration, or low
employment growth in economically distressed rural
areas that the Secretary determines have a substantial
need for the assistance.
``(B) Inclusions.--The assistance may include
planning and feasibility studies, management and
operational assistance, and studies evaluating the need
for the development potential of projects that increase
employment and improve economic growth in the areas.
``(9) Grants to defray administrative costs.--
``(A) In general.--The Secretary may make grants to
defray not to exceed 75 percent of the costs incurred
by organizations and public bodies to carry out
projects for which grants or loans are made under this
subsection.
``(B) Cost-sharing.--For purposes of determining
the non-Federal share of the costs, the Secretary shall
include contributions in cash and in kind, fairly
evaluated, including premises, equipment, and services.
``(10) Cooperative research program.--The Secretary shall
offer to enter into a cooperative research agreement with 1 or
more qualified academic institutions in each fiscal year to
conduct research on the effects of all types of cooperatives on
the national economy.
``(11) Addressing needs of minority communities.--
``(A) In general.--If the total amount appropriated
under paragraph (13) for a fiscal year exceeds
$7,500,000, the Secretary shall reserve an amount equal
to 20 percent of the total amount appropriated for
grants for cooperative development centers, individual
cooperatives, or groups of cooperatives--
``(i) that serve socially disadvantaged
groups; and
``(ii) a majority of the boards of
directors or governing boards of which are
comprised of individuals who are members of
socially disadvantaged groups.
``(B) Insufficient applications.--To the extent
there are insufficient applications to carry out
subparagraph (A), the Secretary shall use the funds as
otherwise authorized by this subsection.
``(12) Interagency working group.--Not later than 90 days
after the date of enactment of the Agriculture Reform, Food,
and Jobs Act of 2013, the Secretary shall coordinate and chair
an interagency working group to foster cooperative development
and ensure coordination with Federal agencies and national and
local cooperative organizations that have cooperative programs
and interests.
``(13) Authorization of appropriations.--There is
authorized to be appropriated to carry out this subsection
$50,000,000 for each of fiscal years 2014 through 2018.
``(d) Appropriate Technology Transfer for Rural Areas Program.--
``(1) Definition of national nonprofit agricultural
assistance institution.--In this subsection, the term `national
nonprofit agricultural assistance institution' means an
organization that--
``(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under 501(a) of that Code;
``(B) has staff and offices in multiple regions of
the United States;
``(C) has experience and expertise in operating
national agricultural technical assistance programs;
``(D) expands markets for the agricultural
commodities produced by producers through the use of
practices that enhance the environment, natural
resource base, and quality of life; and
``(E) improves the economic viability of
agricultural operations.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas
program to assist agricultural producers that are seeking
information--
``(A) to reduce input costs;
``(B) to conserve energy resources;
``(C) to diversify operations through new energy
crops and energy generation facilities; and
``(D) to expand markets for agricultural
commodities produced by the producers by using
practices that enhance the environment, natural
resource base, and quality of life.
``(3) Implementation.--
``(A) In general.--The Secretary shall carry out
the program under this subsection by making a grant to,
or offering to enter into a cooperative agreement with,
a national nonprofit agricultural assistance
institution.
``(B) Grant amount.--A grant made, or cooperative
agreement entered into, under subparagraph (A) shall
provide 100 percent of the cost of providing
information described in paragraph (2).
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $5,000,000 for
each of fiscal years 2014 through 2018.
``(e) Business and Industry Direct and Guaranteed Loans.--
``(1) Definition of business and industry loan.--In this
section, the term `business and industry loan' means a direct
loan that is made, or a loan that is guaranteed, by the
Secretary under this subsection.
``(2) Loan purposes.--The Secretary may make business and
industry loans to public, private, or cooperative organizations
organized for profit or nonprofit, private investment funds
that invest primarily in cooperative organizations, or to
individuals--
``(A) to improve, develop, or finance business,
industry, and employment and improve the economic and
environmental climate in rural communities, including
pollution abatement and control;
``(B) to conserve, develop, and use water for
aquaculture purposes in rural areas; and
``(C) to reduce the reliance on nonrenewable energy
resources by encouraging the development and
construction of renewable energy systems (including
solar energy systems, wind energy systems, and
anaerobic digestors for the purpose of energy
generation), including the modification of existing
systems, in rural areas.
``(3) Loan guarantees for certain loans.--The Secretary may
guarantee loans made under this subsection to finance the
issuance of bonds for the projects described in paragraph (2).
``(4) Maximum amount of principal.--
``(A) In general.--Except as otherwise provided in
this paragraph, no loan may be made or guaranteed under
this subsection that exceeds $25,000,000 in principal
amount.
``(B) Limitations on loan guarantees for
cooperative organizations.--
``(i) Principal amount.--Subject to clause
(ii), the principal amount of a business and
industry loan made to a cooperative
organization and guaranteed under this
subsection shall not exceed $40,000,000.
``(ii) Use.--To be eligible for a guarantee
under this subsection for a business and
industry loan made to a cooperative
organization, the principal amount of the loan
in excess of $25,000,000 shall be used to carry
out a project that is in a rural area and--
``(I) provides for the value-added
processing of agricultural commodities;
or
``(II) significantly benefits 1 or
more entities eligible for assistance
for the purposes described in paragraph
(2), as determined by the Secretary.
``(iii) Applications.--If a cooperative
organization submits an application for a
guarantee under this paragraph, the Secretary
shall make the determination whether to approve
the application, and the Secretary may not
delegate this authority.
``(iv) Maximum amount.--The total amount of
business and industry loans made to cooperative
organizations and guaranteed for a fiscal year
under this subsection with principal amounts
that are in excess of $25,000,000 may not
exceed 10 percent of the total amount of
business and industry loans guaranteed for the
fiscal year under this subsection.
``(5) Fees.--The Secretary may assess a 1-time fee and an
annual renewal fee for any guaranteed business and industry
loan in an amount that does not exceed 3 percent of the
guaranteed principal portion of the loan.
``(6) Intangible assets.--In determining whether a
cooperative organization is eligible for a guaranteed business
and industry loan, the Secretary may consider the market value
of a properly appraised brand name, patent, or trademark of the
cooperative.
``(7) Loan appraisals.--The Secretary may require that any
appraisal made in connection with a business and industry loan
be conducted by a specialized appraiser that uses standards
that are comparable to standards used for similar purposes in
the private sector, as determined by the Secretary.
``(8) Loan guarantees for the purchase of cooperative
stock.--
``(A) In general.--The Secretary may guarantee a
business and industry loan to individual farmers to
purchase capital stock of a farmer cooperative
established for the purpose of processing an
agricultural commodity.
``(B) Processing contracts during initial period.--
A cooperative described in subparagraph (A) for which a
farmer receives a guarantee to purchase stock under
that subparagraph may contract for services to process
agricultural commodities or otherwise process value
added for the period beginning on the date of the
startup of the cooperative in order to provide adequate
time for the planning and construction of the
processing facility of the cooperative.
``(C) Financial information.--Financial information
required by the Secretary from a farmer as a condition
of making a business and industry loan guarantee under
this paragraph shall be provided in the manner
generally required by commercial agricultural lenders
in the applicable area.
``(9) Loans to cooperatives.--
``(A) Eligibility.--
``(i) In general.--The Secretary may make
or guarantee a business and industry loan to a
cooperative organization that is headquartered
in a metropolitan area if the loan is--
``(I) used for a project or venture
described in paragraph (2) that is
located in a rural area; or
``(II) a loan guarantee that meets
the requirements of paragraph (10).
``(ii) Equity.--The Secretary may guarantee
a loan made for the purchase of preferred stock
or similar equity issued by a cooperative
organization or a fund that invests primarily
in cooperative organizations, if the guarantee
significantly benefits 1 or more entities
eligible for assistance for the purposes
described in paragraph (2)(A), as determined by
the Secretary.
``(B) Refinancing.--A cooperative organization that
is eligible for a business and industry loan shall be
eligible to refinance an existing business and industry
loan with a lender if--
``(i) the cooperative organization--
``(I) is current and performing
with respect to the existing loan; and
``(II)(aa) is not, and has not
been, in payment default, with respect
to the existing loan; or
``(bb) has not converted any of the
collateral with respect to the existing
loan; and
``(ii) there is adequate security or full
collateral for the refinanced loan.
``(10) Loan guarantees in nonrural areas.--The Secretary
may guarantee a business and industry loan to a cooperative
organization for a facility that is not located in a rural area
if--
``(A) the primary purpose of the loan guarantee is
for a facility to provide value-added processing for
agricultural producers that are located within 80 miles
of the facility;
``(B) the applicant demonstrates to the Secretary
that the primary benefit of the loan guarantee will be
to provide employment for residents of a rural area;
and
``(C) the total amount of business and industry
loans guaranteed for a fiscal year under this paragraph
does not exceed 10 percent of the business and industry
loans guaranteed for the fiscal year under this
subsection.
``(11) Locally or regionally produced agricultural food
products.--
``(A) Definitions.--In this paragraph:
``(i) Locally or regionally produced
agricultural food product.--The term `locally
or regionally produced agricultural food
product' means any agricultural food product
that is raised, produced, and distributed in--
``(I) the locality or region in
which the final product is marketed, so
that the total distance that the
product is transported is less than 400
miles from the origin of the product;
or
``(II) the State in which the
product is produced.
``(ii) Underserved community.--The term
`underserved community' means a community
(including an urban or rural community and an
Indian tribal community) that, as determined by
the Secretary, has--
``(I) limited access to affordable,
healthy foods, including fresh fruits
and vegetables, in grocery retail
stores or farmer-to-consumer direct
markets; and
``(II) a high rate of hunger or
food insecurity or a high poverty rate.
``(B) Loan and loan guarantee program.--
``(i) In general.--The Secretary shall make
or guarantee loans to individuals,
cooperatives, cooperative organizations,
businesses, and other entities to establish and
facilitate enterprises that process,
distribute, aggregate, store, and market
locally or regionally produced agricultural
food products to support community development
and farm income.
``(ii) Requirement.--The recipient of a
loan or loan guarantee under this paragraph
shall include in an appropriate agreement with
retail and institutional facilities to which
the recipient sells locally or regionally
produced agricultural food products a
requirement to inform consumers of the retail
or institutional facilities that the consumers
are purchasing or consuming locally or
regionally produced agricultural food products.
``(iii) Priority.--In making or
guaranteeing a loan under this paragraph, the
Secretary shall give priority to projects that
have components benefitting underserved
communities.
``(iv) Reports.--Not later than 2 years
after the date of enactment of the Agriculture
Reform, Food, and Jobs Act of 2013 and annually
thereafter, the Secretary shall submit to the
Committee on Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate, and publish on the Internet, a report
that describes projects carried out using loans
or loan guarantees made under clause (i),
including--
``(I) summary information about all
projects;
``(II) the characteristics of the
communities served; and
``(III) resulting benefits.
``(v) Reservation of funds.--For each of
fiscal years 2014 through 2018, the Secretary
shall reserve not less than 5 percent of the
total amount of funds made available to carry
out this subsection to carry out this paragraph
until April 1 of the fiscal year.
``(vi) Outreach.--The Secretary shall
develop and implement an outreach plan to
publicize the availability of loans and loan
guarantees under this paragraph, working
closely with rural cooperative development
centers, credit unions, community development
financial institutions, regional economic
development authorities, and other financial
and economic development entities.
``(12) Authorization of appropriations.--There is
authorized to be appropriated to carry out this subsection
$75,000,000 for each of fiscal years 2014 through 2018.
``(f) Relending Programs.--
``(1) Intermediate relending program.--
``(A) In general.--The Secretary may make or
guarantee loans to eligible entities described in
subparagraph (B) so that the eligible entities may
relend the funds to individuals and entities for the
purposes described in subparagraph (C).
``(B) Eligible entities.--Entities eligible for
loans and loan guarantees described in subparagraph (A)
are--
``(i) public agencies;
``(ii) Indian tribes;
``(iii) cooperatives; and
``(iv) nonprofit corporations.
``(C) Eligible purposes.--The proceeds from loans
made or guaranteed by the Secretary pursuant to
subparagraph (A) may be relent by eligible entities for
projects that--
``(i) predominately serve communities in
rural areas; and
``(ii) as determined by the Secretary--
``(I) promote community
development;
``(II) establish new businesses;
``(III) establish and support
microlending programs; and
``(IV) create or retain employment
opportunities.
``(D) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $50,000,000 for each of fiscal years 2014
through 2018.
``(2) Rural microentrepreneur assistance program.--
``(A) Definitions.--In this paragraph:
``(i) Microentrepreneur.--The term
`microentrepreneur' means an owner and
operator, or prospective owner and operator, of
a rural microenterprise who is unable to obtain
sufficient training, technical assistance, or
credit other than under this subsection, as
determined by the Secretary.
``(ii) Microenterprise development
organization.--The term `microenterprise
development organization' means an organization
that is--
``(I) a nonprofit entity;
``(II) an Indian tribe, the tribal
government of which certifies to the
Secretary that--
``(aa) no microenterprise
development organization serves
the Indian tribe; and
``(bb) no rural
microentrepreneur assistance
program exists under the
jurisdiction of the Indian
tribe;
``(III) a public institution of
higher education; or
``(IV) a collaboration of rural
nonprofit entities serving a region or
State, if 1 lead nonprofit entity is
the sole underwriter of all loans and
is responsible for associated risks.
``(iii) Microloan.--The term `microloan'
means a business loan of not more than $50,000
that is provided to a rural microenterprise.
``(iv) Program.--The term `program' means
the rural microentrepreneur assistance program
established under subparagraph (B).
``(v) Rural microenterprise.--The term
`rural microenterprise' means a business entity
with not more than 10 full-time equivalent
employees located in a rural area.
``(vi) Training.--The term `training' means
teaching broad business principles or general
business skills in a group or public setting.
``(vii) Technical assistance.--The term
`technical assistance' means working with a
business client in a 1-to-1 manner to provide
business and financial management counseling,
assist in the preparation of business or
marketing plans, or provide other skills
tailored to an individual microentrepreneur.
``(B) Rural microentrepreneur assistance program.--
``(i) Establishment.--The Secretary shall
establish a rural microentrepreneur assistance
program to provide loans and grants to support
microentrepreneurs in the development and
ongoing success of rural microenterprises.
``(ii) Purpose.--The purpose of the program
is to provide microentrepreneurs with--
``(I) the skills necessary to
establish new rural microenterprises;
and
``(II) continuing technical and
financial assistance related to the
successful operation of rural
microenterprises.
``(iii) Loans.--
``(I) In general.--The Secretary
shall make loans to microenterprise
development organizations for the
purpose of providing fixed-interest
rate microloans to microentrepreneurs
for startup and growing rural
microenterprises.
``(II) Loan terms.--A loan made by
the Secretary to a microenterprise
development organization under this
subparagraph shall--
``(aa) be for a term not to
exceed 20 years; and
``(bb) bear an annual
interest rate of at least 1
percent.
``(III) Loan loss reserve fund.--
The Secretary shall require each
microenterprise development
organization that receives a loan under
this subparagraph to--
``(aa) establish a loan
loss reserve fund; and
``(bb) maintain the reserve
fund in an amount equal to at
least 5 percent of the
outstanding balance of such
loans owed by the
microenterprise development
organization, until all
obligations owed to the
Secretary under this
subparagraph are repaid.
``(IV) Deferral of interest and
principal.--The Secretary may permit
the deferral of payments on principal
and interest due on a loan to a
microenterprise development
organization made under this paragraph
for a 2-year period beginning on the
date on which the loan is made.
``(iv) Grants to support rural
microenterprise development.--
``(I) In general.--The Secretary
shall make grants to microenterprise
development organizations--
``(aa) to provide training
and technical assistance, and
other related services to rural
microentrepreneurs; and
``(bb) to carry out such
other projects and activities
as the Secretary determines
appropriate to further the
purposes of the program.
``(II) Selection.--In making grants
under subclause (I), the Secretary
shall--
``(aa) place an emphasis on
microenterprise development
organizations that serve
microentrepreneurs that are
located in rural areas that
have suffered significant
outward migration, as
determined by the Secretary;
and
``(bb) ensure, to the
maximum extent practicable,
that grant recipients include
microenterprise development
organizations of varying sizes
and that serve racially and
ethnically diverse populations.
``(v) Grants to assist
microentrepreneurs.--
``(I) In general.--The Secretary
shall make annual grants to
microenterprise development
organizations to provide technical
assistance to microentrepreneurs that--
``(aa) received a loan from
the microenterprise development
organization under subparagraph
(B)(iii); or
``(bb) are seeking a loan
from the microenterprise
development organization under
subparagraph (B)(iii).
``(II) Maximum amount of technical
assistance grant.--The maximum amount
of a grant under this clause shall be
in an amount equal to not more than 25
percent of the total outstanding
balance of microloans made by the
microenterprise development
organization under clause (iii), as of
the date the grant is awarded.
``(vi) Administrative expenses.--Not more
than 10 percent of a grant received by a
microenterprise development organization for a
fiscal year under this subparagraph may be used
to pay administrative expenses.
``(C) Administration.--
``(i) Matching requirement.--As a condition
of any grant made under clauses (iv) and (v) of
subparagraph (B), the Secretary shall require
the microenterprise development organization to
match not less than 15 percent of the total
amount of the grant in the form of matching
funds (including community development block
grants), indirect costs, or in-kind goods or
services.
``(ii) Oversight.--At a minimum, not later
than December 1 of each fiscal year, a
microenterprise development organization that
receives a loan or grant under this section
shall provide to the Secretary such information
as the Secretary may require to ensure that
assistance provided under this section is used
for the purposes for which the loan or grant
was made.
``(D) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $40,000,000 for each of fiscal years 2014
through 2018.
``(E) Mandatory funding for fiscal years 2014
through 2018.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
paragraph $3,000,000 for each of fiscal years 2014
through 2018, to remain available until expended.
``SEC. 3602. RURAL BUSINESS INVESTMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Articles.--The term `articles' means articles of
incorporation for an incorporated body or the functional
equivalent or other similar documents specified by the
Secretary for other business entities.
``(2) Developmental venture capital.--The term
`developmental venture capital' means capital in the form of
equity capital investments in rural business investment
companies with an objective of fostering economic development
in rural areas.
``(3) Employee welfare benefit plan; pension plan.--
``(A) In general.--The terms `employee welfare
benefit plan' and `pension plan' have the meanings
given the terms in section 3 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002).
``(B) Inclusions.--The terms `employee welfare
benefit plan' and `pension plan' include--
``(i) public and private pension or
retirement plans subject to this subtitle; and
``(ii) similar plans not covered by this
subtitle that have been established, and that
are maintained, by the Federal Government or
any State (including by a political
subdivision, agency, or instrumentality of the
Federal Government or a State) for the benefit
of employees.
``(4) Equity capital.--The term `equity capital' means
common or preferred stock or a similar instrument, including
subordinated debt with equity features.
``(5) Leverage.--The term `leverage' includes--
``(A) debentures purchased or guaranteed by the
Secretary;
``(B) participating securities purchased or
guaranteed by the Secretary; and
``(C) preferred securities outstanding as of the
date of enactment of the Agriculture Reform, Food, and
Jobs Act of 2013.
``(6) License.--The term `license' means a license issued
by the Secretary in accordance with in subsection (d)(5).
``(7) Limited liability company.--The term `limited
liability company' means a business entity that is organized
and operating in accordance with a State limited liability
company law approved by the Secretary.
``(8) Member.--The term `member' means, with respect to a
rural business investment company that is a limited liability
company, a holder of an ownership interest, or a person
otherwise admitted to membership in the limited liability
company.
``(9) Operational assistance.--The term `operational
assistance' means management, marketing, and other technical
assistance that assists a rural business concern with business
development.
``(10) Participation agreement.--The term `participation
agreement' means an agreement, between the Secretary and a
rural business investment company granted final approval under
subsection (d)(5), that requires the rural business investment
company to make investments in smaller enterprises in rural
areas.
``(11) Private capital.--
``(A) In general.--The term `private capital' means
the total of--
``(i)(I) the paid-in capital and paid-in
surplus of a corporate rural business
investment company;
``(II) the contributed capital of the
partners of a partnership rural business
investment company; or
``(III) the equity investment of the
members of a limited liability company rural
business investment company; and
``(ii) unfunded binding commitments from
investors that meet criteria established by the
Secretary to contribute capital to the rural
business investment company, except that--
``(I) unfunded commitments may be
counted as private capital for purposes
of approval by the Secretary of any
request for leverage; but
``(II) leverage shall not be funded
based on the commitments.
``(B) Exclusions.--The term `private capital' does
not include--
``(i) any funds borrowed by a rural
business investment company from any source;
``(ii) any funds obtained through the
issuance of leverage; or
``(iii) any funds obtained directly or
indirectly from the Federal Government or any
State (including by a political subdivision,
agency, or instrumentality of the Federal
Government or a State), except for--
``(I) funds obtained from the
business revenues (excluding any
governmental appropriation) of any
Federally chartered or government-
sponsored enterprise established prior
to the date of enactment of the
Agriculture Reform, Food, and Jobs Act
of 2013;
``(II) funds invested by an
employee welfare benefit plan or
pension plan; and
``(III) any qualified nonprivate
funds (if the investors of the
qualified nonprivate funds do not
control, directly or indirectly, the
management, board of directors, general
partners, or members of the rural
business investment company).
``(12) Qualified nonprivate funds.--The term `qualified
nonprivate funds' means any--
``(A) funds directly or indirectly invested in any
applicant or rural business investment company on or
before the date of enactment of the Agriculture Reform,
Food, and Jobs Act of 2013 by any Federal agency, other
than the Department, under a provision of law
explicitly mandating the inclusion of those funds in
the definition of the term `private capital'; and
``(B) funds invested in any applicant or rural
business investment company by 1 or more entities of
any State (including by a political subdivision,
agency, or instrumentality of the State and including
any guarantee extended by those entities) in an
aggregate amount that does not exceed 33 percent of the
private capital of the applicant or rural business
investment company.
``(13) Rural business concern.--The term `rural business
concern' means--
``(A) a public, private, or cooperative for-profit
or nonprofit organization;
``(B) a for-profit or nonprofit business controlled
by an Indian tribe; or
``(C) any other person or entity that primarily
operates in a rural area, as determined by the
Secretary.
``(14) Rural business investment company.--The term `rural
business investment company' means a company that--
``(A) has been granted final approval by the
Secretary under subsection (d)(5); and
``(B) has entered into a participation agreement
with the Secretary.
``(15) Smaller enterprise.--
``(A) In general.--The term `smaller enterprise'
means any rural business concern that, together with
its affiliates--
``(i) has--
``(I) a net financial worth of not
more than $6,000,000, as of the date on
which assistance is provided under this
section to the rural business concern;
and
``(II) except as provided in
subparagraph (B), an average net income
for the 2-year period preceding the
date on which assistance is provided
under this section to the rural
business concern, of not more than
$2,000,000, after Federal income taxes
(excluding any carryover losses); or
``(ii) satisfies the standard industrial
classification size standards established by
the Administrator of the Small Business
Administration for the industry in which the
rural business concern is primarily engaged.
``(B) Exception.--For purposes of subparagraph
(A)(i)(II), if the rural business concern is not
required by law to pay Federal income taxes at the
enterprise level, but is required to pass income
through to the shareholders, partners, beneficiaries,
or other equitable owners of the business concern, the
net income of the business concern shall be determined
by allowing a deduction in an amount equal to the total
of--
``(i) if the rural business concern is not
required by law to pay State (and local, if
any) income taxes at the enterprise level, the
product obtained by multiplying--
``(I) the net income (determined
without regard to this subparagraph);
by
``(II) the marginal State income
tax rate (or by the combined State and
local income tax rates, as applicable)
that would have applied if the business
concern were a corporation; and
``(ii) the product obtained by
multiplying--
``(I) the net income (so
determined) less any deduction for
State (and local) income taxes
calculated under clause (i); by
``(II) the marginal Federal income
tax rate that would have applied if the
rural business concern were a
corporation.
``(b) Purposes.--The purposes of the Rural Business Investment
Program established under this section are--
``(1) to promote economic development and the creation of
wealth and job opportunities in rural areas and among
individuals living in those areas by encouraging developmental
venture capital investments in smaller enterprises primarily
located in rural areas; and
``(2) to establish a developmental venture capital program,
with the mission of addressing the unmet equity investment
needs of small enterprises located in rural areas, by
authorizing the Secretary--
``(A) to enter into participation agreements with
rural business investment companies;
``(B) to guarantee debentures of rural business
investment companies to enable each rural business
investment company to make developmental venture
capital investments in smaller enterprises in rural
areas; and
``(C) to make grants to rural business investment
companies, and to other entities, for the purpose of
providing operational assistance to smaller enterprises
financed, or expected to be financed, by rural business
investment companies.
``(c) Establishment.--In accordance with this subtitle, the
Secretary shall establish a Rural Business Investment Program, under
which the Secretary may--
``(1) enter into participation agreements with companies
granted final approval under subsection (d)(5) for the purposes
described in subsection (b);
``(2) guarantee the debentures issued by rural business
investment companies as provided in subsection (e); and
``(3) make grants to rural business investment companies,
and to other entities, under subsection (h).
``(d) Selection of Rural Business Investment Companies.--
``(1) Eligibility.--A company shall be eligible to apply to
participate, as a rural business investment company, in the
program established under this section if--
``(A) the company is a newly formed for-profit
entity or a newly formed for-profit subsidiary of such
an entity;
``(B) the company has a management team with
experience in community development financing or
relevant venture capital financing; and
``(C) the company will invest in enterprises that
will create wealth and job opportunities in rural
areas, with an emphasis on smaller enterprises.
``(2) Application.--To participate, as a rural business
investment company, in the program established under this
section, a company meeting the eligibility requirements of
paragraph (1) shall submit an application to the Secretary that
includes--
``(A) a business plan describing how the company
intends to make successful developmental venture
capital investments in identified rural areas;
``(B) information regarding the community
development finance or relevant venture capital
qualifications and general reputation of the management
of the company;
``(C) a description of how the company intends to
work with community-based organizations and local
entities (including local economic development
companies, local lenders, and local investors) and to
seek to address the unmet equity capital needs of the
communities served;
``(D) a proposal describing how the company intends
to use the grant funds provided under this section to
provide operational assistance to smaller enterprises
financed by the company, including information
regarding whether the company intends to use licensed
professionals, as necessary, on the staff of the
company or from an outside entity;
``(E) with respect to binding commitments to be
made to the company under this section, an estimate of
the ratio of cash to in-kind contributions;
``(F) a description of the criteria to be used to
evaluate whether and to what extent the company meets
the purposes of the program established under this
section;
``(G) information regarding the management and
financial strength of any parent firm, affiliated firm,
or any other firm essential to the success of the
business plan of the company; and
``(H) such other information as the Secretary may
require.
``(3) Status.--Not later than 90 days after the initial
receipt by the Secretary of an application under this
subsection, the Secretary shall provide to the applicant a
written report describing the status of the application and any
requirements remaining for completion of the application.
``(4) Matters considered.--In reviewing and processing any
application under this subsection, the Secretary shall--
``(A) determine whether--
``(i) the applicant meets the requirements
of paragraph (5); and
``(ii) the management of the applicant is
qualified and has the knowledge, experience,
and capability necessary to comply with this
section;
``(B) take into consideration--
``(i) the need for and availability of
financing for rural business concerns in the
geographic area in which the applicant is to
commence business;
``(ii) the general business reputation of
the owners and management of the applicant; and
``(iii) the probability of successful
operations of the applicant, including adequate
profitability and financial soundness; and
``(C) not take into consideration any projected
shortage or unavailability of grant funds or leverage.
``(5) Approval; license.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary may approve an
applicant to operate as a rural business investment
company under this subtitle and license the applicant
as a rural business investment company, if--
``(i) the Secretary determines that the
application satisfies the requirements of
paragraph (2);
``(ii) the area in which the rural business
investment company is to conduct its
operations, and establishment of branch offices
or agencies (if authorized by the articles),
are approved by the Secretary; and
``(iii) the applicant enters into a
participation agreement with the Secretary.
``(B) Capital requirements.--
``(i) In general.--Notwithstanding any
other provision of this section, the Secretary
may approve an applicant to operate as a rural
business investment company under this section
and designate the applicant as a rural business
investment company, if the Secretary determines
that the applicant--
``(I) has private capital as
determined by the Secretary;
``(II) would otherwise be approved
under this section, except that the
applicant does not satisfy the
requirements of subsection (i)(3); and
``(III) has a viable business plan
that--
``(aa) reasonably projects
profitable operations; and
``(bb) has a reasonable
timetable for achieving a level
of private capital that
satisfies the requirements of
subsection (i)(3).
``(ii) Leverage.--An applicant approved
under clause (i) shall not be eligible to
receive leverage under this section until the
applicant satisfies the requirements of section
3602(i)(3).
``(iii) Grants.--An applicant approved
under clause (i) shall be eligible for grants
under subsection (h) in proportion to the
private capital of the applicant, as determined
by the Secretary.
``(e) Debentures.--
``(1) In general.--The Secretary may guarantee the timely
payment of principal and interest, as scheduled, on debentures
issued by any rural business investment company.
``(2) Terms and conditions.--The Secretary may make
guarantees under this subsection on such terms and conditions
as the Secretary considers appropriate, except that the term of
any debenture guaranteed under this section shall not exceed 15
years.
``(3) Full faith and credit of the united states.--Section
3901 shall apply to any guarantee under this subsection.
``(4) Maximum guarantee.--Under this subsection, the
Secretary may--
``(A) guarantee the debentures issued by a rural
business investment company only to the extent that the
total face amount of outstanding guaranteed debentures
of the rural business investment company does not
exceed the lesser of--
``(i) 300 percent of the private capital of
the rural business investment company; or
``(ii) $105,000,000; and
``(B) provide for the use of discounted debentures.
``(f) Issuance and Guarantee of Trust Certificates.--
``(1) Issuance.--The Secretary may issue trust certificates
representing ownership of all or a fractional part of
debentures issued by a rural business investment company and
guaranteed by the Secretary under this section, if the
certificates are based on and backed by a trust or pool
approved by the Secretary and composed solely of guaranteed
debentures.
``(2) Guarantee.--
``(A) In general.--The Secretary may, under such
terms and conditions as the Secretary considers
appropriate, guarantee the timely payment of the
principal of and interest on trust certificates issued
by the Secretary or agents of the Secretary for
purposes of this subsection.
``(B) Limitation.--Each guarantee under this
paragraph shall be limited to the extent of principal
and interest on the guaranteed debentures that compose
the trust or pool.
``(C) Prepayment or default.--
``(i) In general.--
``(I) Authority to prepay.--A
debenture may be prepaid at any time
without penalty.
``(II) Reduction of guarantee.--
Subject to subclause (I), if a
debenture in a trust or pool is
prepaid, or in the event of default of
such a debenture, the guarantee of
timely payment of principal and
interest on the trust certificates
shall be reduced in proportion to the
amount of principal and interest the
prepaid debenture represents in the
trust or pool.
``(ii) Interest.--Interest on prepaid or
defaulted debentures shall accrue and be
guaranteed by the Secretary only through the
date of payment of the guarantee.
``(iii) Redemption.--At any time during the
term of a trust certificate, the trust
certificate may be called for redemption due to
prepayment or default of all debentures.
``(3) Full faith and credit of the united states.--Section
3901 shall apply to any guarantee of a trust certificate issued
by the Secretary under this section.
``(4) Subrogation and ownership rights.--
``(A) Subrogation.--If the Secretary pays a claim
under a guarantee issued under this section, the claim
shall be subrogated fully to the rights satisfied by
the payment.
``(B) Ownership rights.--No Federal, State, or
local law shall preclude or limit the exercise by the
Secretary of the ownership rights of the Secretary in a
debenture residing in a trust or pool against which 1
or more trust certificates are issued under this
subsection.
``(5) Management and administration.--
``(A) Registration.--The Secretary shall provide
for a central registration of all trust certificates
issued under this subsection.
``(B) Creation of pools.--The Secretary may--
``(i) maintain such commercial bank
accounts or investments in obligations of the
United States as may be necessary to facilitate
the creation of trusts or pools backed by
debentures guaranteed under this subtitle; and
``(ii) issue trust certificates to
facilitate the creation of those trusts or
pools.
``(C) Fidelity bond or insurance requirement.--Any
agent performing functions on behalf of the Secretary
under this paragraph shall provide a fidelity bond or
insurance in such amount as the Secretary considers to
be necessary to fully protect the interests of the
United States.
``(D) Regulation of brokers and dealers.--The
Secretary may regulate brokers and dealers in trust
certificates issued under this subsection.
``(E) Electronic registration.--Nothing in this
paragraph prohibits the use of a book-entry or other
electronic form of registration for trust certificates
issued under this subsection.
``(g) Fees.--
``(1) In general.--The Secretary may charge a fee that does
not exceed $500 with respect to any guarantee or grant issued
under this section.
``(2) Trust certificate.--Notwithstanding paragraph (1),
the Secretary shall not collect a fee for any guarantee of a
trust certificate under subsection (f), except that any agent
of the Secretary may collect a fee that does not exceed $500
for the functions described in subsection (f)(5)(B).
``(3) License.--
``(A) In general.--Except as provided in
subparagraph (C), the Secretary may prescribe fees to
be paid by each applicant for a license to operate as a
rural business investment company under this section.
``(B) Use of amounts.--Fees collected under this
paragraph--
``(i) shall be deposited in the account for
salaries and expenses of the Secretary;
``(ii) are authorized to be appropriated
solely to cover the costs of licensing
examinations; and
``(iii) shall--
``(I) in the case of a license
issued before the date of enactment of
the Agriculture Reform, Food, and Jobs
Act of 2013, not exceed $500 for any
fee collected under this paragraph; and
``(II) in the case of a license
issued after the date of enactment of
the Agriculture Reform, Food, and Jobs
Act of 2013, be a rate as determined by
the Secretary.
``(C) Prohibition on collection of certain fees.--
In the case of a license described in subparagraph (A)
that was approved before July 1, 2007, the Secretary
shall not collect any fees due on or after the date of
enactment of the Agriculture Reform, Food, and Jobs Act
of 2013.
``(h) Operational Assistance Grants.--
``(1) In general.--In accordance with this subsection, the
Secretary may make grants to rural business investment
companies and to other entities, as authorized by this section,
to provide operational assistance to smaller enterprises
financed, or expected to be financed, by the entities.
``(2) Terms.--Grants made under this subsection shall be
made over a multiyear period (not to exceed 10 years) under
such terms as the Secretary may require.
``(3) Use of funds.--The proceeds of a grant made under
this subsection may be used by the rural business investment
company receiving the grant only to provide operational
assistance in connection with an equity or prospective equity
investment in a business located in a rural area.
``(4) Submission of plans.--A rural business investment
company shall be eligible for a grant under this subsection
only if the rural business investment company submits to the
Secretary, in such form and manner as the Secretary may
require, a plan for use of the grant.
``(5) Grant amount.--
``(A) Rural business investment companies.--The
amount of a grant made under this subsection to a rural
business investment company shall be equal to the
lesser of--
``(i) 10 percent of the private capital
raised by the rural business investment
company; or
``(ii) $1,000,000.
``(6) Other entities.--The amount of a grant made under
this subsection to any entity other than a rural business
investment company shall be equal to the resources (in cash or
inkind) raised by the entity in accordance with the
requirements applicable to rural business investment companies
under this section.
``(i) Rural Business Investment Companies.--
``(1) Organization.--For purposes of this subsection, a
rural business investment company shall--
``(A) be an incorporated body, a limited liability
company, or a limited partnership organized and
chartered or otherwise existing under State law solely
for the purpose of performing the functions and
conducting the activities authorized by this section;
and
``(B)(i) if incorporated, have succession for a
period of not less than 30 years unless earlier
dissolved by the shareholders of the rural business
investment company; and
``(ii) if a limited partnership or a limited
liability company, have succession for a period of not
less than 10 years; and
``(iii) possess the powers reasonably necessary to
perform the functions and conduct the activities.
``(2) Articles.--The articles of any rural business
investment company--
``(A) shall specify in general terms--
``(i) the purposes for which the rural
business investment company is formed;
``(ii) the name of the rural business
investment company;
``(iii) the 1 or more areas in which the
operations of the rural business investment
company are to be carried out;
``(iv) the place where the principal office
of the rural business investment company is to
be located; and
``(v) the amount and classes of the shares
of capital stock of the rural business
investment company;
``(B) may contain any other provisions consistent
with this section that the rural business investment
company may determine appropriate to adopt for the
regulation of the business of the rural business
investment company and the conduct of the affairs of
the rural business investment company; and
``(C) shall be subject to the approval of the
Secretary.
``(3) Capital requirements.--
``(A) In general.--Each rural business investment
company shall be required to meet the capital
requirements as provided by the Secretary.
``(B) Time frame.--Each rural business investment
company shall have a period of 2 years to meet the
capital requirements of this paragraph.
``(C) Adequacy.--In addition to the requirements of
subparagraph (A), the Secretary shall--
``(i) determine whether the private capital
of each rural business investment company is
adequate to ensure a reasonable prospect that
the rural business investment company will be
operated soundly and profitably, and managed
actively and prudently in accordance with the
articles of the rural business investment
company;
``(ii) determine that the rural business
investment company will be able to comply with
the requirements of this section;
``(iii) require that at least 75 percent of
the capital of each rural business investment
company is invested in rural business concerns;
``(iv) ensure that the rural business
investment company is designed primarily to
meet equity capital needs of the businesses in
which the rural business investment company
invests and not to compete with traditional
small business financing by commercial lenders;
and
``(v) require that the rural business
investment company makes short-term non-equity
investments of less than 5 years only to the
extent necessary to preserve an existing
investment.
``(4) Diversification of ownership.--The Secretary shall
ensure that the management of each rural business investment
company licensed after the date of enactment of the Agriculture
Reform, Food, and Jobs Act of 2013 is sufficiently diversified
from and unaffiliated with the ownership of the rural business
investment company so as to ensure independence and objectivity
in the financial management and oversight of the investments
and operations of the rural business investment company.
``(j) Financial Institution Investments.--
``(1) In general.--Except as otherwise provided in this
subsection and notwithstanding any other provision of law, the
following banks, associations, and institutions are eligible
both to establish and invest in any rural business investment
company or in any entity established to invest solely in rural
business investment companies:
``(A) Any bank or savings association the deposits
of which are insured under the Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.), including an
investment pool created entirely by such bank or
savings association.
``(B) Any Farm Credit System institution described
in subsection 1.2(a) of the Farm Credit Act of 1971 (12
U.S.C. 2002(a)).
``(2) Limitation.--No bank, association, or institution
described in paragraph (1) may make investments described in
paragraph (1) that are greater than 5 percent of the capital
and surplus of the bank, association, or institution.
``(3) Limitation on rural business investment companies
controlled by farm credit system institutions.--If a Farm
Credit System institution described in section 1.2(a) of the
Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 25
percent of the shares of a rural business investment company,
either alone or in conjunction with other System institutions
(or affiliates), the rural business investment company shall
not provide equity investments in, or provide other financial
assistance to, entities that are not otherwise eligible to
receive financing from the Farm Credit System under that Act
(12 U.S.C. 2001 et seq.).
``(k) Examinations.--
``(1) In general.--Each rural business investment company
that participates in the program established under this section
shall be subject to examinations made at the direction of the
Secretary in accordance with this subsection.
``(2) Assistance of private sector entities.--An
examination under this subsection may be conducted with the
assistance of a private sector entity that has the
qualifications and the expertise necessary to conduct such an
examination.
``(3) Costs.--
``(A) In general.--The Secretary may assess the
cost of an examination under this section, including
compensation of the examiners, against the rural
business investment company examined.
``(B) Payment.--Any rural business investment
company against which the Secretary assesses costs
under this subparagraph shall pay the costs.
``(4) Deposit of funds.--Funds collected under this
subsection shall--
``(A) be deposited in the account that incurred the
costs for carrying out this subsection;
``(B) be made available to the Secretary to carry
out this subsection, without further appropriation; and
``(C) remain available until expended.
``(l) Reporting Requirements.--
``(1) Rural business investment companies.--Each entity
that participates in a program established under this section
shall provide to the Secretary such information as the
Secretary may require, including--
``(A) information relating to the measurement
criteria that the entity proposed in the program
application of the rural business investment company;
and
``(B) in each case in which the entity under this
section makes an investment in, or a loan or grant to,
a business that is not located in a rural area, a
report on the number and percentage of employees of the
business who reside in those areas.
``(2) Public reports.--
``(A) In general.--The Secretary shall prepare and
make available to the public an annual report on the
programs established under this section, including
detailed information on--
``(i) the number of rural business
investment companies licensed by the Secretary
during the previous fiscal year;
``(ii) the aggregate amount of leverage
that rural business investment companies have
received from the Federal Government during the
previous fiscal year;
``(iii) the aggregate number of each type
of leveraged instruments used by rural business
investment companies during the previous fiscal
year and how each number compares to previous
fiscal years;
``(iv) the number of rural business
investment company licenses surrendered and the
number of rural business investment companies
placed in liquidation during the previous
fiscal year, identifying the amount of leverage
each rural business investment company has
received from the Federal Government and the
type of leverage instruments each rural
business investment company has used;
``(v) the amount of losses sustained by the
Federal Government as a result of operations
under this section during the previous fiscal
year and an estimate of the total losses that
the Federal Government can reasonably expect to
incur as a result of the operations during the
current fiscal year;
``(vi) actions taken by the Secretary to
maximize recoupment of funds of the Federal
Government expended to implement and administer
the Rural Business Investment Program under
this section during the previous fiscal year
and to ensure compliance with the requirements
of this section (including regulations);
``(vii) the amount of Federal Government
leverage that each licensee received in the
previous fiscal year and the types of leverage
instruments each licensee used;
``(viii) for each type of financing
instrument, the sizes, types of geographic
locations, and other characteristics of the
small business investment companies using the
instrument during the previous fiscal year,
including the extent to which the investment
companies have used the leverage from each
instrument to make loans or equity investments
in rural areas; and
``(ix) the actions of the Secretary to
carry out this section
``(B) Prohibition.--In compiling the report
required under subparagraph (A), the Secretary may
not--
``(i) compile the report in a manner that
permits identification of any particular type
of investment by an individual rural business
investment company or small business concern in
which a rural business investment company
invests; or
``(ii) release any information that is
prohibited under section 1905 of title 18,
United States Code.
``(m) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for the period of
fiscal years 2008 through 2018.''.
``CHAPTER 3--GENERAL RURAL DEVELOPMENT PROVISIONS
``SEC. 3701. GENERAL PROVISIONS FOR LOANS AND GRANTS.
``(a) Period for Repayment.--Unless otherwise specifically provided
for in this subtitle, the period for repayment of a loan under this
subtitle shall not exceed 40 years.
``(b) Interest Rates.--
``(1) In general.--Except as otherwise provided in this
title, the interest rate on a loan under this subtitle shall be
determined by the Secretary at a rate--
``(A) not to exceed a sum obtained by adding--
``(i) the current average market yield on
outstanding marketable obligations of the
United States with remaining periods to
maturity comparable to the average maturity of
the loan; and
``(ii) an amount not to exceed 1 percent,
as determined by the Secretary; and
``(B) adjusted to the nearest \1/8\ of 1 percent.
``(2) Water and waste facility loans and community
facilities loans.--
``(A) In general.--Notwithstanding any provision of
State law limiting the rate or amount of interest that
may be charged, taken, received, or reserved, except as
provided in subparagraph (C) and paragraph (4), the
interest rate on a loan (other than a guaranteed loan)
to a public body or nonprofit association (including an
Indian tribe) for a water or waste disposal facility or
essential community facility shall be determined by the
Secretary at a rate not to exceed--
``(i) the current market yield on
outstanding municipal obligations with
remaining periods to maturity comparable to the
average maturity for the loan, and adjusted to
the nearest \1/8\ of 1 percent;
``(ii) 5 percent per year for a loan that
is for the upgrading of a facility or
construction of a new facility as required to
meet applicable health or sanitary standards
in--
``(I) an area in which the median
family income of the persons to be
served by the facility is below the
poverty line (as defined in section 673
of the Community Services Block Grant
Act (42 U.S.C. 9902)); and
``(II) any areas the Secretary may
designate in which a significant
percentage of the persons to be served
by the facilities are low-income
persons, as determined by the
Secretary; and
``(iii) 7 percent per year for a loan for a
facility that does not qualify for the 5
percent per year interest rate prescribed in
clause (ii) but that is located in an area in a
State in which the median household income of
the persons to be served by the facility does
not exceed 100 percent of the statewide
nonmetropolitan median household income for the
State.
``(B) Health care and related facilities.--
Notwithstanding subparagraph (A), the Secretary shall
establish a rate for a loan for a health care or
related facility that is--
``(i) based solely on the income of the
area to be served; and
``(ii) otherwise consistent with
subparagraph (A).
``(C) Interest rates for water and waste disposal
facilities loans.--
``(i) In general.--Except as provided in
clause (ii) and notwithstanding subparagraph
(A), in the case of a direct loan for a water
or waste disposal facility--
``(I) in the case of a loan that
would be subject to the 5 percent
interest rate limitation under
subparagraph (A), the Secretary shall
establish the interest rate at a rate
that is equal to 60 percent of the
current market yield for outstanding
municipal obligations with remaining
periods to maturity comparable to the
average maturity of the loan, adjusted
to the nearest \1/8\ of 1 percent; and
``(II) in the case of a loan that
would be subject to the 7 percent
limitation under subparagraph (A), the
Secretary shall establish the interest
rate at a rate that is equal to 80
percent of the current market yield for
outstanding municipal obligations with
remaining periods to maturity
comparable to the average maturity of
the loan, adjusted to the nearest \1/8\
of 1 percent.
``(ii) Exception.--Clause (i) does not
apply to a loan for a specific project that is
the subject of a loan that has been approved,
but not closed, as of the date of enactment of
the Agriculture Reform, Food, and Jobs Act of
2013.
``(3) Interest rates on business and other loans.--
``(A) In general.--Except as provided in paragraph
(4), the interest rates on loans under sections
3501(a)(1) (other than guaranteed loans and loans as
described in paragraph (2)(A)) shall be as determined
by the Secretary in accordance with subparagraph (B).
``(B) Minimum rate.--The interest rates described
in subparagraph (A) shall be not less than the sum
obtained by adding--
``(i) such rates as determined by the
Secretary of the Treasury taking into
consideration the current average market yield
on outstanding marketable obligations of the
United States with remaining periods to
maturity comparable to the average maturities
of such loans, adjusted in the judgment of the
Secretary of the Treasury to provide for rates
comparable to the rates prevailing in the
private market for similar loans and
considering the insurance by the Secretary of
the loans; and
``(ii) an additional charge, prescribed by
the Secretary, to cover the losses of the
Secretary and cost of administration, which
shall be deposited in the Rural Development
Insurance Fund, and further adjusted to the
nearest \1/8\ of 1 percent.
``(4) Interest rates adjustments.--
``(A) Adjustments.--Notwithstanding any other
provision of this subsection, in the case of loans
(other than guaranteed loans) made or guaranteed under
the authorities of this title specified in subparagraph
(C) for activities that involve the use of prime
farmland, the interest rates shall be the interest
rates otherwise applicable under this section increased
by 2 percent per year.
``(B) Prime farmland.--
``(i) In general.--Wherever practicable,
construction by a State, municipality, or other
political subdivision of local government that
is supported by loans described in subparagraph
(A) shall be placed on land that is not prime
farmland, in order to preserve the maximum
practicable quantity of prime farmlands for
production of food and fiber.
``(ii) Increased rate.--In any case in
which other options exist for the siting of
construction described in clause (i) and the
governmental authority still desires to carry
out the construction on prime farmland, the 2-
percent interest rate increase provided by this
paragraph shall apply, but that increased
interest rate shall not apply where such other
options do not exist.
``(C) Applicable authorities.--The authorities
referred to in subparagraph (A) are--
``(i) the provisions of section 3502(a)
relating to loans for recreational developments
and essential community facilities;
``(ii) section 3601(e)(2)(A); and
``(iii) section 3601(c).
``(c) Payment of Charges.--A borrower of a loan made or guaranteed
under this subtitle shall pay such fees and other charges as the
Secretary may require, and prepay to the Secretary such taxes and
insurance as the Secretary may require, on such terms and conditions as
the Secretary may prescribe.
``(d) Security.--
``(1) In general.--The Secretary shall take as security for
an obligation entered into in connection with a loan made under
this subtitle such security as the Secretary may require.
``(2) Liens to united states.--An instrument for security
under paragraph (1) may constitute a lien running to the United
States notwithstanding the fact that the note for the security
may be held by a lender other than the United States.
``(3) Multiple loans.--A borrower may use the same
collateral to secure 2 or more loans made or guaranteed under
this subtitle, except that the outstanding amount of the loans
may not exceed the total value of the collateral.
``(e) Legal Counsel for Small Loans.--In the case of a loan of less
than $500,000 made or guaranteed under section 3501 that is evidenced
by a note or mortgage (as distinguished from a bond issue), the
borrower shall not be required to appoint bond counsel to review the
legal validity of the loan if the Secretary has available legal counsel
to perform the review.
``SEC. 3702. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.
``(a) Priority.--In the case of any rural development program
authorized by this subtitle, the Secretary may give priority to
applications that are otherwise eligible and support strategic
community and economic development plans on a multijurisdictional
basis, as approved by the Secretary.
``(b) Evaluation.--In evaluating strategic applications, the
Secretary shall give a higher priority to strategic applications for a
plan described in subsection (a) that demonstrate--
``(1) the plan was developed through the collaboration of
multiple stakeholders in the service area of the plan,
including the participation of combinations of stakeholders
such as State, local, and tribal governments, nonprofit
institutions, institutions of higher education, and private
entities;
``(2) an understanding of the applicable regional resources
that could support the plan, including natural resources, human
resources, infrastructure, and financial resources;
``(3) investment from other Federal agencies;
``(4) investment from philanthropic organizations; and
``(5) clear objectives for the plan and the ability to
establish measurable performance measures and to track progress
toward meeting the objectives.
``(c) Funds.--
``(1) In general.--Subject to paragraph (3), the Secretary
may reserve for projects that support multijurisdictional
strategic community and economic development plans described in
subsection (a) an amount that does not exceed--
``(A) 20 percent of the funds made available for a
fiscal year for a functional category described in
paragraph (2); and
``(B) 15 percent of the total funds available for
all functional categories.
``(2) Functional categories.--The function categories
described in this subsection are the following:
``(A) Rural community facilities.--The rural
community development category consists of all amounts
made available for community facility grants and direct
and guaranteed loans under section 3502.
``(B) Rural utilities.--The rural utilities
category consists of all amounts made available for--
``(i) water or waste disposal grants or
direct or guaranteed loans under section
3501(a);
``(ii) emergency community water assistance
grants under section 3501(e)(2);
``(iii) solid waste management grants under
section 3501(e)(4); or
``(iv) rural water or wastewater technical
assistance and training grants under section
3501(e)(5).
``(C) Rural business and cooperative development.--
The rural business and cooperative development category
consists of all amounts made available for--
``(i) rural business opportunity grants,
rural business enterprise grants, or rural
educational network grants under section
3601(a); or
``(ii) business and industry direct and
guaranteed loans under section 3601(e).
``(3) Limitation.--The reservation of funds described in
paragraph (2) may only extend through June 30 of the fiscal
year in which the funds were first made available.
``SEC. 3703. GUARANTEED RURAL DEVELOPMENT LOANS.
``(a) In General.--The Secretary may provide financial assistance
to a borrower for a purpose provided in this subtitle by guaranteeing a
loan made by any Federal or State chartered bank, savings and loan
association, cooperative lending agency, or other legally organized
lending agency.
``(b) Interest Rate.--The interest rate payable by a borrower on
the portion of a guaranteed loan that is sold by a lender to the
secondary market under this subtitle may be lower than the interest
rate charged on the portion retained by the lender.
``(c) Maximum Guarantee of 90 Percent.--Except as provided in
subsections (d) and (e), a loan guarantee under this subtitle shall be
for not more than 90 percent of the principal and interest due on the
loan.
``(d) Refinanced Loans Guaranteed at 95 Percent.--The Secretary
shall guarantee 95 percent of--
``(1) in the case of a loan that solely refinances a direct
loan made under this subtitle, the principal and interest due
on the loan on the date of the refinancing; or
``(2) in the case of a loan that is used for multiple
purposes, the portion of the loan that refinances the principal
and interest due on a direct loan made under this subtitle that
is outstanding on the date on which the loan is guaranteed.
``(e) Risk of Loss.--
``(1) In general.--Subject to subsection (b), the Secretary
may not make a loan under section 3501 or 3601 unless the
Secretary determines that no other lender is willing to make
the loan and assume 10 percent of the potential loss to be
sustained from the loan.
``(2) Exception for nonprofit groups.--Paragraph (1) shall
not apply to a public body or nonprofit association, including
an Indian tribe.
``SEC. 3704. RURAL DEVELOPMENT INSURANCE FUND.
``(a) Definition of Rural Development Loan.--In this section, the
term `rural development loan' means a loan provided for by section 3501
or 3601.
``(b) Establishment.--There is established in the Treasury of the
United States a fund to be known as the `Rural Development Insurance
Fund' that shall be used by the Secretary to discharge the obligations
of the Secretary under contracts making or guaranteeing rural
development loans.
``SEC. 3705. RURAL ECONOMIC AREA PARTNERSHIP ZONES.
``(a) In General.--The Secretary may designate additional areas as
rural economic area partnership zones to be assisted under this
chapter--
``(1) through an open, competitive process; and
``(2) with priority given to rural areas--
``(A) with excessive unemployment or
underemployment, a high percentage of low-income
residents, or high rates of outmigration, as determined
by the Secretary; and
``(B) that the Secretary determines have a
substantial need for assistance.
``(b) Requirements.--The Secretary shall carry out those rural
economic area partnership zones administratively in effect on the date
of enactment of the Agriculture Reform, Food, and Jobs Act of 2013 in
accordance with the terms and conditions contained in the memoranda of
agreement entered into by the Secretary for the rural economic area
partnership zones.
``SEC. 3706. STREAMLINING APPLICATIONS AND IMPROVING ACCESSIBILITY OF
RURAL DEVELOPMENT PROGRAMS.
``The Secretary shall expedite the process of creating user-
friendly and accessible application forms and procedures prioritizing
programs and applications at the individual applicant level with an
emphasis on utilizing current technology including online applications
and submission processes.
``SEC. 3707. STATE RURAL DEVELOPMENT PARTNERSHIP.
``(a) Definitions.--In this section:
``(1) Agency with rural responsibilities.--The term `agency
with rural responsibilities' means any executive agency (as
defined in section 105 of title 5, United States Code) that
implements a Federal law, or administers a program, targeted at
or having a significant impact on rural areas.
``(2) Partnership.--The term `Partnership' means the State
Rural Development Partnership continued by subsection (b).
``(3) State rural development council.--The term `State
rural development council' means a State rural development
council that meets the requirements of subsection (c).
``(b) Partnership.--
``(1) In general.--The Secretary shall support the State
Rural Development Partnership comprised of State rural
development councils.
``(2) Purposes.--The purposes of the Partnership are to
empower and build the capacity of States, regions, and rural
communities to design flexible and innovative responses to
their rural development needs in a manner that maximizes
collaborative public- and private-sector cooperation and
minimizes regulatory redundancy.
``(3) Coordinating panel.--A panel consisting of
representatives of State rural development councils shall be
established--
``(A) to lead and coordinate the strategic
operation and policies of the Partnership; and
``(B) to facilitate effective communication among
the members of the Partnership, including the sharing
of best practices.
``(4) Role of federal government.--The role of the Federal
Government in the Partnership may be that of a partner and
facilitator, with Federal agencies authorized--
``(A) to cooperate with States to implement the
Partnership;
``(B) to provide States with the technical and
administrative support necessary to plan and implement
tailored rural development strategies to meet local
needs;
``(C) to ensure that the head of each agency with
rural responsibilities directs appropriate field staff
to participate fully with the State rural development
council within the jurisdiction of the field staff; and
``(D) to enter into cooperative agreements with,
and to provide grants and other assistance to, State
rural development councils.
``(c) State Rural Development Councils.--
``(1) Establishment.--Notwithstanding chapter 63 of title
31, United States Code, each State may elect to participate in
the Partnership by entering into an agreement with the
Secretary to recognize a State rural development council.
``(2) Composition.--A State rural development council
shall--
``(A) be composed of representatives of Federal,
State, local, and tribal governments, nonprofit
organizations, regional organizations, the private
sector, and other entities committed to rural
advancement; and
``(B) have a nonpartisan and nondiscriminatory
membership that--
``(i) is broad and representative of the
economic, social, and political diversity of
the State; and
``(ii) shall be responsible for the
governance and operations of the State rural
development council.
``(3) Duties.--A State rural development council shall--
``(A) facilitate collaboration among Federal,
State, local, and tribal governments and the private
and nonprofit sectors in the planning and
implementation of programs and policies that have an
impact on rural areas of the State;
``(B) monitor, report, and comment on policies and
programs that address, or fail to address, the needs of
the rural areas of the State;
``(C) as part of the Partnership, facilitate the
development of strategies to reduce or eliminate
conflicting or duplicative administrative or regulatory
requirements of Federal, State, local, and tribal
governments; and
``(D)(i) provide to the Secretary an annual plan
with goals and performance measures; and
``(ii) submit to the Secretary an annual report on
the progress of the State rural development council in
meeting the goals and measures.
``(4) Federal participation in state rural development
councils.--
``(A) In general.--A State Director for Rural
Development of the Department of Agriculture, other
employees of the Department, and employees of other
Federal agencies with rural responsibilities shall
fully participate as voting members in the governance
and operations of State rural development councils
(including activities related to grants, contracts, and
other agreements in accordance with this section) on an
equal basis with other members of the State rural
development councils.
``(B) Conflicts.--Participation by a Federal
employee in a State rural development council in
accordance with this paragraph shall not constitute a
violation of section 205 or 208 of title 18, United
States Code.
``(d) Administrative Support of the Partnership.--
``(1) Detail of employees.--
``(A) In general.--In order to provide experience
in intergovernmental collaboration, the head of an
agency with rural responsibilities that elects to
participate in the Partnership may, and is encouraged
to, detail to the Secretary for the support of the
Partnership 1 or more employees of the agency with
rural responsibilities without reimbursement for a
period of up to 1 year.
``(B) Civil service status.--The detail shall be
without interruption or loss of civil service status or
privilege.
``(2) Additional support.--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.
``(3) Intermediaries.--The Secretary may enter into a
contract with a qualified intermediary under which the
intermediary shall be responsible for providing administrative
and technical assistance to a State rural development council,
including administering the financial assistance available to
the State rural development council.
``(e) Matching Requirements for State Rural Development Councils.--
``(1) In general.--Except as provided in paragraph (2), a
State rural development council shall provide matching funds,
or in-kind goods or services, to support the activities of the
State rural development council in an amount that is not less
than 33 percent of the amount of Federal funds received from a
Federal agency under subsection (f)(2).
``(2) Exceptions to matching requirement for certain
federal funds.--Paragraph (1) shall not apply to funds, grants,
funds provided under contracts or cooperative agreements,
gifts, contributions, or technical assistance received by a
State rural development council from a Federal agency that are
used--
``(A) to support 1 or more specific program or
project activities; or
``(B) to reimburse the State rural development
council for services provided to the Federal agency
providing the funds, grants, funds provided under
contracts or cooperative agreements, gifts,
contributions, or technical assistance.
``(3) Department's share.--The Secretary shall develop a
plan to decrease, over time, the share of the Department of
Agriculture of the cost of the core operations of State rural
development councils.
``(f) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2014 through 2018.
``(2) Federal agencies.--
``(A) In general.--Notwithstanding any other
provision of law limiting the ability of an agency,
along with other agencies, to provide funds to a State
rural development council in order to carry out the
purposes of this section, a Federal agency may make
grants, gifts, or contributions to, provide technical
assistance to, or enter into contracts or cooperative
agreements with, a State rural development council.
``(B) Assistance.--Federal agencies are encouraged
to use funds made available for programs that have an
impact on rural areas to provide assistance to, and
enter into contracts with, a State rural development
council, as described in subparagraph (A).
``(3) Contributions.--A State rural development council may
accept private contributions.
``(g) Termination.--The authority provided under this section shall
terminate on September 30, 2018.
``CHAPTER 4--DELTA REGIONAL AUTHORITY
``SEC. 3801. DEFINITIONS.
``In this chapter:
``(1) Authority.--The term `Authority' means the Delta
Regional Authority established by section 3802.
``(2) Federal grant program.--The term `Federal grant
program' means a Federal grant program to provide assistance
in--
``(A) acquiring or developing land;
``(B) constructing or equipping a highway, road,
bridge, or facility; or
``(C) carrying out other economic development
activities.
``(3) Region.--The term `region' means the Lower
Mississippi (as defined in section 4 of the Delta Development
Act (42 U.S.C. 3121 note; Public Law 100-460)).
``SEC. 3802. DELTA REGIONAL AUTHORITY.
``(a) Establishment.--
``(1) In general.--There is established the Delta Regional
Authority.
``(2) Composition.--The Authority shall be composed of--
``(A) a Federal member, to be appointed by the
President, with the advice and consent of the Senate;
and
``(B) the Governor (or a designee of the Governor)
of each State in the region that elects to participate
in the Authority.
``(3) Cochairpersons.--The Authority shall be headed by--
``(A) the Federal member, who shall serve as--
``(i) the Federal cochairperson; and
``(ii) a liaison between the Federal
Government and the Authority; and
``(B) a State cochairperson, who shall be--
``(i) a Governor of a participating State
in the region; and
``(ii) elected by the State members for a
term of not less than 1 year.
``(4) Alabama.--Notwithstanding any other provision of law,
the State of Alabama shall be a full member of the Authority
and shall be entitled to all rights and privileges that the
membership affords to all other participating States in the
Authority.
``(b) Alternate Members.--
``(1) State alternates.--The State member of a
participating State may have a single alternate, who shall be--
``(A) a resident of that State; and
``(B) appointed by the Governor of the State.
``(2) Alternate federal cochairperson.--The President shall
appoint an alternate Federal cochairperson.
``(3) Quorum.--A State alternate shall not be counted
toward the establishment of a quorum of the Authority in any
instance in which a quorum of the State members is required to
be present.
``(4) Delegation of power.--No power or responsibility of
the Authority specified in paragraphs (2) and (3) of subsection
(c), and no voting right of any Authority member, shall be
delegated to any person--
``(A) who is not an Authority member; or
``(B) who is not entitled to vote in Authority
meetings.
``(c) Voting.--
``(1) In general.--A decision by the Authority shall
require a majority vote of the Authority (not including any
member representing a State that is delinquent under subsection
(g)(2)(C)) to be effective.
``(2) Quorum.--A quorum of State members shall be required
to be present for the Authority to make any policy decision,
including--
``(A) a modification or revision of an Authority
policy decision;
``(B) approval of a State or regional development
plan; and
``(C) any allocation of funds among the States.
``(3) Project and grant proposals.--The approval of project
and grant proposals shall be--
``(A) a responsibility of the Authority; and
``(B) conducted in accordance with section 3809.
``(4) Voting by alternate members.--An alternate member
shall vote in the case of the absence, death, disability,
removal, or resignation of the Federal or State representative
for which the alternate member is an alternate.
``(d) Duties.--The Authority shall--
``(1) develop, on a continuing basis, comprehensive and
coordinated plans and programs to establish priorities and
approve grants for the economic development of the region,
giving due consideration to other Federal, State, and local
planning and development activities in the region;
``(2) review, and where appropriate amend, priorities in a
development plan for the region (including 5-year regional
outcome targets);
``(3) assess the needs and assets of the region based on
available research, demonstrations, investigations,
assessments, and evaluations of the region prepared by Federal,
State, and local agencies, universities, local development
districts, and other nonprofit groups;
``(4) formulate and recommend to the Governors and
legislatures of States that participate in the Authority forms
of interstate cooperation;
``(5) work with State and local agencies in developing
appropriate model legislation;
``(6)(A) enhance the capacity of, and provide support for,
local development districts in the region; or
``(B) if no local development district exists in an area in
a participating State in the region, foster the creation of a
local development district;
``(7) encourage private investment in industrial,
commercial, and other economic development projects in the
region; and
``(8) cooperate with and assist State governments with
economic development programs of participating States.
``(e) Administration.--In carrying out subsection (d), the
Authority may--
``(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Authority as the
Authority considers appropriate;
``(2) authorize, through the Federal or State cochairperson
or any other member of the Authority designated by the
Authority, the administration of oaths if the Authority
determines that testimony should be taken or evidence received
under oath;
``(3) request from any Federal, State, or local department
or agency such information as may be available to or procurable
by the department or agency that may be of use to the Authority
in carrying out duties of the Authority;
``(4) adopt, amend, and repeal bylaws, rules, and
regulations governing the conduct of Authority business and the
performance of Authority duties;
``(5) request the head of any Federal department or agency
to detail to the Authority such personnel as the Authority
requires to carry out duties of the Authority, each such detail
to be without loss of seniority, pay, or other employee status;
``(6) request the head of any State department or agency or
local government to detail to the Authority such personnel as
the Authority requires to carry out duties of the Authority,
each such detail to be without loss of seniority, pay, or other
employee status;
``(7) provide for coverage of Authority employees in a
suitable retirement and employee benefit system by--
``(A) making arrangements or entering into
contracts with any participating State government; or
``(B) otherwise providing retirement and other
employee benefit coverage;
``(8) accept, use, and dispose of gifts or donations of
services or real, personal, tangible, or intangible property;
``(9) enter into and perform such contracts, leases,
cooperative agreements, or other transactions as are necessary
to carry out Authority duties, including any contracts, leases,
or cooperative agreements with--
``(A) any department, agency, or instrumentality of
the United States;
``(B) any State (including a political subdivision,
agency, or instrumentality of the State); or
``(C) any person, firm, association, or
corporation; and
``(10) establish and maintain a central office and field
offices at such locations as the Authority may select.
``(f) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with the Authority; and
``(2) provide, on request of the Federal cochairperson,
appropriate assistance in carrying out this chapter, in
accordance with applicable Federal laws (including
regulations).
``(g) Administrative Expenses.--
``(1) In general.--Administrative expenses of the Authority
(except for the expenses of the Federal cochairperson,
including expenses of the alternate and staff of the Federal
cochairperson, which shall be paid solely by the Federal
Government) shall be paid--
``(A) by the Federal Government, in an amount equal
to 50 percent of the administrative expenses; and
``(B) by the States in the region participating in
the Authority, in an amount equal to 50 percent of the
administrative expenses.
``(2) State share.--
``(A) In general.--The share of administrative
expenses of the Authority to be paid by each State
shall be determined by the Authority.
``(B) No federal participation.--The Federal
cochairperson shall not participate or vote in any
decision under subparagraph (A).
``(C) Delinquent states.--If a State is delinquent
in payment of the State's share of administrative
expenses of the Authority under this subsection--
``(i) no assistance under this chapter
shall be furnished to the State (including
assistance to a political subdivision or a
resident of the State); and
``(ii) no member of the Authority from the
State shall participate or vote in any action
by the Authority.
``(h) Compensation.--
``(1) Federal cochairperson.--The Federal cochairperson
shall be compensated by the Federal Government at level III of
the Executive Schedule in subchapter II of chapter 53 of title
5, United States Code.
``(2) Alternate federal cochairperson.--The alternate
Federal cochairperson--
``(A) shall be compensated by the Federal
Government at level V of the Executive Schedule
described in paragraph (1); and
``(B) when not actively serving as an alternate for
the Federal cochairperson, shall perform such functions
and duties as are delegated by the Federal
cochairperson.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate each
member and alternate representing the State on the
Authority at the rate established by law of the State.
``(B) No additional compensation.--No State member
or alternate member shall receive any salary, or any
contribution to or supplementation of salary from any
source other than the State for services provided by
the member or alternate to the Authority.
``(4) Detailed employees.--
``(A) In general.--No person detailed to serve the
Authority under subsection (e)(6) shall receive any
salary or any contribution to or supplementation of
salary for services provided to the Authority from--
``(i) any source other than the State,
local, or intergovernmental department or
agency from which the person was detailed; or
``(ii) the Authority.
``(B) Violation.--Any person that violates this
paragraph shall be fined not more than $5,000,
imprisoned not more than 1 year, or both.
``(C) Applicable law.--The Federal cochairperson,
the alternate Federal cochairperson, and any Federal
officer or employee detailed to duty on the Authority
under subsection (e)(5) shall not be subject to
subparagraph (A), but shall remain subject to sections
202 through 209 of title 18, United States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Authority may
appoint and fix the compensation of an
executive director and such other personnel as
are necessary to enable the Authority to carry
out the duties of the Authority.
``(ii) Exception.--Compensation under
clause (i) shall not exceed the maximum rate
for the Senior Executive Service under section
5382 of title 5, United States Code, including
any applicable locality-based comparability
payment that may be authorized under section
5304(h)(2)(C) of that title.
``(B) Executive director.--The executive director
shall be responsible for--
``(i) the carrying out of the
administrative duties of the Authority;
``(ii) direction of the Authority staff;
and
``(iii) such other duties as the Authority
may assign.
``(C) No federal employee status.--No member,
alternate, officer, or employee of the Authority
(except the Federal cochairperson of the Authority, the
alternate and staff for the Federal cochairperson, and
any Federal employee detailed to the Authority under
subsection (e)(5)) shall be considered to be a Federal
employee for any purpose.
``(i) Conflicts of Interest.--
``(1) In general.--Except as provided under paragraph (2),
no State member, alternate, officer, or employee of the
Authority shall participate personally and substantially as a
member, alternate, officer, or employee of the Authority,
through decision, approval, disapproval, recommendation, the
rendering of advice, investigation, or otherwise, in any
proceeding, application, request for a ruling or other
determination, contract, claim, controversy, or other matter in
which, to knowledge of the member, alternate, officer, or
employee, there is a financial interest of--
``(A) the member, alternate, officer, or employee;
``(B) the spouse, minor child, partner, or
organization (other than a State or political
subdivision of the State) of the member, alternate,
officer, or employee, in which the member, alternate,
officer, or employee is serving as officer, director,
trustee, partner, or employee; or
``(C) any person or organization with whom the
member, alternate, officer, or employee is negotiating
or has any arrangement concerning prospective
employment.
``(2) Disclosure.--Paragraph (1) shall not apply if the
State member, alternate, officer, or employee--
``(A) immediately advises the Authority of the
nature and circumstances of the proceeding,
application, request for a ruling or other
determination, contract, claim, controversy, or other
particular matter presenting a potential conflict of
interest;
``(B) makes full disclosure of the financial
interest; and
``(C) before the proceeding concerning the matter
presenting the conflict of interest, receives a written
determination by the Authority that the interest is not
so substantial as to be likely to affect the integrity
of the services that the Authority may expect from the
State member, alternate, officer, or employee.
``(3) Violation.--Any person that violates this subsection
shall be fined not more than $10,000, imprisoned not more than
2 years, or both.
``(j) Validity of Contracts, Loans, and Grants.--The Authority may
declare void any contract, loan, or grant of or by the Authority in
relation to which the Authority determines that there has been a
violation of any provision under subsection (h)(4), subsection (i), or
sections 202 through 209 of title 18, United States Code.
``SEC. 3803. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
``(a) In General.--The Authority may approve grants to States and
public and nonprofit entities for projects, approved in accordance with
section 3809--
``(1) to develop the transportation infrastructure of the
region for the purpose of facilitating economic development in
the region (except that grants for this purpose may only be
made to a State or local government);
``(2) to assist the region in obtaining the job training,
employment-related education, and business development (with an
emphasis on entrepreneurship) that are needed to build and
maintain strong local economies;
``(3) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
improving basic public services;
``(4) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
equipping industrial parks and related facilities; and
``(5) to otherwise achieve the purposes of this chapter.
``(b) Funding.--
``(1) In general.--Funds for grants under subsection (a)
may be provided--
``(A) entirely from appropriations to carry out
this section;
``(B) in combination with funds available under
another Federal or Federal grant program; or
``(C) from any other source.
``(2) Priority of funding.--To best build the foundations
for long-term economic development and to complement other
Federal and State resources in the region, Federal funds
available under this chapter shall be focused on the activities
in the following order or priority:
``(A) Basic public infrastructure in distressed
counties and isolated areas of distress.
``(B) Transportation infrastructure for the purpose
of facilitating economic development in the region.
``(C) Business development, with emphasis on
entrepreneurship.
``(D) Job training or employment-related education,
with emphasis on use of existing public educational
institutions located in the region.
``SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
``(a) Finding.--Congress finds that certain States and local
communities of the region, including local development districts, may
be unable to take maximum advantage of Federal grant programs for which
the States and communities are eligible because--
``(1) the States or communities lack the economic resources
to provide the required matching share; or
``(2) there are insufficient funds available under the
applicable Federal law authorizing the Federal grant program to
meet pressing needs of the region.
``(b) Federal Grant Program Funding.--Notwithstanding any provision
of law limiting the Federal share, the areas eligible for assistance,
or the authorizations of appropriations of any Federal grant program,
and in accordance with subsection (c), the Authority, with the approval
of the Federal cochairperson and with respect to a project to be
carried out in the region--
``(1) may increase the Federal share of the costs of a
project under the Federal grant program to not more than 90
percent (except as provided in section 3806(b)); and
``(2) shall use amounts made available to carry out this
chapter to pay the increased Federal share.
``(c) Certifications.--
``(1) In general.--In the case of any project for which all
or any portion of the basic Federal share of the costs of the
project is proposed to be paid under this section, no Federal
contribution shall be made until the Federal official
administering the Federal law that authorizes the Federal grant
program certifies that the project--
``(A) meets (except as provided in subsection (b))
the applicable requirements of the applicable Federal
grant program; and
``(B) could be approved for Federal contribution
under the Federal grant program if funds were available
under the law for the project.
``(2) Certification by authority.--
``(A) In general.--The certifications and
determinations required to be made by the Authority for
approval of projects under this Act in accordance with
section 3809 shall be--
``(i) controlling; and
``(ii) accepted by the Federal agencies.
``(B) Acceptance by federal cochairperson.--In the
case of any project described in paragraph (1), any
finding, report, certification, or documentation
required to be submitted with respect to the project to
the head of the department, agency, or instrumentality
of the Federal Government responsible for the
administration of the Federal grant program under which
the project is carried out shall be accepted by the
Federal cochairperson.
``SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND
ADMINISTRATIVE EXPENSES.
``(a) Definition of Local Development District.--In this section,
the term `local development district' means an entity that--
``(1) is--
``(A) a planning district in existence on the date
of enactment of the Agriculture Reform, Food, and Jobs
Act of 2013 that is recognized by the Secretary; or
``(B) if an entity described in subparagraph (A)
does not exist--
``(i) organized and operated in a manner
that ensures broad-based community
participation and an effective opportunity for
other nonprofit groups to contribute to the
development and implementation of programs in
the region;
``(ii) governed by a policy board with at
least a simple majority of members consisting
of elected officials or employees of a general
purpose unit of local government who have been
appointed to represent the government;
``(iii) certified to the Authority as
having a charter or authority that includes the
economic development of counties or parts of
counties or other political subdivisions within
the region--
``(I) by the Governor of each State
in which the entity is located; or
``(II) by the State officer
designated by the appropriate State law
to make the certification; and
``(iv)(I) a nonprofit incorporated body
organized or chartered under the law of the
State in which the entity is located;
``(II) a nonprofit agency or
instrumentality of a State or local government;
``(III) a public organization established
before December 21, 2000, under State law for
creation of multi-jurisdictional, area-wide
planning organizations; or
``(IV) a nonprofit association or
combination of bodies, agencies, and
instrumentalities described in subclauses (I)
through (III); and
``(2) has not, as certified by the Federal cochairperson--
``(A) inappropriately used Federal grant funds from
any Federal source; or
``(B) appointed an officer who, during the period
in which another entity inappropriately used Federal
grant funds from any Federal source, was an officer of
the other entity.
``(b) Grants to Local Development Districts.--
``(1) In general.--The Authority shall make grants for
administrative expenses under this section.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the local development
district receiving the grant.
``(B) Maximum period.--No grant described in
paragraph (1) shall be awarded to a State agency
certified as a local development district for a period
greater than 3 years.
``(C) Local share.--The contributions of a local
development district for administrative expenses may be
in cash or in-kind, fairly evaluated, including space,
equipment, and services.
``(c) Duties of Local Development Districts.--A local development
district shall--
``(1) operate as a lead organization serving multicounty
areas in the region at the local level; and
``(2) serve as a liaison between State and local
governments, nonprofit organizations (including community-based
groups and educational institutions), the business community,
and citizens that--
``(A) are involved in multijurisdictional planning;
``(B) provide technical assistance to local
jurisdictions and potential grantees; and
``(C) provide leadership and civic development
assistance.
``SEC. 3806. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.
``(a) Designations.--Each year, the Authority, in accordance with
such criteria as the Authority may establish, shall designate--
``(1) as distressed counties, counties in the region that
are the most severely and persistently distressed and
underdeveloped and have high rates of poverty or unemployment;
``(2) as nondistressed counties, counties in the region
that are not designated as distressed counties under paragraph
(1); and
``(3) as isolated areas of distress, areas located in
nondistressed counties (as designated under paragraph (2)) that
have high rates of poverty or unemployment.
``(b) Distressed Counties.--
``(1) In general.--The Authority shall allocate at least 75
percent of the appropriations made available under section 3813
for programs and projects designed to serve the needs of
distressed counties and isolated areas of distress in the
region.
``(2) Funding limitations.--The funding limitations under
section 3804(b) shall not apply to a project providing
transportation or basic public services to residents of 1 or
more distressed counties or isolated areas of distress in the
region.
``(c) Nondistressed Counties.--
``(1) In general.--Except as provided in this subsection,
no funds shall be provided under this chapter for a project
located in a county designated as a nondistressed county under
subsection (a)(2).
``(2) Exceptions.--
``(A) In general.--The funding prohibition under
paragraph (1) shall not apply to grants to fund the
administrative expenses of local development districts
under section 3805(b).
``(B) Multicounty projects.--The Authority may
waive the application of the funding prohibition under
paragraph (1) to a multicounty project that includes
participation by a nondistressed county; or any other
type of project if the Authority determines that the
project could bring significant benefits to areas of
the region outside a nondistressed county.
``(C) Isolated areas of distress.--For a
designation of an isolated area of distress for
assistance to be effective, the designation shall be
supported--
``(i) by the most recent Federal data
available; or
``(ii) if no recent Federal data are
available, by the most recent data available
through the government of the State in which
the isolated area of distress is located.
``(d) Transportation and Basic Public Infrastructure.--The
Authority shall allocate at least 50 percent of any funds made
available under section 3813 for transportation and basic public
infrastructure projects authorized under paragraphs (1) and (3) of
section 3803(a).
``SEC. 3807. DEVELOPMENT PLANNING PROCESS.
``(a) State Development Plan.--In accordance with policies
established by the Authority, each State member shall submit a
development plan for the area of the region represented by the State
member.
``(b) Content of Plan.--A State development plan submitted under
subsection (a) shall reflect the goals, objectives, and priorities
identified in the regional development plan developed under section
3802(d)(2).
``(c) Consultation With Interested Local Parties.--In carrying out
the development planning process (including the selection of programs
and projects for assistance), a State may--
``(1) consult with--
``(A) local development districts; and
``(B) local units of government; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--
``(1) In general.--The Authority and applicable State and
local development districts shall encourage and assist, to the
maximum extent practicable, public participation in the
development, revision, and implementation of all plans and
programs under this chapter.
``(2) Regulations.--The Authority shall develop guidelines
for providing public participation described in paragraph (1),
including public hearings.
``SEC. 3808. PROGRAM DEVELOPMENT CRITERIA.
``(a) In General.--In considering programs and projects to be
provided assistance under this chapter and in establishing a priority
ranking of the requests for assistance provided by the Authority, the
Authority shall follow procedures that ensure, to the maximum extent
practicable, consideration of--
``(1) the relationship of the project or class of projects
to overall regional development;
``(2) the per capita income and poverty and unemployment
rates in an area;
``(3) the financial resources available to the applicants
for assistance seeking to carry out the project, with emphasis
on ensuring that projects are adequately financed to maximize
the probability of successful economic development;
``(4) the importance of the project or class of projects in
relation to other projects or classes of projects that may be
in competition for the same funds;
``(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a temporary
basis, the opportunities for employment, the average level of
income, or the economic development of the area served by the
project; and
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures and
the results of the expenditures may be evaluated.
``(b) No Relocation Assistance.--
``(1) In general.--Except as provided in paragraph (2), no
financial assistance authorized by this chapter shall be used
to assist a person or entity in relocating from 1 area to
another.
``(2) Outside businesses.--Financial assistance under this
chapter may be used as otherwise authorized by this subtitle to
attract businesses from outside the region to the region.
``(c) Reduction of Funds.--Funds may be provided for a program or
project in a State under this chapter only if the Authority determines
that the level of Federal or State financial assistance provided under
a law other than this chapter, for the same type of program or project
in the same area of the State within the region, will not be reduced as
a result of funds made available by this chapter.
``SEC. 3809. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
``(a) In General.--A State or regional development plan or any
multistate subregional plan that is proposed for development under this
chapter shall be reviewed and approved by the Authority.
``(b) Evaluation by State Member.--An application for a grant or
any other assistance for a project under this chapter shall be made
through and evaluated for approval by the State member of the Authority
representing the applicant.
``(c) Certification.--An application for a grant or other
assistance for a project shall be approved only on certification by the
State member that the application for the project--
``(1) describes ways in which the project complies with any
applicable State development plan;
``(2) meets applicable criteria under section 3808;
``(3) provides adequate assurance that the proposed project
will be properly administered, operated, and maintained; and
``(4) otherwise meets the requirements of this chapter.
``(d) Approval of Grant Applications.--On certification by a State
member of the Authority of an application for a grant or other
assistance for a specific project under this section, an affirmative
vote of the Authority under section 3802(c) shall be required for
approval of the application.
``SEC. 3810. CONSENT OF STATES.
``Nothing in this chapter requires any State to engage in or accept
any program under this chapter without the consent of the State.
``SEC. 3811. RECORDS.
``(a) Records of the Authority.--
``(1) In general.--The Authority shall maintain accurate
and complete records of all transactions and activities of the
Authority.
``(2) Availability.--All records of the Authority shall be
available for audit and examination by the Comptroller General
of the United States and the Inspector General of the
Department of Agriculture (including authorized representatives
of the Comptroller General and the Inspector General of the
Department of Agriculture).
``(b) Records of Recipients of Federal Assistance.--
``(1) In general.--A recipient of Federal funds under this
chapter shall, as required by the Authority, maintain accurate
and complete records of transactions and activities financed
with Federal funds and report on the transactions and
activities to the Authority.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Comptroller General of
the United States, the Inspector General of the Department of
Agriculture, and the Authority (including authorized
representatives of the Comptroller General, the Inspector
General of the Department of Agriculture, and the Authority).
``SEC. 3812. ANNUAL REPORT.
``Not later than 180 days after the end of each fiscal year, the
Authority shall submit to the President and to Congress a report
describing the activities carried out under this chapter.
``SEC. 3813. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated to the
Authority to carry out this chapter $30,000,000 for each of fiscal
years 2014 through 2018, to remain available until expended.
``(b) Administrative Expenses.--Not more than 5 percent of the
amount appropriated under subsection (a) for a fiscal year shall be
used for administrative expenses of the Authority.
``SEC. 3814. TERMINATION OF AUTHORITY.
``This chapter and the authority provided under this chapter expire
on October 1, 2018.
``CHAPTER 5--NORTHERN GREAT PLAINS REGIONAL AUTHORITY
``SEC. 3821. DEFINITIONS.
``In this chapter:
``(1) Authority.--The term `Authority' means the Northern
Great Plains Regional Authority established by section 3822.
``(2) Federal grant program.--The term `Federal grant
program' means a Federal grant program to provide assistance
in--
``(A) implementing the recommendations of the
Northern Great Plains Rural Development Commission
established by the Northern Great Plains Rural
Development Act (7 U.S.C. 2661 note; Public Law 103-
318);
``(B) acquiring or developing land;
``(C) constructing or equipping a highway, road,
bridge, or facility;
``(D) carrying out other economic development
activities; or
``(E) conducting research activities related to the
activities described in subparagraphs (A) through (D).
``(3) Region.--The term `region' means the States of Iowa,
Minnesota, Missouri (other than counties included in the Delta
Regional Authority), Nebraska, North Dakota, and South Dakota.
``SEC. 3822. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
``(a) Establishment.--
``(1) In general.--There is established the Northern Great
Plains Regional Authority.
``(2) Composition.--The Authority shall be composed of--
``(A) a Federal member, to be appointed by the
President, by and with the advice and consent of the
Senate;
``(B) the Governor (or a designee of the Governor)
of each State in the region that elects to participate
in the Authority; and
``(C) a member of an Indian tribe, who shall be a
chairperson of an Indian tribe in the region or a
designee of such a chairperson, to be appointed by the
President, by and with the advice and consent of the
Senate.
``(3) Cochairpersons.--The Authority shall be headed by--
``(A) the Federal member, who shall serve as--
``(i) the Federal cochairperson; and
``(ii) a liaison between the Federal
Government and the Authority;
``(B) a State cochairperson, who shall be--
``(i) a Governor of a participating State
in the region; and
``(ii) elected by the State members for a
term of not less than 1 year; and
``(C) the member of an Indian tribe, who shall
serve as--
``(i) the tribal cochairperson; and
``(ii) a liaison between the governments of
Indian tribes in the region and the Authority.
``(4) Failure to confirm.--
``(A) Federal member.--Notwithstanding any other
provision of this section, if a Federal member
described in paragraph (2)(A) has not been confirmed by
the Senate by not later than 180 days after the date of
enactment of the Agriculture Reform, Food, and Jobs Act
of 2013, the Authority may organize and operate without
the Federal member.
``(B) Tribal cochairperson.--In the case of the
tribal cochairperson, if no tribal cochairperson is
confirmed by the Senate, the regional authority shall
consult and coordinate with the leaders of Indian
tribes in the region concerning the activities of the
Authority, as appropriate.
``(b) Alternate Members.--
``(1) Alternate federal cochairperson.--The President shall
appoint an alternate Federal cochairperson.
``(2) State alternates.--
``(A) In general.--The State member of a
participating State may have a single alternate, who
shall be--
``(i) a resident of that State; and
``(ii) appointed by the Governor of the
State.
``(B) Quorum.--A State alternate member shall not
be counted toward the establishment of a quorum of the
members of the Authority in any case in which a quorum
of the State members is required to be present.
``(3) Alternate tribal cochairperson.--The President shall
appoint an alternate tribal cochairperson, by and with the
advice and consent of the Senate.
``(4) Delegation of power.--No power or responsibility of
the Authority specified in paragraphs (2) and (3) of subsection
(c), and no voting right of any member of the Authority, shall
be delegated to any person who is not--
``(A) a member of the Authority; or
``(B) entitled to vote in Authority meetings.
``(c) Voting.--
``(1) In general.--A decision by the Authority shall
require a majority vote of the Authority (not including any
member representing a State that is delinquent under subsection
(g)(2)(D)) to be effective.
``(2) Quorum.--A quorum of State members shall be required
to be present for the Authority to make any policy decision,
including--
``(A) a modification or revision of an Authority
policy decision;
``(B) approval of a State or regional development
plan; and
``(C) any allocation of funds among the States.
``(3) Project and grant proposals.--The approval of project
and grant proposals shall be--
``(A) a responsibility of the Authority; and
``(B) conducted in accordance with section 3830.
``(4) Voting by alternate members.--An alternate member
shall vote in the case of the absence, death, disability,
removal, or resignation of the Federal, State, or Indian tribe
member for whom the alternate member is an alternate.
``(d) Duties.--The Authority shall--
``(1) develop, on a continuing basis, comprehensive and
coordinated plans and programs for multistate cooperation to
advance the economic and social well-being of the region and to
approve grants for the economic development of the region,
giving due consideration to other Federal, State, tribal, and
local planning and development activities in the region;
``(2) review, and when appropriate amend, priorities in a
development plan for the region (including 5-year regional
outcome targets);
``(3) assess the needs and assets of the region based on
available research, demonstrations, investigations,
assessments, and evaluations of the region prepared by Federal,
State, tribal, and local agencies, universities, regional and
local development districts or organizations, and other
nonprofit groups;
``(4) formulate and recommend to the Governors and
legislatures of States that participate in the Authority forms
of interstate cooperation for--
``(A) renewable energy development and
transmission;
``(B) transportation planning and economic
development;
``(C) information technology;
``(D) movement of freight and individuals within
the region;
``(E) federally funded research at institutions of
higher education; and
``(F) conservation land management;
``(5) work with State, tribal, and local agencies in
developing appropriate model legislation;
``(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local
development organizations and districts, and resource
conservation districts in the region;
``(7) encourage private investment in industrial,
commercial, renewable energy, and other economic development
projects in the region; and
``(8) cooperate with and assist State governments with
economic development programs of participating States.
``(e) Administration.--In carrying out subsection (d), the
Authority may--
``(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Authority as the
Authority considers appropriate;
``(2) authorize, through the Federal, State, or tribal
cochairperson or any other member of the Authority designated
by the Authority, the administration of oaths if the Authority
determines that testimony should be taken or evidence received
under oath;
``(3) request from any Federal, State, tribal, or local
agency such information as may be available to or procurable by
the agency that may be of use to the Authority in carrying out
the duties of the Authority;
``(4) adopt, amend, and repeal bylaws and rules governing
the conduct of business and the performance of duties of the
Authority;
``(5) request the head of any Federal agency to detail to
the Authority such personnel as the Authority requires to carry
out duties of the Authority, each such detail to be without
loss of seniority, pay, or other employee status;
``(6) request the head of any State agency, tribal
government, or local government to detail to the Authority such
personnel as the Authority requires to carry out duties of the
Authority, each such detail to be without loss of seniority,
pay, or other employee status;
``(7) provide for coverage of Authority employees in a
suitable retirement and employee benefit system by--
``(A) making arrangements or entering into
contracts with any participating State government or
tribal government; or
``(B) otherwise providing retirement and other
employee benefit coverage;
``(8) accept, use, and dispose of gifts or donations of
services or real, personal, tangible, or intangible property;
``(9) enter into and perform such contracts, leases,
cooperative agreements, or other transactions as are necessary
to carry out Authority duties, including any contracts, leases,
or cooperative agreements with--
``(A) any department, agency, or instrumentality of
the United States;
``(B) any State (including a political subdivision,
agency, or instrumentality of the State);
``(C) any Indian tribe in the region; or
``(D) any person, firm, association, or
corporation; and
``(10) establish and maintain a central office and field
offices at such locations as the Authority may select.
``(f) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with the Authority; and
``(2) provide, on request of a cochairperson, appropriate
assistance in carrying out this chapter, in accordance with
applicable Federal laws (including regulations).
``(g) Administrative Expenses.--
``(1) Federal share.--The Federal share of the
administrative expenses of the Authority shall be--
``(A) for fiscal year 2014, 100 percent;
``(B) for fiscal year 2015, 75 percent; and
``(C) for fiscal year 2016 and each fiscal year
thereafter, 50 percent.
``(2) Non-federal share.--
``(A) In general.--The non-Federal share of the
administrative expenses of the Authority shall be paid
by non-Federal sources in the States that participate
in the Authority.
``(B) Share paid by each state.--The share of
administrative expenses of the Authority to be paid by
non-Federal sources in each State shall be determined
by the Authority.
``(C) No federal participation.--The Federal
cochairperson shall not participate or vote in any
decision under subparagraph (B).
``(D) Delinquent states.--If a State is delinquent
in payment of the State's share of administrative
expenses of the Authority under this subsection--
``(i) no assistance under this chapter
shall be provided to the State (including
assistance to a political subdivision or a
resident of the State); and
``(ii) no member of the Authority from the
State shall participate or vote in any action
by the Authority.
``(h) Compensation.--
``(1) Federal and tribal cochairpersons.--The Federal
cochairperson and the tribal cochairperson shall be compensated
by the Federal Government at the annual rate of basic pay
prescribed for level III of the Executive Schedule in
subchapter II of chapter 53 of title 5, United States Code.
``(2) Alternate federal and tribal cochairpersons.--The
alternate Federal cochairperson and the alternate tribal
cochairperson--
``(A) shall be compensated by the Federal
Government at the annual rate of basic pay prescribed
for level V of the Executive Schedule described in
paragraph (1); and
``(B) when not actively serving as an alternate,
shall perform such functions and duties as are
delegated by the Federal cochairperson or the tribal
cochairperson, respectively.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate each
member and alternate representing the State on the
Authority at the rate established by State law.
``(B) No additional compensation.--No State member
or alternate member shall receive any salary, or any
contribution to or supplementation of salary from any
source other than the State for services provided by
the member or alternate member to the Authority.
``(4) Detailed employees.--
``(A) In general.--No person detailed to serve the
Authority under subsection (e)(6) shall receive any
salary or any contribution to or supplementation of
salary for services provided to the Authority from--
``(i) any source other than the State,
tribal, local, or intergovernmental agency from
which the person was detailed; or
``(ii) the Authority.
``(B) Violation.--Any person that violates this
paragraph shall be fined not more than $5,000,
imprisoned not more than 1 year, or both.
``(C) Applicable law.--The Federal cochairperson,
the alternate Federal cochairperson, and any Federal
officer or employee detailed to duty on the Authority
under subsection (e)(5) shall not be subject to
subparagraph (A), but shall remain subject to sections
202 through 209 of title 18, United States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Authority may
appoint and fix the compensation of an
executive director and such other personnel as
are necessary to enable the Authority to carry
out the duties of the Authority.
``(ii) Exception.--Compensation under
clause (i) shall not exceed the maximum rate
for the Senior Executive Service under section
5382 of title 5, United States Code, including
any applicable locality-based comparability
payment that may be authorized under section
5304(h)(2)(C) of that title.
``(B) Executive director.--The executive director
shall be responsible for--
``(i) the carrying out of the
administrative duties of the Authority;
``(ii) direction of the Authority staff;
and
``(iii) such other duties as the Authority
may assign.
``(C) No federal employee status.--No member,
alternate, officer, or employee of the Authority
(except the Federal cochairperson of the Authority, the
alternate and staff for the Federal cochairperson, and
any Federal employee detailed to the Authority under
subsection (e)(5)) shall be considered to be a Federal
employee for any purpose.
``(i) Conflicts of Interest.--
``(1) In general.--Except as provided under paragraph (2),
no State member, Indian tribe member, State alternate, officer,
or employee of the Authority shall participate personally and
substantially as a member, alternate, officer, or employee of
the Authority, through decision, approval, disapproval,
recommendation, the rendering of advice, investigation, or
otherwise, in any proceeding, application, request for a ruling
or other determination, contract, claim, controversy, or other
matter in which, to knowledge of the member, alternate,
officer, or employee, there is a financial interest of--
``(A) the member, alternate, officer, or employee;
``(B) the spouse, minor child, partner, or
organization (other than a State or political
subdivision of the State or the Indian tribe) of the
member, alternate, officer, or employee, in which the
member, alternate, officer, or employee is serving as
officer, director, trustee, partner, or employee; or
``(C) any person or organization with whom the
member, alternate, officer, or employee is negotiating
or has any arrangement concerning prospective
employment.
``(2) Disclosure.--Paragraph (1) shall not apply if the
State member, Indian tribe member, alternate, officer, or
employee--
``(A) immediately advises the Authority of the
nature and circumstances of the proceeding,
application, request for a ruling or other
determination, contract, claim, controversy, or other
particular matter presenting a potential conflict of
interest;
``(B) makes full disclosure of the financial
interest; and
``(C) before the proceeding concerning the matter
presenting the conflict of interest, receives a written
determination by the Authority that the interest is not
so substantial as to be likely to affect the integrity
of the services that the Authority may expect from the
State member, Indian tribe member, alternate, officer,
or employee.
``(3) Violation.--Any person that violates this subsection
shall be fined not more than $10,000, imprisoned not more than
2 years, or both.
``(j) Validity of Contracts, Loans, and Grants.--The Authority may
declare void any contract, loan, or grant of or by the Authority in
relation to which the Authority determines that there has been a
violation of any provision under subsection (h)(4) or subsection (i) of
this chapter, or sections 202 through 209 of title 18, United States
Code.
``SEC. 3823. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND
EFFICIENCY.
``(a) In General.--The Authority shall provide assistance to States
in developing regional plans to address multistate economic issues,
including plans--
``(1) to develop a regional transmission system for
movement of renewable energy to markets outside the region;
``(2) to address regional transportation concerns,
including the establishment of a Northern Great Plains Regional
Transportation Working Group;
``(3) to encourage and support interstate collaboration on
federally funded research that is in the national interest; and
``(4) to establish a Regional Working Group on Agriculture
Development and Transportation.
``(b) Economic Issues.--The multistate economic issues referred to
in subsection (a) shall include--
``(1) renewable energy development and transmission;
``(2) transportation planning and economic development;
``(3) information technology;
``(4) movement of freight and individuals within the
region;
``(5) federally funded research at institutions of higher
education; and
``(6) conservation land management.
``SEC. 3824. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
``(a) In General.--The Authority may approve grants to States,
Indian tribes, local governments, and public and nonprofit
organizations for projects, approved in accordance with section 3830--
``(1) to assist the region in obtaining the job training,
employment-related education, and business development (with an
emphasis on entrepreneurship) that are needed to build and
maintain strong local economies;
``(2) to develop the transportation, renewable energy
transmission, and telecommunication infrastructure of the
region for the purpose of facilitating economic development in
the region (except that grants for this purpose may be made
only to States, Indian tribes, local governments, and nonprofit
organizations);
``(3) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
improving basic public services;
``(4) to provide assistance to severely distressed and
underdeveloped areas that lack financial resources for
equipping industrial parks and related facilities; and
``(5) to otherwise achieve the purposes of this chapter.
``(b) Funding.--
``(1) In general.--Funds for grants under subsection (a)
may be provided--
``(A) entirely from appropriations to carry out
this section;
``(B) in combination with funds available under
another Federal grant program; or
``(C) from any other source.
``(2) Priority of funding.--To best build the foundations
for long-term economic development and to complement other
Federal, State, and tribal resources in the region, Federal
funds available under this chapter shall be focused on the
following activities:
``(A) Basic public infrastructure in distressed
counties and isolated areas of distress.
``(B) Transportation and telecommunication
infrastructure for the purpose of facilitating economic
development in the region.
``(C) Business development, with emphasis on
entrepreneurship.
``(D) Job training or employment-related education,
with emphasis on use of existing public educational
institutions located in the region.
``SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
``(a) Finding.--Congress finds that certain States and local
communities of the region may be unable to take maximum advantage of
Federal grant programs for which the States and communities are
eligible because--
``(1) the States and communities lack the economic
resources to provide the required matching share; or
``(2) there are insufficient funds available under the
applicable Federal law authorizing the Federal grant program to
meet pressing needs of the region.
``(b) Federal Grant Program Funding.--Notwithstanding any provision
of law limiting the Federal share, the areas eligible for assistance,
or the authorizations of appropriations, under any Federal grant
program, and in accordance with subsection (c), the Authority, with the
approval of the Federal cochairperson and with respect to a project to
be carried out in the region--
``(1) may increase the Federal share of the costs of a
project under any Federal grant program to not more than 90
percent (except as provided in section 3827(b)); and
``(2) shall use amounts made available to carry out this
chapter to pay the increased Federal share.
``(c) Certifications.--
``(1) In general.--In the case of any project for which all
or any portion of the basic Federal share of the costs of the
project is proposed to be paid under this section, no Federal
contribution shall be made until the Federal official
administering the Federal law that authorizes the Federal grant
program certifies that the project--
``(A) meets (except as provided in subsection (b))
the applicable requirements of the applicable Federal
grant program; and
``(B) could be approved for Federal contribution
under the Federal grant program if funds were available
under the law for the project.
``(2) Certification by authority.--
``(A) In general.--The certifications and
determinations required to be made by the Authority for
approval of projects under this Act in accordance with
section 3830 shall be--
``(i) controlling; and
``(ii) accepted by the Federal agencies.
``(B) Acceptance by federal cochairperson.--In the
case of any project described in paragraph (1), any
finding, report, certification, or documentation
required to be submitted with respect to the project to
the head of the department, agency, or instrumentality
of the Federal Government responsible for the
administration of the Federal grant program under which
the project is carried out shall be accepted by the
Federal cochairperson.
``SEC. 3826. MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.
``(a) Definition of Multistate and Local Development District or
Organization.--In this section, the term `multistate and local
development district or organization' means an entity--
``(1) that--
``(A) is a planning district that is recognized by
the Economic Development Administration of the
Department of Commerce; or
``(B) is--
``(i) organized and operated in a manner
that ensures broad-based community
participation and an effective opportunity for
other nonprofit groups to contribute to the
development and implementation of programs in
the region;
``(ii) a nonprofit incorporated body
organized or chartered under the law of the
State in which the entity is located;
``(iii) a nonprofit agency or
instrumentality of a State or local government;
``(iv) a public organization established
before the date of enactment of the Agriculture
Reform, Food, and Jobs Act of 2013 under State
law for creation of multijurisdictional, area-
wide planning organizations;
``(v) a nonprofit agency or instrumentality
of a State that was established for the purpose
of assisting with multistate cooperation; or
``(vi) a nonprofit association or
combination of bodies, agencies, and
instrumentalities described in clauses (ii)
through (v); and
``(2) that has not, as certified by the Authority (in
consultation with the Federal cochairperson or Secretary, as
appropriate)--
``(A) inappropriately used Federal grant funds from
any Federal source; or
``(B) appointed an officer who, during the period
in which another entity inappropriately used Federal
grant funds from any Federal source, was an officer of
the other entity.
``(b) Grants to Multistate, Local, or Regional Development
Districts and Organizations.--
``(1) In general.--The Authority may make grants for
administrative expenses under this section to multistate,
local, and regional development districts and organizations.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the multistate,
local, or regional development district or organization
receiving the grant.
``(B) Maximum period.--No grant described in
paragraph (1) shall be awarded for a period of greater
than 3 years.
``(3) Local share.--The contributions of a multistate,
local, or regional development district or organization for
administrative expenses may be in cash or in-kind, fairly
evaluated, including space, equipment, and services.
``(c) Duties.--
``(1) In general.--Except as provided in paragraph (2), a
local development district shall operate as a lead organization
serving multicounty areas in the region at the local level.
``(2) Designation.--The Federal cochairperson may designate
an Indian tribe or multijurisdictional organization to serve as
a lead organization in such cases as the Federal cochairperson
or Secretary, as appropriate, determines appropriate.
``(d) Northern Great Plains Inc.--Northern Great Plains Inc., a
nonprofit corporation incorporated in the State of Minnesota to
implement the recommendations of the Northern Great Plains Rural
Development Commission established by the Northern Great Plains Rural
Development Act (7 U.S.C. 2661 note; Public Law 103-318)--
``(1) shall serve as an independent, primary resource for
the Authority on issues of concern to the region;
``(2) shall advise the Authority on development of
international trade;
``(3) may provide research, education, training, and other
support to the Authority; and
``(4) may carry out other activities on its own behalf or
on behalf of other entities.
``SEC. 3827. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.
``(a) Designations.--Each year, the Authority, in accordance with
such criteria as the Authority may establish, shall designate--
``(1) as distressed counties, counties in the region that
are the most severely and persistently distressed and
underdeveloped and have high rates of poverty, unemployment, or
outmigration;
``(2) as nondistressed counties, counties in the region
that are not designated as distressed counties under paragraph
(1); and
``(3) as isolated areas of distress, areas located in
nondistressed counties (as designated under paragraph (2)) that
have high rates of poverty, unemployment, or outmigration.
``(b) Distressed Counties.--
``(1) In general.--The Authority shall allocate at least 50
percent of the appropriations made available under section 3834
for programs and projects designed to serve the needs of
distressed counties and isolated areas of distress in the
region.
``(2) Funding limitations.--The funding limitations under
section 3825(b) shall not apply to a project to provide
transportation or telecommunication or basic public services to
residents of 1 or more distressed counties or isolated areas of
distress in the region.
``(c) Transportation, Telecommunication, Renewable Energy, and
Basic Public Infrastructure.--The Authority shall allocate at least 50
percent of any funds made available under section 3834 for
transportation, telecommunication, renewable energy, and basic public
infrastructure projects authorized under paragraphs (1) and (3) of
section 3824(a).
``SEC. 3828. DEVELOPMENT PLANNING PROCESS.
``(a) State Development Plan.--In accordance with policies
established by the Authority, each State member shall submit a
development plan for the area of the region represented by the State
member.
``(b) Content of Plan.--A State development plan submitted under
subsection (a) shall reflect the goals, objectives, and priorities
identified in the regional development plan developed under section
3823(d)(2).
``(c) Consultation With Interested Local Parties.--In carrying out
the development planning process (including the selection of programs
and projects for assistance), a State may--
``(1) consult with--
``(A) multistate, regional, and local development
districts and organizations; and
``(B) local units of government; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--
``(1) In general.--The Authority and applicable multistate,
regional, and local development districts and organizations
shall encourage and assist, to the maximum extent practicable,
public participation in the development, revision, and
implementation of all plans and programs under this chapter.
``(2) Regulations.--The Authority shall develop guidelines
for providing public participation described in paragraph (1),
including public hearings.
``SEC. 3829. PROGRAM DEVELOPMENT CRITERIA.
``(a) In General.--In considering programs and projects to be
provided assistance under this chapter, and in establishing a priority
ranking of the requests for assistance provided to the Authority, the
Authority shall follow procedures that ensure, to the maximum extent
practicable, consideration of--
``(1) the relationship of the project or class of projects
to overall multistate or regional development;
``(2) the per capita income and poverty and unemployment
and outmigration rates in an area;
``(3) the financial resources available to the applicants
for assistance seeking to carry out the project, with emphasis
on ensuring that projects are adequately financed to maximize
the probability of successful economic development;
``(4) the importance of the project or class of projects in
relation to other projects or classes of projects that may be
in competition for the same funds;
``(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a temporary
basis, the opportunities for employment, the average level of
income, or the economic development of the area to be served by
the project; and
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures and
the results of the expenditures may be evaluated.
``(b) No Relocation Assistance.--
``(1) In general.--Except as provided in paragraph (2), no
financial assistance authorized by this chapter shall be used
to assist a person or entity in relocating from 1 area to
another.
``(2) Outside businesses.--Financial assistance under this
chapter may be used as otherwise authorized by this title to
attract businesses from outside the region to the region.
``(c) Maintenance of Effort.--Funds may be provided for a program
or project in a State under this chapter only if the Authority
determines that the level of Federal or State financial assistance
provided under a law other than this chapter, for the same type of
program or project in the same area of the State within the region,
will not be reduced as a result of funds made available by this
chapter.
``SEC. 3830. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
``(a) In General.--A State or regional development plan or any
multistate subregional plan that is proposed for development under this
chapter shall be reviewed by the Authority.
``(b) Evaluation by State Member.--An application for a grant or
any other assistance for a project under this chapter shall be made
through and evaluated for approval by the State member of the Authority
representing the applicant.
``(c) Certification.--An application for a grant or other
assistance for a project shall be approved only on certification by the
State member that the application for the project--
``(1) describes ways in which the project complies with any
applicable State development plan;
``(2) meets applicable criteria under section 3829;
``(3) provides adequate assurance that the proposed project
will be properly administered, operated, and maintained; and
``(4) otherwise meets the requirements of this chapter.
``(d) Votes for Decisions.--On certification by a State member of
the Authority of an application for a grant or other assistance for a
specific project under this section, an affirmative vote of the
Authority under section 3822(c) shall be required for approval of the
application.
``SEC. 3831. CONSENT OF STATES.
``Nothing in this chapter requires any State to engage in or accept
any program under this chapter without the consent of the State.
``SEC. 3832. RECORDS.
``(a) Records of the Authority.--
``(1) In general.--The Authority shall maintain accurate
and complete records of all transactions and activities of the
Authority.
``(2) Availability.--All records of the Authority shall be
available for audit and examination by the Comptroller General
of the United States and the Inspector General of the
Department of Agriculture (including authorized representatives
of the Comptroller General and the Inspector General of the
Department of Agriculture).
``(b) Records of Recipients of Federal Assistance.--
``(1) In general.--A recipient of Federal funds under this
chapter shall, as required by the Authority, maintain accurate
and complete records of transactions and activities financed
with Federal funds and report to the Authority on the
transactions and activities to the Authority.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Comptroller General of
the United States, the Inspector General of the Department of
Agriculture, and the Authority (including authorized
representatives of the Comptroller General, the Inspector
General of the Department of Agriculture, and the Authority).
``(c) Annual Audit.--The Inspector General of the Department of
Agriculture shall audit the activities, transactions, and records of
the Authority on an annual basis for any fiscal year for which funds
are appropriated.
``SEC. 3833. ANNUAL REPORT.
``Not later than 180 days after the end of each fiscal year, the
Authority shall submit to the President and to Congress a report
describing the activities carried out under this chapter.
``SEC. 3834. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated to the
Authority to carry out this chapter $30,000,000 for each of fiscal
years 2014 through 2018, to remain available until expended.
``(b) Administrative Expenses.--Not more than 5 percent of the
amount appropriated under subsection (a) for a fiscal year shall be
used for administrative expenses of the Authority.
``(c) Minimum State Share of Grants.--Notwithstanding any other
provision of this chapter, for any fiscal year, the aggregate amount of
grants received by a State and all persons or entities in the State
under this chapter shall be not less than \1/3\ of the product obtained
by multiplying--
``(1) the aggregate amount of grants under this chapter for
the fiscal year; and
``(2) the ratio that--
``(A) the population of the State (as determined by
the Secretary of Commerce based on the most recent
decennial census for which data are available); bears
to
``(B) the population of the region (as so
determined).
``SEC. 3835. TERMINATION OF AUTHORITY.
``The authority provided by this chapter terminates effective
October 1, 2018.
``Subtitle C--General Provisions
``SEC. 3901. FULL FAITH AND CREDIT.
``(a) In General.--A guarantee executed by the Secretary under this
title shall be an obligation supported by the full faith and credit of
the United States.
``(b) Contestability.--A guarantee executed by the Secretary under
this title shall be incontestable except for fraud or misrepresentation
that the lender or any holder--
``(1) has actual knowledge of at the time the guarantee is
executed; or
``(2) participates in or condones.
``SEC. 3902. PURCHASE AND SALE OF GUARANTEED PORTIONS OF LOANS.
``(a) In General.--Subject to subsections (b) and (c), the
Secretary may purchase, on such terms and conditions as the Secretary
considers appropriate, the guaranteed portion of a loan guaranteed
under this title, if the Secretary determines that an adequate
secondary market is not available in the private sector.
``(b) Maximum Payment.--The Secretary may not pay for any
guaranteed portion of a loan under subsection (a) in excess of an
amount equal to the unpaid principal balance and accrued interest on
the guaranteed portion of the loan.
``(c) Sources of Funding.--The Secretary may use for the
purchases--
``(1) funds from the Rural Development Insurance Fund with
respect to rural development loans (as defined in section
3704(a)); and
``(2) funds from the Agricultural Credit Insurance Fund
with respect to all other loans under this title.
``(d) Sale of Guaranteed Loans.--
``(1) Sales.--
``(A) Regulation.--
``(i) In general.--The guaranteed portion
of any loan made under this title may be sold
by the lender, and by any subsequent holder, in
accordance with such regulations governing the
sales as the Secretary shall establish, subject
to clauses (ii) and (iii).
``(ii) Fees to be paid in full.--All fees
due the Secretary with respect to a guaranteed
loan shall be paid in full before any sale.
``(iii) Loan to be fully disbursed.--The
loan shall be fully disbursed to the borrower
before the sale.
``(B) Post-sale.--After a loan is sold in the
secondary market, the lender shall--
``(i) remain obligated under the guarantee
agreement of the lender with the Secretary; and
``(ii) continue to service the loan in
accordance with the terms and conditions of
that agreement.
``(C) Procedures.--The Secretary shall develop such
procedures as are necessary for--
``(i) the facilitation, administration, and
promotion of secondary market operations; and
``(ii) determining the increase of access
of farmers to capital at reasonable rates and
terms as a result of secondary market
operations.
``(D) Rights to prepay.--This subsection does not
impede or extinguish--
``(i) the right of the borrower or the
successor in interest to the borrower to prepay
(in whole or in part) any loan made under this
title; or
``(ii) the rights of any party under any
provision of this title.
``(2) Issue pool certificates.--
``(A) In general.--The Secretary may, directly or
through a market maker approved by the Secretary, issue
pool certificates representing ownership of part or all
of the guaranteed portion of any loan guaranteed by the
Secretary under this title.
``(B) Approval.--Certificates under subparagraph
(A) shall be based on and backed by a pool established
or approved by the Secretary and composed solely of the
entire guaranteed portion of the loans.
``(C) Guarantee of pool.--On such terms and
conditions as the Secretary considers appropriate, the
Secretary may guarantee the timely payment of the
principal and interest on pool certificates issued on
behalf of the Secretary by approved market makers for
purposes of this subsection.
``(D) Limitations.--A guarantee under subparagraph
(C) shall be limited to the extent of principal and
interest on the guaranteed portions of loans that
compose the pool.
``(E) Prepayment.--If a loan in a pool is prepaid,
either voluntarily or by reason of default, the
guarantee of timely payment of principal and interest
on the pool certificates shall be reduced in proportion
to the amount of principal and interest that the
prepaid loan represents in the pool.
``(F) Interest accrual.--Interest on prepaid or
defaulted loans shall accrue and be guaranteed by the
Secretary only through the date of payment on the
guarantee.
``(G) Redemption.--During the term of the pool
certificate, the certificate may be called for
redemption due to prepayment or default of all loans
constituting the pool.
``(H) Full faith and credit.--The full faith and
credit of the United States is pledged to the payment
of all amounts that may be required to be paid under
any guarantee of the pool certificates issued by
approved market makers under this subsection.
``(I) Fees.--
``(i) In general.--The Secretary shall not
collect any fee for any guarantee under this
subsection.
``(ii) Secretarial functions.--Clause (i)
does not preclude the Secretary from collecting
a fee for the functions described in paragraph
(3).
``(J) Default.--Not later than 30 days after a
borrower of a guaranteed loan is in default of any
principal or interest payment due for 60 days or more,
the Secretary shall--
``(i) purchase the pool certificates
representing ownership of the guaranteed
portion of the loan; and
``(ii) pay the registered holder of the
certificates an amount equal to the guaranteed
portion of the loan represented by the
certificate.
``(K) Payment of claims.--If the Secretary pays a
claim under a guarantee issued under this subsection,
the claim shall be subrogated fully to the rights
satisfied by the payment, as may be provided by the
Secretary.
``(L) Application of laws.--No State or local law,
and no Federal law, shall preclude or limit the
exercise by the Secretary of the ownership rights of
the Secretary in the portions of loans constituting the
pool against which the certificates are issued.
``(3) Duties of the secretary.--
``(A) In general.--On the adoption of final rules
and regulations, the Secretary shall--
``(i) provide for the central collection of
registration information from all participating
market makers for all loans and pool
certificates sold under paragraphs (1) and (2),
including, with respect to each original sale
and any subsequent sale--
``(I) identification of the
interest rate paid by the borrower to
the lender;
``(II) the servicing fee of the
lender;
``(III) disclosure of whether
interest on the loan is at a fixed or
variable rate;
``(IV) identification of each
purchaser of a pool certificate;
``(V) the interest rate paid on the
certificate; and
``(VI) such other information as
the Secretary considers appropriate.
``(ii) before any sale, require the seller
(as defined in subparagraph (B)) to disclose to
each prospective purchaser of the portion of a
loan guaranteed under this title and to each
prospective purchaser of a pool certificate
issued under paragraph (2) information on the
terms, conditions, and yield of such
instrument;
``(iii) provide for adequate custody of any
pooled guaranteed loans;
``(iv) take such actions as are necessary,
in restructuring pools of the guaranteed
portion of loans, to minimize the estimated
costs of paying claims under guarantees issued
under this subsection;
``(v) require each market maker--
``(I) to service all pools formed,
and participations sold, by the market
maker; and
``(II) to provide the Secretary
with information relating to the
collection and disbursement of all
periodic payments, prepayments, and
default funds from lenders, to or from
the reserve fund that the Secretary
shall establish to enable the timely
payment guarantee to be self-funding,
and from all beneficial holders; and
``(vi) regulate market makers in pool
certificates sold under this subsection.
``(B) Definition of seller.--For purposes of
subparagraph (A)(ii), if the instrument being sold is a
loan, the term `seller' does not include--
``(i) the person who made the loan; or
``(ii) any person who sells 3 or fewer
guaranteed loans per year.
``(4) Contract for services.--The Secretary may contract
for goods and services to be used for the purposes of this
subsection without regard to titles 5, 40, and 41, United
States Code (including any regulations issued under those
titles).
``SEC. 3903. ADMINISTRATION.
``(a) Powers of Secretary.--The Secretary may--
``(1)(A) administer the powers and duties of the Secretary
through such national, area, State, or local offices and
employees in the United States as the Secretary determines to
be necessary; and
``(B) authorize an office to serve an area composed of 2 or
more States if the Secretary determines that the volume of
business in the area is not sufficient to justify separate
State offices;
``(2)(A) accept and use voluntary and uncompensated
services; and
``(B) with the consent of the agency concerned, use the
officers, employees, equipment, and information of any agency
of the Federal Government, or of any State, territory, or
political subdivision;
``(3) subject to appropriations, make necessary
expenditures for the purchase or hire of passenger vehicles,
and such other facilities and services as the Secretary may
from time to time find necessary for the proper administration
of this title;
``(4) subject to subsection (b), compromise, adjust,
reduce, or charge-off debts or claims (including debts and
claims arising from loan guarantees), and adjust, modify,
subordinate, or release the terms of security instruments,
leases, contracts, and agreements entered into or administered
by the Farm Service Agency, the Rural Utilities Service, the
Rural Housing Service, the Rural Business-Cooperative Service,
or successor agencies under this title, except for activities
conducted under the Housing Act of 1949 (42 U.S.C. 1441 et
seq.);
``(5)(A) except for activities conducted under the Housing
Act of 1949 (42 U.S.C. 1441 et seq.), collect all claims and
obligations administered by the Farm Service Agency, the Rural
Utilities Service, the Rural Housing Service, or the Rural
Business-Cooperative Service, or under any mortgage, lease,
contract, or agreement entered into or administered by the
Agency or Service; and
``(B) if the Secretary determines the action is necessary
and advisable, pursue the collection to final collection in any
court having jurisdiction;
``(6) release mortgage and other contract liens if it
appears that the mortgage and liens have no present or
prospective value or that the enforcement of the mortgage and
liens likely would be ineffectual or uneconomical;
``(7) obtain fidelity bonds protecting the Federal
Government against fraud and dishonesty of officers and
employees of the Farm Service Agency, the Rural Utilities
Service, the Rural Housing Service, or the Rural Business-
Cooperative Service in lieu of faithful performance of duties
bonds under section 14 of title 6, United States Code, but
otherwise in accordance with the section;
``(8) consent to--
``(A) long-term leases of facilities financed under
this title notwithstanding the failure of the lessee to
meet any of the requirements of this title if the long-
term leases are necessary to ensure the continuation of
services for which financing was extended to the
lessor; and
``(B) the transfer of property securing any loan or
financed by any loan or grant made or guaranteed by the
Farm Service Agency, the Rural Utilities Service, the
Rural Housing Service, or the Rural Business-
Cooperative Service under this title, or any other law
administered by the Secretary, on such terms as the
Secretary considers necessary to carry out the purpose
of the loan or grant or to protect the financial
interest of the Federal Government, provided that the
Secretary shall document the consent of the Secretary
for the transfer of the property of a borrower in the
file of the borrower; and
``(9) notwithstanding that an area ceases, or has ceased,
to be rural, in a rural area, or an eligible area, make loans
and grants, and approve transfers and assumptions, under this
title on the same basis as though the area still was rural in
connection with property securing any loan made or guaranteed
by the Secretary under this title or in connection with any
property held by the Secretary under this title.
``(b) Loan Adjustments.--
``(1) No liquidation of property.--The Secretary may not
require liquidation of property securing any farmer program
loan or acceleration of any payment required under any farmer
program loan as a prerequisite to initiating an action
authorized under subsection (a).
``(2) Release of personal liability.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary may release a borrower
or other person obligated on a debt (other than debt
incurred under the Housing Act of 1949 (42 U.S.C. 1441
et seq.)) from personal liability with or without
payment of any consideration at the time of the
compromise, adjustment, reduction, or charge-off of any
claim.
``(B) Exception.--No compromise, adjustment,
reduction, or charge-off of any claim may be made or
carried out after the claim has been referred to the
Attorney General, unless the Attorney General approves.
``(3) Rural electrification security instruments.--In the
case of a security instrument entered into under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.), the
Secretary shall notify the Attorney General of the intent of
the Secretary to exercise the authority of the Secretary under
paragraph (2).
``(c) Simplified Application Forms for Loan Guarantees.--
``(1) In general.--The Secretary shall provide to lenders a
short, simplified application form for guarantees under this
title of--
``(A) farmer program loans the principal amount of
which is $125,000 or less; and
``(B) business and industry guaranteed loans under
section 3601(a)(2)(A) the principal amount of which
is--
``(i) $400,000 or less; or
``(ii) if the Secretary determines that
there is not a significant increased risk of a
default on the loan, $600,000 or less.
``(2) Water and waste disposal grants and loans.--The
Secretary shall develop an application process that
accelerates, to the maximum extent practicable, the processing
of applications for water and waste disposal grants or direct
or guaranteed loans under section 3501(a)(1) the grant award
amount or principal loan amount, respectively, of which is
$300,000 or less.
``(3) Administration.--In developing an application under
this subsection, the Secretary shall--
``(A) consult with commercial and cooperative
lenders; and
``(B) ensure that--
``(i) the form can be completed manually or
electronically, at the option of the lender;
``(ii) the form minimizes the documentation
required to accompany the form;
``(iii) the cost of completing and
processing the form is minimal; and
``(iv) the form can be completed and
processed in an expeditious manner.
``(d) Use of Attorneys for Prosecution or Defense of Claims.--The
Secretary may use for the prosecution or defense of any claim or
obligation described in subsection (a)(5) the Attorney General, the
General Counsel of the Department, or a private attorney who has
entered into a contract with the Secretary.
``(e) Private Collection Agency.--The Secretary may use a private
collection agency to collect a claim or obligation described in
subsection (a)(5).
``(f) Security Servicing.--
``(1) In general.--The Secretary may--
``(A) make advances, without regard to any loan or
total indebtedness limitation, to preserve and protect
the security for, or the lien or priority of the lien
securing any loan or other indebtedness owing to or
acquired by the Secretary under this title or under any
other program administered by the Farm Service Agency,
the Rural Utilities Service, the Rural Housing Service,
or the Rural Business-Cooperative Service applicable
program, as determined by the Secretary; and
``(B)(i) bid for and purchase at any execution,
foreclosure, or other sale or otherwise acquire
property on which the United States has a lien by
reason of a judgment or execution arising from, or that
is pledged, mortgaged, conveyed, attached, or levied on
to secure the payment of, the indebtedness regardless
of whether the property is subject to other liens;
``(ii) accept title to any property so purchased or
acquired; and
``(iii) sell, manage, or otherwise dispose of the
property in accordance with this subsection.
``(2) Operation or lease of realty.--Except as provided in
subsections (c) and (e), real property administered under this
title may be operated or leased by the Secretary for such
period as the Secretary may consider necessary to protect the
investment of the Federal Government in the property.
``(g) Payments to Lenders.--
``(1) Requirement.--Not later than 90 days after a court of
competent jurisdiction confirms a plan of reorganization under
chapter 12 of title 11, United States Code, for any borrower to
whom a lender has made a loan guaranteed under this title, the
Secretary shall pay the lender an amount estimated by the
Secretary to be equal to the loss incurred by the lender for
purposes of the guarantee.
``(2) Payment toward loan guarantee.--Any amount paid to a
lender under this subsection with respect to a loan guaranteed
under this title shall be treated as payment towards
satisfaction of the loan guarantee.
``SEC. 3904. LOAN MORATORIUM AND POLICY ON FORECLOSURES.
``(a) In General.--In addition to any other authority that the
Secretary may have to defer principal and interest and forgo
foreclosure, the Secretary may permit, at the request of the borrower,
the deferral of principal and interest on any outstanding loan made or
guaranteed by the Secretary under this title, or under any other law
administered by the Farm Service Agency, the Rural Utilities Service,
the Rural Housing Service, or the Rural Business-Cooperative Service,
and may forgo foreclosure of the loan, for such period as the Secretary
considers necessary on a showing by the borrower that, due to
circumstances beyond the control of the borrower, the borrower is
temporarily unable to continue making payments of the principal and
interest when due without unduly impairing the standard of living of
the borrower.
``(b) Interest.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may permit any loan deferred under this section to
bear no interest during or after the deferral period.
``(2) Exception.--If the security instrument securing the
loan is foreclosed, such interest as is included in the
purchase price at the foreclosure shall become part of the
principal and draw interest from the date of foreclosure at the
rate prescribed by law.
``(c) Moratorium Regarding Civil Rights Claims.--
``(1) In general.--Except as otherwise provided in this
subsection, effective beginning on May 22, 2008, there shall be
in effect a moratorium, with respect to farmer program loans
made under subtitle A, on all acceleration and foreclosure
proceedings instituted by the Department against any farmer
who--
``(A) has pending against the Department a claim of
program discrimination that is accepted by the
Department as valid; or
``(B) files a claim of program discrimination that
is accepted by the Department as valid.
``(2) Waiver of interest and offsets.--During the period of
the moratorium, the Secretary shall waive the accrual of
interest and offsets on all farmer program loans made under
subtitle A for which loan acceleration or foreclosure
proceedings have been suspended under paragraph (1).
``(3) Termination of moratorium.--The moratorium shall
terminate with respect to a claim of discrimination by a farmer
on the earlier of--
``(A) the date the Secretary resolves the claim; or
``(B) if the farmer appeals the decision of the
Secretary on the claim to a court of competent
jurisdiction, the date that the court renders a final
decision on the claim.
``(4) Failure to prevail.--If a farmer does not prevail on
a claim of discrimination described in paragraph (1), the
farmer shall be liable for any interest and offsets that
accrued during the period that loan acceleration or foreclosure
proceedings have been suspended under paragraph (1).
``SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON LOANS.
``(a) In General.--The Secretary shall permit a borrower of a loan
made or guaranteed under this title to make a prospective payment on
the loan with proceeds from--
``(1) the leasing of oil, gas, or other mineral rights to
real property used to secure the loan; or
``(2) the sale of oil, gas, or other minerals removed from
real property used to secure the loan, if the value of the
rights to the oil, gas, or other minerals has not been used to
secure the loan.
``(b) Applicability.--Subsection (a) shall not apply to a borrower
of a loan made or guaranteed under this title with respect to which a
liquidation or foreclosure proceeding was pending on December 23, 1985.
``SEC. 3906. TAXATION.
``(a) In General.--Except as provided in subsection (b), all
property subject to a lien held by the United States or the title to
which is acquired or held by the Secretary under this title (other than
property used for administrative purposes) shall be subject to taxation
by State, territory, district, and local political subdivisions in the
same manner and to the same extent as other property is taxed.
``(b) Exceptions.--No tax shall be imposed or collected as
described in subsection (a) if the tax (whether as a tax on the
instrument or in connection with conveying, transferring, or recording
the instrument) is based on--
``(1) the value of any notes or mortgages or other lien
instruments held by or transferred to the Secretary;
``(2) any notes or lien instruments administered under this
title that are made, assigned, or held by a person otherwise
liable for the tax; or
``(3) the value of any property conveyed or transferred to
the Secretary.
``(c) Failure To Pay or Collect Tax.--The failure to pay or collect
a tax under subsection (a) shall not--
``(1) be a ground for--
``(A) refusal to record or file an instrument; or
``(B) failure to provide notice; or
``(2) prevent the enforcement of the instrument in any
Federal or State court.
``SEC. 3907. CONFLICTS OF INTEREST.
``(a) Acceptance of Consideration Prohibited.--No officer,
attorney, or other employee of the Department shall, directly or
indirectly, be the beneficiary of or receive any fee, commission, gift,
or other consideration for or in connection with any transaction or
business under this title other than such salary, fee, or other
compensation as the officer, attorney, or employee may receive as the
officer, attorney, or employee.
``(b) Acquisition of Interest in Land Prohibited.--
``(1) In general.--Except as provided in paragraph (2), no
officer or employee of the Department who acts on or reviews an
application made by any person under this title for a loan to
purchase land may acquire, directly or indirectly, any interest
in the land for a period of 3 years after the date on which the
action is taken or the review is made.
``(2) Former county committee members.--Paragraph (1) shall
not apply to a former member of a county committee on a
determination by the Secretary, prior to the acquisition of the
interest, that the former member acted in good faith when
acting on or reviewing the application.
``(c) Penalties.--Any person violating this section shall, on
conviction of the violation, be punished by a fine of not more than
$2,000 or imprisonment for not more than 2 years, or both.
``SEC. 3908. LOAN SUMMARY STATEMENTS.
``(a) Definition of Summary Period.--In this section, the term
`summary period' means the period beginning on the date of issuance of
the preceding loan summary statement and ending on the date of issuance
of the current loan summary statement.
``(b) Issuance of Statements.--On the request of a borrower of a
loan made (but not guaranteed) under this title, the Secretary shall
issue to the borrower a loan summary statement that reflects the
account activity during the summary period for each loan made under
this title to the borrower, including--
``(1) the outstanding amount of principal due on each loan
at the beginning of the summary period;
``(2) the interest rate charged on each loan;
``(3) the amount of payments made on, and the application
of the payments to, each loan during the summary period and an
explanation of the basis for the application of the payments;
``(4) the amount of principal and interest due on each loan
at the end of the summary period;
``(5) the total amount of unpaid principal and interest on
all loans at the end of the summary period;
``(6) any delinquency in the repayment of any loan;
``(7) a schedule of the amount and date of payments due on
each loan; and
``(8) the procedure the borrower may use to obtain more
information concerning the status of the loans.
``SEC. 3909. CERTIFIED LENDERS PROGRAM.
``(a) Certified Lenders Program.--
``(1) In general.--The Secretary shall establish a program
under which the Secretary shall guarantee loans under this
title that are made by lending institutions certified by the
Secretary.
``(2) Certification requirements.--The Secretary shall
certify a lending institution that meets such criteria as the
Secretary may prescribe in regulations, including the ability
of the institution to properly make, service, and liquidate the
loans of the institution.
``(3) Condition of certification.--
``(A) In general.--As a condition of the
certification, the Secretary shall require the
institution to undertake to service the loans
guaranteed by the Secretary under this section, using
standards that are not less stringent than generally
accepted banking standards concerning loan servicing
employed by prudent commercial or cooperative lenders.
``(B) Monitoring.--The Secretary shall, at least
annually, monitor the performance of each certified
lender to ensure that the conditions of the
certification are being met.
``(4) Effect of certification.--Notwithstanding any other
provision of law:
``(A) Amount of loan guarantee.--In the case of a
loan made or guaranteed under subtitle A, the Secretary
shall guarantee not more than 80 percent of a loan made
under this section by a certified lending institution
as described in paragraph (1), subject to a
determination that the borrower of the loan meets the
eligibility requirements and such other criteria as may
be applicable to loans guaranteed by the Secretary
under other provisions of this title.
``(B) Certifications by lending institutions.--In
the case of loans to be guaranteed by the Secretary
under this section, the Secretary shall permit
certified lending institutions to make appropriate
certifications (as provided by regulations issued by
the Secretary)--
``(i) relating to issues such as
creditworthiness, repayment ability, adequacy
of collateral, and feasibility of farm
operation; and
``(ii) that the borrower is in compliance
with all requirements of law, including
regulations issued by the Secretary.
``(C) Approval process.--
``(i) In general.--The Secretary shall
approve or disapprove a guarantee not later
than 14 days after the date that the lending
institution applies to the Secretary for the
guarantee.
``(ii) Disapproval.--If the Secretary
disapproves the loan application during the 14-
day period, the Secretary shall state, in
writing, all of the reasons the application was
disapproved.
``(5) Relationship to other requirements.--Nothing in this
section affects the responsibility of the Secretary to certify
eligibility, review financial information, and otherwise assess
an application.
``(b) Preferred Certified Lenders Program.--
``(1) In general.--The Secretary shall establish a
Preferred Certified Lenders Program for lenders under this
title who establish--
``(A) knowledge of, and experience under, the
program established under subsection (a);
``(B) knowledge of the regulations concerning the
guaranteed loan program; and
``(C) proficiency related to the certified lender
program requirements.
``(2) Revocation of designation.--
``(A) In general.--Subject to subparagraph (B), the
designation of a lender as a Preferred Certified Lender
shall be revoked at any time--
``(i) that the Secretary determines that
the lender is not adhering to the rules and
regulations applicable to the program; or
``(ii) if the loss experiences of a
Preferred Certified Lender are excessive as
compared to other Preferred Certified Lenders.
``(B) Effect.--A suspension or revocation under
subparagraph (A) shall not affect any outstanding
guarantee.
``(3) Condition of certification.--As a condition of
preferred certification, the Secretary shall require the
institution to undertake to service the loans guaranteed by the
Secretary under this subsection using generally accepted
banking standards concerning loan servicing employed by prudent
commercial or cooperative lenders.
``(4) Monitoring.--The Secretary shall, at least annually,
monitor the performance of each Preferred Certified Lender to
ensure that the conditions of certification are being met.
``(5) Effect of preferred lender certification.--
``(A) In general.--Notwithstanding any other
provision of law, the Secretary shall--
``(i) guarantee not more than 80 percent of
an approved loan made by a certified lending
institution as described in this subsection,
subject to a determination that the borrower
meets the eligibility requirements or such
other criteria as may be applicable to loans
guaranteed by the Secretary under other
provisions of this title;
``(ii) permit certified lending
institutions--
``(I) to make all decisions, with
respect to loans to be guaranteed by
the Secretary under this subsection
relating to credit worthiness, the
closing, monitoring, collection and
liquidation of loans; and
``(II) to accept appropriate
certifications, as provided by
regulations issued by the Secretary,
that the borrower is in compliance with
all requirements of law or regulations
promulgated by the Secretary; and
``(iii) be considered to have guaranteed 80
percent of a loan made by a preferred certified
lending institution as described in paragraph
(1), if the Secretary fails to approve or
reject the application of such institution
within 14 calendar days after the date that the
lending institution presented the application
to the Secretary.
``(B) Requirement.--If the Secretary rejects an
application under subparagraph (A)(iii) during the 14-
day period, the Secretary shall state, in writing, the
reasons the application was rejected.
``(c) Administration of Certified Lenders and Preferred Certified
Lenders Programs.--The Secretary may administer the loan guarantee
programs under subsections (a) and (b) through central offices
established in States or in multi-State areas.
``SEC. 3910. LOANS TO RESIDENT ALIENS.
``(a) In General.--Notwithstanding the provisions of this title
limiting the making of a loan to a citizen of the United States, the
Secretary may make a loan under this title to an alien lawfully
admitted to the United States for permanent residence under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
``(b) Regulations.--
``(1) In general.--No loan may be made under this title to
an alien referred to in subsection (a) until the Secretary
issues regulations establishing the terms and conditions under
which the alien may receive the loan.
``(2) Requirement.--The Secretary shall submit the
regulations to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate at least 30 days prior to the date
on which the regulations are published in the Federal Register.
``SEC. 3911. EXPEDITED CLEARING OF TITLE TO INVENTORY PROPERTY.
``(a) In General.--The Secretary may employ local attorneys, on a
case-by-case basis, to process all legal procedures necessary to clear
the title to foreclosed properties in the inventory of the Department.
``(b) Compensation.--Attorneys shall be compensated at not more
than the usual and customary charges of the attorneys for the work.
``SEC. 3912. TRANSFER OF LAND TO SECRETARY.
``The President may at any time, in the discretion of the
President, transfer to the Secretary any right, interest, or title held
by the United States in any land acquired in the program of national
defense and no longer needed for that purpose that the President finds
suitable for the purposes of this title, and the Secretary shall
dispose of the transferred land in the manner and subject to the terms
and conditions of this title.
``SEC. 3913. COMPETITIVE SOURCING LIMITATIONS.
``The Secretary may not complete a study of, or enter into a
contract with a private party to carry out, without specific
authorization in a subsequent Act of Congress, a competitive sourcing
activity of the Secretary, including support personnel of the
Department, relating to rural development or farmer program loans.
``SEC. 3914. REGULATIONS.
``The Secretary may issue such regulations, prescribe such terms
and conditions for making or guaranteeing loans, security instruments,
and agreements, except as otherwise specified in this title, and make
such delegations of authority as the Secretary considers necessary to
carry out this title.''.
SEC. 6002. CONFORMING AMENDMENTS.
(a) Section 17(c) of the Rural Electrification Act of 1936 (7
U.S.C. 917(c)) is amended by striking paragraph (1) and inserting the
following:
``(1) Subtitle B of the Consolidated Farm and Rural
Development Act.''.
(b) Section 305(c)(2)(B)(i)(I) of the Rural Electrification Act of
1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended by striking ``section
307(a)(3)(A) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1927(a)(3)(A))'' and inserting ``section 3701(b)(2) of the
Consolidated Farm and Rural Development Act''.
(c) Section 306F(a)(1) of the Rural Electrification Act of 1936 (7
U.S.C. 936f(a)(1)) is amended by striking subparagraph (B) and
inserting the following:
``(B) chapter 1 of subtitle B of the Consolidated
Farm and Rural Development Act.''.
(d) Section 2333(d) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 950aaa-2(d)) is amended--
(1) in paragraph (11), by adding ``and'' at the end;
(2) by striking paragraph (12); and
(3) by redesignating paragraph (13) as paragraph (12).
(e) Section 601(b) of the Rural Electrification Act of 1936 (7
U.S.C. 950bb(b)) is amended by striking paragraph (3).
(f) Section 602(5) of the Emergency Livestock Feed Assistance Act
of 1988 (7 U.S.C. 1471(5)) is amended by striking ``section
355(e)(1)(D)(ii) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1985(e)(1)(D)(ii))'' and inserting ``section 3409(c)(1)(A) of
the Consolidated Farm and Rural Development Act)''.
(g) Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508)
is amended--
(1) in subsection (b)(7)(A), by striking ``section 371 of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2008f)'' and inserting ``section 3424 of the Consolidated Farm
and Rural Development Act''; and
(2) in subsection (n)(2), by striking ``subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.)'' and inserting ``chapter 3 of subtitle A of the
Consolidated Farm and Rural Development Act''.
(h) Section 231(a) of the Agricultural Risk Protection Act of 2000
(7 U.S.C. 1632a(a)) is amended--
(1) in paragraph (1), by striking ``section 343(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))'' and inserting ``section 3002 of the Consolidated
Farm and Rural Development Act''; and
(2) in paragraph (4), by striking ``section 355(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e))'' and inserting ``section 3002 of the Consolidated
Farm and Rural Development Act''.
(i) Section 14204(a) of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 2008q-1(a)) is amended by striking ``an entity described
in section 379C(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2008q(a))'' and inserting ``an entity determined by the
Secretary''.
(j) Section 607(c)(6) of the Rural Development Policy Act of 1972
(7 U.S.C. 2204b(c)(6)) is amended in the last sentence--
(1) by striking ``, and'' and inserting ``and any''; and
(2) by striking ``required under section 306(a)(12) of the
Consolidated Farm and Rural Development Act''.
(k) Section 901(b) of the Agricultural Act of 1970 (7 U.S.C. 2204b-
1(b)) is amended by striking ``rural areas as defined in the private
business enterprise exception in section 306(a)(7) of the Consolidated
Farmers Home Administration Act of 1961, as amended (7 U.S.C. 1926)''
and inserting ``rural areas, as defined in section 3002 of the
Consolidated Farm and Rural Development Act''.
(l) Section 14220 of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 2206b) is amended by striking ``section 343(a)(13)(A) of the
Consolidated Farm and Rural Development Act)'' and inserting ``section
3002 of the Consolidated Farm and Rural Development Act)''.
(m) Section 2501(c)(2)(D) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(c)(2)(D)) is amended by striking
``sections 355(a)(1) and 355(c) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(a)(1))'' and inserting ``paragraphs (1)
and (3) of section 3416(a) of the Consolidated Farm and Rural
Development Act''.
(n) Section 2501A(b) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279-1(b)) is amended by striking ``section
355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e))'' and inserting ``section 3002 of the Consolidated Farm and
Rural Development Act''.
(o) Section 7405(c)(8)(B) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is amended by striking ``section
355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e))'' and inserting ``section 3002 of the Consolidated Farm and
Rural Development Act)''.
(p) Section 1101(d)(2)(A) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8711(d)(2)(A)) is amended by striking ``section
355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e))'' and inserting ``section 3002 of the Consolidated Farm and
Rural Development Act)''.
(q) Section 1302(d)(2)(A) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8752(d)(2)(A)) is amended by striking ``section
355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e))'' and inserting ``section 3002 of the Consolidated Farm and
Rural Development Act)''.
(r) Section 2375(g) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 6613(g)) is amended by striking ``section
304(b), 306(a), or 310B(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e))'' and
inserting ``subtitle B of the Consolidated Farm and Rural Development
Act''.
(s) Section 226B(a)(1) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) is amended by striking
``section 343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a))'' and inserting ``section 3002 of the Consolidated Farm
and Rural Development Act''.
(t) Section 196(i)(3)(B) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333(i)(3)(B)) is amended by striking
``subtitle C of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961 et seq.)'' and inserting ``chapter 3 of subtitle A of the
Consolidated Farm and Rural Development Act''.
(u) Section 9009(a)(1) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8109(a)(1)) is amended by striking ``section
343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)(13)(A)))'' and inserting ``section 3002 of the
Consolidated Farm and Rural Development Act''.
(v) Section 9011(c)(2)(B)(v) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) is amended by
striking subclause (I) and inserting the following:
``(I) beginning farmers (as defined
in accordance with section 3002 of the
Consolidated Farm and Rural Development
Act); or''.
(w) Section 7(b)(2)(B) of the Small Business Act (15 U.S.C.
636(b)(2)(B)) is amended by striking ``section 321 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961)'' and inserting
``section 3301 of the Consolidated Farm and Rural Development Act''.
(x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(iii)(III)(bb)) is
amended by striking ``section 355(e)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)(1))'' and inserting ``section
3002 of the Consolidated Farm and Rural Development Act)''.
(y) Section 10(b)(3) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2106(b)(3)) is amended in the last sentence by striking
``set out in the first clause of section 306(a)(7) of the Consolidated
Farm and Rural Development Act'' and inserting ``given the term in
section 3002 of the Consolidated Farm and Rural Development Act''.
(z) Section 1201(a)(2) of the Food Security Act of 1985 (16 U.S.C.
3801(a)(2)) is amended by striking ``section 343(a)(8) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(8))'' and
inserting ``section 3002 of the Consolidated Farm and Rural Development
Act''.
(aa) Section 1238(2) of the Food Security Act of 1985 (16 U.S.C.
3838(2)) is amended by striking ``section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a))'' and inserting
``section 3002 of the Consolidated Farm and Rural Development Act''.
(bb) Section 5 of Public Law 91-229 (25 U.S.C. 492) is amended by
striking ``section 307(a)(3)(B) of the Consolidated Farmers Home
Administration Act of 1961, as amended, and to the provisions of
subtitle D of that Act except sections 340, 341, 342, and 343'' and
inserting ``3105(b)(2) of the Consolidated Farm and Rural Development
Act''.
(cc) Section 6(c) of Public Law 91-229 (25 U.S.C. 493(c)) is
amended by striking ``section 333B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1983b)'' and inserting ``subtitle H of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et
seq.)''.
(dd) Section 181(a)(2)(B)(ii) of the Internal Revenue Code of 1986
is amended by striking ``section 2009aa-1 of title 7, United States
Code'' and inserting ``section 3801 of the Consolidated Farm and Rural
Development Act''.
(ee) Section 515(b)(3) of the Housing Act of 1949 (42 U.S.C.
1485(b)(3)) is amended by striking ``all the provisions of section 309
and the second and third sentences of section 308 of the Consolidated
Farmers Home Administration Act of 1961, including the authority in
section 309(f)(1) of that Act'' and inserting ``section 3401 of the
Consolidated Farm and Rural Development Act''.
(ff) Section 517(b) of the Housing Act of 1949 (42 U.S.C. 1487(b))
is amended in the third sentence by striking ``(7 U.S.C. 1929)'' and
inserting ``under section 3401 of the Consolidated Farm and Rural
Development Act''.
(gg) Section 3(8) of the Public Works and Economic Development Act
of 1965 (42 U.S.C. 3122(8)) is amended--
(1) by striking subparagraph (B) and inserting the
following:
``(B) the Delta Regional Authority established
under chapter 4 of subtitle B of the Consolidated Farm
and Rural Development Act;''; and
(2) by striking subparagraph (D) and inserting the
following:
``(D) the Northern Great Plains Regional Authority
established under chapter 5 of subtitle B of the
Consolidated Farm and Rural Development Act.''.
(hh) Section 310(a) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5153(a)) is amended by striking
paragraph (4) and inserting the following:
``(4) Chapter 1 of subtitle B of the Consolidated Farm and
Rural Development Act.''.
(ii) Section 582(d)(1) of the National Flood Insurance Reform Act
of 1994 (42 U.S.C. 5154a(d)(1)) is amended by striking ``section 321(a)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a))''
and inserting ``section 3301(b) of the Consolidated Farm and Rural
Development Act''.
(jj) Section 213(c)(1) of the Biomass Energy and Alcohol Fuels Act
of 1980 (42 U.S.C. 8813(c)(1)) is amended in the first sentence by
striking ``section 309 of the Consolidated Farm and Rural Development
Act or the Rural Development Insurance Fund in section 309A of such
Act'' and inserting ``under section 3401 of the Consolidated Farm and
Rural Development Act or the Rural Development Insurance Fund under
section 3704 of that Act''.
(kk) Section 1323(b)(2) of the Food Security Act of 1985 (Public
Law 99-198; 7 U.S.C. 1932 note) is amended--
(1) in subparagraph (A), by inserting ``and'' at the end;
(2) in subparagraph (B), by striking ``; and'' at the end
and inserting a period; and
(3) by striking subparagraph (C).
Subtitle B--Rural Electrification
SEC. 6101. DEFINITION OF RURAL AREA.
Section 13(3) of the Rural Electrification Act of 1936 (7 U.S.C.
913(A)) is amended by striking subparagraph (A) and inserting the
following:
``(A) any area described in section 3002(28)(A)(i)
of the Consolidated Farm and Rural Development Act;
and''.
SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
TELEPHONE PURPOSES.
Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C.
940c-1(f)) is amended by striking ``2012'' and inserting ``2018''.
SEC. 6103. EXPANSION OF 911 ACCESS.
Section 315(d) of the Rural Electrification Act of 1936 (7 U.S.C.
940e(d)) is amended by striking ``2012'' and inserting ``2018''.
SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
AREAS.
Section 601 of the Rural Electrification Act of 1936 (7 U.S.C.
950bb) is amended--
(1) in subsection (a), by striking ``loans and'' and
inserting ``grants, loans, and'';
(2) in subsection (b), by striking paragraph (3) and
inserting the following:
``(3) Rural area.--The term `rural area' means any area
described in section 3002 of the Consolidated Farm and Rural
Development Act.
``(4) Ultra-high speed service.--The term `ultra-high speed
service' means broadband service operating at a 1 gigabit per
second downstream transmission capacity.'';
(3) in subsection (c)--
(A) in the subsection heading, by striking ``Loans
and'' and inserting ``Grants, Loans, and'';
(B) in paragraph (1), by inserting ``make grants
and'' after ``Secretary shall'';
(C) by striking paragraph (2) and inserting the
following:
``(2) Priority.--
``(A) In general.--In making grants, loans, or loan
guarantees under paragraph (1), the Secretary shall--
``(i) establish not less than 2, and not
more than 4, evaluation periods for each fiscal
year to compare grant, loan, and loan guarantee
applications and to prioritize grants, loans,
and loan guarantees to all or part of rural
communities that do not have residential
broadband service that meets the minimum
acceptable level of broadband service
established under subsection (e);
``(ii) give the highest priority to
applicants that offer to provide broadband
service to the greatest proportion of unserved
rural households or rural households that do
not have residential broadband service that
meets the minimum acceptable level of broadband
service established under subsection (e), as--
``(I) certified by the affected
community, city, county, or designee;
or
``(II) demonstrated on--
``(aa) the broadband map of
the affected State if the map
contains address-level data; or
``(bb) the National
Broadband Map if address-level
data is unavailable; and
``(iii) provide equal consideration to all
qualified applicants, including those that have
not previously received grants, loans, or loan
guarantees under paragraph (1).
``(B) Other.--After giving priority to the
applicants described in subparagraph (A), the Secretary
shall then give priority to projects that serve rural
communities--
``(i) with a population of less than 20,000
permanent residents;
``(ii) experiencing outmigration;
``(iii) with a high percentage of low-
income residents; and
``(iv) that are isolated from other
significant population centers.''; and
(D) by adding at the end the following:
``(3) Grant amounts.--
``(A) Eligibility.--To be eligible for a grant
under this section, the project that is the subject of
the grant shall be carried out in a rural area.
``(B) Maximum.--Except as provided in subparagraph
(D), the amount of any grant made under this section
shall not exceed 50 percent of the development costs of
the project for which the grant is provided.
``(C) Grant rate.--The Secretary shall establish
the grant rate for each project in accordance with
regulations issued by the Secretary that shall provide
for a graduated scale of grant rates that establish
higher rates for projects in communities that have--
``(i) remote locations;
``(ii) low community populations;
``(iii) low-income levels;
``(iv) developed the applications of the
communities with the participation of
combinations of stakeholders, including--
``(I) State, local, and tribal
governments;
``(II) nonprofit institutions;
``(III) institutions of higher
education;
``(IV) private entities; and
``(V) philanthropic organizations;
and
``(v) targeted funding to provide the
minimum acceptable level of broadband service
established under subsection (e) in all or part
of an unserved community that is below that
minimum acceptable level of broadband service.
``(D) Secretarial authority to adjust.--The
Secretary may make grants of up to 75 percent of the
development costs of the project for which the grant is
provided to an eligible entity if the Secretary
determines that the project serves a remote or low-
income area that does not have access to broadband
service from any provider of broadband service
(including the applicant).'';
(4) in subsection (d)--
(A) in paragraph (1)(A)--
(i) in the matter preceding clause (i), by
striking ``loan or'' and inserting ``grant,
loan, or'';
(ii) by striking clause (i) and inserting
the following:
``(i) demonstrate the ability--
``(I) to furnish, improve in order
to meet the minimum acceptable level of
broadband service established under
subsection (e), or extend broadband
service to all or part of an unserved
rural area or an area below the minimum
acceptable level of broadband service
established under subsection (e); or
``(II) to carry out a project under
paragraph (4)(B)(ii);'';
(iii) in clause (ii), by striking ``a loan
application'' and inserting ``an application'';
and
(iv) in clause (iii)--
(I) by striking ``the loan
application'' and inserting ``the
application''; and
(II) by striking ``proceeds from
the loan made or guaranteed under this
section are'' and inserting
``assistance under this section is'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the matter preceding clause
(i)--
(aa) by striking ``the
proceeds of a loan made or
guaranteed'' and inserting
``assistance''; and
(bb) by striking ``for the
loan or loan guarantee'' and
inserting ``of the eligible
entity'';
(II) in clause (i), by striking
``is offered broadband service by not
more than 1 incumbent service
provider'' and inserting ``are unserved
or have service levels below the
minimum acceptable level of broadband
service established under subsection
(e)''; and
(III) in clause (ii), by striking
``3'' and inserting ``2'';
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Adjustments.--
``(i) Increase.--The Secretary may increase
the household percentage requirement under
subparagraph (A)(i) if--
``(I) more than 25 percent of the
costs of the project are funded by
grants made under this section; or
``(II) the proposed service
territory includes 1 or more
communities with a population in excess
of 20,000.
``(ii) Reduction.--The Secretary may reduce
the household percentage requirement under
subparagraph (A)(i)--
``(I) to not less than 15 percent,
if the proposed service territory does
not have a population in excess of
5,000 people; or
``(II) to not less than 18 percent,
if the proposed service territory does
not have a population in excess of
7,500 people.''; and
(iii) in subparagraph (C)--
(I) in the subparagraph heading, by
striking ``3'' and inserting ``2'';
(II) in clause (i), by inserting
``the minimum acceptable level of
broadband service established under
subsection (e) in'' after ``service
to''; and
(III) by striking clause (ii) and
inserting the following:
``(ii) Exceptions.--Clause (i) shall not
apply if--
``(I) the applicant is eligible for
funding under another title of this
Act; or
``(II) the project is being carried
out under paragraph (4)(B)(ii), unless
an incumbent service provider is
providing ultra-high speed service as
of the date of an application for
assistance submitted to the Secretary
under this section.'';
(C) in paragraph (3)--
(i) in subparagraph (A), by striking ``loan
or'' and inserting ``grant, loan, or''; and
(ii) in subparagraph (B), by adding at the
end the following:
``(iii) Information.--Information submitted
under this subparagraph shall be--
``(I) certified by the affected
community, city, county, or designee;
and
``(II) demonstrated on--
``(aa) the broadband map of
the affected State if the map
contains address-level data; or
``(bb) the National
Broadband Map if address-level
data is unavailable.'';
(D) in paragraph (4)--
(i) by striking ``Subject to paragraph
(1),'' and inserting the following:
``(A) In general.--Subject to paragraph (1) and
subparagraph (B),'';
(ii) by striking ``loan or'' and inserting
``grant, loan, or''; and
(iii) by adding at the end the following:
``(B) Pilot programs.--The Secretary shall
establish pilot programs under which the Secretary may,
at the discretion of the Secretary, provide grants,
loans, or loan guarantees under this section to
eligible entities, including interested entities
described in subparagraph (A)--
``(i) to address areas that are unserved or
have service levels below the minimum
acceptable level of broadband service
established under subsection (e); or
``(ii) for the purposes of providing a
proposed service territory with ultra-high
speed service, subject to the conditions that--
``(I) not more than 5 projects, and
not more than 1 project in any State,
shall be carried out under this clause
during the period beginning on the date
of enactment of this Act and ending on
September 30, 2018;
``(II) for each fiscal year, not
more than 10 percent of the funds made
available under subsection (l) shall be
used to carry out this clause;
``(III) for each fiscal year, not
more than 20 percent of the funds made
available under subclause (II) shall be
used for any 1 project; and
``(IV) paragraph (2)(A)(i) shall
apply to the project, unless--
``(aa) the Secretary
determines that no other
project in the State is funded
under this section; and
``(bb) no application for
any other project that could be
funded under this section,
other than under this clause,
is pending in the State.'';
(E) in paragraph (5)--
(i) in the matter preceding subparagraph
(A), by striking ``loan or'' and inserting
``grant, loan, or''; and
(ii) in subparagraph (C), by inserting ``,
and proportion relative to the service
territory,'' after ``estimated number'';
(F) in paragraph (6), by striking ``loan or'' and
inserting ``grant, loan, or'';
(G) in paragraph (7), by striking ``a loan
application'' and inserting ``an application''; and
(H) by adding at the end the following:
``(8) Transparency and reporting.--The Secretary--
``(A) shall require any entity receiving assistance
under this section to submit quarterly, in a format
specified by the Secretary, a report that describes--
``(i) the use by the entity of the
assistance, including new equipment and
capacity enhancements that support high-speed
broadband access for educational institutions,
health care providers, and public safety
service providers (including the estimated
number of end users who are currently using or
forecasted to use the new or upgraded
infrastructure); and
``(ii) the progress towards fulfilling the
objectives for which the assistance was
granted, including--
``(I) the number and location of
residences and businesses that will
receive new broadband service, existing
network service improvements, and
facility upgrades resulting from the
Federal assistance;
``(II) the speed of broadband
service;
``(III) the price of broadband
service;
``(IV) any changes in broadband
service adoption rates, including new
subscribers generated from demand-side
projects; and
``(V) any other metrics the
Secretary determines to be appropriate;
``(B) shall maintain a fully searchable database,
accessible on the Internet at no cost to the public,
that contains, at a minimum--
``(i) a list of each entity that has
applied for assistance under this section;
``(ii) a description of each application,
including the status of each application;
``(iii) for each entity receiving
assistance under this section--
``(I) the name of the entity;
``(II) the type of assistance being
received;
``(III) the purpose for which the
entity is receiving the assistance; and
``(IV) each quarterly report
submitted under subparagraph (A); and
``(iv) such other information as is
sufficient to allow the public to understand
and monitor assistance provided under this
section;
``(C) shall, in addition to other authority under
applicable law, establish written procedures for all
broadband programs administered by the Secretary that,
to the maximum extent practicable--
``(i) recover funds from loan defaults;
``(ii)(I) deobligate awards to grantees
that demonstrate an insufficient level of
performance (including failure to meet build-
out requirements, service quality issues, or
other metrics determined by the Secretary) or
wasteful or fraudulent spending; and
``(II) award those funds, on a competitive
basis, to new or existing applicants consistent
with this section; and
``(iii) consolidate and minimize overlap
among the programs;
``(D) with respect to an application for assistance
under this section, shall--
``(i) promptly post on the website of the
Rural Utility Service--
``(I) an announcement that
identifies--
``(aa) each applicant;
``(bb) the amount and type
of support requested by each
applicant; and
``(II) a list of the census block
groups or proposed service territory,
in a manner specified by the Secretary,
that the applicant proposes to service;
``(ii) provide not less than 15 days for
broadband service providers to voluntarily
submit information about the broadband services
that the providers offer in the groups or
tracts listed under clause (i)(II) so that the
Secretary may assess whether the applications
submitted meet the eligibility requirements
under this section; and
``(iii) if no broadband service provider
submits information under clause (ii), consider
the number of providers in the group or tract
to be established by reference to--
``(I) the most current National
Broadband Map of the National
Telecommunications and Information
Administration; or
``(II) any other data regarding the
availability of broadband service that
the Secretary may collect or obtain
through reasonable efforts; and
``(E) may establish additional reporting and
information requirements for any recipient of any
assistance under this section so as to ensure
compliance with this section.'';
(5) in subsection (e)--
(A) by redesignating paragraph (2) as paragraph
(3); and
(B) by striking paragraph (1) and inserting the
following:
``(1) In general.--Subject to paragraph (2), for purposes
of this section, the minimum acceptable level of broadband
service for a rural area shall be at least--
``(A) a 4-Mbps downstream transmission capacity;
and
``(B) a 1-Mbps upstream transmission capacity.
``(2) Adjustments.--
``(A) In general.--At least once every 2 years, the
Secretary shall review, and may adjust, the minimum
acceptable level of broadband service established under
paragraph (1) to ensure that high-quality, cost-
effective broadband service is provided to rural areas
over time.
``(B) Considerations.--In making an adjustment to
the minimum acceptable level of broadband service under
subparagraph (A), the Secretary may consider
establishing different transmission rates for fixed
broadband service and mobile broadband service.'';
(6) in subsection (f), by striking ``make a loan or loan
guarantee'' and inserting ``provide assistance'';
(7) in subsection (g), by striking paragraph (2) and
inserting the following:
``(2) Terms.--In determining the term and conditions of a
loan or loan guarantee, the Secretary may--
``(A) consider whether the recipient would be
serving an area that is unserved; and
``(B) if the Secretary makes a determination in the
affirmative under subparagraph (A), establish a limited
initial deferral period or comparable terms necessary
to achieve the financial feasibility and long-term
sustainability of the project.'';
(8) in subsection (j)--
(A) in the matter preceding paragraph (1), by
striking ``loan and loan guarantee'';
(B) in paragraph (1)--
(i) by inserting ``grants and'' after
``number of''; and
(ii) by inserting ``, including any loan
terms or conditions for which the Secretary
provided additional assistance to unserved
areas'' before the semicolon at the end;
(C) in paragraph (2)--
(i) in subparagraph (A), by striking
``loan''; and
(ii) in subparagraph (B), by striking
``loans and'' and inserting ``grants, loans,
and'';
(D) in paragraph (3), by striking ``loan'';
(E) in paragraph (5), by striking ``and'' at the
end;
(F) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(G) by adding at the end the following:
``(7) the overall progress towards fulfilling the goal of
improving the quality of rural life by expanding rural
broadband access, as demonstrated by metrics, including--
``(A) the number of residences and businesses
receiving new broadband services;
``(B) network improvements, including facility
upgrades and equipment purchases;
``(C) average broadband speeds and prices on a
local and statewide basis;
``(D) any changes in broadband adoption rates; and
``(E) any specific activities that increased high
speed broadband access for educational institutions,
health care providers. and public safety service
providers.''; and
(9) by redesignating subsections (k) and (l) as subsections
(l) and (m), respectively;
(10) by inserting after subsection (j) the following:
``(k) Broadband Buildout Data.--
``(1) In general.--As a condition of receiving a grant,
loan, or loan guarantee under this section, a recipient of
assistance shall provide to the Secretary address-level
broadband buildout data that indicates the location of new
broadband service that is being provided or upgraded within the
service territory supported by the grant, loan, or loan
guarantee--
``(A) for purposes of inclusion in the semiannual
updates to the National Broadband Map that is managed
by the National Telecommunications and Information
Administration (referred to in this subsection as the
`Administration'); and
``(B) not later than 30 days after the earlier of--
``(i) the date of completion of any project
milestone established by the Secretary; or
``(ii) the date of completion of the
project.
``(2) Address-level data.--Effective beginning on the date
the Administration receives data described in paragraph (1),
the Administration shall use only address-level broadband
buildout data for the National Broadband Map.
``(3) Corrections.--
``(A) In general.--The Secretary shall submit to
the Administration any correction to the National
Broadband Map that is based on the actual level of
broadband coverage within the rural area, including any
requests for a correction from an elected or economic
development official.
``(B) Incorporation.--Not later than 30 days after
the date on which the Administration receives a
correction submitted under subparagraph (A), the
Administration shall incorporate the correction into
the National Broadband Map.
``(C) Use.--If the Secretary has submitted a
correction to the Administration under subparagraph
(A), but the National Broadband Map has not been
updated to reflect the correct by the date on which the
Secretary is making a grant or loan award decision
under this section, the Secretary may use the
correction submitted under that subparagraph for
purposes of make the grant or loan award decision.'';
(11) subsection (l) (as redesignated by paragraph (9))--
(A) in paragraph (1)--
(i) by striking ``$25,000,000'' and
inserting ``$50,000,000''; and
(ii) by striking ``2012'' and inserting
``2018''; and
(B) in paragraph (2)(A)--
(i) in clause (i), by striking ``and'' at
the end;
(ii) in clause (ii), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(iii) set aside at least 1 percent to be
used for--
``(I) conducting oversight under
this section; and
``(II) implementing accountability
measures and related activities
authorized under this section.''; and
(12) in subsection (m) (as redesignated by paragraph (9))--
(A) by striking ``loan or'' and inserting ``grant,
loan, or''; and
(B) by striking ``2012'' and inserting ``2018''.
Subtitle C--Miscellaneous
SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.
(a) Authorization of Appropriations.--Section 2335A of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is
amended by striking ``2012'' and inserting ``2018''.
(b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
U.S.C. 950aaa note) is amended by striking ``2012'' and inserting
``2018''.
SEC. 6202. DEFINITION OF RURAL AREA FOR PURPOSES OF THE HOUSING ACT OF
1949.
The second sentence of section 520 of the Housing Act of 1949 (42
U.S.C. 1490) is amended--
(1) by striking ``1990 or 2000 decennial census shall
continue to be so classified until the receipt of data from the
decennial census in the year 2010'' and inserting ``1990, 2000,
or 2010 decennial census, and any area deemed to be a `rural
area' for purposes of this title under any other provision of
law at any time during the period beginning January 1, 2000,
and ending December 31, 2010, shall continue to be so
classified until the receipt of data from the decennial census
in the year 2020''; and
(2) by striking ``25,000'' and inserting ``35,000''.
SEC. 6203. RURAL ENERGY SAVINGS PROGRAM.
Subtitle E of title VI of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 424) is amended by adding at
the end the following:
``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.
``(a) Purpose.--The purpose of this section is to create jobs,
promote rural development, and help rural families and small businesses
achieve cost savings by providing loans to qualified consumers to
implement durable cost-effective energy efficiency measures.
``(b) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any public power district, public utility
district, or similar entity, or any electric
cooperative described in section 501(c)(12) or
1381(a)(2) of the Internal Revenue Code of 1986, that
borrowed and repaid, prepaid, or is paying an electric
loan made or guaranteed by the Rural Utilities Service
(or any predecessor agency);
``(B) any entity primarily owned or controlled by 1
or more entities described in subparagraph (A); or
``(C) any other entity that is an eligible borrower
of the Rural Utility Service, as determined under
section 1710.101 of title 7, Code of Federal
Regulations (or a successor regulation).
``(2) Energy efficiency measures.--The term `energy
efficiency measures' means, for or at property served by an
eligible entity, structural improvements and investments in
cost-effective, commercial technologies to increase energy
efficiency.
``(3) Qualified consumer.--The term `qualified consumer'
means a consumer served by an eligible entity that has the
ability to repay a loan made under subsection (d), as
determined by the eligible entity.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Administrator of the Rural
Utilities Service.
``(c) Loans to Eligible Entities.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall make loans to eligible entities that agree to use the
loan funds to make loans to qualified consumers for the purpose
of implementing energy efficiency measures.
``(2) Requirements.--
``(A) In general.--As a condition of receiving a
loan under this subsection, an eligible entity shall--
``(i) establish a list of energy efficiency
measures that is expected to decrease energy
use or costs of qualified consumers;
``(ii) prepare an implementation plan for
use of the loan funds, including use of any
interest to be received pursuant to subsection
(d)(1)(A);
``(iii) provide for appropriate measurement
and verification to ensure--
``(I) the effectiveness of the
energy efficiency loans made by the
eligible entity; and
``(II) that there is no conflict of
interest in carrying out this section;
and
``(iv) demonstrate expertise in effective
use of energy efficiency measures at an
appropriate scale.
``(B) Revision of list of energy efficiency
measures.--Subject to the approval of the Secretary, an
eligible entity may update the list required under
subparagraph (A)(i) to account for newly available
efficiency technologies.
``(C) Existing energy efficiency programs.--An
eligible entity that, at any time before the date that
is 60 days after the date of enactment of this section,
has established an energy efficiency program for
qualified consumers may use an existing list of energy
efficiency measures, implementation plan, or
measurement and verification system of that program to
satisfy the requirements of subparagraph (A) if the
Secretary determines the list, plan, or systems are
consistent with the purposes of this section.
``(3) No interest.--A loan under this subsection shall bear
no interest.
``(4) Repayment.--With respect to a loan under paragraph
(1)--
``(A) the term shall not exceed 20 years from the
date on which the loan is closed; and
``(B) except as provided in paragraph (6), the
repayment of each advance shall be amortized for a
period not to exceed 10 years.
``(5) Amount of advances.--Any advance of loan funds to an
eligible entity in any single year shall not exceed 50 percent
of the approved loan amount.
``(6) Special advance for start-up activities.--
``(A) In general.--In order to assist an eligible
entity in defraying the appropriate start-up costs (as
determined by the Secretary) of establishing new
programs or modifying existing programs to carry out
subsection (d), the Secretary shall allow an eligible
entity to request a special advance.
``(B) Amount.--No eligible entity may receive a
special advance under this paragraph for an amount that
is greater than 4 percent of the loan amount received
by the eligible entity under paragraph (1).
``(C) Repayment.--Repayment of the special
advance--
``(i) shall be required during the 10-year
period beginning on the date on which the
special advance is made; and
``(ii) at the election of the eligible
entity, may be deferred to the end of the 10-
year period.
``(7) Limitation.--All special advances shall be made under
a loan described in paragraph (1) during the first 10 years of
the term of the loan.
``(d) Loans to Qualified Consumers.--
``(1) Terms of loans.--Loans made by an eligible entity to
qualified consumers using loan funds provided by the Secretary
under subsection (c)--
``(A) may bear interest, not to exceed 3 percent,
to be used for purposes that include--
``(i) to establish a loan loss reserve; and
``(ii) to offset personnel and program
costs of eligible entities to provide the
loans;
``(B) shall finance energy efficiency measures for
the purpose of decreasing energy usage or costs of the
qualified consumer by an amount that ensures, to the
maximum extent practicable, that a loan term of not
more than 10 years will not pose an undue financial
burden on the qualified consumer, as determined by the
eligible entity;
``(C) shall not be used to fund purchases of, or
modifications to, personal property unless the personal
property is or becomes attached to real property
(including a manufactured home) as a fixture;
``(D) shall be repaid through charges added to the
electric bill for the property for, or at which, energy
efficiency measures are or will be implemented, on the
condition that this requirement does not prohibit--
``(i) the voluntary prepayment of a loan by
the owner of the property; or
``(ii) the use of any additional repayment
mechanisms that are--
``(I) demonstrated to have
appropriate risk mitigation features,
as determined by the eligible entity;
or
``(II) required if the qualified
consumer is no longer a customer of the
eligible entity; and
``(E) shall require an energy audit by an eligible
entity to determine the impact of proposed energy
efficiency measures on the energy costs and consumption
of the qualified consumer.
``(2) Contractors.--In addition to any other qualified
general contractor, eligible entities may serve as general
contractors.
``(e) Contract for Measurement and Verification, Training, and
Technical Assistance.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, the Secretary--
``(A) shall establish a plan for measurement and
verification, training, and technical assistance of the
program; and
``(B) may enter into 1 or more contracts with a
qualified entity for the purposes of--
``(i) providing measurement and
verification activities; and
``(ii) developing a program to provide
technical assistance and training to the
employees of eligible entities to carry out
this section.
``(2) Use of subcontractors authorized.--A qualified entity
that enters into a contract under paragraph (1) may use
subcontractors to assist the qualified entity in carrying out
the contract.
``(f) Fast Start Demonstration Projects.--
``(1) In general.--The Secretary shall offer to enter into
agreements with eligible entities (or groups of eligible
entities) that have energy efficiency programs described in
subsection (c)(2)(C) to establish an energy efficiency loan
demonstration projects consistent with the purposes of this
section.
``(2) Evaluation criteria.--In determining which eligible
entities to award loans under this section, the Secretary shall
take into consideration eligible entities that--
``(A) implement approaches to energy audits and
investments in energy efficiency measures that yield
measurable and predictable savings;
``(B) use measurement and verification processes to
determine the effectiveness of energy efficiency loans
made by eligible entities;
``(C) include training for employees of eligible
entities, including any contractors of such entities,
to implement or oversee the activities described in
subparagraphs (A) and (B);
``(D) provide for the participation of a majority
of eligible entities in a State;
``(E) reduce the need for generating capacity;
``(F) provide efficiency loans to--
``(i) in the case of a single eligible
entity, not fewer than 20,000 consumers; or
``(ii) in the case of a group of eligible
entities, not fewer than 80,000 consumers; and
``(G) serve areas in which, as determined by the
Secretary, a large percentage of consumers reside--
``(i) in manufactured homes; or
``(ii) in housing units that are more than
50 years old.
``(3) Deadline for implementation.--To the maximum extent
practicable, the Secretary shall enter into agreements
described in paragraph (1) by not later than 90 days after the
date of enactment of this section.
``(4) Effect on availability of loans nationally.--Nothing
in this subsection shall delay the availability of loans to
eligible entities on a national basis beginning not later than
180 days after the date of enactment of this section.
``(5) Additional demonstration project authority.--
``(A) In general.--The Secretary may conduct
demonstration projects in addition to the project
required by paragraph (1).
``(B) Inapplicability of certain criteria.--The
additional demonstration projects may be carried out
without regard to subparagraphs (D), (F), or (G) of
paragraph (2).
``(g) Additional Authority.--The authority provided in this section
is in addition to any other authority of the Secretary to offer loans
under any other law.
``(h) Effective Period.--Subject to the availability of funds and
except as otherwise provided in this section, the loans and other
expenditures required to be made under this section shall be available
until expended, with the Secretary authorized to make new loans as
loans are repaid.
``(i) Regulations.--
``(1) In general.--Except as otherwise provided in this
subsection, not later than 180 days after the date of enactment
of this section, the Secretary shall promulgate such
regulations as are necessary to implement this section.
``(2) Procedure.--The promulgation of the regulations and
administration of this section shall be made without regard
to--
``(A) 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
``(B) chapter 35 of title 44, United States Code
(commonly known as the `Paperwork Reduction Act').
``(3) Congressional review of agency rulemaking.--In
carrying out this section, the Secretary shall use the
authority provided under section 808 of title 5, United States
Code.
``(4) Interim regulations.--Notwithstanding paragraphs (1)
and (2), to the extent regulations are necessary to carry out
any provision of this section, the Secretary shall implement
such regulations through the promulgation of an interim
rule.''.
SEC. 6204. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT
APPLICATIONS.
(a) In General.--The Secretary shall use funds made available under
subsection (b) to provide funds for applications that are pending on
the date of enactment of this Act in accordance with the terms and
conditions of section 6029 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 1955).
(b) Funding.--Notwithstanding any other provision of law, beginning
in fiscal year 2014, of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section $150,000,000, to
remain available until expended.
SEC. 6205. STUDY OF RURAL TRANSPORTATION ISSUES.
(a) In General.--The Secretary and the Secretary of Transportation
shall jointly conduct a study of transportation issues regarding the
movement of agricultural products, domestically produced renewable
fuels, and domestically produced resources for the production of
electricity for rural areas of the United States, and economic
development in those areas.
(b) Inclusions.--The study shall include an examination of--
(1) the importance of freight transportation, including
rail, truck, and barge, to--
(A) the delivery of equipment, seed, fertilizer,
and other products important to the development of
agricultural commodities and products;
(B) the movement of agricultural commodities and
products to market;
(C) the delivery of ethanol and other renewable
fuels;
(D) the delivery of domestically produced resources
for use in the generation of electricity for rural
areas;
(E) the location of grain elevators, ethanol
plants, and other facilities;
(F) the development of manufacturing facilities in
rural areas; and
(G) the vitality and economic development of rural
communities;
(2) the sufficiency in rural areas of transportation
capacity, the sufficiency of competition in the transportation
system, the reliability of transportation services, and the
reasonableness of transportation rates;
(3) the sufficiency of facility investment in rural areas
necessary for efficient and cost-effective transportation; and
(4) the accessibility to shippers in rural areas of Federal
processes for the resolution of grievances arising within
various transportation modes.
(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Secretary of
Transportation shall submit a report to Congress that contains the
results of the study required under subsection (a).
(d) Periodic Updates.--The Secretary and the Secretary of
Transportation shall publish triennially an updated version of the
study described in subsection (a).
SEC. 6206. AGRICULTURAL TRANSPORTATION POLICY.
Section 203 of the Agricultural Marketing Act of 1946 (7 U.S.C.
1622) is amended by striking subsection (j) and inserting the
following:
``(j) Policy Development Proceedings.--The Secretary shall
participate on behalf of the interests of agriculture and rural America
in all policy development proceedings or other proceedings of the
Surface Transportation Board that may establish freight rail
transportation policy affecting agriculture and rural America.''.
SEC. 6207. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.
Section 231(b) of the Agricultural Risk Protection Act of 2000 (7
U.S.C. 1632a(b)) is amended--
(1) in paragraph (6)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) veteran farmers or ranchers (as defined in
section 2501(e) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(e))).''; and
(2) in paragraph (7)(B), by striking ``2012'' and inserting
``2017''.
TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 7101. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
(a) Authorization of Appropriations.--Section 1408(h) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3123(h)) is amended by striking ``2012'' and inserting
``2018''.
(b) Duties of National Agricultural Research, Extension, Education,
and Economics Advisory Board.--Section 1408(c) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3123(c)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4)(C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(5) consult with industry groups on agricultural
research, extension, education, and economics, and make
recommendations to the Secretary based on that consultation.''.
SEC. 7102. SPECIALTY CROP COMMITTEE.
Section 1408A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3123a) is amended--
(1) in subsection (b)--
(A) by striking ``Individuals'' and inserting the
following:
``(1) Eligibility.--Individuals'';
(B) by striking ``Members'' and inserting the
following:
``(2) Service.--Members''; and
(C) by adding at the end the following:
``(3) Diversity.--Membership of the specialty crops
committee shall reflect diversity in the specialty crops
represented.'';
(2) in subsection (c), by adding at the end the following:
``(6) Analysis of alignment of specialty crop committee
recommendations with specialty crop research initiative grants
awarded under section 412(d) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7632).'';
(3) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively;
(4) by inserting after subsection (c) the following:
``(d) Consultation With Specialty Crop Industry.--In studying the
scope and effectiveness of programs under subsection (a), the specialty
crops committee shall consult on an ongoing basis with diverse sectors
of the specialty crop industry.''; and
(5) in subsection (f) (as redesignated by paragraph (3)),
by striking ``subsection (d)'' and inserting ``subsection
(e)''.
SEC. 7103. VETERINARY SERVICES GRANT PROGRAM.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by inserting after section 1415A (7 U.S.C.
3151a) the following:
``SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.
``(a) Definitions.--In this section:
``(1) Qualified entity.--The term `qualified entity'
means--
``(A) a for-profit or nonprofit entity located in
the United States that operates a veterinary clinic
providing veterinary services--
``(i) in a rural area, as defined in
section 343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)); and
``(ii) in response to a veterinarian
shortage situation;
``(B) a State, national, allied, or regional
veterinary organization or specialty board recognized
by the American Veterinary Medical Association;
``(C) a college or school of veterinary medicine
accredited by the American Veterinary Medical
Association;
``(D) a university research foundation or
veterinary medical foundation;
``(E) a department of veterinary science or
department of comparative medicine accredited by the
Department of Education;
``(F) a State agricultural experiment station; and
``(G) a State, local, or tribal government agency.
``(2) Veterinarian shortage situation.--The term
`veterinarian shortage situation' means a veterinarian shortage
situation determined by the Secretary under section 1415A(b).
``(b) Establishment of Program.--
``(1) Competitive grants.--The Secretary shall carry out a
program to make competitive grants to qualified entities that
carry out programs or activities described in paragraph (2) for
the purpose of developing, implementing, and sustaining
veterinary services.
``(2) Eligibility requirements.--To be eligible to receive
a grant described in paragraph (1), a qualified entity shall
carry out programs or activities that the Secretary determines
will--
``(A) substantially relieve veterinarian shortage
situations;
``(B) support or facilitate private veterinary
practices engaged in public health activities; or
``(C) support or facilitate the practices of
veterinarians who are participating in or have
successfully completed a service requirement under
section 1415A(a)(2).
``(c) Award Processes and Preferences.--
``(1) Application, evaluation, and input processes.--In
administering the grant program under this section, the
Secretary shall--
``(A) use an appropriate application and evaluation
process, as determined by the Secretary; and
``(B) seek the input of interested persons.
``(2) Grant preferences.--In selecting recipients of grants
to be used for any of the purposes described in paragraphs (2)
through (6) of subsection (d), the Secretary shall give a
preference to qualified entities that provide documentation of
coordination with other qualified entities, with respect to any
such purpose.
``(3) Additional preferences.--In awarding grants under
this section, the Secretary may develop additional preferences
by taking into account the amount of funds available for grants
and the purposes for which the grant funds will be used.
``(4) Applicability of other provisions.--Sections 1413B,
1462(a), 1469(a)(3), 1469(c), and 1470 apply to the
administration of the grant program under this section.
``(d) Use of Grants To Relieve Veterinarian Shortage Situations and
Support Veterinary Services.--A qualified entity may use funds provided
by grants under this section to relieve veterinarian shortage
situations and support veterinary services for the following purposes:
``(1) To assist veterinarians with establishing or
expanding practices for the purpose of--
``(A) equipping veterinary offices;
``(B) sharing in the reasonable overhead costs of
the practices, as determined by the Secretary; or
``(C) establishing mobile veterinary facilities in
which a portion of the facilities will address
education or extension needs.
``(2) To promote recruitment (including for programs in
secondary schools), placement, and retention of veterinarians,
veterinary technicians, students of veterinary medicine, and
students of veterinary technology.
``(3) To allow veterinary students, veterinary interns,
externs, fellows, and residents, and veterinary technician
students to cover expenses (other than the types of expenses
described in 1415A(c)(5)) to attend training programs in food
safety or food animal medicine.
``(4) To establish or expand accredited veterinary
education programs (including faculty recruitment and
retention), veterinary residency and fellowship programs, or
veterinary internship and externship programs carried out in
coordination with accredited colleges of veterinary medicine.
``(5) To assess veterinarian shortage situations and the
preparation of applications submitted to the Secretary for
designation as a veterinarian shortage situation under section
1415A(b).
``(6) To provide continuing education and extension,
including veterinary telemedicine and other distance-based
education, for veterinarians, veterinary technicians, and other
health professionals needed to strengthen veterinary programs
and enhance food safety.
``(e) Special Requirements for Certain Grants.--
``(1) Terms of service requirements.--
``(A) In general.--Grants provided under this
section for the purpose specified in subsection (d)(1)
shall be subject to an agreement between the Secretary
and the grant recipient that includes a required term
of service for the recipient, as established by the
Secretary.
``(B) Considerations.--In establishing a term of
service under subparagraph (A), the Secretary shall
consider only--
``(i) the amount of the grant awarded; and
``(ii) the specific purpose of the grant.
``(2) Breach remedies.--
``(A) In general.--An agreement under paragraph (1)
shall provide remedies for any breach of the agreement
by the grant recipient, including repayment or partial
repayment of the grant funds, with interest.
``(B) Waiver.--The Secretary may grant a waiver of
the repayment obligation for breach of contract if the
Secretary determines that the grant recipient
demonstrates extreme hardship or extreme need.
``(C) Treatment of amounts recovered.--Funds
recovered under this paragraph shall--
``(i) be credited to the account available
to carry out this section; and
``(ii) remain available until expended.
``(f) Cost-Sharing Requirements.--
``(1) Recipient share.--Subject to paragraph (2), to be
eligible to receive a grant under this section, a qualified
entity shall provide matching non-Federal funds, either in cash
or in-kind support, in an amount equal to not less than 25
percent of the Federal funds provided by the grant.
``(2) Waiver.--The Secretary may establish, by regulation,
conditions under which the cost-sharing requirements of
paragraph (1) may be reduced or waived.
``(g) Prohibition on Use of Grant Funds for Construction.--Funds
made available for grants under this section may not be used--
``(1) to construct a new building or facility; or
``(2) to acquire, expand, remodel, or alter an existing
building or facility, including site grading and improvement
and architect fees.
``(h) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall promulgate regulations
to carry out this section.
``(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $10,000,000 for
fiscal year 2014 and each fiscal year thereafter, to remain available
until expended.''.
SEC. 7104. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE SCIENCES
EDUCATION.
Section 1417(m) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3152(m)) is amended by
striking ``section $60,000,000'' and all that follows and inserting the
following: ``section--
``(1) $60,000,000 for each of fiscal years 1990 through
2013; and
``(2) $40,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7105. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
(1) in the section heading, by inserting ``agricultural and
food'' before ``policy'';
(2) in subsection (a), in the matter preceding paragraph
(1)--
(A) by striking ``Secretary may'' and inserting
``Secretary shall, acting through the Office of the
Chief Economist,''; and
(B) by inserting ``with a history of providing
unbiased, nonpartisan economic analysis to Congress''
after ``subsection (b)'';
(3) in subsection (b), by striking ``other research
institutions'' and all that follows through ``shall be
eligible'' and inserting ``other public research institutions
and organizations shall be eligible'';
(4) in subsection (c)--
(A) in the matter preceding paragraph (1), by
inserting ``, with preference given to policy research
centers having extensive databases, models, and
demonstrated experience in providing Congress with
agricultural market projections, rural development
analysis, agricultural policy analysis, and baseline
projections at the farm, multiregional, national, and
international levels, including information, analysis,
and research relating to drought mitigation,'' after
``with this section''; and
(B) in paragraph (2), by inserting ``applied''
after ``theoretical''; and
(5) by striking subsection (d) and inserting the following:
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for fiscal year 2013
and each fiscal year thereafter.''.
SEC. 7106. EDUCATION GRANTS TO ALASKA NATIVE SERVING INSTITUTIONS AND
NATIVE HAWAIIAN SERVING INSTITUTIONS.
Section 1419B of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3156) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``(or grants
without regard to any requirement for competition)'';
and
(B) in paragraph (3), by striking ``2012'' and
inserting ``2018''; and
(2) in subsection (b)(1), by striking ``(or grants without
regard to any requirement for competition)''; and
(3) in paragraph (3), by striking ``2012'' and inserting
``2018''.
SEC. 7107. NUTRITION EDUCATION PROGRAM.
Section 1425(f) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3175(f)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7108. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.
Section 1433 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by striking the
section designation and heading and all that follows through subsection
(a) and inserting the following:
``SEC. 1433. APPROPRIATIONS FOR CONTINUING ANIMAL HEALTH AND DISEASE
RESEARCH PROGRAMS.
``(a) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to support continuing animal health and disease research
programs at eligible institutions such sums as are necessary,
but not to exceed $25,000,000 for each of fiscal years 1991
through 2018.
``(2) Use of funds.--Funds made available under this
section shall be used--
``(A) to meet the expenses of conducting animal
health and disease research, publishing and
disseminating the results of such research, and
contributing to the retirement of employees subject to
the Act of March 4, 1940 (7 U.S.C. 331);
``(B) for administrative planning and direction;
and
``(C) to purchase equipment and supplies necessary
for conducting research described in subparagraph
(A).''.
SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
UNIVERSITY.
Section 1447(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7110. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
AND EQUIPMENT AT INSULAR AREA LAND-GRANT INSTITUTIONS.
Section 1447B(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b-2(d)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7111. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
AND EDUCATION PROGRAMS.
Section 1459A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3292b) is amended by striking
subsection (c) and inserting the following:
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal years
1999 through 2013; and
``(2) $5,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7113. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended in each of
subsections (a) and (b) by striking ``2012'' each place it appears and
inserting ``2018''.
SEC. 7114. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
``2012'' and inserting ``2018''.
SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS.
(a) Authorization of Appropriations and Termination.--Section 1473D
of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3319d) is amended--
(1) in subsection (a), by striking ``2012'' and inserting
``2018''; and
(2) by adding at the end the following:
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal years
2012 and 2013; and
``(2) $1,000,000 for each of fiscal years 2014 through
2018.''.
(b) Competitive Grants.--Section 1473D(c)(1) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3319d(c)(1)) is amended by striking ``use such research funding,
special or competitive grants, or other means, as the Secretary
determines,'' and inserting ``make competitive grants''.
SEC. 7116. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.
Section 1473F(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3319i(b)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7117. AQUACULTURE ASSISTANCE PROGRAMS.
(a) Competitive Grants.--Section 1475(b) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3322(b)) is amended in the matter preceding paragraph (1) by
inserting ``competitive'' before ``grants''.
(b) Authorization of Appropriations.--Section 1477 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3324) is amended to read as follows:
``SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subtitle--
``(1) $7,500,000 for each of fiscal years 1991 through
2013; and
``(2) $5,000,000 for each of fiscal years 2014 through
2018.
``(b) Prohibition on Use.--Funds made available under this section
may not be used to acquire or construct a building.''.
SEC. 7118. RANGELAND RESEARCH PROGRAMS.
Section 1483(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by
striking ``subtitle'' and all that follows and inserting the following:
``subtitle--
``(1) $10,000,000 for each of fiscal years 1991 through
2013; and
``(2) $2,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7119. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.
Section 1484(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by
striking ``response such sums as are necessary'' and all that follows
and inserting the following: ``response--
``(1) such sums as are necessary for each of fiscal years
2002 through 2013; and
``(2) $20,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7120. DISTANCE EDUCATION AND RESIDENT INSTRUCTION GRANTS PROGRAM
FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.
(a) Distance Education Grants for Insular Areas.--
(1) Competitive grants.--Section 1490(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3362(a)) is amended by striking ``or
noncompetitive''.
(2) Authorization of appropriations.--Section 1490(f) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by striking
``section'' and all that follows and inserting the following:
``section--
``(1) such sums as are necessary for each of fiscal years
2002 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014 through
2018.''.
(b) Resident Instruction Grants for Insular Areas.--Section 1491(c)
of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3363(c)) is amended by striking ``such sums as
are necessary'' and all that follows and inserting the following: ``to
carry out this section--
``(1) such sums as are necessary for each of fiscal years
2002 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014 through
2018.''.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS.
Section 1624 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5814) is amended--
(1) by striking ``$40,000,000 for each fiscal year''; and
(2) by inserting ``$40,000,000 for each of fiscal years
2014 through 2018'' after ``chapter''.
SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS.
Section 1627 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5821) is amended by striking subsection (d) and
inserting the following:
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section through the National Institute
of Food and Agriculture $20,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER
PROGRAM.
Section 1628 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5831) is amended by striking subsection (f) and
inserting the following:
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2014 through 2018.''.
SEC. 7204. NATIONAL TRAINING PROGRAM.
Section 1629 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5832) is amended by striking subsection (i) and
inserting the following:
``(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the National Training Program $20,000,000 for
each of fiscal years 2014 through 2018.''.
SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5844(b)) is amended--
(1) by striking ``such funds as may be necessary''; and
(2) by striking ``subtitle'' and all that follows and
inserting the following: ``subtitle--
``(1) such sums as are necessary for each of fiscal years
1991 through 2013; and
``(2) $1,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7206. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5855(c)) is amended by inserting ``and $1,000,000
for each of fiscal years 2014 through 2018'' before the period at the
end.
SEC. 7207. AGRICULTURAL GENOME INITIATIVE.
Section 1671(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5924(c)) is amended by adding at the end the
following:
``(3) Consortia.--The Secretary shall encourage awards
under this section to consortia of eligible entities.''.
SEC. 7208. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925) is amended--
(1) in the first sentence of subsection (a), by striking
``subsections (e) through (i) of'';
(2) in subsection (b)(2)--
(A) by striking the first sentence and inserting
the following:
``(A) In general.--To facilitate the making of
research and extension grants under subsection (d), the
Secretary may appoint a task force to make
recommendations to the Secretary.''; and
(B) in the second sentence, by striking ``The
Secretary may not incur costs in excess of $1,000 for
any fiscal year in connection with each'' and inserting
the following:
``(B) Costs.--The Secretary may not incur costs in
excess of $1,000 for any fiscal year in connection with
a'';
(3) in subsection (e)--
(A) by striking paragraphs (1) through (5), (7),
(8), (11) through (43), (47), (48), (51), and (52);
(B) by redesignating paragraphs (6), (9), (10),
(44), (45), (46), (49), and (50) as paragraphs (1),
(2), (3), (4), (5), (6), (7), and (8), respectively;
and
(C) by adding at the end the following:
``(9) Cervidae initiative.--Research and extension grants
may be made under this section to support collaborative
research focusing on the development of viable strategies for
the prevention, diagnosis, and treatment of parasites and
diseases of farmed deer and elk such as epizootic hemorrhagic
disease and chronic wasting disease and the mapping of the
cervid genome.
``(10) Corn, soybean meal, cereal grains, and grain
byproducts research and extension.--Research and extension
grants may be made under this section for the purpose of
carrying out or enhancing research to improve the
digestibility, nutritional value, and efficiency of use of
corn, soybean meal, cereal grains, and grain byproducts for the
poultry and food animal production industries.'';
(4) by striking subsections (f), (g), and (i);
(5) by redesignating subsections (h) and (j) as subsections
(j) and (k), respectively;
(6) by inserting after subsection (e) the following:
``(f) Pulse Health Initiative.--
``(1) Definitions.--In this subsection;
``(A) Initiative.--The term `Initiative' means the
pulse health initiative established by paragraph (2).
``(B) Pulse.--The term `pulse' means dry beans, dry
peas, lentils, and chickpeas or garbanzo beans.
``(2) Establishment.--Notwithstanding any other provision
of law, during the period beginning on the date of enactment of
the Agriculture Reform, Food, and Jobs Act of 2013 and ending
on September 30, 2018, the Secretary shall carry out a pulse
crop health and extension initiative to address the critical
needs of the pulse crop industry by developing and
disseminating science-based tools and information, including--
``(A) research in health and nutrition, such as--
``(i) identifying global dietary patterns
of pulse crops in relation to population
health;
``(ii) researching pulse crop diets and the
ability of the diets to reduce obesity and
associated chronic disease (including
cardiovascular disease, type 2 diabetes, and
cancer); and
``(iii) identifying the underlying
mechanisms of the health benefits of pulse crop
consumption (including disease biomarkers,
bioactive components, and relevant plant
genetic components to enhance the health
promoting value of pulse crops);
``(B) research in functionality, such as--
``(i) improving the functional properties
of pulse crops and pulse fractions;
``(ii) developing new and innovative
technologies to improve pulse crops as an
ingredient in food products; and
``(iii) developing nutrient-dense food
product solutions to ameliorate chronic disease
and enhance food security worldwide;
``(C) research in sustainability to enhance global
food security, such as--
``(i) plant breeding, genetics and genomics
to improve productivity, nutrient density, and
phytonutrient content for a growing world
population;
``(ii) pest and disease management,
including resistance to pests and diseases
resulting in reduced application management
strategies; and
``(iii) improving nitrogen fixation to
reduce the carbon and energy footprint of
agriculture;
``(D) optimizing pulse cropping systems to reduce
water usage; and
``(E) education and technical service, such as--
``(i) providing technical expertise to help
food companies include nutrient-dense pulse
crops in innovative and healthy foods; and
``(ii) establishing an educational program
to encourage the consumption and production of
pulse crops in the United States and other
countries.
``(3) Eligible entities.--The Secretary may carry out the
Initiative through--
``(A) Federal agencies, including the Agricultural
Research Service and the National Institute of Food and
Agriculture;
``(B) National Laboratories;
``(C) institutions of higher education;
``(D) research institutions or organizations;
``(E) private organizations or corporations;
``(F) State agricultural experiment stations;
``(G) individuals; or
``(H) groups consisting of 2 or more entities or
individuals described in subparagraphs (A) through (G).
``(4) Research project grants.--
``(A) In general.--In carrying out this subsection,
the Secretary shall award grants on a competitive
basis.
``(B) In general.--The Secretary shall--
``(i) seek and accept proposals for grants;
``(ii) determine the relevance and merit of
proposals through a system of peer review, in
consultation with the pulse crop industry; and
``(iii) award grants on the basis of merit,
quality, and relevance.
``(C) Priorities.--In making grants under this
subsection, the Secretary shall provide a higher
priority to projects that--
``(i) are multistate, multiinstitutional,
and multidisciplinary; and
``(ii) include explicit mechanisms to
communicate results to the pulse crop industry
and the public.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000 for
each of fiscal years 2014 through 2018.
``(g) Forestry Products Advanced Utilization Research.--
``(1) Establishment.--The Secretary shall establish a
forestry and forestry products research and extension
initiative to develop and disseminate science-based tools that
address the needs of the forestry sector and their respective
regions, forest and timberland owners and managers, and
forestry products engineering, manufacturing, and related
interests, including--
``(A) research in wood quality improvement with
respect to lumber strength and grade yield;
``(B) improvement in forestry products, lumber, and
evaluation standards and valuation techniques;
``(C) research and development of novel engineered
lumber products and renewable energy from wood;
``(D) efforts to improve lumber quality and value
based on forest management techniques;
``(E) efforts to improve forestry products
conversion and manufacturing efficiency, productivity,
and profitability over the long term (including
forestry product marketing); and
``(F) other research to support the longevity,
sustainability, and profitability of timberland through
sound management and utilization.
``(2) Grants.--
``(A) In general.--As part of the initiative
described in paragraph (1), the Secretary shall make
grants to eligible entities to carry out the activities
described in subparagraphs (A) through (F) of paragraph
(1).
``(B) Eligible entities.--Entities eligible for
grants described in subparagraph (A) shall include--
``(i) Federal agencies;
``(ii) National Laboratories
``(iii) colleges and universities;
``(iv) research institutions and
organizations;
``(v) private organizations or
corporations;
``(vi) State agricultural experiment
stations; and
``(vii) groups consisting of 2 or more such
entities.
``(C) Priorities.--In making grants, the Secretary
shall give higher priority to projects that--
``(i) are multistate, multiinstitutional,
or multidisciplinary;
``(ii) include explicit mechanisms to
communicate results to producers, forestry
industry stakeholders, policymakers, and the
public; and
``(iii) have--
``(I) extensive history and
demonstrated experience in forestry and
forestry products research;
``(II) existing capacity in
forestry products research and
dissemination; and
``(III) a demonstrated means of
evaluating and responding to the needs
of the related commercial sector.
``(D) Administration.--
``(i) Selection process.--In awarding
grants under this subsection, the Secretary
shall--
``(I) seek and accept proposals;
``(II) determine the relevance and
merit of proposals through a system of
peer and merit review; and
``(III) award grants on the basis
of merit, quality, and relevance.
``(ii) Terms.--The term of a grant made
under this paragraph may not exceed 10 years.
``(iii) Matching funds.--The Secretary
shall require the recipient of a grant to
provide funds or in-kind support from non-
Federal sources in an amount that is at least
equal to the amount provided by the Federal
Government.
``(iv) Buildings and facilities.--Funds
made available under this paragraph shall not
be used for the construction of a new building
or facility or the acquisition, expansion,
remodeling, or alteration of an existing
building or facility (including site grading
and improvement, and architect fees).
``(v) Coordination.--The Secretary shall
ensure that any activities carried out under
this paragraph are done in coordination with
the Forest Products Laboratory.
``(3) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated to carry out this subsection $7,000,000
for each of fiscal years 2014 through 2018.
``(B) Matching funds.--To the extent practicable,
the Secretary shall match any funds received under
subparagraph (A) with funds received for the research
and development program of the Forest Service under
section 3 of the Forest and Rangeland Renewable
Resources Research Act of 1978 (16 U.S.C. 1642).
``(h) Training Coordination for Food and Agriculture Protection.--
``(1) In general.--The Secretary shall make grants and
enter into contracts or cooperative agreements with eligible
entities described in paragraph (2) for the purposes of
establishing a Comprehensive Food Safety Training Network.
``(2) Eligibility.--
``(A) In general.--For purposes of this subsection,
an eligible entity is a multiinstitutional consortium
that includes--
``(i) a nonprofit institution that provides
administering food protection training; and
``(ii) 1 or more training centers in
institutions of higher education that have
demonstrated expertise in developing and
delivering community-based training in food and
agricultural safety and defense.
``(B) Requirements.--To ensure that coordination
and administration is provided across all the
disciplines and provide comprehensive food protection
training, the Secretary may only consider an entire
consortium collectively rather than on an institution-
by-institution basis.
``(C) Membership.--An eligible entity may alter the
consortium membership to meet specific training
expertise needs.
``(3) Duties of eligible entity.--As a condition of the
receipt of assistance under this subsection, an eligible
entity, in cooperation with the Secretary, shall establish and
maintain the network for an internationally integrated training
system to enhance protection of the United States food supply,
including, at a minimum--
``(A) developing curricula and a training network
to provide basic, technical, management, and leadership
training to regulatory and public health officials,
producers, processors, and other agrifood businesses;
``(B) serving as the hub for the administration of
an open training network;
``(C) implementing standards to ensure the delivery
of quality training through a national curricula;
``(D) building and overseeing a nationally
recognized instructor cadre to ensure the availability
of highly qualified instructors;
``(E) reviewing training proposed through the
National Institute of Food and Agriculture and other
relevant Federal agencies that report to the Secretary
on the quality and content of proposed and existing
courses;
``(F) assisting Federal agencies in the
implementation of food protection training requirements
including requirements contained in the Agriculture
Reform, Food, and Jobs Act of 2013, the FDA Food Safety
Modernization Act (Public Law 111-353; 124 Stat. 3885),
and amendments made by those Acts; and
``(G) performing evaluation and outcome-based
studies to provide to the Secretary feedback on the
effectiveness and impact of training and metrics on
jurisdictions and sectors within the food safety
system.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2014 through 2018, to remain available
until expended.
``(i) Farm Animal Agriculture Integrated Research Initiative.--
``(1) Definition of initiative.--In this subsection, the
term `Initiative' means the farm animal integrated research
initiative established under paragraph (2).
``(2) Establishment.--Notwithstanding any other provision
of law, during the period beginning on the date of enactment of
the Agriculture Reform, Food, and Jobs Act of 2013 and ending
on September 30, 2018, the Secretary shall carry out a farm
animal integrated research initiative to address the critical
needs of animal agriculture, by developing and disseminating
science-based tools and information, including--
``(A) research to promote food security, such as--
``(i) improving feed efficiency;
``(ii) improving energetic efficiency;
``(iii) connecting genomics, proteomics,
metabolomics, and related phenomena to animal
production;
``(iv) improving reproductive efficiency;
and
``(v) enhancing pre- and post-harvest food
safety systems;
``(B) research on the interrelationship between
animal and human health, such as--
``(i) exploring new approaches for vaccine
development;
``(ii) understanding and controlling
zoonoses, including the impact of zoonoses on
food safety;
``(iii) improving animal health through
feed; and
``(iv) enhancing product quality and
nutritive value; and
``(C) research on stewardship, such as--
``(i) minimizing or reducing the flow of
nutrients from animal production systems;
``(ii) improving sustainability and
increasing efficiency of natural resource use;
and
``(iii) better understanding animal
production systems and the interactions between
animals, plants, and human management.
``(3) Eligible entities.--The Secretary may carry out the
Initiative through--
``(A) Federal agencies, including the Agricultural
Research Service and the National Institute of Food and
Agriculture;
``(B) National Laboratories;
``(C) institutions of higher education;
``(D) research institutions or organizations;
``(E) private organizations or corporations;
``(F) State agricultural experiment stations;
``(G) individuals; and
``(H) groups consisting of 2 or more entities or
individuals described in subparagraphs (A) through (G).
``(4) Research project grants.--
``(A) In general.--In carrying out this subsection,
the Secretary shall award grants on a competitive basis
in accordance with subparagraphs (B) and (C).
``(B) Process for awarding grants.--The Secretary
shall--
``(i) seek and accept proposals for grants;
``(ii) determine the relevance and merit of
proposals through a system of peer review, in
consultation with the animal agriculture
industry; and
``(iii) award grants on the basis of merit,
quality, and relevance.
``(C) Priorities.--In making grants under this
subsection, the Secretary shall give priority to
projects that--
``(i) are multistate, multiinstitutional,
and multidisciplinary; and
``(ii) include explicit mechanisms to
communicate results to the animal agriculture
industry and the public.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $50,000,000 for
each of fiscal years 2014 through 2018.'';
(7) in subsection (j) (as redesignated by paragraph (5)),
by striking ``2012'' each place it appears and inserting
``2018''; and
(8) in subsection (k) (as redesignated by paragraph (5)),
by striking ``2012'' and inserting ``2018''.
SEC. 7209. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.
Section 1672B of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925b) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
inserting ``, education,'' after ``support research'';
(B) in paragraph (1), by inserting ``and
improvement'' after ``development'';
(C) in paragraph (2), by striking ``to producers
and processors who use organic methods'' and inserting
``of organic agricultural production and methods to
producers, processors, and rural communities'';
(D) in paragraph (5), by inserting ``and
researching solutions to'' after ``identifying''; and
(E) in paragraph (6), by striking ``and marketing''
and inserting ``, marketing, and food safety'';
(2) by striking subsection (e);
(3) by redesignating subsection (f) as subsection (e); and
(4) in paragraph (1) of subsection (e) (as so
redesignated)--
(A) in the heading, by striking ``for fiscal years
2008 through 2012'';
(B) in subparagraph (A), by striking ``and'' at the
end;
(C) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(C) $16,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7210. FARM BUSINESS MANAGEMENT.
Section 1672D(d) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925f(d)) is amended by striking ``such sums as
are necessary to carry out this section.'' and inserting the following:
``to carry out this section--
``(1) such sums as are necessary for fiscal year 2013; and
``(2) $5,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7211. REGIONAL CENTERS OF EXCELLENCE.
Subtitle H of the Food, Agriculture, Conservation, and Trade Act of
1990 is amended by inserting after section 1672D (7 U.S.C. 5925) the
following:
``SEC. 1673. REGIONAL CENTERS OF EXCELLENCE.
``(a) Establishment.--The Secretary may prioritize regional centers
of excellence established for specific agricultural commodities for the
receipt of funding.
``(b) Composition.--A regional center of excellence shall be
composed of 1 or more colleges and universities (including land-grant
institutions, schools of forestry, schools of veterinary medicine, or
NLGCA Institutions (as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103))) that provide financial support to the regional center of
excellence.
``(c) Criteria for Regional Centers of Excellence.--The criteria
for consideration to be a regional center of excellence shall include
efforts--
``(1) to ensure coordination and cost-effectiveness by
reducing unnecessarily duplicative efforts regarding research,
teaching, and extension;
``(2) to leverage available resources by using public/
private partnerships among agricultural industry groups,
institutions of higher education, and the Federal Government;
``(3) to implement teaching initiatives to increase
awareness and effectively disseminate solutions to target
audiences through extension activities;
``(4) to increase the economic returns to rural communities
by identifying, attracting, and directing funds to high-
priority agricultural issues; and
``(5) to improve teaching capacity and infrastructure at
colleges and universities (including land-grant institutions,
schools of forestry, and schools of veterinary medicine, and
NLGCA Institutions).
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2014 through 2018.''.
SEC. 7212. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended--
(1) by striking ``is'' and inserting ``are''; and
(2) by striking ``section'' and all that follows and
inserting the following: ``section--
``(A) $6,000,000 for each of fiscal years 1999
through 2013; and
``(B) $5,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7213. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2012'' and
inserting ``2018''.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION FUNDED BY THE DEPARTMENT.
Section 103(a)(2) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is amended--
(1) by striking the paragraph designation and heading and
inserting the following:
``(2) Relevance and merit review of research, extension,
and education grants.--'';
(2) in subparagraph (A)--
(A) by inserting ``relevance and'' before
``merit''; and
(B) by striking ``extension or education'' and
inserting, ``research, extension, or education''; and
(3) in subparagraph (B) by inserting ``on a continuous
basis'' after ``procedures''.
SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
GRANTS PROGRAM.
Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 7303. 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
``such sums as may be necessary for each of fiscal years 1999 through
2012'' and inserting ``$10,000,000 for each of fiscal years 2014
through 2018''.
SEC. 7304. GRANTS FOR YOUTH ORGANIZATIONS.
Section 410(d) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by striking
``section such sums as are necessary'' and all that follows and
inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2013; and
``(2) $3,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7305. SPECIALTY CROP RESEARCH INITIATIVE.
Section 412 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7632) is amended--
(1) in subsection (b)(3), by inserting ``handling and
processing,'' after ``production efficiency,'';
(2) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking
``and'' at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(iii) by inserting after subparagraph (C)
the following:
``(D) consult with the specialty crops committee
authorized under section 1408A of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123a) during the peer and merit
review process.''; and
(B) in paragraph (3), by striking ``non-Federal''
and all that follows through the end of the paragraph
and inserting ``other sources in an amount that is at
least equal to the amount provided by a grant received
under this section.''; and
(3) in subsection (h), by striking paragraph (3) and
inserting the following:
``(3) Subsequent funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to carry
out this section--
``(A) $25,000,000 for fiscal year 2014;
``(B) $30,000,000 for each of fiscal years 2015 and
2016;
``(C) $65,000,000 for fiscal year 2017; and
``(D) $50,000,000 for fiscal year 2018 and each
fiscal year thereafter.''.
SEC. 7306. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.
Section 604(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 7307. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``section'' and all that follows and
inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal years
1999 through 2013; and
``(2) $3,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7308. AUTHORIZATION OF REGIONAL INTEGRATED PEST MANAGEMENT
CENTERS.
Subtitle B of title VI of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7651 et seq.) is amended by
adding at the end the following:
``SEC. 621. AUTHORIZATION OF REGIONAL INTEGRATED PEST MANAGEMENT
CENTERS.
``(a) In General.--There are established 4 regional integrated pest
management centers (referred to in this section as the `Centers'),
which shall be located at such specific locations in the north central,
northeastern, southern, and western regions of the United States as the
Secretary shall specify.
``(b) Purposes.--The purposes of the Centers shall be--
``(1) to strengthen the connection of the Department with
production agriculture, research, and extension programs, and
agricultural stakeholders throughout the United States;
``(2) to increase the effectiveness of providing pest
management solutions for the private and public sectors;
``(3) to quickly respond to information needs of the public
and private sectors; and
``(4) to improve communication among the relevant
stakeholders.
``(c) Duties.--In meeting the purposes described in subsection (b)
and otherwise carrying out this section, the Centers shall--
``(1) develop regional strategies to address pest
management needs;
``(2) assist the Department and partner institutions of the
Department in identifying, prioritizing, and coordinating a
national pest management research, extension, and education
program implemented on a regional basis;
``(3) establish a national pest management communication
network that includes--
``(A) the agencies of the Department and other
government agencies;
``(B) scientists at institutions of higher
education; and
``(C) stakeholders focusing on pest management
issues;
``(4) serve as regional hubs responsible for ensuring
efficient access to pest management expertise and data
available through institutions of higher education; and
``(5) on behalf of the Department, manage grants that can
be most effectively and efficiently delivered at the regional
level, as determined by the Secretary.''.
Subtitle D--Other Laws
SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.
Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``Act'' and all that follows and inserting
the following: ``Act--
``(1) such sums as are necessary for each of fiscal years
1991 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) Definition of 1994 Institutions.--Section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended to read as follows:
``SEC. 532. DEFINITION OF 1994 INSTITUTIONS.
``In this part, the term `1994 Institutions' means any 1 of the
following:
``(1) Aaniiih Nakoda College.
``(2) Bay Mills Community College.
``(3) Blackfeet Community College.
``(4) Cankdeska Cikana Community College.
``(5) Chief Dull Knife Memorial College.
``(6) College of Menominee Nation.
``(7) College of the Muscogee Nation.
``(8) D-Q University.
``(9) Dine College.
``(10) Fond du Lac Tribal and Community College.
``(11) Fort Berthold Community College.
``(12) Fort Peck Community College.
``(13) Haskell Indian Nations University.
``(14) Ilisagvik College.
``(15) Institute of American Indian and Alaska Native
Culture and Arts Development.
``(16) Keweenaw Bay Ojibwa Community College.
``(17) Lac Courte Oreilles Ojibwa Community College.
``(18) Leech Lake Tribal College.
``(19) Little Big Horn College.
``(20) Little Priest Tribal College.
``(21) Navajo Technical College.
``(22) Nebraska Indian Community College.
``(23) Northwest Indian College.
``(24) Oglala Lakota College.
``(25) Saginaw Chippewa Tribal College.
``(26) Salish Kootenai College.
``(27) Sinte Gleska University.
``(28) Sisseton Wahpeton College.
``(29) Sitting Bull College.
``(30) Southwestern Indian Polytechnic Institute.
``(31) Stone Child College.
``(32) Tohono O'odham Community College.
``(33) Turtle Mountain Community College.
``(34) United Tribes Technical College.
``(35) White Earth Tribal and Community College.''.
(b) Endowment for 1994 Institutions.--
(1) In general.--Section 533 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382) is amended--
(A) in subsection (a)(2)(A)(ii), by striking ``of
such Act as added by section 534(b)(1) of this part''
and inserting ``of that Act (7 U.S.C. 343(b)(3)) and
for programs for children, youth, and families at risk
and for Federally recognized tribes implemented under
section 3(d) of that Act (7 U.S.C. 343(d))''; and
(B) in subsection (b), in the first sentence by
striking ``2012'' and inserting ``2018''.
(2) Conforming amendment.--Section 3(d) of the Smith-Lever
Act (7 U.S.C. 343(d)) is amended in the second sentence by
inserting ``and, in the case of programs for children, youth,
and families at risk and for Federally recognized tribes, the
1994 Institutions (as defined in section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382)),'' before ``may compete for''.
(c) Institutional Capacity Building Grants.--Section 535 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended by striking ``2012'' each place it
appears in subsections (b)(1) and (c) and inserting ``2018''.
(d) Research Grants.--
(1) Authorization of appropriations.--Section 536(c) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended in the first sentence
by striking ``2012'' and inserting ``2018''.
(2) Research grant requirements.--Section 536(b) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended by striking ``with at
least 1 other land-grant college or university'' and all that
follows and inserting the following: ``with--
``(1) the Agricultural Research Service of the Department
of Agriculture; or
``(2) at least 1--
``(A) other land-grant college or university
(exclusive of another 1994 Institution);
``(B) non-land-grant college of agriculture (as
defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)); or
``(C) cooperating forestry school (as defined in
that section).''.
(e) Effective Date.--The amendments made by subsections (a), (b),
and (d)(2) take effect on October 1, 2013.
SEC. 7403. RESEARCH FACILITIES ACT.
Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
amended by striking ``2012'' and inserting ``2018''.
SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.
Section 2 of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i) is amended--
(1) in subsection (b)(11)(A)--
(A) in the matter preceding clause (i), by striking
``2012'' and inserting ``2018''; and
(B) in clause (i), by striking ``integrated
research'' and all that follows through ``; and'' and
inserting ``integrated research, extension, and
education activities; and''; and
(2) by adding at the end the following:
``(l) Streamlining Grant Application Process.--Not later than 1
year after the date of enactment of this subsection, the Secretary
shall submit to Congress a report that includes--
``(1) an analysis of barriers that exist in the competitive
grants process administered by the National Institute of Food
and Agriculture that prevent eligible institutions and
organizations with limited institutional capacity from
successfully applying and competing for competitive grants; and
``(2) specific recommendations for future steps that the
Department can take to streamline the competitive grants
application process so as to remove the barriers and increase
the success rates of applicants described in paragraph (1).''.
SEC. 7405. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM UNDER DEPARTMENT
OF AGRICULTURE REORGANIZATION ACT OF 1994.
Section 308(b)(6) of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 3125a note; Public Law 103-354) is amended by
striking subparagraph (A) and inserting the following:
``(A) on September 30, 2018; or''.
SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 1978.
(a) Authorization of Appropriations.--Section 6 of the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the
first sentence by striking ``2012'' and inserting ``2018''.
(b) Termination Date.--Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is
amended by striking ``2012'' and inserting ``2018''.
SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980.
Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809)
is amended by striking ``2012'' each place it appears and inserting
``2018''.
SEC. 7408. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM UNDER FARM
SECURITY AND RURAL INVESTMENT ACT OF 2002.
Section 7405 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 3319f) is amended--
(1) in subsection (c)(8)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) beginning farmers and ranchers who are
veterans (as defined in section 101 of title 38, United
States Code).''; and
(2) by redesignating subsection (h) as subsection (i);
(3) by inserting after subsection (g) the following:
``(h) State Grants.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means--
``(A) an agency of a State or political subdivision
of a State;
``(B) a national, State, or regional organization
of agricultural producers; and
``(C) any other entity determined appropriate by
the Secretary.
``(2) Grants.--The Secretary shall use such sums as are
necessary of funds made available to carry out this section for
each fiscal year under subsection (i) to make grants to States,
on a competitive basis, which States shall use the grants to
make grants to eligible entities to establish and improve farm
safety programs at the local level.''; and
(4) in subsection (i) (as redesignated by paragraph (2))--
(A) in paragraph (1)--
(i) in the heading, by striking ``for
fiscal years 2009 through 2012'';
(ii) in subparagraph (A), by striking
``and'' at the end;
(iii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) $17,000,000 for each of fiscal years 2014
through 2018, to remain available until expended.'';
(B) in paragraph (2)--
(i) in the heading, by striking ``for
fiscal years 2009 through 2012''; and
(ii) striking ``2012'' and inserting
``2018''; and
(C) by striking paragraph (3).
Subtitle E--Food, Conservation, and Energy Act of 2008
PART I--AGRICULTURAL SECURITY
SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.
Section 14112 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8912) is amended by striking subsection (c) and inserting the
following:
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
BIOSECURITY PLANNING, PREPARATION, AND RESPONSE.
Section 14113 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8913) is amended--
(1) in subsection (a)(2)--
(A) by striking ``such sums as may be necessary'';
and
(B) by striking ``subsection'' and all that follows
and inserting the following: ``subsection--
``(1) such sums as are necessary for each of fiscal years
2008 through 2013; and
``(2) $15,000,000 for each of fiscal years 2014 through
2018.''; and
(2) in subsection (b)(2), by striking ``is authorized to be
appropriated to carry out this subsection'' and all that
follows and inserting the following: ``are authorized to be
appropriated to carry out this subsection--
``(1) $25,000,000 for each of fiscal years 2008 through
2013; and
``(2) $15,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.
Section 14121(b) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8921(b)) is amended by striking ``is authorized to be
appropriated to carry out this section'' and all that follows and
inserting the following: ``are authorized to be appropriated to carry
out this section--
``(1) $50,000,000 for each of fiscal years 2008 through
2013; and
``(2) $15,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM.
Section 14122(e) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8922(e)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``section'' and all that follows and
inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2013, to remain available until expended; and
``(2) $5,000,000 for each of fiscal years 2014 through
2018, to remain available until expended.''.
PART II--MISCELLANEOUS
SEC. 7511. GRAZINGLANDS RESEARCH LABORATORY.
Section 7502 of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 112 Stat. 2019) is amended by striking ``for the
5-year period beginning on the date of enactment of this Act'' and
inserting ``until September 30, 2018''.
SEC. 7512. BUDGET SUBMISSION AND FUNDING.
Section 7506 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 7614c) is amended--
(1) in subsection (a)--
(A) by striking ``(a) Definition of Competitive
Programs.--In this section, the term''; and inserting
the following:
``(a) Definitions.--In this section:
``(1) Competitive programs.--The term''; and
(B) by adding at the end the following:
``(2) Covered program.--The term `covered program' means--
``(A) each research program carried out by the
Agricultural Research Service or the Economic Research
Service for which annual appropriations are requested
in the annual budget submission of the President; and
``(B) each competitive program (as defined in
section 251(f)(1) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971(f)(1)))
carried out by the National Institute of Food and
Agriculture for which annual appropriations are
requested in the annual budget submission of the
President.
``(3) Request for awards.--The term `request for awards'
means a funding announcement published by the National
Institute of Food and Agriculture that provides detailed
information on funding opportunities at the Institute,
including the purpose, eligibility, restriction, focus areas,
evaluation criteria, regulatory information, and instructions
on how to apply for such opportunities.''; and
(2) by adding at the end the following:
``(e) Additional Presidential Budget Submission Requirement.--
``(1) In general.--Each year, the President shall submit to
Congress, together with the annual budget submission of the
President, the information described in paragraph (2) for each
funding request for a covered program.
``(2) Information described.--The information described in
this paragraph includes--
``(A) baseline information, including with respect
to each covered program--
``(i) the funding level for the program for
the fiscal year preceding the year the annual
budget submission of the President is
submitted;
``(ii) the funding level requested in the
annual budget submission of the President,
including any increase or decrease in the
funding level; and
``(iii) an explanation justifying any
change from the funding level specified in
clause (i) to the level specified in clause
(ii);
``(B) with respect to each covered program that is
carried out by the Economic Research Service or the
Agricultural Research Service, the location and staff
years of the program;
``(C) the proposed funding levels to be allocated
to, and the expected publication date, scope, and
allocation level for, each request for awards to be
published under--
``(i) each priority area specified in
section 2(b)(2) of the Competitive, Special,
and Facilities Research Grant Act (7 U.S.C.
450i(b)(2));
``(ii) each research and extension project
carried out under section 1621(a) of the Food,
Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5811(a));
``(iii) each grant awarded under section
1672B(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
5925b(a));
``(iv) each grant awarded under section
412(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C.
7632(b)); and
``(v) each grant awarded under 7405(c)(1)
of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3319f(c)(1)); or
``(D) any other information the Secretary
determines will increase congressional oversight with
respect to covered programs.
``(f) Report of the Secretary of Agriculture.--Each year on a date
that is not later than the date on which the President submits the
annual budget submission, the Secretary shall submit to Congress a
report containing a description of the agricultural research,
extension, and education activities carried out by the Federal
Government during the fiscal year that immediately precedes the year
for which the report is submitted, including--
``(1) a review of the extent to which those activities--
``(A) are duplicative or overlap within the
Department of Agriculture; or
``(B) are similar to activities carried out by--
``(i) other Federal agencies;
``(ii) the States (including the District
of Columbia, the Commonwealth of Puerto Rico,
and other territories or possessions of the
United States);
``(iii) institutions of higher education
(as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)); or
``(iv) the private sector; and
``(2) for each report submitted under this section on or
after January 1, 2014, a 5-year projection of national
priorities with respect to agricultural research, extension,
and education, taking into account both domestic and
international needs.''.
SEC. 7513. NATURAL PRODUCTS RESEARCH PROGRAM.
Section 7525 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 5937) is amended by striking subsection (e) and inserting the
following:
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $7,000,000 for each of fiscal
years 2014 through 2018.''.
SEC. 7514. SUN GRANT PROGRAM.
(a) In General.--Section 7526 of the Food, Conservation, and Energy
Act of 2008 (7 U.S.C. 8114) is amended--
(1) in subsection (a)(4)(B), by striking ``the Department
of Energy'' and inserting ``other appropriate Federal agencies
(as determined by the Secretary)'';
(2) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``at South
Dakota State University'';
(B) in subparagraph (B), by striking ``at the
University of Tennessee at Knoxville'';
(C) in subparagraph (C), by striking ``at Oklahoma
State University'';
(D) in subparagraph (D), by striking ``at Oregon
State University'';
(E) in subparagraph (E), by striking ``at Cornell
University''; and
(F) in subparagraph (F), by striking ``at the
University of Hawaii'';
(3) in subsection (c)(1)--
(A) in subparagraph (B), by striking ``multistate''
and all that follows through ``technology
implementation'' and inserting ``integrated, multistate
research, extension, and education programs on
technology development and technology implementation'';
(B) by striking subparagraph (C); and
(C) by redesignating subparagraph (D) as
subparagraph (C);
(4) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``gasification'' and
inserting ``bioproducts''; and
(ii) by striking ``the Department of
Energy'' and inserting ``other appropriate
Federal agencies'';
(B) by striking paragraph (2);
(C) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(D) in paragraph (1), by striking ``in accordance
with paragraph (2)''; and
(5) in subsection (g), by striking ``2012'' and inserting
``2018''.
(b) Conforming Amendments.--Section 7526(f) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)) is amended--
(1) in paragraph (1), by striking ``subsection
(c)(1)(D)(i)'' and inserting ``subsection (c)(1)(C)(i)''; and
(2) in paragraph (2), by striking ``subsection (d)(1)'' and
inserting ``subsection (d)''.
Subtitle F--Miscellaneous
SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RESEARCH.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Board of Directors
described in subsection (e).
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Foundation.--The term ``Foundation'' means the
Foundation for Food and Agriculture Research established under
subsection (b).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Establishment.--
(1) In general.--The Secretary shall establish a nonprofit
corporation to be known as the ``Foundation for Food and
Agriculture Research''.
(2) Status.--The Foundation shall not be an agency or
instrumentality of the United States Government.
(c) Purposes.--The purposes of the Foundation shall be--
(1) to advance the research mission of the Department by
supporting agricultural research activities focused on
addressing key problems of national and international
significance including--
(A) plant health, production, and plant products;
(B) animal health, production, and products;
(C) food safety, nutrition, and health;
(D) renewable energy, natural resources, and the
environment;
(E) agricultural and food security;
(F) agriculture systems and technology; and
(G) agriculture economics and rural communities;
and
(2) to foster collaboration with agricultural researchers
from the Federal Government, institutions of higher education,
industry, and nonprofit organizations.
(d) Duties.--
(1) In general.--The Foundation shall--
(A) award grants to, or enter into contracts,
memoranda of understanding, or cooperative agreements
with, scientists and entities, which may include
agricultural research agencies in the Department,
university consortia, public-private partnerships,
institutions of higher education, nonprofit
organizations, and industry, to efficiently and
effectively advance the goals and priorities of the
Foundation;
(B) in consultation with the Secretary--
(i) identify existing and proposed Federal
intramural and extramural research and
development programs relating to the purposes
of the Foundation described in subsection (c);
and
(ii) coordinate Foundation activities with
those programs so as to minimize duplication of
existing efforts;
(C) identify unmet and emerging agricultural
research needs after reviewing the Roadmap for
Agricultural Research, Education and Extension as
required by section 7504 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 7614a);
(D) facilitate technology transfer and release of
information and data gathered from the activities of
the Foundation to the agricultural research community;
(E) promote and encourage the development of the
next generation of agricultural research scientists;
and
(F) carry out such other activities as the Board
determines to be consistent with the purposes of the
Foundation.
(2) Authority.--Subject to paragraph (3), the Foundation
shall be the sole entity responsible for carrying out the
duties enumerated in this subsection.
(3) Relationship to other activities.--The activities
described in paragraph (1) shall be supplemental to any other
activities at the Department and shall not preempt any
authority or responsibility of the Department under another
provision of law.
(e) Board of Directors.--
(1) Establishment.--The Foundation shall be governed by a
Board of Directors.
(2) Composition.--
(A) In general.--The Board shall be composed of
appointed and ex-officio, nonvoting members.
(B) Ex-officio members.--The ex-officio members of
the Board shall be the following individuals or
designees:
(i) The Secretary.
(ii) The Under Secretary of Agriculture for
Research, Education, and Economics.
(iii) The Administrator of the Agricultural
Research Service.
(iv) The Director of the National Institute
of Food and Agriculture.
(v) The Director of the National Science
Foundation.
(C) Appointed members.--
(i) In general.--The ex-officio members of
the Board under subparagraph (B) shall, by
majority vote, appoint to the Board 15
individuals, of whom--
(I) 8 shall be selected from a list
of candidates to be provided by the
National Academy of Sciences; and
(II) 7 shall be selected from lists
of candidates provided by industry.
(ii) Requirements.--
(I) Expertise.--The ex-officio
members shall ensure that a majority of
the members of the Board have actual
experience in agricultural research
and, to the extent practicable,
represent diverse sectors of
agriculture.
(II) Limitation.--No employee of
the Federal Government may serve as an
appointed member of the Board under
this subparagraph.
(III) Not federal employment.--
Appointment to the Board under this
subparagraph shall not constitute
Federal employment.
(iii) Authority.--All appointed members of
the Board shall be voting members.
(D) Chair.--The Board shall, from among the members
of the Board, designate an individual to serve as Chair
of the Board.
(3) Initial meeting.--Not later than 60 days after the date
of enactment of this Act, the Secretary shall convene a meeting
of the ex-officio members of the Board--
(A) to incorporate the Foundation; and
(B) to appoint the members of the Board in
accordance with paragraph (2)(C)(i).
(4) Duties.--
(A) In general.--The Board shall--
(i) establish bylaws for the Foundation
that, at a minimum, include--
(I) policies for the selection of
future Board members, officers,
employees, agents, and contractors of
the Foundation;
(II) policies, including ethical
standards, for--
(aa) the acceptance,
solicitation, and disposition
of donations and grants to the
Foundation; and
(bb) the disposition of
assets of the Foundation,
including appropriate limits on
the ability of donors to
designate, by stipulation or
restriction, the use or
recipient of donated funds;
(III) policies that would subject
all employees, fellows, trainees, and
other agents of the Foundation
(including members of the Board) to the
conflict of interest standards under
section 208 of title 18, United States
Code;
(IV) policies for writing, editing,
printing, publishing, and vending of
books and other materials;
(V) policies for the conduct of the
general operations of the Foundation,
including a cap on administrative
expenses for recipients of a grant,
contract, or cooperative agreement from
the Foundation; and
(VI) specific duties for the
Executive Director;
(ii) prioritize and provide overall
direction for the activities of the Foundation;
(iii) evaluate the performance of the
Executive Director; and
(iv) carry out any other necessary
activities regarding the Foundation.
(B) Establishment of bylaws.--In establishing
bylaws under subparagraph (A)(i), the Board shall
ensure that the bylaws do not--
(i) reflect unfavorably on the ability of
the Foundation to carry out the duties of the
Foundation in a fair and objective manner; or
(ii) compromise, or appear to compromise,
the integrity of any governmental agency or
program, or any officer or employee employed by
or involved in a governmental agency or
program.
(5) Terms and vacancies.--
(A) Terms.--
(i) In general.--The term of each member of
the Board appointed under paragraph (2)(C)
shall be 5 years.
(ii) Partial terms.--If a member of the
Board does not serve the full term applicable
under clause (i), the individual appointed to
fill the resulting vacancy shall be appointed
for the remainder of the term of the
predecessor of the individual.
(iii) Transition.--A member of the Board
may continue to serve after the expiration of
the term of the member until a successor is
appointed.
(B) Vacancies.--Any vacancy in the membership of
the Board shall be filled in the manner in which the
original position was made and shall not affect the
power of the remaining members to execute the duties of
the Board.
(6) Compensation.--Members of the Board may not receive
compensation for service on the Board but may be reimbursed for
travel, subsistence, and other necessary expenses incurred in
carrying out the duties of the Board.
(7) Meetings and quorum.--A majority of the members of the
Board shall constitute a quorum for purposes of conducting
business of the Board.
(f) Administration.--
(1) Executive director.--
(A) In general.--The Board shall hire an Executive
Director who shall carry out such duties and
responsibilities as the Board may prescribe.
(B) Service.--The Executive Director shall serve at
the pleasure of the Board.
(2) Administrative powers.--
(A) In general.--In carrying out this section, the
Board, acting through the Executive Director, may--
(i) adopt, alter, and use a corporate seal,
which shall be judicially noticed;
(ii) hire, promote, compensate, and
discharge 1 or more officers, employees, and
agents, as may be necessary, and define the
duties of the officers, employees, and agents;
(iii) solicit and accept any funds, gifts,
grants, devises, or bequests of real or
personal property made to the Foundation,
including such support from private entities;
(iv) prescribe the manner in which--
(I) real or personal property of
the Foundation is acquired, held, and
transferred;
(II) general operations of the
Foundation are to be conducted; and
(III) the privileges granted to the
Board by law are exercised and enjoyed;
(v) with the consent of the applicable
executive department or independent agency, use
the information, services, and facilities of
the department or agency in carrying out this
section;
(vi) enter into contracts with public and
private organizations for the writing, editing,
printing, and publishing of books and other
material;
(vii) hold, administer, invest, and spend
any gift, devise, or bequest of real or
personal property made to the Foundation;
(viii) enter into such contracts, leases,
cooperative agreements, and other transactions
as the Board considers appropriate to conduct
the activities of the Foundation;
(ix) modify or consent to the modification
of any contract or agreement to which the
Foundation is a party or in which the
Foundation has an interest;
(x) take such action as may be necessary to
obtain patents and licenses for devices and
procedures developed by the Foundation and
employees of the Foundation;
(xi) sue and be sued in the corporate name
of the Foundation, and complain and defend in
courts of competent jurisdiction;
(xii) appoint other groups of advisors as
may be determined necessary to carry out the
functions of the Foundation; and
(xiii) exercise such other incidental
powers as are necessary to carry out the duties
and functions of the Foundation in accordance
with this section.
(B) Limitation.--No appointed member of the Board
or officer or employee of the Foundation or of any
program established by the Foundation (other than ex-
officio members of the Board) shall exercise
administrative control over any Federal employee.
(3) Records.--
(A) Audits.--The Foundation shall--
(i) provide for annual audits of the
financial condition of the Foundation; and
(ii) make the audits, and all other
records, documents, and other papers of the
Foundation, available to the Secretary and the
Comptroller General of the United States for
examination or audit.
(B) Reports.--
(i) Annual report on foundation.--
(I) In general.--Not later than 5
months following the end of each fiscal
year, the Foundation shall publish a
report for the preceding fiscal year
that includes--
(aa) a description of
Foundation activities,
including accomplishments; and
(bb) a comprehensive
statement of the operations and
financial condition of the
Foundation.
(II) Financial condition.--Each
report under subclause (I) shall
include a description of all gifts or
grants to the Foundation of real or
personal property or money, which shall
include--
(aa) the source of the
gifts or grants; and
(bb) any restrictions on
the purposes for which the gift
or grant may be used.
(III) Availability.--The Foundation
shall--
(aa) make copies of each
report submitted under
subclause (I) available for
public inspection; and
(bb) on request, provide a
copy of the report to any
individual.
(IV) Public meeting.--The Board
shall hold an annual public meeting to
summarize the activities of the
Foundation.
(ii) Grant reporting.--Any recipient of a
grant under subsection (d)(1)(A) shall provide
the Foundation with a report at the conclusion
of any research or studies conducted the
describes the results of the research or
studies, including any data generated.
(4) Integrity.--
(A) In general.--To ensure integrity in the
operations of the Foundation, the Board shall develop
and enforce procedures relating to standards of
conduct, financial disclosure statements, conflict of
interest (including recusal and waiver rules), audits,
and any other matters determined appropriate by the
Board.
(B) Financial conflicts of interest.--Any
individual who is an officer, employee, or member of
the Board is prohibited from any participation in
deliberations by the Foundation of a matter that would
directly or predictably affect any financial interest
of--
(i) the individual;
(ii) a relative (as defined in section 109
of the Ethics in Government Act of 1978 (5
U.S.C. App.)) of that individual; or
(iii) a business organization or other
entity in which the individual has an interest,
including an organization or other entity with
which the individual is negotiating employment.
(5) Intellectual property.--The Board shall adopt written
standards to govern ownership of any intellectual property
rights derived from the collaborative efforts of the
Foundation.
(6) Liability.--The United States shall not be liable for
any debts, defaults, acts, or omissions of the Foundation nor
shall the full faith and credit of the United States extend to
any obligations of the Foundation.
(g) Funds.--
(1) Mandatory funding.--
(A) In general.--On October 1, 2013, of the funds
of the Commodity Credit Corporation, the Secretary
shall transfer to the Foundation to carry out this
section $200,000,000, to remain available until
expended under the conditions described in subparagraph
(B).
(B) Conditions on expenditure.--The Foundation may
use the funds made available under subparagraph (A) to
carry out the purposes of the Foundation only to the
extent that the Foundation secures an equal amount of
non-Federal matching funds for each expenditure.
(C) Prohibition on construction.--None of the funds
made available under subparagraph (A) may be used for
construction.
(2) Separation of funds.--The Executive Director shall
ensure that any funds received under paragraph (1) are held in
separate accounts from funds received from nongovernmental
entities as described in subsection (f)(2)(A)(iii).
SEC. 7602. AGRICULTURAL AND FOOD LAW RESEARCH, LEGAL TOOLS, AND
INFORMATION.
(a) Findings.--Congress finds that--
(1) the farms, ranches, and forests of the United States
are impacted by a complex and rapidly evolving web of
competition and international, Federal, State, and local laws
(including regulations);
(2) objective, scholarly, and authoritative agricultural
and food law research, legal tools, and information helps the
farm, ranch, and forestry community contribute to the strength
of the United States through improved conservation,
environmental protection, job creation, economic development,
renewable energy production, outdoor recreational
opportunities, and increased and diversified local and regional
supplies of food, fiber, and fuel; and
(3) the vast agricultural community of the United States,
including farmers, ranchers, foresters, attorneys,
policymakers, and extension personnel, need access to
agricultural and food law research and information provided by
an objective, scholarly, and neutral source.
(b) Partnerships.--The Secretary, acting through the National
Agricultural Library, shall support the dissemination of objective,
scholarly, and authoritative agricultural and food law research, legal
tools, and information by entering into cooperative agreements with
institutions of higher education that on the date of enactment of this
Act are carrying out objective programs for research, legal tools, and
information in agricultural and food law.
(c) Authorization of Appropriations.--For each fiscal year, the
Secretary may use not more than $5,000,000 of the amounts made
available to the National Agricultural Library to carry out this
section.
TITLE VIII--FORESTRY
Subtitle A--Repeal of Certain Forestry Programs
SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM.
(a) Repeal.--Section 4 of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2103) is repealed.
(b) Conforming Amendment.--Section 8002 of the Farm Security and
Rural Investment Act of 2002 (Public Law 107-171; 16 U.S.C. 2103 note)
is amended by striking subsection (a).
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2013.
SEC. 8002. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
RESOURCES LEADERSHIP PROGRAM.
(a) Repeal.--Section 8402 of the Food, Conservation, and Energy Act
of 2008 (16 U.S.C. 1649a) is repealed.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
SEC. 8003. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM.
(a) Repeal.--Section 303 of the Healthy Forests Restoration Act of
2003 (16 U.S.C. 6542) is repealed.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2013.
Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
1978 Programs
SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.
Section 2A(f)(1) of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2101a(f)(1)) is amended by striking ``2012'' and inserting
``2018''.
Subtitle C--Reauthorization of Other Forestry-Related Laws
SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.
Section 2371(d)(2) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking ``2012''
and inserting ``2018''.
SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Global Climate Change Prevention Act of 1990
(7 U.S.C. 6704(d)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 8203. INSECT AND DISEASE INFESTATION.
Title VI of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
6591 et seq.) is amended by adding at the end the following:
``SEC. 602. DESIGNATION OF TREATMENT AREAS.
``(a) Definition of Declining Forest Health.--In this section, the
term `declining forest health' means a forest that is experiencing--
``(1) substantially increased tree mortality due to insect
or disease infestation; or
``(2) dieback due to infestation or defoliation by insects
or disease.
``(b) Designation of Treatment Areas.--
``(1) Initial areas.--Not later than 60 days after the date
of enactment of the Agriculture Reform, Food, and Jobs Act of
2013, the Secretary shall, if requested by the Governor of the
State, designate as part of an insect and disease treatment
program 1 or more subwatersheds (sixth-level hydrologic units,
according to the System of Hydrologic Unit Codes of the United
States Geological Survey) in at least 1 national forest in each
State that is experiencing an insect or disease epidemic.
``(2) Additional areas.--After the end of the 60-day period
described in paragraph (1), the Secretary may designate
additional subwatersheds under this section as needed to
address insect or disease threats.
``(c) Requirements.--To be designated a subwatershed under
subsection (b), the subwatershed shall be--
``(1) experiencing declining forest health, based on annual
forest health surveys conducted by the Secretary;
``(2) at risk of experiencing substantially increased tree
mortality over the next 15 years due to insect or disease
infestation, based on the most recent National Insect and
Disease Risk Map published by the Forest Service; or
``(3) in an area in which the risk of hazard trees poses an
imminent risk to public infrastructure, health, or safety.
``(d) Treatment of Areas.--
``(1) In general.--The Secretary may carry out priority
projects on Federal land in the subwatersheds designated under
subsection (b) to reduce the risk or extent of, or increase the
resilience to, insect or disease infestation in the
subwatersheds.
``(2) Authority.--Any project under paragraph (1) for which
a public notice to initiate scoping is issued on or before
September 30, 2018, may be carried out in accordance with
subsections (b), (c), and (d) of section 102, and sections 104,
105, and 106.
``(3) Effect.--Projects carried out under this subsection
shall be considered authorized hazardous fuel reduction
projects for purposes of the authorities described in paragraph
(2).
``(4) Report.--Not later than September 30, 2018, the
Secretary shall issue a report on actions taken to carry out
this subsection, including--
``(A) an evaluation of the progress towards project
goals; and
``(B) recommendations for modifications to the
projects and management treatments.
``(e) Tree Retention.--The Secretary shall carry out projects under
subsection (d) in a manner that maximizes the retention of old-growth
and large trees, as appropriate for the forest type, to the extent that
the trees promote stands that are resilient to insects and disease.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $200,000,000 for each of fiscal
years 2014 through 2018.''.
SEC. 8204. STEWARDSHIP END RESULT CONTRACTING PROJECTS.
(a) In General.--Title VI of the Healthy Forests Restoration Act of
2003 (16 U.S.C. 6591) (as amended by section 8203) is amended by adding
at the end the following:
``SEC. 603. STEWARDSHIP END RESULT CONTRACTING PROJECTS.
``(a) Definitions.--In this section:
``(1) Chief.--The term `Chief' means the Chief of the
Forest Service.
``(2) Director.--The term `Director' means the Director of
the Bureau of Land Management.
``(b) Projects.--The Chief and the Director, via agreement or
contract as appropriate, may enter into stewardship contracting
projects with private persons or other public or private entities to
perform services to achieve land management goals for the national
forests and the public lands that meet local and rural community needs.
``(c) Land Management Goals.--The land management goals of a
project under subsection (b) may include--
``(1) road and trail maintenance or obliteration to restore
or maintain water quality;
``(2) soil productivity, habitat for wildlife and
fisheries, or other resource values;
``(3) setting of prescribed fires to improve the
composition, structure, condition, and health of stands or to
improve wildlife habitat;
``(4) removing vegetation or other activities to promote
healthy forest stands, reduce fire hazards, or achieve other
land management objectives;
``(5) watershed restoration and maintenance;
``(6) restoration and maintenance of wildlife and fish; or
``(7) control of noxious and exotic weeds and
reestablishing native plant species.
``(d) Agreements or Contracts.--
``(1) Procurement procedure.--A source for performance of
an agreement or contract under subsection (b) shall be selected
on a best-value basis, including consideration of source under
other public and private agreements or contracts.
``(2) Contract for sale of property.--A contract entered
into under this section may, at the discretion of the Secretary
of Agriculture, be considered a contract for the sale of
property under such terms as the Secretary may prescribe
without regard to any other provision of law.
``(3) Term.--
``(A) In general.--Except as provided in
subparagraph (B), the Chief and the Director may enter
into a contract under subsection (b) in accordance with
section 3903 of title 41, United States Code.
``(B) Maximum.--The period of the contract under
subsection (b) may exceed 5 years but may not exceed 10
years.
``(4) Offsets.--
``(A) In general.--The Chief and the Director may
apply the value of timber or other forest products
removed as an offset against the cost of services
received under the agreement or contract described in
subsection (b).
``(B) Methods of appraisal.--The value of timber or
other forest products used as an offset under
subparagraph (A)--
``(i) shall be determined using appropriate
methods of appraisal commensurate with the
quantity of products to be removed; and
``(ii) may--
``(I) be determined using a unit of
measure appropriate to the contracts;
and
``(II) may include valuing products
on a per-acre basis.
``(5) Relation to other laws.--Notwithstanding subsections
(d) and (g) of section 14 of the National Forest Management Act
of 1976 (16 U.S.C. 472a), the Chief may enter into an agreement
or contract under subsection (b).
``(6) Contracting officer.--Notwithstanding any other
provision of law, the Secretary or the Secretary of the
Interior may determine the appropriate contracting officer to
enter into and administer an agreement or contract under
subsection (b).
``(e) Receipts.--
``(1) In general.--The Chief and the Director may collect
monies from an agreement or contract under subsection (b) if
the collection is a secondary objective of negotiating the
contract that will best achieve the purposes of this section.
``(2) Use.--Monies from an agreement or contract under
subsection (b)--
``(A) may be retained by the Chief and the
Director; and
``(B) shall be available for expenditure without
further appropriation at the project site from which
the monies are collected or at another project site.
``(3) Relation to other laws.--
``(A) In general.--Notwithstanding any other
provision of law, the value of services received by the
Chief or the Director under a stewardship contract
project conducted under this section, and any payments
made or resources provided by the contractor, Chief, or
Director shall not be considered monies received from
the National Forest System or the public lands.
``(B) Knutson-vanderberg act.--The Act of June 9,
1930 (commonly known as the `Knutson-Vanderberg Act')
(16 U.S.C. 576 et seq.) shall not apply to any
agreement or contract under subsection (b).
``(f) Costs of Removal.--Notwithstanding the fact that a contractor
did not harvest the timber, the Chief may collect deposits from a
contractor covering the costs of removal of timber or other forest
products under--
``(1) the Act of August 11, 1916 (16 U.S.C. 490); and
``(2) the Act of June 30, 1914 (16 U.S.C. 498).
``(g) Performance and Payment Guarantees.--
``(1) In general.--The Chief and the Director may require
performance and payment bonds under sections 28.103-2 and
28.103-3 of the Federal Acquisition Regulation, in an amount
that the contracting officer considers sufficient to protect
the investment in receipts by the Federal Government generated
by the contractor from the estimated value of the forest
products to be removed under a contract under subsection (b).
``(2) Excess offset value.--If the offset value of the
forest products exceeds the value of the resource improvement
treatments, the Chief and the Director may--
``(A) collect any residual receipts under the Act
of June 9, 1930 (commonly known as the `Knutson-
Vanderberg Act') (16 U.S.C. 576 et seq.); and
``(B) apply the excess to other authorized
stewardship projects.
``(h) Monitoring and Evaluation.--
``(1) In general.--The Chief and the Director shall
establish a multiparty monitoring and evaluation process that
accesses the stewardship contracting projects conducted under
this section.
``(2) Participants.--Other than the Chief and Director,
participants in the process described in paragraph (1) may
include--
``(A) any cooperating governmental agencies,
including tribal governments; and
``(B) any other interested groups or individuals.
``(i) Reporting.--Not later than 1 year after the date of enactment
of this section, and annually thereafter, the Chief and the Director
shall report to the Committee on Agriculture, Nutrition, and Forestry
of the Senate and the Committee on Agriculture of the House of
Representatives on--
``(1) the status of development, execution, and
administration of agreements or contracts under subsection (b);
``(2) the specific accomplishments that have resulted; and
``(3) the role of local communities in the development of
agreements or contract plans.''.
(b) Conforming Amendment.--Section 347 of the Department of the
Interior and Related Agencies Appropriations Act, 1999 (16 U.S.C. 2104
note; Public Law 105-277) is repealed.
SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.
(a) Definition of Acreage Owned by Indian Tribes.--Section
502(e)(3) of the Healthy Forests Restoration Act (16 U.S.C. 6572(e)(3))
is amended--
(1) in subparagraph (C), by striking ``subparagraphs (A)
and (B)'' and inserting ``clauses (i) and (ii)'';
(2) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and indenting
appropriately; and
(3) by striking ``In the case of'' and inserting the
following:
``(A) Definition of acreage owned by indian
tribes.--In this paragraph, the term `acreage owned by
Indian tribes' includes--
``(i) land that is held in trust by the
United States for Indian tribes or individual
Indians;
``(ii) land, the title to which is held by
Indian tribes or individual Indians subject to
Federal restrictions against alienation or
encumbrance;
``(iii) land that is subject to rights of
use, occupancy, and benefit of certain Indian
tribes;
``(iv) land that is held in fee title by an
Indian tribe;
``(v) land that is owned by a native
corporation formed under section 17 of the Act
of June 18, 1934 (commonly known as the `Indian
Reorganization Act') (25 U.S.C. 477) or section
8 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1607); or
``(vi) a combination of 1 or more types of
land described in clauses (i) through (v).
``(B) Enrollment of acreage.--In the case of''.
(b) Change in Funding Source for Healthy Forests Reserve Program.--
Section 508 of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
6578) is amended--
(1) in subsection (a), by striking ``In General'' and
inserting ``Fiscal Years 2009 Through 2013'';
(2) by redesignating subsection (b) as subsection (d); and
(3) by inserting after subsection (a) the following:
``(b) Fiscal Years 2014 Through 2018.--There is authorized to be
appropriated to the Secretary of Agriculture to carry out this section
$9,750,000 for each of fiscal years 2014 through 2018.
``(c) Additional Source of Funds.--In addition to funds
appropriated pursuant to the authorization of appropriations in
subsection (b) for a fiscal year, the Secretary may use such amount of
the funds appropriated for that fiscal year to carry out the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590a et seq.) as the
Secretary determines necessary to cover the cost of technical
assistance, management, and enforcement responsibilities for land
enrolled in the healthy forests reserve program pursuant to subsections
(a) and (b) of section 504.''.
Subtitle D--Miscellaneous Provisions
SEC. 8301. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.
(a) 1890 Waivers.--Section 4 of Public Law 87-788 (commonly known
as the ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-
3) is amended by inserting ``The matching funds requirement shall not
be applicable to eligible 1890 Institutions (as defined in section 2 of
the Agricultural Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7601)) if the allocation is below $200,000.'' before ``The
Secretary is authorized'' in the second sentence.
(b) Participation.--Section 8 of Public Law 87-788 (commonly known
as the ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-
7) is amended by inserting ``the Federated States of Micronesia,
American Samoa, the Northern Mariana Islands, the District of
Columbia,'' before ``and Guam''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2013.
SEC. 8302. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY AND
ANALYSIS.
(a) Revision Required.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall revise the
strategic plan for forest inventory and analysis initially prepared
pursuant to section 3(e) of the Forest and Rangeland Renewable
Resources Research Act of 1978 (16 U.S.C. 1642(e)) to address the
requirements imposed by subsection (b).
(b) Elements of Revised Strategic Plan.--In revising the strategic
plan, the Secretary of Agriculture shall describe in detail the
organization, procedures, and funding needed to achieve each of the
following:
(1) Complete the transition to a fully annualized forest
inventory program and include inventory and analysis of
interior Alaska.
(2) Implement an annualized inventory of trees in urban
settings, including the status and trends of trees and forests,
and assessments of their ecosystem services, values, health,
and risk to pests and diseases.
(3) Report information on renewable biomass supplies and
carbon stocks at the local, State, regional, and national
level, including by ownership type.
(4) Engage State foresters and other users of information
from the forest inventory and analysis in reevaluating the list
of core data variables collected on forest inventory and
analysis plots with an emphasis on demonstrated need.
(5) Improve the timeliness of the timber product output
program and accessibility of the annualized information on that
database.
(6) Foster greater cooperation among the forest inventory
and analysis program, research station leaders, and State
foresters and other users of information from the forest
inventory and analysis.
(7) Availability of and access to non-Federal resources to
improve information analysis and information management.
(8) Collaborate with the Natural Resources Conservation
Service, National Aeronautics and Space Administration,
National Oceanic and Atmospheric Administration, and United
States Geological Survey to integrate remote sensing, spatial
analysis techniques, and other new technologies in the forest
inventory and analysis program.
(9) Understand and report on changes in land cover and use.
(10) Expand existing programs to promote sustainable forest
stewardship through increased understanding, in partnership
with other Federal agencies, of the over 10 million family
forest owners, their demographics, and the barriers to forest
stewardship.
(11) Implement procedures to improve the statistical
precision of estimates at the sub-State level.
(c) Submission of Revised Strategic Plan.--The Secretary of
Agriculture shall submit the revised strategic plan to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
SEC. 8303. REIMBURSEMENT OF FIRE FUNDS.
(a) Definition of State.--In this section, the term ``State''
means--
(1) a State; and
(2) the Commonwealth of Puerto Rico.
(b) In General.--If a State seeks reimbursement for amounts
expended for resources and services provided to another State for the
management and suppression of a wildfire, the Secretary of Agriculture,
subject to subsections (c) and (d)--
(1) may accept the reimbursement amounts from the other
State; and
(2) shall pay those amounts to the State seeking
reimbursement.
(c) Mutual Assistance Agreement.--As a condition of seeking and
providing reimbursement under subsection (b), the State seeking
reimbursement and the State providing reimbursement must each have a
mutual assistance agreement with the Forest Service or another Federal
agency for providing and receiving wildfire management and suppression
resources and services.
(d) Terms and Conditions.--The Secretary of Agriculture may
prescribe the terms and conditions determined to be necessary to carry
out subsection (b).
(e) Effect on Prior Reimbursements.--Any acceptance of funds or
reimbursements made by the Secretary of Agriculture before the date of
enactment of this Act that otherwise would have been authorized under
this section shall be considered to have been made in accordance with
this section.
TITLE IX--ENERGY
SEC. 9001. DEFINITIONS.
Section 9001 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8101) is amended--
(1) by redesignating paragraphs (9) through (12) and (13)
and (14) as paragraphs (10) through (13) and (15) and (16)
respectively;
(2) by inserting after paragraph (8) the following:
``(9) Forest product.--The term `forest product' means a
product made from materials derived from the practice of
forestry or the management of growing timber, including--
``(A) pulp, paper, paperboard, pellets, lumber, and
wood products; and
``(B) any recycled products derived from forest
materials.''; and
(3) by inserting after paragraph (13) (as redesignated by
paragraph (1)) the following:
``(14) Renewable chemical.--The term `renewable chemical'
means a monomer, polymer, plastic, formulated product, or
chemical substance produced from renewable biomass.''.
SEC. 9002. BIOBASED MARKETS PROGRAM.
(a) In General.--Section 9002 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8102) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A)(i)--
(i) in subclause (I), by striking ``and''
at the end;
(ii) in subclause (II)(bb), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(III) establish a targeted
biobased-only procurement requirement
under which the procuring agency shall
issue a certain number of biobased-only
contracts when the procuring agency is
purchasing products, or purchasing
services that include the use of
products, that are included in a
biobased product category designated by
the Secretary.''; and
(B) in paragraph (3)--
(i) in subparagraph (B)--
(I) in clause (v), by inserting
``as determined to be necessary by the
Secretary based on the availability of
data,'' before ``provide information'';
(II) by redesignating clauses (v)
and (vi) as clauses (vii) and (viii),
respectively; and
(III) by inserting after clause
(iv) the following:
``(v) require reporting of quantities and
types of biobased products purchased by
procuring agencies;
``(vi) focus on products that meet the
biobased content requirements, including forest
products, that apply an innovative approach to
growing, harvesting, sourcing, procuring,
processing, manufacturing, or application of
biobased products regardless of the date of
entry of the products into the marketplace;'';
and
(ii) by adding at the end the following:
``(F) Required designations.--Not later than 1 year
after the date of enactment of this subparagraph, the
Secretary shall begin to designate intermediate
ingredients or feedstocks and assembled and finished
biobased products in the guidelines issued under this
paragraph.'';
(2) in subsection (b)--
(A) in paragraph (3)--
(i) by striking ``The Secretary'' and
inserting the following:
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Auditing and compliance.--The Secretary may
carry out such auditing and compliance activities as
the Secretary determines to be necessary to ensure
compliance with subparagraph (A).''; and
(B) by adding at the end the following:
``(4) Assembled and finished products.--Not later than 1
year after the date of enactment of this paragraph, the
Secretary shall begin issuing criteria for determining which
assembled and finished products may qualify to receive the
label under paragraph (1).'';
(3) by redesignating subsections (d), (e), (f), (g), and
(h) as subsections (e), (f), (g), (i), and (j), respectively;
(4) by inserting after subsection (c) the following:
``(d) Outreach, Education, and Promotion.--
``(1) In general.--The Secretary may engage in outreach,
educational, and promotional activities intended to increase
knowledge, awareness, and benefits of biobased products.
``(2) Authorized activities.--In carrying out this
subsection, the Secretary may--
``(A) conduct consumer education and outreach
(including consumer and awareness surveys);
``(B) conduct outreach to and support for State and
local governments interested in implementing biobased
purchasing programs;
``(C) partner with industry and nonprofit groups to
produce educational and outreach materials and conduct
educational and outreach events;
``(D) sponsor special conferences and events to
bring together buyers and sellers of biobased products;
and
``(E) support pilot and demonstration projects.'';
(5) in subsection (h) (as redesignated by paragraph (3))--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A) by striking ``The report'' and inserting
``Each report under paragraph (1)'';
(ii) in subparagraph (A), by striking
``and'' at the end;
(iii) in subparagraph (B)(ii), by striking
the period at the end and inserting a
semicolon; and
(iv) by adding at the end the following:
``(C) the progress made by other Federal agencies
in compliance with the biobased procurement
requirements, including the quantity of purchases made;
and
``(D) the status of outreach, educational, and
promotional activities carried out by the Secretary
under subsection (d), including the attainment of
specific milestones and overall results.''; and
(B) by adding at the end the following:
``(3) Economic impact study and report.--
``(A) In general.--The Secretary shall conduct a
study to assess the economic impact of the biobased
products industry, including--
``(i) the quantity of biobased products
sold;
``(ii) the value of the biobased products;
``(iii) the quantity of jobs created;
``(iv) the quantity of petroleum displaced;
``(v) other environmental benefits; and
``(vi) areas in which the use or
manufacturing of biobased products could be
more effectively used, including identifying
any technical and economic obstacles and
recommending how those obstacles can be
overcome.
``(B) Report.--Not later than 180 days after the
date of enactment of this subparagraph, the Secretary
shall submit to Congress a report describing the
results of the study conducted under subparagraph
(A).'';
(6) by inserting after subsection (g) (as redesignated by
paragraph (3)) the following:
``(h) Forest Products Laboratory Coordination.--In determining
whether products are eligible for the `USDA Certified Biobased Product'
label, the Secretary (acting through the Forest Products Laboratory)
shall provide appropriate technical and other assistance to the program
and applicants for forest products.''; and
(7) in subsection (j) (as redesignated by paragraph (3))--
(A) in the heading of paragraph (1), by inserting
``for fiscal years 2008 through 2012'' after
``funding'';
(B) in the heading of paragraph (2), by inserting
``for fiscal years 2009 through 2013'' after
``funding''; and
(C) by adding at the end the following:
``(3) Fiscal years 2014 through 2018.--There is authorized
to be appropriated to carry out this section $2,000,000 for
each of fiscal years 2014 through 2018.
``(4) Mandatory funding for fiscal years 2014 through
2018.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $3,000,000 for
each of fiscal years 2014 through 2018.''.
(b) Conforming Amendment.--Section 944(c)(2)(A) of the Energy
Policy Act of 2005 (42 U.S.C. 16253(c)(2)(A)) is amended by striking
``section 9002(h)(1)'' and inserting ``section 9002(b)''.
SEC. 9003. BIOREFINERY, RENEWABLE CHEMICAL, AND BIOBASED PRODUCT
MANUFACTURING ASSISTANCE.
(a) Program Adjustments.--
(1) In general.--Section 9003 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8103) is amended--
(A) in the section heading, by inserting ``,
renewable chemical, and biobased product
manufacturing'' after ``biorefinery'';
(B) in subsection (a), in the matter preceding
paragraph (1), by inserting ``renewable chemicals, and
biobased product manufacturing'' after ``advanced
biofuels,'';
(C) in subsection (b)--
(i) by redesignating paragraphs (1) and (2)
as paragraphs (2) and (3), respectively; and
(ii) by inserting before paragraph (2) (as
so redesignated) the following:
``(1) Biobased product manufacturing.--The term `biobased
product manufacturing' means development, construction, and
retrofitting of technologically new commercial-scale processing
and manufacturing equipment and required facilities that will
be used to convert renewable chemicals and other biobased
outputs of biorefineries into end-user products on a commercial
scale.''; and
(D) in subsection (c)--
(i) in paragraph (1), by striking ``and''
at the end;
(ii) in paragraph (2), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(3) grants and loan guarantees to fund the development
and construction of renewable chemical and biobased product
manufacturing facilities.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on October 1, 2013.
(b) Funding.--Section 9003(h) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8103(h)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Mandatory funding.--
``(A) In general.--Subject to subparagraph (B), of
the funds of the Commodity Credit Corporation, the
Secretary shall use for the cost of loan guarantees
under this section, to remain available until
expended--
``(i) $100,000,000 for fiscal year 2014;
and
``(ii) $58,000,000 for each of fiscal years
2015 and 2016.
``(B) Biobased product manufacturing.--Of the total
amount of funds made available for fiscal years 2014
and 2015 under subparagraph (A), the Secretary use for
the cost of loan guarantees under this section not more
than $25,000,000 to promote biobased product
manufacturing.''; and
(2) in paragraph (2), by striking ``2013'' and inserting
``2018''.
SEC. 9004. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.
Section 9005(g) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8105(g)) is amended--
(1) in the heading of paragraph (1), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(2) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2013'' after ``funding'';
(3) by redesignating paragraph (3) as paragraph (4); and
(4) by inserting after paragraph (2) the following:
``(3) Fiscal years 2014 through 2018.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2014 through 2018.''.
SEC. 9005. BIODIESEL FUEL EDUCATION PROGRAM.
Section 9006(d) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8106(d)) is amended--
(1) in paragraph (1)--
(A) in the heading, by striking ``Fiscal years 2009
through 2012'' and inserting ``Mandatory funding'' ;
and
(B) by striking ``2012'' and inserting ``2018'';
and
(2) in paragraph (2), by striking ``fiscal year 2013'' and
inserting ``each of fiscal years 2014 through 2018''.
SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.
(a) Program Adjustments.--
(1) In general.--Section 9007 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8107) is amended--
(A) in subsection (b)(2)--
(i) in subparagraph (C), by striking
``and'' at the end;
(ii) by redesignating subparagraph (D) as
subparagraph (E); and
(iii) by inserting after subparagraph (C)
the following:
``(D) a council (as defined in section 1528 of the
Agriculture and Food Act of 1981 (16 U.S.C. 3451));
and''; and
(B) in subsection (c)--
(i) in paragraph (1)(A), by inserting ``,
such as for agricultural and associated
residential purposes'' after ``electricity'';
(ii) by striking paragraph (3);
(iii) by redesignating paragraph (4) as
paragraph (3);
(iv) in paragraph (3) (as so redesignated),
by striking subparagraph (A) and inserting the
following:
``(A) Grants.--The amount of a grant under this
subsection shall not exceed the lesser of--
``(i) $500,000; and
``(ii) 25 percent of the cost of the
activity carried out using funds from the
grant.''; and
(v) by adding at the end the following:
``(4) Tiered application process.--
``(A) In general.--In providing loan guarantees and
grants under this subsection, the Secretary shall use a
3-tiered application process that reflects the size of
proposed projects in accordance with this paragraph.
``(B) Tier 1.--The Secretary shall establish a
separate application process for projects for which the
cost of the activity funded under this subsection is
not more than $80,000.
``(C) Tier 2.--The Secretary shall establish a
separate application process for projects for which the
cost of the activity funded under this subsection is
greater than $80,000 but less than $200,000.
``(D) Tier 3.--The Secretary shall establish a
separate application process for projects for which the
cost of the activity funded under this subsection is
equal to or greater than $200,000.
``(E) Application process.--The Secretary shall
establish an application, evaluation, and oversight
process that is the most simplified for tier I projects
and more comprehensive for each subsequent tier.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on October 1, 2013.
(b) Funding.--Section 9007(g) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8107(g)) is amended--
(1) in the heading of paragraph (1), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(2) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(3) in the heading of paragraph (3), by inserting ``for
fiscal years 2009 through 2013'' after ``funding''; and
(4) by adding at the end the following:
``(4) Fiscal years 2014 through 2018.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2014 through 2018.
``(5) Mandatory funding for fiscal years 2014 through
2018.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $68,200,000 for
each of fiscal years 2014 through 2018.''.
SEC. 9007. BIOMASS RESEARCH AND DEVELOPMENT.
Section 9008(h) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8108(h)) is amended--
(1) in the heading of paragraph (1), by inserting ``for
fiscal years 2009 through 2012'' after ``funding'';
(2) in the heading of paragraph (2), by inserting ``for
fiscal years 2009 through 2013'' after ``funding''; and
(3) by adding at the end the following:
``(3) Fiscal years 2014 through 2018.--There is authorized
to be appropriated to carry out this section $30,000,000 for
each of fiscal years 2014 through 2018.
``(4) Mandatory funding for fiscal years 2014 through
2018.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $26,000,000 for
each of fiscal years 2014 through 2018.''.
SEC. 9008. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.
Section 9010(b) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8110(b)) is amended--
(1) in paragraph (1)(A), by striking ``2013'' and inserting
``2018''; and
(2) in paragraph (2)(A), by striking ``2013'' and inserting
``2018''.
SEC. 9009. BIOMASS CROP ASSISTANCE PROGRAM.
Section 9011 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8111) is amended to read as follows:
``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) BCAP.--The term `BCAP' means the Biomass Crop
Assistance Program established under this section.
``(2) BCAP project area.--The term `BCAP project area'
means an area that--
``(A) has specified boundaries that are submitted
to the Secretary by the project sponsor and
subsequently approved by the Secretary;
``(B) includes producers with contract acreage that
will supply a portion of the renewable biomass needed
by a biomass conversion facility; and
``(C) is physically located within an economically
practicable distance from the biomass conversion
facility.
``(3) Contract acreage.--The term `contract acreage' means
eligible land that is covered by a BCAP contract entered into
with the Secretary.
``(4) Eligible crop.--
``(A) In general.--The term `eligible crop' means a
crop of renewable biomass.
``(B) Exclusions.--The term `eligible crop' does
not include--
``(i) any crop that is eligible to receive
payments under title I of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8702 et seq.) or an amendment made by that
title; or
``(ii) any plant that is invasive or
noxious or species or varieties of plants that
credible risk assessment tools or other
credible sources determine are potentially
invasive, as determined by the Secretary in
consultation with other appropriate Federal or
State departments and agencies.
``(5) Eligible land.--
``(A) In general.--The term `eligible land'
includes--
``(i) agricultural and nonindustrial
private forest lands (as defined in section
5(c) of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2103a(c))); and
``(ii) land enrolled in the conservation
reserve program established under subchapter B
of chapter I of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) or the Agricultural Conservation Easement
Program established under subtitle H of title
XII of that Act under a contract that will
expire at the end of the current fiscal year.
``(B) Exclusions.--The term `eligible land' does
not include--
``(i) Federal- or State-owned land;
``(ii) land that is native sod, as of the
date of enactment of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8701 et seq.);
``(iii) land enrolled in the conservation
reserve program established under subchapter B
of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831 et
seq.), other than land described in
subparagraph (A)(ii); or
``(iv) land enrolled in the Agricultural
Conservation Easement Program established under
subtitle H of title XII of that Act, other than
land described in subparagraph (A)(ii).
``(6) Eligible material.--
``(A) In general.--The term `eligible material'
means renewable biomass harvested directly from the
land, including crop residue from any crop that is
eligible to receive payments under title I of the
Agriculture Reform, Food, and Jobs Act of 2013 or an
amendment made by that title.
``(B) Inclusions.--The term `eligible material'
shall only include--
``(i) eligible material that is collected
or harvested by the eligible material owner--
``(I) directly from--
``(aa) National Forest
System;
``(bb) Bureau of Land
Management land;
``(cc) non-Federal land; or
``(dd) land owned by an
individual Indian or Indian
tribe that is held in trust by
the United States for the
benefit of the individual
Indian or Indian tribe or
subject to a restriction
against alienation imposed by
the United States;
``(II) in a manner that is
consistent with--
``(aa) a conservation plan;
``(bb) a forest stewardship
plan; or
``(cc) a plan that the
Secretary determines is
equivalent to a plan described
in item (aa) or (bb) and
consistent with Executive Order
13112 (42 U.S.C. 4321 note;
relating to invasive species);
``(ii) if woody eligible material, woody
eligible material that is produced on land
other than contract acreage that--
``(I) is a byproduct of a
preventative treatment that is removed
to reduce hazardous fuel or to reduce
or contain disease or insect
infestation; and
``(II) if harvested from Federal
land, is harvested in accordance with
section 102(e) of the Healthy Forests
Restoration Act of 2003 (16 U.S.C.
6512(e)); and
``(iii) eligible material that is delivered
to a qualified biomass conversion facility to
be used for heat, power, biobased products,
research, or advanced biofuels.
``(C) Exclusions.--The term `eligible material'
does not include--
``(i) material that is whole grain from any
crop that is eligible to receive payments under
title I of the Agriculture Reform, Food, and
Jobs Act of 2013 or an amendment made by that
title, including--
``(I) barley, corn, grain sorghum,
oats, rice, or wheat;
``(II) honey;
``(III) mohair;
``(IV) oilseeds, including canola,
crambe, flaxseed, mustard seed,
rapeseed, safflower seed, soybeans,
sesame seed, and sunflower seed;
``(V) peanuts;
``(VI) pulse;
``(VII) chickpeas, lentils, and dry
peas;
``(VIII) dairy products;
``(IX) sugar; and
``(X) wool and cotton boll fiber;
``(ii) animal waste and byproducts,
including fat, oil, grease, and manure;
``(iii) food waste and yard waste;
``(iv) algae;
``(v) woody eligible material that--
``(I) is removed outside contract
acreage; and
``(II) is not a byproduct of a
preventative treatment to reduce
hazardous fuel or to reduce or contain
disease or insect infestation;
``(vi) any woody eligible material
collected or harvested outside contract acreage
that would otherwise be used for existing
market products; or
``(vii) bagasse.
``(7) Producer.--The term `producer' means an owner or
operator of contract acreage that is physically located within
a BCAP project area.
``(8) Project sponsor.--The term `project sponsor' means--
``(A) a group of producers; or
``(B) a biomass conversion facility.
``(9) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 2501(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
``(b) Establishment and Purpose.--The Secretary shall establish and
administer a Biomass Crop Assistance Program to--
``(1) support the establishment and production of eligible
crops for conversion to bioenergy in selected BCAP project
areas; and
``(2) assist agricultural and forest land owners and
operators with the collection, harvest, storage, and
transportation of eligible material for use in a biomass
conversion facility.
``(c) BCAP Project Area.--
``(1) In general.--The Secretary shall provide financial
assistance to a producer of an eligible crop in a BCAP project
area.
``(2) Selection of project areas.--
``(A) In general.--To be considered for selection
as a BCAP project area, a project sponsor shall submit
to the Secretary a proposal that, at a minimum,
includes--
``(i) a description of the eligible land
and eligible crops of each producer that will
participate in the proposed BCAP project area;
``(ii) a letter of commitment from a
biomass conversion facility that the facility
will use the eligible crops intended to be
produced in the proposed BCAP project area;
``(iii) evidence that the biomass
conversion facility has sufficient equity
available, as determined by the Secretary, if
the biomass conversion facility is not
operational at the time the proposal is
submitted to the Secretary; and
``(iv) any other information about the
biomass conversion facility or proposed biomass
conversion facility that the Secretary
determines necessary for the Secretary to be
reasonably assured that the plant will be in
operation by the date on which the eligible
crops are ready for harvest.
``(B) BCAP project area selection criteria.--In
selecting BCAP project areas, the Secretary shall
consider--
``(i) the volume of the eligible crops
proposed to be produced in the proposed BCAP
project area and the probability that those
crops will be used for the purposes of the
BCAP;
``(ii) the volume of renewable biomass
projected to be available from sources other
than the eligible crops grown on contract
acres;
``(iii) the anticipated economic impact in
the proposed BCAP project area;
``(iv) the opportunity for producers and
local investors to participate in the ownership
of the biomass conversion facility in the
proposed BCAP project area;
``(v) the participation rate by--
``(I) beginning farmers or ranchers
(as defined in accordance with section
343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C.
1991(a))); or
``(II) socially disadvantaged
farmers or ranchers;
``(vi) the impact on soil, water, and
related resources;
``(vii) the variety in biomass production
approaches within a project area, including (as
appropriate)--
``(I) agronomic conditions;
``(II) harvest and postharvest
practices; and
``(III) monoculture and polyculture
crop mixes;
``(viii) the range of eligible crops among
project areas; and
``(ix) any additional information that the
Secretary determines to be necessary.
``(3) Contract.--
``(A) In general.--On approval of a BCAP project
area by the Secretary, each producer in the BCAP
project area shall enter into a contract directly with
the Secretary.
``(B) Minimum terms.--At a minimum, a contract
under this subsection shall include terms that cover--
``(i) an agreement to make available to the
Secretary, or to an institution of higher
education or other entity designated by the
Secretary, such information as the Secretary
considers to be appropriate to promote the
production of eligible crops and the
development of biomass conversion technology;
``(ii) compliance with the highly erodible
land conservation requirements of subtitle B of
title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and the wetland
conservation requirements of subtitle C of
title XII of that Act (16 U.S.C. 3821 et seq.);
``(iii) the implementation of (as
determined by the Secretary)--
``(I) a conservation plan;
``(II) a forest stewardship plan;
or
``(III) a plan that is equivalent
to a conservation or forest stewardship
plan; and
``(iv) any additional requirements that
Secretary determines to be necessary.
``(C) Duration.--A contract under this subsection
shall have a term of not more than--
``(i) 5 years for annual and perennial
crops; or
``(ii) 15 years for woody biomass.
``(4) Relationship to other programs.--In carrying out this
subsection, the Secretary shall provide for the preservation of
cropland base and yield history applicable to the land enrolled
in a BCAP contract.
``(5) Payments.--
``(A) In general.--The Secretary shall make
establishment and annual payments directly to producers
to support the establishment and production of eligible
crops on contract acreage.
``(B) Amount of establishment payments.--
``(i) In general.--Subject to clause (ii),
the amount of an establishment payment under
this subsection shall be not more than 50
percent of the costs of establishing an
eligible perennial crop covered by the contract
but not to exceed $500 per acre, including--
``(I) the cost of seeds and stock
for perennials;
``(II) the cost of planting the
perennial crop, as determined by the
Secretary; and
``(III) in the case of
nonindustrial private forestland, the
costs of site preparation and tree
planting.
``(ii) Socially disadvantaged farmers or
ranchers.--In the case of socially
disadvantaged farmers or ranchers, the costs of
establishment may not exceed $750 per acre.
``(C) Amount of annual payments.--
``(i) In general.--Subject to clause (ii),
the amount of an annual payment under this
subsection shall be determined by the
Secretary.
``(ii) Reduction.--The Secretary shall
reduce an annual payment by an amount
determined to be appropriate by the Secretary,
if--
``(I) an eligible crop is used for
purposes other than the production of
energy at the biomass conversion
facility;
``(II) an eligible crop is
delivered to the biomass conversion
facility;
``(III) the producer receives a
payment under subsection (d);
``(IV) the producer violates a term
of the contract; or
``(V) the Secretary determines a
reduction is necessary to carry out
this section.
``(D) Exclusion.--The Secretary shall not make any
BCAP payments on land for which payments are received
under the conservation reserve program established
under subchapter B of chapter 1 of subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) or the agricultural conservation easement program
established under subtitle H of title XII of that Act.
``(d) Assistance With Collection, Harvest, Storage, and
Transportation.--
``(1) In general.--The Secretary shall make a payment for
the delivery of eligible material to a biomass conversion
facility to--
``(A) a producer of an eligible crop that is
produced on BCAP contract acreage; or
``(B) a person with the right to collect or harvest
eligible material, regardless of whether the eligible
material is produced on contract acreage.
``(2) Payments.--
``(A) Costs covered.--A payment under this
subsection shall be in an amount described in
subparagraph (B) for--
``(i) collection;
``(ii) harvest;
``(iii) storage; and
``(iv) transportation to a biomass
conversion facility.
``(B) Amount.--Subject to paragraph (3), the
Secretary may provide matching payments at a rate of up
to $1 for each $1 per ton provided by the biomass
conversion facility, in an amount not to exceed $20 per
dry ton for a period of 4 years.
``(3) Limitation on assistance for bcap contract acreage.--
As a condition of the receipt of an annual payment under
subsection (c), a producer receiving a payment under this
subsection for collection, harvest, storage, or transportation
of an eligible crop produced on BCAP acreage shall agree to a
reduction in the annual payment.
``(e) Report.--Not later than 4 years after the date of enactment
of the Agriculture Reform, Food, and Jobs Act of 2013, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report on the dissemination by the Secretary
of the best practice data and information gathered from participants
receiving assistance under this section.
``(f) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section
$38,600,000 for each of fiscal years 2014 through 2018.
``(2) Collection, harvest, storage, and transportation
payments.--Of the amount made available under paragraph (1) for
each fiscal year, the Secretary shall use not less than 10
percent, nor more than 50 percent, of the amount to make
collection, harvest, transportation, and storage payments under
subsection (d)(2).''.
SEC. 9010. REPEAL OF FOREST BIOMASS FOR ENERGY.
Section 9012 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8112) is repealed.
SEC. 9011. COMMUNITY WOOD ENERGY PROGRAM.
(a) Definition of Biomass Consumer Cooperative.--Section 9013(a) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(a))
is amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Biomass consumer cooperative.--The term `biomass
consumer cooperative' means a consumer membership organization
the purpose of which is to provide members with services or
discounts relating to the purchase of biomass heating products
or biomass heating systems.''.
(b) Grant Program.--Section 9013(b)(1) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8113(b)(1)) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(C) grants of up to $50,000 to biomass consumer
cooperatives for the purpose of establishing or
expanding biomass consumer cooperatives that will
provide consumers with services or discounts relating
to--
``(i) the purchase of biomass heating
systems;
``(ii) biomass heating products, including
wood chips, wood pellets, and advanced
biofuels; or
``(iii) the delivery and storage of biomass
of heating products.''.
(c) Matching Funds.--Section 9013(d) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8113(d)) is amended--
(1) by striking ``A State or local government that receives
a grant under subsection (b)'' and inserting the following:
``(1) State and local governments.--A State or local
government that receives a grant under subparagraph (A) or (B)
of subsection (b)(1)''; and
(2) by adding at the end the following:
``(2) Biomass consumer cooperatives.--A biomass consumer
cooperative that receives a grant under subsection (b)(1)(C)
shall contribute an amount of non-Federal funds (which may
include State, local, and nonprofit funds and membership dues)
toward the establishment or expansion of a biomass consumer
cooperative that is at least equal to 50 percent of the amount
of Federal funds received for that purpose.''.
(d) Authorization of Appropriations.--Section 9013(e) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8113(e)) is amended
by striking ``2013'' and inserting ``2018''.
SEC. 9012. REPEAL OF RENEWABLE FERTILIZER STUDY.
Section 9003 of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 122 Stat. 2096) is repealed.
TITLE X--HORTICULTURE
SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION.
Section 10107(b) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 1622b(b)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
CROPS.
Section 10403 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 1622c) is repealed.
SEC. 10003. FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM.
Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7
U.S.C. 3005) is amended--
(1) in the section heading, by adding ``and Local Food''
after ``Market'';
(2) in subsection (a)--
(A) by inserting ``and Local Food'' after
``Market'';
(B) by striking ``farmers' markets and to
promote''; and
(C) by inserting ``and local food capacity
development'' before the period at the end;
(3) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) In general.--The purposes of the Program are to
increase domestic consumption of and access to locally and
regionally produced agricultural products by developing,
improving, expanding, and providing outreach, training, and
technical assistance to, or assisting in the development,
improvement and expansion of--
``(A) domestic farmers' markets, roadside stands,
community-supported agriculture programs, agritourism
activities, and other direct producer-to-consumer
market opportunities; and
``(B) local and regional food enterprises that are
not direct producer-to-consumer markets but process,
distribute, aggregate, store, and market locally or
regionally produced food products.'';
(4) in subsection (c)(1)--
(A) by inserting ``or other business entity'' after
``cooperative''; and
(B) by inserting ``, including a community
supported agriculture network or association'' after
``association'';
(5) by redesignating subsection (e) as subsection (f);
(6) by inserting after subsection (d) the following:
``(e) Priorities.--In providing grants under the Program, priority
shall be given to applications that include projects that--
``(1) benefit underserved communities;
``(2) develop market opportunities for small and mid-sized
farm and ranch operations; and
``(3) include a strategic plan to maximize the use of funds
to build capacity for local and regional food systems in a
community.''; and
(7) in subsection (f) (as redesignated by paragraph (5))--
(A) in paragraph (1)--
(i) in the heading, by striking ``Fiscal
years 2008 through 2012'' and inserting
``Mandatory funding'';
(ii) in subparagraph (B), by striking
``and'' after the semicolon 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) $20,000,000 for each of fiscal years 2014
through 2018.'';
(B) by striking paragraphs (3) and (5);
(C) by inserting after paragraph (2) the following:
``(3) Authorization of appropriations.--In addition to
funds made available under paragraph (1), there is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2014 through 2018.''; and
(D) by adding at the end the following:
``(5) Use of funds.--
``(A) In general.--Of the funds made available to
carry out the Program for each fiscal year, 50 percent
shall be used for the purposes described in subsection
(b)(1)(A) and 50 percent shall be used for the purposes
described in subsection (b)(1)(B).
``(B) Cost share.--To be eligible to receive a
grant for a project described in subsection (b)(1)(B),
a recipient shall provide a match in the form of cash
or in-kind contributions in an amount equal to 25
percent of the total cost of the project.
``(6) Administrative expenses.--Not more than 10 percent of
the total amount made available to carry out this section for a
fiscal year may be used for administrative expenses.
``(7) Limitations.--An eligible entity may not use a grant
or other assistance provided under the Program for the
purchase, construction, or rehabilitation of a building or
structure.''.
SEC. 10004. STUDY ON LOCAL FOOD PRODUCTION AND PROGRAM EVALUATION.
(a) In General.--The Secretary shall--
(1) collect data on the production and marketing of locally
or regionally produced agricultural food products;
(2) facilitate interagency collaboration and data sharing
on programs related to local and regional food systems; and
(3) monitor the effectiveness of programs designed to
expand or facilitate local food systems.
(b) Requirements.--In carrying out this section, the Secretary
shall, at a minimum--
(1) collect and distribute comprehensive reporting of
prices of locally or regionally produced agricultural food
products;
(2) conduct surveys and analysis and publish reports
relating to the production, handling, distribution, retail
sales, and trend studies (including consumer purchasing
patterns) of or on locally or regionally produced agricultural
food products;
(3) evaluate the effectiveness of existing programs in
growing local and regional food systems, including--
(A) the impact of local food systems on job
creation and economic development;
(B) the level of participation in the Farmers'
Market and Local Food Promotion Program established
under section 6 of the Farmer-to-Consumer Direct
Marketing Act of 1976 (7 U.S.C. 3005), including the
percentage of projects funded in comparison to
applicants and the types of eligible entities receiving
funds;
(C) the ability for participants to leverage
private capital and a synopsis of the places from which
non-Federal funds are derived; and
(D) any additional resources required to aid in the
development or expansion of local and regional food
systems;
(4) expand the Agricultural Resource Management Survey to
include questions on locally or regionally produced
agricultural food products; and
(5) seek to establish or expand private-public partnerships
to facilitate, to the maximum extent practicable, the
collection of data on locally or regionally produced
agricultural food products, including the development of a
nationally coordinated and regionally balanced evaluation of
the redevelopment of locally or regionally produced food
systems.
(c) Report.--Not later than 1 year after the date of enactment of
this Act and annually thereafter, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report describing the progress that has been made in implementing this
section and identifying any additional needs related to developing
local and regional food systems.
SEC. 10005. ORGANIC AGRICULTURE.
(a) Organic Production and Market Data Initiatives.--Section 7407
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c)
is amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by
inserting ``and annually thereafter'' after ``this
subsection'';
(B) in paragraph (1), by striking ``and'' at the
end;
(C) by redesignating paragraph (2) as paragraph
(3); and
(D) by inserting after paragraph (1) the following:
``(2) describes how data collection agencies (such as the
Agricultural Marketing Service and the National Agricultural
Statistics Service) are coordinating with data user agencies
(such as the Risk Management Agency) to ensure that data
collected under this section can be used by data user agencies,
including by the Risk Management Agency to offer price
elections for all organic crops; and''; and
(2) in subsection (d)--
(A) by striking paragraph (3);
(B) by redesignating paragraph (2) as paragraph
(3);
(C) by inserting after paragraph (1) the following:
``(2) Mandatory funding.--In addition to any funds
available under paragraph (1), of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $5,000,000, to remain available until expended.''; and
(D) in paragraph (3) (as redesignated by
subparagraph (B))--
(i) in the heading, by striking ``for
fiscal years 2008 through 2012'';
(ii) by striking ``paragraph (1)'' and
inserting ``paragraphs (1) and (2)''; and
(iii) by striking ``2012'' and inserting
``2018''.
(b) Modernization and Technology Upgrade for National Organic
Program.--Section 2123 of the Organic Foods Production Act of 1990 (7
U.S.C. 6522) is amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) by redesignating paragraph (6) as paragraph
(7); and
(C) by inserting after paragraph (5) the following:
``(6) $15,000,000 for each of fiscal years 2014 through
2018; and''; and
(2) by adding at the end the following:
``(c) Modernization and Technology Upgrade for National Organic
Program.--
``(1) In general.--The Secretary shall modernize database
and technology systems of the national organic program.
``(2) Funding.--Of the funds of the Commodity Credit
Corporation and in addition to any other funds made available
for that purpose, the Secretary shall make available to carry
out this subsection $5,000,000 for fiscal year 2014, to remain
available until expended.''.
SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES.
Section 10105(c) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 7655a(c)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 10007. COORDINATED PLANT MANAGEMENT PROGRAM.
(a) In General.--Section 420 of the Plant Protection Act (7 U.S.C.
7721) is amended--
(1) by striking the section heading and inserting
``coordinated plant management program.'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following:
``(e) National Clean Plant Network.--
``(1) In general.--The Secretary shall establish a program
to be known as the `National Clean Plant Network' (referred to
in this subsection as the `Program').
``(2) Requirements.--Under the Program, the Secretary shall
establish a network of clean plant centers for diagnostic and
pathogen elimination services--
``(A) to produce clean propagative plant material;
and
``(B) to maintain blocks of pathogen-tested plant
material in sites located throughout the United States.
``(3) Availability of clean plant source material.--Clean
plant source material produced or maintained under the Program
may be made available to--
``(A) a State for a certified plant program of the
State; and
``(B) private nurseries and producers.
``(4) Consultation and collaboration.--In carrying out the
Program, the Secretary shall--
``(A) consult with--
``(i) State departments of agriculture; and
``(ii) land-grant colleges and universities
and NLGCA Institutions (as those terms are
defined in section 1404 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)); and
``(B) to the extent practicable and with input from
the appropriate State officials and industry
representatives, use existing Federal or State
facilities to serve as clean plant centers.''.
(b) Funding.--Subsection (f) of section 420 of the Plant Protection
Act (7 U.S.C. 7721) (as redesignated by subsection (a)(2)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking ``and each fiscal year
thereafter.'' and inserting a semicolon; and
(3) by adding at the end the following:
``(5) $60,000,000 for each of fiscal years 2014 through
2017; and
``(6) $65,000,000 for fiscal year 2018 and each fiscal year
thereafter.''.
(c) Repeal of Existing Provision.--Section 10202 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is repealed.
(d) Clarification of Use of Funds for Technical Assistance.--
Section 420 of the Plant Protection Act (7 U.S.C. 7721) (as amended by
subsection (a)) is amended by adding at the end the following:
``(g) Relationship to Other Law.--The use of Commodity Credit
Corporation funds under this section to provide technical assistance
shall not be considered an allotment or fund transfer from the
Commodity Credit Corporation for purposes of the limit on expenditures
for technical assistance imposed by section 11 of the Commodity Credit
Corporation Charter Act (15 U.S.C. 714i).''.
SEC. 10008. SPECIALTY CROP BLOCK GRANTS.
Section 101 of the Specialty Crops Competitiveness Act of 2004 (7
U.S.C. 1621 note; Public Law 108-465) is amended--
(1) in subsection (a)--
(A) by striking ``subsection (j)'' and inserting
``subsection (l)''; and
(B) by striking ``2012'' and inserting ``2018'';
(2) by striking subsection (b) and inserting the following:
``(b) Grants Based on Value and Acreage.--Subject to subsection
(c), in the case of each State with an application for a grant for a
fiscal year that is accepted by the Secretary of Agriculture under
subsection (f), the amount of a grant for a fiscal year to a State
under this section shall bear the same ratio to the total amount made
available under subsection (l) for that fiscal year as--
``(1) the average of the most recent available value of
specialty crop production in the State and the acreage of
specialty crop production in the State, as demonstrated in the
most recent Census of Agriculture data; bears to
``(2) the average of the most recent available value of
specialty crop production in all States and the acreage of
specialty crop production in all States, as demonstrated in the
most recent Census of Agriculture data.'';
(3) by redesignating subsection (j) as subsection (l);
(4) by inserting after subsection (i) the following:
``(j) Multistate Projects.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Agriculture Reform, Food, and Jobs Act of
2013, the Secretary of Agriculture shall issue guidance for the
purpose of making grants to multistate projects under this
section for projects involving--
``(A) food safety;
``(B) plant pests and disease;
``(C) crop-specific projects addressing common
issues; and
``(D) any other area that furthers the purposes of
this section, as determined by the Secretary.
``(2) Funding.--Of the funds provided under subsection (l),
the Secretary of Agriculture may allocate for grants under this
subsection, to remain available until expended--
``(A) $1,000,000 for fiscal year 2014;
``(B) $2,000,000 for fiscal year 2015;
``(C) $3,000,000 for fiscal year 2016;
``(D) $4,000,000 for fiscal year 2017; and
``(E) $5,000,000 for fiscal year 2018.
``(k) Administration.--
``(1) Department.--The Secretary of Agriculture may not use
more than 3 percent of the funds made available to carry out
this section for a fiscal year for administrative expenses.
``(2) States.--A State receiving a grant under this section
may not use more than 8 percent of the funds received under the
grant for a fiscal year for administrative expenses.''; and
(5) in subsection (l) (as redesignated by paragraph (3))--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $70,000,000 for fiscal year 2014 and each fiscal year
thereafter.''.
SEC. 10009. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.
The Organic Foods Production Act of 1990 is amended by inserting
after section 2120 (7 U.S.C. 6519) the following:
``SEC. 2120A. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.
``(a) Recordkeeping.--
``(1) In general.--Except as otherwise provided in this
title, all persons, including producers, handlers, and
certifying agents, required to report information to the
Secretary under this title shall maintain, and make available
to the Secretary on the request of the Secretary, all
contracts, agreements, receipts, and other records associated
with the organic certification program established by the
Secretary under this title.
``(2) Duration of recordkeeping requirement.--A record
covered by paragraph (1) shall be maintained--
``(A) by a person covered by this title, except for
a certifying agent, for a period of 5 years beginning
on the date of the creation of the record; and
``(B) by a certifying agent, for a period of 10
years beginning on the date of the creation of the
record.
``(b) Confidentiality.--
``(1) In general.--Subject to paragraph (2), and except as
provided in section 2107(a)(9) and as otherwise directed by the
Secretary or the Attorney General for enforcement purposes, no
officer, employee, or agent of the United States shall make
available to the public information, statistics, or documents
obtained from or made available by any person under this title,
other than in a manner that ensures that confidentiality is
preserved regarding the identity of persons, including parties
to a contract, and proprietary business information.
``(2) Violators and nature of actions.--The Secretary may
release the name of the violator and the nature of the actions
triggering an order or revocation under subsection (e).
``(c) Investigation.--
``(1) In general.--The Secretary may take such
investigative actions as the Secretary considers to be
necessary to carry out this title--
``(A) to verify the accuracy of any information
reported or made available under this title; and
``(B) to determine, with regard to actions,
practices, or information required under this title,
whether a person covered by this title has committed,
or will commit, a violation of any provision of this
title, including an order or regulation promulgated by
the Secretary.
``(2) Investigative powers.--The Secretary may administer
oaths and affirmations, subpoena witnesses, compel attendance
of witnesses, take evidence, and require the production of any
records required to be maintained under subsection (a) or
section 2112(d) or 2116(c) that are relevant to the
investigation.
``(d) Unlawful Act.--It shall be unlawful and a violation of this
title for any person covered by this title--
``(1) to fail or refuse to provide, or delay the timely
provision of, accurate information required by the Secretary
under this section;
``(2) to violate--
``(A) an order of the Secretary;
``(B) a revocation of the organic certification of
a producer or handler; or
``(C) a revocation of the accreditation of a
certifying agent; or
``(3) to sell, or attempt to sell, a product that is
represented as being organically produced under this title
(including an order or regulation promulgated under this title)
if in fact the product has been produced or handled by an
operation that is not yet a certified organic producer or
handler under this title.
``(e) Enforcement.--
``(1) Order.--
``(A) In general.--The Secretary may issue an order
to stop the sale of an agricultural product that is
labeled or otherwise represented as being organically
produced in cases of suspected fraudulent or otherwise
unlawful acts as described in subsection (d) that are
willful, noncorrectable, or the subject of a combined
noncompliance and adverse action until the product can
be verified--
``(i) as meeting the national and State
standards for organic production and handling
as provided in sections 2105 through 2114;
``(ii) as having been produced or handled
without the use of a prohibited substance
listed under section 2118; and
``(iii) as being produced and handled by a
certified organic operation.
``(B) Affirmative defense to stop sale order.--
``(i) In general.--If a producer or handler
has a valid organic certification from the
Department of Agriculture, the burden shall
shift to the Secretary to prove fraud or
unlawful activity that is willful,
noncorrectable, or the subject of a combined
noncompliance and adverse action before a stop
sale order under subparagraph (A) may be
implemented.
``(ii) Information.--
``(I) In general.--The producer or
handler shall comply with any requests
of the Secretary for documents and
other information not later than 30
days after a request is made.
``(II) Noncompliance.--If the
producer or handler fails to comply
within the period described in
subclause (I), the Secretary may issue
a stop sale order.
``(C) Appeal of stop sale order.--
``(i) In general.--If the Secretary proves
fraud or unlawful activity that is willful,
noncorrectable, or the subject of a combined
noncompliance and adverse action, the
determination may be appealed through an
expedited administrative appeal process.
``(ii) Deadline.--The expedited appeal
process shall be completed not later than 30
days after the date of the issuance of the stop
sale order.
``(iii) Stay.--Any stop sale order shall be
stayed pending the 30 day-expedited appeal
under this subparagraph.
``(2) Certification or accreditation.--After notice and
opportunity for an administrative appeal under section 2121, if
a violation described in subparagraph (A)(ii) is determined to
have occurred and is an unlawful act under subsection (d), the
Secretary shall revoke the organic certification of the
producer or handler, or the accreditation of the certifying
agent.
``(3) Violation of order or revocation.--A person who
violates an order to stop the sale of a product as an
organically produced product under paragraph (1), or a
revocation of certification or accreditation under paragraph
(2), shall be subject to 1 or more of the penalties provided
under subsections (a) and (b) of section 2120.
``(f) Appeal.--
``(1) In general.--An order under subsection (e)(1), or a
revocation of certification or accreditation under subsection
(e)(2)(B), shall be final and conclusive unless the affected
person files an appeal of the order--
``(A) first, to the administrative appeals process
established under section 2121(a); and
``(B) after a final decision of the Secretary, if
the affected person so elects, to a United States
district court as provided in section 2121(b) not later
than 30 days after the date of the determination under
subparagraph (A).
``(2) Standard.--An order under subsection (e)(1)(A), or a
revocation of certification or accreditation under subsection
(e)(2), shall be set aside if the order, or the revocation of
certification or accreditation, fails to comply with section
706 of title 5, United States Code.
``(g) Noncompliance.--
``(1) In general.--If a person covered by this title fails
to obey an order, or a revocation of certification or
accreditation, described in subsection (f)(2) after the order
or revocation has become final and conclusive or after the
appropriate United States district court has entered a final
judgment in favor of the Secretary, the United States may apply
to the appropriate United States district court for enforcement
of the order, or the revocation of certification or
accreditation.
``(2) Enforcement.--If the court determines that the order
or revocation was lawfully made and duly served and that the
person violated the order or revocation, the court shall
enforce the order or revocation.
``(3) Civil penalty.--If the court finds that the person
violated the order or revocation, the person shall be subject
to a civil penalty of not more than $10,000 for each
offense.''.
SEC. 10010. REPORT ON HONEY.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with affected
stakeholders, shall submit to the Commissioner of Food and Drugs a
report describing how an appropriate Federal standard for the identity
of honey would promote honesty and fair dealing and would be in the
interest of consumers, the honey industry, and United States
agriculture.
(b) Contents.--In preparing the report under subsection (a), the
Secretary shall take into consideration the March 2006 Standard of
Identity citizens petition filed with the Food and Drug Administration,
including any current industry amendments or clarifications necessary
to update that 2006 petition.
SEC. 10011. REMOVAL OF AMS INSPECTION AUTHORITY OVER APPLES IN BULK
BINS.
(a) Definition of Bulk Bin.--In this section, the term ``bulk bin''
means a bin that contains a quantity of apples weighing more than 100
pounds.
(b) Prohibition.--Notwithstanding any other provision of law, the
Secretary of Agriculture, acting through the Agricultural Marketing
Service, shall have no authority to inspect apples in bulk bins prior
to export to Canada.
SEC. 10012. ORGANIC PRODUCT PROMOTION ORDERS.
(a) Exemption of Certified Organic Products From Promotion Order
Assessments.--Section 501 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7401) is amended by striking subsection
(e) and inserting the following:
``(e) Exemption of Certified Organic Products From Promotion Order
Assessments.--
``(1) In general.--Notwithstanding any provision of a
commodity promotion law, a person that produces, handles,
markets, or imports organic products may be exempt from the
payment of an assessment under a commodity promotion law with
respect to any agricultural commodity that is certified as
`organic' or `100 percent organic' (as defined in part 205 of
title 7, Code of Federal Regulations (or successor
regulations)).
``(2) Split operations.--The exemption described in
paragraph (1) shall apply to an agricultural commodity
described in that paragraph regardless of whether the
agricultural commodity subject to the exemption is produced,
handled, or marketed by a person that also produces, handles,
or markets conventional or nonorganic agricultural products,
including conventional or nonorganic agricultural products of
the same agricultural commodity as that for which the exemption
is claimed.
``(3) Approval.--The Secretary shall approve the exemption
of a person under this subsection if the person maintains a
valid organic certificate issued under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.).
``(4) Termination of effectiveness.--This subsection shall
be effective until the date on which the Secretary issues an
organic commodity promotion order in accordance with subsection
(f).
``(5) Regulations.--The Secretary shall promulgate
regulations concerning eligibility and compliance for an
exemption under paragraph (1).''.
(b) Organic Commodity Promotion Order.--Section 501 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401) (as
amended by subsection (a)) is amended by adding at the end the
following:
``(f) Organic Commodity Promotion Order.--
``(1) Definitions.--In this subsection:
``(A) Certified organic farm.--The term `certified
organic farm' has the meaning given the term in section
2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502).
``(B) Covered person.--The term `covered person'
means a producer, handler, marketer, or importer of an
organic agricultural commodity.
``(C) Dual-covered agricultural commodity.--The
term `dual-covered agricultural commodity' means an
agricultural commodity that--
``(i) is produced on a certified organic
farm; and
``(ii) is covered under both--
``(I) an organic commodity
promotion order issued under paragraph
(2); and
``(II) any other agricultural
commodity promotion order issued under
this section.
``(2) Authorization.--The Secretary may issue an organic
commodity promotion order under section 514 that includes any
agricultural commodity that--
``(A) is--
``(i) produced or handled (as defined in
section 2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502)); and
``(ii) certified to be sold or labeled as
`organic' or `100 percent organic' (as defined
in part 205 of title 7, Code of Federal
Regulations (or successor regulations)); or
``(B) is imported with a valid organic certificate
(as defined in that part).
``(3) Election.--If the Secretary issues an organic
commodity promotion order described in paragraph (2), a covered
person may elect, for applicable dual-covered agricultural
commodities and in the sole discretion of the covered person,
whether to be assessed under the organic commodity promotion
order or another applicable agricultural commodity promotion
order.
``(4) Regulations.--The Secretary shall promulgate
regulations concerning eligibility and compliance for an
exemption under paragraph (1).''.
(c) Definition of Agricultural Commodity.--Section 513(1) of the
Commodity Promotion, Research, and Information Act of 1996 (7 U.S.C.
7412(1)) is amended--
(1) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively; and
(2) by inserting after subparagraph (D) the following:
``(E) products, as a class, that are produced on a
certified organic farm (as defined in section 2103 of
the Organic Foods Production Act of 1990 (7 U.S.C.
6502)) and that are certified to be sold or labeled as
`organic' or `100 percent organic' (as defined in part
205 of title 7, Code of Federal Regulations (or
successor regulations));''.
SEC. 10013. EFFECTIVE DATE.
This title and the amendments made by this title take effect on
October 1, 2013.
TITLE XI--CROP INSURANCE
SEC. 11001. SUPPLEMENTAL COVERAGE OPTION.
(a) Availability of Supplemental Coverage Option.--Section 508(c)
of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by
striking paragraph (3) and inserting the following:
``(3) Yield and loss basis options.--A producer shall have
the option of purchasing additional coverage based on--
``(A)(i) an individual yield and loss basis; or
``(ii) an area yield and loss basis; or
``(B) an individual yield and loss basis,
supplemented with coverage based on an area yield and
loss basis to cover part of the deductible under the
individual yield and loss policy, as authorized in
paragraph (4)(C).''.
(b) Level of Coverage.--Section 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (4)
and inserting the following:
``(4) Level of coverage.--
``(A) Dollar denomination and percentage of
yield.--Except as provided in subparagraph (C), the
level of coverage--
``(i) shall be dollar denominated; and
``(ii) may be purchased at any level not to
exceed 85 percent of the individual yield or 95
percent of the area yield (as determined by the
Corporation).
``(B) Information.--The Corporation shall provide
producers with information on catastrophic risk and
additional coverage in terms of dollar coverage (within
the allowable limits of coverage provided in this
paragraph).
``(C) Supplemental coverage option.--
``(i) In general.--Notwithstanding
subparagraph (A), in the case of the
supplemental coverage option described in
paragraph (3)(B), the Corporation shall offer
producers the opportunity to purchase coverage
in combination with an individual buy up policy
or plan of insurance offered under this
subtitle that would allow indemnities to be
paid to a producer equal to part of the
deductible under the policy or plan of
insurance, if sufficient area data is available
(as determined by the Corporation).
``(ii) Deductible.--Coverage offered under
this subparagraph shall be subject to a
deductible in an amount equal to--
``(I) in the case of a producer who
participates in the agriculture risk
coverage program under section 1108(c)
of the Agriculture Reform, Food, and
Jobs Act of 2013, 22 percent of the
expected value of the crop of the
producer covered by the underlying
policy or plan of insurance, as
determined by the Corporation; and
``(II) in the case of all other
producers, 10 percent of the expected
value of the crop of the producer
covered by the underlying policy or
plan of insurance, as determined by the
Corporation.
``(iii) Coverage.--Subject to the
deductible imposed by clause (ii), coverage
offered under this subparagraph shall cover the
first loss incurred by the producer, not to
exceed the difference between--
``(I) 100 percent; and
``(II) the coverage level selected
by the producer for the underlying
policy or plan of insurance.
``(iv) Calculation of premium.--
Notwithstanding subsection (d), the premium
shall--
``(I) be sufficient to cover
anticipated losses and a reasonable
reserve; and
``(II) include an amount for
operating and administrative expenses
established in accordance with
subsection (k)(4)(F).''.
(c) Payment of Portion of Premium by Corporation.--Section
508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is
amended by adding at the end the following:
``(H) In the case of the supplemental coverage
option authorized in subsection (c)(4)(C), the amount
shall be equal to the sum of--
``(i) 65 percent of the additional premium
associated with the coverage; and
``(ii) the amount determined under
subsection (c)(4)(C)(iv)(II) for the coverage
to cover operating and administrative
expenses.''.
(d) Conforming Amendment.--Section 508(k)(4)(F) of the Federal Crop
Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting ``or
authorized under subsection (c)(4)(C)'' after ``of this subparagraph''.
(e) Effective Date.--The Federal Crop Insurance Corporation shall
begin to provide additional coverage based on an individual yield and
loss basis, supplemented with coverage based on an area yield and loss
basis, not later than for the 2014 crop year.
SEC. 11002. CROP MARGIN COVERAGE OPTION.
(a) Availability of Crop Margin Coverage Option.--Section 508(c)(3)
of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) (as amended by
section 11001(a)) is amended--
(1) in subparagraph (A)(ii), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) a margin basis alone or in combination with--
``(i) individual yield and loss coverage;
or
``(ii) area yield and loss coverage.''.
SEC. 11003. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION.
Section 508(d)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(d)(2)) is amended by striking subparagraph (A) and inserting the
following:
``(A) In the case of catastrophic risk protection,
the amount of the premium established by the
Corporation for each crop for which catastrophic risk
protection is available shall be reduced by the
percentage equal to the difference between the average
loss ratio for the crop and 100 percent, plus a
reasonable reserve, as determined by the
Corporation.''.
SEC. 11004. PERMANENT ENTERPRISE UNIT.
Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(5)) is amended by striking subparagraph (A) and inserting the
following:
``(A) In general.--The Corporation may pay a
portion of the premiums for plans or policies of
insurance for which the insurable unit is defined on a
whole farm or enterprise unit basis that is higher than
would otherwise be paid in accordance with paragraph
(2).''.
SEC. 11005. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED CROPS.
Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(5)) is amended by adding at the end the following:
``(D) Nonirrigated crops.--Beginning with the 2014
crop year, the Corporation shall make available
separate enterprise units for irrigated and
nonirrigated acreages of crops in counties.''.
SEC. 11006. DATA COLLECTION.
Section 508(g)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(g)(2)) is amended by adding at the end the following:
``(E) Sources of yield data.--To determine yields
under this paragraph, the Corporation--
``(i) shall use county data collected by
the Risk Management Agency or the National
Agricultural Statistics Service, or both; or
``(ii) if sufficient county data is not
available, may use other data considered
appropriate by the Secretary.''.
SEC. 11007. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH
INSURABLE YIELDS.
Section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C.
1508(g)(4)(B)) is amended--
(1) in the matter preceding clause (i), by inserting ``for
the 2013 crop year or any prior crop year, or 65 percent of the
applicable transitional yield for the 2014 or any subsequent
crop year,'' after ``transitional yield''; and
(2) in clause (ii), by striking ``60 percent of the
applicable transitional yield'' and inserting ``the applicable
percentage of the transitional yield described in this
subparagraph''.
SEC. 11008. SUBMISSION AND REVIEW OF POLICIES.
Section 508(h)(1) of the Federal Crop Insurance Act (7 U.S.C.
1508(h)(1)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and indenting appropriately;
(2) by striking ``(1) In general.--'' and inserting the
following:
``(1) Submission and review of policies.--
``(A) Submissions.--In addition''; and
(3) by adding at the end the following:
``(B) Review.--The Corporation shall review any
policy developed under section 522(c) or any pilot
program developed under section 523 and submit the
policy or program to the Board under this subsection if
the Corporation, at the sole discretion of the
Corporation, finds that the policy or program--
``(i) will likely result in a viable and
marketable policy consistent with this
subsection;
``(ii) would provide crop insurance
coverage in a significantly improved form; and
``(iii) adequately protects the interests
of producers.''.
SEC. 11009. BOARD REVIEW AND APPROVAL.
(a) Review and Approval by the Board.--Section 508(h) of the
Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by striking
paragraph (3) and inserting the following:
``(3) Review and approval by the board.--
``(A) In general.--A policy, plan of insurance, or
other material submitted to the Board under this
subsection shall be reviewed by the Board and shall be
approved by the Board for reinsurance and for sale by
approved insurance providers to producers at
actuarially appropriate rates and under appropriate
terms and conditions if the Board, at the sole
discretion of the Board, determines that--
``(i) the interests of producers are
adequately protected;
``(ii) the rates of premium and price
election methodology are actuarially
appropriate;
``(iii) the terms and conditions for the
proposed policy or plan of insurance are
appropriate and would not unfairly discriminate
among producers;
``(iv) the proposed policy or plan of
insurance will, at the sole discretion of the
Board--
``(I) likely result in a viable and
marketable policy that can reasonably
attain levels of participation similar
to other like policies or plans of
insurance;
``(II) provide crop insurance
coverage in a significantly improved
form or in a manner that addresses a
recognized flaw or problem in an
existing policy; or
``(III) provide a new kind of
coverage for a commodity that
previously had no available crop
insurance, or has demonstrated a low
level of participation under existing
coverage;
``(v) the proposed policy or plan of
insurance will, at the sole discretion of the
Board, not have a significant adverse impact on
the crop insurance delivery system; and
``(vi) the proposed policy or plan of
insurance meets such other requirements as are
determined appropriate by the Board.
``(B) Priorities.--
``(i) Establishment.--The Board, at the
sole discretion of the Board, may--
``(I) annually establish priorities
under this subsection that specify
types of submissions needed to fulfill
the portfolio of policies or plans of
insurance to be reviewed and approved
under this subsection; and
``(II) make the priorities
available on the website of the
Corporation.
``(ii) Process.--
``(I) In general.--Policies or
plans of insurance that satisfy the
priorities established by the Board
under this subsection shall be
considered by the Board for approval
prior to other submissions.
``(II) Considerations.--In
approving policies or plans of
insurance, the Board shall--
``(aa) consider providing
the highest priorities for
policies or plans of insurance
that address underserved
commodities, including
commodities for which there is
no insurance; and
``(bb) consider providing
the highest priorities for
existing policies for which
there is inadequate coverage or
there exists low levels of
participation.
``(iii) Other criteria.--The Board may
establish such other criteria as the Board
determines to meet the needs of producers and
the priorities of this subsection, consistent
with the purposes of this subtitle.''.
SEC. 11010. CONSULTATION.
Section 508(h)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(h)) is amended by adding at the end the following:
``(E) Consultation.--
``(i) Requirement.--As part of the
feasibility and research associated with the
development of a policy or other material
conducted prior to making a submission to the
Board under this subsection, the submitter
shall consult with groups representing
producers of agricultural commodities in all
major producing areas for the commodities to be
served or potentially impacted, either directly
or indirectly.
``(ii) Submission to the board.--Any
submission made to the Board under this
subsection shall contain a summary and analysis
of the feasibility and research findings from
the impacted groups described in clause (i),
including a summary assessment of the support
for or against development of the policy and an
assessment on the impact of the proposed policy
to the general marketing and production of the
crop from both a regional and national
perspective.
``(iii) Evaluation by the board.--In
evaluating whether the interests of producers
are adequately protected pursuant to paragraph
(3) with respect to an submission made under
this subsection, the Board shall review the
information provided pursuant to clause (ii) to
determine if the submission will create adverse
market distortions with respect to the
production of commodities that are the subject
of the submission.''.
SEC. 11011. BUDGET LIMITATIONS ON RENEGOTIATION OF THE STANDARD
REINSURANCE AGREEMENT.
Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(8)) is amended by adding at the end the following:
``(F) Budget.--
``(i) In general.--The Board shall ensure
that any Standard Reinsurance Agreement
negotiated under subparagraph (A)(ii), as
compared to the previous Standard Reinsurance
Agreement--
``(I) to the maximum extent
practicable, shall be budget neutral;
and
``(II) in no event, may
significantly depart from budget
neutrality.
``(ii) Use of savings.--To the extent that
any budget savings is realized in the
renegotiation of a Standard Reinsurance
Agreement under subparagraph (A)(ii), and the
savings are determined not to be a significant
departure from budget neutrality under clause
(i), the savings shall be used for programs
administered or managed by the Risk Management
Agency.''.
SEC. 11012. TEST WEIGHT FOR CORN.
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m))
is amended by adding at the end the following:
``(6) Test weight for corn.--
``(A) In general.--The Corporation shall establish
procedures to allow insured producers not more than 120
days to settle claims, in accordance with procedures
established by the Secretary, involving corn that is
determined to have low test weight.
``(B) Implementation.--As soon as practicable after
the date of enactment of this paragraph, the
Corporation shall implement subparagraph (A) on a
regional basis based on market conditions and the
interests of producers.
``(C) Termination of effectiveness.--The authority
provided by this paragraph terminates effective on the
date that is 5 years after the date on which
subparagraph (A) is implemented.''.
SEC. 11013. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
COTTON.
(a) Availability of Stacked Income Protection Plan.--The Federal
Crop Insurance Act is amended by inserting after section 508A (7 U.S.C.
1508a) the following:
``SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
COTTON.
``(a) Availability.--Beginning not later than the 2014 crop of
upland cotton, if practicable, the Corporation shall make available to
producers of maximum eligible acres of upland cotton an additional
policy (to be known as the `Stacked Income Protection Plan'), which
shall provide coverage consistent with the Group Risk Income Protection
Plan (and the associated Harvest Revenue Option Endorsement) offered by
the Corporation for the 2011 crop year.
``(b) Required Terms.--The Corporation may modify the Stacked
Income Protection Plan on a program-wide basis, except that the Stacked
Income Protection Plan shall comply with the following requirements:
``(1)(A) Provide coverage for revenue loss of not more than
30 percent of expected county revenue, specified in increments
of 5 percent.
``(B) The deductible is the minimum percent of revenue loss
at which indemnities are triggered under the plan, not to be
less than 10 percent of the expected county revenue.
``(C) Once the deductible is met, any losses in excess of
the deductible will be paid up to the coverage selected by the
producer.
``(2) Be offered to producers of upland cotton in all
counties with upland cotton production--
``(A) at a county-wide level to the fullest extent
practicable; or
``(B) in counties that lack sufficient data, on the
basis of such larger geographical area as the
Corporation determines to provide sufficient data for
purposes of providing the coverage.
``(3) Be purchased in addition to any other individual or
area coverage in effect on the producer's acreage or as a
stand-alone policy, except that if a producer has an individual
or area coverage for the same acreage, the maximum coverage
available under the Stacked Income Protection Plan shall not
exceed the deductible for the individual or area coverage.
``(4) Establish coverage based on--
``(A) an expected price that is the expected price
established under existing Group Risk Income Protection
or area wide policy offered by the Corporation for the
applicable county (or area) and crop year; and
``(B) an expected county yield that is the higher
of--
``(i) the expected county yield established
for the existing area-wide plans offered by the
Corporation for the applicable county (or area)
and crop year (or, in geographic areas where
area-wide plans are not offered, an expected
yield determined in a manner consistent with
those of area-wide plans); or
``(ii)(I) the average of the applicable
yield data for the county (or area) for the
most recent 5 years, excluding the highest and
lowest observations, from the Risk Management
Agency or the National Agricultural Statistics,
or both; or
``(II) if sufficient county data is not
available, such other data considered
appropriate by the Secretary.
``(5) Use a multiplier factor to establish maximum
protection per acre (referred to as a `protection factor') of
not more than 120 percent.
``(6) Pay an indemnity based on the amount that the
expected county revenue exceeds the actual county revenue, as
applied to the individual coverage of the producer. Indemnities
under the Stacked Income Protection Plan shall not include or
overlap the amount of the deductible selected under paragraph
(1).
``(7) To the maximum extent practicable, in all counties
for which data are available, establish separate coverage for
irrigated and nonirrigated practices.
``(8) Notwithstanding section 508(d), include a premium
that--
``(A) is sufficient to cover anticipated losses and
a reasonable reserve; and
``(B) includes an amount for operating and
administrative expenses established in accordance with
section 508(k)(4)(F).
``(c) Relation to Other Coverages.--
``(1) In general.--Except as provided in paragraph (2), the
Stacked Income Protection Plan is in addition to all other
coverages available to producers of upland cotton.
``(2) Limitation.--Acreage of upland cotton insured under
the Supplemental Coverage Option shall not be eligible for the
Stacked Income Protection Plan.
``(d) Payment of Portion of Premium by Corporation.--Subject to
section 508(e)(4), the amount of premium paid by the Corporation for
all qualifying coverage levels of the Stacked Income Protection Plan
shall be--
``(1) 80 percent of the amount of the premium established
under subsection (b)(8)(A) for the coverage level selected; and
``(2) the amount determined under subsection (b)(8)(B) to
cover administrative and operating expenses.''.
(b) Conforming Amendment.--Section 508(k)(4)(F) of the Federal Crop
Insurance Act (7 U.S.C. 1508(k)(4)(F)) (as amended by section 11001(d))
is amended by inserting ``or under section 508B'' after ``subsection
(c)(4)(C)''.
SEC. 11014. PEANUT REVENUE CROP INSURANCE.
The Federal Crop Insurance Act is amended by inserting after
section 508B (as added by section 11013(a)) the following:
``SEC. 508C. PEANUT REVENUE CROP INSURANCE.
``(a) In General.--Effective beginning with the 2014 crop year, the
Risk Management Agency and the Corporation shall make available to
producers of peanuts a revenue crop insurance program for peanuts.
``(b) Effective Price.--
``(1) In general.--Subject to paragraph (2), for purposes
of the policies and plans of insurance offered under
subsections (a) and (b) of section 508, the effective price for
peanuts shall be equal to the Rotterdam price index for
peanuts, as adjusted to reflect the farmer stock price of
peanuts in the United States.
``(2) Adjustments.--
``(A) In general.--The effective price for peanuts
established under paragraph (1) may be adjusted by the
Risk Management Agency and the Corporation to correct
distortions.
``(B) Administration.--If an adjustment is made
under subparagraph (A), the Risk Management Agency and
the Corporation shall--
``(i) make the adjustment in an open and
transparent manner; and
``(ii) submit to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes
the reasons for the adjustment.''.
SEC. 11015. AUTHORITY TO CORRECT ERRORS.
Section 515(c) of the Federal Crop Insurance Act (7 U.S.C. 1515(c))
is amended--
(1) in the first sentence, by striking ``The Secretary''
and inserting the following:
``(1) In general.--The Secretary'';
(2) in the second sentence, by striking ``Beginning with''
and inserting the following:
``(2) Frequency.--Beginning with''; and
(3) by adding at the end the following:
``(3) Corrections.--
``(A) In general.--The Corporation shall establish
procedures that allow an agent and approved insurance
provider within a reasonable amount of time following
the applicable sales closing date to correct
information regarding the entity name, social security
number, tax identification number, or such other
eligibility information as determined by the
Corporation that is provided by a producer for the
purpose of obtaining coverage under any policy or plan
of insurance made available under this subtitle to
ensure that the eligibility information is consistent
with the information reported by the producer to the
Farm Service Agency.
``(B) Limitation.--In accordance with the
procedures of the Corporation, procedures under
subparagraph (A) may include any subsequent correction
to the eligibility information described in that
subparagraph made by the Farm Service Agency if the
corrections do not allow the producer--
``(i) to obtain a disproportionate benefit
under the crop insurance program or any related
program of the Department of Agriculture;
``(ii) to avoid ineligibility requirements
for insurance; or
``(iii) to avoid an obligation or
requirement under any Federal or State law.''.
SEC. 11016. IMPLEMENTATION.
Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is
amended--
(1) in subsection (j), by striking paragraph (1) and
inserting the following:
``(1) Systems maintenance and upgrades.--
``(A) In general.--The Secretary shall maintain and
upgrade the information management systems of the
Corporation used in the administration and enforcement
of this subtitle.
``(B) Requirement.--
``(i) In general.--In maintaining and
upgrading the systems, the Secretary shall
ensure that new hardware and software are
compatible with the hardware and software used
by other agencies of the Department to maximize
data sharing and promote the purposes of this
section.
``(ii) Acreage report streamlining
initiative project.--As soon as practicable,
the Secretary shall develop and implement an
acreage report streamlining initiative project
to allow producers to report acreage and other
information directly to the Department.''; and
(2) in subsection (k), by striking paragraph (1) and
inserting the following:
``(1) Information technology.--
``(A) In general.--For purposes of subsection
(j)(1), the Corporation may use, from amounts made
available from the insurance fund established under
section 516(c), not more than--
``(i)(I) for fiscal year 2014, $25,000,000;
and
``(II) for each of fiscal years 2015
through 2018, $10,000,000; or
``(ii) if the Acreage Crop Reporting
Streamlining Initiative (ACRSI) project is
substantially completed by September 30, 2013,
not more than $15,000,000 for each of fiscal
years 2015 through 2018.
``(B) Notification.--Not later than July 1, 2013,
the Secretary shall notify the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate on
the status of the substantial completion of the Acreage
Crop Reporting Streamlining Initiative (ACRSI)
project.''.
SEC. 11017. CROP INSURANCE FRAUD.
Section 516(b)(2) of the Federal Crop Insurance Act (7 U.S.C.
1516(b)(2)) is amended by adding at the end the following:
``(C) Reviews, compliance, and program integrity.--
For each of the 2014 and subsequent reinsurance years,
the Corporation may use the insurance fund established
under subsection (c), but not to exceed $5,000,000 for
each fiscal year, to pay the following:
``(i) Costs to reimburse expenses incurred
for the review of policies, plans of insurance,
and related materials and to assist the
Corporation in maintaining program integrity.
``(ii) In addition to other available
funds, costs incurred by the Risk Management
Agency for compliance operations associated
with activities authorized under this title.''.
SEC. 11018. APPROVAL OF COSTS FOR RESEARCH AND DEVELOPMENT.
Section 522(b)(2) of the Federal Crop Insurance Act (7 U.S.C.
1522(b)(2)) is amended by striking subparagraph (E) and inserting the
following:
``(E) Approval.--
``(i) In general.--The Board may approve up
to 50 percent of the projected total research
and development costs to be paid in advance to
an applicant, in accordance with the procedures
developed by the Board for the making of the
payments, if, after consideration of the
reviewer reports described in subparagraph (D)
and such other information as the Board
determines appropriate, the Board determines
that--
``(I) the concept, in good faith,
will likely result in a viable and
marketable policy consistent with
section 508(h);
``(II) at the sole discretion of
the Board, the concept, if developed
into a policy and approved by the
Board, would provide crop insurance
coverage--
``(aa) in a significantly
improved form or that addresses
a unique need of agricultural
producers;
``(bb) to a crop or region
not traditionally served by the
Federal crop insurance program;
or
``(cc) in a form that
addresses a recognized flaw or
problem in the program;
``(III) the applicant agrees to
provide such reports as the Corporation
determines are necessary to monitor the
development effort;
``(IV) the proposed budget and
timetable are reasonable, as determined
by the Board; and
``(V) the concept proposal meets
any other requirements that the Board
determines appropriate.
``(ii) Waiver.--The Board may waive the 50-
percent limitation and, upon request of the
submitter after the submitter has begun
research and development activities, the Board
may approve an additional 25 percent advance
payment to the submitter for research and
development costs, if, at the sole discretion
of the Board, the Board determines that--
``(I) the intended policy or plan
of insurance developed by the submitter
will provide coverage for a region or
crop that is underserved by the Federal
crop insurance program, including
specialty crops;
``(II) the submitter is making
satisfactory progress towards
developing a viable and marketable
policy or plan of insurance consistent
with section 508(h); and
``(III) the submitter does not have
sufficient financial resources to
complete the development of the
submission into a viable and marketable
policy or plan of insurance consistent
with section 508(h).''.
SEC. 11019. WHOLE FARM RISK MANAGEMENT INSURANCE.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
is amended by adding at the end the following:
``(18) Whole farm diversified risk management insurance
plan.--
``(A) In general.--The Corporation shall conduct
activities or enter into contracts to carry out
research and development to develop a whole farm risk
management insurance plan, with a liability limitation
of $1,500,000, that allows a diversified crop or
livestock producer the option to qualify for an
indemnity if actual gross farm revenue is below 85
percent of the average gross farm revenue or the
expected gross farm revenue that can reasonably be
expected of the producer, as determined by the
Corporation.
``(B) Eligible producers.--The Corporation shall
permit producers (including direct-to-consumer
marketers, and producers servicing local and regional
and farm identity-preserved markets) who produce
multiple agricultural commodities, including specialty
crops, industrial crops, livestock, and aquaculture
products, to participate in the plan in lieu of any
other plan under this subtitle.
``(C) Diversification.--The Corporation may provide
diversification-based additional coverage payment
rates, premium discounts, or other enhanced benefits in
recognition of the risk management benefits of crop and
livestock diversification strategies for producers that
grow multiple crops or that may have income from the
production of livestock that uses a crop grown on the
farm.
``(D) Market readiness.--The Corporation may
include coverage for the value of any packing,
packaging, or any other similar on-farm activity the
Corporation determines to be the minimum required in
order to remove the commodity from the field.
``(E) Report.--Not later than 2 years after the
date of enactment of this paragraph, the Corporation
shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results and feasibility of
the research and development conducted under this
paragraph, including an analysis of potential adverse
market distortions.''.
SEC. 11020. STUDY OF FOOD SAFETY INSURANCE.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
(as amended by section 11018) is amended by adding at the end the
following:
``(19) Study of food safety insurance.--
``(A) In general.--The Corporation shall offer to
enter into a contract with 1 or more qualified entities
to conduct a study to determine whether offering
policies that provide coverage for specialty crops from
food safety and contamination issues would benefit
agricultural producers.
``(B) Subject.--The study described in subparagraph
(A) shall evaluate policies and plans of insurance
coverage that provide protection for production or
revenue impacted by food safety concerns including, at
a minimum, government, retail, or national consumer
group announcements of a health advisory, removal, or
recall related to a contamination concern.
``(C) Report.--Not later than 1 year after the date
of enactment of this paragraph, the Corporation shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
describes the results of the study conducted under
subparagraph (A).''.
SEC. 11021. CROP INSURANCE FOR LIVESTOCK.
Section 522(c) of the Federal Crop Insurance Act (as amended by
section 11019) is amended by adding at the end the following:
``(20) Study on swine catastrophic disease program.--
``(A) In general.--The Corporation shall contract
with a qualified person to conduct a study to determine
the feasibility of insuring swine producers for a
catastrophic event.
``(B) Report.--Not later than 1 year after the date
of the enactment of this paragraph, the Corporation
shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results of the study
conducted under subparagraph (A).''.
SEC. 11022. MARGIN COVERAGE FOR CATFISH.
Section 522(c) of the Federal Crop Insurance Act (as amended by
section 11020) is amended by adding at the end the following:
``(21) Margin coverage for catfish.--
``(A) In general.--The Corporation shall offer to
enter into a contract with a qualified entity to
conduct research and development regarding a policy to
insure producers against reduction in the margin
between the market value of catfish and selected costs
incurred in the production of catfish.
``(B) Eligibility.--Eligibility for the policy
described in subparagraph (A) shall be limited to
freshwater species of catfish that are propagated and
reared in controlled or selected environments.
``(C) Implementation.--The Board shall review the
policy described in subparagraph (B) under subsection
508(h) and approve the policy if the Board finds that
the policy--
``(i) will likely result in a viable and
marketable policy consistent with this
subsection;
``(ii) would provide crop insurance
coverage in a significantly improved form;
``(iii) adequately protects the interests
of producers; and
``(iv) the proposed policy meets other
requirements of this subtitle determined
appropriate by the Board.''.
SEC. 11023. POULTRY BUSINESS DISRUPTION INSURANCE POLICY.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
(as amended by section 11021) is amended by adding at the end the
following:
``(22) Poultry business disruption insurance policy and
catastrophic disease program.--
``(A) Definition of poultry.--In this paragraph,
the term `poultry' has the meaning given the term in
section 2(a) of the Packers and Stockyards Act, 1921 (7
U.S.C. 182(a)).
``(B) Authority.--The Corporation shall offer to
enter into 1 or more contracts with qualified entities
to carry out--
``(i) a study to determine the feasibility
of insuring commercial poultry production
against business disruptions caused by
integrator bankruptcy; and
``(ii) a study to determine the feasibility
of insuring poultry producers for a
catastrophic event.
``(C) Business disruption study.--The study
described in subparagraph (B)(i) shall--
``(i) evaluate the market place for
business disruption insurance that is available
to poultry producers;
``(ii) assess the feasibility of a policy
to allow producers to ensure against a portion
of losses from loss under contract due to
business disruption from integrator bankruptcy;
and
``(iii) analyze the costs to the Federal
Government of a Federal business disruption
insurance program for poultry producers.
``(D) Reports.--Not later than 1 year after the
date of enactment of this paragraph, the Corporation
shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results of--
``(i) the study carried out under
subparagraph (B)(i); and
``(ii) the study carried out under
subparagraph (B)(ii).''.
SEC. 11024. STUDY OF CROP INSURANCE FOR SEAFOOD HARVESTERS.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
(as amended by section 11022) is amended by adding at the end the
following:
``(23) Feasibility study to assist seafood harvesters.--
``(A) In general.--The Corporation shall offer to
enter into a contract with a qualified entity to
conduct a feasibility study to determine the best
method of insuring seafood harvesters, including such
data collection and analysis as is necessary to conduct
the study.
``(B) Report.--Not later than 1 year after the date
of enactment of this subsection, the Corporation shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
describing the results of the study.''.
SEC. 11025. BIOMASS AND SWEET SORGHUM ENERGY CROP INSURANCE POLICIES.
Section 522(c) of the Federal Crop Insurance Act of 1938 (7 U.S.C.
1522(c)) (as amended by section 11023) is amended by adding at the end
the following:
``(24) Biomass and sweet sorghum energy crop insurance
policies.--
``(A) Authority.--The Corporation shall offer to
enter into 1 or more contracts with qualified entities
to carry out research and development regarding--
``(i) a policy to insure biomass sorghum
that is grown expressly for the purpose of
producing a feedstock for renewable biofuel,
renewable electricity, or biobased products;
and
``(ii) a policy to insure sweet sorghum
that is grown for a purpose described in clause
(i).
``(B) Research and development.--Research and
development with respect to each of the policies
described in subparagraph (A) shall evaluate the
effectiveness of risk management tools for the
production of biomass sorghum or sweet sorghum,
including policies and plans of insurance that--
``(i) are based on market prices and
yields;
``(ii) to the extent that insufficient data
exist to develop a policy based on market
prices and yields, are based on the use of
weather indices, including, at a minimum,
excessive or inadequate rainfall, to protect
the interests of crop producers; and
``(iii) provide protection for production
or revenue losses, or both.''.
SEC. 11026. ALFALFA CROP INSURANCE POLICY.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
(as amended by section 11024) is amended by adding at the end the
following:
``(25) Alfalfa crop insurance policy.--
``(A) In general.--The Corporation shall offer to
enter into 1 or more contracts with qualified entities
to carry out research and development regarding a
policy to insure alfalfa.
``(B) Report.--Not later than 1 year after the date
of enactment of this paragraph, the Corporation shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
describes the results of the study conducted under
subparagraph (A).''.
SEC. 11027. CROP INSURANCE FOR ORGANIC CROPS.
(a) In General.--Section 508(c)(6) of the Federal Crop Insurance
Act (7 U.S.C. 1508(c)(6)) is amended by adding at the end the
following:
``(D) Organic crops.--
``(i) In general.--As soon as possible, but
not later than the 2015 reinsurance year, the
Corporation shall offer producers of organic
crops price elections for all organic crops
produced in compliance with standards issued by
the Department of Agriculture under the
national organic program established under the
Organic Foods Production Act of 1990 (7 U.S.C.
6501 et seq.) that reflect the actual retail or
wholesale prices, as appropriate, received by
producers for organic crops, as determined by
the Secretary using all relevant sources of
information.
``(ii) Annual report.--The Corporation
shall submit to the Committee on Agriculture of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate an annual report on progress made in
developing and improving Federal crop insurance
for organic crops, including--
``(I) the numbers and varieties of
organic crops insured;
``(II) the progress of implementing
the price elections required under this
subparagraph, including the rate at
which additional price elections are
adopted for organic crops;
``(III) the development of new
insurance approaches relevant to
organic producers; and
``(IV) any recommendations the
Corporation considers appropriate to
improve Federal crop insurance coverage
for organic crops.''.
(b) Conforming Amendment.--Section 522(c) of the Federal Crop
Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11024) is
amended--
(1) by striking paragraph (10); and
(2) by redesignating paragraphs (11) through (24) as
paragraphs (10) through (23), respectively.
SEC. 11028. RESEARCH AND DEVELOPMENT.
(a) In General.--Section 522(c) of the Federal Crop Insurance Act
(7 U.S.C. 1522(c)) is amended--
(1) in the subsection heading, by striking ``Contracting'';
(2) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``may enter into contracts to carry out
research and development to'' and inserting ``may conduct
activities or enter into contracts to carry out research and
development to maintain or improve existing policies or develop
new policies to'';
(3) in paragraph (2)--
(A) in subparagraph (A), by inserting ``conduct
research and development or'' after ``The Corporation
may''; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) Consultation.--Before conducting research and
development or entering into a contract under
subparagraph (A), the Corporation shall follow the
consultation requirements described in section
508(h)(4)(E).'';
(4) in paragraph (5), by inserting ``after expert review in
accordance with section 505(e) and procedures of the Board''
after ``approved by the Board''; and
(5) in paragraph (6), by striking ``a pasture, range, and
forage program'' and inserting ``policies that increase
participation by producers of underserved agricultural
commodities, including sweet sorghum, sorghum for biomass,
specialty crops, sugarcane, and dedicated energy crops''.
(b) Funding.--Section 522(e) of the Federal Crop Insurance Act (7
U.S.C. 1522(e)) is amended--
(1) in paragraph (2)--
(A) by striking ``(A) Authority.--'' and inserting
``(A) Conducting and contracting for research and
development.--'';
(B) in subparagraph (A), by inserting ``conduct
research and development and'' after ``the Corporation
may use to''; and
(C) in subparagraph (B), by inserting ``conduct
research and development and'' after ``for the fiscal
year to'';
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``to provide either reimbursement payments or
contract payments''; and
(3) by striking paragraph (4).
SEC. 11029. PILOT PROGRAMS.
Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 1523(a))
is amended--
(1) in paragraph (1), by inserting ``, at the sole
discretion of the Corporation,'' after ``may''; and
(2) by striking paragraph (5).
SEC. 11030. INDEX-BASED WEATHER INSURANCE PILOT PROGRAM.
Section 523(a)(2) of the Federal Crop Insurance Act (7 U.S.C.
1523(a)(2)) is amended--
(1) by striking ``Under'' inserting the following:
``(A) In general.--Under''; and
(2) by adding at the end the following:
``(B) Index-based weather insurance pilot
program.--
``(i) In general.--Notwithstanding
subparagraph (A), the Corporation, at the sole
discretion of the Corporation, may conduct a
pilot program to provide financial assistance
for producers of underserved crops and
livestock (including specialty crops) to
purchase an index-based weather insurance
product from a private insurance company,
subject to the requirements of this
subparagraph.
``(ii) Payment of premium.--
``(I) In general.--Subject to
subclause (II) and clause (v), the
Corporation may pay a portion of the
premium for producers who purchase
index-based weather insurance
protection from a private insurance
company for a crop and policy that is
not reinsured under this subtitle, as
determined by the Corporation.
``(II) Condition.--The premium
assistance under subclause (I) shall
not exceed 60 percent of the estimated
premium amount, based on expected
losses, representative operating
expenses, and representative profit
margins, as determined by the
Corporation.
``(iii) Eligible providers.--Before
providing premium assistance to producers to
purchase index-based weather insurance from a
private insurance company pursuant to this
subparagraph, the Corporation shall verify that
the company has adequate experience--
``(I) to develop and manage the
index-based weather insurance products,
including adequate resources,
experience, and assets or sufficient
reinsurance to meet the obligations of
the company under this subparagraph;
and
``(II) to support and deliver the
index-based weather insurance products.
``(iv) Procedures.--The Corporation shall
develop and publish procedures to administer
the pilot program under this subparagraph
that--
``(I) require each applicable
private insurance company to report
claim and sales data, and any other
data the Corporation determines to be
appropriate, to allow the Corporation
to evaluate product pricing and
performance;
``(II) allow the private insurance
companies exclusive rights over the
private insurance offered under this
subparagraph, including rating of
policies, protection of intellectual
property rights on the product or
policy, and associated rating
methodology, for the period during
which the companies are eligible under
clause (iii); and
``(III) contain such other
requirements as the Corporation
determines to be necessary to ensure
that--
``(aa) the interests of
producers are protected; and
``(bb) the program operates
in an actuarially sound manner.
``(v) Funding.--Of the funds of the
Corporation, the Corporation shall use to carry
out this subparagraph $10,000,000 for each of
fiscal years 2014 through 2018, to remain
available until expended.''.
SEC. 11031. ENHANCING PRODUCER SELF-HELP THROUGH FARM FINANCIAL
BENCHMARKING.
(a) Definition.--Section 502(b) of the Federal Crop Insurance Act
(7 U.S.C. 1502(b)) is amended--
(1) by redesignating paragraphs (6) through (9) as
paragraphs (7) through (10), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) Farm financial benchmarking.--The term `farm
financial benchmarking' means--
``(A) the process of comparing the performance of
an agricultural enterprise against the performance of
other similar enterprises, through the use of
comparable and reliable data, in order to identify
business management strengths, weaknesses, and steps
necessary to improve management performance and
business profitability; and
``(B) benchmarking of the type conducted by farm
management and producer associations consistent with
the activities described in or funded pursuant to
section 1672D of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925f).''.
(b) Partnerships for Risk Management for Producers of Specialty
Crops and Underserved Agricultural Commodities.--Section 522(d)(3)(F)
of the Federal Crop Insurance Act (7 U.S.C. 1522(d)(3)(F)) is amended
by inserting ``farm financial benchmarking,'' after ``management,''.
(c) Crop Insurance Education and Risk Management Assistance.--
Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)) is
amended--
(1) in paragraph (3)(A), by inserting ``farm financial
benchmarking,'' after ``risk reduction,''; and
(2) in paragraph (4), in the matter preceding subparagraph
(A), by inserting ``(including farm financial benchmarking)''
after ``management strategies''.
SEC. 11032. BEGINNING FARMER AND RANCHER PROVISIONS.
(a) Definition.--Section 502(b) of the Federal Crop Insurance Act
(7 U.S.C. 1502(b)) (as amended by section 11029(a)) is amended--
(1) by redesignating paragraphs (3) through (10) as
paragraphs (4) through (11), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Beginning farmer or rancher.--The term `beginning
farmer or rancher' means a farmer or rancher who has not
actively operated and managed a farm or ranch with a bona fide
insurable interest in a crop or livestock as an owner-operator,
landlord, tenant, or sharecropper for more than 5 crop years,
as determined by the Secretary.''.
(b) Premium Adjustments.--Section 508 of the Federal Crop Insurance
Act (7 U.S.C. 1508) is amended--
(1) in subsection (b)(5)(E), by inserting ``and beginning
farmers or ranchers'' after ``limited resource farmers'';
(2) in subsection (e), by adding at the end the following:
``(8) Premium for beginning farmers or ranchers.--
Notwithstanding any other provision of this subsection
regarding payment of a portion of premiums, a beginning farmer
or rancher shall receive premium assistance that is 10
percentage points greater than premium assistance that would
otherwise be available under paragraphs (2) (except for
subparagraph (A) of that paragraph), (5), (6), and (7) for the
applicable policy, plan of insurance, and coverage level
selected by the beginning farmer or rancher.''; and
(3) in subsection (g)--
(A) in paragraph (2)(B)--
(i) in clause (i), by striking ``or'' at
the end;
(ii) in clause (ii)(III), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(iii) if the producer is a beginning
farmer or rancher who was previously involved
in a farming or ranching operation, including
involvement in the decisionmaking or physical
involvement in the production of the crop or
livestock on the farm, for any acreage obtained
by the beginning farmer or rancher, a yield
that is the higher of--
``(I) the actual production history
of the previous producer of the crop or
livestock on the acreage determined
under subparagraph (A); or
``(II) a yield of the producer, as
determined in clause (i).''; and
(B) in paragraph (4)(B)(ii) (as amended by section
11007)--
(i) by inserting ``(I)'' after ``(ii)'';
(ii) by striking the period at the end and
inserting ``; or''; and
(iii) by adding at the end the following:
``(II) in the case of
beginning farmers or ranchers,
replace each excluded yield
with a yield equal to 80
percent of the applicable
transitional yield.''.
SEC. 11033. LIMITATION ON PREMIUM SUBSIDY BASED ON AVERAGE ADJUSTED
GROSS INCOME.
Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
(as amended by section 11030(b)) is amended by adding at the end the
following:
``(9) Limitation on premium subsidy based on average
adjusted gross income.--
``(A) Definition of average adjusted gross
income.--In this paragraph, the term `average adjusted
gross income' has the meaning given the term in section
1001D(a) of the Food Security Act of 1985 (7 U.S.C.
1308-3a(a)).
``(B) Limitation.--Notwithstanding any other
provision of this subtitle and beginning with the 2014
reinsurance year, in the case of any producer that is a
person or legal entity that has an average adjusted
gross income in excess of $750,000 based on the most
recent data available from the Farm Service Agency as
of the beginning of the reinsurance year, the total
amount of premium subsidy provided with respect to
additional coverage under subsection (c), section 508B,
or section 508C issued on behalf of the producer for a
reinsurance year shall be 15 percentage points less
than the premium subsidy provided in accordance with
this subsection that would otherwise be available for
the applicable policy, plan of insurance, and coverage
level selected by the producer.
``(C) Application.--
``(i) Study.--Not later than 1 year after
the date of enactment of this Act, the
Secretary, in consultation with the Government
Accountability Office, shall carry out a study
to determine the effects of the limitation
described in subparagraph (B) on--
``(I) the overall operations of the
Federal crop insurance program;
``(II) the number of producers
participating in the Federal crop
insurance program;
``(III) the level of coverage
purchased by participating producers;
``(IV) the amount of premiums paid
by participating producers and the
Federal Government;
``(V) any potential liability for
participating producers, approved
insurance providers, and the Federal
Government;
``(VI) different crops or growing
regions;
``(VII) program rating structures;
``(VIII) creation of schemes or
devices to evade the impact of the
limitation; and
``(IX) administrative and operating
expenses paid to approved insurance
providers and underwriting gains and
loss for the Federal government and
approved insurance providers.
``(ii) Effectiveness.--The limitation
described in subparagraph (B) shall not take
effect unless the Secretary determines, through
the study described in clause (i), that the
limitation would not--
``(I) significantly increase the
premium amount paid by producers with
an average adjusted gross income of
less than $750,000;
``(II) result in a decline in the
crop insurance coverage available to
producers; and
``(III) increase the total cost of
the Federal crop insurance program.''.
SEC. 11034. AGRICULTURAL MANAGEMENT ASSISTANCE, RISK MANAGEMENT
EDUCATION, AND ORGANIC CERTIFICATION COST SHARE
ASSISTANCE.
Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is
amended by striking subsection (b) and inserting the following:
``(b) Agricultural Management Assistance, Risk Management
Education, and Organic Certification Cost Share Assistance.--
``(1) Authority for provision of assistance.--The Secretary
shall provide assistance under this section as follows:
``(A) Provision of organic certification cost share
assistance pursuant to section 10606 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
6523).
``(B) Activities to support risk management
education and community outreach partnerships pursuant
to section 522(d), including--
``(i) entering into futures or hedging;
``(ii) entering into agricultural trade
options as a hedging transaction to reduce
production, price, or revenue risk; or
``(iii) conducting any other activity
relating to an activity described in clause (i)
or (ii), including farm financial benchmarking,
as determined by the Secretary.
``(C) Provision of agricultural management
assistance grants to producers in States in which there
has been traditionally, and continues to be, a low
level of Federal crop insurance participation and
availability, and producers underserved by the Federal
crop insurance program, as determined by the Secretary,
for the purposes of--
``(i) constructing or improving--
``(I) watershed management
structures; or
``(II) irrigation structures;
``(ii) planting trees to form windbreaks or
to improve water quality; and
``(iii) mitigating financial risk through
production or marketing diversification or
resource conservation practices, including--
``(I) soil erosion control;
``(II) integrated pest management;
``(III) organic farming; or
``(IV) to develop and implement a
plan to create marketing opportunities
for the producer, including through
value-added processing.
``(2) Payment limitation.--The total amount of payments
made to a person (as defined in section 1001(a)(5) of the Food
Security Act (7 U.S.C. 1308(a)(5))) (as in existence before the
amendment made by section 1603(b) of the Food, Conservation,
and Energy Act of 2008 (Public Law 110-246; 122 Stat. 1730))
under paragraph (1) for any year may not exceed $50,000.
``(3) Funding.--
``(A) In general.--The Secretary shall carry out
this subsection through the Commodity Credit
Corporation.
``(B) Funding.--For each of fiscal years 2014
through 2018, the Commodity Credit Corporation shall
make available to carry out this subsection
$23,000,000.
``(C) Distribution of funds.--Of the amount made
available to carry out this subsection for a fiscal
year, the Commodity Credit Corporation shall use not
less than--
``(i) 50 percent to carry out paragraph
(1)(A);
``(ii) 26 percent to carry out paragraph
(1)(B); and
``(iii) 24 percent to carry out paragraph
(1)(C).''.
SEC. 11035. CROP PRODUCTION ON NATIVE SOD.
(a) Federal Crop Insurance.--Section 508(o) of the Federal Crop
Insurance Act (7 U.S.C. 1508(o)) is amended--
(1) in paragraph (1)(B), by inserting ``, or the producer
cannot substantiate that the ground has ever been tilled,''
after ``tilled'';
(2) in paragraph (2)(A), by striking ``for benefits under--
'' and all that follows through the period at the end and
inserting ``for--
``(i) a portion of crop insurance premium
subsidies under this subtitle in accordance
with paragraph (3);
``(ii) benefits under section 196 of the
Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333); and
``(iii) payments described in section
1001(b) of the Food Security Act of 1985 (7
U.S.C. 1308(b)).''; and
(3) by striking paragraph (3) and inserting the following:
``(3) Administration.--
``(A) In general.--During the first 4 crop years of
planting on native sod acreage by a producer described
in paragraph (2)--
``(i) paragraph (2) shall apply to 65
percent of the applicable transitional yield;
and
``(ii) the crop insurance premium subsidy
provided for the producer under this subtitle
shall be 50 percentage points less than the
premium subsidy that would otherwise apply.
``(B) Yield substitution.--During the period native
sod acreage is covered by this subsection, a producer
may not substitute yields for the native sod
acreage.''.
(b) Noninsured Crop Disaster Assistance.--Section 196(a)(4) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333(a)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``, or the
producer cannot substantiate that the ground has ever been
tilled,'' after ``tilled'';
(2) in subparagraph (B)(i), by striking ``for benefits
under--'' and all that follows through the period at the end
and inserting ``for--
``(I) benefits under this section;
``(II) a portion of crop insurance
premium subsidies under the Federal
Crop Insurance Act (7 U.S.C. 1501 et
seq.) in accordance with subparagraph
(C); and
``(III) payments described in
section 1001(b) of the Food Security
Act of 1985 (7 U.S.C. 1308(b)).''; and
(3) by striking subparagraph (C) and inserting the
following:
``(C) Administration.--
``(i) In general.--During the first 4 crop
years of planting on native sod acreage by a
producer described in subparagraph (B)--
``(I) subparagraph (B) shall apply
to 65 percent of the applicable
transitional yield; and
``(II) the crop insurance premium
subsidy provided for the producer under
the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) shall be 50
percentage points less than the premium
subsidy that would otherwise apply.
``(ii) Yield substitution.--During the
period native sod acreage is covered by this
paragraph, a producer may not substitute yields
for the native sod acreage.''.
(c) Cropland Report.--
(1) Baseline.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the cropland
acreage in each county and State, and the change in cropland
acreage from the preceding year in each county and State,
beginning with calendar year 2000 and including that
information for the most recent year for which that information
is available.
(2) Annual updates.--Not later than January 1, 2014, and
each January 1 thereafter through January 1, 2018, the
Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
that describes--
(A) the cropland acreage in each county and State
as of the date of submission of the report;
(B) the change in cropland acreage from the
preceding year in each county and State; and
(C) the number of acres of native sod that have
been converted to cropland or to any other use in the
preceding year in each county and State.
SEC. 11036. TECHNICAL AMENDMENTS.
Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b))
is amended--
(1) by striking paragraph (7); and
(2) by redesignating paragraphs (8) through (11) as
paragraphs (7) through (10), respectively.
SEC. 11037. GREATER ACCESSIBILITY FOR CROP INSURANCE.
(a) Findings.--Congress finds that--
(1) due to changes in commodity and other agricultural
programs made by the Agriculture Reform, Food, and Jobs Act of
2013, it is more important than ever that agricultural
producers be able to fully understand the terms of plans and
policies of crop insurance offered under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.); and
(2) proposed reductions by the Secretary in the number of
State and local offices of the Farm Service Agency will reduce
the services available to assist agricultural producers in
understanding crop insurance.
(b) Requirement for Use of Plain Language.--
(1) In general.--In issuing regulations and guidance
relating to plans and policies of crop insurance, the Risk
Management Agency and the Federal Crop Insurance Corporation
shall, to the greatest extent practicable, use plain language,
as required under Executive Orders 12866 (5 U.S.C. 601 note;
relating to regulatory planning and review) and 12988 (28
U.S.C. 519 note; relating to civil justice reform).
(2) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the efforts of the Secretary to
accelerate compliance with the Executive orders described in
paragraph (1).
(c) Website.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with the
approved insurance providers (as defined in section 502(b) of
the Federal Crop Insurance Act (7 U.S.C. 1502(b)), shall
improve the existing Internet website through which
agricultural producers in any State may identify crop insurance
options in that State.
(2) Requirements.--The website described in paragraph (1)
shall--
(A) provide answers in an easily accessible format
to frequently asked questions; and
(B) include published materials of the Department
of Agriculture that relate to plans and policies of
crop insurance offered under that Act.
(d) Administration.--Nothing in this section authorizes the Risk
Management Agency to sell a crop insurance policy or plan of insurance.
SEC. 11038. GAO CROP INSURANCE FRAUD REPORT.
Section 515(d) of the Federal Crop Insurance Act (7 U.S.C. 1515(d))
is amended by adding at the end the following:
``(6) GAO crop insurance fraud report.--As soon as
practicable after the date of enactment of this paragraph, the
Comptroller General of the United States shall conduct, and
submit to Congress a report describing the results of, a study
regarding fraudulent claims filed, and benefits provided, under
this subtitle.''.
TITLE XII--MISCELLANEOUS
Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers
SEC. 12001. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS AND VETERAN FARMERS AND RANCHERS.
(a) Outreach and Assistance for Socially Disadvantaged Farmers and
Ranchers and Veteran Farmers and Ranchers.--Section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is
amended--
(1) in the section heading, by inserting ``and veteran
farmers and ranchers'' after ``ranchers'';
(2) in subsection (a)--
(A) in paragraph (2)(B)(i), by inserting ``and
veteran farmers or ranchers'' after ``ranchers''; and
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) in the heading, by striking
``Fiscal years 2009 through 2012'' and
inserting ``Mandatory funding'';
(II) in clause (i), by striking
``and'' at the end;
(III) in clause (ii), by striking
the period at the end and inserting ``;
and''; and
(IV) by adding at the end the
following:
``(iii) $10,000,000 for each of fiscal
years 2014 through 2018.''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$20,000,000 for each of fiscal years 2014 through
2018.'';
(3) in subsection (b)(2), by inserting ``or veteran farmers
and ranchers'' after ``socially disadvantaged farmers and
ranchers''; and
(4) in subsection (c)--
(A) in paragraph (1)(A), by inserting ``veteran
farmers or ranchers and'' before ``members''; and
(B) in paragraph (2)(A), by inserting ``veteran
farmers or ranchers and'' before ``members''.
(b) Definition of Veteran Farmer or Rancher.--Section 2501(e) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)) is amended by adding at the end the following:
``(7) Veteran farmer or rancher.--The term `veteran farmer
or rancher' means a farmer or rancher who served in the active
military, naval, or air service, and who was discharged or
released from the service under conditions other than
dishonorable.''.
SEC. 12002. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS POLICY RESEARCH
CENTER.
Section 2501 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279) is amended by adding at the end the following:
``(i) Socially Disadvantaged Farmers and Ranchers Policy Research
Center.--The Secretary shall award a grant, through a competitive grant
program, to an eligible 1890 Institution (as defined in section 2 of
the Agricultural Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7601)) to establish a policy research center, to be known as
the `Socially Disadvantaged Farmers and Ranchers Policy Research
Center', for the purpose of developing policy recommendations for the
protection and promotion of the interests of socially disadvantaged
farmers and ranchers.''.
SEC. 12003. OFFICE OF ADVOCACY AND OUTREACH.
Section 226B(f)(3) of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6934(f)(3)) is amended to read as follows:
``(3) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection--
``(A) such sums as are necessary for each of fiscal
years 2009 through 2013; and
``(B) $2,000,000 for each of fiscal years 2014
through 2018.''.
Subtitle B--Livestock
SEC. 12101. WILDLIFE RESERVOIR ZOONOTIC DISEASE INITIATIVE.
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:
``SEC. 413. WILDLIFE RESERVOIR ZOONOTIC DISEASE INITIATIVE.
``(a) Definition of Covered Disease.--In this section, the term
`covered disease' means a zoonotic disease affecting domestic livestock
that is transmitted primarily from wildlife.
``(b) Establishment.--There is established within the Department a
wildlife reservoir zoonotic disease initiative to provide assistance
through Coordinated Agricultural Project grants for research and
development of surveillance methods, vaccines, vaccination delivery
systems, or diagnostic tests for covered diseases.
``(c) Covered Disease.--
``(1) In general.--To be eligible for a grant under this
section, an eligible entity shall conduct research and
development of surveillance methods, vaccines, vaccination
delivery systems, or diagnostic tests for covered diseases in--
``(A) a wildlife reservoir in the United States; or
``(B) domestic livestock or wildlife presenting a
potential concern to public health.
``(2) Priority.--In making grants under this section, the
Secretary shall give priority to grants that address--
``(A) Brucella abortus (Bovine Brucellosis);
``(B) Mycobacterium bovis (Bovine Tuberculosis); or
``(C) other zoonotic disease in livestock that is
covered by a high-priority research and extension
initiative conducted under section 1672 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5925).
``(d) Eligible Entities.--The Secretary shall carry out the
initiative established under subsection (b) through public scientific
research consortia that may consist of members from--
``(1) Federal agencies;
``(2) National Laboratories;
``(3) institutions of higher education;
``(4) research institutions and organizations; or
``(5) State agricultural experiment stations.
``(e) Research Projects.--In carrying out this section, the
Secretary shall award grants on a competitive basis.
``(f) Administration.--
``(1) In general.--In the case of grants awarded under this
section, the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of
proposals through a system of peer and merit review in
accordance with section 103;
``(C) award grants on the basis of merit, quality,
and relevance; and
``(D) manage the initiative established under
subsection (b) using a Coordinated Agricultural Project
format.
``(2) Term.--The term of a grant under this section may not
exceed 10 years.
``(3) Matching funds required.--The Secretary shall require
the recipient of a grant under this section to provide funds or
in-kind support from non-Federal sources in an amount that is
not less than 25 percent of the amount provided by the Federal
Government.
``(4) Other conditions.--The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines to be appropriate.
``(g) Buildings and Facilities.--Funds made available under this
section shall not be used for--
``(1) the construction of a new building or facility; or
``(2) the acquisition, expansion, remodeling, or alteration
of an existing building or facility (including site grading and
improvement and architect fees).
``(h) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $7,000,000 for each of fiscal years
2014 through 2018.
``(2) Allocation.--Of the amount made available for a
fiscal year under paragraph (1), the Secretary shall use not
less than 30 percent of the amount for the fiscal year to carry
out activities under each of subparagraphs (A) and (B) of
subsection (c)(2).''.
SEC. 12102. TRICHINAE CERTIFICATION PROGRAM.
(a) Alternative Certification Process.--
(1) In general.--The Secretary shall amend the regulation
issued under section 11010(a)(2) of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8304(a)(2)) to implement the
voluntary trichinae certification program established under
section 11010(a)(1) of that Act, to include a requirement to
establish an alternative trichinae certification process based
on surveillance or other methods consistent with international
standards for categorizing compartments as having negligible
risk for trichinae.
(2) Final regulations.--Not later than 1 year after the
date on which the international standards described in
paragraph (1) are adopted, the Secretary shall finalize the
rule amended under paragraph (1).
(b) Reauthorization.--Section 10405(d)(1) of the Animal Health
Protection Act (7 U.S.C. 8304(d)(1)) is amended in subparagraphs (A)
and (B) by striking ``2012'' each place it appears and inserting
``2018''.
SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN.
Section 11013(d) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8322(d)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 12104. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.
(a) In General.--Subtitle A of the Agricultural Marketing Act of
1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end the
following:
``SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.
``(a) Establishment.--The Secretary, acting through the
Administrator of the Agricultural Marketing Service (referred to in
this section as the `Secretary') shall establish a competitive grant
program for the purposes of improving the United States sheep industry.
``(b) Purpose.--The purpose of the grant program shall be to
strengthen and enhance the production and marketing of sheep and sheep
products, including improvement of--
``(1) infrastructure;
``(2) business;
``(3) resource development; and
``(4) innovative approaches to solve long-term needs.
``(c) Eligibility.--The Secretary shall make grants under this
section to 1 or more national entities the mission of which is
consistent with the purpose of the grant program.
``(d) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section $1,500,000 for fiscal
year 2014, to remain available until expended.''.
(b) Conforming Amendment.--Section 374 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008j) (as in existence on the day
before the date of enactment of this Act) is--
(1) amended in subsection (e)--
(A) in paragraph (3)(D), by striking ``3 percent''
and inserting ``10 percent''; and
(B) by striking paragraph (6); and
(2) redesignated as section 210 of the Agricultural
Marketing Act of 1946; and
(3) moved so as to appear at the end of subtitle A of that
Act (as amended by subsection (a)).
SEC. 12105. FERAL SWINE ERADICATION PILOT PROGRAM.
(a) In General.--To eradicate or control the threat feral swine
pose to the domestic swine population, the entire livestock industry,
and the destruction of crops and natural plant communities and native
habitats, the Secretary of Agriculture may establish a feral swine
eradication pilot program.
(b) Pilot.--Subject to the availability of appropriations under
this section, the Secretary may provide financial assistance for the
cost of carrying out a pilot program--
(1) to study and assess the nature and extent of damage to
the pilot area caused by feral swine;
(2) to develop methods to eradicate or control feral swine
in the pilot area; and
(3) to develop methods to restore damage caused by feral
swine.
(c) Coordination.--The Secretary shall ensure that the Natural
Resource Conservation Service and the Animal and Plant Health
Inspection Service coordinate to carry out the pilot program.
(d) Cost Sharing.--
(1) Federal share.--The Federal share of the costs of the
pilot program under this section may not exceed 75 percent of
the total costs of carrying out the pilot program.
(2) In-kind contributions.--The non-Federal share of the
costs of the pilot program may be provided in the form of in-
kind contributions of materials or services.
(e) Limitation on Administrative Expenses.--Not more than 10
percent of financial assistance provided by the Secretary under this
section may be used for administrative expenses.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000 for each of fiscal
years 2014 through 2018.
SEC. 12106. NATIONAL ANIMAL HEALTH LABORATORY NETWORK.
Subtitle E of title X of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8301 et seq.) is amended by inserting after section
10409 the following:
``SEC. 10409A. NATIONAL ANIMAL HEALTH LABORATORY NETWORK.
``(a) Definition of Eligible Laboratory.--In this section, the term
`eligible laboratory' means a diagnostic laboratory that meets specific
criteria developed by the Secretary, in consultation with State animal
health officials, State veterinary diagnostic laboratories, and
veterinary diagnostic laboratories at institutions of higher education.
``(b) Contracts.--The Secretary, in consultation with State
veterinarians, shall offer to enter into contracts, grants, cooperative
agreements, or other legal instruments with eligible laboratories--
``(1) to enhance the capability of the Secretary to respond
in a timely manner to emerging or existing bioterrorist threats
to animal health; and
``(2) to provide the capacity and capability for
standardized--
``(A) test procedures, reference materials, and
equipment;
``(B) laboratory biosafety and biosecurity levels;
``(C) quality management system requirements;
``(D) interconnected electronic reporting and
transmission of data; and
``(E) evaluation for emergency preparedness; and
``(3) to coordinate the development, implementation, and
enhancement of national veterinary diagnostic laboratory
capabilities, with special emphasis on surveillance planning
and vulnerability analysis, technology development and
validation, training, and outreach.
``(c) Priority.--To the extent practicable and to the extent
capacity and specialized expertise may be necessary, the Secretary
shall give priority to eligible laboratories at existing Federal
facilities, State facilities, and facilities at institutions of higher
education.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 2014 through 2018.''.
SEC. 12107. NATIONAL POULTRY IMPROVEMENT PLAN (NPIP).
(a) Surveillance Program.--The Secretary shall ensure that the
Department of Agriculture continues to administer the avian influenza
surveillance program in commercial poultry through the National Poultry
Improvement Program.
(b) Standards.--The Secretary shall ensure that the program
described in subsection (a) meets any relevant standards established by
the World Organization for Animal Health.
Subtitle C--Other Miscellaneous Provisions
SEC. 12201. MILITARY VETERANS AGRICULTURAL LIAISON.
Subtitle A of the Department of Agriculture Reorganization Act of
1994 is amended by inserting after section 218 (7 U.S.C. 6918) the
following:
``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.
``(a) Authorization.--The Secretary shall establish in the
Department the position of Military Veterans Agricultural Liaison.
``(b) Duties.--The Military Veterans Agricultural Liaison shall--
``(1) provide information to returning veterans about, and
connect returning veterans with, beginning farmer training and
agricultural vocational and rehabilitation programs appropriate
to the needs and interests of returning veterans, including
assisting veterans in using Federal veterans educational
benefits for purposes relating to beginning a farming or
ranching career;
``(2) provide information to veterans concerning the
availability of and eligibility requirements for participation
in agricultural programs, with particular emphasis on beginning
farmer and rancher programs;
``(3) serving as a resource for assisting veteran farmers
and ranchers, and potential farmers and ranchers, in applying
for participation in agricultural programs; and
``(4) advocating on behalf of veterans in interactions with
employees of the Department.
``(c) Contracts and Cooperative Agreements.--For purposes of
carrying out the duties under subsection (b), the Military Veterans
Agricultural Liaison may enter into contracts or cooperative agreements
with the research centers of the Agricultural Research Service,
institutions of higher education, or nonprofit organizations for--
``(1) the conduct of regional research on the profitability
of small farms;
``(2) the development of educational materials;
``(3) the conduct of workshops, courses, and certified
vocational training;
``(4) the conduct of mentoring activities; or
``(5) the provision of internship opportunities.''.
SEC. 12202. INFORMATION GATHERING.
Section 1619(b)(3) of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8791) is amended by adding at the end the following:
``(B) Cooperation with state and local
governments.--
``(i) In general.--Subject to clause (ii),
in the case of a State agency, political
subdivision, or local governmental agency that
is charged with implementing an agriculture or
conservation program under State law, on
request of the State agency, political
subdivision, or local governmental agency, the
information described in paragraph (2) shall be
disclosed to the State agency, political
subdivision, or local governmental agency if
the Secretary determines that the State agency,
political subdivision, or local governmental
agency demonstrates that the disclosure is
required for implementing the State program.
``(ii) Restriction.--Any information
disclosed to a State agency, political
subdivision, or local governmental agency under
clause (i) shall be--
``(I) used solely by the State
agency, political subdivision, or local
governmental agency; and
``(II) exempt from disclosure to
the public, including under any State
law that allows a citizen to petition a
State agency for that information.''.
SEC. 12203. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING
OF AGRICULTURAL LABOR FORCE.
Section 14204(d) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 2008q-1(d)) is amended to read as follows:
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal years
2008 through 2013; and
``(2) $10,000,000 for each of fiscal years 2014 through
2018.''.
SEC. 12204. NONINSURED CROP ASSISTANCE PROGRAM.
(a) In General.--Section 196 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--
``(A) Coverages.--In the case of an eligible crop
described in paragraph (2), the Secretary of
Agriculture shall operate a noninsured crop disaster
assistance program to provide coverages based on
individual yields (other than for value-loss crops)
equivalent to--
``(i) catastrophic risk protection
available under section 508(b) of the Federal
Crop Insurance Act (7 U.S.C. 1508(b)); or
``(ii) additional coverage available under
subsections (c) and (h) of section 508 of that
Act (7 U.S.C. 1508) that does not exceed 65
percent.
``(B) Administration.--The Secretary shall carry
out this section through the Farm Service Agency
(referred to in this section as the `Agency').''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the matter before clause
(i), by striking ``(except livestock)''
and inserting ``(except livestock and
crops and grasses used for grazing)'';
(II) in clause (i), by striking
``and'' after the semicolon at the end;
(III) by redesignating clause (ii)
as clause (iii); and
(IV) by inserting after clause (i)
the following:
``(ii) for which additional
coverage under subsections (c)
and (h) of section 508 of that
Act (7 U.S.C. 1508) is not
available; and''; and
(ii) in subparagraph (B)--
(I) by inserting ``(except ferns)''
after ``floricultural'';
(II) by inserting ``(except
ferns)'' after ``ornamental nursery'';
and
(III) by striking ``(including
ornamental fish)'' and inserting
``(including ornamental fish, but
excluding tropical fish)'';
(2) in subsection (d), by striking ``The Secretary'' and
inserting ``Subject to subsection (l), the Secretary'';
(3) in subsection (k)(1)--
(A) in subparagraph (A), by striking ``$250'' and
inserting ``$260''; and
(B) in subparagraph (B)--
(i) by striking ``$750'' and inserting
``$780''; and
(ii) by striking ``$1,875'' and inserting
``$1,950''; and
(4) by adding at the end the following:
``(l) Payment Equivalent to Additional Coverage.--
``(1) In general.--The Secretary shall make available to a
producer eligible for noninsured assistance under this section
a payment equivalent to an indemnity for additional coverage
under subsections (c) and (h) of section 508 of the Federal
Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65
percent, computed by multiplying--
``(A) the quantity that is less than 50 to 65
percent of the established yield for the crop, as
determined by the Secretary, specified in increments of
5 percent;
``(B) 100 percent of the average market price for
the crop, as determined by the Secretary; and
``(C) a payment rate for the type of crop, as
determined by the Secretary, that reflects--
``(i) in the case of a crop that is
produced with a significant and variable
harvesting expense, the decreasing cost
incurred in the production cycle for the crop
that is, as applicable--
``(I) harvested;
``(II) planted but not harvested;
or
``(III) prevented from being
planted because of drought, flood, or
other natural disaster, as determined
by the Secretary; or
``(ii) in the case of a crop that is
produced without a significant and variable
harvesting expense, such rate as shall be
determined by the Secretary.
``(2) Premium.--To be eligible to receive a payment under
this subsection, a producer shall pay--
``(A) the service fee required by subsection (k);
and
``(B) a premium for the applicable crop year that
is equal to--
``(i) the product obtained by multiplying--
``(I) the number of acres devoted
to the eligible crop;
``(II) the yield, as determined by
the Secretary under subsection (e);
``(III) the coverage level elected
by the producer;
``(IV) the average market price, as
determined by the Secretary; and
``(ii) 5.25-percent premium fee.
``(3) Limited resource, beginning, and socially
disadvantaged farmers.--The additional coverage made available
under this subsection shall be available to limited resource,
beginning, and socially disadvantaged producers, as determined
by the Secretary, in exchange for a premium that is 50 percent
of the premium determined for a producer under paragraph (2).
``(4) Additional availability.--
``(A) In general.--As soon as practicable after
October 1, 2013, the Secretary shall make assistance
available to producers of an otherwise eligible crop
described in subsection (a)(2) that suffered losses--
``(i) to a 2012 annual fruit crop grown on
a bush or tree; and
``(ii) in a county covered by a declaration
by the Secretary of a natural disaster for
production losses due to a freeze or frost.
``(B) Assistance.--The Secretary shall make
assistance available under subparagraph (A) in an
amount equivalent to assistance available under
paragraph (1), less any fees not previously paid under
paragraph (2).''.
(b) Termination Date.--
(1) In general.--Effective October 1, 2018, subsection (a)
and the amendments made by subsection (a) (other than the
amendments made by clauses (i)(I) and (ii) of subsection
(a)(1)(B)) are repealed.
(2) Administration.--Effective October 1, 2018, section 196
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333) shall be applied and administered as if
subsection (a) and the amendments made by subsection (a) (other
than the amendments made by clauses (i)(I) and (ii) of
subsection (a)(1)(B)) had not been enacted.
SEC. 12205. BIOENERGY COVERAGE IN NONINSURED CROP 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
``(including those grown expressly for the purpose of producing a
feedstock for renewable biofuel, renewable electricity, or biobased
products)'' after ``industrial crops''.
SEC. 12206. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.
Section 15751 of title 40, United States Code, is amended--
(1) in subsection (a), by striking ``2012'' and inserting
``2018''; and
(2) in subsection (b)--
(A) by striking ``Not more than'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), not
more than''; and
(B) by adding at the end the following:
``(2) Limited funding.--In a case in which less than
$10,000,000 is made available to a Commission for a fiscal year
under this section, paragraph (1) shall not apply.''.
SEC. 12207. OFFICE OF TRIBAL RELATIONS.
Title III of the Department of Agriculture Reorganization Act of
1994 is amended by adding after section 308 (7 U.S.C. 3125a note;
Public Law 103-354) the following:
``SEC. 309. OFFICE OF TRIBAL RELATIONS.
``The Secretary shall establish in the Office of the Secretary an
Office of Tribal Relations.''.
SEC. 12208. ACER ACCESS AND DEVELOPMENT PROGRAM.
(a) Grants Authorized; Authorized Activities.--The Secretary of
Agriculture may make grants to States and tribal governments to support
their efforts to promote the domestic maple syrup industry through the
following activities:
(1) Promotion of research and education related to maple
syrup production.
(2) Promotion of natural resource sustainability in the
maple syrup industry.
(3) Market promotion for maple syrup and maple-sap
products.
(4) Encouragement of owners and operators of privately held
land containing species of tree in the genus Acer--
(A) to initiate or expand maple-sugaring activities
on the land; or
(B) to voluntarily make the land available,
including by lease or other means, for access by the
public for maple-sugaring activities.
(b) Applications.--In submitting an application for a grant under
this section, a State or tribal government shall include--
(1) a description of the activities to be supported using
the grant funds;
(2) a description of the benefits that the State or tribal
government intends to achieve as a result of engaging in such
activities; and
(3) an estimate of the increase in maple-sugaring
activities or maple syrup production that the State or tribal
government anticipates will occur as a result of engaging in
such activities.
(c) Relationship to Other Laws.--Nothing in this section preempts a
State or tribal government law, including any State or tribal
government liability law.
(d) Definition of Maple Sugaring.--In this section, the term
``maple-sugaring'' means the collection of sap from any species of tree
in the genus Acer for the purpose of boiling to produce food.
(e) Regulations.--The Secretary of Agriculture shall promulgate
such regulations as are necessary to carry out this section.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal
years 2014 and 2015.
SEC. 12209. PROHIBITION ON ATTENDING AN ANIMAL FIGHT OR CAUSING A MINOR
TO ATTEND AN ANIMAL FIGHT; ENFORCEMENT OF ANIMAL FIGHTING
PROVISIONS.
(a) Prohibition on Attending an Animal Fight or Causing a Minor To
Attend an Animal Fight.--Section 26 of the Animal Welfare Act (7 U.S.C.
2156) is amended--
(1) in subsection (a)--
(A) in the heading, by striking ``Sponsoring or
Exhibiting an Animal in'' and inserting ``Sponsoring or
Exhibiting an Animal in, Attending, or Causing a Minor
To Attend'';
(B) in paragraph (1)--
(i) in the heading, by striking ``In
General'' and inserting ``Sponsoring or
Exhibiting''; and
(ii) by striking ``paragraph (2)'' and
inserting ``paragraph (3)'';
(C) by redesignating paragraph (2) as paragraph
(3); and
(D) by inserting after paragraph (1) the following:
``(2) Attending or causing a minor to attend.--It shall be
unlawful for any person to--
``(A) knowingly attend an animal fighting venture;
or
``(B) knowingly cause a minor to attend an animal
fighting venture.''; and
(2) in subsection (g), by adding at the end the following:
``(5) the term `minor' means a person under the age of 18
years old.''.
(b) Enforcement of Animal Fighting Prohibitions.--Section 49 of
title 18, United States Code, is amended--
(1) by striking ``Whoever'' and inserting ``(a) In
General.--Whoever'';
(2) in subsection (a), as designated by paragraph (1) of
this section, by striking ``subsection (a),'' and inserting
``subsection (a)(1),''; and
(3) by adding at the end the following:
``(b) Attending an Animal Fighting Venture.--Whoever violates
subsection (a)(2)(A) of section 26 of the Animal Welfare Act (7 U.S.C.
2156) shall be fined under this title, imprisoned for not more than 1
year, or both, for each violation.
``(c) Causing a Minor To Attend an Animal Fighting Venture.--
Whoever violates subsection (a)(2)(B) of section 26 (7 U.S.C. 2156) of
the Animal Welfare Act shall be fined under this title, imprisoned for
not more than 3 years, or both, for each violation.''.
SEC. 12210. PIMA COTTON TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the ``Pima
Cotton Trust Fund'', consisting of such amounts as may be transferred
to the Pima Cotton Trust Fund pursuant to the authorization of
appropriations under subsection (e).
(b) Distribution of Funds.--From amounts in the Pima Cotton Trust
Fund, the Secretary may make payments annually beginning in fiscal year
2014 as follows:
(1) To nationally recognized associations established for
the promotion of pima cotton for use in textile and apparel
goods.
(2) To yarn spinners of pima cotton that produce ring spun
cotton yarns in the United States, to be allocated to each
spinner in an amount that bears the same ratio as--
(A) the spinner's production of ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number) from pima cotton in single and plied
form during the period January 1, 1998, through
December 31, 2003 (as evidenced by an affidavit
provided by the spinner that meets the requirements of
subsection (c)) bears to--
(B) the production of the yarns described in
subparagraph (A) during the period January 1, 1998,
through December 31, 2003, for all spinners who qualify
under this paragraph.
(3) To manufacturers who cut and sew cotton shirts in the
United States who certify that they used imported cotton fabric
during the period January 1, 1998, through July 1, 2003, to be
allocated to each such manufacturer in an amount that bears the
same ratio as--
(A) the dollar value (excluding duty, shipping, and
related costs) of imported woven cotton shirting fabric
of 80s or higher count and 2-ply in warp purchased by
the manufacturer during calendar year 2002 (as
evidenced by an affidavit provided by the manufacturer
that meets the requirements of subsection (d)) used in
the manufacturing of men's and boys' cotton shirts,
bears to--
(B) the dollar value (excluding duty, shipping, and
related costs) of the fabric described in subparagraph
(A) purchased during calendar year 2002 by all
manufacturers who qualify under this paragraph.
(c) Affidavit of Yarn Spinners.--The affidavit required by
subsection (c)(2)(A) is a notarized affidavit provided annually by an
officer of a producer of ring spun yarns that affirms--
(1) that the producer used pima cotton during the year in
which the affidavit is filed and during the period January 1,
2002, through December 31, 2002, to produce ring spun cotton
yarns in the United States, measuring less than 83.33 decitex
(exceeding 120 metric number), in single and plied form during
2002;
(2) the quantity, measured in pounds, of ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120 metric
number), in single and plied form during calendar year 2002;
and
(3) that the producer maintains supporting documentation
showing the quantity of such yarns produced, and evidencing the
yarns as ring spun cotton yarns, measuring less than 83.33
decitex (exceeding 120 metric number), in single and plied form
during calendar year 2002.
(d) Affidavit of Shirting Manufacturers.--The affidavit required by
subsection (c)(3)(A) is a notarized affidavit provided annually by an
officer of a manufacturer of men's and boys' shirts that affirms--
(1) that the manufacturer used imported cotton fabric
during the year in which the affidavit is filed and during the
period January 1, 1998, through July 1, 2003, to cut and sew
men's and boys' woven cotton shirts in the United States;
(2) the dollar value of imported woven cotton shirting
fabric of 80s or higher count and 2-ply in warp purchased by
the manufacturer during calendar year 2002;
(3) that the manufacturer maintains invoices along with
other supporting documentation (such as price lists and other
technical descriptions of the fabric qualities) showing the
dollar value of such fabric purchased, the date of purchase,
and evidencing the fabric as woven cotton fabric of 80s or
higher count and 2-ply in warp; and
(4) that the fabric was suitable for use in the
manufacturing of men's and boys' cotton shirts.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2014 through 2019.
SEC. 12211. AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
``Agriculture Wool Apparel Manufacturers Trust Fund'' (in this section
referred to as the ``Wool Trust Fund''), consisting of such amounts as
may be transferred to the Wool Trust Fund pursuant to the authorization
of appropriations under subsection (e).
(b) Distribution of Funds.--From amounts in the Wool Trust Fund,
the Secretary of Agriculture may make payments annually beginning in
fiscal year 2014 for calendar years 2010 through 2019 as follows:
(1) To eligible manufactures under paragraph (3) of section
4002(c) of the Wool Suit and Textile Trade Extension Act of
2004 (Public Law 108-429; 118 Stat. 2600), as amended by
section 1633(c) of the Miscellaneous Trade and Technical
Corrections Act of 2006 (Public Law 109-280; 120 Stat. 1166)
and section 325(b) of the Tax Extenders and Alternative Minimum
Tax Relief Act of 2008 (division C of Public Law 110-343; 122
Stat. 3875), who filed an affidavit with U.S. Customs and
Border Protection not later than April 15 of the year of the
payment, so that the amount of such payments, when added to any
other payments made to eligible manufacturers under that
paragraph in calendar years 2010 through 2019, equal the total
amount of payments authorized to be provided to eligible
manufacturers under that paragraph, or the provisions of this
section, in such calendar years.
(2) To eligible manufacturers under paragraph (6) of such
section 4002(c), so that the amount of such payments, when
added to any other payments made to eligible manufacturers
under that paragraph in calendar years 2010 through 2019, equal
the total amount of payments authorized to be provided to
eligible manufacturers under that paragraph, or the provisions
of this section, in such calendar years.
(c) Payment of Amounts.--The Secretary of Agriculture shall make
payments to eligible manufacturers described in paragraphs (1) and (2)
of subsection (b)--
(1) for calendar years 2010 through 2013, not later than 30
days after the transfer of amounts from the general fund of the
Treasury to the Wool Trust Fund under this section; and
(2) for calendar years 2014 through 2019, not later than
April 15 of the year of the payment.
(d) Relationship to Other Law.--The payments authorized under this
section shall be made through the end of fiscal year 2019
notwithstanding any lapse of authority under any other provision of law
to transfer funds to--
(1) the Wool Apparel Manufacturers Trust Fund established
by section 4002(c) of the Wool Suit and Textile Trade Extension
Act of 2004 (Public Law 108-429; 118 Stat. 2600), as amended by
section 1633(c) of the Miscellaneous Trade and Technical
Corrections Act of 2006 (Public Law 109-280; 120 Stat. 1166)
and section 325(b) of the Tax Extenders and Alternative Minimum
Tax Relief Act of 2008 (division C of Public Law 110-343; 122
Stat. 3875); or
(2) the Wool Research, Development, and Promotion Trust
Fund established by 506 of the Trade and Development Act of
2000 (7 U.S.C. 7101 note).
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2014 through 2019.
SEC. 12212. CITRUS DISEASE RESEARCH AND DEVELOPMENT TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the ``Citrus
Disease Research and Development Trust Fund'' (in this section referred
to as the ``Citrus Trust Fund''), consisting of such amounts as may be
transferred to the Citrus Trust Fund pursuant to the authorization of
appropriations under subsection (f).
(b) Distribution of Funds.--From amounts in the Citrus Trust Fund,
the Secretary may make payments annually beginning in fiscal year 2014
to the following:
(1) Entities engaged in scientific research concerning
diseases and pests, both domestic and invasive, afflicting the
citrus industry.
(2) Entities engaged in dissemination and commercialization
of relevant information, techniques, or technologies, or in
research projects intended to solve problems caused by citrus
production diseases and invasive pests.
(3) The Citrus Disease Research and Development Trust Fund
Advisory Board, if established under subsection (c).
(c) Citrus Advisory Board.--
(1) In general.--From amounts in the Citrus Trust Fund, and
with the advice and recommendations of citrus producers and
other entities with an interest in the citrus industry, the
Secretary may establish a Citrus Disease Research and
Development Trust Fund Advisory Board (in this subsection
referred to as the ``Citrus Advisory Board'').
(2) Membership.--The Citrus Advisory Board, if established
under paragraph (1), shall consist of 9 members, who shall be
appointed by the Secretary as follows:
(A) Five members who are domestic producers of
citrus in Florida.
(B) Three members who are domestic producers of
citrus in Arizona or California.
(C) One member who is a domestic producer of citrus
in Texas.
(3) Regulations.--The Secretary may prescribe such rules
and regulations as are necessary to carry out this subsection,
including rules establishing procedures for disqualification
from service on the Citrus Advisory Board, appointment terms
for members of the Citrus Advisory Board, compensation for
those members, and powers and responsibilities of the Citrus
Advisory Board.
(4) Limitation on expenditures.--The Secretary shall ensure
that not more than 5 percent of total expenditures from the
Citrus Trust Fund in any year are used for the operations of
the Citrus Advisory Board.
(d) Secretarial Discretion of Fund Allocation.--Subject to
subsection (e), in distributing amounts under subsection (b), the
Secretary shall give strong deference to providing funding for research
projects exploring the proximity of citrus producers to the effects of
diseases such as huanglongbing and the quickly evolving nature of
scientific understanding of the effect of the diseases on citrus
production.
(e) Other Funding.--The Secretary should take into account other
public and private citrus-related research and development projects and
funding.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2014 through 2019.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
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