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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1727 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1727

To expand and improve opportunities for beginning farmers and ranchers, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2013

 Mr. Walz (for himself, Mr. Fortenberry, Mr. Gibson, and Mr. Peterson) 
 introduced the following bill; which was referred to the Committee on 
  Agriculture, and in addition to the Committee on the Budget, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
To expand and improve opportunities for beginning farmers and ranchers, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Beginning Farmer 
and Rancher Opportunity Act of 2013''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                         TITLE I--CONSERVATION

                Subtitle A--Conservation Reserve Program

Sec. 101. Extension of conservation reserve program.
Sec. 102. Contracts.
                Subtitle B--Farmland Protection Program

Sec. 111. Farmland protection program.
          Subtitle C--Environmental Quality Incentives Program

Sec. 121. Establishment and administration of environmental quality 
                            incentives program.
Sec. 122. Conservation innovation grants and payments.
                 Subtitle D--Funding and Administration

Sec. 131. Funding of conservation programs under Food Security Act of 
                            1985.
Sec. 132. Assistance to certain farmers or ranchers for conservation 
                            access.
Sec. 133. Comprehensive conservation planning.
                            TITLE II--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 201. Direct farm ownership experience requirement.
Sec. 202. Conservation loan and loan guarantee program.
Sec. 203. Indexing of direct farm ownership loans.
Sec. 204. Joint financing arrangement.
Sec. 205. Loan terms for down payment loan program.
Sec. 206. Limited resource loan rate.
Sec. 207. Definition of qualified beginning farmer or rancher.
                      Subtitle B--Operating Loans

Sec. 211. Young beginning farmer or rancher microloans.
                 Subtitle C--Administrative Provisions

Sec. 221. Beginning farmer and rancher individual development accounts 
                            pilot program.
Sec. 222. Transition to private commercial or other sources of credit.
Sec. 223. Direct loans for beginning farmers and ranchers.
                      TITLE III--RURAL DEVELOPMENT

Sec. 301. Value-added producer grants.
              TITLE IV--RESEARCH, EDUCATION, AND EXTENSION

Sec. 401. Beginning farmer and rancher development program.
Sec. 402. Agriculture and Food Research Initiative.
                        TITLE V--CROP INSURANCE

Sec. 501. Risk management partnership programs.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Military Veterans Agricultural Liaison.
Sec. 602. Budgetary effects.
Sec. 603. Effective date.

                         TITLE I--CONSERVATION

                Subtitle A--Conservation Reserve Program

SEC. 101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended by striking ``2012'' and inserting 
``2018''.
    (b) Land Eligible for Enrollment in Conservation Reserve.--Section 
1231(b)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 
3831(b)(1)(B)) is amended by striking ``Food, Conservation, and Energy 
Act of 2008'' and inserting ``Beginning Farmer and Rancher Opportunity 
Act of 2013''.
    (c) Maximum Enrollment of Acreage in Conservation Reserve.--Section 
1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is 
amended--
            (1) by striking the first sentence; and
            (2) in the second sentence, by striking ``2010, 2011, and 
        2012'' and inserting ``2010 through 2018''.
    (d) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231B of the Food Security Act of 1985 
(16 U.S.C. 3831b) is amended--
            (1) in subsection (a)(1), by striking ``2012'' and 
        inserting ``2018''; and
            (2) in subsection (b)(1)(C), by striking ``2002 through 
        2007'' and inserting ``2008 through 2012''.

SEC. 102. CONTRACTS.

    Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is 
amended--
            (1) in subsection (c)(1)(B), by striking clause (iii) and 
        inserting the following:
                            ``(iii) to facilitate a transition of land 
                        subject to the contract from a retired or 
                        retiring owner or operator to a beginning 
                        farmer or rancher, socially disadvantaged 
                        farmer or rancher, or limited resource farmer 
                        or rancher who is or will be actively engaged 
                        in farming or ranching with respect to the land 
                        transferred under this subsection for the 
                        purpose of returning some or all of the land 
                        into production using sustainable grazing or 
                        crop production methods that meet or exceed the 
                        resource management system quality criteria for 
                        erosion, soil quality, water quality, and fish 
                        and wildlife; or''; and
            (2) in subsection (f)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``or socially disadvantaged farmer or 
                rancher'' and inserting ``socially disadvantaged farmer 
                or rancher, or limited resource farmer or rancher who 
                is or will be actively engaged in farming or ranching 
                with respect to the land transferred under this 
                subsection''; and
                    (B) by striking subparagraphs (C), (D), and (E) and 
                inserting the following:
                    ``(C) require the covered farmer or rancher to 
                develop and implement a comprehensive conservation plan 
                that addresses all resource concerns and meets such 
                sustainability criteria as the Secretary may establish;
                    ``(D) provide to the covered farmer or rancher an 
                opportunity to enroll in the conservation stewardship 
                program or the environmental quality incentives program 
                at any time beginning on the date that is 1 year before 
                the date of termination of the contract, including 
                technical and financial assistance in the development 
                of a comprehensive conservation plan;
                    ``(E) if the land transferred under this subsection 
                remains in grass cover, provide to the covered farmer 
                or rancher an opportunity to enroll in a long-term or 
                permanent easement under the grassland reserve program 
                or farmland protection program at any time beginning on 
                the date that is 1 year before the date of termination 
                of the contact; and
                    ``(F) continue to make annual payments to the 
                retired or retiring owner or operator for not more than 
                an additional 2 years after the date of termination of 
                the contract, except that, in the case of a retired or 
                retiring owner or operator who is a family member (as 
                defined in section 1001) of the covered farmer or 
                rancher, the additional payments shall be made only if 
                title to the land is sold or transferred to the covered 
                farmer or rancher on termination of the contract.''.

                Subtitle B--Farmland Protection Program

SEC. 111. FARMLAND PROTECTION PROGRAM.

    Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is 
amended--
            (1) in subsection (b), by inserting ``to promote farm 
        viability for future generations'' before the period at the 
        end; and
            (2) in subsection (g)(4)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) provide a funding priority, to the maximum 
                extent practicable, for--
                            ``(i) eligible land for which there exists 
                        a farm or ranch succession plan or similar plan 
                        established to create opportunities for 
                        beginning farmers and ranchers and encourage 
                        farm viability for future generations;
                            ``(ii) easements that exercise an option to 
                        purchase at a price that is equal to the 
                        agricultural use value;
                            ``(iii) qualified beginning farmers or 
                        ranchers with contracts to purchase the land to 
                        be protected;
                            ``(iv) land owned by a nongovernmental 
                        organization that will be sold to a qualified 
                        beginning farmer or rancher;
                            ``(v) contemporaneous farm transfers of 
                        eligible land to qualified beginning farmers 
                        and ranchers that may not occur without the 
                        financial assistance of the program; and
                            ``(vi) other similar mechanisms to maintain 
                        the affordability of farm and ranch land for 
                        successive generations of farmers and ranchers; 
                        and''.

          Subtitle C--Environmental Quality Incentives Program

SEC. 121. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    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 (d)(4)(B), by striking ``30 percent'' and 
        inserting ``50 percent''; and
            (3) in subsection (f), by striking ``2012'' and inserting 
        ``2018''.

SEC. 122. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (C), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) provide environmental and resource 
                conservation benefits through increased participation 
                by beginning farmers and ranchers and socially 
                disadvantaged farmers and ranchers.''; and
            (2) in subsection (b)(2), by striking ``2012'' and 
        inserting ``2018''.

                 Subtitle D--Funding and Administration

SEC. 131. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF 
              1985.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``and through fiscal year 2018 in the case of the program 
        described in paragraph (1)(B)'' after ``(7)''; and
            (2) in paragraph (1), by striking subparagraph (B) and 
        inserting the following:
                    ``(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, socially disadvantaged 
                farmers or ranchers, or limited resource farmers or 
                ranchers.''.

SEC. 132. ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR CONSERVATION 
              ACCESS.

    Section 1241(g) of the Food Security Act of 1985 (16 U.S.C. 
3841(g)) is amended--
            (1) in paragraph (1), by striking ``2012'' and inserting 
        ``2018''; and
            (2) in paragraph (2), by inserting ``(but not earlier than 
        120 days after the date that funding for the fiscal year is 
        allocated to the States)'' after ``Secretary'';
            (3) in paragraph (3), by inserting ``(but not earlier than 
        120 days after the date that acres for the fiscal year are 
        allocated to the States)'' after ``Secretary''; and
            (4) by adding at the end the following:
            ``(4) Participation by beginning and socially disadvantaged 
        farmers and ranchers.--Nothing in this subsection prohibits 
        beginning or socially disadvantaged farmers or ranchers from 
        participating in programs and receiving funding available under 
        this title that is not reserved under paragraph (1).
            ``(5) Technical assistance.--Within the funds reserved 
        under paragraph (1), the Secretary shall allocate to the 
        Natural Resources Conservation Service funding for technical 
        assistance at a rate that is not more than 10 percent higher 
        than the rate that would otherwise apply to allow the Service 
        to provide additional technical assistance to beginning farmers 
        or ranchers and socially disadvantaged farmers or ranchers to 
        establish conservation plans.''.

SEC. 133. COMPREHENSIVE CONSERVATION PLANNING.

    Section 1244(a) of the Food Security Act of 1985 (16 U.S.C. 
3844(a)) is amended by adding at the end the following:
            ``(3) Comprehensive conservation planning.--In carrying out 
        this subsection, the Secretary shall provide technical and 
        financial assistance using resources available under the 
        environmental quality incentives program, conservation 
        stewardship program, or such other programs as the Secretary 
        may determine to covered persons who request the assistance to 
        develop a comprehensive conservation plan for the farming or 
        ranching operation of the covered person that addresses all 
        resource concerns and meets such sustainability criteria as the 
        Secretary may establish.''.

                            TITLE II--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 201. DIRECT FARM OWNERSHIP EXPERIENCE REQUIREMENT.

    Section 302(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922(b)(1)) is amended in the matter preceding 
subparagraph (A) by inserting ``or has other acceptable experience for 
a period of time, as determined by the Secretary,'' after ``3 years''.

SEC. 202. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended--
            (1) in subsection (c)(2)--
                    (A) by striking ``shall meet'' and inserting 
                ``shall--
                    ``(A) meet'';
                    (B) in subparagraph (A) (as so designated), by 
                striking the period at the end and inserting ``; and''; 
                and
                    (C) by adding at the end the following:
                    ``(B) be the owner or operator of not larger than a 
                family farm.'';
            (2) in subsection (e)--
                    (A) by striking ``The portion'' and inserting the 
                following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        portion''; and
                    (B) by adding at the end the following:
            ``(2) Beginning and socially disadvantaged farmers and 
        ranchers.--In the case of beginning farmers or ranchers and 
        socially disadvantaged farmers or ranchers, the portion of the 
        loan the Secretary may guarantee under this section shall be 95 
        percent of the principal amount of the loan.''; and
            (3) by striking subsection (h) and inserting the following:
    ``(h) Funding.--
            ``(1) In general.--The Secretary may make or guarantee 
        loans under this section for not more than $250,000,000 for 
        each of fiscal years 2013 through 2018, of which, for each 
        fiscal year, not more than \1/2\ shall be used for direct loans 
        and not more than \1/2\ shall be used for guaranteed loans.
            ``(2) Qualified beginning farmers and ranchers.--
                    ``(A) Direct loans.--Of the amount made available 
                for direct loans for a fiscal year under paragraph (1), 
                the Secretary shall reserve for qualified beginning 
                farmers and ranchers until April 1 of the fiscal year 
                not less than 50 percent of the amount.
                    ``(B) Guaranteed loans.--Of the amount made 
                available for guaranteed loans for a fiscal year under 
                paragraph (1), the Secretary shall reserve for 
                qualified beginning farmers and ranchers until April 1 
                of the fiscal year not less than 50 percent of the 
                amount.''.

SEC. 203. INDEXING OF DIRECT FARM OWNERSHIP LOANS.

    Section 305(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1925(a)) is amended by inserting ``(increased, beginning with 
fiscal year 2014, by the inflation percentage, as determined by the 
Secretary, applicable to the fiscal year in which the loan is made)'' 
after ``$300,000''.

SEC. 204. JOINT FINANCING ARRANGEMENT.

    Section 307(a)(3)(D) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)(3)(D)) is amended by striking ``4'' and inserting 
``1.5''.

SEC. 205. LOAN TERMS FOR DOWN PAYMENT LOAN PROGRAM.

    Section 310E(b)(1)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking 
``$500,000'' and inserting ``$667,000''.

SEC. 206. LIMITED RESOURCE LOAN RATE.

    Section 316(a)(2)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1946(a)(2)(B)) is amended by striking ``5'' and inserting 
``1.5''.

SEC. 207. DEFINITION OF QUALIFIED BEGINNING FARMER OR RANCHER.

    Section 343(a)(11)(F) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking 
``median'' and inserting ``average''.

                      Subtitle B--Operating Loans

SEC. 211. YOUNG BEGINNING FARMER OR RANCHER MICROLOANS.

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

                 Subtitle C--Administrative Provisions

SEC. 221. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS 
              PILOT PROGRAM.

    Section 333B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983b) is amended by striking subsection (h) and inserting the 
following:
    ``(h) Funding.--On October 1, 2013, and on each October 1 
thereafter through October 1, 2017, 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.''.

SEC. 222. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    (a) Conditions for Direct Loans.--Section 311(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking the semicolon 
                at the end and inserting ``; and'';
                    (B) in subparagraph (B), by striking ``; or'' at 
                the end and inserting a period; and
                    (C) by striking subparagraph (C); and
            (2) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Term limits.--Subject to paragraph (4), if a farmer 
        or rancher has received a direct operating loan pursuant to 
        this section in each of 9 consecutive years, the farmer or 
        rancher may not receive a direct operating loan from the 
        Secretary under this section for the next year.
            ``(4) Waivers for farm and ranch operations on tribal 
        land.--The Secretary shall waive the limitation under paragraph 
        (3) for a direct loan made under this subtitle to a farmer or 
        rancher whose farm or ranch land is subject to the jurisdiction 
        of an Indian tribe and whose loan is secured by one 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 the farm or ranch operations.''.
    (b) Limitation on Period Borrowers Are Eligible for Guaranteed 
Assistance.--Section 319 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1949) is amended by striking subsection (b) and inserting 
the following:
    ``(b) Limitation on Period Borrowers Are Eligible for Guaranteed 
Assistance.--If a borrower has received a guaranteed loan under this 
subtitle in each of 15 consecutive years, the borrower may not receive 
a loan guaranteed by the Secretary for the next year.''.

SEC. 223. DIRECT LOANS FOR BEGINNING FARMERS AND RANCHERS.

    Section 346(b)(2)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(2)(A)) is amended--
            (1) in clause (i), by adding at the end the following:
                                    ``(III) Priority.--In order to 
                                maximize the number of borrowers served 
                                under this clause, the Secretary--
                                            ``(aa) shall give priority 
                                        to borrowers who apply under 
                                        the down payment loan program 
                                        under section 310E or joint 
                                        financing arrangements under 
                                        section 307(a)(3)(D); and
                                            ``(bb) may offer other 
                                        financing options only if the 
                                        Secretary determines that down 
                                        payment or other participation 
                                        loan options are not a viable 
                                        approach for a particular 
                                        borrower.''; and
            (2) in clause (ii)(III), by striking ``each of fiscal years 
        2008 through 2012'' and inserting ``fiscal year 2008 and each 
        fiscal year thereafter''.

                      TITLE III--RURAL DEVELOPMENT

SEC. 301. VALUE-ADDED PRODUCER GRANTS.

    Section 231(b) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1632a(b)) is amended--
            (1) by striking paragraph (6) and inserting the following:
            ``(6) Priority.--In awarding grants under this subsection, 
        the Secretary shall--
                    ``(A) in the case of grants awarded under paragraph 
                (1)(A), give priority to--
                            ``(i) operators of small- and medium-sized 
                        farms and ranches that are structured as family 
                        farms; or
                            ``(ii) beginning farmers or ranchers or 
                        socially disadvantaged farmers or ranchers; and
                    ``(B) in the case of grants awarded under paragraph 
                (1)(B), give priority to projects that, as determined 
                through peer review, best contribute--
                            ``(i) to increasing opportunities for 
                        operators of small- and medium-sized farms and 
                        ranches that are structured as family farms; or
                            ``(ii) to creating opportunities for 
                        beginning farmers and ranchers or socially 
                        disadvantaged farmers and ranchers.''; and
            (2) by redesignating paragraph (7) as paragraph (8);
            (3) by inserting after paragraph (6) the following:
            ``(7) Outreach and technical assistance.--The Secretary 
        shall develop and implement an outreach and technical 
        assistance strategy to assist recipients of a grant under this 
        subsection reach and serve underserved States and communities 
        (as determined by the Secretary).''; and
            (4) in paragraph (8) (as redesignated by paragraph (3))--
                    (A) in subparagraph (A)--
                            (i) by striking ``October 1, 2008'' and 
                        inserting ``October 1, 2012, and each October 1 
                        thereafter through October 1, 2017''; and
                            (ii) by striking ``$15,000,000'' and 
                        inserting ``$20,000,000'';
                    (B) in subparagraph (B), by striking ``2012'' and 
                inserting ``2018''; and
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) Priority funding.--
                            ``(i) In general.--In accordance with 
                        clause (ii), the Secretary shall, to the 
                        maximum extent practicable, reserve not less 
                        than \2/3\ of the amounts made available for 
                        each fiscal year under this paragraph to award 
                        grants with respect to which priority is given 
                        under paragraph (6).
                            ``(ii) Reservation of funds.--
                                    ``(I) In general.--Of the amounts 
                                reserved under clause (i) for each 
                                fiscal year, the Secretary shall 
                                reserve a total of 10 percent to award 
                                grants to recipients described in 
                                subparagraphs (A)(ii) and (B)(ii) of 
                                paragraph (6).
                                    ``(II) Mid-tier value chains.--Of 
                                the total amount of funds made 
                                available for each fiscal year under 
                                this paragraph, the Secretary shall 
                                reserve 10 percent to fund applications 
                                of eligible recipients described in 
                                paragraph (1) that propose to develop 
                                mid-tier value chains.
                                    ``(III) Unobligated amounts.--Any 
                                amounts reserved for a fiscal year 
                                under subclause (I) or (II) that are 
                                not obligated by the date on which the 
                                Secretary completes the review process 
                                for applications submitted under this 
                                section in that fiscal year shall be 
                                available to the Secretary to make 
                                grants under this subsection to 
                                eligible recipients in any State, as 
                                determined by the Secretary.''.

              TITLE IV--RESEARCH, EDUCATION, AND EXTENSION

SEC. 401. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    Section 7405 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3319f) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (1), by striking subparagraphs (A) 
                through (R) and inserting the following;
                    ``(A) basic livestock, forest management, and crop 
                farming practices;
                    ``(B) innovative farm, ranch, and private 
                nonindustrial forest land transfer strategies;
                    ``(C) entrepreneurship and business training;
                    ``(D) financial and risk management training 
                (including the acquisition and management of 
                agricultural credit);
                    ``(E) natural resource management and conservation 
                planning;
                    ``(F) diversification and marketing strategies;
                    ``(G) curriculum development;
                    ``(H) mentoring, apprenticeships, and internships;
                    ``(I) assisting beginning farmers or ranchers in 
                acquiring land from retiring farmers and ranchers;
                    ``(J) food safety training;
                    ``(K) agricultural rehabilitation and vocational 
                training for veterans; and
                    ``(L) other similar subject areas of use to 
                beginning farmers or ranchers.'';
                    (B) in paragraph (4)--
                            (i) by striking ``To be eligible'' and 
                        inserting the following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible''; and
                            (ii) by adding at the end the following:
                    ``(B) Exceptions.--The Secretary may waive or 
                modify the matching requirement in subparagraph (A) if 
                the Secretary determines a waiver or modification is 
                necessary to effectively reach an underserved area or 
                population.'';
                    (C) in paragraph (8)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon at the end;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) military veteran beginning farmers and 
                ranchers.''; and
                    (D) by adding at the end the following:
            ``(11) Indirect costs.--To help facilitate participation in 
        the program under this subsection by nongovernmental and 
        community-based nonprofit organizations, the Secretary shall 
        provide for an optional 10 percent indirect cost option in lieu 
        of a higher negotiated rate.''; and
            (2) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``FOR FISCAL YEARS 2009 THROUGH 2012''; and
                            (ii) by striking ``section--'' and all that 
                        follows through the period at the end and 
                        inserting ``section $20,000,000 for each of 
                        fiscal years 2014 through 2018.'';
                    (B) in paragraph (2)--
                            (i) in the paragraph heading, by striking 
                        ``FOR FISCAL YEARS 2009 THROUGH 2012''; and
                            (ii) by striking ``2008 through 2012'' and 
                        inserting ``2013 through 2018''; and
                    (C) by striking paragraph (3).

SEC. 402. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

    Subsection (b) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)) is amended--
            (1) in paragraph (1), by striking ``food and agricultural 
        sciences'' and all that follows through the period at the end 
        and inserting the following: ``food and agricultural sciences 
        (as defined in section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3103))--
                    ``(A) in the case of grant made under paragraph 
                (6), to an entity described in subparagraphs (A), (B), 
                (C), or (D) of that paragraph; and
                    ``(B) in the case of any other grant made under 
                this subsection, to any eligible entity described in 
                paragraph (7), including a grant made for--
                            ``(i) fundamental research (as defined in 
                        section 251(f)(1) of the Department of 
                        Agriculture Reorganization Act of 1994 (7 
                        U.S.C. 6971(f)(1));
                            ``(ii) applied research (as defined in that 
                        section);
                            ``(iii) integrated research conducted 
                        pursuant to section 406 of the Agricultural 
                        Research, Extension, and Education Reform Act 
                        of 1998 (7 U.S.C. 7626); or
                            ``(iv) integrated research described in 
                        clause (iii) that is applied or fundamental 
                        research.'';
            (2) in paragraph (2)(F)--
                    (A) by redesignating clauses (iii) through (vi) as 
                clauses (iv) through (vii), respectively; and
                    (B) by inserting after clause (ii) the following:
                            ``(iii) new farming opportunities, 
                        including young, beginning, socially 
                        disadvantaged, and immigrant issues and farm 
                        transition, farm transfer, farm entry, and 
                        beginning farmer profitability issues;'';
            (3) in paragraph (7), in the matter preceding subparagraph 
        (A), by inserting ``projects (including integrated projects)'' 
        after ``education''; and
            (4) in paragraph (11)(A), in the matter preceding clause 
        (i), by striking ``2008 through 2012'' and inserting ``2013 
        through 2018''.

                        TITLE V--CROP INSURANCE

SEC. 501. RISK MANAGEMENT PARTNERSHIP PROGRAMS.

    Section 522(d) of the Federal Crop Insurance Act (7 U.S.C. 1522(d)) 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``priority given to risk'' and 
                inserting ``priority given to--
                    ``(A) risk'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(B) underserved producers, including beginning 
                farmers and ranchers and socially disadvantaged farmers 
                and ranchers.'';
            (2) in paragraph (2)--
                    (A) by striking ``options for producers'' and 
                inserting ``options for--
                    ``(A) producers
                    ``(B) by striking the period at the end and 
                inserting''; and
                    (B) by adding at the end the following:
                    ``(B) underserved producers, including beginning 
                farmers and ranchers and socially disadvantaged farmers 
                and ranchers.''; and
            (3) by adding at the end the following:
            ``(4) Requirements.--In carrying out the programs 
        established under paragraphs (2) and (3), the Secretary shall 
        place special emphasis on risk management techniques, tools, 
        and programs that are specifically targeted at--
                    ``(A) beginning farmers or ranchers;
                    ``(B) legal immigrant farmers or ranchers that are 
                attempting to become established agricultural producers 
                in the United States;
                    ``(C) socially disadvantaged farmers or ranchers;
                    ``(D) farmers or ranchers that--
                            ``(i) are preparing to retire; and
                            ``(ii) are using transition strategies to 
                        help new farmers or ranchers get started; and
                    ``(E) new or established farmers or ranchers that 
                are converting production and marketing systems to 
                pursue new markets.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. MILITARY VETERANS AGRICULTURAL LIAISON.

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

``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.''.
    (b) Conforming Amendments.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (6), by striking ``or'' after the 
        semicolon at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) the authority of the Secretary to establish in the 
        Department the position of Military Veterans Agricultural 
        Liaison in accordance with section 219.''.

SEC. 602. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

SEC. 603. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect on October 
1, 2013.
                                 <all>
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