I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) IN GENERAL.—This Act may be cited as the ‘‘Ag5 riculture Reform, Food, and Jobs Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 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. 


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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. 


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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. 


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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 


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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. 


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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 


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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. 


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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. 


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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. 


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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. 


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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. 


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1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Sec3 retary of Agriculture. 

4 TITLE I—COMMODITY 

5 PROGRAMS 

6 Subtitle A—Repeals and Reforms 

7 SEC. 1101. REPEAL OF DIRECT PAYMENTS. 

8 (a) REPEAL.—Sections 1103 and 1303 of the Food, 

9 Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 

10 8753) are repealed. 

11 (b) CONTINUED APPLICATION FOR 2013 CROP

12 YEAR.—Sections 1103 and 1303 of the Food, Conserva13 tion, and Energy Act of 2008 (7 U.S.C. 8713, 8753), as 

14 in effect on the day before the date of enactment of this 

15 Act, shall continue to apply through the 2013 crop year 

16 with respect to all covered commodities (as defined in sec17 tion 1001 of that Act (7 U.S.C. 8702)) (except pulse 

18 crops) and peanuts on a farm. 

19 SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS. 

20 (a) REPEAL.—Sections 1104 and 1304 of the Food, 

21 Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 

22 8754) are repealed. 

23 (b) CONTINUED APPLICATION FOR 2013 CROP

24 YEAR.—Sections 1104 and 1304 of the Food, Conserva25 tion, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as 

26 in effect on the day before the date of enactment of this 


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1 Act, shall continue to apply through the 2013 crop year 

2 with respect to all covered commodities (as defined in sec3 tion 1001 of that Act (7 U.S.C. 8702)) and peanuts on 

4 a farm. 

5 SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION 

6 PROGRAM. 

7 (a) REPEAL.—Section 1105 of the Food, Conserva8 tion, and Energy Act of 2008 (7 U.S.C. 8715) is repealed. 

9 (b) CONTINUED APPLICATION FOR 2013 CROP

10 YEAR.—Section 1105 of the Food, Conservation, and En11 ergy Act of 2008 (7 U.S.C. 8715), as in effect on the day 

12 before the date of enactment of this Act, shall continue 

13 to apply through the 2013 crop year with respect to all 

14 covered commodities (as defined in section 1001 of that 

15 Act (7 U.S.C. 8702)) and peanuts on a farm for which 

16 the irrevocable election under section 1105 of that Act is 

17 made before the date of enactment of this Act. 

18 SEC. 1104. DEFINITIONS. 

19 In this subtitle, subtitle B, and subtitle F: 

20 (1) ACTUAL CROP REVENUE.—The term ‘‘ac21 tual crop revenue’’, with respect to a covered com22 modity for a crop year, means the amount deter23 mined by the Secretary under section 1108(c)(3). 


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1 (2) ADVERSE MARKET PAYMENT.—The term 

2 ‘‘adverse market payment’’ means a payment made 

3 to producers on a farm under section 1107. 

4 (3) AGRICULTURE RISK COVERAGE GUAR5 ANTEE.—The term ‘‘agriculture risk coverage guar6 antee’’, with respect to a covered commodity for a 

7 crop year, means the amount determined by the Sec8 retary under section 1108(c)(4). 

9 (4) AGRICULTURE RISK COVERAGE PAYMENT.— 

10 The term ‘‘agriculture risk coverage payment’’ 

11 means a payment under section 1108(c). 

12 (5) AVERAGE INDIVIDUAL YIELD.—The term 

13 ‘‘average individual yield’’ means the yield reported 

14 by a producer for purposes of subtitle A of the Fed15 eral Crop Insurance Act (7 U.S.C. 1501 et seq.), to 

16 the maximum extent practicable. 

17 (6) BASE ACRES.—The term ‘‘base acres’’, with 

18 respect to a covered commodity on a farm, means 

19 the number of acres established under section 1101 

20 or 1302 of the Farm Security and Rural Investment 

21 Act of 2002 (7 U.S.C. 7911, 7952) as in effect on 

22 the date of enactment of this Act, subject to any ad23 justment under section 1105 of this Act. 

24 (7) COUNTY COVERAGE.—For the purposes of 

25 agriculture risk coverage under section 1108, the 


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1 term ‘‘county coverage’’ means coverage determined 

2 using the total quantity of all acreage in a county 

3 of the covered commodity that is planted or pre4 vented from being planted for harvest by a producer 

5 with the yield determined by the average county 

6 yield described in subsection (c) of that section. 

7 (8) COVERED COMMODITY.— 

8 (A) IN GENERAL.—The term ‘‘covered 

9 commodity’’ means wheat, corn, grain sorghum, 

10 barley, oats, long grain rice, medium grain rice, 

11 pulse crops, soybeans, other oilseeds, and pea12 nuts. 

13 (B) POPCORN.—The Secretary— 

14 (i) shall study the feasibility of includ15 ing popcorn as a covered commodity by 

16 2014; and 

17 (ii) if the Secretary determines it to 

18 be feasible, shall designate popcorn as a 

19 covered commodity. 

20 (9) ELIGIBLE ACRES.— 

21 (A) IN GENERAL.—Except as provided in 

22 subparagraphs (B) through (D), the term ‘‘eli23 gible acres’’ means all acres planted or pre24 vented from being planted to all covered com25 modities on a farm in any crop year. 


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1 (B) MAXIMUM.—Except as provided in 

2 subparagraph (C), the total quantity of eligible 

3 acres on a farm determined under subpara4 graph (A) shall not exceed the average total 

5 acres planted or prevented from being planted 

6 to covered commodities and upland cotton on 

7 the farm for the 2009 through 2012 crop years, 

8 as determined by the Secretary. 

9 (C) ADJUSTMENT.—The Secretary shall 

10 provide for an adjustment, as appropriate, in 

11 the eligible acres for covered commodities for a 

12 farm if any of the following circumstances oc13 curs: 

14 (i) If a conservation reserve contract 

15 for a farm in a county entered into under 

16 section 1231 of the Food Security Act of 

17 1985 (16 U.S.C. 3831) expires or is volun18 tarily terminated or cropland is released 

19 from coverage under a conservation reserve 

20 contract, the Secretary shall provide for an 

21 adjustment, as appropriate, in the eligible 

22 acres for the farm to a total quantity that 

23 is the higher of— 

24 (I) the total base acreage for the 

25 farm, less any upland cotton base 


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1 acreage, that was suspended during 

2 the conservation reserve contract; or 

3 (II) the product obtained by mul4 tiplying— 

5 (aa) the average proportion 

6 that— 

7 (AA) the total number 

8 of acres planted to covered 

9 commodities and upland cot10 ton in the county for crop 

11 years 2009 through 2012; 

12 bears to 

13 (BB) the total number 

14 of all acres of covered com15 modities, grassland, and up16 land cotton acres in the 

17 county for the same crop 

18 years; by 

19 (bb) the total acres for 

20 which coverage has expired, vol21 untarily terminated, or been re22 leased under the conservation re23 serve contract. 

24 (ii) The producer has eligible oilseed 

25 acreage as the result of the Secretary desVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 ignating additional oilseeds, which shall be 

2 determined in the same manner as eligible 

3 oilseed acreage under section 

4 1101(a)(1)(D) of the Food, Conservation, 

5 and Energy Act of 2008 (7 U.S.C. 

6 8711(a)(1)(D)). 

7 (iii) The producer has any acreage not 

8 cropped during the 2009 through 2012 

9 crop years, but placed into an established 

10 rotation practice for the purposes of en11 riching land or conserving moisture for 

12 subsequent crop years, including summer 

13 fallow, as determined by the Secretary. 

14 (D) EXCLUSION.—The term ‘‘eligible 

15 acres’’ does not include any crop subsequently 

16 planted during the same crop year on the same 

17 land for which the first crop is eligible for pay18 ments under this subtitle, unless the crop was 

19 planted in an area approved for double crop20 ping, as determined by the Secretary. 

21 (10) EXTRA LONG STAPLE COTTON.—The term 

22 ‘‘extra long staple cotton’’ means cotton that— 

23 (A) is produced from pure strain varieties 

24 of the Barbadense species or any hybrid of the 

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1 ple cotton, designated by the Secretary, having 

2 characteristics needed for various end uses for 

3 which United States upland cotton is not suit4 able and grown in irrigated cotton-growing re5 gions of the United States designated by the 

6 Secretary or other areas designated by the Sec7 retary as suitable for the production of the vari8 eties or types; and 

9 (B) is ginned on a roller-type gin or, if au10 thorized by the Secretary, ginned on another 

11 type gin for experimental purposes. 

12 (11) INDIVIDUAL COVERAGE.—For purposes of 

13 agriculture risk coverage under section 1108, the 

14 term ‘‘individual coverage’’ means coverage deter15 mined using the total quantity of all acreage in a 

16 county of the covered commodity that is planted or 

17 prevented from being planted for harvest by a pro18 ducer with the yield determined by the average indi19 vidual yield of the producer described in subsection 

20 (c) of that section. 

21 (12) MEDIUM GRAIN RICE.—The term ‘‘medium 

22 grain rice’’ includes short grain rice. 

23 (13) OTHER OILSEED.—The term ‘‘other oil24 seed’’ means a crop of sunflower seed, rapeseed, 

25 canola, safflower, flaxseed, mustard seed, crambe, 


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1 sesame seed, or any oilseed designated by the Sec2 retary. 

3 (14) PAYMENT ACRES.—The term ‘‘payment 

4 acres’’ means, in the case of adverse market pay5 ments, 85 percent of the base acres for a covered 

6 commodity on a farm on which adverse market pay7 ments are made. 

8 (15) PAYMENT YIELD.—The term ‘‘payment 

9 yield’’ means the yield established for adverse mar10 ket payments under section 1102 or 1302 of the 

11 Farm Security and Rural Investment Act of 2002 (7 

12 U.S.C. 7912, 7952) as in effect on the date of enact13 ment of this Act, or under section 1106 of this Act, 

14 for a farm for a covered commodity. 

15 (16) PRODUCER.— 

16 (A) IN GENERAL.—The term ‘‘producer’’ 

17 means an owner, operator, landlord, tenant, or 

18 sharecropper that shares in the risk of pro19 ducing a crop and is entitled to share in the 

20 crop available for marketing from the farm, or 

21 would have shared had the crop been produced. 

22 (B) HYBRID SEED.—In determining 

23 whether a grower of hybrid seed is a producer, 

24 the Secretary shall— 


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1 (i) not take into consideration the ex2 istence of a hybrid seed contract; and 

3 (ii) ensure that program requirements 

4 do not adversely affect the ability of the 

5 grower to receive a payment under this 

6 title. 

7 (17) PULSE CROP.—The term ‘‘pulse crop’’ 

8 means dry peas, lentils, small chickpeas, and large 

9 chickpeas. 

10 (18) STATE.—The term ‘‘State’’ means— 

11 (A) a State; 

12 (B) the District of Columbia; 

13 (C) the Commonwealth of Puerto Rico; 

14 and 

15 (D) any other territory or possession of the 

16 United States. 

17 (19) REFERENCE PRICE.—The term ‘‘reference 

18 price’’ means the price per bushel, pound, or hun19 dredweight (or other appropriate unit) of a covered 

20 commodity used to determine the payment rate for 

21 adverse market payments. 

22 (20) TRANSITIONAL YIELD.—The term ‘‘transi23 tional yield’’ has the meaning given the term in sec24 tion 502(b) of the Federal Crop Insurance Act (7 

25 U.S.C. 1502(b)). 


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1 (21) UNITED STATES.—The term ‘‘United 

2 States’’, when used in a geographical sense, means 

3 all of the States. 

4 (22) UNITED STATES PREMIUM FACTOR.—The 

5 term ‘‘United States Premium Factor’’ means the 

6 percentage by which the difference in the United 

7 States loan schedule premiums for Strict Middling 

(SM) 11 8 ⁄8-inch upland cotton and for Middling (M) 

13 9 ⁄32-inch upland cotton exceeds the difference in the 

10 applicable premiums for comparable international 

11 qualities. 

12 SEC. 1105. BASE ACRES. 

13 (a) ADJUSTMENT OF BASE ACRES.— 

14 (1) IN GENERAL.—The Secretary shall provide 

15 for an adjustment, as appropriate, in the base acres 

16 for covered commodities for a farm whenever any of 

17 the following circumstances occurs: 

18 (A) A conservation reserve contract en19 tered into under section 1231 of the Food Secu20 rity Act of 1985 (16 U.S.C. 3831) with respect 

21 to the farm expires or is voluntarily terminated, 

22 or was terminated or expired during the period 

23 beginning on October 1, 2012, and ending on 

24 the date of enactment of this Act. 


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1 (B) Cropland is released from coverage 

2 under a conservation reserve contract by the 

3 Secretary, or was released during the period be4 ginning on October 1, 2012, and ending on the 

5 date of enactment of this Act. 

6 (C) The producer has eligible pulse crop 

7 acreage, which shall be determined in the same 

8 manner as eligible oilseed acreage under section 

9 1101(a)(2) of the Farm Security and Rural In10 vestment Act of 2002 (7 U.S.C. 7911(a)(2)). 

11 (D) The producer has eligible oilseed acre12 age as the result of the Secretary designating 

13 additional oilseeds, which shall be determined in 

14 the same manner as eligible oilseed acreage 

15 under section 1101(a)(2) of the Farm Security 

16 and Rural Investment Act of 2002 (7 U.S.C. 

17 7911(a)(2)). 

18 (2) SPECIAL CONSERVATION RESERVE ACREAGE

19 PAYMENT RULES.—For the crop year in which a 

20 base acres adjustment under subparagraph (A) or 

21 (B) of paragraph (1) is first made, the producer on 

22 the farm shall elect to receive either adverse market 

23 payments with respect to the acreage added to the 

24 farm under this subsection or a prorated payment 


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1 under the conservation reserve contract, but not 

2 both. 

3 (3) OPTIONAL ADJUSTMENT.— 

4 (A) ELECTION.— 

5 (i) IN GENERAL.—For the purpose of 

6 making adverse market payments, the Sec7 retary shall give a producer on a farm a 1- 

8 time opportunity to adjust the peanut base 

9 acres on the farm. 

10 (ii) NOTICE.—As soon as practicable 

11 after the date of enactment of this Act, the 

12 Secretary shall provide notice of the elec13 tion described in clause (i) to producers on 

14 farms with peanut base acres, including— 

15 (I) the manner in which the elec16 tion is to be transmitted to the Sec17 retary; 

18 (II) a deadline for transmission; 

19 and 

20 (III) notification that the election 

21 is a 1-time opportunity. 

22 (iii) EFFECT OF FAILURE TO MAKE

23 ELECTION.—If the producer on a farm 

24 fails to notify the Secretary of an election 

25 by the deadline described in clause (ii), the 


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1 producer shall be considered to have not 

2 elected to update the peanut base acres on 

3 the farm. 

4 (B) CALCULATION.— 

5 (i) IN GENERAL.—If the producer on 

6 a farm makes the election described in 

7 subparagraph (A), the base acres for pea8 nuts on the farm established pursuant to 

9 section 1302 of the Farm Security and 

10 Rural Investment Act of 2002 (7 U.S.C. 

11 7952) shall be equal to the average acreage 

12 planted on the farm to peanuts for harvest 

13 or similar purposes for the 2009 through 

14 2012 crop years, as determined by the Sec15 retary. 

16 (ii) INCLUSIONS.—In making the cal17 culation described in clause (i), the Sec18 retary shall include— 

19 (I) any acreage on the farm that 

20 the producer was prevented from 

21 planting to peanuts during the 2009 

22 through 2012 crop years because of 

23 drought, flood, or other natural dis24 aster, or other condition beyond the 

25 control of the producer; 


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1 (II) any crop year in which pea2 nuts were not planted on the farm; 

3 and 

4 (III) any adjustment, as appro5 priate, whenever either of the fol6 lowing occurs: 

7 (aa) A conservation reserve 

8 contract entered into under sec9 tion 1231 of the Food Security 

10 Act of 1985 (16 U.S.C. 3831) 

11 with respect to the peanut base 

12 acres on the farm expires or is 

13 voluntarily terminated. 

14 (bb) Peanut cropland is re15 leased from coverage under a 

16 conservation reserve contract by 

17 the Secretary. 

18 (C) LIMIT.— 

19 (i) IN GENERAL.—If the producer on 

20 a farm makes the election described in 

21 subparagraph (A), the Secretary shall en22 sure that the adjustment does not result in 

23 a net increase in the total base acres for 

24 the farm (including the upland cotton base 

25 acres described in subsection (e)). 


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1 (ii) REDUCTION REQUIRED.—If the 

2 adjustment in base acres made pursuant to 

3 an election described in subparagraph (A) 

4 results in a net increase in the total base 

5 acres of all covered commodities and up6 land cotton on the farm, the Secretary 

7 shall reduce the base acres on the farm for 

8 all covered commodities (other than pea9 nuts) and upland cotton proportionately, 

10 as determined by the Secretary. 

11 (b) PREVENTION OF EXCESS BASE ACRES.— 

12 (1) REQUIRED REDUCTION.—If the sum of the 

13 base acres for a farm, together with the acreage de14 scribed in paragraph (2), exceeds the actual crop15 land acreage of the farm, the Secretary shall reduce 

16 the base acres for 1 or more covered commodities for 

17 the farm so that the sum of the base acres and acre18 age described in paragraph (2) does not exceed the 

19 actual cropland acreage of the farm. 

20 (2) OTHER ACREAGE.—For purposes of para21 graph (1), the Secretary shall include the following: 

22 (A) Any acreage on the farm enrolled in 

23 the conservation reserve program or agricul24 tural conservation easement program under 

25 subchapter B of chapter 1 of subtitle D and 


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1 subtitle H, respectively, of title XII of the Food 

2 Security Act of 1985 (16 U.S.C. 3831 et seq.). 

3 (B) Any other acreage on the farm en4 rolled in a Federal conservation program for 

5 which payments are made in exchange for not 

6 producing an agricultural commodity on the 

7 acreage. 

8 (C) Any eligible pulse crop acreage, which 

9 shall be determined in the same manner as eli10 gible oilseed acreage under section 1101(a)(2) 

11 of the Farm Security and Rural Investment Act 

12 of 2002 (7 U.S.C. 7911(a)(2)). 

13 (D) If the Secretary designates additional 

14 oilseeds, any eligible oilseed acreage, which shall 

15 be determined in the same manner as eligible 

16 oilseed acreage under section 1101(a)(2) of the 

17 Farm Security and Rural Investment Act of 

18 2002 (7 U.S.C. 7911(a)(2)). 

19 (3) SELECTION OF ACRES.—The Secretary shall 

20 give the producer on the farm the opportunity to se21 lect the base acres for a covered commodity for the 

22 farm against which the reduction required by para23 graph (1) will be made. 

24 (4) EXCEPTION FOR DOUBLE-CROPPED ACRE25 AGE.—In applying paragraph (1), the Secretary 


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1 shall make an exception in the case of double crop2 ping, as determined by the Secretary. 

3 (c) REDUCTION IN BASE ACRES.— 

4 (1) REDUCTION AT OPTION OF PRODUCER.— 

5 (A) IN GENERAL.—The producer on a 

6 farm may reduce, at any time, the base acres 

7 for any covered commodity for the farm. 

8 (B) EFFECT OF REDUCTION.—A reduction 

9 under subparagraph (A) shall be permanent 

10 and made in a manner prescribed by the Sec11 retary. 

12 (2) REQUIRED ACTION BY SECRETARY.— 

13 (A) IN GENERAL.—The Secretary shall 

14 proportionately reduce base acres on a farm for 

15 covered commodities for land that has been sub16 divided and developed for multiple residential 

17 units or other nonfarming uses if the size of the 

18 tracts and the density of the subdivision is such 

19 that the land is unlikely to return to the pre20 vious agricultural use, unless the producers on 

21 the farm demonstrate that the land— 

22 (i) remains devoted to commercial ag23 ricultural production; or 

24 (ii) is likely to be returned to the pre25 vious agricultural use. 


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1 (B) REQUIREMENT.—The Secretary shall 

2 establish procedures to identify land described 

3 in subparagraph (A). 

4 (3) REVIEW AND REPORT.—Each year, to en5 sure, to the maximum extent practicable, that pay6 ments are received only by producers, the Secretary 

7 shall submit to Congress a report that describes the 

8 results of the actions taken under paragraph (2). 

9 (d) TREATMENT OF FARMS WITH LIMITED BASE

10 ACRES.— 

11 (1) PROHIBITION ON PAYMENTS.—Except as 

12 provided in paragraph (2) and notwithstanding any 

13 other provision of this title, a producer on a farm 

14 may not receive adverse market payments if the sum 

15 of the base acres of the farm is 10 acres or less, as 

16 determined by the Secretary. 

17 (2) EXCEPTIONS.—Paragraph (1) shall not 

18 apply to a farm owned or operated by— 

19 (A) a socially disadvantaged farmer (as de20 fined in section 3002 of the Consolidated Farm 

21 and Rural Development Act); or 

22 (B) a limited resource farmer or rancher, 

23 as defined by the Secretary. 

24 (3) DATA COLLECTION AND PUBLICATION.— 

25 The Secretary shall— 


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1 (A) collect and publish segregated data 

2 and survey information about farm profiles, uti3 lization of land, and crop production; and 

4 (B) perform an evaluation on the supply 

5 and price of fruits and vegetables based on the 

6 effects of suspension of base acres under this 

7 section. 

8 (e) TREATMENT OF FARMS WITH UPLAND COTTON

9 BASE ACRES.—The Secretary shall maintain a record of 

10 farms with upland cotton base acres in effect on the day 

11 before the date of enactment of this Act. 

12 SEC. 1106. PAYMENT YIELDS. 

13 (a) DESIGNATED OILSEED OR ELIGIBLE PULSE

14 CROP.— 

15 (1) ADJUSTMENT.—For the purpose of making 

16 adverse market payments under this subtitle, the 

17 Secretary shall provide for the establishment of a 

18 yield for each farm for any designated oilseed or eli19 gible pulse crop for which a payment yield was not 

20 established under section 1102 of the Farm Security 

21 and Rural Investment Act of 2002 (7 U.S.C. 7912) 

22 in accordance with this section. 

23 (2) PAYMENT YIELDS FOR DESIGNATED OIL24 SEEDS AND ELIGIBLE PULSE CROPS.— 


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1 (A) DETERMINATION OF AVERAGE

2 YIELD.—In the case of designated oilseeds and 

3 eligible pulse crops, the Secretary shall deter4 mine the average yield per planted acre for the 

5 designated oilseed or pulse crop on a farm for 

6 the 1998 through 2001 crop years, excluding 

7 any crop year in which the acreage planted to 

8 the designated oilseed or pulse crop was zero. 

9 (B) ADJUSTMENT FOR PAYMENT YIELD.— 

10 (i) IN GENERAL.—The payment yield 

11 for a farm for a designated oilseed or eligi12 ble pulse crop shall be equal to the product 

13 of the following: 

14 (I) The average yield for the des15 ignated oilseed or pulse crop deter16 mined under subparagraph (A). 

17 (II) The ratio resulting from di18 viding the national average yield for 

19 the designated oilseed or pulse crop 

20 for the 1981 through 1985 crops by 

21 the national average yield for the des22 ignated oilseed or pulse crop for the 

23 1998 through 2001 crops. 

24 (ii) NO NATIONAL AVERAGE YIELD IN25 FORMATION AVAILABLE.—To the extent 


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1 that national average yield information for 

2 a designated oilseed or pulse crop is not 

3 available, the Secretary shall use such in4 formation as the Secretary determines to 

5 be fair and equitable to establish a na6 tional average yield under this section. 

7 (C) USE OF PARTIAL COUNTY AVERAGE

8 YIELD.—If the yield per planted acre for a crop 

9 of a designated oilseed or pulse crop for a farm 

10 for any of the 1998 through 2001 crop years 

11 was less than 75 percent of the county yield for 

12 that designated oilseed or pulse crop, the Sec13 retary shall assign a yield for that crop year 

14 equal to 75 percent of the county yield for the 

15 purpose of determining the average under sub16 paragraph (A). 

17 (D) NO HISTORIC YIELD DATA AVAIL18 ABLE.—In the case of establishing yields for 

19 designated oilseeds and eligible pulse crops, if 

20 historic yield data is not available, the Sec21 retary shall use the ratio for dry peas calculated 

22 under subparagraph (B)(i)(II) in determining 

23 the yields for designated oilseeds and eligible 

24 pulse crops, as determined to be fair and equi25 table by the Secretary. 


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1 (b) RICE.— 

2 (1) ADJUSTMENT.—For the purpose of making 

3 adverse market payments under this subtitle, the 

4 Secretary shall give a producer on a farm a 1-time 

5 opportunity to adjust the payment yield for base 

6 acres of rice on the farm that was established under 

7 section 1102 of the Farm Security and Rural Invest8 ment Act of 2002 (7 U.S.C. 7912). 

9 (2) ELECTION.— 

10 (A) NOTICE.—As soon as practicable after 

11 the date of enactment of this Act, the Secretary 

12 shall provide notice of the election described in 

13 paragraph (1) to producers on farms with rice 

14 base acres, including— 

15 (i) the manner in which the election is 

16 to be transmitted to the Secretary; 

17 (ii) a deadline for transmission; and 

18 (iii) notification that the election is a 

19 1-time opportunity. 

20 (B) EFFECT OF FAILURE TO MAKE ELEC21 TION.—If the producer on a farm fails to notify 

22 the Secretary of an election by the deadline de23 scribed in subparagraph (A), the producer shall 

24 be considered to have not elected to update the 


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1 payment yields for base acres of rice on the 

2 farm. 

3 (3) CALCULATION.— 

4 (A) IN GENERAL.—If the producer on a 

5 farm makes the election described in paragraph 

6 (2), the Secretary shall adjust the payment 

7 yields for the base acres of rice using an aver8 age yield described in subparagraph (B) and 

9 adjustment described in subparagraph (C). 

10 (B) DETERMINATION OF AVERAGE

11 YIELD.—Subject to subparagraph (D), the Sec12 retary shall determine the average yield per 

13 planted acre for the rice on the farm for the 

14 2009 through 2012 crop years, excluding any 

15 crop year in which the acreage planted to rice 

16 was zero. 

17 (C) DETERMINATION OF ADJUSTMENT.— 

18 The Secretary shall adjust the payment yield 

19 for the base acres of rice on the farm that was 

20 established under section 1102 of the Farm Se21 curity and Rural Investment Act of 2002 (7 

22 U.S.C. 7912) in accordance with the following: 

23 (i) In a case in which less than 50 

24 percent of the rice base acres on the farm 

25 were planted to rice, on average, during 


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1 the 2009 through 2012 crop years, the ad2 justment shall be equal to the sum ob3 tained by adding to the payment yield— 

4 (I) the product obtained by mul5 tiplying— 

6 (aa) the difference between 

7 the average yield and the pay8 ment yield; by 

9 (bb) the percent of rice 

10 planted on the base acres of rice 

11 on the farm, on average. 

12 (ii) In a case in which more than 50 

13 percent of the rice base acres on the farm 

14 were planted to rice, on average, during 

15 the 2009 through 2012 crop years, the 

16 payment yield shall be equal to the product 

17 obtained by multiplying— 

18 (I) the average yield; by 

19 (II) 90 percent. 

20 (D) USE OF PARTIAL COUNTY AVERAGE

21 YIELD.—If the yield per planted acre for a crop 

22 of rice for a farm for any of the 2009 through 

23 2012 crop years was less than 75 percent of the 

24 county yield for that rice crop, the Secretary 

25 shall assign a yield for that crop year equal to 


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1 75 percent of the county yield for purposes of 

2 determining the average under subparagraph 

3 (B). 

4 (c) PEANUTS.— 

5 (1) ADJUSTMENT.—If the producer on a farm 

6 elects to adjust the peanut base acres for the farm 

7 pursuant to section 1105, the Secretary shall adjust 

8 the payment yields for the base acres of peanuts for 

9 purposes of making adverse market payments. 

10 (2) CALCULATION.—Notwithstanding the pay11 ment yields established under section 1102 of the 

12 Farm Security and Rural Investment Act of 2002 (7 

13 U.S.C. 7912), the payment yield for the base acres 

14 of peanuts adjusted pursuant to section 1105 shall 

15 be the average yield per planted acre for such base 

16 acres for the 2009 through 2012 crop years, exclud17 ing any crop year in which the acreage planted to 

18 peanuts was zero. 

19 (3) USE OF PARTIAL COUNTY AVERAGE

20 YIELD.—If the yield per planted acre for a crop of 

21 peanuts for a farm for any of the 2009 through 

22 2012 crop years was less than 75 percent of the 

23 county yield for that peanut crop, the Secretary 

24 shall assign a yield for that crop year equal to 75 


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1 percent of the county yield for purposes of deter2 mining the average under paragraph (2). 

3 SEC. 1107. AVAILABILITY OF ADVERSE MARKET PAYMENTS. 

4 (a) PAYMENT REQUIRED.—For each of the 2014 

5 through 2018 crop years for each covered commodity, the 

6 Secretary shall make adverse market payments to pro7 ducers on farms for which payment yields and base acres 

8 are established with respect to the covered commodity if 

9 the Secretary determines that the actual price for the cov10 ered commodity is less than the reference price for the 

11 covered commodity. 

12 (b) ACTUAL PRICE.— 

13 (1) COVERED COMMODITIES OTHER THAN

14 RICE.—Except as provided in paragraph (2), for 

15 purposes of subsection (a), the actual price for a 

16 covered commodity is equal to the higher of the fol17 lowing: 

18 (A) The national average market price re19 ceived by producers during the 12-month mar20 keting year for the covered commodity, as de21 termined by the Secretary. 

22 (B) The national average loan rate for a 

23 marketing assistance loan for the covered com24 modity in effect for the applicable period under 

25 subtitle B. 


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1 (2) RICE.—In the case of long grain rice and 

2 medium grain rice, for purposes of subsection (a), 

3 the actual price for each type or class of rice is equal 

4 to the higher of the following: 

5 (A) The national average market price re6 ceived by producers during the 12-month mar7 keting year for the type or class of rice, as de8 termined by the Secretary. 

9 (B) The national average loan rate for a 

10 marketing assistance loan for the type or class 

11 of rice in effect for the applicable period under 

12 subtitle B. 

13 (c) REFERENCE PRICE.—The reference price for a 

14 covered commodity shall be determined as follows: 

15 (1) IN GENERAL.—Subject to paragraph (2), 

16 the reference price for a covered commodity shall be 

17 the product obtained by multiplying— 

18 (A) 55 percent; by 

19 (B) the average national marketing year 

20 average price for the most recent 5 crop years, 

21 excluding each of the crop years with the high22 est and lowest prices. 

23 (2) ALTERNATIVE PRICE FOR RICE AND PEA24 NUTS.—In the case of long and medium grain rice 

25 and peanuts, the reference price shall be— 


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1 (A) in the case of long and medium grain 

2 rice, $13.30 per hundredweight; and 

3 (B) in the case of peanuts, $523.77 per 

4 ton. 

5 (d) PAYMENT RATE.—The payment rate used to 

6 make adverse market payments with respect to a covered 

7 commodity for a crop year shall be equal to the amount 

8 that— 

9 (1) the reference price under subsection (c) for 

10 the covered commodity; exceeds 

11 (2) the actual price determined under sub12 section (b) for the covered commodity. 

13 (e) PAYMENT AMOUNT.—If adverse market payments 

14 are required to be paid under this section for any of the 

15 2014 through 2018 crop years of a covered commodity, 

16 the amount of the adverse market payment to be paid to 

17 the producers on a farm for that crop year shall be equal 

18 to the product of the following: 

19 (1) The payment rate specified in subsection 

20 (d). 

21 (2) The payment acres of the covered com22 modity on the farm. 

23 (3) The payment yield for the covered com24 modity for the farm. 


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1 (f) DUTIES OF THE SECRETARY.—ln carrying out the 

2 calculations in subsections (b) and (c), the Secretary shall 

3 differentiate by type or class the national average price 

4 of— 

5 (1) sunflower seeds; 

6 (2) barley, using malting barley values; and 

7 (3) wheat. 

8 (g) TIME FOR PAYMENTS.—If the Secretary deter9 mines under subsection (a) that adverse market payments 

10 are required to be made under this section for the crop 

11 of a covered commodity, beginning October 1, or as soon 

12 as practicable thereafter, after the end of the applicable 

13 marketing year for the covered commodity, the Secretary 

14 shall make the adverse market payments for the crop. 

15 SEC. 1108. AGRICULTURE RISK COVERAGE. 

16 (a) PAYMENTS REQUIRED.—If the Secretary deter17 mines that payments are required under subsection (c), 

18 the Secretary shall make payments for each covered com19 modity available to producers in accordance with this sec20 tion. 

21 (b) COVERAGE ELECTION.— 

22 (1) IN GENERAL.—For the period of crop years 

23 2014 through 2018, the producers shall make a 1- 

24 time, irrevocable election to receive— 


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1 (A) individual coverage under this section, 

2 as determined by the Secretary; or 

3 (B) in the case of a county with sufficient 

4 data (as determined by the Secretary), county 

5 coverage under this section. 

6 (2) EFFECT OF ELECTION.—The election made 

7 under paragraph (1) shall be binding on the pro8 ducers making the election, regardless of covered 

9 commodities planted, and applicable to all acres 

10 under the operational control of the producers, in a 

11 manner that— 

12 (A) acres brought under the operational 

13 control of the producers after the election are 

14 included; and 

15 (B) acres no longer under the operational 

16 control of the producers after the election are 

17 no longer subject to the election of the pro18 ducers but become subject to the election of the 

19 subsequent producers. 

20 (3) DUTIES OF THE SECRETARY.—The Sec21 retary shall ensure that producers are precluded 

22 from taking any action, including reconstitution, 

23 transfer, or other similar action, that would have the 

24 effect of altering or reversing the election made 

25 under paragraph (1). 


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1 (c) AGRICULTURE RISK COVERAGE.— 

2 (1) PAYMENTS.—The Secretary shall make ag3 riculture risk coverage payments available under this 

4 subsection for each of the 2014 through 2018 crop 

5 years if the Secretary determines that— 

6 (A) the actual crop revenue for the crop 

7 year for the covered commodity; is less than 

8 (B) the agriculture risk coverage guarantee 

9 for the crop year for the covered commodity. 

10 (2) TIME FOR PAYMENTS.—If the Secretary de11 termines under this subsection that agriculture risk 

12 coverage payments are required to be made for the 

13 covered commodity, beginning October 1, or as soon 

14 as practicable thereafter, after the end of the appli15 cable marketing year for the covered commodity, the 

16 Secretary shall make the agriculture risk coverage 

17 payments. 

18 (3) ACTUAL CROP REVENUE.—The amount of 

19 the actual crop revenue for a crop year of a covered 

20 commodity shall be equal to the product obtained by 

21 multiplying— 

22 (A)(i) in the case of individual coverage, 

23 the actual average individual yield for the cov24 ered commodity, as determined by the Sec25 retary; or 


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1 (ii) in the case of county coverage, the ac2 tual average yield for the county for the covered 

3 commodity, as determined by the Secretary; 

4 and 

5 (B) the higher of— 

6 (i) the national average market price 

7 received by producers during the 12-month 

8 marketing year for the covered commodity, 

9 as determined by the Secretary; or 

10 (ii) if applicable, the reference price 

11 for the covered commodity under section 

12 1107. 

13 (4) AGRICULTURE RISK COVERAGE GUAR14 ANTEE.— 

15 (A) IN GENERAL.—The agriculture risk 

16 coverage guarantee for a crop year for a cov17 ered commodity shall equal 88 percent of the 

18 benchmark revenue. 

19 (B) BENCHMARK REVENUE.— 

20 (i) IN GENERAL.—The benchmark 

21 revenue shall be the product obtained by 

22 multiplying— 

23 (I)(aa) in the case of individual 

24 coverage, subject to clause (ii), the av25 erage individual yield, as determined 


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1 by the Secretary, for the most recent 

2 5 crop years, excluding each of the 

3 crop years with the highest and lowest 

4 yields; or 

5 (bb) in the case of county cov6 erage, the average county yield, as de7 termined by the Secretary, for the 

8 most recent 5 crop years, excluding 

9 each of the crop years with the high10 est and lowest yields; and 

11 (II) the average national mar12 keting year average price for the most 

13 recent 5 crop years, excluding each of 

14 the crop years with the highest and 

15 lowest prices. 

16 (ii) USE OF TRANSITIONAL YIELDS.— 

17 If the yield determined under clause 

18 (i)(I)(aa)— 

19 (I) for the 2013 crop year or any 

20 prior crop year, is less than 60 per21 cent of the applicable transitional 

22 yield, the Secretary shall use 60 per23 cent of the applicable transitional 

24 yield for that crop year; and 


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1 (II) for the 2014 crop year and 

2 any subsequent crop year, is less than 

3 65 percent of the applicable transi4 tional yield, the Secretary shall use 65 

5 percent of the applicable transitional 

6 yield for that crop year. 

7 (5) PAYMENT RATE.—The payment rate for 

8 each covered commodity shall be equal to the lesser 

9 of— 

10 (A) the amount that— 

11 (i) the agriculture risk coverage guar12 antee for the covered commodity; exceeds 

13 (ii) the actual crop revenue for the 

14 crop year of the covered commodity; or 

15 (B) 10 percent of the benchmark revenue 

16 for the crop year of the covered commodity. 

17 (6) PAYMENT AMOUNT.—If agriculture risk 

18 coverage payments under this subsection are re19 quired to be paid for any of the 2014 through 2018 

20 crop years of a covered commodity, the amount of 

21 the agriculture risk coverage payment for the crop 

22 year shall be equal to the product obtained by multi23 plying— 

24 (A) the payment rate under paragraph (5); 

25 and 


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1 (B)(i) in the case of individual coverage 

2 the sum of— 

3 (I) 65 percent of the planted eligible 

4 acres of the covered commodity; and 

5 (II) 45 percent of the eligible acres 

6 that were prevented from being planted to 

7 the covered commodity; or 

8 (ii) in the case of county coverage— 

9 (I) 80 percent of the planted eligible 

10 acres of the covered commodity; and 

11 (II) 45 percent of the eligible acres 

12 that were prevented from being planted to 

13 the covered commodity. 

14 (7) DUTIES OF THE SECRETARY.—In carrying 

15 out the program under this subsection, the Secretary 

16 shall— 

17 (A) to the maximum extent practicable, 

18 use all available information and analysis to 

19 check for anomalies in the determination of 

20 payments under the program; 

21 (B) to the maximum extent practicable, 

22 calculate a separate actual crop revenue and ag23 riculture risk coverage guarantee for irrigated 

24 and nonirrigated covered commodities; 


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1 (C) differentiate by type or class the na2 tional average price of— 

3 (i) sunflower seeds; 

4 (ii) barley, using malting barley val5 ues; and 

6 (iii) wheat; and 

7 (D) assign a yield for each acre planted or 

8 prevented from being planted for the crop year 

9 for the covered commodity on the basis of the 

10 yield history of representative farms in the 

11 State, region, or crop reporting district, as de12 termined by the Secretary, if the Secretary can13 not establish the yield as determined under 

14 paragraph (3)(A)(ii) or (4)(B)(i) or if the yield 

15 determined under paragraph (3)(A)(ii) or (4) is 

16 an unrepresentative average yield for the cov17 ered commodity as determined by the Secretary. 

18 SEC. 1109. PRODUCER AGREEMENT REQUIRED AS CONDI19 TION OF PROVISION OF PAYMENTS. 

20 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

21 (1) REQUIREMENTS.—Before the producers on 

22 a farm may receive agriculture risk coverage pay23 ments or adverse market payments, the producers 

24 shall agree, during the crop year for which the pay25 ments are made and in exchange for the payments— 


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1 (A) to comply with applicable conservation 

2 requirements under subtitle B of title XII of 

3 the Food Security Act of 1985 (16 U.S.C. 3811 

4 et seq.); 

5 (B) to comply with applicable wetland pro6 tection requirements under subtitle C of title 

7 XII of that Act (16 U.S.C. 3821 et seq.); 

8 (C) to use the land on the farm for an ag9 ricultural or conserving use in a quantity equal 

10 to the attributable eligible acres of the farm, 

11 and not for a nonagricultural commercial, in12 dustrial, or residential use, as determined by 

13 the Secretary; and 

14 (D) to effectively control noxious weeds 

15 and otherwise maintain the land in accordance 

16 with sound agricultural practices, as determined 

17 by the Secretary, if the agricultural or con18 serving use involves the noncultivation of any 

19 portion of the land referred to in subparagraph 

20 (C). 

21 (2) COMPLIANCE.—The Secretary may issue 

22 such rules as the Secretary considers necessary to 

23 ensure producer compliance with the requirements of 

24 paragraph (1). 


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1 (3) MODIFICATION.—At the request of the 

2 transferee or owner, the Secretary may modify the 

3 requirements of this subsection if the modifications 

4 are consistent with the objectives of this subsection, 

5 as determined by the Secretary. 

6 (b) TRANSFER OR CHANGE OF INTEREST IN

7 FARM.— 

8 (1) TERMINATION.— 

9 (A) IN GENERAL.—Except as provided in 

10 paragraph (2), a transfer of (or change in) the 

11 interest of the producers on a farm for which 

12 agriculture risk coverage payments or adverse 

13 market payments are made shall result in the 

14 termination of the payments, unless the trans15 feree or owner of the acreage agrees to assume 

16 all obligations under subsection (a). 

17 (B) EFFECTIVE DATE.—The termination 

18 shall take effect on the date determined by the 

19 Secretary. 

20 (2) EXCEPTION.—If a producer entitled to an 

21 agriculture risk coverage payment or adverse market 

22 payment dies, becomes incompetent, or is otherwise 

23 unable to receive the payment, the Secretary shall 

24 make the payment, in accordance with rules issued 

25 by the Secretary. 


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1 (c) REPORTS.— 

2 (1) ACREAGE REPORTS.—As a condition on the 

3 receipt of any benefits under this subtitle or subtitle 

4 B, the Secretary shall require producers on a farm 

5 to submit to the Secretary annual acreage reports 

6 with respect to all cropland on the farm. 

7 (2) PRODUCTION REPORTS.—As a condition on 

8 the receipt of any benefits under section 1108, the 

9 Secretary shall require producers on a farm to sub10 mit to the Secretary annual production reports with 

11 respect to all covered commodities produced on the 

12 farm. 

13 (3) PENALTIES.—No penalty with respect to 

14 benefits under this subtitle or subtitle B shall be as15 sessed against the producers on a farm for an inac16 curate acreage or production report unless the pro17 ducers on the farm knowingly and willfully falsified 

18 the acreage or production report. 

19 (4) DATA REPORTING.—To the maximum ex20 tent practicable, the Secretary shall use data re21 ported by the producer pursuant to requirements 

22 under the Federal Crop Insurance Act (7 U.S.C. 

23 1501 et seq.) to meet the obligations described in 

24 paragraphs (1) and (2), without additional submis25 sions to the Department. 


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1 (d) TENANTS AND SHARECROPPERS.—In carrying 

2 out this subtitle, the Secretary shall provide adequate safe3 guards to protect the interests of tenants and share4 croppers. 

5 (e) SHARING OF PAYMENTS.—The Secretary shall 

6 provide for the sharing of adverse market payments and 

7 agriculture risk coverage payments among the producers 

8 on a farm on a fair and equitable basis. 

9 SEC. 1110. PERIOD OF EFFECTIVENESS. 

10 Sections 1104 through 1109 shall be effective begin11 ning with the 2014 crop year of each covered commodity 

12 through the 2018 crop year. 

13 Subtitle B—Marketing Assistance 

14 Loans and Loan Deficiency Pay15 ments 

16 SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 

17 ASSISTANCE LOANS FOR LOAN COMMOD18 ITIES. 

19 (a) DEFINITION OF LOAN COMMODITY.—In this sub20 title, the term ‘‘loan commodity’’ means wheat, corn, grain 

21 sorghum, barley, oats, upland cotton, extra long staple 

22 cotton, long grain rice, medium grain rice, peanuts, soy23 beans, other oilseeds, graded wool, nongraded wool, mo24 hair, honey, dry peas, lentils, small chickpeas, and large 

25 chickpeas. 


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1 (b) NONRECOURSE LOANS AVAILABLE.— 

2 (1) IN GENERAL.—For each of the 2014 

3 through 2018 crops of each loan commodity, the 

4 Secretary shall make available to producers on a 

5 farm nonrecourse marketing assistance loans for 

6 loan commodities produced on the farm. 

7 (2) TERMS AND CONDITIONS.—The marketing 

8 assistance loans shall be made under terms and con9 ditions that are prescribed by the Secretary and at 

10 the loan rate established under section 1202 for the 

11 loan commodity. 

12 (c) ELIGIBLE PRODUCTION.—The producers on a 

13 farm shall be eligible for a marketing assistance loan 

14 under subsection (b) for any quantity of a loan commodity 

15 produced on the farm. 

16 (d) COMPLIANCE WITH CONSERVATION AND WET17 LANDS REQUIREMENTS.— 

18 (1) REQUIREMENTS.—Before the producers on 

19 a farm may receive a marketing assistance loan or 

20 any other payment or benefit under this subtitle, the 

21 producers shall agree, for the crop year for which 

22 the payments are made and in exchange for the pay23 ments— 

24 (A) to comply with applicable conservation 

25 requirements under subtitle B of title XII of 


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1 the Food Security Act of 1985 (16 U.S.C. 3811 

2 et seq.); 

3 (B) to comply with applicable wetland pro4 tection requirements under subtitle C of title 

5 XII of that Act (16 U.S.C. 3821 et seq.); 

6 (C) to use the land on the farm for an ag7 ricultural or conserving use in a quantity equal 

8 to the attributable eligible acres of the farm, 

9 and not for a nonagricultural commercial, in10 dustrial, or residential use, as determined by 

11 the Secretary; and 

12 (D) to effectively control noxious weeds 

13 and otherwise maintain the land in accordance 

14 with sound agricultural practices, as determined 

15 by the Secretary, if the agricultural or con16 serving use involves the noncultivation of any 

17 portion of the land referred to in subparagraph 

18 (C). 

19 (2) COMPLIANCE.—The Secretary may issue 

20 such rules as the Secretary considers necessary to 

21 ensure producer compliance with paragraph (1). 

22 (3) MODIFICATION.—At the request of a trans23 feree or owner, the Secretary may modify the re24 quirements of this subsection if the modifications 


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1 are consistent with the purposes of this subsection, 

2 as determined by the Secretary. 

3 (e) SPECIAL RULES FOR PEANUTS.— 

4 (1) IN GENERAL.—This subsection shall apply 

5 only to producers of peanuts. 

6 (2) OPTIONS FOR OBTAINING LOAN.—A mar7 keting assistance loan under this section, and loan 

8 deficiency payments under section 1205, may be ob9 tained at the option of the producers on a farm 

10 through— 

11 (A) a designated marketing association or 

12 marketing cooperative of producers that is ap13 proved by the Secretary; or 

14 (B) the Farm Service Agency. 

15 (3) STORAGE OF LOAN PEANUTS.—As a condi16 tion on the approval by the Secretary of an indi17 vidual or entity to provide storage for peanuts for 

18 which a marketing assistance loan is made under 

19 this section, the individual or entity shall agree— 

20 (A) to provide the storage on a nondiscrim21 inatory basis; and 

22 (B) to comply with such additional require23 ments as the Secretary considers appropriate to 

24 accomplish the purposes of this section and proVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 mote fairness in the administration of the bene2 fits of this section. 

3 (4) STORAGE, HANDLING, AND ASSOCIATED

4 COSTS.— 

5 (A) IN GENERAL.—To ensure proper stor6 age of peanuts for which a loan is made under 

7 this section, the Secretary shall pay handling 

8 and other associated costs (other than storage 

9 costs) incurred at the time at which the peanuts 

10 are placed under loan, as determined by the 

11 Secretary. 

12 (B) REDEMPTION AND FORFEITURE.—The 

13 Secretary shall— 

14 (i) require the repayment of handling 

15 and other associated costs paid under sub16 paragraph (A) for all peanuts pledged as 

17 collateral for a loan that is redeemed under 

18 this section; and 

19 (ii) pay storage, handling, and other 

20 associated costs for all peanuts pledged as 

21 collateral that are forfeited under this sec22 tion. 

23 (5) MARKETING.—A marketing association or 

24 cooperative may market peanuts for which a loan is 

25 made under this section in any manner that conVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 forms to consumer needs, including the separation of 

2 peanuts by type and quality. 

3 (6) REIMBURSABLE AGREEMENTS AND PAY4 MENT OF ADMINISTRATIVE EXPENSES.—The Sec5 retary may implement any reimbursable agreements 

6 or provide for the payment of administrative ex7 penses under this subsection only in a manner that 

8 is consistent with those activities in regard to other 

9 loan commodities. 

10 SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 

11 ASSISTANCE LOANS. 

12 (a) IN GENERAL.—For purposes of each of the 2014 

13 through 2018 crop years, the loan rate for a marketing 

14 assistance loan under section 1201 for a loan commodity 

15 shall be equal to the following: 

16 (1) In the case of wheat, $2.94 per bushel. 

17 (2) In the case of corn, $1.95 per bushel. 

18 (3) In the case of grain sorghum, $1.95 per 

19 bushel. 

20 (4) In the case of barley, $1.95 per bushel. 

21 (5) In the case of oats, $1.39 per bushel. 

22 (6) In the case of base quality of upland cotton, 

23 for the 2014 and each subsequent crop year, the 

24 simple average of the adjusted prevailing world price 

25 for the 2 immediately preceding marketing years, as 


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1 determined by the Secretary and announced October 

2 1 preceding the next domestic plantings, but in no 

3 case less than $0.45 per pound or more than $0.52 

4 per pound. 

5 (7) In the case of extra long staple cotton, 

6 $0.7977 per pound. 

7 (8) In the case of long grain rice, $6.50 per 

8 hundredweight. 

9 (9) In the case of medium grain rice, $6.50 per 

10 hundredweight. 

11 (10) In the case of soybeans, $5.00 per bushel. 

12 (11) In the case of other oilseeds, $10.09 per 

13 hundredweight for each of the following kinds of oil14 seeds: 

15 (A) Sunflower seed. 

16 (B) Rapeseed. 

17 (C) Canola. 

18 (D) Safflower. 

19 (E) Flaxseed. 

20 (F) Mustard seed. 

21 (G) Crambe. 

22 (H) Sesame seed. 

23 (I) Other oilseeds designated by the Sec24 retary. 


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1 (12) In the case of dry peas, $5.40 per hun2 dredweight. 

3 (13) In the case of lentils, $11.28 per hundred4 weight. 

5 (14) In the case of small chickpeas, $7.43 per 

6 hundredweight. 

7 (15) In the case of large chickpeas, $11.28 per 

8 hundredweight. 

9 (16) In the case of graded wool, $1.15 per 

10 pound. 

11 (17) In the case of nongraded wool, $0.40 per 

12 pound. 

13 (18) In the case of mohair, $4.20 per pound. 

14 (19) In the case of honey, $0.69 per pound. 

15 (20) In the case of peanuts, $355 per ton. 

16 (b) SINGLE COUNTY LOAN RATE FOR OTHER OIL17 SEEDS.—The Secretary shall establish a single loan rate 

18 in each county for each kind of other oilseeds described 

19 in subsection (a)(11). 

20 SEC. 1203. TERM OF LOANS. 

21 (a) TERM OF LOAN.—In the case of each loan com22 modity, a marketing assistance loan under section 1201 

23 shall have a term of 9 months beginning on the first day 

24 of the first month after the month in which the loan is 

25 made. 


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1 (b) EXTENSIONS PROHIBITED.—The Secretary may 

2 not extend the term of a marketing assistance loan for 

3 any loan commodity. 

4 SEC. 1204. REPAYMENT OF LOANS. 

5 (a) GENERAL RULE.—The Secretary shall permit the 

6 producers on a farm to repay a marketing assistance loan 

7 under section 1201 for a loan commodity (other than up8 land cotton, long grain rice, medium grain rice, extra long 

9 staple cotton, peanuts and confectionery and each other 

10 kind of sunflower seed (other than oil sunflower seed)) at 

11 a rate that is the lesser of— 

12 (1) the loan rate established for the commodity 

13 under section 1202, plus interest (determined in ac14 cordance with section 163 of the Federal Agriculture 

15 Improvement and Reform Act of 1996 (7 U.S.C. 

16 7283)); 

17 (2) a rate (as determined by the Secretary) 

18 that— 

19 (A) is calculated based on average market 

20 prices for the loan commodity during the pre21 ceding 30-day period; and 

22 (B) will minimize discrepancies in mar23 keting loan benefits across State boundaries 

24 and across county boundaries; or 


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1 (3) a rate that the Secretary may develop using 

2 alternative methods for calculating a repayment rate 

3 for a loan commodity that the Secretary determines 

4 will— 

5 (A) minimize potential loan forfeitures; 

6 (B) minimize the accumulation of stocks of 

7 the commodity by the Federal Government; 

8 (C) minimize the cost incurred by the Fed9 eral Government in storing the commodity; 

10 (D) allow the commodity produced in the 

11 United States to be marketed freely and com12 petitively, both domestically and internationally; 

13 and 

14 (E) minimize discrepancies in marketing 

15 loan benefits across State boundaries and 

16 across county boundaries. 

17 (b) REPAYMENT RATES FOR UPLAND COTTON, LONG

18 GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 

19 shall permit producers to repay a marketing assistance 

20 loan under section 1201 for upland cotton, long grain rice, 

21 and medium grain rice at a rate that is the lesser of— 

22 (1) the loan rate established for the commodity 

23 under section 1202, plus interest (determined in ac24 cordance with section 163 of the Federal Agriculture 


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1 Improvement and Reform Act of 1996 (7 U.S.C. 

2 7283)); or 

3 (2) the prevailing world market price for the 

4 commodity, as determined and adjusted by the Sec5 retary in accordance with this section. 

6 (c) REPAYMENT RATES FOR EXTRA LONG STAPLE

7 COTTON.—Repayment of a marketing assistance loan for 

8 extra long staple cotton shall be at the loan rate estab9 lished for the commodity under section 1202, plus interest 

10 (determined in accordance with section 163 of the Federal 

11 Agriculture Improvement and Reform Act of 1996 (7 

12 U.S.C. 7283)). 

13 (d) PREVAILING WORLD MARKET PRICE.—For pur14 poses of this section, the Secretary shall prescribe by regu15 lation— 

16 (1) a formula to determine the prevailing world 

17 market price for each of upland cotton, long grain 

18 rice, and medium grain rice; and 

19 (2) a mechanism by which the Secretary shall 

20 announce periodically those prevailing world market 

21 prices. 

22 (e) ADJUSTMENT OF PREVAILING WORLD MARKET

23 PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND

24 MEDIUM GRAIN RICE.— 


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1 (1) RICE.—The prevailing world market price 

2 for long grain rice and medium grain rice deter3 mined under subsection (d) shall be adjusted to 

4 United States quality and location. 

5 (2) COTTON.—The prevailing world market 

6 price for upland cotton determined under subsection 

7 (d)— 

8 (A) shall be adjusted to United States 

9 quality and location, with the adjustment to in10 clude— 

11 (i) a reduction equal to any United 

12 States Premium Factor for upland cotton 

13 of a quality higher than Middling (M) 

13 14 ⁄32-inch; and 

15 (ii) the average costs to market the 

16 commodity, including average transpor17 tation costs, as determined by the Sec18 retary; and 

19 (B) may be further adjusted, during the 

20 period beginning on the date of enactment of 

21 this Act and ending on July 31, 2019, if the 

22 Secretary determines the adjustment is nec23 essary— 

24 (i) to minimize potential loan forfeit25 ures; 


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1 (ii) to minimize the accumulation of 

2 stocks of upland cotton by the Federal 

3 Government; 

4 (iii) to ensure that upland cotton pro5 duced in the United States can be mar6 keted freely and competitively, both domes7 tically and internationally; and 

8 (iv) to ensure an appropriate transi9 tion between current-crop and forward10 crop price quotations, except that the Sec11 retary may use forward-crop price 

12 quotations prior to July 31 of a marketing 

13 year only if— 

14 (I) there are insufficient current15 crop price quotations; and 

16 (II) the forward-crop price 

17 quotation is the lowest such quotation 

18 available. 

19 (3) GUIDELINES FOR ADDITIONAL ADJUST20 MENTS.—In making adjustments under this sub21 section, the Secretary shall establish a mechanism 

22 for determining and announcing the adjustments in 

23 order to avoid undue disruption in the United States 

24 market. 


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1 (f) REPAYMENT RATES FOR CONFECTIONERY AND

2 OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 

3 shall permit the producers on a farm to repay a marketing 

4 assistance loan under section 1201 for confectionery and 

5 each other kind of sunflower seed (other than oil sunflower 

6 seed) at a rate that is the lesser of— 

7 (1) the loan rate established for the commodity 

8 under section 1202, plus interest (determined in ac9 cordance with section 163 of the Federal Agriculture 

10 Improvement and Reform Act of 1996 (7 U.S.C. 

11 7283)); or 

12 (2) the repayment rate established for oil sun13 flower seed. 

14 (g) PAYMENT OF COTTON STORAGE COSTS.—Effec15 tive for each of the 2014 through 2018 crop years, the 

16 Secretary shall make cotton storage payments available in 

17 the same manner, and at the same rates as the Secretary 

18 provided storage payments for the 2006 crop of cotton, 

19 except that the rates shall be reduced by 20 percent. 

20 (h) REPAYMENT RATE FOR PEANUTS.—The Sec21 retary shall permit producers on a farm to repay a mar22 keting assistance loan for peanuts under subsection (a) at 

23 a rate that is the lesser of— 

24 (1) the loan rate established for peanuts under 

25 subsection (b), plus interest (determined in accordVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 ance with section 163 of the Federal Agriculture Im2 provement and Reform Act of 1996 (7 U.S.C. 

3 7283)); or 

4 (2) a rate that the Secretary determines will— 

5 (A) minimize potential loan forfeitures; 

6 (B) minimize the accumulation of stocks of 

7 peanuts by the Federal Government; 

8 (C) minimize the cost incurred by the Fed9 eral Government in storing peanuts; and 

10 (D) allow peanuts produced in the United 

11 States to be marketed freely and competitively, 

12 both domestically and internationally. 

13 (i) AUTHORITY TO TEMPORARILY ADJUST REPAY14 MENT RATES.— 

15 (1) ADJUSTMENT AUTHORITY.—In the event of 

16 a severe disruption to marketing, transportation, or 

17 related infrastructure, the Secretary may modify the 

18 repayment rate otherwise applicable under this sec19 tion for marketing assistance loans under section 

20 1201 for a loan commodity. 

21 (2) DURATION.—Any adjustment made under 

22 paragraph (1) in the repayment rate for marketing 

23 assistance loans for a loan commodity shall be in ef24 fect on a short-term and temporary basis, as deter25 mined by the Secretary. 


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1 SEC. 1205. LOAN DEFICIENCY PAYMENTS. 

2 (a) AVAILABILITY OF LOAN DEFICIENCY PAY3 MENTS.— 

4 (1) IN GENERAL.—Except as provided in sub5 section (d), the Secretary may make loan deficiency 

6 payments available to producers on a farm that, al7 though eligible to obtain a marketing assistance loan 

8 under section 1201 with respect to a loan com9 modity, agree to forgo obtaining the loan for the 

10 commodity in return for loan deficiency payments 

11 under this section. 

12 (2) UNSHORN PELTS, HAY, AND SILAGE.— 

13 (A) MARKETING ASSISTANCE LOANS.— 

14 Subject to subparagraph (B), nongraded wool 

15 in the form of unshorn pelts and hay and silage 

16 derived from a loan commodity are not eligible 

17 for a marketing assistance loan under section 

18 1201. 

19 (B) LOAN DEFICIENCY PAYMENT.—Effec20 tive for the 2014 through 2018 crop years, the 

21 Secretary may make loan deficiency payments 

22 available under this section to producers on a 

23 farm that produce unshorn pelts or hay and si24 lage derived from a loan commodity. 

25 (b) COMPUTATION.—A loan deficiency payment for a 

26 loan commodity or commodity referred to in subsection 


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1 (a)(2) shall be equal to the product obtained by multi2 plying— 

3 (1) the payment rate determined under sub4 section (c) for the commodity; by 

5 (2) the quantity of the commodity produced by 

6 the eligible producers, excluding any quantity for 

7 which the producers obtain a marketing assistance 

8 loan under section 1201. 

9 (c) PAYMENT RATE.— 

10 (1) IN GENERAL.—In the case of a loan com11 modity, the payment rate shall be the amount by 

12 which— 

13 (A) the loan rate established under section 

14 1202 for the loan commodity; exceeds 

15 (B) the rate at which a marketing assist16 ance loan for the loan commodity may be repaid 

17 under section 1204. 

18 (2) UNSHORN PELTS.—In the case of unshorn 

19 pelts, the payment rate shall be the amount by 

20 which— 

21 (A) the loan rate established under section 

22 1202 for ungraded wool; exceeds 

23 (B) the rate at which a marketing assist24 ance loan for ungraded wool may be repaid 

25 under section 1204. 


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1 (3) HAY AND SILAGE.—In the case of hay or si2 lage derived from a loan commodity, the payment 

3 rate shall be the amount by which— 

4 (A) the loan rate established under section 

5 1202 for the loan commodity from which the 

6 hay or silage is derived; exceeds 

7 (B) the rate at which a marketing assist8 ance loan for the loan commodity may be repaid 

9 under section 1204. 

10 (d) EXCEPTION FOR EXTRA LONG STAPLE COT11 TON.—This section shall not apply with respect to extra 

12 long staple cotton. 

13 (e) EFFECTIVE DATE FOR PAYMENT RATE DETER14 MINATION.—The Secretary shall determine the amount of 

15 the loan deficiency payment to be made under this section 

16 to the producers on a farm with respect to a quantity of 

17 a loan commodity or commodity referred to in subsection 

18 (a)(2) using the payment rate in effect under subsection 

19 (c) as of the date the producers request the payment. 

20 SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY21 MENTS FOR GRAZED ACREAGE. 

22 (a) ELIGIBLE PRODUCERS.— 

23 (1) IN GENERAL.—Effective for the 2014 

24 through 2018 crop years, in the case of a producer 

25 that would be eligible for a loan deficiency payment 


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1 under section 1205 for wheat, barley, or oats, but 

2 that elects to use acreage planted to the wheat, bar3 ley, or oats for the grazing of livestock, the Sec4 retary shall make a payment to the producer under 

5 this section if the producer enters into an agreement 

6 with the Secretary to forgo any other harvesting of 

7 the wheat, barley, or oats on that acreage. 

8 (2) GRAZING OF TRITICALE ACREAGE.—Effec9 tive for the 2014 through 2018 crop years, with re10 spect to a producer on a farm that uses acreage 

11 planted to triticale for the grazing of livestock, the 

12 Secretary shall make a payment to the producer 

13 under this section if the producer enters into an 

14 agreement with the Secretary to forgo any other 

15 harvesting of triticale on that acreage. 

16 (b) PAYMENT AMOUNT.— 

17 (1) IN GENERAL.—The amount of a payment 

18 made under this section to a producer on a farm de19 scribed in subsection (a)(1) shall be equal to the 

20 amount determined by multiplying— 

21 (A) the loan deficiency payment rate deter22 mined under section 1205(c) in effect, as of the 

23 date of the agreement, for the county in which 

24 the farm is located; by 


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1 (B) the payment quantity determined by 

2 multiplying— 

3 (i) the quantity of the grazed acreage 

4 on the farm with respect to which the pro5 ducer elects to forgo harvesting of wheat, 

6 barley, or oats; and 

7 (ii)(I) the yield in effect for the cal8 culation of agriculture risk coverage pay9 ments under subtitle A with respect to that 

10 loan commodity on the farm; or 

11 (II) in the case of a farm without a 

12 payment yield for that loan commodity, an 

13 appropriate yield established by the Sec14 retary. 

15 (2) GRAZING OF TRITICALE ACREAGE.—The 

16 amount of a payment made under this section to a 

17 producer on a farm described in subsection (a)(2) 

18 shall be equal to the amount determined by multi19 plying— 

20 (A) the loan deficiency payment rate deter21 mined under section 1205(c) in effect for 

22 wheat, as of the date of the agreement, for the 

23 county in which the farm is located; by 

24 (B) the payment quantity determined by 

25 multiplying— 


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1 (i) the quantity of the grazed acreage 

2 on the farm with respect to which the pro3 ducer elects to forgo harvesting of triticale; 

4 and 

5 (ii)(I) the yield in effect for the cal6 culation of agriculture risk coverage pay7 ments under subtitle A with respect to 

8 wheat on the farm; or 

9 (II) in the case of a farm without a 

10 payment yield for wheat, an appropriate 

11 yield established by the Secretary in a 

12 manner consistent with section 1102 of the 

13 Food, Conservation, and Energy Act of 

14 2008 (7 U.S.C. 8712). 

15 (c) TIME, MANNER, AND AVAILABILITY OF PAY16 MENT.— 

17 (1) TIME AND MANNER.—A payment under this 

18 section shall be made at the same time and in the 

19 same manner as loan deficiency payments are made 

20 under section 1205. 

21 (2) AVAILABILITY.— 

22 (A) IN GENERAL.—The Secretary shall es23 tablish an availability period for the payments 

24 authorized by this section. 


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1 (B) CERTAIN COMMODITIES.—In the case 

2 of wheat, barley, and oats, the availability pe3 riod shall be consistent with the availability pe4 riod for the commodity established by the Sec5 retary for marketing assistance loans author6 ized by this subtitle. 

7 (d) PROHIBITION ON CROP INSURANCE INDEMNITY

8 OR NONINSURED CROP ASSISTANCE.—A 2014 through 

9 2018 crop of wheat, barley, oats, or triticale planted on 

10 acreage that a producer elects, in the agreement required 

11 by subsection (a), to use for the grazing of livestock in 

12 lieu of any other harvesting of the crop shall not be eligible 

13 for an indemnity under a policy or plan of insurance au14 thorized under the Federal Crop Insurance Act (7 U.S.C. 

15 1501 et seq.) or noninsured crop assistance under section 

16 196 of the Federal Agriculture Improvement and Reform 

17 Act of 1996 (7 U.S.C. 7333). 

18 SEC. 1207. ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 

19 OF UPLAND COTTON. 

20 (a) IN GENERAL.—Subject to subsection (b), the Sec21 retary shall, on a monthly basis, make economic adjust22 ment assistance available to domestic users of upland cot23 ton in the form of payments for all documented use of 

24 that upland cotton during the previous monthly period re25 gardless of the origin of the upland cotton. 


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1 (b) VALUE OF ASSISTANCE.—Effective beginning on 

2 August 1, 2012, the value of the assistance provided under 

3 subsection (a) shall be 3 cents per pound. 

4 (c) ALLOWABLE PURPOSES.—Economic adjustment 

5 assistance under this section shall be made available only 

6 to domestic users of upland cotton that certify that the 

7 assistance shall be used only to acquire, construct, install, 

8 modernize, develop, convert, or expand land, plant, build9 ings, equipment, facilities, or machinery. 

10 (d) REVIEW OR AUDIT.—The Secretary may conduct 

11 such review or audit of the records of a domestic user 

12 under this subsection as the Secretary determines nec13 essary to carry out this subsection. 

14 (e) IMPROPER USE OF ASSISTANCE.—If the Sec15 retary determines, after a review or audit of the records 

16 of the domestic user, that economic adjustment assistance 

17 under this subsection was not used for the purposes speci18 fied in subsection (c), the domestic user shall be— 

19 (1) liable for the repayment of the assistance to 

20 the Secretary, plus interest, as determined by the 

21 Secretary; and 

22 (2) ineligible to receive assistance under this 

23 subsection for a period of 1 year following the deter24 mination of the Secretary. 


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1 SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 

2 LONG STAPLE COTTON. 

3 (a) COMPETITIVENESS PROGRAM.—Notwithstanding 

4 any other provision of law, during the period beginning 

5 on the date of enactment of this Act through July 31, 

6 2019, the Secretary shall carry out a program— 

7 (1) to maintain and expand the domestic use of 

8 extra long staple cotton produced in the United 

9 States; 

10 (2) to increase exports of extra long staple cot11 ton produced in the United States; and 

12 (3) to ensure that extra long staple cotton pro13 duced in the United States remains competitive in 

14 world markets. 

15 (b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 

16 the program, the Secretary shall make payments available 

17 under this section whenever— 

18 (1) for a consecutive 4-week period, the world 

19 market price for the lowest priced competing growth 

20 of extra long staple cotton (adjusted to United 

21 States quality and location and for other factors af22 fecting the competitiveness of such cotton), as deter23 mined by the Secretary, is below the prevailing 

24 United States price for a competing growth of extra 

25 long staple cotton; and 


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1 (2) the lowest priced competing growth of extra 

2 long staple cotton (adjusted to United States quality 

3 and location and for other factors affecting the com4 petitiveness of such cotton), as determined by the 

5 Secretary, is less than 134 percent of the loan rate 

6 for extra long staple cotton. 

7 (c) ELIGIBLE RECIPIENTS.—The Secretary shall 

8 make payments available under this section to domestic 

9 users of extra long staple cotton produced in the United 

10 States and exporters of extra long staple cotton produced 

11 in the United States that enter into an agreement with 

12 the Commodity Credit Corporation to participate in the 

13 program under this section. 

14 (d) PAYMENT AMOUNT.—Payments under this sec15 tion shall be based on the amount of the difference in the 

16 prices referred to in subsection (b)(1) during the fourth 

17 week of the consecutive 4-week period multiplied by the 

18 amount of documented purchases by domestic users and 

19 sales for export by exporters made in the week following 

20 such a consecutive 4-week period. 

21 SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 

22 MOISTURE FEED GRAINS AND SEED COTTON. 

23 (a) HIGH MOISTURE FEED GRAINS.— 

24 (1) DEFINITION OF HIGH MOISTURE STATE.— 

25 In this subsection, the term ‘‘high moisture state’’ 


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1 means corn or grain sorghum having a moisture con2 tent in excess of Commodity Credit Corporation 

3 standards for marketing assistance loans made by 

4 the Secretary under section 1201. 

5 (2) RECOURSE LOANS AVAILABLE.—For each of 

6 the 2014 through 2018 crops of corn and grain sor7 ghum, the Secretary shall make available recourse 

8 loans, as determined by the Secretary, to producers 

9 on a farm that— 

10 (A) normally harvest all or a portion of 

11 their crop of corn or grain sorghum in a high 

12 moisture state; 

13 (B) present— 

14 (i) certified scale tickets from an in15 spected, certified commercial scale, includ16 ing a licensed warehouse, feedlot, feed mill, 

17 distillery, or other similar entity approved 

18 by the Secretary, pursuant to regulations 

19 issued by the Secretary; or 

20 (ii) field or other physical measure21 ments of the standing or stored crop in re22 gions of the United States, as determined 

23 by the Secretary, that do not have certified 

24 commercial scales from which certified 


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1 scale tickets may be obtained within rea2 sonable proximity of harvest operation; 

3 (C) certify that the producers on the farm 

4 were the owners of the feed grain at the time 

5 of delivery to, and that the quantity to be 

6 placed under loan under this subsection was in 

7 fact harvested on the farm and delivered to, a 

8 feedlot, feed mill, or commercial or on-farm 

9 high-moisture storage facility, or to a facility 

10 maintained by the users of corn and grain sor11 ghum in a high moisture state; and 

12 (D) comply with deadlines established by 

13 the Secretary for harvesting the corn or grain 

14 sorghum and submit applications for loans 

15 under this subsection within deadlines estab16 lished by the Secretary. 

17 (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 

18 A loan under this subsection shall be made on a 

19 quantity of corn or grain sorghum of the same crop 

20 acquired by the producer equivalent to a quantity 

21 determined by multiplying— 

22 (A) the acreage of the corn or grain sor23 ghum in a high moisture state harvested on the 

24 farm of the producer; by 


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1 (B) the lower of the actual average yield 

2 used to make payments under subtitle A or the 

3 actual yield on a field, as determined by the 

4 Secretary, that is similar to the field from 

5 which the corn or grain sorghum was obtained. 

6 (b) RECOURSE LOANS AVAILABLE FOR SEED COT7 TON.—For each of the 2014 through 2018 crops of upland 

8 cotton and extra long staple cotton, the Secretary shall 

9 make available recourse seed cotton loans, as determined 

10 by the Secretary, on any production. 

11 (c) REPAYMENT RATES.—Repayment of a recourse 

12 loan made under this section shall be at the loan rate es13 tablished for the commodity by the Secretary, plus interest 

14 (determined in accordance with section 163 of the Federal 

15 Agriculture Improvement and Reform Act of 1996 (7 

16 U.S.C. 7283)). 

17 SEC. 1210. ADJUSTMENTS OF LOANS. 

18 (a) ADJUSTMENT AUTHORITY.—Subject to sub19 section (e), the Secretary may make appropriate adjust20 ments in the loan rates for any loan commodity (other 

21 than cotton) for differences in grade, type, quality, loca22 tion, and other factors. 

23 (b) MANNER OF ADJUSTMENT.—The adjustments 

24 under subsection (a) shall, to the maximum extent prac25 ticable, be made in such a manner that the average loan 


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1 level for the commodity will, on the basis of the anticipated 

2 incidence of the factors, be equal to the level of support 

3 determined in accordance with this subtitle and subtitles 

4 C through E. 

5 (c) ADJUSTMENT ON COUNTY BASIS.— 

6 (1) IN GENERAL.—The Secretary may establish 

7 loan rates for a crop for producers in individual 

8 counties in a manner that results in the lowest loan 

9 rate being 95 percent of the national average loan 

10 rate, if those loan rates do not result in an increase 

11 in outlays. 

12 (2) PROHIBITION.—Adjustments under this 

13 subsection shall not result in an increase in the na14 tional average loan rate for any year. 

15 (d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 

16 (1) IN GENERAL.—The Secretary may make 

17 appropriate adjustments in the loan rate for cotton 

18 for differences in quality factors. 

19 (2) REVISIONS TO QUALITY ADJUSTMENTS FOR

20 UPLAND COTTON.— 

21 (A) IN GENERAL.—Not later than 180 

22 days after the date of enactment of this Act, 

23 the Secretary shall implement revisions in the 

24 administration of the marketing assistance loan 

25 program for upland cotton to more accurately 


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1 and efficiently reflect market values for upland 

2 cotton. 

3 (B) MANDATORY REVISIONS.—Revisions 

4 under subparagraph (A) shall include— 

5 (i) the elimination of warehouse loca6 tion differentials; 

7 (ii) the establishment of differentials 

8 for the various quality factors and staple 

9 lengths of cotton based on a 3-year, 

10 weighted moving average of the weighted 

11 designated spot market regions, as deter12 mined by regional production; 

13 (iii) the elimination of any artificial 

14 split in the premium or discount between 

15 upland cotton with a 32 or 33 staple 

16 length due to micronaire; and 

17 (iv) a mechanism to ensure that no 

18 premium or discount is established that ex19 ceeds the premium or discount associated 

20 with a leaf grade that is 1 better than the 

21 applicable color grade. 

22 (C) DISCRETIONARY REVISIONS.—Revi23 sions under subparagraph (A) may include— 

24 (i) the use of non-spot market price 

25 data, in addition to spot market price data, 


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1 that would enhance the accuracy of the 

2 price information used in determining 

3 quality adjustments under this subsection; 

4 (ii) adjustments in the premiums or 

5 discounts associated with upland cotton 

6 with a staple length of 33 or above due to 

7 micronaire with the goal of eliminating any 

8 unnecessary artificial splits in the calcula9 tions of the premiums or discounts; and 

10 (iii) such other adjustments as the 

11 Secretary determines appropriate, after 

12 consultations conducted in accordance with 

13 paragraph (3). 

14 (3) CONSULTATION WITH PRIVATE SECTOR.— 

15 (A) PRIOR TO REVISION.—In making ad16 justments to the loan rate for cotton (including 

17 any review of the adjustments) as provided in 

18 this subsection, the Secretary shall consult with 

19 representatives of the United States cotton in20 dustry. 

21 (B) INAPPLICABILITY OF FEDERAL ADVI22 SORY COMMITTEE ACT.—The Federal Advisory 

23 Committee Act (5 U.S.C. App.) shall not apply 

24 to consultations under this subsection. 


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1 (4) REVIEW OF ADJUSTMENTS.—The Secretary 

2 may review the operation of the upland cotton qual3 ity adjustments implemented pursuant to this sub4 section and may make further revisions to the ad5 ministration of the loan program for upland cotton, 

6 by— 

7 (A) revoking or revising any actions taken 

8 under paragraph (2)(B); or 

9 (B) revoking or revising any actions taken 

10 or authorized to be taken under paragraph 

11 (2)(C). 

12 (e) RICE.—The Secretary shall not make adjust13 ments in the loan rates for long grain rice and medium 

14 grain rice, except for differences in grade and quality (in15 cluding milling yields). 

16 Subtitle C—Sugar 

17 SEC. 1301. SUGAR PROGRAM. 

18 (a) CONTINUATION OF CURRENT PROGRAM AND

19 LOAN RATES.— 

20 (1) SUGARCANE.—Section 156(a)(5) of the 

21 Federal Agriculture Improvement and Reform Act of 

22 1996 (7 U.S.C. 7272(a)(5)) is amended by striking 

23 ‘‘the 2012 crop year’’ and inserting ‘‘each of the 

24 2014 through 2018 crop years’’. 


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1 (2) SUGAR BEETS.—Section 156(b)(2) of the 

2 Federal Agriculture Improvement and Reform Act of 

3 1996 (7 U.S.C. 7272(b)(2)) is amended by striking 

4 ‘‘2012’’ and inserting ‘‘2018’’. 

5 (3) EFFECTIVE PERIOD.—Section 156(i) of the 

6 Federal Agriculture Improvement and Reform Act of 

7 1996 (7 U.S.C. 7272(i)) is amended by striking 

8 ‘‘2012’’ and inserting ‘‘2018’’. 

9 (b) FLEXIBLE MARKETING ALLOTMENTS FOR

10 SUGAR.— 

11 (1) SUGAR ESTIMATES.—Section 359b(a)(1) of 

12 the Agricultural Adjustment Act of 1938 (7 U.S.C. 

13 1359bb(a)(1)) is amended by striking ‘‘2012’’ and 

14 inserting ‘‘2018’’. 

15 (2) EFFECTIVE PERIOD.—Section 359l(a) of 

16 the Agricultural Adjustment Act of 1938 (7 U.S.C. 

17 1359ll(a)) is amended by striking ‘‘2012’’ and in18 serting ‘‘2018’’. 

19 Subtitle D—Dairy 

20 PART I—DAIRY PRODUCTION MARGIN PROTEC21 TION AND DAIRY MARKET STABILIZATION 

22 PROGRAMS 

23 SEC. 1401. DEFINITIONS. 

24 In this part: 


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1 (1) ACTUAL DAIRY PRODUCTION MARGIN.—The 

2 term ‘‘actual dairy production margin’’ means the 

3 difference between the all-milk price and the average 

4 feed cost, as calculated under section 1402. 

5 (2) ALL-MILK PRICE.—The term ‘‘all-milk 

6 price’’ means the average price received, per hun7 dredweight of milk, by dairy operations for all milk 

8 sold to plants and dealers in the United States, as 

9 determined by the Secretary. 

10 (3) ANNUAL PRODUCTION HISTORY.—The term 

11 ‘‘annual production history’’ means the production 

12 history determined for a participating dairy oper13 ation under section 1413(b) whenever the partici14 pating dairy operation purchases supplemental pro15 duction margin protection. 

16 (4) AVERAGE FEED COST.—The term ‘‘average 

17 feed cost’’ means the average cost of feed used by 

18 a dairy operation to produce a hundredweight of 

19 milk, determined under section 1402 using the sum 

20 of the following: 

21 (A) The product determined by multiplying 

22 1.0728 by the price of corn per bushel. 

23 (B) The product determined by multiplying 

24 0.00735 by the price of soybean meal per ton. 


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1 (C) The product determined by multiplying 

2 0.0137 by the price of alfalfa hay per ton. 

3 (5) BASIC PRODUCTION HISTORY.—The term 

4 ‘‘basic production history’’ means the production 

5 history determined for a participating dairy oper6 ation under section 1413(a) for provision of basic 

7 production margin protection. 

8 (6) CONSECUTIVE 2-MONTH PERIOD.—The term 

9 ‘‘consecutive 2-month period’’ refers to the 2-month 

10 period consisting of the months of January and Feb11 ruary, March and April, May and June, July and 

12 August, September and October, or November and 

13 December, respectively. 

14 (7) DAIRY OPERATION.— 

15 (A) IN GENERAL.—The term ‘‘dairy oper16 ation’’ means, as determined by the Secretary, 

17 1 or more dairy producers that produce and 

18 market milk as a single dairy operation in 

19 which each dairy producer— 

20 (i) shares in the pooling of resources 

21 and a common ownership structure; 

22 (ii) is at risk in the production of milk 

23 on the dairy operation; and 


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1 (iii) contributes land, labor, manage2 ment, equipment, or capital to the dairy 

3 operation. 

4 (B) ADDITIONAL OWNERSHIP STRUC5 TURES.—The Secretary shall determine addi6 tional ownership structures to be covered by the 

7 definition of dairy operation. 

8 (8) HANDLER.— 

9 (A) IN GENERAL.—The term ‘‘handler’’ 

10 means the initial individual or entity making 

11 payment to a dairy operation for milk produced 

12 in the United States and marketed for commer13 cial use. 

14 (B) PRODUCER-HANDLER.—The term in15 cludes a ‘‘producer-handler’’ when the producer 

16 satisfies the definition in subparagraph (A). 

17 (9) PARTICIPATING DAIRY OPERATION.—The 

18 term ‘‘participating dairy operation’’ means a dairy 

19 operation that— 

20 (A) signs up under section 1412 to partici21 pate in the production margin protection pro22 gram under subpart A; and 

23 (B) as a result, also participates in the sta24 bilization program under subpart B. 


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1 (10) PRODUCTION MARGIN PROTECTION PRO2 GRAM.—The term ‘‘production margin protection 

3 program’’ means the dairy production margin pro4 tection program required by subpart A. 

5 (11) SECRETARY.—The term ‘‘Secretary’’ 

6 means the Secretary of Agriculture. 

7 (12) STABILIZATION PROGRAM.—The term 

8 ‘‘stabilization program’’ means the dairy market sta9 bilization program required by subpart B for all par10 ticipating dairy operations. 

11 (13) STABILIZATION PROGRAM BASE.—The 

12 term ‘‘stabilization program base’’, with respect to a 

13 participating dairy operation, means the stabilization 

14 program base calculated for the participating dairy 

15 operation under section 1431(b). 

16 (14) UNITED STATES.—The term ‘‘United 

17 States’’, in a geographical sense, means the 50 

18 States, the District of Columbia, American Samoa, 

19 Guam, the Commonwealth of the Northern Mariana 

20 Islands, the Commonwealth of Puerto Rico, the Vir21 gin Islands of the United States, and any other ter22 ritory or possession of the United States. 


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1 SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC2 TUAL DAIRY PRODUCTION MARGINS. 

3 (a) CALCULATION OF AVERAGE FEED COST.—The 

4 Secretary shall calculate the national average feed cost for 

5 each month using the following data: 

6 (1) The price of corn for a month shall be the 

7 price received during that month by farmers in the 

8 United States for corn, as reported in the monthly 

9 Agricultural Prices report by the Secretary. 

10 (2) The price of soybean meal for a month shall 

11 be the central Illinois price for soybean meal, as re12 ported in the Market News–Monthly Soybean Meal 

13 Price Report by the Secretary. 

14 (3) The price of alfalfa hay for a month shall 

15 be the price received during that month by farmers 

16 in the United States for alfalfa hay, as reported in 

17 the monthly Agricultural Prices report by the Sec18 retary. 

19 (b) CALCULATION OF ACTUAL DAIRY PRODUCTION

20 MARGINS.— 

21 (1) PRODUCTION MARGIN PROTECTION PRO22 GRAM.—For use in the production margin protection 

23 program under subpart A, the Secretary shall cal24 culate the actual dairy production margin for each 

25 consecutive 2-month period by subtracting— 


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1 (A) the average feed cost for that consecu2 tive 2-month period, determined in accordance 

3 with subsection (a); from 

4 (B) the all-milk price for that consecutive 

5 2-month period. 

6 (2) STABILIZATION PROGRAM.—For use in the 

7 stabilization program under subpart B, the Sec8 retary shall calculate each month the actual dairy 

9 production margin for the preceding month by sub10 tracting— 

11 (A) the average feed cost for that pre12 ceding month, determined in accordance with 

13 subsection (a); from 

14 (B) the all-milk price for that preceding 

15 month. 

16 (3) TIME FOR CALCULATIONS.—The calcula17 tions required by paragraphs (1) and (2) shall be 

18 made as soon as practicable using the full month 

19 price of the applicable reference month. 

20 Subpart A—Dairy Production Margin Protection 

21 Program 

22 SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MAR23 GIN PROTECTION PROGRAM. 

24 Effective not later than 120 days after the effective 

25 date of this subtitle, the Secretary shall establish and adVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 minister a dairy production margin protection program 

2 under which participating dairy operations are paid— 

3 (1) basic production margin protection program 

4 payments under section 1414 when actual dairy pro5 duction margins are less than the threshold levels 

6 for such payments; and 

7 (2) supplemental production margin protection 

8 program payments under section 1415 if purchased 

9 by a participating dairy operation. 

10 SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRO11 DUCTION MARGIN PROTECTION PROGRAM. 

12 (a) ELIGIBILITY.—All dairy operations in the United 

13 States shall be eligible to participate in the production 

14 margin protection program, except that a participating 

15 dairy operation shall be required to register with the Sec16 retary before the participating dairy operation may re17 ceive— 

18 (1) basic production margin protection program 

19 payments under section 1414; and 

20 (2) if the participating dairy operation pur21 chases supplemental production margin protection 

22 under section 1415, supplemental production margin 

23 protection program payments under such section. 

24 (b) REGISTRATION PROCESS.— 


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1 (1) IN GENERAL.—The Secretary shall specify 

2 the manner and form by which a participating dairy 

3 operation may register to participate in the produc4 tion margin protection program. 

5 (2) TREATMENT OF MULTIPRODUCER DAIRY

6 OPERATIONS.—If a participating dairy operation is 

7 operated by more than 1 dairy producer, all of the 

8 dairy producers of the participating dairy operation 

9 shall be treated as a single dairy operation for pur10 poses of— 

11 (A) registration to receive basic production 

12 margin protection and election to purchase sup13 plemental production margin protection; 

14 (B) payment of the participation fee under 

15 subsection (d) and producer premiums under 

16 section 1415; and 

17 (C) participation in the stabilization pro18 gram under subtitle B. 

19 (3) TREATMENT OF PRODUCERS WITH MUL20 TIPLE DAIRY OPERATIONS.—If a dairy producer op21 erates 2 or more dairy operations, each dairy oper22 ation of the producer shall separately register to re23 ceive basic production margin protection and pur24 chase supplemental production margin protection 


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1 and only those dairy operations so registered shall 

2 be covered by the stabilization program. 

3 (c) TIME FOR REGISTRATION.— 

4 (1) EXISTING DAIRY OPERATIONS.—During the 

5 15-month period beginning on the date of the initi6 ation of the registration period for the production 

7 margin protection program, a dairy operation that is 

8 actively engaged as of such date may register with 

9 the Secretary— 

10 (A) to receive basic production margin pro11 tection; and 

12 (B) if the dairy operation elects, to pur13 chase supplemental production margin protec14 tion. 

15 (2) NEW ENTRANTS.—A dairy producer that 

16 has no existing interest in a dairy operation as of 

17 the date of the initiation of the registration period 

18 for the production margin protection program, but 

19 that, after such date, establishes a new dairy oper20 ation, may register with the Secretary during the 1- 

21 year period beginning on the date on which the dairy 

22 operation first markets milk commercially— 

23 (A) to receive basic production margin pro24 tection; and 


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1 (B) if the dairy operation elects, to pur2 chase supplemental production margin protec3 tion. 

4 (d) TRANSITION FROM MILC TO PRODUCTION MAR5 GIN PROTECTION.— 

6 (1) DEFINITION OF TRANSITION PERIOD.—In 

7 this subsection, the term ‘‘transition period’’ means 

8 the period during which the milk income loss pro9 gram established under section 1506 of the Food, 

10 Conservation, and Energy Act of 2008 (7 U.S.C. 

11 8773) and the production margin protection pro12 gram under this subtitle are both in existence. 

13 (2) NOTICE OF AVAILABILITY.—Not later than 

14 30 days after the date of enactment of this Act, the 

15 Secretary shall publish a notice in the Federal Reg16 ister to inform dairy operations of the availability of 

17 basic production margin protection and supple18 mental production margin protection, including the 

19 terms of the protection and information about the 

20 option of dairy operations during the transition pe21 riod to make an election described in paragraph (3). 

22 (3) ELECTION.—Except as provided in para23 graph (4), a dairy operation may elect to participate 

24 in either the milk income loss program established 

25 under section 1506 of the Food, Conservation, and 


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1 Energy Act of 2008 (7 U.S.C. 8773) or the produc2 tion margin protection program under this subtitle 

3 for the duration of the transition period. 

4 (4) TRANSFER TO PRODUCTION MARGIN PRO5 TECTION.—A dairy operation that elects to partici6 pate in the milk income loss program established 

7 under section 1506 of the Food, Conservation, and 

8 Energy Act of 2008 (7 U.S.C. 8773) during the 

9 transition period may, at any time, make a perma10 nent transfer to the production margin protection 

11 program. 

12 (e) ADMINISTRATION FEE.— 

13 (1) ADMINISTRATION FEE REQUIRED.—Except 

14 as provided in paragraph (5), a participating dairy 

15 operation shall— 

16 (A) pay an administration fee under this 

17 subsection to register to participate in the pro18 duction margin protection program; and 

19 (B) pay the administration fee annually 

20 thereafter to continue to participate in the pro21 duction margin protection program. 

22 (2) FEE AMOUNT.—The administration fee for 

23 a participating dairy operation for a calendar year 

24 shall be based on the pounds of milk (in millions) 


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1 marketed by the participating dairy operation in the 

2 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 (3) DEPOSIT OF FEES.—All administration fees 

4 collected under this subsection shall be credited to 

5 the fund or account used to cover the costs incurred 

6 to administer the production margin protection pro7 gram and the stabilization program and shall be 

8 available to the Secretary, without further appro9 priation and until expended, for use or transfer as 

10 provided in paragraph (4). 

11 (4) USE OF FEES.—The Secretary shall use ad12 ministration fees collected under this subsection— 

13 (A) to cover administrative costs of the 

14 production margin protection program and sta15 bilization program; and 

16 (B) to cover costs of the Department of 

17 Agriculture relating to reporting of dairy mar18 ket news, carrying out the amendments made 

19 by section 1476, and carrying out section 273 

20 of the Agricultural Marketing Act of 1946 (7 


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1 U.S.C. 1637b), to the extent funds remain 

2 available after operation of subparagraph (A). 

3 (5) WAIVER.—The Secretary shall waive or re4 duce the administration fee required under para5 graph (1) in the case of a limited-resource dairy op6 eration, as defined by the Secretary. 

7 (f) LIMITATION.—A dairy operation may only partici8 pate in the production margin protection program or the 

9 livestock gross margin for dairy program under the Fed10 eral Crop Insurance Act (7 U.S.C. 1501 et seq.), but not 

11 both. 

12 SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING 

13 DAIRY OPERATIONS. 

14 (a) PRODUCTION HISTORY FOR BASIC PRODUCTION

15 MARGIN PROTECTION.— 

16 (1) DETERMINATION REQUIRED.—For purposes 

17 of providing basic production margin protection, the 

18 Secretary shall determine the basic production his19 tory of a participating dairy operation. 

20 (2) CALCULATION.—Except as provided in 

21 paragraph (3), the basic production history of a par22 ticipating dairy operation for basic production mar23 gin protection is equal to the highest annual milk 

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1 ceding the calendar year in which the participating 

2 dairy operation first signed up to participate in the 

3 production margin protection program. 

4 (3) ELECTION BY NEW DAIRY OPERATIONS.—In 

5 the case of a participating dairy operation that has 

6 been in operation for less than a year, the partici7 pating dairy operation shall elect 1 of the following 

8 methods for the Secretary to determine the basic 

9 production history of the participating dairy oper10 ation: 

11 (A) The volume of the actual milk mar12 ketings for the months the participating dairy 

13 operation has been in operation extrapolated to 

14 a yearly amount. 

15 (B) An estimate of the actual milk mar16 ketings of the participating dairy operation 

17 based on the herd size of the participating dairy 

18 operation relative to the national rolling herd 

19 average data published by the Secretary. 

20 (4) NO CHANGE IN PRODUCTION HISTORY FOR

21 BASIC PRODUCTION MARGIN PROTECTION.—Once 

22 the basic production history of a participating dairy 

23 operation is determined under paragraph (2) or (3), 

24 the basic production history shall not be subse25 quently changed for purposes of determining the 


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1 amount of any basic production margin protection 

2 payments for the participating dairy operation made 

3 under section 1414. 

4 (b) ANNUAL PRODUCTION HISTORY FOR SUPPLE5 MENTAL PRODUCTION MARGIN PROTECTION.— 

6 (1) DETERMINATION REQUIRED.—For purposes 

7 of providing supplemental production margin protec8 tion for a participating dairy operation that pur9 chases supplemental production margin protection 

10 for a year under section 1415, the Secretary shall 

11 determine the annual production history of the par12 ticipating dairy operation under paragraph (2). 

13 (2) CALCULATION.—The annual production his14 tory of a participating dairy operation for a year is 

15 equal to the actual milk marketings of the partici16 pating dairy operation during the preceding calendar 

17 year. 

18 (3) NEW DAIRY OPERATIONS.—Subsection 

19 (a)(3) shall apply with respect to determining the 

20 annual production history of a participating dairy 

21 operation that has been in operation for less than a 

22 year. 

23 (c) REQUIRED INFORMATION.—A participating dairy 

24 operation shall provide all information that the Secretary 

25 may require in order to establish— 


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1 (1) the basic production history of the partici2 pating dairy operation under subsection (a); and 

3 (2) the production history of the participating 

4 dairy operation whenever the participating dairy op5 eration purchases supplemental production margin 

6 protection under section 1415. 

7 (d) TRANSFER OF PRODUCTION HISTORIES.— 

8 (1) TRANSFER BY SALE OR LEASE.—In promul9 gating the rules to initiate the production margin 

10 protection program, the Secretary shall specify the 

11 conditions under which and the manner by which the 

12 production history of a participating dairy operation 

13 may be transferred by sale or lease. 

14 (2) COVERAGE LEVEL.— 

15 (A) BASIC PRODUCTION MARGIN PROTEC16 TION.—A purchaser or lessee to whom the Sec17 retary transfers a basic production history 

18 under this subsection shall not obtain a dif19 ferent level of basic production margin protec20 tion than the basic production margin protec21 tion coverage held by the seller or lessor from 

22 whom the transfer was obtained. 

23 (B) SUPPLEMENTAL PRODUCTION MARGIN

24 PROTECTION.—A purchaser or lessee to whom 

25 the Secretary transfers an annual production 


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1 history under this subsection shall not obtain a 

2 different level of supplemental production mar3 gin protection coverage than the supplemental 

4 production margin protection coverage in effect 

5 for the seller or lessor from whom the transfer 

6 was obtained for the calendar year in which the 

7 transfer was made. 

8 (e) MOVEMENT AND TRANSFER OF PRODUCTION

9 HISTORY.— 

10 (1) MOVEMENT AND TRANSFER AUTHOR11 IZED.—Subject to paragraph (2), if a participating 

12 dairy operation moves from 1 location to another lo13 cation, the participating dairy operation may trans14 fer the basic production history and annual produc15 tion history associated with the participating dairy 

16 operation. 

17 (2) NOTIFICATION REQUIREMENT.—A partici18 pating dairy operation shall notify the Secretary of 

19 any move of a participating dairy operation under 

20 paragraph (1). 

21 (3) SUBSEQUENT OCCUPATION OF VACATED LO22 CATION.—A party subsequently occupying a partici23 pating dairy operation location vacated as described 

24 in paragraph (1) shall have no interest in the basic 

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1 viously associated with the participating dairy oper2 ation at such location. 

3 SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION. 

4 (a) PAYMENT THRESHOLD.—The Secretary shall 

5 make a payment to participating dairy operations in ac6 cordance with subsection (b) whenever the average actual 

7 dairy production margin for a consecutive 2-month period 

8 is less than $4.00 per hundredweight of milk. 

9 (b) BASIC PRODUCTION MARGIN PROTECTION PAY10 MENT.—The basic production margin protection payment 

11 for a participating dairy operation for a consecutive 2- 

12 month period shall be equal to the product obtained by 

13 multiplying— 

14 (1) the difference between the average actual 

15 dairy production margin for the consecutive 2-month 

16 period and $4.00, except that, if the difference is 

17 more than $4.00, the Secretary shall use $4.00; by 

18 (2) the lesser of— 

19 (A) 80 percent of the production history of 

20 the participating dairy operation, divided by 6; 

21 or 

22 (B) the actual quantity of milk marketed 

23 by the participating dairy operation during the 

24 consecutive 2-month period. 


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1 SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTEC2 TION. 

3 (a) ELECTION OF SUPPLEMENTAL PRODUCTION

4 MARGIN PROTECTION.—A participating dairy operation 

5 may annually purchase supplemental production margin 

6 protection to protect, during the calendar year for which 

7 purchased, a higher level of the income of a participating 

8 dairy operation than the income level guaranteed by basic 

9 production margin protection under section 1414. 

10 (b) SELECTION OF PAYMENT THRESHOLD.—A par11 ticipating dairy operation purchasing supplemental pro12 duction margin protection for a year shall elect a coverage 

13 level that is higher, in any increment of $0.50, than the 

14 payment threshold for basic production margin protection 

15 specified in section 1414(a), but not to exceed $8.00. 

16 (c) COVERAGE PERCENTAGE.—A participating dairy 

17 operation purchasing supplemental production margin 

18 protection for a year shall elect a percentage of coverage 

19 equal to not more than 90 percent, nor less than 25 per20 cent, of the annual production history of the participating 

21 dairy operation. 

22 (d) PREMIUMS FOR SUPPLEMENTAL PRODUCTION

23 MARGIN PROTECTION.— 

24 (1) PREMIUMS REQUIRED.—A participating 

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1 tion margin protection shall pay an annual premium 

2 equal to the product obtained by multiplying— 

3 (A) the coverage percentage elected by the 

4 participating dairy operation under subsection 

5 (c); 

6 (B) the annual production history of the 

7 participating dairy operation; and 

8 (C) the premium per hundredweight of 

9 milk, as specified in the applicable table under 

10 paragraph (2) or (3). 

11 (2) PREMIUM PER HUNDREDWEIGHT FOR FIRST

12 4 MILLION POUNDS OF PRODUCTION.—For the first 

13 4,000,000 pounds of milk marketings included in 

14 the annual production history of a participating 

15 dairy operation, the premium per hundredweight 

16 corresponding to each coverage level specified in the 

17 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. 

18 (3) PREMIUM PER HUNDREDWEIGHT FOR PRO19 DUCTION IN EXCESS OF 4 MILLION POUNDS.—For 

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1 cluded in the annual production history of a partici2 pating dairy operation, the premium per hundred3 weight corresponding to each coverage level is as fol4 lows: 

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. 

5 (4) TIME FOR PAYMENT.—In promulgating the 

6 rules to initiate the production margin protection 

7 program, the Secretary shall provide more than 1 

8 method by which a participating dairy operation that 

9 purchases supplemental production margin protec10 tion for a calendar year may pay the premium under 

11 this subsection for that year in any manner that 

12 maximizes participating dairy operation payment 

13 flexibility and program integrity. 

14 (e) PREMIUM OBLIGATIONS.— 

15 (1) PRO-RATION OF PREMIUM FOR NEW DAIRY

16 OPERATIONS.—A participating dairy operation de17 scribed in section 1412(c)(2) that purchases supple18 mental production margin protection for a calendar 

19 year after the start of the calendar year shall pay 

20 a pro-rated premium for that calendar year based on 


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1 the portion of the calendar year for which the par2 ticipating dairy operation purchases the coverage. 

3 (2) LEGAL OBLIGATION.—A participating dairy 

4 operation that purchases supplemental production 

5 margin protection for a calendar year shall be legally 

6 obligated to pay the applicable premium for that cal7 endar year, except that the Secretary may waive 

8 that obligation, under terms and conditions deter9 mined by the Secretary, for 1 or more producers in 

10 any participating dairy operation in the case of 

11 death, retirement, permanent dissolution of a par12 ticipating dairy operation, or other circumstances as 

13 the Secretary considers appropriate to ensure the in14 tegrity of the program. 

15 (f) SUPPLEMENTAL PAYMENT THRESHOLD.—A par16 ticipating dairy operation with supplemental production 

17 margin protection shall receive a supplemental production 

18 margin protection payment whenever the average actual 

19 dairy production margin for a consecutive 2-month period 

20 is less than the coverage level threshold selected by the 

21 participating dairy operation under subsection (b). 

22 (g) SUPPLEMENTAL PRODUCTION MARGIN PROTEC23 TION PAYMENTS.— 

24 (1) IN GENERAL.—The supplemental produc25 tion margin protection payment for a participating 


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1 dairy operation is in addition to the basic production 

2 margin protection payment. 

3 (2) AMOUNT OF PAYMENT.—The supplemental 

4 production margin protection payment for the par5 ticipating dairy operation shall be determined as fol6 lows: 

7 (A) The Secretary shall calculate the dif8 ference between the coverage level threshold se9 lected by the participating dairy operation 

10 under subsection (b) and the greater of— 

11 (i) the average actual dairy production 

12 margin for the consecutive 2-month period; 

13 or 

14 (ii) $4.00. 

15 (B) The amount determined under sub16 paragraph (A) shall be multiplied by the per17 centage selected by the participating dairy oper18 ation under subsection (c) and by the lesser of 

19 the following: 

20 (i) The annual production history of 

21 the participating dairy operation, divided 

22 by 6. 

23 (ii) The actual amount of milk mar24 keted by the participating dairy operation 

25 during the consecutive 2-month period. 


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1 SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION 

2 FEES OR PREMIUMS. 

3 (a) LOSS OF BENEFITS.—A participating dairy oper4 ation that fails to pay the required administration fee 

5 under section 1412 or is in arrears on premium payments 

6 for supplemental production margin protection under sec7 tion 1415— 

8 (1) remains legally obligated to pay the admin9 istration fee or premiums, as the case may be; and 

10 (2) may not receive basic production margin 

11 protection payments or supplemental production 

12 margin protection payments until the fees or pre13 miums are fully paid. 

14 (b) ENFORCEMENT.—The Secretary may take such 

15 action as necessary to collect administration fees and pre16 mium payments for supplemental production margin pro17 tection. 

18 Subpart B—Dairy Market Stabilization Program 

19 SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZA20 TION PROGRAM. 

21 (a) PROGRAM REQUIRED; PURPOSE.—Effective not 

22 later than 120 days after the effective date of this subtitle, 

23 the Secretary shall establish and administer a dairy mar24 ket stabilization program applicable to participating dairy 

25 operations for the purpose of assisting in balancing the 


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1 supply of milk with demand when participating dairy oper2 ations are experiencing low or negative operating margins. 

3 (b) ELECTION OF STABILIZATION PROGRAM BASE

4 CALCULATION METHOD.— 

5 (1) ELECTION.—When a dairy operation signs 

6 up under section 1412 to participate in the produc7 tion margin protection program, the dairy operation 

8 shall inform the Secretary of the method by which 

9 the stabilization program base for the participating 

10 dairy operation will be calculated under paragraph 

11 (3). 

12 (2) CHANGE IN CALCULATION METHOD.—A 

13 participating dairy operation may change the sta14 bilization program base calculation method to be 

15 used for a calendar year by notifying the Secretary 

16 of the change not later than a date determined by 

17 the Secretary. 

18 (3) CALCULATION METHODS.—A participating 

19 dairy operation may elect either of the following 

20 methods for calculation of the stabilization program 

21 base for the participating dairy operation: 

22 (A) The volume of the average monthly 

23 milk marketings of the participating dairy oper24 ation for the 3 months immediately preceding 


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1 the announcement by the Secretary that the 

2 stabilization program will become effective. 

3 (B) The volume of the monthly milk mar4 ketings of the participating dairy operation for 

5 the same month in the preceding year as the 

6 month for which the Secretary has announced 

7 the stabilization program will become effective. 

8 SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND RE9 DUCTION IN DAIRY PAYMENTS. 

10 (a) WHEN STABILIZATION PROGRAM REQUIRED.— 

11 Except as provided in subsection (b), the Secretary shall 

12 announce that the stabilization program is in effect and 

13 order reduced payments by handlers to participating dairy 

14 operations that exceed the applicable percentage of the 

15 participating dairy operation’s stabilization program base 

16 whenever— 

17 (1) the actual dairy production margin has been 

18 $6.00 or less per hundredweight of milk for each of 

19 the immediately preceding 2 months; or 

20 (2) the actual dairy production margin has been 

21 $4.00 or less per hundredweight of milk for the im22 mediately preceding month. 

23 (b) EXCEPTION.—If any of the conditions described 

24 in section 1436(b) have been met during the 2-month pe25 riod immediately preceding the month in which the anVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 nouncement under subsection (a) would otherwise be made 

2 by the Secretary in the absence of this exception, the Sec3 retary shall— 

4 (1) suspend the stabilization program; 

5 (2) refrain from making the announcement 

6 under subsection (a) to implement order the sta7 bilization payment; or 

8 (3) order reduced payments. 

9 (c) EFFECTIVE DATE FOR IMPLEMENTATION OF

10 PAYMENT REDUCTIONS.—Reductions in dairy payments 

11 shall commence beginning on the first day of the month 

12 immediately following the date of the announcement by 

13 the Secretary under subsection (a). 

14 SEC. 1433. MILK MARKETINGS INFORMATION. 

15 (a) COLLECTION OF MILK MARKETING DATA.—The 

16 Secretary shall establish, by regulation, a process to collect 

17 from participating dairy operations and handlers such in18 formation that the Secretary considers necessary for each 

19 month during which the stabilization program is in effect. 

20 (b) REDUCE REGULATORY BURDEN.—When imple21 menting the process under subsection (a), the Secretary 

22 shall minimize the regulatory burden on participating 

23 dairy operations and handlers. 


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1 SEC. 1434. CALCULATION AND COLLECTION OF REDUCED 

2 DAIRY OPERATION PAYMENTS. 

3 (a) REDUCED PARTICIPATING DAIRY OPERATION

4 PAYMENTS REQUIRED.—During any month in which pay5 ment reductions are in effect under the stabilization pro6 gram, each handler shall reduce payments to each partici7 pating dairy operation from whom the handler receives 

8 milk. 

9 (b) REDUCTIONS BASED ON ACTUAL DAIRY PRO10 DUCTION MARGIN.— 

11 (1) REDUCTION REQUIREMENT 1.—If the Sec12 retary determines that the average actual dairy pro13 duction margin has been less than $6.00 but greater 

14 than $5.00 per hundredweight of milk for 2 consecu15 tive months, the handler shall make payments to a 

16 participating dairy operation for a month based on 

17 the greater of the following: 

18 (A) 98 percent of the stabilization program 

19 base of the participating dairy operation. 

20 (B) 94 percent of the marketings of milk 

21 for the month by the participating dairy oper22 ation. 

23 (2) REDUCTION REQUIREMENT 2.—If the Sec24 retary determines that the average actual dairy pro25 duction margin has been less than $5.00 but greater 

26 than $4.00 for 2 consecutive months, the handler 


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1 shall make payments to a participating dairy oper2 ation for a month based on the greater of the fol3 lowing: 

4 (A) 97 percent of the stabilization program 

5 base of the participating dairy operation. 

6 (B) 93 percent of the marketings of milk 

7 for the month by the participating dairy oper8 ation. 

9 (3) REDUCTION REQUIREMENT 3.—If the Sec10 retary determines that the average actual dairy pro11 duction margin has been $4.00 or less for any 1 

12 month, the handler shall make payments to a par13 ticipating dairy operation for a month based on the 

14 greater of the following: 

15 (A) 96 percent of the stabilization program 

16 base of the participating dairy operation. 

17 (B) 92 percent of the marketings of milk 

18 for the month by the participating dairy oper19 ation. 

20 (c) CONTINUATION OF REDUCTIONS.—The largest 

21 level of payment reduction required under paragraph (1), 

22 (2), or (3) of subsection (b) shall be continued for each 

23 month until the Secretary suspends the stabilization pro24 gram and terminates payment reductions in accordance 

25 with section 1436. 


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1 (d) PAYMENT REDUCTION EXCEPTION.—Notwith2 standing any preceding subsection of this section, a han3 dler shall make no payment reductions for a participating 

4 dairy operation for a month if the participating dairy oper5 ation’s milk marketings for the month are equal to or less 

6 than the percentage of the stabilization program base ap7 plicable to the participating dairy operation under para8 graph (1), (2), or (3) of subsection (b). 

9 SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE 

10 OF FUNDS. 

11 (a) REMITTING FUNDS.—As soon as practicable after 

12 the end of each month during which payment reductions 

13 are in effect under the stabilization program, each handler 

14 shall remit to the Secretary an amount equal to the 

15 amount by which payments to participating dairy oper16 ations are reduced by the handler under section 1434. 

17 (b) DEPOSIT OF REMITTED FUNDS.—All funds re18 ceived under subsection (a) shall be available to the Sec19 retary, without further appropriation and until expended, 

20 for use or transfer as provided in subsection (c). 

21 (c) USE OF FUNDS.— 

22 (1) AVAILABILITY FOR CERTAIN COMMODITY

23 DONATIONS.—Not later than 90 days after the 

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1 mined by the Secretary, the Secretary shall obligate 

2 the funds for the purpose of— 

3 (A) purchasing dairy products for donation 

4 to food banks and other programs that the Sec5 retary determines appropriate; and 

6 (B) expanding consumption and building 

7 demand for dairy products. 

8 (2) NO DUPLICATION OF EFFORT.—The Sec9 retary shall ensure that expenditures under para10 graph (1) are compatible with, and do not duplicate, 

11 programs supported by the dairy research and pro12 motion activities conducted under the Dairy Produc13 tion Stabilization Act of 1983 (7 U.S.C. 4501 et 

14 seq.). 

15 (3) ACCOUNTING.—The Secretary shall keep an 

16 accurate account of all funds expended under para17 graph (1). 

18 (d) ANNUAL REPORT.—Not later than December 31 

19 of each year that the stabilization program is in effect, 

20 the Secretary shall submit to the Committee on Agri21 culture of the House of Representatives and the Com22 mittee on Agriculture, Nutrition, and Forestry of the Sen23 ate a report that provides an accurate accounting of— 

24 (1) the funds received by the Secretary during 

25 the preceding fiscal year under subsection (a); 


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1 (2) all expenditures made by the Secretary 

2 under subsection (b) during the preceding fiscal 

3 year; and 

4 (3) the impact of the stabilization program on 

5 dairy markets. 

6 (e) ENFORCEMENT.—If a participating dairy oper7 ation or handler fails to remit or collect the amounts by 

8 which payments to participating dairy operations are re9 duced under section 1434, the participating dairy oper10 ation or handler responsible for the failure shall be liable 

11 to the Secretary for the amount that should have been 

12 remitted or collected, plus interest. In addition to the en13 forcement authorities available under section 1437, the 

14 Secretary may enforce this subsection in the courts of the 

15 United States. 

16 SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE17 MENT. 

18 (a) DETERMINATION OF PRICES.—For purposes of 

19 this section: 

20 (1) The price in the United States for cheddar 

21 cheese and nonfat dry milk shall be determined by 

22 the Secretary. 

23 (2) The world price of cheddar cheese and skim 

24 milk powder shall be determined by the Secretary. 


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1 (b) SUSPENSION THRESHOLDS.—The stabilization 

2 program shall be suspended or the Secretary shall refrain 

3 from making the announcement under section 1432(a) if 

4 the Secretary determines that— 

5 (1) the actual dairy production margin is great6 er than $6.00 per hundredweight of milk for 2 con7 secutive months; 

8 (2) the actual dairy production margin is equal 

9 to or less than $6.00 (but greater than $5.00) for 

10 2 consecutive months, and during the same 2 con11 secutive months— 

12 (A) the price in the United States for 

13 cheddar cheese is equal to or greater than the 

14 world price of cheddar cheese; or 

15 (B) the price in the United States for non16 fat dry milk is equal to or greater than the 

17 world price of skim milk powder; 

18 (3) the actual dairy production margin is equal 

19 to or less than $5.00 (but greater than $4.00) for 

20 2 consecutive months, and during the same 2 con21 secutive months— 

22 (A) the price in the United States for 

23 cheddar cheese is more than 5 percent above 

24 the world price of cheddar cheese; or 


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1 (B) the price in the United States for non2 fat dry milk is more than 5 percent above the 

3 world price of skim milk powder; or 

4 (4) the actual dairy production margin is equal 

5 to or less than $4.00 for 2 consecutive months, and 

6 during the same 2 consecutive months— 

7 (A) the price in the United States for 

8 cheddar cheese is more than 7 percent above 

9 the world price of cheddar cheese; or 

10 (B) the price in the United States for non11 fat dry milk is more than 7 percent above the 

12 world price of skim milk powder. 

13 (c) IMPLEMENTATION BY HANDLERS.—Effective on 

14 the day after the date of the announcement by the Sec15 retary under subsection (b) of the suspension of the sta16 bilization program, the handler shall cease reducing pay17 ments to participating dairy operations under the sta18 bilization program. 

19 (d) CONDITION ON RESUMPTION OF STABILIZATION

20 PROGRAM.—Upon the announcement by the Secretary 

21 under subsection (b) that the stabilization program has 

22 been suspended, the stabilization program may not be im23 plemented again until, at the earliest— 


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1 (1) 2 months have passed, beginning on the 

2 first day of the month immediately following the an3 nouncement by the Secretary; and 

4 (2) the conditions of section 1432(a) are again 

5 met. 

6 SEC. 1437. ENFORCEMENT. 

7 (a) UNLAWFUL ACT.—It shall be unlawful and a vio8 lation of the this subpart for any person subject to the 

9 stabilization program to willfully fail or refuse to provide, 

10 or delay the timely reporting of, accurate information and 

11 remittance of funds to the Secretary in accordance with 

12 this subpart. 

13 (b) ORDER.—After providing notice and opportunity 

14 for a hearing to an affected person, the Secretary may 

15 issue an order against any person to cease and desist from 

16 continuing any violation of this subpart. 

17 (c) APPEAL.—An order of the Secretary under sub18 section (b) shall be final and conclusive unless an affected 

19 person files an appeal of the order of the Secretary in 

20 United States district court not later than 30 days after 

21 the date of the issuance of the order. A finding of the 

22 Secretary in the order shall be set aside only if the finding 

23 is not supported by substantial evidence. 

24 (d) NONCOMPLIANCE WITH ORDER.—If a person 

25 subject to this subpart fails to obey an order issued under 


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1 subsection (b) after the order has become final and 

2 unappealable, or after the appropriate United States dis3 trict court has entered a final judgment in favor of the 

4 Secretary, the United States may apply to the appropriate 

5 United States district court for enforcement of the order. 

6 If the court determines that the order was lawfully made 

7 and duly served and that the person violated the order, 

8 the court shall enforce the order. 

9 SEC. 1438. AUDIT REQUIREMENTS. 

10 (a) AUDITS OF DAIRY OPERATION AND HANDLER

11 COMPLIANCE.— 

12 (1) AUDITS AUTHORIZED.—If determined by 

13 the Secretary to be necessary to ensure compliance 

14 by participating dairy operations and handlers with 

15 the stabilization program, the Secretary may con16 duct periodic audits of participating dairy operations 

17 and handlers. 

18 (2) SAMPLE OF DAIRY OPERATIONS.—Any 

19 audit conducted under this subsection shall include, 

20 at a minimum, investigation of a statistically valid 

21 and random sample of participating dairy oper22 ations. 

23 (b) SUBMISSION OF RESULTS.—The Secretary shall 

24 submit the results of any audit conducted under sub25 section (a) to the Committee on Agriculture of the House 


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1 of Representatives and the Committee on Agriculture, Nu2 trition, and Forestry of the Senate and include such rec3 ommendations as the Secretary considers appropriate re4 garding the stabilization program. 

5 SEC. 1439. STUDY; REPORT. 

6 (a) IN GENERAL.—The Secretary shall direct the Of7 fice of the Chief Economist to conduct a study of the im8 pacts of the program established under section 1431(a). 

9 (b) CONSIDERATIONS.—The study conducted under 

10 subsection (a) shall consider— 

11 (1) the economic impact of the program 

12 throughout the dairy product value chain, including 

13 the impact on producers, processors, domestic cus14 tomers, export customers, actual market growth and 

15 potential market growth, farms of different sizes, 

16 and different regions and States; and 

17 (2) the impact of the program on the competi18 tiveness of the United States dairy industry in inter19 national markets. 

20 (c) REPORT.—Not later than December 1, 2017, the 

21 Office of the Chief Economist shall submit to the Com22 mittee on Agriculture of the House of Representatives and 

23 the Committee on Agriculture, Nutrition, and Forestry of 

24 the Senate a report that describes the results of the study 

25 conducted under subsection (a). 


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1 Subpart C—Administration 

2 SEC. 1451. DURATION. 

3 The production margin protection program and the 

4 stabilization program shall end on December 31, 2018. 

5 SEC. 1452. ADMINISTRATION AND ENFORCEMENT. 

6 (a) IN GENERAL.—The Secretary shall promulgate 

7 regulations to address administrative and enforcement 

8 issues involved in carrying out the production margin pro9 tection, supplemental production margin protection, and 

10 market stabilization programs. 

11 (b) RECONSTITUTION AND ELIGIBILITY ISSUES.— 

12 (1) RECONSTITUTION.—Using authorities under 

13 section 1001(f) and 1001B of the Food Security Act 

14 of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary 

15 shall promulgate regulations to prohibit a dairy pro16 ducer from reconstituting a dairy operation for the 

17 sole purpose of the dairy producer— 

18 (A) receiving basic margin protection; 

19 (B) purchasing supplemental margin pro20 tection; or 

21 (C) avoiding participation in the market 

22 stabilization program. 

23 (2) ELIGIBILITY ISSUES.—Using authorities 

24 under section 1001(f) and 1001B of the Food Secu25 rity Act of 1985 (7 U.S.C. 1308(f), 1308–2), the 

26 Secretary shall promulgate regulations— 


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1 (A) to prohibit a scheme or device; 

2 (B) to provide for equitable relief; and 

3 (C) to provide for other issues affecting eli4 gibility and liability issues. 

5 (3) ADMINISTRATIVE APPEALS.—Using authori6 ties under section 1001(h) of the Food Security Act 

7 of 1985 (7 U.S.C. 1308(h)) and subtitle H of the 

8 Department of Agriculture Reorganization Act (7 

9 U.S.C. 6991 et seq.), the Secretary shall promulgate 

10 regulations to provide for administrative appeals of 

11 decisions of the Secretary that are adverse to par12 ticipants of the programs described in subsection 

13 (a). 

14 PART II—DAIRY MARKET TRANSPARENCY 

15 SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING. 

16 (a) DEFINITIONS.—Section 272(1)(A) of the Agricul17 tural Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is 

18 amended by inserting ‘‘, or any other products that may 

19 significantly aid price discovery in the dairy markets, as 

20 determined by the Secretary’’ after ‘‘of 1937’’. 

21 (b) MANDATORY REPORTING FOR DAIRY PROD22 UCTS.—Section 273(b) of the Agricultural Marketing Act 

23 of 1946 (7 U.S.C. 1637b(b)) is amended— 

24 (1) by striking paragraph (1) and inserting the 

25 following new paragraph: 


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1 ‘‘(1) IN GENERAL.—In establishing the pro2 gram, the Secretary shall only— 

3 ‘‘(A)(i) subject to the conditions described 

4 in paragraph (2), require each manufacturer to 

5 report to the Secretary, more frequently than 

6 once per month, information concerning the 

7 price, quantity, and moisture content of dairy 

8 products sold by the manufacturer and any 

9 other product characteristics that may signifi10 cantly aid price discovery in the dairy markets, 

11 as determined by the Secretary; and 

12 ‘‘(ii) modify the format used to provide the 

13 information on the day before the date of enact14 ment of this subtitle to ensure that the infor15 mation can be readily understood by market 

16 participants; and 

17 ‘‘(B) require each manufacturer and other 

18 person storing dairy products (including dairy 

19 products in cold storage) to report to the Sec20 retary, more frequently than once per month, 

21 information on the quantity of dairy products 

22 stored.’’; and 

23 (2) in paragraph (2), by inserting ‘‘or those 

24 that may significantly aid price discovery in the 

25 dairy markets’’ after ‘‘Federal milk marketing 


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1 order’’ each place it appears in subparagraphs (A), 

2 (B), and (C). 

3 SEC. 1462. FEDERAL MILK MARKETING ORDER PROGRAM 

4 PRE-HEARING PROCEDURE FOR CLASS III 

5 PRICING. 

6 (a) IN GENERAL.—The Secretary shall use the pre7 hearing procedure described in this section to consider al8 ternative formulas for Class III milk product pricing 

9 under section 8c of the Agricultural Adjustment Act (7 

10 U.S.C. 608c), reenacted with amendments by the Agricul11 tural Marketing Agreement Act of 1937. 

12 (b) REQUESTS FOR PROPOSALS.— 

13 (1) IN GENERAL.—Not later than 120 days 

14 after the date of enactment of this Act, the Sec15 retary shall issue a request for the submission by in16 terested persons of preliminary proposals for re17 placement of the Class III milk product pricing for18 mula. 

19 (2) PRELIMINARY PROPOSALS.—Preliminary 

20 proposals submitted under paragraph (1)— 

21 (A) may include competitive pay price for22 mulas; and 

23 (B) shall provide sufficient detail in con24 cept to serve as the basis for the convening by 

25 the Secretary of a public information session 


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1 for review and discussion in accordance with 

2 section 900.24 of title 7, Code of Federal Regu3 lations (as in effect on the date of enactment of 

4 this Act), but need not conform with the other 

5 procedural requirements of part 900 of title 7, 

6 Code of Federal Regulations (as in effect on the 

7 date of enactment of this Act). 

8 (c) PRE-HEARING INFORMATION SESSION RE9 VIEW.— 

10 (1) IN GENERAL.—Not later than 180 days 

11 after the date on which the Secretary issues a re12 quest under subsection (b)(1), the Secretary shall 

13 convene a public information session in accordance 

14 with section 900.24 of title 7, Code of Federal Regu15 lations (as in effect on the date of enactment of this 

16 Act). 

17 (2) REQUIREMENTS.—The Secretary shall re18 view all preliminary proposals submitted under this 

19 section that are of sufficient conceptual detail to 

20 allow for the review described in paragraph 

21 (b)(2)(B). 

22 (d) HEARING DETERMINATION.— 

23 (1) IN GENERAL.—Not later than 90 days after 

24 the conduct of the public information session under 

25 subsection (c), the Secretary shall determine whether 


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1 to conduct a formal hearing in accordance with part 

2 900 of title 7, Code of Federal Regulations (as in ef3 fect on the date of enactment of this Act). 

4 (2) HEARING TO BE CONDUCTED.—If the Sec5 retary determines under paragraph (1) to conduct a 

6 formal hearing, the Secretary shall issue notice and 

7 conduct the hearing in accordance with part 900 of 

8 title 7, Code of Federal Regulations (as in effect on 

9 the date of enactment of this Act). 

10 (3) HEARING NOT TO BE CONDUCTED.—If the 

11 Secretary determines under paragraph (1) not to 

12 conduct a formal hearing, not later than 90 days 

13 after that determination, the Secretary shall submit 

14 to the Committee on Agriculture of the House of 

15 Representatives and the Committee on Agriculture, 

16 Nutrition and Forestry of the Senate a written re17 port that explains the basis for the decision. 

18 (e) PROCEEDING WITH A HEARING AT ANY TIME.— 

19 Consistent with the purposes of this section, the Secretary 

20 may dispense with the pre-hearing requirements of this 

21 section and initiate at any time a formal hearing under 

22 part 900 of title 7, Code of Federal Regulations (as in 

23 effect on the date of enactment of this Act). 


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1 PART III—REPEAL OR REAUTHORIZATION OF 

2 OTHER DAIRY-RELATED PROVISIONS 

3 SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 

4 AND MILK INCOME LOSS CONTRACT PRO5 GRAMS. 

6 (a) REPEAL OF DAIRY PRODUCT PRICE SUPPORT

7 PROGRAM.—Section 1501 of the Food, Conservation, and 

8 Energy Act of 2008 (7 U.S.C. 8771) is repealed. 

9 (b) REPEAL OF MILK INCOME LOSS CONTRACT PRO10 GRAM.— 

11 (1) PAYMENTS UNDER MILK INCOME LOSS CON12 TRACT PROGRAM.—Section 1506(c)(3) of the Food, 

13 Conservation, and Energy Act of 2008 (7 U.S.C. 

14 8773(c)(3)) is amended— 

15 (A) in subparagraph (A), by inserting 

16 ‘‘and’’ after the semicolon; 

17 (B) in subparagraph (B), by striking ‘‘Au18 gust 31, 2013, 45 percent; and’’ and inserting 

19 ‘‘June 30, 2014, 45 percent.’’; and 

20 (C) by striking subparagraph (C). 

21 (2) EXTENSION.—Section 1506(h)(1) of the 

22 Food, Conservation, and Energy Act of 2008 (7 

23 U.S.C. 8773(h)(1)) is amended by striking ‘‘Sep24 tember 30, 2013’’ and inserting ‘‘June 30, 2014’’. 


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1 (3) REPEAL.—Effective July 1, 2014, section 

2 1506 of the Food, Conservation, and Energy Act of 

3 2008 (7 U.S.C. 8773) is repealed. 

4 SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PRO5 GRAM. 

6 (a) REPEAL.—Section 153 of the Food Security Act 

7 of 1985 (15 U.S.C. 713a–14) is repealed. 

8 (b) CONFORMING AMENDMENTS.—Section 902(2) of 

9 the Trade Sanctions Reform and Export Enhancement 

10 Act of 2000 (22 U.S.C. 7201(2)) is amended— 

11 (1) by striking subparagraph (D); and 

12 (2) by redesignating subparagraphs (E) and 

13 (F) as subparagraphs (D) and (E), respectively. 

14 SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PRO15 GRAM. 

16 Section 1502(e) of the Food, Conservation, and En17 ergy Act of 2008 (7 U.S.C. 8772(e)) is amended— 

18 (1) in paragraph (1), by striking ‘‘2012’’ and 

19 inserting ‘‘2018’’; and 

20 (2) in paragraph (2), by striking ‘‘2015’’ and 

21 inserting ‘‘2021’’. 

22 SEC. 1474. EXTENSION OF DAIRY INDEMNITY PROGRAM. 

23 Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 

24 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 


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1 SEC. 1475. EXTENSION OF DAIRY PROMOTION AND RE2 SEARCH PROGRAM. 

3 Section 113(e)(2) of the Dairy Production Stabiliza4 tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 

5 striking ‘‘2012’’ and inserting ‘‘2018’’. 

6 SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING 

7 ORDER REVIEW COMMISSION. 

8 Section 1509(a) of the Food, Conservation, and En9 ergy Act of 2008 (Public Law 110–246; 122 Stat. 1726) 

10 is amended by inserting ‘‘or other funds’’ after ‘‘Subject 

11 to the availability of appropriations’’. 

12 PART IV—FEDERAL MILK MARKETING ORDER 

13 REFORM 

14 SEC. 1481. FEDERAL MILK MARKETING ORDERS. 

15 (a) AMENDMENTS.—The Secretary shall provide an 

16 analysis on the effects of amending each Federal milk 

17 marketing order issued under section 8c of the Agricul18 tural Adjustment Act (7 U.S.C. 608c), reenacted with 

19 amendments by the Agricultural Marketing Agreement 

20 Act of 1937 (in this part referred to as a ‘‘milk marketing 

21 order’’), as required by this section. 

22 (b) USE OF END-PRODUCT PRICE FORMULAS.—In 

23 carrying out subsection (a), the Secretary shall— 

24 (1) consider replacing the use of end-product 

25 price formulas with other pricing alternatives; and 


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1 (2) submit to the Committee on Agriculture of 

2 the House of Representatives and the Committee on 

3 Agriculture, Nutrition, and Forestry of the Senate a 

4 report describing the findings of the Secretary on 

5 the impact of the action considered under paragraph 

6 (1). 

7 PART V—EFFECTIVE DATE 

8 SEC. 1491. EFFECTIVE DATE. 

9 Except as otherwise provided in this subtitle, this 

10 subtitle and the amendments made by this subtitle take 

11 effect on October 1, 2013. 

12 Subtitle E—Supplemental Agricul13 tural Disaster Assistance Pro14 grams 

15 SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS16 SISTANCE PROGRAMS. 

17 (a) DEFINITIONS.—In this section: 

18 (1) ELIGIBLE PRODUCER ON A FARM.— 

19 (A) IN GENERAL.—The term ‘‘eligible pro20 ducer on a farm’’ means an individual or entity 

21 described in subparagraph (B) that, as deter22 mined by the Secretary, assumes the production 

23 and market risks associated with the agricul24 tural production of crops or livestock. 


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1 (B) DESCRIPTION.—An individual or enti2 ty referred to in subparagraph (A) is— 

3 (i) a citizen of the United States; 

4 (ii) a resident alien; 

5 (iii) a partnership of citizens of the 

6 United States; or 

7 (iv) a corporation, limited liability cor8 poration, or other farm organizational 

9 structure organized under State law. 

10 (2) FARM.— 

11 (A) IN GENERAL.—The term ‘‘farm’’ 

12 means, in relation to an eligible producer on a 

13 farm, the total of all crop acreage in all coun14 ties that is planted or intended to be planted 

15 for harvest, for sale, or on-farm livestock feed16 ing (including native grassland intended for 

17 haying) by the eligible producer. 

18 (B) AQUACULTURE.—In the case of aqua19 culture, the term ‘‘farm’’ means, in relation to 

20 an eligible producer on a farm, all fish being 

21 produced in all counties that are intended to be 

22 harvested for sale by the eligible producer. 

23 (C) HONEY.—In the case of honey, the 

24 term ‘‘farm’’ means, in relation to an eligible 

25 producer on a farm, all bees and beehives in all 


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1 counties that are intended to be harvested for 

2 a honey crop for sale by the eligible producer. 

3 (3) FARM-RAISED FISH.—The term ‘‘farm4 raised fish’’ means any aquatic species that is propa5 gated and reared in a controlled environment. 

6 (4) LIVESTOCK.—The term ‘‘livestock’’ in7 cludes— 

8 (A) cattle (including dairy cattle); 

9 (B) bison; 

10 (C) poultry; 

11 (D) sheep; 

12 (E) swine; 

13 (F) horses; and 

14 (G) other livestock, as determined by the 

15 Secretary. 

16 (b) LIVESTOCK INDEMNITY PAYMENTS.— 

17 (1) PAYMENTS.—For each of fiscal years 2012 

18 through 2018, the Secretary shall use such sums as 

19 are necessary of the funds of the Commodity Credit 

20 Corporation to make livestock indemnity payments 

21 to eligible producers on farms that have incurred 

22 livestock death losses in excess of the normal mor23 tality, as determined by the Secretary, due to— 


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1 (A) attacks by animals reintroduced into 

2 the wild by the Federal Government or pro3 tected by Federal law, including wolves; or 

4 (B) adverse weather, as determined by the 

5 Secretary, during the calendar year, including 

6 losses due to hurricanes, floods, blizzards, dis7 ease, wildfires, extreme heat, and extreme cold. 

8 (2) PAYMENT RATES.—Indemnity payments to 

9 an eligible producer on a farm under paragraph (1) 

10 shall be made at a rate of 65 percent of the market 

11 value of the applicable livestock on the day before 

12 the date of death of the livestock, as determined by 

13 the Secretary. 

14 (3) SPECIAL RULE FOR PAYMENTS MADE DUE

15 TO DISEASE.—The Secretary shall ensure that pay16 ments made to an eligible producer under paragraph 

17 (1) are not made for the same livestock losses for 

18 which compensation is provided pursuant to section 

19 10407(d) of the Animal Health Protection Act (7 

20 U.S.C. 8306(d)). 

21 (c) LIVESTOCK FORAGE DISASTER PROGRAM.— 

22 (1) ESTABLISHMENT.—There is established a 

23 livestock forage disaster program to provide 1 source 

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1 related forage losses, as determined by the Sec2 retary, by combining— 

3 (A) the livestock forage assistance func4 tions of— 

5 (i) the noninsured crop disaster assist6 ance program established by section 196 of 

7 the Federal Agriculture Improvement and 

8 Reform Act of 1996 (7 U.S.C. 7333); and 

9 (ii) the emergency assistance for live10 stock, honey bees, and farm-raised fish 

11 program under section 531(e) of the Fed12 eral Crop Insurance Act (7 U.S.C. 

13 1531(e)) (as in existence on the day before 

14 the date of enactment of this Act); and 

15 (B) the livestock forage disaster program 

16 under section 531(d) of the Federal Crop In17 surance Act (7 U.S.C. 1531(d)) (as in existence 

18 on the day before the date of enactment of this 

19 Act). 

20 (2) DEFINITIONS.—In this subsection: 

21 (A) COVERED LIVESTOCK.— 

22 (i) IN GENERAL.—Except as provided 

23 in clause (ii), the term ‘‘covered livestock’’ 

24 means livestock of an eligible livestock pro25 ducer that, during the 60 days prior to the 


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1 beginning date of an eligible forage loss, as 

2 determined by the Secretary, the eligible 

3 livestock producer— 

4 (I) owned; 

5 (II) leased; 

6 (III) purchased; 

7 (IV) entered into a contract to 

8 purchase; 

9 (V) was a contract grower; or 

10 (VI) sold or otherwise disposed of 

11 due to an eligible forage loss during— 

12 (aa) the current production 

13 year; or 

14 (bb) subject to paragraph 

15 (4)(B)(ii), 1 or both of the 2 pro16 duction years immediately pre17 ceding the current production 

18 year. 

19 (ii) EXCLUSION.—The term ‘‘covered 

20 livestock’’ does not include livestock that 

21 were or would have been in a feedlot, on 

22 the beginning date of the eligible forage 

23 loss, as a part of the normal business oper24 ation of the eligible livestock producer, as 

25 determined by the Secretary. 


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1 (B) DROUGHT MONITOR.—The term 

2 ‘‘drought monitor’’ means a system for 

3 classifying drought severity according to a 

4 range of abnormally dry to exceptional drought, 

5 as defined by the Secretary. 

6 (C) ELIGIBLE FORAGE LOSS.—The term 

7 ‘‘eligible forage loss’’ means 1 or more forage 

8 losses that occur due to weather-related condi9 tions, including drought, flood, blizzard, hail, 

10 excessive moisture, hurricane, and fire, occur11 ring during the normal grazing period, as deter12 mined by the Secretary, if the forage— 

13 (i) is grown on land that is native or 

14 improved pastureland with permanent veg15 etative cover; or 

16 (ii) is a crop planted specifically for 

17 the purpose of providing grazing for cov18 ered livestock of an eligible livestock pro19 ducer. 

20 (D) ELIGIBLE LIVESTOCK PRODUCER.— 

21 (i) IN GENERAL.—The term ‘‘eligible 

22 livestock producer’’ means an eligible pro23 ducer on a farm that— 

24 (I) is an owner, cash or share 

25 lessee, or contract grower of covered 


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1 livestock that provides the pastureland 

2 or grazing land, including cash-leased 

3 pastureland or grazing land, for the 

4 covered livestock; 

5 (II) provides the pastureland or 

6 grazing land for covered livestock, in7 cluding cash-leased pastureland or 

8 grazing land that is physically located 

9 in a county affected by an eligible for10 age loss; 

11 (III) certifies the eligible forage 

12 loss; and 

13 (IV) meets all other eligibility re14 quirements established under this sub15 section. 

16 (ii) EXCLUSION.—The term ‘‘eligible 

17 livestock producer’’ does not include an 

18 owner, cash or share lessee, or contract 

19 grower of livestock that rents or leases 

20 pastureland or grazing land owned by an21 other person on a rate-of-gain basis. 

22 (E) NORMAL CARRYING CAPACITY.—The 

23 term ‘‘normal carrying capacity’’, with respect 

24 to each type of grazing land or pastureland in 

25 a county, means the normal carrying capacity, 


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1 as determined under paragraph (4)(D)(i), that 

2 would be expected from the grazing land or 

3 pastureland for livestock during the normal 

4 grazing period, in the absence of an eligible for5 age loss that diminishes the production of the 

6 grazing land or pastureland. 

7 (F) NORMAL GRAZING PERIOD.—The term 

8 ‘‘normal grazing period’’, with respect to a 

9 county, means the normal grazing period during 

10 the calendar year for the county, as determined 

11 under paragraph (4)(D)(i). 

12 (3) PROGRAM.—For each of fiscal years 2012 

13 through 2018, the Secretary shall use such sums as 

14 are necessary of the funds of the Commodity Credit 

15 Corporation to provide compensation under para16 graphs (4) through (6), as determined by the Sec17 retary for eligible forage losses affecting covered live18 stock of eligible livestock producers. 

19 (4) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES

20 DUE TO DROUGHT CONDITIONS.— 

21 (A) ELIGIBLE FORAGE LOSSES.— 

22 (i) IN GENERAL.—An eligible livestock 

23 producer of covered livestock may receive 

24 assistance under this paragraph for eligible 


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1 forage losses that occur due to drought on 

2 land that— 

3 (I) is native or improved 

4 pastureland with permanent vegeta5 tive cover; or 

6 (II) is planted to a crop planted 

7 specifically for the purpose of pro8 viding grazing for covered livestock. 

9 (ii) EXCLUSIONS.—An eligible live10 stock producer may not receive assistance 

11 under this paragraph for eligible forage 

12 losses that occur on land used for haying 

13 or grazing under the conservation reserve 

14 program established under subchapter B of 

15 chapter 1 of subtitle D of title XII of the 

16 Food Security Act of 1985 (16 U.S.C. 

17 3831 et seq.), unless the land is grassland 

18 eligible for the conservation reserve pro19 gram under section 1231(d)(2) of the Food 

20 Security Act of 1985 (16 U.S.C. 

21 3831(d)(2)) (as amended by section 2001). 

22 (B) MONTHLY PAYMENT RATE.— 

23 (i) IN GENERAL.—Except as provided 

24 in clause (ii), the payment rate for assist25 ance for 1 month under this paragraph 


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1 shall, in the case of drought, be equal to 

2 50 percent of the lesser of— 

3 (I) the monthly feed cost for all 

4 covered livestock owned or leased by 

5 the eligible livestock producer, as de6 termined under subparagraph (C); or 

7 (II) the monthly feed cost cal8 culated by using the normal carrying 

9 capacity of the eligible grazing land of 

10 the eligible livestock producer. 

11 (ii) PARTIAL COMPENSATION.—In the 

12 case of an eligible livestock producer that 

13 sold or otherwise disposed of covered live14 stock due to drought conditions in 1 or 

15 both of the 2 production years immediately 

16 preceding the current production year, as 

17 determined by the Secretary, the payment 

18 rate shall be 80 percent of the payment 

19 rate otherwise calculated in accordance 

20 with clause (i). 

21 (C) MONTHLY FEED COST.— 

22 (i) IN GENERAL.—The monthly feed 

23 cost shall equal the product obtained by 

24 multiplying— 

25 (I) 30 days; 


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1 (II) a payment quantity that is 

2 equal to the feed grain equivalent, as 

3 determined under clause (ii); and 

4 (III) a payment rate that is equal 

5 to the corn price per pound, as deter6 mined under clause (iii). 

7 (ii) FEED GRAIN EQUIVALENT.—For 

8 purposes of clause (i)(II), the feed grain 

9 equivalent shall equal— 

10 (I) in the case of an adult beef 

11 cow, 15.7 pounds of corn per day; or 

12 (II) in the case of any other type 

13 of weight of livestock, an amount de14 termined by the Secretary that rep15 resents the average number of pounds 

16 of corn per day necessary to feed the 

17 livestock. 

18 (iii) CORN PRICE PER POUND.—For 

19 purposes of clause (i)(III), the corn price 

20 per pound shall equal the quotient ob21 tained by dividing— 

22 (I) the lesser of— 

23 (aa) the national average 

24 corn price per bushel for the 12- 

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1 ceding March 1 of the year for 

2 which the disaster assistance is 

3 calculated; or 

4 (bb) the average national 

5 marketing year average corn 

6 price per bushel for the most re7 cent 5 crop years, excluding each 

8 of the crop years with the highest 

9 and lowest prices; by 

10 (II) 56. 

11 (D) NORMAL GRAZING PERIOD AND

12 DROUGHT MONITOR INTENSITY.— 

13 (i) FSA COUNTY COMMITTEE DETER14 MINATIONS.— 

15 (I) IN GENERAL.—The Secretary 

16 shall determine the normal carrying 

17 capacity and normal grazing period 

18 for each type of grazing land or 

19 pastureland in the county served by 

20 the applicable Farm Service Agency 

21 committee, except that the normal 

22 grazing period shall not exceed 240 

23 days. 

24 (II) CHANGES.—No change to 

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1 mal grazing period established for a 

2 county under subclause (I) shall be 

3 made unless the change is requested 

4 by the appropriate State and county 

5 Farm Service Agency committees. 

6 (ii) DROUGHT INTENSITY.— 

7 (I) D2.—An eligible livestock 

8 producer that owns or leases grazing 

9 land or pastureland that is physically 

10 located in a county that is rated by 

11 the U.S. Drought Monitor as having a 

12 D2 (severe drought) intensity in any 

13 area of the county for at least 8 con14 secutive weeks during the normal 

15 grazing period for the county, as de16 termined by the Secretary, shall be el17 igible to receive assistance under this 

18 paragraph in an amount equal to 1 

19 monthly payment using the monthly 

20 payment rate determined under sub21 paragraph (B). 

22 (II) D3.—An eligible livestock 

23 producer that owns or leases grazing 

24 land or pastureland that is physically 

25 located in a county that is rated by 


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1 the U.S. Drought Monitor as having 

2 at least a D3 (extreme drought) in3 tensity in any area of the county at 

4 any time during the normal grazing 

5 period for the county, as determined 

6 by the Secretary, shall be eligible to 

7 receive assistance under this para8 graph— 

9 (aa) in an amount equal to 

10 2 monthly payments using the 

11 monthly payment rate deter12 mined under subparagraph (B); 

13 or 

14 (bb) if the county is rated as 

15 having a D3 (extreme drought) 

16 intensity in any area of the coun17 ty for at least 4 weeks during the 

18 normal grazing period for the 

19 county, or is rated as having a 

20 D4 (exceptional drought) inten21 sity in any area of the county at 

22 any time during the normal graz23 ing period, in an amount equal to 

24 3 monthly payments using the 


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1 monthly payment rate deter2 mined under subparagraph (B). 

3 (iii) ANNUAL PAYMENT BASED ON

4 DROUGHT CONDITIONS DETERMINED BY

5 MEANS OTHER THAN THE U.S. DROUGHT

6 MONITOR.— 

7 (I) IN GENERAL.—An eligible 

8 livestock producer that owns grazing 

9 land or pastureland that is physically 

10 located in a county that has experi11 enced on average, over the preceding 

12 calendar year, precipitation levels that 

13 are 50 percent or more below normal 

14 levels, according to sufficient docu15 mentation as determined by the Sec16 retary, may be eligible, subject to a 

17 determination by the Secretary, to re18 ceive assistance under this paragraph 

19 in an amount equal to not more than 

20 1 monthly payment using the monthly 

21 payment rate under subparagraph 

22 (B). 

23 (II) NO DUPLICATE PAYMENT.— 

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1 ment under both clause (ii) and this 

2 clause. 

3 (5) ASSISTANCE FOR LOSSES DUE TO FIRE ON

4 PUBLIC MANAGED LAND.— 

5 (A) IN GENERAL.—An eligible livestock 

6 producer may receive assistance under this 

7 paragraph only if— 

8 (i) the eligible forage losses occur on 

9 rangeland that is managed by a Federal 

10 agency; and 

11 (ii) the eligible livestock producer is 

12 prohibited by the Federal agency from 

13 grazing the normal permitted livestock on 

14 the managed rangeland due to a fire. 

15 (B) PAYMENT RATE.—The payment rate 

16 for assistance under this paragraph shall be 

17 equal to 50 percent of the monthly feed cost for 

18 the total number of livestock covered by the 

19 Federal lease of the eligible livestock producer, 

20 as determined under paragraph (4)(C). 

21 (C) PAYMENT DURATION.— 

22 (i) IN GENERAL.—Subject to clause 

23 (ii), an eligible livestock producer shall be 

24 eligible to receive assistance under this 

25 paragraph for the period— 


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1 (I) beginning on the date on 

2 which the Federal agency excludes the 

3 eligible livestock producer from using 

4 the managed rangeland for grazing; 

5 and 

6 (II) ending on the last day of the 

7 Federal lease of the eligible livestock 

8 producer. 

9 (ii) LIMITATION.—An eligible livestock 

10 producer may only receive assistance under 

11 this paragraph for losses that occur on not 

12 more than 180 days per year. 

13 (6) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES

14 DUE TO OTHER THAN DROUGHT OR FIRE.— 

15 (A) ELIGIBLE FORAGE LOSSES.— 

16 (i) IN GENERAL.—Subject to subpara17 graph (B), an eligible livestock producer of 

18 covered livestock may receive assistance 

19 under this paragraph for eligible forage 

20 losses that occur due to weather-related 

21 conditions other than drought or fire on 

22 land that— 

23 (I) is native or improved 

24 pastureland with permanent vegeta25 tive cover; or 


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1 (II) is planted to a crop planted 

2 specifically for the purpose of pro3 viding grazing for covered livestock. 

4 (ii) EXCLUSIONS.—An eligible live5 stock producer may not receive assistance 

6 under this paragraph for eligible forage 

7 losses that occur on land used for haying 

8 or grazing under the conservation reserve 

9 program established under subchapter B of 

10 chapter 1 of subtitle D of title XII of the 

11 Food Security Act of 1985 (16 U.S.C. 

12 3831 et seq.), unless the land is grassland 

13 eligible for the conservation reserve pro14 gram under section 1231(d)(2) of the Food 

15 Security Act of 1985 (16 U.S.C. 

16 3831(d)(2)) (as amended by section 2001). 

17 (B) PAYMENTS FOR ELIGIBLE FORAGE

18 LOSSES.— 

19 (i) IN GENERAL.—The Secretary shall 

20 provide assistance under this paragraph to 

21 an eligible livestock producer for eligible 

22 forage losses that occur due to weather-re23 lated conditions other than— 

24 (I) drought under paragraph (4); 

25 and 


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1 (II) fire on public managed land 

2 under paragraph (5). 

3 (ii) TERMS AND CONDITIONS.—The 

4 Secretary shall establish terms and condi5 tions for assistance under this paragraph 

6 that are consistent with the terms and con7 ditions for assistance under this sub8 section. 

9 (7) NO DUPLICATIVE PAYMENTS.—An eligible 

10 livestock producer may elect to receive assistance for 

11 eligible forage losses under either paragraph (4), (5), 

12 or (6), if applicable, but may not receive assistance 

13 under more than 1 of those paragraphs for the same 

14 loss, as determined by the Secretary. 

15 (8) DETERMINATIONS BY SECRETARY.—A de16 termination made by the Secretary under this sub17 section shall be final and conclusive. 

18 (d) EMERGENCY ASSISTANCE FOR LIVESTOCK, 

19 HONEY BEES, AND FARM-RAISED FISH.— 

20 (1) IN GENERAL.—For each of fiscal years 

21 2012 through 2018, the Secretary shall use not 

22 more than $15,000,000 of the funds of the Com23 modity Credit Corporation to provide emergency re24 lief to eligible producers of livestock, honey bees, and 

25 farm-raised fish to aid in the reduction of losses due 


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1 to disease, adverse weather, or other conditions, such 

2 as blizzards and wildfires, as determined by the Sec3 retary, that are not covered under subsection (b) or 

4 (c). 

5 (2) USE OF FUNDS.—Funds made available 

6 under this subsection shall be used to reduce losses 

7 caused by feed or water shortages, disease, or other 

8 factors as determined by the Secretary. 

9 (3) AVAILABILITY OF FUNDS.—Any funds made 

10 available under this subsection shall remain available 

11 until expended. 

12 (e) TREE ASSISTANCE PROGRAM.— 

13 (1) DEFINITIONS.—In this subsection: 

14 (A) ELIGIBLE ORCHARDIST.—The term 

15 ‘‘eligible orchardist’’ means a person that pro16 duces annual crops from trees for commercial 

17 purposes. 

18 (B) NATURAL DISASTER.—The term ‘‘nat19 ural disaster’’ means plant disease, insect infes20 tation, drought, fire, freeze, flood, earthquake, 

21 lightning, or other occurrence, as determined by 

22 the Secretary. 

23 (C) NURSERY TREE GROWER.—The term 

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1 mas trees for commercial sale, as determined by 

2 the Secretary. 

3 (D) TREE.—The term ‘‘tree’’ includes a 

4 tree, bush, and vine. 

5 (2) ELIGIBILITY.— 

6 (A) LOSS.—Subject to subparagraph (B), 

7 for each of fiscal years 2012 through 2018, the 

8 Secretary shall use such sums as are necessary 

9 of the funds of the Commodity Credit Corpora10 tion to provide assistance— 

11 (i) under paragraph (3) to eligible or12 chardists and nursery tree growers that 

13 planted trees for commercial purposes but 

14 lost the trees as a result of a natural dis15 aster, as determined by the Secretary; and 

16 (ii) under paragraph (3)(B) to eligible 

17 orchardists and nursery tree growers that 

18 have a production history for commercial 

19 purposes on planted or existing trees but 

20 lost the trees as a result of a natural dis21 aster, as determined by the Secretary. 

22 (B) LIMITATION.—An eligible orchardist 

23 or nursery tree grower shall qualify for assist24 ance under subparagraph (A) only if the tree 

25 mortality of the eligible orchardist or nursery 


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1 tree grower, as a result of damaging weather or 

2 related condition, exceeds 15 percent (adjusted 

3 for normal mortality). 

4 (3) ASSISTANCE.—Subject to paragraph (4), 

5 the assistance provided by the Secretary to eligible 

6 orchardists and nursery tree growers for losses de7 scribed in paragraph (2) shall consist of— 

8 (A)(i) reimbursement of 65 percent of the 

9 cost of replanting trees lost due to a natural 

10 disaster, as determined by the Secretary, in ex11 cess of 15 percent mortality (adjusted for nor12 mal mortality); or 

13 (ii) at the option of the Secretary, suffi14 cient seedlings to reestablish a stand; and 

15 (B) reimbursement of 50 percent of the 

16 cost of pruning, removal, and other costs in17 curred by an eligible orchardist or nursery tree 

18 grower to salvage existing trees or, in the case 

19 of tree mortality, to prepare the land to replant 

20 trees as a result of damage or tree mortality 

21 due to a natural disaster, as determined by the 

22 Secretary, in excess of 15 percent damage or 

23 mortality (adjusted for normal tree damage and 

24 mortality). 

25 (4) LIMITATIONS ON ASSISTANCE.— 


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1 (A) DEFINITIONS OF LEGAL ENTITY AND

2 PERSON.—In this paragraph, the terms ‘‘legal 

3 entity’’ and ‘‘person’’ have the meaning given 

4 those terms in section 1001(a) of the Food Se5 curity Act of 1985 (7 U.S.C. 1308(a)). 

6 (B) AMOUNT.—The total amount of pay7 ments received, directly or indirectly, by a per8 son or legal entity (excluding a joint venture or 

9 general partnership) under this subsection may 

10 not exceed $100,000 for any crop year, or an 

11 equivalent value in tree seedlings. 

12 (C) ACRES.—The total quantity of acres 

13 planted to trees or tree seedlings for which a 

14 person or legal entity shall be entitled to receive 

15 payments under this subsection may not exceed 

16 500 acres. 

17 (f) PAYMENTS.— 

18 (1) PAYMENT LIMITATIONS.— 

19 (A) DEFINITIONS OF LEGAL ENTITY AND

20 PERSON.—In this subsection, the terms ‘‘legal 

21 entity’’ and ‘‘person’’ have the meanings given 

22 those terms in section 1001(a) of the Food Se23 curity Act of 1985 (7 U.S.C. 1308(a)). 

24 (B) AMOUNT.—The total amount of dis25 aster assistance payments received, directly or 


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1 indirectly, by a person or legal entity (excluding 

2 a joint venture or general partnership) under 

3 this section (excluding payments received under 

4 subsection (e)) may not exceed $100,000 for 

5 any crop year. 

6 (C) DIRECT ATTRIBUTION.—Subsections 

7 (d) and (e) of section 1001 of the Food Secu8 rity Act of 1985 (7 U.S.C. 1308) or any suc9 cessor provisions relating to direct attribution 

10 shall apply with respect to assistance provided 

11 under this section. 

12 (2) PAYMENT DELIVERY.—The Secretary shall 

13 make payments under this section after October 1, 

14 2013, for losses incurred in the 2012 and 2013 fis15 cal years, and as soon as practicable for losses in16 curred in any year thereafter. 

17 Subtitle F—Administration 

18 SEC. 1601. ADMINISTRATION GENERALLY. 

19 (a) USE OF COMMODITY CREDIT CORPORATION.— 

20 The Secretary shall use the funds, facilities, and authori21 ties of the Commodity Credit Corporation to carry out this 

22 title. 

23 (b) DETERMINATIONS BY SECRETARY.—A deter24 mination made by the Secretary under this title shall be 

25 final and conclusive. 


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1 (c) REGULATIONS.— 

2 (1) IN GENERAL.—Except as otherwise pro3 vided in this subsection, not later than 90 days after 

4 the date of enactment of this Act, the Secretary and 

5 the Commodity Credit Corporation, as appropriate, 

6 shall promulgate such regulations as are necessary 

7 to implement this title and the amendments made by 

8 this title. 

9 (2) PROCEDURE.—The promulgation of the reg10 ulations and administration of this title and the 

11 amendments made by this title and sections 11001 

12 and 11012 shall be made without regard to— 

13 (A) the notice and comment provisions of 

14 section 553 of title 5, United States Code; 

15 (B) chapter 35 of title 44, United States 

16 Code (commonly known as the ‘‘Paperwork Re17 duction Act’’); and 

18 (C) the Statement of Policy of the Sec19 retary of Agriculture effective July 24, 1971 

20 (36 Fed. Reg. 13804), relating to notices of 

21 proposed rulemaking and public participation in 

22 rulemaking. 

23 (3) CONGRESSIONAL REVIEW OF AGENCY RULE24 MAKING.—In carrying out this subsection, the SecVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 retary shall use the authority provided under section 

2 808 of title 5, United States Code. 

3 (d) ADJUSTMENT AUTHORITY RELATED TO TRADE

4 AGREEMENTS COMPLIANCE.— 

5 (1) REQUIRED DETERMINATION; ADJUST6 MENT.—If the Secretary determines that expendi7 tures under this title that are subject to the total al8 lowable domestic support levels under the Uruguay 

9 Round Agreements (as defined in section 2 of the 

10 Uruguay Round Agreements Act (19 U.S.C. 3501)) 

11 will exceed the allowable levels for any applicable re12 porting period, the Secretary shall, to the maximum 

13 extent practicable, make adjustments in the amount 

14 of the expenditures during that period to ensure that 

15 the expenditures do not exceed the allowable levels. 

16 (2) CONGRESSIONAL NOTIFICATION.—Before 

17 making any adjustment under paragraph (1), the 

18 Secretary shall submit to the Committee on Agri19 culture of the House of Representatives and the 

20 Committee on Agriculture, Nutrition, and Forestry 

21 of the Senate a report describing the determination 

22 made under that paragraph and the extent of the 

23 adjustment to be made. 


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1 SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT 

2 AUTHORITY. 

3 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.— 

4 The following provisions of the Agricultural Adjustment 

5 Act of 1938 shall not be applicable to the 2014 through 

6 2018 crops of covered commodities (as defined in section 

7 1104), cotton, and sugar and shall not be applicable to 

8 milk during the period beginning on the date of enactment 

9 of this Act through December 31, 2018: 

10 (1) Parts II through V of subtitle B of title III 

11 (7 U.S.C. 1326 et seq.). 

12 (2) In the case of upland cotton, section 377 (7 

13 U.S.C. 1377). 

14 (3) Subtitle D of title III (7 U.S.C. 1379a et 

15 seq.). 

16 (4) Title IV (7 U.S.C. 1401 et seq.). 

17 (b) AGRICULTURAL ACT OF 1949.—The following 

18 provisions of the Agricultural Act of 1949 shall not be ap19 plicable to the 2014 through 2018 crops of covered com20 modities (as defined in section 1104), cotton, and sugar 

21 and shall not be applicable to milk during the period be22 ginning on the date of enactment of this Act and through 

23 December 31, 2018: 

24 (1) Section 101 (7 U.S.C. 1441). 

25 (2) Section 103(a) (7 U.S.C. 1444(a)). 

26 (3) Section 105 (7 U.S.C. 1444b). 


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1 (4) Section 107 (7 U.S.C. 1445a). 

2 (5) Section 110 (7 U.S.C. 1445e). 

3 (6) Section 112 (7 U.S.C. 1445g). 

4 (7) Section 115 (7 U.S.C. 1445k). 

5 (8) Section 201 (7 U.S.C. 1446). 

6 (9) Title III (7 U.S.C. 1447 et seq.). 

7 (10) Title IV (7 U.S.C. 1421 et seq.), other 

8 than sections 404, 412, and 416 (7 U.S.C. 1424, 

9 1429, and 1431). 

10 (11) Title V (7 U.S.C. 1461 et seq.). 

11 (12) Title VI (7 U.S.C. 1471 et seq.). 

12 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 

13 The joint resolution entitled ‘‘A joint resolution relating 

14 to corn and wheat marketing quotas under the Agricul15 tural Adjustment Act of 1938, as amended’’, approved 

16 May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be 

17 applicable to the crops of wheat planted for harvest in the 

18 calendar years 2014 through 2018. 

19 SEC. 1603. PAYMENT LIMITATIONS. 

20 (a) IN GENERAL.—Section 1001 of the Food Security 

21 Act of 1985 (7 U.S.C. 1308) is amended by striking sub22 sections (b) and (c) and inserting the following: 

23 ‘‘(b) LIMITATION ON PAYMENTS FOR PEANUTS AND

24 OTHER COVERED COMMODITIES.—The total amount of 

25 payments received, directly or indirectly, by a person or 


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1 legal entity (except a joint venture or general partnership) 

2 for any crop year under subtitle A of title I of the Agri3 culture Reform, Food, and Jobs Act of 2013 for— 

4 ‘‘(1) peanuts may not exceed $50,000; and 

5 ‘‘(2) 1 or more other covered commodities may 

6 not exceed $50,000.’’. 

7 (b) LIMITATION ON MARKETING LOAN GAINS AND

8 LOAN DEFICIENCY PAYMENTS FOR PEANUTS AND OTHER

9 LOAN COMMODITIES.—Section 1001 of the Food Security 

10 Act of 1985 (7 U.S.C. 1308) is amended by striking sub11 section (d) and inserting the following: 

12 ‘‘(d) LIMITATION ON MARKETING LOAN GAINS AND

13 LOAN DEFICIENCY PAYMENTS FOR PEANUTS AND OTHER

14 LOAN COMMODITIES.—The total amount of marketing 

15 loan gains and loan deficiency payments received, directly 

16 or indirectly, by a person or legal entity (except a joint 

17 venture or general partnership) for any crop year under 

18 subtitle B of the Agriculture Reform, Food, and Jobs Act 

19 of 2013 (or a successor provision) for— 

20 ‘‘(1) peanuts may not exceed $75,000; and 

21 ‘‘(2) 1 or more other loan commodities may not 

22 exceed $75,000.’’. 

23 (c) CONFORMING AMENDMENTS.— 

24 (1) Section 1001 of the Food Security Act of 

25 1985 (7 U.S.C. 1308) is amended— 


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1 (A) in subsection (a)(1), by striking ‘‘sec2 tion 1001 of the Food, Conservation, and En3 ergy Act of 2008’’ and inserting ‘‘section 1104 

4 of the Agriculture Reform, Food, and Jobs Act 

5 of 2013’’; 

6 (B) in subsection (e)— 

7 (i) in paragraph (1), by striking ‘‘sub8 sections (b) and (c) and a program de9 scribed in paragraphs (1)(C)’’ and insert10 ing ‘‘subsection (b) and a program de11 scribed in paragraph (1)(B)’’; and 

12 (ii) in paragraph (3)(B), by striking 

13 ‘‘subsections (b) and (c)’’ each place it ap14 pears and inserting ‘‘subsection (b)’’; 

15 (C) in subsection (f)— 

16 (i) by striking ‘‘or title XII’’ each 

17 place it appears in paragraphs (5)(A) and 

18 (6)(A) and inserting ‘‘, title I of the Agri19 culture Reform, Food, and Jobs Act of 

20 2013, or title XII’’; 

21 (ii) in paragraph (2), by striking 

22 ‘‘Subsections (b) and (c)’’ and inserting 

23 ‘‘Subsection (b)’’; 


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1 (iii) in paragraph (4)(B), by striking 

2 ‘‘subsection (b) or (c)’’ and inserting ‘‘sub3 section (b)’’; 

4 (iv) in paragraph (5)— 

5 (I) in subparagraph (A), by strik6 ing ‘‘subsection (d)’’ and inserting 

7 ‘‘subsection (c)’’; and 

8 (II) in subparagraph (B), by 

9 striking ‘‘subsection (b), (c), or (d)’’ 

10 and inserting ‘‘subsection (b) or (c)’’; 

11 and 

12 (v) in paragraph (6)— 

13 (I) in subparagraph (A), by strik14 ing ‘‘subsection (d), except as pro15 vided in subsection (g)’’ and inserting 

16 ‘‘subsection (c), except as provided in 

17 subsection (f)’’; and 

18 (II) in subparagraph (B), by 

19 striking ‘‘subsections (b), (c), and 

20 (d)’’ and inserting ‘‘subsections (b) 

21 and (c)’’; 

22 (D) in subsection (g)— 

23 (i) in paragraph (1)— 


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1 (I) by striking ‘‘subsection 

2 (f)(6)(A)’’ and inserting ‘‘subsection 

3 (e)(6)(A)’’ and 

4 (II) by striking ‘‘subsection (b) 

5 or (c)’’ and inserting ‘‘subsection (b)’’; 

6 and 

7 (ii) in paragraph (2)(A), by striking 

8 ‘‘subsections (b) and (c)’’ and inserting 

9 ‘‘subsection (b)’’; and 

10 (E) by redesignating subsections (d) 

11 through (h) as subsections (c) through (g), re12 spectively. 

13 (2) Section 1001A of the Food Security Act of 

14 1985 (7 U.S.C. 1308–1) is amended— 

15 (A) in subsection (a), by striking ‘‘sub16 sections (b) and (c)’’ and inserting ‘‘subsection 

17 (b)’’; and 

18 (B) in subsection (b)(1), by striking ‘‘sub19 section (b) or (c)’’ and inserting ‘‘subsection 

20 (b)’’. 

21 (3) Section 1001B(a) of the Food Security Act 

22 of 1985 (7 U.S.C. 1308–2(a)) is amended in the 

23 matter preceding paragraph (1) by striking ‘‘sub24 sections (b) and (c)’’ and inserting ‘‘subsection (b)’’. 


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1 (4) Section 1001C(a) of the Food Security Act 

2 of 1985 (7 U.S.C. 1308–3(a)) is amended by insert3 ing ‘‘title I of the Agriculture Reform, Food, and 

4 Jobs Act of 2013,’’ after ‘‘2008,’’. 

5 (d) APPLICATION.—The amendments made by this 

6 section shall apply beginning with the 2014 crop year. 

7 SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS. 

8 Section 1001A of the Food Security Act of 1985 (7 

9 U.S.C. 1308–1) is amended— 

10 (1) in subsection (b)(2)— 

11 (A) by striking ‘‘or active personal man12 agement’’ each place it appears in subpara13 graphs (A)(i)(II) and (B)(ii); and 

14 (B) in subparagraph (C), by striking ‘‘, as 

15 applied to the legal entity, are met by the legal 

16 entity, the partners or members making a sig17 nificant contribution of personal labor or active 

18 personal management’’ and inserting ‘‘are met 

19 by partners or members making a significant 

20 contribution of personal labor, those partners or 

21 members’’; and 

22 (2) in subsection (c)— 

23 (A) in paragraph (1)— 

24 (i) by striking subparagraph (A) and 

25 inserting the following: 


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1 ‘‘(A) the landowner share-rents the land at 

2 a rate that is usual and customary;’’; 

3 (ii) in subparagraph (B), by striking 

4 the period at the end and inserting ‘‘; 

5 and’’; and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(C) the share of the payments received by 

9 the landowner is commensurate with the share 

10 of the crop or income received as rent.’’; 

11 (B) in paragraph (2)(A), by striking ‘‘ac12 tive personal management or’’; 

13 (C) in paragraph (5)— 

14 (i) by striking ‘‘(5)’’ and all that fol15 lows through ‘‘(A) IN GENERAL.—A per16 son’’ and inserting the following: 

17 ‘‘(5) CUSTOM FARMING SERVICES.—A person’’; 

18 (ii) by inserting ‘‘under usual and 

19 customary terms’’ after ‘‘services’’; and 

20 (iii) by striking subparagraph (B); 

21 and 

22 (D) by adding at the end the following: 

23 ‘‘(7) FARM MANAGERS.—A person who other24 wise meets the requirements of this subsection other 

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1 tively engaged in farming, as determined by the Sec2 retary, with respect to the farming operation, includ3 ing a farming operation that is a sole proprietorship, 

4 a legal entity such as a joint venture or general 

5 partnership, or a legal entity such as a corporation 

6 or limited partnership, if the person— 

7 ‘‘(A) makes a significant contribution of 

8 management to the farming operation necessary 

9 for the farming operation, taking into ac10 count— 

11 ‘‘(i) the size and complexity of the 

12 farming operation; and 

13 ‘‘(ii) the management requirements 

14 normally and customarily required by simi15 lar farming operations; 

16 ‘‘(B) is the only person in the farming op17 eration qualifying as actively engaged in farm18 ing; 

19 ‘‘(C) does not use the management con20 tribution under this paragraph to qualify as ac21 tively engaged in more than 1 farming oper22 ation; and 

23 ‘‘(D) manages a farm operation that does 

24 not substantially share equipment, labor, or 

25 management with persons or legal entities that 


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1 with the person collectively receive, directly or 

2 indirectly, an amount equal to more than the 

3 applicable limits under section 1001(b).’’. 

4 SEC. 1605. ADJUSTED GROSS INCOME LIMITATION. 

5 (a) IN GENERAL.—Section 1001D(b)) of the Food 

6 Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended 

7 by striking paragraph (1) and inserting the following: 

8 ‘‘(1) COMMODITY PROGRAMS.— 

9 ‘‘(A) LIMITATION.—Notwithstanding any 

10 other provision of law, a person or legal entity 

11 shall not be eligible to receive any benefit de12 scribed in subparagraph (B) during a crop, fis13 cal or program year, as appropriate, if the aver14 age adjusted gross income (or comparable 

15 measure over the 3 taxable years preceding the 

16 most immediately preceding complete taxable 

17 year, as determined by the Secretary) of the 

18 person or legal entity exceeds $750,000. 

19 ‘‘(B) COVERED BENEFITS.—Subparagraph 

20 (A) applies with respect to the following: 

21 ‘‘(i) A payment under section 1107 or 

22 1108 of the Agriculture Reform, Food, and 

23 Jobs Act of 2013. 

24 ‘‘(ii) A marketing loan gain or loan 

25 deficiency payment under subtitle B of title 


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1 I of the Agriculture Reform, Food, and 

2 Jobs Act of 2013. 

3 ‘‘(iii) A payment under subtitle E of 

4 the Agriculture Reform, Food, and Jobs 

5 Act of 2013. 

6 ‘‘(iv) A payment under section 196 of 

7 the Federal Agriculture Improvement and 

8 Reform Act of 1996 (7 U.S.C. 7333).’’. 

9 (b) APPLICATION.—The amendments made by this 

10 section shall apply beginning with the 2014 crop year. 

11 SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS 

12 AND RANCHERS. 

13 Section 1621(d) of the Food, Conservation, and En14 ergy Act of 2008 (7 U.S.C. 8792(d)) is amended by strik15 ing ‘‘2012’’ and inserting ‘‘2018’’. 

16 SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFI17 CIENCIES. 

18 Section 164 of the Federal Agriculture Improvement 

19 and Reform Act of 1996 (7 U.S.C. 7284) is amended by 

20 striking ‘‘and title I of the Food, Conservation, and En21 ergy Act of 2008’’ each place it appears and inserting 

22 ‘‘title I of the Food, Conservation, and Energy Act of 

23 2008 (7 U.S.C. 8702 et seq.), and title I of the Agriculture 

24 Reform, Food, and Jobs Act of 2013’’. 


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1 SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RE2 CEIVING PAYMENTS UNDER FARM COM3 MODITY PROGRAMS. 

4 (a) RECONCILIATION.—At least twice each year, the 

5 Secretary shall reconcile social security numbers of all in6 dividuals who receive payments under this title, whether 

7 directly or indirectly, with the Commissioner of Social Se8 curity to determine if the individuals are alive. 

9 (b) PRECLUSION.—The Secretary shall preclude the 

10 issuance of payments to, and on behalf of, deceased indi11 viduals that were not eligible for payments. 

12 SEC. 1609. APPEALS. 

13 (a) DIRECTION, CONTROL, AND SUPPORT.—Section 

14 272 of the Department of Agriculture Reorganization Act 

15 of 1994 (7 U.S.C. 6992) is amended by striking sub16 section (c) and inserting the following: 

17 ‘‘(c) DIRECTION, CONTROL, AND SUPPORT.— 

18 ‘‘(1) DIRECTION AND CONTROL.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 paragraph (2), the Director shall be free from 

21 the direction and control of any person other 

22 than the Secretary or the Deputy Secretary of 

23 Agriculture. 

24 ‘‘(B) ADMINISTRATIVE SUPPORT.—The Di25 vision shall not receive administrative support 


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1 (except on a reimbursable basis) from any agen2 cy other than the Office of the Secretary. 

3 ‘‘(C) PROHIBITION ON DELEGATION.—The 

4 Secretary may not delegate to any other officer 

5 or employee of the Department, other than the 

6 Deputy Secretary of Agriculture or the Direc7 tor, the authority of the Secretary with respect 

8 to the Division. 

9 ‘‘(2) EXCEPTION.—The Assistant Secretary for 

10 Administration is authorized to investigate, enforce, 

11 and implement the provisions in law, Executive 

12 order, or regulations that relate in general to com13 petitive and excepted service positions and employ14 ment within the Division, including the position of 

15 Director, and such authority may be further dele16 gated to subordinate officials.’’. 

17 (b) CONFORMING AMENDMENT.—Section 296(b) of 

18 the Department of Agriculture Reorganization Act of 

19 1994 (7 U.S.C. 7014(b)) is amended— 

20 (1) in the matter preceding paragraph (1) by 

21 striking ‘‘affect—’’ and inserting ‘‘affect:’’; 

22 (2) by striking ‘‘the authority’’ each place it ap23 pears in paragraphs (1) through (7) and inserting 

24 ‘‘The authority’’; 


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1 (3) by striking the semicolon at the end of each 

2 of paragraphs (1) through (5) and inserting a pe3 riod; 

4 (4) in paragraph (6)(C), by striking ‘‘; or’’ at 

5 the end and inserting a period; and 

6 (5) by adding at the end the following: 

7 ‘‘(8) The authority of the Secretary to carry out 

8 amendments made by the Agriculture Reform, Food, 

9 and Jobs Act of 2013.’’. 

10 SEC. 1610. TECHNICAL CORRECTIONS. 

11 (a) Section 359f(c)(1)(B) of the Agricultural Adjust12 ment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended 

13 by adding a period at the end. 

14 (b)(1) Section 1603(g) of the Food, Conservation, 

15 and Energy Act of 2008 (Public Law 110–246; 122 Stat. 

16 1739) is amended in paragraphs (2) through (6) and the 

17 amendments made by those paragraphs by striking 

18 ‘‘1703(a)’’ each place it appears and inserting ‘‘1603(a)’’. 

19 (2) This subsection and the amendments made by 

20 this subsection take effect as if included in the Food, Con21 servation, and Energy Act of 2008 (Public Law 110–246; 

22 122 Stat. 1651). 

23 SEC. 1611. ASSIGNMENT OF PAYMENTS. 

24 (a) IN GENERAL.—The provisions of section 8(g) of 

25 the Soil Conservation and Domestic Allotment Act (16 


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1 U.S.C. 590h(g)), relating to assignment of payments, shall 

2 apply to payments made under this title. 

3 (b) NOTICE.—The producer making the assignment, 

4 or the assignee, shall provide the Secretary with notice, 

5 in such manner as the Secretary may require, of any as6 signment made under this section. 

7 SEC. 1612. TRACKING OF BENEFITS. 

8 As soon as practicable after the date of enactment 

9 of this Act, the Secretary may track the benefits provided, 

10 directly or indirectly, to individuals and entities under ti11 tles I and II and the amendments made by those titles. 

12 SEC. 1613. SIGNATURE AUTHORITY. 

13 (a) IN GENERAL.—In carrying out this title and title 

14 II and amendments made by those titles, if the Secretary 

15 approves a document, the Secretary shall not subsequently 

16 determine the document is inadequate or invalid because 

17 of the lack of authority of any person signing the docu18 ment on behalf of the applicant or any other individual, 

19 entity, general partnership, or joint venture, or the docu20 ments relied upon were determined inadequate or invalid, 

21 unless the person signing the program document know22 ingly and willfully falsified the evidence of signature au23 thority or a signature. 

24 (b) AFFIRMATION.— 


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1 (1) IN GENERAL.—Nothing in this section pro2 hibits the Secretary from asking a proper party to 

3 affirm any document that otherwise would be consid4 ered approved under subsection (a). 

5 (2) NO RETROACTIVE EFFECT.—A denial of 

6 benefits based on a lack of affirmation under para7 graph (1) shall not be retroactive with respect to 

8 third-party producers who were not the subject of 

9 the erroneous representation of authority, if the 

10 third-party producers— 

11 (A) relied on the prior approval by the Sec12 retary of the documents in good faith; and 

13 (B) substantively complied with all pro14 gram requirements. 

15 SEC. 1614. IMPLEMENTATION. 

16 (a) STREAMLINING.—In implementing this title, the 

17 Secretary shall, to the maximum extent practicable— 

18 (1) seek to reduce administrative burdens and 

19 costs to producers by streamlining and reducing pa20 perwork, forms, and other administrative require21 ments; 

22 (2) improve coordination, information sharing, 

23 and administrative work with the Risk Management 

24 Agency and the Natural Resources Conservation 

25 Service; and 


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1 (3) take advantage of new technologies to en2 hance efficiency and effectiveness of program deliv3 ery to producers. 

4 (b) IMPLEMENTATION.—On October 1, 2013, the 

5 Secretary shall make available to the Farm Service Agency 

6 to carry out this title $97,000,000. 

7 TITLE II—CONSERVATION 

8 Subtitle A—Conservation Reserve 

9 Program 

10 SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS 

11 OF CONSERVATION RESERVE PROGRAM. 

12 (a) EXTENSION.—Section 1231(a) of the Food Secu13 rity Act of 1985 (16 U.S.C. 3831(a)) is amended by strik14 ing ‘‘2012’’ and inserting ‘‘2018’’. 

15 (b) ELIGIBLE LAND.—Section 1231(b) of the Food 

16 Security Act of 1985 (16 U.S.C. 3831(b)) is amended— 

17 (1) in paragraph (1)(B), by striking ‘‘the date 

18 of enactment of the Food, Conservation, and Energy 

19 Act of 2008’’ and inserting ‘‘the date of enactment 

20 of the Agriculture Reform, Food, and Jobs Act of 

21 2013’’; 

22 (2) by striking paragraph (2) and redesignating 

23 paragraph (3) as paragraph (2); 

24 (3) by inserting before paragraph (4) the fol25 lowing: 


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1 ‘‘(3) grassland that— 

2 ‘‘(A) contains forbs or shrubland (includ3 ing improved rangeland and pastureland) for 

4 which grazing is the predominant use; 

5 ‘‘(B) is located in an area historically 

6 dominated by grassland; and 

7 ‘‘(C) could provide habitat for animal and 

8 plant populations of significant ecological value 

9 if the land is retained in its current use or re10 stored to a natural condition;’’; 

11 (4) in paragraph (4)(C), by striking 

12 ‘‘filterstrips devoted to trees or shrubs’’ and insert13 ing ‘‘filterstrips and riparian buffers devoted to 

14 trees, shrubs, or grasses’’; and 

15 (5) by striking paragraph (5) and inserting the 

16 following: 

17 ‘‘(5) the portion of land in a field not enrolled 

18 in the conservation reserve in a case in which— 

19 ‘‘(A) more than 50 percent of the land in 

20 the field is enrolled as a buffer or filterstrip or 

21 more than 75 percent of the land in the field 

22 is enrolled in a practice other than as a buffer 

23 or filterstrip; and 

24 ‘‘(B) the remainder of the field is— 

25 ‘‘(i) infeasible to farm; and 


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1 ‘‘(ii) enrolled at regular rental rates.’’. 

2 (c) PLANTING STATUS OF CERTAIN LAND.—Section 

3 1231(c) of the Food Security Act of 1985 (16 U.S.C. 

4 3831(c)) is amended by striking ‘‘if’’ and all that follows 

5 through the period at the end and inserting ‘‘if, during 

6 the crop year, the land was devoted to a conserving use.’’. 

7 (d) ENROLLMENT.—Section 1231 of the Food Secu8 rity Act of 1985 (16 U.S.C. 3831) is amended by striking 

9 subsection (d) and inserting the following: 

10 ‘‘(d) ENROLLMENT.— 

11 ‘‘(1) MAXIMUM ACREAGE ENROLLED.—The 

12 Secretary may maintain in the conservation reserve 

13 at any 1 time during— 

14 ‘‘(A) fiscal year 2014, no more than 

15 30,000,000 acres; 

16 ‘‘(B) fiscal year 2015, no more than 

17 27,500,000 acres; 

18 ‘‘(C) fiscal year 2016, no more than 

19 26,500,000 acres; 

20 ‘‘(D) fiscal year 2017, no more than 

21 25,500,000 acres; and 

22 ‘‘(E) fiscal year 2018, no more than 

23 25,000,000 acres. 

24 ‘‘(2) GRASSLAND.— 


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1 ‘‘(A) LIMITATION.—For purposes of apply2 ing the limitations in paragraph (1), no more 

3 than 1,500,000 acres of the land described in 

4 subsection (b)(3) may be enrolled in the pro5 gram at any 1 time during the 2014 through 

6 2018 fiscal years. 

7 ‘‘(B) PRIORITY.—In enrolling acres under 

8 subparagraph (A), the Secretary may give pri9 ority to land with expiring conservation reserve 

10 program contracts. 

11 ‘‘(C) METHOD OF ENROLLMENT.—In en12 rolling acres under subparagraph (A), the Sec13 retary shall make the program available to own14 ers or operators of eligible land at least once 

15 during each fiscal year.’’. 

16 (e) DURATION OF CONTRACT.—Section 1231(e) of 

17 the Food Security Act of 1985 (16 U.S.C. 3831(e)) is 

18 amended by striking paragraphs (2) and (3) and inserting 

19 the following: 

20 ‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In 

21 the case of land devoted to hardwood trees, 

22 shelterbelts, windbreaks, or wildlife corridors under 

23 a contract entered into under this subchapter, the 

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1 tions prescribed under this section, specify the dura2 tion of the contract.’’. 

3 (f) CONSERVATION PRIORITY AREAS.—Section 

4 1231(f) of the Food Security Act of 1985 (16 U.S.C. 

5 3831(f)) is amended— 

6 (1) in paragraph (1), by striking ‘‘watershed 

7 areas of the Chesapeake Bay Region, the Great 

8 Lakes Region, the Long Island Sound Region, and 

9 other’’; 

10 (2) in paragraph (2), by striking ‘‘WATER11 SHEDS.—Watersheds’’ and inserting ‘‘AREAS.— 

12 Areas’’; and 

13 (3) in paragraph (3), by striking ‘‘a watershed’s 

14 designation—’’ and all that follows through the pe15 riod at the end and inserting ‘‘an area’s designation 

16 if the Secretary finds that the area no longer con17 tains actual and significant adverse water quality or 

18 habitat impacts related to agricultural production 

19 activities.’’. 

20 SEC. 2002. FARMABLE WETLAND PROGRAM. 

21 (a) EXTENSION.—Section 1231B(a)(1) of the Food 

22 Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amend23 ed— 

24 (1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 

25 and 


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1 (2) by striking ‘‘a program’’ and inserting ‘‘a 

2 farmable wetland program’’. 

3 (b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 

4 the Food Security Act of 1985 (16 U.S.C. 

5 3831b(b)(1)(B)) is amended by striking ‘‘flow from a row 

6 crop agriculture drainage system’’ and inserting ‘‘surface 

7 and subsurface flow from row crop agricultural produc8 tion’’. 

9 (c) CLERICAL AMENDMENTS.—Section 1231B of the 

10 Food Security Act of 1985 (16 U.S.C. 3831b) is amend11 ed— 

12 (1) by striking the heading and inserting the 

13 following: 

14 ‘‘SEC. 1231B. FARMABLE WETLAND PROGRAM.’’; 

15 and 

16 (2) in subsection (f)(2), by striking ‘‘section 

17 1234(c)(2)(B)’’ and inserting ‘‘section 

18 1234(c)(2)(A)(ii)’’. 

19 SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 

20 (a) LIMITATION ON HARVESTING, GRAZING OR COM21 MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the 

22 Food Security Act of 1985 (16 U.S.C. 3832(a)(8)) is 

23 amended by striking ‘‘except that’’ and all that follows 

24 through the semicolon at the end of the paragraph and 

25 inserting ‘‘except as provided in section 1233(b);’’. 


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1 (b) CONSERVATION PLAN REQUIREMENTS.—Section 

2 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) 

3 is amended by striking subsection (b) and inserting the 

4 following: 

5 ‘‘(b) CONSERVATION PLANS.—The plan referred to 

6 in subsection (a)(1) shall set forth— 

7 ‘‘(1) the conservation measures and practices to 

8 be carried out by the owner or operator during the 

9 term of the contract; and 

10 ‘‘(2) the commercial use, if any, to be permitted 

11 on the land during the term.’’. 

12 (c) RENTAL PAYMENT REDUCTION.—Section 1232 

13 of the Food Security Act of 1985 (16 U.S.C. 3832) is 

14 amended by striking subsection (d). 

15 SEC. 2004. DUTIES OF THE SECRETARY. 

16 Section 1233 of the Food Security Act of 1985 (16 

17 U.S.C. 3833) is amended to read as follows: 

18 ‘‘SEC. 1233. DUTIES OF THE SECRETARY. 

19 ‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re20 turn for a contract entered into by an owner or operator, 

21 the Secretary shall— 

22 ‘‘(1) share the cost of carrying out the con23 servation measures and practices set forth in the 

24 contract for which the Secretary determines that 


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1 cost sharing is appropriate and in the public inter2 est; and 

3 ‘‘(2) for a period of years not in excess of the 

4 term of the contract, pay an annual rental payment 

5 in an amount necessary to compensate for— 

6 ‘‘(A) the conversion of highly erodible crop7 land or other eligible land normally devoted to 

8 the production of an agricultural commodity on 

9 a farm or ranch to a less intensive use; 

10 ‘‘(B) the retirement of any cropland base 

11 and allotment history that the owner or oper12 ator agrees to retire permanently; and 

13 ‘‘(C) the development and management of 

14 grassland for multiple natural resource con15 servation benefits, including soil, water, air, and 

16 wildlife. 

17 ‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec18 retary shall permit certain activities or commercial uses 

19 of land that is subject to the contract if those activities 

20 or uses are consistent with a plan approved by the Sec21 retary and include— 

22 ‘‘(1) harvesting, grazing, or other commercial 

23 use of the forage in response to drought, flooding, 

24 or other emergency without any reduction in the 

25 rental rate; 


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1 ‘‘(2) grazing by livestock of a beginning farmer 

2 or rancher without any reduction in the rental rate, 

3 if the grazing is— 

4 ‘‘(A) consistent with the conservation of 

5 soil, water quality, and wildlife habitat (includ6 ing habitat during the primary nesting season 

7 for critical birds in the area); and 

8 ‘‘(B) described in subparagraph (B) or (C) 

9 of paragraph (3); 

10 ‘‘(3) consistent with the conservation of soil, 

11 water quality, and wildlife habitat (including habitat 

12 during the primary nesting season for critical birds 

13 in the area) and in exchange for a reduction of not 

14 less than 25 percent in the annual rental rate for 

15 the acres covered by the authorized activity— 

16 ‘‘(A) managed harvesting and other com17 mercial use (including the managed harvesting 

18 of biomass), except that in permitting those ac19 tivities the Secretary, in coordination with the 

20 State technical committee— 

21 ‘‘(i) shall develop appropriate vegeta22 tion management requirements; and 

23 ‘‘(ii) shall identify periods during 

24 which the activities may be conducted, 

25 such that the frequency is at least once 


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1 every 5 years but not more than once every 

2 3 years; 

3 ‘‘(B) prescribed grazing for the control of 

4 invasive species, which may be conducted annu5 ally; 

6 ‘‘(C) routine grazing, except that in per7 mitting routine grazing, the Secretary, in co8 ordination with the State technical committee— 

9 ‘‘(i) shall develop appropriate vegeta10 tion management requirements and stock11 ing rates for the land that are suitable for 

12 continued routine grazing; and 

13 ‘‘(ii) shall identify the periods during 

14 which routine grazing may be conducted, 

15 such that the frequency is not more than 

16 once every 2 years, taking into consider17 ation regional differences such as— 

18 ‘‘(I) climate, soil type, and nat19 ural resources; 

20 ‘‘(II) the number of years that 

21 should be required between routine 

22 grazing activities; and 

23 ‘‘(III) how often during a year in 

24 which routine grazing is permitted 


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1 that routine grazing should be allowed 

2 to occur; and 

3 ‘‘(D) the installation of wind turbines and 

4 associated access, except that in permitting the 

5 installation of wind turbines, the Secretary shall 

6 determine the number and location of wind tur7 bines that may be installed, taking into ac8 count— 

9 ‘‘(i) the location, size, and other phys10 ical characteristics of the land; 

11 ‘‘(ii) the extent to which the land con12 tains threatened or endangered wildlife and 

13 wildlife habitat; and 

14 ‘‘(iii) the purposes of the conservation 

15 reserve program under this subchapter; 

16 and 

17 ‘‘(4) the intermittent and seasonal use of vege18 tative buffer practices incidental to agricultural pro19 duction on land adjacent to the buffer such that the 

20 permitted use does not destroy the permanent vege21 tative cover. 

22 ‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLAND.— 

23 Notwithstanding section 1232(a)(8), for eligible land de24 scribed in section 1231(b)(3), the Secretary shall permit 

25 the following activities: 


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1 ‘‘(1) Common grazing practices, including 

2 maintenance and necessary cultural practices, on the 

3 land in a manner that is consistent with maintaining 

4 the viability of grassland, forb, and shrub species ap5 propriate to that locality. 

6 ‘‘(2) Haying, mowing, or harvesting for seed 

7 production, subject to appropriate restrictions dur8 ing the primary nesting season for critical birds in 

9 the area. 

10 ‘‘(3) Fire presuppression, rehabilitation, and 

11 construction of fire breaks. 

12 ‘‘(4) Grazing-related activities, such as fencing 

13 and livestock watering. 

14 ‘‘(d) RESOURCE CONSERVING USE.— 

15 ‘‘(1) IN GENERAL.—Beginning on the date that 

16 is 1 year before the date of termination of a contract 

17 under the program, the Secretary shall allow an 

18 owner or operator to make conservation and land 

19 improvements that facilitate maintaining protection 

20 of highly erodible land after expiration of the con21 tract. 

22 ‘‘(2) CONSERVATION PLAN.—The Secretary 

23 shall require an owner or operator carrying out the 

24 activities described in paragraph (1) to develop and 

25 implement a conservation plan. 


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1 ‘‘(3) REENROLLMENT PROHIBITED.—Land al2 tered under paragraph (1) may not be reenrolled in 

3 the conservation reserve program for 5 years. 

4 ‘‘(4) PAYMENT.—The Secretary shall provide 

5 an annual payment that is reduced in an amount 

6 commensurate with any income or other compensa7 tion received as a result of the activities carried out 

8 under paragraph (1).’’. 

9 SEC. 2005. PAYMENTS. 

10 (a) TREES, WINDBREAKS, SHELTERBELTS, AND

11 WILDLIFE CORRIDORS.—Section 1234(b)(3)(A) of the 

12 Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is 

13 amended— 

14 (1) in clause (i), by inserting ‘‘and’’ after the 

15 semicolon; 

16 (2) by striking clause (ii); and 

17 (3) by redesignating clause (iii) as clause (ii). 

18 (b) INCENTIVES.—Section 1234(b)(3)(B) of the Food 

19 Security Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amend20 ed— 

21 (1) in clause (i), by inserting ‘‘, practices to im22 prove the condition of resources on the land,’’ after 

23 ‘‘operator)’’; and 

24 (2) by adding at the end the following: 


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1 ‘‘(iii) INCENTIVES.—In making rental 

2 payments to an owner or operator of land 

3 described in subparagraph (A), the Sec4 retary may provide incentive payments suf5 ficient to encourage proper thinning and 

6 practices to improve the condition of re7 sources on the land.’’. 

8 (c) ANNUAL RENTAL PAYMENTS.—Section 1234(c) 

9 of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 

10 amended— 

11 (1) in paragraph (1), by inserting ‘‘and other 

12 eligible land’’ after ‘‘highly erodible cropland’’ both 

13 places it appears; 

14 (2) by striking paragraph (2) and inserting the 

15 following: 

16 ‘‘(2) METHODS OF DETERMINATION.— 

17 ‘‘(A) IN GENERAL.—The amounts payable 

18 to owners or operators in the form of rental 

19 payments under contracts entered into under 

20 this subchapter may be determined through— 

21 ‘‘(i) the submission of bids for such 

22 contracts by owners and operators in such 

23 manner as the Secretary may prescribe; or 

24 ‘‘(ii) such other means as the Sec25 retary determines are appropriate. 


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1 ‘‘(B) GRASSLAND.—In the case of eligible 

2 land described in section 1231(b)(3), the Sec3 retary shall make annual payments in an 

4 amount that is not more than 75 percent of the 

5 grazing value of the land covered by the con6 tract.’’; and 

7 (3) in paragraph (5)(A)— 

8 (A) by striking ‘‘The Secretary’’ and in9 serting the following: 

10 ‘‘(i) SURVEY.—The Secretary’’; and 

11 (B) by adding at the end the following: 

12 ‘‘(ii) USE.—The Secretary may use 

13 the survey of dryland cash rental rates de14 scribed in clause (i) as a factor in deter15 mining rental rates under this section as 

16 the Secretary determines appropriate.’’. 

17 (d) PAYMENT SCHEDULE.—Section 1234 of the Food 

18 Security Act of 1985 (16 U.S.C. 3834) is amended by 

19 striking subsection (d) and inserting the following: 

20 ‘‘(d) PAYMENT SCHEDULE.— 

21 ‘‘(1) IN GENERAL.—Except as otherwise pro22 vided in this section, payments under this sub23 chapter shall be made in cash in such amount and 

24 on such time schedule as is agreed on and specified 

25 in the contract. 


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1 ‘‘(2) SOURCE.—Payments under this sub2 chapter shall be made using the funds of the Com3 modity Credit Corporation. 

4 ‘‘(3) ADVANCE PAYMENT.—Payments under 

5 this subchapter may be made in advance of deter6 mination of performance.’’. 

7 (e) PAYMENT LIMITATION.—Section 1234(f) of the 

8 Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend9 ed— 

10 (1) in paragraph (1), by striking ‘‘, including 

11 rental payments made in the form of in-kind com12 modities,’’; 

13 (2) by striking paragraph (3); and 

14 (3) by redesignating paragraph (4) as para15 graph (2). 

16 SEC. 2006. CONTRACT REQUIREMENTS. 

17 Section 1235 of the Food Security Act of 1985 (16 

18 U.S.C. 3835) is amended— 

19 (1) in subsection (f)— 

20 (A) in paragraph (1)— 

21 (i) in the matter preceding subpara22 graph (A), by striking ‘‘DUTIES’’ and all 

23 that follows through ‘‘a beginning farmer 

24 or rancher or’’ and inserting ‘‘TRANSITION

25 TO COVERED FARMER OR RANCHER.—In 


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1 the case of a contract modification ap2 proved in order to facilitate the transfer of 

3 land subject to a contract from a retired 

4 farmer or rancher to a beginning farmer or 

5 rancher, a veteran farmer or rancher (as 

6 defined in section 2501(e) of the Food, Ag7 riculture, Conservation, and Trade Act of 

8 1990 (7 U.S.C. 2279(e))), or a’’; 

9 (ii) in subparagraph (D), by striking 

10 ‘‘the farmer or rancher’’ and inserting ‘‘the 

11 covered farmer or rancher’’; and 

12 (iii) in subparagraph (E), by striking 

13 ‘‘section 1001A(b)(3)(B)’’ and inserting 

14 ‘‘section 1001’’; and 

15 (B) in paragraph (2), by striking ‘‘require16 ment of section 1231(h)(4)(B)’’ and inserting 

17 ‘‘option provided under section 

18 1234(c)(2)(A)(ii)’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary 

21 shall not consider an owner or operator to be in violation 

22 of a term or condition of a conservation reserve contract 

23 if— 


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1 ‘‘(1) during the year prior to expiration of the 

2 contract, the land is enrolled in the conservation 

3 stewardship program; and 

4 ‘‘(2) the activity required under the conserva5 tion stewardship program pursuant to the enroll6 ment is consistent with this subchapter. 

7 ‘‘(h) LAND ENROLLED IN AGRICULTURAL CON8 SERVATION EASEMENT PROGRAM.—The Secretary may 

9 terminate or modify a contract entered into under this 

10 subchapter if eligible land that is subject to such contract 

11 is transferred into the agricultural conservation easement 

12 program under subtitle H.’’. 

13 SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 

14 TO OTHER CONSERVING USES. 

15 Section 1235A of the Food Security Act of 1985 (16 

16 U.S.C. 3835a) is repealed. 

17 SEC. 2008. EFFECTIVE DATE. 

18 (a) IN GENERAL.—The amendments made by this 

19 subtitle shall take effect on October 1, 2013, except, the 

20 amendment made by section 2001(d), which shall take ef21 fect on the date of enactment of this Act. 

22 (b) EFFECT ON EXISTING CONTRACTS.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the amendments made by this subtitle 

25 shall not affect the validity or terms of any contract 


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1 entered into by the Secretary of Agriculture under 

2 subchapter B of chapter 1 of subtitle D of title XII 

3 of the Food Security Act of 1985 (16 U.S.C. 3831 

4 et seq.) before October 1, 2013, or any payments re5 quired to be made in connection with the contract. 

6 (2) UPDATING OF EXISTING CONTRACTS.—The 

7 Secretary shall permit an owner or operator with a 

8 contract entered into under subchapter B of chapter 

9 1 of subtitle D of title XII of the Food Security Act 

10 of 1985 (16 U.S.C. 3831 et seq.) before October 1, 

11 2013, to update the contract to reflect the activities 

12 and uses of land under contract permitted under the 

13 terms and conditions of paragraphs (1) and (2) of 

14 section 1233(b) of that Act (as amended by section 

15 2004). 

16 Subtitle B—Conservation 

17 Stewardship Program 

18 SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 

19 (a) REVISION OF CURRENT PROGRAM.—Subchapter 

20 B of chapter 2 of subtitle D of title XII of the Food Secu21 rity Act of 1985 (16 U.S.C. 3838d et seq.) is amended 

22 to read as follows: 


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1 ‘‘Subchapter B—Conservation Stewardship 

2 Program 

3 ‘‘SEC. 1238D. DEFINITIONS. 

4 ‘‘In this subchapter: 

5 ‘‘(1) AGRICULTURAL OPERATION.—The term 

6 ‘agricultural operation’ means all eligible land, 

7 whether or not contiguous, that is— 

8 ‘‘(A) under the effective control of a pro9 ducer at the time the producer enters into a 

10 contract under the program; and 

11 ‘‘(B) operated with equipment, labor, man12 agement, and production or cultivation prac13 tices that are substantially separate from other 

14 agricultural operations, as determined by the 

15 Secretary. 

16 ‘‘(2) CONSERVATION ACTIVITIES.— 

17 ‘‘(A) IN GENERAL.—The term ‘conserva18 tion activities’ means conservation systems, 

19 practices, or management measures. 

20 ‘‘(B) INCLUSIONS.—The term ‘conserva21 tion activities’ includes— 

22 ‘‘(i) structural measures, vegetative 

23 measures, and land management measures, 

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1 ment systems, as determined by the Sec2 retary; and 

3 ‘‘(ii) planning needed to address a pri4 ority resource concern. 

5 ‘‘(3) CONSERVATION STEWARDSHIP PLAN.— 

6 The term ‘conservation stewardship plan’ means a 

7 plan that— 

8 ‘‘(A) identifies and inventories priority re9 source concerns; 

10 ‘‘(B) establishes benchmark data and con11 servation objectives; 

12 ‘‘(C) describes conservation activities to be 

13 implemented, managed, or improved; and 

14 ‘‘(D) includes a schedule and evaluation 

15 plan for the planning, installation, and manage16 ment of the new and existing conservation ac17 tivities. 

18 ‘‘(4) ELIGIBLE LAND.— 

19 ‘‘(A) IN GENERAL.—The term ‘eligible 

20 land’ means— 

21 ‘‘(i) private and tribal land on which 

22 agricultural commodities, livestock, or for23 est-related products are produced; and 

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1 source concerns could be addressed 

2 through a contract under the program. 

3 ‘‘(B) INCLUSIONS.—The term ‘eligible 

4 land’ includes— 

5 ‘‘(i) cropland; 

6 ‘‘(ii) grassland; 

7 ‘‘(iii) rangeland; 

8 ‘‘(iv) pastureland; 

9 ‘‘(v) nonindustrial private forest land; 

10 and 

11 ‘‘(vi) other agricultural land (includ12 ing cropped woodland, marshes, and agri13 cultural land used for the production of 

14 livestock), as determined by the Secretary. 

15 ‘‘(5) PRIORITY RESOURCE CONCERN.—The 

16 term ‘priority resource concern’ means a natural re17 source concern or problem, as determined by the 

18 Secretary, that— 

19 ‘‘(A) is identified at the national, State or 

20 local level, as a priority for a particular area of 

21 the State; 

22 ‘‘(B) represents a significant concern in a 

23 State or region; and 


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1 ‘‘(C) is likely to be addressed successfully 

2 through the implementation of conservation ac3 tivities under this program. 

4 ‘‘(6) PROGRAM.—The term ‘program’ means 

5 the conservation stewardship program established by 

6 this subchapter. 

7 ‘‘(7) STEWARDSHIP THRESHOLD.—The term 

8 ‘stewardship threshold’ means the level of manage9 ment required, as determined by the Secretary, to 

10 conserve and improve the quality and condition of a 

11 natural resource. 

12 ‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 

13 ‘‘(a) ESTABLISHMENT AND PURPOSE.—During each 

14 of fiscal years 2014 through 2018, the Secretary shall 

15 carry out a conservation stewardship program to encour16 age producers to address priority resource concerns and 

17 improve and conserve the quality and condition of natural 

18 resources in a comprehensive manner— 

19 ‘‘(1) by undertaking additional conservation ac20 tivities; and 

21 ‘‘(2) by improving, maintaining, and managing 

22 existing conservation activities. 

23 ‘‘(b) EXCLUSIONS.— 

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1 lowing land (even if covered by the definition of eli2 gible land) is not eligible for enrollment in the pro3 gram: 

4 ‘‘(A) Land enrolled in the conservation re5 serve program, unless— 

6 ‘‘(i) the conservation reserve contract 

7 will expire at the end of the fiscal year in 

8 which the land is to be enrolled in the pro9 gram; and 

10 ‘‘(ii) conservation reserve program 

11 payments for land enrolled in the program 

12 cease prior to the date on which the first 

13 program payment is made to the applicant 

14 under this subchapter. 

15 ‘‘(B) Land enrolled in the agricultural con16 servation easement program in a wetland re17 serve easement. 

18 ‘‘(C) Land enrolled in the conservation se19 curity program. 

20 ‘‘(2) CONVERSION TO CROPLAND.—Eligible 

21 land used for crop production after October 1, 2013, 

22 that had not been planted, considered to be planted, 

23 or devoted to crop production for at least 4 of the 

24 6 years preceding that date shall not be the basis for 


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1 any payment under the program, unless the land 

2 does not meet the requirement because— 

3 ‘‘(A) the land had previously been enrolled 

4 in the conservation reserve program; 

5 ‘‘(B) the land has been maintained using 

6 long-term crop rotation practices, as determined 

7 by the Secretary; or 

8 ‘‘(C) the land is incidental land needed for 

9 efficient operation of the farm or ranch, as de10 termined by the Secretary. 

11 ‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 

12 ‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eli13 gible to participate in the conservation stewardship pro14 gram, a producer shall submit a contract offer for the ag15 ricultural operation that— 

16 ‘‘(1) demonstrates to the satisfaction of the 

17 Secretary that the producer, at the time of the con18 tract offer, is meeting the stewardship threshold for 

19 at least 2 priority resource concerns; and 

20 ‘‘(2) would, at a minimum, meet or exceed the 

21 stewardship threshold for at least 1 additional pri22 ority resource concern by the end of the stewardship 

23 contract by— 

24 ‘‘(A) installing and adopting additional 

25 conservation activities; and 


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1 ‘‘(B) improving, maintaining, and man2 aging existing conservation activities on the ag3 ricultural operation in a manner that increases 

4 or extends the conservation benefits in place at 

5 the time the contract offer is accepted by the 

6 Secretary. 

7 ‘‘(b) EVALUATION OF CONTRACT OFFERS.— 

8 ‘‘(1) RANKING OF APPLICATIONS.—In evalu9 ating contract offers the Secretary shall rank appli10 cations based on— 

11 ‘‘(A) the level of conservation treatment on 

12 all applicable priority resource concerns at the 

13 time of application; 

14 ‘‘(B) the degree to which the proposed con15 servation activities effectively increase conserva16 tion performance; 

17 ‘‘(C) the number of applicable priority re18 source concerns proposed to be treated to meet 

19 or exceed the stewardship threshold by the end 

20 of the contract; 

21 ‘‘(D) the extent to which other priority re22 source concerns will be addressed to meet or ex23 ceed the stewardship threshold by the end of 

24 the contract period; 


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1 ‘‘(E) the extent to which the actual and 

2 anticipated conservation benefits from the con3 tract are provided at the least cost relative to 

4 other similarly beneficial contract offers; and 

5 ‘‘(F) the extent to which priority resource 

6 concerns will be addressed when transitioning 

7 from the conservation reserve program to agri8 cultural production. 

9 ‘‘(2) PROHIBITION.—The Secretary may not as10 sign a higher priority to any application because the 

11 applicant is willing to accept a lower payment than 

12 the applicant would otherwise be eligible to receive. 

13 ‘‘(3) ADDITIONAL CRITERIA.—The Secretary 

14 may develop and use such additional criteria that 

15 the Secretary determines are necessary to ensure 

16 that national, State, and local priority resource con17 cerns are effectively addressed. 

18 ‘‘(c) ENTERING INTO CONTRACTS.—After a deter19 mination that a producer is eligible for the program under 

20 subsection (a), and a determination that the contract offer 

21 ranks sufficiently high under the evaluation criteria under 

22 subsection (b), the Secretary shall enter into a conserva23 tion stewardship contract with the producer to enroll the 

24 eligible land to be covered by the contract. 

25 ‘‘(d) CONTRACT PROVISIONS.— 


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1 ‘‘(1) TERM.—A conservation stewardship con2 tract shall be for a term of 5 years. 

3 ‘‘(2) REQUIRED PROVISIONS.—The conservation 

4 stewardship contract of a producer shall— 

5 ‘‘(A) state the amount of the payment the 

6 Secretary agrees to make to the producer for 

7 each year of the conservation stewardship con8 tract under section 1238G(d); 

9 ‘‘(B) require the producer— 

10 ‘‘(i) to implement a conservation stew11 ardship plan that describes the program 

12 purposes to be achieved through 1 or more 

13 conservation activities; 

14 ‘‘(ii) to maintain and supply informa15 tion as required by the Secretary to deter16 mine compliance with the conservation 

17 stewardship plan and any other require18 ments of the program; and 

19 ‘‘(iii) not to conduct any activities on 

20 the agricultural operation that would tend 

21 to defeat the purposes of the program; 

22 ‘‘(C) permit all economic uses of the eligi23 ble land that— 

24 ‘‘(i) maintain the agricultural nature 

25 of the land; and 


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1 ‘‘(ii) are consistent with the conserva2 tion purposes of the conservation steward3 ship contract; 

4 ‘‘(D) include a provision to ensure that a 

5 producer shall not be considered in violation of 

6 the contract for failure to comply with the con7 tract due to circumstances beyond the control 

8 of the producer, including a disaster or related 

9 condition, as determined by the Secretary; 

10 ‘‘(E) include provisions where upon the 

11 violation of a term or condition of the contract 

12 at any time the producer has control of the 

13 land— 

14 ‘‘(i) if the Secretary determines that 

15 the violation warrants termination of the 

16 contract— 

17 ‘‘(I) to forfeit all rights to receive 

18 payments under the contract; and 

19 ‘‘(II) to refund all or a portion of 

20 the payments received by the producer 

21 under the contract, including any in22 terest on the payments, as determined 

23 by the Secretary; or 

24 ‘‘(ii) if the Secretary determines that 

25 the violation does not warrant termination 


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1 of the contract, to refund or accept adjust2 ments to the payments provided to the pro3 ducer, as the Secretary determines to be 

4 appropriate; 

5 ‘‘(F) include provisions in accordance with 

6 paragraphs (3) and (4) of this section; and 

7 ‘‘(G) include any additional provisions the 

8 Secretary determines are necessary to carry out 

9 the program. 

10 ‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT

11 TO A CONTRACT.— 

12 ‘‘(A) IN GENERAL.—At the time of appli13 cation, a producer shall have control of the eli14 gible land to be enrolled in the program. Except 

15 as provided in subparagraph (B), a change in 

16 the interest of a producer in eligible land cov17 ered by a contract under the program shall re18 sult in the termination of the contract with re19 gard to that land. 

20 ‘‘(B) TRANSFER OF DUTIES AND

21 RIGHTS.—Subparagraph (A) shall not apply 

22 if— 

23 ‘‘(i) within a reasonable period of time 

24 (as determined by the Secretary) after the 

25 date of the change in the interest in all or 


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1 a portion of the land covered by a contract 

2 under the program, the transferee of the 

3 land provides written notice to the Sec4 retary that duties and rights under the 

5 contract have been transferred to, and as6 sumed by, the transferee for the portion of 

7 the land transferred; 

8 ‘‘(ii) the transferee meets the eligi9 bility requirements of the program; and 

10 ‘‘(iii) the Secretary approves the 

11 transfer of all duties and rights under the 

12 contract. 

13 ‘‘(4) MODIFICATION AND TERMINATION OF

14 CONTRACTS.— 

15 ‘‘(A) VOLUNTARY MODIFICATION OR TER16 MINATION.—The Secretary may modify or ter17 minate a contract with a producer if— 

18 ‘‘(i) the producer agrees to the modi19 fication or termination; and 

20 ‘‘(ii) the Secretary determines that 

21 the modification or termination is in the 

22 public interest. 

23 ‘‘(B) INVOLUNTARY TERMINATION.—The 

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1 retary determines that the producer violated the 

2 contract. 

3 ‘‘(5) REPAYMENT.—If a contract is terminated, 

4 the Secretary may, consistent with the purposes of 

5 the program— 

6 ‘‘(A) allow the producer to retain payments 

7 already received under the contract; or 

8 ‘‘(B) require repayment, in whole or in 

9 part, of payments received and assess liquidated 

10 damages. 

11 ‘‘(e) CONTRACT RENEWAL.—At the end of the initial 

12 5-year contract period, the Secretary may allow the pro13 ducer to renew the contract for 1 additional 5-year period 

14 if the producer— 

15 ‘‘(1) demonstrates compliance with the terms of 

16 the existing contract; 

17 ‘‘(2) agrees to adopt and continue to integrate 

18 conservation activities across the entire agricultural 

19 operation as determined by the Secretary; and 

20 ‘‘(3) agrees, at a minimum, to meet or exceed 

21 the stewardship threshold for at least 2 additional 

22 priority resource concerns on the agricultural oper23 ation by the end of the contract period. 


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1 ‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 

2 ‘‘(a) IN GENERAL.—To achieve the conservation 

3 goals of a contract under the conservation stewardship 

4 program, the Secretary shall— 

5 ‘‘(1) make the program available to eligible pro6 ducers on a continuous enrollment basis with 1 or 

7 more ranking periods, 1 of which shall occur in the 

8 first quarter of each fiscal year; 

9 ‘‘(2) identify not less than 5 priority resource 

10 concerns in a particular watershed or other appro11 priate region or area within a State; and 

12 ‘‘(3) establish a science-based stewardship 

13 threshold for each priority resource concern identi14 fied under paragraph (2). 

15 ‘‘(b) ALLOCATION TO STATES.—The Secretary shall 

16 allocate acres to States for enrollment, based— 

17 ‘‘(1) primarily on each State’s proportion of eli18 gible land to the total acreage of eligible land in all 

19 States; and 

20 ‘‘(2) also on consideration of— 

21 ‘‘(A) the extent and magnitude of the con22 servation needs associated with agricultural 

23 production in each State; 

24 ‘‘(B) the degree to which implementation 

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1 tive in helping producers address those needs; 

2 and 

3 ‘‘(C) other considerations to achieve equi4 table geographic distribution of funds, as deter5 mined by the Secretary. 

6 ‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During 

7 the period beginning on October 1, 2013, and ending on 

8 September 30, 2022, the Secretary shall, to the maximum 

9 extent practicable— 

10 ‘‘(1) enroll in the program an additional 

11 10,348,000 acres for each fiscal year; and 

12 ‘‘(2) manage the program to achieve a national 

13 average rate of $18 per acre, which shall include the 

14 costs of all financial assistance, technical assistance, 

15 and any other expenses associated with enrollment 

16 or participation in the program. 

17 ‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 

18 ‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec19 retary shall provide annual payments under the pro20 gram to compensate the producer for— 

21 ‘‘(A) installing and adopting additional 

22 conservation activities; and 

23 ‘‘(B) improving, maintaining, and man24 aging conservation activities in place at the opVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00207 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 eration of the producer at the time the contract 

2 offer is accepted by the Secretary. 

3 ‘‘(2) PAYMENT AMOUNT.—The amount of the 

4 conservation stewardship annual payment shall be 

5 determined by the Secretary and based, to the max6 imum extent practicable, on the following factors: 

7 ‘‘(A) Costs incurred by the producer asso8 ciated with planning, design, materials, installa9 tion, labor, management, maintenance, or train10 ing. 

11 ‘‘(B) Income forgone by the producer. 

12 ‘‘(C) Expected conservation benefits. 

13 ‘‘(D) The extent to which priority resource 

14 concerns will be addressed through the installa15 tion and adoption of conservation activities on 

16 the agricultural operation. 

17 ‘‘(E) The level of stewardship in place at 

18 the time of application and maintained over the 

19 term of the contract. 

20 ‘‘(F) The degree to which the conservation 

21 activities will be integrated across the entire ag22 ricultural operation for all applicable priority 

23 resource concerns over the term of the contract. 

24 ‘‘(G) Such other factors as determined by 

25 the Secretary. 


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1 ‘‘(3) EXCLUSIONS.—A payment to a producer 

2 under this subsection shall not be provided for— 

3 ‘‘(A) the design, construction, or mainte4 nance of animal waste storage or treatment fa5 cilities or associated waste transport or transfer 

6 devices for animal feeding operations; or 

7 ‘‘(B) conservation activities for which there 

8 is no cost incurred or income forgone to the 

9 producer. 

10 ‘‘(4) DELIVERY OF PAYMENTS.—In making 

11 stewardship payments, the Secretary shall, to the ex12 tent practicable— 

13 ‘‘(A) prorate conservation performance 

14 over the term of the contract so as to accommo15 date, to the extent practicable, producers earn16 ing equal annual stewardship payments in each 

17 fiscal year; and 

18 ‘‘(B) make stewardship payments as soon 

19 as practicable after October 1 of each fiscal 

20 year for activities carried out in the previous 

21 fiscal year. 

22 ‘‘(e) SUPPLEMENTAL PAYMENTS FOR RESOURCE23 CONSERVING CROP ROTATIONS.— 

24 ‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec25 retary shall provide additional payments to proVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00209 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 ducers that, in participating in the program, agree 

2 to adopt resource-conserving crop rotations to 

3 achieve beneficial crop rotations as appropriate for 

4 the eligible land of the producers. 

5 ‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec6 retary shall determine whether a resource-conserving 

7 crop rotation is a beneficial crop rotation eligible for 

8 additional payments under paragraph (1), based on 

9 whether the resource-conserving crop rotation is de10 signed to provide natural resource conservation and 

11 production benefits. 

12 ‘‘(3) ELIGIBILITY.—To be eligible to receive a 

13 payment described in paragraph (1), a producer 

14 shall agree to adopt and maintain the resource-con15 serving crop rotations for the term of the contract. 

16 ‘‘(4) RESOURCE-CONSERVING CROP ROTA17 TION.—In this subsection, the term ‘resource-con18 serving crop rotation’ means a crop rotation that— 

19 ‘‘(A) includes at least 1 resource con20 serving crop (as defined by the Secretary); 

21 ‘‘(B) reduces erosion; 

22 ‘‘(C) improves soil fertility and tilth; 

23 ‘‘(D) interrupts pest cycles; and 


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1 ‘‘(E) in applicable areas, reduces depletion 

2 of soil moisture or otherwise reduces the need 

3 for irrigation. 

4 ‘‘(f) PAYMENT LIMITATIONS.—A person or legal enti5 ty may not receive, directly or indirectly, payments under 

6 the program that, in the aggregate, exceed $200,000 

7 under all contracts entered into during fiscal years 2014 

8 through 2018, excluding funding arrangements with In9 dian tribes, regardless of the number of contracts entered 

10 into under the program by the person or legal entity. 

11 ‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 

12 The Secretary shall ensure that outreach and technical as13 sistance are available, and program specifications are ap14 propriate to enable specialty crop and organic producers 

15 to participate in the program. 

16 ‘‘(h) COORDINATION WITH ORGANIC CERTIFI17 CATION.—The Secretary shall establish a transparent 

18 means by which producers may initiate organic certifi19 cation under the Organic Foods Production Act of 1990 

20 (7 U.S.C. 6501 et seq.) while participating in a contract 

21 under the program. 

22 ‘‘(i) REGULATIONS.—The Secretary shall promulgate 

23 regulations that— 

24 ‘‘(1) prescribe such other rules as the Secretary 

25 determines to be necessary to ensure a fair and reaVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00211 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 sonable application of the limitations established 

2 under subsection (f); and 

3 ‘‘(2) otherwise enable the Secretary to carry out 

4 the program.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall take effect on October 1, 2013. 

7 (c) EFFECT ON EXISTING CONTRACTS.— 

8 (1) IN GENERAL.—The amendment made by 

9 this section shall not affect the validity or terms of 

10 any contract entered into by the Secretary of Agri11 culture under subchapter B of chapter 2 of subtitle 

12 D of title XII of the Food Security Act of 1985 (16 

13 U.S.C. 3838d et seq.) before October 1, 2013, or 

14 any payments required to be made in connection 

15 with the contract. 

16 (2) CONSERVATION STEWARDSHIP PROGRAM.— 

17 Funds made available under section 1241(a)(4) of 

18 the Food Security Act of 1985 (16 U.S.C. 

19 3841(a)(4)) (as amended by section 2601(a)) may 

20 be used to administer and make payments to pro21 gram participants enrolled into contracts during any 

22 of fiscal years 2009 through 2013. 


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1 Subtitle C—Environmental Quality 

2 Incentives Program 

3 SEC. 2201. PURPOSES. 

4 Section 1240 of the Food Security Act of 1985 (16 

5 U.S.C. 3839aa) is amended— 

6 (1) in paragraph (3)— 

7 (A) in subparagraph (A), by striking 

8 ‘‘and’’ at the end; 

9 (B) by redesignating subparagraph (B) as 

10 subparagraph (C) and, in such subparagraph, 

11 by inserting ‘‘and’’ after the semicolon; and 

12 (C) by inserting after subparagraph (A) 

13 the following: 

14 ‘‘(B) develop and improve wildlife habitat; 

15 and’’; 

16 (2) in paragraph (4), by striking ‘‘; and’’ and 

17 inserting a period; and 

18 (3) by striking paragraph (5). 

19 SEC. 2202. DEFINITIONS. 

20 Section 1240A of the Food Security Act of 1985 (16 

21 U.S.C. 3839aa–1) is amended— 

22 (1) by striking paragraph (2) and redesignating 

23 paragraphs (3) through (6) as paragraphs (2) 

24 through (5), respectively; and 


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1 (2) in paragraph (2) (as so redesignated), by 

2 inserting ‘‘established under the Organic Foods Pro3 duction Act of 1990 (7 U.S.C. 6501 et seq.)’’ after 

4 ‘‘national organic program’’. 

5 SEC. 2203. ESTABLISHMENT AND ADMINISTRATION. 

6 Section 1240B of the Food Security Act of 1985 (16 

7 U.S.C. 3839aa–2) is amended— 

8 (1) in subsection (a), by striking ‘‘2014’’ and 

9 inserting ‘‘2018’’; 

10 (2) in subsection (b), by striking paragraph (2) 

11 and inserting the following: 

12 ‘‘(2) TERM.—A contract under the program 

13 shall have a term that does not exceed 10 years.’’; 

14 (3) in subsection (d)— 

15 (A) in paragraph (3), by striking subpara16 graphs (A) through (G) and inserting the fol17 lowing: 

18 ‘‘(A) soil health; 

19 ‘‘(B) water quality and quantity improve20 ment; 

21 ‘‘(C) nutrient management; 

22 ‘‘(D) pest management; 

23 ‘‘(E) air quality improvement; 

24 ‘‘(F) wildlife habitat development, includ25 ing pollinator habitat; 


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1 ‘‘(G) invasive species management; or 

2 ‘‘(H) other resource issues of regional or 

3 national significance, as determined by the Sec4 retary.’’; and 

5 (B) in paragraph (4)— 

6 (i) in subparagraph (A) in the matter 

7 preceding clause (i), by inserting ‘‘, veteran 

8 farmer or rancher (as defined in section 

9 2501(e) of the Food, Agriculture, Con10 servation, and Trade Act of 1990 (7 

11 U.S.C. 2279(e))),’’ before ‘‘or a beginning 

12 farmer or rancher’’; and 

13 (ii) by striking subparagraph (B) and 

14 inserting the following: 

15 ‘‘(B) ADVANCE PAYMENTS.— 

16 ‘‘(i) IN GENERAL.—Not more than 30 

17 percent of the amount determined under 

18 subparagraph (A) may be provided in ad19 vance for the purpose of purchasing mate20 rials or contracting. 

21 ‘‘(ii) RETURN OF FUNDS.—If funds 

22 provided in advance are not expended dur23 ing the 90-day period beginning on the 

24 date of receipt of the funds, the funds shall 


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1 be returned within a reasonable time 

2 frame, as determined by the Secretary.’’; 

3 (4) by striking subsection (f) and inserting the 

4 following: 

5 ‘‘(f) ALLOCATION OF FUNDING.— 

6 ‘‘(1) LIVESTOCK.—For each of fiscal years 

7 2014 through 2018, at least 60 percent of the funds 

8 made available for payments under the program 

9 shall be targeted at practices relating to livestock 

10 production. 

11 ‘‘(2) WILDLIFE HABITAT.—For each of fiscal 

12 years 2014 through 2018, at least 5 percent of the 

13 funds made available for payments under the pro14 gram shall be targeted at practices benefitting wild15 life habitat under subsection (g).’’; and 

16 (5) by striking subsection (g) and inserting the 

17 following: 

18 ‘‘(g) WILDLIFE HABITAT INCENTIVE PROGRAM.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall provide 

20 payments under the environmental quality incentives 

21 program for conservation practices that support the 

22 restoration, development, and improvement of wild23 life habitat on eligible land, including— 

24 ‘‘(A) upland wildlife habitat; 

25 ‘‘(B) wetland wildlife habitat; 


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1 ‘‘(C) habitat for threatened and endan2 gered species; 

3 ‘‘(D) fish habitat; 

4 ‘‘(E) habitat on pivot corners and other ir5 regular areas of a field; and 

6 ‘‘(F) other types of wildlife habitat, as de7 termined by the Secretary. 

8 ‘‘(2) STATE TECHNICAL COMMITTEE.—In deter9 mining the practices eligible for payment under 

10 paragraph (1) and targeted for funding under sub11 section (f), the Secretary shall, at a minimum, con12 sult with the relevant State technical committee once 

13 a year. 

14 ‘‘(3) WAIVER.—Notwithstanding any other pro15 vision of this chapter, the Secretary may make pay16 ments to a State or local unit of government to en17 roll land that is riparian to, or submerged under, a 

18 water body or wetland if the Secretary determines 

19 that the inclusion of the land would support the res20 toration, development, and improvement of wildlife 

21 habitat.’’. 

22 SEC. 2204. EVALUATION OF APPLICATIONS. 

23 Section 1240C(b) of the Food Security Act of 1985 

24 (16 U.S.C. 3839aa–3(b)) is amended— 


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1 (1) in paragraph (1), by striking ‘‘environ2 mental’’ and inserting ‘‘conservation’’; and 

3 (2) in paragraph (3), by striking ‘‘purpose of 

4 the environmental quality incentives program speci5 fied in section 1240(1)’’ and inserting ‘‘purposes of 

6 the program’’. 

7 SEC. 2205. DUTIES OF PRODUCERS. 

8 Section 1240D(2) of the Food Security Act of 1985 

9 (16 U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm, 

10 ranch, or forest’’ and inserting ‘‘enrolled’’. 

11 SEC. 2206. LIMITATION ON PAYMENTS. 

12 Section 1240G of the Food Security Act of 1985 (16 

13 U.S.C. 3839aa–7) is amended— 

14 (1) in subsection (a)— 

15 (A) by striking ‘‘by the person or entity 

16 during any six-year period,’’ and inserting 

17 ‘‘during fiscal years 2014 through 2018’’; and 

18 (B) by striking ‘‘federally recognized’’ and 

19 all that follows through the period and inserting 

20 ‘‘Indian tribes under section 1244(l).’’; and 

21 (2) in subsection (b)(2), by striking ‘‘any six22 year period’’ and inserting ‘‘fiscal years 2014 

23 through 2018’’. 


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1 SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAY2 MENTS. 

3 Section 1240H of the Food Security Act of 1985 (16 

4 U.S.C. 3839aa–8) is amended— 

5 (1) in subsection (b)(2), by striking ‘‘2012’’ 

6 and inserting ‘‘2018’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(c) REPORTING.—Not later than December 31, 

9 2014, and every 2 years thereafter, the Secretary shall 

10 submit to the Committee on Agriculture, Nutrition, and 

11 Forestry of the Senate and the Committee on Agriculture 

12 of the House of Representatives a report on the status 

13 of projects funded under this section, including— 

14 ‘‘(1) funding awarded; 

15 ‘‘(2) project results; and 

16 ‘‘(3) incorporation of project findings, such as 

17 new technology and innovative approaches, into the 

18 conservation efforts implemented by the Secretary.’’. 

19 SEC. 2208. EFFECTIVE DATE. 

20 (a) IN GENERAL.—The amendments made by this 

21 subtitle shall take effect on October 1, 2013. 

22 (b) EFFECT ON EXISTING CONTRACTS.—The amend23 ments made by this title shall not affect the validity or 

24 terms of any contract entered into by the Secretary of Ag25 riculture under chapter 4 of subtitle D of title XII of the 

26 Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 


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1 before October 1, 2013, or any payments required to be 

2 made in connection with the contract. 

3 Subtitle D—Agricultural 

4 Conservation Easement Program 

5 SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT 

6 PROGRAM. 

7 (a) ESTABLISHMENT.—Title XII of the Food Secu8 rity Act of 1985 is amended by adding at the end the fol9 lowing: 

10 ‘‘Subtitle H—Agricultural 

11 Conservation Easement Program 

12 ‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 

13 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab14 lish an Agricultural Conservation Easement Program for 

15 the conservation of eligible land and natural resources 

16 through easements or other interests in land. 

17 ‘‘(b) PURPOSES.—The purposes of the program are 

18 to— 

19 ‘‘(1) combine the purposes and coordinate the 

20 functions of the wetlands reserve program estab21 lished under section 1237, the grassland reserve pro22 gram established under section 1238N, and the 

23 farmland protection program established under sec24 tion 1238I; 


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1 ‘‘(2) restore, protect, and enhance wetland on 

2 eligible land; 

3 ‘‘(3) protect the agricultural use, viability, and 

4 related conservation values of eligible land by lim5 iting nonagricultural uses of that land; and 

6 ‘‘(4) protect grazing uses and related conserva7 tion values by restoring and conserving eligible land. 

8 ‘‘SEC. 1265A. DEFINITIONS. 

9 ‘‘In this subtitle: 

10 ‘‘(1) AGRICULTURAL LAND EASEMENT.—The 

11 term ‘agricultural land easement’ means an ease12 ment or other interest in eligible land that— 

13 ‘‘(A) is conveyed for the purposes of pro14 tecting natural resources and the agricultural 

15 nature of the land, and of promoting agricul16 tural viability for future generations; and 

17 ‘‘(B) permits the landowner the right to 

18 continue agricultural production and related 

19 uses subject to an agricultural land easement 

20 plan. 

21 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en22 tity’ means— 

23 ‘‘(A) an agency of State or local govern24 ment or an Indian tribe (including farmland 


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1 protection board or land resource council estab2 lished under State law); or 

3 ‘‘(B) an organization that is— 

4 ‘‘(i) organized for, and at all times 

5 since the formation of the organization has 

6 been operated principally for, 1 or more of 

7 the conservation purposes specified in 

8 clause (i), (ii), (iii), or (iv) of section 

9 170(h)(4)(A) of the Internal Revenue Code 

10 of 1986; 

11 ‘‘(ii) an organization described in sec12 tion 501(c)(3) of that Code that is exempt 

13 from taxation under section 501(a) of that 

14 Code; or 

15 ‘‘(iii) described in— 

16 ‘‘(I) paragraph (1) or (2) of sec17 tion 509(a) of that Code; or 

18 ‘‘(II) section 509(a)(3) of that 

19 Code and is controlled by an organiza20 tion described in section 509(a)(2) of 

21 that Code. 

22 ‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 

23 means private or tribal land that is— 


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1 ‘‘(A) in the case of an agricultural land 

2 easement, agricultural land, including land on a 

3 farm or ranch— 

4 ‘‘(i) that is subject to a pending offer 

5 for purchase from an eligible entity; 

6 ‘‘(ii) that— 

7 ‘‘(I) has prime, unique, or other 

8 productive soil; 

9 ‘‘(II) contains historical or ar10 chaeological resources; or 

11 ‘‘(III) the protection of which 

12 could, consistent with the purposes of 

13 the program— 

14 ‘‘(aa) further a State or 

15 local policy; or 

16 ‘‘(bb) conserve grassland or 

17 agricultural landscapes of signifi18 cant ecological value; and 

19 ‘‘(iii) that is— 

20 ‘‘(I) cropland; 

21 ‘‘(II) rangeland; 

22 ‘‘(III) grassland or land that con23 tains forbs, or shrubland for which 

24 grazing is the predominant use; 

25 ‘‘(IV) pastureland; or 


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1 ‘‘(V) nonindustrial private forest 

2 land that contributes to the economic 

3 viability of an offered parcel or serves 

4 as a buffer to protect such land from 

5 development; 

6 ‘‘(B) in the case of a wetland reserve ease7 ment, a wetland or related area, including— 

8 ‘‘(i) farmed or converted wetland, to9 gether with the adjacent land that is func10 tionally dependent on that land if the Sec11 retary determines it— 

12 ‘‘(I) is likely to be successfully 

13 restored in a cost effective manner; 

14 and 

15 ‘‘(II) will maximize the wildlife 

16 benefits and wetland functions and 

17 values as determined by the Secretary 

18 in consultation with the Secretary of 

19 the Interior at the local level; 

20 ‘‘(ii) cropland or grassland that was 

21 used for agricultural production prior to 

22 flooding from the natural overflow of a 

23 closed basin lake or pothole, as determined 

24 by the Secretary, together (where prac25 ticable) with the adjacent land that is 


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1 functionally dependent on the cropland or 

2 grassland; 

3 ‘‘(iii) farmed wetland and adjoining 

4 land that— 

5 ‘‘(I) is enrolled in the conserva6 tion reserve program; 

7 ‘‘(II) has the highest wetland 

8 functions and values; and 

9 ‘‘(III) is likely to return to pro10 duction after the land leaves the con11 servation reserve program; 

12 ‘‘(iv) riparian areas that link wetland 

13 that is protected by easements or some 

14 other device that achieves the same pur15 pose as an easement; or 

16 ‘‘(v) other wetland of an owner that 

17 would not otherwise be eligible if the Sec18 retary determines that the inclusion of 

19 such wetland in such easement would sig20 nificantly add to the functional value of the 

21 easement; and 

22 ‘‘(C) in the case of both an agricultural 

23 land easement or wetland reserve easement, 

24 other land that is incidental to eligible land if 

25 the Secretary determines that it is necessary for 


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1 the efficient administration of the easements 

2 under this program. 

3 ‘‘(4) PROGRAM.—The term ‘program’ means 

4 the Agricultural Conservation Easement Program 

5 established by this subtitle. 

6 ‘‘(5) WETLAND RESERVE EASEMENT.—The 

7 term ‘wetland reserve easement’ means a reserved 

8 interest in eligible land that— 

9 ‘‘(A) is defined and delineated in a deed; 

10 and 

11 ‘‘(B) stipulates— 

12 ‘‘(i) the rights, title, and interests in 

13 land conveyed to the Secretary; and 

14 ‘‘(ii) the rights, title, and interests in 

15 land that are reserved to the landowner. 

16 ‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 

17 ‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 

18 shall facilitate and provide funding for— 

19 ‘‘(1) the purchase by eligible entities of agricul20 tural land easements and other interests in eligible 

21 land; and 

22 ‘‘(2) technical assistance to provide for the con23 servation of natural resources pursuant to an agri24 cultural land easement plan. 

25 ‘‘(b) COST-SHARE ASSISTANCE.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall provide 

2 cost-share assistance to eligible entities for pur3 chasing agricultural land easements to protect the 

4 agricultural use, including grazing, and related con5 servation values of eligible land. 

6 ‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 

7 ‘‘(A) FEDERAL SHARE.—Subject to sub8 paragraph (C), an agreement described in para9 graph (4) shall provide for a Federal share de10 termined by the Secretary of an amount not to 

11 exceed 50 percent of the fair market value of 

12 the agricultural land easement or other interest 

13 in land, as determined by the Secretary using— 

14 ‘‘(i) the Uniform Standards of Profes15 sional Appraisal Practices; 

16 ‘‘(ii) an area-wide market analysis or 

17 survey; or 

18 ‘‘(iii) another industry approved meth19 od. 

20 ‘‘(B) NON-FEDERAL SHARE.— 

21 ‘‘(i) IN GENERAL.—Subject to sub22 paragraph (C), under the agreement, the 

23 eligible entity shall provide a share that is 

24 at least equivalent to that provided by the 

25 Secretary. 


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1 ‘‘(ii) SOURCE OF CONTRIBUTION.—An 

2 eligible entity may include as part of its 

3 share a charitable donation or qualified 

4 conservation contribution (as defined by 

5 section 170(h) of the Internal Revenue 

6 Code of 1986) from the private landowner 

7 if the eligible entity contributes its own 

8 cash resources in an amount that is at 

9 least 50 percent of the amount contributed 

10 by the Secretary. 

11 ‘‘(C) WAIVER AUTHORITY.— 

12 ‘‘(i) GRASSLAND.—In the case of 

13 grassland of special environmental signifi14 cance, as determined by the Secretary, the 

15 Secretary may provide up to 75 percent of 

16 the fair market value of the agricultural 

17 land easement. 

18 ‘‘(ii) CASH CONTRIBUTION.—For pur19 poses of subparagraph (B)(ii), the Sec20 retary may waive any portion of the eligi21 ble entity cash contribution requirement 

22 for projects of special significance, subject 

23 to an increase in the private landowner do24 nation that is equal to the amount of the 

25 waiver, if the donation is voluntary. 


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1 ‘‘(3) EVALUATION AND RANKING OF APPLICA2 TIONS.— 

3 ‘‘(A) CRITERIA.—The Secretary shall es4 tablish evaluation and ranking criteria to maxi5 mize the benefit of Federal investment under 

6 the program. 

7 ‘‘(B) CONSIDERATIONS.—In establishing 

8 the criteria, the Secretary shall emphasize sup9 port for— 

10 ‘‘(i) protecting agricultural uses and 

11 related conservation values of the land; and 

12 ‘‘(ii) maximizing the protection of 

13 areas devoted to agricultural use. 

14 ‘‘(C) BIDDING DOWN.—If the Secretary 

15 determines that 2 or more applications for cost16 share assistance are comparable in achieving 

17 the purpose of the program, the Secretary shall 

18 not assign a higher priority to any of those ap19 plications solely on the basis of lesser cost to 

20 the program. 

21 ‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 

22 ‘‘(A) IN GENERAL.—The Secretary shall 

23 enter into agreements with eligible entities to 

24 stipulate the terms and conditions under which 


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1 the eligible entity is permitted to use cost-share 

2 assistance provided under this section. 

3 ‘‘(B) LENGTH OF AGREEMENTS.—An 

4 agreement shall be for a term that is— 

5 ‘‘(i) in the case of an eligible entity 

6 certified under the process described in 

7 paragraph (5), a minimum of 5 years; and 

8 ‘‘(ii) for all other eligible entities, at 

9 least 3, but not more than 5 years. 

10 ‘‘(C) MINIMUM TERMS AND CONDITIONS.— 

11 An eligible entity shall be authorized to use its 

12 own terms and conditions for agricultural land 

13 easements so long as the Secretary determines 

14 such terms and conditions— 

15 ‘‘(i) are consistent with the purposes 

16 of the program; 

17 ‘‘(ii) are permanent or for the max18 imum duration allowed under applicable 

19 State law; 

20 ‘‘(iii) permit effective enforcement of 

21 the conservation purposes of such ease22 ments, including appropriate restrictions 

23 depending on the purposes for which the 

24 easement is acquired; 


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1 ‘‘(iv) include a right of enforcement 

2 for the Secretary if terms of the easement 

3 are not enforced by the holder of the ease4 ment; 

5 ‘‘(v) subject the land in which an in6 terest is purchased to an agricultural land 

7 easement plan that— 

8 ‘‘(I) describes the activities which 

9 promote the long-term viability of the 

10 land to meet the purposes for which 

11 the easement was acquired; 

12 ‘‘(II) requires the management of 

13 grassland according to a grassland 

14 management plan; and 

15 ‘‘(III) includes a conservation 

16 plan, where appropriate, and requires, 

17 at the option of the Secretary, the 

18 conversion of highly erodible cropland 

19 to less intensive uses; and 

20 ‘‘(vi) include a limit on the impervious 

21 surfaces to be allowed that is consistent 

22 with the agricultural activities to be con23 ducted. 

24 ‘‘(D) SUBSTITUTION OF QUALIFIED

25 PROJECTS.—An agreement shall allow, upon 


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1 mutual agreement of the parties, substitution of 

2 qualified projects that are identified at the time 

3 of the proposed substitution. 

4 ‘‘(E) EFFECT OF VIOLATION.—If a viola5 tion occurs of a term or condition of an agree6 ment under this subsection— 

7 ‘‘(i) the agreement may be termi8 nated; and 

9 ‘‘(ii) the Secretary may require the el10 igible entity to refund all or part of any 

11 payments received by the entity under the 

12 program, with interest on the payments as 

13 determined appropriate by the Secretary. 

14 ‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— 

15 ‘‘(A) CERTIFICATION PROCESS.—The Sec16 retary shall establish a process under which the 

17 Secretary may— 

18 ‘‘(i) directly certify eligible entities 

19 that meet established criteria; 

20 ‘‘(ii) enter into long-term agreements 

21 with certified eligible entities; and 

22 ‘‘(iii) accept proposals for cost-share 

23 assistance for the purchase of agricultural 

24 land easements throughout the duration of 

25 such agreements. 


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1 ‘‘(B) CERTIFICATION CRITERIA.—In order 

2 to be certified, an eligible entity shall dem3 onstrate to the Secretary that the entity will 

4 maintain, at a minimum, for the duration of the 

5 agreement— 

6 ‘‘(i) a plan for administering ease7 ments that is consistent with the purposes 

8 of the program described in paragraphs (3) 

9 and (4) of section 1265(b); 

10 ‘‘(ii) the capacity and resources to 

11 monitor and enforce agricultural land ease12 ments; and 

13 ‘‘(iii) policies and procedures to en14 sure— 

15 ‘‘(I) the long-term integrity of 

16 agricultural land easements on eligible 

17 land; 

18 ‘‘(II) timely completion of acqui19 sitions of easements; and 

20 ‘‘(III) timely and complete eval21 uation and reporting to the Secretary 

22 on the use of funds provided under 

23 the program. 

24 ‘‘(C) REVIEW AND REVISION.— 


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1 ‘‘(i) REVIEW.—The Secretary shall 

2 conduct a review of eligible entities cer3 tified under subparagraph (A) every 3 

4 years to ensure that such entities are 

5 meeting the criteria established under sub6 paragraph (B). 

7 ‘‘(ii) REVOCATION.—If the Secretary 

8 finds that the certified entity no longer 

9 meets the criteria established under sub10 paragraph (B), the Secretary may— 

11 ‘‘(I) allow the certified entity a 

12 specified period of time, at a min13 imum 180 days, in which to take such 

14 actions as may be necessary to meet 

15 the criteria; and 

16 ‘‘(II) revoke the certification of 

17 the entity, if after the specified period 

18 of time, the certified entity does not 

19 meet such criteria. 

20 ‘‘(c) TECHNICAL ASSISTANCE.—The Secretary may 

21 provide technical assistance, if requested, to assist in— 

22 ‘‘(1) compliance with the terms and conditions 

23 of easements; and 

24 ‘‘(2) implementation of an agricultural land 

25 easement plan. 


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1 ‘‘SEC. 1265C. WETLAND RESERVE EASEMENTS. 

2 ‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 

3 shall provide assistance to owners of eligible land to re4 store, protect, and enhance wetland through— 

5 ‘‘(1) easements and related wetland reserve 

6 easement plans; and 

7 ‘‘(2) technical assistance. 

8 ‘‘(b) EASEMENTS.— 

9 ‘‘(1) METHOD OF ENROLLMENT.—The Sec10 retary shall enroll eligible land through the use of— 

11 ‘‘(A) 30-year easements; 

12 ‘‘(B) permanent easements; 

13 ‘‘(C) easements for the maximum duration 

14 allowed under applicable State laws; or 

15 ‘‘(D) as an option for Indian tribes only, 

16 30-year contracts. 

17 ‘‘(2) LIMITATIONS.— 

18 ‘‘(A) INELIGIBLE LAND.—The Secretary 

19 may not acquire easements on— 

20 ‘‘(i) land established to trees under 

21 the conservation reserve program, except in 

22 cases where the Secretary determines it 

23 would further the purposes of the program; 

24 and 


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1 ‘‘(ii) farmed wetland or converted wet2 land where the conversion was not com3 menced prior to December 23, 1985. 

4 ‘‘(B) CHANGES IN OWNERSHIP.—No ease5 ment shall be created on land that has changed 

6 ownership during the preceding 12-month pe7 riod unless— 

8 ‘‘(i) the new ownership was acquired 

9 by will or succession as a result of the 

10 death of the previous owner; 

11 ‘‘(ii)(I) the ownership change occurred 

12 because of foreclosure on the land; and 

13 ‘‘(II) immediately before the fore14 closure, the owner of the land exercises a 

15 right of redemption from the mortgage 

16 holder in accordance with State law; or 

17 ‘‘(iii) the Secretary determines that 

18 the land was acquired under circumstances 

19 that give adequate assurances that such 

20 land was not acquired for the purposes of 

21 placing it in the program. 

22 ‘‘(3) EVALUATION AND RANKING OF OFFERS.— 

23 ‘‘(A) CRITERIA.—The Secretary shall es24 tablish evaluation and ranking criteria to maxiVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00236 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 mize the benefit of Federal investment under 

2 the program. 

3 ‘‘(B) CONSIDERATIONS.—When evaluating 

4 offers from landowners, the Secretary may con5 sider— 

6 ‘‘(i) the conservation benefits of ob7 taining an easement or 30-year contract, 

8 including the potential environmental bene9 fits if the land was removed from agricul10 tural production; 

11 ‘‘(ii) the cost-effectiveness of each 

12 easement or 30-year contract, so as to 

13 maximize the environmental benefits per 

14 dollar expended; 

15 ‘‘(iii) whether the landowner or an16 other person is offering to contribute fi17 nancially to the cost of the easement or 

18 30-year contract to leverage Federal funds; 

19 and 

20 ‘‘(iv) such other factors as the Sec21 retary determines are necessary to carry 

22 out the purposes of the program. 

23 ‘‘(C) PRIORITY.—The Secretary shall place 

24 priority on acquiring easements based on the 

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1 hancing habitat for migratory birds and other 

2 wildlife. 

3 ‘‘(4) AGREEMENT.—To be eligible to place eligi4 ble land into the program through a wetland reserve 

5 easement, the owner of such land shall enter into an 

6 agreement with the Secretary to— 

7 ‘‘(A) grant an easement on such land to 

8 the Secretary; 

9 ‘‘(B) authorize the implementation of a 

10 wetland reserve easement plan; 

11 ‘‘(C) create and record an appropriate 

12 deed restriction in accordance with applicable 

13 State law to reflect the easement agreed to; 

14 ‘‘(D) provide a written statement of con15 sent to such easement signed by those holding 

16 a security interest in the land; 

17 ‘‘(E) comply with the terms and conditions 

18 of the easement and any related agreements; 

19 and 

20 ‘‘(F) permanently retire any existing crop21 land base and allotment history for the land on 

22 which the easement has been obtained. 

23 ‘‘(5) TERMS AND CONDITIONS OF EASEMENT.— 


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1 ‘‘(A) IN GENERAL.—A wetland reserve 

2 easement shall include terms and conditions 

3 that— 

4 ‘‘(i) permit— 

5 ‘‘(I) repairs, improvements, and 

6 inspections on the land that are nec7 essary to maintain existing public 

8 drainage systems; and 

9 ‘‘(II) owners to control public ac10 cess on the easement areas while iden11 tifying access routes to be used for 

12 restoration activities and management 

13 and easement monitoring; 

14 ‘‘(ii) prohibit— 

15 ‘‘(I) the alteration of wildlife 

16 habitat and other natural features of 

17 such land, unless specifically author18 ized by the Secretary; 

19 ‘‘(II) the spraying of such land 

20 with chemicals or the mowing of such 

21 land, except where such spraying or 

22 mowing is authorized by the Secretary 

23 or is necessary— 


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1 ‘‘(aa) to comply with Fed2 eral or State noxious weed con3 trol laws; 

4 ‘‘(bb) to comply with a Fed5 eral or State emergency pest 

6 treatment program; or 

7 ‘‘(cc) to meet habitat needs 

8 of specific wildlife species; 

9 ‘‘(III) any activities to be carried 

10 out on the owner’s or successor’s land 

11 that is immediately adjacent to, and 

12 functionally related to, the land that 

13 is subject to the easement if such ac14 tivities will alter, degrade, or other15 wise diminish the functional value of 

16 the eligible land; and 

17 ‘‘(IV) the adoption of any other 

18 practice that would tend to defeat the 

19 purposes of the program, as deter20 mined by the Secretary; 

21 ‘‘(iii) provide for the efficient and ef22 fective establishment of wetland functions 

23 and values; and 

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1 sirable to carry out the program or facili2 tate the practical administration thereof. 

3 ‘‘(B) VIOLATION.—On the violation of the 

4 terms or conditions of the easement, the ease5 ment shall remain in force and the Secretary 

6 may require the owner to refund all or part of 

7 any payments received by the owner under the 

8 program, together with interest thereon as de9 termined appropriate by the Secretary. 

10 ‘‘(C) COMPATIBLE USES.—Land subject to 

11 a wetland reserve easement may be used for 

12 compatible economic uses, including such activi13 ties as hunting and fishing, managed timber 

14 harvest, or periodic haying or grazing, if such 

15 use is specifically permitted by the wetland re16 serve easement plan and is consistent with the 

17 long-term protection and enhancement of the 

18 wetland resources for which the easement was 

19 established. 

20 ‘‘(D) RESERVATION OF GRAZING

21 RIGHTS.—The Secretary may include in the 

22 terms and conditions of an easement a provi23 sion under which the owner reserves grazing 

24 rights if— 


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1 ‘‘(i) the Secretary determines that the 

2 reservation and use of the grazing rights— 

3 ‘‘(I) is compatible with the land 

4 subject to the easement; 

5 ‘‘(II) is consistent with the his6 torical natural uses of the land and 

7 long-term protection and enhancement 

8 goals for which the easement was es9 tablished; and 

10 ‘‘(III) complies with the wetland 

11 reserve easement plan; and 

12 ‘‘(ii) the agreement provides for a 

13 commensurate reduction in the easement 

14 payment to account for the grazing value, 

15 as determined by the Secretary. 

16 ‘‘(E) APPLICATION.—The relevant provi17 sions of this paragraph shall also apply to a 30- 

18 year contract. 

19 ‘‘(6) COMPENSATION.— 

20 ‘‘(A) DETERMINATION.— 

21 ‘‘(i) IN GENERAL.—The Secretary 

22 shall pay as compensation for a permanent 

23 easement acquired an amount necessary to 

24 encourage enrollment in the program based 

25 on the lowest of— 


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1 ‘‘(I) the fair market value of the 

2 land, as determined by the Secretary, 

3 using the Uniform Standards of Pro4 fessional Appraisal Practices or an 

5 area-wide market analysis or survey; 

6 ‘‘(II) the amount corresponding 

7 to a geographical cap, as determined 

8 by the Secretary in regulations; or 

9 ‘‘(III) the offer made by the 

10 landowner. 

11 ‘‘(ii) OTHER.—Compensation for a 

12 30-year contract or 30-year easement shall 

13 be not less than 50 percent, but not more 

14 than 75 percent, of the compensation that 

15 would be paid for a permanent easement. 

16 ‘‘(B) FORM OF PAYMENT.—Compensation 

17 shall be provided by the Secretary in the form 

18 of a cash payment, in an amount determined 

19 under subparagraph (A). 

20 ‘‘(C) PAYMENT SCHEDULE.— 

21 ‘‘(i) EASEMENTS VALUED AT LESS

22 THAN $500,000.—For easements valued at 

23 $500,000 or less, the Secretary may pro24 vide easement payments in not more than 

25 10 annual payments. 


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1 ‘‘(ii) EASEMENTS VALUED AT MORE

2 THAN $500,000.—For easements valued at 

3 more than $500,000, the Secretary may 

4 provide easement payments in at least 5, 

5 but not more than 10 annual payments, 

6 except that, if the Secretary determines it 

7 would further the purposes of the program, 

8 the Secretary may make a lump sum pay9 ment for such an easement. 

10 ‘‘(c) EASEMENT RESTORATION.— 

11 ‘‘(1) IN GENERAL.—The Secretary shall provide 

12 financial assistance to carry out the establishment of 

13 conservation measures and practices and protect 

14 wetland functions and values, including necessary 

15 maintenance activities, as set forth in a wetland re16 serve easement plan. 

17 ‘‘(2) PAYMENTS.—The Secretary shall— 

18 ‘‘(A) in the case of a permanent easement, 

19 pay an amount that is not less than 75 percent, 

20 but not more than 100 percent, of the eligible 

21 costs; and 

22 ‘‘(B) in the case of a 30-year contract or 

23 30-year easement, pay an amount that is not 

24 less than 50 percent, but not more than 75 per25 cent, of the eligible costs. 


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1 ‘‘(d) TECHNICAL ASSISTANCE.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall assist 

3 owners in complying with the terms and conditions 

4 of easements and 30-year contracts. 

5 ‘‘(2) CONTRACTS OR AGREEMENTS.—The Sec6 retary may enter into 1 or more contracts with pri7 vate entities or agreements with a State, non-govern8 mental organization, or Indian tribe to carry out 

9 necessary restoration, enhancement or maintenance 

10 of an easement if the Secretary determines that the 

11 contract or agreement will advance the purposes of 

12 the program. 

13 ‘‘(e) WETLAND ENHANCEMENT OPTION.—The Sec14 retary may enter into 1 or more agreements with a State 

15 (including a political subdivision or agency of a State), 

16 nongovernmental organization, or Indian tribe to carry out 

17 a special wetland enhancement option that the Secretary 

18 determines would advance the purposes of the program. 

19 ‘‘(f) ADMINISTRATION.— 

20 ‘‘(1) WETLAND RESERVE EASEMENT PLAN.— 

21 The Secretary shall develop a wetland reserve ease22 ment plan for eligible land subject to a wetland re23 serve easement, which will include the practices and 

24 activities necessary to restore, protect, enhance, and 

25 maintain the enrolled land. 


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1 ‘‘(2) DELEGATION OF EASEMENT ADMINISTRA2 TION.— 

3 ‘‘(A) IN GENERAL.—The Secretary may 

4 delegate any of the easement management, 

5 monitoring, and enforcement responsibilities of 

6 the Secretary to other Federal or State agencies 

7 that have the appropriate authority, expertise 

8 and resources necessary to carry out such dele9 gated responsibilities or to other conservation 

10 organizations if the Secretary determines the 

11 organization has similar expertise and re12 sources. 

13 ‘‘(B) LIMITATION.—The Secretary shall 

14 not delegate any of the monitoring or enforce15 ment responsibilities under the program to con16 servation organizations. 

17 ‘‘(3) PAYMENTS.— 

18 ‘‘(A) TIMING OF PAYMENTS.—The Sec19 retary shall provide payment for obligations in20 curred by the Secretary under this section— 

21 ‘‘(i) with respect to any easement res22 toration obligation as soon as possible after 

23 the obligation is incurred; and 

24 ‘‘(ii) with respect to any annual ease25 ment payment obligation incurred by the 


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1 Secretary as soon as possible after October 

2 1 of each calendar year. 

3 ‘‘(B) PAYMENTS TO OTHERS.—If an owner 

4 who is entitled to a payment dies, becomes in5 competent, is otherwise unable to receive such 

6 payment, or is succeeded by another person or 

7 entity who renders or completes the required 

8 performance, the Secretary shall make such 

9 payment, in accordance with regulations pre10 scribed by the Secretary and without regard to 

11 any other provision of law, in such manner as 

12 the Secretary determines is fair and reasonable 

13 in light of all of the circumstances. 

14 ‘‘SEC. 1265D. ADMINISTRATION. 

15 ‘‘(a) INELIGIBLE LAND.—The Secretary may not ac16 quire an easement under the program on— 

17 ‘‘(1) land owned by an agency of the United 

18 States, other than land held in trust for Indian 

19 tribes; 

20 ‘‘(2) land owned in fee title by a State, includ21 ing an agency or a subdivision of a State, or a unit 

22 of local government; 

23 ‘‘(3) land subject to an easement or deed re24 striction which, as determined by the Secretary, proVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00247 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 vides similar protection as would be provided by en2 rollment in the program; and 

3 ‘‘(4) land where the purposes of the program 

4 would be undermined due to on-site or off-site condi5 tions, such as risk of hazardous substances, pro6 posed or existing rights of way, infrastructure devel7 opment, or adjacent land uses. 

8 ‘‘(b) PRIORITY.—In evaluating applications under the 

9 program, the Secretary may give priority to land that is 

10 currently enrolled in the conservation reserve program in 

11 a contract that is set to expire within 1 year and— 

12 ‘‘(1) in the case of an agricultural land ease13 ment, is grassland that would benefit from protec14 tion under a long-term easement; and 

15 ‘‘(2) in the case of a wetland reserve easement, 

16 is a wetland or related area with the highest func17 tions and values and is likely to return to production 

18 after the land leaves the conservation reserve pro19 gram. 

20 ‘‘(c) SUBORDINATION, EXCHANGE, MODIFICATION, 

21 AND TERMINATION.— 

22 ‘‘(1) IN GENERAL.—The Secretary may subor23 dinate, exchange, terminate, or modify any interest 

24 in land, or portion of such interest, administered by 

25 the Secretary, either directly or on behalf of the 


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1 Commodity Credit Corporation under the program 

2 when the Secretary determines that— 

3 ‘‘(A) it is in the Federal Government’s in4 terest to subordinate, exchange, modify or ter5 minate the interest in land; 

6 ‘‘(B) the subordination, exchange, modi7 fication, or termination action— 

8 ‘‘(i) will address a compelling public 

9 need for which there is no practicable al10 ternative, or 

11 ‘‘(ii) such action will further the prac12 tical administration of the program; and 

13 ‘‘(C) the subordination, exchange, modi14 fication, or termination action will result in 

15 comparable conservation value and equivalent 

16 or greater economic value to the United States. 

17 ‘‘(2) CONSULTATION.—The Secretary shall 

18 work with the current owner, and eligible entity if 

19 applicable, to address any subordination, exchange, 

20 termination, or modification of the interest, or por21 tion of such interest in land. 

22 ‘‘(3) NOTICE.—At least 90 days before taking 

23 any termination action described in paragraph (1), 

24 the Secretary shall provide written notice of such ac25 tion to the Committee on Agriculture of the House 


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1 of Representatives and the Committee on Agri2 culture, Nutrition, and Forestry of the Senate. 

3 ‘‘(d) LAND ENROLLED IN OTHER PROGRAMS.— 

4 ‘‘(1) CONSERVATION RESERVE PROGRAM.—The 

5 Secretary may terminate or modify an existing con6 tract entered into under section 1231(a) if eligible 

7 land that is subject to such contract is transferred 

8 into the program. 

9 ‘‘(2) OTHER.—Land enrolled in the wetlands 

10 reserve program, grassland reserve program, or 

11 farmland protection program shall be considered en12 rolled in this program.’’. 

13 (b) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

14 Before an eligible entity or owner of eligible land may re15 ceive assistance under subtitle H of title XII of the Food 

16 Security Act of 1985, the eligible entity or person shall 

17 agree, during the crop year for which the assistance is pro18 vided and in exchange for the assistance— 

19 (1) to comply with applicable conservation re20 quirements under subtitle B of title XII of that Act 

21 (16 U.S.C. 3811 et seq.); and 

22 (2) to comply with applicable wetland protection 

23 requirements under subtitle C of title XII of that 

24 Act (16 U.S.C. 3821 et seq.). 


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1 (c) CROSS-REFERENCE.—Section 1244 of the Food 

2 Security Act of 1985 (16 U.S.C. 3844) is amended— 

3 (1) in subsection (c)— 

4 (A) in paragraph (1)— 

5 (i) by inserting ‘‘and’’ at the end of 

6 subparagraph (A); 

7 (ii) by striking ‘‘and’’ at the end of 

8 subparagraph (B); and 

9 (iii) by striking subparagraph (C); 

10 (B) by redesignating paragraph (2) as 

11 paragraph (3); and 

12 (C) by inserting after paragraph (1) the 

13 following: 

14 ‘‘(2) the Agricultural Conservation Easement 

15 Program established under subtitle H; and’’; and 

16 (2) in subsection (f)— 

17 (A) in paragraph (1)— 

18 (i) in subparagraph (A), by striking 

19 ‘‘programs administered under subchapters 

20 B and C of chapter 1 of subtitle D’’ and 

21 inserting ‘‘conservation reserve program 

22 established under subchapter B of chapter 

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1 title H using wetland reserve easements 

2 under section 1265C’’; and 

3 (ii) in subparagraph (B), by striking 

4 ‘‘subchapter C of chapter 1 of subtitle D’’ 

5 and inserting ‘‘the Agricultural Conserva6 tion Easement Program under subtitle H 

7 using wetland reserve easements under sec8 tion 1265C’’; and 

9 (B) by striking paragraph (4) and insert10 ing the following: 

11 ‘‘(4) EXCLUSIONS.— 

12 ‘‘(A) SHELTERBELTS AND WINDBREAKS.— 

13 The limitations established under paragraph (1) 

14 shall not apply to cropland that is subject to an 

15 easement under subchapter C of chapter 1 that 

16 is used for the establishment of shelterbelts and 

17 windbreaks. 

18 ‘‘(B) WET AND SATURATED SOILS.—For 

19 the purposes of enrolling land in a wetland re20 serve easement under subtitle H, the limitations 

21 established under paragraph (1) shall not apply 

22 to cropland designated by the Secretary with 

23 subclass w in the land capability classes IV 

24 through VIII because of severe use limitations 

25 due to soil saturation or inundation.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on October 1, 2013. 

3 Subtitle E—Regional Conservation 

4 Partnership Program 

5 SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PRO6 GRAM. 

7 (a) IN GENERAL.—Title XII of the Food Security 

8 Act of 1985 is amended by inserting after subtitle H (as 

9 added by section 2301) the following: 

10 ‘‘Subtitle I—Regional Conservation 

11 Partnership Program 

12 ‘‘SEC. 1271. ESTABLISHMENT AND PURPOSES. 

13 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab14 lish a Regional Conservation Partnership Program to im15 plement eligible activities through— 

16 ‘‘(1) partnership agreements with eligible part17 ners; and 

18 ‘‘(2) contracts with producers. 

19 ‘‘(b) PURPOSES.—The purposes of the program 

20 are— 

21 ‘‘(1) to combine the purposes and coordinate 

22 the functions of— 

23 ‘‘(A) the agricultural water enhancement 

24 program established under section 1240I; 


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1 ‘‘(B) the Chesapeake Bay watershed pro2 gram established under section 1240Q; 

3 ‘‘(C) the cooperative conservation partner4 ship initiative established under section 1243; 

5 and 

6 ‘‘(D) the Great Lakes basin program for 

7 soil erosion and sediment control established 

8 under section 1240P; 

9 ‘‘(2) to further the conservation, restoration, 

10 and sustainable use of soil, water, wildlife, and re11 lated natural resources on a regional or watershed 

12 scale; and 

13 ‘‘(3) to encourage partners to cooperate with 

14 producers in— 

15 ‘‘(A) meeting or avoiding the need for na16 tional, State, and local natural resource regu17 latory requirements related to production; and 

18 ‘‘(B) implementing projects that will result 

19 in the installation and maintenance of eligible 

20 activities that affect multiple agricultural or 

21 nonindustrial private forest operations on a 

22 local, regional, State, or multi-State basis. 

23 ‘‘SEC. 1271A. DEFINITIONS. 

24 ‘‘In this subtitle: 


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1 ‘‘(1) COVERED PROGRAMS.—The term ‘covered 

2 programs’ means— 

3 ‘‘(A) the agricultural conservation ease4 ment program; 

5 ‘‘(B) the environmental quality incentives 

6 program; 

7 ‘‘(C) the conservation stewardship pro8 gram; and 

9 ‘‘(D) the healthy forests reserve program 

10 established under section 501 of the Healthy 

11 Forests Restoration Act of 2003 (16 U.S.C. 

12 6571). 

13 ‘‘(2) ELIGIBLE ACTIVITY.—The term ‘eligible 

14 activity’ means any of the following conservation ac15 tivities when delivered through a covered program: 

16 ‘‘(A) Water quality restoration or enhance17 ment projects, including nutrient management 

18 and sediment reduction. 

19 ‘‘(B) Water quantity conservation, restora20 tion, or enhancement projects relating to sur21 face water and groundwater resources, includ22 ing— 

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1 sive agricultural commodities or dryland 

2 farming; and 

3 ‘‘(ii) irrigation system improvement 

4 and irrigation efficiency enhancement. 

5 ‘‘(C) Drought mitigation. 

6 ‘‘(D) Flood prevention. 

7 ‘‘(E) Water retention. 

8 ‘‘(F) Habitat conservation, restoration, 

9 and enhancement. 

10 ‘‘(G) Erosion control. 

11 ‘‘(H) Forest restoration, including recovery 

12 of threatened and endangered species, improve13 ment of biodiversity, and enhancement of car14 bon sequestration. 

15 ‘‘(I) Other related activities that the Sec16 retary determines will help achieve conservation 

17 benefits. 

18 ‘‘(3) ELIGIBLE PARTNER.—The term ‘eligible 

19 partner’ means any of the following: 

20 ‘‘(A) An agricultural or silvicultural pro21 ducer association or other group of producers. 

22 ‘‘(B) A State or unit of local government. 

23 ‘‘(C) An Indian tribe. 

24 ‘‘(D) A farmer cooperative. 

25 ‘‘(E) An institution of higher education. 


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1 ‘‘(F) A municipal water or wastewater 

2 treatment entity. 

3 ‘‘(G) An organization or other nongovern4 mental entity with an established history of 

5 working cooperatively with producers on agri6 cultural land, as determined by the Secretary, 

7 to address— 

8 ‘‘(i) local conservation priorities re9 lated to agricultural production, wildlife 

10 habitat development, and nonindustrial pri11 vate forest land management; or 

12 ‘‘(ii) critical watershed-scale soil ero13 sion, water quality, sediment reduction, or 

14 other natural resource concerns. 

15 ‘‘(4) PARTNERSHIP AGREEMENT.—The term 

16 ‘partnership agreement’ means an agreement be17 tween the Secretary and an eligible partner. 

18 ‘‘(5) PROGRAM.—The term ‘program’ means 

19 the Regional Conservation Partnership Program es20 tablished by this subtitle. 

21 ‘‘SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS. 

22 ‘‘(a) PARTNERSHIP AGREEMENTS AUTHORIZED.— 

23 The Secretary may enter into a partnership agreement 

24 with an eligible partner to implement a project that will 


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1 assist producers with installing and maintaining an eligi2 ble activity. 

3 ‘‘(b) LENGTH.—A partnership agreement shall be for 

4 a period not to exceed 5 years, except that the Secretary 

5 may extend the agreement 1 time for up to 12 months 

6 when an extension is necessary to meet the objectives of 

7 the program. 

8 ‘‘(c) DUTIES OF PARTNERS.— 

9 ‘‘(1) IN GENERAL.—Under a partnership agree10 ment, the eligible partner shall— 

11 ‘‘(A) define the scope of a project, includ12 ing— 

13 ‘‘(i) the eligible activities to be imple14 mented; 

15 ‘‘(ii) the potential agricultural or non16 industrial private forest operations af17 fected; 

18 ‘‘(iii) the local, State, multi-State or 

19 other geographic area covered; and 

20 ‘‘(iv) the planning, outreach, imple21 mentation and assessment to be conducted; 

22 ‘‘(B) conduct outreach and education to 

23 producers for potential participation in the 

24 project; 


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1 ‘‘(C) at the request of a producer, act on 

2 behalf of a producer participating in the project 

3 in applying for assistance under section 1271C; 

4 ‘‘(D) leverage financial or technical assist5 ance provided by the Secretary with additional 

6 funds to help achieve the project objectives; 

7 ‘‘(E) conduct an assessment of the 

8 project’s effects; and 

9 ‘‘(F) at the conclusion of the project, re10 port to the Secretary on its results and funds 

11 leveraged. 

12 ‘‘(2) CONTRIBUTION.—A partner shall provide 

13 a significant portion of the overall costs of the scope 

14 of the project as determined by the Secretary. 

15 ‘‘(d) APPLICATIONS.— 

16 ‘‘(1) COMPETITIVE PROCESS.—The Secretary 

17 shall conduct a competitive process to select applica18 tions for partnership agreements and may assess 

19 and rank applications with similar conservation pur20 poses as a group. 

21 ‘‘(2) CRITERIA USED.—In carrying out the 

22 process described in paragraph (1), the Secretary 

23 shall make public the criteria used in evaluating ap24 plications. 


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1 ‘‘(3) CONTENT.—An application to the Sec2 retary shall include a description of— 

3 ‘‘(A) the scope of the project as described 

4 in subsection (c)(1)(A); 

5 ‘‘(B) the plan for monitoring, evaluating, 

6 and reporting on progress made towards achiev7 ing the project’s objectives; 

8 ‘‘(C) the program resources requested for 

9 the project, including the covered programs to 

10 be used and estimated funding needed from the 

11 Secretary; 

12 ‘‘(D) the partners collaborating to achieve 

13 project objectives, including their roles, respon14 sibilities, capabilities, and financial contribu15 tion; and 

16 ‘‘(E) any other elements the Secretary con17 siders necessary to adequately evaluate and 

18 competitively select applications for funding 

19 under the program. 

20 ‘‘(4) APPLICATION SELECTION.— 

21 ‘‘(A) PRIORITY TO CERTAIN APPLICA22 TIONS.—The Secretary shall give a higher pri23 ority to applications that— 


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1 ‘‘(i) assist producers in meeting or 

2 avoiding the need for a natural resource 

3 regulatory requirement; 

4 ‘‘(ii) significantly leverage non-Fed5 eral financial and technical resources and 

6 coordinate with other local, State, regional, 

7 or national efforts; 

8 ‘‘(iii) deliver high percentages of ap9 plied conservation to address conservation 

10 priorities or local, State, regional, or na11 tional conservation initiatives; 

12 ‘‘(iv) provide innovation in conserva13 tion methods and delivery, including out14 come-based performance measures and 

15 methods; or 

16 ‘‘(v) provide innovation in the im17 provement and delivery of water quality or 

18 quantity, including outcome-based perform19 ance measures and methods. 

20 ‘‘(B) OTHER APPLICATIONS.—The Sec21 retary may give priority to applications that— 

22 ‘‘(i) have a high percentage of pro23 ducers in the area to be covered by the 

24 agreement; or 


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1 ‘‘(ii) meet other factors that are im2 portant for achieving the purposes of the 

3 program, as determined by the Secretary. 

4 ‘‘SEC. 1271C. ASSISTANCE TO PRODUCERS. 

5 ‘‘(a) IN GENERAL.—The Secretary shall enter into 

6 contracts to provide financial and technical assistance 

7 to— 

8 ‘‘(1) producers participating in a project with 

9 an eligible partner as described in section 1271B; or 

10 ‘‘(2) producers that fit within the scope of a 

11 project described in section 1271B or a critical con12 servation area designated pursuant to section 

13 1271F, but who are seeking to implement an eligible 

14 activity independent of a partner. 

15 ‘‘(b) TERMS AND CONDITIONS.— 

16 ‘‘(1) CONSISTENCY WITH PROGRAM RULES.— 

17 ‘‘(A) IN GENERAL.—Except as provided in 

18 paragraph (2) and subparagraph (B), the Sec19 retary shall ensure that the terms and condi20 tions of a contract under this section are con21 sistent with the applicable rules of the covered 

22 programs to be used as part of the partnership 

23 agreement, as described in the application 

24 under section 1271B(d)(3)(C). 

25 ‘‘(B) ADJUSTMENTS.— 


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1 ‘‘(i) IN GENERAL.—The Secretary 

2 may adjust rules of a covered program, in3 cluding— 

4 ‘‘(I) operational guidance and re5 quirements for a covered program at 

6 the discretion of the Secretary so as 

7 to provide a simplified application and 

8 evaluation process; and 

9 ‘‘(II) nonstatutory, regulatory 

10 rules or provisions to better reflect 

11 unique local circumstances and pur12 poses if the Secretary determines such 

13 adjustments are necessary to achieve 

14 the purposes of the covered program. 

15 ‘‘(ii) LIMITATION.—The Secretary 

16 shall not adjust the application of statu17 tory requirements for a covered program, 

18 including requirements governing appeals, 

19 payment limits, and conservation compli20 ance. 

21 ‘‘(iii) IRRIGATION.—In States where 

22 irrigation has not been used significantly 

23 for agricultural purposes, as determined by 

24 the Secretary, the Secretary shall not limit 


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1 eligibility under section 1271B or this sec2 tion on the basis of prior irrigation history. 

3 ‘‘(2) ALTERNATIVE FUNDING ARRANGE4 MENTS.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding para6 graph (1)(A), for the purposes of providing as7 sistance for land described in subsection (a) 

8 and section 1271F, the Secretary may enter 

9 into alternative funding arrangements with a 

10 multistate water resource agency or authority 

11 if— 

12 ‘‘(i) the Secretary determines that the 

13 goals and objectives of the program will be 

14 met by the alternative funding arrange15 ments; 

16 ‘‘(ii) the agency or authority certifies 

17 that the limitations established under this 

18 section on agreements with individual pro19 ducers will not be exceeded; and 

20 ‘‘(iii) all participating producers meet 

21 applicable payment eligibility provisions. 

22 ‘‘(B) CONDITIONS.—As a condition on re23 ceipt of funding under subparagraph (A), the 

24 multistate water resource agency or authority 

25 shall agree— 


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1 ‘‘(i) to submit an annual independent 

2 audit to the Secretary that describes the 

3 use of funds under this paragraph; 

4 ‘‘(ii) to provide any data necessary for 

5 the Secretary to issue a report on the use 

6 of funds under this paragraph; and 

7 ‘‘(iii) not to use any of the funds pro8 vided pursuant to subparagraph (A) for 

9 administration or provide for administra10 tive costs through contracts with another 

11 entity. 

12 ‘‘(C) LIMITATION.—The Secretary may 

13 enter into at least 10 but not more than 20 al14 ternative funding arrangements under this 

15 paragraph. 

16 ‘‘(c) PAYMENTS.— 

17 ‘‘(1) IN GENERAL.—In accordance with statu18 tory requirements of the covered programs involved, 

19 the Secretary may make payments to a producer in 

20 an amount determined by the Secretary to be nec21 essary to achieve the purposes of the program. 

22 ‘‘(2) PAYMENTS TO CERTAIN PRODUCERS.—The 

23 Secretary may provide payments for a period of 5 

24 years— 


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1 ‘‘(A) to producers participating in a 

2 project that addresses water quantity concerns 

3 and in an amount sufficient to encourage con4 version from irrigated to dryland farming; and 

5 ‘‘(B) to producers participating in a 

6 project that addresses water quality concerns 

7 and in an amount sufficient to encourage adop8 tion of conservation practices and systems that 

9 improve nutrient management. 

10 ‘‘(3) WAIVER AUTHORITY.—To assist in the im11 plementation of the program, the Secretary may 

12 waive the applicability of the limitation in section 

13 1001D(b)(2) of this Act for participating producers 

14 if the Secretary determines that the waiver is nec15 essary to fulfill the objectives of the program. 

16 ‘‘SEC. 1271D. FUNDING. 

17 ‘‘(a) AVAILABILITY OF FUNDS.—The Secretary shall 

18 use $110,000,000 of the funds of the Commodity Credit 

19 Corporation for each of fiscal years 2014 through 2018 

20 to carry out the program established under this subtitle. 

21 ‘‘(b) DURATION OF AVAILABILITY.—Funds made 

22 available under subsection (a) shall remain available until 

23 expended. 

24 ‘‘(c) ADDITIONAL FUNDING AND ACRES.— 


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1 ‘‘(1) IN GENERAL.—In addition to the funds 

2 made available under subsection (a), the Secretary 

3 shall reserve 8 percent of the funds and acres made 

4 available for a covered program for each of fiscal 

5 years 2014 through 2018 in order to ensure addi6 tional resources are available to carry out this pro7 gram. 

8 ‘‘(2) UNUSED FUNDS AND ACRES.—Any funds 

9 or acres reserved under paragraph (1) for a fiscal 

10 year from a covered program that are not obligated 

11 under this program by April 1 of that fiscal year 

12 shall be returned for use under the covered program. 

13 ‘‘(d) ALLOCATION OF FUNDING.—Of the funds and 

14 acres made available for the program under subsections 

15 (a) and (c), the Secretary shall allocate— 

16 ‘‘(1) 25 percent of the funds and acres to 

17 projects based on a State competitive process admin18 istered by the State conservationist, with the advice 

19 of the State technical committee; 

20 ‘‘(2) 40 percent of the funds and acres to 

21 projects based on a national competitive process to 

22 be established by the Secretary; and 

23 ‘‘(3) 35 percent of the funds and acres to 

24 projects for the critical conservation areas des25 ignated in section 1271F. 


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1 ‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.— 

2 None of the funds made available under the program may 

3 be used to pay for the administrative expenses of partners. 

4 ‘‘SEC. 1271E. ADMINISTRATION. 

5 ‘‘(a) DISCLOSURE.—In addition to the criteria used 

6 in evaluating applications as described in section 

7 1271B(d)(2), the Secretary shall make publicly available 

8 information on projects selected through the competitive 

9 process described in section 1271B(d)(1). 

10 ‘‘(b) REPORTING.—Not later than December 31, 

11 2014, and for every 2 years thereafter, the Secretary shall 

12 submit to the Committee on Agriculture of the House of 

13 Representatives and the Committee on Agriculture, Nutri14 tion, and Forestry of the Senate a report on the status 

15 of projects funded under the program, including— 

16 ‘‘(1) the number and types of partners and pro17 ducers participating in the partnership agreements 

18 selected; 

19 ‘‘(2) the number of producers receiving assist20 ance; 

21 ‘‘(3) total funding committed to projects, in22 cluding Federal and non-Federal resources; and 

23 ‘‘(4) a description of how the funds under sec24 tion 1271C(b)(3) are being administered, includ25 ing— 


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1 ‘‘(A) any oversight mechanisms that the 

2 Secretary has implemented; 

3 ‘‘(B) the process through which the Sec4 retary is resolving appeals by program partici5 pants; and 

6 ‘‘(C) the means by which the Secretary is 

7 tracking adherence to any applicable provisions 

8 for payment eligibility. 

9 ‘‘SEC. 1271F. CRITICAL CONSERVATION AREAS. 

10 ‘‘(a) IN GENERAL.—When administering the funding 

11 described in section 1271D(d)(3), the Secretary shall se12 lect applications for partnership agreements and producer 

13 contracts within designated critical conservation areas. 

14 ‘‘(b) CRITICAL CONSERVATION AREA DESIGNA15 TIONS.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall des17 ignate up to 6 geographical areas as critical con18 servation areas based on the degree to which an 

19 area— 

20 ‘‘(A) includes multiple States with signifi21 cant agricultural production; 

22 ‘‘(B) is covered by an existing regional, 

23 State, binational, or multistate agreement or 

24 plan that has established objectives, goals and 


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1 work plans and is adopted by a Federal, State, 

2 or regional authority; 

3 ‘‘(C) has water quality concerns, including 

4 concerns for reducing erosion, promoting sedi5 ment control, and addressing nutrient manage6 ment activities affecting large bodies of water of 

7 regional, national, or international significance; 

8 ‘‘(D) has water quantity concerns, includ9 ing— 

10 ‘‘(i) concerns for groundwater, surface 

11 water, aquifer, or other water sources; or 

12 ‘‘(ii) a need to promote water reten13 tion and flood prevention; 

14 ‘‘(E) is vital habitat for migrating wildlife; 

15 or 

16 ‘‘(F) is subject to regulatory requirements 

17 that could reduce the economic scope of agricul18 tural operations within the area. 

19 ‘‘(2) EXPIRATION.—Critical conservation area 

20 designations under this section shall expire after 5 

21 years, subject to redesignation, except that the Sec22 retary may withdraw designation from an area if the 

23 Secretary finds the area no longer meets the condi24 tions described in paragraph (1). 

25 ‘‘(c) ADMINISTRATION.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the Secretary shall administer any part3 nership agreement or producer contract under this 

4 section in a manner that is consistent with the terms 

5 of the program. 

6 ‘‘(2) RELATIONSHIP TO EXISTING ACTIVITY.— 

7 The Secretary shall, to the maximum extent prac8 ticable, ensure that eligible activities carried out in 

9 critical conservation areas designated under this sec10 tion complement and are consistent with other Fed11 eral and State programs and water quality and 

12 quantity strategies.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall take effect on October 1, 2013. 

15 Subtitle F—Other Conservation 

16 Programs 

17 SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND. 

18 Section 1240M(e) of the Food Security Act of 1985 

19 (16 U.S.C. 3839bb(e)) is amended inserting ‘‘and 

20 $30,000,000 for each of fiscal years 2014 through 2018’’ 

21 before the period at the end. 

22 SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION 

23 PROGRAM. 

24 Section 1240O(b) of the Food Security Act of 1985 

25 (16 U.S.C. 3839bb–2(b)) is amended by inserting ‘‘and 


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1 $15,000,000 for each of fiscal years 2014 through 2018’’ 

2 before the period at the end. 

3 SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT IN4 CENTIVE PROGRAM. 

5 (a) FUNDING.—Section 1240R(f)(1) of the Food Se6 curity Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amend7 ed— 

8 (1) in the heading, by striking ‘‘FISCAL YEARS

9 2009 THROUGH 2012’’ and inserting ‘‘MANDATORY

10 FUNDING’’; and 

11 (2) by inserting ‘‘and $40,000,000 for the pe12 riod of fiscal years 2014 through 2018’’ before the 

13 period at the end. 

14 (b) REPORT ON PROGRAM EFFECTIVENESS.—Not 

15 later than 2 years after the date of enactment of this Act, 

16 the Secretary of Agriculture shall submit to the Com17 mittee on Agriculture of the House of Representatives and 

18 the Committee on Agriculture, Nutrition, and Forestry of 

19 the Senate a report evaluating the effectiveness of the vol20 untary public access and habitat incentive program estab21 lished by section 1240R of the Food Security Act of 1985 

22 (16 U.S.C. 3839bb–5), including— 

23 (1) identifying cooperating agencies; 

24 (2) identifying the number of land holdings and 

25 total acres enrolled by State; 


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1 (3) evaluating the extent of improved access on 

2 eligible land, improved wildlife habitat, and related 

3 economic benefits; and 

4 (4) any other relevant information and data re5 lating to the program that would be helpful to such 

6 Committees. 

7 (c) EFFECTIVE DATE.—The amendment made by 

8 this section shall take effect on October 1, 2013. 

9 SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED 

10 SERVICES PROGRAM. 

11 (a) FUNDING.—Section 1252 of the Food Security 

12 Act of 1985 (16 U.S.C. 3851) is amended by striking sub13 section (c) and inserting the following: 

14 ‘‘(c) FUNDING.— 

15 ‘‘(1) IN GENERAL.—The Secretary may carry 

16 out the ACES program using funds made available 

17 to carry out each program under this title. 

18 ‘‘(2) EXCLUSION.—Funds made available to 

19 carry out the conservation reserve program may not 

20 be used to carry out the ACES program.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall take effect on October 1, 2013. 


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1 SEC. 2505. SMALL WATERSHED REHABILITATION PRO2 GRAM. 

3 Section 14(h)(2)(E) of the Watershed Protection and 

4 Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is 

5 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

6 SEC. 2506. EMERGENCY WATERSHED PROTECTION PRO7 GRAM. 

8 Section 403 of the Agricultural Credit Act of 1978 

9 (16 U.S.C. 2203) is amended— 

10 (1) by striking ‘‘SEC. 402.—The Secretary’’ 

11 and inserting the following: 

12 ‘‘SEC. 402. EMERGENCY MEASURES. 

13 ‘‘(a) IN GENERAL.—The Secretary’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(b) FLOODPLAIN EASEMENTS.— 

16 ‘‘(1) MODIFICATION AND TERMINATION.—The 

17 Secretary may modify or terminate a floodplain 

18 easement administered by the Secretary under this 

19 section if— 

20 ‘‘(A) the current owner agrees to the modi21 fication or termination; and 

22 ‘‘(B) the Secretary determines that the 

23 modification or termination— 

24 ‘‘(i) will address a compelling public 

25 need for which there is no practicable al26 ternative; and 


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1 ‘‘(ii) is in the public interest. 

2 ‘‘(2) CONSIDERATION.— 

3 ‘‘(A) TERMINATION.—As consideration for 

4 termination of an easement and associated 

5 agreements under paragraph (1), the Secretary 

6 shall enter into compensatory arrangements as 

7 determined to be appropriate by the Secretary. 

8 ‘‘(B) MODIFICATION.—In the case of a 

9 modification under paragraph (1)— 

10 ‘‘(i) as a condition of the modification, 

11 the current owner shall enter into a com12 pensatory arrangement (as determined to 

13 be appropriate by the Secretary) to incur 

14 the costs of modification; and 

15 ‘‘(ii) the Secretary shall ensure that— 

16 ‘‘(I) the modification will not ad17 versely affect the floodplain functions 

18 and values for which the easement 

19 was acquired; 

20 ‘‘(II) any adverse impacts will be 

21 mitigated by enrollment and restora22 tion of other land that provides great23 er floodplain functions and values at 

24 no additional cost to the Federal Gov25 ernment; and 


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1 ‘‘(III) the modification will result 

2 in equal or greater environmental and 

3 economic values to the United 

4 States.’’. 

5 SEC. 2507. TERMINAL LAKES ASSISTANCE. 

6 Section 2507 of the Food, Security, and Rural Invest7 ment Act of 2002 (43 U.S.C. 2211 note; Public Law 107– 

8 171) is amended to read as follows: 

9 ‘‘SEC. 2507. TERMINAL LAKES ASSISTANCE. 

10 ‘‘(a) DEFINITIONS.—In this section: 

11 ‘‘(1) ELIGIBLE LAND.—The term ‘eligible land’ 

12 means privately owned agricultural land (including 

13 land in which a State has a property interest as a 

14 result of state water law)— 

15 ‘‘(A) that a landowner voluntarily agrees to 

16 sell to a State; and 

17 ‘‘(B) which— 

18 ‘‘(i)(I) is ineligible for enrollment as a 

19 wetland reserve easement established under 

20 the Agricultural Conservation Easement 

21 Program under subtitle H of the Food Se22 curity Act of 1985; 

23 ‘‘(II) is flooded to— 

24 ‘‘(aa) an average depth of at 

25 least 6.5 feet; or 


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1 ‘‘(bb) a level below which the 

2 State determines the management of 

3 the water level is beyond the control 

4 of the State or landowner; or 

5 ‘‘(III) is inaccessible for agricultural 

6 use due to the flooding of adjoining prop7 erty (such as islands of agricultural land 

8 created by flooding); 

9 ‘‘(ii) is located within a watershed 

10 with water rights available for lease or 

11 purchase; and 

12 ‘‘(iii) has been used during at least 5 

13 of the immediately preceding 30 years— 

14 ‘‘(I) to produce crops or hay; or 

15 ‘‘(II) as livestock pasture or 

16 grazing. 

17 ‘‘(2) PROGRAM.—The term ‘program’ means 

18 the voluntary land purchase program established 

19 under this section. 

20 ‘‘(3) TERMINAL LAKE.—The term ‘terminal 

21 lake’ means a lake and its associated riparian and 

22 watershed resources that is— 

23 ‘‘(A) considered flooded because there is no 

24 natural outlet for water accumulating in the 

25 lake or the associated riparian area such that 


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1 the watershed and surrounding land is consist2 ently flooded; or 

3 ‘‘(B) considered terminal because it has no 

4 natural outlet and is at risk due to a history of 

5 consistent Federal assistance to address critical 

6 resource conditions, including insufficient water 

7 available to meet the needs of the lake, general 

8 uses, and water rights. 

9 ‘‘(b) ASSISTANCE.—The Secretary shall— 

10 ‘‘(1) provide grants under subsection (c) for the 

11 purchase of eligible land impacted by a terminal lake 

12 described in subsection (a)(3)(A); and 

13 ‘‘(2) provide funds to the Secretary of the Inte14 rior pursuant to subsection (e)(2) with assistance in 

15 accordance with subsection (d) for terminal lakes de16 scribed in subsection (a)(3)(B). 

17 ‘‘(c) LAND PURCHASE GRANTS.— 

18 ‘‘(1) IN GENERAL.—Using funds provided 

19 under subsection (e)(1), the Secretary shall make 

20 available land purchase grants to States for the pur21 chase of eligible land in accordance with this sub22 section. 

23 ‘‘(2) IMPLEMENTATION.— 


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1 ‘‘(A) AMOUNT.—A land purchase grant 

2 shall be in an amount not to exceed the lesser 

3 of— 

4 ‘‘(i) 50 percent of the total purchase 

5 price per acre of the eligible land; or 

6 ‘‘(ii)(I) in the case of eligible land 

7 that was used to produce crops or hay, 

8 $400 per acre; and 

9 ‘‘(II) in the case of eligible land that 

10 was pasture or grazing land, $200 per 

11 acre. 

12 ‘‘(B) DETERMINATION OF PURCHASE

13 PRICE.—A State purchasing eligible land with a 

14 land purchase grant shall ensure, to the max15 imum extent practicable, that the purchase 

16 price of such land reflects the value, if any, of 

17 other encumbrances on the eligible land to be 

18 purchased, including easements and mineral 

19 rights. 

20 ‘‘(C) COST-SHARE REQUIRED.—To be eligi21 ble to receive a land purchase grant, a State 

22 shall provide matching non-Federal funds in an 

23 amount equal to 50 percent of the amount de24 scribed in subparagraph (A), including addi25 tional non-Federal funds. 


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1 ‘‘(D) CONDITIONS.—To receive a land pur2 chase grant, a State shall agree— 

3 ‘‘(i) to ensure that any eligible land 

4 purchased is— 

5 ‘‘(I) conveyed in fee simple to the 

6 State; and 

7 ‘‘(II) free from mortgages or 

8 other liens at the time title is trans9 ferred; 

10 ‘‘(ii) to maintain ownership of the eli11 gible land in perpetuity; 

12 ‘‘(iii) to pay (from funds other than 

13 grant dollars awarded) any costs associ14 ated with the purchase of eligible land 

15 under this section, including surveys and 

16 legal fees; and 

17 ‘‘(iv) to keep eligible land in a con18 serving use, as defined by the Secretary. 

19 ‘‘(E) LOSS OF FEDERAL BENEFITS.—Eligi20 ble land purchased with a grant under this sec21 tion shall lose eligibility for any benefits under 

22 other Federal programs, including— 

23 ‘‘(i) benefits under title XII of the 

24 Food Security Act of 1985 (16 U.S.C. 

25 3801 et seq.); 


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1 ‘‘(ii) benefits under the Federal Crop 

2 Insurance Act (7 U.S.C. 1501 et seq.); and 

3 ‘‘(iii) covered benefits described in 

4 section 1001D(b) of the Food Security Act 

5 of 1985 (7 U.S.C. 1308–3a). 

6 ‘‘(F) PROHIBITION.—Any Federal rights 

7 or benefits associated with eligible land prior to 

8 purchase by a State may not be transferred to 

9 any other land or person in anticipation of or 

10 as a result of such purchase. 

11 ‘‘(d) WATER ASSISTANCE.— 

12 ‘‘(1) IN GENERAL.—The Secretary of the Inte13 rior, acting through the Commissioner of Reclama14 tion, may use the funds described in subsection 

15 (e)(2) to administer and provide financial assistance 

16 to carry out this subsection to provide water and as17 sistance to a terminal lake described in subsection 

18 (a)(3)(B) through willing sellers or willing partici19 pants only— 

20 ‘‘(A) to lease water; 

21 ‘‘(B) to purchase land, water appurtenant 

22 to the land, and related interests; and 

23 ‘‘(C) to carry out research, support and 

24 conservation activities for associated fish, wild25 life, plant, and habitat resources. 


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1 ‘‘(2) EXCLUSIONS.—The Secretary of the Inte2 rior may not use this subsection to deliver assistance 

3 to the Great Salt Lake in Utah, lakes that are con4 sidered dry lakes, or other lakes that do not meet 

5 the purposes of this section, as determined by the 

6 Secretary of the Interior. 

7 ‘‘(3) TRANSITIONAL PROVISION.— 

8 ‘‘(A) IN GENERAL.—Notwithstanding any 

9 other provision of this section, any funds made 

10 available before the date of enactment of the 

11 Agriculture Reform, Food, and Jobs Act of 

12 2013 under a provision of law described in sub13 paragraph (B) shall remain available using the 

14 provisions of law (including regulations) in ef15 fect on the day before the date of enactment of 

16 that Act. 

17 ‘‘(B) DESCRIBED LAWS.—The provisions 

18 of law described in this section are— 

19 ‘‘(i) section 2507 of the Farm Secu20 rity and Rural Investment Act of 2002 (43 

21 U.S.C. 2211 note; Public Law 107–171) 

22 (as in effect on the day before the date of 

23 enactment of the Agriculture Reform, 

24 Food, and Jobs Act of 2013); 


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1 ‘‘(ii) section 207 of the Energy and 

2 Water Development Appropriations Act, 

3 2003 (Public Law 108–7; 117 Stat. 146); 

4 ‘‘(iii) section 208 of the Energy and 

5 Water Development Appropriations Act, 

6 2006 (Public Law 109–103; 119 Stat. 

7 2268, 123 Stat. 2856); and 

8 ‘‘(iv) section 208 of the Energy and 

9 Water Development and Related Agencies 

10 Appropriations Act, 2010 (Public Law 

11 111–85; 123 Stat. 2858, 123 Stat. 2967, 

12 125 Stat. 867). 

13 ‘‘(e) FUNDING.— 

14 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

15 There is authorized to be appropriated to the Sec16 retary to carry out subsection (c) $25,000,000, to 

17 remain available until expended. 

18 ‘‘(2) COMMODITY CREDIT CORPORATION.—As 

19 soon as practicable after the date of enactment of 

20 the Agriculture Reform, Food, and Jobs Act of 

21 2013, the Secretary shall transfer to the Bureau of 

22 Reclamation Water and Related Resources Account 

23 $150,000,000 from the funds of the Commodity 

24 Credit Corporation to carry out subsection (d), to re25 main available until expended.’’. 


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1 SEC. 2508. STUDY OF POTENTIAL IMPROVEMENTS TO THE 

2 WETLAND MITIGATION PROCESS. 

3 (a) IN GENERAL.—Not later than 180 after the date 

4 of enactment of this Act, the Secretary shall carry out a 

5 study— 

6 (1) to evaluate the use of wetland mitigation 

7 procedures under this title and the amendments 

8 made by this title; 

9 (2) to determine the impact to wildlife habitat 

10 of relaxing the acre-for-acre requirement for wetland 

11 mitigation plans that result in new wetland that pos12 sesses a function and value greater than the wetland 

13 that is replaced; and 

14 (3) to provide legislative recommendations for 

15 how wetland mitigation procedures could be im16 proved to better enable agricultural producers to use 

17 wetland mitigation in a manner that— 

18 (A) benefits wildlife habitat; and 

19 (B) allows producers greater access to the 

20 wetland mitigation process. 

21 (b) REPORT.—Not later than 2 years after the date 

22 of enactment of this Act, the Secretary shall— 

23 (1) submit to Congress a report that contains— 

24 (A) the findings of the study; and 

25 (B) any legislative recommendations under 

26 subsection (a)(3); and 


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1 (2) publish the findings of the study on a public 

2 website and in the Federal Register. 

3 SEC. 2509. SOIL AND WATER RESOURCE CONSERVATION. 

4 (a) CONGRESSIONAL POLICY AND DECLARATION OF

5 PURPOSE.—Section 4 of the Soil and Water Resources 

6 Conservation Act of 1977 (16 U.S.C. 2003) is amended— 

7 (1) in subsection (b), by inserting ‘‘and tribal’’ 

8 after ‘‘State’’ each place it appears; and 

9 (2) in subsection (c)(2), by inserting ‘‘, tribal,’’ 

10 after ‘‘State’’. 

11 (b) CONTINUING APPRAISAL OF SOIL, WATER, AND

12 RELATED RESOURCES.—Section 5 of the Soil and Water 

13 Resources Conservation Act of 1977 (16 U.S.C. 2004) is 

14 amended— 

15 (1) in subsection (a)(4), by striking ‘‘and 

16 State’’ and inserting ‘‘, State, and tribal’’; 

17 (2) in subsection (b), by inserting ‘‘, tribal’’ 

18 after ‘‘State’’ each place it appears; and 

19 (3) in subsection (c)— 

20 (A) by striking ‘‘State soil’’ and inserting 

21 ‘‘State and tribal soil’’; and 

22 (B) by striking ‘‘local’’ and inserting 

23 ‘‘local, tribal,’’. 


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1 (c) SOIL AND WATER CONSERVATION PROGRAM.— 

2 Section 6(a) of the Soil and Water Resources Conservation 

3 Act of 1977 (16 U.S.C. 2005(a)) is amended— 

4 (1) by inserting ‘‘, tribal’’ after ‘‘State’’ each 

5 place it appears; and 

6 (2) by inserting ‘‘, tribal,’’ after ‘‘private’’. 

7 (d) UTILIZATION OF AVAILABLE INFORMATION AND

8 DATA.—Section 9 of the Soil and Water Resources Con9 servation Act of 1977 (16 U.S.C. 2008) is amended by 

10 inserting ‘‘, tribal’’ after ‘‘State’’. 

11 Subtitle G—Funding and 

12 Administration 

13 SEC. 2601. FUNDING. 

14 (a) IN GENERAL.—Section 1241 of the Food Security 

15 Act of 1985 (16 U.S.C. 3841) is amended by striking sub16 section (a) and inserting the following: 

17 ‘‘(a) ANNUAL FUNDING.—For each of fiscal years 

18 2014 through 2018, the Secretary shall use the funds, fa19 cilities, and authorities of the Commodity Credit Corpora20 tion to carry out the following programs under this title 

21 (including the provision of technical assistance): 

22 ‘‘(1) The conservation reserve program under 

23 subchapter B of chapter 1 of subtitle D, including, 

24 to the maximum extent practicable— 


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1 ‘‘(A) $10,000,000 for the period of fiscal 

2 years 2014 through 2018 to provide payments 

3 under paragraph (3) of section 1234(b) in con4 nection with thinning activities conducted on 

5 land described in subparagraph (B)(iii) of that 

6 paragraph; and 

7 ‘‘(B) $50,000,000 for the period of fiscal 

8 years 2014 through 2018 to carry out section 

9 1235(f) to facilitate the transfer of land subject 

10 to contracts from retired or retiring owners and 

11 operators to beginning farmers or ranchers and 

12 socially disadvantaged farmers or ranchers. 

13 ‘‘(2) The Agricultural Conservation Easement 

14 Program under subtitle H using to the maximum ex15 tent practicable— 

16 ‘‘(A) $450,000,000 for fiscal year 2014; 

17 ‘‘(B) $475,000,000 for fiscal year 2015; 

18 ‘‘(C) $500,000,000 for fiscal year 2016; 

19 ‘‘(D) $525,000,000 for fiscal year 2017; 

20 and 

21 ‘‘(E) $250,000,000 for fiscal year 2018. 

22 ‘‘(3) The conservation security program under 

23 subchapter A of chapter 2 of subtitle D, using such 

24 sums as are necessary to administer contracts en25 tered into before September 30, 2008. 


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1 ‘‘(4) The conservation stewardship program 

2 under subchapter B of chapter 2 of subtitle D. 

3 ‘‘(5) The environmental quality incentives pro4 gram under chapter 4 of subtitle D, using, to the 

5 maximum extent practicable— 

6 ‘‘(A) $1,500,000,000 for fiscal year 2014; 

7 ‘‘(B) $1,600,000,000 for fiscal year 2015; 

8 and 

9 ‘‘(C) $1,650,000,000 for each of fiscal 

10 years 2016 through 2018.’’. 

11 (b) GUARANTEED AVAILABILITY OF FUNDS.—Sec12 tion 1241 of the Food Security Act of 1985 (16 U.S.C. 

13 3841) is amended— 

14 (1) by redesignating subsections (b) through (h) 

15 as subsections (c) through (i), respectively; 

16 (2) by inserting after subsection (a) the fol17 lowing: 

18 ‘‘(b) AVAILABILITY OF FUNDS.—Amounts made 

19 available by subsection (a) shall be used by the Secretary 

20 to carry out the programs specified in such subsection for 

21 fiscal years 2014 through 2018 and shall remain available 

22 until expended. Amounts made available for the programs 

23 specified in such subsection during a fiscal year through 

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1 cal year shall remain available for obligation during subse2 quent fiscal years, but shall reduce the amount of addi3 tional funds made available in the subsequent fiscal year 

4 by an amount equal to the amount remaining unobli5 gated.’’; and 

6 (3) in subsection (d) (as redesignated by para7 graph (1)), by striking ‘‘subsection (b)’’ and insert8 ing ‘‘subsection (c)’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect on October 1, 2013. 

11 SEC. 2602. TECHNICAL ASSISTANCE. 

12 Section 1241 of the Food Security Act of 1985 (16 

13 U.S.C. 3841) is amended by striking subsection (c) (as 

14 redesignated by section 2601(b)(1)) and inserting the fol15 lowing: 

16 ‘‘(c) TECHNICAL ASSISTANCE.— 

17 ‘‘(1) AVAILABILITY.—Commodity Credit Cor18 poration funds made available for a fiscal year for 

19 each of the programs specified in subsection (a)— 

20 ‘‘(A) shall be available for the provision of 

21 technical assistance for the programs for which 

22 funds are made available as necessary to imple23 ment the programs effectively; 

24 ‘‘(B) except for technical assistance for the 

25 conservation reserve program under subchapter 


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1 B of chapter 1 of subtitle D, shall be appor2 tioned for the provision of technical assistance 

3 in the amount determined by the Secretary, at 

4 the sole discretion of the Secretary; and 

5 ‘‘(C) shall not be available for the provi6 sion of technical assistance for conservation 

7 programs specified in subsection (a) other than 

8 the program for which the funds were made 

9 available. 

10 ‘‘(2) PRIORITY.— 

11 ‘‘(A) IN GENERAL.—In the delivery of 

12 technical assistance under the Soil Conservation 

13 and Domestic Allotment Act (16 U.S.C. 590a et 

14 seq.), the Secretary shall give priority to pro15 ducers who request technical assistance from 

16 the Secretary in order to comply for the first 

17 time with the requirements of subtitle B and 

18 subtitle C of this title as a result of the amend19 ments made by section 2609 of the Agriculture 

20 Reform, Food, and Jobs Act of 2013. 

21 ‘‘(B) REPORT.—Not later than 270 days 

22 after the date of enactment of the Agriculture 

23 Reform, Food, and Jobs Act of 2013, the Sec24 retary shall submit to the Committee on Agri25 culture of the House of Representatives and the 


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1 Committee on Agriculture, Nutrition, and For2 estry of the Senate a report regarding the ex3 tent to which the conservation compliance re4 quirements contained in the amendments made 

5 by section 2609 of the Agriculture Reform, 

6 Food, and Jobs Act of 2013 apply to and im7 pact specialty crop growers, including national 

8 analysis and surveys to determine the extent of 

9 specialty crop acreage includes highly erodible 

10 land and wetlands. 

11 ‘‘(3) REPORT.—Not later than December 31, 

12 2013, the Secretary shall submit (and update as 

13 necessary in subsequent years) to the Committee on 

14 Agriculture of the House of Representatives and the 

15 Committee on Agriculture, Nutrition, and Forestry 

16 of the Senate a report— 

17 ‘‘(A) detailing the amount of technical as18 sistance funds requested and apportioned in 

19 each program specified in subsection (a) during 

20 the preceding fiscal year; and 

21 ‘‘(B) any other data relating to this provi22 sion that would be helpful to such Committees. 

23 ‘‘(4) COMPLIANCE REPORT.—Not later than 

24 November 1 of each year, the Secretary shall submit 

25 to the Committee on Agriculture of the House of 


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1 Representatives and the Committee on Agriculture, 

2 Nutrition, and Forestry of the Senate a report that 

3 includes— 

4 ‘‘(A) a description of the extent to which 

5 the requests for highly erodible land conserva6 tion and wetland compliance determinations are 

7 being addressed in a timely manner; 

8 ‘‘(B) the total number of requests com9 pleted in the previous fiscal year; 

10 ‘‘(C) the incomplete determinations on 

11 record; and 

12 ‘‘(D) the number of requests that are still 

13 outstanding more than 1 year since the date on 

14 which the requests were received from the pro15 ducer.’’. 

16 SEC. 2603. REGIONAL EQUITY. 

17 Section 1241 of the Food Security Act of 1985 (16 

18 U.S.C. 3841) is amended by striking subsection (e) (as 

19 redesignated by section 2601(b)(1)) and inserting the fol20 lowing: 

21 ‘‘(e) REGIONAL EQUITY.— 

22 ‘‘(1) EQUITABLE DISTRIBUTION.—When deter23 mining funding allocations each fiscal year, the Sec24 retary shall, after considering available funding and 

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1 tion of funds for conservation programs under sub2 title D (excluding the conservation reserve program 

3 under subchapter B of chapter 1), subtitle H, and 

4 subtitle I to ensure equitable program participation 

5 proportional to historical funding allocations and 

6 usage by all States. 

7 ‘‘(2) MINIMUM PERCENTAGE.—In determining 

8 the specific funding allocations under paragraph (1), 

9 the Secretary shall— 

10 ‘‘(A) ensure that during the first quarter 

11 of each fiscal year each State has the oppor12 tunity to establish that the State can use an ag13 gregate allocation amount of at least 0.6 per14 cent of the funds made available for those con15 servation programs; and 

16 ‘‘(B) for each State that can so establish, 

17 provide an aggregate amount of at least 0.6 

18 percent of the funds made available for those 

19 conservation programs.’’. 

20 SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSIST21 ANCE TO CERTAIN FARMERS OR RANCHERS 

22 FOR CONSERVATION ACCESS. 

23 Subsection (h) of section 1241 of the Food Security 

24 Act of 1985 (16 U.S.C. 3841) (as redesignated by section 

25 2601(b)(1)) is amended— 


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1 (1) in paragraph (1) by striking ‘‘2012’’ and in2 serting ‘‘2018’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(4) PREFERENCE.—In providing assistance 

5 under paragraph (1), the Secretary shall give pref6 erence to a veteran farmer or rancher (as defined in 

7 section 2501(e) of the Food, Agriculture, Conserva8 tion, and Trade Act of 1990 (7 U.S.C. 2279(e))) 

9 that qualifies under subparagraph (A) or (B) of 

10 paragraph (1).’’. 

11 SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS 

12 AND ASSISTANCE. 

13 Subsection (i) of section 1241 of the Food Security 

14 Act of 1985 (16 U.S.C. 3841) (as redesignated by section 

15 2601(b)(1)) is amended— 

16 (1) in paragraph (1), by striking ‘‘wetlands re17 serve program’’ and inserting ‘‘agricultural conserva18 tion easement program’’; 

19 (2) by striking paragraphs (2) and (3) and re20 designating paragraphs (4), (5), and (6) as para21 graphs (2), (3), and (4), respectively; 

22 (3) in paragraph (3) (as so redesignated)— 

23 (A) by striking ‘‘agricultural water en24 hancement program’’ and inserting ‘‘regional 

25 conservation partnership program’’; and 


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1 (B) by striking ‘‘section 1240I(g)’’ and in2 serting ‘‘section 1271C(c)(3)’’; and 

3 (4) by adding at the end the following: 

4 ‘‘(5) Payments made under the conservation 

5 stewardship program. 

6 ‘‘(6) Waivers granted by the Secretary under 

7 section 1265B(b)(2)(C).’’. 

8 SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR CON9 SERVATION PROGRAMS. 

10 Section 1244 of the Food Security Act of 1985 (16 

11 U.S.C. 3844) is amended— 

12 (1) in subsection (a)(2), by adding at the end 

13 the following: 

14 ‘‘(E) Veteran farmers or ranchers (as de15 fined in section 2501(e) of the Food, Agri16 culture, Conservation, and Trade Act of 1990 

17 (7 U.S.C. 2279(e))).’’; 

18 (2) in subsection (d), by inserting ‘‘, H, and I’’ 

19 before the period at the end; 

20 (3) in subsection (f)— 

21 (A) in paragraph (1)(B), by striking 

22 ‘‘country’’ and inserting ‘‘county’’; 

23 (B) in paragraph (3), by striking ‘‘sub24 section (c)(2)(B) or (f)(4)’’ and inserting ‘‘sub25 section (c)(2)(A)(ii) or (f)(2)’’; and 


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1 (4) in subsection (h)(2), by inserting ‘‘includ2 ing, to the extent practicable, practices that maxi3 mize benefits for honey bees’’ after ‘‘pollinators’’; 

4 and 

5 (5) by adding at the end the following: 

6 ‘‘(j) IMPROVED ADMINISTRATIVE EFFICIENCY AND

7 EFFECTIVENESS.—In administrating a conservation pro8 gram under this title, the Secretary shall, to the maximum 

9 extent practicable— 

10 ‘‘(1) seek to reduce administrative burdens and 

11 costs to producers by streamlining conservation 

12 planning and program resources; and 

13 ‘‘(2) take advantage of new technologies to en14 hance efficiency and effectiveness. 

15 ‘‘(k) RELATION TO OTHER PAYMENTS.—Any pay16 ment received by an owner or operator under this title, 

17 including an easement payment or rental payment, shall 

18 be in addition to, and not affect, the total amount of pay19 ments that the owner or operator is otherwise eligible to 

20 receive under any of the following: 

21 ‘‘(1) This Act. 

22 ‘‘(2) The Agricultural Act of 1949 (7 U.S.C. 

23 1421 et seq.). 

24 ‘‘(3) The Agriculture Reform, Food, and Jobs 

25 Act of 2013. 


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1 ‘‘(4) Any law that succeeds a law specified in 

2 paragraph (1), (2), or (3). 

3 ‘‘(l) FUNDING FOR INDIAN TRIBES.—In carrying out 

4 the conservation stewardship program under subchapter 

5 B of chapter 2 of subtitle D and the environmental quality 

6 incentives program under chapter 4 of subtitle D, the Sec7 retary may enter into alternative funding arrangements 

8 with Indian tribes if the Secretary determines that the 

9 goals and objectives of the programs will be met by such 

10 arrangements, and that statutory limitations regarding 

11 contracts with individual producers will not be exceeded 

12 by any Tribal member.’’. 

13 SEC. 2607. RULEMAKING AUTHORITY. 

14 Subtitle E of title XII of the Food Security Act of 

15 1985 (16 U.S.C. 3841 et seq.) is amended by adding at 

16 the end the following: 

17 ‘‘SEC. 1246. REGULATIONS. 

18 ‘‘(a) IN GENERAL.—The Secretary shall promulgate 

19 such regulations as are necessary to implement programs 

20 under this title, including such regulations as the Sec21 retary determines to be necessary to ensure a fair and rea22 sonable application of the limitations established under 

23 section 1244(f). 


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1 ‘‘(b) RULEMAKING PROCEDURE.—The promulgation 

2 of regulations and administration of programs under this 

3 title— 

4 ‘‘(1) shall be carried out without regard to— 

5 ‘‘(A) the Statement of Policy of the Sec6 retary effective July 24, 1971 (36 Fed. Reg. 

7 13804), relating to notices of proposed rule8 making and public participation in rulemaking; 

9 and 

10 ‘‘(B) chapter 35 of title 44, United States 

11 Code (commonly known as the Paperwork Re12 duction Act); and 

13 ‘‘(2) shall be made as an interim rule effective 

14 on publication with an opportunity for notice and 

15 comment. 

16 ‘‘(c) CONGRESSIONAL REVIEW OF AGENCY RULE17 MAKING.—In promulgating regulations under this section, 

18 the Secretary shall use the authority provided under sec19 tion 808 of title 5, United States Code.’’. 

20 SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMIT21 TEES. 

22 Section 1261(b) of the Food Security Act of 1985 

23 (16 U.S.C. 3861(b)) is amended by striking ‘‘Not later 

24 than 180 days after the date of enactment of the Food, 

25 Conservation, and Energy Act of 2008, the Secretary shall 


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1 develop’’ and inserting ‘‘The Secretary shall review and 

2 update as necessary’’. 

3 SEC. 2609. HIGHLY ERODIBLE LAND AND WETLAND CON4 SERVATION FOR CROP INSURANCE. 

5 (a) HIGHLY ERODIBLE LAND PROGRAM INELIGI6 BILITY.— 

7 (1) IN GENERAL.—Section 1211(a)(1) of the 

8 Food Security Act of 1985 (16 U.S.C. 3811(a)(1)) 

9 is amended— 

10 (A) in subparagraph (C), by striking ‘‘or’’ 

11 at the end; 

12 (B) in subparagraph (D), by adding ‘‘or’’ 

13 at the end; and 

14 (C) by adding at the end the following: 

15 ‘‘(E) any portion of premium paid by the 

16 Federal Crop Insurance Corporation for a plan 

17 or policy of insurance under the Federal Crop 

18 Insurance Act (7 U.S.C. 1501 et seq.), on the 

19 condition that if a person is determined to have 

20 committed a violation under this subsection 

21 during a crop year, ineligibility under this sub22 paragraph shall— 

23 ‘‘(i) only apply to reinsurance years 

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1 tion of a violation, including all adminis2 trative appeals; and 

3 ‘‘(ii) not apply to the existing reinsur4 ance year or any reinsurance year prior to 

5 the date of final determination.’’. 

6 (2) EXEMPTIONS.—Section 1212(a)(2) of the 

7 Food Security Act of 1985 (16 U.S.C. 3812(a)(2)) 

8 is amended— 

9 (A) in the first sentence, by striking ‘‘(2) 

10 If,’’ and inserting the following: 

11 ‘‘(2) ELIGIBILITY BASED ON COMPLIANCE WITH

12 CONSERVATION PLAN.— 

13 ‘‘(A) IN GENERAL.—If,’’; 

14 (B) in the second sentence, by striking ‘‘In 

15 carrying’’ and inserting the following: 

16 ‘‘(B) MINIMIZATION OF DOCUMENTA17 TION.—In carrying’’; and 

18 (C) by adding at the end the following: 

19 ‘‘(C) CROP INSURANCE.—Notwithstanding 

20 section 1211(a)— 

21 ‘‘(i) in the case of a person that is 

22 subject to section 1211 for the first time 

23 after May 1, 2013, due to the amendment 

24 made by section 2609(a) of the Agriculture 

25 Reform, Food, and Jobs Act of 2013, any 


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1 person who produces an agricultural com2 modity on the land that is the basis of the 

3 payments described in section 

4 1211(a)(1)(E) shall have 5 reinsurance 

5 years after the date on which such pay6 ments become subject to section 1211 to 

7 develop and comply with an approved con8 servation plan so as to maintain eligibility 

9 for such payments; and 

10 ‘‘(ii) in the case of a person that the 

11 Secretary determines would have been in 

12 violation of section 1211(a) if the person 

13 had continued participation in the pro14 grams requiring compliance at any time 

15 after the date of enactment of the Food, 

16 Conservation, and Energy Act of 2008 (7 

17 U.S.C. 8701 et seq.) and is currently in 

18 violation of section 1211(a), the person 

19 shall have 2 reinsurance years after the 

20 date on which the payments described in 

21 section 1211(a)(1)(E) become subject to 

22 section 1211 to develop and comply with 

23 an approved conservation plan, as deter24 mined by the Secretary, so as to maintain 

25 eligibility for such payments.’’. 


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1 (b) WETLAND CONSERVATION PROGRAM INELIGI2 BILITY.—Section 1221 of the Food Security Act of 1985 

3 (16 U.S.C. 3821) is amended— 

4 (1) in subsection (b), by adding at the end the 

5 following: 

6 ‘‘(4) CROP INSURANCE.— 

7 ‘‘(A) IN GENERAL.—Except as provided in 

8 this paragraph, a person subject to a final de9 termination, including all administrative ap10 peals, of a violation of subsection (c) shall have 

11 1 reinsurance year to initiate a conservation 

12 plan to remedy the violation, as determined by 

13 the Secretary, before becoming ineligible under 

14 that subsection in the following reinsurance 

15 year to receive any payment of any portion of 

16 premium paid by the Federal Crop Insurance 

17 Corporation for a plan or policy of insurance 

18 under the Federal Crop Insurance Act (7 

19 U.S.C. 1501 et seq.). 

20 ‘‘(B) APPLICABILITY.—In the case of a 

21 person that is subject to this subsection or sub22 section (d) for the first time due to the amend23 ment made by section 2609(b) of the Agri24 culture Reform, Food, and Jobs Act of 2013, 

25 the person shall have 2 reinsurance years after 


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1 the date of final determination, including all ad2 ministrative appeals, to take such steps as the 

3 Secretary determines appropriate to remedy or 

4 mitigate the violation in accordance with sub5 section (c). 

6 ‘‘(C) GOOD FAITH.—If the Secretary de7 termines that a person subject to a final deter8 mination, including all administrative appeals, 

9 of a violation of subsection (c) acted in good 

10 faith and without intent to violate this section 

11 as described in section 1222(h), the Secretary 

12 shall give the person 1 reinsurance year to 

13 begin mitigation, restoration, or such other 

14 steps as are determined necessary by the Sec15 retary. 

16 ‘‘(D) TENANT RELIEF.— 

17 ‘‘(i) IN GENERAL.—If a tenant is de18 termined to be ineligible for payments and 

19 other benefits under this section, the Sec20 retary may limit the ineligibility only to the 

21 farm that is the basis for the ineligibility 

22 determination if the tenant has estab23 lished, to the satisfaction of the Secretary 

24 that— 


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1 ‘‘(I) the tenant has made a good 

2 faith effort to meet the requirements 

3 of this section, including enlisting the 

4 assistance of the Secretary to obtain a 

5 reasonable conservation plan for res6 toration or mitigation for the farm; 

7 ‘‘(II) the landlord on the farm re8 fuses to comply with the plan on the 

9 farm; and 

10 ‘‘(III) the Secretary determines 

11 that the lack of compliance is not a 

12 part of a scheme or device to avoid 

13 the compliance. 

14 ‘‘(ii) REPORT.—The Secretary shall 

15 provide an annual report to the Committee 

16 on Agriculture of the House of Representa17 tives and the Committee on Agriculture, 

18 Nutrition, and Forestry of the Senate con19 cerning the ineligibility determinations lim20 ited during the previous 12-month period 

21 under this subparagraph. 

22 ‘‘(E) CERTIFICATION.— 

23 ‘‘(i) IN GENERAL.—Beginning with 

24 the first full reinsurance year immediately 

25 following the date of enactment of this 


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1 paragraph, all persons seeking eligibility 

2 for the payment of a portion of the pre3 mium paid by the Federal Crop Insurance 

4 Corporation for a plan or policy of insur5 ance under the Federal Crop Insurance 

6 Act (7 U.S.C. 1501 et seq.) shall provide 

7 certification of compliance with this section 

8 as determined by the Secretary. 

9 ‘‘(ii) TIMELY EVALUATION.—The Sec10 retary shall evaluate the certification in a 

11 timely manner and— 

12 ‘‘(I) a person who has properly 

13 complied with certification shall be 

14 held harmless with regard to eligibility 

15 during the period of evaluation; and 

16 ‘‘(II) if the Secretary fails to 

17 evaluate the certification in a timely 

18 manner and the person is subse19 quently found to be in violation of 

20 subsection (c), ineligibility shall not 

21 apply to the person for that violation. 

22 ‘‘(iii) EQUITABLE CONTRIBUTION.— 

23 ‘‘(I) IN GENERAL.—If a person 

24 fails to notify the Secretary as re25 quired and is subsequently found in 


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1 violation of subsection (c), the Sec2 retary shall determine the amount of 

3 an equitable contribution to conserva4 tion in accordance with section 

5 1241(f) by the person for the viola6 tion. 

7 ‘‘(II) LIMITATION.—The con8 tribution shall not exceed the total of 

9 the portion of premium paid by the 

10 Federal Crop Insurance Corporation 

11 for a plan or policy of insurance for 

12 all years the person is determined to 

13 have been in violation subsequent to 

14 the date on which certification was 

15 first required under this subpara16 graph.’’; 

17 (2) by redesignating subsections (c), (d), and 

18 (e) as subsections (d), (e), and (f), respectively; and 

19 (3) by inserting after subsection (b) the fol20 lowing: 

21 ‘‘(c) INELIGIBILITY FOR CROP INSURANCE PREMIUM

22 ASSISTANCE.— 

23 ‘‘(1) IN GENERAL.—If a person is determined 

24 to have committed a violation under subsection (a) 

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1 gible to receive any payment of any portion of pre2 mium paid by the Federal Crop Insurance Corpora3 tion for a plan or policy of insurance under the Fed4 eral Crop Insurance Act (7 U.S.C. 1501 et seq.). 

5 ‘‘(2) APPLICABILITY.—Ineligibility under this 

6 subsection shall— 

7 ‘‘(A) only apply to reinsurance years subse8 quent to the date of final determination of a 

9 violation, including all administrative appeals; 

10 and 

11 ‘‘(B) not apply to— 

12 ‘‘(i) the existing reinsurance year; or 

13 ‘‘(ii) any reinsurance year prior to the 

14 date of final determination. 

15 ‘‘(3) DATE OF CONVERSION.—Notwithstanding 

16 subsection (d), ineligibility for crop insurance pre17 mium assistance shall apply as follows: 

18 ‘‘(A) In the case of wetland that the Sec19 retary determines was converted after the date 

20 of enactment of the Food, Conservation and 

21 Energy Act of 2008 (7 U.S.C. 8701 et seq.) but 

22 on or before May 1, 2013, and continues to be 

23 in violation, the person shall have 2 reinsurance 

24 years after the date on which this subsection 


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1 applies, to begin the mitigation process, as de2 termined by the Secretary. 

3 ‘‘(B) In the case of wetland that the Sec4 retary determines was converted after May 1, 

5 2013— 

6 ‘‘(i) subject to clause (ii), the person 

7 shall be ineligible to receive crop insurance 

8 premium subsidies in subsequent reinsur9 ance years unless section 1222(b) applies; 

10 and 

11 ‘‘(ii) for any violation that the Sec12 retary determines impacts less than 5 

13 acres of the entire farm, the person may 

14 pay a contribution in accordance with sec15 tion 1241(f) in an amount equal to 150 

16 percent of the cost of mitigation, as deter17 mined by the Secretary, for wetland res18 toration in lieu of ineligibility to receive 

19 crop insurance premium assistance. 

20 ‘‘(C) In the case of a wetland that the Sec21 retary determines was converted prior to the 

22 date of enactment of the Food, Conservation, 

23 and Energy Act of 2008 (7 U.S.C. 8701 et 

24 seq.), ineligibility under this subsection shall 

25 not apply. 


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1 ‘‘(D) In the case of an agricultural com2 modity for which an individual policy or plan of 

3 insurance is available for the first time to the 

4 person after the date of enactment of the Agri5 culture Reform, Food, and Jobs Act of 2013— 

6 ‘‘(i) ineligibility shall apply only to 

7 conversions that take place after the date 

8 on which the policy or plan of insurance 

9 first becomes available to the person; and 

10 ‘‘(ii) the person shall take such steps 

11 as the Secretary determines appropriate to 

12 mitigate any prior conversion in a timely 

13 manner but not to exceed 2 calendar years. 

14 ‘‘(4) CERTIFICATION.— 

15 ‘‘(A) IN GENERAL.—In enforcing eligibility 

16 under this subsection, the Secretary shall use 

17 existing processes and procedures for certifying 

18 compliance. 

19 ‘‘(B) RESPONSIBILITY.—The Secretary, 

20 acting through the agencies of the Department 

21 of Agriculture, shall be solely responsible for de22 termining whether a producer is eligible to re23 ceive crop insurance premium subsidies in ac24 cordance with this subsection. 


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1 ‘‘(C) LIMITATION.—The Secretary shall 

2 ensure that no agent, approved insurance pro3 vider, or employee or contractor of an agency or 

4 approved insurance provider, bears responsi5 bility or liability for the eligibility of an insured 

6 producer under this subsection, other than in 

7 cases of misrepresentation, fraud, or scheme 

8 and devise.’’. 

9 SEC. 2610. ADJUSTED GROSS INCOME LIMITATION FOR 

10 CONSERVATION PROGRAMS. 

11 Section 1001D(b)(2)(A) of the Food Security Act of 

12 1985 (7 U.S.C. 1308–3a(b)(2)(A)) is amended— 

13 (1) by striking ‘‘LIMITS.—’’ and all that follows 

14 through ‘‘clause (ii),’’ and inserting ‘‘LIMITS.—Not15 withstanding any other provision of law,’’; and 

16 (2) by striking clause (ii). 

17 Subtitle H—Repeal of Superseded 

18 Program Authorities and Tran19 sitional Provisions 

20 SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCE21 MENT PROGRAM. 

22 Section 1230 of the Food Security Act of 1985 (16 

23 U.S.C. 3830) is repealed. 


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1 SEC. 2702. EMERGENCY FORESTRY CONSERVATION RE2 SERVE PROGRAM. 

3 (a) REPEAL.—Section 1231A of the Food Security 

4 Act of 1985 (16 U.S.C. 3831a) is repealed. 

5 (b) TRANSITIONAL PROVISIONS.— 

6 (1) EFFECT ON EXISTING CONTRACTS.—The 

7 amendment made by this section shall not affect the 

8 validity or terms of any contract entered into by the 

9 Secretary of Agriculture under section 1231A of the 

10 Food Security Act of 1985 (16 U.S.C. 3831a) before 

11 October 1, 2013, or any payments required to be 

12 made in connection with the contract. 

13 (2) FUNDING.—The Secretary may use funds 

14 made available to carry out the conservation reserve 

15 program under subchapter B of chapter 1 of subtitle 

16 D of title XII of the Food Security Act of 1985 (16 

17 U.S.C. 3831 et seq.) to continue to carry out con18 tracts referred to in paragraph (1) using the provi19 sions of law and regulation applicable to such con20 tracts as in existence on September 30, 2013. 

21 (c) EFFECTIVE DATE.—The amendment made by 

22 this section shall take effect on October 1, 2013. 

23 SEC. 2703. WETLANDS RESERVE PROGRAM. 

24 (a) REPEAL.—Subchapter C of chapter 1 of subtitle 

25 D of title XII of the Food Security Act of 1985 (16 U.S.C. 

26 3837 et seq.) is repealed. 


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1 (b) TRANSITIONAL PROVISIONS.— 

2 (1) EFFECT ON EXISTING CONTRACTS AND

3 EASEMENTS.—The amendment made by this section 

4 shall not affect the validity or terms of any contract 

5 or easement entered into by the Secretary of Agri6 culture under subchapter C of chapter 1 of subtitle 

7 D of title XII of the Food Security Act of 1985 (16 

8 U.S.C. 3837 et seq.) before October 1, 2013, or any 

9 payments required to be made in connection with the 

10 contract or easement. 

11 (2) FUNDING.— 

12 (A) USE OF PRIOR YEAR FUNDS.—Not13 withstanding the repeal of subchapter C of 

14 chapter 1 of subtitle D of title XII of the Food 

15 Security Act of 1985 (16 U.S.C. 3837 et seq.), 

16 any funds made available from the Commodity 

17 Credit Corporation to carry out the wetlands 

18 reserve program under that subchapter for fis19 cal years 2009 through 2013 shall be made 

20 available to carry out contracts or easements 

21 referred to in paragraph (1) that were entered 

22 into prior to October 1, 2013 (including the 

23 provision of technical assistance), provided that 

24 no such contract or easement is modified so as 

25 to increase the amount of the payment received. 


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1 (B) OTHER.—The Secretary may use 

2 funds made available to carry out the agricul3 tural conservation easement program under 

4 subtitle H of title XII of the Food Security Act 

5 of 1985, as added by section 2301, to continue 

6 to carry out contracts and easements referred 

7 to in paragraph (1) using the provisions of law 

8 and regulation applicable to such contracts and 

9 easements as in existence on September 30, 

10 2013. 

11 (c) EFFECTIVE DATE.—The amendment made by 

12 this section shall take effect on October 1, 2013. 

13 SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM 

14 VIABILITY PROGRAM. 

15 (a) REPEAL.—Subchapter C of chapter 2 of subtitle 

16 D of title XII of the Food Security Act of 1985 (16 U.S.C. 

17 3838h et seq.) is repealed. 

18 (b) TRANSITIONAL PROVISIONS.— 

19 (1) EFFECT ON EXISTING AGREEMENTS AND

20 EASEMENTS.—The amendment made by this section 

21 shall not affect the validity or terms of any agree22 ment or easement entered into by the Secretary of 

23 Agriculture under subchapter C of chapter 2 of sub24 title D of title XII of the Food Security Act of 1985 

25 (16 U.S.C. 3838h et seq.) before October 1, 2013, 


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1 or any payments required to be made in connection 

2 with the agreement or easement. 

3 (2) FUNDING.— 

4 (A) USE OF PRIOR YEAR FUNDS.—Not5 withstanding the repeal of subchapter C of 

6 chapter 2 of subtitle D of title XII of the Food 

7 Security Act of 1985 (16 U.S.C. 3838h et seq.), 

8 any funds made available from the Commodity 

9 Credit Corporation to carry out the farmland 

10 protection program under that subchapter for 

11 fiscal years 2009 through 2013 shall be made 

12 available to carry out agreements and ease13 ments referred to in paragraph (1) that were 

14 entered into prior to October 1, 2013 (including 

15 the provision of technical assistance). 

16 (B) OTHER.—On exhaustion of funds 

17 made available under subparagraph (A), the 

18 Secretary may use funds made available to 

19 carry out the agricultural conservation ease20 ment program under subtitle H of title XII of 

21 the Food Security Act of 1985, as added by 

22 section 2301, to continue to carry out agree23 ments and easements referred to in paragraph 

24 (1) using the provisions of law and regulation 


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1 applicable to such agreements and easement as 

2 in existence on September 30, 2013. 

3 (c) EFFECTIVE DATE.—The amendment made by 

4 this section shall take effect on October 1, 2013. 

5 SEC. 2705. GRASSLAND RESERVE PROGRAM. 

6 (a) REPEAL.—Subchapter D of chapter 2 of subtitle 

7 D of title XII of the Food Security Act of 1985 (16 U.S.C. 

8 3838n et seq.) is repealed. 

9 (b) TRANSITIONAL PROVISIONS.— 

10 (1) EFFECT ON EXISTING CONTRACTS, AGREE11 MENTS, AND EASEMENTS.—The amendment made 

12 by this section shall not affect the validity or terms 

13 of any contract, agreement, or easement entered into 

14 by the Secretary of Agriculture under subchapter D 

15 of chapter 2 of subtitle D of title XII of the Food 

16 Security Act of 1985 (16 U.S.C. 3838n et seq.) be17 fore October 1, 2013, or any payments required to 

18 be made in connection with the contract, agreement, 

19 or easement. 

20 (2) FUNDING.— 

21 (A) USE OF PRIOR YEAR FUNDS.—Not22 withstanding the repeal of subchapter D of 

23 chapter 2 of subtitle D of title XII of the Food 

24 Security Act of 1985 (16 U.S.C. 3838n et seq.), 

25 any funds made available from the Commodity 


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1 Credit Corporation to carry out the grassland 

2 reserve program under that subchapter for fis3 cal years 2009 through 2013 shall be made 

4 available to carry out contracts, agreements, or 

5 easements referred to in paragraph (1) that 

6 were entered into prior to October 1, 2013 (in7 cluding the provision of technical assistance), 

8 provided that no such contract, agreement, or 

9 easement is modified so as to increase the 

10 amount of the payment received. 

11 (B) OTHER.—The Secretary may use 

12 funds made available to carry out the agricul13 tural conservation easement program under 

14 subtitle H of title XII of the Food Security Act 

15 of 1985, as added by section 2301, to continue 

16 to carry out contracts, agreements, and ease17 ments referred to in paragraph (1) using the 

18 provisions of law and regulation applicable to 

19 such contracts, agreements, and easements as 

20 in existence on September 30, 2013. 

21 (c) EFFECTIVE DATE.—The amendment made by 

22 this section shall take effect on October 1, 2013. 


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1 SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PRO2 GRAM. 

3 (a) REPEAL.—Section 1240I of the Food Security 

4 Act of 1985 (16 U.S.C. 3839aa–9) is repealed. 

5 (b) TRANSITIONAL PROVISIONS.— 

6 (1) EFFECT ON EXISTING CONTRACTS AND

7 AGREEMENTS.—The amendment made by this sec8 tion shall not affect the validity or terms of any con9 tract or agreement entered into by the Secretary of 

10 Agriculture under section 1240I of the Food Secu11 rity Act of 1985 (16 U.S.C. 3839aa–9) before Octo12 ber 1, 2013, or any payments required to be made 

13 in connection with the contract or agreement. 

14 (2) FUNDING.— 

15 (A) USE OF PRIOR YEAR FUNDS.—Not16 withstanding the repeal of section 1240I of the 

17 Food Security Act of 1985 (16 U.S.C. 3839aa– 

18 9), any funds made available from the Com19 modity Credit Corporation to carry out the ag20 ricultural water enhancement program under 

21 that section for fiscal years 2009 through 2013 

22 shall be made available to carry out contracts 

23 and agreements referred to in paragraph (1) 

24 that were entered into prior to October 1, 2013 

25 (including the provision of technical assistance). 


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1 (B) OTHER.—On exhaustion of funds 

2 made available under subparagraph (A), the 

3 Secretary may use funds made available to 

4 carry out the regional conservation partnerships 

5 program under subtitle I of title XII of the 

6 Food Security Act of 1985, as added by section 

7 2401, to continue to carry out contracts and 

8 agreements referred to in paragraph (1) using 

9 the provisions of law and regulation applicable 

10 to such contracts and agreements as in exist11 ence on September 30, 2013. 

12 (c) EFFECTIVE DATE.—The amendment made by 

13 this section shall take effect on October 1, 2013. 

14 SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM. 

15 (a) REPEAL.—Section 1240N of the Food Security 

16 Act of 1985 (16 U.S.C. 3839bb–1) is repealed. 

17 (b) TRANSITIONAL PROVISIONS.— 

18 (1) EFFECT ON EXISTING CONTRACTS.—The 

19 amendment made by this section shall not affect the 

20 validity or terms of any contract entered into by the 

21 Secretary of Agriculture under section 1240N of the 

22 Food Security Act of 1985 (16 U.S.C. 3839bb–1) 

23 before October 1, 2013, or any payments required to 

24 be made in connection with the contract. 

25 (2) FUNDING.— 


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1 (A) USE OF PRIOR YEAR FUNDS.—Not2 withstanding the repeal of section 1240N of the 

3 Food Security Act of 1985 (16 U.S.C. 3839bb– 

4 1), any funds made available from the Com5 modity Credit Corporation to carry out the 

6 wildlife habitat incentive program under that 

7 section for fiscal years 2009 through 2013 shall 

8 be made available to carry out contracts re9 ferred to in paragraph (1) which were entered 

10 into prior to October 1, 2013 (including the 

11 provision of technical assistance). 

12 (B) OTHER.—On exhaustion of funds 

13 made available under subparagraph (A), the 

14 Secretary may use funds made available to 

15 carry out the environmental quality incentives 

16 program under chapter 4 of subtitle D of title 

17 XII of the Food Security Act of 1985 (16 

18 U.S.C. 3839aa et seq.) to continue to carry out 

19 contracts referred to in paragraph (1) using the 

20 provisions of law and regulation applicable to 

21 such contracts as in existence on September 30, 

22 2013. 

23 (c) EFFECTIVE DATE.—The amendment made by 

24 this section shall take effect on October 1, 2013. 


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1 SEC. 2708. GREAT LAKES BASIN PROGRAM. 

2 (a) REPEAL.—Section 1240P of the Food Security 

3 Act of 1985 (16 U.S.C. 3839bb–3) is repealed. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall take effect on October 1, 2013. 

6 SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM. 

7 (a) REPEAL.—Section 1240Q of the Food Security 

8 Act of 1985 (16 U.S.C. 3839bb–4) is repealed. 

9 (b) TRANSITIONAL PROVISIONS.— 

10 (1) EFFECT ON EXISTING CONTRACTS, AGREE11 MENTS, AND EASEMENTS.—The amendment made 

12 by this section shall not affect the validity or terms 

13 of any contract, agreement, or easement entered into 

14 by the Secretary of Agriculture under section 1240Q 

15 of the Food Security Act of 1985 (16 U.S.C. 

16 3839bb–4) before October 1, 2013, or any payments 

17 required to be made in connection with the contract, 

18 agreement, or easement. 

19 (2) FUNDING.— 

20 (A) USE OF PRIOR YEAR FUNDS.—Not21 withstanding the repeal of section 1240Q of the 

22 Food Security Act of 1985 (16 U.S.C. 3839bb– 

23 4), any funds made available from the Com24 modity Credit Corporation to carry out the 

25 Chesapeake Bay watershed program under that 

26 section for fiscal years 2009 through 2013 shall 


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1 be made available to carry out contracts, agree2 ments, and easements referred to in paragraph 

3 (1) that were entered into prior to October 1, 

4 2013 (including the provision of technical as5 sistance). 

6 (B) OTHER.—The Secretary may use 

7 funds made available to carry out the regional 

8 conservation partnerships program under sub9 title I of title XII of the Food Security Act of 

10 1985, as added by section 2401, to continue to 

11 carry out contracts, agreements, and easements 

12 referred to in paragraph (1) using the provi13 sions of law and regulation applicable to such 

14 contracts, agreements, and easements as in ex15 istence on September 30, 2013. 

16 (c) EFFECTIVE DATE.—The amendment made by 

17 this section shall take effect on October 1, 2013. 

18 SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP 

19 INITIATIVE. 

20 (a) REPEAL.—Section 1243 of the Food Security Act 

21 of 1985 (16 U.S.C. 3843) is repealed. 

22 (b) TRANSITIONAL PROVISIONS.— 

23 (1) EFFECT ON EXISTING CONTRACTS AND

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1 tract or agreement entered into by the Secretary of 

2 Agriculture under section 1243 of the Food Security 

3 Act of 1985 (16 U.S.C. 3843) before October 1, 

4 2013, or any payments required to be made in con5 nection with the contract or agreement. 

6 (2) FUNDING.— 

7 (A) USE OF PRIOR YEAR FUNDS.—Not8 withstanding the repeal of section 1243 of the 

9 Food Security Act of 1985 (16 U.S.C. 3843), 

10 any funds made available from the Commodity 

11 Credit Corporation to carry out the cooperative 

12 conservation partnership initiative under that 

13 section for fiscal years 2009 through 2013 shall 

14 be made available to carry out contracts and 

15 agreements referred to in paragraph (1) that 

16 were entered into prior to October 1, 2013 (in17 cluding the provision of technical assistance). 

18 (B) OTHER.—On exhaustion of funds 

19 made available under subparagraph (A), the 

20 Secretary may use funds made available to 

21 carry out the regional conservation partnerships 

22 program under subtitle I of title XII of the 

23 Food Security Act of 1985, as added by section 

24 2401, to continue to carry out contracts and 

25 agreements referred to in paragraph (1) using 


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1 the provisions of law and regulation applicable 

2 to such contracts and agreements as in exist3 ence on September 30, 2013. 

4 (c) EFFECTIVE DATE.—The amendment made by 

5 this section shall take effect on October 1, 2013. 

6 SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM. 

7 Chapter 3 of subtitle D of title XII of the Food Secu8 rity Act of 1985 (16 U.S.C. 3839 et seq.) is repealed. 

9 SEC. 2712. TECHNICAL AMENDMENTS. 

10 (a) Section 1201(a) of the Food Security Act of 1985 

11 (16 U.S.C. 3801(a)) is amended in the matter preceding 

12 paragraph (1) by striking ‘‘E’’ and inserting ‘‘I’’. 

13 (b) Section 1211(a) of the Food Security Act of 1985 

14 (16 U.S.C. 3811(a)) is amended by striking ‘‘predomi15 nate’’ each place it appears and inserting ‘‘predominant’’. 

16 (c) Section 1242(i) of the Food Security Act of 1985 

17 (16 U.S.C. 3842(i)) is amended in the subsection heading 

18 by striking ‘‘SPECIALITY’’ and inserting ‘‘SPECIALTY’’. 

19 TITLE III—TRADE 

20 Subtitle A—Food for Peace Act 

21 SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS 

22 THROUGH WHICH NONEMERGENCY ASSIST23 ANCE IS PROVIDED. 

24 Effective October 1, 2013, section 202(e)(1) of the 

25 Food for Peace Act (7 U.S.C. 1722(e)(1)) is amended— 


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1 (1) in the matter preceding subparagraph (A), 

2 by striking ‘‘13 percent’’ and inserting ‘‘15 per3 cent’’; and 

4 (2) in subparagraph (A), by striking ‘‘new’’ and 

5 inserting ‘‘and enhancing’’. 

6 SEC. 3002. FOOD AID QUALITY. 

7 Section 202(h) of the Food for Peace Act (7 U.S.C. 

8 1722(h)) is amended— 

9 (1) by striking paragraph (1) and inserting the 

10 following: 

11 ‘‘(1) IN GENERAL.—The Administrator shall 

12 use funds made available for fiscal year 2014 and 

13 subsequent fiscal years to carry out this title— 

14 ‘‘(A) to assess the types and quality of ag15 ricultural commodities and products donated for 

16 food aid; 

17 ‘‘(B) to adjust products and formulations, 

18 including potential introduction of new 

19 fortificants and products, as necessary to cost20 effectively meet nutrient needs of target popu21 lations; 

22 ‘‘(C) to test prototypes; 

23 ‘‘(D) to adopt new specifications or im24 prove existing specifications for micronutrient 

25 fortified food aid products, based on the latest 


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1 developments in food and nutrition science, and 

2 in coordination with other international part3 ners; 

4 ‘‘(E) to develop new program guidance to 

5 facilitate improved matching of products to pur6 poses having nutritional intent, in coordination 

7 with other international partners; 

8 ‘‘(F) to develop improved guidance for im9 plementing partners on how to address nutri10 tional deficiencies that emerge among recipients 

11 for whom food assistance is the sole source of 

12 diet in emergency programs that extend beyond 

13 1 year, in coordination with other international 

14 partners; and 

15 ‘‘(G) to evaluate, in appropriate settings 

16 and as necessary, the performance and cost-ef17 fectiveness of new or modified specialized food 

18 products and program approaches designed to 

19 meet the nutritional needs of the most vulner20 able groups, such as pregnant and lactating 

21 mothers, and children under the age of 5.’’; and 

22 (2) in paragraph (3), by striking ‘‘2011’’ and 

23 inserting ‘‘2018’’. 


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1 SEC. 3003. MINIMUM LEVELS OF ASSISTANCE. 

2 Section 204(a) of the Food for Peace Act (7 U.S.C. 

3 1724(a)) is amended— 

4 (1) in paragraph (1), by striking ‘‘2012’’ and 

5 inserting ‘‘2018’’; and 

6 (2) in paragraph (2), by striking ‘‘2012’’ and 

7 inserting ‘‘2018’’. 

8 SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULT9 ATIVE GROUP. 

10 Section 205(f) of the Food for Peace Act (7 U.S.C. 

11 1725(f)) is amended by striking ‘‘2012’’ and inserting 

12 ‘‘2018’’. 

13 SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF 

14 FOOD FOR PEACE ACT PROGRAMS. 

15 Section 207(f) of the Food for Peace Act (7 U.S.C. 

16 1726a(f)) is amended— 

17 (1) by striking paragraph (4) and redesignating 

18 paragraphs (5) and (6) as paragraphs (4) and (5), 

19 respectively; and 

20 (2) in subparagraph (A) of paragraph (5) (as 

21 so redesignated)— 

22 (A) by striking ‘‘2012’’ and inserting 

23 ‘‘2018’’; and 

24 (B) by striking ‘‘during fiscal year 2009’’ 

25 and inserting ‘‘during the period of fiscal years 

26 2014 through 2018’’. 


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1 SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID 

2 TRANSPORTATION, DELIVERY, AND DIS3 TRIBUTION OF SHELF-STABLE PRE4 PACKAGED FOODS. 

5 Section 208(f) of the Food for Peace Act (7 U.S.C. 

6 1726b(f)) is amended by striking ‘‘2012’’ and inserting 

7 ‘‘2018’’. 

8 SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMOD9 ITIES MONETIZED. 

10 Section 403 of the Food for Peace Act (7 U.S.C. 

11 1733) is amended by adding at the end the following: 

12 ‘‘(m) LIMITATION ON MONETIZATION OF COMMOD13 ITIES.— 

14 ‘‘(1) LIMITATION.— 

15 ‘‘(A) IN GENERAL.—Unless the Adminis16 trator grants a waiver under paragraph (2), no 

17 commodity may be made available under this 

18 Act unless the rate of return for the commodity 

19 (as determined under subparagraph (B)) is at 

20 least 70 percent. 

21 ‘‘(B) RATE OF RETURN.—For purposes of 

22 subparagraph (A), the rate of return shall be 

23 equal to the proportion that— 

24 ‘‘(i) the proceeds the implementing 

25 partners generate through monetization; 

26 bears to 


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1 ‘‘(ii) the cost to the Federal Govern2 ment to procure and ship the commodities 

3 to a recipient country for monetization. 

4 ‘‘(2) WAIVER AUTHORITY.—The Administrator 

5 may waive the application of the limitation in para6 graph (1) with regard to a commodity for a recipient 

7 country if the Administrator determines that it is 

8 necessary to achieve the purposes of this Act in the 

9 recipient country. 

10 ‘‘(3) REPORT.—Not later than 90 days after a 

11 waiver is granted under paragraph (2), the Adminis12 trator shall prepare, publish in the Federal Register, 

13 and submit to the Committees on Foreign Affairs, 

14 Agriculture, and Appropriations of the House of 

15 Representatives, and the Committees on Appropria16 tions, Foreign Relations, and Agriculture, Nutrition, 

17 and Forestry of the Senate a report that— 

18 ‘‘(A) contains the reasons for granting the 

19 waiver and the actual rate of return for the 

20 commodity; and 

21 ‘‘(B) includes for the commodity the costs 

22 of bagging or further processing, ocean trans23 portation, inland transportation in the recipient 

24 country, storage costs, and any other informaVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00328 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 tion that the Administrator determines to be 

2 necessary.’’. 

3 SEC. 3008. FLEXIBILITY. 

4 Section 406 of the Food for Peace Act (7 U.S.C. 

5 1736) is amended— 

6 (1) by redesignating subsections (c) and (d) as 

7 subsections (d) and (e), respectively; and 

8 (2) by inserting after subsection (b) the fol9 lowing: 

10 ‘‘(c) FLEXIBILITY.—Notwithstanding any other pro11 vision of law and as necessary to achieve the purposes of 

12 this Act, funds available under this Act may be used to 

13 pay the costs of up to 20 percent of activities conducted 

14 in recipient countries by nonprofit voluntary organiza15 tions, cooperatives, or intergovernmental agencies or orga16 nizations.’’. 

17 SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, 

18 AND STORAGE OF AGRICULTURAL COMMOD19 ITIES FOR PREPOSITIONING IN THE UNITED 

20 STATES AND FOREIGN COUNTRIES. 

21 Section 407 of the Food for Peace Act (7 U.S.C. 

22 1736a) is amended— 

23 (1) in subparagraph (c)(4)(A)— 

24 (A) by striking ‘‘2012’’ and inserting 

25 ‘‘2018’’; and 


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1 (B) by striking ‘‘for each such fiscal year 

2 not more than $10,000,000 of such funds’’ and 

3 inserting ‘‘for each of fiscal years 2001 through 

4 2012 not more than $10,000,000 of such funds 

5 and for each of fiscal years 2014 through 2018 

6 not more than $15,000,000 of such funds’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(g) FUNDING FOR TESTING OF FOOD AID SHIP9 MENTS.—Funds made available for agricultural products 

10 acquired under this Act and section 3107 of the Farm 

11 Security and Rural Investment Act of 2002 (7 U.S.C. 

12 1736o–1) may be used to pay for the testing of those agri13 cultural products.’’. 

14 SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE 

15 SALES OR TO PROVIDE OTHER ASSISTANCE. 

16 Section 408 of the Food for Peace Act (7 U.S.C. 

17 1736b) is amended by striking ‘‘2012’’ and inserting 

18 ‘‘2018’’. 

19 SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD AS20 SISTANCE. 

21 Section 412 of the Food for Peace Act (7 U.S.C. 

22 1736f) is amended by striking subsection (e) and inserting 

23 the following: 

24 ‘‘(e) MINIMUM LEVEL OF NONEMERGENCY FOOD AS25 SISTANCE.— 


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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

2 of the amounts made available to carry out emer3 gency and nonemergency food assistance programs 

4 under title II, not less than 20 nor more than 30 

5 percent for each of fiscal years 2014 through 2018 

6 shall be expended for nonemergency food assistance 

7 programs under title II. 

8 ‘‘(2) MINIMUM LEVEL.—The amount made 

9 available to carry out nonemergency food assistance 

10 programs under title II shall not be less than 

11 $275,000,000 for any fiscal year.’’. 

12 SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PRO13 GRAMS REPORT. 

14 Section 413 of the Food for Peace Act (7 U.S.C. 

15 1736g) is amended— 

16 (1) by striking ‘‘(a) IN GENERAL.—To the 

17 maximum’’ and inserting ‘‘To the maximum’’; and 

18 (2) by striking subsection (b). 

19 SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS. 

20 (a) ELIMINATION OF OBSOLETE REFERENCE TO

21 STUDY.—Section 415(a)(2)(B) of the Food for Peace Act 

22 (7 U.S.C. 1736g–2(a)(2)(B)) is amended by striking ‘‘, 

23 using recommendations’’ and all that follows through 

24 ‘‘quality enhancements’’. 


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1 (b) EXTENSION.—Section 415(c) of the Food for 

2 Peace Act (7 U.S.C. 1736g–2(c)) is amended by striking 

3 ‘‘2012’’ and inserting ‘‘2018’’. 

4 SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARM5 ER-TO-FARMER PROGRAM. 

6 Section 501 of the Food for Peace Act (7 U.S.C. 

7 1737) is amended— 

8 (1) in subsection (d)— 

9 (A) by striking ‘‘0.5 percent’’ and inserting 

10 ‘‘0.6 percent’’; and 

11 (B) by striking ‘‘2012’’ and inserting 

12 ‘‘2018’’; and 

13 (2) in subsection (e)(1), by striking ‘‘2012’’ and 

14 inserting ‘‘2018’’. 

15 SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH 

16 KOREA. 

17 (a) IN GENERAL.—No amounts may be obligated or 

18 expended to provide assistance under title II of the Food 

19 for Peace Act (7 U.S.C. 1721 et seq.) to the Democratic 

20 People’s Republic of Korea. 

21 (b) NATIONAL INTEREST WAIVER.—The President 

22 may waive subsection (a) if the President determines and 

23 certifies to the Committees on Agriculture, Nutrition, and 

24 Forestry and Foreign Relations of the Senate and the 

25 Committees on Agriculture and Foreign Affairs of the 


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1 House of Representatives that the waiver is in the national 

2 interest of the United States. 

3 Subtitle B—Agricultural Trade Act 

4 of 1978 

5 SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS. 

6 Section 211 of the Agricultural Trade Act of 1978 

7 (7 U.S.C. 5641) is amended by striking subsection (b) and 

8 inserting the following: 

9 ‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—The 

10 Commodity Credit Corporation shall make available for 

11 each of fiscal years 2014 through 2018 credit guarantees 

12 under section 202(a) in an amount equal to not more than 

13 $4,500,000,000 in credit guarantees.’’. 

14 SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM. 

15 Section 211(c)(1)(A) of the Agricultural Trade Act 

16 of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking 

17 ‘‘2012’’ and inserting ‘‘2018’’. 

18 SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR 

19 PROGRAM. 

20 Section 703(a) of the Agricultural Trade Act of 1978 

21 (7 U.S.C. 5723(a)) is amended by striking ‘‘2012’’ and 

22 inserting ‘‘2018’’. 


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1 Subtitle C—Other Agricultural 

2 Trade Laws 

3 SEC. 3201. FOOD FOR PROGRESS ACT OF 1985. 

4 (a) EXTENSION.—The Food for Progress Act of 1985 

5 (7 U.S.C. 1736o) is amended— 

6 (1) in subsection (f)(3), by striking ‘‘2012’’ and 

7 inserting ‘‘2018’’; 

8 (2) in subsection (g), by striking ‘‘2012’’ and 

9 inserting ‘‘2018’’; 

10 (3) in subsection (k), by striking ‘‘2012’’ and 

11 inserting ‘‘2018’’; and 

12 (4) in subsection (l)(1), by striking ‘‘2012’’ and 

13 inserting ‘‘2018’’. 

14 (b) REPEAL OF COMPLETED PROJECT.—Subsection 

15 (f) of the Food for Progress Act of 1985 (7 U.S.C. 1736o) 

16 is amended by striking paragraph (6). 

17 (c) FLEXIBILITY.—The Food for Progress Act of 

18 1985 (7 U.S.C. 1736o) is amended in subsection (l) by 

19 adding at the end the following: 

20 ‘‘(5) FLEXIBILITY.—Notwithstanding any other 

21 provision of law and as necessary to achieve the pur22 poses of this Act, funds available under this Act may 

23 be used to pay the costs of up to 20 percent of ac24 tivities conducted in recipient countries by nonprofit 


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1 voluntary organizations, cooperatives, or intergovern2 mental agencies or organizations.’’. 

3 (d) LIMITATION ON TOTAL VOLUME OF COMMOD4 ITIES MONETIZED.—The Food for Progress Act of 1985 

5 (7 U.S.C. 1736o) is amended by adding at the end the 

6 following: 

7 ‘‘(p) LIMITATION ON MONETIZATION OF COMMOD8 ITIES.— 

9 ‘‘(1) LIMITATION.— 

10 ‘‘(A) IN GENERAL.—Unless the Secretary 

11 grants a waiver under paragraph (2), no eligible 

12 commodity may be made available under this 

13 section unless the rate of return for the eligible 

14 commodity (as determined under subparagraph 

15 (B)) is at least 70 percent. 

16 ‘‘(B) RATE OF RETURN.—For purposes of 

17 subparagraph (A), the rate of return shall be 

18 equal to the proportion that— 

19 ‘‘(i) the proceeds the implementing 

20 partners generate through monetization; 

21 bears to 

22 ‘‘(ii) the cost to the Federal Govern23 ment to procure and ship the eligible com24 modities to a recipient country for mone25 tization. 


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1 ‘‘(2) WAIVER AUTHORITY.—The Secretary may 

2 waive the application of the limitation in paragraph 

3 (1) with regard to an eligible commodity for a recipi4 ent country if the Secretary determines that it is 

5 necessary to achieve the purposes of this Act in the 

6 recipient country. 

7 ‘‘(3) REPORT.—Not later than 90 days after a 

8 waiver is granted under paragraph (2), the Sec9 retary shall prepare, publish in the Federal Register, 

10 and submit to the Committees on Foreign Affairs, 

11 Agriculture, and Appropriations of the House of 

12 Representatives, and the Committees on Appropria13 tions, Foreign Relations, and Agriculture, Nutrition, 

14 and Forestry of the Senate a report that— 

15 ‘‘(A) contains the reasons for granting the 

16 waiver and the actual rate of return for the eli17 gible commodity; and 

18 ‘‘(B) includes for the commodity the costs 

19 of bagging or further processing, ocean trans20 portation, inland transportation in the recipient 

21 country, storage costs, and any other informa22 tion that the Secretary determines to be nec23 essary.’’. 


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1 SEC. 3202. BILL EMERSON HUMANITARIAN TRUST. 

2 Section 302 of the Bill Emerson Humanitarian Trust 

3 Act (7 U.S.C. 1736f–1) is amended— 

4 (1) in subsection (b)(2)(B)(i), by striking 

5 ‘‘2012’’ both places it appears and inserting ‘‘2018’’; 

6 and 

7 (2) in subsection (h), by striking ‘‘2012’’ both 

8 places it appears and inserting ‘‘2018’’. 

9 SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO 

10 EMERGING MARKETS. 

11 (a) DIRECT CREDITS OR EXPORT CREDIT GUARAN12 TEES.—Section 1542(a) of the Food, Agriculture, Con13 servation, and Trade Act of 1990 (Public Law 101–624; 

14 7 U.S.C. 5622 note) is amended by striking ‘‘2012’’ and 

15 inserting ‘‘2018’’. 

16 (b) DEVELOPMENT OF AGRICULTURAL SYSTEMS.— 

17 Section 1542(d)(1)(A)(i) of the Food, Agriculture, Con18 servation, and Trade Act of 1990 (Public Law 101–624; 

19 7 U.S.C. 5622 note) is amended by striking ‘‘2012’’ and 

20 inserting ‘‘2018’’. 

21 SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR 

22 EDUCATION AND CHILD NUTRITION PRO23 GRAM. 

24 (a) REAUTHORIZATION.—Section 3107(l)(2) of the 

25 Farm Security and Rural Investment Act of 2002 (7 


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1 U.S.C. 1736o–1(l)(2)) is amended by striking ‘‘2012’’ and 

2 inserting ‘‘2018’’. 

3 (b) TECHNICAL CORRECTION.—Section 3107(d) of 

4 the Farm Security and Rural Investment Act of 2002 (7 

5 U.S.C. 1736o–1(d)) is amended by striking ‘‘to’’ in the 

6 matter preceding paragraph (1). 

7 SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

8 (a) PURPOSE.—Section 3205(b) of the Farm Secu9 rity and Rural Investment Act of 2002 (7 U.S.C. 5680(b)) 

10 is amended by striking ‘‘related barriers to trade’’ and in11 serting ‘‘technical barriers to trade’’. 

12 (b) FUNDING.—Section 3205(e)(2) of the Farm Se13 curity and Rural Investment Act of 2002 (7 U.S.C. 

14 5680(e)(2)) is amended— 

15 (1) by inserting ‘‘and’’ at the end of subpara16 graph (C); and 

17 (2) by striking subparagraphs (D) and (E) and 

18 inserting the following new subparagraph: 

19 ‘‘(D) $9,000,000 for each of fiscal years 

20 2011 through 2018.’’. 

21 SEC. 3206. GLOBAL CROP DIVERSITY TRUST. 

22 Section 3202(c) of the Food, Conservation, and En23 ergy Act of 2008 (Public Law 110–246; 22 U.S.C. 2220a 

24 note) is amended by striking ‘‘2008 through 2012’’ and 

25 inserting ‘‘2014 through 2018’’. 


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1 SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCURE2 MENT PROJECTS. 

3 Section 3206 of the Food, Conservation, and Energy 

4 Act of 2008 (7 U.S.C. 1726c) is amended— 

5 (1) in subsection (b)— 

6 (A) by striking ‘‘(b) STUDY; FIELD-BASED

7 PROJECTS.—’’ and all that follows through ‘‘(2) 

8 FIELD-BASED PROJECTS.—’’ and inserting the 

9 following: 

10 ‘‘(b) FIELD-BASED PROJECTS.—’’; 

11 (B) by redesignating subparagraphs (A) 

12 and (B) as paragraphs (1) and (2), respectively, 

13 and indenting appropriately; 

14 (C) in paragraph (1) (as so redesignated), 

15 by striking ‘‘subparagraph (B)’’ and inserting 

16 ‘‘paragraph (2)’’; and 

17 (D) in paragraph (2) (as so redesignated), 

18 by striking ‘‘subparagraph (A)’’ and inserting 

19 ‘‘paragraph (1)’’; 

20 (2) in subsection (c)(1), by striking ‘‘subsection 

21 (b)(2)’’ and inserting ‘‘subsection (b)’’; 

22 (3) by striking subsections (d), (f), and (g); 

23 (4) by redesignating subsection (e) as sub24 section (d); 

25 (5) in subsection (d) (as so redesignated)— 

26 (A) in paragraph (2)— 


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1 (i) by striking subparagraph (B); and 

2 (ii) in subparagraph (A)— 

3 (I) by striking ‘‘(A) APPLICA4 TION.—’’ and all that follows through 

5 ‘‘To be eligible’’ in clause (i) and in6 serting the following: 

7 ‘‘(A) IN GENERAL.—To be eligible’’; 

8 (II) by redesignating clause (ii) 

9 as subparagraph (B) and indenting 

10 appropriately; and 

11 (III) in subparagraph (B) (as so 

12 redesignated), by striking ‘‘clause (i)’’ 

13 and inserting ‘‘subparagraph (A)’’; 

14 and 

15 (B) by striking paragraph (4); and 

16 (6) by adding at the end the following: 

17 ‘‘(e) FUNDING.— 

18 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

19 There is authorized to be appropriated to carry out 

20 this section $60,000,000 for each of fiscal years 

21 2014 through 2018. 

22 ‘‘(2) PREFERENCE.—In carrying out this sec23 tion, the Secretary may give a preference to eligible 

24 organizations that have, or are working toward, 

25 projects under the McGovern-Dole International 


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1 Food for Education and Child Nutrition Program 

2 established under section 3107 of the Farm Security 

3 and Rural Investment Act of 2002 (7 U.S.C. 1736o– 

4 1). 

5 ‘‘(3) REPORTING.—Each year, the Secretary 

6 shall submit to the appropriate committees of Con7 gress a report that describes the use of funds under 

8 this section, including— 

9 ‘‘(A) the impact of procurements and 

10 projects on— 

11 ‘‘(i) local and regional agricultural 

12 producers; and 

13 ‘‘(ii) markets and consumers, includ14 ing low-income consumers; and 

15 ‘‘(B) implementation time frames and 

16 costs.’’. 

17 SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESIL18 IENCE PROGRAM. 

19 (a) DEFINITIONS.—In this section: 

20 (1) ADMINISTRATOR.—The term ‘‘Adminis21 trator’’ means the Administrator of the Agency for 

22 International Development. 

23 (2) APPROPRIATE COMMITTEES OF CON24 GRESS.—The term ‘‘appropriate committees of Con25 gress’’ means— 


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1 (A) the Committee on Agriculture, Nutri2 tion, and Forestry of the Senate; 

3 (B) the Committee on Agriculture of the 

4 House of Representatives; 

5 (C) the Committee on Foreign Relations of 

6 the Senate; and 

7 (D) the Committee on Foreign Affairs of 

8 the House of Representatives. 

9 (3) ELIGIBLE ORGANIZATION.—The term ‘‘eligi10 ble organization’’ means an organization that is— 

11 (A) a private voluntary organization or co12 operative that is, to the extent practicable, reg13 istered with the Administrator; or 

14 (B) an intergovernmental organization, 

15 such as the World Food Program. 

16 (4) HORN OF AFRICA.—The term ‘‘Horn of Af17 rica’’ means the countries of— 

18 (A) Ethiopia; 

19 (B) Somalia; 

20 (C) Kenya; 

21 (D) Djibouti; 

22 (E) Eritrea; 

23 (F) South Sudan; 

24 (G) Uganda; and 


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1 (H) such other countries as the Adminis2 trator determines to be appropriate after pro3 viding notification to the appropriate commit4 tees of Congress. 

5 (5) RESILIENCE.—The term ‘‘resilience’’ 

6 means— 

7 (A) the capacity to mitigate the negative 

8 impacts of crises (including natural disasters, 

9 conflicts, and economic shocks) in order to re10 duce loss of life and depletion of productive as11 sets; 

12 (B) the capacity to respond effectively to 

13 crises, ensuring basic needs are met in a way 

14 that is integrated with long-term development 

15 efforts; and 

16 (C) the capacity to recover and rebuild 

17 after crises so that future shocks can be ab18 sorbed with less need for ongoing external as19 sistance. 

20 (b) PURPOSE.—The purpose of this section is to es21 tablish a pilot program to effectively integrate all United 

22 States-funded emergency and long-term development ac23 tivities that aim to improve food security in the Horn of 

24 Africa, building resilience so as— 

25 (1) to reduce the impacts of future crises; 


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1 (2) to enhance local capacity for emergency re2 sponse; 

3 (3) to enhance sustainability of long-term devel4 opment programs targeting poor and vulnerable 

5 households; and 

6 (4) to reduce the need for repeated costly emer7 gency operations. 

8 (c) STUDY.— 

9 (1) IN GENERAL.—Not later than 30 days after 

10 the date of enactment of this Act, the Administrator 

11 shall initiate a study of prior programs to support 

12 resilience in the Horn of Africa conducted by— 

13 (A) other donor countries; 

14 (B) private voluntary organizations; 

15 (C) the World Food Program of the 

16 United Nations; and 

17 (D) multilateral institutions, including the 

18 World Bank. 

19 (2) REQUIREMENTS.—The study shall— 

20 (A) include all programs implemented 

21 through the Agency for International Develop22 ment, the Department of Agriculture, the De23 partment of the Treasury, the Millennium Chal24 lenge Corporation, the Peace Corps, and other 

25 relevant Federal agencies; 


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1 (B) evaluate how well the programs de2 scribed in subparagraph (A) work together to 

3 complement each other and leverage impacts 

4 across programs; 

5 (C) include recommendations for how full 

6 integration of efforts can be achieved; and 

7 (D) evaluate the degree to which country8 led development plans support programs that 

9 increase resilience, including review of the in10 vestments by each country in nutrition and 

11 safety nets. 

12 (3) REPORT.—Not later than 180 days after 

13 the date of enactment of this Act, the Administrator 

14 shall submit to the appropriate committees of Con15 gress a report containing the results of the study. 

16 (d) FIELD-BASED PROJECT GRANTS OR COOPERA17 TIVE AGREEMENTS.— 

18 (1) IN GENERAL.—The Administrator shall— 

19 (A) provide grants to, or enter into cooper20 ative agreements with, eligible organizations to 

21 carry out field-based projects that build resil22 ience in the Horn of Africa in accordance with 

23 this section; and 

24 (B) develop a project approval process to 

25 ensure full integration of efforts. 


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1 (2) REQUIREMENTS OF ELIGIBLE ORGANIZA2 TIONS.— 

3 (A) APPLICATION.—To be eligible to re4 ceive a grant from, or enter into a cooperative 

5 agreement with, the Administrator under this 

6 subsection, an eligible organization shall submit 

7 to the Administrator an application by such 

8 date, in such manner, and containing such in9 formation as the Administrator may require. 

10 (B) COMPLETION REQUIREMENT.—To be 

11 eligible to receive a grant from, or enter into a 

12 cooperative agreement with, the Administrator 

13 under this subsection, an eligible organization 

14 shall agree— 

15 (i) to collect, not later than September 

16 30, 2016, data containing the information 

17 required under subsection (f)(2) relating to 

18 the field-based project funded through the 

19 grant or cooperative agreement; and 

20 (ii) to provide to the Administrator 

21 the data collected under clause (i). 

22 (3) REQUIREMENTS OF ADMINISTRATOR.— 

23 (A) PROJECT DIVERSITY.— 

24 (i) IN GENERAL.—Subject to clause 

25 (ii) and subparagraph (B), in selecting 


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1 proposals for field-based projects to fund 

2 under this section, the Administrator shall 

3 select a diversity of projects, including 

4 projects located in— 

5 (I) areas most prone to repeated 

6 crises; 

7 (II) areas with effective existing 

8 resilience programs that can be 

9 scaled; and 

10 (III) areas in all countries of the 

11 Horn of Africa. 

12 (ii) PRIORITY.—In selecting proposals 

13 for field-based projects under clause (i), 

14 the Administrator shall ensure that the se15 lected proposals are for field-based projects 

16 that— 

17 (I) effectively integrate emer18 gency and long-term development pro19 grams to improve sustainability; 

20 (II) demonstrate the potential to 

21 reduce the need for future emergency 

22 assistance; and 

23 (III) build targeted productive 

24 safety nets, in coordination with host 

25 country governments, through food 


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1 for work, cash for work, and other 

2 proven program methodologies. 

3 (B) AVAILABILITY.—The Administrator 

4 shall not award a grant or cooperative agree5 ment or approve a field-based project under this 

6 subsection until the date on which the Adminis7 trator promulgates regulations or issues guide8 lines under subsection (e). 

9 (e) REGULATIONS; GUIDELINES.— 

10 (1) IN GENERAL.—Not later than 180 days 

11 after the date of completion of the study under sub12 section (c), the Administrator shall promulgate regu13 lations or issue guidelines to carry out field-based 

14 projects under this section. 

15 (2) REQUIREMENTS.—In promulgating regula16 tions or issuing guidelines under paragraph (1), the 

17 Administrator shall— 

18 (A) take into consideration the results of 

19 the study described in subsection (c); and 

20 (B) provide an opportunity for public re21 view and comment. 

22 (f) REPORT.— 

23 (1) IN GENERAL.—Not later than November 1, 

24 2016, the Administrator shall submit to the appro25 priate committees of Congress a report that— 


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1 (A) addresses each factor described in 

2 paragraph (2); and 

3 (B) is conducted in accordance with this 

4 section. 

5 (2) REQUIRED FACTORS.—The report shall in6 clude baseline and end-of-project data that meas7 ures— 

8 (A) the prevalence of moderate and severe 

9 hunger so as to provide an accurate accounting 

10 of project impact on household access to and 

11 consumption of food during every month of the 

12 year prior to data collection; 

13 (B) household ownership of and access to 

14 productive assets, including at a minimum land, 

15 livestock, homes, equipment, and other mate16 rials assets needed for income generation; 

17 (C) household incomes, including informal 

18 sources of employment; and 

19 (D) the productive assets of women using 

20 the Women’s Empowerment in Agriculture 

21 Index. 

22 (3) PUBLIC ACCESS TO RECORDS AND RE23 PORTS.—Not later than 90 days after the date on 

24 which the report is submitted under paragraph (1), 


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1 the Administrator shall provide public access to the 

2 report. 

3 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $10,000,000 for each of fiscal years 2014 through 2018. 

6 SEC. 3209. UNDER SECRETARY OF AGRICULTURE FOR 

7 TRADE AND FOREIGN AGRICULTURAL AF8 FAIRS. 

9 (a) DEFINITION OF AGRICULTURE COMMITTEES AND

10 SUBCOMMITTEES.—In this section, the term ‘‘agriculture 

11 committees and subcommittees’’ means— 

12 (1) the Committee on Agriculture of the House 

13 of Representatives; 

14 (2) the Committee on Agriculture, Nutrition, 

15 and Forestry of the Senate; and 

16 (3) the subcommittees on agriculture, rural de17 velopment, food and drug administration, and re18 lated agencies of the Committees on Appropriations 

19 of the House of Representatives and the Senate. 

20 (b) PROPOSAL.— 

21 (1) IN GENERAL.—The Secretary, in consulta22 tion with the agriculture committees and subcommit23 tees, shall propose a reorganization of international 

24 trade functions for imports and exports of the De25 partment of Agriculture. 


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1 (2) CONSIDERATIONS.—In producing the pro2 posal under this section, the Secretary shall— 

3 (A) in recognition of the importance of ag4 ricultural exports to the farm economy and the 

5 economy as a whole, include a plan for the es6 tablishment of an Under Secretary of Agri7 culture for Trade and Foreign Agricultural Af8 fairs; 

9 (B) take into consideration how the Under 

10 Secretary described in subparagraph (A) would 

11 serve as a multiagency coordinator of sanitary 

12 and phytosanitary issues and nontariff trade 

13 barriers in agriculture with respect to imports 

14 and exports of agricultural products; and 

15 (C) take into consideration all implications 

16 of a reorganization described in paragraph (1) 

17 on domestic programs and operations of the 

18 Department of Agriculture. 

19 (3) REPORT.—Not later than 180 days after 

20 the date of enactment of this Act and before the re21 organization described in paragraph (1) can take ef22 fect, the Secretary shall submit to the agriculture 

23 committees and subcommittees a report that— 

24 (A) includes the results of the proposal 

25 under this section; and 


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1 (B) provides a notice of the reorganization 

2 plan. 

3 (4) IMPLEMENTATION.—Not later than 1 year 

4 after the date of the submission of the report under 

5 paragraph (3), the Secretary shall implement a reor6 ganization of international trade functions for im7 ports and exports of the Department of Agriculture, 

8 including the establishment of an Under Secretary 

9 of Agriculture for Trade and Foreign Agricultural 

10 Affairs. 

11 (c) CONFIRMATION REQUIRED.—The position of 

12 Under Secretary of Agriculture for Trade and Foreign Ag13 ricultural Affairs established under subsection (b)(2)(A) 

14 shall be appointed by the President, by and with the advice 

15 and consent of the Senate. 

16 TITLE IV—NUTRITION 

17 Subtitle A—Supplemental 

18 Nutrition Assistance Program 

19 SEC. 4001. ACCESS TO GROCERY DELIVERY FOR HOME20 BOUND SENIORS AND INDIVIDUALS WITH 

21 DISABILITIES ELIGIBLE FOR SUPPLEMENTAL 

22 NUTRITION ASSISTANCE BENEFITS. 

23 (a) IN GENERAL.—Section 3(p) of the Food and Nu24 trition Act of 2008 (7 U.S.C. 2012(p)) is amended— 


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1 (1) in paragraph (3), by striking ‘‘and’’ at the 

2 end; 

3 (2) in paragraph (4), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (3) by inserting after paragraph (4) the fol6 lowing: 

7 ‘‘(5) a public or private nonprofit food pur8 chasing and delivery service that— 

9 ‘‘(A) purchases food for, and delivers the 

10 food to, individuals who are— 

11 ‘‘(i) unable to shop for food; and 

12 ‘‘(ii)(I) not less than 60 years of age; 

13 or 

14 ‘‘(II) individuals with disabilities; 

15 ‘‘(B) clearly notifies the participating 

16 household at the time the household places a 

17 food order— 

18 ‘‘(i) of any delivery fee associated with 

19 the food purchase and delivery provided to 

20 the household by the service; and 

21 ‘‘(ii) that a delivery fee cannot be paid 

22 with benefits provided under the supple23 mental nutrition assistance program; and 


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1 ‘‘(C) sells food purchased for the household 

2 at the price paid by the service for the food 

3 without any additional cost markup.’’. 

4 (b) ISSUANCE OF REGULATIONS.—Not later than 1 

5 year after the date of enactment of this Act, the Secretary 

6 shall issue regulations that— 

7 (1) establish criteria to identify a food pur8 chasing and delivery service described in section 

9 3(p)(5) of the Food and Nutrition Act of 2008 (as 

10 added by subsection (a)(3)); and 

11 (2) establish procedures to ensure that the serv12 ice— 

13 (A) does not charge more for a food item 

14 than the price paid by the service for the food 

15 item; 

16 (B) offers food delivery service at no or low 

17 cost to households under that Act; 

18 (C) ensures that benefits provided under 

19 the supplemental nutrition assistance program 

20 are used only to purchase food, as defined in 

21 section 3 of that Act (7 U.S.C. 2012); 

22 (D) limits the purchase of food, and the 

23 delivery of the food, to households eligible to re24 ceive services described in section 3(p)(5) of 

25 that Act (as added by subsection (a)(3)); 


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1 (E) has established adequate safeguards 

2 against fraudulent activities, including unau3 thorized use of electronic benefit cards issued 

4 under that Act; and 

5 (F) such other requirements as the Sec6 retary considers appropriate. 

7 (c) LIMITATION.—Before the issuance of regulations 

8 under subsection (b), the Secretary may not approve more 

9 than 20 food purchasing and delivery services described 

10 in section 3(p)(5) of the Food and Nutrition Act of 2008 

11 (as added by subsection (a)(3)) to participate as retail 

12 food stores under the supplemental nutrition assistance 

13 program. 

14 (d) EFFECTIVE DATE.—This section and the amend15 ments made by this section take effect on the date that 

16 is 30 days after the date of the enactment of this Act. 

17 SEC. 4002. FOOD DISTRIBUTION PROGRAM ON INDIAN RES18 ERVATIONS. 

19 (a) IN GENERAL.—Section 4(b)(6)(F) of the Food 

20 and Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is 

21 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

22 (b) FEASIBILITY STUDY FOR INDIAN TRIBES.—Sec23 tion 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 

24 2026) is amended by inserting at the end the following: 

25 ‘‘(l) FEASIBILITY STUDY FOR INDIAN TRIBES.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall con2 duct a study to determine the feasibility of a tribal 

3 demonstration project for tribes, in lieu of State 

4 agencies or other administrating entities, to admin5 ister Federal food assistance programs, services, 

6 functions, and activities (or portions thereof). 

7 ‘‘(2) CONSIDERATIONS.—In conducting the 

8 study, the Secretary shall consider— 

9 ‘‘(A) the probable effects on specific pro10 grams and program beneficiaries of such a 

11 demonstration project; 

12 ‘‘(B) statutory, regulatory, or other im13 pediments to implementation of such a dem14 onstration project; 

15 ‘‘(C) strategies for implementing such a 

16 demonstration project; 

17 ‘‘(D) probable costs or savings associated 

18 with such a demonstration project; 

19 ‘‘(E) methods to assure quality and ac20 countability in such a demonstration project; 

21 and 

22 ‘‘(F) such other issues that may be deter23 mined by the Secretary or developed through 

24 consultation pursuant to paragraph (4). 


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1 ‘‘(3) REPORT.—Not later than 18 months after 

2 the date of the enactment of this subsection, the 

3 Secretary shall submit to the Committee on Agri4 culture of the House of Representatives and the 

5 Committee on Agriculture, Nutrition, and Forestry 

6 of the Senate a report that contains— 

7 ‘‘(A) the results of the study under this 

8 subsection; 

9 ‘‘(B) a list of programs, services, functions, 

10 and activities (or portions thereof) within each 

11 agency that would be feasible to include in a 

12 tribal demonstration project; 

13 ‘‘(C) a list of programs, services, functions, 

14 and activities (or portions thereof) included in 

15 the list described in subparagraph (B) that 

16 could be included in a tribal demonstration 

17 project without amending existing law or with18 out waiving regulations that the Secretary may 

19 not waive; and 

20 ‘‘(D) a list of legislative actions required in 

21 order to include those programs, services, func22 tions, and activities (or portions thereof) in23 cluded in the list described in subparagraph (B) 

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1 paragraph (C) in a tribal demonstration 

2 project. 

3 ‘‘(4) CONSULTATION WITH INDIAN TRIBES.— 

4 ‘‘(A) IN GENERAL.—Prior to consultation, 

5 the Secretary shall consult with Indian tribes to 

6 determine a protocol for consultation. 

7 ‘‘(B) REQUIREMENTS.—The protocol shall 

8 require, at a minimum, that— 

9 ‘‘(i) the government-to-government re10 lationship with Indian tribes forms the 

11 basis for the consultation process; 

12 ‘‘(ii) the Indian tribes and the Sec13 retary jointly conduct the consultations re14 quired by this paragraph; and 

15 ‘‘(iii) the consultation process allows 

16 for separate and direct recommendations 

17 from the Indian tribes and other entities 

18 referenced in this subsection.’’. 

19 (c) TRADITIONAL AND LOCALLY GROWN FOOD.— 

20 Section 4(b)(6) of the Food and Nutrition Act of 2008 

21 (7 U.S.C. 2013(b)(6)) is amended— 

22 (1) by redesignating subparagraph (F) as sub23 paragraph (G); and 

24 (2) by inserting after subparagraph (E) the fol25 lowing: 


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1 ‘‘(F) TRADITIONAL AND LOCALLY GROWN

2 FOOD.—A tribe that is authorized to administer 

3 the distribution described in paragraph (1) shall 

4 have the option to use 5 percent of the program 

5 funding of the tribe to promote local purchase 

6 of traditional and locally grown food to be used 

7 in the food package of the tribe by purchasing 

8 traditional and locally grown foods from local 

9 Native American farmers, ranchers, and pro10 ducers.’’. 

11 SEC. 4003. STANDARD UTILITY ALLOWANCES BASED ON 

12 THE RECEIPT OF ENERGY ASSISTANCE PAY13 MENTS. 

14 (a) STANDARD UTILITY ALLOWANCES IN THE SUP15 PLEMENTAL NUTRITION ASSISTANCE PROGRAM.—Section 

16 5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 

17 U.S.C. 2014(e)(6)(C)) is amended— 

18 (1) in clause (i), by inserting ‘‘, subject to 

19 clause (iv)’’ after ‘‘Secretary’’; and 

20 (2) in clause (iv), by striking subclause (I) and 

21 inserting the following: 

22 ‘‘(I) IN GENERAL.—Subject to 

23 subclause (II), if a State agency elects 

24 to use a standard utility allowance 

25 that reflects heating and cooling costs, 


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1 the standard utility allowance shall be 

2 made available to households that 

3 have received a payment, or on behalf 

4 of which a payment has been made, 

5 under the Low-Income Home Energy 

6 Assistance Act of 1981 (42 U.S.C. 

7 8621 et seq.) or other similar energy 

8 assistance program, if in the current 

9 month or during the immediately pre10 ceding 12 months, the household ei11 ther has received a payment, or a pay12 ment has been made on behalf of the 

13 household, that is greater than $10 

14 annually, as determined by the Sec15 retary.’’. 

16 (b) CONFORMING AMENDMENT.—Section 

17 2605(f)(2)(A) of the Low-Income Home Energy Assist18 ance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended 

19 by inserting before the semicolon at the end ‘‘, except that, 

20 for purposes of the supplemental nutrition assistance pro21 gram established under the Food and Nutrition Act of 

22 2008 (7 U.S.C. 2011 et seq.), such payments or allow23 ances were greater than $10 annually, consistent with sec24 tion 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 


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1 2014(e)(6)(C)(iv)(I)), as determined by the Secretary of 

2 Agriculture.’’. 

3 (c) EFFECTIVE AND IMPLEMENTATION DATE.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), this section and the amendments made by 

6 this section shall take effect beginning on October 1, 

7 2013, for all certification periods beginning after 

8 that date. 

9 (2) STATE OPTION TO DELAY IMPLEMENTATION

10 FOR CURRENT RECIPIENTS.—A State may, at the 

11 option of the State, implement a policy that elimi12 nates or minimizes the effect of the amendments 

13 made by this section for households that receive a 

14 standard utility allowance as of the date of enact15 ment of this Act for not more than a 180-day period 

16 beginning on the date on which the amendments 

17 made by this section would otherwise affect the ben18 efits received by a household. 

19 SEC. 4004. ELIGIBILITY DISQUALIFICATIONS. 

20 Section 6(e)(3)(B) of Food and Nutrition Act of 

21 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking 

22 ‘‘section’’ and inserting the following: ‘‘section, subject to 

23 the condition that the course or program of study— 

24 ‘‘(i) is part of a program of career 

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1 tion 3 of the Carl D. Perkins Career and 

2 Technical Education Act of 2006 (20 

3 U.S.C. 2302)) that may be completed in 

4 not more than 4 years at an institution of 

5 higher education (as defined in section 102 

6 of the Higher Education Act of 1965 (20 

7 U.S.C. 1002)); or 

8 ‘‘(ii) is limited to remedial courses, 

9 basic adult education, literacy, or English 

10 as a second language;’’. 

11 SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSIST12 ANCE PROGRAM BENEFITS FOR LOTTERY OR 

13 GAMBLING WINNERS. 

14 (a) IN GENERAL.—Section 6 of the Food and Nutri15 tion Act of 2008 (7 U.S.C. 2015) is amended by adding 

16 at the end the following: 

17 ‘‘(r) INELIGIBILITY FOR BENEFITS DUE TO RECEIPT

18 OF SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS.— 

19 ‘‘(1) IN GENERAL.—Any household in which a 

20 member receives substantial lottery or gambling 

21 winnings, as determined by the Secretary, shall lose 

22 eligibility for benefits immediately upon receipt of 

23 the winnings. 

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1 gible for participation until the household meets the 

2 allowable financial resources and income eligibility 

3 requirements under subsections (c), (d), (e), (f), (g), 

4 (i), (k), (l), (m), and (n) of section 5. 

5 ‘‘(3) AGREEMENTS.—As determined by the Sec6 retary, each State agency, to the maximum extent 

7 practicable, shall establish agreements with entities 

8 responsible for the regulation or sponsorship of gam9 ing in the State to determine whether individuals 

10 participating in the supplemental nutrition assist11 ance program have received substantial lottery or 

12 gambling winnings.’’. 

13 (b) CONFORMING AMENDMENTS.—Section 5(a) of 

14 the Food and Nutrition Act of 2008 (7 U.S.C. 2014(a)) 

15 is amended in the second sentence by striking ‘‘sections 

16 6(b), 6(d)(2), and 6(g)’’ and inserting ‘‘subsections (b), 

17 (d)(2), (g), and (r) of section 6’’. 

18 SEC. 4006. RETAIL FOOD STORES. 

19 (a) DEFINITION OF RETAIL FOOD STORE.—Sub20 section (o)(1)(A) of section 3 of the Food and Nutrition 

21 Act of 2008 (7 U.S.C. 2012) (as redesignated by section 

22 4018(a)(4)) is amended by striking ‘‘at least 2’’ and in23 serting ‘‘at least 3’’. 


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1 (b) ALTERNATIVE BENEFIT DELIVERY.—Section 

2 7(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 

3 2016(f)) is amended— 

4 (1) by striking paragraph (2) and inserting the 

5 following: 

6 ‘‘(2) IMPOSITION OF COSTS.— 

7 ‘‘(A) IN GENERAL.—Except as provided in 

8 subparagraph (B), the Secretary shall require 

9 participating retail food stores (including res10 taurants participating in a State option res11 taurant program intended to serve the elderly, 

12 disabled, and homeless) to pay 100 percent of 

13 the costs of acquiring, and arrange for the im14 plementation of, electronic benefit transfer 

15 point-of-sale equipment and supplies, including 

16 related services. 

17 ‘‘(B) EXEMPTIONS.—The Secretary may 

18 exempt from subparagraph (A)— 

19 ‘‘(i) farmers’ markets and other di20 rect-to-consumer markets, military com21 missaries, nonprofit food buying coopera22 tives, and establishments, organizations, 

23 programs, or group living arrangements 

24 described in paragraphs (5), (7), and (8) 

25 of section 3(k); and 


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1 ‘‘(ii) establishments described in para2 graphs (3), (4), and (9) of section 3(k), 

3 other than restaurants participating in a 

4 State option restaurant program. 

5 ‘‘(C) INTERCHANGE FEES.—Nothing in 

6 this paragraph permits the charging of fees re7 lating to the redemption of supplemental nutri8 tion assistance program benefits, in accordance 

9 with subsection (h)(13).’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(4) TERMINATION OF MANUAL VOUCHERS.— 

12 ‘‘(A) IN GENERAL.—Effective beginning on 

13 the date of enactment of this paragraph, except 

14 as provided in subparagraph (B), no State shall 

15 issue manual vouchers to a household that re16 ceives supplemental nutrition assistance under 

17 this Act or allow retail food stores to accept 

18 manual vouchers as payment, unless the Sec19 retary determines that the manual vouchers are 

20 necessary, such as in the event of an electronic 

21 benefit transfer system failure or a disaster sit22 uation. 

23 ‘‘(B) EXEMPTIONS.—The Secretary may 

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1 vidual retail food stores from subparagraph (A) 

2 based on criteria established by the Secretary. 

3 ‘‘(5) UNIQUE IDENTIFICATION NUMBER RE4 QUIRED.— 

5 ‘‘(A) IN GENERAL.—To enhance the anti6 fraud protections of the program, the Secretary 

7 shall require all parties providing electronic 

8 benefit transfer services to provide for and 

9 maintain unique terminal identification number 

10 information through the supplemental nutrition 

11 assistance program electronic benefit transfer 

12 transaction routing system. 

13 ‘‘(B) REGULATIONS.— 

14 ‘‘(i) IN GENERAL.—Not earlier than 2 

15 years after the date of enactment of this 

16 paragraph, the Secretary shall issue pro17 posed regulations to carry out this para18 graph. 

19 ‘‘(ii) COMMERCIAL PRACTICES.—In 

20 issuing regulations to carry out this para21 graph, the Secretary shall consider existing 

22 commercial practices for other point-of-sale 

23 debit transactions.’’. 

24 (c) ELECTRONIC BENEFIT TRANSFERS.—Section 

25 7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 


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1 U.S.C. 2016(h)(3)(B)) is amended by striking ‘‘is oper2 ational—’’ and all that follows through ‘‘(ii) in the case 

3 of other participating stores,’’ and inserting ‘‘is oper4 ational’’. 

5 (d) APPROVAL OF RETAIL FOOD STORES AND

6 WHOLESALE FOOD CONCERNS.—Section 9 of the Food 

7 and Nutrition Act of 2008 (7 U.S.C. 2018) is amended— 

8 (1) in the second sentence of subsection 

9 (a)(1)— 

10 (A) in subparagraph (A), by inserting ‘‘, 

11 including the depth of stock, variety of staple 

12 food items, and the sale of excepted items de13 scribed in 3(k)(1)’’ after ‘‘applicant’’; and 

14 (B) by striking ‘‘; and (C)’’ and inserting 

15 ‘‘; (C) whether the applicant is located in an 

16 area with significantly limited access to food; 

17 and (D)’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(g) EBT SERVICE REQUIREMENT.—An approved 

20 retail food store shall provide adequate EBT service as 

21 described in section 7(h)(3)(B).’’. 

22 SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE. 

23 Section 7(h)(8) of the Food and Nutrition Act of 

24 2008 (7 U.S.C. 2016(h)(8)) is amended— 


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1 (1) by striking the paragraph heading and in2 serting ‘‘REPLACEMENT OF CARDS.—’’; 

3 (2) by striking ‘‘A State’’ and inserting the fol4 lowing: 

5 ‘‘(A) FEES.—A State’’; and 

6 (3) by adding after subparagraph (A) (as so 

7 designated by paragraph (2)) the following: 

8 ‘‘(B) PURPOSEFUL LOSS OF CARDS.— 

9 ‘‘(i) IN GENERAL.—Subject to terms 

10 and conditions established by the Secretary 

11 in accordance with clause (ii), if a house12 hold makes excessive requests for replace13 ment of the electronic benefit transfer card 

14 of the household, the Secretary may re15 quire a State agency to decline to issue a 

16 replacement card to the household unless 

17 the household, upon request of the State 

18 agency, provides an explanation for the 

19 loss of the card. 

20 ‘‘(ii) REQUIREMENTS.—The terms 

21 and conditions established by the Secretary 

22 shall provide that— 

23 ‘‘(I) the household be given the 

24 opportunity to provide the requested 


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1 explanation and meet the require2 ments under this paragraph promptly; 

3 ‘‘(II) after an excessive number 

4 of lost cards, the head of the house5 hold shall be required to review pro6 gram rights and responsibilities with 

7 State agency personnel authorized to 

8 make determinations under section 

9 5(a); and 

10 ‘‘(III) any action taken, including 

11 actions required under section 

12 6(b)(2), other than the withholding of 

13 the electronic benefit transfer card 

14 until an explanation described in sub15 clause (I) is provided, shall be con16 sistent with the due process protec17 tions under section 6(b) or 11(e)(10), 

18 as appropriate. 

19 ‘‘(C) PROTECTING VULNERABLE PER20 SONS.—In implementing this paragraph, a 

21 State agency shall act to protect homeless per22 sons, persons with disabilities, victims of 

23 crimes, and other vulnerable persons who lose 

24 electronic benefit transfer cards but are not in25 tentionally committing fraud. 


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1 ‘‘(D) EFFECT ON ELIGIBILITY.—While a 

2 State may decline to issue an electronic benefits 

3 transfer card until a household satisfies the re4 quirements under this paragraph, nothing in 

5 this paragraph shall be considered a denial of, 

6 or limitation on, the eligibility for benefits 

7 under section 5.’’. 

8 SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL 

9 FOOD STORES. 

10 (a) MOBILE TECHNOLOGIES.—Section 7(h) of the 

11 Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as 

12 amended by section 4018(e)) is amended by adding at the 

13 end the following: 

14 ‘‘(14) MOBILE TECHNOLOGIES.— 

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graph (B), the Secretary shall approve retail 

17 food stores to redeem benefits through elec18 tronic means other than wired point of sale de19 vices for electronic benefit transfer transactions, 

20 if the retail food stores— 

21 ‘‘(i) establish recipient protections re22 garding privacy, ease of use, access, and 

23 support similar to the protections provided 

24 for transactions made in retail food stores; 


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1 ‘‘(ii) bear the costs of obtaining, in2 stalling, and maintaining mobile tech3 nologies, including mechanisms needed to 

4 process EBT cards and transaction fees; 

5 ‘‘(iii) demonstrate the foods purchased 

6 with benefits issued under this section 

7 through mobile technologies are purchased 

8 at a price not higher than the price of the 

9 same food purchased by other methods 

10 used by the retail food store, as determined 

11 by the Secretary; 

12 ‘‘(iv) provide adequate documentation 

13 for each authorized transaction, as deter14 mined by the Secretary; and 

15 ‘‘(v) meet other criteria as established 

16 by the Secretary. 

17 ‘‘(B) DEMONSTRATION PROJECT ON AC18 CEPTANCE OF BENEFITS OF MOBILE TRANS19 ACTIONS.— 

20 ‘‘(i) IN GENERAL.—Before authorizing 

21 implementation of subparagraph (A) in all 

22 States, the Secretary shall pilot the use of 

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1 rity, by allowing retail food stores to accept 

2 benefits from recipients of supplemental 

3 nutrition assistance through mobile trans4 actions. 

5 ‘‘(ii) DEMONSTRATION PROJECTS.— 

6 To be eligible to participate in a dem7 onstration project under clause (i), a retail 

8 food store shall submit to the Secretary for 

9 approval a plan that includes— 

10 ‘‘(I) a description of the tech11 nology; 

12 ‘‘(II) the manner by which the 

13 retail food store will provide proof of 

14 the transaction to households; 

15 ‘‘(III) the provision of data to 

16 the Secretary, consistent with require17 ments established by the Secretary, in 

18 a manner that allows the Secretary to 

19 evaluate the impact of the demonstra20 tion on participant access, ease of use, 

21 and program integrity; and 

22 ‘‘(IV) such other criteria as the 

23 Secretary may require. 

24 ‘‘(iii) DATE OF COMPLETION.—The 

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1 graph shall be completed and final reports 

2 submitted to the Secretary by not later 

3 than July 1, 2015. 

4 ‘‘(C) REPORT TO CONGRESS.—The Sec5 retary shall— 

6 ‘‘(i) by not later than January 1, 

7 2016, authorize implementation of sub8 paragraph (A) in all States, unless the 

9 Secretary makes a finding, based on the 

10 data provided under subparagraph (B), 

11 that implementation in all States is not in 

12 the best interest of the supplemental nutri13 tion assistance program; and 

14 ‘‘(ii) if the determination made in 

15 clause (i) is not to implement subpara16 graph (A) in all States, submit a report to 

17 the Committee on Agriculture of the House 

18 of Representatives and the Committee on 

19 Agriculture, Nutrition, and Forestry of the 

20 Senate that includes the basis of the find21 ing.’’. 

22 (b) ACCEPTANCE OF BENEFITS THROUGH ON-LINE

23 TRANSACTIONS.— 


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1 (1) IN GENERAL.—Section 7 of the Food and 

2 Nutrition Act of 2008 (7 U.S.C. 2016) is amended 

3 by adding at the end the following: 

4 ‘‘(k) OPTION TO ACCEPT PROGRAM BENEFITS

5 THROUGH ON-LINE TRANSACTIONS.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (4), 

7 the Secretary shall approve retail food stores to ac8 cept benefits from recipients of supplemental nutri9 tion assistance through on-line transactions. 

10 ‘‘(2) REQUIREMENTS TO ACCEPT BENEFITS.—A 

11 retail food store seeking to accept benefits from re12 cipients of supplemental nutrition assistance through 

13 on-line transactions shall— 

14 ‘‘(A) establish recipient protections regard15 ing privacy, ease of use, access, and support 

16 similar to the protections provided for trans17 actions made in retail food stores; 

18 ‘‘(B) ensure benefits are not used to pay 

19 delivery, ordering, convenience, or other fees or 

20 charges; 

21 ‘‘(C) clearly notify participating households 

22 at the time a food order is placed— 

23 ‘‘(i) of any delivery, ordering, conven24 ience, or other fee or charge associated 

25 with the food purchase; and 


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1 ‘‘(ii) that any such fee cannot be paid 

2 with benefits provided under this Act; 

3 ‘‘(D) ensure the security of on-line trans4 actions by using the most effective technology 

5 available that the Secretary considers appro6 priate and cost-effective and that is comparable 

7 to the security of transactions at retail food 

8 stores; and 

9 ‘‘(E) meet other criteria as established by 

10 the Secretary. 

11 ‘‘(3) STATE AGENCY ACTION.—Each State 

12 agency shall ensure that recipients of supplemental 

13 nutrition assistance can use benefits on-line as de14 scribed in this subsection as appropriate. 

15 ‘‘(4) DEMONSTRATION PROJECT ON ACCEPT16 ANCE OF BENEFITS THROUGH ON-LINE TRANS17 ACTIONS.— 

18 ‘‘(A) IN GENERAL.—Before the Secretary 

19 authorizes implementation of paragraph (1) in 

20 all States, the Secretary shall carry out a num21 ber of demonstration projects as determined by 

22 the Secretary to test the feasibility of allowing 

23 retail food stores to accept benefits through on24 line transactions. 


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1 ‘‘(B) DEMONSTRATION PROJECTS.—To be 

2 eligible to participate in a demonstration project 

3 under subparagraph (A), a retail food store 

4 shall submit to the Secretary for approval a 

5 plan that includes— 

6 ‘‘(i) a method of ensuring that bene7 fits may be used to purchase only eligible 

8 items under this Act; 

9 ‘‘(ii) a description of the method of 

10 educating participant households about the 

11 availability and operation of on-line pur12 chasing; 

13 ‘‘(iii) adequate testing of the on-line 

14 purchasing option prior to implementation; 

15 ‘‘(iv) the provision of data as re16 quested by the Secretary for purposes of 

17 analyzing the impact of the project on par18 ticipant access, ease of use, and program 

19 integrity; 

20 ‘‘(v) reports on progress, challenges, 

21 and results, as determined by the Sec22 retary; and 

23 ‘‘(vi) such other criteria, including se24 curity criteria, as established by the Sec25 retary. 


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1 ‘‘(C) DATE OF COMPLETION.—The dem2 onstration projects under this paragraph shall 

3 be completed and final reports submitted to the 

4 Secretary by not later than July 1, 2015. 

5 ‘‘(5) REPORT TO CONGRESS.—The Secretary 

6 shall— 

7 ‘‘(A) by not later than January 1, 2016, 

8 authorize implementation of paragraph (1) in 

9 all States, unless the Secretary makes a find10 ing, based on the data provided under para11 graph (4), that implementation in all States is 

12 not in the best interest of the supplemental nu13 trition assistance program; and 

14 ‘‘(B) if the determination made in sub15 paragraph (A) is not to implement in all States, 

16 submit a report to the Committee on Agri17 culture of the House of Representatives and the 

18 Committee on Agriculture, Nutrition, and For19 estry of the Senate that includes the basis of 

20 the finding.’’. 

21 (2) CONFORMING AMENDMENTS.— 

22 (A) Section 7(b) of the Food and Nutrition 

23 Act of 2008 (7 U.S.C. 2016(b)) is amended by 

24 striking ‘‘purchase food in retail food stores’’ 


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1 and inserting ‘‘purchase food from retail food 

2 stores’’. 

3 (B) Section 10 of the Food and Nutrition 

4 Act of 2008 (7 U.S.C. 2019) is amended in the 

5 first sentence by inserting ‘‘retail food stores 

6 authorized to accept and redeem benefits 

7 through on-line transactions shall be authorized 

8 to accept benefits prior to the delivery of food 

9 if the delivery occurs within a reasonable time 

10 of the purchase, as determined by the Sec11 retary,’’ after ‘‘food so purchased,’’. 

12 (c) SAVINGS CLAUSE.—Nothing in this section or an 

13 amendment made by this section alter any requirements 

14 of the Food and Nutrition Act of 2008 (7 U.S.C. 2011 

15 et seq.) unless specifically authorized in this section or an 

16 amendment made by this section. 

17 SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMU18 NITY-SUPPORTED AGRICULTURE SHARE. 

19 Subsection (o)(4) of section 3 of the Food and Nutri20 tion Act of 2008 (7 U.S.C. 2012) (as redesignated by sec21 tion 4018(a)(4)) is amended by inserting ‘‘, or agricultural 

22 producers who market agricultural products directly to 

23 consumers’’ after ‘‘such food’’. 


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1 SEC. 4010. RESTAURANT MEALS PROGRAM. 

2 (a) IN GENERAL.—Section 11(e) of the Food and 

3 Nutrition Act of 2008 (7 U.S.C. 2020(e)) is amended— 

4 (1) in paragraph (22), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (23), by striking the period at 

7 the end of subparagraph (C) and inserting ‘‘; and’’; 

8 and 

9 (3) by adding at the end the following: 

10 ‘‘(24) if the State elects to carry out a program 

11 to contract with private establishments to offer 

12 meals at concessional prices, as described in para13 graphs 3, 4, and 9 of section 3(k)— 

14 ‘‘(A) the plans of the State agency for op15 erating the program, including— 

16 ‘‘(i) documentation of a need that eli17 gible homeless, elderly, and disabled clients 

18 are underserved in a particular geographic 

19 area; 

20 ‘‘(ii) the manner by which the State 

21 agency will limit participation to only those 

22 private establishments that the State de23 termines necessary to meet the need identi24 fied in clause (i); and 

25 ‘‘(iii) any other conditions the Sec26 retary may prescribe, such as the level of 


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1 security necessary to ensure that only eligi2 ble recipients participate in the program; 

3 and 

4 ‘‘(B) a report by the State agency to the 

5 Secretary annually, the schedule of which shall 

6 be established by the Secretary, that includes— 

7 ‘‘(i) the number of households and in8 dividual recipients authorized to partici9 pate in the program, including any infor10 mation on whether the individual recipient 

11 is elderly, disabled, or homeless; and 

12 ‘‘(ii) an assessment of whether the 

13 program is meeting an established need, as 

14 documented under subparagraph (A)(i).’’. 

15 (b) APPROVAL OF RETAIL FOOD STORES AND

16 WHOLESALE FOOD CONCERNS.—Section 9 of the Food 

17 and Nutrition Act of 2008 (7 U.S.C. 2018) (as amended 

18 by section 4005(d)(3)) is amended by adding at the end 

19 the following: 

20 ‘‘(h) PRIVATE ESTABLISHMENTS.— 

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

22 no private establishment that contracts with a State 

23 agency to offer meals at concessional prices as de24 scribed in paragraphs 3, 4, and 9 of section 3(k) 

25 may be authorized to accept and redeem benefits unVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00380 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 less the Secretary determines that the participation 

2 of the private establishment is required to meet a 

3 documented need in accordance with section 

4 11(e)(24). 

5 ‘‘(2) EXISTING CONTRACTS.— 

6 ‘‘(A) IN GENERAL.—If, on the day before 

7 the date of enactment of this subsection, a 

8 State has entered into a contract with a private 

9 establishment described in paragraph (1) and 

10 the Secretary has not determined that the par11 ticipation of the private establishment is nec12 essary to meet a documented need in accord13 ance with section 11(e)(24), the Secretary shall 

14 allow the operation of the private establishment 

15 to continue without that determination of need 

16 for a period not to exceed 180 days from the 

17 date on which the Secretary establishes deter18 mination criteria, by regulation, under section 

19 11(e)(24). 

20 ‘‘(B) JUSTIFICATION.—If the Secretary 

21 makes a determination to terminate a contract 

22 with a private establishment that is in effect on 

23 the date of enactment of this subsection, the 

24 Secretary shall provide justification to the State 


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1 in which the private establishment is located for 

2 that termination. 

3 ‘‘(3) REPORT TO CONGRESS.—Not later than 

4 90 days after September 30, 2013, and 90 days 

5 after the last day of each fiscal year thereafter, the 

6 Secretary shall report to the Committee on Agri7 culture of the House of Representatives and the 

8 Committee on Agriculture, Nutrition, and Forestry 

9 of the Senate on the effectiveness of a program 

10 under this subsection using any information received 

11 from States under section 11(e)(24) as well as any 

12 other information the Secretary may have relating to 

13 the manner in which benefits are used.’’. 

14 (c) CONFORMING AMENDMENTS.—Section 3(k) of 

15 the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) 

16 is amended by inserting ‘‘subject to section 9(h)’’ after 

17 ‘‘concessional prices’’ each place it appears. 

18 SEC. 4011. QUALITY CONTROL STANDARDS. 

19 (a) IN GENERAL.—Section 16(c)(1)(D)(i) of the 

20 Food and Nutrition Act of 2008 (7 U.S.C. 

21 2025(c)(1)(D)(i)) is amended by striking subclause (I). 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 13(a)(1) of the Food and Nutrition 

24 Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in 

25 the first sentence by striking ‘‘section 


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1 16(c)(1)(D)(i)(III)’’ and inserting ‘‘section 

2 16(c)(1)(D)(i)(II)’’. 

3 (2) Section 16(c)(1) of the Food and Nutrition 

4 Act of 2008 (7 U.S.C. 2025(c)(1)) is amended— 

5 (A) in subparagraph (D)(i)— 

6 (i) by redesignating subclauses (II) 

7 through (IV) as subclauses (I) through 

8 (III), respectively; and 

9 (ii) in subclause (III) (as so redesig10 nated), by striking ‘‘through (III)’’ and in11 serting ‘‘and (II)’’; 

12 (B) in subparagraph (E)(i), by striking 

13 ‘‘(D)(i)(III)’’ and inserting ‘‘(D)(i)(II)’’; and 

14 (C) in subparagraph (F), by striking 

15 ‘‘(D)(i)(II)’’ each place it appears and inserting 

16 ‘‘(D)(i)(I)’’. 

17 SEC. 4012. PERFORMANCE BONUS PAYMENTS. 

18 Section 16(d) of the Food and Nutrition Act of 2008 

19 (7 U.S.C. 2025(d)) is amended by adding at the end the 

20 following: 

21 ‘‘(5) USE OF PERFORMANCE BONUS PAY22 MENTS.—A State agency may use a performance 

23 bonus payment received under this subsection only 

24 to carry out the program established under this Act, 

25 including investments in— 


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1 ‘‘(A) technology; 

2 ‘‘(B) improvements in administration and 

3 distribution; and 

4 ‘‘(C) actions to prevent fraud, waste, and 

5 abuse.’’. 

6 SEC. 4013. FUNDING OF EMPLOYMENT AND TRAINING PRO7 GRAMS. 

8 Section 16(h)(1)(A) of the Food and Nutrition Act 

9 of 2008 (7 U.S.C. 2025(h)(1)(A)) is amended by striking 

10 ‘‘section 18(a)(1), $90,000,000’’ and all that follows 

11 through the end of the subparagraph and inserting ‘‘sec12 tion 18(a)(1)— 

13 ‘‘(i) for each of fiscal years 2014 

14 through 2017, $90,000,000; and 

15 ‘‘(ii) for fiscal year 2018 and each fis16 cal year thereafter, $80,000,000.’’. 

17 SEC. 4014. AUTHORIZATION OF APPROPRIATIONS. 

18 Section 18(a)(1) of the Food and Nutrition Act of 

19 2008 (7 U.S.C. 2027(a)(1)) is amended in the first sen20 tence by striking ‘‘2012’’ and inserting ‘‘2018’’. 

21 SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

22 Section 25 of the Food and Nutrition Act of 2008 

23 (7 U.S.C. 2034) is amended— 

24 (1) in subsection (a)— 

25 (A) in paragraph (1)(B)— 


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1 (i) in clause (i)— 

2 (I) in subclause (I), by inserting 

3 after ‘‘individuals’’ the following: 

4 ‘‘through food distribution, commu5 nity outreach to assist in participation 

6 in Federally assisted nutrition pro7 grams, or improving access to food as 

8 part of a comprehensive service;’’; and 

9 (II) in subclause (III), by insert10 ing ‘‘food access,’’ after ‘‘food,’’; and 

11 (ii) in clause (ii), by striking sub12 clause (I) and inserting the following: 

13 ‘‘(I) equipment necessary for the 

14 efficient operation of a project;’’; and 

15 (B) by striking paragraph (2) and insert16 ing the following: 

17 ‘‘(2) HUNGER-FREE COMMUNITIES GOAL.—The 

18 term ‘hunger-free communities goal’ means any of 

19 the 14 goals described in House Concurrent Resolu20 tion 302, 102nd Congress, agreed to October 5, 

21 1992.’’; 

22 (2) in subsection (c)— 

23 (A) in the matter preceding paragraph (1), 

24 by inserting ‘‘public food program service pro25 vider or a’’ before ‘‘private’’; 


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1 (B) in paragraph (1)— 

2 (i) in subparagraph (A), by striking 

3 ‘‘or’’ after the semicolon at the end; 

4 (ii) in subparagraph (B), by inserting 

5 ‘‘or’’ after the semicolon at the end; and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(C) efforts to reduce food insecurity in 

9 the community, including food distribution, im10 proving access to services, or coordinating serv11 ices and programs;’’; 

12 (C) in paragraph (2), by striking ‘‘and’’ 

13 after the semicolon at the end; 

14 (D) in paragraph (3), by striking the pe15 riod at the end and inserting ‘‘; and’’; and 

16 (E) by adding at the end the following: 

17 ‘‘(4) collaborate with 1 or more local partner 

18 organizations to achieve at least 1 hunger-free com19 munities goal.’’; 

20 (3) in subsection (d)— 

21 (A) in paragraph (3), by striking ‘‘or’’ 

22 after the semicolon at the end; 

23 (B) in paragraph (4), by striking the pe24 riod at the end and inserting ‘‘; or’’; and 

25 (C) by adding at the end the following: 


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1 ‘‘(5) develop new resources and strategies to 

2 help reduce food insecurity in the community and 

3 prevent food insecurity in the future by— 

4 ‘‘(A) developing creative food resources; 

5 ‘‘(B) coordinating food services with park 

6 and recreation programs and other community7 based outlets to reduce barriers to access; or 

8 ‘‘(C) creating nutrition education programs 

9 for at-risk populations to enhance food-pur10 chasing and food-preparation skills and to 

11 heighten awareness of the connection between 

12 diet and health.’’; 

13 (4) in subsection (f)(2), by striking ‘‘3 years’’ 

14 and inserting ‘‘5 years’’; and 

15 (5) by striking subsections (h) and (i) and in16 serting the following: 

17 ‘‘(h) REPORTS TO CONGRESS.—Not later than Sep18 tember 30, 2014, and each year thereafter, the Secretary 

19 shall submit to Congress a report that describes each 

20 grant made under this section, including— 

21 ‘‘(1) a description of any activity funded; 

22 ‘‘(2) the degree of success of each activity fund23 ed in achieving hunger-free community goals; and 

24 ‘‘(3) the degree of success in improving the 

25 long-term capacity of a community to address food 


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1 and agriculture problems related to hunger or access 

2 to healthy food.’’. 

3 SEC. 4016. EMERGENCY FOOD ASSISTANCE. 

4 (a) PURCHASE OF COMMODITIES.—Section 27(a) of 

5 the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) 

6 is amended— 

7 (1) in paragraph (1), by striking ‘‘2008 

8 through 2012’’ and inserting ‘‘2014 through 2018’’; 

9 (2) by striking paragraph (2) and inserting the 

10 following: 

11 ‘‘(2) AMOUNTS.—The Secretary shall use to 

12 carry out paragraph (1)— 

13 ‘‘(A) for fiscal year 2013, $265,750,000; 

14 and 

15 ‘‘(B) for each subsequent fiscal year, the 

16 dollar amount of commodities specified in sub17 paragraph (A) adjusted by the percentage by 

18 which the thrifty food plan has been adjusted 

19 under section 3(u)(4) between June 30, 2013, 

20 and June 30 of the immediately preceding fiscal 

21 year, and subsequently increased by— 

22 ‘‘(i) for fiscal year 2014, $22,000,000; 

23 ‘‘(ii) for fiscal year 2015, 

24 $18,000,000; 


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1 ‘‘(iii) for fiscal year 2016, 

2 $10,000,000; and 

3 ‘‘(iv) for fiscal year 2017, 

4 $4,000,000.’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(3) FUNDS AVAILABILITY.—For purposes of 

7 the funds described in this subsection, the Secretary 

8 shall— 

9 ‘‘(A) make the funds available for 2 fiscal 

10 years; and 

11 ‘‘(B) allow States to carry over unex12 pended balances to the next fiscal year pursu13 ant to such terms and conditions as are deter14 mined by the Secretary.’’. 

15 (b) EMERGENCY FOOD PROGRAM INFRASTRUCTURE

16 GRANTS.—Section 209(d) of the Emergency Food Assist17 ance Act of 1983 (7 U.S.C. 7511a(d)) is amended by 

18 striking ‘‘2012’’ and inserting ‘‘2018’’. 

19 SEC. 4017. NUTRITION EDUCATION. 

20 Section 28(b) of the Food and Nutrition Act of 2008 

21 (7 U.S.C. 2036a(b)) is amended by inserting ‘‘and phys22 ical activity’’ after ‘‘healthy food choices’’. 


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1 SEC. 4018. RETAIL FOOD STORE AND RECIPIENT TRAF2 FICKING. 

3 The Food and Nutrition Act of 2008 (7 U.S.C. 2011 

4 et seq.) is amended by adding at the end the following: 

5 ‘‘SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAF6 FICKING. 

7 ‘‘(a) PURPOSE.—The purpose of this section is to 

8 provide the Department of Agriculture with additional re9 sources to prevent trafficking in violation of this Act by 

10 strengthening recipient and retail food store program in11 tegrity. 

12 ‘‘(b) USE OF FUNDS.— 

13 ‘‘(1) IN GENERAL.—Additional funds are pro14 vided under this section to supplement the retail 

15 food store and recipient integrity activities of the 

16 Department. 

17 ‘‘(2) INFORMATION TECHNOLOGIES.—The Sec18 retary shall use an appropriate amount of the funds 

19 provided under this section to employ information 

20 technologies known as data mining and data 

21 warehousing and other available information tech22 nologies to administer the supplemental nutrition as23 sistance program and enforce regulations promul24 gated under section 4(c). 

25 ‘‘(c) FUNDING.— 


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1 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated to carry out 

3 this section $12,000,000 for each of fiscal years 

4 2014 through 2018. 

5 ‘‘(2) MANDATORY FUNDING.— 

6 ‘‘(A) IN GENERAL.—Out of any funds in 

7 the Treasury not otherwise appropriated, the 

8 Secretary of the Treasury shall transfer to the 

9 Secretary to carry out this section not less than 

10 $5,000,000 for fiscal year 2014, to remain 

11 available until expended. 

12 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

13 Secretary shall be entitled to receive, shall ac14 cept, and shall use to carry out this section the 

15 funds transferred under subparagraph (A), 

16 without further appropriation. 

17 ‘‘(C) MAINTENANCE OF FUNDING.—The 

18 funding provided under subparagraph (A) shall 

19 supplement (and not supplant) other Federal 

20 funding for programs carried out under this 

21 Act.’’. 

22 SEC. 4019. TECHNICAL AND CONFORMING AMENDMENTS. 

23 (a) Section 3 of the Food and Nutrition Act of 2008 

24 (7 U.S.C. 2012) is amended— 


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1 (1) in subsection (g), by striking ‘‘coupon,’’ and 

2 inserting ‘‘coupon’’; 

3 (2) in subsection (k)(7), by striking ‘‘or are’’ 

4 and inserting ‘‘and’’; 

5 (3) by striking subsection (l); 

6 (4) by redesignating subsections (m) through 

7 (t) as subsections (l) through (s), respectively; and 

8 (5) by inserting after subsection (s) (as so re9 designated) the following: 

10 ‘‘(t) ‘Supplemental nutrition assistance program’ 

11 means the program operated pursuant to this Act.’’. 

12 (b) Section 4(a) of the Food and Nutrition Act of 

13 2008 (7 U.S.C. 2013(a)) is amended in the last sentence 

14 by striking ‘‘benefits’’ and inserting ‘‘Benefits’’. 

15 (c) Section 5 of the Food and Nutrition Act of 2008 

16 (7 U.S.C. 2014) is amended— 

17 (1) in the last sentence of subsection (i)(2)(D), 

18 by striking ‘‘section 13(b)(2)’’ and inserting ‘‘section 

19 13(b)’’; and 

20 (2) in subsection (k)(4)(A), by striking ‘‘para21 graph (2)(H)’’ and inserting ‘‘paragraph (2)(G)’’. 

22 (d) Section 6(d)(4) of the Food and Nutrition Act 

23 of 2008 (7 U.S.C. 2015(d)(4)) is amended in subpara24 graphs (B)(vii) and (F)(iii) by indenting both clauses ap25 propriately. 


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1 (e) Section 7(h) of the Food and Nutrition Act of 

2 2008 (7 U.S.C. 2016(h)) is amended by redesignating the 

3 second paragraph (12) (relating to interchange fees) as 

4 paragraph (13). 

5 (f) Section 9(a) of the Food and Nutrition Act of 

6 2008 (7 U.S.C. 2018(a)) is amended by indenting para7 graph (3) appropriately. 

8 (g) Section 12 of the Food and Nutrition Act of 2008 

9 (7 U.S.C. 2021) is amended— 

10 (1) in subsection (b)(3)(C), by striking ‘‘civil 

11 money penalties’’ and inserting ‘‘civil penalties’’; and 

12 (2) in subsection (g)(1), by striking ‘‘(7 U.S.C. 

13 1786)’’ and inserting ‘‘(42 U.S.C. 1786)’’. 

14 (h) Section 15(b)(1) of the Food and Nutrition Act 

15 of 2008 (7 U.S.C. 2024(b)(1)) is amended in the first sen16 tence by striking ‘‘an benefit’’ and inserting ‘‘a benefit’’. 

17 (i) Section 16(a) of the Food and Nutrition Act of 

18 2008 (7 U.S.C. 2025(a)) is amended in the proviso fol19 lowing paragraph (8) by striking ‘‘as amended.’’. 

20 (j) Section 18(e) of the Food and Nutrition Act of 

21 2008 (7 U.S.C. 2027(e)) is amended in the first sentence 

22 by striking ‘‘sections 7(f)’’ and inserting ‘‘section 7(f)’’. 

23 (k) Section 22(b)(10)(B)(i) of the Food and Nutri24 tion Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended 


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1 in the last sentence by striking ‘‘Food benefits’’ and in2 serting ‘‘Benefits’’. 

3 (l) Section 26(f)(3)(C) of the Food and Nutrition Act 

4 of 2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking 

5 ‘‘subsection’’ and inserting ‘‘subsections’’. 

6 (m) Section 27(a)(1) of the Food and Nutrition Act 

7 of 2008 (7 U.S.C. 2036(a)(1)) is amended by striking 

8 ‘‘(Public Law 98–8; 7 U.S.C. 612c note)’’ and inserting 

9 ‘‘(7 U.S.C. 7515)’’. 

10 (n) Section 509 of the Older Americans Act of 1965 

11 (42 U.S.C. 3056g) is amended in the section heading by 

12 striking ‘‘FOOD STAMP PROGRAMS’’ and inserting 

13 ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PRO14 GRAMS’’. 

15 (o) Section 4115(c)(2)(H) of the Food, Conservation, 

16 and Energy Act of 2008 (Public Law 110–246; 122 Stat. 

17 1871) is amended by striking ‘‘531’’ and inserting ‘‘454’’. 

18 SEC. 4020. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN 

19 CONVICTED FELONS. 

20 Section 6 of the Food and Nutrition Act of 2008 (7 

21 U.S.C. 2015) (as amended by section 4004) is amended 

22 by adding at the end the following: 

23 ‘‘(s) DISQUALIFICATION FOR CERTAIN CONVICTED

24 FELONS.— 


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1 ‘‘(1) IN GENERAL.—An individual shall not be 

2 eligible for benefits under this Act if the individual 

3 is convicted of— 

4 ‘‘(A) aggravated sexual abuse under sec5 tion 2241 of title 18, United States Code; 

6 ‘‘(B) murder under section 1111 of title 

7 18, United States Code; 

8 ‘‘(C) an offense under chapter 110 of title 

9 18, United States Code; 

10 ‘‘(D) a Federal or State offense involving 

11 sexual assault, as defined in 40002(a) of the 

12 Violence Against Women Act of 1994 (42 

13 U.S.C. 13925(a)); or 

14 ‘‘(E) an offense under State law deter15 mined by the Attorney General to be substan16 tially similar to an offense described in sub17 paragraph (A), (B), or (C). 

18 ‘‘(2) EFFECTS ON ASSISTANCE AND BENEFITS

19 FOR OTHERS.—The amount of benefits otherwise re20 quired to be provided to an eligible household under 

21 this Act shall be determined by considering the indi22 vidual to whom paragraph (1) applies not to be a 

23 member of such household, except that the income 

24 and resources of the individual shall be considered to 

25 be income and resources of the household. 


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1 ‘‘(3) ENFORCEMENT.—Each State shall require 

2 each individual applying for benefits under this Act, 

3 during the application process, to state, in writing, 

4 whether the individual, or any member of the house5 hold of the individual, has been convicted of a crime 

6 described in paragraph (1).’’. 

7 Subtitle B—Commodity 

8 Distribution Programs 

9 SEC. 4101. COMMODITY DISTRIBUTION PROGRAM. 

10 Section 4(a) of the Agriculture and Consumer Protec11 tion Act of 1973 (7 U.S.C. 612c note; Public Law 93– 

12 86) is amended in the first sentence by striking ‘‘2012’’ 

13 and inserting ‘‘2018’’. 

14 SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 

15 Section 5 of the Agriculture and Consumer Protec16 tion Act of 1973 (7 U.S.C. 612c note; Public Law 93– 

17 86) is amended— 

18 (1) in paragraphs (1) and (2)(B) of subsection 

19 (a), by striking ‘‘2012’’ each place it appears and in20 serting ‘‘2018’’; 

21 (2) in the first sentence of subsection (d)(2), by 

22 striking ‘‘2012’’ and inserting ‘‘2018’’; 

23 (3) by striking subsection (g) and inserting the 

24 following: 


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1 ‘‘(g) ELIGIBILITY.—Except as provided in subsection 

2 (m), the States shall only provide assistance under the 

3 commodity supplemental food program to low-income per4 sons aged 60 and older.’’; and 

5 (4) by adding at the end the following: 

6 ‘‘(m) PHASE-OUT.—Notwithstanding any other pro7 vision of law, an individual who receives assistance under 

8 the commodity supplemental food program on the day be9 fore the date of enactment of this subsection shall con10 tinue to receive that assistance until the date on which 

11 the individual is no longer eligible for assistance under the 

12 eligibility requirements for the program in effect on the 

13 day before the date of enactment of this subsection.’’. 

14 SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO 

15 SPECIAL NUTRITION PROJECTS. 

16 Section 1114(a)(2)(A) of the Agriculture and Food 

17 Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the 

18 first sentence by striking ‘‘2012’’ and inserting ‘‘2018’’. 

19 SEC. 4104. PROCESSING OF COMMODITIES. 

20 (a) IN GENERAL.—Section 17 of the Commodity Dis21 tribution Reform Act and WIC Amendments of 1987 (7 

22 U.S.C. 612c note; Public Law 100–237) is amended— 

23 (1) in the section heading, by inserting ‘‘AND

24 PROCESSING’’ after ‘‘DONATIONS’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(c) PROCESSING.— 

2 ‘‘(1) IN GENERAL.—For any program included 

3 under subsection (b), the Secretary may, notwith4 standing any other provision of Federal or State law 

5 relating to the procurement of goods and services— 

6 ‘‘(A) retain title to commodities delivered 

7 to a processor, on behalf of a State (including 

8 a State distributing agency and a recipient 

9 agency), until such time as end products con10 taining the commodities, or similar commodities 

11 as approved by the Secretary, are delivered to 

12 a State distributing agency or to a recipient 

13 agency; and 

14 ‘‘(B) promulgate regulations to ensure ac15 countability for commodities provided to a proc16 essor for processing into end products, and to 

17 facilitate processing of commodities into end 

18 products for use by recipient agencies. 

19 ‘‘(2) REGULATIONS.—The regulations described 

20 in paragraph (1)(B) may provide that— 

21 ‘‘(A) a processor that receives commodities 

22 for processing into end products, or provides a 

23 service with respect to the commodities or end 

24 products, in accordance with the agreement of 

25 the processor with a State distributing agency 


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1 or a recipient agency, provide to the Secretary 

2 a bond or other means of financial assurance to 

3 protect the value of the commodities; and 

4 ‘‘(B) in the event a processor fails to de5 liver to a State distributing agency or a recipi6 ent agency an end product in conformance with 

7 the processing agreement entered into under 

8 this Act, the Secretary— 

9 ‘‘(i) take action with respect to the 

10 bond or other means of financial assurance 

11 pursuant to regulations promulgated under 

12 this subsection; and 

13 ‘‘(ii) distribute any proceeds obtained 

14 by the Secretary to 1 or more State dis15 tributing agencies and recipient agencies, 

16 as determined appropriate by the Sec17 retary.’’. 

18 (b) DEFINITIONS.—Section 18 of the Commodity 

19 Distribution Reform Act and WIC Amendments of 1987 

20 (7 U.S.C. 612c note; Public Law 100–237) is amended 

21 by striking paragraphs (1) and (2) and inserting the fol22 lowing: 

23 ‘‘(1) COMMODITIES.—The term ‘commodities’ 

24 means agricultural commodities and their products 


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1 that are donated by the Secretary for use by recipi2 ent agencies. 

3 ‘‘(2) END PRODUCT.—The term ‘end product’ 

4 means a food product that contains processed com5 modities.’’. 

6 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

7 Section 3 of the Commodity Distribution Reform Act and 

8 WIC Amendments of 1987 (7 U.S.C. 612c note; Public 

9 Law 100–237) is amended— 

10 (1) in subsection (a)— 

11 (A) in paragraph (2), by striking subpara12 graph (B) and inserting the following: 

13 ‘‘(B) the program established under sec14 tion 4(b) of the Food and Nutrition Act of 

15 2008 (7 U.S.C. 2013(b));’’; and 

16 (B) in paragraph (3)(D), by striking ‘‘the 

17 Committee on Education and Labor’’ and in18 serting ‘‘the Committee on Education and the 

19 Workforce’’; 

20 (2) in subsection (b)(1)(A)(ii), by striking ‘‘sec21 tion 32 of the Agricultural Adjustment Act (7 

22 U.S.C. 601 et seq.)’’ and inserting ‘‘section 32 of 

23 the Act of August 24, 1935 (7 U.S.C. 612c)’’; 

24 (3) in subsection (e)(1)(D)(iii), by striking sub25 clause (II) and inserting the following: 


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1 ‘‘(II) the program established 

2 under section 4(b) of the Food and 

3 Nutrition Act of 2008 (7 U.S.C. 

4 2013(b));’’; and 

5 (4) in subsection (k), by striking ‘‘the Com6 mittee on Education and Labor’’ and inserting ‘‘the 

7 Committee on Education and the Workforce’’. 

8 Subtitle C—Miscellaneous 

9 SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES 

10 FOR DISTRIBUTION TO SCHOOLS AND SERV11 ICE INSTITUTIONS. 

12 Section 10603(b) of the Farm Security and Rural In13 vestment Act of 2002 (7 U.S.C. 612c–4(b)) is amended 

14 by striking ‘‘2012’’ and inserting ‘‘2018’’. 

15 SEC. 4202. SENIORS FARMERS’ MARKET NUTRITION PRO16 GRAM. 

17 Section 4402(a) of the Farm Security and Rural In18 vestment Act of 2002 (7 U.S.C. 3007(a)) is amended by 

19 striking ‘‘2012’’ and inserting ‘‘2018’’. 

20 SEC. 4203. NUTRITION INFORMATION AND AWARENESS 

21 PILOT PROGRAM. 

22 Section 4403 of the Farm Security and Rural Invest23 ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107– 

24 171) is repealed. 


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1 SEC. 4204. HUNGER-FREE COMMUNITIES. 

2 Section 4405 of the Food, Conservation, and Energy 

3 Act of 2008 (7 U.S.C. 7517) is amended to read as fol4 lows: 

5 ‘‘SEC. 4405. HUNGER-FREE COMMUNITIES. 

6 ‘‘(a) IN GENERAL.—In this section: 

7 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en8 tity’ means— 

9 ‘‘(A) a nonprofit organization (including 

10 an emergency feeding organization); 

11 ‘‘(B) an agricultural cooperative; 

12 ‘‘(C) a producer network or association; 

13 ‘‘(D) a community health organization; 

14 ‘‘(E) a public benefit corporation; 

15 ‘‘(F) an economic development corporation; 

16 ‘‘(G) a farmers’ market; 

17 ‘‘(H) a community-supported agriculture 

18 program; 

19 ‘‘(I) a buying club; 

20 ‘‘(J) a retail food store participating in the 

21 supplemental nutrition assistance program; 

22 ‘‘(K) a State, local, or tribal agency; and 

23 ‘‘(L) any other entity the Secretary des24 ignates. 

25 ‘‘(2) EMERGENCY FEEDING ORGANIZATION.— 

26 The term ‘emergency feeding organization’ has the 


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1 meaning given the term in section 201A of the 

2 Emergency Food Assistance Act of 1983 (7 U.S.C. 

3 7501). 

4 ‘‘(3) SUPPLEMENTAL NUTRITION ASSISTANCE

5 PROGRAM.—The term ‘supplemental nutrition assist6 ance program’ means the supplemental nutrition as7 sistance program established under the Food and 

8 Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). 

9 ‘‘(b) HUNGER-FREE COMMUNITIES INCENTIVE

10 GRANTS.— 

11 ‘‘(1) AUTHORIZATION.— 

12 ‘‘(A) IN GENERAL.—In each of the years 

13 specified in subsection (c), the Secretary shall 

14 make grants to eligible entities in accordance 

15 with paragraph (2). 

16 ‘‘(B) FEDERAL SHARE.—The Federal 

17 share of the cost of carrying out an activity 

18 under this subsection shall not exceed 50 per19 cent of the total cost of the activity. 

20 ‘‘(C) NON-FEDERAL SHARE.— 

21 ‘‘(i) IN GENERAL.—The non-Federal 

22 share of the cost of an activity under this 

23 subsection may be provided— 

24 ‘‘(I) in cash or in-kind contribu25 tions as determined by the Secretary, 


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1 including facilities, equipment, or 

2 services; and 

3 ‘‘(II) by a State or local govern4 ment or a private source. 

5 ‘‘(ii) LIMITATION.—In the case of a 

6 for-profit entity, the non-Federal share de7 scribed in clause (i) shall not include serv8 ices of an employee, including salaries paid 

9 or expenses covered by the employer. 

10 ‘‘(2) CRITERIA.— 

11 ‘‘(A) IN GENERAL.—For purposes of this 

12 subsection, an eligible entity is a governmental 

13 agency or nonprofit organization that— 

14 ‘‘(i) meets the application criteria set 

15 forth by the Secretary; and 

16 ‘‘(ii) proposes a project that, at a 

17 minimum— 

18 ‘‘(I) has the support of the State 

19 agency; 

20 ‘‘(II) would increase the purchase 

21 of fruits and vegetables by low-income 

22 consumers participating in the supple23 mental nutrition assistance program 

24 by providing incentives at the point of 

25 purchase; 


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1 ‘‘(III) agrees to participate in the 

2 evaluation described in paragraph (4); 

3 ‘‘(IV) ensures that the same 

4 terms and conditions apply to pur5 chases made by individuals with bene6 fits issued under this Act and incen7 tives provided for in this subsection as 

8 apply to purchases made by individ9 uals who are not members of house10 holds receiving benefits, such as pro11 vided for in section 278.2(b) of title 7, 

12 Code of Federal Regulations (or a 

13 successor regulation); and 

14 ‘‘(V) includes effective and effi15 cient technologies for benefit redemp16 tion systems that may be replicated in 

17 other for States and communities. 

18 ‘‘(B) PRIORITY.—In awarding grants 

19 under this section, the Secretary shall give pri20 ority to projects that— 

21 ‘‘(i) maximize the share of funds used 

22 for direct incentives to participants; 

23 ‘‘(ii) use direct-to-consumer sales mar24 keting; 


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1 ‘‘(iii) demonstrate a track record of 

2 designing and implementing successful nu3 trition incentive programs that connect 

4 low-income consumers and agricultural 

5 producers; 

6 ‘‘(iv) provide locally or regionally pro7 duced fruits and vegetables; 

8 ‘‘(v) are located in underserved com9 munities; or 

10 ‘‘(vi) address other criteria as estab11 lished by the Secretary. 

12 ‘‘(3) APPLICABILITY.— 

13 ‘‘(A) IN GENERAL.—The value of any ben14 efit provided to a participant in any activity 

15 funded under this subsection shall not be con16 sidered income or resources for any purpose 

17 under any Federal, State, or local law. 

18 ‘‘(B) PROHIBITION ON COLLECTION OF

19 SALES TAXES.—Each State shall ensure that no 

20 State or local tax is collected on a purchase of 

21 food under this subsection. 

22 ‘‘(C) NO LIMITATION ON BENEFITS.—A 

23 grant made available under this subsection shall 

24 not be used to carry out any project that limits 

25 the use of benefits under the Food and NutriVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00406 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 tion Act of 2008 (7 U.S.C. 2011 et seq.) or any 

2 other Federal nutrition law. 

3 ‘‘(D) HOUSEHOLD ALLOTMENT.—Assist4 ance provided under this subsection to house5 holds receiving benefits under the supplemental 

6 nutrition assistance program shall not— 

7 ‘‘(i) be considered part of the supple8 mental nutrition assistance program bene9 fits of the household; or 

10 ‘‘(ii) be used in the collection or dis11 position of claims under section 13 of the 

12 Food and Nutrition Act of 2008 (7 U.S.C. 

13 2022). 

14 ‘‘(4) EVALUATION.— 

15 ‘‘(A) INDEPENDENT EVALUATION.—The 

16 Secretary shall provide for an independent eval17 uation of projects selected under this subsection 

18 that measures the impact of each project on— 

19 ‘‘(i) improving the nutrition and 

20 health status of participating households 

21 receiving incentives under this subsection; 

22 and 

23 ‘‘(ii) increasing fruit and vegetable 

24 purchases in participating households. 


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1 ‘‘(B) REQUIREMENT.—The independent 

2 evaluation under subparagraph (A) shall use 

3 rigorous methodologies capable of producing 

4 scientifically valid information regarding the ef5 fectiveness of a project. 

6 ‘‘(C) COSTS.—The Secretary may use 

7 funds not to exceed 10 percent of the funding 

8 provided to carry out this section to pay costs 

9 associated with administering, monitoring, and 

10 evaluating each project. 

11 ‘‘(c) FUNDING.— 

12 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

13 There is authorized to be appropriated to carry out 

14 subsection (b) $5,000,000 for each of fiscal years 

15 2014 through 2018. 

16 ‘‘(2) MANDATORY FUNDING.—Of the funds of 

17 the Commodity Credit Corporation, the Secretary 

18 shall use to carry out subsection (b)— 

19 ‘‘(A) $15,000,000 for fiscal year 2014; 

20 ‘‘(B) $20,000,000 for each of fiscal years 

21 2015 through 2017; and 

22 ‘‘(C) $25,000,000 for fiscal year 2018.’’. 


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1 SEC. 4205. HEALTHY FOOD FINANCING INITIATIVE. 

2 Subtitle D of title II of the Department of Agri3 culture Reorganization Act of 1994 (7 U.S.C. 6951 et 

4 seq.) is amended by adding at the end the following: 

5 ‘‘SEC. 242. HEALTHY FOOD FINANCING INITIATIVE. 

6 ‘‘(a) PURPOSE.—The purpose of this section is to en7 hance the authorities of the Secretary to support efforts 

8 to provide access to healthy food by establishing an initia9 tive to improve access to healthy foods in underserved 

10 areas, to create and preserve quality jobs, and to revitalize 

11 low-income communities by providing loans and grants to 

12 eligible fresh, healthy food retailers to overcome the higher 

13 costs and initial barriers to entry in underserved areas. 

14 ‘‘(b) DEFINITIONS.—In this section: 

15 ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN16 STITUTION.—The term ‘community development fi17 nancial institution’ has the meaning given the term 

18 in section 103 of the Community Development 

19 Banking and Financial Institutions Act of 1994 (12 

20 U.S.C. 4702). 

21 ‘‘(2) INITIATIVE.—The term ‘Initiative’ means 

22 the Healthy Food Financing Initiative established 

23 under subsection (c)(1). 

24 ‘‘(3) NATIONAL FUND MANAGER.—The term 

25 ‘national fund manager’ means a community devel26 opment financial institution that is— 


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1 ‘‘(A) in existence on the date of enactment 

2 of this section; and 

3 ‘‘(B) certified by the Community Develop4 ment Financial Institution Fund of the Depart5 ment of the Treasury to manage the Initiative 

6 for purposes of— 

7 ‘‘(i) raising private capital; 

8 ‘‘(ii) providing financial and technical 

9 assistance to partnerships; and 

10 ‘‘(iii) funding eligible projects to at11 tract fresh, healthy food retailers to under12 served areas, in accordance with this sec13 tion. 

14 ‘‘(4) PARTNERSHIP.—The term ‘partnership’ 

15 means a regional, State, or local public-private part16 nership that— 

17 ‘‘(A) is organized to improve access to 

18 fresh, healthy foods; 

19 ‘‘(B) provides financial and technical as20 sistance to eligible projects; and 

21 ‘‘(C) meets such other criteria as the Sec22 retary may establish. 

23 ‘‘(5) PERISHABLE FOOD.—The term ‘perishable 

24 food’ means a staple food that is fresh, refrigerated, 

25 or frozen. 


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1 ‘‘(6) QUALITY JOB.—The term ‘quality job’ 

2 means a job that provides wages and other benefits 

3 comparable to, or better than, similar positions in 

4 existing businesses of similar size in similar local 

5 economies. 

6 ‘‘(7) STAPLE FOOD.— 

7 ‘‘(A) IN GENERAL.—The term ‘staple food’ 

8 means food that is a basic dietary item. 

9 ‘‘(B) INCLUSIONS.—The term ‘staple food’ 

10 includes— 

11 ‘‘(i) bread; 

12 ‘‘(ii) flour; 

13 ‘‘(iii) fruits; 

14 ‘‘(iv) vegetables; and 

15 ‘‘(v) meat. 

16 ‘‘(c) INITIATIVE.— 

17 ‘‘(1) ESTABLISHMENT.—The Secretary shall es18 tablish an initiative to achieve the purpose described 

19 in subsection (a) in accordance with this subsection. 

20 ‘‘(2) IMPLEMENTATION.— 

21 ‘‘(A) IN GENERAL.— 

22 ‘‘(i) IN GENERAL.—In carrying out 

23 the Initiative, the Secretary shall provide 

24 funding to entities with eligible projects, as 

25 described in subparagraph (B), subject to 


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1 the priorities described in subparagraph 

2 (C). 

3 ‘‘(ii) USE OF FUNDS.—Funds pro4 vided to an entity pursuant to clause (i) 

5 shall be used— 

6 ‘‘(I) to create revolving loan pools 

7 of capital or other products to provide 

8 loans to finance eligible projects or 

9 partnerships; 

10 ‘‘(II) to provide grants for eligi11 ble projects or partnerships; 

12 ‘‘(III) to provide technical assist13 ance to funded projects and entities 

14 seeking Initiative funding; and 

15 ‘‘(IV) to cover administrative ex16 penses of the national fund manager 

17 in an amount not to exceed 10 per18 cent of the Federal funds provided. 

19 ‘‘(B) ELIGIBLE PROJECTS.—Subject to the 

20 approval of the Secretary, the national fund 

21 manager shall establish eligibility criteria for 

22 projects under the Initiative, which shall include 

23 the existence or planned execution of agree24 ments— 


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1 ‘‘(i) to expand or preserve the avail2 ability of staple foods in underserved areas 

3 with moderate- and low-income populations 

4 by maintaining or increasing the number 

5 of retail outlets that offer an assortment of 

6 perishable food and staple food items, as 

7 determined by the Secretary, in those 

8 areas; and 

9 ‘‘(ii) to accept benefits under the sup10 plemental nutrition assistance program es11 tablished under the Food and Nutrition 

12 Act of 2008 (7 U.S.C. 2011 et seq.). 

13 ‘‘(C) PRIORITIES.—In carrying out the Ini14 tiative, priority shall be given to projects that— 

15 ‘‘(i) are located in severely distressed 

16 low-income communities, as defined by the 

17 Community Development Financial Insti18 tutions Fund of the Department of the 

19 Treasury; and 

20 ‘‘(ii) include 1 or more of the fol21 lowing characteristics: 

22 ‘‘(I) The project will create or re23 tain quality jobs for low-income resi24 dents in the community. 


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1 ‘‘(II) The project supports re2 gional food systems and locally grown 

3 foods, to the maximum extent prac4 ticable. 

5 ‘‘(III) In areas served by public 

6 transit, the project is accessible by 

7 public transit. 

8 ‘‘(IV) The project involves 

9 women- or minority-owned businesses. 

10 ‘‘(V) The project receives funding 

11 from other sources, including other 

12 Federal agencies. 

13 ‘‘(VI) The project otherwise ad14 vances the purpose of this section, as 

15 determined by the Secretary. 

16 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

17 is authorized to be appropriated to the Secretary to carry 

18 out this section $125,000,000, to remain available until 

19 expended.’’. 

20 SEC. 4206. PULSE CROP PRODUCTS. 

21 (a) PURPOSE.—The purpose of this section is to en22 courage greater awareness and interest in the number and 

23 variety of pulse crop products available to schoolchildren, 

24 as recommended by the most recent Dietary Guidelines 

25 for Americans published under section 301 of the National 


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1 Nutrition Monitoring and Related Research Act of 1990 

2 (7 U.S.C. 5341). 

3 (b) DEFINITIONS.—In this section: 

4 (1) ELIGIBLE PULSE CROP.—The term ‘‘eligible 

5 pulse crop’’ means dry beans, dry peas, lentils, and 

6 chickpeas. 

7 (2) PULSE CROP PRODUCT.—The term ‘‘pulse 

8 crop product’’ means a food product derived in 

9 whole or in part from an eligible pulse crop. 

10 (c) PURCHASE OF PULSE CROPS AND PULSE CROP

11 PRODUCTS.—In addition to the commodities delivered 

12 under section 6 of the Richard B. Russell National School 

13 Lunch Act (42 U.S.C. 1755), the Secretary shall purchase 

14 eligible pulse crops and pulse crop products for use in— 

15 (1) the school lunch program established under 

16 the Richard B. Russell National School Lunch Act 

17 (42 U.S.C. 1751 et seq.); and 

18 (2) the school breakfast program established by 

19 section 4 of the Child Nutrition Act of 1966 (42 

20 U.S.C. 1773). 

21 (d) EVALUATION.—Not later than September 30, 

22 2016, the Secretary shall conduct an evaluation of the ac23 tivities conducted under subsection (c), including— 

24 (1) an evaluation of whether children partici25 pating in the school lunch and breakfast programs 


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1 described in subsection (c) increased overall con2 sumption of eligible pulse crops as a result of the ac3 tivities; 

4 (2) an evaluation of which eligible pulse crops 

5 and pulse crop products are most acceptable for use 

6 in the school lunch and breakfast programs; 

7 (3) any recommendations of the Secretary re8 garding the integration of the use of pulse crop 

9 products in carrying out the school lunch and break10 fast programs; 

11 (4) an evaluation of any change in the nutrient 

12 composition in the school lunch and breakfast pro13 grams due to the activities; and 

14 (5) an evaluation of any other outcomes deter15 mined to be appropriate by the Secretary. 

16 (e) REPORT.—As soon as practicable after the com17 pletion of the evaluation under subsection (d), the Sec18 retary shall submit to the Committee on Agriculture, Nu19 trition, and Forestry of the Senate and the Committee on 

20 Education and the Workforce of the House of Representa21 tive a report describing the results of the evaluation. 

22 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to carry out this section 

24 $10,000,000, to remain available until expended. 


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1 SEC. 4207. DIETARY GUIDELINES FOR AMERICANS. 

2 Section 301(a) of the National Nutrition Monitoring 

3 and Related Research Act of 1990 (7 U.S.C. 5341(a)) is 

4 amended by adding at the end the following: 

5 ‘‘(3) PREGNANT WOMEN AND YOUNG CHIL6 DREN.—Not later than the 2020 report and in each 

7 report thereafter, the Secretaries shall include na8 tional nutritional and dietary information and guide9 lines for pregnant women and children from birth 

10 until the age of 2.’’. 

11 SEC. 4208. PURCHASES OF LOCALLY PRODUCED FOODS. 

12 Section 9(j) of the Richard B. Russell National 

13 School Lunch Act (42 U.S.C. 1758(j)) is amended— 

14 (1) by redesignating paragraphs (1) through 

15 (3) as subparagraphs (A) through (C), respectively, 

16 and indenting the subparagraphs appropriately; 

17 (2) by striking ‘‘The Secretary’’ and inserting 

18 the following: 

19 ‘‘(1) IN GENERAL.—The Secretary’’; 

20 (3) in paragraph (1) (as so redesignated)— 

21 (A) in subparagraph (B)— 

22 (i) by striking ‘‘paragraph (1) of the 

23 policy described in that paragraph and 

24 paragraph (3)’’ and inserting ‘‘subpara25 graph (A) of the policy described in that 

26 subparagraph and subparagraph (C)’’; and 


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1 (ii) by striking ‘‘and’’ at the end; 

2 (B) in subparagraph (C), by striking the 

3 period at the end and inserting ‘‘; and’’; and 

4 (C) by adding at the end the following: 

5 ‘‘(D) not later than 1 year after the date 

6 of enactment of this subparagraph, in accord7 ance with paragraphs (2) and (3), conduct not 

8 fewer than 5 demonstration projects through 

9 school food authorities receiving funds under 

10 this Act and the Child Nutrition Act of 1966 

11 (42 U.S.C. 1771 et seq.) to facilitate the pur12 chase of unprocessed and minimally processed 

13 locally grown and locally raised agricultural 

14 products.’’; and 

15 (4) by adding at the end the following: 

16 ‘‘(2) SELECTION.—In conducting demonstration 

17 projects under paragraph (1)(D), the Secretary shall 

18 ensure that at least 1 project is located in a State 

19 in each of— 

20 ‘‘(A) the Pacific Northwest Region; 

21 ‘‘(B) the Northeast Region; 

22 ‘‘(C) the Western Region; 

23 ‘‘(D) the Midwest Region; and 

24 ‘‘(E) the Southern Region. 


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1 ‘‘(3) PRIORITY.—In selecting States for partici2 pation in the demonstration projects under para3 graph (2), the Secretary shall prioritize applications 

4 based on— 

5 ‘‘(A) the quantity and variety of growers of 

6 local fruits and vegetables in the State; 

7 ‘‘(B) the demonstrated commitment of the 

8 State to farm-to-school efforts, as evidenced by 

9 prior efforts to increase and promote farm-to10 school programs in the State; and 

11 ‘‘(C) whether the State contains a suffi12 cient quantity of school districts of varying pop13 ulation sizes and geographical locations.’’. 

14 SEC. 4209. MULTIAGENCY TASK FORCE. 

15 Subtitle D of title II of the Department of Agri16 culture Reorganization Act of 1994 (7 U.S.C. 6951 et 

17 seq.) (as amended by section 4205) is amended by adding 

18 at the end the following: 

19 ‘‘SEC. 243. MULTIAGENCY TASK FORCE. 

20 ‘‘(a) IN GENERAL.—The Secretary shall establish, in 

21 the office of the Under Secretary for Food, Nutrition, and 

22 Consumer Services, a multiagency task force for the pur23 pose of providing coordination and direction for com24 modity programs. 


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1 ‘‘(b) COMPOSITION.—The Task Force shall be com2 posed of at least 4 members, including— 

3 ‘‘(1) a representative from the Food Distribu4 tion Division of the Food and Nutrition Service, who 

5 shall— 

6 ‘‘(A) be appointed by the Under Secretary 

7 for Food, Nutrition, and Consumer Services; 

8 and 

9 ‘‘(B) serve as Chairperson of the Task 

10 Force; 

11 ‘‘(2) at least 1 representative from the Agricul12 tural Marketing Service, who shall be appointed by 

13 the Under Secretary for Marketing and Regulatory 

14 Programs; 

15 ‘‘(3) at least 1 representative from the Farm 

16 Services Agency, who shall be appointed by the 

17 Under Secretary for Farm and Foreign Agricultural 

18 Services; and 

19 ‘‘(4) at least 1 representative from the Food 

20 Safety and Inspection Service, who shall be ap21 pointed by the Under Secretary for Food Safety. 

22 ‘‘(c) DUTIES.— 

23 ‘‘(1) IN GENERAL.—The Task Force shall be 

24 responsible for evaluation and monitoring of the 


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1 commodity programs to ensure that the commodity 

2 programs meet the mission of the Department— 

3 ‘‘(A) to support the United States farm 

4 sector; and 

5 ‘‘(B) to contribute to the health and well6 being of individuals in the United States 

7 through the distribution of domestic agricul8 tural products through commodity programs. 

9 ‘‘(2) SPECIFIC DUTIES.—In carrying out para10 graph (1), the Task Force shall— 

11 ‘‘(A) review and make recommendations 

12 regarding the specifications used for the pro13 curement of food commodities; 

14 ‘‘(B) review and make recommendations 

15 regarding the efficient and effective distribution 

16 of food commodities; and 

17 ‘‘(C) review and make recommendations 

18 regarding the degree to which the quantity, 

19 quality, and specifications of procured food 

20 commodities align the needs of producers and 

21 the preferences of recipient agencies. 

22 ‘‘(d) REPORTS.—Not later than 1 year after the date 

23 of enactment of this section, and annually thereafter, the 

24 Secretary shall submit to Congress a report that describes, 

25 for the period covered by the report— 


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1 ‘‘(1) the findings and recommendations of the 

2 Task Force; and 

3 ‘‘(2) policies implemented for the improvement 

4 of commodity procurement programs.’’. 

5 SEC. 4210. FOOD AND AGRICULTURE SERVICE LEARNING 

6 PROGRAM. 

7 Subtitle D of title II of the Department of Agri8 culture Reorganization Act of 1994 (7 U.S.C. 6951 et 

9 seq.) (as amended by section 4209) is amended by adding 

10 at the end the following: 

11 ‘‘SEC. 244. FOOD AND AGRICULTURE SERVICE LEARNING 

12 PROGRAM. 

13 ‘‘(a) DEFINITIONS.—In this section: 

14 ‘‘(1) APPROVED NATIONAL SERVICE POSI15 TION.—The term ‘approved national service position’ 

16 has the meaning given the term in section 101 of the 

17 National and Community Service Act of 1990 (42 

18 U.S.C. 12511)). 

19 ‘‘(2) ELEMENTARY SCHOOL.—The term ‘ele20 mentary school’ has the meaning given the term in 

21 section 9101 of the Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 7801). 

23 ‘‘(3) PROGRAM.—The term ‘Program’ means 

24 the Food and Agriculture Service Learning Program 

25 established under subsection (b). 


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1 ‘‘(4) SECONDARY SCHOOL.—The term ‘sec2 ondary school’ has the meaning given the term in 

3 section 9101 of the Elementary and Secondary Edu4 cation Act of 1965 (20 U.S.C. 7801). 

5 ‘‘(b) ESTABLISHMENT.—The Secretary shall estab6 lish a Food and Agriculture Service Learning Program to 

7 increase knowledge of agriculture and improve the nutri8 tional health of children. 

9 ‘‘(c) PURPOSES.—The purposes of the Program 

10 are— 

11 ‘‘(1) to increase capacity for food, garden, and 

12 nutrition education within host organizations or enti13 ties and school cafeterias and in the classroom; 

14 ‘‘(2) to complement and build on the efforts of 

15 the farm to school programs implemented under sec16 tion 18(g) of the Richard B. Russell National School 

17 Lunch Act (42 U.S.C. 1769(g)); 

18 ‘‘(3) to complement efforts by the Department 

19 and school food authorities to implement school meal 

20 programs under section 4(b)(3) of the Richard B. 

21 Russell National School Lunch Act (42 U.S.C. 

22 1753(b)(3)); 

23 ‘‘(4) to carry out activities that advance the nu24 tritional health of children and nutrition education 

25 in elementary schools and secondary schools; 


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1 ‘‘(5) to build on activities carried out by the 

2 Food and Nutrition Service and the Corporation for 

3 National and Community Service by providing funds 

4 to establish new approved national service positions 

5 for a national service program; and 

6 ‘‘(6) to further expand the impact of the efforts 

7 described in paragraphs (1) through (5) through co8 ordination with the National Institute of Food and 

9 Agriculture. 

10 ‘‘(d) ELIGIBILITY.—In carrying out the Program, the 

11 Secretary may make awards to an organization or other 

12 entity that, as determined by the Secretary— 

13 ‘‘(1) has a proven track record in carrying out 

14 the activities described in subsection (c); 

15 ‘‘(2) is designated as a national service organi16 zation by the Corporation for National and Commu17 nity Service under subtitle C of title I of the Na18 tional and Community Service Act of 1990 (42 

19 U.S.C. 12571 et seq.); 

20 ‘‘(3) works in underserved rural and urban 

21 communities; 

22 ‘‘(4) teaches and engages children in experien23 tial learning about agriculture, gardening, nutrition, 

24 cooking, and where food comes from; and 


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1 ‘‘(5) facilitates a connection between elementary 

2 schools and secondary schools and agricultural pro3 ducers in the local and regional area. 

4 ‘‘(e) ACCOUNTABILITY.— 

5 ‘‘(1) IN GENERAL.—The Secretary may require 

6 an organization or other entity receiving an award 

7 under subsection (d), or another qualified entity, to 

8 collect and report any data on the activities carried 

9 out under the Program, as determined by the Sec10 retary. 

11 ‘‘(2) EVALUATION.—The Secretary shall— 

12 ‘‘(A) conduct regular evaluation of the ac13 tivities carried out under the Program; and 

14 ‘‘(B) submit to the Committee on Agri15 culture of the House of Representatives and the 

16 Committee on Agriculture, Nutrition, and For17 estry of the Senate a report that includes a de18 scription of the results of an evaluation con19 ducted under subparagraph (A). 

20 ‘‘(f) FUNDING.— 

21 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated to carry out 

23 this section $25,000,000, to remain available until 

24 expended. 


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1 ‘‘(2) USE OF CERTAIN FUNDS.—Of the funds 

2 made available to carry out this section for a fiscal 

3 year, 20 percent shall be made available to the Na4 tional Institute of Food and Agriculture to offset 

5 costs associated with hosting, training, and over6 seeing individuals in approved national service posi7 tions under the Program. 

8 ‘‘(3) MAINTENANCE OF EFFORT.—Funds made 

9 available under paragraph (1) shall be used only to 

10 supplement, not to supplant, the amount of Federal 

11 funding otherwise expended for nutrition, research, 

12 and extension programs of the Department.’’. 

13 TITLE V—CREDIT 

14 Subtitle A—Farmer Loans, Serv15 icing, and Other Assistance 

16 Under the Consolidated Farm 

17 and Rural Development Act 

18 SEC. 5001. FARMER LOANS, SERVICING, AND OTHER ASSIST19 ANCE UNDER THE CONSOLIDATED FARM AND 

20 RURAL DEVELOPMENT ACT. 

21 The Consolidated Farm and Rural Development Act 

22 (as amended by section 6001) is amended by inserting 

23 after section 3002 the following: 


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1 ‘‘Subtitle A—Farmer Loans, 

2 Servicing, and Other Assistance 

3 ‘‘CHAPTER 1—FARM OWNERSHIP LOANS 

4 ‘‘SEC. 3101. FARM OWNERSHIP LOANS. 

5 ‘‘(a) IN GENERAL.—The Secretary may make or 

6 guarantee a farm ownership loan under this chapter to 

7 an eligible farmer for a farm in the United States. 

8 ‘‘(b) ELIGIBILITY.—A farmer shall be eligible under 

9 subsection (a) only— 

10 ‘‘(1) if the farmer, or, in the case of an entity, 

11 1 or more individuals holding a majority interest in 

12 the entity— 

13 ‘‘(A) is a citizen of the United States; and 

14 ‘‘(B) in the case of a direct loan, has train15 ing or farming experience that the Secretary 

16 determines is sufficient to ensure a reasonable 

17 prospect of success in the farming operation 

18 proposed by the farmer; 

19 ‘‘(2)(A) in the case of a farmer that is an indi20 vidual, if the farmer is or proposes to become an 

21 owner and operator of a farm that is not larger than 

22 a family farm; or 

23 ‘‘(B) in the case of a lessee-operator of a farm 

24 located in the State of Hawaii, if the Secretary de25 termines that— 


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1 ‘‘(i) the farm is not larger than a family 

2 farm; 

3 ‘‘(ii) the farm cannot be acquired in fee 

4 simple by the lessee-operator; 

5 ‘‘(iii) adequate security is provided for the 

6 loan with respect to the farm for which the les7 see-operator applies under this chapter; and 

8 ‘‘(iv) there is a reasonable probability of 

9 accomplishing the objectives and repayment of 

10 the loan; 

11 ‘‘(3) in the case of a farmer that is a coopera12 tive, corporation, partnership, trust, limited liability 

13 company, joint operation, or such other legal entity 

14 as the Secretary determines to be appropriate, with 

15 respect to the entity and each farm in which the en16 tity has an ownership or operator interest— 

17 ‘‘(A) if— 

18 ‘‘(i) a majority interest is held by in19 dividuals who are related by blood or mar20 riage, as defined by the Secretary; 

21 ‘‘(ii) at least 1 of the individuals is or 

22 will be the operator of the farm; and 

23 ‘‘(iii) the farm is not larger than a 

24 family farm; 

25 ‘‘(B) if— 


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1 ‘‘(i) all of the individuals who are or 

2 propose to become owners or operators of 

3 a farm are related by blood or marriage; 

4 ‘‘(ii) all of the individuals are or pro5 pose to become operators of the farm; and 

6 ‘‘(iii) each of the interests of the indi7 viduals separately constitutes not larger 

8 than a family farm even if the ownership 

9 interests of the individuals collectively con10 stitute larger than a family farm; or 

11 ‘‘(C) if— 

12 ‘‘(i) the entire interest is not held by 

13 individuals who are related by blood or 

14 marriage, as defined by the Secretary; 

15 ‘‘(ii) all of the individuals are or pro16 pose to become farm operators; and 

17 ‘‘(iii) the farm is not larger than a 

18 family farm; 

19 ‘‘(4) in the case of an entity that is, or will be20 come within a reasonable period of time, as deter21 mined by the Secretary, only the operator of a fam22 ily farm, if the 1 or more individuals who are the 

23 owners of the family farm own— 

24 ‘‘(A) a percentage of the family farm that 

25 exceeds 50 percent; or 


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1 ‘‘(B) such other percentage as the Sec2 retary determines to be appropriate; 

3 ‘‘(5) in the case of an operator described in 

4 paragraph (3) that is owned, in whole or in part, by 

5 1 or more other entities, if each of the individuals 

6 that have a direct or indirect ownership interest in 

7 such other entities also have a direct ownership in8 terest in the entity; and 

9 ‘‘(6) if the farmer (or in the case of a farmer 

10 that is an entity, the 1 or more individuals that hold 

11 a majority interest in the entity) is unable to obtain 

12 credit elsewhere. 

13 ‘‘(c) DIRECT LOANS.— 

14 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

15 the Secretary may make a direct loan under this 

16 chapter only to a farmer who has participated in 

17 business operations of a farm for not less than 3 

18 years (or has other acceptable experience for a pe19 riod of time determined by the Secretary) and— 

20 ‘‘(A) is a qualified beginning farmer; 

21 ‘‘(B) has not received a previous direct 

22 farm ownership loan made under this chapter; 

23 or 

24 ‘‘(C) has not received a direct farm owner25 ship loan under this chapter more than 10 


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1 years before the date on which the new loan 

2 would be made. 

3 ‘‘(2) YOUTH LOANS.—The operation of an en4 terprise by a youth under section 3201(d) shall not 

5 be considered the operation of a farm for purposes 

6 of paragraph (1). 

7 ‘‘SEC. 3102. PURPOSES OF LOANS. 

8 ‘‘(a) ALLOWED PURPOSES.— 

9 ‘‘(1) DIRECT LOANS.—A farmer may use a di10 rect loan made under this chapter only— 

11 ‘‘(A) to acquire or enlarge a farm; 

12 ‘‘(B) to make capital improvements to a 

13 farm; 

14 ‘‘(C) to pay loan closing costs related to 

15 acquiring, enlarging, or improving a farm; 

16 ‘‘(D) to pay for activities to promote soil 

17 and water conservation and protection described 

18 in section 3103 on a farm; or 

19 ‘‘(E) to refinance a temporary bridge loan 

20 made by a commercial or cooperative lender to 

21 a farmer for the acquisition of land for a farm, 

22 if— 

23 ‘‘(i) the Secretary approved an appli24 cation for a direct farm ownership loan to 

25 the farmer for acquisition of the land; and 


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1 ‘‘(ii) funds for direct farm ownership 

2 loans under section 3201(a) were not avail3 able at the time at which the application 

4 was approved. 

5 ‘‘(2) GUARANTEED LOANS.—A farmer may use 

6 a loan guaranteed under this chapter only— 

7 ‘‘(A) to acquire or enlarge a farm; 

8 ‘‘(B) to make capital improvements to a 

9 farm; 

10 ‘‘(C) to pay loan closing costs related to 

11 acquiring, enlarging, or improving a farm; 

12 ‘‘(D) to pay for activities to promote soil 

13 and water conservation and protection described 

14 in section 3103 on a farm; or 

15 ‘‘(E) to refinance indebtedness. 

16 ‘‘(b) PREFERENCES.—In making or guaranteeing a 

17 loan under this chapter for purchase of a farm, the Sec18 retary shall give preference to a person who— 

19 ‘‘(1) has a dependent family; 

20 ‘‘(2) to the extent practicable, is able to make 

21 an initial down payment on the farm; or 

22 ‘‘(3) is an owner of livestock or farm equipment 

23 that is necessary to successfully carry out farming 

24 operations. 


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1 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—The Sec2 retary may not make a loan to a farmer under this chapter 

3 unless the farmer has, or agrees to obtain, hazard insur4 ance on any real property to be acquired or improved with 

5 the loan. 

6 ‘‘SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE 

7 PROGRAM. 

8 ‘‘(a) IN GENERAL.—The Secretary may make or 

9 guarantee qualified conservation loans to eligible bor10 rowers under this section. 

11 ‘‘(b) DEFINITIONS.—In this section: 

12 ‘‘(1) CONSERVATION PLAN.—The term ‘con13 servation plan’ means a plan, approved by the Sec14 retary, that, for a farming operation, identifies the 

15 conservation activities that will be addressed with 

16 loan funds provided under this section, including— 

17 ‘‘(A) the installation of conservation struc18 tures to address soil, water, and related re19 sources; 

20 ‘‘(B) the establishment of forest cover for 

21 sustained yield timber management, erosion 

22 control, or shelter belt purposes; 

23 ‘‘(C) the installation of water conservation 

24 measures; 


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1 ‘‘(D) the installation of waste management 

2 systems; 

3 ‘‘(E) the establishment or improvement of 

4 permanent pasture; 

5 ‘‘(F) compliance with section 1212 of the 

6 Food Security Act of 1985 (16 U.S.C. 3812); 

7 and 

8 ‘‘(G) other purposes consistent with the 

9 plan, including the adoption of any other 

10 emerging or existing conservation practices, 

11 techniques, or technologies approved by the Sec12 retary. 

13 ‘‘(2) QUALIFIED CONSERVATION LOAN.—The 

14 term ‘qualified conservation loan’ means a loan, the 

15 proceeds of which are used to cover the costs to the 

16 borrower of carrying out a qualified conservation 

17 project. 

18 ‘‘(3) QUALIFIED CONSERVATION PROJECT.— 

19 The term ‘qualified conservation project’ means con20 servation measures that address provisions of a con21 servation plan of the eligible borrower. 

22 ‘‘(c) ELIGIBILITY.— 

23 ‘‘(1) IN GENERAL.—The Secretary may make 

24 or guarantee loans to farmers. 


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1 ‘‘(2) REQUIREMENTS.—To be eligible for a loan 

2 under this section, applicants shall meet the citizen3 ship and training and experience requirements of 

4 section 3101(b). 

5 ‘‘(d) PRIORITY.—In making or guaranteeing loans 

6 under this section, the Secretary shall give priority to— 

7 ‘‘(1) qualified beginning farmers and socially 

8 disadvantaged farmers; 

9 ‘‘(2) owners or tenants who use the loans to 

10 convert to sustainable or organic agricultural pro11 duction systems; and 

12 ‘‘(3) producers who use the loans to build con13 servation structures or establish conservation prac14 tices to comply with section 1212 of the Food Secu15 rity Act of 1985 (16 U.S.C. 3812). 

16 ‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARAN17 TEES.—The portion of a loan that the Secretary may 

18 guarantee under this section shall not exceed 75 percent 

19 of the principal amount of the loan. 

20 ‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary 

21 shall ensure, to the maximum extent practicable, that 

22 loans made or guaranteed under this section are distrib23 uted across diverse geographic regions. 


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1 ‘‘(g) CREDIT ELIGIBILITY.—The provisions of para2 graphs (1) and (3) of section 3406(a) shall not apply to 

3 loans made or guaranteed under this section. 

4 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For 

5 each of fiscal years 2013 through 2018, there are author6 ized to be appropriated to the Secretary such sums as are 

7 necessary to carry out this section. 

8 ‘‘SEC. 3104. LOAN MAXIMUMS. 

9 ‘‘(a) MAXIMUM.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall make 

11 or guarantee no loan under sections 3101, 3102, 

12 3103, 3106, and 3107 that would cause the unpaid 

13 indebtedness under those sections of any 1 borrower 

14 to exceed the lesser of— 

15 ‘‘(A) the value of the farm or other secu16 rity, or 

17 ‘‘(B)(i) in the case of a loan made by the 

18 Secretary, $300,000; or 

19 ‘‘(ii) in the case of a loan guaranteed by 

20 the Secretary, $700,000 (as modified under 

21 paragraph (2)). 

22 ‘‘(2) MODIFICATION.—The amount specified in 

23 paragraph (1)(B)(ii) shall be— 

24 ‘‘(A) increased, beginning with fiscal year 

25 2000, by the inflation percentage applicable to 


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1 the fiscal year in which the loan is guaranteed; 

2 and 

3 ‘‘(B) reduced by the amount of any unpaid 

4 indebtedness of the borrower on loans under 

5 chapter 2 that are guaranteed by the Secretary. 

6 ‘‘(b) DETERMINATION OF VALUE.—In determining 

7 the value of the farm, the Secretary shall consider apprais8 als made by competent appraisers under rules established 

9 by the Secretary. 

10 ‘‘(c) INFLATION PERCENTAGE.—For purposes of this 

11 section, the inflation percentage applicable to a fiscal year 

12 is the percentage (if any) by which— 

13 ‘‘(1) the average of the Prices Paid By Farmers 

14 Index (as compiled by the National Agricultural Sta15 tistics Service of the Department) for the 12-month 

16 period ending on August 31 of the immediately pre17 ceding fiscal year; exceeds 

18 ‘‘(2) the average of that index (as so defined) 

19 for the 12-month period ending on August 31, 1996. 

20 ‘‘SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWN21 ERSHIP LOANS. 

22 ‘‘(a) PERIOD FOR REPAYMENT.—The period for re23 payment of a loan under this chapter shall not exceed 40 

24 years. 

25 ‘‘(b) INTEREST RATES.— 


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1 ‘‘(1) IN GENERAL.—Except as otherwise pro2 vided in this title, the interest rate on a loan under 

3 this chapter shall be determined by the Secretary at 

4 a rate— 

5 ‘‘(A) not to exceed the sum obtained by 

6 adding— 

7 ‘‘(i) the current average market yield 

8 on outstanding marketable obligations of 

9 the United States with remaining periods 

10 to maturity comparable to the average ma11 turity of the loan; and 

12 ‘‘(ii) an amount not to exceed 1 per13 cent, as determined by the Secretary; and 

‘‘(B) adjusted to the nearest 1 14 ⁄8 of 1 per15 cent. 

16 ‘‘(2) LOW-INCOME FARM OWNERSHIP LOANS.— 

17 Except as provided in paragraph (3), the interest 

18 rate on a loan (other than a guaranteed loan) under 

19 section 3106 shall be determined by the Secretary at 

20 a rate that is— 

21 ‘‘(A) not greater than the sum obtained by 

22 adding— 

23 ‘‘(i) an amount that does not exceed 

1 24 ⁄2 of the current average market yield on 

25 outstanding marketable obligations of the 


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1 United States with maturities of 5 years; 

2 and 

3 ‘‘(ii) an amount not to exceed 1 per4 cent per year, as the Secretary determines 

5 is appropriate; and 

6 ‘‘(B) not less than 5 percent per year. 

7 ‘‘(3) JOINT FINANCING ARRANGEMENT.—If a 

8 direct farm ownership loan is made under this chap9 ter as part of a joint financing arrangement and the 

10 amount of the direct farm ownership loan does not 

11 exceed 50 percent of the total principal amount fi12 nanced under the arrangement, the interest rate on 

13 the direct farm ownership loan shall be at least 4 

14 percent annually. 

15 ‘‘(4) GUARANTEED LOANS.—The interest rate 

16 on a loan made under this chapter as a guaranteed 

17 loan shall be such rate as may be agreed on by the 

18 borrower and the lender, but not in excess of any 

19 rate determined by the Secretary. 

20 ‘‘(c) PAYMENT OF CHARGES.—A borrower of a loan 

21 made or guaranteed under this chapter shall pay such fees 

22 and other charges as the Secretary may require, and pre23 pay to the Secretary such taxes and insurance as the Sec24 retary may require, on such terms and conditions as the 

25 Secretary may prescribe. 


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1 ‘‘(d) SECURITY.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall take as 

3 security for an obligation entered into in connection 

4 with a loan, a mortgage on a farm with respect to 

5 which the loan is made or such other security as the 

6 Secretary may require. 

7 ‘‘(2) LIENS TO UNITED STATES.—An instru8 ment for security under paragraph (1) may con9 stitute a lien running to the United States notwith10 standing the fact that the note for the security may 

11 be held by a lender other than the United States. 

12 ‘‘(3) MULTIPLE LOANS.—A borrower may use 

13 the same collateral to secure 2 or more loans made 

14 or guaranteed under this chapter, except that the 

15 outstanding amount of the loans may not exceed the 

16 total value of the collateral. 

17 ‘‘(e) MINERAL RIGHTS AS COLLATERAL.— 

18 ‘‘(1) IN GENERAL.—In the case of a farm own19 ership loan made after December 23, 1985, unless 

20 appraised values of the rights to oil, gas, or other 

21 minerals are specifically included as part of the ap22 praised value of collateral securing the loan, the 

23 rights to oil, gas, or other minerals located under 

24 the property shall not be considered part of the col25 lateral securing the loan. 


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1 ‘‘(2) COMPENSATORY PAYMENTS.—Nothing in 

2 this subsection prevents the inclusion of, as part of 

3 the collateral securing the loan, any payment or 

4 other compensation the borrower may receive for 

5 damages to the surface of the collateral real estate 

6 resulting from the exploration for or recovery of 

7 minerals. 

8 ‘‘(f) ADDITIONAL COLLATERAL.—The Secretary may 

9 not— 

10 ‘‘(1) require any borrower to provide additional 

11 collateral to secure a farmer program loan made or 

12 guaranteed under this subtitle, if the borrower is 

13 current in the payment of principal and interest on 

14 the loan; or 

15 ‘‘(2) bring any action to foreclose, or otherwise 

16 liquidate, the loan as a result of the failure of a bor17 rower to provide additional collateral to secure the 

18 loan, if the borrower was current in the payment of 

19 principal and interest on the loan at the time the ad20 ditional collateral was requested. 

21 ‘‘SEC. 3106. LIMITED-RESOURCE LOANS. 

22 ‘‘(a) IN GENERAL.—The Secretary may make or 

23 guarantee a limited-resource loan for any of the purposes 

24 specified in sections 3102(a) or 3103(a) to a farmer in 

25 the United States who— 


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1 ‘‘(1) in the case of an entity, all members, 

2 stockholders, or partners are eligible under section 

3 3101(b); 

4 ‘‘(2) has a low income; and 

5 ‘‘(3) demonstrates a need to maximize the in6 come of the farmer from farming operations. 

7 ‘‘(b) INSTALLMENTS.—A loan made or guaranteed 

8 under this section shall be repayable in such installments 

9 as the Secretary determines will provide for reduced pay10 ments during the initial repayment period of the loan and 

11 larger payments during the remainder of the repayment 

12 period of the loan. 

13 ‘‘(c) INTEREST RATES.—Except as provided in sec14 tion 3105(b)(3) and in section 3204(b)(3), the interest 

15 rate on loans (other than guaranteed loans) under this 

16 section shall not be— 

17 ‘‘(1) greater than the sum obtained by add18 ing— 

‘‘(A) an amount that does not exceed 1 19 ⁄2 of 

20 the current average market yield on out21 standing marketable obligations of the United 

22 States with maturities of 5 years; and 

23 ‘‘(B) an amount not exceeding 1 percent 

24 per year, as the Secretary determines is appro25 priate; or 


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1 ‘‘(2) less than 5 percent per year. 

2 ‘‘SEC. 3107. DOWNPAYMENT LOAN PROGRAM. 

3 ‘‘(a) IN GENERAL.— 

4 ‘‘(1) ESTABLISHMENT.—Notwithstanding any 

5 other provision of this chapter, the Secretary shall 

6 establish, under the farm ownership loan program 

7 established under this chapter, a program under 

8 which loans shall be made under this section to a 

9 qualified beginning farmer or a socially disadvan10 taged farmer for a downpayment on a farm owner11 ship loan. 

12 ‘‘(2) COORDINATION.—The Secretary shall be 

13 the primary coordinator of credit supervision for the 

14 downpayment loan program established under this 

15 section, in consultation with a commercial or cooper16 ative lender and, if applicable, a contracting credit 

17 counseling service selected under section 3420(c). 

18 ‘‘(b) LOAN TERMS.— 

19 ‘‘(1) PRINCIPAL.—Each loan made under this 

20 section shall be in an amount that does not exceed 

21 45 percent of the lesser of— 

22 ‘‘(A) the purchase price of the farm to be 

23 acquired; 

24 ‘‘(B) the appraised value of the farm to be 

25 acquired; or 


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1 ‘‘(C) $667,000. 

2 ‘‘(2) INTEREST RATE.—The interest rate on 

3 any loan made by the Secretary under this section 

4 shall be a rate equal to the greater of— 

5 ‘‘(A) the difference between— 

6 ‘‘(i) 4 percent; and 

7 ‘‘(ii) the interest rate for farm owner8 ship loans under this chapter; or 

9 ‘‘(B) 1.5 percent. 

10 ‘‘(3) DURATION.—Each loan under this section 

11 shall be made for a period of 20 years or less, at the 

12 option of the borrower. 

13 ‘‘(4) REPAYMENT.—Each borrower of a loan 

14 under this section shall repay the loan to the Sec15 retary in equal annual installments. 

16 ‘‘(5) NATURE OF RETAINED SECURITY INTER17 EST.—The Secretary shall retain an interest in each 

18 farm acquired with a loan made under this section 

19 that shall— 

20 ‘‘(A) be secured by the farm; 

21 ‘‘(B) be junior only to such interests in the 

22 farm as may be conveyed at the time of acquisi23 tion to the person (including a lender) from 

24 whom the borrower obtained a loan used to ac25 quire the farm; and 


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1 ‘‘(C) require the borrower to obtain the 

2 permission of the Secretary before the borrower 

3 may grant an additional security interest in the 

4 farm. 

5 ‘‘(c) LIMITATIONS.— 

6 ‘‘(1) BORROWERS REQUIRED TO MAKE MIN7 IMUM DOWN PAYMENT.—The Secretary shall not 

8 make a loan under this section to any borrower with 

9 respect to a farm if the contribution of the borrower 

10 to the down payment on the farm will be less than 

11 5 percent of the purchase price of the farm. 

12 ‘‘(2) PROHIBITED TYPES OF FINANCING.—The 

13 Secretary shall not make a loan under this section 

14 with respect to a farm if the farm is to be acquired 

15 with other financing that contains any of the fol16 lowing conditions: 

17 ‘‘(A) The financing is to be amortized over 

18 a period of less than 30 years. 

19 ‘‘(B) A balloon payment will be due on the 

20 financing during the 20-year period beginning 

21 on the date on which the loan is to be made by 

22 the Secretary. 

23 ‘‘(d) ADMINISTRATION.—In carrying out this section, 

24 the Secretary shall, to the maximum extent practicable— 


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1 ‘‘(1) facilitate the transfer of farms from retir2 ing farmers to persons eligible for insured loans 

3 under this subtitle; 

4 ‘‘(2) make efforts to widely publicize the avail5 ability of loans under this section among— 

6 ‘‘(A) potentially eligible recipients of the 

7 loans; 

8 ‘‘(B) retiring farmers; and 

9 ‘‘(C) applicants for farm ownership loans 

10 under this chapter; 

11 ‘‘(3) encourage retiring farmers to assist in the 

12 sale of their farms to qualified beginning farmers 

13 and socially disadvantaged farmers providing seller 

14 financing; 

15 ‘‘(4) coordinate the loan program established by 

16 this section with State programs that provide farm 

17 ownership or operating loans for beginning farmers 

18 or socially disadvantaged farmers; and 

19 ‘‘(5) establish annual performance goals to pro20 mote the use of the down payment loan program and 

21 other joint financing arrangements as the preferred 

22 choice for direct real estate loans made by any lend23 er to a qualified beginning farmer or socially dis24 advantaged farmer. 


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1 ‘‘SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVAN2 TAGED FARMER CONTRACT LAND SALES 

3 PROGRAM. 

4 ‘‘(a) IN GENERAL.—The Secretary shall, in accord5 ance with this section, guarantee a loan made by a private 

6 seller of a farm to a qualified beginning farmer or socially 

7 disadvantaged farmer on a contract land sales basis. 

8 ‘‘(b) ELIGIBILITY.—To be eligible for a loan guar9 antee under subsection (a)— 

10 ‘‘(1) the qualified beginning farmer or socially 

11 disadvantaged farmer shall— 

12 ‘‘(A) on the date the contract land sale 

13 that is subject of the loan is complete, own and 

14 operate the farm that is the subject of the con15 tract land sale; 

16 ‘‘(B) have a credit history that— 

17 ‘‘(i) includes a record of satisfactory 

18 debt repayment, as determined by the Sec19 retary; and 

20 ‘‘(ii) is acceptable to the Secretary; 

21 and 

22 ‘‘(C) demonstrate to the Secretary that the 

23 farmer is unable to obtain sufficient credit with24 out a guarantee to finance any actual need of 

25 the farmer at a reasonable rate or term; and 


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1 ‘‘(2) the loan shall meet applicable underwriting 

2 criteria, as determined by the Secretary. 

3 ‘‘(c) LIMITATIONS.—The Secretary shall not provide 

4 a loan guarantee under subsection (a) if— 

5 ‘‘(1) the contribution of the qualified beginning 

6 farmer or socially disadvantaged farmer to the down 

7 payment for the farm that is the subject of the con8 tract land sale would be less than 5 percent of the 

9 purchase price of the farm; or 

10 ‘‘(2) the purchase price or the appraisal value 

11 of the farm that is the subject of the contract land 

12 sale is greater than $500,000. 

13 ‘‘(d) PERIOD OF GUARANTEE.—A loan guarantee 

14 under this section shall be in effect for the 10-year period 

15 beginning on the date on which the guarantee is provided. 

16 ‘‘(e) GUARANTEE PLAN.— 

17 ‘‘(1) SELECTION OF PLAN.—A private seller of 

18 a farm who makes a loan guaranteed by the Sec19 retary under subsection (a) may select— 

20 ‘‘(A) a prompt payment guarantee plan, 

21 which shall cover— 

22 ‘‘(i) 3 amortized annual installments; 

23 or 

24 ‘‘(ii) an amount equal to 3 annual in25 stallments (including an amount equal to 


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1 the total cost of any tax and insurance in2 curred during the period covered by the 

3 annual installments); or 

4 ‘‘(B) a standard guarantee plan, which 

5 shall cover an amount equal to 90 percent of 

6 the outstanding principal of the loan. 

7 ‘‘(2) ELIGIBILITY FOR STANDARD GUARANTEE

8 PLAN.—To be eligible for a standard guarantee plan 

9 referred to in paragraph (1)(B), a private seller 

10 shall— 

11 ‘‘(A) secure a commercial lending institu12 tion or similar entity, as determined by the Sec13 retary, to serve as an escrow agent; or 

14 ‘‘(B) in cooperation with the farmer, use 

15 an appropriate alternate arrangement, as deter16 mined by the Secretary. 

17 ‘‘CHAPTER 2—OPERATING LOANS 

18 ‘‘SEC. 3201. OPERATING LOANS. 

19 ‘‘(a) IN GENERAL.—The Secretary may make or 

20 guarantee an operating loan under this chapter to an eligi21 ble farmer in the United States. 

22 ‘‘(b) ELIGIBILITY.—A farmer shall be eligible under 

23 subsection (a) only— 

24 ‘‘(1) if the farmer, or an individual holding a 

25 majority interest in the farmer— 


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1 ‘‘(A) is a citizen of the United States; and 

2 ‘‘(B) has training or farming experience 

3 that the Secretary determines is sufficient to 

4 ensure a reasonable prospect of success in the 

5 farming operation proposed by the farmer; 

6 ‘‘(2) in the case of a farmer that is an indi7 vidual, if the farmer is or proposes to become an op8 erator of a farm that is not larger than a family 

9 farm; 

10 ‘‘(3) in the case of a farmer that is a coopera11 tive, corporation, partnership, trust, limited liability 

12 company, joint operation, or such other legal entity 

13 as the Secretary determines to be appropriate, with 

14 respect to the entity and each farm in which the en15 tity has an ownership or operator interest— 

16 ‘‘(A) if— 

17 ‘‘(i) a majority interest is held by in18 dividuals who are related by blood or mar19 riage, as defined by the Secretary; 

20 ‘‘(ii) at least 1 of the individuals is or 

21 will be the operator of the farm; and 

22 ‘‘(iii) the farm is not larger than a 

23 family farm; 

24 ‘‘(B) if— 


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1 ‘‘(i) all of the individuals who are or 

2 propose to become owners or operators of 

3 a farm are related by blood or marriage; 

4 ‘‘(ii) all of the individuals are or pro5 pose to become operators of the farm; and 

6 ‘‘(iii) each of the interests of the indi7 viduals separately constitutes not larger 

8 than a family farm even if the ownership 

9 interests of the individuals collectively con10 stitute larger than a family farm; or 

11 ‘‘(C) if— 

12 ‘‘(i) the entire interest is not held by 

13 individuals who are related by blood or 

14 marriage, as defined by the Secretary; 

15 ‘‘(ii) all of the individuals are or pro16 pose to become farm operators; and 

17 ‘‘(iii) the farm is not larger than a 

18 family farm; 

19 ‘‘(4) in the case of an operator described in 

20 paragraph (3) that is owned, in whole or in part by 

21 1 or more other entities, if not less than 75 percent 

22 of the ownership interests of each other entity is 

23 owned directly or indirectly by 1 or more individuals 

24 who own the family farm; and 


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1 ‘‘(5) if the farmer (or in the case of a farmer 

2 that is an entity, the 1 or more individuals that hold 

3 a majority interest in the entity) is unable to obtain 

4 credit elsewhere. 

5 ‘‘(c) DIRECT LOANS.— 

6 ‘‘(1) IN GENERAL.—The Secretary may make a 

7 direct loan under this chapter only to a farmer 

8 who— 

9 ‘‘(A) is a qualified beginning farmer; 

10 ‘‘(B) has not received a previous direct op11 erating loan made under this chapter; or 

12 ‘‘(C) has not received a direct operating 

13 loan made under this chapter for a total of 10 

14 years, plus any year the farmer or rancher did 

15 not receive a direct operating loan after the 

16 year in which the borrower initially received a 

17 direct operating loan under this chapter, as de18 termined by the Secretary. 

19 ‘‘(2) YOUTH LOANS.—In this subsection, the 

20 term ‘direct operating loan’ shall not include a loan 

21 made to a youth under subsection (d). 

22 ‘‘(3) WAIVERS.— 

23 ‘‘(A) FARM OPERATIONS ON TRIBAL

24 LAND.—The Secretary shall waive the limita25 tion under paragraph (1)(C) for a direct loan 


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1 made under this chapter to a farmer whose 

2 farm land is subject to the jurisdiction of an In3 dian tribe and whose loan is secured by 1 or 

4 more security instruments that are subject to 

5 the jurisdiction of an Indian tribe if the Sec6 retary determines that commercial credit is not 

7 generally available for such farm operations. 

8 ‘‘(B) OTHER FARM OPERATIONS.—On a 

9 case-by-case determination not subject to ad10 ministrative appeal, the Secretary may grant a 

11 borrower a waiver, 1 time only for a period of 

12 2 years, of the limitation under paragraph 

13 (1)(C) for a direct operating loan if the bor14 rower demonstrates to the satisfaction of the 

15 Secretary that— 

16 ‘‘(i) the borrower has a viable farm 

17 operation; 

18 ‘‘(ii) the borrower applied for commer19 cial credit from at least 2 commercial lend20 ers; 

21 ‘‘(iii) the borrower was unable to ob22 tain a commercial loan (including a loan 

23 guaranteed by the Secretary); and 

24 ‘‘(iv) the borrower successfully has 

25 completed, or will complete within 1 year, 


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1 borrower training under section 3419 

2 (from which requirement the Secretary 

3 shall not grant a waiver under section 

4 3419(f)). 

5 ‘‘(d) YOUTH LOANS.— 

6 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

7 (b), except for citizenship and credit requirements, a 

8 loan may be made under this chapter to a youth who 

9 is a rural resident to enable the youth to operate an 

10 enterprise in connection with the participation in a 

11 youth organization, as determined by the Secretary. 

12 ‘‘(2) FULL PERSONAL LIABILITY.—A youth re13 ceiving a loan under this subsection who executes a 

14 promissory note for the loan shall incur full personal 

15 liability for the indebtedness evidenced by the note, 

16 in accordance with the terms of the note, free of any 

17 disability of minority. 

18 ‘‘(3) COSIGNER.—The Secretary may accept the 

19 personal liability of a cosigner of a promissory note 

20 for a loan under this subsection, in addition to the 

21 personal liability of the youth borrower. 

22 ‘‘(4) YOUTH ENTERPRISES NOT FARMING.—The 

23 operation of an enterprise by a youth under this 

24 subsection shall not be considered the operation of 

25 a farm under this subtitle. 


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1 ‘‘(5) RELATION TO OTHER LOAN PROGRAMS.— 

2 Notwithstanding any other provision of law, if a bor3 rower becomes delinquent with respect to a youth 

4 loan made under this subsection, the borrower shall 

5 not become ineligible, as a result of the delinquency, 

6 to receive loans and loan guarantees from the Fed7 eral government to pay for education expenses of the 

8 borrower. 

9 ‘‘(e) PILOT LOAN PROGRAM TO SUPPORT HEALTHY

10 FOODS FOR THE HUNGRY.— 

11 ‘‘(1) DEFINITION OF GLEANER.—In this sub12 section, the term ‘gleaner’ means an entity that— 

13 ‘‘(A) collects edible, surplus food that 

14 would be thrown away and distributes the food 

15 to agencies or nonprofit organizations that feed 

16 the hungry; or 

17 ‘‘(B) harvests for free distribution to the 

18 needy, or for donation to agencies or nonprofit 

19 organizations for ultimate distribution to the 

20 needy, an agricultural crop that has been do21 nated by the owner of the crop. 

22 ‘‘(2) PROGRAM.—Not later than 180 days after 

23 the date of enactment of this subsection, the Sec24 retary shall establish, within the operating loan pro25 gram established under this chapter, a pilot program 


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1 under which the Secretary makes loans available to 

2 eligible entities to assist the entities in providing 

3 food to the hungry. 

4 ‘‘(3) ELIGIBILITY.—In addition to any other 

5 person eligible under the terms and conditions of the 

6 operating loan program established under this chap7 ter, gleaners shall be eligible to receive loans under 

8 this subsection. 

9 ‘‘(4) LOAN AMOUNT.— 

10 ‘‘(A) IN GENERAL.—Each loan issued 

11 under the program shall be in an amount of not 

12 less than $500 and not more than $5,000. 

13 ‘‘(B) REDISTRIBUTION.—If the eligible re14 cipients in a State do not use the full allocation 

15 of loans that are available to eligible recipients 

16 in the State under this subsection, the Sec17 retary may use any unused amounts to make 

18 loans available to eligible entities in other 

19 States in accordance with this subsection. 

20 ‘‘(5) LOAN PROCESSING.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall 

22 process any loan application submitted under 

23 the program not later than 30 days after the 

24 date on which the application was submitted. 


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1 ‘‘(B) EXPEDITING APPLICATIONS.—The 

2 Secretary shall take any measure the Secretary 

3 determines necessary to expedite any applica4 tion submitted under the program. 

5 ‘‘(6) PAPERWORK REDUCTION.—The Secretary 

6 shall take measures to reduce any paperwork re7 quirements for loans under the program. 

8 ‘‘(7) PROGRAM INTEGRITY.—The Secretary 

9 shall take such actions as are necessary to ensure 

10 the integrity of the program established under this 

11 subsection. 

12 ‘‘(8) MAXIMUM AMOUNT.—Of funds that are 

13 made available to carry out this chapter, the Sec14 retary shall use to carry out this subsection a total 

15 amount of not more than $500,000. 

16 ‘‘(9) REPORT.—Not later than 180 days after 

17 the maximum amount of funds are used to carry out 

18 this subsection under paragraph (8), the Secretary 

19 shall submit to the Committee on Agriculture of the 

20 House of Representatives and the Committee on Ag21 riculture, Nutrition, and Forestry of the Senate a 

22 report that describes the results of the pilot program 

23 and the feasibility of expanding the program. 


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1 ‘‘SEC. 3202. PURPOSES OF LOANS. 

2 ‘‘(a) DIRECT LOANS.—A direct loan may be made 

3 under this chapter only— 

4 ‘‘(1) to pay the costs incident to reorganizing a 

5 farm for more profitable operation; 

6 ‘‘(2) to purchase livestock, poultry, or farm 

7 equipment; 

8 ‘‘(3) to purchase feed, seed, fertilizer, insecti9 cide, or farm supplies, or to meet other essential 

10 farm operating expenses, including cash rent; 

11 ‘‘(4) to finance land or water development, use, 

12 or conservation; 

13 ‘‘(5) to pay loan closing costs; 

14 ‘‘(6) to assist a farmer in changing the equip15 ment, facilities, or methods of operation of a farm 

16 to comply with a standard promulgated under sec17 tion 6 of the Occupational Safety and Health Act of 

18 1970 (29 U.S.C. 655) or a standard adopted by a 

19 State under a plan approved under section 18 of 

20 that Act (29 U.S.C. 667), if the Secretary deter21 mines that without assistance under this paragraph 

22 the farmer is likely to suffer substantial economic in23 jury in complying with the standard; 

24 ‘‘(7) to train a limited-resource borrower receiv25 ing a loan under section 3106 in maintaining 

26 records of farming operations; 


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1 ‘‘(8) to train a borrower under section 3419; 

2 ‘‘(9) to refinance the indebtedness of a bor3 rower, if the borrower— 

4 ‘‘(A) has refinanced a loan under this 

5 chapter not more than 4 times previously; and 

6 ‘‘(B)(i) is a direct loan borrower under this 

7 subtitle at the time of the refinancing and has 

8 suffered a qualifying loss because of a natural 

9 or major disaster or emergency; or 

10 ‘‘(ii) is refinancing a debt obtained from a 

11 creditor other than the Secretary; 

12 ‘‘(10) to provide other farm or home needs, in13 cluding family subsistence; or 

14 ‘‘(11) to assist a farmer in the production of a 

15 locally or regionally produced agricultural food prod16 uct (as defined in section 3601(e)(11)(A)), including 

17 to qualified producers engaged in direct-to-consumer 

18 marketing, direct-to-institution marketing, or direct19 to-store marketing, business, or activities that 

20 produce a value-added agricultural product (as de21 fined in section 231(a) of the Agricultural Risk Pro22 tection Act of 2000 (7 U.S.C. 1632a(a))). 

23 ‘‘(b) GUARANTEED LOANS.—A loan may be guaran24 teed under this chapter only— 


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1 ‘‘(1) to pay the costs incident to reorganizing a 

2 farm for more profitable operation; 

3 ‘‘(2) to purchase livestock, poultry, or farm 

4 equipment; 

5 ‘‘(3) to purchase feed, seed, fertilizer, insecti6 cide, or farm supplies, or to meet other essential 

7 farm operating expenses, including cash rent; 

8 ‘‘(4) to finance land or water development, use, 

9 or conservation; 

10 ‘‘(5) to refinance indebtedness; 

11 ‘‘(6) to pay loan closing costs; 

12 ‘‘(7) to assist a farmer in changing the equip13 ment, facilities, or methods of operation of a farm 

14 to comply with a standard promulgated under sec15 tion 6 of the Occupational Safety and Health Act of 

16 1970 (29 U.S.C. 655) or a standard adopted by a 

17 State under a plan approved under section 18 of 

18 that Act (29 U.S.C. 667), if the Secretary deter19 mines that without assistance under this paragraph 

20 the farmer is likely to suffer substantial economic in21 jury due to compliance with the standard; 

22 ‘‘(8) to train a borrower under section 3419; or 

23 ‘‘(9) to provide other farm or home needs, in24 cluding family subsistence. 


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1 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—The Sec2 retary may not make a loan to a farmer under this chapter 

3 unless the farmer has, or agrees to obtain, hazard insur4 ance on the property to be acquired with the loan. 

5 ‘‘(d) PRIVATE RESERVE.— 

6 ‘‘(1) IN GENERAL.—Notwithstanding any other 

7 provision of this title, the Secretary may reserve a 

8 portion of any loan made under this chapter to be 

9 placed in an unsupervised bank account that may be 

10 used at the discretion of the borrower for the basic 

11 family needs of the borrower and the immediate 

12 family of the borrower. 

13 ‘‘(2) LIMIT ON SIZE OF THE RESERVE.—The 

14 size of the reserve shall not exceed the lesser of— 

15 ‘‘(A) 10 percent of the loan; 

16 ‘‘(B) $5,000; or 

17 ‘‘(C) the amount needed to provide for the 

18 basic family needs of the borrower and the im19 mediate family of the borrower for 3 calendar 

20 months. 

21 ‘‘(e) LOANS TO LOCAL AND REGIONAL FOOD PRO22 DUCERS.— 

23 ‘‘(1) TRAINING.—The Secretary shall ensure 

24 that loan officers processing loans under subsection 

25 (a)(11) receive appropriate training to serve borVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00461 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 rowers and potential borrowers engaged in local and 

2 regional food production. 

3 ‘‘(2) VALUATION.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 develop ways to determine unit prices (or other 

6 appropriate forms of valuation) for crops and 

7 other agricultural products, the end use of 

8 which is intended to be in locally or regionally 

9 produced agricultural food products, to facili10 tate lending to local and regional food pro11 ducers. 

12 ‘‘(B) PRICE HISTORY.—The Secretary 

13 shall implement a mechanism for local and re14 gional food producers to establish price history 

15 for the crops and other agricultural products 

16 produced by local and regional food producers. 

17 ‘‘(3) OUTREACH.—The Secretary shall develop 

18 and implement an outreach strategy to engage and 

19 provide loan services to local and regional food pro20 ducers. 

21 ‘‘SEC. 3203. RESTRICTIONS ON LOANS. 

22 ‘‘(a) REQUIREMENTS.— 

23 ‘‘(1) IN GENERAL.—The Secretary may not 

24 make or guarantee a loan under this chapter— 


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1 ‘‘(A) that would cause the total principal 

2 indebtedness outstanding at any 1 time for 

3 loans made under this chapter to any 1 bor4 rower to exceed— 

5 ‘‘(i)(I) in the case of a loan made by 

6 the Secretary, $300,000; or 

7 ‘‘(II) in the case of a loan guaranteed 

8 by the Secretary, $700,000 (as modified 

9 under paragraph (2)); or 

10 ‘‘(B) for the purchasing or leasing of land 

11 other than for cash rent, or for carrying on a 

12 land leasing or land purchasing program. 

13 ‘‘(2) MODIFICATION.—The amount specified in 

14 paragraph (1)(A)(ii) shall be— 

15 ‘‘(A) increased, beginning with fiscal year 

16 2000, by the inflation percentage applicable to 

17 the fiscal year in which the loan is guaranteed; 

18 and 

19 ‘‘(B) reduced by the unpaid indebtedness 

20 of the borrower on loans under sections speci21 fied in section 3104 that are guaranteed by the 

22 Secretary. 

23 ‘‘(b) INFLATION PERCENTAGE.—For purposes of this 

24 section, the inflation percentage applicable to a fiscal year 

25 is the percentage (if any) by which— 


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1 ‘‘(1) the average of the Prices Paid By Farmers 

2 Index (as compiled by the National Agricultural Sta3 tistics Service of the Department) for the 12-month 

4 period ending on August 31 of the immediately pre5 ceding fiscal year; exceeds 

6 ‘‘(2) the average of that index (as so defined) 

7 for the 12-month period ending on August 31, 1996. 

8 ‘‘SEC. 3204. TERMS OF LOANS. 

9 ‘‘(a) PERSONAL LIABILITY.—A borrower of a loan 

10 made under this chapter shall secure the loan with the 

11 full personal liability of the borrower and such other secu12 rity as the Secretary may prescribe. 

13 ‘‘(b) INTEREST RATES.— 

14 ‘‘(1) MAXIMUM RATE.— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 paragraphs (2) and (3), the interest rate on a 

17 loan made under this chapter (other than a 

18 guaranteed loan) shall be determined by the 

19 Secretary at a rate not to exceed the sum ob20 tained by adding— 

21 ‘‘(i) the current average market yield 

22 on outstanding marketable obligations of 

23 the United States with remaining periods 

24 to maturity comparable to the average ma25 turity of the loan; and 


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1 ‘‘(ii) an additional charge not to ex2 ceed 1 percent, as determined by the Sec3 retary. 

4 ‘‘(B) ADJUSTMENT.—The sum obtained 

5 under subparagraph (A) shall be adjusted to 

the nearest 1 6 ⁄8 of 1 percent. 

7 ‘‘(2) GUARANTEED LOAN.—The interest rate on 

8 a guaranteed loan made under this chapter shall be 

9 such rate as may be agreed on by the borrower and 

10 the lender, but may not exceed any rate prescribed 

11 by the Secretary. 

12 ‘‘(3) LOW-INCOME LOAN.—The interest rate on 

13 a direct loan made under this chapter to a low-in14 come, limited-resource borrower shall be determined 

15 by the Secretary at a rate that is not— 

16 ‘‘(A) greater than the sum obtained by 

17 adding— 

18 ‘‘(i) an amount that does not exceed 

1 19 ⁄2 of the current average market yield on 

20 outstanding marketable obligations of the 

21 United States with a maturity of 5 years; 

22 and 

23 ‘‘(ii) an amount not to exceed 1 per24 cent per year, as the Secretary determines 

25 is appropriate; or 


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1 ‘‘(B) less than 5 percent per year. 

2 ‘‘(c) PERIOD FOR REPAYMENT.—The period for re3 payment of a loan made under this chapter may not ex4 ceed 7 years. 

5 ‘‘(d) LINE-OF-CREDIT LOANS.— 

6 ‘‘(1) IN GENERAL.—A loan made or guaranteed 

7 by the Secretary under this chapter may be in the 

8 form of a line-of-credit loan. 

9 ‘‘(2) TERM.—A line-of-credit loan under para10 graph (1) shall terminate not later than 5 years 

11 after the date that the loan is made or guaranteed. 

12 ‘‘(3) ELIGIBILITY.—For purposes of deter13 mining eligibility for an operating loan under this 

14 chapter, each year during which a farmer takes an 

15 advance or draws on a line-of-credit loan the farmer 

16 shall be considered as having received an operating 

17 loan for 1 year. 

18 ‘‘(4) TERMINATION OF DELINQUENT LOANS.— 

19 If a borrower does not pay an installment on a line20 of-credit loan on schedule, the borrower may not 

21 take an advance or draw on the line-of-credit, unless 

22 the Secretary determines that— 

23 ‘‘(A) the failure of the borrower to pay on 

24 schedule was due to unusual conditions that the 

25 borrower could not control; and 


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1 ‘‘(B) the borrower will reduce the line-of2 credit balance to the scheduled level at the end 

3 of— 

4 ‘‘(i) the production cycle; or 

5 ‘‘(ii) the marketing of the agricultural 

6 products of the borrower. 

7 ‘‘(5) AGRICULTURAL COMMODITIES.—A line-of8 credit loan may be used to finance the production or 

9 marketing of an agricultural commodity that is eligi10 ble for a price support program of the Department. 

11 ‘‘CHAPTER 3—EMERGENCY LOANS 

12 ‘‘SEC. 3301. EMERGENCY LOANS. 

13 ‘‘(a) IN GENERAL.—The Secretary shall make or 

14 guarantee an emergency loan under this chapter to an eli15 gible farmer (including a commercial fisherman) only to 

16 the extent and in such amounts as provided in advance 

17 in appropriation Acts. 

18 ‘‘(b) ELIGIBILITY.—An established farmer shall be 

19 eligible under subsection (a) only— 

20 ‘‘(1) if the farmer or an individual holding a 

21 majority interest in the farmer— 

22 ‘‘(A) is a citizen of the United States; and 

23 ‘‘(B) has experience and resources that the 

24 Secretary determines are sufficient to ensure a 


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1 reasonable prospect of success in the farming 

2 operation proposed by the farmer; 

3 ‘‘(2) in the case of a farmer that is an indi4 vidual, if the farmer is— 

5 ‘‘(A) in the case of a loan for a purpose 

6 under chapter 1, an owner, operator, or lessee7 operator described in section 3101(b)(2); and 

8 ‘‘(B) in the case of a loan for a purpose 

9 under chapter 2, an operator of a farm that is 

10 not larger than a family farm; 

11 ‘‘(3) in the case of a farmer that is a coopera12 tive, corporation, partnership, trust, limited liability 

13 company, joint operation, or such other legal entity 

14 as the Secretary determines to be appropriate, with 

15 respect to the entity and each farm in which the en16 tity has an ownership or operator interest— 

17 ‘‘(A) if— 

18 ‘‘(i) a majority interest is held by in19 dividuals who are related by blood or mar20 riage, as defined by the Secretary; 

21 ‘‘(ii) at least 1 of the individuals is or 

22 will be the operator of the farm; and 

23 ‘‘(iii) the farm is not larger than a 

24 family farm; 

25 ‘‘(B) if— 


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1 ‘‘(i) all of the individuals who are or 

2 propose to become owners or operators of 

3 a farm are related by blood or marriage; 

4 ‘‘(ii) all of the individuals are or pro5 pose to become operators of the farm; and 

6 ‘‘(iii) each of the interests of the indi7 viduals separately constitutes not larger 

8 than a family farm even if the ownership 

9 interests of the individuals collectively con10 stitute larger than a family farm; or 

11 ‘‘(C) if— 

12 ‘‘(i) the entire interest is not held by 

13 individuals who are related by blood or 

14 marriage, as defined by the Secretary; 

15 ‘‘(ii) all of the individuals are or pro16 pose to become farm operators; and 

17 ‘‘(iii) the farm is not larger than a 

18 family farm; 

19 ‘‘(4) if the entity is owned, in whole or in part, 

20 by 1 or more other entities and each individual who 

21 is an owner of the family farm involved has a direct 

22 or indirect ownership interest in each of the other 

23 entities; 

24 ‘‘(5) if the farmer (or in the case of a farmer 

25 that is an entity, the 1 or more individuals that hold 


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1 a majority interest in the entity) is unable to obtain 

2 credit elsewhere; and 

3 ‘‘(6)(A) if the Secretary finds that the oper4 ations of the farmer have been substantially affected 

5 by— 

6 ‘‘(i) a natural or major disaster or emer7 gency designated by the President under the 

8 Robert T. Stafford Disaster Relief and Emer9 gency Assistance Act (42 U.S.C. 5121 et seq.); 

10 or 

11 ‘‘(ii) a quarantine imposed by the Sec12 retary under the Plant Protection Act (7 U.S.C. 

13 7701 et seq.) or the Animal Health Protection 

14 Act (7 U.S.C. 8301 et seq.); or 

15 ‘‘(B) if the farmer conducts farming operations 

16 in a county or a county contiguous to a county in 

17 which the Secretary has found that farming oper18 ations have been substantially affected by a natural 

19 or major disaster or emergency. 

20 ‘‘(c) TIME FOR ACCEPTING AN APPLICATION.—The 

21 Secretary shall accept an application for a loan under this 

22 chapter from a farmer at any time during the 8-month 

23 period beginning on the date that— 


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1 ‘‘(1) the Secretary determines that farming op2 erations of the farmer have been substantially af3 fected by— 

4 ‘‘(A) a quarantine imposed by the Sec5 retary under the Plant Protection Act (7 U.S.C. 

6 7701 et seq.) or the Animal Health Protection 

7 Act (7 U.S.C. 8301 et seq.); or 

8 ‘‘(B) a natural disaster; or 

9 ‘‘(2) the President makes a major disaster or 

10 emergency designation with respect to the affected 

11 county of the farmer referred to in subsection 

12 (b)(5)(B). 

13 ‘‘(d) HAZARD INSURANCE REQUIREMENT.—The Sec14 retary may not make a loan to a farmer under this chapter 

15 to cover a property loss unless the farmer had hazard in16 surance that insured the property at the time of the loss. 

17 ‘‘(e) FAMILY FARM.—The Secretary shall conduct 

18 the loan program under this chapter in a manner that will 

19 foster and encourage the family farm system of agri20 culture, consistent with the reaffirmation of policy and 

21 declaration of the intent of Congress contained in section 

22 102(a) of the Food and Agriculture Act of 1977 (7 U.S.C. 

23 2266(a)). 


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1 ‘‘SEC. 3302. PURPOSES OF LOANS. 

2 ‘‘Subject to the limitations on the amounts of loans 

3 provided in section 3303(a), a loan may be made or guar4 anteed under this chapter for— 

5 ‘‘(1) any purpose authorized for a loan under 

6 chapter 1 or 2; and 

7 ‘‘(2) crop or livestock purposes that are— 

8 ‘‘(A) necessitated by a quarantine, natural 

9 disaster, major disaster, or emergency; and 

10 ‘‘(B) considered desirable by the farmer. 

11 ‘‘SEC. 3303. TERMS OF LOANS. 

12 ‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Secretary 

13 may not make or guarantee a loan under this chapter to 

14 a borrower who has suffered a loss in an amount that— 

15 ‘‘(1) exceeds the actual loss caused by a dis16 aster; or 

17 ‘‘(2) would cause the total indebtedness of the 

18 borrower under this chapter to exceed $500,000. 

19 ‘‘(b) INTEREST RATES.—Any portion of a loan under 

20 this chapter up to the amount of the actual loss suffered 

21 by a farmer caused by a disaster shall be at a rate pre22 scribed by the Secretary, but not in excess of 8 percent 

23 per annum. 

24 ‘‘(c) INTEREST SUBSIDIES FOR GUARANTEED

25 LOANS.—In the case of a guaranteed loan under this 

26 chapter, the Secretary may pay an interest subsidy to the 


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1 lender for any portion of the loan up to the amount of 

2 the actual loss suffered by a farmer caused by a disaster. 

3 ‘‘(d) TIME FOR REPAYMENT.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

5 loan under this chapter shall be repayable at such 

6 times as the Secretary may determine, considering 

7 the purpose of the loan and the nature and effect of 

8 the disaster, but not later than the maximum repay9 ment period allowed for a loan for a similar purpose 

10 under chapters 1 and 2. 

11 ‘‘(2) EXTENDED REPAYMENT PERIOD.—The 

12 Secretary may, if the loan is for a purpose described 

13 in chapter 2 and the Secretary determines that the 

14 need of the loan applicant justifies the longer repay15 ment period, make the loan repayable at the end of 

16 a period of more than 7 years, but not more than 

17 20 years. 

18 ‘‘(e) SECURITY FOR LOAN.— 

19 ‘‘(1) IN GENERAL.—A borrower of a loan made 

20 under this chapter shall secure the loan with the full 

21 personal liability of the borrower and such other se22 curity as the Secretary may prescribe. 

23 ‘‘(2) ADEQUATE SECURITY.—Subject to para24 graph (3), the Secretary may not make or guarantee 


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1 a loan under this chapter unless the security for the 

2 loan is adequate to ensure repayment of the loan. 

3 ‘‘(3) INADEQUATE SECURITY DUE TO DIS4 ASTER.—If adequate security for a loan under this 

5 chapter is not available because of a disaster, the 

6 Secretary shall accept as security any collateral that 

7 is available if the Secretary is confident that the col8 lateral and the repayment ability of the farmer are 

9 adequate security for the loan. 

10 ‘‘(4) VALUATION OF FARM ASSETS.—If a farm 

11 asset (including land, livestock, or equipment) is 

12 used as collateral to secure a loan applied for under 

13 this chapter and the governor of the State in which 

14 the farm is located requests assistance under this 

15 chapter or the Robert T. Stafford Disaster Relief 

16 and Emergency Assistance Act (42 U.S.C. 5121 et 

17 seq.) for the portion of the State in which the asset 

18 is located, the Secretary shall establish the value of 

19 the asset as of the day before the occurrence of the 

20 natural or major disaster or emergency. 

21 ‘‘(f) REVIEW OF LOAN.— 

22 ‘‘(1) IN GENERAL.—In the case of a loan made, 

23 but not guaranteed, under section 3301, the Sec24 retary shall review the loan 3 years after the loan 


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1 is made, and every 2 years thereafter for the term 

2 of the loan. 

3 ‘‘(2) TERMINATION OF FEDERAL ASSIST4 ANCE.—If, based on a review under paragraph (1), 

5 the Secretary determines that the borrower is able to 

6 obtain a loan from a non-Federal source at reason7 able rates and terms, the borrower shall, on request 

8 by the Secretary, apply for, and accept, a non-Fed9 eral loan in a sufficient amount to repay the Sec10 retary. 

11 ‘‘SEC. 3304. PRODUCTION LOSSES. 

12 ‘‘(a) IN GENERAL.—The Secretary shall make or 

13 guarantee a loan under this chapter to an eligible farmer 

14 for production losses if a single enterprise that constitutes 

15 a basic part of the farming operation of the farmer has 

16 sustained at least a 30 percent loss in normal per acre 

17 or per animal production, or such lesser percentage as the 

18 Secretary may determine, as a result of a disaster. 

19 ‘‘(b) BASIS FOR PERCENTAGE.—A percentage loss 

20 under subsection (a) shall be based on the average month21 ly price in effect for the previous crop or calendar year, 

22 as appropriate. 

23 ‘‘(c) AMOUNT OF LOAN.—A loan under subsection 

24 (a) shall be in an amount that is equal to 80 percent, or 

25 such greater percentage as the Secretary may determine, 


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1 of the total calculated actual production loss sustained by 

2 the farmer. 

3 ‘‘CHAPTER 4—GENERAL FARMER LOAN 

4 PROVISIONS 

5 ‘‘SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND. 

6 ‘‘The fund established pursuant to section 11(a) of 

7 the Bankhead-Jones Farm Tenant Act (60 Stat. 1075, 

8 chapter 964) shall be known as the Agricultural Credit 

9 Insurance Fund (referred to in this section as the ‘Fund’, 

10 unless the context otherwise requires) for the discharge 

11 of the obligations of the Secretary under agreements in12 suring loans under this subtitle and loans and mortgages 

13 insured under prior authority. 

14 ‘‘SEC. 3402. GUARANTEED FARMER LOANS. 

15 ‘‘(a) IN GENERAL.—The Secretary may provide fi16 nancial assistance to a borrower for a purpose provided 

17 in this subtitle by guaranteeing a loan made by any Fed18 eral or State chartered bank, savings and loan association, 

19 cooperative lending agency, or other legally organized 

20 lending agency. 

21 ‘‘(b) INTEREST RATE.—The interest rate payable by 

22 a borrower on the portion of a guaranteed loan that is 

23 sold by a lender to the secondary market under this sub24 title may be lower than the interest rate charged on the 

25 portion retained by the lender, but shall not exceed the 


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1 average interest rate charged by the lender on loans made 

2 to farm borrowers. 

3 ‘‘(c) FEES.—In the case of a loan guarantee on a 

4 loan made by a commercial or cooperative lender related 

5 to a loan made by the Secretary under section 3107— 

6 ‘‘(1) the Secretary shall not charge a fee to any 

7 person (including a lender); and 

8 ‘‘(2) a lender may charge a loan origination and 

9 servicing fee in an amount not to exceed 1 percent 

10 of the amount of the loan. 

11 ‘‘(d) MAXIMUM GUARANTEE OF 90 PERCENT.—Ex12 cept as provided in subsections (e) and (f), a loan guar13 antee under this subtitle shall be for not more than 90 

14 percent of the principal and interest due on the loan. 

15 ‘‘(e) REFINANCED LOANS GUARANTEED AT 95 PER16 CENT.—The Secretary shall guarantee 95 percent of— 

17 ‘‘(1) in the case of a loan that solely refinances 

18 a direct loan made under this subtitle, the principal 

19 and interest due on the loan on the date of the refi20 nancing; or 

21 ‘‘(2) in the case of a loan that is used for mul22 tiple purposes, the portion of the loan that refi23 nances the principal and interest due on a direct 

24 loan made under this subtitle that is outstanding on 

25 the date the loan is guaranteed. 


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1 ‘‘(f) BEGINNING FARMER LOANS GUARANTEED UP

2 TO 95 PERCENT.—The Secretary may guarantee not more 

3 than 95 percent of— 

4 ‘‘(1) a farm ownership loan for acquiring a 

5 farm to a borrower who is participating in the down6 payment loan program under section 3107; or 

7 ‘‘(2) an operating loan to a borrower who is 

8 participating in the downpayment loan program 

9 under section 3107 that is made during the period 

10 that the borrower has a direct loan outstanding 

11 under chapter 1 for acquiring a farm. 

12 ‘‘(g) GUARANTEE OF LOANS MADE UNDER STATE

13 BEGINNING FARMER PROGRAMS.—The Secretary may 

14 guarantee under this subtitle a loan made under a State 

15 beginning farmer program, including a loan financed by 

16 the net proceeds of a qualified small issue agricultural 

17 bond for land or property described in section 

18 144(a)(12)(B)(ii) of the Internal Revenue Code of 1986. 

19 ‘‘(h) PARTIAL LIQUIDATIONS.—If a partial liquida20 tion of a delinquent loan is performed (with the prior con21 sent of the Secretary) as part of loan servicing by a guar22 anteed lender under this subtitle, the Secretary shall not 

23 require full liquidation of the loan for the lender to be 

24 eligible to receive payment on losses. 


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1 ‘‘SEC. 3403. PROVISION OF INFORMATION TO BORROWERS. 

2 ‘‘(a) APPROVAL NOTIFICATION.—The Secretary shall 

3 approve or disapprove an application for a loan or loan 

4 guarantee made under this subtitle, and notify the appli5 cant of such action, not later than 60 days after the date 

6 on which the Secretary has received a complete application 

7 for the loan or loan guarantee. 

8 ‘‘(b) LIST OF LENDERS.—The Secretary shall make 

9 available to any farmer, on request, a list of lenders in 

10 the area that participate in guaranteed farmer program 

11 loan programs established under this subtitle, and other 

12 lenders in the area that express a desire to participate in 

13 the programs and that request inclusion on the list. 

14 ‘‘(c) OTHER INFORMATION.— 

15 ‘‘(1) IN GENERAL.—On the request of a bor16 rower, the Secretary shall make available to the bor17 rower— 

18 ‘‘(A) a copy of each document signed by 

19 the borrower; 

20 ‘‘(B) a copy of each appraisal performed 

21 with respect to the loan; and 

22 ‘‘(C) any document that the Secretary is 

23 required to provide to the borrower under any 

24 law in effect on the date of the request. 

25 ‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 

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1 retary by a law in effect on January 5, 1988, unless 

2 the duty directly conflicts with a duty under para3 graph (1). 

4 ‘‘SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS. 

5 ‘‘(a) REQUIREMENT.—The Secretary shall provide 

6 notice by certified mail to each borrower who is at least 

7 90 days past due on the payment of principal or interest 

8 on a loan made under this subtitle. 

9 ‘‘(b) CONTENTS.—The notice required under sub10 section (a) shall— 

11 ‘‘(1) include a summary of all primary loan 

12 service programs, homestead retention programs, 

13 debt settlement programs, and appeal procedures, 

14 including the eligibility criteria, and terms and con15 ditions of the programs and procedures; 

16 ‘‘(2) include a summary of the manner in which 

17 the borrower may apply, and be considered, for all 

18 such programs, except that the Secretary shall not 

19 require the borrower to select among the programs 

20 or waive any right to be considered for any program 

21 carried out by the Secretary; 

22 ‘‘(3) advise the borrower regarding all filing re23 quirements and any deadlines that must be met for 

24 requesting loan servicing; 


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1 ‘‘(4) provide any relevant forms, including ap2 plicable response forms; 

3 ‘‘(5) advise the borrower that a copy of regula4 tions is available on request; and 

5 ‘‘(6) be designed to be readable and under6 standable by the borrower. 

7 ‘‘(c) CONTAINED IN REGULATIONS.—All notices re8 quired by this section shall be contained in the regulations 

9 issued to carry out this subtitle. 

10 ‘‘(d) TIMING.—The notice described in subsection (b) 

11 shall be provided— 

12 ‘‘(1) at the time an application is made for par13 ticipation in a loan service program; 

14 ‘‘(2) on written request of the borrower; and 

15 ‘‘(3) before the earliest of the date of— 

16 ‘‘(A) initiating any liquidation; 

17 ‘‘(B) requesting the conveyance of security 

18 property; 

19 ‘‘(C) accelerating the loan; 

20 ‘‘(D) repossessing property; 

21 ‘‘(E) foreclosing on property; or 

22 ‘‘(F) taking any other collection action. 

23 ‘‘(e) CONSIDERATION OF BORROWERS FOR LOAN

24 SERVICE PROGRAMS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall con2 sider a farmer program loan borrower for all loan 

3 service programs if, not later than 60 days after re4 ceipt of the notice described in subsection (b), the 

5 borrower requests the consideration in writing. 

6 ‘‘(2) PRIORITY.—In considering a borrower for 

7 a loan service program, the Secretary shall place the 

8 highest priority on the preservation of the farming 

9 operations of the borrower. 

10 ‘‘SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDE11 LINES. 

12 ‘‘(a) IN GENERAL.—The Secretary shall ensure that 

13 appropriate procedures, including, to the extent prac14 ticable, onsite inspections, or use of county or State yield 

15 averages, are used in calculating future yields for an appli16 cant for a loan, when an accurate projection cannot be 

17 made because the past production history of the farmer 

18 has been affected by a natural or major disaster or emer19 gency. 

20 ‘‘(b) CALCULATION OF YIELDS.— 

21 ‘‘(1) IN GENERAL.—For the purpose of aver22 aging the past yields of the farm of a farmer over 

23 a period of crop years to calculate the future yield 

24 of the farm under this subtitle, the Secretary shall 

25 permit the farmer to exclude the crop year with the 


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1 lowest actual or county average yield for the farm 

2 from the calculation, if the farmer was affected by 

3 a natural or major disaster or emergency during at 

4 least 2 of the crop years during the period. 

5 ‘‘(2) AFFECTED BY A NATURAL OR MAJOR DIS6 ASTER OR EMERGENCY.—A farmer was affected by 

7 a natural or major disaster or emergency under 

8 paragraph (1) if the Secretary finds that the farm9 ing operations of the farmer have been substantially 

10 affected by a natural or major disaster or emer11 gency, including a farmer who has a qualifying loss 

12 but is not located in a designated or declared dis13 aster area. 

14 ‘‘(3) APPLICATION OF SUBSECTION.—This sub15 section shall apply to any action taken by the Sec16 retary that involves— 

17 ‘‘(A) a loan under chapter 1 or 2; and 

18 ‘‘(B) the yield of a farm of a farmer, in19 cluding making a loan or loan guarantee, serv20 icing a loan, or making a credit sale. 

21 ‘‘SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON 

22 LOANS. 

23 ‘‘(a) APPLICANT REQUIREMENTS.—In connection 

24 with a loan made or guaranteed under this subtitle, the 

25 Secretary shall require— 


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1 ‘‘(1) the applicant— 

2 ‘‘(A) to certify in writing that, and the 

3 Secretary shall determine whether, the appli4 cant is unable to obtain credit elsewhere; and 

5 ‘‘(B) to furnish an appropriate written fi6 nancial statement; 

7 ‘‘(2) except for a guaranteed loan, an agree8 ment by the borrower that if at any time it appears 

9 to the Secretary that the borrower may be able to 

10 obtain a loan from a production credit association, 

11 a Federal land bank, or other responsible coopera12 tive or private credit source (or, in the case of a bor13 rower under section 3106, the borrower may be able 

14 to obtain a loan under section 3101), at reasonable 

15 rates and terms for loans for similar purposes and 

16 periods of time, the borrower will, on request by the 

17 Secretary, apply for and accept the loan in a suffi18 cient amount to repay the Secretary or the insured 

19 lender, or both, and to pay for any stock necessary 

20 to be purchased in a cooperative lending agency in 

21 connection with the loan; 

22 ‘‘(3) such provision for supervision of the oper23 ations of the borrower as the Secretary shall con24 sider necessary to achieve the objectives of the loan 

25 and protect the interests of the United States; and 


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1 ‘‘(4) the application of a person who is a vet2 eran for a loan under chapter 1 or 2 to be given 

3 preference over a similar application from a person 

4 who is not a veteran if the applications are on file 

5 in a county or area office at the same time. 

6 ‘‘(b) AGENCY PROCESSING REQUIREMENTS.— 

7 ‘‘(1) NOTIFICATIONS.— 

8 ‘‘(A) INCOMPLETE APPLICATION NOTIFICA9 TION.—If an application for a loan or loan 

10 guarantee under this subtitle (other than an op11 erating loan or loan guarantee) is incomplete, 

12 the Secretary shall inform the applicant of the 

13 reasons the application is incomplete not later 

14 than 20 days after the date on which the Sec15 retary has received the application. 

16 ‘‘(B) OPERATING LOANS.— 

17 ‘‘(i) ADDITIONAL INFORMATION

18 NEEDED.—Not later than 10 calendar 

19 days after the Secretary receives an appli20 cation for an operating loan or loan guar21 antee, the Secretary shall notify the appli22 cant of any information required before a 

23 decision may be made on the application. 

24 ‘‘(ii) INFORMATION NOT RECEIVED.— 

25 If, not later than 20 calendar days after 


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1 the date a request is made pursuant to 

2 clause (i) with respect to an application, 

3 the Secretary has not received the informa4 tion requested, the Secretary shall notify 

5 the applicant and the district office of the 

6 Farm Service Agency, in writing, of the 

7 outstanding information. 

8 ‘‘(C) REQUEST INFORMATION.— 

9 ‘‘(i) IN GENERAL.—On receipt of an 

10 application, the Secretary shall request 

11 from other parties such information as 

12 may be needed in connection with the ap13 plication. 

14 ‘‘(ii) INFORMATION FROM AN AGENCY

15 OF THE DEPARTMENT.—Not later than 15 

16 calendar days after the date on which an 

17 agency of the Department receives a re18 quest for information made pursuant to 

19 subparagraph (A), the agency shall provide 

20 the Secretary with the requested informa21 tion. 

22 ‘‘(2) REPORT OF PENDING APPLICATIONS.— 

23 ‘‘(A) IN GENERAL.—A county office shall 

24 notify the district office of the Farm Service 

25 Agency of each application for an operating 


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1 loan or loan guarantee that is pending more 

2 than 45 days after receipt, and the reasons for 

3 which the application is pending. 

4 ‘‘(B) ACTION ON PENDING APPLICA5 TIONS.—A district office that receives a notice 

6 provided under subparagraph (A) with respect 

7 to an application shall immediately take steps 

8 to ensure that final action is taken on the appli9 cation not later than 15 days after the date of 

10 the receipt of the notice. 

11 ‘‘(C) PENDING APPLICATION REPORT.— 

12 The district office shall report to the State of13 fice of the Farm Service Agency on each appli14 cation for an operating loan or loan guarantee 

15 that is pending more than 45 days after receipt, 

16 and the reasons for which the application is 

17 pending. 

18 ‘‘(D) REPORT TO CONGRESS.—Each 

19 month, the Secretary shall notify the Com20 mittee on Agriculture of the House of Rep21 resentatives and the Committee on Agriculture, 

22 Nutrition, and Forestry of the Senate, on a 

23 State-by-State basis, as to each application for 

24 an operating loan or loan guarantee on which 

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1 endar days after receipt by the Secretary, and 

2 the reasons for which final action had not been 

3 taken. 

4 ‘‘(3) DISAPPROVALS.— 

5 ‘‘(A) IN GENERAL.—If an application for a 

6 loan or loan guarantee under this subtitle is 

7 disapproved by the Secretary, the Secretary 

8 shall state the reasons for the disapproval in 

9 the notice required under paragraph (1). 

10 ‘‘(B) DISAPPROVAL DUE TO LACK OF

11 FUNDS.— 

12 ‘‘(i) IN GENERAL.—Notwithstanding 

13 paragraph (1), each application for a loan 

14 or loan guarantee under section 3601(e), 

15 or for a loan under section 3501(a) or 

16 3502(a), that is to be disapproved by the 

17 Secretary solely because the Secretary 

18 lacks the funds necessary to make the loan 

19 or guarantee shall not be disapproved but 

20 shall be placed in pending status. 

21 ‘‘(ii) RECONSIDERATION.—The Sec22 retary shall retain each pending application 

23 and reconsider the application beginning 

24 on the date that sufficient funds become 

25 available. 


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1 ‘‘(iii) NOTIFICATION.—Not later than 

2 60 days after funds become available re3 garding each pending application, the Sec4 retary shall notify the applicant of the ap5 proval or disapproval of funding for the 

6 application. 

7 ‘‘(4) APPROVALS ON APPEAL.—If an application 

8 for a loan or loan guarantee under this subtitle is 

9 disapproved by the Secretary, but that action is sub10 sequently reversed or revised as the result of an ap11 peal within the Department or to the courts of the 

12 United States and the application is returned to the 

13 Secretary for further consideration, the Secretary 

14 shall act on the application and provide the appli15 cant with notice of the action not later than 15 days 

16 after the date of return of the application to the 

17 Secretary. 

18 ‘‘(5) PROVISION OF PROCEEDS.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (B), if an application for a guar21 anteed loan under this subtitle is approved by 

22 the Secretary, the Secretary shall provide the 

23 loan proceeds to the applicant not later than 15 

24 days (or such longer period as the applicant 


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1 may approve) after the application for the loan 

2 is approved by the Secretary. 

3 ‘‘(B) LACK OF FUNDS.—If the Secretary is 

4 unable to provide the loan proceeds to the ap5 plicant during the 15-day period described in 

6 subparagraph (A) because sufficient funds are 

7 not available to the Secretary for that purpose, 

8 the Secretary shall provide the loan proceeds to 

9 the applicant as soon as practicable (but in no 

10 event later than 15 days unless the applicant 

11 agrees to a longer period) after sufficient funds 

12 for that purpose become available to the Sec13 retary. 

14 ‘‘SEC. 3407. GRADUATION OF BORROWERS. 

15 ‘‘(a) GRADUATION OF SEASONED DIRECT LOAN

16 BORROWERS TO THE LOAN GUARANTEE PROGRAM.— 

17 ‘‘(1) REVIEW OF LOANS.— 

18 ‘‘(A) IN GENERAL.—The Secretary, or a 

19 contracting third party, shall annually review 

20 under section 3420 the loans of each seasoned 

21 direct loan borrower. 

22 ‘‘(B) ASSISTANCE.—If, based on the re23 view, it is determined that a borrower would be 

24 able to obtain a loan, guaranteed by the Sec25 retary, from a commercial or cooperative lender 


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1 at reasonable rates and terms for loans for 

2 similar purposes and periods of time, the Sec3 retary shall assist the borrower in applying for 

4 the commercial or cooperative loan. 

5 ‘‘(2) PROSPECTUS.— 

6 ‘‘(A) IN GENERAL.—In accordance with 

7 section 3422, the Secretary shall prepare a pro8 spectus on each seasoned direct loan borrower 

9 determined eligible to obtain a guaranteed loan. 

10 ‘‘(B) REQUIREMENTS.—The prospectus 

11 shall contain a description of the amounts of 

12 the loan guarantee and interest assistance that 

13 the Secretary will provide to the seasoned direct 

14 loan borrower to enable the seasoned direct loan 

15 borrower to carry out a financially viable farm16 ing plan if a guaranteed loan is made. 

17 ‘‘(3) VERIFICATION.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 provide a prospectus of a seasoned direct loan 

20 borrower to each approved lender whose lending 

21 area includes the location of the seasoned direct 

22 loan borrower. 

23 ‘‘(B) NOTIFICATION.—The Secretary shall 

24 notify each borrower of a loan that a prospectus 


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1 has been provided to a lender under subpara2 graph (A). 

3 ‘‘(C) CREDIT EXTENDED.—If the Sec4 retary receives an offer from an approved lend5 er to extend credit to the seasoned direct loan 

6 borrower under terms and conditions contained 

7 in the prospectus, the seasoned direct loan bor8 rower shall not be eligible for a loan from the 

9 Secretary under chapter 1 or 2, except as other10 wise provided in this section. 

11 ‘‘(4) INSUFFICIENT ASSISTANCE OR OFFERS.— 

12 If the Secretary is unable to provide loan guarantees 

13 and, if necessary, interest assistance to the seasoned 

14 direct loan borrower under this section in amounts 

15 sufficient to enable the seasoned direct loan bor16 rower to borrow from commercial sources the 

17 amount required to carry out a financially viable 

18 farming plan, or if the Secretary does not receive an 

19 offer from an approved lender to extend credit to a 

20 seasoned direct loan borrower under the terms and 

21 conditions contained in the prospectus, the Secretary 

22 shall make a loan to the seasoned direct loan bor23 rower under chapter 1 or 2, whichever is applicable. 

24 ‘‘(5) INTEREST RATE REDUCTIONS.—To the ex25 tent necessary for the borrower to obtain a loan, 


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1 guaranteed by the Secretary, from a commercial or 

2 cooperative lender, the Secretary shall provide inter3 est rate reductions as provided for under section 

4 3413. 

5 ‘‘(b) TRANSITION TO PRIVATE COMMERCIAL OR

6 OTHER SOURCES OF CREDIT.— 

7 ‘‘(1) IN GENERAL.—In making an operating or 

8 ownership loan, the Secretary shall establish a plan 

9 and promulgate regulations (including performance 

10 criteria) that promote the goal of transitioning bor11 rowers to private commercial credit and other 

12 sources of credit in the shortest period of time prac13 ticable. 

14 ‘‘(2) COORDINATION.—In carrying out this sec15 tion, the Secretary shall integrate and coordinate the 

16 transition policy described in subsection (a) with— 

17 ‘‘(A) the borrower training program estab18 lished by section 3419; 

19 ‘‘(B) the loan assessment process estab20 lished by section 3420; 

21 ‘‘(C) the supervised credit requirement es22 tablished by section 3421; 

23 ‘‘(D) the market placement program estab24 lished by section 3422; and 


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1 ‘‘(E) other appropriate programs and au2 thorities, as determined by the Secretary. 

3 ‘‘(c) GRADUATION OF BORROWERS WITH OPERATING

4 LOANS OR GUARANTEES TO PRIVATE COMMERCIAL

5 CREDIT.—The Secretary shall establish a plan, in coordi6 nation with activities under sections 3419 through 3422, 

7 to encourage each borrower with an outstanding loan 

8 under this chapter, or with respect to whom there is an 

9 outstanding guarantee under this chapter, to graduate to 

10 private commercial or other sources of credit. 

11 ‘‘SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING. 

12 ‘‘In carrying out this subtitle, the Secretary may— 

13 ‘‘(1) provide voluntary debt adjustment assist14 ance between— 

15 ‘‘(A) farmers; and 

16 ‘‘(B) the creditors of the farmers; 

17 ‘‘(2) cooperate with State, territorial, and local 

18 agencies and committees engaged in the debt adjust19 ment; and 

20 ‘‘(3) give credit counseling. 

21 ‘‘SEC. 3409. SECURITY SERVICING. 

22 ‘‘(a) SALE OF PROPERTY.— 

23 ‘‘(1) IN GENERAL.—Subject to this subsection 

24 and subsection (e)(1), the Secretary shall offer to 

25 sell real property that is acquired by the Secretary 


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1 under this subtitle using the following order and 

2 method of sale: 

3 ‘‘(A) ADVERTISEMENT.—Not later than 15 

4 days after acquiring real property, the Sec5 retary shall publicly advertise the property for 

6 sale. 

7 ‘‘(B) QUALIFIED BEGINNING FARMER.— 

8 ‘‘(i) IN GENERAL.—Not later than 

9 135 days after acquiring real property, the 

10 Secretary shall offer to sell the property to 

11 a qualified beginning farmer or a socially 

12 disadvantaged farmer at current market 

13 value based on a current appraisal. 

14 ‘‘(ii) RANDOM SELECTION.—If more 

15 than 1 qualified beginning farmer or so16 cially disadvantaged farmer offers to pur17 chase the property, the Secretary shall se18 lect between the qualified applicants on a 

19 random basis. 

20 ‘‘(iii) APPEAL OF RANDOM SELEC21 TION.—A random selection or denial by 

22 the Secretary of a qualified beginning 

23 farmer or a socially disadvantaged farmer 

24 for farm inventory property under this 


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1 subparagraph shall be final and not admin2 istratively appealable. 

3 ‘‘(C) PUBLIC SALE.—If no acceptable offer 

4 is received from a qualified beginning farmer or 

5 a socially disadvantaged farmer under subpara6 graph (B) not later than 135 days after acquir7 ing the real property, the Secretary shall, not 

8 later than 30 days after the 135-day period, sell 

9 the property after public notice at a public sale, 

10 and, if no acceptable bid is received, by nego11 tiated sale, at the best price obtainable. 

12 ‘‘(2) INTEREST.— 

13 ‘‘(A) IN GENERAL.—Subject to subpara14 graph (B), any conveyance of real property 

15 under this subsection shall include all of the in16 terest of the United States in the property, in17 cluding mineral rights. 

18 ‘‘(B) CONSERVATION.—The Secretary may 

19 for conservation purposes grant or sell an ease20 ment, restriction, development right, or similar 

21 legal right to real property to a State, a polit22 ical subdivision of a State, or a private non23 profit organization separately from the under24 lying fee or other rights to the property owned 

25 by the United States. 


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1 ‘‘(3) OTHER LAW.—Subtitle I of title 40, 

2 United States Code, and title III of the Federal 

3 Property and Administrative Services Act of 1949 

4 (41 U.S.C. 251 et seq.) shall not apply to any exer5 cise of authority under this subtitle. 

6 ‘‘(4) LEASE OF PROPERTY.— 

7 ‘‘(A) IN GENERAL.—Subject to subpara8 graph (B), the Secretary may not lease any real 

9 property acquired under this subtitle. 

10 ‘‘(B) EXCEPTION.— 

11 ‘‘(i) QUALIFIED BEGINNING FARMER

12 OR SOCIALLY DISADVANTAGED FARMER.— 

13 The Secretary may lease or contract to sell 

14 to a qualified beginning farmer or a so15 cially disadvantaged farmer a farm ac16 quired by the Secretary under this subtitle 

17 if the qualified beginning farmer qualifies 

18 for a credit sale or direct farm ownership 

19 loan under chapter 1 but credit sale au20 thority for loans or direct farm ownership 

21 loan funds, respectively, are not available. 

22 ‘‘(ii) TERM.—The term of a lease or 

23 contract to sell to a qualified beginning 

24 farmer or a socially disadvantaged farmer 


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1 under clause (i) shall be until the earlier 

2 of— 

3 ‘‘(I) the date that is 18 months 

4 after the date of the lease or sale; or 

5 ‘‘(II) the date that direct farm 

6 ownership loan funds or credit sale 

7 authority for loans becomes available 

8 to the qualified beginning farmer or 

9 socially disadvantaged farmer. 

10 ‘‘(iii) INCOME-PRODUCING CAPA11 BILITY.—In determining the rental rate on 

12 real property leased under this subpara13 graph, the Secretary shall consider the in14 come-producing capability of the property 

15 during the term that the property is 

16 leased. 

17 ‘‘(5) EXPEDITED DETERMINATION.— 

18 ‘‘(A) IN GENERAL.—On the request of an 

19 applicant, not later than 30 days after denial of 

20 the application, the appropriate State director 

21 shall provide an expedited review and deter22 mination of whether the applicant is a qualified 

23 beginning farmer or a socially disadvantaged 

24 farmer for the purpose of acquiring farm inven25 tory property. 


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1 ‘‘(B) APPEAL.—The determination of a 

2 State Director under subparagraph (A) shall be 

3 final and not administratively appealable. 

4 ‘‘(C) EFFECTS OF DETERMINATIONS.— 

5 ‘‘(i) IN GENERAL.—The Secretary 

6 shall maintain statistical data on the num7 ber and results of determinations made 

8 under subparagraph (A) and the effect of 

9 the determinations on— 

10 ‘‘(I) selling farm inventory prop11 erty to qualified beginning farmers or 

12 socially disadvantaged farmers; and 

13 ‘‘(II) disposing of real property 

14 in inventory. 

15 ‘‘(ii) NOTIFICATION.—The Secretary 

16 shall notify the Committee on Agriculture 

17 of the House of Representatives and the 

18 Committee on Agriculture, Nutrition, and 

19 Forestry of the Senate if the Secretary de20 termines that the review process under 

21 subparagraph (A) is adversely affecting the 

22 selling of farm inventory property to quali23 fied beginning farmers or socially dis24 advantaged farmers or the disposing of 

25 real property in inventory. 


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1 ‘‘(b) ROAD AND UTILITY EASEMENTS AND CON2 DEMNATIONS.—In the case of any real property adminis3 tered under this subtitle, the Secretary may grant or sell 

4 easements or rights-of-way for roads, utilities, and other 

5 appurtenances that are not inconsistent with the public 

6 interest. 

7 ‘‘(c) SALE OR LEASE OF FARMLAND.— 

8 ‘‘(1) DISPOSITION OF REAL PROPERTY ON IN9 DIAN RESERVATIONS.— 

10 ‘‘(A) DEFINITION OF INDIAN RESERVA11 TION.—In this paragraph, the term ‘Indian res12 ervation’ means— 

13 ‘‘(i) all land located within the limits 

14 of any Indian reservation under the juris15 diction of the United States, notwith16 standing the issuance of any patent, and, 

17 including any right-of-way running through 

18 the reservation; 

19 ‘‘(ii) trust or restricted land located 

20 within the boundaries of a former reserva21 tion of an Indian tribe in the State of 

22 Oklahoma; or 

23 ‘‘(iii) all Indian allotments the Indian 

24 titles to which have not been extinguished 


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1 if the allotments are subject to the juris2 diction of an Indian tribe. 

3 ‘‘(B) DISPOSITION.—Except as provided in 

4 paragraph (3), the Secretary shall dispose of or 

5 administer the property as provided in this 

6 paragraph when— 

7 ‘‘(i) the Secretary acquires property 

8 under this subtitle that is located within an 

9 Indian reservation; and 

10 ‘‘(ii) the borrower-owner is the Indian 

11 tribe that has jurisdiction over the reserva12 tion in which the real property is located 

13 or the borrower-owner is a member of the 

14 Indian tribe; 

15 ‘‘(C) PRIORITY.—Not later than 90 days 

16 after acquiring the property, the Secretary shall 

17 afford an opportunity to purchase or lease the 

18 real property in accordance with the order of 

19 priority established under subparagraph (D) to 

20 the Indian tribe having jurisdiction over the In21 dian reservation within which the real property 

22 is located or, if no order of priority is estab23 lished by the Indian tribe under subparagraph 

24 (D), in the following order: 


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1 ‘‘(i) An Indian member of the Indian 

2 tribe that has jurisdiction over the reserva3 tion within which the real property is lo4 cated. 

5 ‘‘(ii) An Indian corporate entity. 

6 ‘‘(iii) The Indian tribe. 

7 ‘‘(D) REVISION OF PRIORITY AND RE8 STRICTION OF ELIGIBILITY.—The governing 

9 body of any Indian tribe having jurisdiction 

10 over an Indian reservation may revise the order 

11 of priority provided in subparagraph (C) under 

12 which land located within the reservation shall 

13 be offered for purchase or lease by the Sec14 retary under subparagraph (C) and may re15 strict the eligibility for the purchase or lease 

16 to— 

17 ‘‘(i) persons who are members of the 

18 Indian tribe; 

19 ‘‘(ii) Indian corporate entities that are 

20 authorized by the Indian tribe to lease or 

21 purchase land within the boundaries of the 

22 reservation; or 

23 ‘‘(iii) the Indian tribe itself. 

24 ‘‘(E) TRANSFER OF PROPERTY TO SEC25 RETARY OF THE INTERIOR.— 


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1 ‘‘(i) IN GENERAL.—If real property 

2 described in subparagraph (B) is not pur3 chased or leased under subparagraph (C) 

4 and the Indian tribe having jurisdiction 

5 over the reservation within which the real 

6 property is located is unable to purchase or 

7 lease the real property, the Secretary shall 

8 transfer the real property to the Secretary 

9 of the Interior who shall administer the 

10 real property as if the real property were 

11 held in trust by the United States for the 

12 benefit of the Indian tribe. 

13 ‘‘(ii) USE OF RENTAL INCOME.—From 

14 the rental income derived from the lease of 

15 the transferred real property, and all other 

16 income generated from the transferred real 

17 property, the Secretary of the Interior 

18 shall pay the State, county, municipal, or 

19 other local taxes to which the transferred 

20 real property was subject at the time of ac21 quisition by the Secretary, until the earlier 

22 of— 

23 ‘‘(I) the expiration of the 4-year 

24 period beginning on the date on which 

25 the real property is so transferred; or 


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1 ‘‘(II) such time as the land is 

2 transferred into trust pursuant to 

3 subparagraph (H). 

4 ‘‘(F) RESPONSIBILITIES OF SECRE5 TARIES.—If any real property is transferred to 

6 the Secretary of the Interior under subpara7 graph (E)— 

8 ‘‘(i) the Secretary of Agriculture shall 

9 have no further responsibility under this 

10 subtitle for— 

11 ‘‘(I) collection of any amounts 

12 with regard to the farm program loan 

13 that had been secured by the real 

14 property; 

15 ‘‘(II) any lien arising out of the 

16 loan transaction; or 

17 ‘‘(III) repayment of any amount 

18 with regard to the loan transaction or 

19 lien to the Treasury of the United 

20 States; and 

21 ‘‘(ii) the Secretary of the Interior 

22 shall succeed to all right, title, and interest 

23 of the Secretary of Agriculture in the real 

24 estate arising from the farm program loan 

25 transaction, including the obligation to 


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1 remit to the Treasury of the United States, 

2 in repayment of the original loan, the 

3 amounts provided in subparagraph (G). 

4 ‘‘(G) USE OF INCOME.—After the payment 

5 of any taxes that are required to be paid under 

6 subparagraph (E)(ii), all remaining rental in7 come derived from the lease of the real property 

8 transferred to the Secretary of the Interior 

9 under subparagraph (E)(i), and all other in10 come generated from the real property trans11 ferred to the Secretary of the Interior under 

12 that subparagraph, shall be deposited as mis13 cellaneous receipts in the Treasury of the 

14 United States until the amount deposited is 

15 equal to the lesser of— 

16 ‘‘(i) the amount of the outstanding 

17 lien of the United States against the real 

18 property, as of the date the real property 

19 was acquired by the Secretary; 

20 ‘‘(ii) the fair market value of the real 

21 property, as of the date of the transfer to 

22 the Secretary of the Interior; or 

23 ‘‘(iii) the capitalized value of the real 

24 property, as of the date of the transfer to 

25 the Secretary of the Interior. 


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1 ‘‘(H) HOLDING OF TITLE IN TRUST.—If 

2 the total amount that is required to be depos3 ited under subparagraph (G) with respect to 

4 any real property has been deposited into the 

5 Treasury of the United States, title to the real 

6 property shall be held in trust by the United 

7 States for the benefit of the Indian tribe having 

8 jurisdiction over the Indian reservation within 

9 which the real property is located. 

10 ‘‘(I) PAYMENT OF REMAINING LIEN OR

11 FAIR MARKET VALUE OF PROPERTY.— 

12 ‘‘(i) IN GENERAL.—Notwithstanding 

13 any other subparagraph of this paragraph, 

14 the Indian tribe having jurisdiction over 

15 the Indian reservation within which the 

16 real property described in subparagraph 

17 (B) is located may, at any time after the 

18 real property has been transferred to the 

19 Secretary of the Interior under subpara20 graph (E), offer to pay the remaining 

21 amount on the lien or the fair market 

22 value of the real property, whichever is 

23 less. 

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1 erty shall be held by the United States in 

2 trust for the tribe and the trust or re3 stricted land that has been acquired by the 

4 Secretary under foreclosure or voluntary 

5 transfer under a loan made or insured 

6 under this subtitle and transferred to an 

7 Indian person, entity, or tribe under this 

8 paragraph shall be considered to have 

9 never lost trust or restricted status. 

10 ‘‘(J) APPLICABILITY.— 

11 ‘‘(i) IN GENERAL.—This paragraph 

12 shall apply to all land in the land inventory 

13 established under this subtitle (as of No14 vember 28, 1990) that was (immediately 

15 prior to the date) owned by an Indian bor16 rower-owner described in subparagraph 

17 (B) and that is situated within an Indian 

18 reservation, regardless of the date of fore19 closure or acquisition by the Secretary. 

20 ‘‘(ii) OPPORTUNITY TO PURCHASE OR

21 LEASE.—The Secretary shall afford an op22 portunity to an Indian person, entity, or 

23 tribe to purchase or lease the real property 

24 as provided in subparagraph (C). 


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1 ‘‘(iii) TRANSFER.—If the right is not 

2 exercised or no expression of intent to ex3 ercise the right is received within 180 days 

4 after November 28, 1990, the Secretary 

5 shall transfer the real property to the Sec6 retary of the Interior as provided in sub7 paragraph (E). 

8 ‘‘(2) ADDITIONAL RIGHTS.—The rights pro9 vided in this subsection shall be in addition to any 

10 right of first refusal under the law of the State in 

11 which the property is located. 

12 ‘‘(3) DISPOSITION OF REAL PROPERTY ON IN13 DIAN RESERVATIONS AFTER PROCEDURES EX14 HAUSTED.— 

15 ‘‘(A) IN GENERAL.—The Secretary shall 

16 dispose of or administer real property described 

17 in paragraph (1)(B) only as provided in para18 graph (1), as modified by this paragraph, if— 

19 ‘‘(i) the real property described in 

20 paragraph (1)(B) is located within an In21 dian reservation; 

22 ‘‘(ii) the borrower-owner is an Indian 

23 tribe that has jurisdiction over the reserva24 tion in which the real property is located 


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1 or the borrower-owner is a member of an 

2 Indian tribe; 

3 ‘‘(iii) the borrower-owner has obtained 

4 a loan made or guaranteed under this sub5 title; and 

6 ‘‘(iv) the borrower-owner and the Sec7 retary have exhausted all of the procedures 

8 provided for in this subtitle to permit a 

9 borrower-owner to retain title to the real 

10 property, so that it is necessary for the 

11 borrower-owner to relinquish title. 

12 ‘‘(B) NOTICE OF RIGHT TO CONVEY PROP13 ERTY.—The Secretary shall provide the bor14 rower-owner of real property that is described 

15 in subparagraph (A) with written notice of— 

16 ‘‘(i) the right of the borrower-owner to 

17 voluntarily convey the real property to the 

18 Secretary; and 

19 ‘‘(ii) the fact that real property so 

20 conveyed will be placed in the inventory of 

21 the Secretary. 

22 ‘‘(C) NOTICE OF RIGHTS AND PROTEC23 TIONS.—The Secretary shall provide the bor24 rower-owner of the real property with written 

25 notice of the rights and protections provided 


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1 under this subtitle to the borrower-owner, and 

2 the Indian tribe that has jurisdiction over the 

3 reservation in which the real property is lo4 cated, from foreclosure or liquidation of the real 

5 property, including written notice— 

6 ‘‘(i) of paragraph (1), this paragraph, 

7 and subsection (e)(3); 

8 ‘‘(ii) if the borrower-owner does not 

9 voluntarily convey the real property to the 

10 Secretary, that— 

11 ‘‘(I) the Secretary may foreclose 

12 on the property; 

13 ‘‘(II) in the event of foreclosure, 

14 the property will be offered for sale; 

15 ‘‘(III) the Secretary shall offer a 

16 bid for the property that is equal to 

17 the fair market value of the property 

18 or the outstanding principal and inter19 est of the loan, whichever is higher; 

20 ‘‘(IV) the property may be pur21 chased by another party; and 

22 ‘‘(V) if the property is purchased 

23 by another party, the property will not 

24 be placed in the inventory of the Sec25 retary and the borrower-owner will 


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1 forfeit the rights and protections pro2 vided under this subtitle; and 

3 ‘‘(iii) of the opportunity of the bor4 rower-owner to consult with the Indian 

5 tribe that has jurisdiction over the reserva6 tion in which the real property is located 

7 or counsel to determine if State or tribal 

8 law provides rights and protections that 

9 are more beneficial than the rights and 

10 protections provided the borrower-owner 

11 under this subtitle. 

12 ‘‘(D) ACCEPTANCE OF VOLUNTARY CON13 VEYANCE.— 

14 ‘‘(i) IN GENERAL.—Except as pro15 vided in clause (ii), the Secretary shall ac16 cept the voluntary conveyance of real prop17 erty described in subparagraph (A). 

18 ‘‘(ii) HAZARDOUS SUBSTANCES.—If a 

19 hazardous substance (as defined in section 

20 101(14) of the Comprehensive Environ21 mental Response, Compensation, and Li22 ability Act of 1980 (42 U.S.C. 9601(14))) 

23 is located on the property and the Sec24 retary takes remedial action to protect 

25 human health or the environment if the 


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1 property is taken into inventory, the Sec2 retary shall accept the voluntary convey3 ance of the property only if the Secretary 

4 determines that the conveyance is in the 

5 best interests of the Federal Government. 

6 ‘‘(E) FORECLOSURE PROCEDURES.— 

7 ‘‘(i) NOTICE TO BORROWER.—If an 

8 Indian borrower-owner does not voluntarily 

9 convey to the Secretary real property de10 scribed in subparagraph (A), not less than 

11 30 days before a foreclosure sale of the 

12 property, the Secretary shall provide the 

13 Indian borrower-owner with the option 

14 of— 

15 ‘‘(I) requiring the Secretary to 

16 assign the loan and security instru17 ments to the Secretary of the Interior, 

18 if the Secretary of the Interior agrees 

19 to an assignment releasing the Sec20 retary of Agriculture from all further 

21 responsibility for collection of any 

22 amounts with regard to the loan se23 cured by the real property; or 

24 ‘‘(II) requiring the Secretary to 

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1 ments to the tribe having jurisdiction 

2 over the reservation in which the real 

3 property is located, if the tribe agrees 

4 to assume the loan under the terms 

5 specified in clause (iii). 

6 ‘‘(ii) NOTICE TO TRIBE.—If an Indian 

7 borrower-owner does not voluntarily convey 

8 to the Secretary real property described in 

9 subparagraph (A), not less than 30 days 

10 before a foreclosure sale of the property, 

11 the Secretary shall provide written notice 

12 to the Indian tribe that has jurisdiction 

13 over the reservation in which the real prop14 erty is located of— 

15 ‘‘(I) the sale; 

16 ‘‘(II) the fair market value of the 

17 property; and 

18 ‘‘(III) the requirements of this 

19 paragraph. 

20 ‘‘(iii) ASSUMED LOANS.—If an Indian 

21 tribe assumes a loan under clause (i)— 

22 ‘‘(I) the Secretary shall not fore23 close the loan because of any default 

24 that occurred prior to the date of the 

25 assumption; 


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1 ‘‘(II) the loan shall be for the 

2 lesser of the outstanding principal and 

3 interest of the loan or the fair market 

4 value of the property; and 

5 ‘‘(III) the loan shall be treated as 

6 though the loan was made under Pub7 lic Law 91–229 (25 U.S.C. 488 et 

8 seq.). 

9 ‘‘(F) AMOUNT OF BID BY SECRETARY.— 

10 ‘‘(i) IN GENERAL.—Except as pro11 vided in clause (ii), at a foreclosure sale of 

12 real property described in subparagraph 

13 (A), the Secretary shall offer a bid for the 

14 property that is equal to the higher of— 

15 ‘‘(I) the fair market value of the 

16 property; or 

17 ‘‘(II) the outstanding principal 

18 and interest on the loan. 

19 ‘‘(ii) HAZARDOUS SUBSTANCES.—If a 

20 hazardous substance (as defined in section 

21 101(14) of the Comprehensive Environ22 mental Response, Compensation, and Li23 ability Act of 1980 (42 U.S.C. 9601(14))) 

24 is located on the property and the Sec25 retary takes remedial action to protect 


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1 human health or the environment if the 

2 property is taken into inventory, clause (i) 

3 shall apply only if the Secretary determines 

4 that bidding is in the best interests of the 

5 Federal Government. 

6 ‘‘(4) DETRIMENTAL EFFECT ON VALUE OF

7 AREA FARMLAND.—The Secretary shall not offer for 

8 sale or sell any farmland referred to in paragraphs 

9 (1) through (3) if placing the farmland on the mar10 ket will have a detrimental effect on the value of 

11 farmland in the area. 

12 ‘‘(5) INSTALLMENT SALES AND MULTIPLE OP13 ERATORS.— 

14 ‘‘(A) IN GENERAL.—The Secretary may 

15 sell farmland administered under this subtitle 

16 through an installment sale or similar device 

17 that contains such terms as the Secretary con18 siders necessary to protect the investment of 

19 the Federal Government in the land. 

20 ‘‘(B) SALE OF CONTRACT.—The Secretary 

21 may subsequently sell any contract entered into 

22 to carry out subparagraph (A). 

23 ‘‘(6) HIGHLY ERODIBLE LAND.—In the case of 

24 farmland administered under this subtitle that is 

25 highly erodible land (as defined in section 1201 of 


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1 the Food Security Act of 1985 (16 U.S.C. 3801)), 

2 the Secretary may require the use of specified con3 servation practices on the land as a condition of the 

4 sale or lease of the land. 

5 ‘‘(7) NO EFFECT ON ACREAGE ALLOTMENTS, 

6 MARKETING QUOTAS, OR ACREAGE BASES.—Not7 withstanding any other law, compliance by the Sec8 retary with this subsection shall not cause any acre9 age allotment, marketing quota, or acreage base as10 signed to the property to lapse, terminate, be re11 duced, or otherwise be adversely affected. 

12 ‘‘(8) NO PREEMPTION OF STATE LAW.—If a 

13 conflict exists between any provision of this sub14 section and any provision of the law of any State 

15 providing a right of first refusal to the owner of 

16 farmland or the operator of a farm before the sale 

17 or lease of land to any other person, the provision 

18 of State law shall prevail. 

19 ‘‘(d) RELEASE OF NORMAL INCOME SECURITY.— 

20 ‘‘(1) DEFINITION OF NORMAL INCOME SECU21 RITY.—In this subsection: 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 subparagraph (B), the term ‘normal income se24 curity’ means all security not considered basic 

25 security, including crops, livestock, poultry 


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1 products, Farm Service Agency payments and 

2 Commodity Credit Corporation payments, and 

3 other property covered by Farm Service Agency 

4 liens that is sold in conjunction with the oper5 ation of a farm or other business. 

6 ‘‘(B) EXCEPTIONS.—The term ‘normal in7 come security’ does not include any equipment 

8 (including fixtures in States that have adopted 

9 the Uniform Commercial Code), or foundation 

10 herd or flock, that is— 

11 ‘‘(i) the basis of the farming or other 

12 operation; and 

13 ‘‘(ii) the basic security for a farmer 

14 program loan. 

15 ‘‘(2) GENERAL RELEASE.—The Secretary shall 

16 release from the normal income security provided for 

17 a loan an amount sufficient to pay for the essential 

18 household and farm operating expenses of the bor19 rower, until such time as the Secretary accelerates 

20 the loan. 

21 ‘‘(3) NOTICE OF REPORTING REQUIREMENTS

22 AND RIGHTS.—If a borrower is required to plan for 

23 or to report as to how proceeds from the sale of col24 lateral property will be used, the Secretary shall no25 tify the borrower of— 


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1 ‘‘(A) the requirement; and 

2 ‘‘(B) the right to the release of funds 

3 under this subsection and the means by which 

4 a request for the funds may be made. 

5 ‘‘(e) EASEMENTS ON INVENTORIED PROPERTY.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

7 in the disposal of real property under this section, 

8 the Secretary shall establish perpetual wetland con9 servation easements to protect and restore wetland 

10 or converted wetland that exists on inventoried prop11 erty. 

12 ‘‘(2) LIMITATION.—The Secretary shall not es13 tablish a wetland conservation easement on an 

14 inventoried property that— 

15 ‘‘(A) was cropland on the date the prop16 erty entered the inventory of the Secretary; or 

17 ‘‘(B) was used for farming at any time 

18 during the period— 

19 ‘‘(i) beginning on the date that is 5 

20 years before the property entered the in21 ventory of the Secretary; and 

22 ‘‘(ii) ending on the date on which the 

23 property entered the inventory of the Sec24 retary. 


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1 ‘‘(3) NOTIFICATION.—The Secretary shall pro2 vide prior written notification to a borrower consid3 ering homestead retention that a wetland conserva4 tion easement may be placed on land for which the 

5 borrower is negotiating a lease option. 

6 ‘‘(4) APPRAISED VALUE.—The appraised value 

7 of the farm shall reflect the value of the land due 

8 to the placement of wetland conservation easements. 

9 ‘‘SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES. 

10 ‘‘(a) CONTRACTS ON LOAN SECURITY PROP11 ERTIES.—Subject to subsection (b), the Secretary may 

12 enter into a contract related to real property for conserva13 tion, recreation, or wildlife purposes. 

14 ‘‘(b) LIMITATIONS.—The Secretary may enter into a 

15 contract under subsection (a) if— 

16 ‘‘(1) the property is wetland, upland, or highly 

17 erodible land; 

18 ‘‘(2) the property is determined by the Sec19 retary to be suitable for the purpose involved; and 

20 ‘‘(3)(A) the property secures a loan made under 

21 a law administered and held by the Secretary; and 

22 ‘‘(B) the contract would better enable a quali23 fied borrower to repay the loan in a timely manner, 

24 as determined by the Secretary. 


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1 ‘‘(c) TERMS AND CONDITIONS.—The terms and con2 ditions specified in a contract under subsection (a) shall— 

3 ‘‘(1) specify the purposes for which the real 

4 property may be used; 

5 ‘‘(2) identify any conservation measure to be 

6 taken, and any recreational and wildlife use to be al7 lowed, with respect to the real property; and 

8 ‘‘(3) require the owner to permit the Secretary, 

9 and any person or governmental entity designated by 

10 the Secretary, to have access to the real property for 

11 the purpose of monitoring compliance with the con12 tract. 

13 ‘‘(d) REDUCTION OR FORGIVENESS OF DEBT.— 

14 ‘‘(1) IN GENERAL.—Subject to this section, the 

15 Secretary may reduce or forgive the outstanding 

16 debt of a borrower— 

17 ‘‘(A) in the case of a borrower to whom the 

18 Secretary has made an outstanding loan under 

19 a law administered by the Secretary, by can20 celing that part of the aggregate amount of the 

21 outstanding loan that bears the same ratio to 

22 the aggregate amount as— 

23 ‘‘(i) the number of acres of the real 

24 property of the borrower that are subject 

25 to the contract; bears to 


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1 ‘‘(ii) the aggregate number of acres 

2 securing the loan; or 

3 ‘‘(B) in any other case, by treating as pre4 paid that part of the principal amount of a new 

5 loan to the borrower issued and held by the 

6 Secretary under a law administered by the Sec7 retary that bears the same ratio to the principal 

8 amount as— 

9 ‘‘(i) the number of acres of the real 

10 property of the borrower that are subject 

11 to the contract; bears to 

12 ‘‘(ii) the aggregate number of acres 

13 securing the new loan. 

14 ‘‘(2) MAXIMUM CANCELED AMOUNT.—The 

15 amount canceled or treated as prepaid under para16 graph (1) shall not exceed— 

17 ‘‘(A) in the case of a delinquent loan, the 

18 greater of— 

19 ‘‘(i) the value of the land on which the 

20 contract is entered into; or 

21 ‘‘(ii) the difference between— 

22 ‘‘(I) the amount of the out23 standing loan secured by the land; 

24 and 

25 ‘‘(II) the value of the land; or 


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1 ‘‘(B) in the case of a nondelinquent loan, 

2 33 percent of the amount of the loan secured 

3 by the land. 

4 ‘‘(e) CONSULTATION WITH FISH AND WILDLIFE

5 SERVICE.—If the Secretary uses the authority provided by 

6 this section, the Secretary shall consult with the Director 

7 of the Fish and Wildlife Service for the purposes of— 

8 ‘‘(1) selecting real property in which the Sec9 retary may enter into a contract under this section; 

10 ‘‘(2) formulating the terms and conditions of 

11 the contract; and 

12 ‘‘(3) enforcing the contract. 

13 ‘‘(f) ENFORCEMENT.—The Secretary, and any person 

14 or governmental entity (including an agency of the Fed15 eral Government) designated by the Secretary, may en16 force a contract entered into by the Secretary under this 

17 section. 

18 ‘‘SEC. 3411. DEBT RESTRUCTURING AND LOAN SERVICING. 

19 ‘‘(a) IN GENERAL.—The Secretary shall modify a de20 linquent farmer program loan made under this subtitle, 

21 or purchased from the lender or the Federal Deposit In22 surance Corporation under section 3902, to the maximum 

23 extent practicable— 

24 ‘‘(1) to avoid a loss to the Secretary on the 

25 loan, with priority consideration being placed on 


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1 writing-down the loan principal and interest (subject 

2 to subsections (d) and (e)), and debt set-aside (sub3 ject to subsection (e)), to facilitate keeping the bor4 rower on the farm, or otherwise through the use of 

5 primary loan service programs under this section; 

6 and 

7 ‘‘(2) to ensure that a borrower is able to con8 tinue farming operations. 

9 ‘‘(b) ELIGIBILITY.—To be eligible to obtain assist10 ance under subsection (a)— 

11 ‘‘(1) the delinquency shall be due to a cir12 cumstance beyond the control of the borrower, as de13 fined in regulations issued by the Secretary, except 

14 that the regulations shall require that, if the value 

15 of the assets calculated under subsection 

16 (c)(2)(A)(ii) that may be realized through liquida17 tion or other methods would produce enough income 

18 to make the delinquent loan current, the borrower 

19 shall not be eligible for assistance under subsection 

20 (a); 

21 ‘‘(2) the borrower shall have acted in good faith 

22 with the Secretary in connection with the loan as de23 fined in regulations issued by the Secretary; 

24 ‘‘(3) the borrower shall present a preliminary 

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1 sumptions that demonstrate that the borrower will 

2 be able— 

3 ‘‘(A) to meet the necessary family living 

4 and farm operating expenses of the borrower; 

5 and 

6 ‘‘(B) to service all debts of the borrower, 

7 including restructured loans; and 

8 ‘‘(4) the loan, if restructured, shall result in a 

9 net recovery to the Federal Government, during the 

10 term of the loan as restructured, that would be more 

11 than or equal to the net recovery to the Federal 

12 Government from an involuntary liquidation or fore13 closure on the property securing the loan. 

14 ‘‘(c) RESTRUCTURING DETERMINATIONS.— 

15 ‘‘(1) DETERMINATION OF NET RECOVERY.—In 

16 determining the net recovery from the involuntary 

17 liquidation of a loan under this section, the Sec18 retary shall calculate— 

19 ‘‘(A) the recovery value of the collateral se20 curing the loan, in accordance with paragraph 

21 (2); and 

22 ‘‘(B) the value of the restructured loan, in 

23 accordance with paragraph (3). 

24 ‘‘(2) RECOVERY VALUE.—For the purpose of 

25 paragraph (1), the recovery value of the collateral 


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1 securing the loan shall be based on the difference be2 tween— 

3 ‘‘(A)(i) the amount of the current ap4 praised value of the interests of the borrower in 

5 the property securing the loan; and 

6 ‘‘(ii) the value of the interests of the bor7 rower in all other assets that are— 

8 ‘‘(I) not essential for necessary family 

9 living expenses; 

10 ‘‘(II) not essential to the operation of 

11 the farm; and 

12 ‘‘(III) not exempt from judgment 

13 creditors or in a bankruptcy action under 

14 Federal or State law; 

15 ‘‘(B) the estimated administrative, attor16 ney, and other expenses associated with the liq17 uidation and disposition of the loan and collat18 eral, including— 

19 ‘‘(i) the payment of prior liens; 

20 ‘‘(ii) taxes and assessments, deprecia21 tion, management costs, the yearly per22 centage decrease or increase in the value of 

23 the property, and lost interest income, each 

24 calculated for the average holding period 

25 for the type of property involved; 


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1 ‘‘(iii) resale expenses, such as repairs, 

2 commissions, and advertising; and 

3 ‘‘(iv) other administrative and attor4 ney costs; and 

5 ‘‘(C) the value, as determined by the Sec6 retary, of any property not included in subpara7 graph (A)(i) if the property is specified in any 

8 security agreement with respect to the loan and 

9 the Secretary determines that the value of the 

10 property should be included for purposes of this 

11 section. 

12 ‘‘(3) VALUE OF THE RESTRUCTURED LOAN.— 

13 ‘‘(A) IN GENERAL.—For the purpose of 

14 paragraph (1), the value of the restructured 

15 loan shall be based on the present value of pay16 ments that the borrower would make to the 

17 Federal Government if the terms of the loan 

18 were modified under any combination of pri19 mary loan service programs to ensure that the 

20 borrower is able to meet the obligations and 

21 continue farming operations. 

22 ‘‘(B) PRESENT VALUE.—For the purpose 

23 of calculating the present value referred to in 

24 subparagraph (A), the Secretary shall use a dis25 count rate of not more than the current rate at 


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1 the time of the calculation of 90-day Treasury 

2 bills. 

3 ‘‘(C) CASH FLOW MARGIN.—For the pur4 pose of assessing under subparagraph (A) the 

5 ability of a borrower to meet debt obligations 

6 and continue farming operations, the Secretary 

7 shall assume that the borrower needs up to 110 

8 percent of the amount indicated for payment of 

9 farm operating expenses, debt service obliga10 tions, and family living expenses. 

11 ‘‘(4) NOTIFICATION.—Not later than 90 days 

12 after receipt of a written request for restructuring 

13 from the borrower, the Secretary shall— 

14 ‘‘(A) make the calculations specified in 

15 paragraphs (2) and (3); 

16 ‘‘(B) notify the borrower in writing of the 

17 results of the calculations; and 

18 ‘‘(C) provide documentation for the cal19 culations. 

20 ‘‘(5) RESTRUCTURING OF LOANS.— 

21 ‘‘(A) IN GENERAL.—If the value of a re22 structured loan is greater than or equal to the 

23 recovery value of the collateral securing the 

24 loan, not later than 45 days after notifying the 

25 borrower under paragraph (4), the Secretary 


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1 shall offer to restructure the loan obligations of 

2 the borrower under this subtitle through pri3 mary loan service programs that would enable 

4 the borrower to meet the obligations (as modi5 fied) under the loan and to continue the farm6 ing operations of the borrower. 

7 ‘‘(B) RESTRUCTURING.—If the borrower 

8 accepts an offer under subparagraph (A), not 

9 later than 45 days after receipt of notice of ac10 ceptance, the Secretary shall restructure the 

11 loan accordingly. 

12 ‘‘(6) TERMINATION OF LOAN OBLIGATIONS.— 

13 The obligations of a borrower to the Secretary under 

14 a loan shall terminate if— 

15 ‘‘(A) the borrower satisfies the require16 ments of paragraphs (1) and (2) of subsection 

17 (b); 

18 ‘‘(B) the value of the restructured loan is 

19 less than the recovery value; and 

20 ‘‘(C) not later than 90 days after receipt 

21 of the notification described in paragraph 

22 (4)(B), the borrower pays (or obtains third23 party financing to pay) the Secretary an 

24 amount equal to the current market value. 

25 ‘‘(7) NEGOTIATION OF APPRAISAL.— 


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1 ‘‘(A) IN GENERAL.—In making a deter2 mination concerning restructuring under this 

3 subsection, the Secretary, at the request of the 

4 borrower, shall enter into negotiations with the 

5 borrower concerning appraisals required under 

6 this subsection. 

7 ‘‘(B) INDEPENDENT APPRAISAL.— 

8 ‘‘(i) IN GENERAL.—If the borrower, 

9 based on a separate current appraisal, ob10 jects to the decision of the Secretary re11 garding an appraisal, the borrower and the 

12 Secretary shall mutually agree, to the ex13 tent practicable, on an independent ap14 praiser who shall conduct another ap15 praisal of the property of the borrower. 

16 ‘‘(ii) VALUE OF FINAL APPRAISAL.— 

17 The average of the 2 appraisals under 

18 clause (i) that are closest in value shall be19 come the final appraisal under this para20 graph. 

21 ‘‘(iii) COST OF APPRAISAL.—The borrower and the Secretary shall each pay 1 22 ⁄2

23 of the cost of any independent appraisal. 

24 ‘‘(d) PRINCIPAL AND INTEREST WRITE-DOWN.— 

25 ‘‘(1) IN GENERAL.— 


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1 ‘‘(A) PRIORITY CONSIDERATION.—In se2 lecting the restructuring alternatives to be used 

3 in the case of a borrower who has requested re4 structuring under this section, the Secretary 

5 shall give priority consideration to the use of a 

6 principal and interest write-down if other credi7 tors of the borrower (other than any creditor 

8 who is fully collateralized) representing a sub9 stantial portion of the total debt of the bor10 rower held by the creditors of the borrower, 

11 agree to participate in the development of the 

12 restructuring plan or agree to participate in a 

13 State mediation program. 

14 ‘‘(B) FAILURE OF CREDITORS TO

15 AGREE.—Failure of creditors to agree to par16 ticipate in the restructuring plan or mediation 

17 program shall not preclude the use of a prin18 cipal and interest write-down by the Secretary 

19 if the Secretary determines that restructuring 

20 results in the least cost to the Secretary. 

21 ‘‘(2) PARTICIPATION OF CREDITORS.—Before 

22 eliminating the option to use debt write-down in the 

23 case of a borrower, the Secretary shall make a rea24 sonable effort to contact the creditors of the bor25 rower, either directly or through the borrower, and 


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1 encourage the creditors to participate with the Sec2 retary in the development of a restructuring plan for 

3 the borrower. 

4 ‘‘(e) SHARED APPRECIATION ARRANGEMENTS.— 

5 ‘‘(1) IN GENERAL.—As a condition of restruc6 turing a loan in accordance with this section, the 

7 borrower of the loan may be required to enter into 

8 a shared appreciation arrangement that requires the 

9 repayment of amounts written off or set aside. 

10 ‘‘(2) TERMS.—A shared appreciation agreement 

11 shall— 

12 ‘‘(A) have a term not to exceed 10 years; 

13 and 

14 ‘‘(B) provide for recapture based on the 

15 difference between the appraised values of the 

16 real security property at the time of restruc17 turing and at the time of recapture. 

18 ‘‘(3) PERCENTAGE OF RECAPTURE.—The 

19 amount of the appreciation to be recaptured by the 

20 Secretary shall be— 

21 ‘‘(A) 75 percent of the appreciation in the 

22 value of the real security property if the recap23 ture occurs not later than 4 years after the date 

24 of restructuring; and 


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1 ‘‘(B) 50 percent if the recapture occurs 

2 during the remainder of the term of the agree3 ment. 

4 ‘‘(4) TIME OF RECAPTURE.—Recapture shall 

5 take place on the date that is the earliest of— 

6 ‘‘(A) the end of the term of the agreement; 

7 ‘‘(B) the conveyance of the real security 

8 property; 

9 ‘‘(C) the repayment of the loans; or 

10 ‘‘(D) the cessation of farming operations 

11 by the borrower. 

12 ‘‘(5) TRANSFER OF TITLE.—Transfer of title to 

13 the spouse of a borrower on the death of the bor14 rower shall not be treated as a conveyance for the 

15 purpose of paragraph (4). 

16 ‘‘(6) NOTICE OF RECAPTURE.—Not later than 

17 12 months before the end of the term of a shared 

18 appreciation arrangement, the Secretary shall notify 

19 the borrower involved of the provisions of the ar20 rangement. 

21 ‘‘(7) FINANCING OF RECAPTURE PAYMENT.— 

22 ‘‘(A) IN GENERAL.—The Secretary may 

23 amortize a recapture payment owed to the Sec24 retary under this subsection. 


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1 ‘‘(B) TERM.—The term of an amortization 

2 under this paragraph may not exceed 25 years. 

3 ‘‘(C) INTEREST RATE.—The interest rate 

4 applicable to an amortization under this para5 graph may not exceed the rate applicable to a 

6 loan to reacquire homestead property less 100 

7 basis points. 

8 ‘‘(D) REAMORTIZATION.— 

9 ‘‘(i) IN GENERAL.—The Secretary 

10 may modify the amortization of a recap11 ture payment referred to in subparagraph 

12 (A) of this paragraph on which a payment 

13 has become delinquent if— 

14 ‘‘(I) the default is due to cir15 cumstances beyond the control of the 

16 borrower; and 

17 ‘‘(II) the borrower acted in good 

18 faith (as determined by the Secretary) 

19 in attempting to repay the recapture 

20 amount. 

21 ‘‘(ii) LIMITATIONS.— 

22 ‘‘(I) TERM OF REAMORTIZA23 TION.—The term of a reamortization 

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1 ceed 25 years from the date of the 

2 original amortization agreement. 

3 ‘‘(II) NO REDUCTION OR PRIN4 CIPAL OR UNPAID INTEREST DUE.—A 

5 reamortization of a recapture payment 

6 under this subparagraph may not pro7 vide for reducing the outstanding 

8 principal or unpaid interest due on 

9 the recapture payment. 

10 ‘‘(f) INTEREST RATES.—Any loan for farm owner11 ship purposes, farm operating purposes, or disaster emer12 gency purposes, that is deferred, consolidated, resched13 uled, or reamortized shall, notwithstanding any other pro14 vision of this subtitle, bear interest on the balance of the 

15 original loan and for the term of the original loan at a 

16 rate that is the lowest of— 

17 ‘‘(1) the rate of interest on the original loan; 

18 ‘‘(2) the rate being charged by the Secretary 

19 for loans, other than guaranteed loans, of the same 

20 type at the time at which the borrower applies for 

21 a deferral, consolidation, rescheduling, or re22 amortization; or 

23 ‘‘(3) the rate being charged by the Secretary 

24 for loans, other than guaranteed loans, of the same 


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1 type at the time of the deferral, consolidation, re2 scheduling, or reamortization. 

3 ‘‘(g) PERIOD AND EFFECT.— 

4 ‘‘(1) PERIOD.—The Secretary may consolidate 

5 or reschedule outstanding loans for payment over a 

6 period not to exceed 7 years (or, in the case of loans 

7 for farm operating purposes, 15 years) from the 

8 date of the consolidation or rescheduling. 

9 ‘‘(2) EFFECT.—The amount of unpaid principal 

10 and interest of the prior loans so consolidated or re11 scheduled shall not create a new charge against any 

12 loan levels authorized by law. 

13 ‘‘(h) PREREQUISITES TO FORECLOSURE OR LIQUIDA14 TION.—No foreclosure or other similar action shall be 

15 taken to liquidate any loan determined to be ineligible for 

16 restructuring by the Secretary under this section— 

17 ‘‘(1) until the borrower has been given the op18 portunity to appeal the decision; and 

19 ‘‘(2) if the borrower appeals, the appeals proc20 ess has been completed, and a determination has 

21 been made that the loan is ineligible for restruc22 turing. 

23 ‘‘(i) NOTICE OF INELIGIBILITY FOR RESTRUC24 TURING.— 


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1 ‘‘(1) IN GENERAL.—A notice of ineligibility for 

2 restructuring shall be sent to the borrower by reg3 istered or certified mail not later than 15 days after 

4 a determination of ineligibility. 

5 ‘‘(2) CONTENTS.—The notice required under 

6 paragraph (1) shall contain— 

7 ‘‘(A) the determination and the reasons for 

8 the determination; 

9 ‘‘(B) the computations used to make the 

10 determination, including the calculation of the 

11 recovery value of the collateral securing the 

12 loan; and 

13 ‘‘(C) a statement of the right of the bor14 rower to appeal the decision to the appeals divi15 sion, and to appear before a hearing officer. 

16 ‘‘(j) INDEPENDENT APPRAISALS.— 

17 ‘‘(1) IN GENERAL.—An appeal may include a 

18 request by the borrower for an independent ap19 praisal of any property securing the loan. 

20 ‘‘(2) PROCESS FOR APPRAISAL.—On a request 

21 under paragraph (1), the Secretary shall present the 

22 borrower with a list of 3 appraisers approved by the 

23 county supervisor, from which the borrower shall se24 lect an appraiser to conduct the appraisal. 


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1 ‘‘(3) COST.—The cost of an appraisal under 

2 this subsection shall be paid by the borrower. 

3 ‘‘(4) RESULT.—The result of an appraisal 

4 under this subsection shall be considered in any final 

5 determination concerning the loan. 

6 ‘‘(5) COPY.—A copy of any appraisal under this 

7 subsection shall be provided to the borrower. 

8 ‘‘(k) ONLY 1 WRITE-DOWN OR NET RECOVERY BUY9 OUT PER BORROWER FOR A LOAN MADE AFTER JANU10 ARY 6, 1988.— 

11 ‘‘(1) IN GENERAL.—The Secretary may provide 

12 for each borrower not more than 1 write-down or net 

13 recovery buy-out under this section with respect to 

14 all loans made to the borrower after January 6, 

15 1988. 

16 ‘‘(2) SPECIAL RULE.—For purposes of para17 graph (1), the Secretary shall treat any loan made 

18 on or before January 6, 1988, with respect to which 

19 a restructuring, write-down, or net recovery buy-out 

20 is provided under this section after January 6, 1988, 

21 as a loan made after January 6, 1988. 

22 ‘‘(l) LIQUIDATION OF ASSETS.—The Secretary may 

23 not use the authority provided by this section to reduce 

24 or terminate any portion of the debt of the borrower that 

25 the borrower could pay through the liquidation of assets 


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1 (or through the payment of the loan value of the assets, 

2 if the loan value is greater than the liquidation value) de3 scribed in subsection (c)(2)(A)(ii). 

4 ‘‘(m) LIFETIME LIMITATION ON DEBT FORGIVENESS

5 PER BORROWER.—The Secretary may provide each bor6 rower not more than $300,000 in debt forgiveness under 

7 this section. 

8 ‘‘SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS 

9 FROM CERTAIN AGRICULTURAL LOAN OBLI10 GATIONS. 

11 ‘‘(a) DEFINITION OF MOBILIZED MILITARY RESERV12 IST.—In this section, the term ‘mobilized military reserv13 ist’ means an individual who— 

14 ‘‘(1) is on active duty under section 688, 

15 12301(a), 12301(g), 12302, 12304, 12306, or 

16 12406, or chapter 15 of title 10, United States 

17 Code, or any other provision of law during a war or 

18 during a national emergency declared by the Presi19 dent or Congress, regardless of the location at which 

20 the active duty service is performed; or 

21 ‘‘(2) in the case of a member of the National 

22 Guard, is on full-time National Guard duty (as de23 fined in section 101(d)(5) of title 10, United States 

24 Code) under a call to active service authorized by 

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1 riod of more than 30 consecutive days under section 

2 502(f) of title 32, United States Code, for purposes 

3 of responding to a national emergency declared by 

4 the President and supported by Federal funds. 

5 ‘‘(b) FORGIVENESS OF INTEREST PAYMENTS DUE

6 WHILE BORROWER IS A MOBILIZED MILITARY RESERV7 IST.—Any requirement that a borrower of a direct loan 

8 made under this subtitle make any interest payment on 

9 the loan that would otherwise be required to be made while 

10 the borrower is a mobilized military reservist is rescinded. 

11 ‘‘(c) DEFERRAL OF PRINCIPAL PAYMENTS DUE

12 WHILE OR AFTER BORROWER IS A MOBILIZED MILITARY

13 RESERVIST.—The due date of any payment of principal 

14 on a direct loan made to a borrower under this subtitle 

15 that would otherwise be required to be made while or after 

16 the borrower is a mobilized military reservist is deferred 

17 for a period equal in length to the period for which the 

18 borrower is a mobilized military reservist. 

19 ‘‘(d) NONACCRUAL OF INTEREST.—Interest on a di20 rect loan made to a borrower described in this section shall 

21 not accrue during the period the borrower is a mobilized 

22 military reservist. 

23 ‘‘(e) BORROWER NOT CONSIDERED TO BE DELIN24 QUENT OR RECEIVING DEBT FORGIVENESS.—Notwith25 standing section 3425 or any other provision of this title, 


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1 a borrower who receives assistance under this section shall 

2 not, as a result of the assistance, be considered to be delin3 quent or receiving debt forgiveness for purposes of receiv4 ing a direct or guaranteed loan under this subtitle. 

5 ‘‘SEC. 3413. INTEREST RATE REDUCTION PROGRAM. 

6 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

7 shall establish and carry out in accordance with this sec8 tion an interest rate reduction program for any loan guar9 anteed under this subtitle. 

10 ‘‘(b) ENTERING INTO CONTRACTS.—The Secretary 

11 shall enter into a contract with, and make payments to, 

12 an institution to reduce, during the term of the contract, 

13 the interest rate paid by the borrower on the guaranteed 

14 loan if— 

15 ‘‘(1) the borrower— 

16 ‘‘(A) is unable to obtain credit elsewhere; 

17 ‘‘(B) is unable to make payments on the 

18 loan in a timely manner; and 

19 ‘‘(C) during the 24-month period beginning 

20 on the date on which the contract is entered 

21 into, has a total estimated cash income, includ22 ing all farm and nonfarm income, that will 

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1 penses, to be incurred by the borrower during 

2 the period; and 

3 ‘‘(2) during the term of the contract, the lender 

4 reduces the annual rate of interest payable on the 

5 loan by a minimum percentage specified in the con6 tract. 

7 ‘‘(c) PAYMENTS.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 in return for a contract entered into by a lender 

10 under subsection (b) for the reduction of the interest 

11 rate paid on a loan, the Secretary shall make pay12 ments to the lender in an amount equal to not more 

13 than 100 percent of the cost of reducing the annual 

14 rate of interest payable on the loan. 

15 ‘‘(2) LIMITATION.—Payments under paragraph 

16 (1) may not exceed the cost of reducing the rate by 

17 more than 400 basis points. 

18 ‘‘(d) TERM.—The term of a contract entered into 

19 under this section to reduce the interest rate on a guaran20 teed loan may not exceed the outstanding term of the loan. 

21 ‘‘(e) CONDITION ON FORECLOSURE.—Notwith22 standing any other law, any contract of guarantee on a 

23 farm loan entered into under this subtitle shall contain 

24 a condition that the lender of the loan may not initiate 

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1 termination is made with respect to the eligibility of the 

2 borrower to participate in the program established under 

3 this section. 

4 ‘‘SEC. 3414. HOMESTEAD PROPERTY. 

5 ‘‘(a) DEFINITIONS.—In this section: 

6 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis7 trator’ means the Administrator of the Small Busi8 ness Administration. 

9 ‘‘(2) BORROWER-OWNER.—The term ‘borrower10 owner’ means— 

11 ‘‘(A) a borrower-owner of a loan made or 

12 guaranteed by the Secretary or the Adminis13 trator who meets the eligibility requirements of 

14 subsection (c)(1); or 

15 ‘‘(B) in a case in which an owner of home16 stead property pledged the property to secure 

17 the loan and the owner is different than the 

18 borrower, the owner. 

19 ‘‘(3) FARM PROGRAM LOAN.—The term ‘farm 

20 program loan’ means a loan made by the Adminis21 trator under the Small Business Act (15 U.S.C. 631 

22 et seq.) for any of the purposes authorized for loans 

23 under chapter 1 or 2. 

24 ‘‘(4) HOMESTEAD PROPERTY.—The term 

25 ‘homestead property’ means— 


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1 ‘‘(A) the principal residence and adjoining 

2 property possessed and occupied by a borrower3 owner, including a reasonable number of farm 

4 outbuildings located on the adjoining land that 

5 are useful to any occupant of the homestead; 

6 and 

7 ‘‘(B) not more than 10 acres of adjoining 

8 land that is used to maintain the family of the 

9 borrower-owner. 

10 ‘‘(b) RETENTION OF HOMESTEAD PROPERTY.— 

11 ‘‘(1) IN GENERAL.—The Secretary or the Ad12 ministrator shall, on application by a borrower13 owner who meets the eligibility requirements of sub14 section (c)(1), permit the borrower-owner to retain 

15 possession and occupancy of homestead property 

16 under the terms set forth, and until the action de17 scribed in this section has been completed, if— 

18 ‘‘(A) the Secretary forecloses or takes into 

19 inventory property securing a loan made under 

20 this subtitle; 

21 ‘‘(B) the Administrator forecloses or takes 

22 into inventory property securing a farm pro23 gram loan made under the Small Business Act 

24 (15 U.S.C. 631 et seq.); or 


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1 ‘‘(C) the borrower-owner of a loan made by 

2 the Secretary or the Administrator files a peti3 tion in bankruptcy that results in the convey4 ance of the homestead property to the Secretary 

5 or the Administrator, or agrees to voluntarily 

6 liquidate or convey the property in whole or in 

7 part. 

8 ‘‘(2) PERIOD OF OCCUPANCY.—Subject to sub9 section (c), the Secretary or the Administrator shall 

10 not grant a period of occupancy of less than 3 nor 

11 more than 5 years. 

12 ‘‘(c) ELIGIBILITY.— 

13 ‘‘(1) IN GENERAL.—To be eligible to occupy 

14 homestead property, a borrower-owner of a loan 

15 made by the Secretary or the Administrator shall— 

16 ‘‘(A) apply for the occupancy not later 

17 than 30 days after the property is acquired by 

18 the Secretary or Administrator; 

19 ‘‘(B) have received from farming oper20 ations gross farm income that is reasonably 

21 commensurate with— 

22 ‘‘(i) the size and location of the farm23 ing unit of the borrower-owner; and 

24 ‘‘(ii) local agricultural conditions (in25 cluding natural and economic conditions), 


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1 during at least 2 calendar years of the 6- 

2 year period preceding the calendar year in 

3 which the application is made; 

4 ‘‘(C) have received from farming oper5 ations at least 60 percent of the gross annual 

6 income of the borrower-owner and any spouse 

7 of the borrower-owner during at least 2 cal8 endar years of the 6-year period described in 

9 subparagraph (B); 

10 ‘‘(D) have continuously occupied the home11 stead property during the 6-year period de12 scribed in subparagraph (B), except that the re13 quirement of this subparagraph may be waived 

14 if a borrower-owner, due to circumstances be15 yond the control of the borrower-owner, had to 

16 leave the homestead property for a period of 

17 time not to exceed 12 months during the 6-year 

18 period; 

19 ‘‘(E) during the period of occupancy of the 

20 homestead property, pay a reasonable sum as 

21 rent for the property to the Secretary or the 

22 Administrator in an amount substantially equiv23 alent to rents charged for similar residential 

24 properties in the area in which the homestead 

25 property is located; 


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1 ‘‘(F) during the period of the occupancy of 

2 the homestead property, maintain the property 

3 in good condition; and 

4 ‘‘(G) meet such other reasonable and nec5 essary terms and conditions as the Secretary 

6 may require. 

7 ‘‘(2) DEFINITION OF FARMING OPERATIONS.— 

8 In subparagraphs (B) and (C) of paragraph (1), the 

9 term ‘farming operations’ includes rent paid by a 

10 lessee of agricultural land during a period in which 

11 the borrower-owner, due to circumstances beyond 

12 the control of the borrower-owner, is unable to ac13 tively farm the land. 

14 ‘‘(3) TERMINATION OF RIGHTS.— 

15 ‘‘(A) IN GENERAL.—For purposes of para16 graph (1)(E), the failure of the borrower-owner 

17 to make a timely rental payment shall con18 stitute cause for the termination of all rights of 

19 the borrower-owner to possession and occu20 pancy of the homestead property under this sec21 tion. 

22 ‘‘(B) PROCEDURE FOR TERMINATION.—In 

23 effecting a termination under subparagraph 

24 (A), the Secretary shall— 


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1 ‘‘(i) afford the borrower-owner or les2 see the notice and hearing procedural 

3 rights described in subtitle H of the De4 partment of Agriculture Reorganization 

5 Act of 1994 (7 U.S.C. 6991 et seq.); and 

6 ‘‘(ii) comply with any applicable State 

7 and local law governing eviction of a per8 son from residential property. 

9 ‘‘(4) RIGHTS OF BORROWER-OWNER.— 

10 ‘‘(A) PERIOD OF OCCUPANCY.—Subject to 

11 subsection (b)(2), the period of occupancy al12 lowed the borrower-owner of homestead prop13 erty under this section shall be the period re14 quested in writing by the borrower-owner. 

15 ‘‘(B) RIGHT TO REACQUIRE.— 

16 ‘‘(i) IN GENERAL.—During the period 

17 the borrower-owner occupies the homestead 

18 property, the borrower-owner shall have a 

19 right to reacquire the homestead property 

20 on such terms and conditions as the Sec21 retary shall determine. 

22 ‘‘(ii) SOCIALLY DISADVANTAGED BOR23 ROWER-OWNER.—During the period of oc24 cupancy of a borrower-owner who is a so25 cially disadvantaged farmer, the borrowerVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00547 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 owner or a member of the immediate fam2 ily of the borrower-owner shall have a right 

3 of first refusal to reacquire the homestead 

4 property on such terms and conditions as 

5 the Secretary shall determine. 

6 ‘‘(iii) INDEPENDENT APPRAISAL.— 

7 The Secretary may not demand a payment 

8 for the homestead property that is in ex9 cess of the current market value of the 

10 homestead property as established by an 

11 independent appraisal. 

12 ‘‘(iv) CONDUCT OF APPRAISAL.—An 

13 independent appraisal under clause (iii) 

14 shall be conducted by an appraiser selected 

15 by the borrower-owner, or, in the case of a 

16 borrower-owner who is a socially disadvan17 taged farmer, the immediate family mem18 ber of the borrower-owner, from a list of 3 

19 appraisers approved by the county super20 visor. 

21 ‘‘(5) TRANSFER OF RIGHTS.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 subparagraph (B), no right of a borrower-owner 

24 under this section, and no agreement entered 

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1 retary for occupancy of the homestead property, 

2 shall be transferable or assignable by the bor3 rower-owner or by operation of law. 

4 ‘‘(B) DEATH OR INCOMPETENCY.—In the 

5 case of death or incompetency of the borrower6 owner, the right and agreement shall be trans7 ferable to a spouse of the borrower-owner if the 

8 spouse agrees to comply with any terms and 

9 conditions of the right or agreement. 

10 ‘‘(6) NOTIFICATION.—Not later than the date 

11 of acquisition of the property securing a loan made 

12 under this subtitle, the Secretary shall notify the 

13 borrower-owner of the property of the availability of 

14 homestead protection rights under this section. 

15 ‘‘(d) END OF PERIOD OF OCCUPANCY.— 

16 ‘‘(1) IN GENERAL.—At the end of the period of 

17 occupancy allowed a borrower-owner under sub18 section (c), the Secretary or the Administrator shall 

19 grant to the borrower-owner a right of first refusal 

20 to reacquire the homestead property on such terms 

21 and conditions (which may include payment of prin22 cipal in installments) as the Secretary or the Admin23 istrator shall determine. 

24 ‘‘(2) TERMS AND CONDITIONS.—The terms and 

25 conditions granted under paragraph (1) may not be 


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1 less favorable than those offered by the Secretary or 

2 Administrator or intended by the Secretary or Ad3 ministrator to be offered to any other buyer. 

4 ‘‘(e) MAXIMUM PAYMENT OF PRINCIPAL.— 

5 ‘‘(1) IN GENERAL.—At the time a reacquisition 

6 agreement is entered into, the Secretary or the Ad7 ministrator may not demand a total payment of 

8 principal that is in excess of the value of the home9 stead property. 

10 ‘‘(2) DETERMINATION OF VALUE.—To the max11 imum extent practicable, the value of the homestead 

12 property shall be determined by an independent ap13 praisal made during the 180-day period beginning 

14 on the date of receipt of the application of the bor15 rower-owner to retain possession and occupancy of 

16 the homestead property. 

17 ‘‘(f) TITLE NOT NEEDED TO ENTER INTO CON18 TRACTS.—The Secretary may enter into a contract au19 thorized by this section before the Secretary acquires title 

20 to the homestead property that is the subject of the con21 tract. 

22 ‘‘(g) STATE LAW PREVAILS.—In the event of a con23 flict between this section and a provision of State law re24 lating to the right of a borrower-owner to designate for 

25 separate sale or redeem part or all of the real property 


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1 securing a loan foreclosed on by a lender to the borrower2 owner, the provision of State law shall prevail. 

3 ‘‘SEC. 3415. TRANSFER OF INVENTORY LAND. 

4 ‘‘(a) IN GENERAL.—Subject to subsection (b), the 

5 Secretary may transfer to a Federal or State agency, for 

6 conservation purposes, any real property, or interest in 

7 real property, administered by the Secretary under this 

8 subtitle— 

9 ‘‘(1) with respect to which the rights of all prior 

10 owners and operators have expired; 

11 ‘‘(2) that is eligible to be disposed of in accord12 ance with section 3409; and 

13 ‘‘(3) that— 

14 ‘‘(A) has marginal value for agricultural 

15 production; 

16 ‘‘(B) is environmentally sensitive; or 

17 ‘‘(C) has special management importance. 

18 ‘‘(b) CONDITIONS.—The Secretary may not transfer 

19 any property or interest in property under subsection (a) 

20 unless— 

21 ‘‘(1) at least 2 public notices are given of the 

22 transfer; 

23 ‘‘(2) if requested, at least 1 public meeting is 

24 held prior to the transfer; and 


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1 ‘‘(3) the Governor and at least 1 elected county 

2 official of the State and county in which the prop3 erty is located are consulted prior to the transfer. 

4 ‘‘SEC. 3416. TARGET PARTICIPATION RATES. 

5 ‘‘(a) ESTABLISHMENT.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall estab7 lish annual target participation rates, on a county8 wide basis, that shall ensure that members of so9 cially disadvantaged groups shall— 

10 ‘‘(A) receive loans made or guaranteed 

11 under chapter 1; and 

12 ‘‘(B) have the opportunity to purchase or 

13 lease farmland acquired by the Secretary under 

14 this subtitle. 

15 ‘‘(2) GROUP POPULATION.—Except as provided 

16 in paragraph (3), in establishing the target rates, 

17 the Secretary shall take into consideration— 

18 ‘‘(A) the portion of the population of the 

19 county made up of the socially disadvantaged 

20 groups; and 

21 ‘‘(B) the availability of inventory farmland 

22 in the county. 

23 ‘‘(3) GENDER.—In the case of gender, target 

24 participation rates shall take into consideration the 

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1 taged farmers in a State in proportion to the total 

2 number of farmers in the State. 

3 ‘‘(b) RESERVATION AND ALLOCATION.— 

4 ‘‘(1) RESERVATION.—To the maximum extent 

5 practicable, the Secretary shall reserve sufficient 

6 loan funds made available under chapter 1 for use 

7 by members of socially disadvantaged groups identi8 fied under target participation rates established 

9 under subsection (a). 

10 ‘‘(2) ALLOCATION.—The Secretary shall allo11 cate the loans on the basis of the proportion of 

12 members of socially disadvantaged groups in a coun13 ty and the availability of inventory farmland, with 

14 the greatest amount of loan funds being distributed 

15 in the county with the greatest proportion of socially 

16 disadvantaged group members and the greatest 

17 quantity of available inventory farmland. 

18 ‘‘(3) INDIAN RESERVATIONS.—In distributing 

19 loan funds in counties within the boundaries of an 

20 Indian reservation, the Secretary shall allocate the 

21 funds on a reservation-wide basis. 

22 ‘‘(c) OPERATING LOANS.— 

23 ‘‘(1) ESTABLISHMENT.— 

24 ‘‘(A) IN GENERAL.—The Secretary shall 

25 establish annual target participation rates that 


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1 shall ensure that socially disadvantaged farmers 

2 receive loans made or guaranteed under chapter 

3 2. 

4 ‘‘(B) CONSIDERATIONS.—In establishing 

5 the target rates, the Secretary shall consider 

6 the number of socially disadvantaged farmers in 

7 a State in proportion to the total number of 

8 farmers in the State. 

9 ‘‘(2) RESERVATION AND ALLOCATION.— 

10 ‘‘(A) IN GENERAL.—To the maximum ex11 tent practicable, the Secretary shall reserve and 

12 allocate the proportion of the loan funds of each 

13 State made available under chapter 2 that is 

14 equal to the target participation rate of the 

15 State for use by the socially disadvantaged 

16 farmers in the State. 

17 ‘‘(B) DISTRIBUTION.—To the maximum 

18 extent practicable, the Secretary shall distribute 

19 the total loan funds reserved under subpara20 graph (A) on a county-by-county basis accord21 ing to the number of socially disadvantaged 

22 farmers in the county. 

23 ‘‘(C) REALLOCATION OF UNUSED

24 FUNDS.—Any funds reserved and allocated 

25 under this paragraph but not used within a 


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1 State shall, to the extent necessary to satisfy 

2 pending applications under this subtitle, be 

3 available for use by socially disadvantaged 

4 farmers in other States, as determined by the 

5 Secretary, and any remaining funds shall be re6 allocated within the State. 

7 ‘‘(d) REPORT.—The Secretary shall prepare and sub8 mit to the Committee on Agriculture of the House of Rep9 resentatives and the Committee on Agriculture, Nutrition, 

10 and Forestry of the Senate a report that describes the an11 nual target participation rates and the success in meeting 

12 the rates. 

13 ‘‘(e) IMPLEMENTATION CONSISTENT WITH SUPREME

14 COURT HOLDING.—Not later than 180 days after April 

15 4, 1996, the Secretary shall ensure that the implementa16 tion of this section is consistent with the holding of the 

17 Supreme Court in Adarand Constructors, Inc. v. Federico 

18 Pena, Secretary of Transportation, 115 S. Ct. 2097 

19 (1995). 

20 ‘‘SEC. 3417. COMPROMISE OR ADJUSTMENT OF DEBTS OR 

21 CLAIMS BY GUARANTEED LENDER. 

22 ‘‘(a) LOSS BY LENDER.—If the lender of a guaran23 teed farmer program loan takes any action described in 

24 section 3903(a)(4) with respect to the loan and the Sec25 retary approves the action, for purposes of the guarantee, 


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1 the lender shall be treated as having sustained a loss equal 

2 to the amount by which— 

3 ‘‘(1) the outstanding balance of the loan imme4 diately before the action; exceeds 

5 ‘‘(2) the outstanding balance of the loan imme6 diately after the action. 

7 ‘‘(b) NET PRESENT VALUE OF LOAN.—The Sec8 retary shall approve the taking of an action described in 

9 section 3903(a)(4) by the lender of a guaranteed farmer 

10 program loan with respect to the loan if the action reduces 

11 the net present value of the loan to an amount equal to 

12 not less than the greater of— 

13 ‘‘(1) the greatest net present value of a loan the 

14 borrower could reasonably be expected to repay; and 

15 ‘‘(2) the difference between— 

16 ‘‘(A) the greatest amount that the lender 

17 of the loan could reasonably expect to recover 

18 from the borrower through bankruptcy, or liq19 uidation of the property securing the loan; and 

20 ‘‘(B) all reasonable and necessary costs 

21 and expenses that the lender of the loan could 

22 reasonably expect to incur to preserve or dis23 pose of the property (including all associated 

24 legal and property management costs) in the 

25 course of such a bankruptcy or liquidation. 


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1 ‘‘(c) NO LIMITATION ON AUTHORITY.—This section 

2 shall not limit the authority of the Secretary to enter into 

3 a shared appreciation arrangement with a borrower under 

4 section 3411(e). 

5 ‘‘SEC. 3418. WAIVER OF MEDIATION RIGHTS BY BOR6 ROWERS. 

7 ‘‘The Secretary may not make or guarantee any 

8 farmer program loan to a farm borrower on the condition 

9 that the borrower waive any right under the mediation 

10 program of any State. 

11 ‘‘SEC. 3419. BORROWER TRAINING. 

12 ‘‘(a) IN GENERAL.—The Secretary shall contract to 

13 provide educational training to all borrowers of direct 

14 loans made under this subtitle in financial and farm man15 agement concepts associated with commercial farming. 

16 ‘‘(b) CONTRACT.— 

17 ‘‘(1) IN GENERAL.—The Secretary may con18 tract with a State or private provider of farm man19 agement and credit counseling services (including a 

20 community college, the extension service of a State, 

21 a State department of agriculture, or a nonprofit or22 ganization) to carry out this section. 

23 ‘‘(2) CONSULTATION.—The Secretary may con24 sult with the chief executive officer of a State conVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00557 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 cerning the identity of the contracting organization 

2 and the process for contracting. 

3 ‘‘(c) ELIGIBILITY FOR LOANS.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

5 to be eligible to obtain a direct loan under this sub6 title, a borrower shall be required to obtain manage7 ment assistance under this section, appropriate to 

8 the management ability of the borrower during the 

9 determination of eligibility for the loan. 

10 ‘‘(2) LOAN CONDITIONS.—The need of a bor11 rower who satisfies the criteria set out in section 

12 3101(b)(1)(B) or 3201(b)(1)(B) for management as13 sistance under this section shall not be cause for de14 nial of eligibility of the borrower for a direct loan 

15 under this subtitle. 

16 ‘‘(d) GUIDELINES AND CURRICULUM.—The Sec17 retary shall issue regulations establishing guidelines and 

18 curriculum for the borrower training program established 

19 under this section. 

20 ‘‘(e) PAYMENT.—A borrower— 

21 ‘‘(1) shall pay for training received under this 

22 section; and 

23 ‘‘(2) may use funds from operating loans made 

24 under chapter 2 to pay for the training. 

25 ‘‘(f) WAIVERS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary may waive 

2 the requirements of this section for an individual 

3 borrower on a determination that the borrower dem4 onstrates adequate knowledge in areas described in 

5 this section. 

6 ‘‘(2) CRITERIA.—The Secretary shall establish 

7 criteria providing for the application of paragraph 

8 (1) consistently in all counties nationwide. 

9 ‘‘SEC. 3420. LOAN ASSESSMENTS. 

10 ‘‘(a) IN GENERAL.—After an applicant is determined 

11 to be eligible for assistance under this subtitle, the Sec12 retary shall evaluate, in accordance with regulations issued 

13 by the Secretary, the farming plan and financial situation 

14 of each qualified farmer applicant. 

15 ‘‘(b) DETERMINATIONS.—In evaluating the farming 

16 plan and financial situation of an applicant under this sec17 tion, the Secretary shall determine— 

18 ‘‘(1) the amount that the applicant needs to 

19 borrow to carry out the proposed farming plan; 

20 ‘‘(2) the rate of interest that the applicant 

21 would need to be able to cover expenses and build 

22 an adequate equity base; 

23 ‘‘(3) the goals of the proposed farming plan of 

24 the applicant; 


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1 ‘‘(4) the financial viability of the plan and any 

2 changes that are necessary to make the plan viable; 

3 and 

4 ‘‘(5) whether assistance is necessary under this 

5 subtitle and, if so, the amount of the assistance. 

6 ‘‘(c) CONTRACT.—The Secretary may contract with 

7 a third party (including an entity that is eligible to provide 

8 borrower training under section 3419(b)) to conduct a 

9 loan assessment under this section. 

10 ‘‘(d) REVIEW OF LOANS.— 

11 ‘‘(1) IN GENERAL.—Loan assessments con12 ducted under this section shall include annual review 

13 of direct loans, and periodic review (as determined 

14 necessary by the Secretary) of guaranteed loans, 

15 made under this subtitle to assess the progress of a 

16 borrower in meeting the goals for the farm oper17 ation. 

18 ‘‘(2) CONTRACTS.—The Secretary may contract 

19 with an entity that is eligible to provide borrower 

20 training under section 3419(b) to conduct a loan re21 view under paragraph (1). 

22 ‘‘(3) PROBLEM ASSESSMENTS.—If a borrower is 

23 delinquent in payments on a direct or guaranteed 

24 loan made under this subtitle, the Secretary or the 


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1 contracting entity shall determine the cause of, and 

2 action necessary to correct, the delinquency. 

3 ‘‘(e) GUIDELINES.—The Secretary shall issue regula4 tions providing guidelines for loan assessments conducted 

5 under this section. 

6 ‘‘SEC. 3421. SUPERVISED CREDIT. 

7 ‘‘The Secretary shall provide adequate training to 

8 employees of the Farm Service Agency on credit analysis 

9 and financial and farm management— 

10 ‘‘(1) to better acquaint the employees with what 

11 constitutes adequate financial data on which to base 

12 a direct or guaranteed loan approval decision; and 

13 ‘‘(2) to ensure proper supervision of farmer 

14 program loans. 

15 ‘‘SEC. 3422. MARKET PLACEMENT. 

16 ‘‘The Secretary shall establish a market placement 

17 program for a qualified beginning farmer and any other 

18 borrower of farmer program loans that the Secretary be19 lieves has a reasonable chance of qualifying for commercial 

20 credit with a guarantee provided under this subtitle. 

21 ‘‘SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF 

22 BORROWER. 

23 ‘‘The Secretary shall classify, by gender, records of 

24 applicants for loans and loan guarantees under this sub25 title. 


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1 ‘‘SEC. 3424. CROP INSURANCE REQUIREMENT. 

2 ‘‘(a) IN GENERAL.—As a condition of obtaining any 

3 benefit (including a direct loan, loan guarantee, or pay4 ment) described in subsection (b), a borrower shall be re5 quired to obtain at least catastrophic risk protection insur6 ance coverage under section 508 of the Federal Crop In7 surance Act (7 U.S.C. 1508) for the crop and crop year 

8 for which the benefit is sought, if the coverage is offered 

9 by the Federal Crop Insurance Corporation. 

10 ‘‘(b) APPLICABLE BENEFITS.—Subsection (a) shall 

11 apply to— 

12 ‘‘(1) a farm ownership loan under section 3102; 

13 ‘‘(2) an operating loan under section 3202; and 

14 ‘‘(3) an emergency loan under section 3301. 

15 ‘‘SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS. 

16 ‘‘(a) DELINQUENT BORROWERS PROHIBITED FROM

17 OBTAINING DIRECT OPERATING LOANS.—The Secretary 

18 may not make a direct operating loan under chapter 2 

19 to a borrower who is delinquent on any loan made or guar20 anteed under this subtitle. 

21 ‘‘(b) LOANS PROHIBITED FOR BORROWERS THAT

22 HAVE RECEIVED DEBT FORGIVENESS.— 

23 ‘‘(1) PROHIBITIONS.—Except as provided in 

24 paragraph (2)— 

25 ‘‘(A) the Secretary may not make a loan 

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1 ceived debt forgiveness on a loan made or guar2 anteed under this subtitle; and 

3 ‘‘(B) the Secretary may not guarantee a 

4 loan under this subtitle to a borrower that has 

5 received— 

6 ‘‘(i) debt forgiveness after April 4, 

7 1996, on a loan made or guaranteed under 

8 this subtitle; or 

9 ‘‘(ii) received debt forgiveness on more 

10 than 3 occasions on or before April 4, 

11 1996. 

12 ‘‘(2) EXCEPTIONS.— 

13 ‘‘(A) IN GENERAL.—The Secretary may 

14 make a direct or guaranteed farm operating 

15 loan for paying annual farm operating expenses 

16 of a borrower who— 

17 ‘‘(i) was restructured with a write18 down under section 3411; 

19 ‘‘(ii) is current on payments under a 

20 confirmed reorganization plan under chap21 ters 11, 12, or 13 of title 11 of the United 

22 States Code; or 

23 ‘‘(iii) received debt forgiveness on not 

24 more than 1 occasion resulting directly and 

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1 gency designated by the President on or 

2 after April 4, 1996, under the Robert T. 

3 Stafford Disaster Relief and Emergency 

4 Assistance Act (42 U.S.C. 5121 et seq.). 

5 ‘‘(B) EMERGENCY LOANS.—The Secretary 

6 may make an emergency loan under section 

7 3301 to a borrower that— 

8 ‘‘(i) on or before April 4, 1996, re9 ceived not more than 1 debt forgiveness on 

10 a loan made or guaranteed under this sub11 title; and 

12 ‘‘(ii) after April 4, 1996, has not re13 ceived debt forgiveness on a loan made or 

14 guaranteed under this subtitle. 

15 ‘‘(c) NO MORE THAN 1 DEBT FORGIVENESS FOR A

16 BORROWER ON A DIRECT LOAN.—The Secretary may not 

17 provide to a borrower debt forgiveness on a direct loan 

18 made under this subtitle if the borrower has received debt 

19 forgiveness on another direct loan made under this sub20 title. 

21 ‘‘SEC. 3426. SHORT FORM CERTIFICATION OF FARM PRO22 GRAM BORROWER COMPLIANCE. 

23 ‘‘The Secretary shall develop and use a consolidated 

24 short form for farmer program loan borrowers to use in 

25 certifying compliance with any applicable provision of law 


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1 (including a regulation) that serves as an eligibility pre2 requisite for a loan made under this subtitle. 

3 ‘‘SEC. 3427. UNDERWRITING FORMS AND STANDARDS. 

4 ‘‘In the administration of this subtitle, the Secretary 

5 shall, to the extent practicable, use underwriting forms, 

6 standards, practices, and terminology similar to the forms, 

7 standards, practices, and terminology used by lenders in 

8 the private sector. 

9 ‘‘SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOP10 MENT ACCOUNTS PILOT PROGRAM. 

11 ‘‘(a) DEFINITIONS.—In this section: 

12 ‘‘(1) DEMONSTRATION PROGRAM.—The term 

13 ‘demonstration program’ means a demonstration 

14 program carried out by a qualified entity under the 

15 pilot program established in subsection (b)(1). 

16 ‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligi17 ble participant’ means a qualified beginning farmer 

18 that— 

19 ‘‘(A) lacks significant financial resources 

20 or assets; and 

21 ‘‘(B) has an income that is less than— 

22 ‘‘(i) 80 percent of the median income 

23 of the State in which the farmer resides; or 

24 ‘‘(ii) 200 percent of the most recent 

25 annual Federal Poverty Income Guidelines 


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1 published by the Department of Health 

2 and Human Services for the State. 

3 ‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.— 

4 The term ‘individual development account’ means a 

5 savings account described in subsection (b)(4)(A). 

6 ‘‘(4) QUALIFIED ENTITY.— 

7 ‘‘(A) IN GENERAL.—The term ‘qualified 

8 entity’ means— 

9 ‘‘(i) 1 or more organizations— 

10 ‘‘(I) described in section 

11 501(c)(3) of the Internal Revenue 

12 Code of 1986; and 

13 ‘‘(II) exempt from taxation under 

14 section 501(a) of such Code; or 

15 ‘‘(ii) a State, local, or tribal govern16 ment submitting an application jointly with 

17 an organization described in clause (i). 

18 ‘‘(B) NO PROHIBITION ON COLLABORA19 TION.—An organization described in subpara20 graph (A)(i) may collaborate with a financial 

21 institution or for-profit community development 

22 corporation to carry out the purposes of this 

23 section. 

24 ‘‘(b) PILOT PROGRAM.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall estab2 lish a pilot program to be known as the ‘New Farm3 er Individual Development Accounts Pilot Program’ 

4 under which the Secretary shall work through quali5 fied entities to establish demonstration programs— 

6 ‘‘(A) of at least 5 years in duration; and 

7 ‘‘(B) in at least 15 States. 

8 ‘‘(2) COORDINATION.—The Secretary shall op9 erate the pilot program through and in coordination 

10 with the farmer program loans of the Farm Service 

11 Agency. 

12 ‘‘(3) RESERVE FUNDS.— 

13 ‘‘(A) IN GENERAL.—A qualified entity car14 rying out a demonstration program under this 

15 section shall establish a reserve fund consisting 

16 of a non-Federal match of 50 percent of the 

17 total amount of the grant awarded to the dem18 onstration program under this section. 

19 ‘‘(B) FEDERAL FUNDS.—After the quali20 fied entity has deposited the non-Federal 

21 matching funds described in subparagraph (A) 

22 in the reserve fund, the Secretary shall provide 

23 the total amount of the grant awarded under 

24 this section to the demonstration program for 

25 deposit in the reserve fund. 


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1 ‘‘(C) USE OF FUNDS.—Of the funds depos2 ited under subparagraph (B) in the reserve 

3 fund established for a demonstration program, 

4 the qualified entity carrying out the demonstra5 tion program— 

6 ‘‘(i) may use up to 10 percent for ad7 ministrative expenses; and 

8 ‘‘(ii) shall use the remainder in mak9 ing matching awards described in para10 graph (4)(B)(ii)(I). 

11 ‘‘(D) INTEREST.—Any interest earned on 

12 amounts in a reserve fund established under 

13 subparagraph (A) may be used by the qualified 

14 entity as additional matching funds for, or to 

15 administer, the demonstration program. 

16 ‘‘(E) GUIDANCE.—The Secretary shall 

17 issue guidance regarding the investment re18 quirements of reserve funds established under 

19 this paragraph. 

20 ‘‘(F) REVERSION.—On the date on which 

21 all funds remaining in any individual develop22 ment account established by a qualified entity 

23 have reverted under paragraph (5)(B)(ii) to the 

24 reserve fund established by the qualified entity, 

25 there shall revert to the Treasury of the United 


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1 States a percentage of the amount (if any) in 

2 the reserve fund equal to— 

3 ‘‘(i) the amount of Federal funds de4 posited in the reserve fund under subpara5 graph (B) that were not used for adminis6 trative expenses; divided by 

7 ‘‘(ii) the total amount of funds depos8 ited in the reserve fund. 

9 ‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 

10 ‘‘(A) IN GENERAL.—A qualified entity re11 ceiving a grant under this section shall establish 

12 and administer individual development accounts 

13 for eligible participants. 

14 ‘‘(B) CONTRACT REQUIREMENTS.—To be 

15 eligible to receive funds under this section from 

16 a qualified entity, an eligible participant shall 

17 enter into a contract with only 1 qualified enti18 ty under which— 

19 ‘‘(i) the eligible participant agrees— 

20 ‘‘(I) to deposit a certain amount 

21 of funds of the eligible participant in 

22 a personal savings account, as pre23 scribed by the contractual agreement 

24 between the eligible participant and 

25 the qualified entity; 


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1 ‘‘(II) to use the funds described 

2 in subclause (I) only for 1 or more eli3 gible expenditures described in para4 graph (5)(A); and 

5 ‘‘(III) to complete financial train6 ing; and 

7 ‘‘(ii) the qualified entity agrees— 

8 ‘‘(I) to deposit, not later than 1 

9 month after an amount is deposited 

10 pursuant to clause (i)(I), at least a 

11 100-percent, and up to a 200-percent, 

12 match of that amount into the indi13 vidual development account estab14 lished for the eligible participant; and 

15 ‘‘(II) with uses of funds proposed 

16 by the eligible participant. 

17 ‘‘(C) LIMITATION.— 

18 ‘‘(i) IN GENERAL.—A qualified entity 

19 administering a demonstration program 

20 under this section may provide not more 

21 than $6,000 for each fiscal year in match22 ing funds to the individual development ac23 count established by the qualified entity 

24 for an eligible participant. 


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1 ‘‘(ii) TREATMENT OF AMOUNT.—An 

2 amount provided under clause (i) shall not 

3 be considered to be a gift or loan for mort4 gage purposes. 

5 ‘‘(5) ELIGIBLE EXPENDITURES.— 

6 ‘‘(A) IN GENERAL.—An eligible expendi7 ture described in this subparagraph is an ex8 penditure— 

9 ‘‘(i) to purchase farmland or make a 

10 down payment on an accepted purchase 

11 offer for farmland; 

12 ‘‘(ii) to make mortgage payments on 

13 farmland purchased pursuant to clause (i), 

14 for up to 180 days after the date of the 

15 purchase; 

16 ‘‘(iii) to purchase breeding stock, fruit 

17 or nut trees, or trees to harvest for timber; 

18 and 

19 ‘‘(iv) for other similar expenditures, 

20 as determined by the Secretary. 

21 ‘‘(B) TIMING.— 

22 ‘‘(i) IN GENERAL.—An eligible partici23 pant may make an eligible expenditure at 

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1 ing funds are provided under paragraph 

2 (4)(B)(ii)(I) to the individual development 

3 account established for the eligible partici4 pant. 

5 ‘‘(ii) UNEXPENDED FUNDS.—At the 

6 end of the period described in clause (i), 

7 any funds remaining in an individual devel8 opment account established for an eligible 

9 participant shall revert to the reserve fund 

10 of the demonstration program under which 

11 the account was established. 

12 ‘‘(c) APPLICATIONS.— 

13 ‘‘(1) IN GENERAL.—A qualified entity that 

14 seeks to carry out a demonstration program under 

15 this section may submit to the Secretary an applica16 tion at such time, in such form, and containing such 

17 information as the Secretary may prescribe. 

18 ‘‘(2) CRITERIA.—In considering whether to ap19 prove an application to carry out a demonstration 

20 program under this section, the Secretary shall as21 sess— 

22 ‘‘(A) the degree to which the demonstra23 tion program described in the application is 

24 likely to aid eligible participants in successfully 

25 pursuing new farming opportunities; 


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1 ‘‘(B) the experience and ability of the 

2 qualified entity to responsibly administer the 

3 demonstration program; 

4 ‘‘(C) the experience and ability of the 

5 qualified entity in recruiting, educating, and as6 sisting eligible participants to increase economic 

7 independence and pursue or advance farming 

8 opportunities; 

9 ‘‘(D) the aggregate amount of direct funds 

10 from non-Federal public sector and private 

11 sources that are formally committed to the 

12 demonstration program as matching contribu13 tions; 

14 ‘‘(E) the adequacy of the plan of the quali15 fied entity to provide information relevant to an 

16 evaluation of the demonstration program; and 

17 ‘‘(F) such other factors as the Secretary 

18 considers to be appropriate. 

19 ‘‘(3) PREFERENCES.—In considering an appli20 cation to conduct a demonstration program under 

21 this section, the Secretary shall give preference to an 

22 application from a qualified entity that dem23 onstrates— 


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1 ‘‘(A) a track record of serving clients tar2 geted by the program, including, as appro3 priate, socially disadvantaged farmers; and 

4 ‘‘(B) expertise in dealing with financial 

5 management aspects of farming. 

6 ‘‘(4) APPROVAL.—Not later than 1 year after 

7 the date of enactment of this section, in accordance 

8 with this section, the Secretary shall, on a competi9 tive basis, approve such applications to conduct dem10 onstration programs as the Secretary considers ap11 propriate. 

12 ‘‘(5) TERM OF AUTHORITY.—If the Secretary 

13 approves an application to carry out a demonstration 

14 program, the Secretary shall authorize the applicant 

15 to carry out the project for a period of 5 years, plus 

16 an additional 2 years to make eligible expenditures 

17 in accordance with subsection (b)(5)(B). 

18 ‘‘(d) GRANT AUTHORITY.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall make a 

20 grant to a qualified entity authorized to carry out a 

21 demonstration program under this section. 

22 ‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The ag23 gregate amount of grant funds provided to a dem24 onstration program carried out under this section 

25 shall not exceed $250,000. 


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1 ‘‘(3) TIMING OF GRANT PAYMENTS.—The Sec2 retary shall pay the amounts awarded under a grant 

3 made under this section— 

4 ‘‘(A) on the awarding of the grant; or 

5 ‘‘(B) pursuant to such payment plan as 

6 the qualified entity may specify. 

7 ‘‘(e) REPORTS.— 

8 ‘‘(1) ANNUAL PROGRESS REPORTS.— 

9 ‘‘(A) IN GENERAL.—Not later than 60 

10 days after the end of the calendar year in which 

11 the Secretary authorizes a qualified entity to 

12 carry out a demonstration program under this 

13 section, and annually thereafter until the con14 clusion of the demonstration program, the 

15 qualified entity shall prepare an annual report 

16 that includes, for the period covered by the re17 port— 

18 ‘‘(i) an evaluation of the progress of 

19 the demonstration program; 

20 ‘‘(ii) information about the dem21 onstration program, including the eligible 

22 participants and the individual develop23 ment accounts that have been established; 

24 and 


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1 ‘‘(iii) such other information as the 

2 Secretary may require. 

3 ‘‘(B) SUBMISSION OF REPORTS.—A quali4 fied entity shall submit each report required 

5 under subparagraph (A) to the Secretary. 

6 ‘‘(2) REPORTS BY THE SECRETARY.—Not later 

7 than 1 year after the date on which all demonstra8 tion programs under this section are concluded, the 

9 Secretary shall submit to Congress a final report 

10 that describes the results and findings of all reports 

11 and evaluations carried out under this section. 

12 ‘‘(f) ANNUAL REVIEW.—The Secretary may conduct 

13 an annual review of the financial records of a qualified 

14 entity— 

15 ‘‘(1) to assess the financial soundness of the 

16 qualified entity; and 

17 ‘‘(2) to determine the use of grant funds made 

18 available to the qualified entity under this section. 

19 ‘‘(g) REGULATIONS.—In carrying out this section, 

20 the Secretary may promulgate regulations to ensure that 

21 the program includes provisions for— 

22 ‘‘(1) the termination of demonstration pro23 grams; 

24 ‘‘(2) control of the reserve funds in the case of 

25 such a termination; 


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1 ‘‘(3) transfer of demonstration programs to 

2 other qualified entities; and 

3 ‘‘(4) remissions from a reserve fund to the Sec4 retary in a case in which a demonstration program 

5 is terminated without transfer to a new qualified en6 tity. 

7 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

8 is authorized to be appropriated to carry out this section 

9 $5,000,000 for each of fiscal years 2013 through 2018. 

10 ‘‘SEC. 3429. FARMER LOAN PILOT PROJECTS. 

11 ‘‘(a) IN GENERAL.—The Secretary may conduct pilot 

12 projects of limited scope and duration that are consistent 

13 with this subtitle to evaluate processes and techniques that 

14 may improve the efficiency and effectiveness of the pro15 grams carried out under this subtitle. 

16 ‘‘(b) NOTIFICATION.—The Secretary shall— 

17 ‘‘(1) not less than 60 days before the date on 

18 which the Secretary initiates a pilot project under 

19 subsection (a), submit notice of the proposed pilot 

20 project to the Committee on Agriculture of the 

21 House of Representatives and the Committee on Ag22 riculture, Nutrition, and Forestry of the Senate; and 

23 ‘‘(2) consider any recommendations or feedback 

24 provided to the Secretary in response to the notice 

25 provided under paragraph (1). 


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1 ‘‘SEC. 3430. PROHIBITION ON USE OF LOANS FOR CERTAIN 

2 PURPOSES. 

3 ‘‘(a) IN GENERAL.—Except as provided in sub4 sections (b) and (c), the Secretary may not approve a loan 

5 under this subtitle to drain, dredge, fill, level, or otherwise 

6 manipulate a wetland (as defined in section 1201(a) of 

7 the Food Security Act of 1985 (16 U.S.C. 3801(a))), or 

8 to engage in any activity that results in impairing or re9 ducing the flow, circulation, or reach of water. 

10 ‘‘(b) PRIOR ACTIVITY.—Subsection (a) does not 

11 apply in the case of— 

12 ‘‘(1) an activity related to the maintenance of 

13 a previously converted wetland; or 

14 ‘‘(2) an activity that had already commenced 

15 before November 28, 1990. 

16 ‘‘(c) EXCEPTION.—This section shall not apply to a 

17 loan made or guaranteed under this subtitle for a utility 

18 line. 

19 ‘‘SEC. 3431. AUTHORIZATION OF APPROPRIATIONS AND AL20 LOCATION OF FUNDS. 

21 ‘‘(a) AUTHORIZATION FOR LOANS.— 

22 ‘‘(1) IN GENERAL.—The Secretary may make 

23 or guarantee loans under chapters 1 and 2 from the 

24 Agricultural Credit Insurance Fund for not more 

25 than $4,226,000,000 for each of fiscal years 2013 

26 through 2018, of which, for each fiscal year— 


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1 ‘‘(A) $1,200,000,000 shall be for direct 

2 loans, of which— 

3 ‘‘(i) $350,000,000 shall be for farm 

4 ownership loans; and 

5 ‘‘(ii) $850,000,000 shall be for oper6 ating loans; and 

7 ‘‘(B) $3,026,000,000 shall be for guaran8 teed loans, of which— 

9 ‘‘(i) $1,000,000,000 shall be for guar10 antees of farm ownership loans; and 

11 ‘‘(ii) $2,026,000,000 shall be for 

12 guarantees of operating loans. 

13 ‘‘(2) BEGINNING FARMERS.— 

14 ‘‘(A) DIRECT LOANS.— 

15 ‘‘(i) FARM OWNERSHIP LOANS.— 

16 ‘‘(I) IN GENERAL.—Of the 

17 amounts made available under para18 graph (1) for direct farm ownership 

19 loans, the Secretary shall reserve an 

20 amount that is not less than 75 per21 cent of the total amount for qualified 

22 beginning farmers. 

23 ‘‘(II) DOWN PAYMENT LOANS; 

24 JOINT FINANCING ARRANGEMENTS.— 

25 Of the amounts reserved for a fiscal 


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1 year under subclause (I), the Sec2 retary shall reserve an amount not 

less than 2 3 ⁄3 of the amount for the 

4 down payment loan program under 

5 section 3107 and joint financing ar6 rangements under section 3105 until 

7 April 1 of the fiscal year. 

8 ‘‘(ii) OPERATING LOANS.—Of the 

9 amounts made available under paragraph 

10 (1) for direct operating loans, the Sec11 retary shall reserve for qualified beginning 

12 farmers for each of fiscal years 2013 

13 through 2018, an amount that is not less 

14 than 50 percent of the total amount. 

15 ‘‘(iii) FUNDS RESERVED UNTIL SEP16 TEMBER 1.—Except as provided in clause 

17 (i)(II), funds reserved for qualified begin18 ning farmers under this subparagraph for 

19 a fiscal year shall be reserved only until 

20 September 1 of the fiscal year. 

21 ‘‘(B) GUARANTEED LOANS.— 

22 ‘‘(i) FARM OWNERSHIP LOANS.—Of 

23 the amounts made available under para24 graph (1) for guarantees of farm owner25 ship loans, the Secretary shall reserve an 


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1 amount that is not less than 40 percent of 

2 the total amount for qualified beginning 

3 farmers. 

4 ‘‘(ii) OPERATING LOANS.—Of the 

5 amounts made available under paragraph 

6 (1) for guarantees of operating loans, the 

7 Secretary shall reserve 40 percent for 

8 qualified beginning farmers. 

9 ‘‘(iii) FUNDS RESERVED UNTIL APRIL

10 1.—Funds reserved for qualified beginning 

11 farmers under this subparagraph for a fis12 cal year shall be reserved only until April 

13 1 of the fiscal year. 

14 ‘‘(C) RESERVED FUNDS FOR ALL QUALI15 FIED BEGINNING FARMERS.—If a qualified be16 ginning farmer meets the eligibility criteria for 

17 receiving a direct or guaranteed loan under sec18 tion 3101, 3107, or 3201, the Secretary shall 

19 make or guarantee the loan if sufficient funds 

20 reserved under this paragraph are available to 

21 make or guarantee the loan. 

22 ‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B)— 


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1 ‘‘(i) beginning on August 1 of each 

2 fiscal year, the Secretary shall use avail3 able unsubsidized guaranteed farm oper4 ating loan funds to provide direct farm 

5 ownership loans approved by the Secretary 

6 to qualified beginning farmers under the 

7 down payment loan program established 

8 under section 3107, if sufficient direct 

9 farm ownership loan funds are not other10 wise available; and 

11 ‘‘(ii) beginning on September 1 of 

12 each fiscal year, the Secretary shall use 

13 available unsubsidized guaranteed farm op14 erating loan funds to provide direct farm 

15 ownership loans approved by the Secretary 

16 to qualified beginning farmers, if sufficient 

17 direct farm ownership loan funds are not 

18 otherwise available. 

19 ‘‘(B) LIMITATION.—The Secretary shall 

20 limit the transfer of funds under subparagraph 

21 (A) so that all guaranteed farm operating loans 

22 that have been approved, or will be approved, 

23 by the Secretary during the fiscal year will be 

24 made to the extent of available amounts. 


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1 ‘‘(4) TRANSFER FOR CREDIT SALES OF FARM

2 INVENTORY PROPERTY.— 

3 ‘‘(A) IN GENERAL.—Subject to subpara4 graphs (B) and (C), beginning on September 1 

5 of each fiscal year, the Secretary may use avail6 able funds made available under chapter 3 for 

7 the fiscal year to fund the credit sale of farm 

8 real estate in the inventory of the Secretary. 

9 ‘‘(B) SUPPLEMENTAL APPROPRIATIONS.— 

10 The transfer authority provided under subpara11 graph (A) shall not apply to any funds made 

12 available to the Secretary for any fiscal year 

13 under an Act making supplemental appropria14 tions. 

15 ‘‘(C) LIMITATION.—The Secretary shall 

16 limit the transfer of funds under subparagraph 

17 (A) so that all emergency disaster loans that 

18 have been approved, or will be approved, by the 

19 Secretary during the fiscal year will be made to 

20 the extent of available amounts. 

21 ‘‘(5) AVAILABILITY OF FUNDS.—Funds made 

22 available to carry out this subtitle shall remain avail23 able until expended. 

24 ‘‘(b) COST PROJECTIONS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall develop 

2 long-term cost projections for loan program author3 izations required under subsection (a). 

4 ‘‘(2) ANALYSIS.—Each projection under para5 graph (1) shall include analyses of— 

6 ‘‘(A) the long-term costs of the lending lev7 els that the Secretary requests to be authorized 

8 under subsection (a); and 

9 ‘‘(B) the long-term costs for increases in 

10 lending levels beyond those requested to be au11 thorized, based on increments of $10,000,000 

12 or such other levels as the Secretary considers 

13 appropriate. 

14 ‘‘(3) SUBMISSION TO CONGRESS.—The Sec15 retary shall submit to the Committees on Agri16 culture and Appropriations of the House of Rep17 resentatives and the Committees on Agriculture, Nu18 trition, and Forestry and Appropriations of the Sen19 ate reports containing the long-term cost projections 

20 for the 3-year period beginning with fiscal year 1983 

21 and each 3-year period thereafter at the time the re22 quests for authorizations for those periods are sub23 mitted to Congress. 

24 ‘‘(c) LOW-INCOME, LIMITED-RESOURCE BOR25 ROWERS.— 


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1 ‘‘(1) RESERVE.—Notwithstanding any other 

2 provision of law, not less than 25 percent of the 

3 loans for farm ownership purposes for each fiscal 

4 year under this subtitle shall be for low-income, lim5 ited-resource borrowers. 

6 ‘‘(2) NOTIFICATION.—The Secretary shall pro7 vide notification to farm borrowers under this sub8 title in the normal course of loan making and loan 

9 servicing operations, of the provisions of this subtitle 

10 relating to low-income, limited-resource borrowers 

11 and the procedures by which persons may apply for 

12 loans under the low-income, limited-resource bor13 rower program.’’. 

14 Subtitle B—Miscellaneous 

15 SEC. 5101. STATE AGRICULTURAL MEDIATION PROGRAMS. 

16 Section 506 of the Agricultural Credit Act of 1987 

17 (7 U.S.C. 5106) is amended by striking ‘‘2015’’ and in18 serting ‘‘2018’’. 

19 SEC. 5102. LOANS TO PURCHASERS OF HIGHLY 

20 FRACTIONATED LAND. 

21 (a) IN GENERAL.—The first sentence of Public Law 

22 91–229 (25 U.S.C. 488) is amended— 

23 (1) in subsection (a), in the first sentence, by 

24 striking ‘‘loans from’’ and all that follows through 

25 ‘‘1929)’’ and inserting ‘‘direct loans in a manner 


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1 consistent with direct loans pursuant to chapter 4 of 

2 subtitle A of the Consolidated Farm and Rural De3 velopment Act’’; 

4 (2) in subsection (b)(1)— 

5 (A) by striking ‘‘pursuant to section 205(c) 

6 of the Indian Land Consolidation Act (25 

7 U.S.C. 2204(c))’’; and 

8 (B) by inserting ‘‘or to intermediaries in 

9 order to establish revolving loan funds for the 

10 purchase of highly fractionated land under that 

11 section’’ before the period at the end; and 

12 (3) by adding at the end the following: 

13 ‘‘(c) CONSULTATION REQUIRED.—In determining 

14 regulations and procedures to define eligible purchasers of 

15 highly fractionated land under this section, the Secretary 

16 of Agriculture shall consult with the Secretary of the Inte17 rior.’’. 

18 SEC. 5103. REMOVAL OF DUPLICATIVE APPRAISALS. 

19 Notwithstanding any other law (including regula20 tions), in making loans under the first section of Public 

21 Law 91–229 (25 U.S.C. 488), borrowers who are Indian 

22 tribes, members of Indian tribes, or tribal corporations 

23 shall only be required to obtain 1 appraisal under an ap24 praisal standard recognized as of the date of enactment 


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1 of this Act by the Secretary or the Secretary of the Inte2 rior. 

3 SEC. 5104. COMPENSATION DISCLOSURE BY FARM CREDIT 

4 SYSTEM INSTITUTIONS. 

5 (a) FINDINGS.—Congress finds that— 

6 (1) the reasonable disclosure to stockholders by 

7 Farm Credit System institutions regarding the com8 pensation of Farm Credit System institution senior 

9 officers is beneficial to stockholders’ understanding 

10 of the operation of their institutions; 

11 (2) transparency regarding compensation prac12 tices reinforces the cooperative nature of Farm 

13 Credit System institutions; 

14 (3) the unique cooperative structure of the 

15 Farm Credit System should be considered when pro16 mulgating rules; 

17 (4) the participation of stockholders in the elec18 tion of the boards of directors of Farm Credit Sys19 tem institutions provides stockholders the oppor20 tunity to participate in the management of their in21 stitutions; 

22 (5) as representatives of stockholders, the 

23 boards of directors of Farm Credit System institu24 tions importantly establish and oversee the com25 pensation practices of Farm Credit System instituVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00587 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 tions to ensure the safe and sound operation of 

2 those institutions; and 

3 (6) any regulation should strengthen and not 

4 hinder the ability of Farm Credit System boards of 

5 directors to oversee compensation practices. 

6 (b) IMPLEMENTATION.—Not later than 60 days after 

7 the date of enactment of this Act, the Farm Credit Admin8 istration shall review its rules to reflect Congressional in9 tent that a primary responsibility of the boards of direc10 tors of Farm Credit System institutions, as elected rep11 resentatives of their stockholders, is to oversee compensa12 tion practices. 

13 TITLE VI—RURAL 

14 DEVELOPMENT 

15 Subtitle A—Reorganization of the 

16 Consolidated Farm and Rural 

17 Development Act 

18 SEC. 6001. REORGANIZATION OF THE CONSOLIDATED FARM 

19 AND RURAL DEVELOPMENT ACT. 

20 Title III of the Agricultural Act of 1961 (7 U.S.C. 

21 1921 et seq.) is amended to read as follows: 


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1 ‘‘TITLE III—AGRICULTURAL 

2 CREDIT 

3 ‘‘SEC. 3001. SHORT TITLE; TABLE OF CONTENTS. 

4 ‘‘(a) SHORT TITLE.—This title may be cited as the 

5 ‘Consolidated Farm and Rural Development Act’. 

6 ‘‘(b) TABLE OF CONTENTS.—The table of contents 

7 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. 


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‘‘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. 


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‘‘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. 

1 ‘‘SEC. 3002. DEFINITIONS. 

2 ‘‘In this title (unless the context otherwise requires): 

3 ‘‘(1) ABLE TO OBTAIN CREDIT ELSEWHERE.— 

4 The term ‘able to obtain credit elsewhere’ means 


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1 able to obtain a loan from a production credit asso2 ciation, a Federal land bank, or other responsible co3 operative or private credit source (or, in the case of 

4 a borrower under section 3106, the borrower may be 

5 able to obtain a loan under section 3101) at reason6 able rates and terms, taking into consideration pre7 vailing private and cooperative rates and terms in 

8 the community in or near which the applicant re9 sides for loans for similar purposes and periods of 

10 time. 

11 ‘‘(2) AGRICULTURAL CREDIT INSURANCE

12 FUND.—The term ‘Agricultural Credit Insurance 

13 Fund’ means the fund established under section 

14 3401. 

15 ‘‘(3) APPROVED LENDER.—The term ‘approved 

16 lender’ means— 

17 ‘‘(A) a lender approved prior to October 

18 28, 1992, by the Secretary under the approved 

19 lender program established by exhibit A to sub20 part B of part 1980 of title 7, Code of Federal 

21 Regulations (as in effect on January 1, 1991); 

22 or 

23 ‘‘(B) a lender certified under section 3909. 

24 ‘‘(4) AQUACULTURE.—The term ‘aquaculture’ 

25 means the culture or husbandry of aquatic animals 


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1 or plants by private industry for commercial pur2 poses, including the culture and growing of fish by 

3 private industry for the purpose of creating or aug4 menting publicly owned and regulated stocks of fish. 

5 ‘‘(5) BEGINNING FARMER.—The term ‘begin6 ning farmer’ has the meaning given the term by the 

7 Secretary. 

8 ‘‘(6) BORROWER.— 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the term ‘borrower’ means 

11 an individual or entity who has an outstanding 

12 obligation to the Secretary under any loan 

13 made or guaranteed under this title, without re14 gard to whether the loan has been accelerated. 

15 ‘‘(B) EXCLUSIONS.—The term ‘borrower’ 

16 does not include an individual or entity all of 

17 whose loans and accounts have been foreclosed 

18 on or liquidated, voluntarily or otherwise. 

19 ‘‘(7) COUNTY COMMITTEE.—The term ‘county 

20 committee’ means the appropriate county committee 

21 established under section 8(b)(5) of the Soil Con22 servation and Domestic Allotment Act (16 U.S.C. 

23 590h(b)(5)). 

24 ‘‘(8) DEBT FORGIVENESS.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘debt forgiveness’ 

3 means reducing or terminating a loan made or 

4 guaranteed under this title, in a manner that 

5 results in a loss to the Secretary, through— 

6 ‘‘(i) writing down or writing off a loan 

7 under section 3411; 

8 ‘‘(ii) compromising, adjusting, reduc9 ing, or charging-off a debt or claim under 

10 section 3903; 

11 ‘‘(iii) paying a loss on a guaranteed 

12 loan under this title; or 

13 ‘‘(iv) discharging a debt as a result of 

14 bankruptcy. 

15 ‘‘(B) LOAN RESTRUCTURING.—The term 

16 ‘debt forgiveness’ does not include consolida17 tion, rescheduling, reamortization, or deferral. 

18 ‘‘(9) DEPARTMENT.—The term ‘Department’ 

19 means the Department of Agriculture. 

20 ‘‘(10) DIRECT LOAN.—The term ‘direct loan’ 

21 means a loan made by the Secretary from appro22 priated funds. 

23 ‘‘(11) ENTITY.—The term ‘entity’ means a cor24 poration, farm cooperative, partnership, joint operVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00594 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 ation, governmental entity, or other legal organiza2 tion, as determined by the Secretary. 

3 ‘‘(12) FARM.—The term ‘farm’ means an oper4 ation involved in— 

5 ‘‘(A) the production of an agricultural 

6 commodity; 

7 ‘‘(B) ranching; or 

8 ‘‘(C) aquaculture, in a controlled environ9 ment. 

10 ‘‘(13) FARMER.—The term ‘farmer’ means an 

11 individual or entity engaged primarily and directly 

12 in— 

13 ‘‘(A) the production of an agricultural 

14 commodity; 

15 ‘‘(B) ranching; or 

16 ‘‘(C) aquaculture, in a controlled environ17 ment. 

18 ‘‘(14) FARMER PROGRAM LOAN.—The term 

19 ‘farmer program loan’ means— 

20 ‘‘(A) a farm ownership loan under section 

21 3101; 

22 ‘‘(B) a conservation loan under section 

23 3103; 

24 ‘‘(C) an operating loan under section 3201; 


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1 ‘‘(D) an emergency loan under section 

2 3301; 

3 ‘‘(E) an economic emergency loan under 

4 section 202 of the Emergency Agricultural 

5 Credit Adjustment Act of 1978 (7 U.S.C. prec. 

6 1961 note; Public Law 95–334); 

7 ‘‘(F) a loan for a farm service building 

8 under section 502 of the Housing Act of 1949 

9 (42 U.S.C. 1472); 

10 ‘‘(G) an economic opportunity loan under 

11 section 602 of the Economic Opportunity Act of 

12 1964 (Public Law 88–452; 42 U.S.C. 2942 

13 note) (as it existed before the amendment made 

14 by section 683(a) of the Omnibus Budget Rec15 onciliation Act of 1981 (Public Law 97–35; 95 

16 Stat. 519)); 

17 ‘‘(H) a softwood timber loan under section 

18 608 of the Agricultural Programs Adjustment 

19 Act of 1984 (7 U.S.C. 1981 note; Public Law 

20 98–258); or 

21 ‘‘(I) any other loan described in section 

22 343(a)(10) of this title (as it existed before the 

23 amendment made by section 2 of the Agri24 culture Reform, Food, and Jobs Act of 2013) 


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1 that is outstanding on the date of enactment of 

2 that Act. 

3 ‘‘(15) FARM SERVICE AGENCY.—The term 

4 ‘Farm Service Agency’ means the offices of the 

5 Farm Service Agency to which the Secretary dele6 gates responsibility to carry out this title. 

7 ‘‘(16) GOVERNMENTAL ENTITY.—The term 

8 ‘governmental entity’ means any agency of a State 

9 or a unit of local government of a State, or subdivi10 sion thereof. 

11 ‘‘(17) GUARANTEE.—The term ‘guarantee’ 

12 means guaranteeing the payment of a loan origi13 nated, held, and serviced by a private financial agen14 cy, or lender, approved by the Secretary. 

15 ‘‘(18) HIGHLY ERODIBLE LAND.—The term 

16 ‘highly erodible land’ has the meaning given the 

17 term in section 1201(a) of the Food Security Act of 

18 1985 (16 U.S.C. 3801(a)). 

19 ‘‘(19) HOMESTEAD RETENTION.—The term 

20 ‘homestead retention’ means homestead retention as 

21 authorized under section 3414. 

22 ‘‘(20) INDIAN TRIBE.—The term ‘Indian tribe’ 

23 means a Federal or State-recognized Indian tribe or 

24 other federally recognized Indian tribal group (in25 cluding a Tribal College or University, as defined in 


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1 section 316(b) of the Higher Education Act of 1965 

2 (20 U.S.C. 1059c(b)). 

3 ‘‘(21) LOAN SERVICE PROGRAM.—The term 

4 ‘loan service program’ means, with respect to a 

5 farmer program loan borrower, a primary loan serv6 ice program or a homestead retention program. 

7 ‘‘(22) NATURAL OR MAJOR DISASTER OR EMER8 GENCY.—The term ‘natural or major disaster or 

9 emergency’ means— 

10 ‘‘(A) a disaster due to nonmanmade causes 

11 declared by the Secretary; or 

12 ‘‘(B) a major disaster or emergency des13 ignated by the President under the Robert T. 

14 Stafford Disaster Relief and Emergency Assist15 ance Act (42 U.S.C. 5121 et seq.). 

16 ‘‘(23) PRIMARY LOAN SERVICE PROGRAM.—The 

17 term ‘primary loan service program’ means, with re18 spect to a farmer program loan— 

19 ‘‘(A) loan consolidation, rescheduling, or 

20 reamortization; 

21 ‘‘(B) interest rate reduction, including the 

22 use of the limited resource program; 

23 ‘‘(C) loan restructuring, including deferral, 

24 set aside, or writing down of the principal or 


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1 accumulated interest charges, or both, of the 

2 loan; or 

3 ‘‘(D) any combination of actions described 

4 in subparagraphs (A), (B), and (C). 

5 ‘‘(24) PRIME FARMLAND.—The term ‘prime 

6 farmland’ means prime farmland and unique farm7 land (as defined in subsections (a) and (b) of section 

8 657.5 of title 7, Code of Federal Regulations 

9 (1980)). 

10 ‘‘(25) PROJECT.—For purposes of section 

11 3501, the term ‘project’ includes a facility providing 

12 central service or a facility serving an individual 

13 property, or both. 

14 ‘‘(26) QUALIFIED BEGINNING FARMER.—The 

15 term ‘qualified beginning farmer’ means an appli16 cant, regardless of whether the applicant is partici17 pating in a program under section 3107, who— 

18 ‘‘(A) is eligible for assistance under sub19 title A; 

20 ‘‘(B) has not operated a farm, or has oper21 ated a farm for not more than 10 years; 

22 ‘‘(C) in the case of a cooperative, corpora23 tion, partnership, or joint operation, has mem24 bers, stockholders, partners, or joint operators 


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1 who are all related to each other by blood or 

2 marriage; 

3 ‘‘(D) in the case of a farmer who is the 

4 owner and operator of a farm— 

5 ‘‘(i) in the case of a loan made to an 

6 individual, individually or with the imme7 diate family of the applicant— 

8 ‘‘(I) materially and substantially 

9 participates in the operation of the 

10 farm; and 

11 ‘‘(II) provides substantial day-to12 day labor and management of the 

13 farm, consistent with the practices in 

14 the State or county in which the farm 

15 is located; or 

16 ‘‘(ii)(I) in the case of a loan made to 

17 a cooperative, corporation, partnership, or 

18 joint operation, has members, stockholders, 

19 partners, or joint operators who materially 

20 and substantially participate in the oper21 ation of the farm; and 

22 ‘‘(II) in the case of a loan made to a 

23 corporation, has stockholders who all qual24 ify individually as beginning farmers; 


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1 ‘‘(E) in the case of an applicant seeking to 

2 become an owner and operator of a farm— 

3 ‘‘(i) in the case of a loan made to an 

4 individual, individually or with the imme5 diate family of the applicant, will— 

6 ‘‘(I) materially and substantially 

7 participate in the operation of the 

8 farm; and 

9 ‘‘(II) provide substantial day-to10 day labor and management of the 

11 farm, consistent with the practices in 

12 the State or county in which the farm 

13 is located; or 

14 ‘‘(ii)(I) in the case of a loan made to 

15 a cooperative, corporation, partnership, or 

16 joint operation, will have members, stock17 holders, partners, or joint operators who 

18 will materially and substantially participate 

19 in the operation of the farm; and 

20 ‘‘(II) in the case of a loan made to a 

21 corporation, has stockholders who will all 

22 qualify individually as beginning farmers; 

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1 agement programs as the Secretary may re2 quire; 

3 ‘‘(G)(i) does not own farm land; or 

4 ‘‘(ii) directly or through interests in family 

5 farm corporations, owns farm land, the aggre6 gate acreage of which does not exceed 30 per7 cent of the average acreage of the farms, as the 

8 case may be, in the county in which the farm 

9 operations of the applicant are located, as re10 ported in the most recent census of agriculture 

11 taken in accordance with the Census of Agri12 culture Act of 1997 (7 U.S.C. 2204g et seq.), 

13 except that this subparagraph shall not apply to 

14 a loan made or guaranteed under chapter 2 of 

15 subtitle A; and 

16 ‘‘(H) demonstrates that the available re17 sources of the applicant and any spouse of the 

18 applicant are not sufficient to enable the appli19 cant to farm on a viable scale. 

20 ‘‘(27) RECREATIONAL PURPOSE.—For purposes 

21 of section 3410, the term ‘recreational purpose’ has 

22 the meaning provided by the Secretary, but shall in23 clude hunting. 

24 ‘‘(28) RURAL AND RURAL AREA.— 


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1 ‘‘(A) IN GENERAL.—Subject to any deter2 mination made under subparagraph (B), the 

3 terms ‘rural’ and ‘rural area’ mean any area 

4 other than— 

5 ‘‘(i) a city or town that has a popu6 lation of greater than 50,000 inhabitants; 

7 and 

8 ‘‘(ii) any urbanized area contiguous 

9 and adjacent to a city or town described in 

10 clause (i). 

11 ‘‘(B) DETERMINATION OF AREAS RURAL IN

12 CHARACTER.— 

13 ‘‘(i) IN GENERAL.—If part of an area 

14 described in subparagraph (A)(ii) was eli15 gible under the definitions of the terms 

16 ‘rural’ and ‘rural area’ in section 343 (as 

17 in effect on the day before the date of en18 actment of the Agriculture Reform, Food, 

19 and Jobs Act of 2013) for community fa20 cility, water and waste disposal, and 

21 broadband programs, that area shall re22 main eligible unless the Secretary, acting 

23 through the Under Secretary for Rural De24 velopment (referred to in this subpara25 graph as the ‘Under Secretary’), deterVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00603 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 mines the area is no longer rural, based on 

2 the criteria described in clause (iii). 

3 ‘‘(ii) OTHER AREAS.—On petition of a 

4 unit of local government in an urbanized 

5 area described in subparagraph (A)(ii), or 

6 on the initiative of the Under Secretary, 

7 the Under Secretary may determine that 

8 part of an area is rural, based on the cri9 teria described in clause (iii). 

10 ‘‘(iii) CRITERIA.—In making a deter11 mination under clause (i), the Under Sec12 retary shall consider— 

13 ‘‘(I) population density; 

14 ‘‘(II) economic conditions, favor15 ing a rural determination for areas 

16 facing— 

17 ‘‘(aa) chronic unemployment 

18 in excess of statewide averages; 

19 ‘‘(bb) sudden loss of employ20 ment from natural disaster or the 

21 loss of a significant employer in 

22 the area; or 

23 ‘‘(cc) chronic poverty dem24 onstrated at the census block or 

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1 wide median household income; 

2 and 

3 ‘‘(III) commuting patterns, favor4 ing a rural determination for areas 

5 that can demonstrate higher propor6 tions of the population living and 

7 working in the area. 

8 ‘‘(iv) ADMINISTRATION.—In carrying 

9 out this subparagraph, the Under Sec10 retary shall— 

11 ‘‘(I) not delegate the authority to 

12 carry out this subparagraph; 

13 ‘‘(II) not make a determination 

14 under clause (i) until the date that is 

15 3 years after the date of enactment of 

16 the Agriculture Reform, Food, and 

17 Jobs Act of 2013; 

18 ‘‘(III) consult with the applicable 

19 rural development State or regional 

20 director of the Department and the 

21 Governor of the respective State; 

22 ‘‘(IV) provide an opportunity to 

23 appeal to the Under Secretary a de24 termination made under this subpara25 graph; 


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1 ‘‘(V) release to the public notice 

2 of a petition filed or initiative of the 

3 Under Secretary under this subpara4 graph not later than 30 days after re5 ceipt of the petition or the commence6 ment of the initiative, as appropriate; 

7 ‘‘(VI) make a determination 

8 under this subparagraph not less than 

9 15 days, and not more than 60 days, 

10 after the release of the notice under 

11 subclause (V); and 

12 ‘‘(VII) submit to the Committee 

13 on Agriculture of the House of Rep14 resentatives and the Committee on 

15 Agriculture, Nutrition, and Forestry 

16 of the Senate an annual report on ac17 tions taken to carry out this subpara18 graph. 

19 ‘‘(v) HAWAII AND PUERTO RICO.— 

20 Notwithstanding any other provision of 

21 this subsection, within the areas of the 

22 County of Honolulu, Hawaii, and the Com23 monwealth of Puerto Rico, the Under Sec24 retary may designate any part of the areas 

25 as a rural area if the Under Secretary deVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00606 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 termines that the part is not urban in 

2 character, other than any area included in 

3 the Honolulu Census Designated Place or 

4 the San Juan Census Designated Place. 

5 ‘‘(C) EXCLUSIONS.—Notwithstanding any 

6 other provision of this paragraph, in deter7 mining which census blocks in an urbanized 

8 area are not in a rural area (as defined in this 

9 paragraph), the Secretary shall exclude any 

10 cluster of census blocks that would otherwise be 

11 considered not in a rural area only because the 

12 cluster is adjacent to not more than 2 census 

13 blocks that are otherwise considered not in a 

14 rural area under this paragraph. 

15 ‘‘(29) SEASONED DIRECT LOAN BORROWER.— 

16 The term ‘seasoned direct loan borrower’ means a 

17 borrower who could reasonably be expected to qual18 ify for commercial credit using criteria determined 

19 by the Secretary. 

20 ‘‘(30) SECRETARY.—The term ‘Secretary’ 

21 means the Secretary of Agriculture. 

22 ‘‘(31) SOCIALLY DISADVANTAGED FARMER.— 

23 The term ‘socially disadvantaged farmer’ means a 

24 farmer who is a member of a socially disadvantaged 

25 group. 


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1 ‘‘(32) SOCIALLY DISADVANTAGED GROUP.—The 

2 term ‘socially disadvantaged group’ means a group 

3 whose members have been subjected to racial, ethnic, 

4 or gender prejudice because of the identity of the 

5 members as members of a group without regard to 

6 the individual qualities of the members. 

7 ‘‘(33) SOLAR ENERGY.—The term ‘solar energy’ 

8 means energy derived from sources (other than fossil 

9 fuels) and technologies included in the Federal Non10 nuclear Energy Research and Development Act of 

11 1974 (42 U.S.C. 5901 et seq.). 

12 ‘‘(34) STATE.—The term ‘State’ means— 

13 ‘‘(A) in this title (other than subtitle A), 

14 each of the 50 States, the Commonwealth of 

15 Puerto Rico, the Virgin Islands, Guam, Amer16 ican Samoa, the Commonwealth of the North17 ern Mariana Islands, the Republic of the Mar18 shall Islands, the Federated States of Micro19 nesia, and the Republic of Palau; and 

20 ‘‘(B) in subtitle A, each of the 50 States, 

21 the Commonwealth of Puerto Rico, the Virgin 

22 Islands, Guam, American Samoa, the Common23 wealth of the Northern Mariana Islands, and, 

24 to the extent the Secretary determines it to be 

25 feasible and appropriate, the Republic of the 


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1 Marshall Islands, the Federated States of Mi2 cronesia, and the Republic of Palau. 

3 ‘‘(35) STATE BEGINNING FARMER PROGRAM.— 

4 The term ‘State beginning farmer program’ means 

5 any program that is— 

6 ‘‘(A) carried out by, or under contract 

7 with, a State; and 

8 ‘‘(B) designed to assist qualified beginning 

9 farmers in obtaining the financial assistance 

10 necessary to enter agriculture and establish via11 ble farming operations. 

12 ‘‘(36) VETERAN.—The term ‘veteran’ has the 

13 meaning given the term in section 101 of title 38, 

14 United States Code. 

15 ‘‘(37) WETLAND.—The term ‘wetland’ has the 

16 meaning given the term in section 1201(a) of the 

17 Food Security Act of 1985 (16 U.S.C. 3801(a)). 

18 ‘‘(38) WILDLIFE.—The term ‘wildlife’ means 

19 fish or wildlife (as defined in section 2(a) of the 

20 Lacey Act Amendments of 1981 (16 U.S.C. 

21 3371(a))). 


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1 ‘‘Subtitle B—Rural Development 

2 ‘‘CHAPTER 1—RURAL COMMUNITY 

3 PROGRAMS 

4 ‘‘SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN 

5 GUARANTEES, AND GRANTS. 

6 ‘‘(a) IN GENERAL.—The Secretary may make grants 

7 and loans and issue loan guarantees (including a guar8 antee of a loan financed by the net proceeds of a bond 

9 described in section 142(a) of the Internal Revenue Code 

10 of 1986) to eligible entities described in subsection (b) for 

11 projects in rural areas that primarily serve rural residents 

12 to provide for— 

13 ‘‘(1) the development, storage, treatment, puri14 fication, or distribution of water or the collection, 

15 treatment, or disposal of waste; and 

16 ‘‘(2) financial assistance and other aid in the 

17 planning of projects for purposes described in para18 graph (1). 

19 ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for as20 sistance described in subsection (a) are— 

21 ‘‘(1) associations (including corporations not 

22 operated for profit); 

23 ‘‘(2) Indian tribes; 

24 ‘‘(3) public and quasi-public agencies; and 


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1 ‘‘(4) in the case of a project to attach an indi2 vidual property in a rural area to a water system to 

3 alleviate a health risk, an individual. 

4 ‘‘(c) LOAN AND LOAN GUARANTEE REQUIRE5 MENTS.—In connection with loans made or guaranteed 

6 under this section, the Secretary shall require the appli7 cant— 

8 ‘‘(1) to certify in writing, and the Secretary 

9 shall determine, that the applicant is unable to ob10 tain credit elsewhere to finance the actual needs of 

11 the applicant at reasonable rates and terms, taking 

12 into consideration prevailing private and cooperative 

13 rates and terms in the community in or near which 

14 the applicant resides for loans for similar purposes 

15 and periods of time; and 

16 ‘‘(2) to furnish an appropriate written financial 

17 statement. 

18 ‘‘(d) GRANT AMOUNTS.— 

19 ‘‘(1) MAXIMUM.—Except as otherwise provided 

20 in this subsection, the amount of any grant made 

21 under this section shall not exceed 75 percent of the 

22 development cost of the project for which the grant 

23 is provided. 

24 ‘‘(2) GRANT RATE.—The Secretary shall estab25 lish the grant rate for each project in conformity 


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1 with regulations issued by the Secretary that shall 

2 provide for a graduated scale of grant rates that es3 tablish higher rates for projects in communities that 

4 have— 

5 ‘‘(A) lower community population; 

6 ‘‘(B) higher rates of outmigration; and 

7 ‘‘(C) lower income levels. 

8 ‘‘(3) LOCAL SHARE REQUIREMENTS.—Grants 

9 made under this section may be used to pay the 

10 local share requirements of another Federal grant11 in-aid program to the extent permitted under the 

12 law providing for the grant-in-aid program. 

13 ‘‘(e) SPECIAL GRANTS.— 

14 ‘‘(1) REVOLVING FUNDS FOR FINANCING

15 WATER AND WASTEWATER PROJECTS.— 

16 ‘‘(A) IN GENERAL.—The Secretary may 

17 make grants to qualified, nonprofit entities in 

18 rural areas to capitalize revolving funds for the 

19 purpose of providing financing to eligible enti20 ties for— 

21 ‘‘(i) predevelopment costs associated 

22 with proposed water and wastewater 

23 projects or with existing water and waste24 water systems; and 


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1 ‘‘(ii) short-term costs incurred for re2 placement equipment, small-scale extension 

3 services, or other small capital projects 

4 that are not part of the regular operations 

5 and maintenance activities of existing 

6 water and wastewater systems. 

7 ‘‘(B) MAXIMUM AMOUNT OF FINANCING.— 

8 The amount of financing made to an eligible 

9 entity under this paragraph shall not exceed— 

10 ‘‘(i) $100,000 for costs described in 

11 subparagraph (A)(i); and 

12 ‘‘(ii) $100,000 for costs described in 

13 subparagraph (A)(ii). 

14 ‘‘(C) TERM.—The term of financing pro15 vided to an eligible entity under this paragraph 

16 shall not exceed 10 years. 

17 ‘‘(D) ADMINISTRATION.—The Secretary 

18 shall limit the amount of grant funds that may 

19 be used by a grant recipient for administrative 

20 costs incurred under this paragraph. 

21 ‘‘(E) ANNUAL REPORT.—A nonprofit enti22 ty receiving a grant under this paragraph shall 

23 submit to the Secretary an annual report that 

24 describes the number and size of communities 

25 served and the type of financing provided. 


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1 ‘‘(F) AUTHORIZATION OF APPROPRIA2 TIONS.—There is authorized to be appropriated 

3 to carry out this paragraph $30,000,000 for 

4 each of fiscal years 2014 through 2018. 

5 ‘‘(2) EMERGENCY AND IMMINENT COMMUNITY

6 WATER ASSISTANCE PROGRAM.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 provide grants in accordance with this para9 graph to assist the residents of rural areas and 

10 small communities to secure adequate quan11 tities of safe water— 

12 ‘‘(i) after a significant decline in the 

13 quantity or quality of water available from 

14 the water supplies of the rural areas and 

15 small communities, or when such a decline 

16 is imminent; or 

17 ‘‘(ii) when repairs, partial replace18 ment, or significant maintenance efforts on 

19 established water systems would remedy— 

20 ‘‘(I) an acute or imminent short21 age of quality water; or 

22 ‘‘(II) a significant or imminent 

23 decline in the quantity or quality of 

24 water that is available. 


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1 ‘‘(B) PRIORITY.—In carrying out subpara2 graph (A), the Secretary shall— 

3 ‘‘(i) give priority to projects described 

4 in subparagraph (A)(i); and 

5 ‘‘(ii) provide at least 70 percent of all 

6 grants under this paragraph to those 

7 projects. 

8 ‘‘(C) ELIGIBILITY.—To be eligible to ob9 tain a grant under this paragraph, an applicant 

10 shall— 

11 ‘‘(i) be a public or private nonprofit 

12 entity; and 

13 ‘‘(ii) in the case of a grant made 

14 under subparagraph (A)(i), demonstrate to 

15 the Secretary that the decline referred to 

16 in that subparagraph occurred, or will 

17 occur, not later than 2 years after the date 

18 on which the application was filed for the 

19 grant. 

20 ‘‘(D) USES.— 

21 ‘‘(i) IN GENERAL.—Grants made 

22 under this paragraph may be used— 

23 ‘‘(I) for waterline extensions from 

24 existing systems, laying of new 

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1 nance, digging of new wells, equip2 ment replacement, and hook and tap 

3 fees; 

4 ‘‘(II) for any other appropriate 

5 purpose associated with developing 

6 sources of, treating, storing, or dis7 tributing water; 

8 ‘‘(III) to assist communities in 

9 complying with the requirements of 

10 the Federal Water Pollution Control 

11 Act (33 U.S.C. 1251 et seq.) or the 

12 Safe Drinking Water Act (42 U.S.C. 

13 300f et seq.); and 

14 ‘‘(IV) to provide potable water to 

15 communities through other means. 

16 ‘‘(ii) JOINT PROPOSALS.— 

17 ‘‘(I) IN GENERAL.—Subject to 

18 the restrictions in subparagraph (E), 

19 nothing in this paragraph precludes 

20 rural communities from submitting 

21 joint proposals for emergency water 

22 assistance. 

23 ‘‘(II) CONSIDERATION OF RE24 STRICTIONS.—The restrictions in sub25 paragraph (E) shall be considered in 


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1 the aggregate, depending on the num2 ber of communities involved. 

3 ‘‘(E) RESTRICTIONS.— 

4 ‘‘(i) MAXIMUM INCOME.—No grant 

5 provided under this paragraph shall be 

6 used to assist any rural area or community 

7 that has a median household income in ex8 cess of the State nonmetropolitan median 

9 household income according to the most re10 cent decennial census of the United States. 

11 ‘‘(ii) SET-ASIDE FOR SMALLER COM12 MUNITIES.—Not less than 50 percent of 

13 the funds allocated under this paragraph 

14 shall be allocated to rural communities 

15 with populations that do not exceed 3,000 

16 inhabitants. 

17 ‘‘(F) MAXIMUM GRANTS.—Grants made 

18 under this paragraph may not exceed— 

19 ‘‘(i) in the case of each grant made 

20 under subparagraph (A)(i), $500,000; and 

21 ‘‘(ii) in the case of each grant made 

22 under subparagraph (A)(ii), $150,000. 

23 ‘‘(G) FULL FUNDING.—Subject to sub24 paragraph (F), grants under this paragraph 

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1 cent of the costs of the projects conducted 

2 under this paragraph. 

3 ‘‘(H) APPLICATION.— 

4 ‘‘(i) NATIONALLY COMPETITIVE AP5 PLICATION PROCESS.— 

6 ‘‘(I) IN GENERAL.—The Sec7 retary shall develop a nationally com8 petitive application process to award 

9 grants under this paragraph. 

10 ‘‘(II) REQUIREMENTS.—The 

11 process shall include criteria for evalu12 ating applications, including popu13 lation, median household income, and 

14 the severity of the decline, or immi15 nent decline, in the quantity or qual16 ity of water. 

17 ‘‘(ii) TIMING OF REVIEW OF APPLICA18 TIONS.— 

19 ‘‘(I) SIMPLIFIED APPLICATION.— 

20 The application process developed by 

21 the Secretary under clause (i) shall in22 clude a simplified application form 

23 that will permit expedited consider24 ation of an application for a grant 

25 filed under this paragraph. 


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1 ‘‘(II) PRIORITY REVIEW.—In 

2 processing applications for any water 

3 or waste grant or loan authorized 

4 under this section, the Secretary shall 

5 afford priority processing to an appli6 cation for a grant under this para7 graph to the extent funds will be 

8 available for an award on the applica9 tion at the conclusion of priority proc10 essing. 

11 ‘‘(III) TIMING.—The Secretary 

12 shall, to the maximum extent prac13 ticable, review and act on an applica14 tion under this paragraph not later 

15 than 60 days after the date on which 

16 the application is submitted to the 

17 Secretary. 

18 ‘‘(I) FUNDING.— 

19 ‘‘(i) RESERVATION.— 

20 ‘‘(I) IN GENERAL.—For each fis21 cal year, not less than 3 nor more 

22 than 5 percent of the total amount 

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1 served for grants under this para2 graph. 

3 ‘‘(II) RELEASE.—Funds reserved 

4 under subclause (I) for a fiscal year 

5 shall be reserved only until July 1 of 

6 the fiscal year. 

7 ‘‘(ii) AUTHORIZATION OF APPROPRIA8 TIONS.—In addition to funds made avail9 able under clause (i), there is authorized to 

10 be appropriated to carry out this para11 graph $35,000,000 for each of fiscal years 

12 2014 through 2018. 

13 ‘‘(3) WATER AND WASTE FACILITY LOANS AND

14 GRANTS TO ALLEVIATE HEALTH RISKS.— 

15 ‘‘(A) DEFINITION OF COOPERATIVE.—In 

16 this paragraph, the term ‘cooperative’ means a 

17 cooperative formed specifically for the purpose 

18 of the installation, expansion, improvement, or 

19 operation of water supply or waste disposal fa20 cilities or systems. 

21 ‘‘(B) LOANS AND GRANTS TO PERSONS

22 OTHER THAN INDIVIDUALS.— 

23 ‘‘(i) IN GENERAL.—The Secretary 

24 shall make or guarantee loans and make 

25 grants to provide for the conservation, deVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00620 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 velopment, use, and control of water (in2 cluding the extension or improvement of 

3 existing water supply systems) and the in4 stallation or improvement of drainage or 

5 waste disposal facilities and essential com6 munity facilities, including necessary re7 lated equipment, training, and technical 

8 assistance to— 

9 ‘‘(I) rural water supply corpora10 tions, cooperatives, or similar entities; 

11 ‘‘(II) Indian tribes on Federal or 

12 State reservations and other federally 

13 recognized Indian tribes; 

14 ‘‘(III) rural or native villages in 

15 the State of Alaska; 

16 ‘‘(IV) native tribal health consor17 tiums; 

18 ‘‘(V) public agencies; and 

19 ‘‘(VI) Native Hawaiian Home 

20 Lands. 

21 ‘‘(ii) ELIGIBLE PROJECTS.—Loans 

22 and grants described in clause (i) shall be 

23 available only to provide the described 

24 water and waste facilities and services to 

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1 cant health risks, as determined by the 

2 Secretary, due to the fact that a significant 

3 proportion of the residents of the commu4 nity do not have access to, or are not 

5 served by, adequate affordable— 

6 ‘‘(I) water supply systems; or 

7 ‘‘(II) waste disposal facilities. 

8 ‘‘(iii) MATCHING REQUIREMENTS.— 

9 For entities described under subclauses 

10 (III), (IV), or (V) of clause (i) to be eligi11 ble to receive a grant for water supply sys12 tems or waste disposal facilities, the State 

13 in which the project will occur shall pro14 vide 25 percent in matching funds from 

15 non-Federal sources. 

16 ‘‘(iv) CERTAIN AREAS TARGETED.— 

17 ‘‘(I) IN GENERAL.—Loans and 

18 grants under clause (i) shall be made 

19 only if the loan or grant funds will be 

20 used primarily to provide water or 

21 waste services, or both, to residents of 

22 a county or census area— 

23 ‘‘(aa) the per capita income 

24 of the residents of which is not 

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1 tional average per capita income, 

2 as determined by the Department 

3 of Commerce; and 

4 ‘‘(bb) the unemployment 

5 rate of the residents of which is 

6 not less than 125 percent of the 

7 national average unemployment 

8 rate, as determined by the Bu9 reau of Labor Statistics. 

10 ‘‘(II) EXCEPTIONS.—Notwith11 standing subclause (I), loans and 

12 grants under clause (i) may also be 

13 made if the loan or grant funds will 

14 be used primarily to provide water or 

15 waste services, or both, to residents 

16 of— 

17 ‘‘(aa) a rural area that was 

18 recognized as a colonia as of Oc19 tober 1, 1989; or 

20 ‘‘(bb) an area described 

21 under subclause (II), (III), or 

22 (VI) of clause (i). 

23 ‘‘(C) LOANS AND GRANTS TO INDIVID24 UALS.— 


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1 ‘‘(i) IN GENERAL.—The Secretary 

2 shall make or guarantee loans and make 

3 grants to individuals who reside in a com4 munity described in subparagraph (B)(i) 

5 for the purpose of extending water supply 

6 and waste disposal systems, connecting the 

7 systems to the residences of the individ8 uals, or installing plumbing and fixtures 

9 within the residences of the individuals to 

10 facilitate the use of the water supply and 

11 waste disposal systems. 

12 ‘‘(ii) INTEREST.—Loans described in 

13 clause (i) shall be at a rate of interest no 

14 greater than the Federal Financing Bank 

15 rate on loans of a similar term at the time 

16 the loans are made. 

17 ‘‘(iii) AMORTIZATION.—The repay18 ment of loans described in clause (i) shall 

19 be amortized over the expected life of the 

20 water supply or waste disposal system to 

21 which the residence of the borrower will be 

22 connected. 

23 ‘‘(iv) MANNER IN WHICH LOANS AND

24 GRANTS ARE TO BE MADE.—Loans and 


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1 grants to individuals under clause (i) shall 

2 be made— 

3 ‘‘(I) directly to the individuals by 

4 the Secretary; or 

5 ‘‘(II) to the individuals through 

6 the rural water supply corporation, 

7 cooperative, or similar entity, or pub8 lic agency, providing the water supply 

9 or waste disposal services, pursuant to 

10 regulations issued by the Secretary. 

11 ‘‘(D) PREFERENCE.—The Secretary shall 

12 give preference in the awarding of loans and 

13 grants under subparagraphs (B) and (C) to en14 tities described in clause (i) of subparagraph 

15 (B) that propose to provide water supply or 

16 waste disposal services to the residents of In17 dian reservations, rural or native villages in the 

18 State of Alaska, Native Hawaiian Home Lands, 

19 and those rural subdivisions commonly referred 

20 to as colonias, that are characterized by sub21 standard housing, inadequate roads and drain22 age, and a lack of adequate water or waste fa23 cilities. 

24 ‘‘(E) RELATIONSHIP TO OTHER AUTHOR25 ITY.—Notwithstanding any other provision of 


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1 law, the head of any Federal agency may enter 

2 into interagency agreements with Federal, 

3 State, tribal, and other entities to share re4 sources, including transferring and accepting 

5 funds, equipment, or other supplies, to carry 

6 out the activities described in this paragraph. 

7 ‘‘(F) AUTHORIZATION OF APPROPRIA8 TIONS.—There are authorized to be appro9 priated— 

10 ‘‘(i) for grants under this paragraph, 

11 $60,000,000 for each fiscal year; 

12 ‘‘(ii) for loans under this paragraph, 

13 $60,000,000 for each fiscal year; and 

14 ‘‘(iii) in addition to grants provided 

15 under clause (i), for grants under this sec16 tion to benefit Indian tribes, $20,000,000 

17 for each fiscal year. 

18 ‘‘(4) SOLID WASTE MANAGEMENT GRANTS.— 

19 ‘‘(A) IN GENERAL.—The Secretary may 

20 make grants to nonprofit organizations for the 

21 provision of regional technical assistance to 

22 local and regional governments and related 

23 agencies for the purpose of reducing or elimi24 nating pollution of water resources and improvVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00626 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 ing the planning and management of solid 

2 waste disposal facilities in rural areas. 

3 ‘‘(B) TECHNICAL ASSISTANCE GRANT

4 AMOUNTS.—Grants made under this paragraph 

5 for the provision of technical assistance shall be 

6 made for 100 percent of the cost of the tech7 nical assistance. 

8 ‘‘(C) AUTHORIZATION OF APPROPRIA9 TIONS.—There is authorized to be appropriated 

10 to carry out this paragraph $10,000,000 for 

11 each of fiscal years 2014 through 2018. 

12 ‘‘(5) RURAL WATER AND WASTEWATER TECH13 NICAL ASSISTANCE AND TRAINING PROGRAMS.— 

14 ‘‘(A) GRANTS TO NONPROFITS.— 

15 ‘‘(i) IN GENERAL.—The Secretary 

16 may make grants to nonprofit organiza17 tions to enable the organizations to provide 

18 to associations that provide water and 

19 wastewater services in rural areas technical 

20 assistance and training— 

21 ‘‘(I) to identify, and evaluate al22 ternative solutions to, problems relat23 ing to the obtaining, storage, treat24 ment, purification, or distribution of 


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1 water or the collection, treatment, or 

2 disposal of waste in rural areas; 

3 ‘‘(II) to prepare applications to 

4 receive financial assistance for any 

5 purpose specified in subsection (a)(1) 

6 from any public or private source; and 

7 ‘‘(III) to improve the operation 

8 and maintenance practices at any ex9 isting works for the storage, treat10 ment, purification, or distribution of 

11 water or the collection, treatment, or 

12 disposal of waste in rural areas. 

13 ‘‘(ii) SELECTION PRIORITY.—In se14 lecting recipients of grants to be made 

15 under clause (i), the Secretary shall give 

16 priority to nonprofit organizations that 

17 have experience in providing the technical 

18 assistance and training described in clause 

19 (i) to associations serving rural areas in 

20 which— 

21 ‘‘(I) residents have low income; 

22 and 

23 ‘‘(II) water supply systems or 

24 waste facilities are unhealthful. 

25 ‘‘(iii) FUNDING.— 


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1 ‘‘(I) IN GENERAL.—Except as 

2 provided in subclause (II), not less 

3 than 1 nor more than 3 percent of 

4 any funds made available to carry out 

5 water and waste disposal projects de6 scribed in subsection (a) for any fiscal 

7 year shall be reserved for grants 

8 under this paragraph. 

9 ‘‘(II) EXCEPTION.—The min10 imum amount specified in subclause 

11 (I) shall not apply if the aggregate 

12 amount of grant funds requested by 

13 applications that qualify for grants re14 ceived by the Secretary from eligible 

15 nonprofit organizations for the fiscal 

16 year totals less than 1 percent of 

17 those funds. 

18 ‘‘(B) RURAL WATER AND WASTEWATER

19 CIRCUIT RIDER PROGRAM.— 

20 ‘‘(i) IN GENERAL.—The Secretary 

21 shall continue a national rural water and 

22 wastewater circuit rider program that— 

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1 ducted before January 1, 2012, as de2 termined by the Secretary; and 

3 ‘‘(II) received funding from the 

4 Secretary, acting through the Admin5 istrator of the Rural Utilities Service. 

6 ‘‘(ii) AUTHORIZATION OF APPROPRIA7 TIONS.—There is authorized to be appro8 priated to carry out this subparagraph 

9 $25,000,000 for fiscal year 2014 and each 

10 fiscal year thereafter. 

11 ‘‘(6) SEARCH PROGRAM.— 

12 ‘‘(A) IN GENERAL.—The Secretary may es13 tablish a Special Evaluation Assistance for 

14 Rural Communities and Households 

15 (SEARCH) program to make predevelopment 

16 planning grants for feasibility studies, design 

17 assistance, and technical assistance, to finan18 cially distressed communities in rural areas 

19 with populations of 2,500 or fewer inhabitants 

20 for water and waste disposal projects described 

21 in this section. 

22 ‘‘(B) TERMS.— 

23 ‘‘(i) DOCUMENTATION.—With respect 

24 to grants made under this paragraph, the 


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1 Secretary shall require the lowest quantity 

2 of documentation practicable. 

3 ‘‘(ii) MATCHING.—Notwithstanding 

4 any other provision of this section, the Sec5 retary may fund up to 100 percent of the 

6 eligible costs of grants provided under this 

7 paragraph, as determined by the Secretary. 

8 ‘‘(iii) FUNDING.—The Secretary may 

9 use not more than 4 percent of the total 

10 amount of funds made available for a fiscal 

11 year for water, waste disposal, and essen12 tial community facility activities under this 

13 chapter to carry out this paragraph. 

14 ‘‘(C) RELATIONSHIP TO OTHER AUTHOR15 ITY.— 

16 ‘‘(i) IN GENERAL.—The funds and au17 thorities provided under this paragraph are 

18 in addition to any other funds or authori19 ties the Secretary may have to carry out 

20 activities described in this section. 

21 ‘‘(ii) AUTHORIZED ACTIVITIES.—The 

22 Secretary may furnish financial assistance 

23 or other aid in planning projects for the 

24 purposes described in subparagraph (A). 


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1 ‘‘(f) PRIORITY.—In making grants and loans, and 

2 guaranteeing loans, for water, wastewater, and waste dis3 posal projects under this section, the Secretary shall give 

4 priority consideration to projects that serve rural commu5 nities that, as determined by the Secretary— 

6 ‘‘(1) have a population of less than 5,500 per7 manent residents; 

8 ‘‘(2) have a community water, wastewater, or 

9 waste disposal system that— 

10 ‘‘(A) is experiencing— 

11 ‘‘(i) an unanticipated reduction in the 

12 quality of water, the quantity of water, or 

13 the ability to deliver water; or 

14 ‘‘(ii) some other deterioration in the 

15 supply of water to the community; 

16 ‘‘(B) is not adequate to meet the needs of 

17 the community; and 

18 ‘‘(C) requires immediate corrective action; 

19 ‘‘(3) are experiencing outmigration; 

20 ‘‘(4) have a high percentage of low-income resi21 dents; or 

22 ‘‘(5) are isolated from other significant popu23 lation centers. 

24 ‘‘(g) CURTAILMENT OR LIMITATION OF SERVICE

25 PROHIBITED.—The service provided or made available 


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1 through any such association shall not be curtailed or lim2 ited by inclusion of the area served by such association 

3 within the boundaries of any municipal corporation or 

4 other public body, or by the granting of any private fran5 chise for similar service within such area during the term 

6 of such loan; nor shall the happening of any such event 

7 be the basis of requiring such association to secure any 

8 franchise, license, or permit as a condition to continuing 

9 to serve the area served by the association at the time 

10 of the occurrence of such event. 

11 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this section 

13 such sums as are necessary. 

14 ‘‘SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARAN15 TEES, AND GRANTS. 

16 ‘‘(a) IN GENERAL.—The Secretary may make grants 

17 and loans and issue loan guarantees (including a guar18 antee of a loan financed by the net proceeds of a bond 

19 described in section 142(a) of the Internal Revenue Code 

20 of 1986) to eligible entities described in subsection (b) for 

21 projects in rural areas that primarily serve rural residents 

22 to provide for— 

23 ‘‘(1) essential community facilities, including— 

24 ‘‘(A) necessary equipment; 

25 ‘‘(B) recreational developments; and 


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1 ‘‘(2) financial assistance and other assistance in 

2 the planning of projects for purposes described in 

3 this section. 

4 ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for as5 sistance described in subsection (a) are— 

6 ‘‘(1) associations (including corporations not 

7 operated for profit); 

8 ‘‘(2) Indian tribes (including groups of individ9 uals described in paragraph (4) of section 815 of the 

10 Native American Programs Act of 1974 (42 U.S.C. 

11 2992c)); and 

12 ‘‘(3) public and quasi-public agencies. 

13 ‘‘(c) LOAN AND LOAN GUARANTEE REQUIRE14 MENTS.— 

15 ‘‘(1) IN GENERAL.—In connection with loans 

16 made or guaranteed under this section, the Sec17 retary shall require the applicant— 

18 ‘‘(A) to certify in writing, and the Sec19 retary shall determine, that the applicant is un20 able to obtain credit elsewhere to finance the 

21 actual needs of the applicant; and 

22 ‘‘(B) to furnish an appropriate written fi23 nancial statement. 

24 ‘‘(2) DEBT RESTRUCTURING AND LOAN SERV25 ICING FOR COMMUNITY FACILITY LOANS.—The SecVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00634 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 retary shall establish and implement a program that 

2 is similar to the program established under section 

3 3411, except that the debt restructuring and loan 

4 servicing procedures shall apply to delinquent com5 munity facility program loans to a hospital or health 

6 care facility under subsection (a). 

7 ‘‘(d) GRANT AMOUNTS.— 

8 ‘‘(1) MAXIMUM.—Except as otherwise provided 

9 in this subsection, the amount of any grant made 

10 under this section shall not exceed 75 percent of the 

11 development cost of the project for which the grant 

12 is provided. 

13 ‘‘(2) GRANT RATE.—The Secretary shall estab14 lish the grant rate for each project in conformity 

15 with regulations issued by the Secretary that shall 

16 provide for a graduated scale of grant rates that es17 tablish higher rates for projects in communities that 

18 have— 

19 ‘‘(A) low community population; 

20 ‘‘(B) high rates of outmigration; and 

21 ‘‘(C) low-income levels. 

22 ‘‘(3) LOCAL SHARE REQUIREMENTS.—Grants 

23 made under this section may be used to pay the 

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1 in-aid program to the extent permitted under the 

2 law providing for the grant-in-aid program. 

3 ‘‘(e) PRIORITY.—In making grants and loans, and 

4 guaranteeing loans under this section, the Secretary shall 

5 give priority consideration to projects that serve rural 

6 communities that— 

7 ‘‘(1) have a population of less than 20,000 per8 manent residents; 

9 ‘‘(2) are experiencing outmigration; 

10 ‘‘(3) have a high percentage of low-income resi11 dents; or 

12 ‘‘(4) are isolated from other significant popu13 lation centers. 

14 ‘‘(f) TRIBAL COLLEGES AND UNIVERSITIES.— 

15 ‘‘(1) IN GENERAL.—The Secretary may make 

16 grants to an entity that is a Tribal College or Uni17 versity (as defined in section 316(b) of the Higher 

18 Education Act of 1965 (20 U.S.C. 1059c(b))) to 

19 provide the Federal share of the cost of developing 

20 specific Tribal College or University essential com21 munity facilities in rural areas. 

22 ‘‘(2) FEDERAL SHARE.—The Secretary shall es23 tablish the maximum percentage of the cost of the 

24 project that may be covered by a grant under this 

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1 quire non-Federal financial support in an amount 

2 that is greater than 5 percent of the total cost of the 

3 project. 

4 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

5 There is authorized to be appropriated to carry out 

6 this subsection $10,000,000 for each of fiscal years 

7 2014 through 2018. 

8 ‘‘(g) TECHNICAL ASSISTANCE FOR COMMUNITY FA9 CILITIES PROJECTS.— 

10 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

11 the Secretary may use funds made available for com12 munity facilities programs authorized under this sec13 tion to provide technical assistance to applicants and 

14 participants for community facilities programs. 

15 ‘‘(2) FUNDING.—The Secretary may use not 

16 more than 3 percent of the amount of funds made 

17 available to participants for a fiscal year for a com18 munity facilities program to provide technical assist19 ance described in paragraph (1). 

20 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to carry out this section 

22 such sums as are necessary. 

23 ‘‘SEC. 3503. HEALTH CARE SERVICES. 

24 ‘‘(a) PURPOSE.—The purpose of this section is to ad25 dress the continued unmet health needs in the Delta reVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00637 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 gion through cooperation among health care professionals, 

2 institutions of higher education, research institutions, and 

3 other individuals and entities in the region. 

4 ‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In this sec5 tion, the term ‘eligible entity’ means a consortium of re6 gional institutions of higher education, academic health 

7 and research institutes, and economic development entities 

8 located in the Delta region that have experience in ad9 dressing the health care issues in the region. 

10 ‘‘(c) GRANTS.—To carry out the purpose described 

11 in subsection (a), the Secretary may award a grant to an 

12 eligible entity for— 

13 ‘‘(1) the development of— 

14 ‘‘(A) health care services; 

15 ‘‘(B) health education programs; and 

16 ‘‘(C) health care job training programs; 

17 and 

18 ‘‘(2) the development and expansion of public 

19 health-related facilities in the Delta region to ad20 dress longstanding and unmet health needs of the 

21 region. 

22 ‘‘(d) USE.—As a condition of the receipt of the grant, 

23 the eligible entity shall use the grant to fund projects and 

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1 ited from local governments, public health care providers, 

2 and other entities in the Delta region. 

3 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

4 is authorized to be appropriated to the Secretary to carry 

5 out this section $3,000,000 for each of fiscal years 2014 

6 through 2018. 

7 ‘‘CHAPTER 2—RURAL BUSINESS AND 

8 COOPERATIVE DEVELOPMENT 

9 ‘‘SEC. 3601. BUSINESS PROGRAMS. 

10 ‘‘(a) RURAL BUSINESS DEVELOPMENT GRANTS.— 

11 ‘‘(1) IN GENERAL.—The Secretary may make 

12 grants under this subsection to eligible entities de13 scribed in paragraph (2) in rural areas that pri14 marily serve rural areas for purposes described in 

15 paragraph (3). 

16 ‘‘(2) ELIGIBLE ENTITIES.—The Secretary may 

17 make grants under this subsection to— 

18 ‘‘(A) governmental entities; 

19 ‘‘(B) Indian tribes; and 

20 ‘‘(C) nonprofit entities. 

21 ‘‘(3) ELIGIBLE PURPOSES FOR GRANTS.—Eligi22 ble entities that receive grants under this subsection 

23 may use the grant funds for— 

24 ‘‘(A) business opportunity projects that— 


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1 ‘‘(i) identify and analyze business op2 portunities; 

3 ‘‘(ii) identify, train, and provide tech4 nical assistance to existing or prospective 

5 rural entrepreneurs and managers; 

6 ‘‘(iii) assist in the establishment of 

7 new rural businesses and the maintenance 

8 of existing businesses, including through 

9 business support centers; 

10 ‘‘(iv) conduct regional, community, 

11 and local economic development planning 

12 and coordination, and leadership develop13 ment; and 

14 ‘‘(v) establish centers for training, 

15 technology, and trade that will provide 

16 training to rural businesses in the use of 

17 interactive communications technologies to 

18 develop international trade opportunities 

19 and markets; and 

20 ‘‘(B) projects that support the development 

21 of business enterprises that finance or facili22 tate— 

23 ‘‘(i) the development of small and 

24 emerging private business enterprise; 


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1 ‘‘(ii) the establishment, expansion, 

2 and operation of rural distance learning 

3 networks; 

4 ‘‘(iii) the development of rural learn5 ing programs that provide educational in6 struction or job training instruction related 

7 to potential employment or job advance8 ment to adult students; and 

9 ‘‘(iv) the provision of technical assist10 ance and training to rural communities for 

11 the purpose of improving passenger trans12 portation services or facilities. 

13 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

14 There is authorized to be appropriated to the Sec15 retary to carry out this subsection $65,000,000 for 

16 each of fiscal years 2014 through 2018, to remain 

17 available until expended. 

18 ‘‘(b) VALUE-ADDED AGRICULTURAL PRODUCER

19 GRANTS.— 

20 ‘‘(1) DEFINITIONS.—In this subsection: 

21 ‘‘(A) MID-TIER VALUE CHAIN.—The term 

22 ‘mid-tier value chain’ means a local and re23 gional supply network that links independent 

24 producers with businesses and cooperatives that 


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1 market value-added agricultural products in a 

2 manner that— 

3 ‘‘(i) targets and strengthens the prof4 itability and competitiveness of small- and 

5 medium-sized farms that are structured as 

6 family farms; and 

7 ‘‘(ii) obtains agreement from an eligi8 ble agricultural producer group, farmer co9 operative, or majority-controlled producer10 based business venture that is engaged in 

11 the value chain on a marketing strategy. 

12 ‘‘(B) PRODUCER.—The term ‘producer’ 

13 means a farmer. 

14 ‘‘(C) VALUE-ADDED AGRICULTURAL PROD15 UCT.—The term ‘value-added agricultural prod16 uct’ means any agricultural commodity or prod17 uct— 

18 ‘‘(i) that— 

19 ‘‘(I) has undergone a change in 

20 physical state; 

21 ‘‘(II) was produced in a manner 

22 that enhances the value of the agricul23 tural commodity or product, as dem24 onstrated through a business plan 


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1 that shows the enhanced value, as de2 termined by the Secretary; 

3 ‘‘(III) is physically segregated in 

4 a manner that results in the enhance5 ment of the value of the agricultural 

6 commodity or product; 

7 ‘‘(IV) is a source of farm-based 

8 renewable energy, including E–85 

9 fuel; or 

10 ‘‘(V) is aggregated and marketed 

11 as a locally produced agricultural food 

12 product; and 

13 ‘‘(ii) for which, as a result of the 

14 change in physical state or the manner in 

15 which the agricultural commodity or prod16 uct was produced, marketed, or seg17 regated— 

18 ‘‘(I) the customer base for the 

19 agricultural commodity or product is 

20 expanded; and 

21 ‘‘(II) a greater portion of the rev22 enue derived from the marketing, 

23 processing, or physical segregation of 

24 the agricultural commodity or product 


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1 is available to the producer of the 

2 commodity or product. 

3 ‘‘(2) GRANTS.— 

4 ‘‘(A) IN GENERAL.—The Secretary may 

5 make grants under this subsection to— 

6 ‘‘(i) independent producers of value7 added agricultural products; and 

8 ‘‘(ii) an agricultural producer group, 

9 farmer cooperative, or majority-controlled 

10 producer-based business venture, as deter11 mined by the Secretary. 

12 ‘‘(B) GRANTS TO A PRODUCER.—A grantee 

13 under subparagraph (A)(i) shall use the 

14 grant— 

15 ‘‘(i) to develop a business plan or per16 form a feasibility study to establish a via17 ble marketing opportunity (including 

18 through mid-tier value chains) for value19 added agricultural products; or 

20 ‘‘(ii) to provide capital to establish al21 liances or business ventures that allow the 

22 producer to better compete in domestic or 

23 international markets. 

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1 BASED BUSINESS VENTURE.—A grantee under 

2 subparagraph (A)(ii) shall use the grant— 

3 ‘‘(i) to develop a business plan for via4 ble marketing opportunities in emerging 

5 markets for a value-added agricultural 

6 product; or 

7 ‘‘(ii) to develop strategies that are in8 tended to create marketing opportunities 

9 in emerging markets for the value-added 

10 agricultural product. 

11 ‘‘(D) AWARD SELECTION.— 

12 ‘‘(i) PRIORITY.—In awarding grants 

13 under this subsection, the Secretary shall 

14 give priority to projects— 

15 ‘‘(I) that contribute to increasing 

16 opportunities for operators of small17 and medium-sized farms that are 

18 structured as family farms; or 

‘‘(II) at least 1 19 ⁄4 of the recipients 

20 of which are beginning farmers or so21 cially disadvantaged farmers. 

22 ‘‘(ii) RANKING.—In evaluating and 

23 ranking proposals under this subsection, 

24 the Secretary shall provide substantial 


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1 weight to the priorities described in clause 

2 (i). 

3 ‘‘(E) AMOUNT OF GRANT.— 

4 ‘‘(i) IN GENERAL.—The total amount 

5 provided to a grant recipient under this 

6 subsection shall not exceed $500,000. 

7 ‘‘(ii) MAJORITY-CONTROLLED, PRO8 DUCER-BASED BUSINESS VENTURES.—The 

9 total amount of all grants provided to ma10 jority-controlled, producer-based business 

11 ventures under this subsection for a fiscal 

12 year shall not exceed 10 percent of the 

13 amount of funds used to make all grants 

14 for the fiscal year under this subsection. 

15 ‘‘(F) TERM.—The term of a grant under 

16 this paragraph shall not exceed 3 years. 

17 ‘‘(G) SIMPLIFIED APPLICATION.—The Sec18 retary shall offer a simplified application form 

19 and process for project proposals requesting 

20 less than $50,000 under this subsection. 

21 ‘‘(3) FUNDING.— 

22 ‘‘(A) AUTHORIZATION OF APPROPRIA23 TIONS.—There is authorized to be appropriated 

24 to carry out this subsection $40,000,000 for 

25 each of fiscal years 2014 through 2018. 


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1 ‘‘(B) RESERVATION OF FUNDS FOR

2 PROJECTS TO BENEFIT BEGINNING FARMERS, 

3 SOCIALLY DISADVANTAGED FARMERS, AND MID4 TIER VALUE CHAINS.— 

5 ‘‘(i) IN GENERAL.—The Secretary 

6 shall reserve 10 percent of the amounts 

7 made available for each fiscal year under 

8 this subsection to fund projects that ben9 efit beginning farmers or socially disadvan10 taged farmers. 

11 ‘‘(ii) MID-TIER VALUE CHAINS.—The 

12 Secretary shall reserve 10 percent of the 

13 amounts made available for each fiscal 

14 year under this subsection to fund applica15 tions of eligible entities described in para16 graph (2) that propose to develop mid-tier 

17 value chains. 

18 ‘‘(iii) UNOBLIGATED AMOUNTS.—Any 

19 amounts in the reserves for a fiscal year 

20 established under clauses (i) and (ii) that 

21 are not obligated by June 30 of the fiscal 

22 year shall be available to the Secretary to 

23 make grants under this subsection to eligi24 ble entities in any State, as determined by 

25 the Secretary. 


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1 ‘‘(C) MANDATORY FUNDING.—Of the 

2 funds of the Commodity Credit Corporation, the 

3 Secretary shall use to carry out this subsection 

4 $12,500,000 for each of fiscal years 2014 

5 through 2018, to remain available until ex6 pended. 

7 ‘‘(c) RURAL COOPERATIVE DEVELOPMENT

8 GRANTS.— 

9 ‘‘(1) DEFINITIONS.—In this subsection: 

10 ‘‘(A) NONPROFIT INSTITUTION.—The term 

11 ‘nonprofit institution’ means any organization 

12 or institution, including an accredited institu13 tion of higher education, no part of the net 

14 earnings of which inures, or may lawfully inure, 

15 to the benefit of any private shareholder or in16 dividual. 

17 ‘‘(B) UNITED STATES.—The term ‘United 

18 States’ means— 

19 ‘‘(i) the several States; and 

20 ‘‘(ii) the District of Columbia. 

21 ‘‘(2) GRANTS.—The Secretary shall make 

22 grants under this subsection to nonprofit institutions 

23 for the purpose of enabling the nonprofit institutions 

24 to establish and operate centers for rural cooperative 

25 development. 


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1 ‘‘(3) GOALS.—The goals of a center funded 

2 under this subsection shall be to facilitate the cre3 ation of jobs in rural areas through the development 

4 of new rural cooperatives, value-added processing, 

5 and rural businesses. 

6 ‘‘(4) APPLICATION.— 

7 ‘‘(A) IN GENERAL.—Any nonprofit institu8 tion seeking a grant under paragraph (2) shall 

9 submit to the Secretary an application con10 taining a plan for the establishment and oper11 ation by the institution of 1 or more centers for 

12 cooperative development. 

13 ‘‘(B) REQUIREMENTS.—The Secretary 

14 may approve an application if the plan contains 

15 the following: 

16 ‘‘(i) A provision that substantiates 

17 that the center will effectively serve rural 

18 areas in the United States. 

19 ‘‘(ii) A provision that the primary ob20 jective of the center will be to improve the 

21 economic condition of rural areas through 

22 cooperative development. 

23 ‘‘(iii) A description of the activities 

24 that the center will carry out to accomplish 


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1 the objective, which may include pro2 grams— 

3 ‘‘(I) for applied research and fea4 sibility studies that may be useful to 

5 individuals, cooperatives, small busi6 nesses, and other similar entities in 

7 rural areas served by the center; 

8 ‘‘(II) for the collection, interpre9 tation, and dissemination of informa10 tion that may be useful to individuals, 

11 cooperatives, small businesses, and 

12 other similar entities in rural areas 

13 served by the center; 

14 ‘‘(III) providing training and in15 struction for individuals, cooperatives, 

16 small businesses, and other similar 

17 entities in rural areas served by the 

18 center; 

19 ‘‘(IV) providing loans and grants 

20 to individuals, cooperatives, small 

21 businesses, and other similar entities 

22 in rural areas served by the center; 

23 ‘‘(V) providing technical assist24 ance, research services, and advisory 

25 services to individuals, cooperatives, 


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1 small businesses, and other similar 

2 entities in rural areas served by the 

3 center; and 

4 ‘‘(VI) providing for the coordina5 tion of services and sharing of infor6 mation by the center. 

7 ‘‘(iv) A description of the contribu8 tions that the activities are likely to make 

9 to the improvement of the economic condi10 tions of the rural areas for which the cen11 ter will provide services. 

12 ‘‘(v) Provisions that the center, in car13 rying out the activities, will seek, if appro14 priate, the advice, participation, expertise, 

15 and assistance of representatives of busi16 ness, industry, educational institutions, the 

17 Federal Government, and State and local 

18 governments. 

19 ‘‘(vi) Provisions that the center will 

20 take all practicable steps to develop con21 tinuing sources of financial support for the 

22 center, particularly from sources in the pri23 vate sector. 

24 ‘‘(vii) Provisions for— 


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1 ‘‘(I) monitoring and evaluating 

2 the activities by the nonprofit institu3 tion operating the center; and 

4 ‘‘(II) accounting for funds re5 ceived by the institution under this 

6 section. 

7 ‘‘(5) AWARDING GRANTS.— 

8 ‘‘(A) IN GENERAL.—Grants made under 

9 paragraph (2) shall be made on a competitive 

10 basis. 

11 ‘‘(B) PREFERENCE.—In making grants 

12 under paragraph (2), the Secretary shall give 

13 preference to grant applications providing for 

14 the establishment of centers for rural coopera15 tive development that— 

16 ‘‘(i) demonstrate a proven track 

17 record in carrying out activities to promote 

18 and assist the development of cooperatively 

19 and mutually owned businesses; 

20 ‘‘(ii) demonstrate previous expertise in 

21 providing technical assistance in rural 

22 areas to promote and assist the develop23 ment of cooperatively and mutually owned 

24 businesses; 


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1 ‘‘(iii) demonstrate the ability to assist 

2 in the retention of businesses, facilitate the 

3 establishment of cooperatives and new co4 operative approaches, and generate em5 ployment opportunities that will improve 

6 the economic conditions of rural areas; 

7 ‘‘(iv) commit to providing technical 

8 assistance and other services to under9 served and economically distressed areas in 

10 rural areas of the United States; 

11 ‘‘(v) demonstrate a commitment to— 

12 ‘‘(I) networking with and sharing 

13 the results of the efforts of the center 

14 with other cooperative development 

15 centers and other organizations in16 volved in rural economic development 

17 efforts; and 

18 ‘‘(II) developing multiorganiza19 tion and multistate approaches to ad20 dressing the economic development 

21 and cooperative needs of rural areas; 

22 and 

23 ‘‘(vi) commit to providing a 25 per24 cent matching contribution with private 

25 funds and in-kind contributions, except 


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1 that the Secretary shall not require non2 Federal financial support in an amount 

3 that is greater than 5 percent in the case 

4 of a 1994 institution (as defined in section 

5 532 of the Equity in Educational Land6 Grant Status Act of 1994 (7 U.S.C. 301 

7 note; Public Law 103–382)). 

8 ‘‘(6) GRANT PERIOD.— 

9 ‘‘(A) IN GENERAL.—A grant awarded to a 

10 center that has received no prior funding under 

11 this subsection shall be made for a period of 1 

12 year. 

13 ‘‘(B) MULTIYEAR GRANTS.—If the Sec14 retary determines it to be in the best interest 

15 of the program, the Secretary shall award 

16 grants for a period of more than 1 year, but 

17 not more than 3 years, to a center that has suc18 cessfully met the requirements of paragraph 

19 (5)(B), as determined by the Secretary. 

20 ‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.— 

21 The Secretary may extend for 1 additional 12-month 

22 period the period during which a grantee may use a 

23 grant made under this subsection. 


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1 ‘‘(8) TECHNICAL ASSISTANCE TO PREVENT EX2 CESSIVE UNEMPLOYMENT OR UNDEREMPLOY3 MENT.— 

4 ‘‘(A) IN GENERAL.—In carrying out this 

5 subsection, the Secretary may provide technical 

6 assistance to alleviate or prevent conditions of 

7 excessive unemployment, underemployment, 

8 outmigration, or low employment growth in eco9 nomically distressed rural areas that the Sec10 retary determines have a substantial need for 

11 the assistance. 

12 ‘‘(B) INCLUSIONS.—The assistance may 

13 include planning and feasibility studies, man14 agement and operational assistance, and studies 

15 evaluating the need for the development poten16 tial of projects that increase employment and 

17 improve economic growth in the areas. 

18 ‘‘(9) GRANTS TO DEFRAY ADMINISTRATIVE

19 COSTS.— 

20 ‘‘(A) IN GENERAL.—The Secretary may 

21 make grants to defray not to exceed 75 percent 

22 of the costs incurred by organizations and pub23 lic bodies to carry out projects for which grants 

24 or loans are made under this subsection. 


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1 ‘‘(B) COST-SHARING.—For purposes of de2 termining the non-Federal share of the costs, 

3 the Secretary shall include contributions in cash 

4 and in kind, fairly evaluated, including prem5 ises, equipment, and services. 

6 ‘‘(10) COOPERATIVE RESEARCH PROGRAM.— 

7 The Secretary shall offer to enter into a cooperative 

8 research agreement with 1 or more qualified aca9 demic institutions in each fiscal year to conduct re10 search on the effects of all types of cooperatives on 

11 the national economy. 

12 ‘‘(11) ADDRESSING NEEDS OF MINORITY COM13 MUNITIES.— 

14 ‘‘(A) IN GENERAL.—If the total amount 

15 appropriated under paragraph (13) for a fiscal 

16 year exceeds $7,500,000, the Secretary shall re17 serve an amount equal to 20 percent of the 

18 total amount appropriated for grants for coop19 erative development centers, individual coopera20 tives, or groups of cooperatives— 

21 ‘‘(i) that serve socially disadvantaged 

22 groups; and 

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1 prised of individuals who are members of 

2 socially disadvantaged groups. 

3 ‘‘(B) INSUFFICIENT APPLICATIONS.—To 

4 the extent there are insufficient applications to 

5 carry out subparagraph (A), the Secretary shall 

6 use the funds as otherwise authorized by this 

7 subsection. 

8 ‘‘(12) INTERAGENCY WORKING GROUP.—Not 

9 later than 90 days after the date of enactment of 

10 the Agriculture Reform, Food, and Jobs Act of 

11 2013, the Secretary shall coordinate and chair an 

12 interagency working group to foster cooperative de13 velopment and ensure coordination with Federal 

14 agencies and national and local cooperative organiza15 tions that have cooperative programs and interests. 

16 ‘‘(13) AUTHORIZATION OF APPROPRIATIONS.— 

17 There is authorized to be appropriated to carry out 

18 this subsection $50,000,000 for each of fiscal years 

19 2014 through 2018. 

20 ‘‘(d) APPROPRIATE TECHNOLOGY TRANSFER FOR

21 RURAL AREAS PROGRAM.— 

22 ‘‘(1) DEFINITION OF NATIONAL NONPROFIT AG23 RICULTURAL ASSISTANCE INSTITUTION.—In this 

24 subsection, the term ‘national nonprofit agricultural 

25 assistance institution’ means an organization that— 


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1 ‘‘(A) is described in section 501(c)(3) of 

2 the Internal Revenue Code of 1986 and exempt 

3 from taxation under 501(a) of that Code; 

4 ‘‘(B) has staff and offices in multiple re5 gions of the United States; 

6 ‘‘(C) has experience and expertise in oper7 ating national agricultural technical assistance 

8 programs; 

9 ‘‘(D) expands markets for the agricultural 

10 commodities produced by producers through the 

11 use of practices that enhance the environment, 

12 natural resource base, and quality of life; and 

13 ‘‘(E) improves the economic viability of ag14 ricultural operations. 

15 ‘‘(2) ESTABLISHMENT.—The Secretary shall es16 tablish a national appropriate technology transfer 

17 for rural areas program to assist agricultural pro18 ducers that are seeking information— 

19 ‘‘(A) to reduce input costs; 

20 ‘‘(B) to conserve energy resources; 

21 ‘‘(C) to diversify operations through new 

22 energy crops and energy generation facilities; 

23 and 

24 ‘‘(D) to expand markets for agricultural 

25 commodities produced by the producers by 


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1 using practices that enhance the environment, 

2 natural resource base, and quality of life. 

3 ‘‘(3) IMPLEMENTATION.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 carry out the program under this subsection by 

6 making a grant to, or offering to enter into a 

7 cooperative agreement with, a national non8 profit agricultural assistance institution. 

9 ‘‘(B) GRANT AMOUNT.—A grant made, or 

10 cooperative agreement entered into, under sub11 paragraph (A) shall provide 100 percent of the 

12 cost of providing information described in para13 graph (2). 

14 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

15 There is authorized to be appropriated to carry out 

16 this subsection $5,000,000 for each of fiscal years 

17 2014 through 2018. 

18 ‘‘(e) BUSINESS AND INDUSTRY DIRECT AND GUAR19 ANTEED LOANS.— 

20 ‘‘(1) DEFINITION OF BUSINESS AND INDUSTRY

21 LOAN.—In this section, the term ‘business and in22 dustry loan’ means a direct loan that is made, or a 

23 loan that is guaranteed, by the Secretary under this 

24 subsection. 


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1 ‘‘(2) LOAN PURPOSES.—The Secretary may 

2 make business and industry loans to public, private, 

3 or cooperative organizations organized for profit or 

4 nonprofit, private investment funds that invest pri5 marily in cooperative organizations, or to individ6 uals— 

7 ‘‘(A) to improve, develop, or finance busi8 ness, industry, and employment and improve 

9 the economic and environmental climate in 

10 rural communities, including pollution abate11 ment and control; 

12 ‘‘(B) to conserve, develop, and use water 

13 for aquaculture purposes in rural areas; and 

14 ‘‘(C) to reduce the reliance on nonrenew15 able energy resources by encouraging the devel16 opment and construction of renewable energy 

17 systems (including solar energy systems, wind 

18 energy systems, and anaerobic digestors for the 

19 purpose of energy generation), including the 

20 modification of existing systems, in rural areas. 

21 ‘‘(3) LOAN GUARANTEES FOR CERTAIN

22 LOANS.—The Secretary may guarantee loans made 

23 under this subsection to finance the issuance of 

24 bonds for the projects described in paragraph (2). 

25 ‘‘(4) MAXIMUM AMOUNT OF PRINCIPAL.— 


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1 ‘‘(A) IN GENERAL.—Except as otherwise 

2 provided in this paragraph, no loan may be 

3 made or guaranteed under this subsection that 

4 exceeds $25,000,000 in principal amount. 

5 ‘‘(B) LIMITATIONS ON LOAN GUARANTEES

6 FOR COOPERATIVE ORGANIZATIONS.— 

7 ‘‘(i) PRINCIPAL AMOUNT.—Subject to 

8 clause (ii), the principal amount of a busi9 ness and industry loan made to a coopera10 tive organization and guaranteed under 

11 this subsection shall not exceed 

12 $40,000,000. 

13 ‘‘(ii) USE.—To be eligible for a guar14 antee under this subsection for a business 

15 and industry loan made to a cooperative 

16 organization, the principal amount of the 

17 loan in excess of $25,000,000 shall be used 

18 to carry out a project that is in a rural 

19 area and— 

20 ‘‘(I) provides for the value-added 

21 processing of agricultural commod22 ities; or 

23 ‘‘(II) significantly benefits 1 or 

24 more entities eligible for assistance for 


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1 the purposes described in paragraph 

2 (2), as determined by the Secretary. 

3 ‘‘(iii) APPLICATIONS.—If a coopera4 tive organization submits an application 

5 for a guarantee under this paragraph, the 

6 Secretary shall make the determination 

7 whether to approve the application, and 

8 the Secretary may not delegate this au9 thority. 

10 ‘‘(iv) MAXIMUM AMOUNT.—The total 

11 amount of business and industry loans 

12 made to cooperative organizations and 

13 guaranteed for a fiscal year under this 

14 subsection with principal amounts that are 

15 in excess of $25,000,000 may not exceed 

16 10 percent of the total amount of business 

17 and industry loans guaranteed for the fis18 cal year under this subsection. 

19 ‘‘(5) FEES.—The Secretary may assess a 1- 

20 time fee and an annual renewal fee for any guaran21 teed business and industry loan in an amount that 

22 does not exceed 3 percent of the guaranteed prin23 cipal portion of the loan. 

24 ‘‘(6) INTANGIBLE ASSETS.—In determining 

25 whether a cooperative organization is eligible for a 


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1 guaranteed business and industry loan, the Sec2 retary may consider the market value of a properly 

3 appraised brand name, patent, or trademark of the 

4 cooperative. 

5 ‘‘(7) LOAN APPRAISALS.—The Secretary may 

6 require that any appraisal made in connection with 

7 a business and industry loan be conducted by a spe8 cialized appraiser that uses standards that are com9 parable to standards used for similar purposes in the 

10 private sector, as determined by the Secretary. 

11 ‘‘(8) LOAN GUARANTEES FOR THE PURCHASE

12 OF COOPERATIVE STOCK.— 

13 ‘‘(A) IN GENERAL.—The Secretary may 

14 guarantee a business and industry loan to indi15 vidual farmers to purchase capital stock of a 

16 farmer cooperative established for the purpose 

17 of processing an agricultural commodity. 

18 ‘‘(B) PROCESSING CONTRACTS DURING INI19 TIAL PERIOD.—A cooperative described in sub20 paragraph (A) for which a farmer receives a 

21 guarantee to purchase stock under that sub22 paragraph may contract for services to process 

23 agricultural commodities or otherwise process 

24 value added for the period beginning on the 

25 date of the startup of the cooperative in order 


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1 to provide adequate time for the planning and 

2 construction of the processing facility of the co3 operative. 

4 ‘‘(C) FINANCIAL INFORMATION.—Financial 

5 information required by the Secretary from a 

6 farmer as a condition of making a business and 

7 industry loan guarantee under this paragraph 

8 shall be provided in the manner generally re9 quired by commercial agricultural lenders in the 

10 applicable area. 

11 ‘‘(9) LOANS TO COOPERATIVES.— 

12 ‘‘(A) ELIGIBILITY.— 

13 ‘‘(i) IN GENERAL.—The Secretary 

14 may make or guarantee a business and in15 dustry loan to a cooperative organization 

16 that is headquartered in a metropolitan 

17 area if the loan is— 

18 ‘‘(I) used for a project or venture 

19 described in paragraph (2) that is lo20 cated in a rural area; or 

21 ‘‘(II) a loan guarantee that meets 

22 the requirements of paragraph (10). 

23 ‘‘(ii) EQUITY.—The Secretary may 

24 guarantee a loan made for the purchase of 

25 preferred stock or similar equity issued by 


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1 a cooperative organization or a fund that 

2 invests primarily in cooperative organiza3 tions, if the guarantee significantly bene4 fits 1 or more entities eligible for assist5 ance for the purposes described in para6 graph (2)(A), as determined by the Sec7 retary. 

8 ‘‘(B) REFINANCING.—A cooperative orga9 nization that is eligible for a business and in10 dustry loan shall be eligible to refinance an ex11 isting business and industry loan with a lender 

12 if— 

13 ‘‘(i) the cooperative organization— 

14 ‘‘(I) is current and performing 

15 with respect to the existing loan; and 

16 ‘‘(II)(aa) is not, and has not 

17 been, in payment default, with respect 

18 to the existing loan; or 

19 ‘‘(bb) has not converted any of 

20 the collateral with respect to the exist21 ing loan; and 

22 ‘‘(ii) there is adequate security or full 

23 collateral for the refinanced loan. 

24 ‘‘(10) LOAN GUARANTEES IN NONRURAL

25 AREAS.—The Secretary may guarantee a business 


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1 and industry loan to a cooperative organization for 

2 a facility that is not located in a rural area if— 

3 ‘‘(A) the primary purpose of the loan guar4 antee is for a facility to provide value-added 

5 processing for agricultural producers that are 

6 located within 80 miles of the facility; 

7 ‘‘(B) the applicant demonstrates to the 

8 Secretary that the primary benefit of the loan 

9 guarantee will be to provide employment for 

10 residents of a rural area; and 

11 ‘‘(C) the total amount of business and in12 dustry loans guaranteed for a fiscal year under 

13 this paragraph does not exceed 10 percent of 

14 the business and industry loans guaranteed for 

15 the fiscal year under this subsection. 

16 ‘‘(11) LOCALLY OR REGIONALLY PRODUCED AG17 RICULTURAL FOOD PRODUCTS.— 

18 ‘‘(A) DEFINITIONS.—In this paragraph: 

19 ‘‘(i) LOCALLY OR REGIONALLY PRO20 DUCED AGRICULTURAL FOOD PRODUCT.— 

21 The term ‘locally or regionally produced 

22 agricultural food product’ means any agri23 cultural food product that is raised, pro24 duced, and distributed in— 


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1 ‘‘(I) the locality or region in 

2 which the final product is marketed, 

3 so that the total distance that the 

4 product is transported is less than 

5 400 miles from the origin of the prod6 uct; or 

7 ‘‘(II) the State in which the 

8 product is produced. 

9 ‘‘(ii) UNDERSERVED COMMUNITY.— 

10 The term ‘underserved community’ means 

11 a community (including an urban or rural 

12 community and an Indian tribal commu13 nity) that, as determined by the Secretary, 

14 has— 

15 ‘‘(I) limited access to affordable, 

16 healthy foods, including fresh fruits 

17 and vegetables, in grocery retail stores 

18 or farmer-to-consumer direct markets; 

19 and 

20 ‘‘(II) a high rate of hunger or 

21 food insecurity or a high poverty rate. 

22 ‘‘(B) LOAN AND LOAN GUARANTEE PRO23 GRAM.— 

24 ‘‘(i) IN GENERAL.—The Secretary 

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1 uals, cooperatives, cooperative organiza2 tions, businesses, and other entities to es3 tablish and facilitate enterprises that proc4 ess, distribute, aggregate, store, and mar5 ket locally or regionally produced agricul6 tural food products to support community 

7 development and farm income. 

8 ‘‘(ii) REQUIREMENT.—The recipient 

9 of a loan or loan guarantee under this 

10 paragraph shall include in an appropriate 

11 agreement with retail and institutional fa12 cilities to which the recipient sells locally 

13 or regionally produced agricultural food 

14 products a requirement to inform con15 sumers of the retail or institutional facili16 ties that the consumers are purchasing or 

17 consuming locally or regionally produced 

18 agricultural food products. 

19 ‘‘(iii) PRIORITY.—In making or guar20 anteeing a loan under this paragraph, the 

21 Secretary shall give priority to projects 

22 that have components benefitting under23 served communities. 

24 ‘‘(iv) REPORTS.—Not later than 2 

25 years after the date of enactment of the 


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1 Agriculture Reform, Food, and Jobs Act of 

2 2013 and annually thereafter, the Sec3 retary shall submit to the Committee on 

4 Agriculture of the House of Representa5 tives and the Committee on Agriculture, 

6 Nutrition, and Forestry of the Senate, and 

7 publish on the Internet, a report that de8 scribes projects carried out using loans or 

9 loan guarantees made under clause (i), in10 cluding— 

11 ‘‘(I) summary information about 

12 all projects; 

13 ‘‘(II) the characteristics of the 

14 communities served; and 

15 ‘‘(III) resulting benefits. 

16 ‘‘(v) RESERVATION OF FUNDS.—For 

17 each of fiscal years 2014 through 2018, 

18 the Secretary shall reserve not less than 5 

19 percent of the total amount of funds made 

20 available to carry out this subsection to 

21 carry out this paragraph until April 1 of 

22 the fiscal year. 

23 ‘‘(vi) OUTREACH.—The Secretary 

24 shall develop and implement an outreach 

25 plan to publicize the availability of loans 


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1 and loan guarantees under this paragraph, 

2 working closely with rural cooperative de3 velopment centers, credit unions, commu4 nity development financial institutions, re5 gional economic development authorities, 

6 and other financial and economic develop7 ment entities. 

8 ‘‘(12) AUTHORIZATION OF APPROPRIATIONS.— 

9 There is authorized to be appropriated to carry out 

10 this subsection $75,000,000 for each of fiscal years 

11 2014 through 2018. 

12 ‘‘(f) RELENDING PROGRAMS.— 

13 ‘‘(1) INTERMEDIATE RELENDING PROGRAM.— 

14 ‘‘(A) IN GENERAL.—The Secretary may 

15 make or guarantee loans to eligible entities de16 scribed in subparagraph (B) so that the eligible 

17 entities may relend the funds to individuals and 

18 entities for the purposes described in subpara19 graph (C). 

20 ‘‘(B) ELIGIBLE ENTITIES.—Entities eligi21 ble for loans and loan guarantees described in 

22 subparagraph (A) are— 

23 ‘‘(i) public agencies; 

24 ‘‘(ii) Indian tribes; 

25 ‘‘(iii) cooperatives; and 


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1 ‘‘(iv) nonprofit corporations. 

2 ‘‘(C) ELIGIBLE PURPOSES.—The proceeds 

3 from loans made or guaranteed by the Sec4 retary pursuant to subparagraph (A) may be 

5 relent by eligible entities for projects that— 

6 ‘‘(i) predominately serve communities 

7 in rural areas; and 

8 ‘‘(ii) as determined by the Secretary— 

9 ‘‘(I) promote community develop10 ment; 

11 ‘‘(II) establish new businesses; 

12 ‘‘(III) establish and support 

13 microlending programs; and 

14 ‘‘(IV) create or retain employ15 ment opportunities. 

16 ‘‘(D) AUTHORIZATION OF APPROPRIA17 TIONS.—There is authorized to be appropriated 

18 to carry out this subsection $50,000,000 for 

19 each of fiscal years 2014 through 2018. 

20 ‘‘(2) RURAL MICROENTREPRENEUR ASSISTANCE

21 PROGRAM.— 

22 ‘‘(A) DEFINITIONS.—In this paragraph: 

23 ‘‘(i) MICROENTREPRENEUR.—The 

24 term ‘microentrepreneur’ means an owner 

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1 erator, of a rural microenterprise who is 

2 unable to obtain sufficient training, tech3 nical assistance, or credit other than under 

4 this subsection, as determined by the Sec5 retary. 

6 ‘‘(ii) MICROENTERPRISE DEVELOP7 MENT ORGANIZATION.—The term ‘micro8 enterprise development organization’ 

9 means an organization that is— 

10 ‘‘(I) a nonprofit entity; 

11 ‘‘(II) an Indian tribe, the tribal 

12 government of which certifies to the 

13 Secretary that— 

14 ‘‘(aa) no microenterprise de15 velopment organization serves the 

16 Indian tribe; and 

17 ‘‘(bb) no rural microentre18 preneur assistance program ex19 ists under the jurisdiction of the 

20 Indian tribe; 

21 ‘‘(III) a public institution of 

22 higher education; or 

23 ‘‘(IV) a collaboration of rural 

24 nonprofit entities serving a region or 

25 State, if 1 lead nonprofit entity is the 


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1 sole underwriter of all loans and is re2 sponsible for associated risks. 

3 ‘‘(iii) MICROLOAN.—The term 

4 ‘microloan’ means a business loan of not 

5 more than $50,000 that is provided to a 

6 rural microenterprise. 

7 ‘‘(iv) PROGRAM.—The term ‘program’ 

8 means the rural microentrepreneur assist9 ance program established under subpara10 graph (B). 

11 ‘‘(v) RURAL MICROENTERPRISE.—The 

12 term ‘rural microenterprise’ means a busi13 ness entity with not more than 10 full-time 

14 equivalent employees located in a rural 

15 area. 

16 ‘‘(vi) TRAINING.—The term ‘training’ 

17 means teaching broad business principles 

18 or general business skills in a group or 

19 public setting. 

20 ‘‘(vii) TECHNICAL ASSISTANCE.—The 

21 term ‘technical assistance’ means working 

22 with a business client in a 1-to-1 manner 

23 to provide business and financial manage24 ment counseling, assist in the preparation 

25 of business or marketing plans, or provide 


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1 other skills tailored to an individual micro2 entrepreneur. 

3 ‘‘(B) RURAL MICROENTREPRENEUR AS4 SISTANCE PROGRAM.— 

5 ‘‘(i) ESTABLISHMENT.—The Secretary 

6 shall establish a rural microentrepreneur 

7 assistance program to provide loans and 

8 grants to support microentrepreneurs in 

9 the development and ongoing success of 

10 rural microenterprises. 

11 ‘‘(ii) PURPOSE.—The purpose of the 

12 program is to provide microentrepreneurs 

13 with— 

14 ‘‘(I) the skills necessary to estab15 lish new rural microenterprises; and 

16 ‘‘(II) continuing technical and fi17 nancial assistance related to the suc18 cessful operation of rural microenter19 prises. 

20 ‘‘(iii) LOANS.— 

21 ‘‘(I) IN GENERAL.—The Sec22 retary shall make loans to microenter23 prise development organizations for 

24 the purpose of providing fixed-interest 

25 rate microloans to microentrepreneurs 


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1 for startup and growing rural micro2 enterprises. 

3 ‘‘(II) LOAN TERMS.—A loan 

4 made by the Secretary to a microen5 terprise development organization 

6 under this subparagraph shall— 

7 ‘‘(aa) be for a term not to 

8 exceed 20 years; and 

9 ‘‘(bb) bear an annual inter10 est rate of at least 1 percent. 

11 ‘‘(III) LOAN LOSS RESERVE

12 FUND.—The Secretary shall require 

13 each microenterprise development or14 ganization that receives a loan under 

15 this subparagraph to— 

16 ‘‘(aa) establish a loan loss 

17 reserve fund; and 

18 ‘‘(bb) maintain the reserve 

19 fund in an amount equal to at 

20 least 5 percent of the outstanding 

21 balance of such loans owed by 

22 the microenterprise development 

23 organization, until all obligations 

24 owed to the Secretary under this 

25 subparagraph are repaid. 


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1 ‘‘(IV) DEFERRAL OF INTEREST

2 AND PRINCIPAL.—The Secretary may 

3 permit the deferral of payments on 

4 principal and interest due on a loan to 

5 a microenterprise development organi6 zation made under this paragraph for 

7 a 2-year period beginning on the date 

8 on which the loan is made. 

9 ‘‘(iv) GRANTS TO SUPPORT RURAL MI10 CROENTERPRISE DEVELOPMENT.— 

11 ‘‘(I) IN GENERAL.—The Sec12 retary shall make grants to microen13 terprise development organizations— 

14 ‘‘(aa) to provide training 

15 and technical assistance, and 

16 other related services to rural 

17 microentrepreneurs; and 

18 ‘‘(bb) to carry out such 

19 other projects and activities as 

20 the Secretary determines appro21 priate to further the purposes of 

22 the program. 

23 ‘‘(II) SELECTION.—In making 

24 grants under subclause (I), the Sec25 retary shall— 


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1 ‘‘(aa) place an emphasis on 

2 microenterprise development or3 ganizations that serve micro4 entrepreneurs that are located in 

5 rural areas that have suffered 

6 significant outward migration, as 

7 determined by the Secretary; and 

8 ‘‘(bb) ensure, to the max9 imum extent practicable, that 

10 grant recipients include microen11 terprise development organiza12 tions of varying sizes and that 

13 serve racially and ethnically di14 verse populations. 

15 ‘‘(v) GRANTS TO ASSIST MICROENTRE16 PRENEURS.— 

17 ‘‘(I) IN GENERAL.—The Sec18 retary shall make annual grants to 

19 microenterprise development organiza20 tions to provide technical assistance to 

21 microentrepreneurs that— 

22 ‘‘(aa) received a loan from 

23 the microenterprise development 

24 organization under subparagraph 

25 (B)(iii); or 


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1 ‘‘(bb) are seeking a loan 

2 from the microenterprise develop3 ment organization under sub4 paragraph (B)(iii). 

5 ‘‘(II) MAXIMUM AMOUNT OF

6 TECHNICAL ASSISTANCE GRANT.—The 

7 maximum amount of a grant under 

8 this clause shall be in an amount 

9 equal to not more than 25 percent of 

10 the total outstanding balance of 

11 microloans made by the microenter12 prise development organization under 

13 clause (iii), as of the date the grant is 

14 awarded. 

15 ‘‘(vi) ADMINISTRATIVE EXPENSES.— 

16 Not more than 10 percent of a grant re17 ceived by a microenterprise development 

18 organization for a fiscal year under this 

19 subparagraph may be used to pay adminis20 trative expenses. 

21 ‘‘(C) ADMINISTRATION.— 

22 ‘‘(i) MATCHING REQUIREMENT.—As a 

23 condition of any grant made under clauses 

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1 velopment organization to match not less 

2 than 15 percent of the total amount of the 

3 grant in the form of matching funds (in4 cluding community development block 

5 grants), indirect costs, or in-kind goods or 

6 services. 

7 ‘‘(ii) OVERSIGHT.—At a minimum, 

8 not later than December 1 of each fiscal 

9 year, a microenterprise development orga10 nization that receives a loan or grant 

11 under this section shall provide to the Sec12 retary such information as the Secretary 

13 may require to ensure that assistance pro14 vided under this section is used for the 

15 purposes for which the loan or grant was 

16 made. 

17 ‘‘(D) AUTHORIZATION OF APPROPRIA18 TIONS.—There is authorized to be appropriated 

19 to carry out this paragraph $40,000,000 for 

20 each of fiscal years 2014 through 2018. 

21 ‘‘(E) MANDATORY FUNDING FOR FISCAL

22 YEARS 2014 THROUGH 2018.—Of the funds of 

23 the Commodity Credit Corporation, the Sec24 retary shall use to carry out this paragraph 

25 $3,000,000 for each of fiscal years 2014 


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1 through 2018, to remain available until ex2 pended. 

3 ‘‘SEC. 3602. RURAL BUSINESS INVESTMENT PROGRAM. 

4 ‘‘(a) DEFINITIONS.—In this section: 

5 ‘‘(1) ARTICLES.—The term ‘articles’ means ar6 ticles of incorporation for an incorporated body or 

7 the functional equivalent or other similar documents 

8 specified by the Secretary for other business entities. 

9 ‘‘(2) DEVELOPMENTAL VENTURE CAPITAL.— 

10 The term ‘developmental venture capital’ means cap11 ital in the form of equity capital investments in rural 

12 business investment companies with an objective of 

13 fostering economic development in rural areas. 

14 ‘‘(3) EMPLOYEE WELFARE BENEFIT PLAN; 

15 PENSION PLAN.— 

16 ‘‘(A) IN GENERAL.—The terms ‘employee 

17 welfare benefit plan’ and ‘pension plan’ have 

18 the meanings given the terms in section 3 of 

19 the Employee Retirement Income Security Act 

20 of 1974 (29 U.S.C. 1002). 

21 ‘‘(B) INCLUSIONS.—The terms ‘employee 

22 welfare benefit plan’ and ‘pension plan’ in23 clude— 

24 ‘‘(i) public and private pension or re25 tirement plans subject to this subtitle; and 


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1 ‘‘(ii) similar plans not covered by this 

2 subtitle that have been established, and 

3 that are maintained, by the Federal Gov4 ernment or any State (including by a polit5 ical subdivision, agency, or instrumentality 

6 of the Federal Government or a State) for 

7 the benefit of employees. 

8 ‘‘(4) EQUITY CAPITAL.—The term ‘equity cap9 ital’ means common or preferred stock or a similar 

10 instrument, including subordinated debt with equity 

11 features. 

12 ‘‘(5) LEVERAGE.—The term ‘leverage’ in13 cludes— 

14 ‘‘(A) debentures purchased or guaranteed 

15 by the Secretary; 

16 ‘‘(B) participating securities purchased or 

17 guaranteed by the Secretary; and 

18 ‘‘(C) preferred securities outstanding as of 

19 the date of enactment of the Agriculture Re20 form, Food, and Jobs Act of 2013. 

21 ‘‘(6) LICENSE.—The term ‘license’ means a li22 cense issued by the Secretary in accordance with in 

23 subsection (d)(5). 

24 ‘‘(7) LIMITED LIABILITY COMPANY.—The term 

25 ‘limited liability company’ means a business entity 


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1 that is organized and operating in accordance with 

2 a State limited liability company law approved by 

3 the Secretary. 

4 ‘‘(8) MEMBER.—The term ‘member’ means, 

5 with respect to a rural business investment company 

6 that is a limited liability company, a holder of an 

7 ownership interest, or a person otherwise admitted 

8 to membership in the limited liability company. 

9 ‘‘(9) OPERATIONAL ASSISTANCE.—The term 

10 ‘operational assistance’ means management, mar11 keting, and other technical assistance that assists a 

12 rural business concern with business development. 

13 ‘‘(10) PARTICIPATION AGREEMENT.—The term 

14 ‘participation agreement’ means an agreement, be15 tween the Secretary and a rural business investment 

16 company granted final approval under subsection 

17 (d)(5), that requires the rural business investment 

18 company to make investments in smaller enterprises 

19 in rural areas. 

20 ‘‘(11) PRIVATE CAPITAL.— 

21 ‘‘(A) IN GENERAL.—The term ‘private cap22 ital’ means the total of— 

23 ‘‘(i)(I) the paid-in capital and paid-in 

24 surplus of a corporate rural business in25 vestment company; 


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1 ‘‘(II) the contributed capital of the 

2 partners of a partnership rural business in3 vestment company; or 

4 ‘‘(III) the equity investment of the 

5 members of a limited liability company 

6 rural business investment company; and 

7 ‘‘(ii) unfunded binding commitments 

8 from investors that meet criteria estab9 lished by the Secretary to contribute cap10 ital to the rural business investment com11 pany, except that— 

12 ‘‘(I) unfunded commitments may 

13 be counted as private capital for pur14 poses of approval by the Secretary of 

15 any request for leverage; but 

16 ‘‘(II) leverage shall not be funded 

17 based on the commitments. 

18 ‘‘(B) EXCLUSIONS.—The term ‘private 

19 capital’ does not include— 

20 ‘‘(i) any funds borrowed by a rural 

21 business investment company from any 

22 source; 

23 ‘‘(ii) any funds obtained through the 

24 issuance of leverage; or 


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1 ‘‘(iii) any funds obtained directly or 

2 indirectly from the Federal Government or 

3 any State (including by a political subdivi4 sion, agency, or instrumentality of the 

5 Federal Government or a State), except 

6 for— 

7 ‘‘(I) funds obtained from the 

8 business revenues (excluding any gov9 ernmental appropriation) of any Fed10 erally chartered or government-spon11 sored enterprise established prior to 

12 the date of enactment of the Agri13 culture Reform, Food, and Jobs Act 

14 of 2013; 

15 ‘‘(II) funds invested by an em16 ployee welfare benefit plan or pension 

17 plan; and 

18 ‘‘(III) any qualified nonprivate 

19 funds (if the investors of the qualified 

20 nonprivate funds do not control, di21 rectly or indirectly, the management, 

22 board of directors, general partners, 

23 or members of the rural business in24 vestment company). 


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1 ‘‘(12) QUALIFIED NONPRIVATE FUNDS.—The 

2 term ‘qualified nonprivate funds’ means any— 

3 ‘‘(A) funds directly or indirectly invested in 

4 any applicant or rural business investment com5 pany on or before the date of enactment of the 

6 Agriculture Reform, Food, and Jobs Act of 

7 2013 by any Federal agency, other than the 

8 Department, under a provision of law explicitly 

9 mandating the inclusion of those funds in the 

10 definition of the term ‘private capital’; and 

11 ‘‘(B) funds invested in any applicant or 

12 rural business investment company by 1 or 

13 more entities of any State (including by a polit14 ical subdivision, agency, or instrumentality of 

15 the State and including any guarantee extended 

16 by those entities) in an aggregate amount that 

17 does not exceed 33 percent of the private cap18 ital of the applicant or rural business invest19 ment company. 

20 ‘‘(13) RURAL BUSINESS CONCERN.—The term 

21 ‘rural business concern’ means— 

22 ‘‘(A) a public, private, or cooperative for23 profit or nonprofit organization; 

24 ‘‘(B) a for-profit or nonprofit business con25 trolled by an Indian tribe; or 


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1 ‘‘(C) any other person or entity that pri2 marily operates in a rural area, as determined 

3 by the Secretary. 

4 ‘‘(14) RURAL BUSINESS INVESTMENT COM5 PANY.—The term ‘rural business investment com6 pany’ means a company that— 

7 ‘‘(A) has been granted final approval by 

8 the Secretary under subsection (d)(5); and 

9 ‘‘(B) has entered into a participation 

10 agreement with the Secretary. 

11 ‘‘(15) SMALLER ENTERPRISE.— 

12 ‘‘(A) IN GENERAL.—The term ‘smaller en13 terprise’ means any rural business concern that, 

14 together with its affiliates— 

15 ‘‘(i) has— 

16 ‘‘(I) a net financial worth of not 

17 more than $6,000,000, as of the date 

18 on which assistance is provided under 

19 this section to the rural business con20 cern; and 

21 ‘‘(II) except as provided in sub22 paragraph (B), an average net income 

23 for the 2-year period preceding the 

24 date on which assistance is provided 

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1 ness concern, of not more than 

2 $2,000,000, after Federal income 

3 taxes (excluding any carryover losses); 

4 or 

5 ‘‘(ii) satisfies the standard industrial 

6 classification size standards established by 

7 the Administrator of the Small Business 

8 Administration for the industry in which 

9 the rural business concern is primarily en10 gaged. 

11 ‘‘(B) EXCEPTION.—For purposes of sub12 paragraph (A)(i)(II), if the rural business con13 cern is not required by law to pay Federal in14 come taxes at the enterprise level, but is re15 quired to pass income through to the share16 holders, partners, beneficiaries, or other equi17 table owners of the business concern, the net in18 come of the business concern shall be deter19 mined by allowing a deduction in an amount 

20 equal to the total of— 

21 ‘‘(i) if the rural business concern is 

22 not required by law to pay State (and 

23 local, if any) income taxes at the enterprise 

24 level, the product obtained by multi25 plying— 


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1 ‘‘(I) the net income (determined 

2 without regard to this subparagraph); 

3 by 

4 ‘‘(II) the marginal State income 

5 tax rate (or by the combined State 

6 and local income tax rates, as applica7 ble) that would have applied if the 

8 business concern were a corporation; 

9 and 

10 ‘‘(ii) the product obtained by multi11 plying— 

12 ‘‘(I) the net income (so deter13 mined) less any deduction for State 

14 (and local) income taxes calculated 

15 under clause (i); by 

16 ‘‘(II) the marginal Federal in17 come tax rate that would have applied 

18 if the rural business concern were a 

19 corporation. 

20 ‘‘(b) PURPOSES.—The purposes of the Rural Busi21 ness Investment Program established under this section 

22 are— 

23 ‘‘(1) to promote economic development and the 

24 creation of wealth and job opportunities in rural 

25 areas and among individuals living in those areas by 


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1 encouraging developmental venture capital invest2 ments in smaller enterprises primarily located in 

3 rural areas; and 

4 ‘‘(2) to establish a developmental venture cap5 ital program, with the mission of addressing the 

6 unmet equity investment needs of small enterprises 

7 located in rural areas, by authorizing the Sec8 retary— 

9 ‘‘(A) to enter into participation agreements 

10 with rural business investment companies; 

11 ‘‘(B) to guarantee debentures of rural 

12 business investment companies to enable each 

13 rural business investment company to make de14 velopmental venture capital investments in 

15 smaller enterprises in rural areas; and 

16 ‘‘(C) to make grants to rural business in17 vestment companies, and to other entities, for 

18 the purpose of providing operational assistance 

19 to smaller enterprises financed, or expected to 

20 be financed, by rural business investment com21 panies. 

22 ‘‘(c) ESTABLISHMENT.—In accordance with this sub23 title, the Secretary shall establish a Rural Business Invest24 ment Program, under which the Secretary may— 


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1 ‘‘(1) enter into participation agreements with 

2 companies granted final approval under subsection 

3 (d)(5) for the purposes described in subsection (b); 

4 ‘‘(2) guarantee the debentures issued by rural 

5 business investment companies as provided in sub6 section (e); and 

7 ‘‘(3) make grants to rural business investment 

8 companies, and to other entities, under subsection 

9 (h). 

10 ‘‘(d) SELECTION OF RURAL BUSINESS INVESTMENT

11 COMPANIES.— 

12 ‘‘(1) ELIGIBILITY.—A company shall be eligible 

13 to apply to participate, as a rural business invest14 ment company, in the program established under 

15 this section if— 

16 ‘‘(A) the company is a newly formed for17 profit entity or a newly formed for-profit sub18 sidiary of such an entity; 

19 ‘‘(B) the company has a management team 

20 with experience in community development fi21 nancing or relevant venture capital financing; 

22 and 

23 ‘‘(C) the company will invest in enterprises 

24 that will create wealth and job opportunities in 


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1 rural areas, with an emphasis on smaller enter2 prises. 

3 ‘‘(2) APPLICATION.—To participate, as a rural 

4 business investment company, in the program estab5 lished under this section, a company meeting the eli6 gibility requirements of paragraph (1) shall submit 

7 an application to the Secretary that includes— 

8 ‘‘(A) a business plan describing how the 

9 company intends to make successful develop10 mental venture capital investments in identified 

11 rural areas; 

12 ‘‘(B) information regarding the community 

13 development finance or relevant venture capital 

14 qualifications and general reputation of the 

15 management of the company; 

16 ‘‘(C) a description of how the company in17 tends to work with community-based organiza18 tions and local entities (including local economic 

19 development companies, local lenders, and local 

20 investors) and to seek to address the unmet eq21 uity capital needs of the communities served; 

22 ‘‘(D) a proposal describing how the com23 pany intends to use the grant funds provided 

24 under this section to provide operational assist25 ance to smaller enterprises financed by the 


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1 company, including information regarding 

2 whether the company intends to use licensed 

3 professionals, as necessary, on the staff of the 

4 company or from an outside entity; 

5 ‘‘(E) with respect to binding commitments 

6 to be made to the company under this section, 

7 an estimate of the ratio of cash to in-kind con8 tributions; 

9 ‘‘(F) a description of the criteria to be 

10 used to evaluate whether and to what extent the 

11 company meets the purposes of the program es12 tablished under this section; 

13 ‘‘(G) information regarding the manage14 ment and financial strength of any parent firm, 

15 affiliated firm, or any other firm essential to 

16 the success of the business plan of the com17 pany; and 

18 ‘‘(H) such other information as the Sec19 retary may require. 

20 ‘‘(3) STATUS.—Not later than 90 days after the 

21 initial receipt by the Secretary of an application 

22 under this subsection, the Secretary shall provide to 

23 the applicant a written report describing the status 

24 of the application and any requirements remaining 

25 for completion of the application. 


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1 ‘‘(4) MATTERS CONSIDERED.—In reviewing and 

2 processing any application under this subsection, the 

3 Secretary shall— 

4 ‘‘(A) determine whether— 

5 ‘‘(i) the applicant meets the require6 ments of paragraph (5); and 

7 ‘‘(ii) the management of the applicant 

8 is qualified and has the knowledge, experi9 ence, and capability necessary to comply 

10 with this section; 

11 ‘‘(B) take into consideration— 

12 ‘‘(i) the need for and availability of fi13 nancing for rural business concerns in the 

14 geographic area in which the applicant is 

15 to commence business; 

16 ‘‘(ii) the general business reputation 

17 of the owners and management of the ap18 plicant; and 

19 ‘‘(iii) the probability of successful op20 erations of the applicant, including ade21 quate profitability and financial soundness; 

22 and 

23 ‘‘(C) not take into consideration any pro24 jected shortage or unavailability of grant funds 

25 or leverage. 


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1 ‘‘(5) APPROVAL; LICENSE.— 

2 ‘‘(A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the Secretary may approve 

4 an applicant to operate as a rural business in5 vestment company under this subtitle and li6 cense the applicant as a rural business invest7 ment company, if— 

8 ‘‘(i) the Secretary determines that the 

9 application satisfies the requirements of 

10 paragraph (2); 

11 ‘‘(ii) the area in which the rural busi12 ness investment company is to conduct its 

13 operations, and establishment of branch of14 fices or agencies (if authorized by the arti15 cles), are approved by the Secretary; and 

16 ‘‘(iii) the applicant enters into a par17 ticipation agreement with the Secretary. 

18 ‘‘(B) CAPITAL REQUIREMENTS.— 

19 ‘‘(i) IN GENERAL.—Notwithstanding 

20 any other provision of this section, the Sec21 retary may approve an applicant to operate 

22 as a rural business investment company 

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1 pany, if the Secretary determines that the 

2 applicant— 

3 ‘‘(I) has private capital as deter4 mined by the Secretary; 

5 ‘‘(II) would otherwise be ap6 proved under this section, except that 

7 the applicant does not satisfy the re8 quirements of subsection (i)(3); and 

9 ‘‘(III) has a viable business plan 

10 that— 

11 ‘‘(aa) reasonably projects 

12 profitable operations; and 

13 ‘‘(bb) has a reasonable time14 table for achieving a level of pri15 vate capital that satisfies the re16 quirements of subsection (i)(3). 

17 ‘‘(ii) LEVERAGE.—An applicant ap18 proved under clause (i) shall not be eligible 

19 to receive leverage under this section until 

20 the applicant satisfies the requirements of 

21 section 3602(i)(3). 

22 ‘‘(iii) GRANTS.—An applicant ap23 proved under clause (i) shall be eligible for 

24 grants under subsection (h) in proportion 


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1 to the private capital of the applicant, as 

2 determined by the Secretary. 

3 ‘‘(e) DEBENTURES.— 

4 ‘‘(1) IN GENERAL.—The Secretary may guar5 antee the timely payment of principal and interest, 

6 as scheduled, on debentures issued by any rural 

7 business investment company. 

8 ‘‘(2) TERMS AND CONDITIONS.—The Secretary 

9 may make guarantees under this subsection on such 

10 terms and conditions as the Secretary considers ap11 propriate, except that the term of any debenture 

12 guaranteed under this section shall not exceed 15 

13 years. 

14 ‘‘(3) FULL FAITH AND CREDIT OF THE UNITED

15 STATES.—Section 3901 shall apply to any guarantee 

16 under this subsection. 

17 ‘‘(4) MAXIMUM GUARANTEE.—Under this sub18 section, the Secretary may— 

19 ‘‘(A) guarantee the debentures issued by a 

20 rural business investment company only to the 

21 extent that the total face amount of out22 standing guaranteed debentures of the rural 

23 business investment company does not exceed 

24 the lesser of— 


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1 ‘‘(i) 300 percent of the private capital 

2 of the rural business investment company; 

3 or 

4 ‘‘(ii) $105,000,000; and 

5 ‘‘(B) provide for the use of discounted de6 bentures. 

7 ‘‘(f) ISSUANCE AND GUARANTEE OF TRUST CERTIFI8 CATES.— 

9 ‘‘(1) ISSUANCE.—The Secretary may issue trust 

10 certificates representing ownership of all or a frac11 tional part of debentures issued by a rural business 

12 investment company and guaranteed by the Sec13 retary under this section, if the certificates are 

14 based on and backed by a trust or pool approved by 

15 the Secretary and composed solely of guaranteed de16 bentures. 

17 ‘‘(2) GUARANTEE.— 

18 ‘‘(A) IN GENERAL.—The Secretary may, 

19 under such terms and conditions as the Sec20 retary considers appropriate, guarantee the 

21 timely payment of the principal of and interest 

22 on trust certificates issued by the Secretary or 

23 agents of the Secretary for purposes of this 

24 subsection. 


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1 ‘‘(B) LIMITATION.—Each guarantee under 

2 this paragraph shall be limited to the extent of 

3 principal and interest on the guaranteed deben4 tures that compose the trust or pool. 

5 ‘‘(C) PREPAYMENT OR DEFAULT.— 

6 ‘‘(i) IN GENERAL.— 

7 ‘‘(I) AUTHORITY TO PREPAY.—A 

8 debenture may be prepaid at any time 

9 without penalty. 

10 ‘‘(II) REDUCTION OF GUAR11 ANTEE.—Subject to subclause (I), if a 

12 debenture in a trust or pool is pre13 paid, or in the event of default of such 

14 a debenture, the guarantee of timely 

15 payment of principal and interest on 

16 the trust certificates shall be reduced 

17 in proportion to the amount of prin18 cipal and interest the prepaid deben19 ture represents in the trust or pool. 

20 ‘‘(ii) INTEREST.—Interest on prepaid 

21 or defaulted debentures shall accrue and be 

22 guaranteed by the Secretary only through 

23 the date of payment of the guarantee. 

24 ‘‘(iii) REDEMPTION.—At any time 

25 during the term of a trust certificate, the 


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1 trust certificate may be called for redemp2 tion due to prepayment or default of all 

3 debentures. 

4 ‘‘(3) FULL FAITH AND CREDIT OF THE UNITED

5 STATES.—Section 3901 shall apply to any guarantee 

6 of a trust certificate issued by the Secretary under 

7 this section. 

8 ‘‘(4) SUBROGATION AND OWNERSHIP RIGHTS.— 

9 ‘‘(A) SUBROGATION.—If the Secretary 

10 pays a claim under a guarantee issued under 

11 this section, the claim shall be subrogated fully 

12 to the rights satisfied by the payment. 

13 ‘‘(B) OWNERSHIP RIGHTS.—No Federal, 

14 State, or local law shall preclude or limit the ex15 ercise by the Secretary of the ownership rights 

16 of the Secretary in a debenture residing in a 

17 trust or pool against which 1 or more trust cer18 tificates are issued under this subsection. 

19 ‘‘(5) MANAGEMENT AND ADMINISTRATION.— 

20 ‘‘(A) REGISTRATION.—The Secretary shall 

21 provide for a central registration of all trust 

22 certificates issued under this subsection. 

23 ‘‘(B) CREATION OF POOLS.—The Secretary 

24 may— 


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1 ‘‘(i) maintain such commercial bank 

2 accounts or investments in obligations of 

3 the United States as may be necessary to 

4 facilitate the creation of trusts or pools 

5 backed by debentures guaranteed under 

6 this subtitle; and 

7 ‘‘(ii) issue trust certificates to facili8 tate the creation of those trusts or pools. 

9 ‘‘(C) FIDELITY BOND OR INSURANCE RE10 QUIREMENT.—Any agent performing functions 

11 on behalf of the Secretary under this paragraph 

12 shall provide a fidelity bond or insurance in 

13 such amount as the Secretary considers to be 

14 necessary to fully protect the interests of the 

15 United States. 

16 ‘‘(D) REGULATION OF BROKERS AND

17 DEALERS.—The Secretary may regulate brokers 

18 and dealers in trust certificates issued under 

19 this subsection. 

20 ‘‘(E) ELECTRONIC REGISTRATION.—Noth21 ing in this paragraph prohibits the use of a 

22 book-entry or other electronic form of registra23 tion for trust certificates issued under this sub24 section. 

25 ‘‘(g) FEES.— 


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1 ‘‘(1) IN GENERAL.—The Secretary may charge 

2 a fee that does not exceed $500 with respect to any 

3 guarantee or grant issued under this section. 

4 ‘‘(2) TRUST CERTIFICATE.—Notwithstanding 

5 paragraph (1), the Secretary shall not collect a fee 

6 for any guarantee of a trust certificate under sub7 section (f), except that any agent of the Secretary 

8 may collect a fee that does not exceed $500 for the 

9 functions described in subsection (f)(5)(B). 

10 ‘‘(3) LICENSE.— 

11 ‘‘(A) IN GENERAL.—Except as provided in 

12 subparagraph (C), the Secretary may prescribe 

13 fees to be paid by each applicant for a license 

14 to operate as a rural business investment com15 pany under this section. 

16 ‘‘(B) USE OF AMOUNTS.—Fees collected 

17 under this paragraph— 

18 ‘‘(i) shall be deposited in the account 

19 for salaries and expenses of the Secretary; 

20 ‘‘(ii) are authorized to be appropriated 

21 solely to cover the costs of licensing exami22 nations; and 

23 ‘‘(iii) shall— 

24 ‘‘(I) in the case of a license 

25 issued before the date of enactment of 


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1 the Agriculture Reform, Food, and 

2 Jobs Act of 2013, not exceed $500 for 

3 any fee collected under this para4 graph; and 

5 ‘‘(II) in the case of a license 

6 issued after the date of enactment of 

7 the Agriculture Reform, Food, and 

8 Jobs Act of 2013, be a rate as deter9 mined by the Secretary. 

10 ‘‘(C) PROHIBITION ON COLLECTION OF

11 CERTAIN FEES.—In the case of a license de12 scribed in subparagraph (A) that was approved 

13 before July 1, 2007, the Secretary shall not col14 lect any fees due on or after the date of enact15 ment of the Agriculture Reform, Food, and 

16 Jobs Act of 2013. 

17 ‘‘(h) OPERATIONAL ASSISTANCE GRANTS.— 

18 ‘‘(1) IN GENERAL.—In accordance with this 

19 subsection, the Secretary may make grants to rural 

20 business investment companies and to other entities, 

21 as authorized by this section, to provide operational 

22 assistance to smaller enterprises financed, or ex23 pected to be financed, by the entities. 

24 ‘‘(2) TERMS.—Grants made under this sub25 section shall be made over a multiyear period (not 


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1 to exceed 10 years) under such terms as the Sec2 retary may require. 

3 ‘‘(3) USE OF FUNDS.—The proceeds of a grant 

4 made under this subsection may be used by the rural 

5 business investment company receiving the grant 

6 only to provide operational assistance in connection 

7 with an equity or prospective equity investment in a 

8 business located in a rural area. 

9 ‘‘(4) SUBMISSION OF PLANS.—A rural business 

10 investment company shall be eligible for a grant 

11 under this subsection only if the rural business in12 vestment company submits to the Secretary, in such 

13 form and manner as the Secretary may require, a 

14 plan for use of the grant. 

15 ‘‘(5) GRANT AMOUNT.— 

16 ‘‘(A) RURAL BUSINESS INVESTMENT COM17 PANIES.—The amount of a grant made under 

18 this subsection to a rural business investment 

19 company shall be equal to the lesser of— 

20 ‘‘(i) 10 percent of the private capital 

21 raised by the rural business investment 

22 company; or 

23 ‘‘(ii) $1,000,000. 

24 ‘‘(6) OTHER ENTITIES.—The amount of a 

25 grant made under this subsection to any entity other 


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1 than a rural business investment company shall be 

2 equal to the resources (in cash or inkind) raised by 

3 the entity in accordance with the requirements appli4 cable to rural business investment companies under 

5 this section. 

6 ‘‘(i) RURAL BUSINESS INVESTMENT COMPANIES.— 

7 ‘‘(1) ORGANIZATION.—For purposes of this 

8 subsection, a rural business investment company 

9 shall— 

10 ‘‘(A) be an incorporated body, a limited li11 ability company, or a limited partnership orga12 nized and chartered or otherwise existing under 

13 State law solely for the purpose of performing 

14 the functions and conducting the activities au15 thorized by this section; and 

16 ‘‘(B)(i) if incorporated, have succession for 

17 a period of not less than 30 years unless earlier 

18 dissolved by the shareholders of the rural busi19 ness investment company; and 

20 ‘‘(ii) if a limited partnership or a limited li21 ability company, have succession for a period of 

22 not less than 10 years; and 

23 ‘‘(iii) possess the powers reasonably nec24 essary to perform the functions and conduct the 

25 activities. 


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1 ‘‘(2) ARTICLES.—The articles of any rural busi2 ness investment company— 

3 ‘‘(A) shall specify in general terms— 

4 ‘‘(i) the purposes for which the rural 

5 business investment company is formed; 

6 ‘‘(ii) the name of the rural business 

7 investment company; 

8 ‘‘(iii) the 1 or more areas in which the 

9 operations of the rural business investment 

10 company are to be carried out; 

11 ‘‘(iv) the place where the principal of12 fice of the rural business investment com13 pany is to be located; and 

14 ‘‘(v) the amount and classes of the 

15 shares of capital stock of the rural busi16 ness investment company; 

17 ‘‘(B) may contain any other provisions 

18 consistent with this section that the rural busi19 ness investment company may determine appro20 priate to adopt for the regulation of the busi21 ness of the rural business investment company 

22 and the conduct of the affairs of the rural busi23 ness investment company; and 

24 ‘‘(C) shall be subject to the approval of the 

25 Secretary. 


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1 ‘‘(3) CAPITAL REQUIREMENTS.— 

2 ‘‘(A) IN GENERAL.—Each rural business 

3 investment company shall be required to meet 

4 the capital requirements as provided by the Sec5 retary. 

6 ‘‘(B) TIME FRAME.—Each rural business 

7 investment company shall have a period of 2 

8 years to meet the capital requirements of this 

9 paragraph. 

10 ‘‘(C) ADEQUACY.—In addition to the re11 quirements of subparagraph (A), the Secretary 

12 shall— 

13 ‘‘(i) determine whether the private 

14 capital of each rural business investment 

15 company is adequate to ensure a reason16 able prospect that the rural business in17 vestment company will be operated soundly 

18 and profitably, and managed actively and 

19 prudently in accordance with the articles of 

20 the rural business investment company; 

21 ‘‘(ii) determine that the rural business 

22 investment company will be able to comply 

23 with the requirements of this section; 

24 ‘‘(iii) require that at least 75 percent 

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1 ment company is invested in rural business 

2 concerns; 

3 ‘‘(iv) ensure that the rural business 

4 investment company is designed primarily 

5 to meet equity capital needs of the busi6 nesses in which the rural business invest7 ment company invests and not to compete 

8 with traditional small business financing 

9 by commercial lenders; and 

10 ‘‘(v) require that the rural business 

11 investment company makes short-term 

12 non-equity investments of less than 5 years 

13 only to the extent necessary to preserve an 

14 existing investment. 

15 ‘‘(4) DIVERSIFICATION OF OWNERSHIP.—The 

16 Secretary shall ensure that the management of each 

17 rural business investment company licensed after the 

18 date of enactment of the Agriculture Reform, Food, 

19 and Jobs Act of 2013 is sufficiently diversified from 

20 and unaffiliated with the ownership of the rural 

21 business investment company so as to ensure inde22 pendence and objectivity in the financial manage23 ment and oversight of the investments and oper24 ations of the rural business investment company. 

25 ‘‘(j) FINANCIAL INSTITUTION INVESTMENTS.— 


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1 ‘‘(1) IN GENERAL.—Except as otherwise pro2 vided in this subsection and notwithstanding any 

3 other provision of law, the following banks, associa4 tions, and institutions are eligible both to establish 

5 and invest in any rural business investment company 

6 or in any entity established to invest solely in rural 

7 business investment companies: 

8 ‘‘(A) Any bank or savings association the 

9 deposits of which are insured under the Federal 

10 Deposit Insurance Act (12 U.S.C. 1811 et 

11 seq.), including an investment pool created en12 tirely by such bank or savings association. 

13 ‘‘(B) Any Farm Credit System institution 

14 described in subsection 1.2(a) of the Farm 

15 Credit Act of 1971 (12 U.S.C. 2002(a)). 

16 ‘‘(2) LIMITATION.—No bank, association, or in17 stitution described in paragraph (1) may make in18 vestments described in paragraph (1) that are great19 er than 5 percent of the capital and surplus of the 

20 bank, association, or institution. 

21 ‘‘(3) LIMITATION ON RURAL BUSINESS INVEST22 MENT COMPANIES CONTROLLED BY FARM CREDIT

23 SYSTEM INSTITUTIONS.—If a Farm Credit System 

24 institution described in section 1.2(a) of the Farm 

25 Credit Act of 1971 (12 U.S.C. 2002(a)) holds more 


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1 than 25 percent of the shares of a rural business in2 vestment company, either alone or in conjunction 

3 with other System institutions (or affiliates), the 

4 rural business investment company shall not provide 

5 equity investments in, or provide other financial as6 sistance to, entities that are not otherwise eligible to 

7 receive financing from the Farm Credit System 

8 under that Act (12 U.S.C. 2001 et seq.). 

9 ‘‘(k) EXAMINATIONS.— 

10 ‘‘(1) IN GENERAL.—Each rural business invest11 ment company that participates in the program es12 tablished under this section shall be subject to ex13 aminations made at the direction of the Secretary in 

14 accordance with this subsection. 

15 ‘‘(2) ASSISTANCE OF PRIVATE SECTOR ENTI16 TIES.—An examination under this subsection may be 

17 conducted with the assistance of a private sector en18 tity that has the qualifications and the expertise nec19 essary to conduct such an examination. 

20 ‘‘(3) COSTS.— 

21 ‘‘(A) IN GENERAL.—The Secretary may 

22 assess the cost of an examination under this 

23 section, including compensation of the exam24 iners, against the rural business investment 

25 company examined. 


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1 ‘‘(B) PAYMENT.—Any rural business in2 vestment company against which the Secretary 

3 assesses costs under this subparagraph shall 

4 pay the costs. 

5 ‘‘(4) DEPOSIT OF FUNDS.—Funds collected 

6 under this subsection shall— 

7 ‘‘(A) be deposited in the account that in8 curred the costs for carrying out this sub9 section; 

10 ‘‘(B) be made available to the Secretary to 

11 carry out this subsection, without further ap12 propriation; and 

13 ‘‘(C) remain available until expended. 

14 ‘‘(l) REPORTING REQUIREMENTS.— 

15 ‘‘(1) RURAL BUSINESS INVESTMENT COMPA16 NIES.—Each entity that participates in a program 

17 established under this section shall provide to the 

18 Secretary such information as the Secretary may re19 quire, including— 

20 ‘‘(A) information relating to the measure21 ment criteria that the entity proposed in the 

22 program application of the rural business in23 vestment company; and 

24 ‘‘(B) in each case in which the entity 

25 under this section makes an investment in, or 


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1 a loan or grant to, a business that is not lo2 cated in a rural area, a report on the number 

3 and percentage of employees of the business 

4 who reside in those areas. 

5 ‘‘(2) PUBLIC REPORTS.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall 

7 prepare and make available to the public an an8 nual report on the programs established under 

9 this section, including detailed information on— 

10 ‘‘(i) the number of rural business in11 vestment companies licensed by the Sec12 retary during the previous fiscal year; 

13 ‘‘(ii) the aggregate amount of leverage 

14 that rural business investment companies 

15 have received from the Federal Govern16 ment during the previous fiscal year; 

17 ‘‘(iii) the aggregate number of each 

18 type of leveraged instruments used by 

19 rural business investment companies dur20 ing the previous fiscal year and how each 

21 number compares to previous fiscal years; 

22 ‘‘(iv) the number of rural business in23 vestment company licenses surrendered 

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1 ing the previous fiscal year, identifying the 

2 amount of leverage each rural business in3 vestment company has received from the 

4 Federal Government and the type of lever5 age instruments each rural business invest6 ment company has used; 

7 ‘‘(v) the amount of losses sustained by 

8 the Federal Government as a result of op9 erations under this section during the pre10 vious fiscal year and an estimate of the 

11 total losses that the Federal Government 

12 can reasonably expect to incur as a result 

13 of the operations during the current fiscal 

14 year; 

15 ‘‘(vi) actions taken by the Secretary to 

16 maximize recoupment of funds of the Fed17 eral Government expended to implement 

18 and administer the Rural Business Invest19 ment Program under this section during 

20 the previous fiscal year and to ensure com21 pliance with the requirements of this sec22 tion (including regulations); 

23 ‘‘(vii) the amount of Federal Govern24 ment leverage that each licensee received 


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1 in the previous fiscal year and the types of 

2 leverage instruments each licensee used; 

3 ‘‘(viii) for each type of financing in4 strument, the sizes, types of geographic lo5 cations, and other characteristics of the 

6 small business investment companies using 

7 the instrument during the previous fiscal 

8 year, including the extent to which the in9 vestment companies have used the leverage 

10 from each instrument to make loans or eq11 uity investments in rural areas; and 

12 ‘‘(ix) the actions of the Secretary to 

13 carry out this section 

14 ‘‘(B) PROHIBITION.—In compiling the re15 port required under subparagraph (A), the Sec16 retary may not— 

17 ‘‘(i) compile the report in a manner 

18 that permits identification of any par19 ticular type of investment by an individual 

20 rural business investment company or 

21 small business concern in which a rural 

22 business investment company invests; or 

23 ‘‘(ii) release any information that is 

24 prohibited under section 1905 of title 18, 

25 United States Code. 


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1 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 

2 is authorized to be appropriated to carry out this section 

3 $25,000,000 for the period of fiscal years 2008 through 

4 2018.’’. 

5 ‘‘CHAPTER 3—GENERAL RURAL 

6 DEVELOPMENT PROVISIONS 

7 ‘‘SEC. 3701. GENERAL PROVISIONS FOR LOANS AND 

8 GRANTS. 

9 ‘‘(a) PERIOD FOR REPAYMENT.—Unless otherwise 

10 specifically provided for in this subtitle, the period for re11 payment of a loan under this subtitle shall not exceed 40 

12 years. 

13 ‘‘(b) INTEREST RATES.— 

14 ‘‘(1) IN GENERAL.—Except as otherwise pro15 vided in this title, the interest rate on a loan under 

16 this subtitle shall be determined by the Secretary at 

17 a rate— 

18 ‘‘(A) not to exceed a sum obtained by add19 ing— 

20 ‘‘(i) the current average market yield 

21 on outstanding marketable obligations of 

22 the United States with remaining periods 

23 to maturity comparable to the average ma24 turity of the loan; and 


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1 ‘‘(ii) an amount not to exceed 1 per2 cent, as determined by the Secretary; and 

‘‘(B) adjusted to the nearest 1 3 ⁄8 of 1 per4 cent. 

5 ‘‘(2) WATER AND WASTE FACILITY LOANS AND

6 COMMUNITY FACILITIES LOANS.— 

7 ‘‘(A) IN GENERAL.—Notwithstanding any 

8 provision of State law limiting the rate or 

9 amount of interest that may be charged, taken, 

10 received, or reserved, except as provided in sub11 paragraph (C) and paragraph (4), the interest 

12 rate on a loan (other than a guaranteed loan) 

13 to a public body or nonprofit association (in14 cluding an Indian tribe) for a water or waste 

15 disposal facility or essential community facility 

16 shall be determined by the Secretary at a rate 

17 not to exceed— 

18 ‘‘(i) the current market yield on out19 standing municipal obligations with re20 maining periods to maturity comparable to 

21 the average maturity for the loan, and adjusted to the nearest 1 22 ⁄8 of 1 percent; 

23 ‘‘(ii) 5 percent per year for a loan 

24 that is for the upgrading of a facility or 

25 construction of a new facility as required 


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1 to meet applicable health or sanitary 

2 standards in— 

3 ‘‘(I) an area in which the median 

4 family income of the persons to be 

5 served by the facility is below the pov6 erty line (as defined in section 673 of 

7 the Community Services Block Grant 

8 Act (42 U.S.C. 9902)); and 

9 ‘‘(II) any areas the Secretary 

10 may designate in which a significant 

11 percentage of the persons to be served 

12 by the facilities are low-income per13 sons, as determined by the Secretary; 

14 and 

15 ‘‘(iii) 7 percent per year for a loan for 

16 a facility that does not qualify for the 5 

17 percent per year interest rate prescribed in 

18 clause (ii) but that is located in an area in 

19 a State in which the median household in20 come of the persons to be served by the fa21 cility does not exceed 100 percent of the 

22 statewide nonmetropolitan median house23 hold income for the State. 

24 ‘‘(B) HEALTH CARE AND RELATED FACILI25 TIES.—Notwithstanding subparagraph (A), the 


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1 Secretary shall establish a rate for a loan for a 

2 health care or related facility that is— 

3 ‘‘(i) based solely on the income of the 

4 area to be served; and 

5 ‘‘(ii) otherwise consistent with sub6 paragraph (A). 

7 ‘‘(C) INTEREST RATES FOR WATER AND

8 WASTE DISPOSAL FACILITIES LOANS.— 

9 ‘‘(i) IN GENERAL.—Except as pro10 vided in clause (ii) and notwithstanding 

11 subparagraph (A), in the case of a direct 

12 loan for a water or waste disposal facil13 ity— 

14 ‘‘(I) in the case of a loan that 

15 would be subject to the 5 percent in16 terest rate limitation under subpara17 graph (A), the Secretary shall estab18 lish the interest rate at a rate that is 

19 equal to 60 percent of the current 

20 market yield for outstanding munic21 ipal obligations with remaining peri22 ods to maturity comparable to the av23 erage maturity of the loan, adjusted 

to the nearest 1 24 ⁄8 of 1 percent; and 


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1 ‘‘(II) in the case of a loan that 

2 would be subject to the 7 percent limi3 tation under subparagraph (A), the 

4 Secretary shall establish the interest 

5 rate at a rate that is equal to 80 per6 cent of the current market yield for 

7 outstanding municipal obligations 

8 with remaining periods to maturity 

9 comparable to the average maturity of 

the loan, adjusted to the nearest 1 10 ⁄8 of 

11 1 percent. 

12 ‘‘(ii) EXCEPTION.—Clause (i) does not 

13 apply to a loan for a specific project that 

14 is the subject of a loan that has been ap15 proved, but not closed, as of the date of 

16 enactment of the Agriculture Reform, 

17 Food, and Jobs Act of 2013. 

18 ‘‘(3) INTEREST RATES ON BUSINESS AND

19 OTHER LOANS.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 paragraph (4), the interest rates on loans under 

22 sections 3501(a)(1) (other than guaranteed 

23 loans and loans as described in paragraph 

24 (2)(A)) shall be as determined by the Secretary 

25 in accordance with subparagraph (B). 


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1 ‘‘(B) MINIMUM RATE.—The interest rates 

2 described in subparagraph (A) shall be not less 

3 than the sum obtained by adding— 

4 ‘‘(i) such rates as determined by the 

5 Secretary of the Treasury taking into con6 sideration the current average market yield 

7 on outstanding marketable obligations of 

8 the United States with remaining periods 

9 to maturity comparable to the average ma10 turities of such loans, adjusted in the judg11 ment of the Secretary of the Treasury to 

12 provide for rates comparable to the rates 

13 prevailing in the private market for similar 

14 loans and considering the insurance by the 

15 Secretary of the loans; and 

16 ‘‘(ii) an additional charge, prescribed 

17 by the Secretary, to cover the losses of the 

18 Secretary and cost of administration, 

19 which shall be deposited in the Rural De20 velopment Insurance Fund, and further 

adjusted to the nearest 1 21 ⁄8 of 1 percent. 

22 ‘‘(4) INTEREST RATES ADJUSTMENTS.— 

23 ‘‘(A) ADJUSTMENTS.—Notwithstanding 

24 any other provision of this subsection, in the 

25 case of loans (other than guaranteed loans) 


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1 made or guaranteed under the authorities of 

2 this title specified in subparagraph (C) for ac3 tivities that involve the use of prime farmland, 

4 the interest rates shall be the interest rates oth5 erwise applicable under this section increased 

6 by 2 percent per year. 

7 ‘‘(B) PRIME FARMLAND.— 

8 ‘‘(i) IN GENERAL.—Wherever prac9 ticable, construction by a State, munici10 pality, or other political subdivision of local 

11 government that is supported by loans de12 scribed in subparagraph (A) shall be 

13 placed on land that is not prime farmland, 

14 in order to preserve the maximum prac15 ticable quantity of prime farmlands for 

16 production of food and fiber. 

17 ‘‘(ii) INCREASED RATE.—In any case 

18 in which other options exist for the siting 

19 of construction described in clause (i) and 

20 the governmental authority still desires to 

21 carry out the construction on prime farm22 land, the 2-percent interest rate increase 

23 provided by this paragraph shall apply, but 

24 that increased interest rate shall not apply 

25 where such other options do not exist. 


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1 ‘‘(C) APPLICABLE AUTHORITIES.—The au2 thorities referred to in subparagraph (A) are— 

3 ‘‘(i) the provisions of section 3502(a) 

4 relating to loans for recreational develop5 ments and essential community facilities; 

6 ‘‘(ii) section 3601(e)(2)(A); and 

7 ‘‘(iii) section 3601(c). 

8 ‘‘(c) PAYMENT OF CHARGES.—A borrower of a loan 

9 made or guaranteed under this subtitle shall pay such fees 

10 and other charges as the Secretary may require, and pre11 pay to the Secretary such taxes and insurance as the Sec12 retary may require, on such terms and conditions as the 

13 Secretary may prescribe. 

14 ‘‘(d) SECURITY.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall take as 

16 security for an obligation entered into in connection 

17 with a loan made under this subtitle such security 

18 as the Secretary may require. 

19 ‘‘(2) LIENS TO UNITED STATES.—An instru20 ment for security under paragraph (1) may con21 stitute a lien running to the United States notwith22 standing the fact that the note for the security may 

23 be held by a lender other than the United States. 

24 ‘‘(3) MULTIPLE LOANS.—A borrower may use 

25 the same collateral to secure 2 or more loans made 


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1 or guaranteed under this subtitle, except that the 

2 outstanding amount of the loans may not exceed the 

3 total value of the collateral. 

4 ‘‘(e) LEGAL COUNSEL FOR SMALL LOANS.—In the 

5 case of a loan of less than $500,000 made or guaranteed 

6 under section 3501 that is evidenced by a note or mort7 gage (as distinguished from a bond issue), the borrower 

8 shall not be required to appoint bond counsel to review 

9 the legal validity of the loan if the Secretary has available 

10 legal counsel to perform the review. 

11 ‘‘SEC. 3702. STRATEGIC ECONOMIC AND COMMUNITY DE12 VELOPMENT. 

13 ‘‘(a) PRIORITY.—In the case of any rural develop14 ment program authorized by this subtitle, the Secretary 

15 may give priority to applications that are otherwise eligible 

16 and support strategic community and economic develop17 ment plans on a multijurisdictional basis, as approved by 

18 the Secretary. 

19 ‘‘(b) EVALUATION.—In evaluating strategic applica20 tions, the Secretary shall give a higher priority to strategic 

21 applications for a plan described in subsection (a) that 

22 demonstrate— 

23 ‘‘(1) the plan was developed through the col24 laboration of multiple stakeholders in the service 

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1 binations of stakeholders such as State, local, and 

2 tribal governments, nonprofit institutions, institu3 tions of higher education, and private entities; 

4 ‘‘(2) an understanding of the applicable re5 gional resources that could support the plan, includ6 ing natural resources, human resources, infrastruc7 ture, and financial resources; 

8 ‘‘(3) investment from other Federal agencies; 

9 ‘‘(4) investment from philanthropic organiza10 tions; and 

11 ‘‘(5) clear objectives for the plan and the ability 

12 to establish measurable performance measures and 

13 to track progress toward meeting the objectives. 

14 ‘‘(c) FUNDS.— 

15 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

16 the Secretary may reserve for projects that support 

17 multijurisdictional strategic community and eco18 nomic development plans described in subsection (a) 

19 an amount that does not exceed— 

20 ‘‘(A) 20 percent of the funds made avail21 able for a fiscal year for a functional category 

22 described in paragraph (2); and 

23 ‘‘(B) 15 percent of the total funds avail24 able for all functional categories. 


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1 ‘‘(2) FUNCTIONAL CATEGORIES.—The function 

2 categories described in this subsection are the fol3 lowing: 

4 ‘‘(A) RURAL COMMUNITY FACILITIES.— 

5 The rural community development category 

6 consists of all amounts made available for com7 munity facility grants and direct and guaran8 teed loans under section 3502. 

9 ‘‘(B) RURAL UTILITIES.—The rural utili10 ties category consists of all amounts made 

11 available for— 

12 ‘‘(i) water or waste disposal grants or 

13 direct or guaranteed loans under section 

14 3501(a); 

15 ‘‘(ii) emergency community water as16 sistance grants under section 3501(e)(2); 

17 ‘‘(iii) solid waste management grants 

18 under section 3501(e)(4); or 

19 ‘‘(iv) rural water or wastewater tech20 nical assistance and training grants under 

21 section 3501(e)(5). 

22 ‘‘(C) RURAL BUSINESS AND COOPERATIVE

23 DEVELOPMENT.—The rural business and coop24 erative development category consists of all 

25 amounts made available for— 


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1 ‘‘(i) rural business opportunity grants, 

2 rural business enterprise grants, or rural 

3 educational network grants under section 

4 3601(a); or 

5 ‘‘(ii) business and industry direct and 

6 guaranteed loans under section 3601(e). 

7 ‘‘(3) LIMITATION.—The reservation of funds 

8 described in paragraph (2) may only extend through 

9 June 30 of the fiscal year in which the funds were 

10 first made available. 

11 ‘‘SEC. 3703. GUARANTEED RURAL DEVELOPMENT LOANS. 

12 ‘‘(a) IN GENERAL.—The Secretary may provide fi13 nancial assistance to a borrower for a purpose provided 

14 in this subtitle by guaranteeing a loan made by any Fed15 eral or State chartered bank, savings and loan association, 

16 cooperative lending agency, or other legally organized 

17 lending agency. 

18 ‘‘(b) INTEREST RATE.—The interest rate payable by 

19 a borrower on the portion of a guaranteed loan that is 

20 sold by a lender to the secondary market under this sub21 title may be lower than the interest rate charged on the 

22 portion retained by the lender. 

23 ‘‘(c) MAXIMUM GUARANTEE OF 90 PERCENT.—Ex24 cept as provided in subsections (d) and (e), a loan guarVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00725 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 antee under this subtitle shall be for not more than 90 

2 percent of the principal and interest due on the loan. 

3 ‘‘(d) REFINANCED LOANS GUARANTEED AT 95 PER4 CENT.—The Secretary shall guarantee 95 percent of— 

5 ‘‘(1) in the case of a loan that solely refinances 

6 a direct loan made under this subtitle, the principal 

7 and interest due on the loan on the date of the refi8 nancing; or 

9 ‘‘(2) in the case of a loan that is used for mul10 tiple purposes, the portion of the loan that refi11 nances the principal and interest due on a direct 

12 loan made under this subtitle that is outstanding on 

13 the date on which the loan is guaranteed. 

14 ‘‘(e) RISK OF LOSS.— 

15 ‘‘(1) IN GENERAL.—Subject to subsection (b), 

16 the Secretary may not make a loan under section 

17 3501 or 3601 unless the Secretary determines that 

18 no other lender is willing to make the loan and as19 sume 10 percent of the potential loss to be sustained 

20 from the loan. 

21 ‘‘(2) EXCEPTION FOR NONPROFIT GROUPS.— 

22 Paragraph (1) shall not apply to a public body or 

23 nonprofit association, including an Indian tribe. 


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1 ‘‘SEC. 3704. RURAL DEVELOPMENT INSURANCE FUND. 

2 ‘‘(a) DEFINITION OF RURAL DEVELOPMENT

3 LOAN.—In this section, the term ‘rural development loan’ 

4 means a loan provided for by section 3501 or 3601. 

5 ‘‘(b) ESTABLISHMENT.—There is established in the 

6 Treasury of the United States a fund to be known as the 

7 ‘Rural Development Insurance Fund’ that shall be used 

8 by the Secretary to discharge the obligations of the Sec9 retary under contracts making or guaranteeing rural de10 velopment loans. 

11 ‘‘SEC. 3705. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 

12 ‘‘(a) IN GENERAL.—The Secretary may designate ad13 ditional areas as rural economic area partnership zones 

14 to be assisted under this chapter— 

15 ‘‘(1) through an open, competitive process; and 

16 ‘‘(2) with priority given to rural areas— 

17 ‘‘(A) with excessive unemployment or 

18 underemployment, a high percentage of low-in19 come residents, or high rates of outmigration, 

20 as determined by the Secretary; and 

21 ‘‘(B) that the Secretary determines have a 

22 substantial need for assistance. 

23 ‘‘(b) REQUIREMENTS.—The Secretary shall carry out 

24 those rural economic area partnership zones administra25 tively in effect on the date of enactment of the Agriculture 

26 Reform, Food, and Jobs Act of 2013 in accordance with 


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1 the terms and conditions contained in the memoranda of 

2 agreement entered into by the Secretary for the rural eco3 nomic area partnership zones. 

4 ‘‘SEC. 3706. STREAMLINING APPLICATIONS AND IMPROV5 ING ACCESSIBILITY OF RURAL DEVELOP6 MENT PROGRAMS. 

7 ‘‘The Secretary shall expedite the process of creating 

8 user-friendly and accessible application forms and proce9 dures prioritizing programs and applications at the indi10 vidual applicant level with an emphasis on utilizing cur11 rent technology including online applications and submis12 sion processes. 

13 ‘‘SEC. 3707. STATE RURAL DEVELOPMENT PARTNERSHIP. 

14 ‘‘(a) DEFINITIONS.—In this section: 

15 ‘‘(1) AGENCY WITH RURAL RESPONSIBIL16 ITIES.—The term ‘agency with rural responsibilities’ 

17 means any executive agency (as defined in section 

18 105 of title 5, United States Code) that implements 

19 a Federal law, or administers a program, targeted at 

20 or having a significant impact on rural areas. 

21 ‘‘(2) PARTNERSHIP.—The term ‘Partnership’ 

22 means the State Rural Development Partnership 

23 continued by subsection (b). 

24 ‘‘(3) STATE RURAL DEVELOPMENT COUNCIL.— 

25 The term ‘State rural development council’ means a 


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1 State rural development council that meets the re2 quirements of subsection (c). 

3 ‘‘(b) PARTNERSHIP.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall sup5 port the State Rural Development Partnership com6 prised of State rural development councils. 

7 ‘‘(2) PURPOSES.—The purposes of the Partner8 ship are to empower and build the capacity of 

9 States, regions, and rural communities to design 

10 flexible and innovative responses to their rural devel11 opment needs in a manner that maximizes collabo12 rative public- and private-sector cooperation and 

13 minimizes regulatory redundancy. 

14 ‘‘(3) COORDINATING PANEL.—A panel con15 sisting of representatives of State rural development 

16 councils shall be established— 

17 ‘‘(A) to lead and coordinate the strategic 

18 operation and policies of the Partnership; and 

19 ‘‘(B) to facilitate effective communication 

20 among the members of the Partnership, includ21 ing the sharing of best practices. 

22 ‘‘(4) ROLE OF FEDERAL GOVERNMENT.—The 

23 role of the Federal Government in the Partnership 

24 may be that of a partner and facilitator, with Fed25 eral agencies authorized— 


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1 ‘‘(A) to cooperate with States to implement 

2 the Partnership; 

3 ‘‘(B) to provide States with the technical 

4 and administrative support necessary to plan 

5 and implement tailored rural development strat6 egies to meet local needs; 

7 ‘‘(C) to ensure that the head of each agen8 cy with rural responsibilities directs appropriate 

9 field staff to participate fully with the State 

10 rural development council within the jurisdic11 tion of the field staff; and 

12 ‘‘(D) to enter into cooperative agreements 

13 with, and to provide grants and other assistance 

14 to, State rural development councils. 

15 ‘‘(c) STATE RURAL DEVELOPMENT COUNCILS.— 

16 ‘‘(1) ESTABLISHMENT.—Notwithstanding chap17 ter 63 of title 31, United States Code, each State 

18 may elect to participate in the Partnership by enter19 ing into an agreement with the Secretary to recog20 nize a State rural development council. 

21 ‘‘(2) COMPOSITION.—A State rural development 

22 council shall— 

23 ‘‘(A) be composed of representatives of 

24 Federal, State, local, and tribal governments, 

25 nonprofit organizations, regional organizations, 


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1 the private sector, and other entities committed 

2 to rural advancement; and 

3 ‘‘(B) have a nonpartisan and nondiscrim4 inatory membership that— 

5 ‘‘(i) is broad and representative of the 

6 economic, social, and political diversity of 

7 the State; and 

8 ‘‘(ii) shall be responsible for the gov9 ernance and operations of the State rural 

10 development council. 

11 ‘‘(3) DUTIES.—A State rural development 

12 council shall— 

13 ‘‘(A) facilitate collaboration among Fed14 eral, State, local, and tribal governments and 

15 the private and nonprofit sectors in the plan16 ning and implementation of programs and poli17 cies that have an impact on rural areas of the 

18 State; 

19 ‘‘(B) monitor, report, and comment on 

20 policies and programs that address, or fail to 

21 address, the needs of the rural areas of the 

22 State; 

23 ‘‘(C) as part of the Partnership, facilitate 

24 the development of strategies to reduce or elimi25 nate conflicting or duplicative administrative or 


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1 regulatory requirements of Federal, State, local, 

2 and tribal governments; and 

3 ‘‘(D)(i) provide to the Secretary an annual 

4 plan with goals and performance measures; and 

5 ‘‘(ii) submit to the Secretary an annual re6 port on the progress of the State rural develop7 ment council in meeting the goals and meas8 ures. 

9 ‘‘(4) FEDERAL PARTICIPATION IN STATE RURAL

10 DEVELOPMENT COUNCILS.— 

11 ‘‘(A) IN GENERAL.—A State Director for 

12 Rural Development of the Department of Agri13 culture, other employees of the Department, 

14 and employees of other Federal agencies with 

15 rural responsibilities shall fully participate as 

16 voting members in the governance and oper17 ations of State rural development councils (in18 cluding activities related to grants, contracts, 

19 and other agreements in accordance with this 

20 section) on an equal basis with other members 

21 of the State rural development councils. 

22 ‘‘(B) CONFLICTS.—Participation by a Fed23 eral employee in a State rural development 

24 council in accordance with this paragraph shall 


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1 not constitute a violation of section 205 or 208 

2 of title 18, United States Code. 

3 ‘‘(d) ADMINISTRATIVE SUPPORT OF THE PARTNER4 SHIP.— 

5 ‘‘(1) DETAIL OF EMPLOYEES.— 

6 ‘‘(A) IN GENERAL.—In order to provide 

7 experience in intergovernmental collaboration, 

8 the head of an agency with rural responsibilities 

9 that elects to participate in the Partnership 

10 may, and is encouraged to, detail to the Sec11 retary for the support of the Partnership 1 or 

12 more employees of the agency with rural re13 sponsibilities without reimbursement for a pe14 riod of up to 1 year. 

15 ‘‘(B) CIVIL SERVICE STATUS.—The detail 

16 shall be without interruption or loss of civil 

17 service status or privilege. 

18 ‘‘(2) ADDITIONAL SUPPORT.—The Secretary 

19 may provide for any additional support staff to the 

20 Partnership as the Secretary determines to be nec21 essary to carry out the duties of the Partnership. 

22 ‘‘(3) INTERMEDIARIES.—The Secretary may 

23 enter into a contract with a qualified intermediary 

24 under which the intermediary shall be responsible 

25 for providing administrative and technical assistance 


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1 to a State rural development council, including ad2 ministering the financial assistance available to the 

3 State rural development council. 

4 ‘‘(e) MATCHING REQUIREMENTS FOR STATE RURAL

5 DEVELOPMENT COUNCILS.— 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), a State rural development council shall 

8 provide matching funds, or in-kind goods or services, 

9 to support the activities of the State rural develop10 ment council in an amount that is not less than 33 

11 percent of the amount of Federal funds received 

12 from a Federal agency under subsection (f)(2). 

13 ‘‘(2) EXCEPTIONS TO MATCHING REQUIREMENT

14 FOR CERTAIN FEDERAL FUNDS.—Paragraph (1) 

15 shall not apply to funds, grants, funds provided 

16 under contracts or cooperative agreements, gifts, 

17 contributions, or technical assistance received by a 

18 State rural development council from a Federal 

19 agency that are used— 

20 ‘‘(A) to support 1 or more specific pro21 gram or project activities; or 

22 ‘‘(B) to reimburse the State rural develop23 ment council for services provided to the Fed24 eral agency providing the funds, grants, funds 

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1 ments, gifts, contributions, or technical assist2 ance. 

3 ‘‘(3) DEPARTMENT’S SHARE.—The Secretary 

4 shall develop a plan to decrease, over time, the share 

5 of the Department of Agriculture of the cost of the 

6 core operations of State rural development councils. 

7 ‘‘(f) FUNDING.— 

8 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

9 There is authorized to be appropriated to carry out 

10 this section $5,000,000 for each of fiscal years 2014 

11 through 2018. 

12 ‘‘(2) FEDERAL AGENCIES.— 

13 ‘‘(A) IN GENERAL.—Notwithstanding any 

14 other provision of law limiting the ability of an 

15 agency, along with other agencies, to provide 

16 funds to a State rural development council in 

17 order to carry out the purposes of this section, 

18 a Federal agency may make grants, gifts, or 

19 contributions to, provide technical assistance to, 

20 or enter into contracts or cooperative agree21 ments with, a State rural development council. 

22 ‘‘(B) ASSISTANCE.—Federal agencies are 

23 encouraged to use funds made available for pro24 grams that have an impact on rural areas to 

25 provide assistance to, and enter into contracts 


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1 with, a State rural development council, as de2 scribed in subparagraph (A). 

3 ‘‘(3) CONTRIBUTIONS.—A State rural develop4 ment council may accept private contributions. 

5 ‘‘(g) TERMINATION.—The authority provided under 

6 this section shall terminate on September 30, 2018. 

7 ‘‘CHAPTER 4—DELTA REGIONAL 

8 AUTHORITY 

9 ‘‘SEC. 3801. DEFINITIONS. 

10 ‘‘In this chapter: 

11 ‘‘(1) AUTHORITY.—The term ‘Authority’ means 

12 the Delta Regional Authority established by section 

13 3802. 

14 ‘‘(2) FEDERAL GRANT PROGRAM.—The term 

15 ‘Federal grant program’ means a Federal grant pro16 gram to provide assistance in— 

17 ‘‘(A) acquiring or developing land; 

18 ‘‘(B) constructing or equipping a highway, 

19 road, bridge, or facility; or 

20 ‘‘(C) carrying out other economic develop21 ment activities. 

22 ‘‘(3) REGION.—The term ‘region’ means the 

23 Lower Mississippi (as defined in section 4 of the 

24 Delta Development Act (42 U.S.C. 3121 note; Pub25 lic Law 100–460)). 


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1 ‘‘SEC. 3802. DELTA REGIONAL AUTHORITY. 

2 ‘‘(a) ESTABLISHMENT.— 

3 ‘‘(1) IN GENERAL.—There is established the 

4 Delta Regional Authority. 

5 ‘‘(2) COMPOSITION.—The Authority shall be 

6 composed of— 

7 ‘‘(A) a Federal member, to be appointed 

8 by the President, with the advice and consent 

9 of the Senate; and 

10 ‘‘(B) the Governor (or a designee of the 

11 Governor) of each State in the region that 

12 elects to participate in the Authority. 

13 ‘‘(3) COCHAIRPERSONS.—The Authority shall 

14 be headed by— 

15 ‘‘(A) the Federal member, who shall serve 

16 as— 

17 ‘‘(i) the Federal cochairperson; and 

18 ‘‘(ii) a liaison between the Federal 

19 Government and the Authority; and 

20 ‘‘(B) a State cochairperson, who shall be— 

21 ‘‘(i) a Governor of a participating 

22 State in the region; and 

23 ‘‘(ii) elected by the State members for 

24 a term of not less than 1 year. 

25 ‘‘(4) ALABAMA.—Notwithstanding any other 

26 provision of law, the State of Alabama shall be a full 


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1 member of the Authority and shall be entitled to all 

2 rights and privileges that the membership affords to 

3 all other participating States in the Authority. 

4 ‘‘(b) ALTERNATE MEMBERS.— 

5 ‘‘(1) STATE ALTERNATES.—The State member 

6 of a participating State may have a single alternate, 

7 who shall be— 

8 ‘‘(A) a resident of that State; and 

9 ‘‘(B) appointed by the Governor of the 

10 State. 

11 ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.— 

12 The President shall appoint an alternate Federal co13 chairperson. 

14 ‘‘(3) QUORUM.—A State alternate shall not be 

15 counted toward the establishment of a quorum of 

16 the Authority in any instance in which a quorum of 

17 the State members is required to be present. 

18 ‘‘(4) DELEGATION OF POWER.—No power or 

19 responsibility of the Authority specified in para20 graphs (2) and (3) of subsection (c), and no voting 

21 right of any Authority member, shall be delegated to 

22 any person— 

23 ‘‘(A) who is not an Authority member; or 

24 ‘‘(B) who is not entitled to vote in Author25 ity meetings. 


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1 ‘‘(c) VOTING.— 

2 ‘‘(1) IN GENERAL.—A decision by the Authority 

3 shall require a majority vote of the Authority (not 

4 including any member representing a State that is 

5 delinquent under subsection (g)(2)(C)) to be effec6 tive. 

7 ‘‘(2) QUORUM.—A quorum of State members 

8 shall be required to be present for the Authority to 

9 make any policy decision, including— 

10 ‘‘(A) a modification or revision of an Au11 thority policy decision; 

12 ‘‘(B) approval of a State or regional devel13 opment plan; and 

14 ‘‘(C) any allocation of funds among the 

15 States. 

16 ‘‘(3) PROJECT AND GRANT PROPOSALS.—The 

17 approval of project and grant proposals shall be— 

18 ‘‘(A) a responsibility of the Authority; and 

19 ‘‘(B) conducted in accordance with section 

20 3809. 

21 ‘‘(4) VOTING BY ALTERNATE MEMBERS.—An 

22 alternate member shall vote in the case of the ab23 sence, death, disability, removal, or resignation of 

24 the Federal or State representative for which the al25 ternate member is an alternate. 


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1 ‘‘(d) DUTIES.—The Authority shall— 

2 ‘‘(1) develop, on a continuing basis, comprehen3 sive and coordinated plans and programs to establish 

4 priorities and approve grants for the economic devel5 opment of the region, giving due consideration to 

6 other Federal, State, and local planning and devel7 opment activities in the region; 

8 ‘‘(2) review, and where appropriate amend, pri9 orities in a development plan for the region (includ10 ing 5-year regional outcome targets); 

11 ‘‘(3) assess the needs and assets of the region 

12 based on available research, demonstrations, inves13 tigations, assessments, and evaluations of the region 

14 prepared by Federal, State, and local agencies, uni15 versities, local development districts, and other non16 profit groups; 

17 ‘‘(4) formulate and recommend to the Gov18 ernors and legislatures of States that participate in 

19 the Authority forms of interstate cooperation; 

20 ‘‘(5) work with State and local agencies in de21 veloping appropriate model legislation; 

22 ‘‘(6)(A) enhance the capacity of, and provide 

23 support for, local development districts in the region; 

24 or 


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1 ‘‘(B) if no local development district exists in 

2 an area in a participating State in the region, foster 

3 the creation of a local development district; 

4 ‘‘(7) encourage private investment in industrial, 

5 commercial, and other economic development 

6 projects in the region; and 

7 ‘‘(8) cooperate with and assist State govern8 ments with economic development programs of par9 ticipating States. 

10 ‘‘(e) ADMINISTRATION.—In carrying out subsection 

11 (d), the Authority may— 

12 ‘‘(1) hold such hearings, sit and act at such 

13 times and places, take such testimony, receive such 

14 evidence, and print or otherwise reproduce and dis15 tribute a description of the proceedings and reports 

16 on actions by the Authority as the Authority con17 siders appropriate; 

18 ‘‘(2) authorize, through the Federal or State co19 chairperson or any other member of the Authority 

20 designated by the Authority, the administration of 

21 oaths if the Authority determines that testimony 

22 should be taken or evidence received under oath; 

23 ‘‘(3) request from any Federal, State, or local 

24 department or agency such information as may be 

25 available to or procurable by the department or 


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1 agency that may be of use to the Authority in car2 rying out duties of the Authority; 

3 ‘‘(4) adopt, amend, and repeal bylaws, rules, 

4 and regulations governing the conduct of Authority 

5 business and the performance of Authority duties; 

6 ‘‘(5) request the head of any Federal depart7 ment or agency to detail to the Authority such per8 sonnel as the Authority requires to carry out duties 

9 of the Authority, each such detail to be without loss 

10 of seniority, pay, or other employee status; 

11 ‘‘(6) request the head of any State department 

12 or agency or local government to detail to the Au13 thority such personnel as the Authority requires to 

14 carry out duties of the Authority, each such detail 

15 to be without loss of seniority, pay, or other em16 ployee status; 

17 ‘‘(7) provide for coverage of Authority employ18 ees in a suitable retirement and employee benefit 

19 system by— 

20 ‘‘(A) making arrangements or entering 

21 into contracts with any participating State gov22 ernment; or 

23 ‘‘(B) otherwise providing retirement and 

24 other employee benefit coverage; 


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1 ‘‘(8) accept, use, and dispose of gifts or dona2 tions of services or real, personal, tangible, or intan3 gible property; 

4 ‘‘(9) enter into and perform such contracts, 

5 leases, cooperative agreements, or other transactions 

6 as are necessary to carry out Authority duties, in7 cluding any contracts, leases, or cooperative agree8 ments with— 

9 ‘‘(A) any department, agency, or instru10 mentality of the United States; 

11 ‘‘(B) any State (including a political sub12 division, agency, or instrumentality of the 

13 State); or 

14 ‘‘(C) any person, firm, association, or cor15 poration; and 

16 ‘‘(10) establish and maintain a central office 

17 and field offices at such locations as the Authority 

18 may select. 

19 ‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal 

20 agency shall— 

21 ‘‘(1) cooperate with the Authority; and 

22 ‘‘(2) provide, on request of the Federal cochair23 person, appropriate assistance in carrying out this 

24 chapter, in accordance with applicable Federal laws 

25 (including regulations). 


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1 ‘‘(g) ADMINISTRATIVE EXPENSES.— 

2 ‘‘(1) IN GENERAL.—Administrative expenses of 

3 the Authority (except for the expenses of the Fed4 eral cochairperson, including expenses of the alter5 nate and staff of the Federal cochairperson, which 

6 shall be paid solely by the Federal Government) 

7 shall be paid— 

8 ‘‘(A) by the Federal Government, in an 

9 amount equal to 50 percent of the administra10 tive expenses; and 

11 ‘‘(B) by the States in the region partici12 pating in the Authority, in an amount equal to 

13 50 percent of the administrative expenses. 

14 ‘‘(2) STATE SHARE.— 

15 ‘‘(A) IN GENERAL.—The share of adminis16 trative expenses of the Authority to be paid by 

17 each State shall be determined by the Author18 ity. 

19 ‘‘(B) NO FEDERAL PARTICIPATION.—The 

20 Federal cochairperson shall not participate or 

21 vote in any decision under subparagraph (A). 

22 ‘‘(C) DELINQUENT STATES.—If a State is 

23 delinquent in payment of the State’s share of 

24 administrative expenses of the Authority under 

25 this subsection— 


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1 ‘‘(i) no assistance under this chapter 

2 shall be furnished to the State (including 

3 assistance to a political subdivision or a 

4 resident of the State); and 

5 ‘‘(ii) no member of the Authority from 

6 the State shall participate or vote in any 

7 action by the Authority. 

8 ‘‘(h) COMPENSATION.— 

9 ‘‘(1) FEDERAL COCHAIRPERSON.—The Federal 

10 cochairperson shall be compensated by the Federal 

11 Government at level III of the Executive Schedule in 

12 subchapter II of chapter 53 of title 5, United States 

13 Code. 

14 ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.— 

15 The alternate Federal cochairperson— 

16 ‘‘(A) shall be compensated by the Federal 

17 Government at level V of the Executive Sched18 ule described in paragraph (1); and 

19 ‘‘(B) when not actively serving as an alter20 nate for the Federal cochairperson, shall per21 form such functions and duties as are delegated 

22 by the Federal cochairperson. 

23 ‘‘(3) STATE MEMBERS AND ALTERNATES.— 

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1 resenting the State on the Authority at the rate 

2 established by law of the State. 

3 ‘‘(B) NO ADDITIONAL COMPENSATION.— 

4 No State member or alternate member shall re5 ceive any salary, or any contribution to or sup6 plementation of salary from any source other 

7 than the State for services provided by the 

8 member or alternate to the Authority. 

9 ‘‘(4) DETAILED EMPLOYEES.— 

10 ‘‘(A) IN GENERAL.—No person detailed to 

11 serve the Authority under subsection (e)(6) 

12 shall receive any salary or any contribution to 

13 or supplementation of salary for services pro14 vided to the Authority from— 

15 ‘‘(i) any source other than the State, 

16 local, or intergovernmental department or 

17 agency from which the person was detailed; 

18 or 

19 ‘‘(ii) the Authority. 

20 ‘‘(B) VIOLATION.—Any person that vio21 lates this paragraph shall be fined not more 

22 than $5,000, imprisoned not more than 1 year, 

23 or both. 

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1 person, and any Federal officer or employee de2 tailed to duty on the Authority under sub3 section (e)(5) shall not be subject to subpara4 graph (A), but shall remain subject to sections 

5 202 through 209 of title 18, United States 

6 Code. 

7 ‘‘(5) ADDITIONAL PERSONNEL.— 

8 ‘‘(A) COMPENSATION.— 

9 ‘‘(i) IN GENERAL.—The Authority 

10 may appoint and fix the compensation of 

11 an executive director and such other per12 sonnel as are necessary to enable the Au13 thority to carry out the duties of the Au14 thority. 

15 ‘‘(ii) EXCEPTION.—Compensation 

16 under clause (i) shall not exceed the max17 imum rate for the Senior Executive Service 

18 under section 5382 of title 5, United 

19 States Code, including any applicable local20 ity-based comparability payment that may 

21 be authorized under section 5304(h)(2)(C) 

22 of that title. 

23 ‘‘(B) EXECUTIVE DIRECTOR.—The execu24 tive director shall be responsible for— 


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1 ‘‘(i) the carrying out of the adminis2 trative duties of the Authority; 

3 ‘‘(ii) direction of the Authority staff; 

4 and 

5 ‘‘(iii) such other duties as the Author6 ity may assign. 

7 ‘‘(C) NO FEDERAL EMPLOYEE STATUS.— 

8 No member, alternate, officer, or employee of 

9 the Authority (except the Federal cochairperson 

10 of the Authority, the alternate and staff for the 

11 Federal cochairperson, and any Federal em12 ployee detailed to the Authority under sub13 section (e)(5)) shall be considered to be a Fed14 eral employee for any purpose. 

15 ‘‘(i) CONFLICTS OF INTEREST.— 

16 ‘‘(1) IN GENERAL.—Except as provided under 

17 paragraph (2), no State member, alternate, officer, 

18 or employee of the Authority shall participate per19 sonally and substantially as a member, alternate, of20 ficer, or employee of the Authority, through decision, 

21 approval, disapproval, recommendation, the ren22 dering of advice, investigation, or otherwise, in any 

23 proceeding, application, request for a ruling or other 

24 determination, contract, claim, controversy, or other 

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1 nate, officer, or employee, there is a financial inter2 est of— 

3 ‘‘(A) the member, alternate, officer, or em4 ployee; 

5 ‘‘(B) the spouse, minor child, partner, or 

6 organization (other than a State or political 

7 subdivision of the State) of the member, alter8 nate, officer, or employee, in which the member, 

9 alternate, officer, or employee is serving as offi10 cer, director, trustee, partner, or employee; or 

11 ‘‘(C) any person or organization with 

12 whom the member, alternate, officer, or em13 ployee is negotiating or has any arrangement 

14 concerning prospective employment. 

15 ‘‘(2) DISCLOSURE.—Paragraph (1) shall not 

16 apply if the State member, alternate, officer, or em17 ployee— 

18 ‘‘(A) immediately advises the Authority of 

19 the nature and circumstances of the proceeding, 

20 application, request for a ruling or other deter21 mination, contract, claim, controversy, or other 

22 particular matter presenting a potential conflict 

23 of interest; 

24 ‘‘(B) makes full disclosure of the financial 

25 interest; and 


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1 ‘‘(C) before the proceeding concerning the 

2 matter presenting the conflict of interest, re3 ceives a written determination by the Authority 

4 that the interest is not so substantial as to be 

5 likely to affect the integrity of the services that 

6 the Authority may expect from the State mem7 ber, alternate, officer, or employee. 

8 ‘‘(3) VIOLATION.—Any person that violates this 

9 subsection shall be fined not more than $10,000, im10 prisoned not more than 2 years, or both. 

11 ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND

12 GRANTS.—The Authority may declare void any contract, 

13 loan, or grant of or by the Authority in relation to which 

14 the Authority determines that there has been a violation 

15 of any provision under subsection (h)(4), subsection (i), 

16 or sections 202 through 209 of title 18, United States 

17 Code. 

18 ‘‘SEC. 3803. ECONOMIC AND COMMUNITY DEVELOPMENT 

19 GRANTS. 

20 ‘‘(a) IN GENERAL.—The Authority may approve 

21 grants to States and public and nonprofit entities for 

22 projects, approved in accordance with section 3809— 

23 ‘‘(1) to develop the transportation infrastruc24 ture of the region for the purpose of facilitating eco25 nomic development in the region (except that grants 


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1 for this purpose may only be made to a State or 

2 local government); 

3 ‘‘(2) to assist the region in obtaining the job 

4 training, employment-related education, and busi5 ness development (with an emphasis on entrepre6 neurship) that are needed to build and maintain 

7 strong local economies; 

8 ‘‘(3) to provide assistance to severely distressed 

9 and underdeveloped areas that lack financial re10 sources for improving basic public services; 

11 ‘‘(4) to provide assistance to severely distressed 

12 and underdeveloped areas that lack financial re13 sources for equipping industrial parks and related 

14 facilities; and 

15 ‘‘(5) to otherwise achieve the purposes of this 

16 chapter. 

17 ‘‘(b) FUNDING.— 

18 ‘‘(1) IN GENERAL.—Funds for grants under 

19 subsection (a) may be provided— 

20 ‘‘(A) entirely from appropriations to carry 

21 out this section; 

22 ‘‘(B) in combination with funds available 

23 under another Federal or Federal grant pro24 gram; or 

25 ‘‘(C) from any other source. 


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1 ‘‘(2) PRIORITY OF FUNDING.—To best build the 

2 foundations for long-term economic development and 

3 to complement other Federal and State resources in 

4 the region, Federal funds available under this chap5 ter shall be focused on the activities in the following 

6 order or priority: 

7 ‘‘(A) Basic public infrastructure in dis8 tressed counties and isolated areas of distress. 

9 ‘‘(B) Transportation infrastructure for the 

10 purpose of facilitating economic development in 

11 the region. 

12 ‘‘(C) Business development, with emphasis 

13 on entrepreneurship. 

14 ‘‘(D) Job training or employment-related 

15 education, with emphasis on use of existing 

16 public educational institutions located in the re17 gion. 

18 ‘‘SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT PRO19 GRAMS. 

20 ‘‘(a) FINDING.—Congress finds that certain States 

21 and local communities of the region, including local devel22 opment districts, may be unable to take maximum advan23 tage of Federal grant programs for which the States and 

24 communities are eligible because— 


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1 ‘‘(1) the States or communities lack the eco2 nomic resources to provide the required matching 

3 share; or 

4 ‘‘(2) there are insufficient funds available under 

5 the applicable Federal law authorizing the Federal 

6 grant program to meet pressing needs of the region. 

7 ‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Not8 withstanding any provision of law limiting the Federal 

9 share, the areas eligible for assistance, or the authoriza10 tions of appropriations of any Federal grant program, and 

11 in accordance with subsection (c), the Authority, with the 

12 approval of the Federal cochairperson and with respect to 

13 a project to be carried out in the region— 

14 ‘‘(1) may increase the Federal share of the 

15 costs of a project under the Federal grant program 

16 to not more than 90 percent (except as provided in 

17 section 3806(b)); and 

18 ‘‘(2) shall use amounts made available to carry 

19 out this chapter to pay the increased Federal share. 

20 ‘‘(c) CERTIFICATIONS.— 

21 ‘‘(1) IN GENERAL.—In the case of any project 

22 for which all or any portion of the basic Federal 

23 share of the costs of the project is proposed to be 

24 paid under this section, no Federal contribution 

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1 istering the Federal law that authorizes the Federal 

2 grant program certifies that the project— 

3 ‘‘(A) meets (except as provided in sub4 section (b)) the applicable requirements of the 

5 applicable Federal grant program; and 

6 ‘‘(B) could be approved for Federal con7 tribution under the Federal grant program if 

8 funds were available under the law for the 

9 project. 

10 ‘‘(2) CERTIFICATION BY AUTHORITY.— 

11 ‘‘(A) IN GENERAL.—The certifications and 

12 determinations required to be made by the Au13 thority for approval of projects under this Act 

14 in accordance with section 3809 shall be— 

15 ‘‘(i) controlling; and 

16 ‘‘(ii) accepted by the Federal agencies. 

17 ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR18 PERSON.—In the case of any project described 

19 in paragraph (1), any finding, report, certifi20 cation, or documentation required to be sub21 mitted with respect to the project to the head 

22 of the department, agency, or instrumentality of 

23 the Federal Government responsible for the ad24 ministration of the Federal grant program 


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1 under which the project is carried out shall be 

2 accepted by the Federal cochairperson. 

3 ‘‘SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; CERTIFI4 CATION AND ADMINISTRATIVE EXPENSES. 

5 ‘‘(a) DEFINITION OF LOCAL DEVELOPMENT DIS6 TRICT.—In this section, the term ‘local development dis7 trict’ means an entity that— 

8 ‘‘(1) is— 

9 ‘‘(A) a planning district in existence on the 

10 date of enactment of the Agriculture Reform, 

11 Food, and Jobs Act of 2013 that is recognized 

12 by the Secretary; or 

13 ‘‘(B) if an entity described in subpara14 graph (A) does not exist— 

15 ‘‘(i) organized and operated in a man16 ner that ensures broad-based community 

17 participation and an effective opportunity 

18 for other nonprofit groups to contribute to 

19 the development and implementation of 

20 programs in the region; 

21 ‘‘(ii) governed by a policy board with 

22 at least a simple majority of members con23 sisting of elected officials or employees of 

24 a general purpose unit of local government 


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1 who have been appointed to represent the 

2 government; 

3 ‘‘(iii) certified to the Authority as hav4 ing a charter or authority that includes the 

5 economic development of counties or parts 

6 of counties or other political subdivisions 

7 within the region— 

8 ‘‘(I) by the Governor of each 

9 State in which the entity is located; or 

10 ‘‘(II) by the State officer des11 ignated by the appropriate State law 

12 to make the certification; and 

13 ‘‘(iv)(I) a nonprofit incorporated body 

14 organized or chartered under the law of 

15 the State in which the entity is located; 

16 ‘‘(II) a nonprofit agency or instru17 mentality of a State or local government; 

18 ‘‘(III) a public organization estab19 lished before December 21, 2000, under 

20 State law for creation of multi-jurisdic21 tional, area-wide planning organizations; or 

22 ‘‘(IV) a nonprofit association or com23 bination of bodies, agencies, and instru24 mentalities described in subclauses (I) 

25 through (III); and 


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1 ‘‘(2) has not, as certified by the Federal co2 chairperson— 

3 ‘‘(A) inappropriately used Federal grant 

4 funds from any Federal source; or 

5 ‘‘(B) appointed an officer who, during the 

6 period in which another entity inappropriately 

7 used Federal grant funds from any Federal 

8 source, was an officer of the other entity. 

9 ‘‘(b) GRANTS TO LOCAL DEVELOPMENT DIS10 TRICTS.— 

11 ‘‘(1) IN GENERAL.—The Authority shall make 

12 grants for administrative expenses under this sec13 tion. 

14 ‘‘(2) CONDITIONS FOR GRANTS.— 

15 ‘‘(A) MAXIMUM AMOUNT.—The amount of 

16 any grant awarded under paragraph (1) shall 

17 not exceed 80 percent of the administrative ex18 penses of the local development district receiv19 ing the grant. 

20 ‘‘(B) MAXIMUM PERIOD.—No grant de21 scribed in paragraph (1) shall be awarded to a 

22 State agency certified as a local development 

23 district for a period greater than 3 years. 

24 ‘‘(C) LOCAL SHARE.—The contributions of 

25 a local development district for administrative 


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1 expenses may be in cash or in-kind, fairly evalu2 ated, including space, equipment, and services. 

3 ‘‘(c) DUTIES OF LOCAL DEVELOPMENT DIS4 TRICTS.—A local development district shall— 

5 ‘‘(1) operate as a lead organization serving 

6 multicounty areas in the region at the local level; 

7 and 

8 ‘‘(2) serve as a liaison between State and local 

9 governments, nonprofit organizations (including 

10 community-based groups and educational institu11 tions), the business community, and citizens that— 

12 ‘‘(A) are involved in multijurisdictional 

13 planning; 

14 ‘‘(B) provide technical assistance to local 

15 jurisdictions and potential grantees; and 

16 ‘‘(C) provide leadership and civic develop17 ment assistance. 

18 ‘‘SEC. 3806. DISTRESSED COUNTIES AND AREAS AND NON19 DISTRESSED COUNTIES. 

20 ‘‘(a) DESIGNATIONS.—Each year, the Authority, in 

21 accordance with such criteria as the Authority may estab22 lish, shall designate— 

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1 tressed and underdeveloped and have high rates of 

2 poverty or unemployment; 

3 ‘‘(2) as nondistressed counties, counties in the 

4 region that are not designated as distressed counties 

5 under paragraph (1); and 

6 ‘‘(3) as isolated areas of distress, areas located 

7 in nondistressed counties (as designated under para8 graph (2)) that have high rates of poverty or unem9 ployment. 

10 ‘‘(b) DISTRESSED COUNTIES.— 

11 ‘‘(1) IN GENERAL.—The Authority shall allo12 cate at least 75 percent of the appropriations made 

13 available under section 3813 for programs and 

14 projects designed to serve the needs of distressed 

15 counties and isolated areas of distress in the region. 

16 ‘‘(2) FUNDING LIMITATIONS.—The funding lim17 itations under section 3804(b) shall not apply to a 

18 project providing transportation or basic public serv19 ices to residents of 1 or more distressed counties or 

20 isolated areas of distress in the region. 

21 ‘‘(c) NONDISTRESSED COUNTIES.— 

22 ‘‘(1) IN GENERAL.—Except as provided in this 

23 subsection, no funds shall be provided under this 

24 chapter for a project located in a county designated 

25 as a nondistressed county under subsection (a)(2). 


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1 ‘‘(2) EXCEPTIONS.— 

2 ‘‘(A) IN GENERAL.—The funding prohibi3 tion under paragraph (1) shall not apply to 

4 grants to fund the administrative expenses of 

5 local development districts under section 

6 3805(b). 

7 ‘‘(B) MULTICOUNTY PROJECTS.—The Au8 thority may waive the application of the fund9 ing prohibition under paragraph (1) to a multi10 county project that includes participation by a 

11 nondistressed county; or any other type of 

12 project if the Authority determines that the 

13 project could bring significant benefits to areas 

14 of the region outside a nondistressed county. 

15 ‘‘(C) ISOLATED AREAS OF DISTRESS.—For 

16 a designation of an isolated area of distress for 

17 assistance to be effective, the designation shall 

18 be supported— 

19 ‘‘(i) by the most recent Federal data 

20 available; or 

21 ‘‘(ii) if no recent Federal data are 

22 available, by the most recent data available 

23 through the government of the State in 

24 which the isolated area of distress is lo25 cated. 


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1 ‘‘(d) TRANSPORTATION AND BASIC PUBLIC INFRA2 STRUCTURE.—The Authority shall allocate at least 50 per3 cent of any funds made available under section 3813 for 

4 transportation and basic public infrastructure projects au5 thorized under paragraphs (1) and (3) of section 3803(a). 

6 ‘‘SEC. 3807. DEVELOPMENT PLANNING PROCESS. 

7 ‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 

8 with policies established by the Authority, each State 

9 member shall submit a development plan for the area of 

10 the region represented by the State member. 

11 ‘‘(b) CONTENT OF PLAN.—A State development plan 

12 submitted under subsection (a) shall reflect the goals, ob13 jectives, and priorities identified in the regional develop14 ment plan developed under section 3802(d)(2). 

15 ‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR16 TIES.—In carrying out the development planning process 

17 (including the selection of programs and projects for as18 sistance), a State may— 

19 ‘‘(1) consult with— 

20 ‘‘(A) local development districts; and 

21 ‘‘(B) local units of government; and 

22 ‘‘(2) take into consideration the goals, objec23 tives, priorities, and recommendations of the entities 

24 described in paragraph (1). 

25 ‘‘(d) PUBLIC PARTICIPATION.— 


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1 ‘‘(1) IN GENERAL.—The Authority and applica2 ble State and local development districts shall en3 courage and assist, to the maximum extent prac4 ticable, public participation in the development, revi5 sion, and implementation of all plans and programs 

6 under this chapter. 

7 ‘‘(2) REGULATIONS.—The Authority shall de8 velop guidelines for providing public participation 

9 described in paragraph (1), including public hear10 ings. 

11 ‘‘SEC. 3808. PROGRAM DEVELOPMENT CRITERIA. 

12 ‘‘(a) IN GENERAL.—In considering programs and 

13 projects to be provided assistance under this chapter and 

14 in establishing a priority ranking of the requests for as15 sistance provided by the Authority, the Authority shall fol16 low procedures that ensure, to the maximum extent prac17 ticable, consideration of— 

18 ‘‘(1) the relationship of the project or class of 

19 projects to overall regional development; 

20 ‘‘(2) the per capita income and poverty and un21 employment rates in an area; 

22 ‘‘(3) the financial resources available to the ap23 plicants for assistance seeking to carry out the 

24 project, with emphasis on ensuring that projects are 


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1 adequately financed to maximize the probability of 

2 successful economic development; 

3 ‘‘(4) the importance of the project or class of 

4 projects in relation to other projects or classes of 

5 projects that may be in competition for the same 

6 funds; 

7 ‘‘(5) the prospects that the project for which as8 sistance is sought will improve, on a continuing rath9 er than a temporary basis, the opportunities for em10 ployment, the average level of income, or the eco11 nomic development of the area served by the project; 

12 and 

13 ‘‘(6) the extent to which the project design pro14 vides for detailed outcome measurements by which 

15 grant expenditures and the results of the expendi16 tures may be evaluated. 

17 ‘‘(b) NO RELOCATION ASSISTANCE.— 

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graph (2), no financial assistance authorized by this 

20 chapter shall be used to assist a person or entity in 

21 relocating from 1 area to another. 

22 ‘‘(2) OUTSIDE BUSINESSES.—Financial assist23 ance under this chapter may be used as otherwise 

24 authorized by this subtitle to attract businesses from 

25 outside the region to the region. 


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1 ‘‘(c) REDUCTION OF FUNDS.—Funds may be pro2 vided for a program or project in a State under this chap3 ter only if the Authority determines that the level of Fed4 eral or State financial assistance provided under a law 

5 other than this chapter, for the same type of program or 

6 project in the same area of the State within the region, 

7 will not be reduced as a result of funds made available 

8 by this chapter. 

9 ‘‘SEC. 3809. APPROVAL OF DEVELOPMENT PLANS AND 

10 PROJECTS. 

11 ‘‘(a) IN GENERAL.—A State or regional development 

12 plan or any multistate subregional plan that is proposed 

13 for development under this chapter shall be reviewed and 

14 approved by the Authority. 

15 ‘‘(b) EVALUATION BY STATE MEMBER.—An applica16 tion for a grant or any other assistance for a project under 

17 this chapter shall be made through and evaluated for ap18 proval by the State member of the Authority representing 

19 the applicant. 

20 ‘‘(c) CERTIFICATION.—An application for a grant or 

21 other assistance for a project shall be approved only on 

22 certification by the State member that the application for 

23 the project— 

24 ‘‘(1) describes ways in which the project com25 plies with any applicable State development plan; 


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1 ‘‘(2) meets applicable criteria under section 

2 3808; 

3 ‘‘(3) provides adequate assurance that the pro4 posed project will be properly administered, oper5 ated, and maintained; and 

6 ‘‘(4) otherwise meets the requirements of this 

7 chapter. 

8 ‘‘(d) APPROVAL OF GRANT APPLICATIONS.—On cer9 tification by a State member of the Authority of an appli10 cation for a grant or other assistance for a specific project 

11 under this section, an affirmative vote of the Authority 

12 under section 3802(c) shall be required for approval of 

13 the application. 

14 ‘‘SEC. 3810. CONSENT OF STATES. 

15 ‘‘Nothing in this chapter requires any State to engage 

16 in or accept any program under this chapter without the 

17 consent of the State. 

18 ‘‘SEC. 3811. RECORDS. 

19 ‘‘(a) RECORDS OF THE AUTHORITY.— 

20 ‘‘(1) IN GENERAL.—The Authority shall main21 tain accurate and complete records of all trans22 actions and activities of the Authority. 

23 ‘‘(2) AVAILABILITY.—All records of the Author24 ity shall be available for audit and examination by 

25 the Comptroller General of the United States and 


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1 the Inspector General of the Department of Agri2 culture (including authorized representatives of the 

3 Comptroller General and the Inspector General of 

4 the Department of Agriculture). 

5 ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST6 ANCE.— 

7 ‘‘(1) IN GENERAL.—A recipient of Federal 

8 funds under this chapter shall, as required by the 

9 Authority, maintain accurate and complete records 

10 of transactions and activities financed with Federal 

11 funds and report on the transactions and activities 

12 to the Authority. 

13 ‘‘(2) AVAILABILITY.—All records required 

14 under paragraph (1) shall be available for audit by 

15 the Comptroller General of the United States, the 

16 Inspector General of the Department of Agriculture, 

17 and the Authority (including authorized representa18 tives of the Comptroller General, the Inspector Gen19 eral of the Department of Agriculture, and the Au20 thority). 

21 ‘‘SEC. 3812. ANNUAL REPORT. 

22 ‘‘Not later than 180 days after the end of each fiscal 

23 year, the Authority shall submit to the President and to 

24 Congress a report describing the activities carried out 

25 under this chapter. 


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1 ‘‘SEC. 3813. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘(a) IN GENERAL.—There is authorized to be appro3 priated to the Authority to carry out this chapter 

4 $30,000,000 for each of fiscal years 2014 through 2018, 

5 to remain available until expended. 

6 ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 

7 percent of the amount appropriated under subsection (a) 

8 for a fiscal year shall be used for administrative expenses 

9 of the Authority. 

10 ‘‘SEC. 3814. TERMINATION OF AUTHORITY. 

11 ‘‘This chapter and the authority provided under this 

12 chapter expire on October 1, 2018. 

13 ‘‘CHAPTER 5—NORTHERN GREAT PLAINS 

14 REGIONAL AUTHORITY 

15 ‘‘SEC. 3821. DEFINITIONS. 

16 ‘‘In this chapter: 

17 ‘‘(1) AUTHORITY.—The term ‘Authority’ means 

18 the Northern Great Plains Regional Authority estab19 lished by section 3822. 

20 ‘‘(2) FEDERAL GRANT PROGRAM.—The term 

21 ‘Federal grant program’ means a Federal grant pro22 gram to provide assistance in— 

23 ‘‘(A) implementing the recommendations of 

24 the Northern Great Plains Rural Development 

25 Commission established by the Northern Great 


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1 Plains Rural Development Act (7 U.S.C. 2661 

2 note; Public Law 103–318); 

3 ‘‘(B) acquiring or developing land; 

4 ‘‘(C) constructing or equipping a highway, 

5 road, bridge, or facility; 

6 ‘‘(D) carrying out other economic develop7 ment activities; or 

8 ‘‘(E) conducting research activities related 

9 to the activities described in subparagraphs (A) 

10 through (D). 

11 ‘‘(3) REGION.—The term ‘region’ means the 

12 States of Iowa, Minnesota, Missouri (other than 

13 counties included in the Delta Regional Authority), 

14 Nebraska, North Dakota, and South Dakota. 

15 ‘‘SEC. 3822. NORTHERN GREAT PLAINS REGIONAL AUTHOR16 ITY. 

17 ‘‘(a) ESTABLISHMENT.— 

18 ‘‘(1) IN GENERAL.—There is established the 

19 Northern Great Plains Regional Authority. 

20 ‘‘(2) COMPOSITION.—The Authority shall be 

21 composed of— 

22 ‘‘(A) a Federal member, to be appointed 

23 by the President, by and with the advice and 

24 consent of the Senate; 


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1 ‘‘(B) the Governor (or a designee of the 

2 Governor) of each State in the region that 

3 elects to participate in the Authority; and 

4 ‘‘(C) a member of an Indian tribe, who 

5 shall be a chairperson of an Indian tribe in the 

6 region or a designee of such a chairperson, to 

7 be appointed by the President, by and with the 

8 advice and consent of the Senate. 

9 ‘‘(3) COCHAIRPERSONS.—The Authority shall 

10 be headed by— 

11 ‘‘(A) the Federal member, who shall serve 

12 as— 

13 ‘‘(i) the Federal cochairperson; and 

14 ‘‘(ii) a liaison between the Federal 

15 Government and the Authority; 

16 ‘‘(B) a State cochairperson, who shall be— 

17 ‘‘(i) a Governor of a participating 

18 State in the region; and 

19 ‘‘(ii) elected by the State members for 

20 a term of not less than 1 year; and 

21 ‘‘(C) the member of an Indian tribe, who 

22 shall serve as— 

23 ‘‘(i) the tribal cochairperson; and 


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1 ‘‘(ii) a liaison between the govern2 ments of Indian tribes in the region and 

3 the Authority. 

4 ‘‘(4) FAILURE TO CONFIRM.— 

5 ‘‘(A) FEDERAL MEMBER.—Notwith6 standing any other provision of this section, if 

7 a Federal member described in paragraph 

8 (2)(A) has not been confirmed by the Senate by 

9 not later than 180 days after the date of enact10 ment of the Agriculture Reform, Food, and 

11 Jobs Act of 2013, the Authority may organize 

12 and operate without the Federal member. 

13 ‘‘(B) TRIBAL COCHAIRPERSON.—In the 

14 case of the tribal cochairperson, if no tribal co15 chairperson is confirmed by the Senate, the re16 gional authority shall consult and coordinate 

17 with the leaders of Indian tribes in the region 

18 concerning the activities of the Authority, as 

19 appropriate. 

20 ‘‘(b) ALTERNATE MEMBERS.— 

21 ‘‘(1) ALTERNATE FEDERAL COCHAIRPERSON.— 

22 The President shall appoint an alternate Federal co23 chairperson. 

24 ‘‘(2) STATE ALTERNATES.— 


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1 ‘‘(A) IN GENERAL.—The State member of 

2 a participating State may have a single alter3 nate, who shall be— 

4 ‘‘(i) a resident of that State; and 

5 ‘‘(ii) appointed by the Governor of the 

6 State. 

7 ‘‘(B) QUORUM.—A State alternate member 

8 shall not be counted toward the establishment 

9 of a quorum of the members of the Authority 

10 in any case in which a quorum of the State 

11 members is required to be present. 

12 ‘‘(3) ALTERNATE TRIBAL COCHAIRPERSON.— 

13 The President shall appoint an alternate tribal co14 chairperson, by and with the advice and consent of 

15 the Senate. 

16 ‘‘(4) DELEGATION OF POWER.—No power or 

17 responsibility of the Authority specified in para18 graphs (2) and (3) of subsection (c), and no voting 

19 right of any member of the Authority, shall be dele20 gated to any person who is not— 

21 ‘‘(A) a member of the Authority; or 

22 ‘‘(B) entitled to vote in Authority meet23 ings. 

24 ‘‘(c) VOTING.— 


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1 ‘‘(1) IN GENERAL.—A decision by the Authority 

2 shall require a majority vote of the Authority (not 

3 including any member representing a State that is 

4 delinquent under subsection (g)(2)(D)) to be effec5 tive. 

6 ‘‘(2) QUORUM.—A quorum of State members 

7 shall be required to be present for the Authority to 

8 make any policy decision, including— 

9 ‘‘(A) a modification or revision of an Au10 thority policy decision; 

11 ‘‘(B) approval of a State or regional devel12 opment plan; and 

13 ‘‘(C) any allocation of funds among the 

14 States. 

15 ‘‘(3) PROJECT AND GRANT PROPOSALS.—The 

16 approval of project and grant proposals shall be— 

17 ‘‘(A) a responsibility of the Authority; and 

18 ‘‘(B) conducted in accordance with section 

19 3830. 

20 ‘‘(4) VOTING BY ALTERNATE MEMBERS.—An 

21 alternate member shall vote in the case of the ab22 sence, death, disability, removal, or resignation of 

23 the Federal, State, or Indian tribe member for 

24 whom the alternate member is an alternate. 

25 ‘‘(d) DUTIES.—The Authority shall— 


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1 ‘‘(1) develop, on a continuing basis, comprehen2 sive and coordinated plans and programs for 

3 multistate cooperation to advance the economic and 

4 social well-being of the region and to approve grants 

5 for the economic development of the region, giving 

6 due consideration to other Federal, State, tribal, and 

7 local planning and development activities in the re8 gion; 

9 ‘‘(2) review, and when appropriate amend, pri10 orities in a development plan for the region (includ11 ing 5-year regional outcome targets); 

12 ‘‘(3) assess the needs and assets of the region 

13 based on available research, demonstrations, inves14 tigations, assessments, and evaluations of the region 

15 prepared by Federal, State, tribal, and local agen16 cies, universities, regional and local development dis17 tricts or organizations, and other nonprofit groups; 

18 ‘‘(4) formulate and recommend to the Gov19 ernors and legislatures of States that participate in 

20 the Authority forms of interstate cooperation for— 

21 ‘‘(A) renewable energy development and 

22 transmission; 

23 ‘‘(B) transportation planning and economic 

24 development; 

25 ‘‘(C) information technology; 


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1 ‘‘(D) movement of freight and individuals 

2 within the region; 

3 ‘‘(E) federally funded research at institu4 tions of higher education; and 

5 ‘‘(F) conservation land management; 

6 ‘‘(5) work with State, tribal, and local agencies 

7 in developing appropriate model legislation; 

8 ‘‘(6) enhance the capacity of, and provide sup9 port for, multistate development and research orga10 nizations, local development organizations and dis11 tricts, and resource conservation districts in the re12 gion; 

13 ‘‘(7) encourage private investment in industrial, 

14 commercial, renewable energy, and other economic 

15 development projects in the region; and 

16 ‘‘(8) cooperate with and assist State govern17 ments with economic development programs of par18 ticipating States. 

19 ‘‘(e) ADMINISTRATION.—In carrying out subsection 

20 (d), the Authority may— 

21 ‘‘(1) hold such hearings, sit and act at such 

22 times and places, take such testimony, receive such 

23 evidence, and print or otherwise reproduce and dis24 tribute a description of the proceedings and reports 


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1 on actions by the Authority as the Authority con2 siders appropriate; 

3 ‘‘(2) authorize, through the Federal, State, or 

4 tribal cochairperson or any other member of the Au5 thority designated by the Authority, the administra6 tion of oaths if the Authority determines that testi7 mony should be taken or evidence received under 

8 oath; 

9 ‘‘(3) request from any Federal, State, tribal, or 

10 local agency such information as may be available to 

11 or procurable by the agency that may be of use to 

12 the Authority in carrying out the duties of the Au13 thority; 

14 ‘‘(4) adopt, amend, and repeal bylaws and rules 

15 governing the conduct of business and the perform16 ance of duties of the Authority; 

17 ‘‘(5) request the head of any Federal agency to 

18 detail to the Authority such personnel as the Au19 thority requires to carry out duties of the Authority, 

20 each such detail to be without loss of seniority, pay, 

21 or other employee status; 

22 ‘‘(6) request the head of any State agency, trib23 al government, or local government to detail to the 

24 Authority such personnel as the Authority requires 

25 to carry out duties of the Authority, each such detail 


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1 to be without loss of seniority, pay, or other em2 ployee status; 

3 ‘‘(7) provide for coverage of Authority employ4 ees in a suitable retirement and employee benefit 

5 system by— 

6 ‘‘(A) making arrangements or entering 

7 into contracts with any participating State gov8 ernment or tribal government; or 

9 ‘‘(B) otherwise providing retirement and 

10 other employee benefit coverage; 

11 ‘‘(8) accept, use, and dispose of gifts or dona12 tions of services or real, personal, tangible, or intan13 gible property; 

14 ‘‘(9) enter into and perform such contracts, 

15 leases, cooperative agreements, or other transactions 

16 as are necessary to carry out Authority duties, in17 cluding any contracts, leases, or cooperative agree18 ments with— 

19 ‘‘(A) any department, agency, or instru20 mentality of the United States; 

21 ‘‘(B) any State (including a political sub22 division, agency, or instrumentality of the 

23 State); 

24 ‘‘(C) any Indian tribe in the region; or 


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1 ‘‘(D) any person, firm, association, or cor2 poration; and 

3 ‘‘(10) establish and maintain a central office 

4 and field offices at such locations as the Authority 

5 may select. 

6 ‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal 

7 agency shall— 

8 ‘‘(1) cooperate with the Authority; and 

9 ‘‘(2) provide, on request of a cochairperson, ap10 propriate assistance in carrying out this chapter, in 

11 accordance with applicable Federal laws (including 

12 regulations). 

13 ‘‘(g) ADMINISTRATIVE EXPENSES.— 

14 ‘‘(1) FEDERAL SHARE.—The Federal share of 

15 the administrative expenses of the Authority shall 

16 be— 

17 ‘‘(A) for fiscal year 2014, 100 percent; 

18 ‘‘(B) for fiscal year 2015, 75 percent; and 

19 ‘‘(C) for fiscal year 2016 and each fiscal 

20 year thereafter, 50 percent. 

21 ‘‘(2) NON-FEDERAL SHARE.— 

22 ‘‘(A) IN GENERAL.—The non-Federal 

23 share of the administrative expenses of the Au24 thority shall be paid by non-Federal sources in 

25 the States that participate in the Authority. 


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1 ‘‘(B) SHARE PAID BY EACH STATE.—The 

2 share of administrative expenses of the Author3 ity to be paid by non-Federal sources in each 

4 State shall be determined by the Authority. 

5 ‘‘(C) NO FEDERAL PARTICIPATION.—The 

6 Federal cochairperson shall not participate or 

7 vote in any decision under subparagraph (B). 

8 ‘‘(D) DELINQUENT STATES.—If a State is 

9 delinquent in payment of the State’s share of 

10 administrative expenses of the Authority under 

11 this subsection— 

12 ‘‘(i) no assistance under this chapter 

13 shall be provided to the State (including 

14 assistance to a political subdivision or a 

15 resident of the State); and 

16 ‘‘(ii) no member of the Authority from 

17 the State shall participate or vote in any 

18 action by the Authority. 

19 ‘‘(h) COMPENSATION.— 

20 ‘‘(1) FEDERAL AND TRIBAL COCHAIR21 PERSONS.—The Federal cochairperson and the tribal 

22 cochairperson shall be compensated by the Federal 

23 Government at the annual rate of basic pay pre24 scribed for level III of the Executive Schedule in 


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1 subchapter II of chapter 53 of title 5, United States 

2 Code. 

3 ‘‘(2) ALTERNATE FEDERAL AND TRIBAL CO4 CHAIRPERSONS.—The alternate Federal cochair5 person and the alternate tribal cochairperson— 

6 ‘‘(A) shall be compensated by the Federal 

7 Government at the annual rate of basic pay 

8 prescribed for level V of the Executive Schedule 

9 described in paragraph (1); and 

10 ‘‘(B) when not actively serving as an alter11 nate, shall perform such functions and duties as 

12 are delegated by the Federal cochairperson or 

13 the tribal cochairperson, respectively. 

14 ‘‘(3) STATE MEMBERS AND ALTERNATES.— 

15 ‘‘(A) IN GENERAL.—A State shall com16 pensate each member and alternate rep17 resenting the State on the Authority at the rate 

18 established by State law. 

19 ‘‘(B) NO ADDITIONAL COMPENSATION.— 

20 No State member or alternate member shall re21 ceive any salary, or any contribution to or sup22 plementation of salary from any source other 

23 than the State for services provided by the 

24 member or alternate member to the Authority. 

25 ‘‘(4) DETAILED EMPLOYEES.— 


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1 ‘‘(A) IN GENERAL.—No person detailed to 

2 serve the Authority under subsection (e)(6) 

3 shall receive any salary or any contribution to 

4 or supplementation of salary for services pro5 vided to the Authority from— 

6 ‘‘(i) any source other than the State, 

7 tribal, local, or intergovernmental agency 

8 from which the person was detailed; or 

9 ‘‘(ii) the Authority. 

10 ‘‘(B) VIOLATION.—Any person that vio11 lates this paragraph shall be fined not more 

12 than $5,000, imprisoned not more than 1 year, 

13 or both. 

14 ‘‘(C) APPLICABLE LAW.—The Federal co15 chairperson, the alternate Federal cochair16 person, and any Federal officer or employee de17 tailed to duty on the Authority under sub18 section (e)(5) shall not be subject to subpara19 graph (A), but shall remain subject to sections 

20 202 through 209 of title 18, United States 

21 Code. 

22 ‘‘(5) ADDITIONAL PERSONNEL.— 

23 ‘‘(A) COMPENSATION.— 

24 ‘‘(i) IN GENERAL.—The Authority 

25 may appoint and fix the compensation of 


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1 an executive director and such other per2 sonnel as are necessary to enable the Au3 thority to carry out the duties of the Au4 thority. 

5 ‘‘(ii) EXCEPTION.—Compensation 

6 under clause (i) shall not exceed the max7 imum rate for the Senior Executive Service 

8 under section 5382 of title 5, United 

9 States Code, including any applicable local10 ity-based comparability payment that may 

11 be authorized under section 5304(h)(2)(C) 

12 of that title. 

13 ‘‘(B) EXECUTIVE DIRECTOR.—The execu14 tive director shall be responsible for— 

15 ‘‘(i) the carrying out of the adminis16 trative duties of the Authority; 

17 ‘‘(ii) direction of the Authority staff; 

18 and 

19 ‘‘(iii) such other duties as the Author20 ity may assign. 

21 ‘‘(C) NO FEDERAL EMPLOYEE STATUS.— 

22 No member, alternate, officer, or employee of 

23 the Authority (except the Federal cochairperson 

24 of the Authority, the alternate and staff for the 

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1 ployee detailed to the Authority under sub2 section (e)(5)) shall be considered to be a Fed3 eral employee for any purpose. 

4 ‘‘(i) CONFLICTS OF INTEREST.— 

5 ‘‘(1) IN GENERAL.—Except as provided under 

6 paragraph (2), no State member, Indian tribe mem7 ber, State alternate, officer, or employee of the Au8 thority shall participate personally and substantially 

9 as a member, alternate, officer, or employee of the 

10 Authority, through decision, approval, disapproval, 

11 recommendation, the rendering of advice, investiga12 tion, or otherwise, in any proceeding, application, re13 quest for a ruling or other determination, contract, 

14 claim, controversy, or other matter in which, to 

15 knowledge of the member, alternate, officer, or em16 ployee, there is a financial interest of— 

17 ‘‘(A) the member, alternate, officer, or em18 ployee; 

19 ‘‘(B) the spouse, minor child, partner, or 

20 organization (other than a State or political 

21 subdivision of the State or the Indian tribe) of 

22 the member, alternate, officer, or employee, in 

23 which the member, alternate, officer, or em24 ployee is serving as officer, director, trustee, 

25 partner, or employee; or 


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1 ‘‘(C) any person or organization with 

2 whom the member, alternate, officer, or em3 ployee is negotiating or has any arrangement 

4 concerning prospective employment. 

5 ‘‘(2) DISCLOSURE.—Paragraph (1) shall not 

6 apply if the State member, Indian tribe member, al7 ternate, officer, or employee— 

8 ‘‘(A) immediately advises the Authority of 

9 the nature and circumstances of the proceeding, 

10 application, request for a ruling or other deter11 mination, contract, claim, controversy, or other 

12 particular matter presenting a potential conflict 

13 of interest; 

14 ‘‘(B) makes full disclosure of the financial 

15 interest; and 

16 ‘‘(C) before the proceeding concerning the 

17 matter presenting the conflict of interest, re18 ceives a written determination by the Authority 

19 that the interest is not so substantial as to be 

20 likely to affect the integrity of the services that 

21 the Authority may expect from the State mem22 ber, Indian tribe member, alternate, officer, or 

23 employee. 


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1 ‘‘(3) VIOLATION.—Any person that violates this 

2 subsection shall be fined not more than $10,000, im3 prisoned not more than 2 years, or both. 

4 ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND

5 GRANTS.—The Authority may declare void any contract, 

6 loan, or grant of or by the Authority in relation to which 

7 the Authority determines that there has been a violation 

8 of any provision under subsection (h)(4) or subsection (i) 

9 of this chapter, or sections 202 through 209 of title 18, 

10 United States Code. 

11 ‘‘SEC. 3823. INTERSTATE COOPERATION FOR ECONOMIC 

12 OPPORTUNITY AND EFFICIENCY. 

13 ‘‘(a) IN GENERAL.—The Authority shall provide as14 sistance to States in developing regional plans to address 

15 multistate economic issues, including plans— 

16 ‘‘(1) to develop a regional transmission system 

17 for movement of renewable energy to markets out18 side the region; 

19 ‘‘(2) to address regional transportation con20 cerns, including the establishment of a Northern 

21 Great Plains Regional Transportation Working 

22 Group; 

23 ‘‘(3) to encourage and support interstate col24 laboration on federally funded research that is in the 

25 national interest; and 


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1 ‘‘(4) to establish a Regional Working Group on 

2 Agriculture Development and Transportation. 

3 ‘‘(b) ECONOMIC ISSUES.—The multistate economic 

4 issues referred to in subsection (a) shall include— 

5 ‘‘(1) renewable energy development and trans6 mission; 

7 ‘‘(2) transportation planning and economic de8 velopment; 

9 ‘‘(3) information technology; 

10 ‘‘(4) movement of freight and individuals within 

11 the region; 

12 ‘‘(5) federally funded research at institutions of 

13 higher education; and 

14 ‘‘(6) conservation land management. 

15 ‘‘SEC. 3824. ECONOMIC AND COMMUNITY DEVELOPMENT 

16 GRANTS. 

17 ‘‘(a) IN GENERAL.—The Authority may approve 

18 grants to States, Indian tribes, local governments, and 

19 public and nonprofit organizations for projects, approved 

20 in accordance with section 3830— 

21 ‘‘(1) to assist the region in obtaining the job 

22 training, employment-related education, and busi23 ness development (with an emphasis on entrepre24 neurship) that are needed to build and maintain 

25 strong local economies; 


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1 ‘‘(2) to develop the transportation, renewable 

2 energy transmission, and telecommunication infra3 structure of the region for the purpose of facilitating 

4 economic development in the region (except that 

5 grants for this purpose may be made only to States, 

6 Indian tribes, local governments, and nonprofit orga7 nizations); 

8 ‘‘(3) to provide assistance to severely distressed 

9 and underdeveloped areas that lack financial re10 sources for improving basic public services; 

11 ‘‘(4) to provide assistance to severely distressed 

12 and underdeveloped areas that lack financial re13 sources for equipping industrial parks and related 

14 facilities; and 

15 ‘‘(5) to otherwise achieve the purposes of this 

16 chapter. 

17 ‘‘(b) FUNDING.— 

18 ‘‘(1) IN GENERAL.—Funds for grants under 

19 subsection (a) may be provided— 

20 ‘‘(A) entirely from appropriations to carry 

21 out this section; 

22 ‘‘(B) in combination with funds available 

23 under another Federal grant program; or 

24 ‘‘(C) from any other source. 


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1 ‘‘(2) PRIORITY OF FUNDING.—To best build the 

2 foundations for long-term economic development and 

3 to complement other Federal, State, and tribal re4 sources in the region, Federal funds available under 

5 this chapter shall be focused on the following activi6 ties: 

7 ‘‘(A) Basic public infrastructure in dis8 tressed counties and isolated areas of distress. 

9 ‘‘(B) Transportation and telecommuni10 cation infrastructure for the purpose of facili11 tating economic development in the region. 

12 ‘‘(C) Business development, with emphasis 

13 on entrepreneurship. 

14 ‘‘(D) Job training or employment-related 

15 education, with emphasis on use of existing 

16 public educational institutions located in the re17 gion. 

18 ‘‘SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT PRO19 GRAMS. 

20 ‘‘(a) FINDING.—Congress finds that certain States 

21 and local communities of the region may be unable to take 

22 maximum advantage of Federal grant programs for which 

23 the States and communities are eligible because— 


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1 ‘‘(1) the States and communities lack the eco2 nomic resources to provide the required matching 

3 share; or 

4 ‘‘(2) there are insufficient funds available under 

5 the applicable Federal law authorizing the Federal 

6 grant program to meet pressing needs of the region. 

7 ‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Not8 withstanding any provision of law limiting the Federal 

9 share, the areas eligible for assistance, or the authoriza10 tions of appropriations, under any Federal grant program, 

11 and in accordance with subsection (c), the Authority, with 

12 the approval of the Federal cochairperson and with respect 

13 to a project to be carried out in the region— 

14 ‘‘(1) may increase the Federal share of the 

15 costs of a project under any Federal grant program 

16 to not more than 90 percent (except as provided in 

17 section 3827(b)); and 

18 ‘‘(2) shall use amounts made available to carry 

19 out this chapter to pay the increased Federal share. 

20 ‘‘(c) CERTIFICATIONS.— 

21 ‘‘(1) IN GENERAL.—In the case of any project 

22 for which all or any portion of the basic Federal 

23 share of the costs of the project is proposed to be 

24 paid under this section, no Federal contribution 

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1 istering the Federal law that authorizes the Federal 

2 grant program certifies that the project— 

3 ‘‘(A) meets (except as provided in sub4 section (b)) the applicable requirements of the 

5 applicable Federal grant program; and 

6 ‘‘(B) could be approved for Federal con7 tribution under the Federal grant program if 

8 funds were available under the law for the 

9 project. 

10 ‘‘(2) CERTIFICATION BY AUTHORITY.— 

11 ‘‘(A) IN GENERAL.—The certifications and 

12 determinations required to be made by the Au13 thority for approval of projects under this Act 

14 in accordance with section 3830 shall be— 

15 ‘‘(i) controlling; and 

16 ‘‘(ii) accepted by the Federal agencies. 

17 ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR18 PERSON.—In the case of any project described 

19 in paragraph (1), any finding, report, certifi20 cation, or documentation required to be sub21 mitted with respect to the project to the head 

22 of the department, agency, or instrumentality of 

23 the Federal Government responsible for the ad24 ministration of the Federal grant program 


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1 under which the project is carried out shall be 

2 accepted by the Federal cochairperson. 

3 ‘‘SEC. 3826. MULTISTATE AND LOCAL DEVELOPMENT DIS4 TRICTS AND ORGANIZATIONS AND NORTH5 ERN GREAT PLAINS INC. 

6 ‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DE7 VELOPMENT DISTRICT OR ORGANIZATION.—In this sec8 tion, the term ‘multistate and local development district 

9 or organization’ means an entity— 

10 ‘‘(1) that— 

11 ‘‘(A) is a planning district that is recog12 nized by the Economic Development Adminis13 tration of the Department of Commerce; or 

14 ‘‘(B) is— 

15 ‘‘(i) organized and operated in a man16 ner that ensures broad-based community 

17 participation and an effective opportunity 

18 for other nonprofit groups to contribute to 

19 the development and implementation of 

20 programs in the region; 

21 ‘‘(ii) a nonprofit incorporated body or22 ganized or chartered under the law of the 

23 State in which the entity is located; 

24 ‘‘(iii) a nonprofit agency or instru25 mentality of a State or local government; 


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1 ‘‘(iv) a public organization established 

2 before the date of enactment of the Agri3 culture Reform, Food, and Jobs Act of 

4 2013 under State law for creation of multi5 jurisdictional, area-wide planning organiza6 tions; 

7 ‘‘(v) a nonprofit agency or instrumen8 tality of a State that was established for 

9 the purpose of assisting with multistate co10 operation; or 

11 ‘‘(vi) a nonprofit association or com12 bination of bodies, agencies, and instru13 mentalities described in clauses (ii) 

14 through (v); and 

15 ‘‘(2) that has not, as certified by the Authority 

16 (in consultation with the Federal cochairperson or 

17 Secretary, as appropriate)— 

18 ‘‘(A) inappropriately used Federal grant 

19 funds from any Federal source; or 

20 ‘‘(B) appointed an officer who, during the 

21 period in which another entity inappropriately 

22 used Federal grant funds from any Federal 

23 source, was an officer of the other entity. 

24 ‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL

25 DEVELOPMENT DISTRICTS AND ORGANIZATIONS.— 


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1 ‘‘(1) IN GENERAL.—The Authority may make 

2 grants for administrative expenses under this section 

3 to multistate, local, and regional development dis4 tricts and organizations. 

5 ‘‘(2) CONDITIONS FOR GRANTS.— 

6 ‘‘(A) MAXIMUM AMOUNT.—The amount of 

7 any grant awarded under paragraph (1) shall 

8 not exceed 80 percent of the administrative ex9 penses of the multistate, local, or regional de10 velopment district or organization receiving the 

11 grant. 

12 ‘‘(B) MAXIMUM PERIOD.—No grant de13 scribed in paragraph (1) shall be awarded for a 

14 period of greater than 3 years. 

15 ‘‘(3) LOCAL SHARE.—The contributions of a 

16 multistate, local, or regional development district or 

17 organization for administrative expenses may be in 

18 cash or in-kind, fairly evaluated, including space, 

19 equipment, and services. 

20 ‘‘(c) DUTIES.— 

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), a local development district shall operate 

23 as a lead organization serving multicounty areas in 

24 the region at the local level. 


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1 ‘‘(2) DESIGNATION.—The Federal cochair2 person may designate an Indian tribe or multijuris3 dictional organization to serve as a lead organization 

4 in such cases as the Federal cochairperson or Sec5 retary, as appropriate, determines appropriate. 

6 ‘‘(d) NORTHERN GREAT PLAINS INC.—Northern 

7 Great Plains Inc., a nonprofit corporation incorporated in 

8 the State of Minnesota to implement the recommendations 

9 of the Northern Great Plains Rural Development Commis10 sion established by the Northern Great Plains Rural De11 velopment Act (7 U.S.C. 2661 note; Public Law 103– 

12 318)— 

13 ‘‘(1) shall serve as an independent, primary re14 source for the Authority on issues of concern to the 

15 region; 

16 ‘‘(2) shall advise the Authority on development 

17 of international trade; 

18 ‘‘(3) may provide research, education, training, 

19 and other support to the Authority; and 

20 ‘‘(4) may carry out other activities on its own 

21 behalf or on behalf of other entities. 


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1 ‘‘SEC. 3827. DISTRESSED COUNTIES AND AREAS AND NON2 DISTRESSED COUNTIES. 

3 ‘‘(a) DESIGNATIONS.—Each year, the Authority, in 

4 accordance with such criteria as the Authority may estab5 lish, shall designate— 

6 ‘‘(1) as distressed counties, counties in the re7 gion that are the most severely and persistently dis8 tressed and underdeveloped and have high rates of 

9 poverty, unemployment, or outmigration; 

10 ‘‘(2) as nondistressed counties, counties in the 

11 region that are not designated as distressed counties 

12 under paragraph (1); and 

13 ‘‘(3) as isolated areas of distress, areas located 

14 in nondistressed counties (as designated under para15 graph (2)) that have high rates of poverty, unem16 ployment, or outmigration. 

17 ‘‘(b) DISTRESSED COUNTIES.— 

18 ‘‘(1) IN GENERAL.—The Authority shall allo19 cate at least 50 percent of the appropriations made 

20 available under section 3834 for programs and 

21 projects designed to serve the needs of distressed 

22 counties and isolated areas of distress in the region. 

23 ‘‘(2) FUNDING LIMITATIONS.—The funding lim24 itations under section 3825(b) shall not apply to a 

25 project to provide transportation or telecommuni26 cation or basic public services to residents of 1 or 


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1 more distressed counties or isolated areas of distress 

2 in the region. 

3 ‘‘(c) TRANSPORTATION, TELECOMMUNICATION, RE4 NEWABLE ENERGY, AND BASIC PUBLIC INFRASTRUC5 TURE.—The Authority shall allocate at least 50 percent 

6 of any funds made available under section 3834 for trans7 portation, telecommunication, renewable energy, and basic 

8 public infrastructure projects authorized under para9 graphs (1) and (3) of section 3824(a). 

10 ‘‘SEC. 3828. DEVELOPMENT PLANNING PROCESS. 

11 ‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 

12 with policies established by the Authority, each State 

13 member shall submit a development plan for the area of 

14 the region represented by the State member. 

15 ‘‘(b) CONTENT OF PLAN.—A State development plan 

16 submitted under subsection (a) shall reflect the goals, ob17 jectives, and priorities identified in the regional develop18 ment plan developed under section 3823(d)(2). 

19 ‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR20 TIES.—In carrying out the development planning process 

21 (including the selection of programs and projects for as22 sistance), a State may— 

23 ‘‘(1) consult with— 

24 ‘‘(A) multistate, regional, and local devel25 opment districts and organizations; and 


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1 ‘‘(B) local units of government; and 

2 ‘‘(2) take into consideration the goals, objec3 tives, priorities, and recommendations of the entities 

4 described in paragraph (1). 

5 ‘‘(d) PUBLIC PARTICIPATION.— 

6 ‘‘(1) IN GENERAL.—The Authority and applica7 ble multistate, regional, and local development dis8 tricts and organizations shall encourage and assist, 

9 to the maximum extent practicable, public participa10 tion in the development, revision, and implementa11 tion of all plans and programs under this chapter. 

12 ‘‘(2) REGULATIONS.—The Authority shall de13 velop guidelines for providing public participation 

14 described in paragraph (1), including public hear15 ings. 

16 ‘‘SEC. 3829. PROGRAM DEVELOPMENT CRITERIA. 

17 ‘‘(a) IN GENERAL.—In considering programs and 

18 projects to be provided assistance under this chapter, and 

19 in establishing a priority ranking of the requests for as20 sistance provided to the Authority, the Authority shall fol21 low procedures that ensure, to the maximum extent prac22 ticable, consideration of— 

23 ‘‘(1) the relationship of the project or class of 

24 projects to overall multistate or regional develop25 ment; 


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1 ‘‘(2) the per capita income and poverty and un2 employment and outmigration rates in an area; 

3 ‘‘(3) the financial resources available to the ap4 plicants for assistance seeking to carry out the 

5 project, with emphasis on ensuring that projects are 

6 adequately financed to maximize the probability of 

7 successful economic development; 

8 ‘‘(4) the importance of the project or class of 

9 projects in relation to other projects or classes of 

10 projects that may be in competition for the same 

11 funds; 

12 ‘‘(5) the prospects that the project for which as13 sistance is sought will improve, on a continuing rath14 er than a temporary basis, the opportunities for em15 ployment, the average level of income, or the eco16 nomic development of the area to be served by the 

17 project; and 

18 ‘‘(6) the extent to which the project design pro19 vides for detailed outcome measurements by which 

20 grant expenditures and the results of the expendi21 tures may be evaluated. 

22 ‘‘(b) NO RELOCATION ASSISTANCE.— 

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), no financial assistance authorized by this 


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1 chapter shall be used to assist a person or entity in 

2 relocating from 1 area to another. 

3 ‘‘(2) OUTSIDE BUSINESSES.—Financial assist4 ance under this chapter may be used as otherwise 

5 authorized by this title to attract businesses from 

6 outside the region to the region. 

7 ‘‘(c) MAINTENANCE OF EFFORT.—Funds may be 

8 provided for a program or project in a State under this 

9 chapter only if the Authority determines that the level of 

10 Federal or State financial assistance provided under a law 

11 other than this chapter, for the same type of program or 

12 project in the same area of the State within the region, 

13 will not be reduced as a result of funds made available 

14 by this chapter. 

15 ‘‘SEC. 3830. APPROVAL OF DEVELOPMENT PLANS AND 

16 PROJECTS. 

17 ‘‘(a) IN GENERAL.—A State or regional development 

18 plan or any multistate subregional plan that is proposed 

19 for development under this chapter shall be reviewed by 

20 the Authority. 

21 ‘‘(b) EVALUATION BY STATE MEMBER.—An applica22 tion for a grant or any other assistance for a project under 

23 this chapter shall be made through and evaluated for ap24 proval by the State member of the Authority representing 

25 the applicant. 


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1 ‘‘(c) CERTIFICATION.—An application for a grant or 

2 other assistance for a project shall be approved only on 

3 certification by the State member that the application for 

4 the project— 

5 ‘‘(1) describes ways in which the project com6 plies with any applicable State development plan; 

7 ‘‘(2) meets applicable criteria under section 

8 3829; 

9 ‘‘(3) provides adequate assurance that the pro10 posed project will be properly administered, oper11 ated, and maintained; and 

12 ‘‘(4) otherwise meets the requirements of this 

13 chapter. 

14 ‘‘(d) VOTES FOR DECISIONS.—On certification by a 

15 State member of the Authority of an application for a 

16 grant or other assistance for a specific project under this 

17 section, an affirmative vote of the Authority under section 

18 3822(c) shall be required for approval of the application. 

19 ‘‘SEC. 3831. CONSENT OF STATES. 

20 ‘‘Nothing in this chapter requires any State to engage 

21 in or accept any program under this chapter without the 

22 consent of the State. 

23 ‘‘SEC. 3832. RECORDS. 

24 ‘‘(a) RECORDS OF THE AUTHORITY.— 


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1 ‘‘(1) IN GENERAL.—The Authority shall main2 tain accurate and complete records of all trans3 actions and activities of the Authority. 

4 ‘‘(2) AVAILABILITY.—All records of the Author5 ity shall be available for audit and examination by 

6 the Comptroller General of the United States and 

7 the Inspector General of the Department of Agri8 culture (including authorized representatives of the 

9 Comptroller General and the Inspector General of 

10 the Department of Agriculture). 

11 ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST12 ANCE.— 

13 ‘‘(1) IN GENERAL.—A recipient of Federal 

14 funds under this chapter shall, as required by the 

15 Authority, maintain accurate and complete records 

16 of transactions and activities financed with Federal 

17 funds and report to the Authority on the trans18 actions and activities to the Authority. 

19 ‘‘(2) AVAILABILITY.—All records required 

20 under paragraph (1) shall be available for audit by 

21 the Comptroller General of the United States, the 

22 Inspector General of the Department of Agriculture, 

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1 eral of the Department of Agriculture, and the Au2 thority). 

3 ‘‘(c) ANNUAL AUDIT.—The Inspector General of the 

4 Department of Agriculture shall audit the activities, trans5 actions, and records of the Authority on an annual basis 

6 for any fiscal year for which funds are appropriated. 

7 ‘‘SEC. 3833. ANNUAL REPORT. 

8 ‘‘Not later than 180 days after the end of each fiscal 

9 year, the Authority shall submit to the President and to 

10 Congress a report describing the activities carried out 

11 under this chapter. 

12 ‘‘SEC. 3834. AUTHORIZATION OF APPROPRIATIONS. 

13 ‘‘(a) IN GENERAL.—There is authorized to be appro14 priated to the Authority to carry out this chapter 

15 $30,000,000 for each of fiscal years 2014 through 2018, 

16 to remain available until expended. 

17 ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 

18 percent of the amount appropriated under subsection (a) 

19 for a fiscal year shall be used for administrative expenses 

20 of the Authority. 

21 ‘‘(c) MINIMUM STATE SHARE OF GRANTS.—Notwith22 standing any other provision of this chapter, for any fiscal 

23 year, the aggregate amount of grants received by a State 

24 and all persons or entities in the State under this chapter 


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shall be not less than 1 1 ⁄3 of the product obtained by multi2 plying— 

3 ‘‘(1) the aggregate amount of grants under this 

4 chapter for the fiscal year; and 

5 ‘‘(2) the ratio that— 

6 ‘‘(A) the population of the State (as deter7 mined by the Secretary of Commerce based on 

8 the most recent decennial census for which data 

9 are available); bears to 

10 ‘‘(B) the population of the region (as so 

11 determined). 

12 ‘‘SEC. 3835. TERMINATION OF AUTHORITY. 

13 ‘‘The authority provided by this chapter terminates 

14 effective October 1, 2018. 

15 ‘‘Subtitle C—General Provisions 

16 ‘‘SEC. 3901. FULL FAITH AND CREDIT. 

17 ‘‘(a) IN GENERAL.—A guarantee executed by the 

18 Secretary under this title shall be an obligation supported 

19 by the full faith and credit of the United States. 

20 ‘‘(b) CONTESTABILITY.—A guarantee executed by the 

21 Secretary under this title shall be incontestable except for 

22 fraud or misrepresentation that the lender or any holder— 

23 ‘‘(1) has actual knowledge of at the time the 

24 guarantee is executed; or 

25 ‘‘(2) participates in or condones. 


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1 ‘‘SEC. 3902. PURCHASE AND SALE OF GUARANTEED POR2 TIONS OF LOANS. 

3 ‘‘(a) IN GENERAL.—Subject to subsections (b) and 

4 (c), the Secretary may purchase, on such terms and condi5 tions as the Secretary considers appropriate, the guaran6 teed portion of a loan guaranteed under this title, if the 

7 Secretary determines that an adequate secondary market 

8 is not available in the private sector. 

9 ‘‘(b) MAXIMUM PAYMENT.—The Secretary may not 

10 pay for any guaranteed portion of a loan under subsection 

11 (a) in excess of an amount equal to the unpaid principal 

12 balance and accrued interest on the guaranteed portion 

13 of the loan. 

14 ‘‘(c) SOURCES OF FUNDING.—The Secretary may use 

15 for the purchases— 

16 ‘‘(1) funds from the Rural Development Insur17 ance Fund with respect to rural development loans 

18 (as defined in section 3704(a)); and 

19 ‘‘(2) funds from the Agricultural Credit Insur20 ance Fund with respect to all other loans under this 

21 title. 

22 ‘‘(d) SALE OF GUARANTEED LOANS.— 

23 ‘‘(1) SALES.— 

24 ‘‘(A) REGULATION.— 

25 ‘‘(i) IN GENERAL.—The guaranteed 

26 portion of any loan made under this title 


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1 may be sold by the lender, and by any sub2 sequent holder, in accordance with such 

3 regulations governing the sales as the Sec4 retary shall establish, subject to clauses (ii) 

5 and (iii). 

6 ‘‘(ii) FEES TO BE PAID IN FULL.—All 

7 fees due the Secretary with respect to a 

8 guaranteed loan shall be paid in full before 

9 any sale. 

10 ‘‘(iii) LOAN TO BE FULLY DIS11 BURSED.—The loan shall be fully dis12 bursed to the borrower before the sale. 

13 ‘‘(B) POST-SALE.—After a loan is sold in 

14 the secondary market, the lender shall— 

15 ‘‘(i) remain obligated under the guar16 antee agreement of the lender with the 

17 Secretary; and 

18 ‘‘(ii) continue to service the loan in 

19 accordance with the terms and conditions 

20 of that agreement. 

21 ‘‘(C) PROCEDURES.—The Secretary shall 

22 develop such procedures as are necessary for— 

23 ‘‘(i) the facilitation, administration, 

24 and promotion of secondary market oper25 ations; and 


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1 ‘‘(ii) determining the increase of ac2 cess of farmers to capital at reasonable 

3 rates and terms as a result of secondary 

4 market operations. 

5 ‘‘(D) RIGHTS TO PREPAY.—This sub6 section does not impede or extinguish— 

7 ‘‘(i) the right of the borrower or the 

8 successor in interest to the borrower to 

9 prepay (in whole or in part) any loan made 

10 under this title; or 

11 ‘‘(ii) the rights of any party under any 

12 provision of this title. 

13 ‘‘(2) ISSUE POOL CERTIFICATES.— 

14 ‘‘(A) IN GENERAL.—The Secretary may, 

15 directly or through a market maker approved 

16 by the Secretary, issue pool certificates rep17 resenting ownership of part or all of the guar18 anteed portion of any loan guaranteed by the 

19 Secretary under this title. 

20 ‘‘(B) APPROVAL.—Certificates under sub21 paragraph (A) shall be based on and backed by 

22 a pool established or approved by the Secretary 

23 and composed solely of the entire guaranteed 

24 portion of the loans. 


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1 ‘‘(C) GUARANTEE OF POOL.—On such 

2 terms and conditions as the Secretary considers 

3 appropriate, the Secretary may guarantee the 

4 timely payment of the principal and interest on 

5 pool certificates issued on behalf of the Sec6 retary by approved market makers for purposes 

7 of this subsection. 

8 ‘‘(D) LIMITATIONS.—A guarantee under 

9 subparagraph (C) shall be limited to the extent 

10 of principal and interest on the guaranteed por11 tions of loans that compose the pool. 

12 ‘‘(E) PREPAYMENT.—If a loan in a pool is 

13 prepaid, either voluntarily or by reason of de14 fault, the guarantee of timely payment of prin15 cipal and interest on the pool certificates shall 

16 be reduced in proportion to the amount of prin17 cipal and interest that the prepaid loan rep18 resents in the pool. 

19 ‘‘(F) INTEREST ACCRUAL.—Interest on 

20 prepaid or defaulted loans shall accrue and be 

21 guaranteed by the Secretary only through the 

22 date of payment on the guarantee. 

23 ‘‘(G) REDEMPTION.—During the term of 

24 the pool certificate, the certificate may be called 


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1 for redemption due to prepayment or default of 

2 all loans constituting the pool. 

3 ‘‘(H) FULL FAITH AND CREDIT.—The full 

4 faith and credit of the United States is pledged 

5 to the payment of all amounts that may be re6 quired to be paid under any guarantee of the 

7 pool certificates issued by approved market 

8 makers under this subsection. 

9 ‘‘(I) FEES.— 

10 ‘‘(i) IN GENERAL.—The Secretary 

11 shall not collect any fee for any guarantee 

12 under this subsection. 

13 ‘‘(ii) SECRETARIAL FUNCTIONS.— 

14 Clause (i) does not preclude the Secretary 

15 from collecting a fee for the functions de16 scribed in paragraph (3). 

17 ‘‘(J) DEFAULT.—Not later than 30 days 

18 after a borrower of a guaranteed loan is in de19 fault of any principal or interest payment due 

20 for 60 days or more, the Secretary shall— 

21 ‘‘(i) purchase the pool certificates rep22 resenting ownership of the guaranteed por23 tion of the loan; and 

24 ‘‘(ii) pay the registered holder of the 

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1 teed portion of the loan represented by the 

2 certificate. 

3 ‘‘(K) PAYMENT OF CLAIMS.—If the Sec4 retary pays a claim under a guarantee issued 

5 under this subsection, the claim shall be sub6 rogated fully to the rights satisfied by the pay7 ment, as may be provided by the Secretary. 

8 ‘‘(L) APPLICATION OF LAWS.—No State or 

9 local law, and no Federal law, shall preclude or 

10 limit the exercise by the Secretary of the owner11 ship rights of the Secretary in the portions of 

12 loans constituting the pool against which the 

13 certificates are issued. 

14 ‘‘(3) DUTIES OF THE SECRETARY.— 

15 ‘‘(A) IN GENERAL.—On the adoption of 

16 final rules and regulations, the Secretary 

17 shall— 

18 ‘‘(i) provide for the central collection 

19 of registration information from all partici20 pating market makers for all loans and 

21 pool certificates sold under paragraphs (1) 

22 and (2), including, with respect to each 

23 original sale and any subsequent sale— 


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1 ‘‘(I) identification of the interest 

2 rate paid by the borrower to the lend3 er; 

4 ‘‘(II) the servicing fee of the 

5 lender; 

6 ‘‘(III) disclosure of whether in7 terest on the loan is at a fixed or vari8 able rate; 

9 ‘‘(IV) identification of each pur10 chaser of a pool certificate; 

11 ‘‘(V) the interest rate paid on the 

12 certificate; and 

13 ‘‘(VI) such other information as 

14 the Secretary considers appropriate. 

15 ‘‘(ii) before any sale, require the seller 

16 (as defined in subparagraph (B)) to dis17 close to each prospective purchaser of the 

18 portion of a loan guaranteed under this 

19 title and to each prospective purchaser of 

20 a pool certificate issued under paragraph 

21 (2) information on the terms, conditions, 

22 and yield of such instrument; 

23 ‘‘(iii) provide for adequate custody of 

24 any pooled guaranteed loans; 


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1 ‘‘(iv) take such actions as are nec2 essary, in restructuring pools of the guar3 anteed portion of loans, to minimize the es4 timated costs of paying claims under guar5 antees issued under this subsection; 

6 ‘‘(v) require each market maker— 

7 ‘‘(I) to service all pools formed, 

8 and participations sold, by the market 

9 maker; and 

10 ‘‘(II) to provide the Secretary 

11 with information relating to the collec12 tion and disbursement of all periodic 

13 payments, prepayments, and default 

14 funds from lenders, to or from the re15 serve fund that the Secretary shall es16 tablish to enable the timely payment 

17 guarantee to be self-funding, and 

18 from all beneficial holders; and 

19 ‘‘(vi) regulate market makers in pool 

20 certificates sold under this subsection. 

21 ‘‘(B) DEFINITION OF SELLER.—For pur22 poses of subparagraph (A)(ii), if the instrument 

23 being sold is a loan, the term ‘seller’ does not 

24 include— 

25 ‘‘(i) the person who made the loan; or 


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1 ‘‘(ii) any person who sells 3 or fewer 

2 guaranteed loans per year. 

3 ‘‘(4) CONTRACT FOR SERVICES.—The Secretary 

4 may contract for goods and services to be used for 

5 the purposes of this subsection without regard to ti6 tles 5, 40, and 41, United States Code (including 

7 any regulations issued under those titles). 

8 ‘‘SEC. 3903. ADMINISTRATION. 

9 ‘‘(a) POWERS OF SECRETARY.—The Secretary 

10 may— 

11 ‘‘(1)(A) administer the powers and duties of the 

12 Secretary through such national, area, State, or 

13 local offices and employees in the United States as 

14 the Secretary determines to be necessary; and 

15 ‘‘(B) authorize an office to serve an area com16 posed of 2 or more States if the Secretary deter17 mines that the volume of business in the area is not 

18 sufficient to justify separate State offices; 

19 ‘‘(2)(A) accept and use voluntary and uncom20 pensated services; and 

21 ‘‘(B) with the consent of the agency concerned, 

22 use the officers, employees, equipment, and informa23 tion of any agency of the Federal Government, or of 

24 any State, territory, or political subdivision; 


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1 ‘‘(3) subject to appropriations, make necessary 

2 expenditures for the purchase or hire of passenger 

3 vehicles, and such other facilities and services as the 

4 Secretary may from time to time find necessary for 

5 the proper administration of this title; 

6 ‘‘(4) subject to subsection (b), compromise, ad7 just, reduce, or charge-off debts or claims (including 

8 debts and claims arising from loan guarantees), and 

9 adjust, modify, subordinate, or release the terms of 

10 security instruments, leases, contracts, and agree11 ments entered into or administered by the Farm 

12 Service Agency, the Rural Utilities Service, the 

13 Rural Housing Service, the Rural Business-Coopera14 tive Service, or successor agencies under this title, 

15 except for activities conducted under the Housing 

16 Act of 1949 (42 U.S.C. 1441 et seq.); 

17 ‘‘(5)(A) except for activities conducted under 

18 the Housing Act of 1949 (42 U.S.C. 1441 et seq.), 

19 collect all claims and obligations administered by the 

20 Farm Service Agency, the Rural Utilities Service, 

21 the Rural Housing Service, or the Rural Business22 Cooperative Service, or under any mortgage, lease, 

23 contract, or agreement entered into or administered 

24 by the Agency or Service; and 


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1 ‘‘(B) if the Secretary determines the action is 

2 necessary and advisable, pursue the collection to 

3 final collection in any court having jurisdiction; 

4 ‘‘(6) release mortgage and other contract liens 

5 if it appears that the mortgage and liens have no 

6 present or prospective value or that the enforcement 

7 of the mortgage and liens likely would be ineffectual 

8 or uneconomical; 

9 ‘‘(7) obtain fidelity bonds protecting the Fed10 eral Government against fraud and dishonesty of of11 ficers and employees of the Farm Service Agency, 

12 the Rural Utilities Service, the Rural Housing Serv13 ice, or the Rural Business-Cooperative Service in 

14 lieu of faithful performance of duties bonds under 

15 section 14 of title 6, United States Code, but other16 wise in accordance with the section; 

17 ‘‘(8) consent to— 

18 ‘‘(A) long-term leases of facilities financed 

19 under this title notwithstanding the failure of 

20 the lessee to meet any of the requirements of 

21 this title if the long-term leases are necessary to 

22 ensure the continuation of services for which fi23 nancing was extended to the lessor; and 

24 ‘‘(B) the transfer of property securing any 

25 loan or financed by any loan or grant made or 


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1 guaranteed by the Farm Service Agency, the 

2 Rural Utilities Service, the Rural Housing Serv3 ice, or the Rural Business-Cooperative Service 

4 under this title, or any other law administered 

5 by the Secretary, on such terms as the Sec6 retary considers necessary to carry out the pur7 pose of the loan or grant or to protect the fi8 nancial interest of the Federal Government, 

9 provided that the Secretary shall document the 

10 consent of the Secretary for the transfer of the 

11 property of a borrower in the file of the bor12 rower; and 

13 ‘‘(9) notwithstanding that an area ceases, or 

14 has ceased, to be rural, in a rural area, or an eligible 

15 area, make loans and grants, and approve transfers 

16 and assumptions, under this title on the same basis 

17 as though the area still was rural in connection with 

18 property securing any loan made or guaranteed by 

19 the Secretary under this title or in connection with 

20 any property held by the Secretary under this title. 

21 ‘‘(b) LOAN ADJUSTMENTS.— 

22 ‘‘(1) NO LIQUIDATION OF PROPERTY.—The 

23 Secretary may not require liquidation of property se24 curing any farmer program loan or acceleration of 

25 any payment required under any farmer program 


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1 loan as a prerequisite to initiating an action author2 ized under subsection (a). 

3 ‘‘(2) RELEASE OF PERSONAL LIABILITY.— 

4 ‘‘(A) IN GENERAL.—Except as provided in 

5 subparagraph (B), the Secretary may release a 

6 borrower or other person obligated on a debt 

7 (other than debt incurred under the Housing 

8 Act of 1949 (42 U.S.C. 1441 et seq.)) from 

9 personal liability with or without payment of 

10 any consideration at the time of the com11 promise, adjustment, reduction, or charge-off of 

12 any claim. 

13 ‘‘(B) EXCEPTION.—No compromise, ad14 justment, reduction, or charge-off of any claim 

15 may be made or carried out after the claim has 

16 been referred to the Attorney General, unless 

17 the Attorney General approves. 

18 ‘‘(3) RURAL ELECTRIFICATION SECURITY IN19 STRUMENTS.—In the case of a security instrument 

20 entered into under the Rural Electrification Act of 

21 1936 (7 U.S.C. 901 et seq.), the Secretary shall no22 tify the Attorney General of the intent of the Sec23 retary to exercise the authority of the Secretary 

24 under paragraph (2). 


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1 ‘‘(c) SIMPLIFIED APPLICATION FORMS FOR LOAN

2 GUARANTEES.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall provide 

4 to lenders a short, simplified application form for 

5 guarantees under this title of— 

6 ‘‘(A) farmer program loans the principal 

7 amount of which is $125,000 or less; and 

8 ‘‘(B) business and industry guaranteed 

9 loans under section 3601(a)(2)(A) the principal 

10 amount of which is— 

11 ‘‘(i) $400,000 or less; or 

12 ‘‘(ii) if the Secretary determines that 

13 there is not a significant increased risk of 

14 a default on the loan, $600,000 or less. 

15 ‘‘(2) WATER AND WASTE DISPOSAL GRANTS

16 AND LOANS.—The Secretary shall develop an appli17 cation process that accelerates, to the maximum ex18 tent practicable, the processing of applications for 

19 water and waste disposal grants or direct or guaran20 teed loans under section 3501(a)(1) the grant award 

21 amount or principal loan amount, respectively, of 

22 which is $300,000 or less. 

23 ‘‘(3) ADMINISTRATION.—In developing an ap24 plication under this subsection, the Secretary shall— 


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1 ‘‘(A) consult with commercial and coopera2 tive lenders; and 

3 ‘‘(B) ensure that— 

4 ‘‘(i) the form can be completed manu5 ally or electronically, at the option of the 

6 lender; 

7 ‘‘(ii) the form minimizes the docu8 mentation required to accompany the form; 

9 ‘‘(iii) the cost of completing and proc10 essing the form is minimal; and 

11 ‘‘(iv) the form can be completed and 

12 processed in an expeditious manner. 

13 ‘‘(d) USE OF ATTORNEYS FOR PROSECUTION OR DE14 FENSE OF CLAIMS.—The Secretary may use for the pros15 ecution or defense of any claim or obligation described in 

16 subsection (a)(5) the Attorney General, the General Coun17 sel of the Department, or a private attorney who has en18 tered into a contract with the Secretary. 

19 ‘‘(e) PRIVATE COLLECTION AGENCY.—The Secretary 

20 may use a private collection agency to collect a claim or 

21 obligation described in subsection (a)(5). 

22 ‘‘(f) SECURITY SERVICING.— 

23 ‘‘(1) IN GENERAL.—The Secretary may— 

24 ‘‘(A) make advances, without regard to any 

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1 serve and protect the security for, or the lien or 

2 priority of the lien securing any loan or other 

3 indebtedness owing to or acquired by the Sec4 retary under this title or under any other pro5 gram administered by the Farm Service Agen6 cy, the Rural Utilities Service, the Rural Hous7 ing Service, or the Rural Business-Cooperative 

8 Service applicable program, as determined by 

9 the Secretary; and 

10 ‘‘(B)(i) bid for and purchase at any execu11 tion, foreclosure, or other sale or otherwise ac12 quire property on which the United States has 

13 a lien by reason of a judgment or execution 

14 arising from, or that is pledged, mortgaged, 

15 conveyed, attached, or levied on to secure the 

16 payment of, the indebtedness regardless of 

17 whether the property is subject to other liens; 

18 ‘‘(ii) accept title to any property so pur19 chased or acquired; and 

20 ‘‘(iii) sell, manage, or otherwise dispose of 

21 the property in accordance with this subsection. 

22 ‘‘(2) OPERATION OR LEASE OF REALTY.—Ex23 cept as provided in subsections (c) and (e), real 

24 property administered under this title may be oper25 ated or leased by the Secretary for such period as 


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1 the Secretary may consider necessary to protect the 

2 investment of the Federal Government in the prop3 erty. 

4 ‘‘(g) PAYMENTS TO LENDERS.— 

5 ‘‘(1) REQUIREMENT.—Not later than 90 days 

6 after a court of competent jurisdiction confirms a 

7 plan of reorganization under chapter 12 of title 11, 

8 United States Code, for any borrower to whom a 

9 lender has made a loan guaranteed under this title, 

10 the Secretary shall pay the lender an amount esti11 mated by the Secretary to be equal to the loss in12 curred by the lender for purposes of the guarantee. 

13 ‘‘(2) PAYMENT TOWARD LOAN GUARANTEE.— 

14 Any amount paid to a lender under this subsection 

15 with respect to a loan guaranteed under this title 

16 shall be treated as payment towards satisfaction of 

17 the loan guarantee. 

18 ‘‘SEC. 3904. LOAN MORATORIUM AND POLICY ON FORE19 CLOSURES. 

20 ‘‘(a) IN GENERAL.—In addition to any other author21 ity that the Secretary may have to defer principal and in22 terest and forgo foreclosure, the Secretary may permit, at 

23 the request of the borrower, the deferral of principal and 

24 interest on any outstanding loan made or guaranteed by 

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1 ministered by the Farm Service Agency, the Rural Utili2 ties Service, the Rural Housing Service, or the Rural Busi3 ness-Cooperative Service, and may forgo foreclosure of the 

4 loan, for such period as the Secretary considers necessary 

5 on a showing by the borrower that, due to circumstances 

6 beyond the control of the borrower, the borrower is tempo7 rarily unable to continue making payments of the principal 

8 and interest when due without unduly impairing the 

9 standard of living of the borrower. 

10 ‘‘(b) INTEREST.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), the Secretary may permit any loan de13 ferred under this section to bear no interest during 

14 or after the deferral period. 

15 ‘‘(2) EXCEPTION.—If the security instrument 

16 securing the loan is foreclosed, such interest as is in17 cluded in the purchase price at the foreclosure shall 

18 become part of the principal and draw interest from 

19 the date of foreclosure at the rate prescribed by law. 

20 ‘‘(c) MORATORIUM REGARDING CIVIL RIGHTS

21 CLAIMS.— 

22 ‘‘(1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, effective beginning on May 

24 22, 2008, there shall be in effect a moratorium, with 

25 respect to farmer program loans made under subtitle 


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1 A, on all acceleration and foreclosure proceedings in2 stituted by the Department against any farmer 

3 who— 

4 ‘‘(A) has pending against the Department 

5 a claim of program discrimination that is ac6 cepted by the Department as valid; or 

7 ‘‘(B) files a claim of program discrimina8 tion that is accepted by the Department as 

9 valid. 

10 ‘‘(2) WAIVER OF INTEREST AND OFFSETS.— 

11 During the period of the moratorium, the Secretary 

12 shall waive the accrual of interest and offsets on all 

13 farmer program loans made under subtitle A for 

14 which loan acceleration or foreclosure proceedings 

15 have been suspended under paragraph (1). 

16 ‘‘(3) TERMINATION OF MORATORIUM.—The 

17 moratorium shall terminate with respect to a claim 

18 of discrimination by a farmer on the earlier of— 

19 ‘‘(A) the date the Secretary resolves the 

20 claim; or 

21 ‘‘(B) if the farmer appeals the decision of 

22 the Secretary on the claim to a court of com23 petent jurisdiction, the date that the court ren24 ders a final decision on the claim. 


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1 ‘‘(4) FAILURE TO PREVAIL.—If a farmer does 

2 not prevail on a claim of discrimination described in 

3 paragraph (1), the farmer shall be liable for any in4 terest and offsets that accrued during the period 

5 that loan acceleration or foreclosure proceedings 

6 have been suspended under paragraph (1). 

7 ‘‘SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON LOANS. 

8 ‘‘(a) IN GENERAL.—The Secretary shall permit a 

9 borrower of a loan made or guaranteed under this title 

10 to make a prospective payment on the loan with proceeds 

11 from— 

12 ‘‘(1) the leasing of oil, gas, or other mineral 

13 rights to real property used to secure the loan; or 

14 ‘‘(2) the sale of oil, gas, or other minerals re15 moved from real property used to secure the loan, if 

16 the value of the rights to the oil, gas, or other min17 erals has not been used to secure the loan. 

18 ‘‘(b) APPLICABILITY.—Subsection (a) shall not apply 

19 to a borrower of a loan made or guaranteed under this 

20 title with respect to which a liquidation or foreclosure pro21 ceeding was pending on December 23, 1985. 

22 ‘‘SEC. 3906. TAXATION. 

23 ‘‘(a) IN GENERAL.—Except as provided in subsection 

24 (b), all property subject to a lien held by the United States 

25 or the title to which is acquired or held by the Secretary 


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1 under this title (other than property used for administra2 tive purposes) shall be subject to taxation by State, terri3 tory, district, and local political subdivisions in the same 

4 manner and to the same extent as other property is taxed. 

5 ‘‘(b) EXCEPTIONS.—No tax shall be imposed or col6 lected as described in subsection (a) if the tax (whether 

7 as a tax on the instrument or in connection with con8 veying, transferring, or recording the instrument) is based 

9 on— 

10 ‘‘(1) the value of any notes or mortgages or 

11 other lien instruments held by or transferred to the 

12 Secretary; 

13 ‘‘(2) any notes or lien instruments administered 

14 under this title that are made, assigned, or held by 

15 a person otherwise liable for the tax; or 

16 ‘‘(3) the value of any property conveyed or 

17 transferred to the Secretary. 

18 ‘‘(c) FAILURE TO PAY OR COLLECT TAX.—The fail19 ure to pay or collect a tax under subsection (a) shall not— 

20 ‘‘(1) be a ground for— 

21 ‘‘(A) refusal to record or file an instru22 ment; or 

23 ‘‘(B) failure to provide notice; or 

24 ‘‘(2) prevent the enforcement of the instrument 

25 in any Federal or State court. 


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1 ‘‘SEC. 3907. CONFLICTS OF INTEREST. 

2 ‘‘(a) ACCEPTANCE OF CONSIDERATION PROHIB3 ITED.—No officer, attorney, or other employee of the De4 partment shall, directly or indirectly, be the beneficiary 

5 of or receive any fee, commission, gift, or other consider6 ation for or in connection with any transaction or business 

7 under this title other than such salary, fee, or other com8 pensation as the officer, attorney, or employee may receive 

9 as the officer, attorney, or employee. 

10 ‘‘(b) ACQUISITION OF INTEREST IN LAND PROHIB11 ITED.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), no officer or employee of the Department 

14 who acts on or reviews an application made by any 

15 person under this title for a loan to purchase land 

16 may acquire, directly or indirectly, any interest in 

17 the land for a period of 3 years after the date on 

18 which the action is taken or the review is made. 

19 ‘‘(2) FORMER COUNTY COMMITTEE MEM20 BERS.—Paragraph (1) shall not apply to a former 

21 member of a county committee on a determination 

22 by the Secretary, prior to the acquisition of the in23 terest, that the former member acted in good faith 

24 when acting on or reviewing the application. 

25 ‘‘(c) PENALTIES.—Any person violating this section 

26 shall, on conviction of the violation, be punished by a fine 


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1 of not more than $2,000 or imprisonment for not more 

2 than 2 years, or both. 

3 ‘‘SEC. 3908. LOAN SUMMARY STATEMENTS. 

4 ‘‘(a) DEFINITION OF SUMMARY PERIOD.—In this 

5 section, the term ‘summary period’ means the period be6 ginning on the date of issuance of the preceding loan sum7 mary statement and ending on the date of issuance of the 

8 current loan summary statement. 

9 ‘‘(b) ISSUANCE OF STATEMENTS.—On the request of 

10 a borrower of a loan made (but not guaranteed) under 

11 this title, the Secretary shall issue to the borrower a loan 

12 summary statement that reflects the account activity dur13 ing the summary period for each loan made under this 

14 title to the borrower, including— 

15 ‘‘(1) the outstanding amount of principal due 

16 on each loan at the beginning of the summary pe17 riod; 

18 ‘‘(2) the interest rate charged on each loan; 

19 ‘‘(3) the amount of payments made on, and the 

20 application of the payments to, each loan during the 

21 summary period and an explanation of the basis for 

22 the application of the payments; 

23 ‘‘(4) the amount of principal and interest due 

24 on each loan at the end of the summary period; 


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1 ‘‘(5) the total amount of unpaid principal and 

2 interest on all loans at the end of the summary pe3 riod; 

4 ‘‘(6) any delinquency in the repayment of any 

5 loan; 

6 ‘‘(7) a schedule of the amount and date of pay7 ments due on each loan; and 

8 ‘‘(8) the procedure the borrower may use to ob9 tain more information concerning the status of the 

10 loans. 

11 ‘‘SEC. 3909. CERTIFIED LENDERS PROGRAM. 

12 ‘‘(a) CERTIFIED LENDERS PROGRAM.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall estab14 lish a program under which the Secretary shall 

15 guarantee loans under this title that are made by 

16 lending institutions certified by the Secretary. 

17 ‘‘(2) CERTIFICATION REQUIREMENTS.—The 

18 Secretary shall certify a lending institution that 

19 meets such criteria as the Secretary may prescribe 

20 in regulations, including the ability of the institution 

21 to properly make, service, and liquidate the loans of 

22 the institution. 

23 ‘‘(3) CONDITION OF CERTIFICATION.— 

24 ‘‘(A) IN GENERAL.—As a condition of the 

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1 stitution to undertake to service the loans guar2 anteed by the Secretary under this section, 

3 using standards that are not less stringent than 

4 generally accepted banking standards con5 cerning loan servicing employed by prudent 

6 commercial or cooperative lenders. 

7 ‘‘(B) MONITORING.—The Secretary shall, 

8 at least annually, monitor the performance of 

9 each certified lender to ensure that the condi10 tions of the certification are being met. 

11 ‘‘(4) EFFECT OF CERTIFICATION.—Notwith12 standing any other provision of law: 

13 ‘‘(A) AMOUNT OF LOAN GUARANTEE.—In 

14 the case of a loan made or guaranteed under 

15 subtitle A, the Secretary shall guarantee not 

16 more than 80 percent of a loan made under this 

17 section by a certified lending institution as de18 scribed in paragraph (1), subject to a deter19 mination that the borrower of the loan meets 

20 the eligibility requirements and such other cri21 teria as may be applicable to loans guaranteed 

22 by the Secretary under other provisions of this 

23 title. 

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1 teed by the Secretary under this section, the 

2 Secretary shall permit certified lending institu3 tions to make appropriate certifications (as pro4 vided by regulations issued by the Secretary)— 

5 ‘‘(i) relating to issues such as credit6 worthiness, repayment ability, adequacy of 

7 collateral, and feasibility of farm operation; 

8 and 

9 ‘‘(ii) that the borrower is in compli10 ance with all requirements of law, includ11 ing regulations issued by the Secretary. 

12 ‘‘(C) APPROVAL PROCESS.— 

13 ‘‘(i) IN GENERAL.—The Secretary 

14 shall approve or disapprove a guarantee 

15 not later than 14 days after the date that 

16 the lending institution applies to the Sec17 retary for the guarantee. 

18 ‘‘(ii) DISAPPROVAL.—If the Secretary 

19 disapproves the loan application during the 

20 14-day period, the Secretary shall state, in 

21 writing, all of the reasons the application 

22 was disapproved. 

23 ‘‘(5) RELATIONSHIP TO OTHER REQUIRE24 MENTS.—Nothing in this section affects the respon25 sibility of the Secretary to certify eligibility, review 


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1 financial information, and otherwise assess an appli2 cation. 

3 ‘‘(b) PREFERRED CERTIFIED LENDERS PROGRAM.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall estab5 lish a Preferred Certified Lenders Program for lend6 ers under this title who establish— 

7 ‘‘(A) knowledge of, and experience under, 

8 the program established under subsection (a); 

9 ‘‘(B) knowledge of the regulations con10 cerning the guaranteed loan program; and 

11 ‘‘(C) proficiency related to the certified 

12 lender program requirements. 

13 ‘‘(2) REVOCATION OF DESIGNATION.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), the designation of a lender as a Pre16 ferred Certified Lender shall be revoked at any 

17 time— 

18 ‘‘(i) that the Secretary determines 

19 that the lender is not adhering to the rules 

20 and regulations applicable to the program; 

21 or 

22 ‘‘(ii) if the loss experiences of a Pre23 ferred Certified Lender are excessive as 

24 compared to other Preferred Certified 

25 Lenders. 


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1 ‘‘(B) EFFECT.—A suspension or revocation 

2 under subparagraph (A) shall not affect any 

3 outstanding guarantee. 

4 ‘‘(3) CONDITION OF CERTIFICATION.—As a 

5 condition of preferred certification, the Secretary 

6 shall require the institution to undertake to service 

7 the loans guaranteed by the Secretary under this 

8 subsection using generally accepted banking stand9 ards concerning loan servicing employed by prudent 

10 commercial or cooperative lenders. 

11 ‘‘(4) MONITORING.—The Secretary shall, at 

12 least annually, monitor the performance of each Pre13 ferred Certified Lender to ensure that the conditions 

14 of certification are being met. 

15 ‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI16 CATION.— 

17 ‘‘(A) IN GENERAL.—Notwithstanding any 

18 other provision of law, the Secretary shall— 

19 ‘‘(i) guarantee not more than 80 per20 cent of an approved loan made by a cer21 tified lending institution as described in 

22 this subsection, subject to a determination 

23 that the borrower meets the eligibility re24 quirements or such other criteria as may 

25 be applicable to loans guaranteed by the 


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1 Secretary under other provisions of this 

2 title; 

3 ‘‘(ii) permit certified lending institu4 tions— 

5 ‘‘(I) to make all decisions, with 

6 respect to loans to be guaranteed by 

7 the Secretary under this subsection 

8 relating to credit worthiness, the clos9 ing, monitoring, collection and liquida10 tion of loans; and 

11 ‘‘(II) to accept appropriate cer12 tifications, as provided by regulations 

13 issued by the Secretary, that the bor14 rower is in compliance with all re15 quirements of law or regulations pro16 mulgated by the Secretary; and 

17 ‘‘(iii) be considered to have guaran18 teed 80 percent of a loan made by a pre19 ferred certified lending institution as de20 scribed in paragraph (1), if the Secretary 

21 fails to approve or reject the application of 

22 such institution within 14 calendar days 

23 after the date that the lending institution 

24 presented the application to the Secretary. 


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1 ‘‘(B) REQUIREMENT.—If the Secretary re2 jects an application under subparagraph (A)(iii) 

3 during the 14-day period, the Secretary shall 

4 state, in writing, the reasons the application 

5 was rejected. 

6 ‘‘(c) ADMINISTRATION OF CERTIFIED LENDERS AND

7 PREFERRED CERTIFIED LENDERS PROGRAMS.—The Sec8 retary may administer the loan guarantee programs under 

9 subsections (a) and (b) through central offices established 

10 in States or in multi-State areas. 

11 ‘‘SEC. 3910. LOANS TO RESIDENT ALIENS. 

12 ‘‘(a) IN GENERAL.—Notwithstanding the provisions 

13 of this title limiting the making of a loan to a citizen of 

14 the United States, the Secretary may make a loan under 

15 this title to an alien lawfully admitted to the United States 

16 for permanent residence under the Immigration and Na17 tionality Act (8 U.S.C. 1101 et seq.). 

18 ‘‘(b) REGULATIONS.— 

19 ‘‘(1) IN GENERAL.—No loan may be made 

20 under this title to an alien referred to in subsection 

21 (a) until the Secretary issues regulations estab22 lishing the terms and conditions under which the 

23 alien may receive the loan. 

24 ‘‘(2) REQUIREMENT.—The Secretary shall sub25 mit the regulations to the Committee on Agriculture 


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1 of the House of Representatives and the Committee 

2 on Agriculture, Nutrition, and Forestry of the Sen3 ate at least 30 days prior to the date on which the 

4 regulations are published in the Federal Register. 

5 ‘‘SEC. 3911. EXPEDITED CLEARING OF TITLE TO INVENTORY 

6 PROPERTY. 

7 ‘‘(a) IN GENERAL.—The Secretary may employ local 

8 attorneys, on a case-by-case basis, to process all legal pro9 cedures necessary to clear the title to foreclosed properties 

10 in the inventory of the Department. 

11 ‘‘(b) COMPENSATION.—Attorneys shall be com12 pensated at not more than the usual and customary 

13 charges of the attorneys for the work. 

14 ‘‘SEC. 3912. TRANSFER OF LAND TO SECRETARY. 

15 ‘‘The President may at any time, in the discretion 

16 of the President, transfer to the Secretary any right, inter17 est, or title held by the United States in any land acquired 

18 in the program of national defense and no longer needed 

19 for that purpose that the President finds suitable for the 

20 purposes of this title, and the Secretary shall dispose of 

21 the transferred land in the manner and subject to the 

22 terms and conditions of this title. 

23 ‘‘SEC. 3913. COMPETITIVE SOURCING LIMITATIONS. 

24 ‘‘The Secretary may not complete a study of, or enter 

25 into a contract with a private party to carry out, without 


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1 specific authorization in a subsequent Act of Congress, a 

2 competitive sourcing activity of the Secretary, including 

3 support personnel of the Department, relating to rural de4 velopment or farmer program loans. 

5 ‘‘SEC. 3914. REGULATIONS. 

6 ‘‘The Secretary may issue such regulations, prescribe 

7 such terms and conditions for making or guaranteeing 

8 loans, security instruments, and agreements, except as 

9 otherwise specified in this title, and make such delegations 

10 of authority as the Secretary considers necessary to carry 

11 out this title.’’. 

12 SEC. 6002. CONFORMING AMENDMENTS. 

13 (a) Section 17(c) of the Rural Electrification Act of 

14 1936 (7 U.S.C. 917(c)) is amended by striking paragraph 

15 (1) and inserting the following: 

16 ‘‘(1) Subtitle B of the Consolidated Farm and 

17 Rural Development Act.’’. 

18 (b) Section 305(c)(2)(B)(i)(I) of the Rural Elec19 trification Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is 

20 amended by striking ‘‘section 307(a)(3)(A) of the Consoli21 dated Farm and Rural Development Act (7 U.S.C. 

22 1927(a)(3)(A))’’ and inserting ‘‘section 3701(b)(2) of the 

23 Consolidated Farm and Rural Development Act’’. 


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1 (c) Section 306F(a)(1) of the Rural Electrification 

2 Act of 1936 (7 U.S.C. 936f(a)(1)) is amended by striking 

3 subparagraph (B) and inserting the following: 

4 ‘‘(B) chapter 1 of subtitle B of the Con5 solidated Farm and Rural Development Act.’’. 

6 (d) Section 2333(d) of the Food, Agriculture, Con7 servation, and Trade Act of 1990 (7 U.S.C. 950aaa–2(d)) 

8 is amended— 

9 (1) in paragraph (11), by adding ‘‘and’’ at the 

10 end; 

11 (2) by striking paragraph (12); and 

12 (3) by redesignating paragraph (13) as para13 graph (12). 

14 (e) Section 601(b) of the Rural Electrification Act 

15 of 1936 (7 U.S.C. 950bb(b)) is amended by striking para16 graph (3). 

17 (f) Section 602(5) of the Emergency Livestock Feed 

18 Assistance Act of 1988 (7 U.S.C. 1471(5)) is amended 

19 by striking ‘‘section 355(e)(1)(D)(ii) of the Consolidated 

20 Farm and Rural Development Act (7 U.S.C. 

21 1985(e)(1)(D)(ii))’’ and inserting ‘‘section 3409(c)(1)(A) 

22 of the Consolidated Farm and Rural Development Act)’’. 

23 (g) Section 508 of the Federal Crop Insurance Act 

24 (7 U.S.C. 1508) is amended— 


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1 (1) in subsection (b)(7)(A), by striking ‘‘section 

2 371 of the Consolidated Farm and Rural Develop3 ment Act (7 U.S.C. 2008f)’’ and inserting ‘‘section 

4 3424 of the Consolidated Farm and Rural Develop5 ment Act’’; and 

6 (2) in subsection (n)(2), by striking ‘‘subtitle C 

7 of the Consolidated Farm and Rural Development 

8 Act (7 U.S.C. 1961 et seq.)’’ and inserting ‘‘chapter 

9 3 of subtitle A of the Consolidated Farm and Rural 

10 Development Act’’. 

11 (h) Section 231(a) of the Agricultural Risk Protec12 tion Act of 2000 (7 U.S.C. 1632a(a)) is amended— 

13 (1) in paragraph (1), by striking ‘‘section 

14 343(a) of the Consolidated Farm and Rural Devel15 opment Act (7 U.S.C. 1991(a))’’ and inserting ‘‘sec16 tion 3002 of the Consolidated Farm and Rural De17 velopment Act’’; and 

18 (2) in paragraph (4), by striking ‘‘section 

19 355(e) of the Consolidated Farm and Rural Devel20 opment Act (7 U.S.C. 2003(e))’’ and inserting ‘‘sec21 tion 3002 of the Consolidated Farm and Rural De22 velopment Act’’. 

23 (i) Section 14204(a) of the Food, Conservation, and 

24 Energy Act of 2008 (7 U.S.C. 2008q–1(a)) is amended 

25 by striking ‘‘an entity described in section 379C(a) of the 


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1 Consolidated Farm and Rural Development Act (7 U.S.C. 

2 2008q(a))’’ and inserting ‘‘an entity determined by the 

3 Secretary’’. 

4 (j) Section 607(c)(6) of the Rural Development Pol5 icy Act of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the 

6 last sentence— 

7 (1) by striking ‘‘, and’’ and inserting ‘‘and 

8 any’’; and 

9 (2) by striking ‘‘required under section 

10 306(a)(12) of the Consolidated Farm and Rural De11 velopment Act’’. 

12 (k) Section 901(b) of the Agricultural Act of 1970 

13 (7 U.S.C. 2204b–1(b)) is amended by striking ‘‘rural 

14 areas as defined in the private business enterprise excep15 tion in section 306(a)(7) of the Consolidated Farmers 

16 Home Administration Act of 1961, as amended (7 U.S.C. 

17 1926)’’ and inserting ‘‘rural areas, as defined in section 

18 3002 of the Consolidated Farm and Rural Development 

19 Act’’. 

20 (l) Section 14220 of the Food, Conservation, and En21 ergy Act of 2008 (7 U.S.C. 2206b) is amended by striking 

22 ‘‘section 343(a)(13)(A) of the Consolidated Farm and 

23 Rural Development Act)’’ and inserting ‘‘section 3002 of 

24 the Consolidated Farm and Rural Development Act)’’. 


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1 (m) Section 2501(c)(2)(D) of the Food, Agriculture, 

2 Conservation, and Trade Act of 1990 (7 U.S.C. 

3 2279(c)(2)(D)) is amended by striking ‘‘sections 

4 355(a)(1) and 355(c) of the Consolidated Farm and Rural 

5 Development Act (7 U.S.C. 2003(a)(1))’’ and inserting 

6 ‘‘paragraphs (1) and (3) of section 3416(a) of the Consoli7 dated Farm and Rural Development Act’’. 

8 (n) Section 2501A(b) of the Food, Agriculture, Con9 servation, and Trade Act of 1990 (7 U.S.C. 2279–1(b)) 

10 is amended by striking ‘‘section 355(e) of the Consolidated 

11 Farm and Rural Development Act (7 U.S.C. 2003(e))’’ 

12 and inserting ‘‘section 3002 of the Consolidated Farm and 

13 Rural Development Act’’. 

14 (o) Section 7405(c)(8)(B) of the Farm Security and 

15 Rural Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) 

16 is amended by striking ‘‘section 355(e) of the Consolidated 

17 Farm and Rural Development Act (7 U.S.C. 2003(e))’’ 

18 and inserting ‘‘section 3002 of the Consolidated Farm and 

19 Rural Development Act)’’. 

20 (p) Section 1101(d)(2)(A) of the Food, Conservation, 

21 and Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is 

22 amended by striking ‘‘section 355(e) of the Consolidated 

23 Farm and Rural Development Act (7 U.S.C. 2003(e))’’ 

24 and inserting ‘‘section 3002 of the Consolidated Farm and 

25 Rural Development Act)’’. 


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1 (q) Section 1302(d)(2)(A) of the Food, Conservation, 

2 and Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is 

3 amended by striking ‘‘section 355(e) of the Consolidated 

4 Farm and Rural Development Act (7 U.S.C. 2003(e))’’ 

5 and inserting ‘‘section 3002 of the Consolidated Farm and 

6 Rural Development Act)’’. 

7 (r) Section 2375(g) of the Food, Agriculture, Con8 servation, and Trade Act of 1990 (7 U.S.C. 6613(g)) is 

9 amended by striking ‘‘section 304(b), 306(a), or 310B(e) 

10 of the Consolidated Farm and Rural Development Act (7 

11 U.S.C. 1924(b), 1926(a), and 1932(e))’’ and inserting 

12 ‘‘subtitle B of the Consolidated Farm and Rural Develop13 ment Act’’. 

14 (s) Section 226B(a)(1) of the Department of Agri15 culture Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) 

16 is amended by striking ‘‘section 343(a) of the Consolidated 

17 Farm and Rural Development Act (7 U.S.C. 1991(a))’’ 

18 and inserting ‘‘section 3002 of the Consolidated Farm and 

19 Rural Development Act’’. 

20 (t) Section 196(i)(3)(B) of the Federal Agriculture 

21 Improvement and Reform Act of 1996 (7 U.S.C. 

22 7333(i)(3)(B)) is amended by striking ‘‘subtitle C of the 

23 Consolidated Farm and Rural Development Act (7 U.S.C. 

24 1961 et seq.)’’ and inserting ‘‘chapter 3 of subtitle A of 

25 the Consolidated Farm and Rural Development Act’’. 


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1 (u) Section 9009(a)(1) of the Farm Security and 

2 Rural Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is 

3 amended by striking ‘‘section 343(a)(13)(A) of the Con4 solidated Farm and Rural Development Act (7 U.S.C. 

5 1991(a)(13)(A)))’’ and inserting ‘‘section 3002 of the 

6 Consolidated Farm and Rural Development Act’’. 

7 (v) Section 9011(c)(2)(B)(v) of the Farm Security 

8 and Rural Investment Act of 2002 (7 U.S.C. 

9 8111(c)(2)(B)(v)) is amended by striking subclause (I) 

10 and inserting the following: 

11 ‘‘(I) beginning farmers (as de12 fined in accordance with section 3002 

13 of the Consolidated Farm and Rural 

14 Development Act); or’’. 

15 (w) Section 7(b)(2)(B) of the Small Business Act (15 

16 U.S.C. 636(b)(2)(B)) is amended by striking ‘‘section 321 

17 of the Consolidated Farm and Rural Development Act (7 

18 U.S.C. 1961)’’ and inserting ‘‘section 3301 of the Consoli19 dated Farm and Rural Development Act’’. 

20 (x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil Con21 servation and Domestic Allotment Act (16 U.S.C. 

22 590h(b)(5)(B)(iii)(III)(bb)) is amended by striking ‘‘sec23 tion 355(e)(1) of the Consolidated Farm and Rural Devel24 opment Act (7 U.S.C. 2003(e)(1))’’ and inserting ‘‘section 


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1 3002 of the Consolidated Farm and Rural Development 

2 Act)’’. 

3 (y) Section 10(b)(3) of the Cooperative Forestry As4 sistance Act of 1978 (16 U.S.C. 2106(b)(3)) is amended 

5 in the last sentence by striking ‘‘set out in the first clause 

6 of section 306(a)(7) of the Consolidated Farm and Rural 

7 Development Act’’ and inserting ‘‘given the term in sec8 tion 3002 of the Consolidated Farm and Rural Develop9 ment Act’’. 

10 (z) Section 1201(a)(2) of the Food Security Act of 

11 1985 (16 U.S.C. 3801(a)(2)) is amended by striking ‘‘sec12 tion 343(a)(8) of the Consolidated Farm and Rural Devel13 opment Act (7 U.S.C. 1991(a)(8))’’ and inserting ‘‘section 

14 3002 of the Consolidated Farm and Rural Development 

15 Act’’. 

16 (aa) Section 1238(2) of the Food Security Act of 

17 1985 (16 U.S.C. 3838(2)) is amended by striking ‘‘section 

18 343(a) of the Consolidated Farm and Rural Development 

19 Act (7 U.S.C. 1991(a))’’ and inserting ‘‘section 3002 of 

20 the Consolidated Farm and Rural Development Act’’. 

21 (bb) Section 5 of Public Law 91–229 (25 U.S.C. 492) 

22 is amended by striking ‘‘section 307(a)(3)(B) of the Con23 solidated Farmers Home Administration Act of 1961, as 

24 amended, and to the provisions of subtitle D of that Act 

25 except sections 340, 341, 342, and 343’’ and inserting 


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1 ‘‘3105(b)(2) of the Consolidated Farm and Rural Develop2 ment Act’’. 

3 (cc) Section 6(c) of Public Law 91–229 (25 U.S.C. 

4 493(c)) is amended by striking ‘‘section 333B of the Con5 solidated Farm and Rural Development Act (7 U.S.C. 

6 1983b)’’ and inserting ‘‘subtitle H of the Department of 

7 Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 

8 et seq.)’’. 

9 (dd) Section 181(a)(2)(B)(ii) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘section 2009aa– 

11 1 of title 7, United States Code’’ and inserting ‘‘section 

12 3801 of the Consolidated Farm and Rural Development 

13 Act’’. 

14 (ee) Section 515(b)(3) of the Housing Act of 1949 

15 (42 U.S.C. 1485(b)(3)) is amended by striking ‘‘all the 

16 provisions of section 309 and the second and third sen17 tences of section 308 of the Consolidated Farmers Home 

18 Administration Act of 1961, including the authority in 

19 section 309(f)(1) of that Act’’ and inserting ‘‘section 3401 

20 of the Consolidated Farm and Rural Development Act’’. 

21 (ff) Section 517(b) of the Housing Act of 1949 (42 

22 U.S.C. 1487(b)) is amended in the third sentence by strik23 ing ‘‘(7 U.S.C. 1929)’’ and inserting ‘‘under section 3401 

24 of the Consolidated Farm and Rural Development Act’’. 


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1 (gg) Section 3(8) of the Public Works and Economic 

2 Development Act of 1965 (42 U.S.C. 3122(8)) is amend3 ed— 

4 (1) by striking subparagraph (B) and inserting 

5 the following: 

6 ‘‘(B) the Delta Regional Authority estab7 lished under chapter 4 of subtitle B of the Con8 solidated Farm and Rural Development Act;’’; 

9 and 

10 (2) by striking subparagraph (D) and inserting 

11 the following: 

12 ‘‘(D) the Northern Great Plains Regional 

13 Authority established under chapter 5 of sub14 title B of the Consolidated Farm and Rural De15 velopment Act.’’. 

16 (hh) Section 310(a) of the Robert T. Stafford Dis17 aster Relief and Emergency Assistance Act (42 U.S.C. 

18 5153(a)) is amended by striking paragraph (4) and insert19 ing the following: 

20 ‘‘(4) Chapter 1 of subtitle B of the Consoli21 dated Farm and Rural Development Act.’’. 

22 (ii) Section 582(d)(1) of the National Flood Insur23 ance Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is 

24 amended by striking ‘‘section 321(a) of the Consolidated 

25 Farm and Rural Development Act (7 U.S.C. 1961(a))’’ 


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1 and inserting ‘‘section 3301(b) of the Consolidated Farm 

2 and Rural Development Act’’. 

3 (jj) Section 213(c)(1) of the Biomass Energy and Al4 cohol Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amend5 ed in the first sentence by striking ‘‘section 309 of the 

6 Consolidated Farm and Rural Development Act or the 

7 Rural Development Insurance Fund in section 309A of 

8 such Act’’ and inserting ‘‘under section 3401 of the Con9 solidated Farm and Rural Development Act or the Rural 

10 Development Insurance Fund under section 3704 of that 

11 Act’’. 

12 (kk) Section 1323(b)(2) of the Food Security Act of 

13 1985 (Public Law 99–198; 7 U.S.C. 1932 note) is amend14 ed— 

15 (1) in subparagraph (A), by inserting ‘‘and’’ at 

16 the end; 

17 (2) in subparagraph (B), by striking ‘‘; and’’ at 

18 the end and inserting a period; and 

19 (3) by striking subparagraph (C). 

20 Subtitle B—Rural Electrification 

21 SEC. 6101. DEFINITION OF RURAL AREA. 

22 Section 13(3) of the Rural Electrification Act of 1936 

23 (7 U.S.C. 913(A)) is amended by striking subparagraph 

24 (A) and inserting the following: 


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1 ‘‘(A) any area described in section 

2 3002(28)(A)(i) of the Consolidated Farm and 

3 Rural Development Act; and’’. 

4 SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED 

5 FOR ELECTRIFICATION OR TELEPHONE PUR6 POSES. 

7 Section 313A(f) of the Rural Electrification Act of 

8 1936 (7 U.S.C. 940c–1(f)) is amended by striking ‘‘2012’’ 

9 and inserting ‘‘2018’’. 

10 SEC. 6103. EXPANSION OF 911 ACCESS. 

11 Section 315(d) of the Rural Electrification Act of 

12 1936 (7 U.S.C. 940e(d)) is amended by striking ‘‘2012’’ 

13 and inserting ‘‘2018’’. 

14 SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS 

15 SERVICES IN RURAL AREAS. 

16 Section 601 of the Rural Electrification Act of 1936 

17 (7 U.S.C. 950bb) is amended— 

18 (1) in subsection (a), by striking ‘‘loans and’’ 

19 and inserting ‘‘grants, loans, and’’; 

20 (2) in subsection (b), by striking paragraph (3) 

21 and inserting the following: 

22 ‘‘(3) RURAL AREA.—The term ‘rural area’ 

23 means any area described in section 3002 of the 

24 Consolidated Farm and Rural Development Act. 


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1 ‘‘(4) ULTRA-HIGH SPEED SERVICE.—The term 

2 ‘ultra-high speed service’ means broadband service 

3 operating at a 1 gigabit per second downstream 

4 transmission capacity.’’; 

5 (3) in subsection (c)— 

6 (A) in the subsection heading, by striking 

7 ‘‘LOANS AND’’ and inserting ‘‘GRANTS, LOANS, 

8 AND’’; 

9 (B) in paragraph (1), by inserting ‘‘make 

10 grants and’’ after ‘‘Secretary shall’’; 

11 (C) by striking paragraph (2) and insert12 ing the following: 

13 ‘‘(2) PRIORITY.— 

14 ‘‘(A) IN GENERAL.—In making grants, 

15 loans, or loan guarantees under paragraph (1), 

16 the Secretary shall— 

17 ‘‘(i) establish not less than 2, and not 

18 more than 4, evaluation periods for each 

19 fiscal year to compare grant, loan, and 

20 loan guarantee applications and to 

21 prioritize grants, loans, and loan guaran22 tees to all or part of rural communities 

23 that do not have residential broadband 

24 service that meets the minimum acceptable 


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1 level of broadband service established 

2 under subsection (e); 

3 ‘‘(ii) give the highest priority to appli4 cants that offer to provide broadband serv5 ice to the greatest proportion of unserved 

6 rural households or rural households that 

7 do not have residential broadband service 

8 that meets the minimum acceptable level of 

9 broadband service established under sub10 section (e), as— 

11 ‘‘(I) certified by the affected 

12 community, city, county, or designee; 

13 or 

14 ‘‘(II) demonstrated on— 

15 ‘‘(aa) the broadband map of 

16 the affected State if the map con17 tains address-level data; or 

18 ‘‘(bb) the National Broad19 band Map if address-level data is 

20 unavailable; and 

21 ‘‘(iii) provide equal consideration to 

22 all qualified applicants, including those 

23 that have not previously received grants, 

24 loans, or loan guarantees under paragraph 

25 (1). 


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1 ‘‘(B) OTHER.—After giving priority to the 

2 applicants described in subparagraph (A), the 

3 Secretary shall then give priority to projects 

4 that serve rural communities— 

5 ‘‘(i) with a population of less than 

6 20,000 permanent residents; 

7 ‘‘(ii) experiencing outmigration; 

8 ‘‘(iii) with a high percentage of low-in9 come residents; and 

10 ‘‘(iv) that are isolated from other sig11 nificant population centers.’’; and 

12 (D) by adding at the end the following: 

13 ‘‘(3) GRANT AMOUNTS.— 

14 ‘‘(A) ELIGIBILITY.—To be eligible for a 

15 grant under this section, the project that is the 

16 subject of the grant shall be carried out in a 

17 rural area. 

18 ‘‘(B) MAXIMUM.—Except as provided in 

19 subparagraph (D), the amount of any grant 

20 made under this section shall not exceed 50 

21 percent of the development costs of the project 

22 for which the grant is provided. 

23 ‘‘(C) GRANT RATE.—The Secretary shall 

24 establish the grant rate for each project in ac25 cordance with regulations issued by the SecVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00848 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 retary that shall provide for a graduated scale 

2 of grant rates that establish higher rates for 

3 projects in communities that have— 

4 ‘‘(i) remote locations; 

5 ‘‘(ii) low community populations; 

6 ‘‘(iii) low-income levels; 

7 ‘‘(iv) developed the applications of the 

8 communities with the participation of com9 binations of stakeholders, including— 

10 ‘‘(I) State, local, and tribal gov11 ernments; 

12 ‘‘(II) nonprofit institutions; 

13 ‘‘(III) institutions of higher edu14 cation; 

15 ‘‘(IV) private entities; and 

16 ‘‘(V) philanthropic organizations; 

17 and 

18 ‘‘(v) targeted funding to provide the 

19 minimum acceptable level of broadband 

20 service established under subsection (e) in 

21 all or part of an unserved community that 

22 is below that minimum acceptable level of 

23 broadband service. 

24 ‘‘(D) SECRETARIAL AUTHORITY TO AD25 JUST.—The Secretary may make grants of up 


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1 to 75 percent of the development costs of the 

2 project for which the grant is provided to an el3 igible entity if the Secretary determines that 

4 the project serves a remote or low-income area 

5 that does not have access to broadband service 

6 from any provider of broadband service (includ7 ing the applicant).’’; 

8 (4) in subsection (d)— 

9 (A) in paragraph (1)(A)— 

10 (i) in the matter preceding clause (i), 

11 by striking ‘‘loan or’’ and inserting ‘‘grant, 

12 loan, or’’; 

13 (ii) by striking clause (i) and inserting 

14 the following: 

15 ‘‘(i) demonstrate the ability— 

16 ‘‘(I) to furnish, improve in order 

17 to meet the minimum acceptable level 

18 of broadband service established 

19 under subsection (e), or extend broad20 band service to all or part of an 

21 unserved rural area or an area below 

22 the minimum acceptable level of 

23 broadband service established under 

24 subsection (e); or 


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1 ‘‘(II) to carry out a project under 

2 paragraph (4)(B)(ii);’’; 

3 (iii) in clause (ii), by striking ‘‘a loan 

4 application’’ and inserting ‘‘an applica5 tion’’; and 

6 (iv) in clause (iii)— 

7 (I) by striking ‘‘the loan applica8 tion’’ and inserting ‘‘the application’’; 

9 and 

10 (II) by striking ‘‘proceeds from 

11 the loan made or guaranteed under 

12 this section are’’ and inserting ‘‘as13 sistance under this section is’’; 

14 (B) in paragraph (2)— 

15 (i) in subparagraph (A)— 

16 (I) in the matter preceding clause 

17 (i)— 

18 (aa) by striking ‘‘the pro19 ceeds of a loan made or guaran20 teed’’ and inserting ‘‘assistance’’; 

21 and 

22 (bb) by striking ‘‘for the 

23 loan or loan guarantee’’ and in24 serting ‘‘of the eligible entity’’; 


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1 (II) in clause (i), by striking ‘‘is 

2 offered broadband service by not more 

3 than 1 incumbent service provider’’ 

4 and inserting ‘‘are unserved or have 

5 service levels below the minimum ac6 ceptable level of broadband service es7 tablished under subsection (e)’’; and 

8 (III) in clause (ii), by striking 

9 ‘‘3’’ and inserting ‘‘2’’; 

10 (ii) by striking subparagraph (B) and 

11 inserting the following: 

12 ‘‘(B) ADJUSTMENTS.— 

13 ‘‘(i) INCREASE.—The Secretary may 

14 increase the household percentage require15 ment under subparagraph (A)(i) if— 

16 ‘‘(I) more than 25 percent of the 

17 costs of the project are funded by 

18 grants made under this section; or 

19 ‘‘(II) the proposed service terri20 tory includes 1 or more communities 

21 with a population in excess of 20,000. 

22 ‘‘(ii) REDUCTION.—The Secretary 

23 may reduce the household percentage re24 quirement under subparagraph (A)(i)— 


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1 ‘‘(I) to not less than 15 percent, 

2 if the proposed service territory does 

3 not have a population in excess of 

4 5,000 people; or 

5 ‘‘(II) to not less than 18 percent, 

6 if the proposed service territory does 

7 not have a population in excess of 

8 7,500 people.’’; and 

9 (iii) in subparagraph (C)— 

10 (I) in the subparagraph heading, 

11 by striking ‘‘3’’ and inserting ‘‘2’’; 

12 (II) in clause (i), by inserting 

13 ‘‘the minimum acceptable level of 

14 broadband service established under 

15 subsection (e) in’’ after ‘‘service to’’; 

16 and 

17 (III) by striking clause (ii) and 

18 inserting the following: 

19 ‘‘(ii) EXCEPTIONS.—Clause (i) shall 

20 not apply if— 

21 ‘‘(I) the applicant is eligible for 

22 funding under another title of this 

23 Act; or 

24 ‘‘(II) the project is being carried 

25 out under paragraph (4)(B)(ii), unless 


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1 an incumbent service provider is pro2 viding ultra-high speed service as of 

3 the date of an application for assist4 ance submitted to the Secretary under 

5 this section.’’; 

6 (C) in paragraph (3)— 

7 (i) in subparagraph (A), by striking 

8 ‘‘loan or’’ and inserting ‘‘grant, loan, or’’; 

9 and 

10 (ii) in subparagraph (B), by adding at 

11 the end the following: 

12 ‘‘(iii) INFORMATION.—Information 

13 submitted under this subparagraph shall 

14 be— 

15 ‘‘(I) certified by the affected 

16 community, city, county, or designee; 

17 and 

18 ‘‘(II) demonstrated on— 

19 ‘‘(aa) the broadband map of 

20 the affected State if the map con21 tains address-level data; or 

22 ‘‘(bb) the National 

23 Broadband Map if address-level 

24 data is unavailable.’’; 

25 (D) in paragraph (4)— 


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1 (i) by striking ‘‘Subject to paragraph 

2 (1),’’ and inserting the following: 

3 ‘‘(A) IN GENERAL.—Subject to paragraph 

4 (1) and subparagraph (B),’’; 

5 (ii) by striking ‘‘loan or’’ and insert6 ing ‘‘grant, loan, or’’; and 

7 (iii) by adding at the end the fol8 lowing: 

9 ‘‘(B) PILOT PROGRAMS.—The Secretary 

10 shall establish pilot programs under which the 

11 Secretary may, at the discretion of the Sec12 retary, provide grants, loans, or loan guarantees 

13 under this section to eligible entities, including 

14 interested entities described in subparagraph 

15 (A)— 

16 ‘‘(i) to address areas that are 

17 unserved or have service levels below the 

18 minimum acceptable level of broadband 

19 service established under subsection (e); or 

20 ‘‘(ii) for the purposes of providing a 

21 proposed service territory with ultra-high 

22 speed service, subject to the conditions 

23 that— 

24 ‘‘(I) not more than 5 projects, 

25 and not more than 1 project in any 


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1 State, shall be carried out under this 

2 clause during the period beginning on 

3 the date of enactment of this Act and 

4 ending on September 30, 2018; 

5 ‘‘(II) for each fiscal year, not 

6 more than 10 percent of the funds 

7 made available under subsection (l) 

8 shall be used to carry out this clause; 

9 ‘‘(III) for each fiscal year, not 

10 more than 20 percent of the funds 

11 made available under subclause (II) 

12 shall be used for any 1 project; and 

13 ‘‘(IV) paragraph (2)(A)(i) shall 

14 apply to the project, unless— 

15 ‘‘(aa) the Secretary deter16 mines that no other project in 

17 the State is funded under this 

18 section; and 

19 ‘‘(bb) no application for any 

20 other project that could be fund21 ed under this section, other than 

22 under this clause, is pending in 

23 the State.’’; 

24 (E) in paragraph (5)— 


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1 (i) in the matter preceding subpara2 graph (A), by striking ‘‘loan or’’ and in3 serting ‘‘grant, loan, or’’; and 

4 (ii) in subparagraph (C), by inserting 

5 ‘‘, and proportion relative to the service 

6 territory,’’ after ‘‘estimated number’’; 

7 (F) in paragraph (6), by striking ‘‘loan or’’ 

8 and inserting ‘‘grant, loan, or’’; 

9 (G) in paragraph (7), by striking ‘‘a loan 

10 application’’ and inserting ‘‘an application’’; 

11 and 

12 (H) by adding at the end the following: 

13 ‘‘(8) TRANSPARENCY AND REPORTING.—The 

14 Secretary— 

15 ‘‘(A) shall require any entity receiving as16 sistance under this section to submit quarterly, 

17 in a format specified by the Secretary, a report 

18 that describes— 

19 ‘‘(i) the use by the entity of the assist20 ance, including new equipment and capac21 ity enhancements that support high-speed 

22 broadband access for educational institu23 tions, health care providers, and public 

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1 rently using or forecasted to use the new 

2 or upgraded infrastructure); and 

3 ‘‘(ii) the progress towards fulfilling 

4 the objectives for which the assistance was 

5 granted, including— 

6 ‘‘(I) the number and location of 

7 residences and businesses that will re8 ceive new broadband service, existing 

9 network service improvements, and fa10 cility upgrades resulting from the 

11 Federal assistance; 

12 ‘‘(II) the speed of broadband 

13 service; 

14 ‘‘(III) the price of broadband 

15 service; 

16 ‘‘(IV) any changes in broadband 

17 service adoption rates, including new 

18 subscribers generated from demand19 side projects; and 

20 ‘‘(V) any other metrics the Sec21 retary determines to be appropriate; 

22 ‘‘(B) shall maintain a fully searchable 

23 database, accessible on the Internet at no cost 

24 to the public, that contains, at a minimum— 


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1 ‘‘(i) a list of each entity that has ap2 plied for assistance under this section; 

3 ‘‘(ii) a description of each application, 

4 including the status of each application; 

5 ‘‘(iii) for each entity receiving assist6 ance under this section— 

7 ‘‘(I) the name of the entity; 

8 ‘‘(II) the type of assistance being 

9 received; 

10 ‘‘(III) the purpose for which the 

11 entity is receiving the assistance; and 

12 ‘‘(IV) each quarterly report sub13 mitted under subparagraph (A); and 

14 ‘‘(iv) such other information as is suf15 ficient to allow the public to understand 

16 and monitor assistance provided under this 

17 section; 

18 ‘‘(C) shall, in addition to other authority 

19 under applicable law, establish written proce20 dures for all broadband programs administered 

21 by the Secretary that, to the maximum extent 

22 practicable— 

23 ‘‘(i) recover funds from loan defaults; 

24 ‘‘(ii)(I) deobligate awards to grantees 

25 that demonstrate an insufficient level of 


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1 performance (including failure to meet 

2 build-out requirements, service quality 

3 issues, or other metrics determined by the 

4 Secretary) or wasteful or fraudulent spend5 ing; and 

6 ‘‘(II) award those funds, on a com7 petitive basis, to new or existing applicants 

8 consistent with this section; and 

9 ‘‘(iii) consolidate and minimize overlap 

10 among the programs; 

11 ‘‘(D) with respect to an application for as12 sistance under this section, shall— 

13 ‘‘(i) promptly post on the website of 

14 the Rural Utility Service— 

15 ‘‘(I) an announcement that iden16 tifies— 

17 ‘‘(aa) each applicant; 

18 ‘‘(bb) the amount and type 

19 of support requested by each ap20 plicant; and 

21 ‘‘(II) a list of the census block 

22 groups or proposed service territory, 

23 in a manner specified by the Sec24 retary, that the applicant proposes to 

25 service; 


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1 ‘‘(ii) provide not less than 15 days for 

2 broadband service providers to voluntarily 

3 submit information about the broadband 

4 services that the providers offer in the 

5 groups or tracts listed under clause (i)(II) 

6 so that the Secretary may assess whether 

7 the applications submitted meet the eligi8 bility requirements under this section; and 

9 ‘‘(iii) if no broadband service provider 

10 submits information under clause (ii), con11 sider the number of providers in the group 

12 or tract to be established by reference to— 

13 ‘‘(I) the most current National 

14 Broadband Map of the National Tele15 communications and Information Ad16 ministration; or 

17 ‘‘(II) any other data regarding 

18 the availability of broadband service 

19 that the Secretary may collect or ob20 tain through reasonable efforts; and 

21 ‘‘(E) may establish additional reporting 

22 and information requirements for any recipient 

23 of any assistance under this section so as to en24 sure compliance with this section.’’; 

25 (5) in subsection (e)— 


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1 (A) by redesignating paragraph (2) as 

2 paragraph (3); and 

3 (B) by striking paragraph (1) and insert4 ing the following: 

5 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

6 for purposes of this section, the minimum acceptable 

7 level of broadband service for a rural area shall be 

8 at least— 

9 ‘‘(A) a 4-Mbps downstream transmission 

10 capacity; and 

11 ‘‘(B) a 1-Mbps upstream transmission ca12 pacity. 

13 ‘‘(2) ADJUSTMENTS.— 

14 ‘‘(A) IN GENERAL.—At least once every 2 

15 years, the Secretary shall review, and may ad16 just, the minimum acceptable level of broad17 band service established under paragraph (1) to 

18 ensure that high-quality, cost-effective broad19 band service is provided to rural areas over 

20 time. 

21 ‘‘(B) CONSIDERATIONS.—In making an 

22 adjustment to the minimum acceptable level of 

23 broadband service under subparagraph (A), the 

24 Secretary may consider establishing different 


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1 transmission rates for fixed broadband service 

2 and mobile broadband service.’’; 

3 (6) in subsection (f), by striking ‘‘make a loan 

4 or loan guarantee’’ and inserting ‘‘provide assist5 ance’’; 

6 (7) in subsection (g), by striking paragraph (2) 

7 and inserting the following: 

8 ‘‘(2) TERMS.—In determining the term and 

9 conditions of a loan or loan guarantee, the Secretary 

10 may— 

11 ‘‘(A) consider whether the recipient would 

12 be serving an area that is unserved; and 

13 ‘‘(B) if the Secretary makes a determina14 tion in the affirmative under subparagraph (A), 

15 establish a limited initial deferral period or 

16 comparable terms necessary to achieve the fi17 nancial feasibility and long-term sustainability 

18 of the project.’’; 

19 (8) in subsection (j)— 

20 (A) in the matter preceding paragraph (1), 

21 by striking ‘‘loan and loan guarantee’’; 

22 (B) in paragraph (1)— 

23 (i) by inserting ‘‘grants and’’ after 

24 ‘‘number of’’; and 


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1 (ii) by inserting ‘‘, including any loan 

2 terms or conditions for which the Secretary 

3 provided additional assistance to unserved 

4 areas’’ before the semicolon at the end; 

5 (C) in paragraph (2)— 

6 (i) in subparagraph (A), by striking 

7 ‘‘loan’’; and 

8 (ii) in subparagraph (B), by striking 

9 ‘‘loans and’’ and inserting ‘‘grants, loans, 

10 and’’; 

11 (D) in paragraph (3), by striking ‘‘loan’’; 

12 (E) in paragraph (5), by striking ‘‘and’’ at 

13 the end; 

14 (F) in paragraph (6), by striking the pe15 riod at the end and inserting ‘‘; and’’; and 

16 (G) by adding at the end the following: 

17 ‘‘(7) the overall progress towards fulfilling the 

18 goal of improving the quality of rural life by expand19 ing rural broadband access, as demonstrated by 

20 metrics, including— 

21 ‘‘(A) the number of residences and busi22 nesses receiving new broadband services; 

23 ‘‘(B) network improvements, including fa24 cility upgrades and equipment purchases; 


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1 ‘‘(C) average broadband speeds and prices 

2 on a local and statewide basis; 

3 ‘‘(D) any changes in broadband adoption 

4 rates; and 

5 ‘‘(E) any specific activities that increased 

6 high speed broadband access for educational in7 stitutions, health care providers. and public 

8 safety service providers.’’; and 

9 (9) by redesignating subsections (k) and (l) as 

10 subsections (l) and (m), respectively; 

11 (10) by inserting after subsection (j) the fol12 lowing: 

13 ‘‘(k) BROADBAND BUILDOUT DATA.— 

14 ‘‘(1) IN GENERAL.—As a condition of receiving 

15 a grant, loan, or loan guarantee under this section, 

16 a recipient of assistance shall provide to the Sec17 retary address-level broadband buildout data that in18 dicates the location of new broadband service that is 

19 being provided or upgraded within the service terri20 tory supported by the grant, loan, or loan guar21 antee— 

22 ‘‘(A) for purposes of inclusion in the semi23 annual updates to the National Broadband Map 

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1 ferred to in this subsection as the ‘Administra2 tion’); and 

3 ‘‘(B) not later than 30 days after the ear4 lier of— 

5 ‘‘(i) the date of completion of any 

6 project milestone established by the Sec7 retary; or 

8 ‘‘(ii) the date of completion of the 

9 project. 

10 ‘‘(2) ADDRESS-LEVEL DATA.—Effective begin11 ning on the date the Administration receives data 

12 described in paragraph (1), the Administration shall 

13 use only address-level broadband buildout data for 

14 the National Broadband Map. 

15 ‘‘(3) CORRECTIONS.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 submit to the Administration any correction to 

18 the National Broadband Map that is based on 

19 the actual level of broadband coverage within 

20 the rural area, including any requests for a cor21 rection from an elected or economic develop22 ment official. 

23 ‘‘(B) INCORPORATION.—Not later than 30 

24 days after the date on which the Administration 

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1 graph (A), the Administration shall incorporate 

2 the correction into the National Broadband 

3 Map. 

4 ‘‘(C) USE.—If the Secretary has submitted 

5 a correction to the Administration under sub6 paragraph (A), but the National Broadband 

7 Map has not been updated to reflect the correct 

8 by the date on which the Secretary is making 

9 a grant or loan award decision under this sec10 tion, the Secretary may use the correction sub11 mitted under that subparagraph for purposes of 

12 make the grant or loan award decision.’’; 

13 (11) subsection (l) (as redesignated by para14 graph (9))— 

15 (A) in paragraph (1)— 

16 (i) by striking ‘‘$25,000,000’’ and in17 serting ‘‘$50,000,000’’; and 

18 (ii) by striking ‘‘2012’’ and inserting 

19 ‘‘2018’’; and 

20 (B) in paragraph (2)(A)— 

21 (i) in clause (i), by striking ‘‘and’’ at 

22 the end; 

23 (ii) in clause (ii), by striking the pe24 riod at the end and inserting ‘‘; and’’; and 


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1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(iii) set aside at least 1 percent to be 

4 used for— 

5 ‘‘(I) conducting oversight under 

6 this section; and 

7 ‘‘(II) implementing accountability 

8 measures and related activities au9 thorized under this section.’’; and 

10 (12) in subsection (m) (as redesignated by 

11 paragraph (9))— 

12 (A) by striking ‘‘loan or’’ and inserting 

13 ‘‘grant, loan, or’’; and 

14 (B) by striking ‘‘2012’’ and inserting 

15 ‘‘2018’’. 

16 Subtitle C—Miscellaneous 

17 SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

19 2335A of the Food, Agriculture, Conservation, and Trade 

20 Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 

21 ‘‘2012’’ and inserting ‘‘2018’’. 

22 (b) CONFORMING AMENDMENT.—Section 1(b) of 

23 Public Law 102–551 (7 U.S.C. 950aaa note) is amended 

24 by striking ‘‘2012’’ and inserting ‘‘2018’’. 


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1 SEC. 6202. DEFINITION OF RURAL AREA FOR PURPOSES OF 

2 THE HOUSING ACT OF 1949. 

3 The second sentence of section 520 of the Housing 

4 Act of 1949 (42 U.S.C. 1490) is amended— 

5 (1) by striking ‘‘1990 or 2000 decennial census 

6 shall continue to be so classified until the receipt of 

7 data from the decennial census in the year 2010’’ 

8 and inserting ‘‘1990, 2000, or 2010 decennial cen9 sus, and any area deemed to be a ‘rural area’ for 

10 purposes of this title under any other provision of 

11 law at any time during the period beginning Janu12 ary 1, 2000, and ending December 31, 2010, shall 

13 continue to be so classified until the receipt of data 

14 from the decennial census in the year 2020’’; and 

15 (2) by striking ‘‘25,000’’ and inserting 

16 ‘‘35,000’’. 

17 SEC. 6203. RURAL ENERGY SAVINGS PROGRAM. 

18 Subtitle E of title VI of the Farm Security and Rural 

19 Investment Act of 2002 (Public Law 107–171; 116 Stat. 

20 424) is amended by adding at the end the following: 

21 ‘‘SEC. 6407. RURAL ENERGY SAVINGS PROGRAM. 

22 ‘‘(a) PURPOSE.—The purpose of this section is to cre23 ate jobs, promote rural development, and help rural fami24 lies and small businesses achieve cost savings by providing 

25 loans to qualified consumers to implement durable cost26 effective energy efficiency measures. 


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1 ‘‘(b) DEFINITIONS.—In this section: 

2 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en3 tity’ means— 

4 ‘‘(A) any public power district, public util5 ity district, or similar entity, or any electric co6 operative described in section 501(c)(12) or 

7 1381(a)(2) of the Internal Revenue Code of 

8 1986, that borrowed and repaid, prepaid, or is 

9 paying an electric loan made or guaranteed by 

10 the Rural Utilities Service (or any predecessor 

11 agency); 

12 ‘‘(B) any entity primarily owned or con13 trolled by 1 or more entities described in sub14 paragraph (A); or 

15 ‘‘(C) any other entity that is an eligible 

16 borrower of the Rural Utility Service, as deter17 mined under section 1710.101 of title 7, Code 

18 of Federal Regulations (or a successor regula19 tion). 

20 ‘‘(2) ENERGY EFFICIENCY MEASURES.—The 

21 term ‘energy efficiency measures’ means, for or at 

22 property served by an eligible entity, structural im23 provements and investments in cost-effective, com24 mercial technologies to increase energy efficiency. 


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1 ‘‘(3) QUALIFIED CONSUMER.—The term ‘quali2 fied consumer’ means a consumer served by an eligi3 ble entity that has the ability to repay a loan made 

4 under subsection (d), as determined by the eligible 

5 entity. 

6 ‘‘(4) SECRETARY.—The term ‘Secretary’ means 

7 the Secretary of Agriculture, acting through the Ad8 ministrator of the Rural Utilities Service. 

9 ‘‘(c) LOANS TO ELIGIBLE ENTITIES.— 

10 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

11 the Secretary shall make loans to eligible entities 

12 that agree to use the loan funds to make loans to 

13 qualified consumers for the purpose of implementing 

14 energy efficiency measures. 

15 ‘‘(2) REQUIREMENTS.— 

16 ‘‘(A) IN GENERAL.—As a condition of re17 ceiving a loan under this subsection, an eligible 

18 entity shall— 

19 ‘‘(i) establish a list of energy effi20 ciency measures that is expected to de21 crease energy use or costs of qualified con22 sumers; 

23 ‘‘(ii) prepare an implementation plan 

24 for use of the loan funds, including use of 


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1 any interest to be received pursuant to 

2 subsection (d)(1)(A); 

3 ‘‘(iii) provide for appropriate measure4 ment and verification to ensure— 

5 ‘‘(I) the effectiveness of the en6 ergy efficiency loans made by the eli7 gible entity; and 

8 ‘‘(II) that there is no conflict of 

9 interest in carrying out this section; 

10 and 

11 ‘‘(iv) demonstrate expertise in effec12 tive use of energy efficiency measures at 

13 an appropriate scale. 

14 ‘‘(B) REVISION OF LIST OF ENERGY EFFI15 CIENCY MEASURES.—Subject to the approval of 

16 the Secretary, an eligible entity may update the 

17 list required under subparagraph (A)(i) to ac18 count for newly available efficiency technologies. 

19 ‘‘(C) EXISTING ENERGY EFFICIENCY PRO20 GRAMS.—An eligible entity that, at any time be21 fore the date that is 60 days after the date of 

22 enactment of this section, has established an 

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1 urement and verification system of that pro2 gram to satisfy the requirements of subpara3 graph (A) if the Secretary determines the list, 

4 plan, or systems are consistent with the pur5 poses of this section. 

6 ‘‘(3) NO INTEREST.—A loan under this sub7 section shall bear no interest. 

8 ‘‘(4) REPAYMENT.—With respect to a loan 

9 under paragraph (1)— 

10 ‘‘(A) the term shall not exceed 20 years 

11 from the date on which the loan is closed; and 

12 ‘‘(B) except as provided in paragraph (6), 

13 the repayment of each advance shall be amor14 tized for a period not to exceed 10 years. 

15 ‘‘(5) AMOUNT OF ADVANCES.—Any advance of 

16 loan funds to an eligible entity in any single year 

17 shall not exceed 50 percent of the approved loan 

18 amount. 

19 ‘‘(6) SPECIAL ADVANCE FOR START-UP ACTIVI20 TIES.— 

21 ‘‘(A) IN GENERAL.—In order to assist an 

22 eligible entity in defraying the appropriate 

23 start-up costs (as determined by the Secretary) 

24 of establishing new programs or modifying ex25 isting programs to carry out subsection (d), the 


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1 Secretary shall allow an eligible entity to re2 quest a special advance. 

3 ‘‘(B) AMOUNT.—No eligible entity may re4 ceive a special advance under this paragraph 

5 for an amount that is greater than 4 percent of 

6 the loan amount received by the eligible entity 

7 under paragraph (1). 

8 ‘‘(C) REPAYMENT.—Repayment of the spe9 cial advance— 

10 ‘‘(i) shall be required during the 10- 

11 year period beginning on the date on which 

12 the special advance is made; and 

13 ‘‘(ii) at the election of the eligible en14 tity, may be deferred to the end of the 10- 

15 year period. 

16 ‘‘(7) LIMITATION.—All special advances shall be 

17 made under a loan described in paragraph (1) dur18 ing the first 10 years of the term of the loan. 

19 ‘‘(d) LOANS TO QUALIFIED CONSUMERS.— 

20 ‘‘(1) TERMS OF LOANS.—Loans made by an eli21 gible entity to qualified consumers using loan funds 

22 provided by the Secretary under subsection (c)— 

23 ‘‘(A) may bear interest, not to exceed 3 

24 percent, to be used for purposes that include— 


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1 ‘‘(i) to establish a loan loss reserve; 

2 and 

3 ‘‘(ii) to offset personnel and program 

4 costs of eligible entities to provide the 

5 loans; 

6 ‘‘(B) shall finance energy efficiency meas7 ures for the purpose of decreasing energy usage 

8 or costs of the qualified consumer by an 

9 amount that ensures, to the maximum extent 

10 practicable, that a loan term of not more than 

11 10 years will not pose an undue financial bur12 den on the qualified consumer, as determined 

13 by the eligible entity; 

14 ‘‘(C) shall not be used to fund purchases 

15 of, or modifications to, personal property unless 

16 the personal property is or becomes attached to 

17 real property (including a manufactured home) 

18 as a fixture; 

19 ‘‘(D) shall be repaid through charges 

20 added to the electric bill for the property for, or 

21 at which, energy efficiency measures are or will 

22 be implemented, on the condition that this re23 quirement does not prohibit— 

24 ‘‘(i) the voluntary prepayment of a 

25 loan by the owner of the property; or 


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1 ‘‘(ii) the use of any additional repay2 ment mechanisms that are— 

3 ‘‘(I) demonstrated to have appro4 priate risk mitigation features, as de5 termined by the eligible entity; or 

6 ‘‘(II) required if the qualified 

7 consumer is no longer a customer of 

8 the eligible entity; and 

9 ‘‘(E) shall require an energy audit by an 

10 eligible entity to determine the impact of pro11 posed energy efficiency measures on the energy 

12 costs and consumption of the qualified con13 sumer. 

14 ‘‘(2) CONTRACTORS.—In addition to any other 

15 qualified general contractor, eligible entities may 

16 serve as general contractors. 

17 ‘‘(e) CONTRACT FOR MEASUREMENT AND

18 VERIFICATION, TRAINING, AND TECHNICAL ASSIST19 ANCE.— 

20 ‘‘(1) IN GENERAL.—Not later than 90 days 

21 after the date of enactment of this section, the Sec22 retary— 

23 ‘‘(A) shall establish a plan for measure24 ment and verification, training, and technical 

25 assistance of the program; and 


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1 ‘‘(B) may enter into 1 or more contracts 

2 with a qualified entity for the purposes of— 

3 ‘‘(i) providing measurement and 

4 verification activities; and 

5 ‘‘(ii) developing a program to provide 

6 technical assistance and training to the 

7 employees of eligible entities to carry out 

8 this section. 

9 ‘‘(2) USE OF SUBCONTRACTORS AUTHOR10 IZED.—A qualified entity that enters into a contract 

11 under paragraph (1) may use subcontractors to as12 sist the qualified entity in carrying out the contract. 

13 ‘‘(f) FAST START DEMONSTRATION PROJECTS.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall offer to 

15 enter into agreements with eligible entities (or 

16 groups of eligible entities) that have energy effi17 ciency programs described in subsection (c)(2)(C) to 

18 establish an energy efficiency loan demonstration 

19 projects consistent with the purposes of this section. 

20 ‘‘(2) EVALUATION CRITERIA.—In determining 

21 which eligible entities to award loans under this sec22 tion, the Secretary shall take into consideration eligi23 ble entities that— 

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1 ures that yield measurable and predictable sav2 ings; 

3 ‘‘(B) use measurement and verification 

4 processes to determine the effectiveness of en5 ergy efficiency loans made by eligible entities; 

6 ‘‘(C) include training for employees of eli7 gible entities, including any contractors of such 

8 entities, to implement or oversee the activities 

9 described in subparagraphs (A) and (B); 

10 ‘‘(D) provide for the participation of a ma11 jority of eligible entities in a State; 

12 ‘‘(E) reduce the need for generating capac13 ity; 

14 ‘‘(F) provide efficiency loans to— 

15 ‘‘(i) in the case of a single eligible en16 tity, not fewer than 20,000 consumers; or 

17 ‘‘(ii) in the case of a group of eligible 

18 entities, not fewer than 80,000 consumers; 

19 and 

20 ‘‘(G) serve areas in which, as determined 

21 by the Secretary, a large percentage of con22 sumers reside— 

23 ‘‘(i) in manufactured homes; or 

24 ‘‘(ii) in housing units that are more 

25 than 50 years old. 


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1 ‘‘(3) DEADLINE FOR IMPLEMENTATION.—To 

2 the maximum extent practicable, the Secretary shall 

3 enter into agreements described in paragraph (1) by 

4 not later than 90 days after the date of enactment 

5 of this section. 

6 ‘‘(4) EFFECT ON AVAILABILITY OF LOANS NA7 TIONALLY.—Nothing in this subsection shall delay 

8 the availability of loans to eligible entities on a na9 tional basis beginning not later than 180 days after 

10 the date of enactment of this section. 

11 ‘‘(5) ADDITIONAL DEMONSTRATION PROJECT

12 AUTHORITY.— 

13 ‘‘(A) IN GENERAL.—The Secretary may 

14 conduct demonstration projects in addition to 

15 the project required by paragraph (1). 

16 ‘‘(B) INAPPLICABILITY OF CERTAIN CRI17 TERIA.—The additional demonstration projects 

18 may be carried out without regard to subpara19 graphs (D), (F), or (G) of paragraph (2). 

20 ‘‘(g) ADDITIONAL AUTHORITY.—The authority pro21 vided in this section is in addition to any other authority 

22 of the Secretary to offer loans under any other law. 

23 ‘‘(h) EFFECTIVE PERIOD.—Subject to the availability 

24 of funds and except as otherwise provided in this section, 

25 the loans and other expenditures required to be made 


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1 under this section shall be available until expended, with 

2 the Secretary authorized to make new loans as loans are 

3 repaid. 

4 ‘‘(i) REGULATIONS.— 

5 ‘‘(1) IN GENERAL.—Except as otherwise pro6 vided in this subsection, not later than 180 days 

7 after the date of enactment of this section, the Sec8 retary shall promulgate such regulations as are nec9 essary to implement this section. 

10 ‘‘(2) PROCEDURE.—The promulgation of the 

11 regulations and administration of this section shall 

12 be made without regard to— 

13 ‘‘(A) the Statement of Policy of the Sec14 retary of Agriculture effective July 24, 1971 

15 (36 Fed. Reg. 13804), relating to notices of 

16 proposed rulemaking and public participation in 

17 rulemaking; and 

18 ‘‘(B) chapter 35 of title 44, United States 

19 Code (commonly known as the ‘Paperwork Re20 duction Act’). 

21 ‘‘(3) CONGRESSIONAL REVIEW OF AGENCY

22 RULEMAKING.—In carrying out this section, the Sec23 retary shall use the authority provided under section 

24 808 of title 5, United States Code. 


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1 ‘‘(4) INTERIM REGULATIONS.—Notwithstanding 

2 paragraphs (1) and (2), to the extent regulations are 

3 necessary to carry out any provision of this section, 

4 the Secretary shall implement such regulations 

5 through the promulgation of an interim rule.’’. 

6 SEC. 6204. FUNDING OF PENDING RURAL DEVELOPMENT 

7 LOAN AND GRANT APPLICATIONS. 

8 (a) IN GENERAL.—The Secretary shall use funds 

9 made available under subsection (b) to provide funds for 

10 applications that are pending on the date of enactment 

11 of this Act in accordance with the terms and conditions 

12 of section 6029 of the Food, Conservation, and Energy 

13 Act of 2008 (Public Law 110–246; 122 Stat. 1955). 

14 (b) FUNDING.—Notwithstanding any other provision 

15 of law, beginning in fiscal year 2014, of the funds of the 

16 Commodity Credit Corporation, the Secretary shall use to 

17 carry out this section $150,000,000, to remain available 

18 until expended. 

19 SEC. 6205. STUDY OF RURAL TRANSPORTATION ISSUES. 

20 (a) IN GENERAL.—The Secretary and the Secretary 

21 of Transportation shall jointly conduct a study of trans22 portation issues regarding the movement of agricultural 

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1 tricity for rural areas of the United States, and economic 

2 development in those areas. 

3 (b) INCLUSIONS.—The study shall include an exam4 ination of— 

5 (1) the importance of freight transportation, in6 cluding rail, truck, and barge, to— 

7 (A) the delivery of equipment, seed, fer8 tilizer, and other products important to the de9 velopment of agricultural commodities and 

10 products; 

11 (B) the movement of agricultural commod12 ities and products to market; 

13 (C) the delivery of ethanol and other re14 newable fuels; 

15 (D) the delivery of domestically produced 

16 resources for use in the generation of electricity 

17 for rural areas; 

18 (E) the location of grain elevators, ethanol 

19 plants, and other facilities; 

20 (F) the development of manufacturing fa21 cilities in rural areas; and 

22 (G) the vitality and economic development 

23 of rural communities; 

24 (2) the sufficiency in rural areas of transpor25 tation capacity, the sufficiency of competition in the 


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1 transportation system, the reliability of transpor2 tation services, and the reasonableness of transpor3 tation rates; 

4 (3) the sufficiency of facility investment in rural 

5 areas necessary for efficient and cost-effective trans6 portation; and 

7 (4) the accessibility to shippers in rural areas 

8 of Federal processes for the resolution of grievances 

9 arising within various transportation modes. 

10 (c) REPORT TO CONGRESS.—Not later than 1 year 

11 after the date of enactment of this Act, the Secretary and 

12 the Secretary of Transportation shall submit a report to 

13 Congress that contains the results of the study required 

14 under subsection (a). 

15 (d) PERIODIC UPDATES.—The Secretary and the 

16 Secretary of Transportation shall publish triennially an 

17 updated version of the study described in subsection (a). 

18 SEC. 6206. AGRICULTURAL TRANSPORTATION POLICY. 

19 Section 203 of the Agricultural Marketing Act of 

20 1946 (7 U.S.C. 1622) is amended by striking subsection 

21 (j) and inserting the following: 

22 ‘‘(j) POLICY DEVELOPMENT PROCEEDINGS.—The 

23 Secretary shall participate on behalf of the interests of ag24 riculture and rural America in all policy development pro25 ceedings or other proceedings of the Surface TransporVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00883 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 tation Board that may establish freight rail transportation 

2 policy affecting agriculture and rural America.’’. 

3 SEC. 6207. VALUE-ADDED AGRICULTURAL MARKET DEVEL4 OPMENT PROGRAM GRANTS. 

5 Section 231(b) of the Agricultural Risk Protection 

6 Act of 2000 (7 U.S.C. 1632a(b)) is amended— 

7 (1) in paragraph (6)— 

8 (A) in subparagraph (B), by striking 

9 ‘‘and’’ at the end; 

10 (B) in subparagraph (C), by striking the 

11 period at the end and inserting ‘‘; and’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(D) veteran farmers or ranchers (as de14 fined in section 2501(e) of the Food, Agri15 culture, Conservation, and Trade Act of 1990 

16 (7 U.S.C. 2279(e))).’’; and 

17 (2) in paragraph (7)(B), by striking ‘‘2012’’ 

18 and inserting ‘‘2017’’. 


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1 TITLE VII—RESEARCH, EXTEN2 SION, AND RELATED MAT3 TERS 

4 Subtitle A—National Agricultural 

5 Research, Extension, and Teach6 ing Policy Act of 1977 

7 SEC. 7101. NATIONAL AGRICULTURAL RESEARCH, EXTEN8 SION, EDUCATION, AND ECONOMICS ADVI9 SORY BOARD. 

10 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

11 1408(h) of the National Agricultural Research, Extension, 

12 and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is 

13 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

14 (b) DUTIES OF NATIONAL AGRICULTURAL RE15 SEARCH, EXTENSION, EDUCATION, AND ECONOMICS AD16 VISORY BOARD.—Section 1408(c) of the National Agricul17 tural Research, Extension, and Teaching Policy Act of 

18 1977 (7 U.S.C. 3123(c)) is amended— 

19 (1) in paragraph (3), by striking ‘‘and’’ at the 

20 end; 

21 (2) in paragraph (4)(C), by striking the period 

22 at the end and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(5) consult with industry groups on agricul25 tural research, extension, education, and economics, 


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1 and make recommendations to the Secretary based 

2 on that consultation.’’. 

3 SEC. 7102. SPECIALTY CROP COMMITTEE. 

4 Section 1408A of the National Agricultural Research, 

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

6 3123a) is amended— 

7 (1) in subsection (b)— 

8 (A) by striking ‘‘Individuals’’ and inserting 

9 the following: 

10 ‘‘(1) ELIGIBILITY.—Individuals’’; 

11 (B) by striking ‘‘Members’’ and inserting 

12 the following: 

13 ‘‘(2) SERVICE.—Members’’; and 

14 (C) by adding at the end the following: 

15 ‘‘(3) DIVERSITY.—Membership of the specialty 

16 crops committee shall reflect diversity in the spe17 cialty crops represented.’’; 

18 (2) in subsection (c), by adding at the end the 

19 following: 

20 ‘‘(6) Analysis of alignment of specialty crop 

21 committee recommendations with specialty crop re22 search initiative grants awarded under section 

23 412(d) of the Agricultural Research, Extension, and 

24 Education Reform Act of 1998 (7 U.S.C. 7632).’’; 


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1 (3) by redesignating subsections (d) and (e) as 

2 subsections (e) and (f), respectively; 

3 (4) by inserting after subsection (c) the fol4 lowing: 

5 ‘‘(d) CONSULTATION WITH SPECIALTY CROP INDUS6 TRY.—In studying the scope and effectiveness of programs 

7 under subsection (a), the specialty crops committee shall 

8 consult on an ongoing basis with diverse sectors of the 

9 specialty crop industry.’’; and 

10 (5) in subsection (f) (as redesignated by para11 graph (3)), by striking ‘‘subsection (d)’’ and insert12 ing ‘‘subsection (e)’’. 

13 SEC. 7103. VETERINARY SERVICES GRANT PROGRAM. 

14 The National Agricultural Research, Extension, and 

15 Teaching Policy Act of 1977 is amended by inserting after 

16 section 1415A (7 U.S.C. 3151a) the following: 

17 ‘‘SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM. 

18 ‘‘(a) DEFINITIONS.—In this section: 

19 ‘‘(1) QUALIFIED ENTITY.—The term ‘qualified 

20 entity’ means— 

21 ‘‘(A) a for-profit or nonprofit entity located 

22 in the United States that operates a veterinary 

23 clinic providing veterinary services— 

24 ‘‘(i) in a rural area, as defined in sec25 tion 343(a) of the Consolidated Farm and 


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1 Rural Development Act (7 U.S.C. 

2 1991(a)); and 

3 ‘‘(ii) in response to a veterinarian 

4 shortage situation; 

5 ‘‘(B) a State, national, allied, or regional 

6 veterinary organization or specialty board rec7 ognized by the American Veterinary Medical 

8 Association; 

9 ‘‘(C) a college or school of veterinary medi10 cine accredited by the American Veterinary 

11 Medical Association; 

12 ‘‘(D) a university research foundation or 

13 veterinary medical foundation; 

14 ‘‘(E) a department of veterinary science or 

15 department of comparative medicine accredited 

16 by the Department of Education; 

17 ‘‘(F) a State agricultural experiment sta18 tion; and 

19 ‘‘(G) a State, local, or tribal government 

20 agency. 

21 ‘‘(2) VETERINARIAN SHORTAGE SITUATION.— 

22 The term ‘veterinarian shortage situation’ means a 

23 veterinarian shortage situation determined by the 

24 Secretary under section 1415A(b). 

25 ‘‘(b) ESTABLISHMENT OF PROGRAM.— 


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1 ‘‘(1) COMPETITIVE GRANTS.—The Secretary 

2 shall carry out a program to make competitive 

3 grants to qualified entities that carry out programs 

4 or activities described in paragraph (2) for the pur5 pose of developing, implementing, and sustaining 

6 veterinary services. 

7 ‘‘(2) ELIGIBILITY REQUIREMENTS.—To be eligi8 ble to receive a grant described in paragraph (1), a 

9 qualified entity shall carry out programs or activities 

10 that the Secretary determines will— 

11 ‘‘(A) substantially relieve veterinarian 

12 shortage situations; 

13 ‘‘(B) support or facilitate private veteri14 nary practices engaged in public health activi15 ties; or 

16 ‘‘(C) support or facilitate the practices of 

17 veterinarians who are participating in or have 

18 successfully completed a service requirement 

19 under section 1415A(a)(2). 

20 ‘‘(c) AWARD PROCESSES AND PREFERENCES.— 

21 ‘‘(1) APPLICATION, EVALUATION, AND INPUT

22 PROCESSES.—In administering the grant program 

23 under this section, the Secretary shall— 


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1 ‘‘(A) use an appropriate application and 

2 evaluation process, as determined by the Sec3 retary; and 

4 ‘‘(B) seek the input of interested persons. 

5 ‘‘(2) GRANT PREFERENCES.—In selecting re6 cipients of grants to be used for any of the purposes 

7 described in paragraphs (2) through (6) of sub8 section (d), the Secretary shall give a preference to 

9 qualified entities that provide documentation of co10 ordination with other qualified entities, with respect 

11 to any such purpose. 

12 ‘‘(3) ADDITIONAL PREFERENCES.—In awarding 

13 grants under this section, the Secretary may develop 

14 additional preferences by taking into account the 

15 amount of funds available for grants and the pur16 poses for which the grant funds will be used. 

17 ‘‘(4) APPLICABILITY OF OTHER PROVISIONS.— 

18 Sections 1413B, 1462(a), 1469(a)(3), 1469(c), and 

19 1470 apply to the administration of the grant pro20 gram under this section. 

21 ‘‘(d) USE OF GRANTS TO RELIEVE VETERINARIAN

22 SHORTAGE SITUATIONS AND SUPPORT VETERINARY

23 SERVICES.—A qualified entity may use funds provided by 

24 grants under this section to relieve veterinarian shortage 


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1 situations and support veterinary services for the following 

2 purposes: 

3 ‘‘(1) To assist veterinarians with establishing or 

4 expanding practices for the purpose of— 

5 ‘‘(A) equipping veterinary offices; 

6 ‘‘(B) sharing in the reasonable overhead 

7 costs of the practices, as determined by the Sec8 retary; or 

9 ‘‘(C) establishing mobile veterinary facili10 ties in which a portion of the facilities will ad11 dress education or extension needs. 

12 ‘‘(2) To promote recruitment (including for pro13 grams in secondary schools), placement, and reten14 tion of veterinarians, veterinary technicians, stu15 dents of veterinary medicine, and students of veteri16 nary technology. 

17 ‘‘(3) To allow veterinary students, veterinary in18 terns, externs, fellows, and residents, and veterinary 

19 technician students to cover expenses (other than 

20 the types of expenses described in 1415A(c)(5)) to 

21 attend training programs in food safety or food ani22 mal medicine. 

23 ‘‘(4) To establish or expand accredited veteri24 nary education programs (including faculty recruit25 ment and retention), veterinary residency and fellowVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00891 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 ship programs, or veterinary internship and 

2 externship programs carried out in coordination with 

3 accredited colleges of veterinary medicine. 

4 ‘‘(5) To assess veterinarian shortage situations 

5 and the preparation of applications submitted to the 

6 Secretary for designation as a veterinarian shortage 

7 situation under section 1415A(b). 

8 ‘‘(6) To provide continuing education and ex9 tension, including veterinary telemedicine and other 

10 distance-based education, for veterinarians, veteri11 nary technicians, and other health professionals 

12 needed to strengthen veterinary programs and en13 hance food safety. 

14 ‘‘(e) SPECIAL REQUIREMENTS FOR CERTAIN

15 GRANTS.— 

16 ‘‘(1) TERMS OF SERVICE REQUIREMENTS.— 

17 ‘‘(A) IN GENERAL.—Grants provided 

18 under this section for the purpose specified in 

19 subsection (d)(1) shall be subject to an agree20 ment between the Secretary and the grant re21 cipient that includes a required term of service 

22 for the recipient, as established by the Sec23 retary. 


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1 ‘‘(B) CONSIDERATIONS.—In establishing a 

2 term of service under subparagraph (A), the 

3 Secretary shall consider only— 

4 ‘‘(i) the amount of the grant awarded; 

5 and 

6 ‘‘(ii) the specific purpose of the grant. 

7 ‘‘(2) BREACH REMEDIES.— 

8 ‘‘(A) IN GENERAL.—An agreement under 

9 paragraph (1) shall provide remedies for any 

10 breach of the agreement by the grant recipient, 

11 including repayment or partial repayment of the 

12 grant funds, with interest. 

13 ‘‘(B) WAIVER.—The Secretary may grant 

14 a waiver of the repayment obligation for breach 

15 of contract if the Secretary determines that the 

16 grant recipient demonstrates extreme hardship 

17 or extreme need. 

18 ‘‘(C) TREATMENT OF AMOUNTS RECOV19 ERED.—Funds recovered under this paragraph 

20 shall— 

21 ‘‘(i) be credited to the account avail22 able to carry out this section; and 

23 ‘‘(ii) remain available until expended. 

24 ‘‘(f) COST-SHARING REQUIREMENTS.— 


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1 ‘‘(1) RECIPIENT SHARE.—Subject to paragraph 

2 (2), to be eligible to receive a grant under this sec3 tion, a qualified entity shall provide matching non4 Federal funds, either in cash or in-kind support, in 

5 an amount equal to not less than 25 percent of the 

6 Federal funds provided by the grant. 

7 ‘‘(2) WAIVER.—The Secretary may establish, by 

8 regulation, conditions under which the cost-sharing 

9 requirements of paragraph (1) may be reduced or 

10 waived. 

11 ‘‘(g) PROHIBITION ON USE OF GRANT FUNDS FOR

12 CONSTRUCTION.—Funds made available for grants under 

13 this section may not be used— 

14 ‘‘(1) to construct a new building or facility; or 

15 ‘‘(2) to acquire, expand, remodel, or alter an ex16 isting building or facility, including site grading and 

17 improvement and architect fees. 

18 ‘‘(h) REGULATIONS.—Not later than 1 year after the 

19 date of enactment of this section, the Secretary shall pro20 mulgate regulations to carry out this section. 

21 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to the Secretary to carry 

23 out this section $10,000,000 for fiscal year 2014 and each 

24 fiscal year thereafter, to remain available until ex25 pended.’’. 


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1 SEC. 7104. GRANTS AND FELLOWSHIPS FOR FOOD AND AG2 RICULTURE SCIENCES EDUCATION. 

3 Section 1417(m) of the National Agricultural Re4 search, Extension, and Teaching Policy Act of 1977 (7 

5 U.S.C. 3152(m)) is amended by striking ‘‘section 

6 $60,000,000’’ and all that follows and inserting the fol7 lowing: ‘‘section— 

8 ‘‘(1) $60,000,000 for each of fiscal years 1990 

9 through 2013; and 

10 ‘‘(2) $40,000,000 for each of fiscal years 2014 

11 through 2018.’’. 

12 SEC. 7105. AGRICULTURAL AND FOOD POLICY RESEARCH 

13 CENTERS. 

14 Section 1419A of the National Agricultural Research, 

15 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

16 3155) is amended— 

17 (1) in the section heading, by inserting ‘‘AGRI18 CULTURAL AND FOOD’’ before ‘‘POLICY’’; 

19 (2) in subsection (a), in the matter preceding 

20 paragraph (1)— 

21 (A) by striking ‘‘Secretary may’’ and in22 serting ‘‘Secretary shall, acting through the Of23 fice of the Chief Economist,’’; and 

24 (B) by inserting ‘‘with a history of pro25 viding unbiased, nonpartisan economic analysis 

26 to Congress’’ after ‘‘subsection (b)’’; 


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1 (3) in subsection (b), by striking ‘‘other re2 search institutions’’ and all that follows through 

3 ‘‘shall be eligible’’ and inserting ‘‘other public re4 search institutions and organizations shall be eligi5 ble’’; 

6 (4) in subsection (c)— 

7 (A) in the matter preceding paragraph (1), 

8 by inserting ‘‘, with preference given to policy 

9 research centers having extensive databases, 

10 models, and demonstrated experience in pro11 viding Congress with agricultural market pro12 jections, rural development analysis, agricul13 tural policy analysis, and baseline projections at 

14 the farm, multiregional, national, and inter15 national levels, including information, analysis, 

16 and research relating to drought mitigation,’’ 

17 after ‘‘with this section’’; and 

18 (B) in paragraph (2), by inserting ‘‘ap19 plied’’ after ‘‘theoretical’’; and 

20 (5) by striking subsection (d) and inserting the 

21 following: 

22 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

23 is authorized to be appropriated to carry out this section 

24 $10,000,000 for fiscal year 2013 and each fiscal year 

25 thereafter.’’. 


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1 SEC. 7106. EDUCATION GRANTS TO ALASKA NATIVE SERV2 ING INSTITUTIONS AND NATIVE HAWAIIAN 

3 SERVING INSTITUTIONS. 

4 Section 1419B of the National Agricultural Research, 

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

6 3156) is amended— 

7 (1) in subsection (a)— 

8 (A) in paragraph (1), by striking ‘‘(or 

9 grants without regard to any requirement for 

10 competition)’’; and 

11 (B) in paragraph (3), by striking ‘‘2012’’ 

12 and inserting ‘‘2018’’; and 

13 (2) in subsection (b)(1), by striking ‘‘(or grants 

14 without regard to any requirement for competi15 tion)’’; and 

16 (3) in paragraph (3), by striking ‘‘2012’’ and 

17 inserting ‘‘2018’’. 

18 SEC. 7107. NUTRITION EDUCATION PROGRAM. 

19 Section 1425(f) of the National Agricultural Re20 search, Extension, and Teaching Policy Act of 1977 (7 

21 U.S.C. 3175(f)) is amended by striking ‘‘2012’’ and in22 serting ‘‘2018’’. 

23 SEC. 7108. CONTINUING ANIMAL HEALTH AND DISEASE RE24 SEARCH PROGRAMS. 

25 Section 1433 of the National Agricultural Research, 

26 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 


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1 3195) is amended by striking the section designation and 

2 heading and all that follows through subsection (a) and 

3 inserting the following: 

4 ‘‘SEC. 1433. APPROPRIATIONS FOR CONTINUING ANIMAL 

5 HEALTH AND DISEASE RESEARCH PRO6 GRAMS. 

7 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.— 

8 ‘‘(1) IN GENERAL.—There are authorized to be 

9 appropriated to support continuing animal health 

10 and disease research programs at eligible institutions 

11 such sums as are necessary, but not to exceed 

12 $25,000,000 for each of fiscal years 1991 through 

13 2018. 

14 ‘‘(2) USE OF FUNDS.—Funds made available 

15 under this section shall be used— 

16 ‘‘(A) to meet the expenses of conducting 

17 animal health and disease research, publishing 

18 and disseminating the results of such research, 

19 and contributing to the retirement of employees 

20 subject to the Act of March 4, 1940 (7 U.S.C. 

21 331); 

22 ‘‘(B) for administrative planning and di23 rection; and 


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1 ‘‘(C) to purchase equipment and supplies 

2 necessary for conducting research described in 

3 subparagraph (A).’’. 

4 SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND 

5 FOOD SCIENCES FACILITIES AT 1890 LAND6 GRANT COLLEGES, INCLUDING TUSKEGEE 

7 UNIVERSITY. 

8 Section 1447(b) of the National Agricultural Re9 search, Extension, and Teaching Policy Act of 1977 (7 

10 U.S.C. 3222b(b)) is amended by striking ‘‘2012’’ and in11 serting ‘‘2018’’. 

12 SEC. 7110. GRANTS TO UPGRADE AGRICULTURAL AND 

13 FOOD SCIENCES FACILITIES AND EQUIP14 MENT AT INSULAR AREA LAND-GRANT INSTI15 TUTIONS. 

16 Section 1447B(d) of the National Agricultural Re17 search, Extension, and Teaching Policy Act of 1977 (7 

18 U.S.C. 3222b–2(d)) is amended by striking ‘‘2012’’ and 

19 inserting ‘‘2018’’. 

20 SEC. 7111. HISPANIC-SERVING INSTITUTIONS. 

21 Section 1455(c) of the National Agricultural Re22 search, Extension, and Teaching Policy Act of 1977 (7 

23 U.S.C. 3241(c)) is amended by striking ‘‘2012’’ and in24 serting ‘‘2018’’. 


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1 SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AG2 RICULTURAL SCIENCE AND EDUCATION PRO3 GRAMS. 

4 Section 1459A of the National Agricultural Research, 

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

6 3292b) is amended by striking subsection (c) and insert7 ing the following: 

8 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to carry out this sec10 tion— 

11 ‘‘(1) such sums as are necessary for each of fis12 cal years 1999 through 2013; and 

13 ‘‘(2) $5,000,000 for each of fiscal years 2014 

14 through 2018.’’. 

15 SEC. 7113. UNIVERSITY RESEARCH. 

16 Section 1463 of the National Agricultural Research, 

17 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

18 3311) is amended in each of subsections (a) and (b) by 

19 striking ‘‘2012’’ each place it appears and inserting 

20 ‘‘2018’’. 

21 SEC. 7114. EXTENSION SERVICE. 

22 Section 1464 of the National Agricultural Research, 

23 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

24 3312) is amended by striking ‘‘2012’’ and inserting 

25 ‘‘2018’’. 


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1 SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS. 

2 (a) AUTHORIZATION OF APPROPRIATIONS AND TER3 MINATION.—Section 1473D of the National Agricultural 

4 Research, Extension, and Teaching Policy Act of 1977 (7 

5 U.S.C. 3319d) is amended— 

6 (1) in subsection (a), by striking ‘‘2012’’ and 

7 inserting ‘‘2018’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to carry out this sec11 tion— 

12 ‘‘(1) such sums as are necessary for each of fis13 cal years 2012 and 2013; and 

14 ‘‘(2) $1,000,000 for each of fiscal years 2014 

15 through 2018.’’. 

16 (b) COMPETITIVE GRANTS.—Section 1473D(c)(1) of 

17 the National Agricultural Research, Extension, and 

18 Teaching Policy Act of 1977 (7 U.S.C. 3319d(c)(1)) is 

19 amended by striking ‘‘use such research funding, special 

20 or competitive grants, or other means, as the Secretary 

21 determines,’’ and inserting ‘‘make competitive grants’’. 

22 SEC. 7116. CAPACITY BUILDING GRANTS FOR NLGCA INSTI23 TUTIONS. 

24 Section 1473F(b) of the National Agricultural Re25 search, Extension, and Teaching Policy Act of 1977 (7 


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1 U.S.C. 3319i(b)) is amended by striking ‘‘2012’’ and in2 serting ‘‘2018’’. 

3 SEC. 7117. AQUACULTURE ASSISTANCE PROGRAMS. 

4 (a) COMPETITIVE GRANTS.—Section 1475(b) of the 

5 National Agricultural Research, Extension, and Teaching 

6 Policy Act of 1977 (7 U.S.C. 3322(b)) is amended in the 

7 matter preceding paragraph (1) by inserting ‘‘competi8 tive’’ before ‘‘grants’’. 

9 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

10 1477 of the National Agricultural Research, Extension, 

11 and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 

12 amended to read as follows: 

13 ‘‘SEC. 1477. AUTHORIZATION OF APPROPRIATIONS. 

14 ‘‘(a) IN GENERAL.—There are authorized to be ap15 propriated to carry out this subtitle— 

16 ‘‘(1) $7,500,000 for each of fiscal years 1991 

17 through 2013; and 

18 ‘‘(2) $5,000,000 for each of fiscal years 2014 

19 through 2018. 

20 ‘‘(b) PROHIBITION ON USE.—Funds made available 

21 under this section may not be used to acquire or construct 

22 a building.’’. 

23 SEC. 7118. RANGELAND RESEARCH PROGRAMS. 

24 Section 1483(a) of the National Agricultural Re25 search, Extension, and Teaching Policy Act of 1977 (7 


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1 U.S.C. 3336(a)) is amended by striking ‘‘subtitle’’ and all 

2 that follows and inserting the following: ‘‘subtitle— 

3 ‘‘(1) $10,000,000 for each of fiscal years 1991 

4 through 2013; and 

5 ‘‘(2) $2,000,000 for each of fiscal years 2014 

6 through 2018.’’. 

7 SEC. 7119. SPECIAL AUTHORIZATION FOR BIOSECURITY 

8 PLANNING AND RESPONSE. 

9 Section 1484(a) of the National Agricultural Re10 search, Extension, and Teaching Policy Act of 1977 (7 

11 U.S.C. 3351(a)) is amended by striking ‘‘response such 

12 sums as are necessary’’ and all that follows and inserting 

13 the following: ‘‘response— 

14 ‘‘(1) such sums as are necessary for each of fis15 cal years 2002 through 2013; and 

16 ‘‘(2) $20,000,000 for each of fiscal years 2014 

17 through 2018.’’. 

18 SEC. 7120. DISTANCE EDUCATION AND RESIDENT INSTRUC19 TION GRANTS PROGRAM FOR INSULAR AREA 

20 INSTITUTIONS OF HIGHER EDUCATION. 

21 (a) DISTANCE EDUCATION GRANTS FOR INSULAR

22 AREAS.— 

23 (1) COMPETITIVE GRANTS.—Section 1490(a) of 

24 the National Agricultural Research, Extension, and 


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1 Teaching Policy Act of 1977 (7 U.S.C. 3362(a)) is 

2 amended by striking ‘‘or noncompetitive’’. 

3 (2) AUTHORIZATION OF APPROPRIATIONS.— 

4 Section 1490(f) of the National Agricultural Re5 search, Extension, and Teaching Policy Act of 1977 

6 (7 U.S.C. 3362(f)) is amended by striking ‘‘section’’ 

7 and all that follows and inserting the following: ‘‘sec8 tion— 

9 ‘‘(1) such sums as are necessary for each of fis10 cal years 2002 through 2013; and 

11 ‘‘(2) $2,000,000 for each of fiscal years 2014 

12 through 2018.’’. 

13 (b) RESIDENT INSTRUCTION GRANTS FOR INSULAR

14 AREAS.—Section 1491(c) of the National Agricultural Re15 search, Extension, and Teaching Policy Act of 1977 (7 

16 U.S.C. 3363(c)) is amended by striking ‘‘such sums as 

17 are necessary’’ and all that follows and inserting the fol18 lowing: ‘‘to carry out this section— 

19 ‘‘(1) such sums as are necessary for each of fis20 cal years 2002 through 2013; and 

21 ‘‘(2) $2,000,000 for each of fiscal years 2014 

22 through 2018.’’. 


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1 Subtitle B—Food, Agriculture, Con2 servation, and Trade Act of 1990 

3 SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICA4 TIONS. 

5 Section 1624 of the Food, Agriculture, Conservation, 

6 and Trade Act of 1990 (7 U.S.C. 5814) is amended— 

7 (1) by striking ‘‘$40,000,000 for each fiscal 

8 year’’; and 

9 (2) by inserting ‘‘$40,000,000 for each of fiscal 

10 years 2014 through 2018’’ after ‘‘chapter’’. 

11 SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS. 

12 Section 1627 of the Food, Agriculture, Conservation, 

13 and Trade Act of 1990 (7 U.S.C. 5821) is amended by 

14 striking subsection (d) and inserting the following: 

15 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

16 is authorized to be appropriated to carry out this section 

17 through the National Institute of Food and Agriculture 

18 $20,000,000 for each of fiscal years 2014 through 2018.’’. 

19 SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DE20 VELOPMENT AND TRANSFER PROGRAM. 

21 Section 1628 of the Food, Agriculture, Conservation, 

22 and Trade Act of 1990 (7 U.S.C. 5831) is amended by 

23 striking subsection (f) and inserting the following: 

24 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

25 are authorized to be appropriated to carry out this section 


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1 such sums as are necessary for each of fiscal years 2014 

2 through 2018.’’. 

3 SEC. 7204. NATIONAL TRAINING PROGRAM. 

4 Section 1629 of the Food, Agriculture, Conservation, 

5 and Trade Act of 1990 (7 U.S.C. 5832) is amended by 

6 striking subsection (i) and inserting the following: 

7 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to carry out the National 

9 Training Program $20,000,000 for each of fiscal years 

10 2014 through 2018.’’. 

11 SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM. 

12 Section 1635(b) of the Food, Agriculture, Conserva13 tion, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amend14 ed— 

15 (1) by striking ‘‘such funds as may be nec16 essary’’; and 

17 (2) by striking ‘‘subtitle’’ and all that follows 

18 and inserting the following: ‘‘subtitle— 

19 ‘‘(1) such sums as are necessary for each of fis20 cal years 1991 through 2013; and 

21 ‘‘(2) $1,000,000 for each of fiscal years 2014 

22 through 2018.’’. 


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1 SEC. 7206. NATIONAL AGRICULTURAL WEATHER INFORMA2 TION SYSTEM. 

3 Section 1641(c) of the Food, Agriculture, Conserva4 tion, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amend5 ed by inserting ‘‘and $1,000,000 for each of fiscal years 

6 2014 through 2018’’ before the period at the end. 

7 SEC. 7207. AGRICULTURAL GENOME INITIATIVE. 

8 Section 1671(c) of the Food, Agriculture, Conserva9 tion, and Trade Act of 1990 (7 U.S.C. 5924(c)) is amend10 ed by adding at the end the following: 

11 ‘‘(3) CONSORTIA.—The Secretary shall encour12 age awards under this section to consortia of eligible 

13 entities.’’. 

14 SEC. 7208. HIGH-PRIORITY RESEARCH AND EXTENSION INI15 TIATIVES. 

16 Section 1672 of the Food, Agriculture, Conservation, 

17 and Trade Act of 1990 (7 U.S.C. 5925) is amended— 

18 (1) in the first sentence of subsection (a), by 

19 striking ‘‘subsections (e) through (i) of’’; 

20 (2) in subsection (b)(2)— 

21 (A) by striking the first sentence and in22 serting the following: 

23 ‘‘(A) IN GENERAL.—To facilitate the mak24 ing of research and extension grants under sub25 section (d), the Secretary may appoint a task 


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1 force to make recommendations to the Sec2 retary.’’; and 

3 (B) in the second sentence, by striking 

4 ‘‘The Secretary may not incur costs in excess of 

5 $1,000 for any fiscal year in connection with 

6 each’’ and inserting the following: 

7 ‘‘(B) COSTS.—The Secretary may not 

8 incur costs in excess of $1,000 for any fiscal 

9 year in connection with a’’; 

10 (3) in subsection (e)— 

11 (A) by striking paragraphs (1) through 

12 (5), (7), (8), (11) through (43), (47), (48), 

13 (51), and (52); 

14 (B) by redesignating paragraphs (6), (9), 

15 (10), (44), (45), (46), (49), and (50) as para16 graphs (1), (2), (3), (4), (5), (6), (7), and (8), 

17 respectively; and 

18 (C) by adding at the end the following: 

19 ‘‘(9) CERVIDAE INITIATIVE.—Research and ex20 tension grants may be made under this section to 

21 support collaborative research focusing on the devel22 opment of viable strategies for the prevention, diag23 nosis, and treatment of parasites and diseases of 

24 farmed deer and elk such as epizootic hemorrhagic 


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1 disease and chronic wasting disease and the map2 ping of the cervid genome. 

3 ‘‘(10) CORN, SOYBEAN MEAL, CEREAL GRAINS, 

4 AND GRAIN BYPRODUCTS RESEARCH AND EXTEN5 SION.—Research and extension grants may be made 

6 under this section for the purpose of carrying out or 

7 enhancing research to improve the digestibility, nu8 tritional value, and efficiency of use of corn, soybean 

9 meal, cereal grains, and grain byproducts for the 

10 poultry and food animal production industries.’’; 

11 (4) by striking subsections (f), (g), and (i); 

12 (5) by redesignating subsections (h) and (j) as 

13 subsections (j) and (k), respectively; 

14 (6) by inserting after subsection (e) the fol15 lowing: 

16 ‘‘(f) PULSE HEALTH INITIATIVE.— 

17 ‘‘(1) DEFINITIONS.—In this subsection; 

18 ‘‘(A) INITIATIVE.—The term ‘Initiative’ 

19 means the pulse health initiative established by 

20 paragraph (2). 

21 ‘‘(B) PULSE.—The term ‘pulse’ means dry 

22 beans, dry peas, lentils, and chickpeas or 

23 garbanzo beans. 

24 ‘‘(2) ESTABLISHMENT.—Notwithstanding any 

25 other provision of law, during the period beginning 


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1 on the date of enactment of the Agriculture Reform, 

2 Food, and Jobs Act of 2013 and ending on Sep3 tember 30, 2018, the Secretary shall carry out a 

4 pulse crop health and extension initiative to address 

5 the critical needs of the pulse crop industry by devel6 oping and disseminating science-based tools and in7 formation, including— 

8 ‘‘(A) research in health and nutrition, such 

9 as— 

10 ‘‘(i) identifying global dietary patterns 

11 of pulse crops in relation to population 

12 health; 

13 ‘‘(ii) researching pulse crop diets and 

14 the ability of the diets to reduce obesity 

15 and associated chronic disease (including 

16 cardiovascular disease, type 2 diabetes, 

17 and cancer); and 

18 ‘‘(iii) identifying the underlying mech19 anisms of the health benefits of pulse crop 

20 consumption (including disease biomarkers, 

21 bioactive components, and relevant plant 

22 genetic components to enhance the health 

23 promoting value of pulse crops); 

24 ‘‘(B) research in functionality, such as— 


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1 ‘‘(i) improving the functional prop2 erties of pulse crops and pulse fractions; 

3 ‘‘(ii) developing new and innovative 

4 technologies to improve pulse crops as an 

5 ingredient in food products; and 

6 ‘‘(iii) developing nutrient-dense food 

7 product solutions to ameliorate chronic dis8 ease and enhance food security worldwide; 

9 ‘‘(C) research in sustainability to enhance 

10 global food security, such as— 

11 ‘‘(i) plant breeding, genetics and 

12 genomics to improve productivity, nutrient 

13 density, and phytonutrient content for a 

14 growing world population; 

15 ‘‘(ii) pest and disease management, 

16 including resistance to pests and diseases 

17 resulting in reduced application manage18 ment strategies; and 

19 ‘‘(iii) improving nitrogen fixation to 

20 reduce the carbon and energy footprint of 

21 agriculture; 

22 ‘‘(D) optimizing pulse cropping systems to 

23 reduce water usage; and 

24 ‘‘(E) education and technical service, such 

25 as— 


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1 ‘‘(i) providing technical expertise to 

2 help food companies include nutrient-dense 

3 pulse crops in innovative and healthy 

4 foods; and 

5 ‘‘(ii) establishing an educational pro6 gram to encourage the consumption and 

7 production of pulse crops in the United 

8 States and other countries. 

9 ‘‘(3) ELIGIBLE ENTITIES.—The Secretary may 

10 carry out the Initiative through— 

11 ‘‘(A) Federal agencies, including the Agri12 cultural Research Service and the National In13 stitute of Food and Agriculture; 

14 ‘‘(B) National Laboratories; 

15 ‘‘(C) institutions of higher education; 

16 ‘‘(D) research institutions or organizations; 

17 ‘‘(E) private organizations or corporations; 

18 ‘‘(F) State agricultural experiment sta19 tions; 

20 ‘‘(G) individuals; or 

21 ‘‘(H) groups consisting of 2 or more enti22 ties or individuals described in subparagraphs 

23 (A) through (G). 

24 ‘‘(4) RESEARCH PROJECT GRANTS.— 


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1 ‘‘(A) IN GENERAL.—In carrying out this 

2 subsection, the Secretary shall award grants on 

3 a competitive basis. 

4 ‘‘(B) IN GENERAL.—The Secretary shall— 

5 ‘‘(i) seek and accept proposals for 

6 grants; 

7 ‘‘(ii) determine the relevance and 

8 merit of proposals through a system of 

9 peer review, in consultation with the pulse 

10 crop industry; and 

11 ‘‘(iii) award grants on the basis of 

12 merit, quality, and relevance. 

13 ‘‘(C) PRIORITIES.—In making grants 

14 under this subsection, the Secretary shall pro15 vide a higher priority to projects that— 

16 ‘‘(i) are multistate, multiinstitutional, 

17 and multidisciplinary; and 

18 ‘‘(ii) include explicit mechanisms to 

19 communicate results to the pulse crop in20 dustry and the public. 

21 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated to carry out 

23 this subsection $25,000,000 for each of fiscal years 

24 2014 through 2018. 


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1 ‘‘(g) FORESTRY PRODUCTS ADVANCED UTILIZATION

2 RESEARCH.— 

3 ‘‘(1) ESTABLISHMENT.—The Secretary shall es4 tablish a forestry and forestry products research and 

5 extension initiative to develop and disseminate 

6 science-based tools that address the needs of the for7 estry sector and their respective regions, forest and 

8 timberland owners and managers, and forestry prod9 ucts engineering, manufacturing, and related inter10 ests, including— 

11 ‘‘(A) research in wood quality improvement 

12 with respect to lumber strength and grade yield; 

13 ‘‘(B) improvement in forestry products, 

14 lumber, and evaluation standards and valuation 

15 techniques; 

16 ‘‘(C) research and development of novel en17 gineered lumber products and renewable energy 

18 from wood; 

19 ‘‘(D) efforts to improve lumber quality and 

20 value based on forest management techniques; 

21 ‘‘(E) efforts to improve forestry products 

22 conversion and manufacturing efficiency, pro23 ductivity, and profitability over the long term 

24 (including forestry product marketing); and 


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1 ‘‘(F) other research to support the lon2 gevity, sustainability, and profitability of 

3 timberland through sound management and uti4 lization. 

5 ‘‘(2) GRANTS.— 

6 ‘‘(A) IN GENERAL.—As part of the initia7 tive described in paragraph (1), the Secretary 

8 shall make grants to eligible entities to carry 

9 out the activities described in subparagraphs 

10 (A) through (F) of paragraph (1). 

11 ‘‘(B) ELIGIBLE ENTITIES.—Entities eligi12 ble for grants described in subparagraph (A) 

13 shall include— 

14 ‘‘(i) Federal agencies; 

15 ‘‘(ii) National Laboratories 

16 ‘‘(iii) colleges and universities; 

17 ‘‘(iv) research institutions and organi18 zations; 

19 ‘‘(v) private organizations or corpora20 tions; 

21 ‘‘(vi) State agricultural experiment 

22 stations; and 

23 ‘‘(vii) groups consisting of 2 or more 

24 such entities. 


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1 ‘‘(C) PRIORITIES.—In making grants, the 

2 Secretary shall give higher priority to projects 

3 that— 

4 ‘‘(i) are multistate, multiinstitutional, 

5 or multidisciplinary; 

6 ‘‘(ii) include explicit mechanisms to 

7 communicate results to producers, forestry 

8 industry stakeholders, policymakers, and 

9 the public; and 

10 ‘‘(iii) have— 

11 ‘‘(I) extensive history and dem12 onstrated experience in forestry and 

13 forestry products research; 

14 ‘‘(II) existing capacity in forestry 

15 products research and dissemination; 

16 and 

17 ‘‘(III) a demonstrated means of 

18 evaluating and responding to the 

19 needs of the related commercial sec20 tor. 

21 ‘‘(D) ADMINISTRATION.— 

22 ‘‘(i) SELECTION PROCESS.—In award23 ing grants under this subsection, the Sec24 retary shall— 

25 ‘‘(I) seek and accept proposals; 


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1 ‘‘(II) determine the relevance and 

2 merit of proposals through a system 

3 of peer and merit review; and 

4 ‘‘(III) award grants on the basis 

5 of merit, quality, and relevance. 

6 ‘‘(ii) TERMS.—The term of a grant 

7 made under this paragraph may not exceed 

8 10 years. 

9 ‘‘(iii) MATCHING FUNDS.—The Sec10 retary shall require the recipient of a grant 

11 to provide funds or in-kind support from 

12 non-Federal sources in an amount that is 

13 at least equal to the amount provided by 

14 the Federal Government. 

15 ‘‘(iv) BUILDINGS AND FACILITIES.— 

16 Funds made available under this para17 graph shall not be used for the construc18 tion of a new building or facility or the ac19 quisition, expansion, remodeling, or alter20 ation of an existing building or facility (in21 cluding site grading and improvement, and 

22 architect fees). 

23 ‘‘(v) COORDINATION.—The Secretary 

24 shall ensure that any activities carried out 


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1 under this paragraph are done in coordina2 tion with the Forest Products Laboratory. 

3 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

4 ‘‘(A) IN GENERAL.—There is authorized to 

5 be appropriated to carry out this subsection 

6 $7,000,000 for each of fiscal years 2014 

7 through 2018. 

8 ‘‘(B) MATCHING FUNDS.—To the extent 

9 practicable, the Secretary shall match any 

10 funds received under subparagraph (A) with 

11 funds received for the research and development 

12 program of the Forest Service under section 3 

13 of the Forest and Rangeland Renewable Re14 sources Research Act of 1978 (16 U.S.C. 

15 1642). 

16 ‘‘(h) TRAINING COORDINATION FOR FOOD AND AGRI17 CULTURE PROTECTION.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall make 

19 grants and enter into contracts or cooperative agree20 ments with eligible entities described in paragraph 

21 (2) for the purposes of establishing a Comprehensive 

22 Food Safety Training Network. 

23 ‘‘(2) ELIGIBILITY.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 subsection, an eligible entity is a multiinstitu3 tional consortium that includes— 

4 ‘‘(i) a nonprofit institution that pro5 vides administering food protection train6 ing; and 

7 ‘‘(ii) 1 or more training centers in in8 stitutions of higher education that have 

9 demonstrated expertise in developing and 

10 delivering community-based training in 

11 food and agricultural safety and defense. 

12 ‘‘(B) REQUIREMENTS.—To ensure that co13 ordination and administration is provided 

14 across all the disciplines and provide com15 prehensive food protection training, the Sec16 retary may only consider an entire consortium 

17 collectively rather than on an institution-by-in18 stitution basis. 

19 ‘‘(C) MEMBERSHIP.—An eligible entity 

20 may alter the consortium membership to meet 

21 specific training expertise needs. 

22 ‘‘(3) DUTIES OF ELIGIBLE ENTITY.—As a con23 dition of the receipt of assistance under this sub24 section, an eligible entity, in cooperation with the 

25 Secretary, shall establish and maintain the network 


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1 for an internationally integrated training system to 

2 enhance protection of the United States food supply, 

3 including, at a minimum— 

4 ‘‘(A) developing curricula and a training 

5 network to provide basic, technical, manage6 ment, and leadership training to regulatory and 

7 public health officials, producers, processors, 

8 and other agrifood businesses; 

9 ‘‘(B) serving as the hub for the adminis10 tration of an open training network; 

11 ‘‘(C) implementing standards to ensure the 

12 delivery of quality training through a national 

13 curricula; 

14 ‘‘(D) building and overseeing a nationally 

15 recognized instructor cadre to ensure the avail16 ability of highly qualified instructors; 

17 ‘‘(E) reviewing training proposed through 

18 the National Institute of Food and Agriculture 

19 and other relevant Federal agencies that report 

20 to the Secretary on the quality and content of 

21 proposed and existing courses; 

22 ‘‘(F) assisting Federal agencies in the im23 plementation of food protection training re24 quirements including requirements contained in 

25 the Agriculture Reform, Food, and Jobs Act of 


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1 2013, the FDA Food Safety Modernization Act 

2 (Public Law 111–353; 124 Stat. 3885), and 

3 amendments made by those Acts; and 

4 ‘‘(G) performing evaluation and outcome5 based studies to provide to the Secretary feed6 back on the effectiveness and impact of training 

7 and metrics on jurisdictions and sectors within 

8 the food safety system. 

9 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

10 There is authorized to be appropriated to carry out 

11 this section $20,000,000 for each of fiscal years 

12 2014 through 2018, to remain available until ex13 pended. 

14 ‘‘(i) FARM ANIMAL AGRICULTURE INTEGRATED RE15 SEARCH INITIATIVE.— 

16 ‘‘(1) DEFINITION OF INITIATIVE.—In this sub17 section, the term ‘Initiative’ means the farm animal 

18 integrated research initiative established under para19 graph (2). 

20 ‘‘(2) ESTABLISHMENT.—Notwithstanding any 

21 other provision of law, during the period beginning 

22 on the date of enactment of the Agriculture Reform, 

23 Food, and Jobs Act of 2013 and ending on Sep24 tember 30, 2018, the Secretary shall carry out a 

25 farm animal integrated research initiative to address 


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1 the critical needs of animal agriculture, by devel2 oping and disseminating science-based tools and in3 formation, including— 

4 ‘‘(A) research to promote food security, 

5 such as— 

6 ‘‘(i) improving feed efficiency; 

7 ‘‘(ii) improving energetic efficiency; 

8 ‘‘(iii) connecting genomics, proteo9 mics, metabolomics, and related phe10 nomena to animal production; 

11 ‘‘(iv) improving reproductive effi12 ciency; and 

13 ‘‘(v) enhancing pre- and post-harvest 

14 food safety systems; 

15 ‘‘(B) research on the interrelationship be16 tween animal and human health, such as— 

17 ‘‘(i) exploring new approaches for vac18 cine development; 

19 ‘‘(ii) understanding and controlling 

20 zoonoses, including the impact of zoonoses 

21 on food safety; 

22 ‘‘(iii) improving animal health through 

23 feed; and 

24 ‘‘(iv) enhancing product quality and 

25 nutritive value; and 


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1 ‘‘(C) research on stewardship, such as— 

2 ‘‘(i) minimizing or reducing the flow 

3 of nutrients from animal production sys4 tems; 

5 ‘‘(ii) improving sustainability and in6 creasing efficiency of natural resource use; 

7 and 

8 ‘‘(iii) better understanding animal 

9 production systems and the interactions 

10 between animals, plants, and human man11 agement. 

12 ‘‘(3) ELIGIBLE ENTITIES.—The Secretary may 

13 carry out the Initiative through— 

14 ‘‘(A) Federal agencies, including the Agri15 cultural Research Service and the National In16 stitute of Food and Agriculture; 

17 ‘‘(B) National Laboratories; 

18 ‘‘(C) institutions of higher education; 

19 ‘‘(D) research institutions or organizations; 

20 ‘‘(E) private organizations or corporations; 

21 ‘‘(F) State agricultural experiment sta22 tions; 

23 ‘‘(G) individuals; and 


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1 ‘‘(H) groups consisting of 2 or more enti2 ties or individuals described in subparagraphs 

3 (A) through (G). 

4 ‘‘(4) RESEARCH PROJECT GRANTS.— 

5 ‘‘(A) IN GENERAL.—In carrying out this 

6 subsection, the Secretary shall award grants on 

7 a competitive basis in accordance with subpara8 graphs (B) and (C). 

9 ‘‘(B) PROCESS FOR AWARDING GRANTS.— 

10 The Secretary shall— 

11 ‘‘(i) seek and accept proposals for 

12 grants; 

13 ‘‘(ii) determine the relevance and 

14 merit of proposals through a system of 

15 peer review, in consultation with the ani16 mal agriculture industry; and 

17 ‘‘(iii) award grants on the basis of 

18 merit, quality, and relevance. 

19 ‘‘(C) PRIORITIES.—In making grants 

20 under this subsection, the Secretary shall give 

21 priority to projects that— 

22 ‘‘(i) are multistate, multiinstitutional, 

23 and multidisciplinary; and 


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1 ‘‘(ii) include explicit mechanisms to 

2 communicate results to the animal agri3 culture industry and the public. 

4 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

5 There is authorized to be appropriated to carry out 

6 this subsection $50,000,000 for each of fiscal years 

7 2014 through 2018.’’; 

8 (7) in subsection (j) (as redesignated by para9 graph (5)), by striking ‘‘2012’’ each place it appears 

10 and inserting ‘‘2018’’; and 

11 (8) in subsection (k) (as redesignated by para12 graph (5)), by striking ‘‘2012’’ and inserting 

13 ‘‘2018’’. 

14 SEC. 7209. ORGANIC AGRICULTURE RESEARCH AND EXTEN15 SION INITIATIVE. 

16 Section 1672B of the Food, Agriculture, Conserva17 tion, and Trade Act of 1990 (7 U.S.C. 5925b) is amend18 ed— 

19 (1) in subsection (a)— 

20 (A) in the matter preceding paragraph (1), 

21 by inserting ‘‘, education,’’ after ‘‘support re22 search’’; 

23 (B) in paragraph (1), by inserting ‘‘and 

24 improvement’’ after ‘‘development’’; 


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1 (C) in paragraph (2), by striking ‘‘to pro2 ducers and processors who use organic meth3 ods’’ and inserting ‘‘of organic agricultural pro4 duction and methods to producers, processors, 

5 and rural communities’’; 

6 (D) in paragraph (5), by inserting ‘‘and 

7 researching solutions to’’ after ‘‘identifying’’; 

8 and 

9 (E) in paragraph (6), by striking ‘‘and 

10 marketing’’ and inserting ‘‘, marketing, and 

11 food safety’’; 

12 (2) by striking subsection (e); 

13 (3) by redesignating subsection (f) as sub14 section (e); and 

15 (4) in paragraph (1) of subsection (e) (as so re16 designated)— 

17 (A) in the heading, by striking ‘‘FOR FIS18 CAL YEARS 2008 THROUGH 2012’’; 

19 (B) in subparagraph (A), by striking 

20 ‘‘and’’ at the end; 

21 (C) in subparagraph (B), by striking the 

22 period at the end and inserting ‘‘; and’’; and 

23 (D) by adding at the end the following: 

24 ‘‘(C) $16,000,000 for each of fiscal years 

25 2014 through 2018.’’. 


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1 SEC. 7210. FARM BUSINESS MANAGEMENT. 

2 Section 1672D(d) of the Food, Agriculture, Con3 servation, and Trade Act of 1990 (7 U.S.C. 5925f(d)) is 

4 amended by striking ‘‘such sums as are necessary to carry 

5 out this section.’’ and inserting the following: ‘‘to carry 

6 out this section— 

7 ‘‘(1) such sums as are necessary for fiscal year 

8 2013; and 

9 ‘‘(2) $5,000,000 for each of fiscal years 2014 

10 through 2018.’’. 

11 SEC. 7211. REGIONAL CENTERS OF EXCELLENCE. 

12 Subtitle H of the Food, Agriculture, Conservation, 

13 and Trade Act of 1990 is amended by inserting after sec14 tion 1672D (7 U.S.C. 5925) the following: 

15 ‘‘SEC. 1673. REGIONAL CENTERS OF EXCELLENCE. 

16 ‘‘(a) ESTABLISHMENT.—The Secretary may 

17 prioritize regional centers of excellence established for spe18 cific agricultural commodities for the receipt of funding. 

19 ‘‘(b) COMPOSITION.—A regional center of excellence 

20 shall be composed of 1 or more colleges and universities 

21 (including land-grant institutions, schools of forestry, 

22 schools of veterinary medicine, or NLGCA Institutions (as 

23 defined in section 1404 of the National Agricultural Re24 search, Extension, and Teaching Policy Act of 1977 (7 

25 U.S.C. 3103))) that provide financial support to the re26 gional center of excellence. 


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1 ‘‘(c) CRITERIA FOR REGIONAL CENTERS OF EXCEL2 LENCE.—The criteria for consideration to be a regional 

3 center of excellence shall include efforts— 

4 ‘‘(1) to ensure coordination and cost-effective5 ness by reducing unnecessarily duplicative efforts re6 garding research, teaching, and extension; 

7 ‘‘(2) to leverage available resources by using 

8 public/private partnerships among agricultural in9 dustry groups, institutions of higher education, and 

10 the Federal Government; 

11 ‘‘(3) to implement teaching initiatives to in12 crease awareness and effectively disseminate solu13 tions to target audiences through extension activi14 ties; 

15 ‘‘(4) to increase the economic returns to rural 

16 communities by identifying, attracting, and directing 

17 funds to high-priority agricultural issues; and 

18 ‘‘(5) to improve teaching capacity and infra19 structure at colleges and universities (including land20 grant institutions, schools of forestry, and schools of 

21 veterinary medicine, and NLGCA Institutions). 

22 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

23 is authorized to be appropriated to carry out this section 

24 $10,000,000 for each of fiscal years 2014 through 2018.’’. 


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1 SEC. 7212. ASSISTIVE TECHNOLOGY PROGRAM FOR FARM2 ERS WITH DISABILITIES. 

3 Section 1680(c)(1) of the Food, Agriculture, Con4 servation, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) 

5 is amended— 

6 (1) by striking ‘‘is’’ and inserting ‘‘are’’; and 

7 (2) by striking ‘‘section’’ and all that follows 

8 and inserting the following: ‘‘section— 

9 ‘‘(A) $6,000,000 for each of fiscal years 

10 1999 through 2013; and 

11 ‘‘(B) $5,000,000 for each of fiscal years 

12 2014 through 2018.’’. 

13 SEC. 7213. NATIONAL RURAL INFORMATION CENTER 

14 CLEARINGHOUSE. 

15 Section 2381(e) of the Food, Agriculture, Conserva16 tion, and Trade Act of 1990 (7 U.S.C. 3125b(e)) is 

17 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

18 Subtitle C—Agricultural Research, 

19 Extension, and Education Re20 form Act of 1998 

21 SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RE22 SEARCH, EXTENSION, AND EDUCATION FUND23 ED BY THE DEPARTMENT. 

24 Section 103(a)(2) of the Agricultural Research, Ex25 tension, and Education Reform Act of 1998 (7 U.S.C. 

26 7613(a)(2)) is amended— 


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1 (1) by striking the paragraph designation and 

2 heading and inserting the following: 

3 ‘‘(2) RELEVANCE AND MERIT REVIEW OF RE4 SEARCH, EXTENSION, AND EDUCATION GRANTS.—’’; 

5 (2) in subparagraph (A)— 

6 (A) by inserting ‘‘relevance and’’ before 

7 ‘‘merit’’; and 

8 (B) by striking ‘‘extension or education’’ 

9 and inserting, ‘‘research, extension, or edu10 cation’’; and 

11 (3) in subparagraph (B) by inserting ‘‘on a con12 tinuous basis’’ after ‘‘procedures’’. 

13 SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EX14 TENSION COMPETITIVE GRANTS PROGRAM. 

15 Section 406(f) of the Agricultural Research, Exten16 sion, and Education Reform Act of 1998 (7 U.S.C. 

17 7626(f)) is amended by striking ‘‘2012’’ and inserting 

18 ‘‘2018’’. 

19 SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES 

20 OF WHEAT, TRITICALE, AND BARLEY CAUSED 

21 BY FUSARIUM GRAMINEARUM OR BY 

22 TILLETIA INDICA. 

23 Section 408(e) of the Agricultural Research, Exten24 sion, and Education Reform Act of 1998 (7 U.S.C. 

25 7628(e)) is amended by striking ‘‘such sums as may be 


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1 necessary for each of fiscal years 1999 through 2012’’ and 

2 inserting ‘‘$10,000,000 for each of fiscal years 2014 

3 through 2018’’. 

4 SEC. 7304. GRANTS FOR YOUTH ORGANIZATIONS. 

5 Section 410(d) of the Agricultural Research, Exten6 sion, and Education Reform Act of 1998 (7 U.S.C. 

7 7630(d)) is amended by striking ‘‘section such sums as 

8 are necessary’’ and all that follows and inserting the fol9 lowing: ‘‘section— 

10 ‘‘(1) such sums as are necessary for each of fis11 cal years 2008 through 2013; and 

12 ‘‘(2) $3,000,000 for each of fiscal years 2014 

13 through 2018.’’. 

14 SEC. 7305. SPECIALTY CROP RESEARCH INITIATIVE. 

15 Section 412 of the Agricultural Research, Extension, 

16 and Education Reform Act of 1998 (7 U.S.C. 7632) is 

17 amended— 

18 (1) in subsection (b)(3), by inserting ‘‘handling 

19 and processing,’’ after ‘‘production efficiency,’’; 

20 (2) in subsection (e)— 

21 (A) in paragraph (1)— 

22 (i) in subparagraph (B), by striking 

23 ‘‘and’’ at the end; 


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1 (ii) in subparagraph (C), by striking 

2 the period at the end and inserting ‘‘; 

3 and’’; and 

4 (iii) by inserting after subparagraph 

5 (C) the following: 

6 ‘‘(D) consult with the specialty crops com7 mittee authorized under section 1408A of the 

8 National Agricultural Research, Extension, and 

9 Teaching Policy Act of 1977 (7 U.S.C. 3123a) 

10 during the peer and merit review process.’’; and 

11 (B) in paragraph (3), by striking ‘‘non12 Federal’’ and all that follows through the end 

13 of the paragraph and inserting ‘‘other sources 

14 in an amount that is at least equal to the 

15 amount provided by a grant received under this 

16 section.’’; and 

17 (3) in subsection (h), by striking paragraph (3) 

18 and inserting the following: 

19 ‘‘(3) SUBSEQUENT FUNDING.—Of the funds of 

20 the Commodity Credit Corporation, the Secretary 

21 shall make available to carry out this section— 

22 ‘‘(A) $25,000,000 for fiscal year 2014; 

23 ‘‘(B) $30,000,000 for each of fiscal years 

24 2015 and 2016; 

25 ‘‘(C) $65,000,000 for fiscal year 2017; and 


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1 ‘‘(D) $50,000,000 for fiscal year 2018 and 

2 each fiscal year thereafter.’’. 

3 SEC. 7306. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE 

4 PROGRAM. 

5 Section 604(e) of the Agricultural Research, Exten6 sion, and Education Reform Act of 1998 (7 U.S.C. 

7 7642(e)) is amended by striking ‘‘2012’’ and inserting 

8 ‘‘2018’’. 

9 SEC. 7307. OFFICE OF PEST MANAGEMENT POLICY. 

10 Section 614(f) of the Agricultural Research, Exten11 sion, and Education Reform Act of 1998 (7 U.S.C. 

12 7653(f)) is amended— 

13 (1) by striking ‘‘such sums as are necessary’’; 

14 and 

15 (2) by striking ‘‘section’’ and all that follows 

16 and inserting the following: ‘‘section— 

17 ‘‘(1) such sums as are necessary for each of fis18 cal years 1999 through 2013; and 

19 ‘‘(2) $3,000,000 for each of fiscal years 2014 

20 through 2018.’’. 

21 SEC. 7308. AUTHORIZATION OF REGIONAL INTEGRATED 

22 PEST MANAGEMENT CENTERS. 

23 Subtitle B of title VI of the Agricultural Research, 

24 Extension, and Education Reform Act of 1998 (7 U.S.C. 


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1 7651 et seq.) is amended by adding at the end the fol2 lowing: 

3 ‘‘SEC. 621. AUTHORIZATION OF REGIONAL INTEGRATED 

4 PEST MANAGEMENT CENTERS. 

5 ‘‘(a) IN GENERAL.—There are established 4 regional 

6 integrated pest management centers (referred to in this 

7 section as the ‘Centers’), which shall be located at such 

8 specific locations in the north central, northeastern, south9 ern, and western regions of the United States as the Sec10 retary shall specify. 

11 ‘‘(b) PURPOSES.—The purposes of the Centers shall 

12 be— 

13 ‘‘(1) to strengthen the connection of the De14 partment with production agriculture, research, and 

15 extension programs, and agricultural stakeholders 

16 throughout the United States; 

17 ‘‘(2) to increase the effectiveness of providing 

18 pest management solutions for the private and pub19 lic sectors; 

20 ‘‘(3) to quickly respond to information needs of 

21 the public and private sectors; and 

22 ‘‘(4) to improve communication among the rel23 evant stakeholders. 


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1 ‘‘(c) DUTIES.—In meeting the purposes described in 

2 subsection (b) and otherwise carrying out this section, the 

3 Centers shall— 

4 ‘‘(1) develop regional strategies to address pest 

5 management needs; 

6 ‘‘(2) assist the Department and partner institu7 tions of the Department in identifying, prioritizing, 

8 and coordinating a national pest management re9 search, extension, and education program imple10 mented on a regional basis; 

11 ‘‘(3) establish a national pest management com12 munication network that includes— 

13 ‘‘(A) the agencies of the Department and 

14 other government agencies; 

15 ‘‘(B) scientists at institutions of higher 

16 education; and 

17 ‘‘(C) stakeholders focusing on pest man18 agement issues; 

19 ‘‘(4) serve as regional hubs responsible for en20 suring efficient access to pest management expertise 

21 and data available through institutions of higher 

22 education; and 

23 ‘‘(5) on behalf of the Department, manage 

24 grants that can be most effectively and efficiently 


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1 delivered at the regional level, as determined by the 

2 Secretary.’’. 

3 Subtitle D—Other Laws 

4 SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT. 

5 Section 16(a) of the Critical Agricultural Materials 

6 Act (7 U.S.C. 178n(a)) is amended— 

7 (1) by striking ‘‘such sums as are necessary’’; 

8 and 

9 (2) by striking ‘‘Act’’ and all that follows and 

10 inserting the following: ‘‘Act— 

11 ‘‘(1) such sums as are necessary for each of fis12 cal years 1991 through 2013; and 

13 ‘‘(2) $2,000,000 for each of fiscal years 2014 

14 through 2018.’’. 

15 SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS 

16 ACT OF 1994. 

17 (a) DEFINITION OF 1994 INSTITUTIONS.—Section 

18 532 of the Equity in Educational Land-Grant Status Act 

19 of 1994 (7 U.S.C. 301 note; Public Law 103–382) is 

20 amended to read as follows: 

21 ‘‘SEC. 532. DEFINITION OF 1994 INSTITUTIONS. 

22 ‘‘In this part, the term ‘1994 Institutions’ means any 

23 1 of the following: 

24 ‘‘(1) Aaniiih Nakoda College. 

25 ‘‘(2) Bay Mills Community College. 


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1 ‘‘(3) Blackfeet Community College. 

2 ‘‘(4) Cankdeska Cikana Community College. 

3 ‘‘(5) Chief Dull Knife Memorial College. 

4 ‘‘(6) College of Menominee Nation. 

5 ‘‘(7) College of the Muscogee Nation. 

6 ‘‘(8) D–Q University. 

7 ‘‘(9) Dine College. 

8 ‘‘(10) Fond du Lac Tribal and Community Col9 lege. 

10 ‘‘(11) Fort Berthold Community College. 

11 ‘‘(12) Fort Peck Community College. 

12 ‘‘(13) Haskell Indian Nations University. 

13 ‘‘(14) Ilisagvik College. 

14 ‘‘(15) Institute of American Indian and Alaska 

15 Native Culture and Arts Development. 

16 ‘‘(16) Keweenaw Bay Ojibwa Community Col17 lege. 

18 ‘‘(17) Lac Courte Oreilles Ojibwa Community 

19 College. 

20 ‘‘(18) Leech Lake Tribal College. 

21 ‘‘(19) Little Big Horn College. 

22 ‘‘(20) Little Priest Tribal College. 

23 ‘‘(21) Navajo Technical College. 

24 ‘‘(22) Nebraska Indian Community College. 

25 ‘‘(23) Northwest Indian College. 


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1 ‘‘(24) Oglala Lakota College. 

2 ‘‘(25) Saginaw Chippewa Tribal College. 

3 ‘‘(26) Salish Kootenai College. 

4 ‘‘(27) Sinte Gleska University. 

5 ‘‘(28) Sisseton Wahpeton College. 

6 ‘‘(29) Sitting Bull College. 

7 ‘‘(30) Southwestern Indian Polytechnic Insti8 tute. 

9 ‘‘(31) Stone Child College. 

10 ‘‘(32) Tohono O’odham Community College. 

11 ‘‘(33) Turtle Mountain Community College. 

12 ‘‘(34) United Tribes Technical College. 

13 ‘‘(35) White Earth Tribal and Community Col14 lege.’’. 

15 (b) ENDOWMENT FOR 1994 INSTITUTIONS.— 

16 (1) IN GENERAL.—Section 533 of the Equity in 

17 Educational Land-Grant Status Act of 1994 (7 

18 U.S.C. 301 note; Public Law 103–382) is amend19 ed— 

20 (A) in subsection (a)(2)(A)(ii), by striking 

21 ‘‘of such Act as added by section 534(b)(1) of 

22 this part’’ and inserting ‘‘of that Act (7 U.S.C. 

23 343(b)(3)) and for programs for children, 

24 youth, and families at risk and for Federally 


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1 recognized tribes implemented under section 

2 3(d) of that Act (7 U.S.C. 343(d))’’; and 

3 (B) in subsection (b), in the first sentence 

4 by striking ‘‘2012’’ and inserting ‘‘2018’’. 

5 (2) CONFORMING AMENDMENT.—Section 3(d) 

6 of the Smith-Lever Act (7 U.S.C. 343(d)) is amend7 ed in the second sentence by inserting ‘‘and, in the 

8 case of programs for children, youth, and families at 

9 risk and for Federally recognized tribes, the 1994 

10 Institutions (as defined in section 532 of the Equity 

11 in Educational Land-Grant Status Act of 1994 (7 

12 U.S.C. 301 note; Public Law 103–382)),’’ before 

13 ‘‘may compete for’’. 

14 (c) INSTITUTIONAL CAPACITY BUILDING GRANTS.— 

15 Section 535 of the Equity in Educational Land-Grant Sta16 tus Act of 1994 (7 U.S.C. 301 note; Public Law 103– 

17 382) is amended by striking ‘‘2012’’ each place it appears 

18 in subsections (b)(1) and (c) and inserting ‘‘2018’’. 

19 (d) RESEARCH GRANTS.— 

20 (1) AUTHORIZATION OF APPROPRIATIONS.— 

21 Section 536(c) of the Equity in Educational Land22 Grant Status Act of 1994 (7 U.S.C. 301 note; Pub23 lic Law 103–382) is amended in the first sentence 

24 by striking ‘‘2012’’ and inserting ‘‘2018’’. 


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1 (2) RESEARCH GRANT REQUIREMENTS.—Sec2 tion 536(b) of the Equity in Educational Land3 Grant Status Act of 1994 (7 U.S.C. 301 note; Pub4 lic Law 103–382) is amended by striking ‘‘with at 

5 least 1 other land-grant college or university’’ and 

6 all that follows and inserting the following: ‘‘with— 

7 ‘‘(1) the Agricultural Research Service of the 

8 Department of Agriculture; or 

9 ‘‘(2) at least 1— 

10 ‘‘(A) other land-grant college or university 

11 (exclusive of another 1994 Institution); 

12 ‘‘(B) non-land-grant college of agriculture 

13 (as defined in section 1404 of the National Ag14 ricultural Research, Extension, and Teaching 

15 Policy Act of 1977 (7 U.S.C. 3103)); or 

16 ‘‘(C) cooperating forestry school (as de17 fined in that section).’’. 

18 (e) EFFECTIVE DATE.—The amendments made by 

19 subsections (a), (b), and (d)(2) take effect on October 1, 

20 2013. 

21 SEC. 7403. RESEARCH FACILITIES ACT. 

22 Section 6(a) of the Research Facilities Act (7 U.S.C. 

23 390d(a)) is amended by striking ‘‘2012’’ and inserting 

24 ‘‘2018’’. 


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1 SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RE2 SEARCH GRANT ACT. 

3 Section 2 of the Competitive, Special, and Facilities 

4 Research Grant Act (7 U.S.C. 450i) is amended— 

5 (1) in subsection (b)(11)(A)— 

6 (A) in the matter preceding clause (i), by 

7 striking ‘‘2012’’ and inserting ‘‘2018’’; and 

8 (B) in clause (i), by striking ‘‘integrated 

9 research’’ and all that follows through ‘‘; and’’ 

10 and inserting ‘‘integrated research, extension, 

11 and education activities; and’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(l) STREAMLINING GRANT APPLICATION PROC14 ESS.—Not later than 1 year after the date of enactment 

15 of this subsection, the Secretary shall submit to Congress 

16 a report that includes— 

17 ‘‘(1) an analysis of barriers that exist in the 

18 competitive grants process administered by the Na19 tional Institute of Food and Agriculture that prevent 

20 eligible institutions and organizations with limited 

21 institutional capacity from successfully applying and 

22 competing for competitive grants; and 

23 ‘‘(2) specific recommendations for future steps 

24 that the Department can take to streamline the 

25 competitive grants application process so as to reVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00941 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 move the barriers and increase the success rates of 

2 applicants described in paragraph (1).’’. 

3 SEC. 7405. ENHANCED USE LEASE AUTHORITY PILOT PRO4 GRAM UNDER DEPARTMENT OF AGRI5 CULTURE REORGANIZATION ACT OF 1994. 

6 Section 308(b)(6) of the Department of Agriculture 

7 Reorganization Act of 1994 (7 U.S.C. 3125a note; Public 

8 Law 103–354) is amended by striking subparagraph (A) 

9 and inserting the following: 

10 ‘‘(A) on September 30, 2018; or’’. 

11 SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 

12 1978. 

13 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

14 6 of the Renewable Resources Extension Act of 1978 (16 

15 U.S.C. 1675) is amended in the first sentence by striking 

16 ‘‘2012’’ and inserting ‘‘2018’’. 

17 (b) TERMINATION DATE.—Section 8 of the Renew18 able Resources Extension Act of 1978 (16 U.S.C. 1671 

19 note; Public Law 95–306) is amended by striking ‘‘2012’’ 

20 and inserting ‘‘2018’’. 

21 SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980. 

22 Section 10 of the National Aquaculture Act of 1980 

23 (16 U.S.C. 2809) is amended by striking ‘‘2012’’ each 

24 place it appears and inserting ‘‘2018’’. 


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1 SEC. 7408. BEGINNING FARMER AND RANCHER DEVELOP2 MENT PROGRAM UNDER FARM SECURITY 

3 AND RURAL INVESTMENT ACT OF 2002. 

4 Section 7405 of the Farm Security and Rural Invest5 ment Act of 2002 (7 U.S.C. 3319f) is amended— 

6 (1) in subsection (c)(8)— 

7 (A) in subparagraph (B), by striking 

8 ‘‘and’’ at the end; 

9 (B) in subparagraph (C), by striking the 

10 period at the end and inserting ‘‘; and’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(D) beginning farmers and ranchers who 

13 are veterans (as defined in section 101 of title 

14 38, United States Code).’’; and 

15 (2) by redesignating subsection (h) as sub16 section (i); 

17 (3) by inserting after subsection (g) the fol18 lowing: 

19 ‘‘(h) STATE GRANTS.— 

20 ‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In 

21 this subsection, the term ‘eligible entity’ means— 

22 ‘‘(A) an agency of a State or political sub23 division of a State; 

24 ‘‘(B) a national, State, or regional organi25 zation of agricultural producers; and 


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1 ‘‘(C) any other entity determined appro2 priate by the Secretary. 

3 ‘‘(2) GRANTS.—The Secretary shall use such 

4 sums as are necessary of funds made available to 

5 carry out this section for each fiscal year under sub6 section (i) to make grants to States, on a competi7 tive basis, which States shall use the grants to make 

8 grants to eligible entities to establish and improve 

9 farm safety programs at the local level.’’; and 

10 (4) in subsection (i) (as redesignated by para11 graph (2))— 

12 (A) in paragraph (1)— 

13 (i) in the heading, by striking ‘‘FOR

14 FISCAL YEARS 2009 THROUGH 2012’’; 

15 (ii) in subparagraph (A), by striking 

16 ‘‘and’’ at the end; 

17 (iii) in subparagraph (B), by striking 

18 the period at the end and inserting ‘‘; 

19 and’’; and 

20 (iv) by adding at the end the fol21 lowing: 

22 ‘‘(C) $17,000,000 for each of fiscal years 

23 2014 through 2018, to remain available until 

24 expended.’’; 

25 (B) in paragraph (2)— 


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1 (i) in the heading, by striking ‘‘FOR

2 FISCAL YEARS 2009 THROUGH 2012’’; and 

3 (ii) striking ‘‘2012’’ and inserting 

4 ‘‘2018’’; and 

5 (C) by striking paragraph (3). 

6 Subtitle E—Food, Conservation, 

7 and Energy Act of 2008 

8 PART I—AGRICULTURAL SECURITY 

9 SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION 

10 CENTER. 

11 Section 14112 of the Food, Conservation, and En12 ergy Act of 2008 (7 U.S.C. 8912) is amended by striking 

13 subsection (c) and inserting the following: 

14 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to carry out this sec16 tion— 

17 ‘‘(1) such sums as are necessary for each of fis18 cal years 2008 through 2013; and 

19 ‘‘(2) $2,000,000 for each of fiscal years 2014 

20 through 2018.’’. 

21 SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AG22 RICULTURAL BIOSECURITY PLANNING, PREP23 ARATION, AND RESPONSE. 

24 Section 14113 of the Food, Conservation, and En25 ergy Act of 2008 (7 U.S.C. 8913) is amended— 


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1 (1) in subsection (a)(2)— 

2 (A) by striking ‘‘such sums as may be nec3 essary’’; and 

4 (B) by striking ‘‘subsection’’ and all that 

5 follows and inserting the following: ‘‘sub6 section— 

7 ‘‘(1) such sums as are necessary for each of fis8 cal years 2008 through 2013; and 

9 ‘‘(2) $15,000,000 for each of fiscal years 2014 

10 through 2018.’’; and 

11 (2) in subsection (b)(2), by striking ‘‘is author12 ized to be appropriated to carry out this subsection’’ 

13 and all that follows and inserting the following: ‘‘are 

14 authorized to be appropriated to carry out this sub15 section— 

16 ‘‘(1) $25,000,000 for each of fiscal years 2008 

17 through 2013; and 

18 ‘‘(2) $15,000,000 for each of fiscal years 2014 

19 through 2018.’’. 

20 SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICUL21 TURAL COUNTERMEASURES. 

22 Section 14121(b) of the Food, Conservation, and En23 ergy Act of 2008 (7 U.S.C. 8921(b)) is amended by strik24 ing ‘‘is authorized to be appropriated to carry out this secVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00946 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 tion’’ and all that follows and inserting the following: ‘‘are 

2 authorized to be appropriated to carry out this section— 

3 ‘‘(1) $50,000,000 for each of fiscal years 2008 

4 through 2013; and 

5 ‘‘(2) $15,000,000 for each of fiscal years 2014 

6 through 2018.’’. 

7 SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM. 

8 Section 14122(e) of the Food, Conservation, and En9 ergy Act of 2008 (7 U.S.C. 8922(e)) is amended— 

10 (1) by striking ‘‘such sums as are necessary’’; 

11 and 

12 (2) by striking ‘‘section’’ and all that follows 

13 and inserting the following: ‘‘section— 

14 ‘‘(1) such sums as are necessary for each of fis15 cal years 2008 through 2013, to remain available 

16 until expended; and 

17 ‘‘(2) $5,000,000 for each of fiscal years 2014 

18 through 2018, to remain available until expended.’’. 

19 PART II—MISCELLANEOUS 

20 SEC. 7511. GRAZINGLANDS RESEARCH LABORATORY. 

21 Section 7502 of the Food, Conservation, and Energy 

22 Act of 2008 (Public Law 110–246; 112 Stat. 2019) is 

23 amended by striking ‘‘for the 5-year period beginning on 

24 the date of enactment of this Act’’ and inserting ‘‘until 

25 September 30, 2018’’. 


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1 SEC. 7512. BUDGET SUBMISSION AND FUNDING. 

2 Section 7506 of the Food, Conservation, and Energy 

3 Act of 2008 (7 U.S.C. 7614c) is amended— 

4 (1) in subsection (a)— 

5 (A) by striking ‘‘(a) DEFINITION OF COM6 PETITIVE PROGRAMS.—In this section, the 

7 term’’; and inserting the following: 

8 ‘‘(a) DEFINITIONS.—In this section: 

9 ‘‘(1) COMPETITIVE PROGRAMS.—The term’’; 

10 and 

11 (B) by adding at the end the following: 

12 ‘‘(2) COVERED PROGRAM.—The term ‘covered 

13 program’ means— 

14 ‘‘(A) each research program carried out by 

15 the Agricultural Research Service or the Eco16 nomic Research Service for which annual appro17 priations are requested in the annual budget 

18 submission of the President; and 

19 ‘‘(B) each competitive program (as defined 

20 in section 251(f)(1) of the Department of Agri21 culture Reorganization Act of 1994 (7 U.S.C. 

22 6971(f)(1))) carried out by the National Insti23 tute of Food and Agriculture for which annual 

24 appropriations are requested in the annual 

25 budget submission of the President. 


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1 ‘‘(3) REQUEST FOR AWARDS.—The term ‘re2 quest for awards’ means a funding announcement 

3 published by the National Institute of Food and Ag4 riculture that provides detailed information on fund5 ing opportunities at the Institute, including the pur6 pose, eligibility, restriction, focus areas, evaluation 

7 criteria, regulatory information, and instructions on 

8 how to apply for such opportunities.’’; and 

9 (2) by adding at the end the following: 

10 ‘‘(e) ADDITIONAL PRESIDENTIAL BUDGET SUBMIS11 SION REQUIREMENT.— 

12 ‘‘(1) IN GENERAL.—Each year, the President 

13 shall submit to Congress, together with the annual 

14 budget submission of the President, the information 

15 described in paragraph (2) for each funding request 

16 for a covered program. 

17 ‘‘(2) INFORMATION DESCRIBED.—The informa18 tion described in this paragraph includes— 

19 ‘‘(A) baseline information, including with 

20 respect to each covered program— 

21 ‘‘(i) the funding level for the program 

22 for the fiscal year preceding the year the 

23 annual budget submission of the President 

24 is submitted; 


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1 ‘‘(ii) the funding level requested in the 

2 annual budget submission of the President, 

3 including any increase or decrease in the 

4 funding level; and 

5 ‘‘(iii) an explanation justifying any 

6 change from the funding level specified in 

7 clause (i) to the level specified in clause 

8 (ii); 

9 ‘‘(B) with respect to each covered program 

10 that is carried out by the Economic Research 

11 Service or the Agricultural Research Service, 

12 the location and staff years of the program; 

13 ‘‘(C) the proposed funding levels to be allo14 cated to, and the expected publication date, 

15 scope, and allocation level for, each request for 

16 awards to be published under— 

17 ‘‘(i) each priority area specified in sec18 tion 2(b)(2) of the Competitive, Special, 

19 and Facilities Research Grant Act (7 

20 U.S.C. 450i(b)(2)); 

21 ‘‘(ii) each research and extension 

22 project carried out under section 1621(a) 

23 of the Food, Agriculture, Conservation, 

24 and Trade Act of 1990 (7 U.S.C. 

25 5811(a)); 


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1 ‘‘(iii) each grant awarded under sec2 tion 1672B(a) of the Food, Agriculture, 

3 Conservation, and Trade Act of 1990 (7 

4 U.S.C. 5925b(a)); 

5 ‘‘(iv) each grant awarded under sec6 tion 412(b) of the Agricultural Research, 

7 Extension, and Education Reform Act of 

8 1998 (7 U.S.C. 7632(b)); and 

9 ‘‘(v) each grant awarded under 

10 7405(c)(1) of the Farm Security and 

11 Rural Investment Act of 2002 (7 U.S.C. 

12 3319f(c)(1)); or 

13 ‘‘(D) any other information the Secretary 

14 determines will increase congressional oversight 

15 with respect to covered programs. 

16 ‘‘(f) REPORT OF THE SECRETARY OF AGRI17 CULTURE.—Each year on a date that is not later than 

18 the date on which the President submits the annual budg19 et submission, the Secretary shall submit to Congress a 

20 report containing a description of the agricultural re21 search, extension, and education activities carried out by 

22 the Federal Government during the fiscal year that imme23 diately precedes the year for which the report is submitted, 

24 including— 


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1 ‘‘(1) a review of the extent to which those ac2 tivities— 

3 ‘‘(A) are duplicative or overlap within the 

4 Department of Agriculture; or 

5 ‘‘(B) are similar to activities carried out 

6 by— 

7 ‘‘(i) other Federal agencies; 

8 ‘‘(ii) the States (including the District 

9 of Columbia, the Commonwealth of Puerto 

10 Rico, and other territories or possessions 

11 of the United States); 

12 ‘‘(iii) institutions of higher education 

13 (as defined in section 101 of the Higher 

14 Education Act of 1965 (20 U.S.C. 1001)); 

15 or 

16 ‘‘(iv) the private sector; and 

17 ‘‘(2) for each report submitted under this sec18 tion on or after January 1, 2014, a 5-year projection 

19 of national priorities with respect to agricultural re20 search, extension, and education, taking into account 

21 both domestic and international needs.’’. 

22 SEC. 7513. NATURAL PRODUCTS RESEARCH PROGRAM. 

23 Section 7525 of the Food, Conservation, and Energy 

24 Act of 2008 (7 U.S.C. 5937) is amended by striking sub25 section (e) and inserting the following: 


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1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

2 is authorized to be appropriated to carry out this section 

3 $7,000,000 for each of fiscal years 2014 through 2018.’’. 

4 SEC. 7514. SUN GRANT PROGRAM. 

5 (a) IN GENERAL.—Section 7526 of the Food, Con6 servation, and Energy Act of 2008 (7 U.S.C. 8114) is 

7 amended— 

8 (1) in subsection (a)(4)(B), by striking ‘‘the 

9 Department of Energy’’ and inserting ‘‘other appro10 priate Federal agencies (as determined by the Sec11 retary)’’; 

12 (2) in subsection (b)(1)— 

13 (A) in subparagraph (A), by striking ‘‘at 

14 South Dakota State University’’; 

15 (B) in subparagraph (B), by striking ‘‘at 

16 the University of Tennessee at Knoxville’’; 

17 (C) in subparagraph (C), by striking ‘‘at 

18 Oklahoma State University’’; 

19 (D) in subparagraph (D), by striking ‘‘at 

20 Oregon State University’’; 

21 (E) in subparagraph (E), by striking ‘‘at 

22 Cornell University’’; and 

23 (F) in subparagraph (F), by striking ‘‘at 

24 the University of Hawaii’’; 

25 (3) in subsection (c)(1)— 


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1 (A) in subparagraph (B), by striking 

2 ‘‘multistate’’ and all that follows through ‘‘tech3 nology implementation’’ and inserting ‘‘inte4 grated, multistate research, extension, and edu5 cation programs on technology development and 

6 technology implementation’’; 

7 (B) by striking subparagraph (C); and 

8 (C) by redesignating subparagraph (D) as 

9 subparagraph (C); 

10 (4) in subsection (d)— 

11 (A) in paragraph (1)— 

12 (i) by striking ‘‘gasification’’ and in13 serting ‘‘bioproducts’’; and 

14 (ii) by striking ‘‘the Department of 

15 Energy’’ and inserting ‘‘other appropriate 

16 Federal agencies’’; 

17 (B) by striking paragraph (2); 

18 (C) by redesignating paragraphs (3) and 

19 (4) as paragraphs (2) and (3), respectively; and 

20 (D) in paragraph (1), by striking ‘‘in ac21 cordance with paragraph (2)’’; and 

22 (5) in subsection (g), by striking ‘‘2012’’ and 

23 inserting ‘‘2018’’. 


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1 (b) CONFORMING AMENDMENTS.—Section 7526(f) of 

2 the Food, Conservation, and Energy Act of 2008 (7 

3 U.S.C. 8114(f)) is amended— 

4 (1) in paragraph (1), by striking ‘‘subsection 

5 (c)(1)(D)(i)’’ and inserting ‘‘subsection (c)(1)(C)(i)’’; 

6 and 

7 (2) in paragraph (2), by striking ‘‘subsection 

8 (d)(1)’’ and inserting ‘‘subsection (d)’’. 

9 Subtitle F—Miscellaneous 

10 SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RE11 SEARCH. 

12 (a) DEFINITIONS.—In this section: 

13 (1) BOARD.—The term ‘‘Board’’ means the 

14 Board of Directors described in subsection (e). 

15 (2) DEPARTMENT.—The term ‘‘Department’’ 

16 means the Department of Agriculture. 

17 (3) FOUNDATION.—The term ‘‘Foundation’’ 

18 means the Foundation for Food and Agriculture Re19 search established under subsection (b). 

20 (4) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Agriculture. 

22 (b) ESTABLISHMENT.— 

23 (1) IN GENERAL.—The Secretary shall establish 

24 a nonprofit corporation to be known as the ‘‘Foun25 dation for Food and Agriculture Research’’. 


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1 (2) STATUS.—The Foundation shall not be an 

2 agency or instrumentality of the United States Gov3 ernment. 

4 (c) PURPOSES.—The purposes of the Foundation 

5 shall be— 

6 (1) to advance the research mission of the De7 partment by supporting agricultural research activi8 ties focused on addressing key problems of national 

9 and international significance including— 

10 (A) plant health, production, and plant 

11 products; 

12 (B) animal health, production, and prod13 ucts; 

14 (C) food safety, nutrition, and health; 

15 (D) renewable energy, natural resources, 

16 and the environment; 

17 (E) agricultural and food security; 

18 (F) agriculture systems and technology; 

19 and 

20 (G) agriculture economics and rural com21 munities; and 

22 (2) to foster collaboration with agricultural re23 searchers from the Federal Government, institutions 

24 of higher education, industry, and nonprofit organi25 zations. 


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1 (d) DUTIES.— 

2 (1) IN GENERAL.—The Foundation shall— 

3 (A) award grants to, or enter into con4 tracts, memoranda of understanding, or cooper5 ative agreements with, scientists and entities, 

6 which may include agricultural research agen7 cies in the Department, university consortia, 

8 public-private partnerships, institutions of high9 er education, nonprofit organizations, and in10 dustry, to efficiently and effectively advance the 

11 goals and priorities of the Foundation; 

12 (B) in consultation with the Secretary— 

13 (i) identify existing and proposed Fed14 eral intramural and extramural research 

15 and development programs relating to the 

16 purposes of the Foundation described in 

17 subsection (c); and 

18 (ii) coordinate Foundation activities 

19 with those programs so as to minimize du20 plication of existing efforts; 

21 (C) identify unmet and emerging agricul22 tural research needs after reviewing the Road23 map for Agricultural Research, Education and 

24 Extension as required by section 7504 of the 


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1 Food, Conservation, and Energy Act of 2008 (7 

2 U.S.C. 7614a); 

3 (D) facilitate technology transfer and re4 lease of information and data gathered from the 

5 activities of the Foundation to the agricultural 

6 research community; 

7 (E) promote and encourage the develop8 ment of the next generation of agricultural re9 search scientists; and 

10 (F) carry out such other activities as the 

11 Board determines to be consistent with the pur12 poses of the Foundation. 

13 (2) AUTHORITY.—Subject to paragraph (3), the 

14 Foundation shall be the sole entity responsible for 

15 carrying out the duties enumerated in this sub16 section. 

17 (3) RELATIONSHIP TO OTHER ACTIVITIES.— 

18 The activities described in paragraph (1) shall be 

19 supplemental to any other activities at the Depart20 ment and shall not preempt any authority or respon21 sibility of the Department under another provision 

22 of law. 

23 (e) BOARD OF DIRECTORS.— 

24 (1) ESTABLISHMENT.—The Foundation shall 

25 be governed by a Board of Directors. 


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1 (2) COMPOSITION.— 

2 (A) IN GENERAL.—The Board shall be 

3 composed of appointed and ex-officio, nonvoting 

4 members. 

5 (B) EX-OFFICIO MEMBERS.—The ex-officio 

6 members of the Board shall be the following in7 dividuals or designees: 

8 (i) The Secretary. 

9 (ii) The Under Secretary of Agri10 culture for Research, Education, and Eco11 nomics. 

12 (iii) The Administrator of the Agricul13 tural Research Service. 

14 (iv) The Director of the National In15 stitute of Food and Agriculture. 

16 (v) The Director of the National 

17 Science Foundation. 

18 (C) APPOINTED MEMBERS.— 

19 (i) IN GENERAL.—The ex-officio mem20 bers of the Board under subparagraph (B) 

21 shall, by majority vote, appoint to the 

22 Board 15 individuals, of whom— 

23 (I) 8 shall be selected from a list 

24 of candidates to be provided by the 

25 National Academy of Sciences; and 


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1 (II) 7 shall be selected from lists 

2 of candidates provided by industry. 

3 (ii) REQUIREMENTS.— 

4 (I) EXPERTISE.—The ex-officio 

5 members shall ensure that a majority 

6 of the members of the Board have ac7 tual experience in agricultural re8 search and, to the extent practicable, 

9 represent diverse sectors of agri10 culture. 

11 (II) LIMITATION.—No employee 

12 of the Federal Government may serve 

13 as an appointed member of the Board 

14 under this subparagraph. 

15 (III) NOT FEDERAL EMPLOY16 MENT.—Appointment to the Board 

17 under this subparagraph shall not 

18 constitute Federal employment. 

19 (iii) AUTHORITY.—All appointed 

20 members of the Board shall be voting 

21 members. 

22 (D) CHAIR.—The Board shall, from among 

23 the members of the Board, designate an indi24 vidual to serve as Chair of the Board. 


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1 (3) INITIAL MEETING.—Not later than 60 days 

2 after the date of enactment of this Act, the Sec3 retary shall convene a meeting of the ex-officio mem4 bers of the Board— 

5 (A) to incorporate the Foundation; and 

6 (B) to appoint the members of the Board 

7 in accordance with paragraph (2)(C)(i). 

8 (4) DUTIES.— 

9 (A) IN GENERAL.—The Board shall— 

10 (i) establish bylaws for the Founda11 tion that, at a minimum, include— 

12 (I) policies for the selection of fu13 ture Board members, officers, employ14 ees, agents, and contractors of the 

15 Foundation; 

16 (II) policies, including ethical 

17 standards, for— 

18 (aa) the acceptance, solicita19 tion, and disposition of donations 

20 and grants to the Foundation; 

21 and 

22 (bb) the disposition of assets 

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1 tion or restriction, the use or re2 cipient of donated funds; 

3 (III) policies that would subject 

4 all employees, fellows, trainees, and 

5 other agents of the Foundation (in6 cluding members of the Board) to the 

7 conflict of interest standards under 

8 section 208 of title 18, United States 

9 Code; 

10 (IV) policies for writing, editing, 

11 printing, publishing, and vending of 

12 books and other materials; 

13 (V) policies for the conduct of 

14 the general operations of the Founda15 tion, including a cap on administrative 

16 expenses for recipients of a grant, 

17 contract, or cooperative agreement 

18 from the Foundation; and 

19 (VI) specific duties for the Exec20 utive Director; 

21 (ii) prioritize and provide overall di22 rection for the activities of the Foundation; 

23 (iii) evaluate the performance of the 

24 Executive Director; and 


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1 (iv) carry out any other necessary ac2 tivities regarding the Foundation. 

3 (B) ESTABLISHMENT OF BYLAWS.—In es4 tablishing bylaws under subparagraph (A)(i), 

5 the Board shall ensure that the bylaws do 

6 not— 

7 (i) reflect unfavorably on the ability of 

8 the Foundation to carry out the duties of 

9 the Foundation in a fair and objective 

10 manner; or 

11 (ii) compromise, or appear to com12 promise, the integrity of any governmental 

13 agency or program, or any officer or em14 ployee employed by or involved in a govern15 mental agency or program. 

16 (5) TERMS AND VACANCIES.— 

17 (A) TERMS.— 

18 (i) IN GENERAL.—The term of each 

19 member of the Board appointed under 

20 paragraph (2)(C) shall be 5 years. 

21 (ii) PARTIAL TERMS.—If a member of 

22 the Board does not serve the full term ap23 plicable under clause (i), the individual ap24 pointed to fill the resulting vacancy shall 


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1 be appointed for the remainder of the term 

2 of the predecessor of the individual. 

3 (iii) TRANSITION.—A member of the 

4 Board may continue to serve after the ex5 piration of the term of the member until a 

6 successor is appointed. 

7 (B) VACANCIES.—Any vacancy in the 

8 membership of the Board shall be filled in the 

9 manner in which the original position was made 

10 and shall not affect the power of the remaining 

11 members to execute the duties of the Board. 

12 (6) COMPENSATION.—Members of the Board 

13 may not receive compensation for service on the 

14 Board but may be reimbursed for travel, subsist15 ence, and other necessary expenses incurred in car16 rying out the duties of the Board. 

17 (7) MEETINGS AND QUORUM.—A majority of 

18 the members of the Board shall constitute a quorum 

19 for purposes of conducting business of the Board. 

20 (f) ADMINISTRATION.— 

21 (1) EXECUTIVE DIRECTOR.— 

22 (A) IN GENERAL.—The Board shall hire 

23 an Executive Director who shall carry out such 

24 duties and responsibilities as the Board may 

25 prescribe. 


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1 (B) SERVICE.—The Executive Director 

2 shall serve at the pleasure of the Board. 

3 (2) ADMINISTRATIVE POWERS.— 

4 (A) IN GENERAL.—In carrying out this 

5 section, the Board, acting through the Execu6 tive Director, may— 

7 (i) adopt, alter, and use a corporate 

8 seal, which shall be judicially noticed; 

9 (ii) hire, promote, compensate, and 

10 discharge 1 or more officers, employees, 

11 and agents, as may be necessary, and de12 fine the duties of the officers, employees, 

13 and agents; 

14 (iii) solicit and accept any funds, 

15 gifts, grants, devises, or bequests of real or 

16 personal property made to the Foundation, 

17 including such support from private enti18 ties; 

19 (iv) prescribe the manner in which— 

20 (I) real or personal property of 

21 the Foundation is acquired, held, and 

22 transferred; 

23 (II) general operations of the 

24 Foundation are to be conducted; and 


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1 (III) the privileges granted to the 

2 Board by law are exercised and en3 joyed; 

4 (v) with the consent of the applicable 

5 executive department or independent agen6 cy, use the information, services, and facili7 ties of the department or agency in car8 rying out this section; 

9 (vi) enter into contracts with public 

10 and private organizations for the writing, 

11 editing, printing, and publishing of books 

12 and other material; 

13 (vii) hold, administer, invest, and 

14 spend any gift, devise, or bequest of real or 

15 personal property made to the Foundation; 

16 (viii) enter into such contracts, leases, 

17 cooperative agreements, and other trans18 actions as the Board considers appropriate 

19 to conduct the activities of the Foundation; 

20 (ix) modify or consent to the modifica21 tion of any contract or agreement to which 

22 the Foundation is a party or in which the 

23 Foundation has an interest; 

24 (x) take such action as may be nec25 essary to obtain patents and licenses for 


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1 devices and procedures developed by the 

2 Foundation and employees of the Founda3 tion; 

4 (xi) sue and be sued in the corporate 

5 name of the Foundation, and complain and 

6 defend in courts of competent jurisdiction; 

7 (xii) appoint other groups of advisors 

8 as may be determined necessary to carry 

9 out the functions of the Foundation; and 

10 (xiii) exercise such other incidental 

11 powers as are necessary to carry out the 

12 duties and functions of the Foundation in 

13 accordance with this section. 

14 (B) LIMITATION.—No appointed member 

15 of the Board or officer or employee of the 

16 Foundation or of any program established by 

17 the Foundation (other than ex-officio members 

18 of the Board) shall exercise administrative con19 trol over any Federal employee. 

20 (3) RECORDS.— 

21 (A) AUDITS.—The Foundation shall— 

22 (i) provide for annual audits of the fi23 nancial condition of the Foundation; and 

24 (ii) make the audits, and all other 

25 records, documents, and other papers of 


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1 the Foundation, available to the Secretary 

2 and the Comptroller General of the United 

3 States for examination or audit. 

4 (B) REPORTS.— 

5 (i) ANNUAL REPORT ON FOUNDA6 TION.— 

7 (I) IN GENERAL.—Not later than 

8 5 months following the end of each 

9 fiscal year, the Foundation shall pub10 lish a report for the preceding fiscal 

11 year that includes— 

12 (aa) a description of Foun13 dation activities, including ac14 complishments; and 

15 (bb) a comprehensive state16 ment of the operations and finan17 cial condition of the Foundation. 

18 (II) FINANCIAL CONDITION.— 

19 Each report under subclause (I) shall 

20 include a description of all gifts or 

21 grants to the Foundation of real or 

22 personal property or money, which 

23 shall include— 

24 (aa) the source of the gifts 

25 or grants; and 


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1 (bb) any restrictions on the 

2 purposes for which the gift or 

3 grant may be used. 

4 (III) AVAILABILITY.—The Foun5 dation shall— 

6 (aa) make copies of each re7 port submitted under subclause 

8 (I) available for public inspection; 

9 and 

10 (bb) on request, provide a 

11 copy of the report to any indi12 vidual. 

13 (IV) PUBLIC MEETING.—The 

14 Board shall hold an annual public 

15 meeting to summarize the activities of 

16 the Foundation. 

17 (ii) GRANT REPORTING.—Any recipi18 ent of a grant under subsection (d)(1)(A) 

19 shall provide the Foundation with a report 

20 at the conclusion of any research or studies 

21 conducted the describes the results of the 

22 research or studies, including any data 

23 generated. 

24 (4) INTEGRITY.— 


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1 (A) IN GENERAL.—To ensure integrity in 

2 the operations of the Foundation, the Board 

3 shall develop and enforce procedures relating to 

4 standards of conduct, financial disclosure state5 ments, conflict of interest (including recusal 

6 and waiver rules), audits, and any other mat7 ters determined appropriate by the Board. 

8 (B) FINANCIAL CONFLICTS OF INTER9 EST.—Any individual who is an officer, em10 ployee, or member of the Board is prohibited 

11 from any participation in deliberations by the 

12 Foundation of a matter that would directly or 

13 predictably affect any financial interest of— 

14 (i) the individual; 

15 (ii) a relative (as defined in section 

16 109 of the Ethics in Government Act of 

17 1978 (5 U.S.C. App.)) of that individual; 

18 or 

19 (iii) a business organization or other 

20 entity in which the individual has an inter21 est, including an organization or other en22 tity with which the individual is negoti23 ating employment. 

24 (5) INTELLECTUAL PROPERTY.—The Board 

25 shall adopt written standards to govern ownership of 


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1 any intellectual property rights derived from the col2 laborative efforts of the Foundation. 

3 (6) LIABILITY.—The United States shall not be 

4 liable for any debts, defaults, acts, or omissions of 

5 the Foundation nor shall the full faith and credit of 

6 the United States extend to any obligations of the 

7 Foundation. 

8 (g) FUNDS.— 

9 (1) MANDATORY FUNDING.— 

10 (A) IN GENERAL.—On October 1, 2013, of 

11 the funds of the Commodity Credit Corporation, 

12 the Secretary shall transfer to the Foundation 

13 to carry out this section $200,000,000, to re14 main available until expended under the condi15 tions described in subparagraph (B). 

16 (B) CONDITIONS ON EXPENDITURE.—The 

17 Foundation may use the funds made available 

18 under subparagraph (A) to carry out the pur19 poses of the Foundation only to the extent that 

20 the Foundation secures an equal amount of 

21 non-Federal matching funds for each expendi22 ture. 

23 (C) PROHIBITION ON CONSTRUCTION.— 

24 None of the funds made available under sub25 paragraph (A) may be used for construction. 


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1 (2) SEPARATION OF FUNDS.—The Executive 

2 Director shall ensure that any funds received under 

3 paragraph (1) are held in separate accounts from 

4 funds received from nongovernmental entities as de5 scribed in subsection (f)(2)(A)(iii). 

6 SEC. 7602. AGRICULTURAL AND FOOD LAW RESEARCH, 

7 LEGAL TOOLS, AND INFORMATION. 

8 (a) FINDINGS.—Congress finds that— 

9 (1) the farms, ranches, and forests of the 

10 United States are impacted by a complex and rap11 idly evolving web of competition and international, 

12 Federal, State, and local laws (including regula13 tions); 

14 (2) objective, scholarly, and authoritative agri15 cultural and food law research, legal tools, and infor16 mation helps the farm, ranch, and forestry commu17 nity contribute to the strength of the United States 

18 through improved conservation, environmental pro19 tection, job creation, economic development, renew20 able energy production, outdoor recreational oppor21 tunities, and increased and diversified local and re22 gional supplies of food, fiber, and fuel; and 

23 (3) the vast agricultural community of the 

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1 sonnel, need access to agricultural and food law re2 search and information provided by an objective, 

3 scholarly, and neutral source. 

4 (b) PARTNERSHIPS.—The Secretary, acting through 

5 the National Agricultural Library, shall support the dis6 semination of objective, scholarly, and authoritative agri7 cultural and food law research, legal tools, and informa8 tion by entering into cooperative agreements with institu9 tions of higher education that on the date of enactment 

10 of this Act are carrying out objective programs for re11 search, legal tools, and information in agricultural and 

12 food law. 

13 (c) AUTHORIZATION OF APPROPRIATIONS.—For each 

14 fiscal year, the Secretary may use not more than 

15 $5,000,000 of the amounts made available to the National 

16 Agricultural Library to carry out this section. 

17 TITLE VIII—FORESTRY 

18 Subtitle A—Repeal of Certain 

19 Forestry Programs 

20 SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM. 

21 (a) REPEAL.—Section 4 of the Cooperative Forestry 

22 Assistance Act of 1978 (16 U.S.C. 2103) is repealed. 

23 (b) CONFORMING AMENDMENT.—Section 8002 of the 

24 Farm Security and Rural Investment Act of 2002 (Public 


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1 Law 107–171; 16 U.S.C. 2103 note) is amended by strik2 ing subsection (a). 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on October 1, 2013. 

5 SEC. 8002. HISPANIC-SERVING INSTITUTION AGRICUL6 TURAL LAND NATIONAL RESOURCES LEAD7 ERSHIP PROGRAM. 

8 (a) REPEAL.—Section 8402 of the Food, Conserva9 tion, and Energy Act of 2008 (16 U.S.C. 1649a) is re10 pealed. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall take effect on October 1, 2013. 

13 SEC. 8003. TRIBAL WATERSHED FORESTRY ASSISTANCE 

14 PROGRAM. 

15 (a) REPEAL.—Section 303 of the Healthy Forests 

16 Restoration Act of 2003 (16 U.S.C. 6542) is repealed. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall take effect on October 1, 2013. 


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1 Subtitle B—Reauthorization of Co2 operative Forestry Assistance 

3 Act of 1978 Programs 

4 SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR 

5 FOREST RESOURCES. 

6 Section 2A(f)(1) of the Cooperative Forestry Assist7 ance Act of 1978 (16 U.S.C. 2101a(f)(1)) is amended by 

8 striking ‘‘2012’’ and inserting ‘‘2018’’. 

9 Subtitle C—Reauthorization of 

10 Other Forestry-Related Laws 

11 SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES. 

12 Section 2371(d)(2) of the Food, Agriculture, Con13 servation, and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) 

14 is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

15 SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY. 

16 Section 2405(d) of the Global Climate Change Pre17 vention Act of 1990 (7 U.S.C. 6704(d)) is amended by 

18 striking ‘‘2012’’ and inserting ‘‘2018’’. 

19 SEC. 8203. INSECT AND DISEASE INFESTATION. 

20 Title VI of the Healthy Forests Restoration Act of 

21 2003 (16 U.S.C. 6591 et seq.) is amended by adding at 

22 the end the following: 


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1 ‘‘SEC. 602. DESIGNATION OF TREATMENT AREAS. 

2 ‘‘(a) DEFINITION OF DECLINING FOREST

3 HEALTH.—In this section, the term ‘declining forest 

4 health’ means a forest that is experiencing— 

5 ‘‘(1) substantially increased tree mortality due 

6 to insect or disease infestation; or 

7 ‘‘(2) dieback due to infestation or defoliation by 

8 insects or disease. 

9 ‘‘(b) DESIGNATION OF TREATMENT AREAS.— 

10 ‘‘(1) INITIAL AREAS.—Not later than 60 days 

11 after the date of enactment of the Agriculture Re12 form, Food, and Jobs Act of 2013, the Secretary 

13 shall, if requested by the Governor of the State, des14 ignate as part of an insect and disease treatment 

15 program 1 or more subwatersheds (sixth-level hydro16 logic units, according to the System of Hydrologic 

17 Unit Codes of the United States Geological Survey) 

18 in at least 1 national forest in each State that is ex19 periencing an insect or disease epidemic. 

20 ‘‘(2) ADDITIONAL AREAS.—After the end of the 

21 60-day period described in paragraph (1), the Sec22 retary may designate additional subwatersheds 

23 under this section as needed to address insect or dis24 ease threats. 

25 ‘‘(c) REQUIREMENTS.—To be designated a subwater26 shed under subsection (b), the subwatershed shall be— 


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1 ‘‘(1) experiencing declining forest health, based 

2 on annual forest health surveys conducted by the 

3 Secretary; 

4 ‘‘(2) at risk of experiencing substantially in5 creased tree mortality over the next 15 years due to 

6 insect or disease infestation, based on the most re7 cent National Insect and Disease Risk Map pub8 lished by the Forest Service; or 

9 ‘‘(3) in an area in which the risk of hazard 

10 trees poses an imminent risk to public infrastruc11 ture, health, or safety. 

12 ‘‘(d) TREATMENT OF AREAS.— 

13 ‘‘(1) IN GENERAL.—The Secretary may carry 

14 out priority projects on Federal land in the sub15 watersheds designated under subsection (b) to re16 duce the risk or extent of, or increase the resilience 

17 to, insect or disease infestation in the subwater18 sheds. 

19 ‘‘(2) AUTHORITY.—Any project under para20 graph (1) for which a public notice to initiate 

21 scoping is issued on or before September 30, 2018, 

22 may be carried out in accordance with subsections 

23 (b), (c), and (d) of section 102, and sections 104, 

24 105, and 106. 


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1 ‘‘(3) EFFECT.—Projects carried out under this 

2 subsection shall be considered authorized hazardous 

3 fuel reduction projects for purposes of the authori4 ties described in paragraph (2). 

5 ‘‘(4) REPORT.—Not later than September 30, 

6 2018, the Secretary shall issue a report on actions 

7 taken to carry out this subsection, including— 

8 ‘‘(A) an evaluation of the progress towards 

9 project goals; and 

10 ‘‘(B) recommendations for modifications to 

11 the projects and management treatments. 

12 ‘‘(e) TREE RETENTION.—The Secretary shall carry 

13 out projects under subsection (d) in a manner that maxi14 mizes the retention of old-growth and large trees, as ap15 propriate for the forest type, to the extent that the trees 

16 promote stands that are resilient to insects and disease. 

17 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

18 is authorized to be appropriated to carry out this section 

19 $200,000,000 for each of fiscal years 2014 through 

20 2018.’’. 

21 SEC. 8204. STEWARDSHIP END RESULT CONTRACTING 

22 PROJECTS. 

23 (a) IN GENERAL.—Title VI of the Healthy Forests 

24 Restoration Act of 2003 (16 U.S.C. 6591) (as amended 


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1 by section 8203) is amended by adding at the end the fol2 lowing: 

3 ‘‘SEC. 603. STEWARDSHIP END RESULT CONTRACTING 

4 PROJECTS. 

5 ‘‘(a) DEFINITIONS.—In this section: 

6 ‘‘(1) CHIEF.—The term ‘Chief’ means the Chief 

7 of the Forest Service. 

8 ‘‘(2) DIRECTOR.—The term ‘Director’ means 

9 the Director of the Bureau of Land Management. 

10 ‘‘(b) PROJECTS.—The Chief and the Director, via 

11 agreement or contract as appropriate, may enter into 

12 stewardship contracting projects with private persons or 

13 other public or private entities to perform services to 

14 achieve land management goals for the national forests 

15 and the public lands that meet local and rural community 

16 needs. 

17 ‘‘(c) LAND MANAGEMENT GOALS.—The land man18 agement goals of a project under subsection (b) may in19 clude— 

20 ‘‘(1) road and trail maintenance or obliteration 

21 to restore or maintain water quality; 

22 ‘‘(2) soil productivity, habitat for wildlife and 

23 fisheries, or other resource values; 


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1 ‘‘(3) setting of prescribed fires to improve the 

2 composition, structure, condition, and health of 

3 stands or to improve wildlife habitat; 

4 ‘‘(4) removing vegetation or other activities to 

5 promote healthy forest stands, reduce fire hazards, 

6 or achieve other land management objectives; 

7 ‘‘(5) watershed restoration and maintenance; 

8 ‘‘(6) restoration and maintenance of wildlife 

9 and fish; or 

10 ‘‘(7) control of noxious and exotic weeds and re11 establishing native plant species. 

12 ‘‘(d) AGREEMENTS OR CONTRACTS.— 

13 ‘‘(1) PROCUREMENT PROCEDURE.—A source 

14 for performance of an agreement or contract under 

15 subsection (b) shall be selected on a best-value basis, 

16 including consideration of source under other public 

17 and private agreements or contracts. 

18 ‘‘(2) CONTRACT FOR SALE OF PROPERTY.—A 

19 contract entered into under this section may, at the 

20 discretion of the Secretary of Agriculture, be consid21 ered a contract for the sale of property under such 

22 terms as the Secretary may prescribe without regard 

23 to any other provision of law. 

24 ‘‘(3) TERM.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the Chief and the Director 

3 may enter into a contract under subsection (b) 

4 in accordance with section 3903 of title 41, 

5 United States Code. 

6 ‘‘(B) MAXIMUM.—The period of the con7 tract under subsection (b) may exceed 5 years 

8 but may not exceed 10 years. 

9 ‘‘(4) OFFSETS.— 

10 ‘‘(A) IN GENERAL.—The Chief and the Di11 rector may apply the value of timber or other 

12 forest products removed as an offset against the 

13 cost of services received under the agreement or 

14 contract described in subsection (b). 

15 ‘‘(B) METHODS OF APPRAISAL.—The value 

16 of timber or other forest products used as an 

17 offset under subparagraph (A)— 

18 ‘‘(i) shall be determined using appro19 priate methods of appraisal commensurate 

20 with the quantity of products to be re21 moved; and 

22 ‘‘(ii) may— 

23 ‘‘(I) be determined using a unit 

24 of measure appropriate to the con25 tracts; and 


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1 ‘‘(II) may include valuing prod2 ucts on a per-acre basis. 

3 ‘‘(5) RELATION TO OTHER LAWS.—Notwith4 standing subsections (d) and (g) of section 14 of the 

5 National Forest Management Act of 1976 (16 

6 U.S.C. 472a), the Chief may enter into an agree7 ment or contract under subsection (b). 

8 ‘‘(6) CONTRACTING OFFICER.—Notwithstanding 

9 any other provision of law, the Secretary or the Sec10 retary of the Interior may determine the appropriate 

11 contracting officer to enter into and administer an 

12 agreement or contract under subsection (b). 

13 ‘‘(e) RECEIPTS.— 

14 ‘‘(1) IN GENERAL.—The Chief and the Director 

15 may collect monies from an agreement or contract 

16 under subsection (b) if the collection is a secondary 

17 objective of negotiating the contract that will best 

18 achieve the purposes of this section. 

19 ‘‘(2) USE.—Monies from an agreement or con20 tract under subsection (b)— 

21 ‘‘(A) may be retained by the Chief and the 

22 Director; and 

23 ‘‘(B) shall be available for expenditure 

24 without further appropriation at the project site 


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1 from which the monies are collected or at an2 other project site. 

3 ‘‘(3) RELATION TO OTHER LAWS.— 

4 ‘‘(A) IN GENERAL.—Notwithstanding any 

5 other provision of law, the value of services re6 ceived by the Chief or the Director under a 

7 stewardship contract project conducted under 

8 this section, and any payments made or re9 sources provided by the contractor, Chief, or 

10 Director shall not be considered monies received 

11 from the National Forest System or the public 

12 lands. 

13 ‘‘(B) KNUTSON-VANDERBERG ACT.—The 

14 Act of June 9, 1930 (commonly known as the 

15 ‘Knutson-Vanderberg Act’) (16 U.S.C. 576 et 

16 seq.) shall not apply to any agreement or con17 tract under subsection (b). 

18 ‘‘(f) COSTS OF REMOVAL.—Notwithstanding the fact 

19 that a contractor did not harvest the timber, the Chief 

20 may collect deposits from a contractor covering the costs 

21 of removal of timber or other forest products under— 

22 ‘‘(1) the Act of August 11, 1916 (16 U.S.C. 

23 490); and 

24 ‘‘(2) the Act of June 30, 1914 (16 U.S.C. 498). 

25 ‘‘(g) PERFORMANCE AND PAYMENT GUARANTEES.— 


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1 ‘‘(1) IN GENERAL.—The Chief and the Director 

2 may require performance and payment bonds under 

3 sections 28.103–2 and 28.103–3 of the Federal Ac4 quisition Regulation, in an amount that the con5 tracting officer considers sufficient to protect the in6 vestment in receipts by the Federal Government 

7 generated by the contractor from the estimated 

8 value of the forest products to be removed under a 

9 contract under subsection (b). 

10 ‘‘(2) EXCESS OFFSET VALUE.—If the offset 

11 value of the forest products exceeds the value of the 

12 resource improvement treatments, the Chief and the 

13 Director may— 

14 ‘‘(A) collect any residual receipts under the 

15 Act of June 9, 1930 (commonly known as the 

16 ‘Knutson-Vanderberg Act’) (16 U.S.C. 576 et 

17 seq.); and 

18 ‘‘(B) apply the excess to other authorized 

19 stewardship projects. 

20 ‘‘(h) MONITORING AND EVALUATION.— 

21 ‘‘(1) IN GENERAL.—The Chief and the Director 

22 shall establish a multiparty monitoring and evalua23 tion process that accesses the stewardship con24 tracting projects conducted under this section. 


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1 ‘‘(2) PARTICIPANTS.—Other than the Chief and 

2 Director, participants in the process described in 

3 paragraph (1) may include— 

4 ‘‘(A) any cooperating governmental agen5 cies, including tribal governments; and 

6 ‘‘(B) any other interested groups or indi7 viduals. 

8 ‘‘(i) REPORTING.—Not later than 1 year after the 

9 date of enactment of this section, and annually thereafter, 

10 the Chief and the Director shall report to the Committee 

11 on Agriculture, Nutrition, and Forestry of the Senate and 

12 the Committee on Agriculture of the House of Representa13 tives on— 

14 ‘‘(1) the status of development, execution, and 

15 administration of agreements or contracts under 

16 subsection (b); 

17 ‘‘(2) the specific accomplishments that have re18 sulted; and 

19 ‘‘(3) the role of local communities in the devel20 opment of agreements or contract plans.’’. 

21 (b) CONFORMING AMENDMENT.—Section 347 of the 

22 Department of the Interior and Related Agencies Appro23 priations Act, 1999 (16 U.S.C. 2104 note; Public Law 

24 105–277) is repealed. 


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1 SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM. 

2 (a) DEFINITION OF ACREAGE OWNED BY INDIAN

3 TRIBES.—Section 502(e)(3) of the Healthy Forests Res4 toration Act (16 U.S.C. 6572(e)(3)) is amended— 

5 (1) in subparagraph (C), by striking ‘‘subpara6 graphs (A) and (B)’’ and inserting ‘‘clauses (i) and 

7 (ii)’’; 

8 (2) by redesignating subparagraphs (A) through 

9 (C) as clauses (i) through (iii), respectively, and in10 denting appropriately; and 

11 (3) by striking ‘‘In the case of’’ and inserting 

12 the following: 

13 ‘‘(A) DEFINITION OF ACREAGE OWNED BY

14 INDIAN TRIBES.—In this paragraph, the term 

15 ‘acreage owned by Indian tribes’ includes— 

16 ‘‘(i) land that is held in trust by the 

17 United States for Indian tribes or indi18 vidual Indians; 

19 ‘‘(ii) land, the title to which is held by 

20 Indian tribes or individual Indians subject 

21 to Federal restrictions against alienation 

22 or encumbrance; 

23 ‘‘(iii) land that is subject to rights of 

24 use, occupancy, and benefit of certain In25 dian tribes; 


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1 ‘‘(iv) land that is held in fee title by 

2 an Indian tribe; 

3 ‘‘(v) land that is owned by a native 

4 corporation formed under section 17 of the 

5 Act of June 18, 1934 (commonly known as 

6 the ‘Indian Reorganization Act’) (25 

7 U.S.C. 477) or section 8 of the Alaska Na8 tive Claims Settlement Act (43 U.S.C. 

9 1607); or 

10 ‘‘(vi) a combination of 1 or more 

11 types of land described in clauses (i) 

12 through (v). 

13 ‘‘(B) ENROLLMENT OF ACREAGE.—In the 

14 case of’’. 

15 (b) CHANGE IN FUNDING SOURCE FOR HEALTHY

16 FORESTS RESERVE PROGRAM.—Section 508 of the 

17 Healthy Forests Restoration Act of 2003 (16 U.S.C. 

18 6578) is amended— 

19 (1) in subsection (a), by striking ‘‘IN GEN20 ERAL’’ and inserting ‘‘FISCAL YEARS 2009 

21 THROUGH 2013’’; 

22 (2) by redesignating subsection (b) as sub23 section (d); and 

24 (3) by inserting after subsection (a) the fol25 lowing: 


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1 ‘‘(b) FISCAL YEARS 2014 THROUGH 2018.—There is 

2 authorized to be appropriated to the Secretary of Agri3 culture to carry out this section $9,750,000 for each of 

4 fiscal years 2014 through 2018. 

5 ‘‘(c) ADDITIONAL SOURCE OF FUNDS.—In addition 

6 to funds appropriated pursuant to the authorization of ap7 propriations in subsection (b) for a fiscal year, the Sec8 retary may use such amount of the funds appropriated 

9 for that fiscal year to carry out the Soil Conservation and 

10 Domestic Allotment Act (16 U.S.C. 590a et seq.) as the 

11 Secretary determines necessary to cover the cost of tech12 nical assistance, management, and enforcement respon13 sibilities for land enrolled in the healthy forests reserve 

14 program pursuant to subsections (a) and (b) of section 

15 504.’’. 

16 Subtitle D—Miscellaneous 

17 Provisions 

18 SEC. 8301. MCINTIRE-STENNIS COOPERATIVE FORESTRY 

19 ACT. 

20 (a) 1890 WAIVERS.—Section 4 of Public Law 87– 

21 788 (commonly known as the ‘‘McIntire-Stennis Coopera22 tive Forestry Act’’) (16 U.S.C. 582a–3) is amended by 

23 inserting ‘‘The matching funds requirement shall not be 

24 applicable to eligible 1890 Institutions (as defined in sec25 tion 2 of the Agricultural Research, Extension, and EduVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00988 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 cation Reform Act of 1998 (7 U.S.C. 7601)) if the alloca2 tion is below $200,000.’’ before ‘‘The Secretary is author3 ized’’ in the second sentence. 

4 (b) PARTICIPATION.—Section 8 of Public Law 87– 

5 788 (commonly known as the ‘‘McIntire-Stennis Coopera6 tive Forestry Act’’) (16 U.S.C. 582a–7) is amended by 

7 inserting ‘‘the Federated States of Micronesia, American 

8 Samoa, the Northern Mariana Islands, the District of Co9 lumbia,’’ before ‘‘and Guam’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section take effect on October 1, 2013. 

12 SEC. 8302. REVISION OF STRATEGIC PLAN FOR FOREST IN13 VENTORY AND ANALYSIS. 

14 (a) REVISION REQUIRED.—Not later than 180 days 

15 after the date of enactment of this Act, the Secretary of 

16 Agriculture shall revise the strategic plan for forest inven17 tory and analysis initially prepared pursuant to section 

18 3(e) of the Forest and Rangeland Renewable Resources 

19 Research Act of 1978 (16 U.S.C. 1642(e)) to address the 

20 requirements imposed by subsection (b). 

21 (b) ELEMENTS OF REVISED STRATEGIC PLAN.—In 

22 revising the strategic plan, the Secretary of Agriculture 

23 shall describe in detail the organization, procedures, and 

24 funding needed to achieve each of the following: 


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1 (1) Complete the transition to a fully 

2 annualized forest inventory program and include in3 ventory and analysis of interior Alaska. 

4 (2) Implement an annualized inventory of trees 

5 in urban settings, including the status and trends of 

6 trees and forests, and assessments of their eco7 system services, values, health, and risk to pests and 

8 diseases. 

9 (3) Report information on renewable biomass 

10 supplies and carbon stocks at the local, State, re11 gional, and national level, including by ownership 

12 type. 

13 (4) Engage State foresters and other users of 

14 information from the forest inventory and analysis 

15 in reevaluating the list of core data variables col16 lected on forest inventory and analysis plots with an 

17 emphasis on demonstrated need. 

18 (5) Improve the timeliness of the timber prod19 uct output program and accessibility of the 

20 annualized information on that database. 

21 (6) Foster greater cooperation among the forest 

22 inventory and analysis program, research station 

23 leaders, and State foresters and other users of infor24 mation from the forest inventory and analysis. 


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1 (7) Availability of and access to non-Federal re2 sources to improve information analysis and infor3 mation management. 

4 (8) Collaborate with the Natural Resources 

5 Conservation Service, National Aeronautics and 

6 Space Administration, National Oceanic and Atmos7 pheric Administration, and United States Geological 

8 Survey to integrate remote sensing, spatial analysis 

9 techniques, and other new technologies in the forest 

10 inventory and analysis program. 

11 (9) Understand and report on changes in land 

12 cover and use. 

13 (10) Expand existing programs to promote sus14 tainable forest stewardship through increased under15 standing, in partnership with other Federal agencies, 

16 of the over 10 million family forest owners, their de17 mographics, and the barriers to forest stewardship. 

18 (11) Implement procedures to improve the sta19 tistical precision of estimates at the sub-State level. 

20 (c) SUBMISSION OF REVISED STRATEGIC PLAN.— 

21 The Secretary of Agriculture shall submit the revised stra22 tegic plan to the Committee on Agriculture of the House 

23 of Representatives and the Committee on Agriculture, Nu24 trition, and Forestry of the Senate. 


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1 SEC. 8303. REIMBURSEMENT OF FIRE FUNDS. 

2 (a) DEFINITION OF STATE.—In this section, the term 

3 ‘‘State’’ means— 

4 (1) a State; and 

5 (2) the Commonwealth of Puerto Rico. 

6 (b) IN GENERAL.—If a State seeks reimbursement 

7 for amounts expended for resources and services provided 

8 to another State for the management and suppression of 

9 a wildfire, the Secretary of Agriculture, subject to sub10 sections (c) and (d)— 

11 (1) may accept the reimbursement amounts 

12 from the other State; and 

13 (2) shall pay those amounts to the State seek14 ing reimbursement. 

15 (c) MUTUAL ASSISTANCE AGREEMENT.—As a condi16 tion of seeking and providing reimbursement under sub17 section (b), the State seeking reimbursement and the 

18 State providing reimbursement must each have a mutual 

19 assistance agreement with the Forest Service or another 

20 Federal agency for providing and receiving wildfire man21 agement and suppression resources and services. 

22 (d) TERMS AND CONDITIONS.—The Secretary of Ag23 riculture may prescribe the terms and conditions deter24 mined to be necessary to carry out subsection (b). 

25 (e) EFFECT ON PRIOR REIMBURSEMENTS.—Any ac26 ceptance of funds or reimbursements made by the SecVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00992 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 retary of Agriculture before the date of enactment of this 

2 Act that otherwise would have been authorized under this 

3 section shall be considered to have been made in accord4 ance with this section. 

5 TITLE IX—ENERGY 

6 SEC. 9001. DEFINITIONS. 

7 Section 9001 of the Farm Security and Rural Invest8 ment Act of 2002 (7 U.S.C. 8101) is amended— 

9 (1) by redesignating paragraphs (9) through 

10 (12) and (13) and (14) as paragraphs (10) through 

11 (13) and (15) and (16) respectively; 

12 (2) by inserting after paragraph (8) the fol13 lowing: 

14 ‘‘(9) FOREST PRODUCT.—The term ‘forest 

15 product’ means a product made from materials de16 rived from the practice of forestry or the manage17 ment of growing timber, including— 

18 ‘‘(A) pulp, paper, paperboard, pellets, lum19 ber, and wood products; and 

20 ‘‘(B) any recycled products derived from 

21 forest materials.’’; and 

22 (3) by inserting after paragraph (13) (as redes23 ignated by paragraph (1)) the following: 

24 ‘‘(14) RENEWABLE CHEMICAL.—The term ‘re25 newable chemical’ means a monomer, polymer, plasVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 00993 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 tic, formulated product, or chemical substance pro2 duced from renewable biomass.’’. 

3 SEC. 9002. BIOBASED MARKETS PROGRAM. 

4 (a) IN GENERAL.—Section 9002 of the Farm Secu5 rity and Rural Investment Act of 2002 (7 U.S.C. 8102) 

6 is amended— 

7 (1) in subsection (a)— 

8 (A) in paragraph (2)(A)(i)— 

9 (i) in subclause (I), by striking ‘‘and’’ 

10 at the end; 

11 (ii) in subclause (II)(bb), by striking 

12 the period at the end and inserting ‘‘; 

13 and’’; and 

14 (iii) by adding at the end the fol15 lowing: 

16 ‘‘(III) establish a targeted 

17 biobased-only procurement require18 ment under which the procuring agen19 cy shall issue a certain number of 

20 biobased-only contracts when the pro21 curing agency is purchasing products, 

22 or purchasing services that include the 

23 use of products, that are included in 

24 a biobased product category des25 ignated by the Secretary.’’; and 


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1 (B) in paragraph (3)— 

2 (i) in subparagraph (B)— 

3 (I) in clause (v), by inserting ‘‘as 

4 determined to be necessary by the 

5 Secretary based on the availability of 

6 data,’’ before ‘‘provide information’’; 

7 (II) by redesignating clauses (v) 

8 and (vi) as clauses (vii) and (viii), re9 spectively; and 

10 (III) by inserting after clause (iv) 

11 the following: 

12 ‘‘(v) require reporting of quantities 

13 and types of biobased products purchased 

14 by procuring agencies; 

15 ‘‘(vi) focus on products that meet the 

16 biobased content requirements, including 

17 forest products, that apply an innovative 

18 approach to growing, harvesting, sourcing, 

19 procuring, processing, manufacturing, or 

20 application of biobased products regardless 

21 of the date of entry of the products into 

22 the marketplace;’’; and 

23 (ii) by adding at the end the fol24 lowing: 


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1 ‘‘(F) REQUIRED DESIGNATIONS.—Not 

2 later than 1 year after the date of enactment of 

3 this subparagraph, the Secretary shall begin to 

4 designate intermediate ingredients or feedstocks 

5 and assembled and finished biobased products 

6 in the guidelines issued under this paragraph.’’; 

7 (2) in subsection (b)— 

8 (A) in paragraph (3)— 

9 (i) by striking ‘‘The Secretary’’ and 

10 inserting the following: 

11 ‘‘(A) IN GENERAL.—The Secretary’’; and 

12 (ii) by adding at the end the fol13 lowing: 

14 ‘‘(B) AUDITING AND COMPLIANCE.—The 

15 Secretary may carry out such auditing and 

16 compliance activities as the Secretary deter17 mines to be necessary to ensure compliance 

18 with subparagraph (A).’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(4) ASSEMBLED AND FINISHED PRODUCTS.— 

21 Not later than 1 year after the date of enactment 

22 of this paragraph, the Secretary shall begin issuing 

23 criteria for determining which assembled and fin24 ished products may qualify to receive the label under 

25 paragraph (1).’’; 


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1 (3) by redesignating subsections (d), (e), (f), 

2 (g), and (h) as subsections (e), (f), (g), (i), and (j), 

3 respectively; 

4 (4) by inserting after subsection (c) the fol5 lowing: 

6 ‘‘(d) OUTREACH, EDUCATION, AND PROMOTION.— 

7 ‘‘(1) IN GENERAL.—The Secretary may engage 

8 in outreach, educational, and promotional activities 

9 intended to increase knowledge, awareness, and ben10 efits of biobased products. 

11 ‘‘(2) AUTHORIZED ACTIVITIES.—In carrying 

12 out this subsection, the Secretary may— 

13 ‘‘(A) conduct consumer education and out14 reach (including consumer and awareness sur15 veys); 

16 ‘‘(B) conduct outreach to and support for 

17 State and local governments interested in im18 plementing biobased purchasing programs; 

19 ‘‘(C) partner with industry and nonprofit 

20 groups to produce educational and outreach 

21 materials and conduct educational and outreach 

22 events; 

23 ‘‘(D) sponsor special conferences and 

24 events to bring together buyers and sellers of 

25 biobased products; and 


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1 ‘‘(E) support pilot and demonstration 

2 projects.’’; 

3 (5) in subsection (h) (as redesignated by para4 graph (3))— 

5 (A) in paragraph (2)— 

6 (i) in the matter preceding subpara7 graph (A) by striking ‘‘The report’’ and in8 serting ‘‘Each report under paragraph 

9 (1)’’; 

10 (ii) in subparagraph (A), by striking 

11 ‘‘and’’ at the end; 

12 (iii) in subparagraph (B)(ii), by strik13 ing the period at the end and inserting a 

14 semicolon; and 

15 (iv) by adding at the end the fol16 lowing: 

17 ‘‘(C) the progress made by other Federal 

18 agencies in compliance with the biobased pro19 curement requirements, including the quantity 

20 of purchases made; and 

21 ‘‘(D) the status of outreach, educational, 

22 and promotional activities carried out by the 

23 Secretary under subsection (d), including the 

24 attainment of specific milestones and overall re25 sults.’’; and 


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1 (B) by adding at the end the following: 

2 ‘‘(3) ECONOMIC IMPACT STUDY AND REPORT.— 

3 ‘‘(A) IN GENERAL.—The Secretary shall 

4 conduct a study to assess the economic impact 

5 of the biobased products industry, including— 

6 ‘‘(i) the quantity of biobased products 

7 sold; 

8 ‘‘(ii) the value of the biobased prod9 ucts; 

10 ‘‘(iii) the quantity of jobs created; 

11 ‘‘(iv) the quantity of petroleum dis12 placed; 

13 ‘‘(v) other environmental benefits; and 

14 ‘‘(vi) areas in which the use or manu15 facturing of biobased products could be 

16 more effectively used, including identifying 

17 any technical and economic obstacles and 

18 recommending how those obstacles can be 

19 overcome. 

20 ‘‘(B) REPORT.—Not later than 180 days 

21 after the date of enactment of this subpara22 graph, the Secretary shall submit to Congress a 

23 report describing the results of the study con24 ducted under subparagraph (A).’’; 


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1 (6) by inserting after subsection (g) (as redesig2 nated by paragraph (3)) the following: 

3 ‘‘(h) FOREST PRODUCTS LABORATORY COORDINA4 TION.—In determining whether products are eligible for 

5 the ‘USDA Certified Biobased Product’ label, the Sec6 retary (acting through the Forest Products Laboratory) 

7 shall provide appropriate technical and other assistance to 

8 the program and applicants for forest products.’’; and 

9 (7) in subsection (j) (as redesignated by para10 graph (3))— 

11 (A) in the heading of paragraph (1), by in12 serting ‘‘FOR FISCAL YEARS 2008 THROUGH

13 2012’’ after ‘‘FUNDING’’; 

14 (B) in the heading of paragraph (2), by in15 serting ‘‘FOR FISCAL YEARS 2009 THROUGH

16 2013’’ after ‘‘FUNDING’’; and 

17 (C) by adding at the end the following: 

18 ‘‘(3) FISCAL YEARS 2014 THROUGH 2018.— 

19 There is authorized to be appropriated to carry out 

20 this section $2,000,000 for each of fiscal years 2014 

21 through 2018. 

22 ‘‘(4) MANDATORY FUNDING FOR FISCAL YEARS

23 2014 THROUGH 2018.—Of the funds of the Com24 modity Credit Corporation, the Secretary shall use 


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1 to carry out this section $3,000,000 for each of fis2 cal years 2014 through 2018.’’. 

3 (b) CONFORMING AMENDMENT.—Section 

4 944(c)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 

5 16253(c)(2)(A)) is amended by striking ‘‘section 

6 9002(h)(1)’’ and inserting ‘‘section 9002(b)’’. 

7 SEC. 9003. BIOREFINERY, RENEWABLE CHEMICAL, AND 

8 BIOBASED PRODUCT MANUFACTURING AS9 SISTANCE. 

10 (a) PROGRAM ADJUSTMENTS.— 

11 (1) IN GENERAL.—Section 9003 of the Farm 

12 Security and Rural Investment Act of 2002 (7 

13 U.S.C. 8103) is amended— 

14 (A) in the section heading, by inserting ‘‘, 

15 RENEWABLE CHEMICAL, AND BIOBASED

16 PRODUCT MANUFACTURING’’ after ‘‘BIO17 REFINERY’’; 

18 (B) in subsection (a), in the matter pre19 ceding paragraph (1), by inserting ‘‘renewable 

20 chemicals, and biobased product manufac21 turing’’ after ‘‘advanced biofuels,’’; 

22 (C) in subsection (b)— 

23 (i) by redesignating paragraphs (1) 

24 and (2) as paragraphs (2) and (3), respec25 tively; and 


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1 (ii) by inserting before paragraph (2) 

2 (as so redesignated) the following: 

3 ‘‘(1) BIOBASED PRODUCT MANUFACTURING.— 

4 The term ‘biobased product manufacturing’ means 

5 development, construction, and retrofitting of tech6 nologically new commercial-scale processing and 

7 manufacturing equipment and required facilities that 

8 will be used to convert renewable chemicals and 

9 other biobased outputs of biorefineries into end-user 

10 products on a commercial scale.’’; and 

11 (D) in subsection (c)— 

12 (i) in paragraph (1), by striking 

13 ‘‘and’’ at the end; 

14 (ii) in paragraph (2), by striking the 

15 period at the end and inserting ‘‘; and’’; 

16 and 

17 (iii) by adding at the end the fol18 lowing: 

19 ‘‘(3) grants and loan guarantees to fund the de20 velopment and construction of renewable chemical 

21 and biobased product manufacturing facilities.’’. 

22 (2) EFFECTIVE DATE.—The amendments made 

23 by paragraph (1) shall take effect on October 1, 

24 2013. 


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1 (b) FUNDING.—Section 9003(h) of the Farm Secu2 rity and Rural Investment Act of 2002 (7 U.S.C. 8103(h)) 

3 is amended— 

4 (1) by striking paragraph (1) and inserting the 

5 following: 

6 ‘‘(1) MANDATORY FUNDING.— 

7 ‘‘(A) IN GENERAL.—Subject to subpara8 graph (B), of the funds of the Commodity 

9 Credit Corporation, the Secretary shall use for 

10 the cost of loan guarantees under this section, 

11 to remain available until expended— 

12 ‘‘(i) $100,000,000 for fiscal year 

13 2014; and 

14 ‘‘(ii) $58,000,000 for each of fiscal 

15 years 2015 and 2016. 

16 ‘‘(B) BIOBASED PRODUCT MANUFAC17 TURING.—Of the total amount of funds made 

18 available for fiscal years 2014 and 2015 under 

19 subparagraph (A), the Secretary use for the 

20 cost of loan guarantees under this section not 

21 more than $25,000,000 to promote biobased 

22 product manufacturing.’’; and 

23 (2) in paragraph (2), by striking ‘‘2013’’ and 

24 inserting ‘‘2018’’. 


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1 SEC. 9004. BIOENERGY PROGRAM FOR ADVANCED 

2 BIOFUELS. 

3 Section 9005(g) of the Farm Security and Rural In4 vestment Act of 2002 (7 U.S.C. 8105(g)) is amended— 

5 (1) in the heading of paragraph (1), by insert6 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

7 ‘‘FUNDING’’; 

8 (2) in the heading of paragraph (2), by insert9 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ after 

10 ‘‘FUNDING’’; 

11 (3) by redesignating paragraph (3) as para12 graph (4); and 

13 (4) by inserting after paragraph (2) the fol14 lowing: 

15 ‘‘(3) FISCAL YEARS 2014 THROUGH 2018.— 

16 There is authorized to be appropriated to carry out 

17 this section $20,000,000 for each of fiscal years 

18 2014 through 2018.’’. 

19 SEC. 9005. BIODIESEL FUEL EDUCATION PROGRAM. 

20 Section 9006(d) of the Farm Security and Rural In21 vestment Act of 2002 (7 U.S.C. 8106(d)) is amended— 

22 (1) in paragraph (1)— 

23 (A) in the heading, by striking ‘‘FISCAL

24 YEARS 2009 THROUGH 2012’’ and inserting 

25 ‘‘MANDATORY FUNDING’’ ; and 


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1 (B) by striking ‘‘2012’’ and inserting 

2 ‘‘2018’’; and 

3 (2) in paragraph (2), by striking ‘‘fiscal year 

4 2013’’ and inserting ‘‘each of fiscal years 2014 

5 through 2018’’. 

6 SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM. 

7 (a) PROGRAM ADJUSTMENTS.— 

8 (1) IN GENERAL.—Section 9007 of the Farm 

9 Security and Rural Investment Act of 2002 (7 

10 U.S.C. 8107) is amended— 

11 (A) in subsection (b)(2)— 

12 (i) in subparagraph (C), by striking 

13 ‘‘and’’ at the end; 

14 (ii) by redesignating subparagraph 

15 (D) as subparagraph (E); and 

16 (iii) by inserting after subparagraph 

17 (C) the following: 

18 ‘‘(D) a council (as defined in section 1528 

19 of the Agriculture and Food Act of 1981 (16 

20 U.S.C. 3451)); and’’; and 

21 (B) in subsection (c)— 

22 (i) in paragraph (1)(A), by inserting 

23 ‘‘, such as for agricultural and associated 

24 residential purposes’’ after ‘‘electricity’’; 

25 (ii) by striking paragraph (3); 


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1 (iii) by redesignating paragraph (4) as 

2 paragraph (3); 

3 (iv) in paragraph (3) (as so redesig4 nated), by striking subparagraph (A) and 

5 inserting the following: 

6 ‘‘(A) GRANTS.—The amount of a grant 

7 under this subsection shall not exceed the lesser 

8 of— 

9 ‘‘(i) $500,000; and 

10 ‘‘(ii) 25 percent of the cost of the ac11 tivity carried out using funds from the 

12 grant.’’; and 

13 (v) by adding at the end the following: 

14 ‘‘(4) TIERED APPLICATION PROCESS.— 

15 ‘‘(A) IN GENERAL.—In providing loan 

16 guarantees and grants under this subsection, 

17 the Secretary shall use a 3-tiered application 

18 process that reflects the size of proposed 

19 projects in accordance with this paragraph. 

20 ‘‘(B) TIER 1.—The Secretary shall estab21 lish a separate application process for projects 

22 for which the cost of the activity funded under 

23 this subsection is not more than $80,000. 

24 ‘‘(C) TIER 2.—The Secretary shall estab25 lish a separate application process for projects 


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1 for which the cost of the activity funded under 

2 this subsection is greater than $80,000 but less 

3 than $200,000. 

4 ‘‘(D) TIER 3.—The Secretary shall estab5 lish a separate application process for projects 

6 for which the cost of the activity funded under 

7 this subsection is equal to or greater than 

8 $200,000. 

9 ‘‘(E) APPLICATION PROCESS.—The Sec10 retary shall establish an application, evaluation, 

11 and oversight process that is the most sim12 plified for tier I projects and more comprehen13 sive for each subsequent tier.’’. 

14 (2) EFFECTIVE DATE.—The amendments made 

15 by paragraph (1) shall take effect on October 1, 

16 2013. 

17 (b) FUNDING.—Section 9007(g) of the Farm Secu18 rity and Rural Investment Act of 2002 (7 U.S.C. 8107(g)) 

19 is amended— 

20 (1) in the heading of paragraph (1), by insert21 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

22 ‘‘FUNDING’’; 

23 (2) in the heading of paragraph (2), by insert24 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

25 ‘‘FUNDING’’; 


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1 (3) in the heading of paragraph (3), by insert2 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ after 

3 ‘‘FUNDING’’; and 

4 (4) by adding at the end the following: 

5 ‘‘(4) FISCAL YEARS 2014 THROUGH 2018.— 

6 There is authorized to be appropriated to carry out 

7 this section $20,000,000 for each of fiscal years 

8 2014 through 2018. 

9 ‘‘(5) MANDATORY FUNDING FOR FISCAL YEARS

10 2014 THROUGH 2018.—Of the funds of the Com11 modity Credit Corporation, the Secretary shall use 

12 to carry out this section $68,200,000 for each of fis13 cal years 2014 through 2018.’’. 

14 SEC. 9007. BIOMASS RESEARCH AND DEVELOPMENT. 

15 Section 9008(h) of the Farm Security and Rural In16 vestment Act of 2002 (7 U.S.C. 8108(h)) is amended— 

17 (1) in the heading of paragraph (1), by insert18 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

19 ‘‘FUNDING’’; 

20 (2) in the heading of paragraph (2), by insert21 ing ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ after 

22 ‘‘FUNDING’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(3) FISCAL YEARS 2014 THROUGH 2018.— 

25 There is authorized to be appropriated to carry out 


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1 this section $30,000,000 for each of fiscal years 

2 2014 through 2018. 

3 ‘‘(4) MANDATORY FUNDING FOR FISCAL YEARS

4 2014 THROUGH 2018.—Of the funds of the Com5 modity Credit Corporation, the Secretary shall use 

6 to carry out this section $26,000,000 for each of fis7 cal years 2014 through 2018.’’. 

8 SEC. 9008. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO9 ENERGY PRODUCERS. 

10 Section 9010(b) of the Farm Security and Rural In11 vestment Act of 2002 (7 U.S.C. 8110(b)) is amended— 

12 (1) in paragraph (1)(A), by striking ‘‘2013’’ 

13 and inserting ‘‘2018’’; and 

14 (2) in paragraph (2)(A), by striking ‘‘2013’’ 

15 and inserting ‘‘2018’’. 

16 SEC. 9009. BIOMASS CROP ASSISTANCE PROGRAM. 

17 Section 9011 of the Farm Security and Rural Invest18 ment Act of 2002 (7 U.S.C. 8111) is amended to read 

19 as follows: 

20 ‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM. 

21 ‘‘(a) DEFINITIONS.—In this section: 

22 ‘‘(1) BCAP.—The term ‘BCAP’ means the Bio23 mass Crop Assistance Program established under 

24 this section. 


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1 ‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP 

2 project area’ means an area that— 

3 ‘‘(A) has specified boundaries that are sub4 mitted to the Secretary by the project sponsor 

5 and subsequently approved by the Secretary; 

6 ‘‘(B) includes producers with contract 

7 acreage that will supply a portion of the renew8 able biomass needed by a biomass conversion 

9 facility; and 

10 ‘‘(C) is physically located within an eco11 nomically practicable distance from the biomass 

12 conversion facility. 

13 ‘‘(3) CONTRACT ACREAGE.—The term ‘contract 

14 acreage’ means eligible land that is covered by a 

15 BCAP contract entered into with the Secretary. 

16 ‘‘(4) ELIGIBLE CROP.— 

17 ‘‘(A) IN GENERAL.—The term ‘eligible 

18 crop’ means a crop of renewable biomass. 

19 ‘‘(B) EXCLUSIONS.—The term ‘eligible 

20 crop’ does not include— 

21 ‘‘(i) any crop that is eligible to receive 

22 payments under title I of the Food, Con23 servation, and Energy Act of 2008 (7 

24 U.S.C. 8702 et seq.) or an amendment 

25 made by that title; or 


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1 ‘‘(ii) any plant that is invasive or nox2 ious or species or varieties of plants that 

3 credible risk assessment tools or other 

4 credible sources determine are potentially 

5 invasive, as determined by the Secretary in 

6 consultation with other appropriate Fed7 eral or State departments and agencies. 

8 ‘‘(5) ELIGIBLE LAND.— 

9 ‘‘(A) IN GENERAL.—The term ‘eligible 

10 land’ includes— 

11 ‘‘(i) agricultural and nonindustrial 

12 private forest lands (as defined in section 

13 5(c) of the Cooperative Forestry Assistance 

14 Act of 1978 (16 U.S.C. 2103a(c))); and 

15 ‘‘(ii) land enrolled in the conservation 

16 reserve program established under sub17 chapter B of chapter I of subtitle D of title 

18 XII of the Food Security Act of 1985 (16 

19 U.S.C. 3831 et seq.) or the Agricultural 

20 Conservation Easement Program estab21 lished under subtitle H of title XII of that 

22 Act under a contract that will expire at the 

23 end of the current fiscal year. 

24 ‘‘(B) EXCLUSIONS.—The term ‘eligible 

25 land’ does not include— 


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1 ‘‘(i) Federal- or State-owned land; 

2 ‘‘(ii) land that is native sod, as of the 

3 date of enactment of the Food, Conserva4 tion, and Energy Act of 2008 (7 U.S.C. 

5 8701 et seq.); 

6 ‘‘(iii) land enrolled in the conservation 

7 reserve program established under sub8 chapter B of chapter 1 of subtitle D of 

9 title XII of the Food Security Act of 1985 

10 (16 U.S.C. 3831 et seq.), other than land 

11 described in subparagraph (A)(ii); or 

12 ‘‘(iv) land enrolled in the Agricultural 

13 Conservation Easement Program estab14 lished under subtitle H of title XII of that 

15 Act, other than land described in subpara16 graph (A)(ii). 

17 ‘‘(6) ELIGIBLE MATERIAL.— 

18 ‘‘(A) IN GENERAL.—The term ‘eligible ma19 terial’ means renewable biomass harvested di20 rectly from the land, including crop residue 

21 from any crop that is eligible to receive pay22 ments under title I of the Agriculture Reform, 

23 Food, and Jobs Act of 2013 or an amendment 

24 made by that title. 


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1 ‘‘(B) INCLUSIONS.—The term ‘eligible ma2 terial’ shall only include— 

3 ‘‘(i) eligible material that is collected 

4 or harvested by the eligible material 

5 owner— 

6 ‘‘(I) directly from— 

7 ‘‘(aa) National Forest Sys8 tem; 

9 ‘‘(bb) Bureau of Land Man10 agement land; 

11 ‘‘(cc) non-Federal land; or 

12 ‘‘(dd) land owned by an in13 dividual Indian or Indian tribe 

14 that is held in trust by the 

15 United States for the benefit of 

16 the individual Indian or Indian 

17 tribe or subject to a restriction 

18 against alienation imposed by the 

19 United States; 

20 ‘‘(II) in a manner that is con21 sistent with— 

22 ‘‘(aa) a conservation plan; 

23 ‘‘(bb) a forest stewardship 

24 plan; or 


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1 ‘‘(cc) a plan that the Sec2 retary determines is equivalent to 

3 a plan described in item (aa) or 

4 (bb) and consistent with Execu5 tive Order 13112 (42 U.S.C. 

6 4321 note; relating to invasive 

7 species); 

8 ‘‘(ii) if woody eligible material, woody 

9 eligible material that is produced on land 

10 other than contract acreage that— 

11 ‘‘(I) is a byproduct of a preventa12 tive treatment that is removed to re13 duce hazardous fuel or to reduce or 

14 contain disease or insect infestation; 

15 and 

16 ‘‘(II) if harvested from Federal 

17 land, is harvested in accordance with 

18 section 102(e) of the Healthy Forests 

19 Restoration Act of 2003 (16 U.S.C. 

20 6512(e)); and 

21 ‘‘(iii) eligible material that is delivered 

22 to a qualified biomass conversion facility to 

23 be used for heat, power, biobased products, 

24 research, or advanced biofuels. 


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1 ‘‘(C) EXCLUSIONS.—The term ‘eligible ma2 terial’ does not include— 

3 ‘‘(i) material that is whole grain from 

4 any crop that is eligible to receive pay5 ments under title I of the Agriculture Re6 form, Food, and Jobs Act of 2013 or an 

7 amendment made by that title, including— 

8 ‘‘(I) barley, corn, grain sorghum, 

9 oats, rice, or wheat; 

10 ‘‘(II) honey; 

11 ‘‘(III) mohair; 

12 ‘‘(IV) oilseeds, including canola, 

13 crambe, flaxseed, mustard seed, 

14 rapeseed, safflower seed, soybeans, 

15 sesame seed, and sunflower seed; 

16 ‘‘(V) peanuts; 

17 ‘‘(VI) pulse; 

18 ‘‘(VII) chickpeas, lentils, and dry 

19 peas; 

20 ‘‘(VIII) dairy products; 

21 ‘‘(IX) sugar; and 

22 ‘‘(X) wool and cotton boll fiber; 

23 ‘‘(ii) animal waste and byproducts, in24 cluding fat, oil, grease, and manure; 

25 ‘‘(iii) food waste and yard waste; 


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1 ‘‘(iv) algae; 

2 ‘‘(v) woody eligible material that— 

3 ‘‘(I) is removed outside contract 

4 acreage; and 

5 ‘‘(II) is not a byproduct of a pre6 ventative treatment to reduce haz7 ardous fuel or to reduce or contain 

8 disease or insect infestation; 

9 ‘‘(vi) any woody eligible material col10 lected or harvested outside contract acre11 age that would otherwise be used for exist12 ing market products; or 

13 ‘‘(vii) bagasse. 

14 ‘‘(7) PRODUCER.—The term ‘producer’ means 

15 an owner or operator of contract acreage that is 

16 physically located within a BCAP project area. 

17 ‘‘(8) PROJECT SPONSOR.—The term ‘project 

18 sponsor’ means— 

19 ‘‘(A) a group of producers; or 

20 ‘‘(B) a biomass conversion facility. 

21 ‘‘(9) SOCIALLY DISADVANTAGED FARMER OR

22 RANCHER.—The term ‘socially disadvantaged farmer 

23 or rancher’ has the meaning given the term in sec24 tion 2501(e) of the Food, Agriculture, Conservation, 

25 and Trade Act of 1990 (7 U.S.C. 2279(e)). 


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1 ‘‘(b) ESTABLISHMENT AND PURPOSE.—The Sec2 retary shall establish and administer a Biomass Crop As3 sistance Program to— 

4 ‘‘(1) support the establishment and production 

5 of eligible crops for conversion to bioenergy in se6 lected BCAP project areas; and 

7 ‘‘(2) assist agricultural and forest land owners 

8 and operators with the collection, harvest, storage, 

9 and transportation of eligible material for use in a 

10 biomass conversion facility. 

11 ‘‘(c) BCAP PROJECT AREA.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall provide 

13 financial assistance to a producer of an eligible crop 

14 in a BCAP project area. 

15 ‘‘(2) SELECTION OF PROJECT AREAS.— 

16 ‘‘(A) IN GENERAL.—To be considered for 

17 selection as a BCAP project area, a project 

18 sponsor shall submit to the Secretary a pro19 posal that, at a minimum, includes— 

20 ‘‘(i) a description of the eligible land 

21 and eligible crops of each producer that 

22 will participate in the proposed BCAP 

23 project area; 

24 ‘‘(ii) a letter of commitment from a 

25 biomass conversion facility that the facility 


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1 will use the eligible crops intended to be 

2 produced in the proposed BCAP project 

3 area; 

4 ‘‘(iii) evidence that the biomass con5 version facility has sufficient equity avail6 able, as determined by the Secretary, if the 

7 biomass conversion facility is not oper8 ational at the time the proposal is sub9 mitted to the Secretary; and 

10 ‘‘(iv) any other information about the 

11 biomass conversion facility or proposed bio12 mass conversion facility that the Secretary 

13 determines necessary for the Secretary to 

14 be reasonably assured that the plant will 

15 be in operation by the date on which the 

16 eligible crops are ready for harvest. 

17 ‘‘(B) BCAP PROJECT AREA SELECTION

18 CRITERIA.—In selecting BCAP project areas, 

19 the Secretary shall consider— 

20 ‘‘(i) the volume of the eligible crops 

21 proposed to be produced in the proposed 

22 BCAP project area and the probability 

23 that those crops will be used for the pur24 poses of the BCAP; 


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1 ‘‘(ii) the volume of renewable biomass 

2 projected to be available from sources 

3 other than the eligible crops grown on con4 tract acres; 

5 ‘‘(iii) the anticipated economic impact 

6 in the proposed BCAP project area; 

7 ‘‘(iv) the opportunity for producers 

8 and local investors to participate in the 

9 ownership of the biomass conversion facil10 ity in the proposed BCAP project area; 

11 ‘‘(v) the participation rate by— 

12 ‘‘(I) beginning farmers or ranch13 ers (as defined in accordance with sec14 tion 343(a) of the Consolidated Farm 

15 and Rural Development Act (7 U.S.C. 

16 1991(a))); or 

17 ‘‘(II) socially disadvantaged 

18 farmers or ranchers; 

19 ‘‘(vi) the impact on soil, water, and 

20 related resources; 

21 ‘‘(vii) the variety in biomass produc22 tion approaches within a project area, in23 cluding (as appropriate)— 

24 ‘‘(I) agronomic conditions; 


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1 ‘‘(II) harvest and postharvest 

2 practices; and 

3 ‘‘(III) monoculture and polycul4 ture crop mixes; 

5 ‘‘(viii) the range of eligible crops 

6 among project areas; and 

7 ‘‘(ix) any additional information that 

8 the Secretary determines to be necessary. 

9 ‘‘(3) CONTRACT.— 

10 ‘‘(A) IN GENERAL.—On approval of a 

11 BCAP project area by the Secretary, each pro12 ducer in the BCAP project area shall enter into 

13 a contract directly with the Secretary. 

14 ‘‘(B) MINIMUM TERMS.—At a minimum, a 

15 contract under this subsection shall include 

16 terms that cover— 

17 ‘‘(i) an agreement to make available 

18 to the Secretary, or to an institution of 

19 higher education or other entity designated 

20 by the Secretary, such information as the 

21 Secretary considers to be appropriate to 

22 promote the production of eligible crops 

23 and the development of biomass conversion 

24 technology; 


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1 ‘‘(ii) compliance with the highly erod2 ible land conservation requirements of sub3 title B of title XII of the Food Security 

4 Act of 1985 (16 U.S.C. 3811 et seq.) and 

5 the wetland conservation requirements of 

6 subtitle C of title XII of that Act (16 

7 U.S.C. 3821 et seq.); 

8 ‘‘(iii) the implementation of (as deter9 mined by the Secretary)— 

10 ‘‘(I) a conservation plan; 

11 ‘‘(II) a forest stewardship plan; 

12 or 

13 ‘‘(III) a plan that is equivalent to 

14 a conservation or forest stewardship 

15 plan; and 

16 ‘‘(iv) any additional requirements that 

17 Secretary determines to be necessary. 

18 ‘‘(C) DURATION.—A contract under this 

19 subsection shall have a term of not more 

20 than— 

21 ‘‘(i) 5 years for annual and perennial 

22 crops; or 

23 ‘‘(ii) 15 years for woody biomass. 

24 ‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In 

25 carrying out this subsection, the Secretary shall proVerDate Mar 15 2010 23:29 Jul 08, 2013 Jkt 029200 PO 00000 Frm 01021 Fmt 6652 Sfmt 6201 E:\BILLS\H2498.IH H2498

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1 vide for the preservation of cropland base and yield 

2 history applicable to the land enrolled in a BCAP 

3 contract. 

4 ‘‘(5) PAYMENTS.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 make establishment and annual payments di7 rectly to producers to support the establishment 

8 and production of eligible crops on contract 

9 acreage. 

10 ‘‘(B) AMOUNT OF ESTABLISHMENT PAY11 MENTS.— 

12 ‘‘(i) IN GENERAL.—Subject to clause 

13 (ii), the amount of an establishment pay14 ment under this subsection shall be not 

15 more than 50 percent of the costs of estab16 lishing an eligible perennial crop covered 

17 by the contract but not to exceed $500 per 

18 acre, including— 

19 ‘‘(I) the cost of seeds and stock 

20 for perennials; 

21 ‘‘(II) the cost of planting the pe22 rennial crop, as determined by the 

23 Secretary; and 


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1 ‘‘(III) in the case of nonindus2 trial private forestland, the costs of 

3 site preparation and tree planting. 

4 ‘‘(ii) SOCIALLY DISADVANTAGED

5 FARMERS OR RANCHERS.—In the case of 

6 socially disadvantaged farmers or ranchers, 

7 the costs of establishment may not exceed 

8 $750 per acre. 

9 ‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— 

10 ‘‘(i) IN GENERAL.—Subject to clause 

11 (ii), the amount of an annual payment 

12 under this subsection shall be determined 

13 by the Secretary. 

14 ‘‘(ii) REDUCTION.—The Secretary 

15 shall reduce an annual payment by an 

16 amount determined to be appropriate by 

17 the Secretary, if— 

18 ‘‘(I) an eligible crop is used for 

19 purposes other than the production of 

20 energy at the biomass conversion fa21 cility; 

22 ‘‘(II) an eligible crop is delivered 

23 to the biomass conversion facility; 

24 ‘‘(III) the producer receives a 

25 payment under subsection (d); 


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1 ‘‘(IV) the producer violates a 

2 term of the contract; or 

3 ‘‘(V) the Secretary determines a 

4 reduction is necessary to carry out 

5 this section. 

6 ‘‘(D) EXCLUSION.—The Secretary shall 

7 not make any BCAP payments on land for 

8 which payments are received under the con9 servation reserve program established under 

10 subchapter B of chapter 1 of subtitle D of title 

11 XII of the Food Security Act of 1985 (16 

12 U.S.C. 3831 et seq.) or the agricultural con13 servation easement program established under 

14 subtitle H of title XII of that Act. 

15 ‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, 

16 STORAGE, AND TRANSPORTATION.— 

17 ‘‘(1) IN GENERAL.—The Secretary shall make a 

18 payment for the delivery of eligible material to a bio19 mass conversion facility to— 

20 ‘‘(A) a producer of an eligible crop that is 

21 produced on BCAP contract acreage; or 

22 ‘‘(B) a person with the right to collect or 

23 harvest eligible material, regardless of whether 

24 the eligible material is produced on contract 

25 acreage. 


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1 ‘‘(2) PAYMENTS.— 

2 ‘‘(A) COSTS COVERED.—A payment under 

3 this subsection shall be in an amount described 

4 in subparagraph (B) for— 

5 ‘‘(i) collection; 

6 ‘‘(ii) harvest; 

7 ‘‘(iii) storage; and 

8 ‘‘(iv) transportation to a biomass con9 version facility. 

10 ‘‘(B) AMOUNT.—Subject to paragraph (3), 

11 the Secretary may provide matching payments 

12 at a rate of up to $1 for each $1 per ton pro13 vided by the biomass conversion facility, in an 

14 amount not to exceed $20 per dry ton for a pe15 riod of 4 years. 

16 ‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP

17 CONTRACT ACREAGE.—As a condition of the receipt 

18 of an annual payment under subsection (c), a pro19 ducer receiving a payment under this subsection for 

20 collection, harvest, storage, or transportation of an 

21 eligible crop produced on BCAP acreage shall agree 

22 to a reduction in the annual payment. 

23 ‘‘(e) REPORT.—Not later than 4 years after the date 

24 of enactment of the Agriculture Reform, Food, and Jobs 

25 Act of 2013, the Secretary shall submit to the Committee 


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1 on Agriculture of the House of Representatives and the 

2 Committee on Agriculture, Nutrition, and Forestry of the 

3 Senate a report on the dissemination by the Secretary of 

4 the best practice data and information gathered from par5 ticipants receiving assistance under this section. 

6 ‘‘(f) FUNDING.— 

7 ‘‘(1) IN GENERAL.—Of the funds of the Com8 modity Credit Corporation, the Secretary shall use 

9 to carry out this section $38,600,000 for each of fis10 cal years 2014 through 2018. 

11 ‘‘(2) COLLECTION, HARVEST, STORAGE, AND

12 TRANSPORTATION PAYMENTS.—Of the amount made 

13 available under paragraph (1) for each fiscal year, 

14 the Secretary shall use not less than 10 percent, nor 

15 more than 50 percent, of the amount to make collec16 tion, harvest, transportation, and storage payments 

17 under subsection (d)(2).’’. 

18 SEC. 9010. REPEAL OF FOREST BIOMASS FOR ENERGY. 

19 Section 9012 of the Farm Security and Rural Invest20 ment Act of 2002 (7 U.S.C. 8112) is repealed. 

21 SEC. 9011. COMMUNITY WOOD ENERGY PROGRAM. 

22 (a) DEFINITION OF BIOMASS CONSUMER COOPERA23 TIVE.—Section 9013(a) of the Farm Security and Rural 

24 Investment Act of 2002 (7 U.S.C. 8113(a)) is amended— 


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1 (1) by redesignating paragraphs (1) and (2) as 

2 paragraphs (2) and (3), respectively; and 

3 (2) by inserting before paragraph (2) (as so re4 designated) the following: 

5 ‘‘(1) BIOMASS CONSUMER COOPERATIVE.—The 

6 term ‘biomass consumer cooperative’ means a con7 sumer membership organization the purpose of 

8 which is to provide members with services or dis9 counts relating to the purchase of biomass heating 

10 products or biomass heating systems.’’. 

11 (b) GRANT PROGRAM.—Section 9013(b)(1) of the 

12 Farm Security and Rural Investment Act of 2002 (7 

13 U.S.C. 8113(b)(1)) is amended— 

14 (1) in subparagraph (A), by striking ‘‘and’’ 

15 after the semicolon at the end; 

16 (2) in subparagraph (B), by striking the period 

17 at the end and inserting ‘‘; and’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(C) grants of up to $50,000 to biomass 

20 consumer cooperatives for the purpose of estab21 lishing or expanding biomass consumer coopera22 tives that will provide consumers with services 

23 or discounts relating to— 

24 ‘‘(i) the purchase of biomass heating 

25 systems; 


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1 ‘‘(ii) biomass heating products, includ2 ing wood chips, wood pellets, and advanced 

3 biofuels; or 

4 ‘‘(iii) the delivery and storage of bio5 mass of heating products.’’. 

6 (c) MATCHING FUNDS.—Section 9013(d) of the 

7 Farm Security and Rural Investment Act of 2002 (7 

8 U.S.C. 8113(d)) is amended— 

9 (1) by striking ‘‘A State or local government 

10 that receives a grant under subsection (b)’’ and in11 serting the following: 

12 ‘‘(1) STATE AND LOCAL GOVERNMENTS.—A 

13 State or local government that receives a grant 

14 under subparagraph (A) or (B) of subsection 

15 (b)(1)’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(2) BIOMASS CONSUMER COOPERATIVES.—A 

18 biomass consumer cooperative that receives a grant 

19 under subsection (b)(1)(C) shall contribute an 

20 amount of non-Federal funds (which may include 

21 State, local, and nonprofit funds and membership 

22 dues) toward the establishment or expansion of a 

23 biomass consumer cooperative that is at least equal 

24 to 50 percent of the amount of Federal funds re25 ceived for that purpose.’’. 


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1 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 9013(e) of the Farm Security and Rural Investment Act 

3 of 2002 (7 U.S.C. 8113(e)) is amended by striking 

4 ‘‘2013’’ and inserting ‘‘2018’’. 

5 SEC. 9012. REPEAL OF RENEWABLE FERTILIZER STUDY. 

6 Section 9003 of the Food, Conservation, and Energy 

7 Act of 2008 (Public Law 110–246; 122 Stat. 2096) is re8 pealed. 

9 TITLE X—HORTICULTURE 

10 SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION. 

11 Section 10107(b) of the Food, Conservation, and En12 ergy Act of 2008 (7 U.S.C. 1622b(b)) is amended by strik13 ing ‘‘2012’’ and inserting ‘‘2018’’. 

14 SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE 

15 MOVEMENT OF SPECIALTY CROPS. 

16 Section 10403 of the Food, Conservation, and En17 ergy Act of 2008 (7 U.S.C. 1622c) is repealed. 

18 SEC. 10003. FARMERS MARKET AND LOCAL FOOD PRO19 MOTION PROGRAM. 

20 Section 6 of the Farmer-to-Consumer Direct Mar21 keting Act of 1976 (7 U.S.C. 3005) is amended— 

22 (1) in the section heading, by adding ‘‘AND

23 LOCAL FOOD’’ after ‘‘MARKET’’; 

24 (2) in subsection (a)— 


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1 (A) by inserting ‘‘and Local Food’’ after 

2 ‘‘Market’’; 

3 (B) by striking ‘‘farmers’ markets and to 

4 promote’’; and 

5 (C) by inserting ‘‘and local food capacity 

6 development’’ before the period at the end; 

7 (3) in subsection (b), by striking paragraph (1) 

8 and inserting the following: 

9 ‘‘(1) IN GENERAL.—The purposes of the Pro10 gram are to increase domestic consumption of and 

11 access to locally and regionally produced agricultural 

12 products by developing, improving, expanding, and 

13 providing outreach, training, and technical assist14 ance to, or assisting in the development, improve15 ment and expansion of— 

16 ‘‘(A) domestic farmers’ markets, roadside 

17 stands, community-supported agriculture pro18 grams, agritourism activities, and other direct 

19 producer-to-consumer market opportunities; and 

20 ‘‘(B) local and regional food enterprises 

21 that are not direct producer-to-consumer mar22 kets but process, distribute, aggregate, store, 

23 and market locally or regionally produced food 

24 products.’’; 

25 (4) in subsection (c)(1)— 


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1 (A) by inserting ‘‘or other business entity’’ 

2 after ‘‘cooperative’’; and 

3 (B) by inserting ‘‘, including a community 

4 supported agriculture network or association’’ 

5 after ‘‘association’’; 

6 (5) by redesignating subsection (e) as sub7 section (f); 

8 (6) by inserting after subsection (d) the fol9 lowing: 

10 ‘‘(e) PRIORITIES.—In providing grants under the 

11 Program, priority shall be given to applications that in12 clude projects that— 

13 ‘‘(1) benefit underserved communities; 

14 ‘‘(2) develop market opportunities for small and 

15 mid-sized farm and ranch operations; and 

16 ‘‘(3) include a strategic plan to maximize the 

17 use of funds to build capacity for local and regional 

18 food systems in a community.’’; and 

19 (7) in subsection (f) (as redesignated by para20 graph (5))— 

21 (A) in paragraph (1)— 

22 (i) in the heading, by striking ‘‘FIS23 CAL YEARS 2008 THROUGH 2012’’ and in24 serting ‘‘MANDATORY FUNDING’’; 


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1 (ii) in subparagraph (B), by striking 

2 ‘‘and’’ after the semicolon at the end; 

3 (iii) in subparagraph (C), by striking 

4 the period at the end and inserting ‘‘; 

5 and’’; and 

6 (iv) by adding at the end the fol7 lowing: 

8 ‘‘(D) $20,000,000 for each of fiscal years 

9 2014 through 2018.’’; 

10 (B) by striking paragraphs (3) and (5); 

11 (C) by inserting after paragraph (2) the 

12 following: 

13 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—In 

14 addition to funds made available under paragraph 

15 (1), there is authorized to be appropriated to carry 

16 out this section $20,000,000 for each of fiscal years 

17 2014 through 2018.’’; and 

18 (D) by adding at the end the following: 

19 ‘‘(5) USE OF FUNDS.— 

20 ‘‘(A) IN GENERAL.—Of the funds made 

21 available to carry out the Program for each fis22 cal year, 50 percent shall be used for the pur23 poses described in subsection (b)(1)(A) and 50 

24 percent shall be used for the purposes described 

25 in subsection (b)(1)(B). 


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1 ‘‘(B) COST SHARE.—To be eligible to re2 ceive a grant for a project described in sub3 section (b)(1)(B), a recipient shall provide a 

4 match in the form of cash or in-kind contribu5 tions in an amount equal to 25 percent of the 

6 total cost of the project. 

7 ‘‘(6) ADMINISTRATIVE EXPENSES.—Not more 

8 than 10 percent of the total amount made available 

9 to carry out this section for a fiscal year may be 

10 used for administrative expenses. 

11 ‘‘(7) LIMITATIONS.—An eligible entity may not 

12 use a grant or other assistance provided under the 

13 Program for the purchase, construction, or rehabili14 tation of a building or structure.’’. 

15 SEC. 10004. STUDY ON LOCAL FOOD PRODUCTION AND PRO16 GRAM EVALUATION. 

17 (a) IN GENERAL.—The Secretary shall— 

18 (1) collect data on the production and mar19 keting of locally or regionally produced agricultural 

20 food products; 

21 (2) facilitate interagency collaboration and data 

22 sharing on programs related to local and regional 

23 food systems; and 

24 (3) monitor the effectiveness of programs de25 signed to expand or facilitate local food systems. 


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1 (b) REQUIREMENTS.—In carrying out this section, 

2 the Secretary shall, at a minimum— 

3 (1) collect and distribute comprehensive report4 ing of prices of locally or regionally produced agri5 cultural food products; 

6 (2) conduct surveys and analysis and publish 

7 reports relating to the production, handling, dis8 tribution, retail sales, and trend studies (including 

9 consumer purchasing patterns) of or on locally or re10 gionally produced agricultural food products; 

11 (3) evaluate the effectiveness of existing pro12 grams in growing local and regional food systems, 

13 including— 

14 (A) the impact of local food systems on job 

15 creation and economic development; 

16 (B) the level of participation in the Farm17 ers’ Market and Local Food Promotion Pro18 gram established under section 6 of the Farm19 er-to-Consumer Direct Marketing Act of 1976 

20 (7 U.S.C. 3005), including the percentage of 

21 projects funded in comparison to applicants and 

22 the types of eligible entities receiving funds; 

23 (C) the ability for participants to leverage 

24 private capital and a synopsis of the places 

25 from which non-Federal funds are derived; and 


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1 (D) any additional resources required to 

2 aid in the development or expansion of local 

3 and regional food systems; 

4 (4) expand the Agricultural Resource Manage5 ment Survey to include questions on locally or re6 gionally produced agricultural food products; and 

7 (5) seek to establish or expand private-public 

8 partnerships to facilitate, to the maximum extent 

9 practicable, the collection of data on locally or re10 gionally produced agricultural food products, includ11 ing the development of a nationally coordinated and 

12 regionally balanced evaluation of the redevelopment 

13 of locally or regionally produced food systems. 

14 (c) REPORT.—Not later than 1 year after the date 

15 of enactment of this Act and annually thereafter, the Sec16 retary shall submit to the Committee on Agriculture of 

17 the House of Representatives and the Committee on Agri18 culture, Nutrition, and Forestry of the Senate a report 

19 describing the progress that has been made in imple20 menting this section and identifying any additional needs 

21 related to developing local and regional food systems. 

22 SEC. 10005. ORGANIC AGRICULTURE. 

23 (a) ORGANIC PRODUCTION AND MARKET DATA INI24 TIATIVES.—Section 7407 of the Farm Security and Rural 

25 Investment Act of 2002 (7 U.S.C. 5925c) is amended— 


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1 (1) in subsection (c)— 

2 (A) in the matter preceding paragraph (1), 

3 by inserting ‘‘and annually thereafter’’ after 

4 ‘‘this subsection’’; 

5 (B) in paragraph (1), by striking ‘‘and’’ at 

6 the end; 

7 (C) by redesignating paragraph (2) as 

8 paragraph (3); and 

9 (D) by inserting after paragraph (1) the 

10 following: 

11 ‘‘(2) describes how data collection agencies 

12 (such as the Agricultural Marketing Service and the 

13 National Agricultural Statistics Service) are coordi14 nating with data user agencies (such as the Risk 

15 Management Agency) to ensure that data collected 

16 under this section can be used by data user agencies, 

17 including by the Risk Management Agency to offer 

18 price elections for all organic crops; and’’; and 

19 (2) in subsection (d)— 

20 (A) by striking paragraph (3); 

21 (B) by redesignating paragraph (2) as 

22 paragraph (3); 

23 (C) by inserting after paragraph (1) the 

24 following: 


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1 ‘‘(2) MANDATORY FUNDING.—In addition to 

2 any funds available under paragraph (1), of the 

3 funds of the Commodity Credit Corporation, the 

4 Secretary shall use to carry out this section 

5 $5,000,000, to remain available until expended.’’; 

6 and 

7 (D) in paragraph (3) (as redesignated by 

8 subparagraph (B))— 

9 (i) in the heading, by striking ‘‘FOR

10 FISCAL YEARS 2008 THROUGH 2012’’; 

11 (ii) by striking ‘‘paragraph (1)’’ and 

12 inserting ‘‘paragraphs (1) and (2)’’; and 

13 (iii) by striking ‘‘2012’’ and inserting 

14 ‘‘2018’’. 

15 (b) MODERNIZATION AND TECHNOLOGY UPGRADE

16 FOR NATIONAL ORGANIC PROGRAM.—Section 2123 of the 

17 Organic Foods Production Act of 1990 (7 U.S.C. 6522) 

18 is amended— 

19 (1) in subsection (b)— 

20 (A) in paragraph (5), by striking ‘‘and’’ at 

21 the end; 

22 (B) by redesignating paragraph (6) as 

23 paragraph (7); and 

24 (C) by inserting after paragraph (5) the 

25 following: 


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1 ‘‘(6) $15,000,000 for each of fiscal years 2014 

2 through 2018; and’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(c) MODERNIZATION AND TECHNOLOGY UPGRADE

5 FOR NATIONAL ORGANIC PROGRAM.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall mod7 ernize database and technology systems of the na8 tional organic program. 

9 ‘‘(2) FUNDING.—Of the funds of the Com10 modity Credit Corporation and in addition to any 

11 other funds made available for that purpose, the 

12 Secretary shall make available to carry out this sub13 section $5,000,000 for fiscal year 2014, to remain 

14 available until expended.’’. 

15 SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES. 

16 Section 10105(c) of the Food, Conservation, and En17 ergy Act of 2008 (7 U.S.C. 7655a(c)) is amended by strik18 ing ‘‘2012’’ and inserting ‘‘2018’’. 

19 SEC. 10007. COORDINATED PLANT MANAGEMENT PRO20 GRAM. 

21 (a) IN GENERAL.—Section 420 of the Plant Protec22 tion Act (7 U.S.C. 7721) is amended— 

23 (1) by striking the section heading and insert24 ing ‘‘COORDINATED PLANT MANAGEMENT PRO25 GRAM.’’; 


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1 (2) by redesignating subsection (e) as sub2 section (f); and 

3 (3) by inserting after subsection (d) the fol4 lowing: 

5 ‘‘(e) NATIONAL CLEAN PLANT NETWORK.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall estab7 lish a program to be known as the ‘National Clean 

8 Plant Network’ (referred to in this subsection as the 

9 ‘Program’). 

10 ‘‘(2) REQUIREMENTS.—Under the Program, the 

11 Secretary shall establish a network of clean plant 

12 centers for diagnostic and pathogen elimination serv13 ices— 

14 ‘‘(A) to produce clean propagative plant 

15 material; and 

16 ‘‘(B) to maintain blocks of pathogen-tested 

17 plant material in sites located throughout the 

18 United States. 

19 ‘‘(3) AVAILABILITY OF CLEAN PLANT SOURCE

20 MATERIAL.—Clean plant source material produced 

21 or maintained under the Program may be made 

22 available to— 

23 ‘‘(A) a State for a certified plant program 

24 of the State; and 

25 ‘‘(B) private nurseries and producers. 


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1 ‘‘(4) CONSULTATION AND COLLABORATION.—In 

2 carrying out the Program, the Secretary shall— 

3 ‘‘(A) consult with— 

4 ‘‘(i) State departments of agriculture; 

5 and 

6 ‘‘(ii) land-grant colleges and univer7 sities and NLGCA Institutions (as those 

8 terms are defined in section 1404 of the 

9 National Agricultural Research, Extension, 

10 and Teaching Policy Act of 1977 (7 U.S.C. 

11 3103)); and 

12 ‘‘(B) to the extent practicable and with 

13 input from the appropriate State officials and 

14 industry representatives, use existing Federal or 

15 State facilities to serve as clean plant centers.’’. 

16 (b) FUNDING.—Subsection (f) of section 420 of the 

17 Plant Protection Act (7 U.S.C. 7721) (as redesignated by 

18 subsection (a)(2)) is amended— 

19 (1) in paragraph (3), by striking ‘‘and’’ at the 

20 end; 

21 (2) in paragraph (4), by striking ‘‘and each fis22 cal year thereafter.’’ and inserting a semicolon; and 

23 (3) by adding at the end the following: 

24 ‘‘(5) $60,000,000 for each of fiscal years 2014 

25 through 2017; and 


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1 ‘‘(6) $65,000,000 for fiscal year 2018 and each 

2 fiscal year thereafter.’’. 

3 (c) REPEAL OF EXISTING PROVISION.—Section 

4 10202 of the Food, Conservation, and Energy Act of 2008 

5 (7 U.S.C. 7761) is repealed. 

6 (d) CLARIFICATION OF USE OF FUNDS FOR TECH7 NICAL ASSISTANCE.—Section 420 of the Plant Protection 

8 Act (7 U.S.C. 7721) (as amended by subsection (a)) is 

9 amended by adding at the end the following: 

10 ‘‘(g) RELATIONSHIP TO OTHER LAW.—The use of 

11 Commodity Credit Corporation funds under this section 

12 to provide technical assistance shall not be considered an 

13 allotment or fund transfer from the Commodity Credit 

14 Corporation for purposes of the limit on expenditures for 

15 technical assistance imposed by section 11 of the Com16 modity Credit Corporation Charter Act (15 U.S.C. 

17 714i).’’. 

18 SEC. 10008. SPECIALTY CROP BLOCK GRANTS. 

19 Section 101 of the Specialty Crops Competitiveness 

20 Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465) 

21 is amended— 

22 (1) in subsection (a)— 

23 (A) by striking ‘‘subsection (j)’’ and insert24 ing ‘‘subsection (l)’’; and 


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1 (B) by striking ‘‘2012’’ and inserting 

2 ‘‘2018’’; 

3 (2) by striking subsection (b) and inserting the 

4 following: 

5 ‘‘(b) GRANTS BASED ON VALUE AND ACREAGE.— 

6 Subject to subsection (c), in the case of each State with 

7 an application for a grant for a fiscal year that is accepted 

8 by the Secretary of Agriculture under subsection (f), the 

9 amount of a grant for a fiscal year to a State under this 

10 section shall bear the same ratio to the total amount made 

11 available under subsection (l) for that fiscal year as— 

12 ‘‘(1) the average of the most recent available 

13 value of specialty crop production in the State and 

14 the acreage of specialty crop production in the State, 

15 as demonstrated in the most recent Census of Agri16 culture data; bears to 

17 ‘‘(2) the average of the most recent available 

18 value of specialty crop production in all States and 

19 the acreage of specialty crop production in all 

20 States, as demonstrated in the most recent Census 

21 of Agriculture data.’’; 

22 (3) by redesignating subsection (j) as sub23 section (l); 

24 (4) by inserting after subsection (i) the fol25 lowing: 


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1 ‘‘(j) MULTISTATE PROJECTS.— 

2 ‘‘(1) IN GENERAL.—Not later than 180 days 

3 after the date of enactment of the Agriculture Re4 form, Food, and Jobs Act of 2013, the Secretary of 

5 Agriculture shall issue guidance for the purpose of 

6 making grants to multistate projects under this sec7 tion for projects involving— 

8 ‘‘(A) food safety; 

9 ‘‘(B) plant pests and disease; 

10 ‘‘(C) crop-specific projects addressing com11 mon issues; and 

12 ‘‘(D) any other area that furthers the pur13 poses of this section, as determined by the Sec14 retary. 

15 ‘‘(2) FUNDING.—Of the funds provided under 

16 subsection (l), the Secretary of Agriculture may allo17 cate for grants under this subsection, to remain 

18 available until expended— 

19 ‘‘(A) $1,000,000 for fiscal year 2014; 

20 ‘‘(B) $2,000,000 for fiscal year 2015; 

21 ‘‘(C) $3,000,000 for fiscal year 2016; 

22 ‘‘(D) $4,000,000 for fiscal year 2017; and 

23 ‘‘(E) $5,000,000 for fiscal year 2018. 

24 ‘‘(k) ADMINISTRATION.— 


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1 ‘‘(1) DEPARTMENT.—The Secretary of Agri2 culture may not use more than 3 percent of the 

3 funds made available to carry out this section for a 

4 fiscal year for administrative expenses. 

5 ‘‘(2) STATES.—A State receiving a grant under 

6 this section may not use more than 8 percent of the 

7 funds received under the grant for a fiscal year for 

8 administrative expenses.’’; and 

9 (5) in subsection (l) (as redesignated by para10 graph (3))— 

11 (A) in paragraph (2), by striking ‘‘and’’ at 

12 the end; 

13 (B) in paragraph (3), by striking the pe14 riod at the end and inserting ‘‘; and’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(4) $70,000,000 for fiscal year 2014 and each 

17 fiscal year thereafter.’’. 

18 SEC. 10009. RECORDKEEPING, INVESTIGATIONS, AND EN19 FORCEMENT. 

20 The Organic Foods Production Act of 1990 is amend21 ed by inserting after section 2120 (7 U.S.C. 6519) the 

22 following: 

23 ‘‘SEC. 2120A. RECORDKEEPING, INVESTIGATIONS, AND EN24 FORCEMENT. 

25 ‘‘(a) RECORDKEEPING.— 


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1 ‘‘(1) IN GENERAL.—Except as otherwise pro2 vided in this title, all persons, including producers, 

3 handlers, and certifying agents, required to report 

4 information to the Secretary under this title shall 

5 maintain, and make available to the Secretary on 

6 the request of the Secretary, all contracts, agree7 ments, receipts, and other records associated with 

8 the organic certification program established by the 

9 Secretary under this title. 

10 ‘‘(2) DURATION OF RECORDKEEPING REQUIRE11 MENT.—A record covered by paragraph (1) shall be 

12 maintained— 

13 ‘‘(A) by a person covered by this title, ex14 cept for a certifying agent, for a period of 5 

15 years beginning on the date of the creation of 

16 the record; and 

17 ‘‘(B) by a certifying agent, for a period of 

18 10 years beginning on the date of the creation 

19 of the record. 

20 ‘‘(b) CONFIDENTIALITY.— 

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

22 and except as provided in section 2107(a)(9) and as 

23 otherwise directed by the Secretary or the Attorney 

24 General for enforcement purposes, no officer, em25 ployee, or agent of the United States shall make 


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1 available to the public information, statistics, or doc2 uments obtained from or made available by any per3 son under this title, other than in a manner that en4 sures that confidentiality is preserved regarding the 

5 identity of persons, including parties to a contract, 

6 and proprietary business information. 

7 ‘‘(2) VIOLATORS AND NATURE OF ACTIONS.— 

8 The Secretary may release the name of the violator 

9 and the nature of the actions triggering an order or 

10 revocation under subsection (e). 

11 ‘‘(c) INVESTIGATION.— 

12 ‘‘(1) IN GENERAL.—The Secretary may take 

13 such investigative actions as the Secretary considers 

14 to be necessary to carry out this title— 

15 ‘‘(A) to verify the accuracy of any informa16 tion reported or made available under this title; 

17 and 

18 ‘‘(B) to determine, with regard to actions, 

19 practices, or information required under this 

20 title, whether a person covered by this title has 

21 committed, or will commit, a violation of any 

22 provision of this title, including an order or reg23 ulation promulgated by the Secretary. 

24 ‘‘(2) INVESTIGATIVE POWERS.—The Secretary 

25 may administer oaths and affirmations, subpoena 


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1 witnesses, compel attendance of witnesses, take evi2 dence, and require the production of any records re3 quired to be maintained under subsection (a) or sec4 tion 2112(d) or 2116(c) that are relevant to the in5 vestigation. 

6 ‘‘(d) UNLAWFUL ACT.—It shall be unlawful and a 

7 violation of this title for any person covered by this title— 

8 ‘‘(1) to fail or refuse to provide, or delay the 

9 timely provision of, accurate information required by 

10 the Secretary under this section; 

11 ‘‘(2) to violate— 

12 ‘‘(A) an order of the Secretary; 

13 ‘‘(B) a revocation of the organic certifi14 cation of a producer or handler; or 

15 ‘‘(C) a revocation of the accreditation of a 

16 certifying agent; or 

17 ‘‘(3) to sell, or attempt to sell, a product that 

18 is represented as being organically produced under 

19 this title (including an order or regulation promul20 gated under this title) if in fact the product has 

21 been produced or handled by an operation that is 

22 not yet a certified organic producer or handler under 

23 this title. 

24 ‘‘(e) ENFORCEMENT.— 

25 ‘‘(1) ORDER.— 


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1 ‘‘(A) IN GENERAL.—The Secretary may 

2 issue an order to stop the sale of an agricul3 tural product that is labeled or otherwise rep4 resented as being organically produced in cases 

5 of suspected fraudulent or otherwise unlawful 

6 acts as described in subsection (d) that are will7 ful, noncorrectable, or the subject of a com8 bined noncompliance and adverse action until 

9 the product can be verified— 

10 ‘‘(i) as meeting the national and State 

11 standards for organic production and han12 dling as provided in sections 2105 through 

13 2114; 

14 ‘‘(ii) as having been produced or han15 dled without the use of a prohibited sub16 stance listed under section 2118; and 

17 ‘‘(iii) as being produced and handled 

18 by a certified organic operation. 

19 ‘‘(B) AFFIRMATIVE DEFENSE TO STOP

20 SALE ORDER.— 

21 ‘‘(i) IN GENERAL.—If a producer or 

22 handler has a valid organic certification 

23 from the Department of Agriculture, the 

24 burden shall shift to the Secretary to prove 

25 fraud or unlawful activity that is willful, 


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1 noncorrectable, or the subject of a com2 bined noncompliance and adverse action 

3 before a stop sale order under subpara4 graph (A) may be implemented. 

5 ‘‘(ii) INFORMATION.— 

6 ‘‘(I) IN GENERAL.—The producer 

7 or handler shall comply with any re8 quests of the Secretary for documents 

9 and other information not later than 

10 30 days after a request is made. 

11 ‘‘(II) NONCOMPLIANCE.—If the 

12 producer or handler fails to comply 

13 within the period described in sub14 clause (I), the Secretary may issue a 

15 stop sale order. 

16 ‘‘(C) APPEAL OF STOP SALE ORDER.— 

17 ‘‘(i) IN GENERAL.—If the Secretary 

18 proves fraud or unlawful activity that is 

19 willful, noncorrectable, or the subject of a 

20 combined noncompliance and adverse ac21 tion, the determination may be appealed 

22 through an expedited administrative appeal 

23 process. 

24 ‘‘(ii) DEADLINE.—The expedited ap25 peal process shall be completed not later 


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1 than 30 days after the date of the issuance 

2 of the stop sale order. 

3 ‘‘(iii) STAY.—Any stop sale order 

4 shall be stayed pending the 30 day-expe5 dited appeal under this subparagraph. 

6 ‘‘(2) CERTIFICATION OR ACCREDITATION.— 

7 After notice and opportunity for an administrative 

8 appeal under section 2121, if a violation described in 

9 subparagraph (A)(ii) is determined to have occurred 

10 and is an unlawful act under subsection (d), the Sec11 retary shall revoke the organic certification of the 

12 producer or handler, or the accreditation of the cer13 tifying agent. 

14 ‘‘(3) VIOLATION OF ORDER OR REVOCATION.— 

15 A person who violates an order to stop the sale of 

16 a product as an organically produced product under 

17 paragraph (1), or a revocation of certification or ac18 creditation under paragraph (2), shall be subject to 

19 1 or more of the penalties provided under sub20 sections (a) and (b) of section 2120. 

21 ‘‘(f) APPEAL.— 

22 ‘‘(1) IN GENERAL.—An order under subsection 

23 (e)(1), or a revocation of certification or accredita24 tion under subsection (e)(2)(B), shall be final and 


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1 conclusive unless the affected person files an appeal 

2 of the order— 

3 ‘‘(A) first, to the administrative appeals 

4 process established under section 2121(a); and 

5 ‘‘(B) after a final decision of the Secretary, 

6 if the affected person so elects, to a United 

7 States district court as provided in section 

8 2121(b) not later than 30 days after the date 

9 of the determination under subparagraph (A). 

10 ‘‘(2) STANDARD.—An order under subsection 

11 (e)(1)(A), or a revocation of certification or accredi12 tation under subsection (e)(2), shall be set aside if 

13 the order, or the revocation of certification or ac14 creditation, fails to comply with section 706 of title 

15 5, United States Code. 

16 ‘‘(g) NONCOMPLIANCE.— 

17 ‘‘(1) IN GENERAL.—If a person covered by this 

18 title fails to obey an order, or a revocation of certifi19 cation or accreditation, described in subsection (f)(2) 

20 after the order or revocation has become final and 

21 conclusive or after the appropriate United States 

22 district court has entered a final judgment in favor 

23 of the Secretary, the United States may apply to the 

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1 ment of the order, or the revocation of certification 

2 or accreditation. 

3 ‘‘(2) ENFORCEMENT.—If the court determines 

4 that the order or revocation was lawfully made and 

5 duly served and that the person violated the order 

6 or revocation, the court shall enforce the order or 

7 revocation. 

8 ‘‘(3) CIVIL PENALTY.—If the court finds that 

9 the person violated the order or revocation, the per10 son shall be subject to a civil penalty of not more 

11 than $10,000 for each offense.’’. 

12 SEC. 10010. REPORT ON HONEY. 

13 (a) IN GENERAL.—Not later than 180 days after the 

14 date of enactment of this Act, the Secretary, in consulta15 tion with affected stakeholders, shall submit to the Com16 missioner of Food and Drugs a report describing how an 

17 appropriate Federal standard for the identity of honey 

18 would promote honesty and fair dealing and would be in 

19 the interest of consumers, the honey industry, and United 

20 States agriculture. 

21 (b) CONTENTS.—In preparing the report under sub22 section (a), the Secretary shall take into consideration the 

23 March 2006 Standard of Identity citizens petition filed 

24 with the Food and Drug Administration, including any 


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1 current industry amendments or clarifications necessary 

2 to update that 2006 petition. 

3 SEC. 10011. REMOVAL OF AMS INSPECTION AUTHORITY 

4 OVER APPLES IN BULK BINS. 

5 (a) DEFINITION OF BULK BIN.—In this section, the 

6 term ‘‘bulk bin’’ means a bin that contains a quantity of 

7 apples weighing more than 100 pounds. 

8 (b) PROHIBITION.—Notwithstanding any other provi9 sion of law, the Secretary of Agriculture, acting through 

10 the Agricultural Marketing Service, shall have no author11 ity to inspect apples in bulk bins prior to export to Can12 ada. 

13 SEC. 10012. ORGANIC PRODUCT PROMOTION ORDERS. 

14 (a) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS

15 FROM PROMOTION ORDER ASSESSMENTS.—Section 501 

16 of the Federal Agriculture Improvement and Reform Act 

17 of 1996 (7 U.S.C. 7401) is amended by striking sub18 section (e) and inserting the following: 

19 ‘‘(e) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS

20 FROM PROMOTION ORDER ASSESSMENTS.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding any provi22 sion of a commodity promotion law, a person that 

23 produces, handles, markets, or imports organic prod24 ucts may be exempt from the payment of an assess25 ment under a commodity promotion law with respect 


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1 to any agricultural commodity that is certified as 

2 ‘organic’ or ‘100 percent organic’ (as defined in part 

3 205 of title 7, Code of Federal Regulations (or suc4 cessor regulations)). 

5 ‘‘(2) SPLIT OPERATIONS.—The exemption de6 scribed in paragraph (1) shall apply to an agricul7 tural commodity described in that paragraph regard8 less of whether the agricultural commodity subject 

9 to the exemption is produced, handled, or marketed 

10 by a person that also produces, handles, or markets 

11 conventional or nonorganic agricultural products, in12 cluding conventional or nonorganic agricultural 

13 products of the same agricultural commodity as that 

14 for which the exemption is claimed. 

15 ‘‘(3) APPROVAL.—The Secretary shall approve 

16 the exemption of a person under this subsection if 

17 the person maintains a valid organic certificate 

18 issued under the Organic Foods Production Act of 

19 1990 (7 U.S.C. 6501 et seq.). 

20 ‘‘(4) TERMINATION OF EFFECTIVENESS.—This 

21 subsection shall be effective until the date on which 

22 the Secretary issues an organic commodity pro23 motion order in accordance with subsection (f). 


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1 ‘‘(5) REGULATIONS.—The Secretary shall pro2 mulgate regulations concerning eligibility and com3 pliance for an exemption under paragraph (1).’’. 

4 (b) ORGANIC COMMODITY PROMOTION ORDER.—Sec5 tion 501 of the Federal Agriculture Improvement and Re6 form Act of 1996 (7 U.S.C. 7401) (as amended by sub7 section (a)) is amended by adding at the end the following: 

8 ‘‘(f) ORGANIC COMMODITY PROMOTION ORDER.— 

9 ‘‘(1) DEFINITIONS.—In this subsection: 

10 ‘‘(A) CERTIFIED ORGANIC FARM.—The 

11 term ‘certified organic farm’ has the meaning 

12 given the term in section 2103 of the Organic 

13 Foods Production Act of 1990 (7 U.S.C. 6502). 

14 ‘‘(B) COVERED PERSON.—The term ‘cov15 ered person’ means a producer, handler, mar16 keter, or importer of an organic agricultural 

17 commodity. 

18 ‘‘(C) DUAL-COVERED AGRICULTURAL COM19 MODITY.—The term ‘dual-covered agricultural 

20 commodity’ means an agricultural commodity 

21 that— 

22 ‘‘(i) is produced on a certified organic 

23 farm; and 

24 ‘‘(ii) is covered under both— 


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1 ‘‘(I) an organic commodity pro2 motion order issued under paragraph 

3 (2); and 

4 ‘‘(II) any other agricultural com5 modity promotion order issued under 

6 this section. 

7 ‘‘(2) AUTHORIZATION.—The Secretary may 

8 issue an organic commodity promotion order under 

9 section 514 that includes any agricultural com10 modity that— 

11 ‘‘(A) is— 

12 ‘‘(i) produced or handled (as defined 

13 in section 2103 of the Organic Foods Pro14 duction Act of 1990 (7 U.S.C. 6502)); and 

15 ‘‘(ii) certified to be sold or labeled as 

16 ‘organic’ or ‘100 percent organic’ (as de17 fined in part 205 of title 7, Code of Fed18 eral Regulations (or successor regula19 tions)); or 

20 ‘‘(B) is imported with a valid organic cer21 tificate (as defined in that part). 

22 ‘‘(3) ELECTION.—If the Secretary issues an or23 ganic commodity promotion order described in para24 graph (2), a covered person may elect, for applicable 

25 dual-covered agricultural commodities and in the 


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1 sole discretion of the covered person, whether to be 

2 assessed under the organic commodity promotion 

3 order or another applicable agricultural commodity 

4 promotion order. 

5 ‘‘(4) REGULATIONS.—The Secretary shall pro6 mulgate regulations concerning eligibility and com7 pliance for an exemption under paragraph (1).’’. 

8 (c) DEFINITION OF AGRICULTURAL COMMODITY.— 

9 Section 513(1) of the Commodity Promotion, Research, 

10 and Information Act of 1996 (7 U.S.C. 7412(1)) is 

11 amended— 

12 (1) by redesignating subparagraphs (E) and 

13 (F) as subparagraphs (F) and (G), respectively; and 

14 (2) by inserting after subparagraph (D) the fol15 lowing: 

16 ‘‘(E) products, as a class, that are pro17 duced on a certified organic farm (as defined in 

18 section 2103 of the Organic Foods Production 

19 Act of 1990 (7 U.S.C. 6502)) and that are cer20 tified to be sold or labeled as ‘organic’ or ‘100 

21 percent organic’ (as defined in part 205 of title 

22 7, Code of Federal Regulations (or successor 

23 regulations));’’. 


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1 SEC. 10013. EFFECTIVE DATE. 

2 This title and the amendments made by this title take 

3 effect on October 1, 2013. 

4 TITLE XI—CROP INSURANCE 

5 SEC. 11001. SUPPLEMENTAL COVERAGE OPTION. 

6 (a) AVAILABILITY OF SUPPLEMENTAL COVERAGE

7 OPTION.—Section 508(c) of the Federal Crop Insurance 

8 Act (7 U.S.C. 1508(c)) is amended by striking paragraph 

9 (3) and inserting the following: 

10 ‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A pro11 ducer shall have the option of purchasing additional 

12 coverage based on— 

13 ‘‘(A)(i) an individual yield and loss basis; 

14 or 

15 ‘‘(ii) an area yield and loss basis; or 

16 ‘‘(B) an individual yield and loss basis, 

17 supplemented with coverage based on an area 

18 yield and loss basis to cover part of the deduct19 ible under the individual yield and loss policy, 

20 as authorized in paragraph (4)(C).’’. 

21 (b) LEVEL OF COVERAGE.—Section 508(c) of the 

22 Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amend23 ed by striking paragraph (4) and inserting the following: 

24 ‘‘(4) LEVEL OF COVERAGE.— 


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1 ‘‘(A) DOLLAR DENOMINATION AND PER2 CENTAGE OF YIELD.—Except as provided in 

3 subparagraph (C), the level of coverage— 

4 ‘‘(i) shall be dollar denominated; and 

5 ‘‘(ii) may be purchased at any level 

6 not to exceed 85 percent of the individual 

7 yield or 95 percent of the area yield (as de8 termined by the Corporation). 

9 ‘‘(B) INFORMATION.—The Corporation 

10 shall provide producers with information on cat11 astrophic risk and additional coverage in terms 

12 of dollar coverage (within the allowable limits of 

13 coverage provided in this paragraph). 

14 ‘‘(C) SUPPLEMENTAL COVERAGE OP15 TION.— 

16 ‘‘(i) IN GENERAL.—Notwithstanding 

17 subparagraph (A), in the case of the sup18 plemental coverage option described in 

19 paragraph (3)(B), the Corporation shall 

20 offer producers the opportunity to pur21 chase coverage in combination with an in22 dividual buy up policy or plan of insurance 

23 offered under this subtitle that would allow 

24 indemnities to be paid to a producer equal 

25 to part of the deductible under the policy 


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1 or plan of insurance, if sufficient area data 

2 is available (as determined by the Corpora3 tion). 

4 ‘‘(ii) DEDUCTIBLE.—Coverage offered 

5 under this subparagraph shall be subject to 

6 a deductible in an amount equal to— 

7 ‘‘(I) in the case of a producer 

8 who participates in the agriculture 

9 risk coverage program under section 

10 1108(c) of the Agriculture Reform, 

11 Food, and Jobs Act of 2013, 22 per12 cent of the expected value of the crop 

13 of the producer covered by the under14 lying policy or plan of insurance, as 

15 determined by the Corporation; and 

16 ‘‘(II) in the case of all other pro17 ducers, 10 percent of the expected 

18 value of the crop of the producer cov19 ered by the underlying policy or plan 

20 of insurance, as determined by the 

21 Corporation. 

22 ‘‘(iii) COVERAGE.—Subject to the de23 ductible imposed by clause (ii), coverage 

24 offered under this subparagraph shall 

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1 ducer, not to exceed the difference be2 tween— 

3 ‘‘(I) 100 percent; and 

4 ‘‘(II) the coverage level selected 

5 by the producer for the underlying 

6 policy or plan of insurance. 

7 ‘‘(iv) CALCULATION OF PREMIUM.— 

8 Notwithstanding subsection (d), the pre9 mium shall— 

10 ‘‘(I) be sufficient to cover antici11 pated losses and a reasonable reserve; 

12 and 

13 ‘‘(II) include an amount for oper14 ating and administrative expenses es15 tablished in accordance with sub16 section (k)(4)(F).’’. 

17 (c) PAYMENT OF PORTION OF PREMIUM BY COR18 PORATION.—Section 508(e)(2) of the Federal Crop Insur19 ance Act (7 U.S.C. 1508(e)(2)) is amended by adding at 

20 the end the following: 

21 ‘‘(H) In the case of the supplemental cov22 erage option authorized in subsection (c)(4)(C), 

23 the amount shall be equal to the sum of— 

24 ‘‘(i) 65 percent of the additional pre25 mium associated with the coverage; and 


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1 ‘‘(ii) the amount determined under 

2 subsection (c)(4)(C)(iv)(II) for the cov3 erage to cover operating and administra4 tive expenses.’’. 

5 (d) CONFORMING AMENDMENT.—Section 

6 508(k)(4)(F) of the Federal Crop Insurance Act (7 U.S.C. 

7 1508(k)(4)(F)) is amended by inserting ‘‘or authorized 

8 under subsection (c)(4)(C)’’ after ‘‘of this subparagraph’’. 

9 (e) EFFECTIVE DATE.—The Federal Crop Insurance 

10 Corporation shall begin to provide additional coverage 

11 based on an individual yield and loss basis, supplemented 

12 with coverage based on an area yield and loss basis, not 

13 later than for the 2014 crop year. 

14 SEC. 11002. CROP MARGIN COVERAGE OPTION. 

15 (a) AVAILABILITY OF CROP MARGIN COVERAGE OP16 TION.—Section 508(c)(3) of the Federal Crop Insurance 

17 Act (7 U.S.C. 1508(c)) (as amended by section 11001(a)) 

18 is amended— 

19 (1) in subparagraph (A)(ii), by striking ‘‘or’’ at 

20 the end; 

21 (2) in subparagraph (B), by striking the period 

22 at the end and inserting ‘‘; or’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(C) a margin basis alone or in combina25 tion with— 


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1 ‘‘(i) individual yield and loss coverage; 

2 or 

3 ‘‘(ii) area yield and loss coverage.’’. 

4 SEC. 11003. PREMIUM AMOUNTS FOR CATASTROPHIC RISK 

5 PROTECTION. 

6 Section 508(d)(2) of the Federal Crop Insurance Act 

7 (7 U.S.C. 1508(d)(2)) is amended by striking subpara8 graph (A) and inserting the following: 

9 ‘‘(A) In the case of catastrophic risk pro10 tection, the amount of the premium established 

11 by the Corporation for each crop for which cat12 astrophic risk protection is available shall be re13 duced by the percentage equal to the difference 

14 between the average loss ratio for the crop and 

15 100 percent, plus a reasonable reserve, as de16 termined by the Corporation.’’. 

17 SEC. 11004. PERMANENT ENTERPRISE UNIT. 

18 Section 508(e)(5) of the Federal Crop Insurance Act 

19 (7 U.S.C. 1508(e)(5)) is amended by striking subpara20 graph (A) and inserting the following: 

21 ‘‘(A) IN GENERAL.—The Corporation may 

22 pay a portion of the premiums for plans or poli23 cies of insurance for which the insurable unit is 

24 defined on a whole farm or enterprise unit basis 


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1 that is higher than would otherwise be paid in 

2 accordance with paragraph (2).’’. 

3 SEC. 11005. ENTERPRISE UNITS FOR IRRIGATED AND NON4 IRRIGATED CROPS. 

5 Section 508(e)(5) of the Federal Crop Insurance Act 

6 (7 U.S.C. 1508(e)(5)) is amended by adding at the end 

7 the following: 

8 ‘‘(D) NONIRRIGATED CROPS.—Beginning 

9 with the 2014 crop year, the Corporation shall 

10 make available separate enterprise units for ir11 rigated and nonirrigated acreages of crops in 

12 counties.’’. 

13 SEC. 11006. DATA COLLECTION. 

14 Section 508(g)(2) of the Federal Crop Insurance Act 

15 (7 U.S.C. 1508(g)(2)) is amended by adding at the end 

16 the following: 

17 ‘‘(E) SOURCES OF YIELD DATA.—To deter18 mine yields under this paragraph, the Corpora19 tion— 

20 ‘‘(i) shall use county data collected by 

21 the Risk Management Agency or the Na22 tional Agricultural Statistics Service, or 

23 both; or 


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1 ‘‘(ii) if sufficient county data is not 

2 available, may use other data considered 

3 appropriate by the Secretary.’’. 

4 SEC. 11007. ADJUSTMENT IN ACTUAL PRODUCTION HIS5 TORY TO ESTABLISH INSURABLE YIELDS. 

6 Section 508(g)(4)(B) of the Federal Crop Insurance 

7 Act (7 U.S.C. 1508(g)(4)(B)) is amended— 

8 (1) in the matter preceding clause (i), by insert9 ing ‘‘for the 2013 crop year or any prior crop year, 

10 or 65 percent of the applicable transitional yield for 

11 the 2014 or any subsequent crop year,’’ after ‘‘tran12 sitional yield’’; and 

13 (2) in clause (ii), by striking ‘‘60 percent of the 

14 applicable transitional yield’’ and inserting ‘‘the ap15 plicable percentage of the transitional yield described 

16 in this subparagraph’’. 

17 SEC. 11008. SUBMISSION AND REVIEW OF POLICIES. 

18 Section 508(h)(1) of the Federal Crop Insurance Act 

19 (7 U.S.C. 1508(h)(1)) is amended— 

20 (1) by redesignating subparagraphs (A) and 

21 (B) as clauses (i) and (ii), respectively, and indent22 ing appropriately; 

23 (2) by striking ‘‘(1) IN GENERAL.—’’ and in24 serting the following: 

25 ‘‘(1) SUBMISSION AND REVIEW OF POLICIES.— 


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1 ‘‘(A) SUBMISSIONS.—In addition’’; and 

2 (3) by adding at the end the following: 

3 ‘‘(B) REVIEW.—The Corporation shall re4 view any policy developed under section 522(c) 

5 or any pilot program developed under section 

6 523 and submit the policy or program to the 

7 Board under this subsection if the Corporation, 

8 at the sole discretion of the Corporation, finds 

9 that the policy or program— 

10 ‘‘(i) will likely result in a viable and 

11 marketable policy consistent with this sub12 section; 

13 ‘‘(ii) would provide crop insurance 

14 coverage in a significantly improved form; 

15 and 

16 ‘‘(iii) adequately protects the interests 

17 of producers.’’. 

18 SEC. 11009. BOARD REVIEW AND APPROVAL. 

19 (a) REVIEW AND APPROVAL BY THE BOARD.—Sec20 tion 508(h) of the Federal Crop Insurance Act (7 U.S.C. 

21 1508(h)) is amended by striking paragraph (3) and insert22 ing the following: 

23 ‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— 

24 ‘‘(A) IN GENERAL.—A policy, plan of in25 surance, or other material submitted to the 


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1 Board under this subsection shall be reviewed 

2 by the Board and shall be approved by the 

3 Board for reinsurance and for sale by approved 

4 insurance providers to producers at actuarially 

5 appropriate rates and under appropriate terms 

6 and conditions if the Board, at the sole discre7 tion of the Board, determines that— 

8 ‘‘(i) the interests of producers are 

9 adequately protected; 

10 ‘‘(ii) the rates of premium and price 

11 election methodology are actuarially appro12 priate; 

13 ‘‘(iii) the terms and conditions for the 

14 proposed policy or plan of insurance are 

15 appropriate and would not unfairly dis16 criminate among producers; 

17 ‘‘(iv) the proposed policy or plan of in18 surance will, at the sole discretion of the 

19 Board— 

20 ‘‘(I) likely result in a viable and 

21 marketable policy that can reasonably 

22 attain levels of participation similar to 

23 other like policies or plans of insur24 ance; 


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1 ‘‘(II) provide crop insurance cov2 erage in a significantly improved form 

3 or in a manner that addresses a rec4 ognized flaw or problem in an existing 

5 policy; or 

6 ‘‘(III) provide a new kind of cov7 erage for a commodity that previously 

8 had no available crop insurance, or 

9 has demonstrated a low level of par10 ticipation under existing coverage; 

11 ‘‘(v) the proposed policy or plan of in12 surance will, at the sole discretion of the 

13 Board, not have a significant adverse im14 pact on the crop insurance delivery system; 

15 and 

16 ‘‘(vi) the proposed policy or plan of in17 surance meets such other requirements as 

18 are determined appropriate by the Board. 

19 ‘‘(B) PRIORITIES.— 

20 ‘‘(i) ESTABLISHMENT.—The Board, 

21 at the sole discretion of the Board, may— 

22 ‘‘(I) annually establish priorities 

23 under this subsection that specify 

24 types of submissions needed to fulfill 

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1 surance to be reviewed and approved 

2 under this subsection; and 

3 ‘‘(II) make the priorities avail4 able on the website of the Corpora5 tion. 

6 ‘‘(ii) PROCESS.— 

7 ‘‘(I) IN GENERAL.—Policies or 

8 plans of insurance that satisfy the pri9 orities established by the Board under 

10 this subsection shall be considered by 

11 the Board for approval prior to other 

12 submissions. 

13 ‘‘(II) CONSIDERATIONS.—In ap14 proving policies or plans of insurance, 

15 the Board shall— 

16 ‘‘(aa) consider providing the 

17 highest priorities for policies or 

18 plans of insurance that address 

19 underserved commodities, includ20 ing commodities for which there 

21 is no insurance; and 

22 ‘‘(bb) consider providing the 

23 highest priorities for existing 

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1 equate coverage or there exists 

2 low levels of participation. 

3 ‘‘(iii) OTHER CRITERIA.—The Board 

4 may establish such other criteria as the 

5 Board determines to meet the needs of 

6 producers and the priorities of this sub7 section, consistent with the purposes of 

8 this subtitle.’’. 

9 SEC. 11010. CONSULTATION. 

10 Section 508(h)(4) of the Federal Crop Insurance Act 

11 (7 U.S.C. 1508(h)) is amended by adding at the end the 

12 following: 

13 ‘‘(E) CONSULTATION.— 

14 ‘‘(i) REQUIREMENT.—As part of the 

15 feasibility and research associated with the 

16 development of a policy or other material 

17 conducted prior to making a submission to 

18 the Board under this subsection, the sub19 mitter shall consult with groups rep20 resenting producers of agricultural com21 modities in all major producing areas for 

22 the commodities to be served or potentially 

23 impacted, either directly or indirectly. 

24 ‘‘(ii) SUBMISSION TO THE BOARD.— 

25 Any submission made to the Board under 


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1 this subsection shall contain a summary 

2 and analysis of the feasibility and research 

3 findings from the impacted groups de4 scribed in clause (i), including a summary 

5 assessment of the support for or against 

6 development of the policy and an assess7 ment on the impact of the proposed policy 

8 to the general marketing and production of 

9 the crop from both a regional and national 

10 perspective. 

11 ‘‘(iii) EVALUATION BY THE BOARD.— 

12 In evaluating whether the interests of pro13 ducers are adequately protected pursuant 

14 to paragraph (3) with respect to an sub15 mission made under this subsection, the 

16 Board shall review the information pro17 vided pursuant to clause (ii) to determine 

18 if the submission will create adverse mar19 ket distortions with respect to the produc20 tion of commodities that are the subject of 

21 the submission.’’. 


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1 SEC. 11011. BUDGET LIMITATIONS ON RENEGOTIATION OF 

2 THE STANDARD REINSURANCE AGREEMENT. 

3 Section 508(k)(8) of the Federal Crop Insurance Act 

4 (7 U.S.C. 1508(k)(8)) is amended by adding at the end 

5 the following: 

6 ‘‘(F) BUDGET.— 

7 ‘‘(i) IN GENERAL.—The Board shall 

8 ensure that any Standard Reinsurance 

9 Agreement negotiated under subparagraph 

10 (A)(ii), as compared to the previous Stand11 ard Reinsurance Agreement— 

12 ‘‘(I) to the maximum extent prac13 ticable, shall be budget neutral; and 

14 ‘‘(II) in no event, may signifi15 cantly depart from budget neutrality. 

16 ‘‘(ii) USE OF SAVINGS.—To the extent 

17 that any budget savings is realized in the 

18 renegotiation of a Standard Reinsurance 

19 Agreement under subparagraph (A)(ii), 

20 and the savings are determined not to be 

21 a significant departure from budget neu22 trality under clause (i), the savings shall 

23 be used for programs administered or 

24 managed by the Risk Management Agen25 cy.’’. 


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1 SEC. 11012. TEST WEIGHT FOR CORN. 

2 Section 508(m) of the Federal Crop Insurance Act 

3 (7 U.S.C. 1508(m)) is amended by adding at the end the 

4 following: 

5 ‘‘(6) TEST WEIGHT FOR CORN.— 

6 ‘‘(A) IN GENERAL.—The Corporation shall 

7 establish procedures to allow insured producers 

8 not more than 120 days to settle claims, in ac9 cordance with procedures established by the 

10 Secretary, involving corn that is determined to 

11 have low test weight. 

12 ‘‘(B) IMPLEMENTATION.—As soon as prac13 ticable after the date of enactment of this para14 graph, the Corporation shall implement sub15 paragraph (A) on a regional basis based on 

16 market conditions and the interests of pro17 ducers. 

18 ‘‘(C) TERMINATION OF EFFECTIVENESS.— 

19 The authority provided by this paragraph ter20 minates effective on the date that is 5 years 

21 after the date on which subparagraph (A) is im22 plemented.’’. 

23 SEC. 11013. STACKED INCOME PROTECTION PLAN FOR PRO24 DUCERS OF UPLAND COTTON. 

25 (a) AVAILABILITY OF STACKED INCOME PROTECTION

26 PLAN.—The Federal Crop Insurance Act is amended by 


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1 inserting after section 508A (7 U.S.C. 1508a) the fol2 lowing: 

3 ‘‘SEC. 508B. STACKED INCOME PROTECTION PLAN FOR 

4 PRODUCERS OF UPLAND COTTON. 

5 ‘‘(a) AVAILABILITY.—Beginning not later than the 

6 2014 crop of upland cotton, if practicable, the Corporation 

7 shall make available to producers of maximum eligible 

8 acres of upland cotton an additional policy (to be known 

9 as the ‘Stacked Income Protection Plan’), which shall pro10 vide coverage consistent with the Group Risk Income Pro11 tection Plan (and the associated Harvest Revenue Option 

12 Endorsement) offered by the Corporation for the 2011 

13 crop year. 

14 ‘‘(b) REQUIRED TERMS.—The Corporation may mod15 ify the Stacked Income Protection Plan on a program-wide 

16 basis, except that the Stacked Income Protection Plan 

17 shall comply with the following requirements: 

18 ‘‘(1)(A) Provide coverage for revenue loss of not 

19 more than 30 percent of expected county revenue, 

20 specified in increments of 5 percent. 

21 ‘‘(B) The deductible is the minimum percent of 

22 revenue loss at which indemnities are triggered 

23 under the plan, not to be less than 10 percent of the 

24 expected county revenue. 


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1 ‘‘(C) Once the deductible is met, any losses in 

2 excess of the deductible will be paid up to the cov3 erage selected by the producer. 

4 ‘‘(2) Be offered to producers of upland cotton 

5 in all counties with upland cotton production— 

6 ‘‘(A) at a county-wide level to the fullest 

7 extent practicable; or 

8 ‘‘(B) in counties that lack sufficient data, 

9 on the basis of such larger geographical area as 

10 the Corporation determines to provide sufficient 

11 data for purposes of providing the coverage. 

12 ‘‘(3) Be purchased in addition to any other in13 dividual or area coverage in effect on the producer’s 

14 acreage or as a stand-alone policy, except that if a 

15 producer has an individual or area coverage for the 

16 same acreage, the maximum coverage available 

17 under the Stacked Income Protection Plan shall not 

18 exceed the deductible for the individual or area cov19 erage. 

20 ‘‘(4) Establish coverage based on— 

21 ‘‘(A) an expected price that is the expected 

22 price established under existing Group Risk In23 come Protection or area wide policy offered by 

24 the Corporation for the applicable county (or 

25 area) and crop year; and 


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1 ‘‘(B) an expected county yield that is the 

2 higher of— 

3 ‘‘(i) the expected county yield estab4 lished for the existing area-wide plans of5 fered by the Corporation for the applicable 

6 county (or area) and crop year (or, in geo7 graphic areas where area-wide plans are 

8 not offered, an expected yield determined 

9 in a manner consistent with those of area10 wide plans); or 

11 ‘‘(ii)(I) the average of the applicable 

12 yield data for the county (or area) for the 

13 most recent 5 years, excluding the highest 

14 and lowest observations, from the Risk 

15 Management Agency or the National Agri16 cultural Statistics, or both; or 

17 ‘‘(II) if sufficient county data is not 

18 available, such other data considered ap19 propriate by the Secretary. 

20 ‘‘(5) Use a multiplier factor to establish max21 imum protection per acre (referred to as a ‘protec22 tion factor’) of not more than 120 percent. 

23 ‘‘(6) Pay an indemnity based on the amount 

24 that the expected county revenue exceeds the actual 

25 county revenue, as applied to the individual coverage 


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1 of the producer. Indemnities under the Stacked In2 come Protection Plan shall not include or overlap 

3 the amount of the deductible selected under para4 graph (1). 

5 ‘‘(7) To the maximum extent practicable, in all 

6 counties for which data are available, establish sepa7 rate coverage for irrigated and nonirrigated prac8 tices. 

9 ‘‘(8) Notwithstanding section 508(d), include a 

10 premium that— 

11 ‘‘(A) is sufficient to cover anticipated 

12 losses and a reasonable reserve; and 

13 ‘‘(B) includes an amount for operating and 

14 administrative expenses established in accord15 ance with section 508(k)(4)(F). 

16 ‘‘(c) RELATION TO OTHER COVERAGES.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), the Stacked Income Protection Plan is in 

19 addition to all other coverages available to producers 

20 of upland cotton. 

21 ‘‘(2) LIMITATION.—Acreage of upland cotton 

22 insured under the Supplemental Coverage Option 

23 shall not be eligible for the Stacked Income Protec24 tion Plan. 


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1 ‘‘(d) PAYMENT OF PORTION OF PREMIUM BY COR2 PORATION.—Subject to section 508(e)(4), the amount of 

3 premium paid by the Corporation for all qualifying cov4 erage levels of the Stacked Income Protection Plan shall 

5 be— 

6 ‘‘(1) 80 percent of the amount of the premium 

7 established under subsection (b)(8)(A) for the cov8 erage level selected; and 

9 ‘‘(2) the amount determined under subsection 

10 (b)(8)(B) to cover administrative and operating ex11 penses.’’. 

12 (b) CONFORMING AMENDMENT.—Section 

13 508(k)(4)(F) of the Federal Crop Insurance Act (7 U.S.C. 

14 1508(k)(4)(F)) (as amended by section 11001(d)) is 

15 amended by inserting ‘‘or under section 508B’’ after ‘‘sub16 section (c)(4)(C)’’. 

17 SEC. 11014. PEANUT REVENUE CROP INSURANCE. 

18 The Federal Crop Insurance Act is amended by in19 serting after section 508B (as added by section 11013(a)) 

20 the following: 

21 ‘‘SEC. 508C. PEANUT REVENUE CROP INSURANCE. 

22 ‘‘(a) IN GENERAL.—Effective beginning with the 

23 2014 crop year, the Risk Management Agency and the 

24 Corporation shall make available to producers of peanuts 

25 a revenue crop insurance program for peanuts. 


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1 ‘‘(b) EFFECTIVE PRICE.— 

2 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

3 for purposes of the policies and plans of insurance 

4 offered under subsections (a) and (b) of section 508, 

5 the effective price for peanuts shall be equal to the 

6 Rotterdam price index for peanuts, as adjusted to 

7 reflect the farmer stock price of peanuts in the 

8 United States. 

9 ‘‘(2) ADJUSTMENTS.— 

10 ‘‘(A) IN GENERAL.—The effective price for 

11 peanuts established under paragraph (1) may 

12 be adjusted by the Risk Management Agency 

13 and the Corporation to correct distortions. 

14 ‘‘(B) ADMINISTRATION.—If an adjustment 

15 is made under subparagraph (A), the Risk 

16 Management Agency and the Corporation 

17 shall— 

18 ‘‘(i) make the adjustment in an open 

19 and transparent manner; and 

20 ‘‘(ii) submit to the Committee on Ag21 riculture of the House of Representatives 

22 and the Committee on Agriculture, Nutri23 tion, and Forestry of the Senate a report 

24 that describes the reasons for the adjust25 ment.’’. 


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1 SEC. 11015. AUTHORITY TO CORRECT ERRORS. 

2 Section 515(c) of the Federal Crop Insurance Act (7 

3 U.S.C. 1515(c)) is amended— 

4 (1) in the first sentence, by striking ‘‘The Sec5 retary’’ and inserting the following: 

6 ‘‘(1) IN GENERAL.—The Secretary’’; 

7 (2) in the second sentence, by striking ‘‘Begin8 ning with’’ and inserting the following: 

9 ‘‘(2) FREQUENCY.—Beginning with’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(3) CORRECTIONS.— 

12 ‘‘(A) IN GENERAL.—The Corporation shall 

13 establish procedures that allow an agent and 

14 approved insurance provider within a reasonable 

15 amount of time following the applicable sales 

16 closing date to correct information regarding 

17 the entity name, social security number, tax 

18 identification number, or such other eligibility 

19 information as determined by the Corporation 

20 that is provided by a producer for the purpose 

21 of obtaining coverage under any policy or plan 

22 of insurance made available under this subtitle 

23 to ensure that the eligibility information is con24 sistent with the information reported by the 

25 producer to the Farm Service Agency. 


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1 ‘‘(B) LIMITATION.—In accordance with the 

2 procedures of the Corporation, procedures 

3 under subparagraph (A) may include any subse4 quent correction to the eligibility information 

5 described in that subparagraph made by the 

6 Farm Service Agency if the corrections do not 

7 allow the producer— 

8 ‘‘(i) to obtain a disproportionate ben9 efit under the crop insurance program or 

10 any related program of the Department of 

11 Agriculture; 

12 ‘‘(ii) to avoid ineligibility requirements 

13 for insurance; or 

14 ‘‘(iii) to avoid an obligation or re15 quirement under any Federal or State 

16 law.’’. 

17 SEC. 11016. IMPLEMENTATION. 

18 Section 515 of the Federal Crop Insurance Act (7 

19 U.S.C. 1515) is amended— 

20 (1) in subsection (j), by striking paragraph (1) 

21 and inserting the following: 

22 ‘‘(1) SYSTEMS MAINTENANCE AND UP23 GRADES.— 

24 ‘‘(A) IN GENERAL.—The Secretary shall 

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1 ment systems of the Corporation used in the 

2 administration and enforcement of this subtitle. 

3 ‘‘(B) REQUIREMENT.— 

4 ‘‘(i) IN GENERAL.—In maintaining 

5 and upgrading the systems, the Secretary 

6 shall ensure that new hardware and soft7 ware are compatible with the hardware and 

8 software used by other agencies of the De9 partment to maximize data sharing and 

10 promote the purposes of this section. 

11 ‘‘(ii) ACREAGE REPORT STREAM12 LINING INITIATIVE PROJECT.—As soon as 

13 practicable, the Secretary shall develop and 

14 implement an acreage report streamlining 

15 initiative project to allow producers to re16 port acreage and other information directly 

17 to the Department.’’; and 

18 (2) in subsection (k), by striking paragraph (1) 

19 and inserting the following: 

20 ‘‘(1) INFORMATION TECHNOLOGY.— 

21 ‘‘(A) IN GENERAL.—For purposes of sub22 section (j)(1), the Corporation may use, from 

23 amounts made available from the insurance 

24 fund established under section 516(c), not more 

25 than— 


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1 ‘‘(i)(I) for fiscal year 2014, 

2 $25,000,000; and 

3 ‘‘(II) for each of fiscal years 2015 

4 through 2018, $10,000,000; or 

5 ‘‘(ii) if the Acreage Crop Reporting 

6 Streamlining Initiative (ACRSI) project is 

7 substantially completed by September 30, 

8 2013, not more than $15,000,000 for each 

9 of fiscal years 2015 through 2018. 

10 ‘‘(B) NOTIFICATION.—Not later than July 

11 1, 2013, the Secretary shall notify the Com12 mittee on Agriculture of the House of Rep13 resentatives and the Committee on Agriculture, 

14 Nutrition, and Forestry of the Senate on the 

15 status of the substantial completion of the 

16 Acreage Crop Reporting Streamlining Initiative 

17 (ACRSI) project.’’. 

18 SEC. 11017. CROP INSURANCE FRAUD. 

19 Section 516(b)(2) of the Federal Crop Insurance Act 

20 (7 U.S.C. 1516(b)(2)) is amended by adding at the end 

21 the following: 

22 ‘‘(C) REVIEWS, COMPLIANCE, AND PRO23 GRAM INTEGRITY.—For each of the 2014 and 

24 subsequent reinsurance years, the Corporation 

25 may use the insurance fund established under 


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1 subsection (c), but not to exceed $5,000,000 for 

2 each fiscal year, to pay the following: 

3 ‘‘(i) Costs to reimburse expenses in4 curred for the review of policies, plans of 

5 insurance, and related materials and to as6 sist the Corporation in maintaining pro7 gram integrity. 

8 ‘‘(ii) In addition to other available 

9 funds, costs incurred by the Risk Manage10 ment Agency for compliance operations as11 sociated with activities authorized under 

12 this title.’’. 

13 SEC. 11018. APPROVAL OF COSTS FOR RESEARCH AND DE14 VELOPMENT. 

15 Section 522(b)(2) of the Federal Crop Insurance Act 

16 (7 U.S.C. 1522(b)(2)) is amended by striking subpara17 graph (E) and inserting the following: 

18 ‘‘(E) APPROVAL.— 

19 ‘‘(i) IN GENERAL.—The Board may 

20 approve up to 50 percent of the projected 

21 total research and development costs to be 

22 paid in advance to an applicant, in accord23 ance with the procedures developed by the 

24 Board for the making of the payments, if, 

25 after consideration of the reviewer reports 


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1 described in subparagraph (D) and such 

2 other information as the Board determines 

3 appropriate, the Board determines that— 

4 ‘‘(I) the concept, in good faith, 

5 will likely result in a viable and mar6 ketable policy consistent with section 

7 508(h); 

8 ‘‘(II) at the sole discretion of the 

9 Board, the concept, if developed into a 

10 policy and approved by the Board, 

11 would provide crop insurance cov12 erage— 

13 ‘‘(aa) in a significantly im14 proved form or that addresses a 

15 unique need of agricultural pro16 ducers; 

17 ‘‘(bb) to a crop or region not 

18 traditionally served by the Fed19 eral crop insurance program; or 

20 ‘‘(cc) in a form that ad21 dresses a recognized flaw or 

22 problem in the program; 

23 ‘‘(III) the applicant agrees to 

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1 tion determines are necessary to mon2 itor the development effort; 

3 ‘‘(IV) the proposed budget and 

4 timetable are reasonable, as deter5 mined by the Board; and 

6 ‘‘(V) the concept proposal meets 

7 any other requirements that the 

8 Board determines appropriate. 

9 ‘‘(ii) WAIVER.—The Board may waive 

10 the 50-percent limitation and, upon re11 quest of the submitter after the submitter 

12 has begun research and development activi13 ties, the Board may approve an additional 

14 25 percent advance payment to the sub15 mitter for research and development costs, 

16 if, at the sole discretion of the Board, the 

17 Board determines that— 

18 ‘‘(I) the intended policy or plan 

19 of insurance developed by the sub20 mitter will provide coverage for a re21 gion or crop that is underserved by 

22 the Federal crop insurance program, 

23 including specialty crops; 

24 ‘‘(II) the submitter is making 

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1 oping a viable and marketable policy 

2 or plan of insurance consistent with 

3 section 508(h); and 

4 ‘‘(III) the submitter does not 

5 have sufficient financial resources to 

6 complete the development of the sub7 mission into a viable and marketable 

8 policy or plan of insurance consistent 

9 with section 508(h).’’. 

10 SEC. 11019. WHOLE FARM RISK MANAGEMENT INSURANCE. 

11 Section 522(c) of the Federal Crop Insurance Act (7 

12 U.S.C. 1522(c)) is amended by adding at the end the fol13 lowing: 

14 ‘‘(18) WHOLE FARM DIVERSIFIED RISK MAN15 AGEMENT INSURANCE PLAN.— 

16 ‘‘(A) IN GENERAL.—The Corporation shall 

17 conduct activities or enter into contracts to 

18 carry out research and development to develop 

19 a whole farm risk management insurance plan, 

20 with a liability limitation of $1,500,000, that 

21 allows a diversified crop or livestock producer 

22 the option to qualify for an indemnity if actual 

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1 pected of the producer, as determined by the 

2 Corporation. 

3 ‘‘(B) ELIGIBLE PRODUCERS.—The Cor4 poration shall permit producers (including di5 rect-to-consumer marketers, and producers 

6 servicing local and regional and farm identity7 preserved markets) who produce multiple agri8 cultural commodities, including specialty crops, 

9 industrial crops, livestock, and aquaculture 

10 products, to participate in the plan in lieu of 

11 any other plan under this subtitle. 

12 ‘‘(C) DIVERSIFICATION.—The Corporation 

13 may provide diversification-based additional 

14 coverage payment rates, premium discounts, or 

15 other enhanced benefits in recognition of the 

16 risk management benefits of crop and livestock 

17 diversification strategies for producers that 

18 grow multiple crops or that may have income 

19 from the production of livestock that uses a 

20 crop grown on the farm. 

21 ‘‘(D) MARKET READINESS.—The Corpora22 tion may include coverage for the value of any 

23 packing, packaging, or any other similar on24 farm activity the Corporation determines to be 


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1 the minimum required in order to remove the 

2 commodity from the field. 

3 ‘‘(E) REPORT.—Not later than 2 years 

4 after the date of enactment of this paragraph, 

5 the Corporation shall submit to the Committee 

6 on Agriculture of the House of Representatives 

7 and the Committee on Agriculture, Nutrition, 

8 and Forestry of the Senate a report that de9 scribes the results and feasibility of the re10 search and development conducted under this 

11 paragraph, including an analysis of potential 

12 adverse market distortions.’’. 

13 SEC. 11020. STUDY OF FOOD SAFETY INSURANCE. 

14 Section 522(c) of the Federal Crop Insurance Act (7 

15 U.S.C. 1522(c)) (as amended by section 11018) is amend16 ed by adding at the end the following: 

17 ‘‘(19) STUDY OF FOOD SAFETY INSURANCE.— 

18 ‘‘(A) IN GENERAL.—The Corporation shall 

19 offer to enter into a contract with 1 or more 

20 qualified entities to conduct a study to deter21 mine whether offering policies that provide cov22 erage for specialty crops from food safety and 

23 contamination issues would benefit agricultural 

24 producers. 


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1 ‘‘(B) SUBJECT.—The study described in 

2 subparagraph (A) shall evaluate policies and 

3 plans of insurance coverage that provide protec4 tion for production or revenue impacted by food 

5 safety concerns including, at a minimum, gov6 ernment, retail, or national consumer group an7 nouncements of a health advisory, removal, or 

8 recall related to a contamination concern. 

9 ‘‘(C) REPORT.—Not later than 1 year 

10 after the date of enactment of this paragraph, 

11 the Corporation shall submit to the Committee 

12 on Agriculture of the House of Representatives 

13 and the Committee on Agriculture, Nutrition, 

14 and Forestry of the Senate a report that de15 scribes the results of the study conducted under 

16 subparagraph (A).’’. 

17 SEC. 11021. CROP INSURANCE FOR LIVESTOCK. 

18 Section 522(c) of the Federal Crop Insurance Act (as 

19 amended by section 11019) is amended by adding at the 

20 end the following: 

21 ‘‘(20) STUDY ON SWINE CATASTROPHIC DIS22 EASE PROGRAM.— 

23 ‘‘(A) IN GENERAL.—The Corporation shall 

24 contract with a qualified person to conduct a 


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1 study to determine the feasibility of insuring 

2 swine producers for a catastrophic event. 

3 ‘‘(B) REPORT.—Not later than 1 year 

4 after the date of the enactment of this para5 graph, the Corporation shall submit to the 

6 Committee on Agriculture of the House of Rep7 resentatives and the Committee on Agriculture, 

8 Nutrition, and Forestry of the Senate a report 

9 that describes the results of the study con10 ducted under subparagraph (A).’’. 

11 SEC. 11022. MARGIN COVERAGE FOR CATFISH. 

12 Section 522(c) of the Federal Crop Insurance Act (as 

13 amended by section 11020) is amended by adding at the 

14 end the following: 

15 ‘‘(21) MARGIN COVERAGE FOR CATFISH.— 

16 ‘‘(A) IN GENERAL.—The Corporation shall 

17 offer to enter into a contract with a qualified 

18 entity to conduct research and development re19 garding a policy to insure producers against re20 duction in the margin between the market value 

21 of catfish and selected costs incurred in the 

22 production of catfish. 

23 ‘‘(B) ELIGIBILITY.—Eligibility for the pol24 icy described in subparagraph (A) shall be lim25 ited to freshwater species of catfish that are 


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1 propagated and reared in controlled or selected 

2 environments. 

3 ‘‘(C) IMPLEMENTATION.—The Board shall 

4 review the policy described in subparagraph (B) 

5 under subsection 508(h) and approve the policy 

6 if the Board finds that the policy— 

7 ‘‘(i) will likely result in a viable and 

8 marketable policy consistent with this sub9 section; 

10 ‘‘(ii) would provide crop insurance 

11 coverage in a significantly improved form; 

12 ‘‘(iii) adequately protects the interests 

13 of producers; and 

14 ‘‘(iv) the proposed policy meets other 

15 requirements of this subtitle determined 

16 appropriate by the Board.’’. 

17 SEC. 11023. POULTRY BUSINESS DISRUPTION INSURANCE 

18 POLICY. 

19 Section 522(c) of the Federal Crop Insurance Act (7 

20 U.S.C. 1522(c)) (as amended by section 11021) is amend21 ed by adding at the end the following: 

22 ‘‘(22) POULTRY BUSINESS DISRUPTION INSUR23 ANCE POLICY AND CATASTROPHIC DISEASE PRO24 GRAM.— 


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1 ‘‘(A) DEFINITION OF POULTRY.—In this 

2 paragraph, the term ‘poultry’ has the meaning 

3 given the term in section 2(a) of the Packers 

4 and Stockyards Act, 1921 (7 U.S.C. 182(a)). 

5 ‘‘(B) AUTHORITY.—The Corporation shall 

6 offer to enter into 1 or more contracts with 

7 qualified entities to carry out— 

8 ‘‘(i) a study to determine the feasi9 bility of insuring commercial poultry pro10 duction against business disruptions 

11 caused by integrator bankruptcy; and 

12 ‘‘(ii) a study to determine the feasi13 bility of insuring poultry producers for a 

14 catastrophic event. 

15 ‘‘(C) BUSINESS DISRUPTION STUDY.—The 

16 study described in subparagraph (B)(i) shall— 

17 ‘‘(i) evaluate the market place for 

18 business disruption insurance that is avail19 able to poultry producers; 

20 ‘‘(ii) assess the feasibility of a policy 

21 to allow producers to ensure against a por22 tion of losses from loss under contract due 

23 to business disruption from integrator 

24 bankruptcy; and 


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1 ‘‘(iii) analyze the costs to the Federal 

2 Government of a Federal business disrup3 tion insurance program for poultry pro4 ducers. 

5 ‘‘(D) REPORTS.—Not later than 1 year 

6 after the date of enactment of this paragraph, 

7 the Corporation shall submit to the Committee 

8 on Agriculture of the House of Representatives 

9 and the Committee on Agriculture, Nutrition, 

10 and Forestry of the Senate a report that de11 scribes the results of— 

12 ‘‘(i) the study carried out under sub13 paragraph (B)(i); and 

14 ‘‘(ii) the study carried out under sub15 paragraph (B)(ii).’’. 

16 SEC. 11024. STUDY OF CROP INSURANCE FOR SEAFOOD 

17 HARVESTERS. 

18 Section 522(c) of the Federal Crop Insurance Act (7 

19 U.S.C. 1522(c)) (as amended by section 11022) is amend20 ed by adding at the end the following: 

21 ‘‘(23) FEASIBILITY STUDY TO ASSIST SEAFOOD

22 HARVESTERS.— 

23 ‘‘(A) IN GENERAL.—The Corporation shall 

24 offer to enter into a contract with a qualified 

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1 mine the best method of insuring seafood har2 vesters, including such data collection and anal3 ysis as is necessary to conduct the study. 

4 ‘‘(B) REPORT.—Not later than 1 year 

5 after the date of enactment of this subsection, 

6 the Corporation shall submit to the Committee 

7 on Agriculture of the House of Representatives 

8 and the Committee on Agriculture, Nutrition, 

9 and Forestry of the Senate a report describing 

10 the results of the study.’’. 

11 SEC. 11025. BIOMASS AND SWEET SORGHUM ENERGY CROP 

12 INSURANCE POLICIES. 

13 Section 522(c) of the Federal Crop Insurance Act of 

14 1938 (7 U.S.C. 1522(c)) (as amended by section 11023) 

15 is amended by adding at the end the following: 

16 ‘‘(24) BIOMASS AND SWEET SORGHUM ENERGY

17 CROP INSURANCE POLICIES.— 

18 ‘‘(A) AUTHORITY.—The Corporation shall 

19 offer to enter into 1 or more contracts with 

20 qualified entities to carry out research and de21 velopment regarding— 

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1 able biofuel, renewable electricity, or 

2 biobased products; and 

3 ‘‘(ii) a policy to insure sweet sorghum 

4 that is grown for a purpose described in 

5 clause (i). 

6 ‘‘(B) RESEARCH AND DEVELOPMENT.— 

7 Research and development with respect to each 

8 of the policies described in subparagraph (A) 

9 shall evaluate the effectiveness of risk manage10 ment tools for the production of biomass sor11 ghum or sweet sorghum, including policies and 

12 plans of insurance that— 

13 ‘‘(i) are based on market prices and 

14 yields; 

15 ‘‘(ii) to the extent that insufficient 

16 data exist to develop a policy based on 

17 market prices and yields, are based on the 

18 use of weather indices, including, at a min19 imum, excessive or inadequate rainfall, to 

20 protect the interests of crop producers; and 

21 ‘‘(iii) provide protection for production 

22 or revenue losses, or both.’’. 


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1 SEC. 11026. ALFALFA CROP INSURANCE POLICY. 

2 Section 522(c) of the Federal Crop Insurance Act (7 

3 U.S.C. 1522(c)) (as amended by section 11024) is amend4 ed by adding at the end the following: 

5 ‘‘(25) ALFALFA CROP INSURANCE POLICY.— 

6 ‘‘(A) IN GENERAL.—The Corporation shall 

7 offer to enter into 1 or more contracts with 

8 qualified entities to carry out research and de9 velopment regarding a policy to insure alfalfa. 

10 ‘‘(B) REPORT.—Not later than 1 year 

11 after the date of enactment of this paragraph, 

12 the Corporation shall submit to the Committee 

13 on Agriculture of the House of Representatives 

14 and the Committee on Agriculture, Nutrition, 

15 and Forestry of the Senate a report that de16 scribes the results of the study conducted under 

17 subparagraph (A).’’. 

18 SEC. 11027. CROP INSURANCE FOR ORGANIC CROPS. 

19 (a) IN GENERAL.—Section 508(c)(6) of the Federal 

20 Crop Insurance Act (7 U.S.C. 1508(c)(6)) is amended by 

21 adding at the end the following: 

22 ‘‘(D) ORGANIC CROPS.— 

23 ‘‘(i) IN GENERAL.—As soon as pos24 sible, but not later than the 2015 reinsur25 ance year, the Corporation shall offer pro26 ducers of organic crops price elections for 


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1 all organic crops produced in compliance 

2 with standards issued by the Department 

3 of Agriculture under the national organic 

4 program established under the Organic 

5 Foods Production Act of 1990 (7 U.S.C. 

6 6501 et seq.) that reflect the actual retail 

7 or wholesale prices, as appropriate, re8 ceived by producers for organic crops, as 

9 determined by the Secretary using all rel10 evant sources of information. 

11 ‘‘(ii) ANNUAL REPORT.—The Corpora12 tion shall submit to the Committee on Ag13 riculture of the House of Representatives 

14 and the Committee on Agriculture, Nutri15 tion, and Forestry of the Senate an annual 

16 report on progress made in developing and 

17 improving Federal crop insurance for or18 ganic crops, including— 

19 ‘‘(I) the numbers and varieties of 

20 organic crops insured; 

21 ‘‘(II) the progress of imple22 menting the price elections required 

23 under this subparagraph, including 

24 the rate at which additional price elec25 tions are adopted for organic crops; 


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1 ‘‘(III) the development of new in2 surance approaches relevant to or3 ganic producers; and 

4 ‘‘(IV) any recommendations the 

5 Corporation considers appropriate to 

6 improve Federal crop insurance cov7 erage for organic crops.’’. 

8 (b) CONFORMING AMENDMENT.—Section 522(c) of 

9 the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as 

10 amended by section 11024) is amended— 

11 (1) by striking paragraph (10); and 

12 (2) by redesignating paragraphs (11) through 

13 (24) as paragraphs (10) through (23), respectively. 

14 SEC. 11028. RESEARCH AND DEVELOPMENT. 

15 (a) IN GENERAL.—Section 522(c) of the Federal 

16 Crop Insurance Act (7 U.S.C. 1522(c)) is amended— 

17 (1) in the subsection heading, by striking ‘‘Con18 tracting’’; 

19 (2) in paragraph (1), in the matter preceding 

20 subparagraph (A), by striking ‘‘may enter into con21 tracts to carry out research and development to’’ 

22 and inserting ‘‘may conduct activities or enter into 

23 contracts to carry out research and development to 

24 maintain or improve existing policies or develop new 

25 policies to’’; 


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1 (3) in paragraph (2)— 

2 (A) in subparagraph (A), by inserting 

3 ‘‘conduct research and development or’’ after 

4 ‘‘The Corporation may’’; and 

5 (B) by striking subparagraph (B) and in6 serting the following: 

7 ‘‘(B) CONSULTATION.—Before conducting 

8 research and development or entering into a 

9 contract under subparagraph (A), the Corpora10 tion shall follow the consultation requirements 

11 described in section 508(h)(4)(E).’’; 

12 (4) in paragraph (5), by inserting ‘‘after expert 

13 review in accordance with section 505(e) and proce14 dures of the Board’’ after ‘‘approved by the Board’’; 

15 and 

16 (5) in paragraph (6), by striking ‘‘a pasture, 

17 range, and forage program’’ and inserting ‘‘policies 

18 that increase participation by producers of under19 served agricultural commodities, including sweet sor20 ghum, sorghum for biomass, specialty crops, sugar21 cane, and dedicated energy crops’’. 

22 (b) FUNDING.—Section 522(e) of the Federal Crop 

23 Insurance Act (7 U.S.C. 1522(e)) is amended— 

24 (1) in paragraph (2)— 


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1 (A) by striking ‘‘(A) AUTHORITY.—’’ and 

2 inserting ‘‘(A) CONDUCTING AND CONTRACTING

3 FOR RESEARCH AND DEVELOPMENT.—’’; 

4 (B) in subparagraph (A), by inserting 

5 ‘‘conduct research and development and’’ after 

6 ‘‘the Corporation may use to’’; and 

7 (C) in subparagraph (B), by inserting 

8 ‘‘conduct research and development and’’ after 

9 ‘‘for the fiscal year to’’; 

10 (2) in paragraph (3), in the matter preceding 

11 subparagraph (A), by striking ‘‘to provide either re12 imbursement payments or contract payments’’; and 

13 (3) by striking paragraph (4). 

14 SEC. 11029. PILOT PROGRAMS. 

15 Section 523(a) of the Federal Crop Insurance Act (7 

16 U.S.C. 1523(a)) is amended— 

17 (1) in paragraph (1), by inserting ‘‘, at the sole 

18 discretion of the Corporation,’’ after ‘‘may’’; and 

19 (2) by striking paragraph (5). 

20 SEC. 11030. INDEX-BASED WEATHER INSURANCE PILOT 

21 PROGRAM. 

22 Section 523(a)(2) of the Federal Crop Insurance Act 

23 (7 U.S.C. 1523(a)(2)) is amended— 

24 (1) by striking ‘‘Under’’ inserting the following: 

25 ‘‘(A) IN GENERAL.—Under’’; and 


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1 (2) by adding at the end the following: 

2 ‘‘(B) INDEX-BASED WEATHER INSURANCE

3 PILOT PROGRAM.— 

4 ‘‘(i) IN GENERAL.—Notwithstanding 

5 subparagraph (A), the Corporation, at the 

6 sole discretion of the Corporation, may 

7 conduct a pilot program to provide finan8 cial assistance for producers of under9 served crops and livestock (including spe10 cialty crops) to purchase an index-based 

11 weather insurance product from a private 

12 insurance company, subject to the require13 ments of this subparagraph. 

14 ‘‘(ii) PAYMENT OF PREMIUM.— 

15 ‘‘(I) IN GENERAL.—Subject to 

16 subclause (II) and clause (v), the Cor17 poration may pay a portion of the pre18 mium for producers who purchase 

19 index-based weather insurance protec20 tion from a private insurance com21 pany for a crop and policy that is not 

22 reinsured under this subtitle, as deter23 mined by the Corporation. 

24 ‘‘(II) CONDITION.—The premium 

25 assistance under subclause (I) shall 


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1 not exceed 60 percent of the esti2 mated premium amount, based on ex3 pected losses, representative operating 

4 expenses, and representative profit 

5 margins, as determined by the Cor6 poration. 

7 ‘‘(iii) ELIGIBLE PROVIDERS.—Before 

8 providing premium assistance to producers 

9 to purchase index-based weather insurance 

10 from a private insurance company pursu11 ant to this subparagraph, the Corporation 

12 shall verify that the company has adequate 

13 experience— 

14 ‘‘(I) to develop and manage the 

15 index-based weather insurance prod16 ucts, including adequate resources, ex17 perience, and assets or sufficient rein18 surance to meet the obligations of the 

19 company under this subparagraph; 

20 and 

21 ‘‘(II) to support and deliver the 

22 index-based weather insurance prod23 ucts. 

24 ‘‘(iv) PROCEDURES.—The Corporation 

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1 minister the pilot program under this sub2 paragraph that— 

3 ‘‘(I) require each applicable pri4 vate insurance company to report 

5 claim and sales data, and any other 

6 data the Corporation determines to be 

7 appropriate, to allow the Corporation 

8 to evaluate product pricing and per9 formance; 

10 ‘‘(II) allow the private insurance 

11 companies exclusive rights over the 

12 private insurance offered under this 

13 subparagraph, including rating of 

14 policies, protection of intellectual 

15 property rights on the product or pol16 icy, and associated rating method17 ology, for the period during which the 

18 companies are eligible under clause 

19 (iii); and 

20 ‘‘(III) contain such other require21 ments as the Corporation determines 

22 to be necessary to ensure that— 

23 ‘‘(aa) the interests of pro24 ducers are protected; and 


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1 ‘‘(bb) the program operates 

2 in an actuarially sound manner. 

3 ‘‘(v) FUNDING.—Of the funds of the 

4 Corporation, the Corporation shall use to 

5 carry out this subparagraph $10,000,000 

6 for each of fiscal years 2014 through 

7 2018, to remain available until expended.’’. 

8 SEC. 11031. ENHANCING PRODUCER SELF-HELP THROUGH 

9 FARM FINANCIAL BENCHMARKING. 

10 (a) DEFINITION.—Section 502(b) of the Federal 

11 Crop Insurance Act (7 U.S.C. 1502(b)) is amended— 

12 (1) by redesignating paragraphs (6) through 

13 (9) as paragraphs (7) through (10), respectively; 

14 and 

15 (2) by inserting after paragraph (5) the fol16 lowing: 

17 ‘‘(6) FARM FINANCIAL BENCHMARKING.—The 

18 term ‘farm financial benchmarking’ means— 

19 ‘‘(A) the process of comparing the per20 formance of an agricultural enterprise against 

21 the performance of other similar enterprises, 

22 through the use of comparable and reliable 

23 data, in order to identify business management 

24 strengths, weaknesses, and steps necessary to 


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1 improve management performance and business 

2 profitability; and 

3 ‘‘(B) benchmarking of the type conducted 

4 by farm management and producer associations 

5 consistent with the activities described in or 

6 funded pursuant to section 1672D of the Food, 

7 Agriculture, Conservation, and Trade Act of 

8 1990 (7 U.S.C. 5925f).’’. 

9 (b) PARTNERSHIPS FOR RISK MANAGEMENT FOR

10 PRODUCERS OF SPECIALTY CROPS AND UNDERSERVED

11 AGRICULTURAL COMMODITIES.—Section 522(d)(3)(F) of 

12 the Federal Crop Insurance Act (7 U.S.C. 1522(d)(3)(F)) 

13 is amended by inserting ‘‘farm financial benchmarking,’’ 

14 after ‘‘management,’’. 

15 (c) CROP INSURANCE EDUCATION AND RISK MAN16 AGEMENT ASSISTANCE.—Section 524(a) of the Federal 

17 Crop Insurance Act (7 U.S.C. 1524(a)) is amended— 

18 (1) in paragraph (3)(A), by inserting ‘‘farm fi19 nancial benchmarking,’’ after ‘‘risk reduction,’’; and 

20 (2) in paragraph (4), in the matter preceding 

21 subparagraph (A), by inserting ‘‘(including farm fi22 nancial benchmarking)’’ after ‘‘management strate23 gies’’. 


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1 SEC. 11032. BEGINNING FARMER AND RANCHER PROVI2 SIONS. 

3 (a) DEFINITION.—Section 502(b) of the Federal 

4 Crop Insurance Act (7 U.S.C. 1502(b)) (as amended by 

5 section 11029(a)) is amended— 

6 (1) by redesignating paragraphs (3) through 

7 (10) as paragraphs (4) through (11), respectively; 

8 and 

9 (2) by inserting after paragraph (2) the fol10 lowing: 

11 ‘‘(3) BEGINNING FARMER OR RANCHER.—The 

12 term ‘beginning farmer or rancher’ means a farmer 

13 or rancher who has not actively operated and man14 aged a farm or ranch with a bona fide insurable in15 terest in a crop or livestock as an owner-operator, 

16 landlord, tenant, or sharecropper for more than 5 

17 crop years, as determined by the Secretary.’’. 

18 (b) PREMIUM ADJUSTMENTS.—Section 508 of the 

19 Federal Crop Insurance Act (7 U.S.C. 1508) is amend20 ed— 

21 (1) in subsection (b)(5)(E), by inserting ‘‘and 

22 beginning farmers or ranchers’’ after ‘‘limited re23 source farmers’’; 

24 (2) in subsection (e), by adding at the end the 

25 following: 


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1 ‘‘(8) PREMIUM FOR BEGINNING FARMERS OR

2 RANCHERS.—Notwithstanding any other provision of 

3 this subsection regarding payment of a portion of 

4 premiums, a beginning farmer or rancher shall re5 ceive premium assistance that is 10 percentage 

6 points greater than premium assistance that would 

7 otherwise be available under paragraphs (2) (except 

8 for subparagraph (A) of that paragraph), (5), (6), 

9 and (7) for the applicable policy, plan of insurance, 

10 and coverage level selected by the beginning farmer 

11 or rancher.’’; and 

12 (3) in subsection (g)— 

13 (A) in paragraph (2)(B)— 

14 (i) in clause (i), by striking ‘‘or’’ at 

15 the end; 

16 (ii) in clause (ii)(III), by striking the 

17 period at the end and inserting ‘‘; or’’; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(iii) if the producer is a beginning 

21 farmer or rancher who was previously in22 volved in a farming or ranching operation, 

23 including involvement in the decision24 making or physical involvement in the pro25 duction of the crop or livestock on the 


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1 farm, for any acreage obtained by the be2 ginning farmer or rancher, a yield that is 

3 the higher of— 

4 ‘‘(I) the actual production history 

5 of the previous producer of the crop 

6 or livestock on the acreage determined 

7 under subparagraph (A); or 

8 ‘‘(II) a yield of the producer, as 

9 determined in clause (i).’’; and 

10 (B) in paragraph (4)(B)(ii) (as amended 

11 by section 11007)— 

12 (i) by inserting ‘‘(I)’’ after ‘‘(ii)’’; 

13 (ii) by striking the period at the end 

14 and inserting ‘‘; or’’; and 

15 (iii) by adding at the end the fol16 lowing: 

17 ‘‘(II) in the case of begin18 ning farmers or ranchers, replace 

19 each excluded yield with a yield 

20 equal to 80 percent of the appli21 cable transitional yield.’’. 


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1 SEC. 11033. LIMITATION ON PREMIUM SUBSIDY BASED ON 

2 AVERAGE ADJUSTED GROSS INCOME. 

3 Section 508(e) of the Federal Crop Insurance Act (7 

4 U.S.C. 1508(e)) (as amended by section 11030(b)) is 

5 amended by adding at the end the following: 

6 ‘‘(9) LIMITATION ON PREMIUM SUBSIDY BASED

7 ON AVERAGE ADJUSTED GROSS INCOME.— 

8 ‘‘(A) DEFINITION OF AVERAGE ADJUSTED

9 GROSS INCOME.—In this paragraph, the term 

10 ‘average adjusted gross income’ has the mean11 ing given the term in section 1001D(a) of the 

12 Food Security Act of 1985 (7 U.S.C. 1308– 

13 3a(a)). 

14 ‘‘(B) LIMITATION.—Notwithstanding any 

15 other provision of this subtitle and beginning 

16 with the 2014 reinsurance year, in the case of 

17 any producer that is a person or legal entity 

18 that has an average adjusted gross income in 

19 excess of $750,000 based on the most recent 

20 data available from the Farm Service Agency as 

21 of the beginning of the reinsurance year, the 

22 total amount of premium subsidy provided with 

23 respect to additional coverage under subsection 

24 (c), section 508B, or section 508C issued on be25 half of the producer for a reinsurance year shall 

26 be 15 percentage points less than the premium 


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1 subsidy provided in accordance with this sub2 section that would otherwise be available for the 

3 applicable policy, plan of insurance, and cov4 erage level selected by the producer. 

5 ‘‘(C) APPLICATION.— 

6 ‘‘(i) STUDY.—Not later than 1 year 

7 after the date of enactment of this Act, the 

8 Secretary, in consultation with the Govern9 ment Accountability Office, shall carry out 

10 a study to determine the effects of the lim11 itation described in subparagraph (B) on— 

12 ‘‘(I) the overall operations of the 

13 Federal crop insurance program; 

14 ‘‘(II) the number of producers 

15 participating in the Federal crop in16 surance program; 

17 ‘‘(III) the level of coverage pur18 chased by participating producers; 

19 ‘‘(IV) the amount of premiums 

20 paid by participating producers and 

21 the Federal Government; 

22 ‘‘(V) any potential liability for 

23 participating producers, approved in24 surance providers, and the Federal 

25 Government; 


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1 ‘‘(VI) different crops or growing 

2 regions; 

3 ‘‘(VII) program rating struc4 tures; 

5 ‘‘(VIII) creation of schemes or 

6 devices to evade the impact of the lim7 itation; and 

8 ‘‘(IX) administrative and oper9 ating expenses paid to approved insur10 ance providers and underwriting gains 

11 and loss for the Federal government 

12 and approved insurance providers. 

13 ‘‘(ii) EFFECTIVENESS.—The limita14 tion described in subparagraph (B) shall 

15 not take effect unless the Secretary deter16 mines, through the study described in 

17 clause (i), that the limitation would not— 

18 ‘‘(I) significantly increase the 

19 premium amount paid by producers 

20 with an average adjusted gross income 

21 of less than $750,000; 

22 ‘‘(II) result in a decline in the 

23 crop insurance coverage available to 

24 producers; and 


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1 ‘‘(III) increase the total cost of 

2 the Federal crop insurance program.’’. 

3 SEC. 11034. AGRICULTURAL MANAGEMENT ASSISTANCE, 

4 RISK MANAGEMENT EDUCATION, AND OR5 GANIC CERTIFICATION COST SHARE ASSIST6 ANCE. 

7 Section 524 of the Federal Crop Insurance Act (7 

8 U.S.C. 1524) is amended by striking subsection (b) and 

9 inserting the following: 

10 ‘‘(b) AGRICULTURAL MANAGEMENT ASSISTANCE, 

11 RISK MANAGEMENT EDUCATION, AND ORGANIC CERTIFI12 CATION COST SHARE ASSISTANCE.— 

13 ‘‘(1) AUTHORITY FOR PROVISION OF ASSIST14 ANCE.—The Secretary shall provide assistance under 

15 this section as follows: 

16 ‘‘(A) Provision of organic certification cost 

17 share assistance pursuant to section 10606 of 

18 the Farm Security and Rural Investment Act of 

19 2002 (7 U.S.C. 6523). 

20 ‘‘(B) Activities to support risk manage21 ment education and community outreach part22 nerships pursuant to section 522(d), includ23 ing— 

24 ‘‘(i) entering into futures or hedging; 


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1 ‘‘(ii) entering into agricultural trade 

2 options as a hedging transaction to reduce 

3 production, price, or revenue risk; or 

4 ‘‘(iii) conducting any other activity re5 lating to an activity described in clause (i) 

6 or (ii), including farm financial bench7 marking, as determined by the Secretary. 

8 ‘‘(C) Provision of agricultural management 

9 assistance grants to producers in States in 

10 which there has been traditionally, and con11 tinues to be, a low level of Federal crop insur12 ance participation and availability, and pro13 ducers underserved by the Federal crop insur14 ance program, as determined by the Secretary, 

15 for the purposes of— 

16 ‘‘(i) constructing or improving— 

17 ‘‘(I) watershed management 

18 structures; or 

19 ‘‘(II) irrigation structures; 

20 ‘‘(ii) planting trees to form 

21 windbreaks or to improve water quality; 

22 and 

23 ‘‘(iii) mitigating financial risk through 

24 production or marketing diversification or 


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1 resource conservation practices, includ2 ing— 

3 ‘‘(I) soil erosion control; 

4 ‘‘(II) integrated pest manage5 ment; 

6 ‘‘(III) organic farming; or 

7 ‘‘(IV) to develop and implement a 

8 plan to create marketing opportunities 

9 for the producer, including through 

10 value-added processing. 

11 ‘‘(2) PAYMENT LIMITATION.—The total amount 

12 of payments made to a person (as defined in section 

13 1001(a)(5) of the Food Security Act (7 U.S.C. 

14 1308(a)(5))) (as in existence before the amendment 

15 made by section 1603(b) of the Food, Conservation, 

16 and Energy Act of 2008 (Public Law 110–246; 122 

17 Stat. 1730)) under paragraph (1) for any year may 

18 not exceed $50,000. 

19 ‘‘(3) FUNDING.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 carry out this subsection through the Com22 modity Credit Corporation. 

23 ‘‘(B) FUNDING.—For each of fiscal years 

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1 poration shall make available to carry out this 

2 subsection $23,000,000. 

3 ‘‘(C) DISTRIBUTION OF FUNDS.—Of the 

4 amount made available to carry out this sub5 section for a fiscal year, the Commodity Credit 

6 Corporation shall use not less than— 

7 ‘‘(i) 50 percent to carry out para8 graph (1)(A); 

9 ‘‘(ii) 26 percent to carry out para10 graph (1)(B); and 

11 ‘‘(iii) 24 percent to carry out para12 graph (1)(C).’’. 

13 SEC. 11035. CROP PRODUCTION ON NATIVE SOD. 

14 (a) FEDERAL CROP INSURANCE.—Section 508(o) of 

15 the Federal Crop Insurance Act (7 U.S.C. 1508(o)) is 

16 amended— 

17 (1) in paragraph (1)(B), by inserting ‘‘, or the 

18 producer cannot substantiate that the ground has 

19 ever been tilled,’’ after ‘‘tilled’’; 

20 (2) in paragraph (2)(A), by striking ‘‘for bene21 fits under—’’ and all that follows through the period 

22 at the end and inserting ‘‘for— 

23 ‘‘(i) a portion of crop insurance pre24 mium subsidies under this subtitle in ac25 cordance with paragraph (3); 


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1 ‘‘(ii) benefits under section 196 of the 

2 Federal Agriculture Improvement and Re3 form Act of 1996 (7 U.S.C. 7333); and 

4 ‘‘(iii) payments described in section 

5 1001(b) of the Food Security Act of 1985 

6 (7 U.S.C. 1308(b)).’’; and 

7 (3) by striking paragraph (3) and inserting the 

8 following: 

9 ‘‘(3) ADMINISTRATION.— 

10 ‘‘(A) IN GENERAL.—During the first 4 

11 crop years of planting on native sod acreage by 

12 a producer described in paragraph (2)— 

13 ‘‘(i) paragraph (2) shall apply to 65 

14 percent of the applicable transitional yield; 

15 and 

16 ‘‘(ii) the crop insurance premium sub17 sidy provided for the producer under this 

18 subtitle shall be 50 percentage points less 

19 than the premium subsidy that would oth20 erwise apply. 

21 ‘‘(B) YIELD SUBSTITUTION.—During the 

22 period native sod acreage is covered by this sub23 section, a producer may not substitute yields 

24 for the native sod acreage.’’. 


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1 (b) NONINSURED CROP DISASTER ASSISTANCE.— 

2 Section 196(a)(4) of the Federal Agriculture Improvement 

3 and Reform Act of 1996 (7 U.S.C. 7333(a)(4)) is amend4 ed— 

5 (1) in subparagraph (A)(ii), by inserting ‘‘, or 

6 the producer cannot substantiate that the ground 

7 has ever been tilled,’’ after ‘‘tilled’’; 

8 (2) in subparagraph (B)(i), by striking ‘‘for 

9 benefits under—’’ and all that follows through the 

10 period at the end and inserting ‘‘for— 

11 ‘‘(I) benefits under this section; 

12 ‘‘(II) a portion of crop insurance 

13 premium subsidies under the Federal 

14 Crop Insurance Act (7 U.S.C. 1501 et 

15 seq.) in accordance with subparagraph 

16 (C); and 

17 ‘‘(III) payments described in sec18 tion 1001(b) of the Food Security Act 

19 of 1985 (7 U.S.C. 1308(b)).’’; and 

20 (3) by striking subparagraph (C) and inserting 

21 the following: 

22 ‘‘(C) ADMINISTRATION.— 

23 ‘‘(i) IN GENERAL.—During the first 4 

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1 age by a producer described in subpara2 graph (B)— 

3 ‘‘(I) subparagraph (B) shall 

4 apply to 65 percent of the applicable 

5 transitional yield; and 

6 ‘‘(II) the crop insurance premium 

7 subsidy provided for the producer 

8 under the Federal Crop Insurance Act 

9 (7 U.S.C. 1501 et seq.) shall be 50 

10 percentage points less than the pre11 mium subsidy that would otherwise 

12 apply. 

13 ‘‘(ii) YIELD SUBSTITUTION.—During 

14 the period native sod acreage is covered by 

15 this paragraph, a producer may not sub16 stitute yields for the native sod acreage.’’. 

17 (c) CROPLAND REPORT.— 

18 (1) BASELINE.—Not later than 180 days after 

19 the date of enactment of this Act, the Secretary of 

20 Agriculture shall submit to the Committee on Agri21 culture of the House of Representatives and the 

22 Committee on Agriculture, Nutrition, and Forestry 

23 of the Senate a report that describes the cropland 

24 acreage in each county and State, and the change in 

25 cropland acreage from the preceding year in each 


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1 county and State, beginning with calendar year 

2 2000 and including that information for the most 

3 recent year for which that information is available. 

4 (2) ANNUAL UPDATES.—Not later than Janu5 ary 1, 2014, and each January 1 thereafter through 

6 January 1, 2018, the Secretary of Agriculture shall 

7 submit to the Committee on Agriculture of the 

8 House of Representatives and the Committee on Ag9 riculture, Nutrition, and Forestry of the Senate a 

10 report that describes— 

11 (A) the cropland acreage in each county 

12 and State as of the date of submission of the 

13 report; 

14 (B) the change in cropland acreage from 

15 the preceding year in each county and State; 

16 and 

17 (C) the number of acres of native sod that 

18 have been converted to cropland or to any other 

19 use in the preceding year in each county and 

20 State. 

21 SEC. 11036. TECHNICAL AMENDMENTS. 

22 Section 508(b) of the Federal Crop Insurance Act (7 

23 U.S.C. 1508(b)) is amended— 

24 (1) by striking paragraph (7); and 


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1 (2) by redesignating paragraphs (8) through 

2 (11) as paragraphs (7) through (10), respectively. 

3 SEC. 11037. GREATER ACCESSIBILITY FOR CROP INSUR4 ANCE. 

5 (a) FINDINGS.—Congress finds that— 

6 (1) due to changes in commodity and other ag7 ricultural programs made by the Agriculture Re8 form, Food, and Jobs Act of 2013, it is more impor9 tant than ever that agricultural producers be able to 

10 fully understand the terms of plans and policies of 

11 crop insurance offered under the Federal Crop In12 surance Act (7 U.S.C. 1501 et seq.); and 

13 (2) proposed reductions by the Secretary in the 

14 number of State and local offices of the Farm Serv15 ice Agency will reduce the services available to assist 

16 agricultural producers in understanding crop insur17 ance. 

18 (b) REQUIREMENT FOR USE OF PLAIN LANGUAGE.— 

19 (1) IN GENERAL.—In issuing regulations and 

20 guidance relating to plans and policies of crop insur21 ance, the Risk Management Agency and the Federal 

22 Crop Insurance Corporation shall, to the greatest ex23 tent practicable, use plain language, as required 

24 under Executive Orders 12866 (5 U.S.C. 601 note; 

25 relating to regulatory planning and review) and 


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1 12988 (28 U.S.C. 519 note; relating to civil justice 

2 reform). 

3 (2) REPORT.—Not later than 180 days after 

4 the date of enactment of this Act, the Secretary 

5 shall submit to the Committee on Agriculture of the 

6 House of Representatives and the Committee on Ag7 riculture, Nutrition, and Forestry of the Senate a 

8 report describing the efforts of the Secretary to ac9 celerate compliance with the Executive orders de10 scribed in paragraph (1). 

11 (c) WEBSITE.— 

12 (1) IN GENERAL.—Not later than 1 year after 

13 the date of enactment of this Act, the Secretary, in 

14 consultation with the approved insurance providers 

15 (as defined in section 502(b) of the Federal Crop In16 surance Act (7 U.S.C. 1502(b)), shall improve the 

17 existing Internet website through which agricultural 

18 producers in any State may identify crop insurance 

19 options in that State. 

20 (2) REQUIREMENTS.—The website described in 

21 paragraph (1) shall— 

22 (A) provide answers in an easily accessible 

23 format to frequently asked questions; and 

24 (B) include published materials of the De25 partment of Agriculture that relate to plans and 


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1 policies of crop insurance offered under that 

2 Act. 

3 (d) ADMINISTRATION.—Nothing in this section au4 thorizes the Risk Management Agency to sell a crop insur5 ance policy or plan of insurance. 

6 SEC. 11038. GAO CROP INSURANCE FRAUD REPORT. 

7 Section 515(d) of the Federal Crop Insurance Act (7 

8 U.S.C. 1515(d)) is amended by adding at the end the fol9 lowing: 

10 ‘‘(6) GAO CROP INSURANCE FRAUD REPORT.— 

11 As soon as practicable after the date of enactment 

12 of this paragraph, the Comptroller General of the 

13 United States shall conduct, and submit to Congress 

14 a report describing the results of, a study regarding 

15 fraudulent claims filed, and benefits provided, under 

16 this subtitle.’’. 

17 TITLE XII—MISCELLANEOUS 

18 Subtitle A—Socially Disadvantaged 

19 Producers and Limited Re20 source Producers 

21 SEC. 12001. OUTREACH AND ASSISTANCE FOR SOCIALLY 

22 DISADVANTAGED FARMERS AND RANCHERS 

23 AND VETERAN FARMERS AND RANCHERS. 

24 (a) OUTREACH AND ASSISTANCE FOR SOCIALLY DIS25 ADVANTAGED FARMERS AND RANCHERS AND VETERAN


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1 FARMERS AND RANCHERS.—Section 2501 of the Food, 

2 Agriculture, Conservation, and Trade Act of 1990 (7 

3 U.S.C. 2279) is amended— 

4 (1) in the section heading, by inserting ‘‘AND

5 VETERAN FARMERS AND RANCHERS’’ after 

6 ‘‘RANCHERS’’; 

7 (2) in subsection (a)— 

8 (A) in paragraph (2)(B)(i), by inserting 

9 ‘‘and veteran farmers or ranchers’’ after 

10 ‘‘ranchers’’; and 

11 (B) in paragraph (4)— 

12 (i) in subparagraph (A)— 

13 (I) in the heading, by striking 

14 ‘‘FISCAL YEARS 2009 THROUGH 2012’’ 

15 and inserting ‘‘MANDATORY FUND16 ING’’; 

17 (II) in clause (i), by striking 

18 ‘‘and’’ at the end; 

19 (III) in clause (ii), by striking 

20 the period at the end and inserting ‘‘; 

21 and’’; and 

22 (IV) by adding at the end the fol23 lowing: 

24 ‘‘(iii) $10,000,000 for each of fiscal 

25 years 2014 through 2018.’’; and 


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1 (ii) by striking subparagraph (B) and 

2 inserting the following: 

3 ‘‘(B) AUTHORIZATION OF APPROPRIA4 TIONS.—There is authorized to be appropriated 

5 to carry out this section $20,000,000 for each 

6 of fiscal years 2014 through 2018.’’; 

7 (3) in subsection (b)(2), by inserting ‘‘or vet8 eran farmers and ranchers’’ after ‘‘socially disadvan9 taged farmers and ranchers’’; and 

10 (4) in subsection (c)— 

11 (A) in paragraph (1)(A), by inserting ‘‘vet12 eran farmers or ranchers and’’ before ‘‘mem13 bers’’; and 

14 (B) in paragraph (2)(A), by inserting ‘‘vet15 eran farmers or ranchers and’’ before ‘‘mem16 bers’’. 

17 (b) DEFINITION OF VETERAN FARMER OR RANCH18 ER.—Section 2501(e) of the Food, Agriculture, Conserva19 tion, and Trade Act of 1990 (7 U.S.C. 2279(e)) is amend20 ed by adding at the end the following: 

21 ‘‘(7) VETERAN FARMER OR RANCHER.—The 

22 term ‘veteran farmer or rancher’ means a farmer or 

23 rancher who served in the active military, naval, or 

24 air service, and who was discharged or released from 


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1 the service under conditions other than dishonor2 able.’’. 

3 SEC. 12002. SOCIALLY DISADVANTAGED FARMERS AND 

4 RANCHERS POLICY RESEARCH CENTER. 

5 Section 2501 of the Food, Agriculture, Conservation, 

6 and Trade Act of 1990 (7 U.S.C. 2279) is amended by 

7 adding at the end the following: 

8 ‘‘(i) SOCIALLY DISADVANTAGED FARMERS AND

9 RANCHERS POLICY RESEARCH CENTER.—The Secretary 

10 shall award a grant, through a competitive grant program, 

11 to an eligible 1890 Institution (as defined in section 2 of 

12 the Agricultural Research, Extension, and Education Re13 form Act of 1998 (7 U.S.C. 7601)) to establish a policy 

14 research center, to be known as the ‘Socially Disadvan15 taged Farmers and Ranchers Policy Research Center’, for 

16 the purpose of developing policy recommendations for the 

17 protection and promotion of the interests of socially dis18 advantaged farmers and ranchers.’’. 

19 SEC. 12003. OFFICE OF ADVOCACY AND OUTREACH. 

20 Section 226B(f)(3) of the Department of Agriculture 

21 Reorganization Act of 1994 (7 U.S.C. 6934(f)(3)) is 

22 amended to read as follows: 

23 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

24 There are authorized to be appropriated to carry out 

25 this subsection— 


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1 ‘‘(A) such sums as are necessary for each 

2 of fiscal years 2009 through 2013; and 

3 ‘‘(B) $2,000,000 for each of fiscal years 

4 2014 through 2018.’’. 

5 Subtitle B—Livestock 

6 SEC. 12101. WILDLIFE RESERVOIR ZOONOTIC DISEASE INI7 TIATIVE. 

8 Title IV of the Agricultural Research, Extension, and 

9 Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) 

10 is amended by adding at the end the following: 

11 ‘‘SEC. 413. WILDLIFE RESERVOIR ZOONOTIC DISEASE INI12 TIATIVE. 

13 ‘‘(a) DEFINITION OF COVERED DISEASE.—In this 

14 section, the term ‘covered disease’ means a zoonotic dis15 ease affecting domestic livestock that is transmitted pri16 marily from wildlife. 

17 ‘‘(b) ESTABLISHMENT.—There is established within 

18 the Department a wildlife reservoir zoonotic disease initia19 tive to provide assistance through Coordinated Agricul20 tural Project grants for research and development of sur21 veillance methods, vaccines, vaccination delivery systems, 

22 or diagnostic tests for covered diseases. 

23 ‘‘(c) COVERED DISEASE.— 

24 ‘‘(1) IN GENERAL.—To be eligible for a grant 

25 under this section, an eligible entity shall conduct 


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1 research and development of surveillance methods, 

2 vaccines, vaccination delivery systems, or diagnostic 

3 tests for covered diseases in— 

4 ‘‘(A) a wildlife reservoir in the United 

5 States; or 

6 ‘‘(B) domestic livestock or wildlife pre7 senting a potential concern to public health. 

8 ‘‘(2) PRIORITY.—In making grants under this 

9 section, the Secretary shall give priority to grants 

10 that address— 

11 ‘‘(A) Brucella abortus (Bovine Brucellosis); 

12 ‘‘(B) Mycobacterium bovis (Bovine Tuber13 culosis); or 

14 ‘‘(C) other zoonotic disease in livestock 

15 that is covered by a high-priority research and 

16 extension initiative conducted under section 

17 1672 of the Food, Agriculture, Conservation, 

18 and Trade Act of 1990 (7 U.S.C. 5925). 

19 ‘‘(d) ELIGIBLE ENTITIES.—The Secretary shall carry 

20 out the initiative established under subsection (b) through 

21 public scientific research consortia that may consist of 

22 members from— 

23 ‘‘(1) Federal agencies; 

24 ‘‘(2) National Laboratories; 

25 ‘‘(3) institutions of higher education; 


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1 ‘‘(4) research institutions and organizations; or 

2 ‘‘(5) State agricultural experiment stations. 

3 ‘‘(e) RESEARCH PROJECTS.—In carrying out this 

4 section, the Secretary shall award grants on a competitive 

5 basis. 

6 ‘‘(f) ADMINISTRATION.— 

7 ‘‘(1) IN GENERAL.—In the case of grants 

8 awarded under this section, the Secretary shall— 

9 ‘‘(A) seek and accept proposals for grants; 

10 ‘‘(B) determine the relevance and merit of 

11 proposals through a system of peer and merit 

12 review in accordance with section 103; 

13 ‘‘(C) award grants on the basis of merit, 

14 quality, and relevance; and 

15 ‘‘(D) manage the initiative established 

16 under subsection (b) using a Coordinated Agri17 cultural Project format. 

18 ‘‘(2) TERM.—The term of a grant under this 

19 section may not exceed 10 years. 

20 ‘‘(3) MATCHING FUNDS REQUIRED.—The Sec21 retary shall require the recipient of a grant under 

22 this section to provide funds or in-kind support from 

23 non-Federal sources in an amount that is not less 

24 than 25 percent of the amount provided by the Fed25 eral Government. 


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1 ‘‘(4) OTHER CONDITIONS.—The Secretary may 

2 set such other conditions on the award of a grant 

3 under this section as the Secretary determines to be 

4 appropriate. 

5 ‘‘(g) BUILDINGS AND FACILITIES.—Funds made 

6 available under this section shall not be used for— 

7 ‘‘(1) the construction of a new building or facil8 ity; or 

9 ‘‘(2) the acquisition, expansion, remodeling, or 

10 alteration of an existing building or facility (includ11 ing site grading and improvement and architect 

12 fees). 

13 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 

14 ‘‘(1) IN GENERAL.—There is authorized to be 

15 appropriated to carry out this section $7,000,000 for 

16 each of fiscal years 2014 through 2018. 

17 ‘‘(2) ALLOCATION.—Of the amount made avail18 able for a fiscal year under paragraph (1), the Sec19 retary shall use not less than 30 percent of the 

20 amount for the fiscal year to carry out activities 

21 under each of subparagraphs (A) and (B) of sub22 section (c)(2).’’. 

23 SEC. 12102. TRICHINAE CERTIFICATION PROGRAM. 

24 (a) ALTERNATIVE CERTIFICATION PROCESS.— 


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1 (1) IN GENERAL.—The Secretary shall amend 

2 the regulation issued under section 11010(a)(2) of 

3 the Food, Conservation, and Energy Act of 2008 (7 

4 U.S.C. 8304(a)(2)) to implement the voluntary 

5 trichinae certification program established under 

6 section 11010(a)(1) of that Act, to include a re7 quirement to establish an alternative trichinae cer8 tification process based on surveillance or other 

9 methods consistent with international standards for 

10 categorizing compartments as having negligible risk 

11 for trichinae. 

12 (2) FINAL REGULATIONS.—Not later than 1 

13 year after the date on which the international stand14 ards described in paragraph (1) are adopted, the 

15 Secretary shall finalize the rule amended under 

16 paragraph (1). 

17 (b) REAUTHORIZATION.—Section 10405(d)(1) of the 

18 Animal Health Protection Act (7 U.S.C. 8304(d)(1)) is 

19 amended in subparagraphs (A) and (B) by striking 

20 ‘‘2012’’ each place it appears and inserting ‘‘2018’’. 

21 SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN. 

22 Section 11013(d) of the Food, Conservation, and En23 ergy Act of 2008 (7 U.S.C. 8322(d)) is amended by strik24 ing ‘‘2012’’ and inserting ‘‘2018’’. 


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1 SEC. 12104. SHEEP PRODUCTION AND MARKETING GRANT 

2 PROGRAM. 

3 (a) IN GENERAL.—Subtitle A of the Agricultural 

4 Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is amended 

5 by adding at the end the following: 

6 ‘‘SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT 

7 PROGRAM. 

8 ‘‘(a) ESTABLISHMENT.—The Secretary, acting 

9 through the Administrator of the Agricultural Marketing 

10 Service (referred to in this section as the ‘Secretary’) shall 

11 establish a competitive grant program for the purposes of 

12 improving the United States sheep industry. 

13 ‘‘(b) PURPOSE.—The purpose of the grant program 

14 shall be to strengthen and enhance the production and 

15 marketing of sheep and sheep products, including im16 provement of— 

17 ‘‘(1) infrastructure; 

18 ‘‘(2) business; 

19 ‘‘(3) resource development; and 

20 ‘‘(4) innovative approaches to solve long-term 

21 needs. 

22 ‘‘(c) ELIGIBILITY.—The Secretary shall make grants 

23 under this section to 1 or more national entities the mis24 sion of which is consistent with the purpose of the grant 

25 program. 


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1 ‘‘(d) FUNDING.—Of the funds of the Commodity 

2 Credit Corporation, the Secretary shall use to carry out 

3 this section $1,500,000 for fiscal year 2014, to remain 

4 available until expended.’’. 

5 (b) CONFORMING AMENDMENT.—Section 374 of the 

6 Consolidated Farm and Rural Development Act (7 U.S.C. 

7 2008j) (as in existence on the day before the date of enact8 ment of this Act) is— 

9 (1) amended in subsection (e)— 

10 (A) in paragraph (3)(D), by striking ‘‘3 

11 percent’’ and inserting ‘‘10 percent’’; and 

12 (B) by striking paragraph (6); and 

13 (2) redesignated as section 210 of the Agricul14 tural Marketing Act of 1946; and 

15 (3) moved so as to appear at the end of subtitle 

16 A of that Act (as amended by subsection (a)). 

17 SEC. 12105. FERAL SWINE ERADICATION PILOT PROGRAM. 

18 (a) IN GENERAL.—To eradicate or control the threat 

19 feral swine pose to the domestic swine population, the en20 tire livestock industry, and the destruction of crops and 

21 natural plant communities and native habitats, the Sec22 retary of Agriculture may establish a feral swine eradi23 cation pilot program. 

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1 cial assistance for the cost of carrying out a pilot pro2 gram— 

3 (1) to study and assess the nature and extent 

4 of damage to the pilot area caused by feral swine; 

5 (2) to develop methods to eradicate or control 

6 feral swine in the pilot area; and 

7 (3) to develop methods to restore damage 

8 caused by feral swine. 

9 (c) COORDINATION.—The Secretary shall ensure that 

10 the Natural Resource Conservation Service and the Ani11 mal and Plant Health Inspection Service coordinate to 

12 carry out the pilot program. 

13 (d) COST SHARING.— 

14 (1) FEDERAL SHARE.—The Federal share of 

15 the costs of the pilot program under this section 

16 may not exceed 75 percent of the total costs of car17 rying out the pilot program. 

18 (2) IN-KIND CONTRIBUTIONS.—The non-Fed19 eral share of the costs of the pilot program may be 

20 provided in the form of in-kind contributions of ma21 terials or services. 

22 (e) LIMITATION ON ADMINISTRATIVE EXPENSES.— 

23 Not more than 10 percent of financial assistance provided 

24 by the Secretary under this section may be used for ad25 ministrative expenses. 


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1 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $2,000,000 for each of fiscal years 2014 through 2018. 

4 SEC. 12106. NATIONAL ANIMAL HEALTH LABORATORY NET5 WORK. 

6 Subtitle E of title X of the Farm Security and Rural 

7 Investment Act of 2002 (7 U.S.C. 8301 et seq.) is amend8 ed by inserting after section 10409 the following: 

9 ‘‘SEC. 10409A. NATIONAL ANIMAL HEALTH LABORATORY 

10 NETWORK. 

11 ‘‘(a) DEFINITION OF ELIGIBLE LABORATORY.—In 

12 this section, the term ‘eligible laboratory’ means a diag13 nostic laboratory that meets specific criteria developed by 

14 the Secretary, in consultation with State animal health of15 ficials, State veterinary diagnostic laboratories, and veteri16 nary diagnostic laboratories at institutions of higher edu17 cation. 

18 ‘‘(b) CONTRACTS.—The Secretary, in consultation 

19 with State veterinarians, shall offer to enter into con20 tracts, grants, cooperative agreements, or other legal in21 struments with eligible laboratories— 

22 ‘‘(1) to enhance the capability of the Secretary 

23 to respond in a timely manner to emerging or exist24 ing bioterrorist threats to animal health; and 


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1 ‘‘(2) to provide the capacity and capability for 

2 standardized— 

3 ‘‘(A) test procedures, reference materials, 

4 and equipment; 

5 ‘‘(B) laboratory biosafety and biosecurity 

6 levels; 

7 ‘‘(C) quality management system require8 ments; 

9 ‘‘(D) interconnected electronic reporting 

10 and transmission of data; and 

11 ‘‘(E) evaluation for emergency prepared12 ness; and 

13 ‘‘(3) to coordinate the development, implemen14 tation, and enhancement of national veterinary diag15 nostic laboratory capabilities, with special emphasis 

16 on surveillance planning and vulnerability analysis, 

17 technology development and validation, training, and 

18 outreach. 

19 ‘‘(c) PRIORITY.—To the extent practicable and to the 

20 extent capacity and specialized expertise may be nec21 essary, the Secretary shall give priority to eligible labora22 tories at existing Federal facilities, State facilities, and fa23 cilities at institutions of higher education. 


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1 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 is authorized to be appropriated to carry out this section 

3 $15,000,000 for each of fiscal years 2014 through 2018.’’. 

4 SEC. 12107. NATIONAL POULTRY IMPROVEMENT PLAN 

5 (NPIP). 

6 (a) SURVEILLANCE PROGRAM.—The Secretary shall 

7 ensure that the Department of Agriculture continues to 

8 administer the avian influenza surveillance program in 

9 commercial poultry through the National Poultry Im10 provement Program. 

11 (b) STANDARDS.—The Secretary shall ensure that 

12 the program described in subsection (a) meets any rel13 evant standards established by the World Organization for 

14 Animal Health. 

15 Subtitle C—Other Miscellaneous 

16 Provisions 

17 SEC. 12201. MILITARY VETERANS AGRICULTURAL LIAISON. 

18 Subtitle A of the Department of Agriculture Reorga19 nization Act of 1994 is amended by inserting after section 

20 218 (7 U.S.C. 6918) the following: 

21 ‘‘SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON. 

22 ‘‘(a) AUTHORIZATION.—The Secretary shall establish 

23 in the Department the position of Military Veterans Agri24 cultural Liaison. 


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1 ‘‘(b) DUTIES.—The Military Veterans Agricultural 

2 Liaison shall— 

3 ‘‘(1) provide information to returning veterans 

4 about, and connect returning veterans with, begin5 ning farmer training and agricultural vocational and 

6 rehabilitation programs appropriate to the needs and 

7 interests of returning veterans, including assisting 

8 veterans in using Federal veterans educational bene9 fits for purposes relating to beginning a farming or 

10 ranching career; 

11 ‘‘(2) provide information to veterans concerning 

12 the availability of and eligibility requirements for 

13 participation in agricultural programs, with par14 ticular emphasis on beginning farmer and rancher 

15 programs; 

16 ‘‘(3) serving as a resource for assisting veteran 

17 farmers and ranchers, and potential farmers and 

18 ranchers, in applying for participation in agricul19 tural programs; and 

20 ‘‘(4) advocating on behalf of veterans in inter21 actions with employees of the Department. 

22 ‘‘(c) CONTRACTS AND COOPERATIVE AGREE23 MENTS.—For purposes of carrying out the duties under 

24 subsection (b), the Military Veterans Agricultural Liaison 

25 may enter into contracts or cooperative agreements with 


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1 the research centers of the Agricultural Research Service, 

2 institutions of higher education, or nonprofit organizations 

3 for— 

4 ‘‘(1) the conduct of regional research on the 

5 profitability of small farms; 

6 ‘‘(2) the development of educational materials; 

7 ‘‘(3) the conduct of workshops, courses, and 

8 certified vocational training; 

9 ‘‘(4) the conduct of mentoring activities; or 

10 ‘‘(5) the provision of internship opportunities.’’. 

11 SEC. 12202. INFORMATION GATHERING. 

12 Section 1619(b)(3) of the Food, Conservation, and 

13 Energy Act of 2008 (7 U.S.C. 8791) is amended by add14 ing at the end the following: 

15 ‘‘(B) COOPERATION WITH STATE AND

16 LOCAL GOVERNMENTS.— 

17 ‘‘(i) IN GENERAL.—Subject to clause 

18 (ii), in the case of a State agency, political 

19 subdivision, or local governmental agency 

20 that is charged with implementing an agri21 culture or conservation program under 

22 State law, on request of the State agency, 

23 political subdivision, or local governmental 

24 agency, the information described in para25 graph (2) shall be disclosed to the State 


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1 agency, political subdivision, or local gov2 ernmental agency if the Secretary deter3 mines that the State agency, political sub4 division, or local governmental agency 

5 demonstrates that the disclosure is re6 quired for implementing the State pro7 gram. 

8 ‘‘(ii) RESTRICTION.—Any information 

9 disclosed to a State agency, political sub10 division, or local governmental agency 

11 under clause (i) shall be— 

12 ‘‘(I) used solely by the State 

13 agency, political subdivision, or local 

14 governmental agency; and 

15 ‘‘(II) exempt from disclosure to 

16 the public, including under any State 

17 law that allows a citizen to petition a 

18 State agency for that information.’’. 

19 SEC. 12203. GRANTS TO IMPROVE SUPPLY, STABILITY, 

20 SAFETY, AND TRAINING OF AGRICULTURAL 

21 LABOR FORCE. 

22 Section 14204(d) of the Food, Conservation, and En23 ergy Act of 2008 (7 U.S.C. 2008q–1(d)) is amended to 

24 read as follows: 


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1 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this sec3 tion— 

4 ‘‘(1) such sums as are necessary for each of fis5 cal years 2008 through 2013; and 

6 ‘‘(2) $10,000,000 for each of fiscal years 2014 

7 through 2018.’’. 

8 SEC. 12204. NONINSURED CROP ASSISTANCE PROGRAM. 

9 (a) IN GENERAL.—Section 196 of the Federal Agri10 culture Improvement and Reform Act of 1996 (7 U.S.C. 

11 7333) is amended— 

12 (1) in subsection (a)— 

13 (A) by striking paragraph (1) and insert14 ing the following: 

15 ‘‘(1) IN GENERAL.— 

16 ‘‘(A) COVERAGES.—In the case of an eligi17 ble crop described in paragraph (2), the Sec18 retary of Agriculture shall operate a noninsured 

19 crop disaster assistance program to provide cov20 erages based on individual yields (other than 

21 for value-loss crops) equivalent to— 

22 ‘‘(i) catastrophic risk protection avail23 able under section 508(b) of the Federal 

24 Crop Insurance Act (7 U.S.C. 1508(b)); or 


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1 ‘‘(ii) additional coverage available 

2 under subsections (c) and (h) of section 

3 508 of that Act (7 U.S.C. 1508) that does 

4 not exceed 65 percent. 

5 ‘‘(B) ADMINISTRATION.—The Secretary 

6 shall carry out this section through the Farm 

7 Service Agency (referred to in this section as 

8 the ‘Agency’).’’; and 

9 (B) in paragraph (2)— 

10 (i) in subparagraph (A)— 

11 (I) in the matter before clause 

12 (i), by striking ‘‘(except livestock)’’ 

13 and inserting ‘‘(except livestock and 

14 crops and grasses used for grazing)’’; 

15 (II) in clause (i), by striking 

16 ‘‘and’’ after the semicolon at the end; 

17 (III) by redesignating clause (ii) 

18 as clause (iii); and 

19 (IV) by inserting after clause (i) 

20 the following: 

21 ‘‘(ii) for which additional 

22 coverage under subsections (c) 

23 and (h) of section 508 of that 

24 Act (7 U.S.C. 1508) is not avail25 able; and’’; and 


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1 (ii) in subparagraph (B)— 

2 (I) by inserting ‘‘(except ferns)’’ 

3 after ‘‘floricultural’’; 

4 (II) by inserting ‘‘(except ferns)’’ 

5 after ‘‘ornamental nursery’’; and 

6 (III) by striking ‘‘(including or7 namental fish)’’ and inserting ‘‘(in8 cluding ornamental fish, but excluding 

9 tropical fish)’’; 

10 (2) in subsection (d), by striking ‘‘The Sec11 retary’’ and inserting ‘‘Subject to subsection (l), the 

12 Secretary’’; 

13 (3) in subsection (k)(1)— 

14 (A) in subparagraph (A), by striking 

15 ‘‘$250’’ and inserting ‘‘$260’’; and 

16 (B) in subparagraph (B)— 

17 (i) by striking ‘‘$750’’ and inserting 

18 ‘‘$780’’; and 

19 (ii) by striking ‘‘$1,875’’ and insert20 ing ‘‘$1,950’’; and 

21 (4) by adding at the end the following: 

22 ‘‘(l) PAYMENT EQUIVALENT TO ADDITIONAL COV23 ERAGE.— 

24 ‘‘(1) IN GENERAL.—The Secretary shall make 

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1 ance under this section a payment equivalent to an 

2 indemnity for additional coverage under subsections 

3 (c) and (h) of section 508 of the Federal Crop In4 surance Act (7 U.S.C. 1508) that does not exceed 

5 65 percent, computed by multiplying— 

6 ‘‘(A) the quantity that is less than 50 to 

7 65 percent of the established yield for the crop, 

8 as determined by the Secretary, specified in in9 crements of 5 percent; 

10 ‘‘(B) 100 percent of the average market 

11 price for the crop, as determined by the Sec12 retary; and 

13 ‘‘(C) a payment rate for the type of crop, 

14 as determined by the Secretary, that reflects— 

15 ‘‘(i) in the case of a crop that is pro16 duced with a significant and variable har17 vesting expense, the decreasing cost in18 curred in the production cycle for the crop 

19 that is, as applicable— 

20 ‘‘(I) harvested; 

21 ‘‘(II) planted but not harvested; 

22 or 

23 ‘‘(III) prevented from being 

24 planted because of drought, flood, or 


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1 other natural disaster, as determined 

2 by the Secretary; or 

3 ‘‘(ii) in the case of a crop that is pro4 duced without a significant and variable 

5 harvesting expense, such rate as shall be 

6 determined by the Secretary. 

7 ‘‘(2) PREMIUM.—To be eligible to receive a pay8 ment under this subsection, a producer shall pay— 

9 ‘‘(A) the service fee required by subsection 

10 (k); and 

11 ‘‘(B) a premium for the applicable crop 

12 year that is equal to— 

13 ‘‘(i) the product obtained by multi14 plying— 

15 ‘‘(I) the number of acres devoted 

16 to the eligible crop; 

17 ‘‘(II) the yield, as determined by 

18 the Secretary under subsection (e); 

19 ‘‘(III) the coverage level elected 

20 by the producer; 

21 ‘‘(IV) the average market price, 

22 as determined by the Secretary; and 

23 ‘‘(ii) 5.25-percent premium fee. 

24 ‘‘(3) LIMITED RESOURCE, BEGINNING, AND SO25 CIALLY DISADVANTAGED FARMERS.—The additional 


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1 coverage made available under this subsection shall 

2 be available to limited resource, beginning, and so3 cially disadvantaged producers, as determined by the 

4 Secretary, in exchange for a premium that is 50 per5 cent of the premium determined for a producer 

6 under paragraph (2). 

7 ‘‘(4) ADDITIONAL AVAILABILITY.— 

8 ‘‘(A) IN GENERAL.—As soon as practicable 

9 after October 1, 2013, the Secretary shall make 

10 assistance available to producers of an other11 wise eligible crop described in subsection (a)(2) 

12 that suffered losses— 

13 ‘‘(i) to a 2012 annual fruit crop 

14 grown on a bush or tree; and 

15 ‘‘(ii) in a county covered by a declara16 tion by the Secretary of a natural disaster 

17 for production losses due to a freeze or 

18 frost. 

19 ‘‘(B) ASSISTANCE.—The Secretary shall 

20 make assistance available under subparagraph 

21 (A) in an amount equivalent to assistance avail22 able under paragraph (1), less any fees not pre23 viously paid under paragraph (2).’’. 

24 (b) TERMINATION DATE.— 


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1 (1) IN GENERAL.—Effective October 1, 2018, 

2 subsection (a) and the amendments made by sub3 section (a) (other than the amendments made by 

4 clauses (i)(I) and (ii) of subsection (a)(1)(B)) are re5 pealed. 

6 (2) ADMINISTRATION.—Effective October 1, 

7 2018, section 196 of the Federal Agriculture Im8 provement and Reform Act of 1996 (7 U.S.C. 7333) 

9 shall be applied and administered as if subsection 

10 (a) and the amendments made by subsection (a) 

11 (other than the amendments made by clauses (i)(I) 

12 and (ii) of subsection (a)(1)(B)) had not been en13 acted. 

14 SEC. 12205. BIOENERGY COVERAGE IN NONINSURED CROP 

15 ASSISTANCE PROGRAM. 

16 Section 196(a)(2)(B) of the Federal Agriculture Im17 provement and Reform Act of 1996 (7 U.S.C. 

18 7333(a)(2)(B)) is amended by inserting ‘‘(including those 

19 grown expressly for the purpose of producing a feedstock 

20 for renewable biofuel, renewable electricity, or biobased 

21 products)’’ after ‘‘industrial crops’’. 

22 SEC. 12206. REGIONAL ECONOMIC AND INFRASTRUCTURE 

23 DEVELOPMENT. 

24 Section 15751 of title 40, United States Code, is 

25 amended— 


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1 (1) in subsection (a), by striking ‘‘2012’’ and 

2 inserting ‘‘2018’’; and 

3 (2) in subsection (b)— 

4 (A) by striking ‘‘Not more than’’ and in5 serting the following: 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), not more than’’; and 

8 (B) by adding at the end the following: 

9 ‘‘(2) LIMITED FUNDING.—In a case in which 

10 less than $10,000,000 is made available to a Com11 mission for a fiscal year under this section, para12 graph (1) shall not apply.’’. 

13 SEC. 12207. OFFICE OF TRIBAL RELATIONS. 

14 Title III of the Department of Agriculture Reorga15 nization Act of 1994 is amended by adding after section 

16 308 (7 U.S.C. 3125a note; Public Law 103–354) the fol17 lowing: 

18 ‘‘SEC. 309. OFFICE OF TRIBAL RELATIONS. 

19 ‘‘The Secretary shall establish in the Office of the 

20 Secretary an Office of Tribal Relations.’’. 

21 SEC. 12208. ACER ACCESS AND DEVELOPMENT PROGRAM. 

22 (a) GRANTS AUTHORIZED; AUTHORIZED ACTIVI23 TIES.—The Secretary of Agriculture may make grants to 

24 States and tribal governments to support their efforts to 


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1 promote the domestic maple syrup industry through the 

2 following activities: 

3 (1) Promotion of research and education related 

4 to maple syrup production. 

5 (2) Promotion of natural resource sustainability 

6 in the maple syrup industry. 

7 (3) Market promotion for maple syrup and 

8 maple-sap products. 

9 (4) Encouragement of owners and operators of 

10 privately held land containing species of tree in the 

11 genus Acer— 

12 (A) to initiate or expand maple-sugaring 

13 activities on the land; or 

14 (B) to voluntarily make the land available, 

15 including by lease or other means, for access by 

16 the public for maple-sugaring activities. 

17 (b) APPLICATIONS.—In submitting an application for 

18 a grant under this section, a State or tribal government 

19 shall include— 

20 (1) a description of the activities to be sup21 ported using the grant funds; 

22 (2) a description of the benefits that the State 

23 or tribal government intends to achieve as a result 

24 of engaging in such activities; and 


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1 (3) an estimate of the increase in maple-sug2 aring activities or maple syrup production that the 

3 State or tribal government anticipates will occur as 

4 a result of engaging in such activities. 

5 (c) RELATIONSHIP TO OTHER LAWS.—Nothing in 

6 this section preempts a State or tribal government law, 

7 including any State or tribal government liability law. 

8 (d) DEFINITION OF MAPLE SUGARING.—In this sec9 tion, the term ‘‘maple-sugaring’’ means the collection of 

10 sap from any species of tree in the genus Acer for the 

11 purpose of boiling to produce food. 

12 (e) REGULATIONS.—The Secretary of Agriculture 

13 shall promulgate such regulations as are necessary to 

14 carry out this section. 

15 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $20,000,000 for each of fiscal years 2014 and 2015. 

18 SEC. 12209. PROHIBITION ON ATTENDING AN ANIMAL 

19 FIGHT OR CAUSING A MINOR TO ATTEND AN 

20 ANIMAL FIGHT; ENFORCEMENT OF ANIMAL 

21 FIGHTING PROVISIONS. 

22 (a) PROHIBITION ON ATTENDING AN ANIMAL FIGHT

23 OR CAUSING A MINOR TO ATTEND AN ANIMAL FIGHT.— 

24 Section 26 of the Animal Welfare Act (7 U.S.C. 2156) 

25 is amended— 


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1 (1) in subsection (a)— 

2 (A) in the heading, by striking ‘‘SPON3 SORING OR EXHIBITING AN ANIMAL IN’’ and in4 serting ‘‘SPONSORING OR EXHIBITING AN ANI5 MAL IN, ATTENDING, OR CAUSING A MINOR TO

6 ATTEND’’; 

7 (B) in paragraph (1)— 

8 (i) in the heading, by striking ‘‘IN

9 GENERAL’’ and inserting ‘‘SPONSORING OR

10 EXHIBITING’’; and 

11 (ii) by striking ‘‘paragraph (2)’’ and 

12 inserting ‘‘paragraph (3)’’; 

13 (C) by redesignating paragraph (2) as 

14 paragraph (3); and 

15 (D) by inserting after paragraph (1) the 

16 following: 

17 ‘‘(2) ATTENDING OR CAUSING A MINOR TO AT18 TEND.—It shall be unlawful for any person to— 

19 ‘‘(A) knowingly attend an animal fighting 

20 venture; or 

21 ‘‘(B) knowingly cause a minor to attend an 

22 animal fighting venture.’’; and 

23 (2) in subsection (g), by adding at the end the 

24 following: 


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1 ‘‘(5) the term ‘minor’ means a person under the 

2 age of 18 years old.’’. 

3 (b) ENFORCEMENT OF ANIMAL FIGHTING PROHIBI4 TIONS.—Section 49 of title 18, United States Code, is 

5 amended— 

6 (1) by striking ‘‘Whoever’’ and inserting ‘‘(a) 

7 IN GENERAL.—Whoever’’; 

8 (2) in subsection (a), as designated by para9 graph (1) of this section, by striking ‘‘subsection 

10 (a),’’ and inserting ‘‘subsection (a)(1),’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(b) ATTENDING AN ANIMAL FIGHTING VENTURE.— 

13 Whoever violates subsection (a)(2)(A) of section 26 of the 

14 Animal Welfare Act (7 U.S.C. 2156) shall be fined under 

15 this title, imprisoned for not more than 1 year, or both, 

16 for each violation. 

17 ‘‘(c) CAUSING A MINOR TO ATTEND AN ANIMAL

18 FIGHTING VENTURE.—Whoever violates subsection 

19 (a)(2)(B) of section 26 (7 U.S.C. 2156) of the Animal 

20 Welfare Act shall be fined under this title, imprisoned for 

21 not more than 3 years, or both, for each violation.’’. 

22 SEC. 12210. PIMA COTTON TRUST FUND. 

23 (a) ESTABLISHMENT OF TRUST FUND.—There is es24 tablished in the Treasury of the United States a trust fund 

25 to be known as the ‘‘Pima Cotton Trust Fund’’, consisting 


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1 of such amounts as may be transferred to the Pima Cotton 

2 Trust Fund pursuant to the authorization of appropria3 tions under subsection (e). 

4 (b) DISTRIBUTION OF FUNDS.—From amounts in 

5 the Pima Cotton Trust Fund, the Secretary may make 

6 payments annually beginning in fiscal year 2014 as fol7 lows: 

8 (1) To nationally recognized associations estab9 lished for the promotion of pima cotton for use in 

10 textile and apparel goods. 

11 (2) To yarn spinners of pima cotton that 

12 produce ring spun cotton yarns in the United States, 

13 to be allocated to each spinner in an amount that 

14 bears the same ratio as— 

15 (A) the spinner’s production of ring spun 

16 cotton yarns, measuring less than 83.33 decitex 

17 (exceeding 120 metric number) from pima cot18 ton in single and plied form during the period 

19 January 1, 1998, through December 31, 2003 

20 (as evidenced by an affidavit provided by the 

21 spinner that meets the requirements of sub22 section (c)) bears to— 

23 (B) the production of the yarns described 

24 in subparagraph (A) during the period January 


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1 1, 1998, through December 31, 2003, for all 

2 spinners who qualify under this paragraph. 

3 (3) To manufacturers who cut and sew cotton 

4 shirts in the United States who certify that they 

5 used imported cotton fabric during the period Janu6 ary 1, 1998, through July 1, 2003, to be allocated 

7 to each such manufacturer in an amount that bears 

8 the same ratio as— 

9 (A) the dollar value (excluding duty, ship10 ping, and related costs) of imported woven cot11 ton shirting fabric of 80s or higher count and 

12 2-ply in warp purchased by the manufacturer 

13 during calendar year 2002 (as evidenced by an 

14 affidavit provided by the manufacturer that 

15 meets the requirements of subsection (d)) used 

16 in the manufacturing of men’s and boys’ cotton 

17 shirts, bears to— 

18 (B) the dollar value (excluding duty, ship19 ping, and related costs) of the fabric described 

20 in subparagraph (A) purchased during calendar 

21 year 2002 by all manufacturers who qualify 

22 under this paragraph. 

23 (c) AFFIDAVIT OF YARN SPINNERS.—The affidavit 

24 required by subsection (c)(2)(A) is a notarized affidavit 


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1 provided annually by an officer of a producer of ring spun 

2 yarns that affirms— 

3 (1) that the producer used pima cotton during 

4 the year in which the affidavit is filed and during 

5 the period January 1, 2002, through December 31, 

6 2002, to produce ring spun cotton yarns in the 

7 United States, measuring less than 83.33 decitex 

8 (exceeding 120 metric number), in single and plied 

9 form during 2002; 

10 (2) the quantity, measured in pounds, of ring 

11 spun cotton yarns, measuring less than 83.33 

12 decitex (exceeding 120 metric number), in single and 

13 plied form during calendar year 2002; and 

14 (3) that the producer maintains supporting doc15 umentation showing the quantity of such yarns pro16 duced, and evidencing the yarns as ring spun cotton 

17 yarns, measuring less than 83.33 decitex (exceeding 

18 120 metric number), in single and plied form during 

19 calendar year 2002. 

20 (d) AFFIDAVIT OF SHIRTING MANUFACTURERS.— 

21 The affidavit required by subsection (c)(3)(A) is a nota22 rized affidavit provided annually by an officer of a manu23 facturer of men’s and boys’ shirts that affirms— 

24 (1) that the manufacturer used imported cotton 

25 fabric during the year in which the affidavit is filed 


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1 and during the period January 1, 1998, through 

2 July 1, 2003, to cut and sew men’s and boys’ woven 

3 cotton shirts in the United States; 

4 (2) the dollar value of imported woven cotton 

5 shirting fabric of 80s or higher count and 2-ply in 

6 warp purchased by the manufacturer during cal7 endar year 2002; 

8 (3) that the manufacturer maintains invoices 

9 along with other supporting documentation (such as 

10 price lists and other technical descriptions of the 

11 fabric qualities) showing the dollar value of such 

12 fabric purchased, the date of purchase, and evidenc13 ing the fabric as woven cotton fabric of 80s or high14 er count and 2-ply in warp; and 

15 (4) that the fabric was suitable for use in the 

16 manufacturing of men’s and boys’ cotton shirts. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated such sums as are nec19 essary to carry out this section for each of fiscal years 

20 2014 through 2019. 

21 SEC. 12211. AGRICULTURE WOOL APPAREL MANUFACTUR22 ERS TRUST FUND. 

23 (a) ESTABLISHMENT OF TRUST FUND.—There is es24 tablished in the Treasury of the United States a trust fund 

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1 turers Trust Fund’’ (in this section referred to as the 

2 ‘‘Wool Trust Fund’’), consisting of such amounts as may 

3 be transferred to the Wool Trust Fund pursuant to the 

4 authorization of appropriations under subsection (e). 

5 (b) DISTRIBUTION OF FUNDS.—From amounts in 

6 the Wool Trust Fund, the Secretary of Agriculture may 

7 make payments annually beginning in fiscal year 2014 for 

8 calendar years 2010 through 2019 as follows: 

9 (1) To eligible manufactures under paragraph 

10 (3) of section 4002(c) of the Wool Suit and Textile 

11 Trade Extension Act of 2004 (Public Law 108–429; 

12 118 Stat. 2600), as amended by section 1633(c) of 

13 the Miscellaneous Trade and Technical Corrections 

14 Act of 2006 (Public Law 109–280; 120 Stat. 1166) 

15 and section 325(b) of the Tax Extenders and Alter16 native Minimum Tax Relief Act of 2008 (division C 

17 of Public Law 110–343; 122 Stat. 3875), who filed 

18 an affidavit with U.S. Customs and Border Protec19 tion not later than April 15 of the year of the pay20 ment, so that the amount of such payments, when 

21 added to any other payments made to eligible manu22 facturers under that paragraph in calendar years 

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1 turers under that paragraph, or the provisions of 

2 this section, in such calendar years. 

3 (2) To eligible manufacturers under paragraph 

4 (6) of such section 4002(c), so that the amount of 

5 such payments, when added to any other payments 

6 made to eligible manufacturers under that para7 graph in calendar years 2010 through 2019, equal 

8 the total amount of payments authorized to be pro9 vided to eligible manufacturers under that para10 graph, or the provisions of this section, in such cal11 endar years. 

12 (c) PAYMENT OF AMOUNTS.—The Secretary of Agri13 culture shall make payments to eligible manufacturers de14 scribed in paragraphs (1) and (2) of subsection (b)— 

15 (1) for calendar years 2010 through 2013, not 

16 later than 30 days after the transfer of amounts 

17 from the general fund of the Treasury to the Wool 

18 Trust Fund under this section; and 

19 (2) for calendar years 2014 through 2019, not 

20 later than April 15 of the year of the payment. 

21 (d) RELATIONSHIP TO OTHER LAW.—The payments 

22 authorized under this section shall be made through the 

23 end of fiscal year 2019 notwithstanding any lapse of au24 thority under any other provision of law to transfer funds 

25 to— 


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1 (1) the Wool Apparel Manufacturers Trust 

2 Fund established by section 4002(c) of the Wool 

3 Suit and Textile Trade Extension Act of 2004 (Pub4 lic Law 108–429; 118 Stat. 2600), as amended by 

5 section 1633(c) of the Miscellaneous Trade and 

6 Technical Corrections Act of 2006 (Public Law 109– 

7 280; 120 Stat. 1166) and section 325(b) of the Tax 

8 Extenders and Alternative Minimum Tax Relief Act 

9 of 2008 (division C of Public Law 110–343; 122 

10 Stat. 3875); or 

11 (2) the Wool Research, Development, and Pro12 motion Trust Fund established by 506 of the Trade 

13 and Development Act of 2000 (7 U.S.C. 7101 note). 

14 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated such sums as are nec16 essary to carry out this section for each of fiscal years 

17 2014 through 2019. 

18 SEC. 12212. CITRUS DISEASE RESEARCH AND DEVELOP19 MENT TRUST FUND. 

20 (a) ESTABLISHMENT OF TRUST FUND.—There is es21 tablished in the Treasury of the United States a trust fund 

22 to be known as the ‘‘Citrus Disease Research and Develop23 ment Trust Fund’’ (in this section referred to as the ‘‘Cit24 rus Trust Fund’’), consisting of such amounts as may be 


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1 transferred to the Citrus Trust Fund pursuant to the au2 thorization of appropriations under subsection (f). 

3 (b) DISTRIBUTION OF FUNDS.—From amounts in 

4 the Citrus Trust Fund, the Secretary may make payments 

5 annually beginning in fiscal year 2014 to the following: 

6 (1) Entities engaged in scientific research con7 cerning diseases and pests, both domestic and 

8 invasive, afflicting the citrus industry. 

9 (2) Entities engaged in dissemination and com10 mercialization of relevant information, techniques, or 

11 technologies, or in research projects intended to 

12 solve problems caused by citrus production diseases 

13 and invasive pests. 

14 (3) The Citrus Disease Research and Develop15 ment Trust Fund Advisory Board, if established 

16 under subsection (c). 

17 (c) CITRUS ADVISORY BOARD.— 

18 (1) IN GENERAL.—From amounts in the Citrus 

19 Trust Fund, and with the advice and recommenda20 tions of citrus producers and other entities with an 

21 interest in the citrus industry, the Secretary may es22 tablish a Citrus Disease Research and Development 

23 Trust Fund Advisory Board (in this subsection re24 ferred to as the ‘‘Citrus Advisory Board’’). 


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1 (2) MEMBERSHIP.—The Citrus Advisory Board, 

2 if established under paragraph (1), shall consist of 

3 9 members, who shall be appointed by the Secretary 

4 as follows: 

5 (A) Five members who are domestic pro6 ducers of citrus in Florida. 

7 (B) Three members who are domestic pro8 ducers of citrus in Arizona or California. 

9 (C) One member who is a domestic pro10 ducer of citrus in Texas. 

11 (3) REGULATIONS.—The Secretary may pre12 scribe such rules and regulations as are necessary to 

13 carry out this subsection, including rules estab14 lishing procedures for disqualification from service 

15 on the Citrus Advisory Board, appointment terms 

16 for members of the Citrus Advisory Board, com17 pensation for those members, and powers and re18 sponsibilities of the Citrus Advisory Board. 

19 (4) LIMITATION ON EXPENDITURES.—The Sec20 retary shall ensure that not more than 5 percent of 

21 total expenditures from the Citrus Trust Fund in 

22 any year are used for the operations of the Citrus 

23 Advisory Board. 

24 (d) SECRETARIAL DISCRETION OF FUND ALLOCA25 TION.—Subject to subsection (e), in distributing amounts 


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1 under subsection (b), the Secretary shall give strong def2 erence to providing funding for research projects exploring 

3 the proximity of citrus producers to the effects of diseases 

4 such as huanglongbing and the quickly evolving nature of 

5 scientific understanding of the effect of the diseases on 

6 citrus production. 

7 (e) OTHER FUNDING.—The Secretary should take 

8 into account other public and private citrus-related re9 search and development projects and funding. 

10 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated such sums as are nec12 essary to carry out this section for each of fiscal years 

13 2014 through 2019. 

Æ 


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